Media please contact:
Chris Romoser, Iomega Corporation, (858) 314-7148 romoser@iomega.com

Analyst/Investors, please contact:
Thomas Liguori, Iomega Corporation, (858) 314-7188
Thomas D. Kampfer, Iomega Corporation, (858) 314-7188

For Immediate Release

IOMEGA REPORTS THIRD QUARTER 2005 FINANCIAL RESULTS

SAN DIEGO, October 27, 2005 - Iomega Corporation (NYSE: IOM) today reported revenue of $55.9 million and a net loss of $12.3 million, or $0.24 per share, for the quarter ended October 2, 2005. In comparison, third quarter 2004 revenue was $77.3 million with a net loss of $15.9 million, or $0.31 per share. The lower revenue was primarily due to a decline in the Zip® product line. The third quarter 2005 net loss included $6.6 million in pre-tax restructuring charges. The third quarter 2004 net loss included $4.6 million in pre-tax DCT impairment and other charges related to the discontinuance of the DCT development program and $2.3 million in pre-tax restructuring charges.

The third quarter 2005 gross margin percentage was 19.7% compared to 15.3% for third quarter 2004. The third quarter 2004 gross margin percentage was lower due to the $4.6 million impairment and other charges for DCT. Third quarter 2005 operating expenses were $23.6 million, including $6.6 million in restructuring charges and license income of $0.9 million. This was a 24% reduction compared to $30.9 million in third quarter 2004, which included $2.3 million in restructuring charges. The third quarter 2005 operating loss was $12.6 million, compared to an operating loss of $19.1 million for third quarter 2004. The improvement in operating loss was a result of the lower internal cost structure implemented in the second half of 2004 and third quarter 2005.

The Company's total cash, cash equivalents, and temporary cash investments decreased by $11.5 million during third quarter 2005 to $98.4 million. The decrease was primarily a result of payments associated with the restructuring actions, operating losses and higher trade receivables and inventory in anticipation of higher, seasonal fourth quarter sales.

"During third quarter 2005, we substantially completed our restructuring efforts and, going forward, I am optimistic that business results will improve as we enter the seasonally strong fourth quarter," said Werner Heid, president and CEO, Iomega. "We anticipate our restructuring efforts will save $38 to $42 million annually with the majority of savings in place for the fourth quarter. In September, our REV™ technology received a major endorsement with the announcement at the International Broadcast Convention in Amsterdam of Thomson/Grass Valley's new line of professional broadcasting equipment incorporating REV technology. The professional broadcast industry is a key vertical market that is currently standardized on tape but can clearly benefit from adopting REV technology in terms of workflow, cost, performance and reliability. In addition, with a renewed focus on hard disk drive-based products, we plan to significantly refresh our HDD line in the next two quarters. Through our REV and HDD products focus and initiatives, and a lean cost structure, we continue to work toward our critical goal to return Iomega to profitability."

Third quarter 2005 Zip product sales of $14.9 million decreased $17.0 million, or 53.4%, from third quarter 2004. Third quarter 2005 Zip gross margin percentage of 44% was basically flat with the prior year. Third quarter 2005 Zip product profit margin (PPM) was $6.0 million, compared to $12.6 million in third quarter 2004. The PPM decrease was primarily due to the lower sales volume.

Third quarter 2005 sales of Consumer Storage Solutions products, consisting of optical, hard disk (HDD), Mini USB flash and floppy drives, were $27.1 million, compared to $30.9 million in third quarter 2004. Most of the decline was in optical and flash products due to the Company's efforts to eliminate unprofitable SKUs in these two product lines. Sales of hard disk drives increased 56% to $18.4 million. The Consumer Storage Solutions product loss in third quarter 2005 was $1.5 million, compared to a product loss of $2.9 million in third quarter 2004. The improvement was primarily driven by spending reductions implemented in the second half of 2004 and third quarter 2005 and improved margins on certain optical and flash product SKUs.

Third quarter 2005 REV product sales were $10.3 million or relatively flat with third quarter 2004 REV product sales. The REV product loss in third quarter 2005 of $1.3 million significantly improved compared to a $5.6 million product loss in third quarter 2004. The third quarter 2005 REV product loss was primarily due to development costs for next generation REV products and under-absorbed fixed overhead expenses at the current sales volumes.

