Iomega Announces Next Steps to Position Company Toward Profitable Growth; Consolidates Magnetic Expertise in Utah.

ROY, Utah--(BUSINESS WIRE)--April 30, 1999--

Iomega Corporation (NYSE:IOM) today announced that it will be consolidating its magnetic technology expertise at its headquarters in Roy, Utah.

Iomega's management team communicated to employees yesterday that Iomega's Milpitas and San Diego, California, facilities will be closing. Iomega is taking these steps as it continues to organize along functional lines and to better position the Company for profitable growth and improved asset management.

"Earlier this month, we announced plans to consolidate facilities and reduce headcount," said Jodie K. Glore, president and chief executive officer, Iomega Corporation. "We are committed as ever to our Jaz and Clik! product lines and by locating all of our magnetic products in one location, we can further improve our product development and quality. While these decisions are never easy, they are an important part of our ability to focus our resources on the most promising market opportunities for all of our product lines. We believe that our Zip, Jaz and Clik! businesses will benefit from the synergies we create by combining resources to continue making all of our product platforms stronger."

On April 15, 1999, Iomega announced that it expects to take a special charge in the second quarter associated with its rightsizing efforts, including these facilities closures, and that the Company expects second quarter results from operations to be comparable to the first quarter, excluding any special charges. Iomega expects these facilities closures will result in headcount reductions, transfers and reassignments. The Company plans to make a public announcement later in the quarter with respect to today's announcement and its anticipated second quarter charge.

Iomega Corporation (NYSE:IOM) manufactures and markets the award-winning Zip(R), Jaz(R) and Clik! (TM) drives and disks that help people to organize, manage, create, exchange and share their important information. Used in homes, businesses, government, education and by creative professionals everywhere, Iomega storage solutions are the enabling technologies preferred by millions. The Company can be reached at 1-800-MY-STUFF (800-697-8833), or on the Web at http://www.iomega.com.

Special Note: The statements in this release related to Iomega consolidating its magnetic expertise, positioning the Company for profitable growth and improved asset management, its expected improvement in product development and quality, Iomega's ability to focus its resources on its most promising market opportunities, and the Company's belief that its product lines will benefit from combining resources in order to make all of its product platforms stronger, its plans to consolidate facilities and reduce headcount, an expected special charge in the second quarter, and the expected second quarter results from operations are forward-looking statements. There are a number of important factors that could cause actual results to differ materially from those suggested or indicated by such forward-looking statements. These include, among others, market acceptance of and demand for the Company's storage solutions, the success of the Company in reducing costs, the impact of competition from other suppliers of data storage products, the success of the Company in timely developing and ramping production and marketing of new products, the impact of the Company's change to a functional organization and associated management changes, the Company's success in realizing the benefits intended by such organizational change, the timing and impact of headcount reductions and facility consolidation, the Company's ability to maintain stringent quality assurance standards and enhanced customer services, the availability of product components that meet the Company's requirements, the success of the Company's marketing and product cost reduction activities, manufacturing and inventory issues, production costs, the Company's success in containing or eliminating operating losses from its subsidiary Nomai S.A., intellectual property rights, general economic and/or industry specific conditions and the other factors described in Iomega's Annual Report to Stockholders for 1998 on Form 10-K, filed March 26, 1999 and its most recent quarterly reports filed with the SEC.

Iomega, Zip, Jaz, and the stylized "i" logo are registered trademarks of, and Clik! is a trademark of, Iomega Corporation. All other products and brand names are the property of their respective owners. For maximum reliability, use only genuine Zip disks featuring the genuine Zip symbol in your Zip drive.