IIJ Revises First Half and Full-Year Financial Targets for FY2008

TOKYO, Oct. 24, 2008 (GLOBE NEWSWIRE) -- Internet Initiative Japan Inc. ("IIJ")
(Nasdaq:IIJI) (TSE1:3774) today announced that it has revised its first half and
full FY2008 consolidated financial targets from the initial target announced on
May 15, 2008.

1. Revision for Consolidated Financial Targets for FY2008

(1H FY2008 (From April 1, 2008 to September 30, 2008))

---------------------------------------------------------------------
Income
before Basic
Income Net
Tax Income
Operating Expense Net per
Revenues Income (Benefit) Income Share
--------------------------------------------------
JPY JPY JPY JPY
millions millions millions millions JPY
--------------------------------------------------
Previous Target (A) 34,500 1,850 1,650 800 3,874.50
---------------------------------------------------------------------
New Target (B) 33,200 950 700 300 1,452.94
---------------------------------------------------------------------
Change (B-A) (1,300) (900) (950) (500) --
---------------------------------------------------------------------
Change (%) (3.8%) (48.6%) (57.6%) (62.5%) --
---------------------------------------------------------------------
(Reference) 29,990 1,816 1,697 3,477 16,880.42
Results for
1H FY2007
---------------------------------------------------------------------

(Full FY2008 (From April 1, 2008 to March 31, 2009))

---------------------------------------------------------------------
Income
before Basic
Income Net
Tax Income
Operating Expense Net per
Revenues Income (Benefit) Income Share
--------------------------------------------------
JPY JPY JPY JPY
millions millions millions millions JPY
--------------------------------------------------
Target (A) 78,500 5,200 4,700 5,200 25,184.28
---------------------------------------------------------------------
New Target (B) 73,000 3,800 3,000 2,800 13,560.77
---------------------------------------------------------------------
Change (B-A) (5,500) (1,400) (1,700) (2,400) --
---------------------------------------------------------------------
Change (%) (7.0%) (26.9%) (36.2%) (46.2%) --
---------------------------------------------------------------------
(Reference) 66,835 4,759 4,362 5,177 25,099.83
Results for FY2007
---------------------------------------------------------------------
2. Reason for Revision

In the first half of FY2008, corporate earnings are decreasing and capital
expenditures are weakening in general, and the Japanese economy is deteriorating
and is expected to continue for a while.

As for IIJ Group customers, demands for network and outsourcing service
including internet connectivity service are fairly stable in general supported
by the need to facilitate the use of IT and to improve work efficiency, thus we
anticipate continuous growth in connectivity and outsourcing revenues. For
systems construction, although we recognize that IT related expenditures for
Japanese corporate are essential in the mid- and long-term, they are affected by
the weak economy for a while. Due to this, we have revised our first half and
full FY2008 financial target downward from the initial target announced on May
15, 2008.

Our financial results for the first half of FY2008 will be below our initial
target as systems construction revenue fell short of our budget, there was an
unprofitable systems integration project and personnel related costs have
increased due to the hiring of new employees in view of our mid-term growth.

For the second half of FY2008, as the deteriorating economy is expected to
affect systems construction revenue, we plan to exercise effective cost control
while preparing the basis for mid- to long-term business growth. For our 4 new
subsidiaries business, we estimate that we will have around JPY1.2 billion of
operating loss in total in this fiscal year, which increased from the initial
estimation of JPY0.9 billion by taking into consideration the possibility of
delay in business startup. From the above, IIJ targets revenues of JPY73,000
million (up 9.2% year-on-year), operating income of JPY3,800 million (down 20.2%
year-on-year) for FY2008 consolidated financial results.

(*) The above targets for FY2008 consolidated financial results are based on
information currently available at the time of announcement and the actual
results may differ from the target due to various factors.

About IIJ

Founded in 1992, Internet Initiative Japan Inc. ("IIJ") (Nasdaq:IIJI)
(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.globenewswire.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.
Investor Relations Office
Yuko Kazama (Ms.)
+81-3-5259-6500
ir@iij.ad.jp
http://www.iij.ad.jp/