IIJ Announces Nine Months Financial Results for the Fiscal Year Ending March 31, 2013

IIJ Announces Nine Months Financial Results for the Fiscal Year Ending March
31, 2013

TOKYO, Feb. 8, 2013 (GLOBE NEWSWIRE) -- Internet Initiative Japan Inc. ("IIJ")
(Nasdaq:IIJI) (TSE:3774) today announced its consolidated financial results
for the nine months of the fiscal year ending March 31, 2013 (from April 1 to
December 31, 2012, "3Q12").^1


Highlights of 3Q12 Financial Results
                                   
Revenues                            JPY76,690 million($890 million, up 8.4%
                                    YoY)
Operating Income                    JPY5,043 million($59 million, up 26.1%
                                    YoY)
Net Income attributable to IIJ      JPY3,112 million($36 million, up 30.2%
                                    YoY)
                                   
-- 3Q12 revenues increased by 8.4%. Revenues for network services, systems
integration, and ATM operation business each grew YoY.
-- 3Q12 operating income increased by 26.1% because gross margin of network
services, systems integration,
and ATM operation business each increased while SG&A only slightly increased.
-- Revised the year-end dividend plan from the previous JPY8.75 to JPY10.00
per share of common stock along with the increase in income.

Overview of 3^rd Quarter FY2012 Financial Results and Business Outlook

"From the start, IIJ had envisioned that Internet would become the fundamental
infrastructure for society, and with that clear vision, we have cultivated and
led the Japanese IT market for the past 20 years," said Koichi Suzuki, founder
and CEO of IIJ. "As a pioneer in introducing a variety of internet-related
services, we have established a very unique market position in Japan by
engaging in both network services and systems integration. With the explosion
of data traffic caused by the pervasive use of smart phones and the growing
trend of cloud computing, we are seeing our corporate clients' network and
outsourcing demands getting stronger. We recognize it as an enormous business
opportunity for our further growth with our rich blue-chip client base,
large-scale network, exceptional network engineering skills, and reputation to
take initiatives. We will continue to strategically invest on our network
resources and business development to seize the growing demands and to foresee
tremendous business scale up in the middle term."

"We executed our business strategy as planned this quarter," continued Suzuki.
"The revenue and profit growth were driven primarily by the continuous demand
for broader network bandwidth and the accumulation of systems integration
orders. Cloud and overseas business, two of our future growth drivers, are
still small portion of the total revenue, yet they are surely starting to
contribute to the overall revenue growth. We are going to construct a second
container type datacenter to meet the growing demand on cloud. We have
enhanced the overseas cloud line-ups with the release of the cloud service for
China in January, following the U.S. cloud service."

"Lastly, we decided to increase the year-end dividend along with our profit
growth," concluded Suzuki. 

3^rd Quarter FY2012 Financial Results Summary

Operating Results Summary
                                3Q11         3Q12         YoY % Change
                                JPY millions JPY millions 
Total Revenues                   70,752       76,690       8.4
Network Services                 47,242       48,515       2.7
Systems Integration (SI)         21,709       25,601       17.9
Equipment Sales                  879          867          (1.3)
ATM Operation Business           922          1,707        85.0
Total Costs                      56,654       61,165       8.0
Network Services                 37,587       37,972       1.0
Systems Integration (SI)         17,267       20,994       21.6
Equipment Sales                  787          749          (4.7)
ATM Operation Business           1,013        1,450        43.2
SG&A Expenses and R&D            10,100       10,482       3.8
Operating Income                 3,998        5,043        26.1
Income before Income Tax Expense 3,780        4,946        30.8
Net income attributable to IIJ   2,390        3,112        30.2


Segment Summary
                                3Q11         3Q12
                                JPY millions JPY millions
Net Revenues                     70,752       76,690
Network services and SI business 70,204       75,399
ATM operation business           922          1,707
Elimination                      374          416
Operating Income (Loss)          3,998        5,043
Network service and SI business  4,250        4,965
ATM operation business           (194)        164
Elimination                      58           86

We have omitted segment analysis because most of our revenues are dominated by
Network services and Systems Integration (SI) business.

3^rd Quarter FY2012 Results of Operation

Revenues

Total revenues of 3Q12 were JPY76,690 million, up 8.4% YoY.

Network Services revenue was JPY48,515 million, up 2.7% YoY.

Revenues for Internet connectivity services for corporate use were JPY11,783
million, up 7.9% YoY, mainly due to the continuous demands for broader
bandwidth by network operators.

Revenues for Internet connectivity services for home use were JPY4,111
million, down 5.0% YoY. While our LTE mobile data communication service, which
was introduced in February 2012, has been accumulating orders continuously,
the cancellations of old type connectivity services still continued.

WAN services revenues were JPY18,880 million, down 1.6% YoY.

Outsourcing services revenues were JPY13,741 million, up 7.2% YoY. The revenue
growth was mainly led by the continuous demands on "IIJ GIO Hosting Package
Services," datacenter-related services and security-related services.

Network Services Revenues Breakdown
                                             3Q11         3Q12         YoY %
                                                                        change
                                             JPY millions JPY millions 
Internet Connectivity Service (Corporate Use) 10,920       11,783       7.9
IP Service^2                                 6,911        7,435        7.6
IIJ FiberAccess/F and IIJ DSL/F              2,352        2,397        1.9
IIJ Mobile Service^3                         1,473        1,772        20.3
Others                                        184          179          (2.6)
Internet Connectivity Service (Home Use)      4,328        4,111        (5.0)
Under IIJ Brand                              671          969          44.4
hi-ho                                        3,222        2,678        (16.9)
OEM                                          435          464          6.7
WAN Services                                  19,177       18,880       (1.6)
Outsourcing Services                          12,817       13,741       7.2
Total Network Services                        47,242       48,515       2.7


Number of Contracts for Connectivity Services
                                            3Q11       3Q12        YoY Change
Internet Connectivity Services (Corporate    93,345     105,672     12,327
Use)
IP Service (-99Mbps)                        938        908         (30)
IP Service (100Mbps-999Mbps)                342        370         28
IP Service (1Gbps--)                        132        186         54
IIJ Data Center Connectivity Service        303        309         6
IIJ FiberAccess/F and IIJ DSL/F             43,425     46,670      3,245
IIJ Mobile Service^4                        46,964     55,883      8,919
Others                                       1,241      1,346       105
Internet Connectivity Services (Home Use)    383,745    465,624     81,879
Under IIJ Brand                             37,322     89,885      52,563
hi-ho                                       148,856    150,238     1,382
OEM                                         197,567    225,501     27,934
Total Contracted Bandwidth                   853.0Gbps 1,107.5Gbps 254.5Gbps

SI revenues were JPY25,601 million, up 17.9% YoY.

