2003 Press Releases

TOKYO, August 5, 2003 -- Internet Initiative Japan (IIJ, Nasdaq: IIJI), Japan's leading Internet access and comprehensive network solutions provider, today announced that its 26.7% affiliate Asia Internet Holding Co., Ltd. (AIH) and Hanaro Telecom, Inc., (Hanaro, Headquarters: Seoul, Korea, CEO: Shin Yun Shik) have upgraded A-Bone connectivity to STM-1 (155Mbps) from existing 2Mbps.

"A-Bone" is an IP backbone network which directly connects each country in the Asia-pacific region with high-speed circuits. With appreciation on its network quality that enables to provide reliable IP connectivity service to its Internet users, AIH and Hanaro decided to enlarge capacity of the connectivity to "A-Bone". It further enhances Hanaro's Internet backbone which already comprises multiple capacities to various countries. In addition, this upgrade enables the enterprises deploying in Japan and Korea to enjoy more reliable IP-VPN service through "A-Bone VPN Service".

In order to support Korea and other Asian countries' ever expanding growth of Internet, A-Bone will continue to sharpen its competitive edge as the region's central piece of Internet infrastructure of the Asia-Pacific and contribute to facilitate faster and more-reliable transmission of data communications in the region.

About Hanaro:

Hanaro Telecom Inc., which was officially launched in September 1997, marketing the advent of a new era of competition in Korea local call market, has grown to be the high-speed Internet service provider in the region. With Seoul, Busan, Incheon and Ulsan at the head of the list, in April 1999, Hanaro has expanded the Internet access market by deploying nationwide fiber optic networks covering 100 cities, in the end of 2002. Hanaro Telecom integrated broadband Internet access services, such as 'I am ADSL', 'HFC' and 'BWLL' into single brand, 'HanaFOS', in June, 2001. Website: http://www.hanaro.com

About AIH:

Asia Internet Holding Co., Ltd. (AIH) was established in 1995, to construct and operate "A-Bone", the Internet backbone network covering the Asia Pacific region. A-Bone directly links countries in the region with high-speed and large-capacity circuits, which enables intra-Asian information traffic to be routed effectively. AIH is supported by shareholders in the region such as Internet Initiative Japan (IIJ, NASDAQ: IIJI; share holding ratio: 26.69%), Sumitomo Corporation (31.61%), NTT Communications, Itochu Corporation, Telekom Malaysia and Communications Authority of Thailand. Website: http://www.abone.net

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.