Storage: Iomega Goes Optical with ZipCD; Iomega Introduces CD-RW Drive and Discs for File Storage and Sharing on a CD - Product Announcement

Edge: Work-Group Computing Report, June 28, 1999

Iomega Corporation, a leader in the smart, portable storage solution market Monday announced its entry into the optical storage market with its first CD-ReWritable (CD-RW) drive, ZipCD. Designed for corporations, PC enthusiasts and Internet users, ZipCD will give users the ability to back-up, archive, transport, share and create up to 650 MB of data on a common CD format. For customers who appreciate the portability and ease of use that they have come to expect from Iomega solutions, and for any computer user who wants a new way to save personalized content for back-up and entertainment, ZipCD is an ideal solution for their high-capacity storage needs.

With ZipCD, companies, both large and small, can now back-up and archive data, as well as transport and share important files and presentations on a common CD format. For PC enthusiasts and Internet users, ZipCD is also a fun and useful product for saving and sharing original music, photos, games, Internet content and more.

"We are excited to announce ZipCD, the first optical product from Iomega," said David Gantt, vice president and general manager of Optical Products. "Iomega recognizes our customers' need for a high capacity storage solution that uses a common CD format and that enhances the Company's overall storage product portfolio. The drive will ship with bundled software and include an animated installation tour so customers can begin using ZipCD quickly and easily."

The internal E-IDE 4x4x24 drive will be the first in Iomega's line of optical products. Iomega anticipates that the drive will be priced competitively. The drive is expected to begin shipping in the second half of 1999 at www.iomegadirect and through Iomega's extensive distribution network.

"The introduction of CD writers by Iomega will have a significant impact on the optical storage market," said David Bunzel, Santa Clara Consulting Group, "Iomega has established a strong brand franchise and effective distribution strategy that will help to propel its forward momentum in this industry."

According to Santa Clara Consulting Group, more than 14 million CD-R and CD-RW drives are expected to ship worldwide in 1999(a). With the opening of the Company's new Optical Center based in Longmont, Colorado, Iomega is well positioned to tap into this growing market segment and offer a complementary optical option to its current product line. Product users can now pre-master and create content on their Zip, Jaz and Clik drives, and then transfer the information to a ZipCD for archiving, portability and compatibility on a common CD format.

ZipCD Bundled Software

Iomega brings ease-of-use to ZipCD users by bundling a wide array of software tools and accessories.

* Adaptec DirectCD - Packet writing software enabling "Drag-n-drop" functionality

* Adaptec Easy CD Creator - CD record/copy software

* Avery Media Software - Iomega special edition to format CD labels and jewel case inserts

* Iomega QuikSync - Software that executes simultaneous back-ups of active files within user designated folders

* Adobe PhotoShop 5.0 LE - Software for digital image enhancement, photo retouching, and image compositing

* ZipCD animated installation tour so users can begin using the product quickly and easily

Save, Edit and Share Information on ZipCD Discs

For the first time, Iomega also plans to sell CD-RW and CD-R discs. For users interested in saving and editing information on a CD, Iomega plans to offer ZipCD CD-RW Premium and Combo discs, which are expected to be available in July. ZipCD Premium CD-RW discs are expected to come preformatted, saving users valuable time and to be available in packs of three at an ESP of $19.99

(U.S.). ZipCD Combo CD-RW discs are expected to come with one pre-formatted disc and two unformatted discs and to be available at an ESP of $12.99 (U.S.).

For users interested in saving or archiving data that cannot be accidently erased, Iomega plans to offer ZipCD CD-R discs in the second half of the year that will come in a variety of colors for fun and organization.

Iomega Corporation manufactures and markets the award-winning Zip, Jaz and Clik drives and disks that help people organize, manage, create, exchange and share their important information. Used in homes, businesses, government, education and by creative professionals everywhere, Iomega storage solutions are the enabling technologies preferred by millions. The Company can be reached at 1-800-MY-STUFF (800-697-8833), or on the Web at http://www.iomega.com.

(a) Total 1998 CD-R/RW drives shipped: 5.7 million units (3.7 million CD-RW). Source: Santa Clara Consulting Group - January 1999.