Systems construction revenue, a one-time revenue, was JPY9,824 million, up
33.7% YoY, mainly due to the increase in both number and volume of systems
construction projects. Large overseas construction projects have been added.
Systems operation and maintenance revenue, a recurring revenue, was JPY15,777
million, up 9.9% YoY. The increase was mainly due to the continuous
accumulation of revenue from "IIJ GIO Component Services."

The order backlog for systems construction and equipment sales was JPY5,333
million, down 7.1% YoY. The order backlog for systems operation and
maintenance was JPY14,917 million, up 14.4% YoY.

Equipment sales revenues were JPY867 million, down 1.3% YoY.

ATM Operation Business revenues were JPY1,707 million, up 85.0% YoY, along
with the increase in the numbers of ATMs newly placed. As of February 8, 2013,
593 ATMs are placed.

Cost and expense

Cost of revenues was JPY61,165 million, up 8.0% YoY.

Cost of Network Services revenue was JPY37,972 million, up 1.0% YoY mainly due
to the increase in outsourcing-related costs, personnel-related costs and
network operation-related costs. Gross margin for network services was
JPY10,543 million, up 9.2% YoY and gross margin ratio was 21.7%, up 1.3
points YoY.

Cost of SI revenues was JPY20,994 million, up 21.6% YoY. The increases of
purchasing costs, some portion of outsourcing-related costs and
personnel-related costs are in the relation to the increase in systems
construction revenues. Gross margin for SI was JPY4,608 million, up 3.7% YoY
and gross margin ratio was 18.0%, down 2.5 points YoY.

Cost of Equipment Sales revenues was JPY749 million, down 4.7% YoY. Gross
margin was JPY118 million and gross margin ratio was 13.6%, up 3.1 points YoY.

Cost of ATM Operation Business revenues was JPY1,450 million, up 43.2% YoY
mainly due to the increase in the number of newly placed ATMs. Gross margin
was JPY256 million compared to gross loss of JPY91 million for 3Q11, and gross
margin ratio was 15.0%.

SG&A and R&D Expenses

SG&A and R&D expenses in total were JPY10,482million, up 3.8% YoY.

Sales and marketing expenses were JPY6,031 million, up 1.5% YoY, mainly due to
the increase in advertizing expenses. Amortization expenses of customer
relationship related to IIJ Global Solutions Inc. was JPY275 million, slightly
decreased from JPY319 million in 3Q11.

General and administrative expenses were JPY4,147 million, up 5.8% YoY. The
increase was mainly due to the increase in personnel-related expenses.

Research and development expenses were JPY304 million, up 27.0% YoY.

Operating income

Operating income was JPY5,043 million, up 26.1% YoY mainly because gross
margin of each revenue line increased.

Other income (expenses)

Other income (expenses) was an expense of JPY97 million (an expense of JPY218
million for 3Q11).

Income before income tax expenses

Income before income tax expenses was JPY4,946 million, up 30.8% YoY.

Net Income

Income tax expense was JPY1,954 million (JPY1,603 million for 3Q11).

Equity in net income of equity method investees was JPY131 million (JPY153
million for 3Q11) mainly due to net income of Internet Revolution, Inc. and
Internet Multifeed Co.

As a result of the above, net income was JPY3,123 million, up 34.1% YoY
(JPY2,330 million for 3Q11).

Net income attributable to IIJ

Net income attributable to non-controlling interests was JPY11 million (net
loss of JPY60 million for 3Q11) mainly related to net income of Trust Networks
Inc.

Net income attributable to IIJ was JPY3,112 million, up 30.2% YoY.

3Q FY2012 Financial Condition

Balance Sheets

As of December 31, 2012, the balance of total assets was JPY75,892 million,
increased by JPY2,399 million from the balance as of March 31, 2012.

As for current assets as of December 31, 2012, as compared to the respective
balances as of March 31, 2012, cash and cash equivalents decreased by JPY2,889
million mainly due to the payment of income tax and the repayment of bank
borrowings, prepaid expenses increased by JPY1,394 million and inventories
increased by JPY1,038 million, respectively. As for noncurrent assets, as
compared to the respective balance as of March 31, 2012, property and
equipment increased by JPY2,432 million, resulting from the investment in
servers and network equipments for cloud computing service and others. As for
current liabilities, as compared to the respective balance as of March 31,
2012, income tax payable decreased by JPY1,814 million.

As for the balances of capital lease obligations, as compared to the
respective balances as of March 31, 2012, capital lease obligations-current
portion increased by JPY460 million to JPY3,457 million andcapital lease
obligations-noncurrent increased by JPY841 million to JPY5,582 million,
respectively. The balance of long-term borrowings including current portion as
of December 31, 2012 was decreased to JPY1,990 million resulted from the
repayment of JPY1,010 million.

As of December 31, 2012, the balance of other investments was JPY3,466
million. The breakdown of other investments were JPY2,066 million in
nonmarketable equity securities, JPY1,051 million in available-for-sale
securities and JPY349 million in other.

As of December 31, 2012, the balance of non-amortized intangible assets
(excluding telephone rights) such as goodwill was JPY6,125 million, and the
breakdown of non-amortized intangible assets were JPY5,970 million in goodwill
and JPY155 million in trademark. The balance of amortized intangible assets,
which was customer relationships, was JPY4,804 million.

Total IIJ shareholders' equity as of December 31, 2012 was JPY35,196 million,
an increase by JPY2,508 million from the balance as of March 31, 2012. IIJ
Shareholders' equity ratio (total IIJ shareholders' equity/total assets) as of
December 31, 2012 was 46.4%.

Cash Flows

Cash and cash equivalents as of December 31, 2012 were JPY10,648 million
compared to JPY10,928 million as of December 31, 2011.

Net cash provided by operating activities for 3Q12 was JPY5,880 million
compared to net cash provided by operating activities of JPY6,580 million for
3Q11. While operating income increased compared to 3Q11, there were effects of
changes in operating assets and liabilities such as increase in inventories
and prepaid expenses and there was also the increase in payments for income
taxes.

