New Fees Released for the hi-ho HIKARI With FLET'S Mansion Course

Business Wire, Sept 3, 2007

TOKYO -- Internet Initiative Japan Inc. (IIJ) (NASDAQ:IIJI)(TOKYO:3774), one of Japan's leading Internet access and comprehensive network solutions providers, today announced the release of a new fee structure at the Company's subsidiary, hi-ho Inc., for the hi-ho HIKARI with FLET'S Mansion Course service ("Mansion Course"), which offers high-speed Internet connections via optical fiber to apartments or other multi-unit complexes. The new fees will be applied starting in November 2007.

The monthly fee of the Mansion Course has always been lower than that of the Family Course for single-dwelling houses because of the limited availability of equipment and transmission speeds on the Mansion Course. With recent advances in technology, however, traffic capacities for both plans have evened out, and the Mansion Course data volumes have increased dramatically. Since hi-ho became a 100%-owned subsidiary of Internet Initiative Japan, Inc. in June 2007, it has been able to reduce costs primarily through increased backbone efficiency as a result of network integration. However, increased data volumes on the Mansion Course have required installation of additional equipment, and in order to maintain a stable network environment, prices need to be increased.

Price Change Summary:

1. Affected Plan

hi-ho HIKARI with FLET'S Mansion Course

2. Fee Change Date

November 1 (Thu), 2007

3. New Fees (Tax Included)

For customer of NTT EAST FLET'S Service:

[TABLE OMITTED]

For customer of NTT WEST FLET'S Service:

[TABLE OMITTED]

About IIJ

Founded in 1992, Internet Initiative Japan Inc. ("IIJ") (NASDAQ:IIJI)(TOKYO:3774) is one of Japan's leading Internet-access and comprehensive 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.

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