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

Analyst/Investors, please contact:
Tom Kampfer, Iomega Corporation, (858) 314-7188

For Immediate Release

Iomega Corporation Announces Investment In FolderShare™ Software
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Enabling Anytime, Anywhere Secure Access Via IP To Iomega Customers

SAN DIEGO, January 6, 2005- Iomega Corporation (NYSE: IOM), a global leader in data storage, today announced a strategic partnership with ByteTaxi Inc., the developer of FolderShare™ software.   Pursuant to the agreement signed between the companies, Iomega plans to embed FolderShare software on its data storage products, beginning with the Iomega Network Hard Drive.   Iomega has made an undisclosed investment in ByteTaxi, and the two companies plan to introduce several enhancements to FolderShare over the next few years.

"People are accumulating large collections of digital files--their photos, music and documents, for instance.   There is an obvious need for a simple and convenient way to store and organize these files, access them from anywhere, and safely share them with family and coworkers," said Sean Burke, executive vice president of consumer solutions, Iomega Corporation. "The Iomega Hard Drive solutions with FolderShare will address all these needs and give you secure access to your PC's files from anywhere in the world."

FolderShare Technology Overview
FolderShare software is a breakthrough in file management that lets Windows® users set up secure peer-to-peer networks for file-sharing tasks with invited users--in effect, a personal and highly customizable VPN (virtual private network). Users can set up as many as 250 FolderShare libraries, assign up to 50,000 files and folders to each library, and grant connection rights to other individuals as needed.

When a file in a FolderShare library is created, changed, or deleted, FolderShare automatically updates all computers with rights to that library. File transfers are immediate, transparent, and secure, which means that shared files are always up to date, even on computers that are physically separated by thousands of miles and a dozen time zones. With FolderShare running in the background, home users and businesses can access, share content and collaborate easily and securely.

"The Internet has transformed our workplaces and our entertainment options, but it has been a mixed experience in terms of enhancing file portability and security for the ordinary user," said Michael Merhej, CEO, ByteTaxi Inc. "People need tools that can give them better access to the files they want regardless of location, and better control over how to share those files as needed. We developed FolderShare to give people back that sense of control, leveraging the Internet into a secure VPN that is incredibly easy to use. We're pleased to be working with Iomega to make our vision a reality for its customers."

Availability
The first Iomega products incorporating FolderShare technology enhanced with extra features proposed by Iomega are expected to ship in the second quarter of 2005.

About FolderShare
FolderShare, developed by ByteTaxi, Inc., employs the latest advances in Peer-To-Peer technology to enable simple, secure Internet file-sharing and synchronization among workgroups, family members, and friends. For information about ByteTaxi, Inc. and FolderShare, and to download the FolderShare software, visit www.foldershare.com.

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™ Drive, popular Zip® 100MB, 250MB and 750MB Drives; high-performance Iomega® External Hard Drives in desktop and portable configurations; Iomega Mini USB Drives and Micro Mini™ USB Drives; 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 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 of the Iomega Network Hard Drive with FolderShare, future enhancements of FolderShare, upgrade versions of FolderShare, 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, any difficulties encountered during software development, any difficulties that may arise as Iomega and ByteTaxi define software to be developed, any failure to reach agreement on terms of a binding, final definitive agreement among Iomega and ByteTaxi, the successful completion of product development and testing, market acceptance of, and demand for, the Iomega product, any difficulties encountered in ramping up production or other manufacturing issues, including component availability and pricing, co-development, production, and distribution issues, product pricing and conformity to specifications, 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, 2003, and its most recent Quarterly Report on Form 10-Q.

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