Net cash used in investing activities for 3Q12 was JPY4,704 million compared
to net cash used in investing activities of JPY4,391 million for 3Q11, mainly
due to payments for purchase of property and equipments of JPY4,410 million
(JPY4,534 million for 3Q11).

Net cash used in financing activities for 3Q12 was JPY4,057 million compared
to net cash used in financing activities of JPY4,541 million for 3Q11, due to
principal payments under capital leases of JPY2,741 million (JPY2,503 million
for 3Q11), JPY709 million in total for FY2011 year-end dividends and FY2012
interim dividends payments (JPY608 million for 3Q11) and repayment for bank
borrowings of JPY610 million (net) (repayment of JPY1,430 million (net) for
3Q11).

FY2012 Financial Targets (Announced on May 15, 2012)

Our financial targets for FY2012 are as follows:

                                                          (JPY in millions)
           Revenues Operating Income before Income Tax    Net Income
                     Income    Expense (Benefit)           attributable to IIJ
Full FY2012 107,000  7,500     6,900                       4,000

Our financial results tend to be weak in the first half and strong in the
second half, especially in fourth quarter, of every fiscal year due to
seasonal factors. The fourth quarter financial results have the largest
contribution to the full year financial results. Our FY2012 full year
financial targets announced on May 15, 2012 remain unchanged.

Revision of FY2012 Year-end Dividend Forecast

On February 8, 2012, we revised upward our FY2012 year-end dividend forecast
from JPY8.75 to JPY10.00 per common stock. Accordingly, FY2012 full-year
dividend forecast will be JPY18.75 per common stock, up JPY2.5 per common
stock YoY as shown below:


                       Interim        Year-end            Full Year
FY2012 Dividend         JPY8.75 (Paid) JPY10.00 (Forecast) JPY18.75 (Forecast)
(Forecast)
FY2011                  JPY7.50        JPY8.75             JPY16.25

*Dividend figures shown above are retroactively adjusted to reflect a 1:200
stock split conducted on October 1, 2012.

Reconciliation of Non-GAAP Financial Measures

The following table summarizes the reconciliation of adjusted EBITDA to net
income attributable to IIJ in our consolidated statements of income that are
prepared in accordance with U.S. GAAP.

Adjusted EBITDA
                                                    3Q11         3Q12
                                                    JPY millions JPY millions
Adjusted EBITDA                                      9,249        10,586
Depreciation and Amortization ^5                     5,251        5,543
Operating Income                                     3,998        5,043
Other Income (Expense)                               (218)        (97)
Income Tax Expense                                   1,603        1,954
Equity in Net Income of Equity Method Investees      153          131
Net income                                           2,330        3,123
Net loss (income) attributable to noncontrolling     60           (11)
interests
Net Income attributable to IIJ                       2,390        3,112


CAPEX
                                      3Q11         3Q12
                                      JPY millions JPY millions
CAPEX, including capital leases        8,652        8,452
Acquisition of Assets by Entering into 4,118        4,042
Capital Leases
Purchase of Property and Equipment     4,534        4,410

Others

On October 1, 2012, IIJ conducted a 1:200 stock split on common stock.
Accordingly, the followings are calculated as if the stock split was conducted
at the beginning of FY2011: basic net income attributable to IIJ per share,
diluted net income attributable to IIJ per share, the number of authorized
shares, the shares outstanding (shares of common stock), and treasury stock in
the consolidated balance sheet. With this stock split, the ADS to common stock
ratio has been changed to 2 ADSs per 1 share of common stock from 400 ADSs per
1 share of common stock since October 1, 2012.

Presentation

Presentation Materials will be posted on our web site
(http://www.iij.ad.jp/en/ir/) on February 8, 2013.

About Internet Initiative Japan Inc.

Founded in 1992, IIJ 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. IIJ's services include high-quality systems integration and
security services, Internet access, hosting/housing, and content design.
Moreover, IIJ has built one of the largest Internet backbone networks in
Japan, and between Japan and the United States. IIJ listed on the U.S. NASDAQ
Stock Market in 1999 and on the First Section of the Tokyo Stock Exchange in
2006.

The Internet Initiative Japan Inc. logo is available at
http://www.globenewswire.com/newsroom/prs/?pkgid=4613

For inquiries, contact:

IIJ Investor Relations

Tel: +81-3-5259-6500 E-mail: ir@iij.ad.jp URL: http://www.iij.ad.jp/en/ir

Statements made in this press release regarding IIJ's or management's
intentions, beliefs, expectations, or predictions for the future are
forward-looking statements that are based on IIJ's and managements' current
expectations, assumptions, estimates and projections about its business and
the industry. These forward-looking statements, such as statements regarding
FY2012 revenues and operating and net profitability, are subject to various
risks, uncertainties and other factors that could cause IIJ's actual results
to differ materially from those contained in any forward-looking statement.
These risks, uncertainties and other factors include: IIJ's ability to
maintain and increase revenues from higher-margin services such as systems
integration and outsourcing services; the possibility that revenues from
connectivity services may decline substantially as a result of competition and
other factors; the ability to compete in a rapidly evolving and competitive
marketplace; the impact on IIJ's profits of fluctuations in costs such as
backbone costs and subcontractor costs; the impact on IIJ's profits of
fluctuations in the price of available-for-sale securities; the impact of
technological changes in its industry; IIJ's ability to raise additional
capital to cover its indebtedness; the possibility that NTT, IIJ's largest
shareholder, may decide to exercise substantial influence over IIJ; and other
risks referred to from time to time in IIJ's filings on Form 20-F of its
annual report and other filings with the United States Securities and Exchange
Commission.

^1 Unless otherwise stated, all financial figures discussed in this
announcement are prepared in accordance with U.S. GAAP. All financial figures
are unaudited and consolidated. The translation of Japanese yen into U.S.
dollars is solely for the convenience of readers outside of Japan. The rate
used for the translation was JPY86.12 per US$1.00, which was the noon buying
rate on December 28, 2012.

^2 IP Service revenues include revenues from the Data Center Connectivity
Service.

^3 Revenue from mobile data communication service for home use is included in
Internet Connectivity service (home use).

^4 Contracts of IIJ Mobile Service are of mobile data communication service
for corporate use.

^5 Depreciation and amortization includes impairment loss on other intangible
assets. (See IIJ's consolidated financial statements for details).

