Iomega Announces Managed Services Marketing Agreement With C I Host, Fifth Largest Web Hosting Company in the World

SAN DIEGO, Aug. 16 /PRNewswire-FirstCall/ -- Iomega Corporation , a global leader in data protection, today announced a strategic partnership with C I Host, the fifth largest Web-hosting company in the world, to market Iomega's new managed services products. Iomega also announced that it has finalized its acquisition of CSCI, Inc., a San Diego-based managed services and outsourced IT company.

With the closing of the acquisition of CSCI, the 2006 winner of the Juniper Networks, Inc. "Managed Services Provider of the Year" award, Iomega will begin selling its first managed services to SMBs in September: Iomega OfficeScreen(R) services, a suite of managed security services that provide small to medium-sized businesses with secure wide-area networks that efficiently and economically link offices and remote workers.

With the partnership announced today, C I Host will begin marketing Iomega OfficeScreen managed services in September. C I Host provides more than 300,000 consumers and small and medium-sized businesses in 190 countries with managed web hosting, single and multiple server colocation and enterprise dedicated servers. C I Host has one of the most extensive portfolios of data center colocation and managed Web hosting services in the industry.

"With the launch of Iomega OfficeScreen managed services and the strategic partnership with C I Host, Iomega's goal is to establish ourselves as a leader in the managed services market," said Jonathan Huberman, Chief Executive Officer, Iomega Corporation. "Today, more than ever, SMBs need simple, secure, easy-to-use networks from a company they trust. We intend to capitalize on the growing managed services market by bringing Iomega OfficeScreen managed services products to small businesses worldwide via our existing channels -- VARs, systems integrators, direct and indirect sales and retail operations -- and through new mutually beneficial relationships like the strategic partnership we announced today with C I Host. We are excited about this agreement and look forward to bringing our managed service solutions to market with C I Host."

Christopher Faulkner, CEO, C I Host, said, "Iomega OfficeScreen managed security services will be a synergistic service from C I Host that meets the security needs of small and medium-sized businesses around the world. At C I Host, we believe in providing SMBs and others with economical network solutions that give them the peace of mind that they have the best in web hosting, server and colocation solutions. Iomega OfficeScreen managed security services fit perfectly with our product portfolio."

Currently hundreds of small and medium-sized businesses in the U.S. utilize OfficeScreen as a secure, reliable outsourced network security and VPN service that is inexpensive, does not require upfront hardware expenses, dedicated IT resources or large IT budgets. OfficeScreen's firewall/VPN, Secure Socket Layer (SSL) (launching in September) and IPSec (IP security) bundles create secure wide area networks that connect remote offices and workers to applications and data at a company's headquarters, while countering security threats from hackers, worms and viruses across a company's entire network.

Iomega expects to grow the existing OfficeScreen business in the U.S. by selling its branded managed services through several different channels, including telecommunications providers, hosting companies, VARs and Systems Integrators, direct and indirect sales organizations and retail operations. By utilizing its strong European sales infrastructure, Iomega also plans to launch its new managed services in international markets, beginning with the United Kingdom before the end of 2006.

"Iomega OfficeScreen is just the beginning of new service solutions for SMBs from Iomega," said Huberman. "OfficeScreen will be the basis of a new growth platform for Iomega. The market for managed services for SMBs is starting to take off, and Iomega is positioned to grow with the market."

According to independent market analysis, the global market for managed security services is expected to be $2.9 billion in 2006, growing to $3.7 billion in 2008.

About C I Host

C I Host ( http://www.cihost.com/ ), based in the Dallas/Fort Worth market, is a Web hosting and Internet solutions provider, domain name registrar (DNR) and application service provider (ASP) hosting 330,000 domains in 190 countries worldwide. C I Host creates business-class Web hosting solutions for the small- and medium-enterprise (SME) market, with the broadest portfolio of managed hosting and value-added services in the industry. C I Host is accredited by ICANN to register domain names. C I Host offers turn-key services ranging from initial domain name registration to custom dedicated servers for e-commerce on today's Web. The company offers innovative packages and services to the Internet community. C I Host operates three diverse data centers across the United States, with its main facility and Network Operations Center in Bedford, Texas. C I Host also has offices in Los Angeles, Chicago and London. C I Host has been ranked #1 in speed by the Adoloma Web Hosting Guide. C I Host has been consistently ranked among the Top 5 Web hosting companies out of 16,000 around the globe by c|net's Ultimate Web Host List, HostPulse, WebHostsOnline.com and HostChart.com. C I Host was named among the Top 25 Web hosting companies by HostIndex.com.

