New Pre-Recorded Music Format From I-Jam Entertainment Uses New Microsoft Windows Media Audio 8 for Audiophile Sound Quality.

Business & High-Tech Editors

SCHAUMBURG, Ill.--(BUSINESS WIRE)--April 4, 2001

Pre-Recorded LP(TM) PocketZip(TM) Disks To Hold 100MB

Of Music And Audio Book Content;

EMI, Random House And TVT Records Have Licensed Content For Release

I-Jam Entertainment L.L.C., a pioneer in the digital audio arena, announced today that pre-recorded music from today's top artists and authors will be available as its LP(TM) - or License Plate(TM) - disks using Iomega Corporation's new, larger-capacity 100MB PocketZip(TM) disks. They will be recorded using the new Microsoft Windows Media Audio 8, which has just been released. EMI, Random House and TVT Records have all licensed content to be released on the 100MB LP. A multitude of announcements regarding more titles and artists will be forthcoming.

"We are truly excited to announce the 100MB LP recorded with Microsoft Windows Media Audio 8," said Doug Marrison, President and CEO, I-Jam Entertainment. "We believe that the phenomenal sound quality, recording speed, security and increased storage make the LP a very strong candidate to emerge as the next standard format of pre-recorded music and audio books."

The 100MB PocketZip disk allows the LP's pre-recorded music to be encoded at 192 Kilobits per second (Kbps), achieving true audiophile CD-transparency using the new Microsoft Windows Media Audio 8. The disks also support Microsoft Windows Media digital rights management (DRM) exclusively for security, and Iomega's PocketZip disk itself is serialized to protect the rights of the artist. Disks can be shared from player to player, while the music industry can ensure that secure music is protected and that licensing options are available for copies.

"This is a great new innovation for the distribution of digital music," said Jonathan Usher, Group Product Manager, Windows Digital Media Division, Microsoft Corp. "The breakthrough quality of Windows Media Audio 8 truly gives the I-Jam LP audiophile sound quality, in a medium that is portable and secure."

The pre-recorded LP is a removable disk format with many advantages over the current flash cards used to download and play digital audio files. The LP holds an entire pre-recorded album on a matchbook-sized disk weighing less than half an ounce and protected by a durable metal shell. LPs can be carried around as easily as pocket change, easily shrugging off the bumps and bangs of portable use that can ruin CDs.

"The new I-Jam LP combines two great technologies, Iomega's low-cost 100MB PocketZip disks and Microsoft's Windows Media Audio 8," said Doug Collier, Senior Vice President, Marketing And Product Management, Iomega Corporation. "The combination promises to be ideal for the next generation of pre-recorded music and audio books."

Retail LPs are to be packaged in the same jewel cases used by traditional CDs for convenient shelf use by retailers. The music LP will be sold for a suggested retail price of $19.98 and will play on all new digital audio players that are outfitted with a 100MB PocketZip drive. This fall, I-Jam will be introducing a 100 MB version of the IJ-360 digital audio player. Iomega also has plans to introduce a 100 MB model of their HipZip player.

About Iomega

Iomega Corporation (NYSE:IOM) manufactures and markets the award-winning Zip(R), Jaz(R) and PocketZip(TM) drives and disks, 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) cards, and the Iomega Microdrive(TM) miniature hard drive. 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

About I-Jam Entertainment L.L.C.

I-Jam Entertainment L.L.C., headquartered in Schaumburg, IL, was formed in 1999 to develop and market micro-sized, multimedia products in the digital audio and video categories. The company is leveraging its expertise in digital audio products with its consumer marketing experience to create innovative solutions for the entertainment and technology industries. For more information, go to the company's website at www.i-jam.com.

NOTE: The statements contained in this release regarding development, production and distribution of the 100MB PocketZip drive and disks, anticipated product pricing and availability, expected product performance and specifications, future applications for the new product, trends in the portable digital device market, anticipated DRM support, 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, the successful completion of product development and testing, market acceptance of, and demand for, the PocketZip products and any other portable devices, any difficulties encountered in ramping up production or other manufacturing issues, including component availability and pricing, 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 Annual Report on Form 10-K for the year ended December 31, 1999, and its most recent Quarterly Report on Form 10-Q.

Copyright (c) 2001 I-Jam Multimedia LLC. Iomega and PocketZip are either registered trademarks or trademarks of Iomega Corporation in the United States and/or other countries. Certain other product names, brand names and company names may be trademarks or designations of their respective owners.

I-Jam and License Plate are trademarks and/or registered trademarks of I-Jam Multimedia LLC. Other product and company names mentioned herein may be the trademarks of their respective owners.