Internet Initiative Japan Inc.
Quarterly Consolidated Balance Sheets (Unaudited)
(As of March 31, 2012 and December 31, 2012)
                                                               

                                    As of March 31, As of December 31, 2012
                                     2012
                                    Thousands of    Thousands of Thousands of
                                     JPY             U.S. Dollars JPY
ASSETS                                                          
CURRENT ASSETS:                                                 
Cash and cash equivalents            13,536,824      123,645      10,648,296
Accounts receivable, net of
allowance for doubtful accounts of
JPY 107,919 thousand and JPY 105,571 15,722,135      178,692      15,388,973
thousand at March 31, 2012 and
December 31, 2012, respectively
Inventories                          752,075         20,786       1,790,064
Prepaid expenses                     1,848,344       37,646       3,242,103
Deferred tax assets -Current         939,370         7,826        674,011
Other current assets, net of
allowance for doubtful accounts of
JPY 10,732 thousand at March 31,     891,560         13,554       1,167,220
2012 and December 31, 2012,
respectively
Total current assets                 33,690,308      382,149      32,910,667
INVESTMENTS IN EQUITY METHOD         1,406,634       19,105       1,645,346
INVESTEES
OTHER INVESTMENTS                    2,938,146       40,250       3,466,298
PROPERTY AND EQUIPMENT, net of
accumulated depreciation and
amortization of JPY 25,693,163       19,735,546      257,401      22,167,374
thousand and JPY 28,190,585 thousand
at March 31, 2012 and December 31,
2012, respectively
GOODWILL                             5,788,333       69,321       5,969,951
OTHER INTANGIBLE ASSETS -Net         5,396,469       57,806       4,978,211
GUARANTEE DEPOSITS                   1,899,815       22,940       1,975,580
DEFERRED TAX ASSETS -Noncurrent      24,760          657          56,585
NET INVESTMENT IN SALES-TYPE         935,446         8,077        695,579
LEASES—Noncurrent
Prepaid expenses —Noncurrent         1,536,932       22,003       1,894,891
OTHER ASSETS, net of allowance for
doubtful accounts of JPY86,388
thousand and JPY 79,338thousand at 140,857         1,528        131,648
March 31, 2012 and December 31,
2012,respectively
TOTAL                                73,493,246      881,237      75,892,130

                                                   

                                    As of March 31, As of December 31, 2012
                                     2012
                                    Thousands of    Thousands of Thousands of
                                     JPY             U.S. Dollars JPY
LIABILITIES AND SHAREHOLDERS' EQUITY                            
CURRENT LIABILITIES:                                            
Short-term borrowings                9,000,000       109,150      9,400,000
Long-term borrowings —current        1,010,000       11,728       1,010,000
portion
Capital lease obligations—current    2,997,292       40,146       3,457,410
portion
Accounts payable —trade              9,093,657       106,253      9,150,548
Accounts payable —other              659,266         4,262        367,018
Income taxes payable                 2,210,089       4,594        395,625
Accrued expenses                     2,277,307       26,070       2,245,125
Deferred income―current              1,495,468       19,827       1,707,505
Other current liabilities            717,342         9,792        843,260
Total current liabilities            29,460,421      331,822      28,576,491
LONG-TERM BORROWINGS                 1,990,000       11,379       980,000
CAPITAL LEASE OBLIGATIONS            4,741,241       64,821       5,582,375
-Noncurrent
ACCRUED RETIREMENT AND PENSION COSTS 1,805,683       22,883       1,970,667
-Noncurrent
DEFERRED TAX LIABILITIRES            652,280         7,064        608,283
-Noncurrent
DEFERRED INCOME -Noncurrent          1,547,159       26,840       2,311,430
OTHER NONCURRENT LIABILITIES         600,215         7,486        644,672
Total Liabilities                    40,796,999      472,294      40,673,918
COMMITMENTS AND CONTINGENCIES                                   
                                                               
SHAREHOLDERS' EQUITY:                                           
Common-stock—authorized, 75,520,000
shares;issued and outstanding,      16,833,847      195,470      16,833,847
41,295,600 shares at March 31, 2012
and December 31, 2012
Additional paid-in capital           27,260,318      316,883      27,289,972
Accumulated deficit                  (10,990,348)    (99,715)     (8,587,457)
Accumulated other comprehensive      (23,533)        604          51,998
income (loss)
Treasury stock—758,800 shares held
by the company at March 31, 2012 and (392,079)       (4,553)      (392,079)
December 31, 2012, respectively
Total Internet Initiative Japan Inc. 32,688,205      408,689      35,196,281
shareholders' equity
NONCONTROLLING INTERESTS             8,042           255          21,931
Total equity                         32,696,247      408,942      35,218,212
TOTAL                                73,493,246      881,237      75,892,130
                                                               
(Note) The U.S. dollar amounts have been translated from yen, for convenience
only, at the rate of JPY86.12 per 1U.S. dollar which was
the noon buying rate in New York City for cable transfers in foreign
currencies as of December 28, 2012.


Internet Initiative Japan Inc.
Quarterly Consolidated Statements of Income and
Quarterly Consolidated Statements of Other Comprehensive Income (Unaudited)
(For The Nine Months Ended December 31, 2011 and December 31, 2012)
                                                               
