Iomega and Reciprocal Announce Strategic Relationship To Advance Secure Distribution of Portable Content.

Business Editors & High Tech Writers

PC EXPO 2001

NEW YORK--(BUSINESS WIRE)--June 27, 2001

Partnership Enables Consumers To Transfer and Bind Secure Downloaded

Content To Portable Zip Disks And Other Iomega Products

Reciprocal, Inc., the provider of business infrastructure for the distribution of digital assets, and Iomega Corporation (NYSE: IOM), a global leader in reliable portable data storage, today announced a strategic relationship that will advance the distribution of secure digital content by enabling downloaded content to be secured to Iomega disks.

Leveraging Reciprocal's digital distribution services, consumers who download secure content will be able to transfer and bind that content to uniquely serialized removable Iomega disks, including Zip(R), PocketZip(TM), Jaz(R) and Peerless(TM) disks, to make downloadable content truly portable.

The agreement creates a major new distribution opportunity for content providers who use Reciprocal services, ultimately enabling them to target the millions of consumers who use Iomega removable storage products.

"Reciprocal has been working very hard to make the digital distribution process easier on our customers as well as mainstream consumers," said John Schwarz, president and CEO, Reciprocal. "We realized that consumers who download secure digital text at work often want to read that text on a portable device during their commute, or a device at home later that night. Understanding this, it was only natural that we turned to Iomega, whose installed user base is a perfect market for our company and more importantly, our customers. We're confident that our collaboration will encourage content owners and e-retailers to make more secure content available, and ultimately advance the digital distribution industry."

"This relationship is a milestone in terms of enabling consumers to download secure digital content to a portable medium," said Germaine Ward, senior vice president, software solutions and e-business, Iomega Corporation. "Reciprocal is the preferred digital clearing service for many prominent record companies, publishers and other digital content providers, and we are pleased to be advancing this important industry initiative with them."

About Iomega Media and Digital Rights Management

Iomega storage disks are serialized to integrate with popular digital rights management (DRM) systems from Microsoft, Adobe and others. Iomega disks enable secure content to be downloaded and locked to the disk itself, an option not available with most current storage formats. Once content is secured to an Iomega disk, consumers can enjoy downloading and playing the content on multiple computers and compatible portable devices.

About Reciprocal

Reciprocal delivers the business infrastructure for the distribution of digital assets by integrating critical functions, including e-commerce and electronic inventory management, with leading digital rights management (DRM) technologies. The company provides comprehensive, easy-to-implement services that enable clients to realize new revenues and efficiencies while controlling digital assets and enabling a simple user experience. In partnership with other industry leaders, these flexible and scalable services address the requirements of the music, publishing, software, and film industries, as well as others such as financial services and healthcare. The company also offers strategic consulting and integration services that help content providers, distributors, and websites choose and implement the solution that best fits their business needs. More than 100 companies in the Americas, Europe, and Asia have selected Reciprocal as their digital distribution services provider.

About Iomega

Iomega Corporation (NYSE:IOM) manufactures and markets the award-winning Zip(R), Jaz(R) and PocketZip(TM) drives and disks, the Peerless(TM) drive system, DataSafe(TM) network attached storage servers, the HipZip(TM) digital audio player, the FotoShow(TM) digital image center, LifeWorks(TM) software, and Iomega QuikSync(TM) software; Iomega also markets Iomega CD-RW drives, Iomega CompactFlash(TM) and SmartMedia(TM) memory cards, and Iomega Microdrive(TM) miniature hard drives. Iomega's products help people to save, share, manage and create important information such as Internet downloads, audio files, personal photographs, spreadsheets, and slides, while protecting that content from viruses and hackers. Used in homes, businesses, government and educational facilities and by creative professionals everywhere, Iomega storage solutions are the enabling technologies preferred by millions. The Company can be reached at 1-888-4-IOMEGA (888-446-6342), or on the Web at http://www.iomega.com.

NOTE: The statements contained in this release regarding the relationship between Iomega and Reciprocal and the digital distribution services, expected product performance and specifications, future applications for the new product and all other statements that are not purely historical, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All such forward-looking statements are based upon information available to Iomega as of the date hereof, and Iomega disclaims any intention or obligation to update any such forward-looking statements. Actual results could differ materially from current expectations. Factors that could cause or contribute to such differences include, but are not limited to, market acceptance of, and demand for secured digital content and Iomega media products, any difficulties encountered in ramping up production or other manufacturing issues, including component availability and pricing, co-development, production, and distribution issues, product pricing and conformity to specifications, dependence upon third party suppliers, competition, intellectual property rights and other risks and uncertainties identified in the reports filed from time to time by Iomega with the U.S. Securities and Exchange Commission, including Iomega's most recent filings on forms 10-K and 10-Q.

(c)2001 Reciprocal, Inc. All rights reserved. Reciprocal and the Reciprocal symbol are trademarks of Reciprocal, Inc. in the United States and other countries. For more information on Reciprocal, visit its Web site: http://www.reciprocal.com.

Copyright(c) 2001 Iomega Corporation. All rights reserved. Iomega, Zip, Jaz, PocketZip, Peerless, DataSafe, HipZip, FotoShow, Predator, QuikSync and LifeWorks are either registered trademarks or trademarks of Iomega Corporation in the United States and/or other countries. Microdrive is a trademark of IBM Corporation and is used with permission. All other products and companies mentioned are registered trademarks or trademarks of their respective owners.