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IOMEGA CORP. ANNOUNCES IMPENDING REDUCTION IN FORCE

 ROY, Utah, Oct. 1 /PRNewswire/ -- Iomega Corp. (NASDAQ: IOMG) announced today that it will implement a reduction in force of non- critical, non-direct labor positions in the next few weeks. Iomega currently employs approximately 1,100 people and the company estimates less than 100 employees will be affected. A voluntary resignation program will be offered to employees prior to the reduction in force.
 Iomega recently announced a 25 percent price reduction on certain products to remain price competitive. The company indicated that further expense reductions are needed since the company must now operate on lower gross margins. These impending labor force cutbacks are part of the expense reduction plans.
 "These changes are not due to lack of sales," said Fred Wenninger, chief executive officer of Iomega. "In fact, our unit volumes continue to climb as a result of the recent pricing and other actions we have taken. These steps are necessary to allow us to continue to grow our business by keeping our costs down and keeping our prices competitive," he said.
 Iomega Corp., Roy, develops, manufactures and sells high-performance removable mass storage products for desktop computers. Iomega's patented Bernoulli Technology provides unlimited data storage capability by combining the removability of floppy drives with the high capacity and performance of rigid drives.
 -0- 10/01/93
 /CONTACT: Kristy Pregill, Iomega Corp., 801-778-1000/
 (IOMG)


CO: Iomega Corp. ST: Utah IN: CPR SU: PER

EH-JB -- LA017 -- 7798 10/01/93 12:28 EDT
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Publication:PR Newswire
Date:Oct 1, 1993
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