I/OMagic Enhances its Portable Storage Line-Up with Release of its GigaBank(TM) 8.0; Easy to Use, Pocket-Size 8GB(a) Storage Device is Targeted to Mobile Consumers

IRVINE, Calif.--Jan. 1, 20069, 2006--I/OMagic Corporation (OTCBB:IOMG), a leading provider of data storage products, announced today that it is set to ship to retailers the latest product in its portable storage line-up, the new GigaBank(TM) 8.0. The GigaBank(TM) 8.0 has a capacity of up to 8GB(a) of storage space in a miniature and lightweight USB 2.0 unit, designed to store MP3s, video and photos as well as back up documents or transfer files.

"We see tremendous growth potential with portable storage devices," states Tony Shahbaz, president of I/OMagic. "I/OMagic's product marketing strategy is to try to provide user friendly, stylish products that have the greatest storage capacity possible for consumers. We feel the GigaBank(TM) line fits within this plan, as they are targeted toward mobile consumers and carry large quantities of music, photos, video or documents with them where ever they go."

The GigaBank(TM) 8.0 is small (2"x0.5"x2.5") and lightweight (less than two ounces) and it requires no battery or power adapter. It is powered through a USB 2.0 port (which is also USB 1.1 backwards compatible). When not in use, the USB connector can be conveniently tucked into the enclosure. It comes with a USB extension cable for hard to reach USB ports. The GigaBank(TM) 8.0 is plug-and-play compatible and it supports Windows XP/2000/ME/98SE.

The I/OMagic GigaBank(TM) 8.0 will soon ship to national consumer electronics and office supply retailers and has an introductory MSRP of $199.99.

(a) Note: 1 GB=1 billion bytes.

A user's total accessible memory/storage/data capacity will be less than stated as a result of the user's operating system and other factors.

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

Forward-looking statements in this release with respect to the anticipated shipment date and sale price of the Company's new GigaBank(TM) 8.0 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.