Iomega: Fiscal 4Q07 Financial Results

Iomega Corporation reported net revenue of $120.6 million and net income of $6.5 million,
or $0.12 per diluted share, for the quarter ended December 31, 2007. In
comparison, fourth quarter 2006 net revenue was $76.2 million with net income
of $4.9 million, or $0.09 per diluted share. Fourth quarter 2007 net revenue
increased $44.4 million, or 58%, from the same quarter last year, primarily
due to strong growth in Consumer Storage Solutions and Network Storage Systems
products of 86% and 76%, respectively. Gross margin for fourth quarter 2007
was $20.9 million, or 17.3%, as compared to fourth quarter 2006 gross margin
of $15.4 million, or 20.2%. The increase in gross margin dollars and decrease
in gross margin percentage from the same period last year was a result of
growth in Consumer Storage Solutions products, and an expected Zip revenue
decline of 48% which carries a higher gross margin percentage than Consumer
Storage Solutions products.

Fourth quarter 2007 net income included a pre-tax, cash benefit of $3.5
million related to a prior license of intellectual property and pre-tax
expenses of $1.2 million for external professional fees associated with the
recently announced acquisition of ExcelStor Group. Taken together, this
pre-tax net benefit of $2.3 million represents an impact to fourth quarter
2007 net income of approximately $0.03 per diluted share.

Total year 2007 net revenue was $336.6 million with net income of $10.1
million, or $0.18 per diluted share. In comparison, 2006 net revenue was
$229.5 million with a net loss of $8.8 million, or ($0.17) per share. This
represents a revenue increase of $107.1 million, or 47%, due primarily to
strong growth in Consumer Storage Solutions and Network Storage Systems
products of 86% and 35%, respectively, partially offset by an expected Zip
revenue decline of 49%.

Cash, cash equivalents and temporary investments, inclusive of long-term
cash investments, at December 31, 2007 totaled $64.6 million, a decrease of
$4.8 million from the end of third quarter 2007. This decrease was a result
of timing of working capital needs during the fourth quarter and building
inventory required to meet the expected robust demand in first quarter 2008.

"I am pleased with our financial and operational execution for the fourth
quarter and the strong revenue performance in our Consumer Storage and Network
Storage product lines, both of which achieved substantial year-over-year
growth despite the HDD supply constraints the entire industry experienced this
quarter," said Jonathan Huberman, Chief Executive Officer, Iomega Corporation.
"I am proud of the collective efforts of the Iomega team who delivered an
impressive 47% revenue growth in 2007."

2008 Financial Guidance

In December, we issued preliminary revenue guidance for 2008 of $383.6
million and non-GAAP net income of $10.1 million, or $0.18 per diluted share.
Given the strong performance we saw in fourth quarter 2007, we now expect full
year 2008 revenue of approximately $400 million and non-GAAP net income of
$11.0 million, or $0.20 per diluted share. These non-GAAP net income figures
exclude any external expenses associated with the acquisition of ExcelStor
Group, and any effects of the acquisition itself.

Iomega Corporation