Third quarter 2005 NSS revenue of $3.3 million was unchanged compared to third quarter 2004. The NSS product line had a $0.3 million product loss in third quarter 2005 compared to a nominal product loss in third quarter 2004 due to higher spending on marketing.

General corporate expenses which were not allocated to the total third quarter 2005 PPM totaled $9.9 million, a decrease of $4.3 million, or 30%, compared to third quarter 2004.

Revenue by region during third quarter 2005 was $30.1 million in the Americas, $21.3 million in Europe, and $4.5 million in Asia, or 54%, 38%, and 8%, respectively. This compares to revenue by region during third quarter 2004 of $42.4 million in the Americas, $28.7 million in Europe, and $6.2 million in Asia, or 55%, 37%, and 8%, respectively.

Conference Call Information
As previously announced, Iomega will host a conference call with simultaneous audio webcast beginning at 4:30 p.m. Eastern Time today to discuss Iomega's third quarter 2005 financial results. The webcast may be accessed at http://www.iomega.com and will be available for replay through the close of business on Thursday, November 10, 2005.

About Iomega
Iomega Corporation provides easy-to-use, high value storage solutions to help people protect, secure, capture and share their valuable digital information. Iomega's award-winning storage products include the new Iomega REV™ 35GB Drive, available in multiple interfaces, as well as the 10-cartridge, one-drive REV 1000 Autoloader; Zip® 100MB, 250MB and 750MB Drives; the new Iomega StorCenter™ Network Hard Drives, high-performance Iomega® External Hard Drives in desktop and portable configurations; Iomega Mini USB Drives, Micro Mini™ USB Drives, and the Iomega Mixx™ MP3 player; Iomega external CD-RW Drives; Iomega Super DVD Drives and the QuikTouch™ Video Burner; and Iomega Floppy USB-Powered Drives. Iomega simplifies data protection and sharing at home and in the workplace with Iomega Automatic Backup software, Iomega Sync software, HotBurn® CD-recording software, and Active Disk™ technology. For networks, Iomega StorCenter Pro NAS servers offer capacities of 160GB to 1.6TB. For unlimited capacity and anytime, anywhere access, Iomega offers iStorage™ secure online storage. Iomega also offers businesses and consumers a comprehensive data recovery services solution for recovering lost data due to hardware failure, file corruption or media damage. The Company can be reached at 1-888-4-IOMEGA (888-446-6342), or on the Web at www.iomega.com.

Special Note Regarding Forward-Looking Statements
Any statements contained in this release regarding optimism that business results will improve during fourth quarter; the timing of and expected annual cost savings of $38 to $42 million as a result of the third quarter 2005 restructuring; expected benefits from the Thomson/Grass Valley REV product OEM agreement; plan to significantly refresh our HDD line in the next two quarters; the goal to return Iomega to profitability; and any other statements that are not purely historical are forward looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All such statements are based upon information available to us as of the date hereof, and we disclaim any intention or obligation to update any such statements. Actual results could differ materially from current expectations. Factors that could cause or contribute to such differences include lower than anticipated sales of our products; unexpected technical, manufacturing, or supply issues with our products; our inability to achieve a competitive cost structure; competition; our inability to maintain stringent quality assurance standards and customer satisfaction; manufacturing and inventory issues; management and key employee turnover; intellectual property disputes; adverse final judgments in litigation; general economic and/or industry-specific conditions; and the other risks and uncertainties identified in the reports filed from time to time by Iomega with the U.S. Securities and Exchange Commission, including Iomega's most recent Quarterly and Annual Reports on Forms 10-Q and 10-K. For a copy of Iomega's Q2 2005 Financial Statements click here.

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Copyright© 2005 Iomega Corporation. All rights reserved. Iomega, Zip, REV, Active Disk, iStorage, Micro Mini, QuikTouch and HotBurn are either registered trademarks or trademarks of Iomega Corporation in the United States and/or other countries. Certain other product names, brand names and company names may be trademarks or designations of their respective owners.