[English Translation]
February 3, 2022
Company name: Internet Initiative Japan Inc.
Company representative: Eijiro Katsu, President and Representative Director(Stock Code Number: 3774, The First Section of the Tokyo Stock Exchange)
Contact: Akihisa Watai, Senior Managing Director and CFO
TEL: +81-3-5205-6500

Notice regarding Absorption-type Merger of a Wholly Owned Subsidiary(Simplified merger and Short form merger)
TOKYO - February 3, 2022 - Internet Initiative Japan Inc. (hereinafter “IIJ”, TSE1: 3774) today announced
that IIJ’s Board of Directors meeting held today resolved to carry out an absorption-type merger(hereinafter, “the Merger”) of its wholly owned subsidiary, IIJ Innovation Institution Inc. (hereinafter, “IIJII”), effective on April 1, 2022. Because the Merger is a simplified absorption-type merger of a wholly
owned subsidiary, certain disclosure items and details are omitted.
1.

Purpose of the Merger
To further enhance business collaboration, IIJ decided to merge and absorb IIJ-II who has been
engaging in research and development related to Internet with mid-to-long term perspective.

2.

Outline of the Merger(1) Schedule of the Merger
・Date of IIJ’s Board of Directors resolution

February 3, 2022

・Date of signing of the Merger agreement

February 3, 2022

・Effective date of the Merger

April 1, 2022 (Planned)(Note) As the Merger falls under a simplified absorption-type merger as prescribed in the Article 796, Paragraph 2 of theCompanies Act in Japan for IIJ and a short-form merger as prescribed in the Article 784, Paragraph 1 of the sameact for IIJ-II, General Meeting of Shareholders of either companies will not be held regarding the Merger.

(2) Method of the Merger
The Merger will be implemented as an absorption-type merger wherein IIJ is to be the surviving company
and IIJ-II is to be dissolved.
(3) Allotment related to the Merger
As IIJ-II is a wholly owned subsidiary of IIJ, no shares or money will be allotted as a result of the Merger.
(4) Handling of stock acquisition rights and bonds with stock acquisition rights upon the Merger
No applicable items.

3.

Overview of the companies involved in the Merger (¥ is an abbreviation for Japanese Yen)
Surviving company
Internet Initiative Japan Inc.
Iidabashi Grand Bloom, 2-10-2
Fujimi, Chiyoda-ku, Tokyo

Dissolved company
IIJ Innovation Institute Inc.
Iidabashi Grand Bloom, 2-10-2
Fujimi, Chiyoda-ku, Tokyo

3. Name and title of representative

Representative Director andPresident, Eijiro Katsu

Representative Director andPresident, Toshiya Asaba

4. Nature of business

Provision of Internet connectivity
and WAN service, network-relatedservices, network systems
construction, operation andmaintenance, development and salesof tele communication equipment¥25,531 million
December 3, 1992
93,469,200 shares
March 31
Nippon Telegraph and TelephoneCorporation22.4%
The Master Trust Bank of Japan,
Ltd. (Trust account)
8.4%

Mainly research and developmentof fundamental technologies ofInternet

Fiscal year ended March 31, 2021
(Consolidated, IFRS)Fiscal year ended March 31, 2021
(Standalone, Japanese GAAP)

1. Trade name
2. Address

5.
6.
7.
8.
9.

Share capitalFoundedNumber of shares issued
Fiscal year end
Major shareholders andshareholding ratios(As of September, 30, 2021)¥75 million
June 10, 2008
1,500 shares
March 31
Internet Initiative Japan Inc. 100%

10. Financial position and results ofoperations for the most recentfiscal year

Equity attributable to owners of
the parent or Net assets
Total assets
Owner’s equity per share orBook value per share
Revenues or Net sales
Operating profit or Operating
incomeProfit attributable to owners of
the parent or Net income
Basic earnings per share¥89,956 million¥201 million¥220,777 million¥265million¥997.24¥134,298.20¥213,002 million¥412 million¥14,248 million¥65 million¥9,712 million¥42 million¥107.67¥28,183.43

4.

Status after the Merger
There will be no changes in trade name, address, name and title of representative, nature ofbusiness, share capital, or fiscal year end of IIJ.

5.

Forecasts
Since this is a merger of a wholly owned subsidiary of IIJ, the effect of the Merger on IIJ’s
consolidated financial results is immaterial.

< About Internet Initiative Japan Inc. >Founded in 1992, IIJ is one of Japan's leading Internet-access and comprehensive network solutions providers. IIJ and its
group companies provide total network solutions that mainly cater to high-end corporate customers. IIJ's services include
high-quality Internet connectivity services, mobile services, security services, cloud computing services, and systems
integration. Moreover, IIJ operates one of the largest Internet backbone networks in Japan that is connected to the UnitedStates, the United Kingdom and Asia. IIJ listed on the First Section of the Tokyo Stock Exchange in 2006.
< IIJ Investor Relations >Tel: +81-3-5205-6500

E-mail: ir@iij.ad.jp URL: https://www.iij.ad.jp/en/ir< Disclaimer >Statements made in this press release regarding IIJ’s or managements’ intentions, beliefs, expectations, or predictions forthe future are forward-looking statements that are based on IIJ’s and managements’ current expectations, assumptions,estimates and projections about its business and the industry. These forward-looking statements, such as statements
regarding revenues, operating and net profitability are subject to various risks, uncertainties and other factors that could
cause IIJ’s actual results to differ materially from those contained in any forward-looking statement.