SAN DIEGO (Map) - SAN DIEGO, May 9 /PRNewswire-FirstCall/ -- Iomega Corporation (NYSE: IOM) today reported net revenue of $95.9 million and net income of $1.9 million, or $0.04 per diluted share, for the quarter ended March 30, 2008. In comparison, first quarter 2007 net revenue was $76.0 million with net income of $1.1 million, or $0.02 per diluted share. Additional information about Iomega's first quarter financial results is contained in our first quarter 10-Q, filed today with the SEC.

Cash, cash equivalents, long term cash and temporary investments decreased $16.9 million from the end of December 2007 due primarily to timing of working capital requirements during the quarter. During April, we generated approximately $7 million of cash excluding the previously announced $7.5 million termination fee paid to the ExcelStor Group.

About Iomega

Iomega Corporation, headquartered in San Diego, is a worldwide leader in innovative storage and network security solutions for small- and mid-sized businesses, consumers and others. The Company has sold more than 400 million digital storage drives and disks since its inception in 1980. Today, Iomega's product portfolio includes industry leading network attached storage products, external hard drives, and the own award-winning removable storage technology, the REV(R) Backup Drive. OfficeScreen(R), Iomega's managed security services, which are available in the U.S. and select markets in Europe, provide enterprise quality perimeter security and secure remote network access for SMBs, which help protect small enterprises from data theft and liability. To learn about all of Iomega's digital storage products and managed services solutions, please go to the Web at http://www.iomega.com. Resellers can visit Iomega at http://www.iomega.com/ipartner.

Copyright(C) 2008 Iomega Corporation. All rights reserved. Iomega, Zip, REV, and OfficeScreen 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.

Legal Statements

THIS PRESS RELEASE IS FOR INFORMATIONAL PURPOSES ONLY AND IS NOT AN OFFER TO BUY OR THE SOLICITATION OF AN OFFER TO SELL ANY SECURITIES. THE SOLICITATION AND THE OFFER TO BUY SHARES OF IOMEGA'S COMMON STOCK IS ONLY BEING MADE PURSUANT TO THE TENDER OFFER STATEMENT ON SCHEDULE TO, INCLUDING THE OFFER TO PURCHASE, THE RELATED LETTER OF TRANSMITTAL AND OTHER TENDER OFFER MATERIALS THAT EMERGE MERGER CORPORATION, A WHOLLY OWNED SUBSIDIARY OF EMC CORPORATION, FILED WITH THE SECURITIES AND EXCHANGE COMMISSION ON APRIL 24, 2008, AS AMENDED. IOMEGA HAS ALSO FILED A SOLICITATION/RECOMMENDATION STATEMENT WITH THE SECURITIES AND EXCHANGE COMMISSION IN CONNECTION WITH THE TENDER OFFER. IOMEGA STOCKHOLDERS SHOULD READ THESE MATERIALS CAREFULLY PRIOR TO MAKING ANY DECISIONS WITH RESPECT TO THE OFFER BECAUSE THEY CONTAIN IMPORTANT INFORMATION, INCLUDING THE TERMS AND CONDITIONS OF THE OFFER. IOMEGA STOCKHOLDERS WILL BE ABLE TO OBTAIN THE TENDER OFFER STATEMENT ON SCHEDULE TO, THE OFFER TO PURCHASE, THE RELATED LETTER OF TRANSMITTAL , THE SOLICITATION/RECOMMENDATION STATEMENT AND OTHER RELATED MATERIALS WITH RESPECT TO THE OFFER, FREE OF CHARGE AT THE WEBSITE OF THE SECURITIES AND EXCHANGE COMMISSION AT HTTP://WWW.SEC.GOV. IN ADDITION, A COPY OF THESE MATERIALS MAY BE OBTAINED AT NO CHARGE BY DIRECTING A REQUEST BY MAIL TO MORROW & CO., INC., 470 WEST AVENUE, STAMFORD, CONNECTICUT 06902 OR BY CALLING TOLL-FREE (800) 607-9400.

