EMC To Acquire Iomega

Advances Support for the Rapidly-growing Information Storage Needs of

Individual Consumers and Small Businesses

Apr 08, 2008, 01:00 ET from EMC Corporation

    HOPKINTON, Mass. and SAN DIEGO, April 8, 2008 /PRNewswire/ -- EMC
 Corporation (NYSE:   EMC), the world leader in information infrastructure
 solutions, and Iomega Corporation (NYSE:   IOM), a global leader in data
 storage and protection for consumers and small businesses, today 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
     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(R) and EMC LifeLine(TM) 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.
     About Iomega
     Iomega Corporation, headquartered in San Diego, is a worldwide leader
 in innovative storage and network security solutions for small and
 mid-sized businesses, consumers and others. The Company has sold more than
 400 million digital storage drives and disks since its inception in 1980.
 To learn about all of Iomega's digital storage products and managed
 services solutions, please go to the Web at www.iomega.com. Resellers can
 visit Iomega at www.iomega.com/ipartner.
     About EMC
     EMC Corporation (NYSE:   EMC) is the world's leading developer and
 provider of information infrastructure technology and solutions that enable
 organizations of all sizes to transform the way they compete and create
 value from their information. Information about EMC's products and services
 can be found at www.EMC.com.
     EMC and Retrospect are registered trademarks and LifeLine is a
 trademark of EMC Corporation. Iomega is a registered trademark of Iomega
 Corporation. All other trademarks are the property of their respective
     This release contains "forward-looking statements" as defined under the
 Federal Securities Laws. Actual results could differ materially from those
 projected in the forward-looking statements as a result of certain risk
 factors, including but not limited to: (i) adverse changes in general
 economic or market conditions; (ii) delays or reductions in information
 technology spending; (iii) our ability to protect our proprietary
 technology; (iv) risks associated with managing the growth of our business,
 including risks associated with acquisitions and investments and the
 challenges and costs of integration, restructuring and achieving
 anticipated synergies; (v) fluctuations in VMware, Inc.'s operating results
 and risks associated with trading of VMware stock; (vi) competitive
 factors, including but not limited to pricing pressures and new product
 introductions; (vii) the relative and varying rates of product price and
 component cost declines and the volume and mixture of product and services
 revenues; (viii) component and product quality and availability; (ix) the
 transition to new products, the uncertainty of customer acceptance of new
 product offerings and rapid technological and market change; (x)
 insufficient, excess or obsolete inventory; (xi) war or acts of terrorism;
 (xii) the ability to attract and retain highly qualified employees; (xiii)
 fluctuating currency exchange rates; and (xiv) other one- time events and
 other important factors disclosed previously and from time to time in EMC's
 filings with the U.S. Securities and Exchange Commission. EMC disclaims any
 obligation to update any such forward-looking statements after the date of
 this release.
     The tender offer described in this announcement has not yet commenced.
 This announcement is neither an offer to purchase nor a solicitation of an
 offer to sell any shares of Iomega. The solicitation and the offer to buy
 shares of Iomega common stock will be made pursuant to an offer to purchase
 and related materials that EMC and its wholly owned subsidiary intend to
 file with the U.S. Securities and Exchange Commission. At the time the
 tender offer is commenced, EMC and its wholly owned subsidiary intend to
 file a Tender Offer Statement on Schedule TO containing an offer to
 purchase, forms of letters of transmittal and other documents relating to
 the tender offer, and Iomega intends to file a Solicitation/Recommendation
 Statement on Schedule 14D-9 with respect to the tender offer. EMC, its
 wholly owned subsidiary and Iomega intend to mail these documents to the
 stockholders of Iomega. These documents will contain important information
 about the tender offer and stockholders of Iomega are urged to read them
 carefully when they become available. Investors and stockholders of Iomega
 will be able to obtain a free copy of these documents (when they become
 available) and other documents filed by Iomega or Purchaser with the SEC at
 the website maintained by the SEC at www.sec.gov. In addition, the tender
 offer statement and related materials may be obtained for free (when they
 become available) by directing such requests to EMC Corporation at 176
 South Street, Attention: Office of the General Counsel, Hopkinton, MA
 01748. Investors and stockholders may obtain a free copy of the
 solicitation/recommendation statement and such other documents (when they
 become available) from Iomega by directing requests to Iomega at 10955
 Vista Sorrento Parkway, Attention: Corporate Secretary and General Counsel,
 San Diego, CA 92103.

SOURCE EMC Corporation