IIJ Group Wins Contracts for Horse Race Webcasting Project

Business Wire, March 11, 2003

Business Editors/High-Tech Writers

TOKYO--(BUSINESS WIRE)--March 11, 2003

Internet Initiative Japan Inc. ("IIJ", NASDAQ: IIJI), Japan's leading Internet access and comprehensive network solutions provider, today announced that the IIJ Group has won contracts to broadcast a series of local horse races over the Internet.

Starting April 1 2003, the project calls for IIJ to broadcast 45 events throughout the season at local racetracks nationwide. The largest race of each event will be available as an on-demand webcast for all Internet users.

IIJ won the contracts from the National Association of Racing (NAR) and Nippon Racing Service Ltd. (NRS). In combination with existing online betting systems, the project will enable NAR club members to enjoy local horse races no matter where they are.

IIJ Media Communications ("IIJ-MC"), the Company's 50.1% owned subsidiary that specializes in web-media communications, will operate the webcasting system for NAR and NRS.

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.

About IIJ-MC

IIJ Media Communications (IIJ-MC) was established by Internet Initiative Japan Inc. (IIJ, NASDAQ: IIJI), Sumitomo Corp., Itochu Corp., Tokyo Corp. and other shareholders to offer expert services in web-media content creation and communications over the Internet. Its core business provides total support for customers' contents and systems, particularly those customers who engage in e-commerce and related activities. IIJ-MC engages in the research and development of the newest technologies for media communications, such as streaming technologies including multicast and portal service applications, and incorporates the technologies into various applications.

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.