For Immediate Release

IIJ Group to Strengthen R&D Organization
TOKYO--July 1, 2009--Internet Initiative Japan Inc. (IIJ, NASDAQ: IIJI, TSE1: 3774), one of Japan’s leading
Internet access and comprehensive network solutions providers, today announced it will transfer control of its
Internet technology research division, the IIJ Research Laboratory, to 100%-owned subsidiary IIJ Innovation
Institute Inc. (IIJ-II) on July 1, 2009. This move will strengthen our R&D organization for next-generation
Internet technology by focusing these activities in IIJ-II, which will allow us to ramp up our R&D efforts forthe future and create businesses based on the products of this R&D.
Background
The IIJ Research Laboratory was established as a division of IIJ in 1998, and it was responsible for R&D ofnetwork technologies for the next decades, such as IPv6. IIJ-II was established as a corporation in 2008 torecruit technologists who had ideas for new technology from the general public and to assist in thedevelopment of these ideas for commercialization with the objective of creating new Internet infrastructuretechnology originating in Japan.
The purpose of this transfer is to establish a group R&D center and actively apply the new technology
acquired through public solicitation, as well as that developed by the research laboratory, to new IIJ Group
service and business development. We hope to create a synergy among the group companies through thesharing of the knowledge and elemental technology amassed through various research projects.
IIJ-II Research Perspective
IIJ-II sees the next-generation Internet not simply as a network through which computers can communicate but
as a place to produce new value through the dynamic and organic connection and processing of the ubiquitousInternet users, fragmented information and virtual computing resources to meet a variety of purposes. IIJ-II’spurpose is to engage in the research and development of infrastructure technology to achieve this goal.
In addition to the messaging, mobile communications, next-generation network management, and network
measurement and analysis technology developed by the IIJ Research Laboratory, IIJ-II will approach thedevelopment of new network and system architecture, and the development of businesses that use thistechnology, from both the application and infrastructure side to create the next-generation Internet.
The IIJ Group will continue to show initiative in the network technology sector and work to advance the Internet.

About IIJ-IIIIJ Innovation Institute Inc. (IIJ-II) was established in June 2008 as a subsidiary within the IIJ group. IIJ-II
provides business incubation services with the goal of developing technological innovations for thenext-generation Internet and new business models. IIJ is leveraging its years of Internet technology andbusiness experience to promote R&D and commercialization support for Internet development. For details, see
http://www.iij-ii.co.jp/.

About IIJ
Founded in 1992, Internet Initiative Japan Inc. (IIJ, NASDAQ: IIJI, Tokyo Stock Exchange TSE1: 3774) is one ofJapan'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 andthe United States. IIJ was listed on NASDAQ in 1999 and on the First Section of the Tokyo Stock Exchange in2006. 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 anduncertainty. These statements may differ materially from actual future events or results. Readers are referred to thedocuments 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 theforward-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/en/