For Immediate Release
IIJ Establishes IIJ Innovation Institute Inc.
TOKYO--June 10, 2008--Internet Initiative Japan, Inc., (IIJ, NASDAQ: IIJI, TSE1: 3774),
one of Japan's leading Internet access and comprehensive network solutions providers,announced the establishment of IIJ Innovation Institute Inc. (IIJ-II)--a business incubation
center for technology development and commercialization of the next generation Internet--asa 100% owned subsidiary.
IIJ-II was established to manage an incubation business and perform R&D which wasoriginally announced in December 2007. The company will broadly recruit personnel withnew ideas and technologies and provide them with necessary resources for R&D andcommercialization. IIJ-II will pursuit technological innovation for the next generation internetfrom Japan. The effect due to the establishment of IIJ-II is already being accounted for in IIJ'sconsolidated financial target for FY2008 announced on March 15, 2008.
IIJ will continue to show initiative in the network technology sector and actively contribute to
the future of the Internet.
Company Profile
Name
Start of operations
Headquarters
Capital and Capital Reserves
Shareholders
Business fieldsOfficers

IIJ Innovation Institute Inc.
June 10, 2008
Jimbocho Mitsui Bldg, 1-105 Jimbocho, Kanda, Chiyoda-ku, Tokyo
JPY 100,000,000
IIJ 100%
・ Research and development of Internet infrastructure technology
・ Support for business planning and commercialization of Internetinfrastructure technology
・ Promotion of and education about Internet infrastructuretechnology
・ Human resource development related to Internet infrastructuretechnology
President and Representative Director
Toshiya Asaba (Executive Vice President of IIJ)
Director
Koichi Suzuki (President and Representative Director of IIJ)(*)
Hiroyuki Hisashima (Director of IIJ)
Nobuo Saito (Director of Komazawa University Faculty ofGlobal Media Studies)
Statutory Auditor
Akihisa Watai (Director and CFO of IIJ)

* Titles in parentheses are current as of June 10, 2008. Hiryuki Hisashima's retirement from IIJ Director will be official at theend of the Sixteenth Annual General Meeting of Shareholders to be held on June 27, 2008.

About IIJ
Founded in 1992, Internet Initiative Japan Inc. (IIJ, NASDAQ: IIJI, Tokyo Stock Exchange TSE1:3774) is one of Japan's leading Internet-access and comprehensive network solutions providers. IIJand 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 thelargest Internet backbone networks in Japan, and between Japan and the United States. IIJ was listedon NASDAQ in 1999 and on the First Section of the Tokyo Stock Exchange in 2006. 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 involverisk 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 mostrecent 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.

For inquiries, contact:
IIJ Corporate Communications
Tel: +81-3-5259-6310
E-mail: press@iij.ad.jp URL: http://www.iij.ad.jp/