General Information

Q1 When was IIJ established?

IIJ was established on December 3, 1992 as the first domestic ISP in Japan by a group of highly motivated and skilled TOP level IP Engineers from all over Japan. For details, please refer to Corporate Profile.

Q2 What is the origin of IIJ's company name "Internet Initiative Japan Inc."

As a pioneer company that has created the "Internet in Japan", we pledge to take "initiative" in internet related technology and to contribute to the growth of the Japanese information society. This pledge to lead the internet is what makes us "IIJ" and is in our Company name. Please also see IIJ's Vision.

Q3 I'd like to know more about IIJ's history.

We are proud that we have created many internet related prototype services in Japan. As the internet related market grew, our business has shifted from Internet Service Provider (ISP) to Total Network Solution Provider. Currently, we provide Internet connectivity services, outsourcing services, WAN services and systems integration as a total solution to around 6,500 clients from blue chip companies to governmental organizations. For details, please refer to Company History. Please also see IIJ Service History History.

Q4 I'd like to know more about IIJ's business.

We provide Internet connectivity services, outsourcing services, WAN services, systems integration, systems operation and maintenance, and equipment sales. We also provide the new ATM operation business. For details, please refer to Business Overview.

Q5 How many employees are there?

As of March 31, 2012, there are 1,923 employees on a consolidated basis and 1,313 employees on a non-consolidated basis.

Q6 How is the employee distribution?

Of all the employee, about 70% are engineers, 20% are sales and 10% are administrative.

Q7 What is IIJ's stance towards hiring newly graduates?

We believe it is very important to hire and train newly graduates for IIJ to continue its growth in the mid- to long-term. Under this principal, we have focused on hiring newly graduates and have hired 77 personnel in FY2009, 60 personnel in FY2010, 44 personnel in FY2011, and 75 personnel in FY2012.

Q8 I'd like to know more about consolidated subsidiaries and equity method investees.

IIJ and its consolidated subsidiaries and equity method investees are providing a total network solution to customers as "a Group". As of May 15, 2012, there are 14 consolidated subsidiaries and 5 equity method investees. For details, please refer to IIJ Group.

Q9 I'd like to know more about the Management Team.

The Company's Board of Directors consists of 12 directors, including 4 outside directors. 7 of 12 directors are engaged in the operation of business.

The Company's Board of Statutory Auditors consists of 4 statutory auditors, 2 of whom are outside statutory auditors including an attorney from a Japanese law firm and a certified public accountant. Separately, the Company has an internal auditing office consisting of two members, including a general manager. For details, please refer to Management Team. The Executive Officer System has been introduced since April 1, 2010, and executive officers consists 12 members as of May 15, 2012.

For details, please refer to Management Team.

Q10 Please tell me how IIJ considers its Corporate Governance.

IIJ recognizes the importance of having an effective corporate governanace structure to consistently enhance its corporate value. Since IIJ's Depository Shares are listed on the US NASDAQ Stock Market, IIJ is subjected to the Sarbanes-Oxley Act by taking measures such as,

• The Chief Executive Officer and the Chief Financial Officer personally certifies the accuracy of financial statements submitted to the US SEC,
• The Board of Statutory Auditors adapts policies and procedures for pre-approving all audit and permissible non-audit work performed by independent registered public accounting firm,
• The Board of Statutory Auditors establishes procedures for the confidential, anonymous submission by IIJ's employees of concerns regarding questionable accounting or auditing matters,

For details, please refer to Corporate Governance.

Q11 Please tell me how IIJ considers information security.

We have taken a company-wide risk management approach and established an information security management system that we will diligently operate and maintain, and has established a basic policy for information security that constitutes a code of conduct for establishing information security within the company. For details, please refer to Basic Information Security Policy and Privacy Policy.

Q12 Please tell me how IIJ considers CSR.

We will contribute to the development of the information society by supporting the internet infrastructure and by creating new Internet related services. In order to do so, we will engage in researches and activities that will lead to the development of the Internet related technologies.