IOMEGA SHAREHOLDER GROUP CONTINUES OPPOSITION TO PROPOSED 1-5 REVERSE SPLIT
Austin, TX and Roy, UT -- (PRnetwire) -- September 1, 2001 -- Citing the possibility of a diminished voice in company affairs, a growing group of Iomega Corporation (NYSE: IOM) investors, claiming to hold millions of shares, is calling for rejection of a proposal to cut the number of outstanding shares by 80 percent via a "reverse split."
These investors point out that IOM is not pledging to permanently retire the more than 200 million shares removed via the split. Thus, current shareholders could see their ownership interest dramatically diluted if the IOM board would reissue, directly in the open market or through stock option plans, any or all of those shares at a later date.
The group hopes to raise enough shareholder awareness to defeat the board proposal at a meeting scheduled for September 28, 2001 in Roy, Utah.
In addition to pledging their own shares against the reverse split, shareholders are individually contacting financial institutions and other larger shareholders urging close attention to the proxy currently being distributed by the company.
The concerned shareholders are also calling particular attention to the mechanics of the vote. They point out that the rules will count proxies that are returned without instruction (blank) as votes in favor of the reverse split and they urge shareholders and institutions not to return blank ballots if they intend to "abstain."
The effort to say "no" to Iomega's board of directors on the reverse split springs from discussion forums on the Internet. The movement, in turn, has spawned a website that questions each argument in favor of the proposal made by the IOM board: http://pages.prodigy.net/paulw7/index.html
Investor frustration with Iomega Chairman of the Board, David Dunn, is running high because of the perception that he refuses to address shareholder concerns on this and several other issues.
Recent requests for clarification of company plans by shareholders and the media have failed to elicit response from Dunn or Iomega spokespersons.
Note: Iomega shareholders are eligible to vote on the reverse split proposal if they owned the stock as of the close of business August 16, 2001, even if they have since sold those shares. A shareholder may need to contact their broker to find out how to vote sold shares. All Iomega shareholders have certain rights including a right to change a voted proxy. Shareholders considering a change in vote should contact their broker to discuss these rights.
This release is for informational purposes only. Nothing in this release is intended or should be construed as specific instruction to any firm or any person on how to vote their proxy. How a firm or individual votes their shareholder interest and exercises their shareholder rights is strictly up to them as holders of common stock in the subject corporation.
url: http://pages.prodigy.net/paulw7/index.html
CONTACT:
Iomega Shareholders Group
Group Secretary, Steve Wirth
1-512-682-6935 ext 2842
email: iomshareholders@prodigy.net
or iomgroup@onebox.com
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