IIJ and SkillUpJapan Embark on Proof-of-Concept Testing of Japan's First Streaming Distribution of Flash Video with Copyright Protection

1. Japan's first copyright-protected distribution of Flash Video

The test environment protects the Flash video content from unauthorized use and provides secure distribution using a platform and media player that incorporates the copyright-protection features of FMRMS. Flash Video is now DRM-technology compliant, giving content providers more options for protecting content.

2. Low bit rate, high-quality distribution

SkillUpJapan's proprietary H.264(*3) high-quality distribution technology provides HD(*4) quality distribution at bit rates as low as 1.5 to 2.0 Mbps. This enables smooth content playback without noise even in full-screen mode. The AIR-compatible media player provides a rich viewing environment that is browser-independent.

3. Video distribution for more platforms

Flash Video can be played on a number of platforms, including Windows, Mac, and Linux, providing video distribution for more client environments.

4. High-quality, stable streaming distribution environment.

IIJ's advanced distribution system, which uses IIJ's highly reliable broadband backbone, is monitored 24/7, providing a stable broadband distribution environment.

Through these tests both IIJ and SkillUpJapan will examine the issues and effectiveness of this technology with the intention of adopting it as part of the copyright protection features of the two companies' own products. SkillUpJapan has plans to offer new services built around this new media player, and IIJ intends to offer it as an option on its IIJ Contents Delivery Service.

IIJ and SkillUpJapan will work together in technology cooperation and joint marketing activities to provide superior media-distribution solutions to both content providers and audiences alike.

1. *1Adobe Flash Media Rights Management Server: A content protection solution that prevents unauthorized use of video content created using Adobe Systems' Flash technology.
2. *2Adobe AIR: A runtime environment created by Adobe Systems Incorporated to run rich Internet applications.
3. *3H.264: A standard for video compression. It has a higher compression rate than previous standards, and is used to distribute high-vision broadcasts and similar high-volume, high-quality video.
4. *4HD (High Definition): A general term for high-resolution, high-quality video images such as those provided by terrestrial digital television and Blu-ray technology.

About IIJ

Founded in 1992, Internet Initiative Japan Inc. (IIJ, NASDAQ: IIJI, Tokyo Stock Exchange TSE1: 3774) is one of Japan's leading Internet-access and comprehnsive 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 and the United States. IIJ was listed on NASDAQ in 1999 and on the First Section of the Tokyo Stock Exchange in 2006. 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 and uncertainty. These statements may differ materially from actual future events or results. Readers are referred to the documents 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 the forward-looking statements.

About SkillUpJapan

SkillUpJapan Corporation was formed in 2001 with the mission of promoting the integration of communications, broadcasting, and content, and the company is deploying many Internet-related businesses including digital content distribution, e-commerce management, and fan community solutions. With content holders and advertising agencies as shareholders, SkillUpJapan seeks to further promote content distribution through the provision of a video distribution platform, and the establishment of multi-device distribution and related business models. For more information, see http://www.skillupjapan.co.jp/