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 Corporation's Stake in ByteTaxi, Inc. Sold to Microsoft
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Iomega Will Transition Away From Bundling ByteTaxi's FolderShare Program With Its Hard Drive Solutions

SAN DIEGO, November 03, 2005- Iomega Corporation (NYSE: IOM), a global leader in data storage celebrating 25 years of business in 2005, today announced that its ownership stake in ByteTaxi was purchased, along with the rest of ByteTaxi, by Microsoft. As a result of the agreement, Iomega will no longer bundle FolderShare™ software with its hard drive solutions and other digital home products.

In January 2005, Iomega became a partial owner of ByteTaxi, based in Austin, Texas. Earlier this year, Iomega began offering basic versions of FolderShare software with its hard drive solutions. Iomega plans to post the date that ByteTaxi is ending FolderShare service to Iomega customers on the URL at www.foldershare.com/iomega.

Customers of Iomega products that have paid ByteTaxi for upgraded subscriptions of FolderShare are being promised pro-rated refunds by ByteTaxi. Meanwhile, Iomega continues to be a leader in the external hard drive market with a full range of small form factor drives, desktop drives and innovative network hard drives. Iomega is evaluating whether to replace FolderShare™ with another comparable software solution that could contain peer-to-peer network digital content management features.

"After evaluating Microsoft's offer, we decided that it was in the best interests of Iomega to pursue the transaction and achieve an attractive cash return on our investment in ByteTaxi," said Lee Williams, Vice President, Consumer Product Generation and Planning, Iomega Corporation. "Iomega's HDD products deliver dependable, innovative and easy-to-use storage management solutions for consumers and small businesses. We plan to launch some exciting products in the fourth quarter of this year and beyond. We will continue to introduce direct-attached and network-attached external storage products to the marketplace that feature a robust digital content management sharing solution."

FolderShare users can get more information and updates on FolderShare by going to www.foldershare.com/iomega.

Terms of the agreement between Iomega and Microsoft were not disclosed.

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.

NOTE: The statements contained in this release regarding development, production and distribution and termination of distribution of FolderShare, replacement of FolderShare or future evaluation of possible alternatives, anticipated product pricing and availability, expected product performance and specifications, future applications for the new product and all 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 forward looking statements are based upon information available to Iomega as of the date hereof, and Iomega disclaims any intention or obligation to update any such forward looking statements. Actual results could differ materially from current expectations. Factors that could cause or contribute to such differences include, but are not limited to the availability and cost of alternatives to FolderShare, technical limitations on potential replacements, the successful completion of product development and testing, market acceptance of, and demand for, the replacement products, any difficulties encountered in selecting and approving the selection of a replacement product, dependence upon third party suppliers, competition, intellectual property rights and 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 Annual Report on Form 10 K for the year ended December 31, 2004, and its most recent Quarterly Report on Form 10-Q.

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Copyright© 2005 Iomega Corporation. All rights reserved. Iomega, StorCenter, Zip, REV, Active Disk, Micro Mini, iStorage, HotBurn, QuikTouch, Mixx, and ScreenPlay are either registered trademarks or trademarks of Iomega Corporation in the United States and/or other countries. All other trademarks, trade names, service marks, and logos referenced herein belong to their respective companies.