Planned Changes of Representative Directors Aimed at Strengthening the Management Structure

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Internet Initiative Japan Inc. (IIJ, NASDAQ: IIJI, TSE1: 3774) announces the following planned changes of representative directors aimed to strengthen its management structure as resolved at the Board of Directors meeting held today. These appointments are subjected to approval at the Ordinary General Meeting of Shareholders and the subsequent Board of Directors meeting scheduled in late June 2013.

1.　Changes of Representative Directors (scheduled in late June 2013)

(1) Positions and Names

New Position	Name	Current Position
Representative Director, Chairman and Chief Executive Officer (CEO)	Koichi Suzuki	Representative Director, President and CEO
Representative Director, President and Chief Operating Officer (COO)	Eijiro Katsu	Special Advisor

(2) Reason for the Changes

To reinforce the management system and strengthen business execution for further business expansion

(3) Short Biography of Eijiro Katsu

Eijiro Katsu
Special Advisor at Internet Initiative Japan Inc.
Date of Birth	June 19, 1950
Place of Birth	Saitama Prefecture, Japan
Education	Mar. 1975　Faculty of Law, University of Tokyo, Japan
Career	Apr. 1975　Joined Ministry of Finance Jun. 1995　Director, Foreign Exchange and Money Market Department, International Finance Bureau, MOF Jul. 1997　Budget Examiner of Budget Bureau, MOF Jul. 2007　Director-General of the Financial Bureau, MOF Jul. 2008　Deputy Vice Minister, MOF Jul. 2009　Director-General, Budget Bureau, MOF Jul. 2010　Vice Minister of Finance Aug. 2012　Retired from MOF Nov. 2012　Joined IIJ as Special Advisor

2. Background and Aims

Ever since its establishment in 1992 as the first Japanese Internet Service Provider, IIJ has been taking initiatives in the field of Internet technology by building internet infrastructure, introducing prototype services that reflect the market needs, and providing highly reliable network services in Japan. Leveraging the exceptional network engineering skills and the rich and loyal blue-chip client base both gained from providing Internet connectivity services, IIJ has made itself a comprehensive network solution provider offering from highly reliable network services, various value-added outsourcing services to systems integration with annual revenue of over JPY100 billion this fiscal year ending March 31, 2013.

For the past 20 years, IIJ expanded its business under the leadership of Koichi Suzuki, the founder and the current President and CEO. IIJ envisioned from the start that this software called Internet itself is a communication tool and that various IT systems would be operated upon a unified network platform in the future. With this clear vision, IIJ promoted IT usability by offering hybrid solutions in which both network and systems are merged as one. We recognize this fundamental vision of ours is to be realized with the current trend of cloud computing and that the momentum certainly holds considerable promise for the unprecedented further growth opportunity for IIJ Group. As a Japanese pioneer in Internet technology, we not only pursue for expanding our own group business but also for continuously contributing for the advancement of Japanese IT competitiveness by offering and developing highly usable IT solutions.

Bearing this kind of market opportunity and business environment, we are initiating a new management structure with two top representative directors to enhance innovative technology development capabilities and to seize business expansion.

3. Proposed Roles of Koichi Suzuki and Eijiro Katsu

• Koichi Suzuki will continue to oversee the overall business and supervise technology R&D as Chairman and CEO. He will play a central role in leading R&D and its commercialization by developing global standard innovative technology platforms and services, such as SDN (Software Defined Network), and by training engineers.
• Eijiro Katsu will be responsible for business expansion strategy, business negotiation, business execution and so on as President and COO. As a globally known figure with rich personal connection all over the world and extensive experiences, the overseas business expansion should accelerate under his leadership including areas such as North America, Asia and Europe.

4. Future Business Expansion

The business environment surrounding IIJ Groups leaves much potential for further market expansion in which the strengths of the group can be exercised: mainstream cloud computing adoption by business enterprises, the increased IT infrastructure demand for Japanese companies’ overseas brunches along with the ongoing globalization, and so on. Supported by our business resources of outstanding network engineering skills, rich blue-chip client base, human resources, and brand value, we would like to enhance our business strategy, accelerate growth speed, and achieve a tremendous scale-up of the business in the mid-to long- term.

We will respond to demands on outsourcing business enterprises’ IT systems by the continued expansion of network infrastructure that is vast, flexible and cost-efficient and by the development and provision of attractive services, including our focused service of cloud computing, with highly reliable network operation. We will also engage more in our overseas business by responding to our clients’ needs for global IT support. In addition to the continued expansion to the existing business areas in the U.S. and Europe, we should prepare for strong IT demands from rising Asian countries. As we recognize that obtaining business resources is needed for further rapid business expansion, we continue to seek appropriate and best timing for taking methods such as M&A and/or partnership. With greater business resources via scale-up, we would like to set up an active organization prepared for large-scale projects that were previously difficult for us to join because of inadequate resources.

With these steps aimed at further growth, we will continue to move forward as a comprehensive IT solution provider. We would like to sincerely thank you for your continued support and understanding.

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.

For inquiries, contact

IIJ Corporate Communications

• +81-3-5259-6310
• +81-3-5259-6311
• press@iij.ad.jp