IIJIY Internet Initiative Japan Inc (PK)

Internet Initiative Japan Inc. (IIJ) (Nasdaq:IIJI) (TSE:3774), one of Japan's leading Internet access and comprehensive network solutions providers, today announced its decision to commercialize the modular eco-data center based on the results of the proof of concept testing conducted this past February, with construction beginning in June 2010.

IIJ was the first company in Japan to attempt to test data centers with container units that use outside-air-cooling, and with test results showing a Partial PUE (*1) of under 1.1, their effectiveness has been verified. With those results, IIJ believes it can raise its power usage efficiency to the targeted 1.2 level year round, and so the decision was made to go into commercial production.

IIJ will use this data center as a facility for the IIJ GIO cloud service, and will expand those facilities to an estimated 20 modules (housing 5,000 servers) as demand for the service rises. The current investment plan calls for 5 modules (housing 1,600 servers) to be built and operational by February 2011 at a cost of about JPY 1.1 billion. Starting next fiscal year, the facilities will be expanded to keep pace with demand, and as a next-generation data center that can be rapidly scaled out, one of the characteristics of cloud computing, IIJ will strengthen its ties with local governments and power company groups, and will examine the possibility of opening multiple data centers nationwide.

This data center will reduce the current facility costs of IIJ GIO by 40%, raising the cost competitiveness of the cloud service and reducing annual CO2 emissions by about 4000 tons in comparison with conventional data centers. IIJ GIO will thus be able to differentiate itself both in cost and environmental benefits as well as maintain its high service quality, which will enable IIJ to expand its market share in the high-growth cloud market.

The IIJ Group will continue to promote green IT while actively pursuing the development of advanced data centers that have the lower costs and higher energy efficiency that are most appropriate for the cloud environment.

(*1) Partial PUE:  A partial PUE that does not include the power consumed by UPS, the power distribution board, and other elements. Industry group The Green Grid, which is promoting energy efficiency in data centers, is considering using this as an index of power use efficiency to measure improvements made through use of containers and other devices. PUE (power usage effectiveness), one of the indices used to indicate energy efficiency at conventional data centers, represents the quotient of the total electric power consumption of the data center divided by the electric power consumption of all servers and other IT equipment. Currently, the typical data center is said to have an average PUE of about 2.

About IIJ

Founded in 1992, Internet Initiative Japan Inc. (IIJ) (Nasdaq:IIJI) (TSE: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 cloud computing/data center services, security services, Internet access, and content distribution. 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.

CONTACT:  IIJ Corporate Communications

          +81-3-5259-6310

          press@iij.ad.jp

          http://www.iij.ad.jp/en/