Crosswave to Offer ``Private IP Service'' in Conjunction with Sales Partners; Provides a Highly Secure Closed Network.

Business Editors/High-Tech Writers

TOKYO--(BUSINESS WIRE)--March 10, 2003

Crosswave Communications, Inc. ("Crosswave,") (Nasdaq:CWCI), today announced the creation of its "Private IP Service" which will be offered beginning April 1, 2003.

The new service will enable our sales partners to provide their customers with secure network services through our wide area network. This service will specifically benefit mid-sized companies, with multiple sites nationwide.

"With the fast penetration of the broadband network, we see strong demand for definitive and high-quality network services from various types of corporate customers," said Akio Onishi, CEO of Crosswave. "The network service market is now significantly expanding accelerated by the growth of ADSL or FTTH usage. The benefits of high-speed secure network now become available for all types of enterprises and corporates. The new service enhances our service lineup in respond to the needs of mid-sized corporate network users. Through NTT East and NTT West FLET's service access lines(a), the installation of IPSec technology enables us to provide customers secure and closed networks connecting to Crosswave's Ethernet-based backbone. We are committed to make this service as a key solution for mid-sized corporate customer's network system enhancement by adding various features and functions and working closely with our partners."

Sales partners can provide "Private IP Service" to their customers as their solution services by using their original network equipment and related systems or applications. Leveraging this service, in particular the advantage of the closed wide-area network feature, network system applications such as sharing the business software or storage servers among the sites can be implemented and provided easily.

With the release of the service, we will introduce the FITELnet series router (http://www.furukawa.co.jp/fitelnet/index.html) manufactured by Furukawa Electric Co., Ltd. as one of the terminal equipment to be used for this new service. Furukawa Electric Co., Ltd is one of the largest supplier of the broadband routers for business sites and reputed with its high-throughput and versatile functions.

Crosswave is continuously seeking sales partners with the aim of expanding the customer base for the "Private IP Service."

(a) NTT's FLET's service provides local ADSL or FTTH access line

service with the largest service coverage in Japan.

About Crosswave

Crosswave Communications, Inc. (Nasdaq:CWCI) offers broadband data communication services on Japan's first nationwide fiber-optic network specifically designed and dedicated to data traffic. Crosswave was established in October 1998 by Internet Initiative Japan Inc. (IIJ), (Nasdaq:IIJI), Sony Corporation and Toyota Motor Corporation with the goal of providing advanced, high-speed, cost-effective, end-to-end data communications services to customers in Japan and to take advantage of market growth and demand for broadband data communications networks.

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 Crosswave Communications, Inc. 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.