IIJ to Broadcast Live High-Quality Video of H-IIA Rocket Launch for CATV; DV over IP Technology Provides High-Quality Video Transfer for Live Broadcast on January 19.

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 will broadcast live video of the Japan Aerospace Exploration Agency's H-IIA rocket launch (*1) for CATV with DV over IP technology, which enables digital video (DV) signals to be distributed over the Internet without compression.

The broadcast will cover the launch of the H-IIA Launch Vehicle 8 on its mission to take the Advanced Land Observing Satellite (ALOS) into orbit. The launch is scheduled for January 19, 2006, at 10:33 AM JST at the Tanegashima Space Center. Video footage will include land-based shots of the initial launch as well as video from cameras mounted on the rocket, which will provide a valuable real-time view of the rocket as it heads into orbit and as the satellite separates from the rocket. In contrast to conventional streaming technology, this new technology is able to deliver lossless, vividly live graphics because the video data is not compressed before being broadcast over the Internet.

The video signal will be fed to CATV broadcasters such as LCV Corporation in Suwa City, Nagano, and will enable cable TV viewers to watch the broadcast as regular programming on a CATV channel.

IIJ also plans to test long-distance distribution by transmitting the signal to the Hosei University Research Institute in California. The large hop between Japan and the U.S. is vulnerable to quality problems and delays, and this test will demonstrate the capacity of IIJ's backbone to transfer high-quality video, and contribute to IIJ's goal of promoting video transfer technology for universities and research centers as well as CATV broadcasts.

Starting last year, IIJ and its affiliate IIJ Media Communications, Inc. (*2)(IIJ-MC) conducted joint tests of high-quality video transfer using DV over IP technology, and in July 2005, the technology was used to provide live video of the Space Shuttle Discovery launch, and again in September for a live broadcast of the annular eclipse from Madrid, Spain. Since the merger of IIJ and IIJ-MC in October 2005, IIJ has continued to focus on media operations to take advantage of the high-quality video transfer technology that was cultivated by IIJ-MC.

The IIJ group will continue to provide advanced network environments for a broad range of users, and promote innovative Internet technology.

--(*1) For details about the H-IIA Launch Vehicle 8 and the launch of ALOS, see the Japanese Aerospace Exploration Agency website at http://h2a.jaxa.jp/index_e.html.

--(*2) IIJ-MC merged with IIJ on October 1, 2005. For details see the August 12, 2005, press release "IIJ Group Announces Corporate Reorganization" at http://www.iij.ad.jp/en/pressrelease/2005/0812.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.