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The Honolulu Advertiser

Posted on: Tuesday, May 22, 2001

Iomega president Albertson resigns

By Catherine S. Blake
Associated Press

SALT LAKE CITY — Bruce Albertson, chief executive and president of Iomega Corp. resigned yesterday, amid "differences" between his and the board of directors' goals for the computer hardware maker.

Chris Romoser, a company spokesman, declined to comment on Albertson's resignation, deferring instead to a company press release.

"Bruce's resignation is, in large part, the result of differences between Bruce and the Board over the long-term strategic direction of the company," said David J. Dunn, chairman of Iomega's board of directors, in a statement.

Albertson was the fourth president and CEO for Iomega in as many years.

A securities analyst who follows the Roy, Utah-based maker of computer zip drives and other portable storage devices called the move "bad news for the company."

Stan Corker, Director of Technology Research for Emerald Research, said Iomega has stumbled in the last four years because of problems with marketing and leadership turmoil.

Albertson's hiring a year and a half ago signaled a turn around, he said.

"The real issue is that the chairman of the board runs this (company) as if it were his own," he said. "He handcuffs his CEOs and prevents them from doing the right thing, then they get frustrated and (leave)."

Calls left for Dunn by The Associated Press were not immediately returned.

Iomega manufactures and markets zip drives and disks that help people save large amounts of data on computers.

The 21-year-old company grew exponentially in the mid-1990s. In 1994, Iomega made $141 million in revenue. In 1997, they had jumped to $1.74 billion. For the last four years, revenue has steadily declined, coming in at $1.3 billion in 2000.

Shares of Iomega were up 2 cents to close at $3.48 in trading on the New York Stock Exchange, but in extend trading, shares were down 28 cents to $3.20.