Internet Initiative Japan and Kyushu Communications Network Co. Announce a New Business Alliance.

TOKYO -- Internet Initiative Japan Inc. (IIJ, NASDAQ: IIJI), one of Japan's leading Internet access and comprehensive network solutions providers, and Kyushu Communications Network Co., Inc. (QTNet) today announced that the two companies have reached an agreement for a business alliance between IIJ's SMF Service and QTNet's BBIQ Select Service.

Through this alliance

1. QTNet will begin providing Internet VPN service using IIJ's SMF Service, (*1)

2. IIJ will offer Internet connectivity services for corporate customers through QTNet's fiber-optic broadband service, BBIQ Select Service. (*2)

The SMF Service is a network management solution that uses IIJ's SEIL Series autonomous router, which greatly reduces the manual operation required to implement configure, or change network functions.

QTNet's BBIQ Select Service is a fiber-optic broadband service with speeds of up to 100 Mbps on both the upload and download, and provides customers with a fiber-optic broadband connection and a choice of providers.

Preparations for a mutual network connection between QTnet and IIJ for these services are in progress, and each company is expected to start delivering the respective services soon.

IIJ and QTNet will harness the momentum of this alliance to further expand the SMF and BBIQ Select Services.

(*1) This service became commercially available in June 2003 and is now in use in approximately 3,000 locations, mostly among large corporations, ISPs, other network service provides, and customers with nationwide offices.

(*2) This service became commercially available at the end of June 2004, and IIJ is the second ISP to join forces with QTNet to make the service available. Partnerships with other ISPs are expected to follow.

"SEIL Management Framework (SMF)"

SMF is the world's first network service operating system(*3) that was introduced by IIJ in February 2003. By allowing users to connect to the SEIL Series service adapter that was developed by IIJ for corporate networks, users can immediately use various network functions such as VPN and firewalls without time-consuming configuration. SEIL Series service adapters that are set up at customer sites are all managed by central management servers (iSUP Server(*4) or uSUP Server(*5)) and the three key features that are listed below can be provided. With this, the number of man-hours that are needed for each installation, configuration and configuration change of new equipment or various network functionalities should be reduced dramatically.

--Plug-and-Join: automatically configures equipment with various kinds of network functions when connected to the network

--Service-on-demand: Enables the addition or deletion of various functions from the network

--Service control: Enables full-time monitoring and operation of the SEIL Series service adapters

(*3) Patent Pending (Application 2002-359720)

(*4) iSUP Server : initial SUP Server. This server is installed on IIJ's premises and enables automatic configuration. It is compatible with SEIL Series service adapters, and provides the minimum configuration for connecting with uSUP.

(*5) uSUP Server : user SUP Server. This server is configured for each customer and enables users to save, monitor and change configurations, and other features.

About IIJ

Founded in 1992, Internet Initiative Japan Inc. (IIJ, NASDAQ: IIJI) 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. The company's services include 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.

About Kyushu Communications Network Co

Established in 1987 as the 5th regional type one new common carrier (NCC), Kyushu Telecommunication Network Co. started to provide leased line services in Kyushu, one of four main islands in Japan in 1989. The Company is also playing a supporting role in developing an advanced information society of Kyushu.