BTC Increases Its Stake in I/OMagic Corporation.

Business Editors, High-Tech Writers

IRVINE, Calif.--(BUSINESS WIRE)--March 16, 2000

I/OMagic Corporation (OTCBB:IOMC) announced today that it had finalized an agreement with BTC Korea Co., LTD, for a $2 million cash infusion in exchange for one-year, restricted shares of IOMC common stock offered at a 20 percent discount.

This agreement is in addition to the $10 million already invested in I/OMagic through BTC affiliated companies.

"We are quite impressed with I/OMagic's explosive growth and financial performance," said Steel Su, president of BTC. "We feel our increased stake in the company will assist in supporting its continued growth and its transition to a possible NASDAQ listing."

I/OMagic President and CEO Tony Shahbaz added, "this increase in working capital is necessary to execute our aggressive business growth strategies and possible acquisitions that are under consideration."

I/OMagic develops and markets a variety of innovative peripheral PC products designed to allow connectivity and increase the functionality of both portable and desktop computers. Product categories include DVD-ROM drives, CD-ROM drives, portable scanners, digital cameras, high-speed data/fax/voice modems, keyboards, audio cards, video graphics accelerators and other I/O products. The company sells its many products through nationally recognized computer retail outlets. For additional company information, please contact Nancy Andrews, Communications Manager, at 949/727-7466 or visit the I/OMagic web site at www.iomagic.com.

Safe Harbor Statement

Included in this release are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Although the company believes that the expectations reflected in such forward-looking statements are reasonable; it can give no assurance that such expectations reflected in such forward-looking statements will prove to have been correct. Additionally, the financials discussed in this release have not been audited; however, the company is in the process of completing its audited financials. The financial data is subject to changes and adjustments, as may be required by the company's auditors.