I/OMagic Launches Line of Sound Assault Headphones; True 5.1 Channel Surround Sound Headphones Now Available

Business Wire, June 7, 2004

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IRVINE, Calif.--(BUSINESS WIRE)--June 7, 2004

I/OMagic Corporation (OTCBB:IOMG), a provider of data storage and digital entertainment products, announced today that it has launched its first product in what it expects will be a line of high quality headphones for the personal computer (PC) and consumer electronics marketplaces.

The first headphones in the new line are I/OMagic's Sound Assault(TM) 5.1 Channel Surround Sound Headphones. Features include a power amplifier, which also acts as a control station, eight independent speakers and the ability to easily connect to a 5.1 enabled PC, home audio system or a DVD player.

"With the growing popularity of digital music and digital video, we believe consumers want the best in quality headphones at price points offering a good value. We're excited to bring the first headphones in the Sound Assault(TM) product line to market," said Tony Andrews, Vice President of Engineering and Product Development for I/OMagic Corporation.

"The Sound Assault(TM) 5.1 Channel Surround Sound Headphones are bundled with WinDVD(R) software. WinDVD(R) allows you to watch Dolby(R) DTS surround sound enabled DVDs on a PC enabled with a 5.1 sound system, just as you would with a home theater system," Andrews continued. "The additional WinRip(R) software also allows you to convert standard stereo songs to simulated 5.1 channel surround sound."

The Sound Assault(TM) 5.1 Channel Surround Sound Headphones also feature a volume control for each channel, built-in bass "rumble" effects, dual headphone outlets for multiple users and support DVD playback in AC3 and DTS formats through the included software. I/OMagic recently began shipping these headphones with an introductory price of $99.99.

About I/OMagic

I/OMagic provides data storage products (such as CD-RW, DVD /-RW and floppy drives, including its MediaStation and DataStation products) and digital entertainment products (such as MP3 players, digital audio headphones, and its Digital Photo Library(TM) system which is a palm-sized portable external hard drive for digital music, photo and movie storage). The Company sells products under three brand names -- I/OMagic(R), Hi-Val(R) and Digital Research Technologies(R) -- through nationally-recognized computer, consumer electronics and office supply superstores and other retailers, such as Best Buy, CompUSA, Circuit City, Fred Meyer Stores, MicroCenter, Office Depot, RadioShack, Staples and Target stores, as well as catalog companies and Internet retailers such as Buy.com, PC Mall, Tiger Direct and Dell.

Forward-looking statements in this release with respect to anticipated demand for the Company's new products, anticipated market reception for the Sound Assault(TM) product line, anticipated success and availability of future Sound Assault(TM) products, and the Company's future financial performance are made pursuant to the safe harbor provisions of the Private Securities Litigation Act of 1995. Investors are cautioned that such forward-looking statements involve risks and uncertainties including, but not limited to, dependence on the PC and consumer electronics industries and on product lines based on new technologies; the Company's ability to develop new products based on new or evolving technology and the market's acceptance of those products; manufacturing capacity, availability and reliability; competition and pricing pressures in the technology industry; general economic and business conditions; and other risks detailed from time to time in the Company's periodic reports filed with the Securities and Exchange Commission. The Company undertakes no obligation to release publicly any revisions to any forward-looking statements to reflect events or circumstances occurring after the date hereof.

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