COMPANY     Nancy  Andrews
CONTACT:    (714) 953-3000

                     I/OMAGIC TO REPORT FOURTH QUARTER 2002
                                OPERATING PROFIT

SANTA  ANA,  CA.,  April 8, 2003 --I/OMagic Corporation (OTCBB: IOMG), a leading
developer  and  marketer  of  data  storage  and  digital entertainment devices,
announced  today that it plans to report a $309,033 profit in the fourth quarter
of  2002  from  operations  when  it  files its Form 10-K on April 15, 2003. The
Company  will  report  a  net loss for the quarter of $5,356,626, primarily as a
result  of  its electing to take a one-time charge in the fourth quarter of 2002
of  $4,892,197  for the settlement of litigation and related legal expenses, and
$664,506  due  to  the  write-off  of  a  deferred  tax  asset.

"I/OMagic Corporation overcame a difficult economic climate to post an operating
profit in the fourth quarter of last year," said Steve Gillings, Chief Financial
Officer  of  I/OMagic  Corporation.  "While  that climate remains uncertain, the
Company  believes  that  it made significant progress at year end in controlling
costs which it will benefit from in 2003. The Company hopes to devote all of its
resources  towards  the  goal  of  a  strong  new  year."

About  I/OMagic I/OMagic develops and markets data storage (CD-ROM, CD-RW drives
&  media,  DVD-ROM  &  DVD+RW/+R  drives,  CD  Duplicator, MediaStation Writer &
Digital Photo Library) and digital entertainment devices (MP3 players & LCD Flat
Panel TV/Monitors). The Company sells its many products, under three brand names
- --  I/OMagic,  Hi-Val  & Digital Research Technologies -- through nationally and
internationally  recognized  computer  retail outlets, such as Best Buy, Circuit
City,  CompUSA,  Office  Depot,  OfficeMax,  Radio Shack U.S. and Future Shop of
Canada.  For  more  information, visit the I/OMagic Web site at www.iomagic.com.


Forward-looking  statements  in  this  release  with  respect  to  the financial
condition, results of operation and business of the Company 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, dependence on the PC and consumer
electronics  industries  and on product lines based on new technologies; foundry
capacity,  availability  and reliability; competition and pricing pressures; and
other  risks  detailed from time to time in the company's periodic reports filed
with  the  Securities  and  Exchange  Commission.