I/OMagic Files Application for NASDAQ SmallCap Market Listing

Business Wire, August 1, 2005

IRVINE, Calif. -- I/OMagic Corporation (OTCBB:IOMG), a provider of data storage products, announced today that it has applied for listing on The NASDAQ SmallCap Market. Shares of I/OMagic Common Stock currently trade on the OTC Bulletin Board under the ticker symbol "IOMG" and will continue to trade on the OTC Bulletin Board until The NASDAQ SmallCap listing becomes effective. I/OMagic's application for listing on The NASDAQ SmallCap Market is subject to approval by NASDAQ.

The listing of I/OMagic common stock on the NASDAQ SmallCap Market will significantly elevate the Company's visibility and standing in the worldwide financial community. "Listing I/OMagic's common stock on The NASDAQ SmallCap Market would improve the exposure of the Company and benefit our investors by affording them enhanced trading opportunities," said Tony Shahbaz, president of I/OMagic Corporation.

About I/OMagic

I/OMagic is a leading provider of data storage products (such as CD-RW and DVD /-RW drives, USB Portable Storage Devices and floppy drives, including its MediaStation, DataStation and GigaBank(TM) products). 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.

Forward-looking statements in this release with respect to the Company's approval for listing on the NASDAQ SmallCap Market and any expectations regarding NASDAQ's decision to approve the Company's application for listing 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, the Company's ability to satisfy The NASDAQ SmallCap Market's listing requirements, 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. These forward-looking statements are based on a number of assumptions and I/OMagic's actual results and operations may be materially different from those expressed or implied by such statements. By making these forward-looking statements, the Company undertakes no obligation to update these statements for revisions or changes after the date of this release.