SAN DIEGO, July 11, 2006 - Iomega Corporation (NYSE: IOM), a global leader in data protection, today announced that it has reached a definitive agreement to acquire CSCI, Inc., a San Diego-based managed services and outsourced IT company. CSCI is the 2006 winner of the Juniper Networks, Inc. "Managed Services Provider of the Year" award and the creator of OfficeScreen services, a suite of managed virtual private networks (VPNs) that provide small to medium-sized businesses with secure wide-area networks that efficiently and economically link offices and remote workers.
"With the addition of OfficeScreen, Iomega is taking the first step toward becoming a managed services company," said Jonathan Huberman, Chief Executive Officer, Iomega Corporation. "Small businesses need simple, secure, easy-to-use networks from a company they trust. The debut of Iomega OfficeScreen services will expand on Iomega's 25-year history of dependable data security products for SMBs and position the company to capitalize on the growing managed services market."
Currently hundreds of small and medium-sized businesses in the U.S. utilize OfficeScreen as a secure, outsourced network security and VPN service that does not require upfront hardware expenses or setup costs, an appealing combination for small businesses that don't have dedicated IT resources or large IT budgets. OfficeScreen's firewall/VPN, Secure Socket Layer (SSL) and IPSec (IP security) bundles create wide area networks that connect remote offices and workers to applications and data at a companys headquarters, while countering security threats from hackers, worms and viruses across a companys entire network.
"Today's SMBs face many of the same risks and regulatory requirements as Fortune 100 corporations," said Huberman. "Whether it's HIPAA compliance, SEC regulations, Sarbanes-Oxley requirements or protection from malicious intrusions, SMBs must ensure the privacy of their customers' data and protect the intellectual property of their businesses. Iomega's new OfficeScreen services are simple, cost-effective turn-key security platforms that deliver on the network needs of todays small and medium businesses."
OfficeScreen, which incorporates multi-function remote access hardware solutions from the Juniper Networks security product lines, creates new growth opportunities for both Iomega and Juniper Networks.
"Iomega's purchase of CSCI and OfficeScreen represents an exciting new opportunity to increase the utilization of the Juniper products with small and medium-sized businesses," said Robert Bruce, Juniper Networks' Vice President of Americas Channels. "Iomega has a strong global brand name in data protection for small businesses and is well positioned to become a major player in the managed services market. Now that it has acquired OfficeScreen, we look forward to partnering with Iomega to broaden the reach of Juniper's 'Best in Class' remote connectivity solutions in the SMB space."
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 plans to launch its new managed services in international markets before the end of 2006.
"OfficeScreen will provide the basis of a new growth platform and transformation engine for Iomega," Huberman said. "To make that happen, we will leverage the tremendous equity of the Iomega brand, our worldwide sales, marketing and operations infrastructure as well as a quarter-century of service to SMB customers around the world."
Rich Tear, CEO of CSCI, said of the acquisition, "Iomega's purchase of CSCI makes it possible to accelerate the growth of OfficeScreen by multiples that we could not have accomplished on our own. Combining the international Iomega name, its marketing and sales acumen and its financial capabilities with the superior network services offerings of OfficeScreen is a synergistic recipe for growth and success in the exploding market of managed services for SMBs."
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. In addition to OfficeScreen, CSCI, Inc. has a systems integration business that is included in the Iomega acquisition of the company. The transaction is expected to close within 60 days.
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 awardwinning storage products include the Iomega REV 35GB drive, available in several computer interface models, as well as two automation solutions: the rack mount REV 1000 Autoloader and the new desktop form factor REV Loader 280; Zip 100MB, 250MB and 750MB drives; high-performance Iomega external hard drives and HDD solutions such as the Iomega StorCenter Network Hard Drive, available in multiple capacity sizes, including a new 1TB wireless model; Iomega Mini USB Flash drives, Micro Mini 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 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 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 www.iomega.com.
