SOURCE: RedChip Companies

March 16, 2006 14:52 ET

RedChip Independent Initiates Research Coverage on I/OMagic Corporation (OTC BB: IOMG) With a $10.40 Price Target

ORLANDO, FL -- (MARKET WIRE) -- March 16, 2006 -- RedChip Independent, the nation's leading source of independent research, recently initiated coverage on I/OMagic Corporation (OTC BB: IOMG). RedChip Research Analyst James Altenbach issued a Buy rating with a target price of $10.40:

"We believe that the Company is well positioned to take advantage of the fast growing market for Blu-Ray High Capacity Storage technology, as well as their Gigabank™ line, which targets the fast growing portable storage market… We expect that the Company will turn a small profit by Q206 and show a meaningful profit for 2007. We recommend assuming a target of $10.40 by year end 2006."

For Companies who cover 1-99 companies, RedChip Independent is currently ranked #1 by Investars, the premier research rating service, for generating positive returns (unaudited). For your complimentary copy of the IOMG RedChip Research Report please visit http://www.redchip.com/subscriber.asp?page=requestIOMG.

About I/OMagic

I/OMagic Corporation provides optical data storage products and sells GigaBank™ products, portable magnetic data storage products. In addition, I/OMagic sells digital entertainment and other products.

About RedChip Independent™

RedChip Independent Research, a division of RedChip Companies, writes research on small-cap companies. RedChip's success has been documented in Forbes, Barron's, and the Wall Street Journal. Dedicated to "discovering tomorrow's blue chips today,"™ RedChip's analysts seek out undiscovered, emerging growth companies. For more information, visit www.redchip.com/independent.asp

Copyright

This research is published by RedChip Independent, a division of RedChip Companies, Inc., 501 N. Orlando Ave., Suites 313-318, Winter Park, FL 32789. Phone: 1-800-RED-CHIP. Contents are protected by copyright and are the property of RedChip Companies, Inc. Duplication or transmission of the contents is prohibited without the written consent of the publisher.

Disclosures

The analysts contributing to this report do not hold any shares of IOMG. Additionally, the analysts contributing to this report certify that the views expressed herein accurately reflect the analysts' personal views as to the subject securities and issuers. RedChip certifies that no part of the analysts' compensation was, is, or will be, directly or indirectly, related to the specific recommendation or views expressed by the analyst in the report. Additional information on the securities mentioned in this report is available upon request. This report is based on data obtained from sources we believe to be reliable, but is not guaranteed as to accuracy and does not purport to be complete. As such, the report should not be construed as advice designed to meet the particular investment needs of any investor. Any opinions expressed herein are subject to change. RedChip is an affiliate of the Aurelius Consulting Group, Inc. I/OMagic Corporation is a client of the Aurelius Consulting Group, Inc. I/OMagic Corporation did not commission this research report; nor did they compensate RedChip or the Aurelius Consulting Group, Inc. for this report. Providing independent research for I/OMagic Corporation is not required in the Contractual Agreement between Aurelius Consulting Group, Inc. and I/OMagic Corporation. Only select Aurelius Consulting Group Inc. clients qualify for RedChip Independent Research based on the RedChip Independent Criteria. In the purview of Section 17(b) of the Securities Act of 1933 and in the interest of full disclosure, we call the reader's attention to the fact that the Aurelius Consulting Group is an investor relations firm hired by the Company and receives a monthly cash fee of $8,500, and receives warrants to purchase up to 30,000 shares of common stock of the Company (the "Warrants"), comprised of 15,000 shares with an exercise price of $8.00, and 15,000 shares with an exercise price of $10.00.

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