IIJ Announces Determination of Offer Price for Shares Offered in Public Offering in Japan

Business Wire, June 14, 2005

TOKYO -- Internet Initiative Japan Inc. (IIJ, NASDAQ: IIJI) today announced that it had determined the offer price for the shares to be offered in Japan in connection with the listing of its shares on the Mothers market of the Tokyo Stock Exchange.

In connection with the Mothers listing, IIJ plans to issue 2,500 new shares and two shareholders, NIF Ventures Co., Ltd. and JAFCO Co., Ltd., which are Japanese venture capital firms, plan to sell 900 existing shares in an underwritten public offering in Japan. In addition, the lead underwriter will be provided by the selling shareholders with an additional 500 shares to cover over-allotments. The newly issued shares will comprise approximately 6.1% of IIJ's total shares after giving effect to the issuance.

The offer price per share will be JPY 2,859,886. The offer price was determined, in accordance with the rules of the Japan Securities Dealers Association, based on the closing price of IIJ's American Depositary Receipts on the NASDAQ National market on June 13, 2005 subject to a discount of 6%, which is at the lower end of the discount range initially anticipated.

Proceeds to IIJ from the offerings, which amounted to approximately JPY 6.6 billion, are expected to be used for mainly its capital expenditure and research and development.

Any shares sold in connection with the proposed offering have not been and will not be registered under the U.S. Securities Exchange Act of 1933, as amended (the "Securities Act") and may not be offered or sold in the United States absent registration under the Securities Act or an applicable exemption from the registration requirements of the Securities Act.

Statements made in this press release regarding IIJ's or management's intentions, beliefs, expectations, or predictions for the future are forward-looking statements that are based on IIJ's and managements' current expectations, assumptions, estimates and projections about its business and the industry. These forward-looking statements are subject to various risks, uncertainties and other factors that could cause IIJ's actual results to differ materially from those contained in any forward-looking statement.