IIJ Concludes a Sales Consignment Agreement for the IIJ SMF sx Service with NTT East.

NTT East Launches New Service, SMF for FLET'S VPN 

TOKYO -- Internet Initiative Japan Inc. (IIJ, NASDAQ: IIJI, TSE Mothers: 3774), one of Japan's leading Internet access and comprehensive network solutions providers, today announced that it has concluded a sales consignment agreement for the IIJ SMF sx Service with Nippon Telegraph and Telephone East Corporation (NTT East).

Under this new agreement, NTT East has this month launched SMF for FLET'S VPN, which offers the IIJ SMF sx Service and Regulated PPPoE Account Service as a package to customers using FLET'S VPN services, such as FLET'S Access Port and FLET'S Group Access.

Using SMF for FLET'S VPN, customers can set up and manage the routers (service adapters) required for FLET'S Access Port, FLET'S Group Access, and other FLET'S VPN services, quickly, cheaply, and accurately, making it easy to build and operate a network.

IIJ will continue to actively develop SMF and endeavor to create an environment in which the user can easily utilize a network with peace of mind, anywhere, at any time.

The IIJ SMF sx Service

The IIJ SMF sx Service makes it easy to configure, operate, manage, and maintain a network in an integrated fashion. Customers need only to connect IIJ's proprietary SEIL routers to the Internet at each of their locations and power them up. The routers automatically complete all network configurations, including VPN and other settings. Customers can then manage SEIL routers at all their locations through a special Web interface, which greatly reduces the work required to maintain equipment and add network functionality. This greatly reduces the cost associated with network administration.

The Regulated PPPoE Account Service

The Regulated PPPoE Account Service is used to provide special dynamic IP addresses that enable access to SMF systems that use the IIJ SMF sx Service. The service provides PPPoE accounts that can be used over the FLET'S, ADSL, and B-FLET'S lines provided by NTT East and NTT West, but that cannot be used to connect to the Internet.

For details, see <http://www.iij.ad.jp/service/system/IIJ-SMF_sx.html>.

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.