I/OMagic Continues to Expand its USB Storage Line of Products.

-- New GigaBank[TM] 3.5" 250GB and 320GB Are Shipping, While Higher Gigabyte Versions Are Expected Soon --

IRVINE, Calif. -- I/OMagic Corporation (OTCBB:IOMG), a leading provider of data storage products, announced today the launch of the first two products in a line of new 3.5" external hard disk drives with capacities of up to 250GB and 320GB. The new GigaBank[TM] 250GB and 320GB 3.5" external hard disk drives come in sleek, grey, oval aluminum enclosures, they add-on easily to a personal computer and they hold large amounts of data. Currently the Company is shipping both its GigaBank 250GB and GigaBank 320GB to select retailers across North America.

"The initial consumer response to the new 3.5" GigaBank products has been so positive that we anticipate adding both 500GB and 750GB versions to the line-up in the very near future," said Tony Shahbaz, president and CEO of I/OMagic Corporation. "These are affordably priced hard disk drives that expand the storage capabilities for large amounts of music, data, pictures, or video-clips."

With the growing need for data security, I/OMagic is including with the launch of the GigaBank line of 3.5" external hard drive a "free" copy of their DataBank software, a password-protected method of encrypting and protecting data and files on internal or external hard drives and portable devices that retails for $29.99. DataBank not only adds value for the purchaser, but it uniquely differentiates I/OMagic's GigaBank 3.5" external hard disk drive line from our competition.

The GigaBank 3.5" line of external hard disk drives easily connect to desktops or notebook personal computers (PCs) or a MAC, with a high-speed USB 2.0 connection for optimal performance. The drives come with a USB 2.0 cable to connect the high-speed USB 2.0 port of a computer for a fast maximum transfer rate of up to 480MB per second; the GigaBank also works with USB 1.1 ports but at slower speeds. I/OMagic's GigaBank line of 3.5" external hard disk drives also include a power adapter.

I/OMagic's GigaBank line of 3.5" external hard disk drives have a one-year warranty; support Windows XP/2000/ME. Introductory MSRP for the GigaBank 250GB is $149.99 and $179.99 for the GigaBank 320GB.

(a)Note: 1 GB = 1 billion bytes.

A user's total accessible memory/storage/data capacity will be less than stated as a result of the user's operating system and other factors.

About I/OMagic

I/OMagic is a leading provider of data storage products (such as CD-RW and DVD+/-RW drives, USB Portable Storage Devices, external USB hard drives and floppy drives, including its MediaStation, DataStation, Data To Go and GigaBank[TM] products). The Company sells products under three brand names -- I/OMagic[R], Hi-Val[R] and Digital Research Technologies[R] -- through nationally-recognized computer, consumer electronics and office supply superstores and other retailers.

Forward-looking statements in this release with respect to the anticipated shipment date and sale price of the Company's new GigaBank 250GB and 320GB devices, as well as product performance, are made pursuant to the safe harbor provisions of the Private Securities Litigation Act of 1995. Investors are cautioned that such forward-looking statements involve risks and uncertainties including, but not limited to, the Company's dependence on the PC and consumer electronics industries and on product lines based on new technologies; the Company's ability to develop new products based on new or evolving technology and the market's acceptance of those products; manufacturing capacity, availability and reliability; competition and pricing pressures in the technology industry; general economic and business conditions; and other risks detailed from time to time in the Company's periodic reports filed with the Securities and Exchange Commission.