IIJ to Begin Selling "IIJmio High-speed Mobile/D Service" and SIM-free device as a Set via Post Office

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TOKYO-July 5, 2016-Internet Initiative Japan Inc. (IIJ, NASDAQ: IIJI, TSE1: 3774), one of Japan's leading Internet access and comprehensive network solutions providers, today announced that it will begin sales of its "IIJmio High-speed Mobile/D Service" mobile data service for individuals through postal catalogs on August 1, 2016, as part of an expansion in sales channels. IIJ has made a product that combines low-cost SIM cards and smartphones available through 2,050 post offices throughout Japan's Tokai region (Gifu, Aichi, Shizuoka, and Mie Prefectures), and plans to move forward by expanding this offering throughout the entire country.

This product combines a SIM card with voice calling functions on the "minimum start plan" (part of the "IIJmio High-speed Mobile/D Service") paired with the "arrows M03" which is a SIM-free smartphone supplied by Fujitsu Connected Technologies Limited. This product will make it possible for people living outside of major cities to gain access to information through their own familiar locations. IIJ has also set up dedicated call centers for this product in order to make it easier for first-time smartphone users and elderly people to have access to affordable smartphones.

IIJmio affordable smartphone

Initial fees		JPY 3,000
Monthly fees	one-time payment for device	Device cost: JPY 32,800 Communications fee: JPY 1,600 per month
	24 payments for device	Device and communications fee: JPY2,980 (*1) per month price breakdown JPY2,980 = JPY 1,380 toward device (24 payments)+ JPY1,600 for communications fee
Option	Device insurance(*2)	Monthly: JPY 380
High-speed data volume		3GB / month
Domestic voice calls fees		JPY 20 for 30 seconds
Transmission speed (LTE areas)		Download up to 150 Mbps Upload up to 50 Mbps (Within low-speed data option, up to 200 kbps)
Data limitation in use of low-speed option for most recent three days(*3)		366MB

• (*)Prices shown do not include tax.
• (*)If the service is canceled within 12 months from purchase, a voice functionality cancellation fee ((12 months - number of months used with the first month of use considered 0 months) × JPY1,000) will be incurred.
• (*1)From the 25th month onward, the monthly charge will be JPY1,600.
• (*2)This option allows the device to be exchanged for a refurbished one in the event of damage or failure. This option can only be added at the beginning of a contract.
• (*3)Transmission speeds may be restricted in cases in which a high-speed data transmission volume has not been applied, transmission speeds have been at a maximum of 200 kbps (low-speed option), and the transmission volume for the most recent three days has exceeded 366 MB. Transmission speeds are not restricted when a high-speed data transmission is applied.

Accessing the service

1. Obtain a catalog from a post office, and order the product by phone or send in the postcard in the catalog to request an order form.
2. When the order form arrives, complete and return it.
3. The phone will be delivered ready to use once it is powered on.

Post offices where the catalog are displayed

2,050 post offices throughout Tokai region (Gifu, Aichi, Shizuoka, and Mie Prefectures)
IIJ plans to expand this offering throughout the entire country based on the response going forward.

Benefits

All customers who order an IIJmio affordable smartphone will receive a free guidebook for beginners.

IIJ will continue to strive to expand its sales channels in order to allow more customers access to MVNO services in the future.

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