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IOMEGA EXPECTS LOWER THIRD QUARTER EARNINGS

 IOMEGA EXPECTS LOWER THIRD QUARTER EARNINGS
 ROY, Utah, Sept. 25 /PRNewswire/ -- Based on preliminary estimates,


Iomega Corp. (NASDAQ-NMS: IOMG) announced today that it expected net earnings in the third quarter ending Sept. 27, 1992, to be lower than in the comparable quarter of 1991. Revenue in the third quarter of 1992 is projected to be approximately equal to the prior year ($37.2 million). In the third quarter of 1991, net income was $4.2 million, or 26 cents per share, and in 1992 is expected to be in the range of 10-15 cents per share.
 The company has experienced an increase in revenues through its worldwide commercial distribution channels; however, this increase was more than offset by a $2.3 million decline in sales to its federal government channel of distribution.
 Higher operating expenses and lower gross margins are the primary causes for the expected reduced net earnings.
 The higher operating expenses are primarily related to increased investments in Research and Development and Sales and Marketing to support the recently announced Tape products, as well as removable storage products based on Floptical technology. In addition, the company increased its investment in its European operations and began to invest in the development of thin film head technology during 1992.
 Gross margins are expected to be in the 47-48 percent range in the third quarter of 1992, compared to 49.6 percent in the third quarter of 1991. Lower prices on Bernoulli products to meet competitive pressures, and lower gross margins on new Tape products are the principal reasons for the overall gross margin decline. Expected gross margins in the third quarter of 1992 are approximately equal to the actual gross margins in the second quarter of 1992.
 Iomega, Roy, Utah, develops, manufactures and sells high-performance removable mass storage products for desktop computers. Iomega's patented Bernoulli Technology provides unlimited data storage capability by combining the removability of floppy drives with the high capacity and performance of rigid drives. Iomega's common stock is listed on the NASDAQ National Market System under the symbol IOMG.
 -0- 9/25/92
 /CONTACT: Paul D. Slack of Iomega, 801-778-1000/
 (IOMG) CO: Iomega Corp. ST: Utah IN: CPR SU: ERP


MC -- DV003 -- 3442 09/25/92 10:31 EDT
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Publication:PR Newswire
Date:Sep 25, 1992
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