EMC Finally to Acquire Iomega, for $213 million

EMC
Corporation and Iomega Corporation announced a
definitive agreement for EMC to acquire San Diego-based Iomega in a cash
tender offer of $3.85 per outstanding share, or approximately $213 million.
The addition of Iomega’s products, brand name, route to market and industry
expertise will enhance EMC’s reach and focus in the rapidly-growing consumer
and small business markets.

EMC intends to commence the tender offer in the next two weeks, with
completion of the tender offer expected in the second quarter of 2008, subject
to customary closing conditions and regulatory approvals. The acquisition is
expected to have no material impact on EMC financial results for the full 2008
fiscal year.

Joe Tucci, EMC Chairman, President and CEO, said, "Iomega will play a key
role in EMC’s strategy to expand our information storage and management
capabilities deeper into the high-growth consumer and small business markets.
In addition to industry-leading products and a household consumer brand,
Iomega brings to EMC a deep knowledge of and established business practices
for servicing consumers and small businesses. Iomega and EMC represent a
powerful combination that ultimately will benefit these customers through the
protection, security and simplified management of their rapidly growing
information."

Jonathan Huberman, Chief Executive Officer, Iomega Corporation, said,
"Today begins an exciting new future for Iomega and our customers. Once the
acquisition is final, Iomega will be able to fully leverage EMC’s vast assets
to grow our business globally. EMC brings to Iomega a new opportunity for
accelerated innovation that will translate into new product capabilities for
Iomega’s extensive customer base. Through the renowned Iomega brand; thousands
of retail, direct marketing and distribution channel partners; and Iomega’s
talented people, EMC will be able to extend its reach into the high-growth
consumer and small business market segments."

Upon completion of the acquisition, Iomega will serve as the core of EMC’s
new Consumer/Small Business Products Division. The new division (led by
Jonathan Huberman and reporting to Joel Schwartz, Senior Vice President and
General Manager, EMC Storage Platforms) will also include EMC Retrospect
and EMC LifeLine software. EMC plans to build the division around the
strength of the Iomega organization, brand, products and partner ecosystem.

Iomega adds to the growing list of product offerings EMC is amassing for
the consumer and small business markets. As long-standing partners, EMC and
Iomega will continue to build upon their existing foundation of technology
integrations. Since 2004, Iomega has been packaging and selling EMC Retrospect
backup software with all its external disk drives. In January 2008, EMC
announced the new EMC LifeLine software for the consumer, home office and
small business markets. Simultaneously, Iomega announced plans to embed EMC
LifeLine into its multi-drive network storage products, which are expected
this summer with the launch of its next-generation StorCenter Network Hard
Drive products.

Iomega Corp.

EMC Corp.