Iomega kicks off a review of its pounds 4.3m pan-Euro business

The disc storage company Iomega is putting its pounds 4.3 million

above-the-line pan-European account up for review.



The company, headquartered in Switzerland, has selected four agencies

for its shortlist. Leith London, Springer & Jacoby International, Farm

and Myrtle are competing for the account in a pitch process being run

through the Advertising Agency Register.



The UK incumbent is Euro RSCG Wnek Gosper, but the agency is not

pitching.



In October last year, Iomega, best known for manufacturing Zip disks,

branched out into the consumer electronics market by launching the

HipZip digital music player. The player stores MP3s on the company's

40MB PocketZip disks, which at around pounds 8 are much cheaper than

current flash memory card alternatives.



Earlier this month in the US, Iomega named Werner Heid as its president

and chief executive. However, Heid projected an earnings shortfall for

the second quarter of this year.



The company estimated revenue will be in the range of dollars 180

million to dollars 190 million, a significant decrease from the dollars

304 million it reported for the second quarter of 2000.



Iomega blamed the revenue shortfall mainly on lower revenues from Zip

and Jaz drives and disks.



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