Quarterly Consolidated Statements of Income
                                  Nine Months Ended Nine Months Ended
                                   December 31, 2011 December 31, 2012
                                  Thousands of      Thousands of Thousands of
                                   JPY               U.S. Dollars JPY
REVENUES:                                                       
Network services:                                               
Internet connectivity services     10,919,624        136,821      11,783,029
(corporate use)
Internet connectivity services     4,327,929         47,732       4,110,638
(home use)
WAN services                       19,177,295        219,226      18,879,758
Outsourcing services               12,817,335        159,563      13,741,605
Total                              47,242,183        563,342      48,515,030
Systems integration:                                            
Systems construction               7,348,767         114,075      9,824,179
Systems operation and maintenance  14,359,541        183,198      15,776,992
Total                              21,708,308        297,273      25,601,171
Equipment sales                    878,749           10,071       867,303
ATM operation business             922,352           19,817       1,706,586
Total revenues                     70,751,592        890,503      76,690,090
COST AND EXPENSES:                                              
Cost of network services           37,587,001        440,916      37,971,665
Cost of systems integration        17,267,064        243,772      20,993,632
Cost of equipment sales            786,589           8,702        749,397
Cost of ATM operation business     1,013,198         16,842       1,450,459
Total cost                         56,653,852        710,232      61,165,153
Sales and marketing                5,940,188         70,028       6,030,817
General and administrative         3,920,530         48,156       4,147,197
Research and development           239,440           3,531        304,060
Total cost and expenses            66,754,010        831,947      71,647,227
OPERATING INCOME                   3,997,582         58,556       5,042,863
OTHER INCOME (EXPENSE):                                         
Interest income                    25,047            231          19,889
Interest expense                   (227,127)         (2,530)      (217,897)
Foreign exchange gains (losses)    (13,469)          (148)        (12,705)
Net gains (losses) on sales of     (170)             158          13,565
other investments -net
Losses on write-down of other      (84,577)          (230)        (19,788)
investments
Other -net                         82,631            1,394        120,039
Other expense — net                (217,665)         (1,125)      (96,897)
INCOME FROM OPERATIONS BEFORE
INCOME TAX EXPENSE AND EQUITY IN   3,779,917         57,431       4,945,966
NET INCOME OF EQUITY METHOD
INVESTEES
INCOME TAX EXPENSE                1,603,606         22,691       1,954,168
EQUITY IN NET INCOME OF EQUITY     153,336           1,529        131,688
METHOD INVESTEES
NET INCOME                         2,329,647         36,269       3,123,486
LESS: NET LOSS (INCOME)
ATTRIBUTABLE TO NONCONTROLLING     60,000            (130)        (11,201)
INTERESTS
NET INCOME ATTRIBUTABLE TO         2,389,647         36,139       3,112,285
INTERNET INITIATIVE JAPAN INC.


                                  Nine Months Ended    Nine Months Ended
                                   December 31, 2011    December 31, 2012
NET INCOME PER SHARE                                           
BASIC WEIGHTED-AVERAGE NUMBER OF   40,536,800                   40,536,800
SHARES (shares)
DILUTED WEIGHTED-AVERAGE NUMBER OF 40,553,800                   40,569,000
SHARES (shares)
BASIC WEIGHTED-AVERAGE NUMBER OF   81,073,600                   81,073,600
ADS EQUIVALENTS (ADSs)
DILUTED WEIGHTED-AVERAGE NUMBER OF 81,107,600                   81,138,000
ADS EQUIVALENTS (ADSs)
BASIC NET INCOME PER SHARE (JPY /  58.95                0.89     76.78
U.S. Dollars / JPY)
DILUTED NET INCOME PER SHARE (JPY 58.93                0.89     76.72
/ U.S. Dollars / JPY)
BASIC NET INCOME PER ADS
EQUIVALENT(JPY / U.S. Dollars /   29.48                0.45     38.39
JPY)
DILUTED NET INCOME PER ADS
EQUIVALENT(JPY / U.S. Dollars /   29.46                0.45     38.36
JPY)
                                                              
(Note) The U.S. dollar amounts have been translated from yen, for convenience
only, at the rate of JPY86.12 per 1U.S. dollar which was
the noon buying rate in New York City for cable transfers in foreign
currencies as of December 28, 2012.


Quarterly Consolidated Statements of Other comprehensive income
                                 Nine Months
                                Ended           Nine Months Ended
                                 December 31,    December 31, 2012
                                 2011
                                Thousands of    Thousands of   Thousands of
                                 JPY             U.S. Dollars   JPY
NET INCOME                       2,329,647       36,269         3,123,486
Comprehensive income (loss), net                              
of tax:
Foreign currency translation     (15,920)        (168)          (14,446)
adjustments
Unrealized holding gain on       13,409          1,043          89,799
securities
Defined benefit pension plans    (6,789)         2              178
Total comprehensive income       2,320,347       37,146         3,199,017
(loss)
Less: Comprehensive income
(loss) attraibutable to          60,000          (130)          (11,201)
noncontrolling interests
Comprehensive income
attributable to Internet         2,380,347       37,016         3,187,816
Initiative Japan Inc.
                                                             
(Note) The U.S. dollar amounts have been translated from yen, for convenience
only, at the rate of JPY86.12 per 1U.S. dollar which was
the noon buying rate in New York City for cable transfers in foreign
currencies as of December 28, 2012.

Internet Initiative Japan Inc.
Quarterly Consolidated Statements of Cash Flows (Unaudited)
(For The Nine Months Ended December 31, 2011 and December 31, 2012)
                                                               

                                  Nine Months Ended Nine Months Ended
                                   December 31, 2011 December 31, 2012
                                  Thousands of      Thousands of Thousands of
                                   JPY               U.S. Dollars JPY
OPERATING ACTIVITIES:                                           
Net income                         2,329,647         36,269       3,123,486
Adjustments to reconcile net
income to net cash provided by                                  
operating activities:
Depreciation and amortization      5,251,482         64,370       5,543,517
Provision for retirement and       149,105           1,919        165,262
pension costs, less payments
Provision for (reversal of)        45,852            (2)          (142)
allowance for doubtful accounts
Loss on disposal of property and   39,616            53           4,593
equipment
Net losses (gains) on sales of     170               (158)        (13,565)
other investments
Impairment of other investments    84,577            230          19,788
Foreign exchange losses (gains),   32,088            (201)        (17,284)
net
Equity in net income of equity     (153,336)         (1,529)      (131,688)
method investees
Deferred income tax expense        108,174           1,765        151,975
Others                             34,705            153          13,153
Changes in operating assets and
liabilities net of effects from                                 
acquisition of a company:
Decrease in accounts receivable    928,294           5,055        435,371
Decrease in net investment in      227,371           2,785        239,867
sales-type lease―noncurrent
Increase in inventories, prepaid
expenses and other current and     (1,047,996)       (34,282)     (2,952,371)
noncurrent assets
Increase (decrease) in accounts    (3,864,764)       694          59,748
payable
Increse (decrease) in income taxes 832,873           (21,136)     (1,820,268)
payable
Increase (decrease) in deferred    (120,220)         9,018        776,649
income-noncurrent
Increase in accrued expenses
andother current and noncurrent   1,702,329         3,271        281,706
liabilities
Net cash provided by operating     6,579,967         68,274       5,879,797
activities
INVESTING ACTIVITIES:                                           
Purchase of property and equipment (4,534,276)       (51,209)     (4,410,119)
Proceeds from sales of property    294,265           5,489        472,706
and equipment
Purchase of available-for-sale     (118,948)         (479)        (41,250)
securities
Purchase of other investments      (106,115)         (4,726)      (407,002)
Investment in an equity method     (24,647)          (1,161)      (100,000)
investee
Proceeds from sales of             3,879             --           --
available-for-sale securities
Proceeds from sales of other       62,205            1,076        92,634
investments
Payments of guarantee deposits     (20,269)          (1,010)      (86,954)
Refund of guarantee deposits       21,314            178          15,363
Payments for refundable insurance  (6,422)           (6)          (554)
policies
Refund from insurance policies     42,948            --           --
Acquisition of a newly controlled  --                (2,660)      (229,058)
company,net of cash acquired
Other                              (4,577)           (112)        (9,618)
Net cash used in investing         (4,390,643)       (54,620)     (4,703,852)
activities



