2003 Press Releases

TOKYO, April 2, 2003 -- Internet Initiative Japan Inc. (IIJ, NASDAQ: IIJI), Japan's leading Internet access and comprehensive network solutions provider, today announced that its subsidiary Net Care, Inc. (Net Care), an outsourcing supplier that specializes in customer support, launched a new IP (Internet Protocol) telephony solution service for enterprises, effective today. The new service provides a comprehensive VoIP (Voice over IP) solution that seamlessly integrates the operation of telephone and data networks. The service includes consulting, equipment selection, system construction and implementation, supervision, operation, and maintenance. Fees depend on each customer's requirements.

Revenues from NetCare will be recognized in IIJ's consolidated financial statement under the Systems Integration category.

The IIJ Group itself already employs this service to create an end-to-end VoIP telephony network that connects all of IIJ's offices in Japan and in the U.S. while centralizing the operation of its telephone and data networks. VLAN technology is used to provide seamless connectivity among the IIJ Group companies while maintaining the independence of their respective data networks. Additionally, a wireless LAN system is combined with the VoIP network to provide extendable IP telephony solutions in the IIJ Group data centers.

About Net Care

Net Care, Inc. was established in February 1998, with Internet Initiative Japan Inc., CRC Solutions, Inc., and JGC Corporation as major shareholders. Using the expertise accumulated in IIJ Group network support operations, Net Care is an outsourcing supplier providing call center operations and management, network support that includes failure response and supervision, help desk services, and a variety of network management solutions.

About IIJ

Founded in 1992, Internet Initiative Japan Inc. (IIJ, NASDAQ: IIJI) is Japan's leading Internet-access and comprehensive network solutions provider. The company has built one of the largest Internet backbone networks in Japan, and between Japan and the United States. IIJ and its group of companies provide total network solutions that mainly cater to high-end corporate customers. Services range from the delivery of new generation network services over an optical-fiber infrastructure that is optimized for data communications, to the construction of pan-Asian IP backbone networks. The company also offers high-quality systems integration and security services, Internet access, hosting/housing, and content design.

The statements within this release contain forward-looking statements about our future plans that involve risk and uncertainties. These statements may differ materially from actual future events or results. Readers are referred to the documents filed 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.