     Media, please contact:
     Chris Romoser, Iomega Corporation, (858) 314-7148, romoser@iomega.com
     Analysts/Investors, please contact:
     Preston Romm, Iomega Corporation, (858) 314-7188, romm@iomega.com
                              IOMEGA CORPORATION
                   CONDENSED STATEMENTS OF OPERATIONS - QTD
                    (In thousands, except per share data)
                                 (Unaudited)
                                         For the Three Months Ended
                          Mar. 30,   % of   Apr. 1,   % of    Dec. 31,  % of
                           2008      Sales   2007     Sales     2007    Sales
    Sales                $95,900    100.0% $75,984   100.0%  $120,644  100.0%
    Cost of Sales         81,927     85.4%  61,681    81.2%    99,783   82.7%
      Gross margin        13,973     14.6%  14,303    18.8%    20,861   17.3%
    Operating Expenses:
      Selling, general and
       administrative (1) 10,615     11.1%  10,120    13.3%    14,610   12.1%
      Research and
       development         1,929      2.0%   1,739     2.3%     2,711    2.2%
      License and patent
       fee income         (1,278)    (1.3%)   (350)   (0.5%)   (3,500)  (2.9%)
      Goodwill impairment
       charge                  -      0.0%   1,710     2.3%         -    0.0%
      Restructuring
       reversals               -      0.0%     (38)   (0.1%)     (109)  (0.1%)
        Total operating
         expenses         11,266     11.7%  13,181    17.3%    13,712   11.4%
    Operating Income       2,707      2.8%   1,122     1.5%     7,149    5.9%
      Interest and other
       income and expense,
       net                   229      0.2%     255     0.3%     1,083    0.9%
    Income Before Income
     Taxes                 2,936      3.1%   1,377     1.8%     8,232    6.8%
    Provision for Income
     Taxes                  (991)    (1.0%)   (228)   (0.3%)   (1,710)  (1.4%)
    Net Income            $1,945      2.0%  $1,149     1.5%    $6,522    5.4%
    Net Income Per
     Share                 $0.04             $0.02              $0.12
    Diluted Income Per
     Share                 $0.04             $0.02              $0.12
    Weighted Average
     Common Shares
     Outstanding          54,765            54,733             54,764
    Weighted Average
     Common Shares
     Outstanding -
     Assuming Dilution    55,384            54,979             55,305
    (1)  Q1 2008 and Q4 2007 includes $0.7 million and $1.2 million of
         professional fees paid to 3rd parties in connection with the
         anticipated ExcelStor Group and/or EMC acquisition, respectively.
               PRODUCT SALES AND OPERATING INCOME (LOSS) - QTD
                                (In thousands)
                                 (Unaudited)
                                        For the Three Months Ended
                          Mar. 30,   % of    Apr. 1,     % of   Dec. 31,  % of
                            2008    Sales     2007      Sales     2007   Sales
    Sales:
    Consumer Products:
      Consumer Storage
       Solutions (1)      $74,989   78.2%   $52,489     69.1%   $96,863  80.3%
      Zip                   2,803    2.9%     5,518      7.3%     2,853   2.4%
    Business Products:
      REV                   6,835    7.1%    11,204     14.7%     9,186   7.6%
      Network Storage
       Systems (2)          9,078    9.5%     4,738      6.2%     8,949   7.4%
      Services (3)          1,984    2.1%     1,892      2.5%     2,763   2.3%
    Other Products            211    0.2%       143      0.2%        30   0.0%
        Total Sales       $95,900           $75,984            $120,644
    Product Operating
     Income (Loss):
    Consumer Products:
      Consumer Storage
       Solutions (1)        $(999)             $354              $2,641
      Zip (4)               1,543               355               1,056
    Business Products:
      REV                     272               304                 252
      Network Storage
       Systems (2)            700               409                (206)
      Services (3)            (99)             (520)                (51)
    Other Products (5)(6)   1,290               182               3,348
    Restructuring
     reversals                  -                38                 109
    Operating Income       $2,707            $1,122              $7,149
    (1)  Consumer Storage Solutions is comprised of hard disk, optical and
         floppy drives.
    (2)  Includes Network HDD drives.
    (3)  Includes the System Integration and Managed Services businesses of
         CSCI, Inc. and miscellaneous Iomega services.
    (4)  Q1 2007 included a pre-tax, non-cash $1.7 million goodwill impairment
         charge.
    (5)  Q4 2007 includes a pre-tax, cash benefit of $3.5 million related to a
         prior license of intellectual property.
    (6)  Q1 2008 includes a pre-tax, cash benefit of $1.3 million related to
         patent sales and license of intellectual property.
                              IOMEGA CORPORATION
                           CONDENSED BALANCE SHEETS
                                (In thousands)
                                 (Unaudited)
                                                      Mar. 30,       Dec. 31,
                                                        2008           2007
    ASSETS:
      Cash and cash equivalents                        $39,699        $53,559
      Restricted cash                                      107             93
      Temporary investments                              7,909          9,961
        Total cash                                      47,715         63,613
      Trade receivables, net                            41,000         41,101
      Inventories                                       59,078         79,883
      Deferred income taxes                              2,175          2,175
      Other current assets                               3,323          2,902
        Total Current Assets                           153,291        189,674
      Property and equipment, net                        3,452          3,867
      Long-term cash investments                             -          1,000
      Intangible and other assets                       10,617         10,667
                                                      $167,360       $205,208
    LIABILITIES AND STOCKHOLDERS' EQUITY:
      Accounts payable                                 $26,148        $61,951
      Income taxes payable                               3,839          3,368
      Other current liabilities                         23,196         27,862
        Total Current Liabilities                       53,183         93,181
      Deferred income taxes                              7,644          8,220
      Long-term liabilities                              2,983          2,652
      Stockholders' equity                             103,550        101,155
                                                      $167,360       $205,208
                   CONDENSED STATEMENTS OF CASH FLOWS - YTD
                                (In thousands)
                                 (Unaudited)
                                                   For the Three Months Ended
                                                      Mar. 30,       Apr. 1,
                                                       2008           2007
    Cash Flows from Operating Activities:
      Net Income                                      $1,945         $1,149
      Revenue and Expense Adjustments (1)              1,104          2,246
                                                       3,049          3,395
      Changes in Assets and Liabilities:
        Trade receivables                                337          7,325
        Restricted cash                                  (14)             -
        Inventories                                   20,352            901
        Other current assets                            (421)           444
        Accounts payable                             (35,803)           225
        Accrued restructuring                              -         (1,501)
        Other current liabilities and income taxes    (4,195)        (2,178)
          Net cash used in operating activities      (16,695)         8,611
    Cash Flows from Investing Activities:
      Purchases of property and equipment               (263)          (117)
      Proceeds from sales of assets                        2             49
      Sales of temporary investments                   8,075          3,704
      Purchases of temporary investments              (4,984)        (2,054)
      Net change in other assets and other liabilities     -             44
        Net cash provided by investing activities      2,830          1,626
    Cash Flows from Financing Activities:
      Proceeds from sales of Common Stock                  5              2
      Tax benefit from dispositions of employee stock      -              -
        Net cash provided by financing activities          5              2
    Net (Decrease) Increase in Cash and Cash
     Equivalents                                     (13,860)        10,239
    Cash and Cash Equivalents at Beginning of Period  53,559         56,617
    Cash and Cash Equivalents at End of Period       $39,699        $66,856
    (1)  2007 includes a $1.7 million non-cash, goodwill impairment charge.