                                  Nine Months Ended Nine Months Ended
                                   December 31, 2011 December 31, 2012
                                  Thousands of      Thousands of Thousands of
                                   JPY               U.S. Dollars JPY
FINANCING ACTIVITIES:                                           
Proceeds from issuance of
short-term borrowings with initial 3,370,000         824          71,000
maturities over three months and
long-term borrowings
Repayments of short-term
borrowings with initialmaturities (620,000)         (12,552)     (1,081,000)
over three months and long-term
borrowings
Principal payments under capital   (2,502,602)       (31,824)     (2,740,622)
leases
Net incrase (decrease) in
short-term borrowings withinitial (4,180,000)       4,645        400,000
maturities less than three months
Proceeds from issuance of
subsidiary stock to minority       --                30           2,570
shareholders
Dividends paid                     (608,052)         (8,237)      (709,394)
Net cash used in financing         (4,540,654)       (47,114)     (4,057,446)
activities
                                                               
EFFECT OF EXCHANGE RATE CHANGES ON (34,314)          (81)         (7,027)
CASH AND CASH EQUIVALENTS
                                                               
NET DECREASE IN CASH AND CASH      (2,385,644)       (33,541)     (2,888,528)
EQUIVALENTS
CASH AND CASH EQUIVALENTS,         13,313,615        157,186      13,536,824
BEGINNING OF THE PERIOD
CASH AND CASH EQUIVALENTS, END OF  10,927,971        123,645      10,648,296
THE PERIOD

ADDITIONAL CASH FLOW INFORMATION:                               
Interest paid                      225,749           2,535        218,322
Income taxes paid                  480,415           40,461       3,484,499
                                                               
NONCASH INVESTING AND FINANCING                                 
ACTIVITIES:
Acquisition of assets by entering  4,118,138         46,933       4,041,871
into capital leases
Facilities purchase liabilities    385,074           4,262        367,018
Asset retirement obligation        42,273            --           --
Acquisition of a company:                                       
Assets acquired                    --                4,693        404,139
Liabilities assumed                --                1,211        104,321
Noncontrolling interests           --                1            118
Cash paid                          --                3,480        299,700
Cash including acquired assets     --                819          70,642
Acquisition of a newly controlled  --                2,660        229,058
company, net of cash acquired

                                                               
(Note) The U.S. dollar amounts have been translated from yen, for convenience
only, at the rate of JPY86.12 per 1U.S. dollar which was
the noon buying rate in New York City for cable transfers in foreign
currencies as of December 28, 2012.


Going Concern Assumption (Unaudited)
Nothing to be reported.
                                                          
Segment Information (Unaudited)
Business Segments:

Revenues:
                                       Nine Months Ended   Nine Months Ended
                                        December 31, 2011   December 31, 2012
                                       Thousands of JPY    Thousands of JPY
Network service and systems integration 70,204,107          75,399,477
business
Customers                               69,829,240          74,983,504
Intersegment                            374,867             415,973
ATM operation business                  922,352             1,706,586
Customers                               922,352             1,706,586
Intersegment                            -                  -
Elimination                             374,867             415,973
Consolidated total                      70,751,592          76,690,090
                                                          
Segment profit or loss:
                                       Nine Months Ended   Nine Months Ended
                                        December 31, 2011   December 31, 2012
                                       Thousands of JPY    Thousands of JPY
Network service and systems integration 4,249,778           4,964,544
business
ATM operation business                  (194,337)           163,845
Elimination                             57,859              85,526
Consolidated operating income           3,997,582           5,042,863
                                                          
Substantially all revenues are from customers operating in Japan. Geographic
information is not presented due to immateriality of
revenue attributable to international operations.
                                                          
Material Changes In Shareholders'
Equity(Unaudited)
Nothing to be reported.
                                                          
Subsequent Events (Unaudited)
Nothing to be reported.

3rd Quarter FY2012 Consolidated Financial Results (3 months)

The following tables are highlight data of 3rd Quarter FY2012 (3 months)
consolidated financial results (unaudited, from October 1, 2012 to December
31, 2012).

Operating Results Summary
                                3Q11         3Q12         YoY % Change
                                JPY millions JPY millions 
Total Revenues:                  23,545       25,581       8.6
Network Services                 15,922       16,256       2.1
Systems Integration (SI)         6,994        8,475        21.2
Equipment Sales                  268          225          (15.9)
ATM Operation Business           361          625          72.8
Cost of Revenues:                18,683       20,204       8.1
Network Services                 12,541       12,589       0.4
Systems Integration (SI)         5,541        6,904        24.6
Equipment Sales                  241          198          (17.6)
ATM Operation Business           360          513          42.2
SG&A Expenses and R&D            3,313        3,597        8.6
Operating Income                 1,549        1,780        14.9
Income before Income Tax Expense 1,489        1,770        18.8
Net Income attributable to IIJ   1,028        1,105        7.5


Network Service Revenue Breakdown
                                       3Q11         3Q12         YoY % Change
                                       JPY millions JPY millions 
Internet Connectivity Service           3,643        3,967        8.9
(Corporate Use)
IP Service                             2,277        2,500        9.8
IIJ FiberAccess/F and IIJ DSL/F        788          791          0.5
IIJ Mobile Service                     517          616          19.1
Others                                  61           60           (1.5)
Internet Connectivity Service (Home     1,398        1,343        (4.0)
Use)
Under IIJ Brand                         217          348          60.1
hi-ho                                   1,033        837          (18.9)
OEM                                     148          158          6.6
WAN Services                            6,476        6,302        (2.7)
Outsourcing Services                    4,405        4,644        5.4
Network Services Revenues               15,922       16,256       2.1

Reconciliation of Non-GAAP Financial Measures (3rd Quarter FY2012 (3 months))

The following table summarizes the reconciliation of adjusted EBITDA to net
income in our consolidated statements of income that are prepared in
accordance with U.S. GAAP.

