New ``Dual Problem Solver'' Device is a USB 2.0 External Floppy Drive and 7-n-1 Media Card Reader

IRVINE, Calif.--(BUSINESS WIRE)--July 8, 2005--I/OMagic Corporation (OTCBB:IOMG - News), a leading provider of data storage products, announced today the release of its DataStation 2, a USB 2.0 external floppy drive with built-in 7-n-1 media reader.

Highlights include a small and lightweight proprietary design, with a built-in lighting system and the ability to draw power directly from the USB 2.0 port of any personal computer or notebook computer, which eliminates the need for an external power adapter.

"The DataStation 2 is a dual problem solver. We've combined two essential components, a floppy drive and a 7-n-1 media card reader, as a solution for users that need these components, but do not have them built into their computer," said Tony Shahbaz, president and CEO of I/OMagic Corporation. "The DataStation 2 can be easily plugged in to any USB 2.0 port and users can easily upload files from floppy discs or read files from any of the seven flash media cards."

The DataStation 2 features sophisticated power control circuitry that significantly reduces power consumption. It also comes with a lighting system that switches from blue to red with a touch of a button. The DataStation 2 is compatible with floppy disc format sizes of 720KB, 1.2MB and 1.44MB. The 7-n-1 card reader supports Compact Flash (CF), IBM Micro Drive, Multimedia (MMC), Secure Digital (SD), Memory Stick (MS), Memory Stick PRO and Smart Media (SM). The DataStation 2 is Windows XP, 2000, ME and 98SE compliant.

The DataStation 2 has an introductory price of $59.99.

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®, Hi-Val® and Digital Research Technologies® -- through nationally-recognized computer, consumer electronics and office supply superstores and other retailers.

Forward-looking statements in this release with respect to the anticipated price of the Company's new DataStation 2 device, as well as product performance, 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 dependence on the PC and consumer electronics industries and on product lines based on new technologies; the company's ability to develop new products based on new or evolving technology and the market's acceptance of those products; manufacturing capacity, availability and reliability; competition and pricing pressures in the technology industry; 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.