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

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

For Immediate Release

Iomega Reports First Quarter 2005 Financial Results

SAN DIEGO, April 28, 2005- Iomega Corporation (NYSE: IOM) today reported revenue of $72.9 million and a net loss of $5.9 million, or $0.11 per share, for the quarter ended April 3, 2005. The net loss included a $1.5 million nonrecurring benefit from a change in estimated accrued copyright royalties in Europe. In comparison, first quarter 2004 revenue was $84.1 million with a net loss of $4.9 million, or $0.09 per share. The lower revenue and increased net loss were primarily due to the decrease in Zip® product line revenue and associated gross margin, partially offset by revenue increases in the REV™ (which began shipping in the second quarter of 2004), Consumer Storage Solutions, and Network Storage Systems (NSS) product lines.

The first quarter 2005 gross margin percentage was 22.7% compared to 28.9% for first quarter 2004. The decrease was primarily due to lower sales of the higher margin Zip products and competitive pricing pressures in Consumer Storage Solutions. First quarter 2005 operating expenses were $22.5 million, which included $0.2 million in pre-tax restructuring charges. By comparison, first quarter 2004 operating expenses were $30.3 million, which included $0.5 million in pre-tax restructuring charges. The first quarter 2005 operating loss was $6.0 million, unchanged from first quarter 2004.

"We are disappointed with the loss in the first quarter; however, we continued to make progress in transitioning the business from the legacy Zip product line to multiple hardware and software storage solutions for consumers, homes, and small businesses," said Werner Heid, president and CEO, Iomega Corporation. "We are encouraged by first quarter 2005 revenue of $52.3 million from our REV, NSS, and Consumer Storage Solutions product lines. In addition, we reduced our operating expenses by $7.8 million, or 25.7%, from first quarter 2004, primarily through last year's restructuring actions. Looking forward, we remain focused on further adjusting our sales and marketing strategy, controlling costs, and introducing new products with the key goal to improve business results."

First quarter 2005 Zip product sales of $20.1 million decreased $24.1 million, or 54%, from first quarter 2004. First quarter 2005 Zip product gross margin percentage of 54.2% improved from 46.4% in the prior year. The increase in Zip gross margin percentage was primarily due to a combination of lower material spending and fewer pricing, rebate, and marketing programs. First quarter 2005 Zip product profit margin (PPM) was $10.1 million, compared to $18.2 million in first quarter 2004.

First quarter 2005 sales of Consumer Storage Solutions products, consisting of optical, hard disk (HDD), Mini USB flash, and floppy drives, were $36.4 million, an increase of $1.3 million, or 4%, compared to first quarter 2004. The Consumer Storage Solutions product loss in first quarter 2005 was $0.9 million, compared to a positive PPM of $0.5 million in first quarter 2004. The first quarter 2005 product loss was favorably impacted by a $1.5 million nonrecurring benefit from a change in estimated accrued copyright royalties in Europe. The $0.9 million product loss was driven primarily by lower margins due to price competition.

First quarter 2005 REV product sales were $12.1 million with a product loss of $1.8 million. The product loss was due to development costs for next generation REV products, continued marketing expenses to improve the market awareness of REV technology, and under-absorbed fixed overhead expenses at current volumes. Compared to fourth quarter 2004, REV revenue decreased from $12.9 million and the product loss was unchanged at $1.8 million.

First quarter 2005 NSS revenue of $3.8 million increased $0.4 million, or 12%, compared to first quarter 2004. The NSS product loss in first quarter 2005 was $0.3 million compared to a product loss in first quarter 2004 of $0.8 million. The product loss improvement was due to higher gross margins on new products released in the second half of 2004.

General corporate expenses which were not allocated to the total first quarter 2005 PPM totaled $12.9 million, a decrease of $2.9 million compared to first quarter 2004.

During first quarter 2005, the Company's total cash, cash equivalents, and temporary investments decreased by $16.6 million to $104.2 million as of April 3, 2005. The decrease in cash, cash equivalents, and temporary investments was primarily a result of payments for: 1) accrued liabilities including restructuring payments, incentive bonus payments, and marketing programs, 2) inventory purchases, and 3) the first quarter operating loss.

Revenue by region during first quarter 2005 was $33.8 million in the Americas, $34.3 million in Europe, and $4.8 million in Asia, or 46%, 47%, and 7%, respectively. This compares to revenue by region during first quarter 2004 of $44.4 million in the Americas, $33.2 million in Europe, and $6.5 million in Asia, or 52%, 40%, 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 first 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, May 5, 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™ 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, 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.

Special Note Regarding Forward-Looking Statements
Any statements contained in this release regarding the Company's progress toward or efforts to transition the business from the legacy Zip product line to multiple hardware and software storage solutions for consumers, homes, and small businesses, its intention to focus on further adjusting its sales and marketing strategy, controlling costs, and introducing new products with the key goal to improve business results, 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 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 lower than anticipated sales of the Company's REV and other products; unforeseen post-launch technical, manufacturing, or supply issues regarding the Company's REV or other products; retail and OEM market acceptance of and demand for the Company's REV and other products; greater than expected revenue declines on the Zip product line; the Company's inability to achieve consistent profitability on its Consumer Storage Solutions business; product gross margin erosion due to competitive pricing pressures; technical difficulties; supplier constraints; the Company's inability to maintain stringent quality assurance standards and enhanced customer service; availability of critical product components; the failure or delay of any sole source supplier; manufacturing and inventory issues; management 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 Annual Report on Form 10-K.

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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.