Adjusted EBITDA
                                                    3Q11         3Q12
                                                    JPY millions JPY millions
Adjusted EBITDA                                      3,376        3,684
Depreciation and Amortization                        1,827        1,904
Operating Income                                     1,549        1,780
Other Income (Expense)                               (60)         (10)
Income Tax Expense                                   548          703
Equity in Net Income of Equity Method Investees      77           49
Net income                                           1,018        1,115
Net Loss (Income) attributable to non-controlling    10           (10)
interests
Net Income attributable to IIJ                       1,028        1,105

The following table summarizes the reconciliation of capital expenditures to
the purchase of property and equipment in our consolidated statements of cash
flows that are prepared and presented in accordance with U.S. GAAP.

CAPEX
                                      3Q11         3Q12
                                      JPY millions JPY millions
CAPEX, including capital leases        2,208        2,549
Acquisition of Assets by Entering into 1,055        924
Capital Leases
Purchase of Property and Equipment     1,153        1,625

Internet Initiative Japan Inc.
Quarterly Consolidated Statements of Income (Unaudited)
(Three Months ended December 31, 2011 and December 31, 2012)
                                                             
                             Three Months Ended Three Months Ended
                              December 31, 2011  December 31, 2012
                             Thousands of       Thousands of   Thousands of
                              JPY                U.S. Dollars   JPY
REVENUES:                                                     
Network services:                                             
Internet connectivity         3,642,759          46,068         3,967,404
services (corporate use)
Internet connectivity         1,397,782          15,589         1,342,487
services (home use)
WAN services                  6,475,568          73,183         6,302,542
Outsourcing services          4,405,320          53,925         4,643,995
Total                         15,921,429         188,765        16,256,428
Systems integration:                                          
Systems Construction          2,154,424          36,351         3,130,593
Systems Operation and         4,839,702          62,053         5,343,964
Maintenance
Total                         6,994,126          98,404         8,474,557
Equipment sales               268,064            2,619          225,523
ATM operation business        361,465            7,252          624,581
Total revenues                23,545,084         297,040        25,581,089
COST AND EXPENSES:                                            
Cost of network services      12,541,295         146,180        12,589,051
Cost of systems integration   5,540,863          80,170         6,904,274
Cost of equipment sales       240,402            2,302          198,152
Cost of ATM operation         360,344            5,950          512,418
business
Total cost                    18,682,904         234,602        20,203,895
Sales and marketing           2,023,213          24,374         2,099,141
General and administrative    1,212,669          16,281         1,402,120
Research and development      76,923             1,112          95,777
Total cost and expenses       21,995,709         276,369        23,800,933
OPERATING INCOME              1,549,375          20,671         1,780,156
OTHER INCOME (EXPENSE):                                       
Interest income               9,097              59             5,066
Interest expense              (72,438)           (845)          (72,734)
Foreign exchange gains        (4,111)            433            37,292
(losses)
Losses on write-down of other (7,117)            -       -     
investments
Other—net                     14,302             231            19,888
Other expense — net           (60,267)           (122)          (10,488)
INCOME FROM OPERATIONS BEFORE
INCOME
TAX EXPENSE AND EQUITY IN    1,489,108          20,549         1,769,668
NET INCOME
IN EQUITY METHOD INVESTEES
INCOME TAX EXPENSE           548,352            8,163          702,996
EQUITY IN NET INCOME OF
EQUITY                        76,627             564            48,600
METHOD INVESTEES
NET INCOME                    1,017,383          12,950         1,115,272
LESS: NET LOSS (INCOME)
ATTRIBUTABLE TO               10,814             (118)          (10,143)
NONCONTROLLING INTERESTS
NET INCOME ATTRIBUTABLE TO
INTERNET INITIATIVE JAPAN    1,028,197          12,832         1,105,129
INC.

                             Three Months Ended Three Months Ended
                              December 31, 2011  December 31, 2012
NET INCOME PER SHARE                                          
BASIC WEIGHTED-AVERAGE NUMBER
OF                            40,536,800                       40,536,800
SHARES (shares)
DILUTED WEIGHTED-AVERAGE
NUMBER                        40,564,400                       40,577,200
OF SHARES (shares)
BASIC WEIGHTED-AVERAGE NUMBER
OF                            81,073,600                       81,073,600
ADS EQUIVALENTS (ADSs)
DILUTED WEIGHTED-AVERAGE
NUMBER                        81,128,800                       81,154,400
OF ADS EQUIVALENTS (ADSs)
BASIC NET INCOME PER SHARE    25.36              0.32           27.26
(JPY / U.S. Dollars / JPY)
DILUTED NET INCOME PER SHARE  25.35              0.32           27.24
(JPY / U.S. Dollars / JPY)
BASIC NET INCOME PER ADS
EQUIVALENT (JPY / U.S.       12.68              0.16           13.63
Dollars / JPY)
DILUTED NET INCOME PER ADS
EQUIVALENT (JPY / U.S.       12.67              0.16           13.62
Dollars / JPY)
                                                             
(Note) The U.S. dollar amounts have been translated from yen, for convenience
only, at the rate of JPY86.12 per 1U.S. dollar which was
the noon buying rate in New York City for cable transfers in foreign
currencies as of December 28, 2012.