About Iomega

Iomega Corporation provides easy-to-use, high value storage solutions to help people protect, secure, capture and share their valuable digital information. Iomega's award-winning storage products include the Iomega(R) REV(R) 35GB drive and REV 70 GB drive, each available in several computer interface models, as well as two automation solutions currently using REV 35 drives and disks: the rack mount REV 1000 Autoloader and the new desktop form factor REV Loader 280; Zip(R) 100MB, 250MB and 750MB drives; high-performance Iomega external hard drives and HDD solutions such as the Iomega StorCenter(TM) Network Hard Drive, available in multiple capacity sizes, including a new 1TB wireless model; Iomega Mini USB Flash drives, Micro Mini(TM) USB Flash drives; Iomega external CD-RW drives; Iomega Super DVD drives; and Iomega floppy USB-powered drives. Iomega simplifies data protection and sharing at home and in the workplace with Iomega Automatic Backup software and HotBurn(R) CD-recording software. For networks, Iomega NAS servers offer capacities of 160GB to 1.6TB. For unlimited capacity and anytime, anywhere access, Iomega offers iStorage(TM) secure online storage for personal and professional use. Iomega also offers businesses and consumers a comprehensive data recovery services solution for recovering lost data due to hardware failure, file corruption or media damage. The Company can be reached at 1-888-4-IOMEGA (888-446-6342), or on the Web at http://www.iomega.com/.

NOTE: The statements contained in this release regarding Iomega's entry into the managed services market; plans to launch OfficeScreen SSL services in September; growth in managed security services or estimated future size of that market; Iomega's goals to grow the OfficeScreen business and launch additional types of managed services; all expectations or plans for CSCI or Iomega or for these two companies subsequent to the merger; expansion of managed services into international markets including the United Kingdom before the end of 2006; growth through selling branded managed services through several different channels, including telecommunications providers, hosting companies, VARs and Systems Integrators, direct and indirect sales organizations and retail operations; synergies with C I Host to meet the security needs of small and medium-sized businesses; all expectations and descriptions of plans or future possibilities involving C I Host; and all other statements that are not purely historical, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All such forward-looking statements are based upon information available to Iomega as of the date hereof, and Iomega disclaims any intention or obligation to update any such forward-looking statements. Actual results could differ materially from current expectations. Factors that could cause or contribute to such differences include, but are not limited to, closing the acquisition; successful integration of CSCI into Iomega; retaining and recruiting key personnel; the risks and uncertainties of entering a new market; competition from other larger service providers; technical difficulties with any product or service; risks surrounding the development of a worldwide channel to sell services; intellectual property rights; market adoption of managed services; unfavorable IT spending trends; and other risks and uncertainties identified in the reports filed from time to time by Iomega with the U.S. Securities and Exchange Commission, including Iomega's Annual Report on Form 10-K for the year ended December 31, 2005, and its most recent Quarterly Report on Form 10-Q.

Copyright(C) 2006 Iomega Corporation. All rights reserved. Iomega, Zip, REV, Active Disk, Micro Mini, iStorage, HotBurn and StorCenter are either registered trademarks or trademarks of Iomega Corporation in the United States and/or other countries. OfficeScreen(R) is a trademark of Iomega. All other trademarks, trade names, service marks, and logos referenced herein belong to their respective companies.

Media please contact: Chris Romoser, Iomega Corporation, (858) 314-7148 romoser@iomega.com Analyst/Investors, please contact: Preston Romm, Iomega Corporation, (858) 314-7188