IIJ Acquires Patent Rights to SMF.

TOKYO -- Internet Initiative Japan Inc. (IIJ, NASDAQ: IIJI, Tokyo Stock Exchange Mothers: 3774), one of Japan's leading Internet access and comprehensive network solutions providers, today announced it has acquired the patent rights to the basic operations of SMF ("SEIL Management Framework"), a centralized network management system that was originally developed and introduced by IIJ in February 2003.

Outline of Patent

Patent number:      Patent No. 3774433
Name of Invention:  Means of connecting to a network--centralized
                    management system and procedures

SMF is a centralized network management system that was independently developed by IIJ. SMF uses a central server to perform integrated management of communication devices or household appliances that are installed in the workplace or the home. The technology allows users to take advantage of network services without having to perform complex initial set-up procedures, or to change settings. The specific features that are offered are as follows:

--Auto-configuration function based on 'zero configuration,' under which the user only needs to connect communication devices with built-in SMF functionality to a network and turn on the power. All settings are made automatically.

--Push-type transmission function that automatically updates set-up information (additions and deletions) to all communication device from the central management server.

--Automatic surveillance function that allows a constant monitoring and management of the operating conditions of communication devices.

The acquisition of this patent represents an acknowledgment of the novelty and originality of SMF and the growing importance of using a system that completely removes the burden configuring and connecting increasingly complex devices to a network.

Merits of and Background to the Present Technology

In the past, setting up a network was expensive and time-consuming since a specialist network engineer would have to individually configure all routers and other communication devices. SMF has been developed to avoid this problem by performing automatic set-up and enabling centralized management.

With the SMF network management system, users can simply connect communication devices to a network and turn on the power. All settings are then made automatically. Users can thus easily take advantage of secure high-level in-house or household network services without regard to communication devices.

Future Development of Services using the Present Technology

As well as developing its own services based on SMF (such as the IIJ SMF Service and the IIJ Internet-LAN Service), IIJ has also been providing SMF technology to numerous other companies, some of which are listed below. The company is also developing auto-generation technology for the automatic generation of network device functions by making use of SMF. IIJ is currently in the process of applying for the relevant patents (Patent Application 2005-321082).

IIJ is actively seeking to further promote and widen the use of SMF in a wide range of network environments.

List of IIJ services based on SMF

Service           Announcement Date   Outline
----------------------------------------------------------------------
IIJ SMF Service   24 June 2003        Central management service for
                                       SEIL routers developed by IIJ
----------------------------------------------------------------------
IIJ Internet-LAN  5 October 2005      Service for simple set-up of
 Service                               Ethernet WAN environment
----------------------------------------------------------------------


List of third-party services based on SMF

Service           Announcement Date   Vendor
----------------------------------------------------------------------
KCOM SMF Service  19 April 2004       KDDI Network and Solutions Inc.
                                       (formerly KCOM Inc.)
----------------------------------------------------------------------
SMF SETTERFREE    24 June 2004        NEC Networks & System
                                       Integration Corporation
                                       (formerly NEC System
                                       Integration & Construction,
                                       Ltd.)
----------------------------------------------------------------------
QTNet SMF Service 8 November 2004     Kyushu Telecommunication Network
                                       Co., Inc.
----------------------------------------------------------------------
OCN-SMF Service   30 January 2006     NTT Communications Corporation
----------------------------------------------------------------------


List of third-party communications devices with built-in SMF
functionality

Product           Announcement Date   Vendor
----------------------------------------------------------------------
FutureNet MA-410- 22 February 2005    Century Systems Inc.
 SEIL Series
----------------------------------------------------------------------
BB MediaRouter    14 October 2005     Oki Electric Industry Co., Ltd.
----------------------------------------------------------------------

About IIJ:

Founded in 1992, Internet Initiative Japan Inc. (IIJ, NASDAQ: IIJI, Tokyo Stock Exchange Mothers: 3774) is one of Japan's leading Internet-access and comprehensive network solutions providers. IIJ and its group of companies provide total network solutions that mainly cater to high-end corporate customers. The company's services include high-quality systems integration and security services, Internet access, hosting/housing, and content design. Moreover, the company has built one of the largest Internet backbone networks in Japan, and between Japan and the United States. IIJ was listed on NASDAQ in 1999 and on the Mothers market of Tokyo Stock Exchange in 2005. For more information about IIJ, visit the IIJ Web site at http://www.iij.ad.jp/en/.

The statements within this release contain forward-looking statements about our future plans that involve risk and uncertainty. These statements may differ materially from actual future events or results. Readers are referred to the documents furnished by Internet Initiative Japan 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.