IIJ Acquires RYUKOSHA NETWARE Inc.

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TOKYO-December 1, 2014-Internet Initiative Japan Inc. (IIJ, NASDAQ: IIJI, TSE1: 3774) today announced that it acquired RYUKOSHA NETWARE Inc. (RYUKOSHA NETWARE), making the company a wholly owned subsidiary of IIJ as of December 1, 2014. RYUKOSHA NETWARE engages in human resources outsourcing business for fields such as systems operation and service support.

Since its founding in 1997, RYUKOSHA NETWARE has focused on providing systems operation and service support for corporate customers. The company has worked to build strong relationships with its customers including system integrators and has grown its business steadily. The company provides IT engineering resources by outsourcing and dispatching engineers mainly to large financial institutions, manufacturers, and telecommunications carriers. The company has been able to continuously enhance its human resources pool along with its business expansion by leveraging strong relationships with engineering universities and colleges throughout Japan to hire new graduates.

IIJ has been proactively hiring employees, especially new graduates, in order to continuously expand its human resources as well as increasing the number of outsourcing personnel along with the business expansion.

The goals of this acquisition are to rapidly strengthen IIJ's engineering organization in order to meet growing number of systems integration (SI) and outsourcing projects (such as systems construction/operation, and outsourcing for corporate customers' networks and systems) and to increase IIJ's in-house business efficiency over the mid-to -long term by bringing in more outsourced personnel into IIJ.

In addition to expanding business with existing customers, RYUKOSHA NETWARE will continue to contribute in accumulating engineering knowledge for IIJ through participating in IIJ's SI projects and will aim to expand its field of business even further.

The effects of this acquisition are expected to be negligible on IIJ's consolidated financial target for the fiscal year ending March 31, 2015.

Summary of RYUKOSHA NETWARE Inc.

Name	RYUKOSHA NETWARE Inc.
Established	April 1, 1997
Headquarters	1-14-9 Kyobashi, Chuo-ku, Tokyo
Capital	JPY10 million
Fiscal year ends	End of March
Business	Human resources outsourcing, including system operation and service support
Executives	Masayuki Inoue, Representative Director and President
	Kazuhiro Egawa, Managing Director
	Hiroaki Yamane, Director
	Akihisa Watai, Director (part time) CFO and Managing Director of Internet Initiative Japan Inc.
	Naoshi Yoneyama, Director (part time) Executive Officer of Internet Initiative Japan Inc.
	Kazuhiro Ohira, Corporate Auditor (part time) Corporate Auditor of Internet Initiative Japan Inc.
Employees	240 (as of March 31, 2014)
Sales	JPY1.18 billion (for the fiscal year ended March, 2014)

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

• +81-3-5205-6310
• +81-3-5205-6377
• press@iij.ad.jp