IIJ Joins EPCglobal, the Network RFID -Wireless IC Tag- Standards Organization.

TOKYO -- Internet Initiative Japan Inc. (IIJ, NASDAQ: IIJIE), one of Japan's leading Internet access and comprehensive network solutions providers, today announced that it is becoming a member in EPCglobal, the international standards body for Network RFID(*1) System (Auto-ID(*2)) technology. EPCglobal was established in 2003 and is the world's largest standards organization, with 191 member companies, including huge international distributors such as Wal-Mart Stores, Inc., SI vendors, and telecommunication carriers. In addition to creating global standards, they issue and administer EPCs(*3), which are identifiers recorded in RFID systems, and are driving the adoption of Auto-ID in the global market.

IIJ provided technical personnel to the Auto-ID Center(*4), the precursor of EPCglobal, to assist with the research and technological development needed to promote Auto-ID. In 2003, IIJ participated in a test using RFID with a large apparel manufacturer. IIJ developed the world's first ONS(*5) and EPCIS(*6) system based on the Auto-ID standard, and implemented it on the network, an achievement that was widely recognized and applauded. In addition to supporting the standardization of the Auto-ID technology that was developed by EPCglobal, IIJ will participate in international tests and other activities, and is developing new technologies and systems.

IIJ has plans to introduce the Auto-ID Solution Service. This service will create components from the basic Auto-ID system (ONS, EPCIS, etc) to allow easy implementation of RFID for customers that want to use or test Auto-ID systems. Before releasing this service, IIJ will establish a permanent Auto-ID show room at its headquarters on July 28, 2004 where customers can get a demonstration and see solutions that meet their needs. A separate announcement will be released when the details of the Auto-ID Solution Service are finalized.

(*1) RFID: Radio Frequency Identification. Also goes by other names, such as wireless IC tags and IC chips. Their use is being widely tested for identifying and managing people and things.

(*2)Auto-ID: The name of the mechanism for managing RFID information through tag readers and databases throughout the world, which is becoming a technological standard. Potential applications include attaching RFIDs to products instead of bar codes, and attaching RFIDs to materials and products in conjunction with a global SCM system to improve productivity at the factory.

(*3) EPC (Electronic Product Code): One of the code schemes recorded in RFIDs. By attaching RFIDs to products, they can be used to manage those products and their distribution. The numbers are sufficiently long that a serial number could be created for each individual product.

(*4) Auto-ID Center: Nowknown as Auto-ID Labs. A research laboratory established at the Massachusetts Institute of Technology (MIT) in Boston in 1999. There are also sister research laboratories at Cambridge University in the UK and Keio University SFC. It is a non-profit organization where researchers and technologists from a variety of disciplines gather to research Auto-ID technology in cooperation with EPCglobal.

(*5) ONS (Object Naming Service): A technology for locating servers where product information is stored for a certain EPC recorded on an IC tag. It works much like the DNS on the Internet.

(*6) EPCIS (EPC Information Service): A service that manages and provides information on the "things" associated with EPC (usage, history, etc).

The Advantages of Auto-ID

Auto-ID associates all physical objects or products with information that is distributed over a network. The new technology is expected to lower TCO (Total Cost of Ownership) and increase value.

Remote, Central, Automatic

The information recorded in a tag can be read and written remotely, centrally, and automatically. It does not require human intervention, and by using this instead of bar codes, there are almost unlimited applications, such as increasing SCM effectiveness, increasing production management effectiveness, and tracing products.

Increased Information Volume

RFID can store a large amount of information, which enables the more effective management of detailed information about a product. RFID has the ability to store information as, individual serial numbers for each product, production and distribution history, and instructions on product use.

Cross-referenced Input

Auto-ID maintains the EPSIC (tag data management system) for all the users in the network (in an SCM, this include the maker, warehouse, transport company, and retail stores). Each company can use the tag information in processing the product, and through the network, information can be acquired by the EPCIS of other companies. The maker can find out the delivery status of the product from the transport company in real time, and the retailer can check the ingredients or components that make up the product, which will enable a flexible relationship and cooperation.

About IIJ

Founded in 1992, Internet Initiative Japan Inc. (IIJ, NASDAQ: IIJIE) is one of Japan's leading Internet-access and comprehensive network solutions providers. 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 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.