IIJ Develops Proprietary Video Distribution Server Software for Digital TV

TOKYO, July 23, 2008 (PRIME NEWSWIRE) -- Internet Initiative Japan Inc. (IIJ)
(Nasdaq:IIJI) (TSE1:3774), one of Japan's leading Internet access and
comprehensive network solutions providers, today announced the development of
proprietary video distribution server software specifically designed for digital
television, and the release of a high-resolution content distribution platform
for the acTVila(*1) digital television portal site that will debut in August.
(*2)

The acTVila Video Full service is an HD-quality(*3) streaming video distribution
service that requires four to six times the bandwidth (several Mbps per
terminal) and server resources needed for traditional PC distribution. This need
grows in proportion to the number of members viewing the service, which has made
the reduction of server costs an urgent concern. This most recent development is
expected to lower the estimated cost of server software by 75% or more over the
next one-to-two years. IIJ has led the development of the acTVila
high-resolution content distribution platform, and through the comprehensive
support IIJ provides -- from network and distribution server administration to
the development of distribution software -- IIJ will reduce recovery times and
improve operation and maintenance levels for the distribution infrastructure.

This most recently developed server software is ideal for the streaming
distribution of high-resolution content, and thus is slated to be used for the
download distribution service that acTVila is scheduled to release. Both the
server software and the distribution platform conform to the standards set out
by the Digital Television Information Study Group, and thus have received the
support of Matsushita Electric Industrial Co., Ltd. Corporate eNet Business
Division and Actvila Corporation. IIJ is also considering providing this video
distribution server software to corporate customers in the future.

IIJ will continue to pursue the development of high-resolution content
distribution platform technologies and services in order to contribute optimum
video distribution development for both service providers and users.

(*1) acTVila:
The acTVila portal service provides information about digital
television over broadband access lines. The company provides
high-quality streaming video distribution through its acTVila Video
and acTVila Video Full services, which are compatible with the
televisions of all major manufacturers, including Panasonic, Sony,
Sharp, Toshiba, and Hitachi.
(*2) IIJ began providing the high-resolution content distribution
platform after acTVila began offering services. In the past, the
platform used server software produced by other vendors, but this
is now being replaced with IIJ's proprietary server software.
(*3) HD (High Definition):
A general term for high-resolution, high-quality video images such
as those provided by terrestrial digital television and Blu-ray
technology.
About IIJ

Founded in 1992, Internet Initiative Japan Inc. (IIJ) (Nasdaq:IIJI) (Tokyo Stock
Exchange TSE1: 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 Internet Initiative Japan Inc. logo is available at
http://www.primenewswire.com/newsroom/prs/?pkgid=4613

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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CONTACT: Internet Initiative Japan Inc.
Corporate Communications
+81-3-5259-6310
press@iij.ad.jp
http://www.iij.ad.jp/en/