Net Care to Launch IP Contact Center Integration Service; Cisco Systems and HP Japan Convert Their Own Contact Centers to IP And Turn That Know-How into a New Service.

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 that in April 2006, Net Care, Inc. (Net Care; headquarters: Chiyoda-ku, Tokyo; president and CEO: Koichi Suzuki), IIJ's 52.5% owned subsidiary, will launch an IP contact center integration service using VoIP technology. This new service--using Cisco Systems K.K.'s (Cisco; headquarters: Minato-ku, Tokyo; president and CEO: Yasuki Kurosawa) Cisco IP Contact Center Enterprise Edition (Cisco IPCC) and the IP contact center construction experience of Hewlett-Packard Japan, Ltd. (HP Japan; headquarters: Shinagawa-ku, Tokyo; president and CEO: Shingo Oda)--brings the expertise of three companies to corporate contact centers.

As we approach the peak period for system upgrades among contact centers using a conventional private branch exchange (PBX), there is a growing need for conversion to IP. For customers with existing contact centers, conversion to IP provides the following benefits.

1. Reduced equipment costs and maintenance costs

Without the need to install a PBX at every site, initial investment in equipment and operation/maintenance costs drop drastically. A small- to medium-size contact center can be established at a very low cost.

2. Rapid deployment

PBX functions are centrally managed over an IP network via a main server, which makes contact center establishment, expansion, and relocation both quick and flexible.

3. Optimized personnel location

An IP network can be used to merge distributed facilities into one virtual contact center. Without location (distance) restrictions, call center personnel can be optimally located to achieve high contact center efficiency.

Net Care, HP Japan, and Cisco bring a broad range of expertise to this service. Net Care has extensive experience in contact center and network operations management. HP Japan has built many IP contact centers, particularly using CTI and other high value-added solutions. Cisco delivers Cisco IPCC, a contact center solution that leverages IP to the fullest. The expertise of these three companies comes together to provide a unified integration service that introduces, designs, builds, and operates a company's IP contact center. The strengths of all three, plus Net Care's experience with its own IP contact center, will contribute to the success of customers that are considering establishing their own IP contact center.

Net Care converted its five-site, 150-seat facilities to IP and was the first company in Japan to establish an IP contact center, which helped bolster its capacity as an outsourcing service. Net Care is targeting JPY200 million in sales in the first year (FY 2006), and JPY1 billion over five years. The IIJ Group will continue to leverage IIJ's network building expertise and Net Care's contact center know-how to help the contact center industry convert to IP.

"Cisco IP Contact Center Enterprise Edition"

Cisco IP Contact Center Enterprise Edition is one of the products built on Cisco AVVID, which provides advanced call routing, computer-telephony integration (CTI), and multi-channel contact management over an IP infrastructure. Multi-channel automatic call distribution (ACD) and IP telephony have been merged into a single solution so that a distributed contact center infrastructure can be deployed quickly. For details, see the following URL. http://www.cisco.com/japanese/warp/public/3/jp/product/hs/ iptel/ipccep/

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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/.

About Net Care

Net Care, Inc. was established in February 1998 with Internet Initiative Japan Inc. (IIJ), CRC Solutions Corporation, and JGC Corporation as some of its major shareholders. Using the expertise accumulated in IIJ Group network support operations, Net Care provides outsource-on-demand solutions with features tailored to customer needs, including contact center operations and management, network support that includes failure response and supervision, help desk services, and a variety of network management solutions.http://www.netcare.co.jp/

About HP

HP is a technology solutions provider to consumers, businesses and institutions globally. The company's offerings span IT infrastructure, global services, business and home computing, and imaging and printing. For the four fiscal quarters ended Jan. 31, 2006, HP revenue totaled $87.9 billion. More information about HP (NYSE, NASDAQ: HPQ) is available at www.hp.com.

About Cisco

Cisco Systems KK is the Japanese subsidiary of Cisco Systems Inc. (NASDAQ:CSCO). Cisco Systems advocates IIN (Intelligent Information Networks) that open up the potential of intelligent networks in the networks that form the foundation for providing more secure and user-friendly networks and for assisting in the improvement of productivity in enterprises, groups and organizations.

See the following website for the corporate profile and further details on Cisco SystemsKK. http://www.cisco.com/jp

Company and product names used in this release are the registered trademarks of their respective owners.

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.