Iomega has announced plans to launch a tiny removable storage drive with a 1.5GB capacity by the middle of next year.

Named the DCT (for ‘digital capture technology’), the 9 gram media for the drive were developed in conjunction with Fujifilm, which contributed its ‘Nanocubic’ magneto-resistive (MR) technology to make possible the high capacity small form factor design.

Although described as being aimed at the camcorder and portable video players markets, the company is confident the system will also find its way into handheld computers and Table PCs.

“It is a product designer’s dream because it can provide high capacity, rugged, shock-resistant storage at low power consumption for small portable devices such as next generation camcorders, personal video recorders and tablet PCs,” Iomega’s president and CEO Werner Heid was quoted as saying in the press release.

The DCT will probably find itself in a head-to-head with flash memory cards of the type used in digital cameras. Although these are well established they tend to be very expensive relative to their capacity, making them unsuitable for use in computers. They also come in a bewildering array of incompatible formats. As ever the key will be price.

Iomega says it has already released working samples for OEMs to integrate into forthcoming products.