Iomega Ships New Ultra-Slim USB Addition to the Zip 250MB Drive Family; Zip 250MB USB Drive Offers High-Capacity Portable Storage with Dual USB/PCMCIA Interfaces.

SAN FRANCISCO--(BUSINESS WIRE)--August 31, 1999--

Iomega Corporation (NYSE:IOM), a leader in smart portable storage, today announced the newest addition to its Zip(R) 250MB drive product line with the new Zip(R) 250MB Universal Serial Bus (USB) drive.

This ultra-thin mobile drive is designed to meet the needs of both PC and Mac users offering high-capacity storage in an easy-to-use format that can go from the desktop to the laptop quickly and easily.

At one inch thick and weighing just under a pound, the new slim line Zip(R) 250MB USB drive is one of the lightest high-capacity smart portable storage solutions in the market today. The Zip(R) 250MB USB drive provides mobile and desktop computer users with Iomega's SuperFloppy solution and eliminates the need for larger parallel port or SCSI conversion cables. The new Zip(R) 250MB USB drive uses genuine Zip(R) 250MB disks and also reads and writes to Zip(R) 100MB disks, ensuring that customers have the ability to continue to share information with the installed base of more than 150 million Zip(R) disks shipped worldwide.

"We are excited to announce the Zip 250 USB drive as part of Iomega's USB platform," said David J. Henry, vice president and general manager, magnetic products, Iomega Corporation. "With the growing acceptance of USB as the preferred computer interface, Iomega is continuing its commitment to its customers by providing a solution that not only has an increased capacity, but provides users with compatibility and support for cross-platform information exchange."

The new Zip(R) 250MB USB drive is compatible with computers running Windows 95, Windows 98, Windows NT 4.0, or MacOs 8.1 or above. The new Zip(R) 250MB USB drive is easy to attach and install to computers and laptops, and also provides hot "plug and play" (except when running Windows NT 4.0).

"Iomega's new Zip 250MB USB drive gives computer users a compelling alternative - a low-cost, high-capacity storage peripheral with plug-and-play functionality," said Robert Amatruda, senior analyst, tape and removable storage at International Data Corporation. "IDC believes that Zip 250MB using USB technology will provide users more flexibility than ever before."

The cable which allows the Zip(R) 250MB USB drive to be connected via a PCMCIA slot in notebooks running Windows 95 or Windows 98, is sold separately. Also with the PCMCIA connection, users do not need a power supply. The Zip(R) 250MB USB drive can easily fit in your pocket or briefcase.

The Zip(R) 250MB USB drive ships today and is expected to be available by the end of Q3 1999 in U.S. and Japan. Availability in Europe is expected in Q4 1999. The estimated street price of the Zip(R) 250MB USB drive is expected to be $179.95 (U.S.), with Zip(R) 250MB disks available at an estimated street price of $16.65 (U.S.) each, when purchased in a six-pack. The PCMCIA cable, which is sold separately, is expected to be available in Q4 1999 for an estimated street price of $39.95 (U.S.). The Zip(R) 250MB USB drive includes one Zip(R) 250MB disk, a USB cable power supply, a USB guideline sheet and a USB "Quick Start" guide. Also included with the drive is Iomega's software suite with the following:

-- QuikSync software; the easiest way to instantly backup your

files to a Zip(R), Jaz(R) or Clik(TM) drive, -- RecordIt(TM) software; the coolest way to record and play

back voice and audio on a computer from a Zip(R) disk or

hard drive, -- IomegaWare(TM) 2.1 software, and -- an HTML users guide.

About Iomega

Iomega Corporation (NYSE:IOM) manufactures and markets the award-winning Zip(R), Jaz(R) and Clik!(TM) drives and disks and ZipCD(TM) drives and discs 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.

Editor's note: Statements contained in this release relating to the expected availability and pricing of Zip 250MB USB drives are forward-looking statements. There are a number of important factors that could cause actual events to differ materially from those indicated by such forward-looking statements, including market acceptance of, and demand for, Iomega's Zip 250MB USB drive and removable Zip disk products, manufacturing, development and distribution issues, product pricing, competition, intellectual property rights and other risks identified in Iomega's Annual Report to Stockholders for 1999 on Form 10-K, filed on March 26, 1999, and its most recent quarterly reports filed with the SEC.

Iomega, Zip, Jaz and the stylized "i" logo are registered trademarks, and Clik!, Zip 250, ZipCD, IomegaWare, QuikSync and RecordIt are trademarks 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 100 or 250 symbols in your Zip drive.