Iomega Proprietary – Not for Public Distribution V-001.2 11/29/01
AO-DVD
The Digital Film Distribution Media of the Future

AO-DVD (Articulated Optical Digital Versatile Disk) technology is a newly conceived low-cost data distribution and content
execution media for integration into mainstream CD and DVD optical data storage drives. It was invented recently at Iomega
Corporation, the removable data storage company that has brought the world such data storage innovations as the Zip Drive,
Jaz Drive, PocketZip Drive and Peerless Drive. Iomega has also made a name for itself with several performance enhanced
CDRW optical data storage products.

AO-DVD can be seen as the next generation of CD-ROM or DVD-ROM for distribution of content. The reason for this statement
is that AO-DVD has the potential to support areal densities, which are 20 to 100 times greater than those presently shipping in
CD or DVD-ROM formats. AO-DVD technology is also amenable to being designed into the drive architecture of a CD or DVD
drive at very low additional cost. This means that it is a high-value augmentation technology for these present mainstream
technologies rather than a competing new standard. New AO-DVD-enabled CDRW or DVD-RW format drives will still be able to
record data at present CD/DVD densities, but will have access to low-cost AO-DVD content which, for example, is 40X larger
than that of these present optical ROM medias.

Inherent in the data architecture of AO-DVD is an increase in the transfer rate of data from the media to the drive. This transfer
rate increase is equivalent to the increase in capacity. With transfer rates at multiple tens of times faster than presently
available from optical ROM media, a whole array of new applications and markets for both CD and DVD drives with AO-DVD
modes is opened. A principal one is the ability to distribute and play high-definition video content at low cost. Others include
running interactive software and games directly from one’s optical drive, be it in a computer or Set-Top Box. The implications
are enormous.

The ability to create low-cost media with the same type cost structure as current CD-ROM and DVD media is believed to be of
paramount necessity for the success of AO-DVD technology. In fact, on a per MB or capacity basis it can be shown that AO-
DVD’s costs to produce are significantly less than CD or DVD-ROM media.

Some possible new applications and products that could be enabled by the commercial development of AO-DVD technology
would include:

•
Media the size of a quarter (DataPlay size disk, 32 mm) holding a full length HDTV movie (20GB).

o A micro personal video player the size of a packet of cigarettes to play video content.

•
A standard size 120 mm AO-DVD disk holding a film studio’s full menu of summer releases (e.g. 10-15 movies)
with a core DRM technology built in. This would enable the free distribution of this content to consumers much like
the AOL mass marketing of their ISP services through mass CD-ROM mailings.

•
A film artist’s (actor or directors’) complete works supplied and direct marketed to consumers upon the purchase of
a single title. In this way impulse purchase of films of the same genre are consumer enabled.

•
AO-DVD can be viewed as a technology to be leveraged in the developing Set-Top Box market share wars. Entire
libraries of DRM-accessible films on just a few AO-DVD disks can be supplied to the consumer for production
costs of pennies a movie.

•
A standard size 120 mm AO-DVD disk (>180 GB, single sided/single layer) would be one of the enabling
technologies, which would allow for cost-effective distribution of full-length fully digital movies to theaters. The
cost-saving implications for that industry are alone of considerable magnitude.

•
Enhanced CDRW drives with the capability to play full-length DVD movies on AO-DVD media (>20 GB) with lower
drive production costs than DVD. This value offering represents the capability to play movies but not record them.

AO-DVD opens a whole new vista in content distribution, much like CD-ROM created a whole new model for content distribution
in the 1990s’ and DVD-ROM has over the past couple of years.

Iomega is interested in exploring possible routes to AO-DVD’s commercialization for the distribution and marketing of studios’
digital video products. We are looking for the right synergism and support with corporate champions within the film industry. Let
us tell you about the technology behind this revolutionary new content distribution media we are developing.

Contact Information:
Fred Thomas




Phone: 801-332-4662
Chief Technologist, Advanced R&D

Fax: 801-332-1030
Iomega Corporation



Email: thomasf@iomega.com
1821 West Iomega Way
Roy, Utah 84067