Iomega and Matsushita sign additional license agreement for Zip drives

Business Wire, April 11, 1997

ROY, Utah--(BUSINESS WIRE)--April 11, 1997--Iomega Corp. (NYSE:IOM) announced Friday that it has signed an agreement with Matsushita Communication Industrial Co., Ltd. (MCI) of Japan granting MCI enhanced non-exclusive rights to Zip(TM) drive technology and products.

The new Zip drive license builds upon agreements signed by the parties in September of 1996.

Under the previous agreements, MCI was granted a non-exclusive worldwide license to produce Zip drives and sell them under Matsushita's brand names as well as to OEMs. MCI commenced production of Zip drives in the fourth quarter of 1996.

The new Zip drive agreement allows MCI to make design modifications in addition to manufacturing and selling 100 megabyte Zip drives. The modified drives will continue to read and write only 100 megabyte Zip disks. Iomega and MCI may also work together on Zip drive cost reduction projects. Any modifications or improvements to the Zip drive made by MCI will be licensed back to Iomega. Timing of the new Zip drive agreement was based on Iomega's approval of MCI's accelerated technical readiness.

"We are very pleased with the growing partnership between our two companies," said Anton J. Radman, senior vice president for Iomega. "It has long been our belief that we must enlist the support of world class companies like MCI to make Zip technology the standard in removable storage. These agreements add increased technical and marketing strengths to Iomega's Zip technology efforts."

MCI is a public company and is majority-owned by Matsushita Electric Industrial Co., Ltd. MCI has been a leading supplier of floppy disk drives for more than 20 years. It sells these products under the Panasonic brand.

Iomega Corp. provides personal computer storage solutions that help people manage their computer stuff -- anywhere. These solutions include: Zip drives and disks; Jaz one-gigabyte drives and disks; and Ditto backup drives and tape cartridges. Used in homes, business, government and education and by creative professionals, Iomega storage solutions are available through computer retail stores, resellers and major distributors. The company can be reached at 801/778-1000 or on the World Wide Web at http://www.iomega.com . -0-

NOTE TO EDITORS: Statements in this release relating to Iomega's ability to make Zip technology the standard in low cost removable storage, possibility of Zip drive cost reductions and MCI's anticipated modifications of Zip drives are forward looking statements. There are a number of important factors that could cause actual events to differ materially from those indicated by such forward looking statements.

These factors include, among others, market acceptance of, and demand for, Zip products, manufacturing and technical issues encountered by MCI or Iomega, component availability and prices, product costs, intellectual property rights and other factors identified in Iomega's June 4, 1996 Prospectus, 1996 Annual Report, and most recent periodic reports filed with the SEC. -0-

Iomega, Jaz, the Iomega logo and Bernoulli are registered trademarks of, and Zip, Ditto and n-hand are trademarks of Iomega Corp. All other product and brand names are the property of their respective companies.

CONTACT: Iomega Corp., Roy

A. Cory Maloy, 801/778-3712

Susan T. Stillings, 801/778-3585

or

Copithorne & Bellows

Timothy Donovan, 415/975-2206