Crosswave to Combine Wide Area IP Platform service with IIJ SMF; IIJ Group Enhances its Ability to Provide Total Solutions for System Integrators.

Business Editors/High-Tech Writers

TOKYO--(BUSINESS WIRE)--July 21, 2003

Crosswave Communications, Inc. (Crosswave, NASDAQ: CWCI), today announced that it will combine its "Wide Area IP Platform Service" with the "SEIL Management Framework (SMF)", developed by Internet Initiative Japan Inc. (IIJ, NASDAQ: IIJI). This combination enhances the IIJ Group's ability to provide Total Solutions for system integrators involved in network construction for nation-wide franchises and large-scale businesses.

"Although many systems integrators in Japan are currently utilizing NTT FLET'S Office Wide nationwide business network, the burden of the network construction and maintenance becomes a critical issue," said Akio Onishi, CEO of Crosswave. "By adopting this combined solution, system integrators can focus on their core business since they will outsource network management including authentication systems, and configuration and maintenance of on-site equipment."

In addition, Crosswave will add a function to its Wide Area IP Platform Service which will enable multicast broadcasting on NTT FLET'S Network beginning in August 2003, which will improve the level of network services provided to the customers of systems integrators.

IIJ Group will continue to create value-added features to enhance its "Total Solution" package and provide customers with the optimal combination of IIJ Group companies' network services.

Wide Area IP Platform Service

Crosswave uses a high-capacity wide-area backbone and their deep experience with Ethernet technology to build closed corporate networks that provide secure environments separated from the Internet. NTT FLET'S and other broadband access lines are used for local loop. Also the Wide Area LAN Service can be connected together for mission critical networks with high-level security, multiple protocols or other special requirements.

SEIL Management Framework (SMF)

IIJ announced the world's first (1) network service operating system in February 2003. By managing service adapters at all of customer premises by centralized server, varied and complex corporate network configurations, construction, operation, administration and maintenance can be simplified. Customers connect their network to the SEIL series adapter at their locations and all network functions can be accessed immediately. Network administrators can access all service adapters network-wide through a Web interface, dramatically reducing the physical labor required to install, configure or reconfigure new equipment or network features.

(1) Patent Pending (Application 2002-359720)

About Crosswave

Crosswave Communications Inc. (Crosswave, NASDAQ:CWCI) is a data communications carrier offering customers reliable and versatile broadband networks and network services, enabling them to streamline and innovate their business infrastructure. Founded in 1998 by Internet Initiative Japan (NASDAQ: IIJI), Sony Corporation (NYSE: SNE) and Toyota Motor Corporation (NYSE: TM), the Company has made groundbreaking changes in the Japanese telecommunications market by offering a completely data-centric network. Currently, 90% of the traffic on Crosswave's nationwide network infrastructure is Ethernet-based, provided mainly through its flagship, Wide-area Ethernet Platform Service. Launched in 1999, the Wide-area Ethernet Platform service introduced a brand new type of network service to the market. The Company's fully integrated data centers and other services have redefined the role of carrier services by accommodating entire corporate system requirements. With the quality of its networks and its wide-ranging value-added features, the company has been a pioneer in the development of the data communications market in Japan. The Company offers its services to a diverse base of over 400 customers including many blue-chip companies in Japan.

About IIJ

Founded in 1992, Internet Initiative Japan Inc. (IIJ, NASDAQ: IIJI) is Japan's leading Internet-access and comprehensive network solutions provider. The company has built one of the largest Internet backbone networks in Japan, and between Japan and the United States. IIJ and its group of companies provide total network solutions that mainly cater to high-end corporate customers. Services range from the delivery of new generation network services over an optical-fiber infrastructure that is optimized for data communications, to the construction of pan-Asian IP backbone networks. The company also offers high-quality systems integration and security services, internet access, hosting/housing, and content design.

The statements within this release contain forward-looking statements about our future plans that involve risk and uncertainties. These statements may differ materially from actual future events or results. Readers are referred to the documents filed by Internet Initiative Japan Inc. and Crosswave Communications with the SEC, specifically the most recent reports on Forms 20-F and 6-K, which identify important risk factors that could cause actual results to differ from those contained in the forward-looking statements.