I/OMagic Jumps Into MP3 Market With Release of Neo Jukebox 2200; Neo Jukebox 2200 holds up to 600 CDs with 20 GB Capacity

Business Wire, March 26, 2001

Business Editors/High-Tech Writers

SANTA ANA, Calif.--(BUSINESS WIRE)--March 26, 2001

I/OMagic Corporation (OTCBB:IOMC), a leading developer and marketer of peripheral PC products, today announced that it will launch the first product in its new series of MP3 players with the I/OMagic Neo Jukebox 2200 -- an MP3 player with the ability to hold up to 600 CDs (20 GB of capacity).

"The I/OMagic Neo Jukebox 2200 gives you thousands of songs at your fingertips," said Tony Andrews, vice president of Engineering and Product Development for I/OMagic Corporation. "It is also very versatile. Not only does it play music, but it can hold a massive amount of files for easy transportation and be used as an external hard drive if needed."

The I/OMagic Neo Jukebox 2200 features MusicMatch(TM) Jukebox software to play and rip CDs. It has built-in USB support, is compatible with both a PC and a MAC, and is easily upgradeable via downloadable firmware. The unit runs off a lithium-ion rechargeable battery or an AC adapter and supports MP2 and MP3 at 8-320 Kbps (including VBR). The I/OMagic Neo Jukebox 2200 is slim in size, yet features a big LCD display (128x68 pixels) for easy navigation. It also accepts custom playlists and features a digital anti-shock mechanism (music is played from digital buffer).

The I/OMagic Neo Jukebox 2200 is expected to have an MSRP of $499.00 and will begin shipping in April 2001.

About I/OMagic

I/OMagic develops and markets a variety of peripheral PC products designed to allow connectivity and increase the functionality of both portable and desktop computers. Product categories include Optical Storage Drives, Digital Imaging Products, Multimedia/Adapter Cards and Input/Output Devices. The company sells its many products through nationally recognized computer retail outlets. Visit the I/OMagic web site at www.iomagic.com. For more information, please contact Nancy Andrews at 714/953-3000.