Iomega Signs Peripheral Computer Support, Inc. - PCS - to Sell and Support SyQuest Products; Iomega's Purchase of Select SyQuest Assets Closes in Second Quarter.

ROY, Utah--(BUSINESS WIRE)--June 28, 1999--

Iomega Corporation (NYSE:IOM) today announced that it has entered into an agreement with Peripheral Computer Support, Inc. (PCS) of Fremont, California to sell and support Iomega's inventory of SyQuest(R) products.

In April of this year Iomega completed the purchase of certain SyQuest assets, including all of its intellectual property, and its inventory and fixed assets in the U.S., Europe and Malaysia.

The PCS agreement will result in a source of contact for all SyQuest customers, past or future. SYQT, formerly SyQuest Technology, who remains responsible for customers who bought product prior to the Iomega asset purchase, had previously announced in May that it had signed an agreement with PCS to provide warranty support to those customers. Under its agreement with Iomega, PCS will now sell existing SyQuest inventory, manufacture cartridges and provide customer service and warranty support for SyQuest products they sell. Beyond those drives in inventory, there are currently no plans to manufacture additional SyQuest drives, but SyQuest users should find ample cartridges to meet their needs into the foreseeable future.

"SyQuest had a meaningful installed base of customers," said Jodie K. Glore, president and CEO, Iomega Corporation. "We want SyQuest customers to know that we care about their ability to continue using their SyQuest products. Through this agreement with PCS, SyQuest customers have one primary point of contact for sales and service."

All inquiries regarding SyQuest products should be referred to:

PCS, Inc.

44131 Nobel Drive

Fremont, CA 94538

Tel: [phone] ext. 168

Fax: [phone]

Email: [e-mail]

The total value of the SyQuest asset purchase in the U.S. and Europe by Iomega was $9.2 million and the value of the Malaysian purchase was $2.9 million. This will be recorded as an asset purchase in Iomega's second quarter of 1999 financial results. Iomega did not assume any material obligations or liabilities of SyQuest with the purchase. As part of the sale, Iomega released SyQuest and SyQuest released Iomega from all claims in connection with patent and trademark infringement litigation between the parties in Delaware and in Paris, France.

Iomega also announced that it is planning to sell those capital assets from the SyQuest asset purchase that are not needed by Iomega.

About PCS

PCS, Inc. provides manufacturing and warranty services for major computer and data storage companies at its facilities in California, Malaysia, Singapore and Taiwan.

About Iomega

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 the availability of the SyQuest products and performance by PCS constitute forward-looking statements. There are a number of important factors that could cause actual results to differ from those suggested or indicated by such forward-looking statements.

Iomega, Zip, Jaz, SyQuest 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 100 or 250 symbols in your Zip drive.