Sega has agreed to include Iomega's 100MB Zip drive in a new collaborative product that will be designed to attach to Sega's Dreamcast system.

The new product will also be designed to increase the Dreamcast device's capabilities, not only for game playing, but for various web-based activities such as content storage resulting from E-mail and web searches.

Sega intends to sell private-label Dreamcast Zip disks, offering both the device and disks in game-oriented channels.

The jointly developed product is expected to be offered as an option to Sega Dreamcast customers in the third quarter of 1999.

Dreamcast began shipping November 27, 1998 in Japan and is expected to begin shipping in the U.S. and in Europe during the third quarter of 1999.

Sega of America's web site is located at http://www.sega.com . Iomega is on the web at http://www.iomega.com .