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<div class="left_inner_box_heading"><h1>Iomega Announces New 100MB PocketZip Drive</h1></div>
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<p>FOR IMMEDIATE RELEASE</p>
<p>Iomega Announces New 100MB PocketZip Drive</p>
<p>Breakthrough Value for High-Capacity Storage in Portable Devices</p>
<p>ROY, Utah, March 8, 2001 - Iomega Corporation (NYSE: IOM), a global leader<br />
in data management solutions, today announced the Iomega PocketZip 100MB<br />
drive for handheld consumer electronics devices. A dramatic new low-cost<br />
portable storage standard for a new generation of digital audio, video, and<br />
imaging devices, the PocketZip 100MB drive leverages Iomega's proven<br />
PocketZip technology and offers two and a half times the storage capacity.</p>
<p>The new PocketZip 100MB disks will retail for as little as $10 each,<br />
compared with 32MB solid state memory cards priced at about $60-more than<br />
three times the capacity for one sixth the price, or an 18-to-1 cost<br />
savings advantage for consumers using the Iomega PocketZip 100MB disk.</p>
<p>"We expect Iomega's new 100MB PocketZip drive to be a sensational product<br />
for the next generation of portable digital devices," said Bruce Albertson,<br />
president and CEO, Iomega Corporation. "We've already proven the PocketZip<br />
drive's reliability in the toughest arena there is, digital audio players.<br />
Now we're giving consumers enough storage capacity to record one or more<br />
full CDs in virtually any format on an easily swappable and sharable 100MB<br />
disk. That's an irresistible deal for consumers and a compelling reason for<br />
original equipment manufacturers to migrate from expensive solid state<br />
memory cards to the PocketZip platform."</p>
<p>Dramatically increased magnetic storage capacity is a continuing trend in<br />
the storage industry. The PocketZip 100MB drive, which lowers the cost of<br />
removable storage to as little as ten cents per megabyte, is expected to be<br />
the catalyst for a new generation of portable devices from Iomega and OEM<br />
partners. "Devices that were impractical with solid state memory costs of<br />
$1.50 to $2.00 per megabyte become eminently practical when consumer costs<br />
with PocketZip disks fall to a dime per megabyte," said Albertson.</p>
<p>Iomega's plans include the introduction this fall of a new 100MB model of<br />
its popular HipZip digital audio player. Consumer products that stand to<br />
benefit from lifting the constraints of price and capacity include digital<br />
audio players, handheld MPEG-4 digital video devices, PDAs, and megapixel<br />
digital cameras. Business and home office devices that can benefit from a<br />
built-in PocketZip 100MB drive or accessory include PDAs, laptop computers,<br />
LCD projectors, and printers. And because PocketZip disks are rewritable<br />
and do not need to be physically flipped in the drive to read their full<br />
capacity, they are an ideal format for editing and updating large files.</p>
<p>While the new PocketZip 100MB platform offers greater value to consumers<br />
than ever, it retains the key features and benefits of the original Iomega<br />
PocketZip 40MB disk:<br />
Durability: PocketZip disks are protected from scratches by a durable<br />
metal shell. They easily shrug off the bumps and bangs of portable use that<br />
can ruin CDs.<br />
Affordability: PocketZip disks have always been the economical<br />
alternative to CompactFlash, SmartMedia, and Memory Stick solid state<br />
memory cards. Iomega's new PocketZip 100MB disks are now about 15 times<br />
cheaper, driving the cost of removable storage to as little as $0.10/MB.<br />
Portability: PocketZip disks are matchbook sized and weigh less than half<br />
an ounce, making them the truly pocketable portable solution. PocketZip<br />
40MB disks are also readable in 100MB PocketZip drives.<br />
Security: PocketZip disks are serialized to integrate with popular<br />
digital rights management (DRM) systems from Microsoft, InterTrust, and<br />
others.</p>
<p>With Napster and the music and publishing industries working to reinstate<br />
online copyright protection for musicians and authors, copyright issues<br />
promise to be a much bigger factor in future purchase decisions regarding<br />
digital audio players. Consumer enjoyment of downloadable music will<br />
increasingly depend on owning digital audio players that use convenient<br />
built-in digital rights management (DRM) solutions, such as Iomega's HipZip<br />
digital audio player.</p>
<p>The Iomega PocketZip platform represents one of today's best DRM-enabled<br />
solutions because its serialized PocketZip disks are integrated into<br />
popular DRM systems, including Microsoft's Windows Media Rights Manager<br />
and other DRM technologies (support for InterTrust's DRM has been announced<br />
and is in development). PocketZip disks enable secure content to be<br />
downloaded and locked to the disk itself, an option not available with CD-R<br />
and most solid state memory card formats.</p>
<p>With PocketZip technology, consumers can enjoy downloading and listening to<br />
both free and secure music or spoken word content on any compatible player,<br />
much as they can today with their collection of CDs. The music industry<br />
gains the assurance that secure music is protected and that licensing<br />
options are available for copies. Consumers gain the ability to build<br />
affordable, portable digital audio collections, making PocketZip disks the<br />
format that allows consumers to enjoy the music they want at the price they<br />
want to pay.</p>
<p>Iomega's PocketZip 100MB drive and disks will be available internationally<br />
in the third quarter of 2001. Products based on the new drive are expected<br />
to be available for holiday sales.</p>
<p>About Iomega<br />
Iomega Corporation (NYSE:IOM) manufactures and markets the award-winning<br />
Zip, Jaz and PocketZip' drives and disks, the HipZip digital audio<br />
player, the FotoShow digital image center, LifeWorks software, and Iomega<br />
QuikSync software; Iomega also markets Iomega CD-RW drives, the Predator<br />
CD-RW drive and Iomega Microdrive. Iomega's products help people to save,<br />
share, manage and create important information such as Internet downloads,<br />
audio files, personal photographs, spreadsheets, and slides, while<br />
protecting that content from viruses and hackers. Used in homes,<br />
businesses, government and educational facilities and by creative<br />
professionals everywhere, Iomega storage solutions are the enabling<br />
technologies preferred by millions. The Company can be reached at<br />
1-888-4-IOMEGA (888-446-6342), or on the Web at <a href="http://www.iomega.com" title="http://www.iomega.com">http://www.iomega.com</a>.</p>
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