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Iomega PocketZip Drive Compatible With New Compaq iPAQ Dual PC Card Expansion Pack

PocketZip 40MB Disks Provide Affordable Alternative to Solid State Media

ROY, Utah, March 19 - Iomega Corporation (NYSE: IOM), a global leader in data management solutions, today announced the compatibility of the Iomega(R) PocketZip(TM) PC Card drive with the newly announced Dual PC Card Expansion Pack for the Compaq iPAQ(TM) Pocket PC. The combination will provide iPAQ Pocket PC users with the most affordable and versatile portable storage alternative, Iomega's PocketZip 40MB disks. "We are pleased to work with a leading company like Compaq to introduce the advantages of the PocketZip drive to a pocket PC," said Doug Collier, senior vice president, marketing and product management, Iomega Corporation. "The premium features of the Compaq iPAQ Pocket PC extend far beyond basic PDAs, and PocketZip 40MB disks offer users proven storage technology to support those added capabilities at a fraction of the cost of solid-state memory cards." Matchbook-sized PocketZip(TM) disks fit easily in a shirt pocket, and a strong metal shell makes the disks durable for portable use. PocketZip disks are also serialized to integrate with digital rights management (DRM) systems for secure music downloads. During planned promotions in the second quarter of 2001, Iomega PocketZip 40MB disks will retail for as little as $8 per disk. "PocketZip disks offer robust storage for the iPAQ Pocket PC, the industry's most advanced Pocket PC," said Cindy Box, director of marketing for wireless Internet solutions, Compaq Computer Corporation. "The combination of the Compaq Dual PC Card Expansion Pack and a PocketZip 40MB drive will give customers an easy way to archive data, share information with co-workers, and manage multi-media content such as MP3s, digital images and video files." The Compaq Dual PC Card Expansion Pack will be available in mid-April. Additional information on the Compaq iPAQ Pocket PC and options can be found at http://www.compaq.com/products/handhelds/pocketpc. Windows(R) CE drivers for the PocketZip(TM) drive will be downloadable free of charge from http://www.iomega.com.

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 and Iomega Microdrive(TM). 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 development, production and distribution of the PocketZip drive and disks for use with the Compaq iPAQ Dual Slot PC Card Expansion Jacket, anticipated product pricing and availability, 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, the successful completion of product development and testing, market acceptance of, and demand for, PocketZip products and the iPAQ Pocket PC, 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 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 Iomega Corporation. All rights reserved. Iomega, Zip, Jaz, PocketZip, HipZip, FotoShow, QuikSync and LifeWorks 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 Compaq Corporation or their respective owners.

For further information, please contact media, Chris Romoser, 801-332-3678, [email protected], or analyst/investors, Jim Recob, 801-332-4430, [email protected], both of Iomega Corporation.

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