                                                             

Internet Initiative Japan Inc.
Quarterly Consolidated Statements of Cash Flows (Unaudited)
(Three Months ended December 31, 2011 and December 31, 2012)
                                                               

                                   Three Months      Three Months Ended
                                  Ended             December 31, 2012
                                   December 31, 2011
                                  Thousands of      Thousands of Thousands of
                                   JPY               U.S. Dollars JPY
OPERATING ACTIVITIES:                                           
Net income                         1,017,383         12,950       1,115,272
Adjustments to reconcile net
income to net cash provided by                                  
operating activities:
Depreciation and amortization      1,827,054         22,111       1,904,175
Provision for retirement and       60,234            680          58,532
pension costs, less payments
Reversal of allowance for doubtful (699)             (3)          (228)
accounts
Loss on disposal of property and   17,699            26           2,278
equipment
Impairment of other investments    7,117             --           --
Foreign exchange gains, net        (3,708)           (621)        (53,502)
Equity in net income of equity     (76,627)          (564)        (48,600)
method investees
Deferred income tax expense        (57,608)          321          27,645
(benefit)
Others                             (13,981)          142          12,186
Changes in operating assets and
liabilities net of effects from                                 
acquisition ofa company:
Decrease (Increase) in accounts    (1,003,770)       2,995        257,960
receivable
Decrease in net investment in      106,180           1,145        98,612
sales-type lease―noncurrent
Increase in inventories, prepaid
expenses and other current and     (847,734)         (14,726)     (1,268,263)
noncurrent assets
Increase (decrease) in accounts    31,242            (2,808)      (241,843)
payable
Increase (decrease) in income      367,105           (5,801)      (499,552)
taxes payable
Increase (decrease) in deferred    (62,218)          5,812        500,559
income― noncurrent
Increase in accrued expenses,
other current and noncurrent       924,045           514          44,303
liabilities
Net cash provided by operating     2,291,714         22,173       1,909,534
activities
INVESTING ACTIVITIES:                                           
Purchase of property and equipment (1,152,846)       (18,868)     (1,624,929)
Proceeds from sales of property    75,699            1,134        97,701
and equipment
Purchase of available-for-sale     --                (251)        (21,644)
securities
Purchase of other investments      (50,000)          (384)        (33,093)
Proceeds from sales of other       --                41           3,517
investments
Payments of guarantee deposits     (1,802)           (749)        (64,481)
Refund of guarantee deposits       741               34           2,966
Payments for refundable insurance  (183)             (2)          (186)
policies
Other                              (4,061)           (112)        (9,678)
Net cash used in investing         (1,157,099)       (19,157)     (1,649,827)
activities


                                   Three Months      Three Months Ended
                                  Ended             December 31, 2012
                                   December 31, 2011
                                  Thousands of      Thousands of Thousands of
                                   JPY               U.S. Dollars JPY
FINANCING ACTIVITIES:                                           
Proceeds from issuance of
short-term borrowingswith initial 50,000            581          50,000
maturities over three months
andlong-term borrowings
Repayments of short-term
borrowings with initialmaturities (120,000)         (824)        (71,000)
over three months long-term
borrowings
Principal payments under capital   (909,092)         (10,776)     (927,968)
leases
Net decrease in short-term
borrowings withinitial maturities 100,000           --           --
less than three months
Proceeds from issuance of
subsidiary stock to minority       --                30           2,570
shareholders
Dividends paid                     (304,026)         (4,119)      (354,697)
Net cash used in financing         (1,183,118)       (15,108)     (1,301,095)
activities
EFFECT OF EXCHANGE RATE CHANGES    2,021             223          19,234
ONCASH AND CASH EQUIVALENTS
NET DECREASE IN CASH AND CASH      (46,482)          (11,869)     (1,022,154)
EQUIVALENTS
CASH AND CASH EQUIVALENTS,         10,974,453        135,514      11,670,450
BEGINNING OF THE PERIOD
CASH AND CASH EQUIVALENTS, END OF  10,927,971        123,645      10,648,296
THE PERIOD
                                                               
(Note) The U.S. dollar amounts have been translated from yen, for convenience
only, at the rate of JPY86.12 per 1U.S. dollar which was
the noon buying rate in New York City for cable transfers in foreign
currencies as of December 28, 2012.
(Note2) The above presentation for the three months ended March 31, 2011 has
been changed to conform to the presentation for
the three months ended March 31, 2012.

Note: The following information is provided to disclose Internet Initiative
Japan Inc. ("IIJ") financial results (unaudited) for the nine months ended
December 31, 2012 in the form defined by the Tokyo Stock Exchange.

Consolidated Financial Results for the Nine Months Ended December 31, 2012
[Under accounting principles generally accepted in the United States ("U.S.
GAAP")]
                                
                                February 8, 2013                            
                                
Company name: Internet           Exchange listed: Tokyo Stock Exchange First
Initiative Japan Inc.            Section
Stock code number: 3774          URL: http://www.iij.ad.jp/
Representative: Koichi Suzuki, President, Representative Director and CEO
Contact: Akihisa Watai, Managing TEL: (03) 5259-6500
Director and CFO
Filing of quarterly report (Shihanki-houkokusho) to the regulatory
organization in Japan: Scheduled on February 14, 2013
Payment of dividend: --
Supplemental material on this Quarterly Results: Yes
Presentation on this Quarterly Results: Yes (for institutional investors and
analysts)

                                                               (Amounts of
                                                        less than JPY
                                                               one million are
                                                               rounded)
1. Consolidated Financial Results for the Nine Months Ended December 31, 2012
(April 1, 2012 to December 31, 2012)
                                                                     (%
(1) Consolidated Results of Operations                         shown is YoY
                                                               change)
                               Operating       Income before   Net Income
             Total Revenues   Income          Income Tax      attributable to
                                               Expense         IIJ
             JPY        %    JPY       %    JPY       %    JPY       %
              millions         millions        millions        millions
Nine Months
Ended         76,690     8.4   5,043     26.1  4,946     30.8  3,112     30.2
December 31,
2012
Nine Months
Ended         70,752     24.6  3,998     64.5  3,780     73.8  2,390     19.7
December 31,
2011
(Note1) Total comprehensive income attributable to IIJ
Nine Months Ended December 31, 2012: JPY3,188 million (up 33.9% YoY)
Nine Months Ended December 31, 2011: JPY2,380 million (up 22.3% YoY)
(Note2) Income before income tax expense represents income from operations
before income tax expense and equity in net income in equity method investees,
respectively, in IIJ's consolidated financial statements


                       Basic Net Income            Diluted Net Income
                      attributable to IIJ per     attributable to IIJ per
                       Share                       Share
                      JPY                         JPY
Nine Months Ended      76.78                       76.72
December 31, 2012
Nine Months Ended      58.95                       58.93
December 31, 2011
(Note) IIJ conducted a 1:200 stock split on common stock with an effective
date of October 1, 2012. Accordingly, basic net income attributable to IIJ per
share and diluted net income attributable to IIJ per share have been
calculated as if the stock split was conducted at the beginning of the
previous consolidated fiscal year.


(2) Consolidated Financial Position
                          Total    Total IIJ     Total IIJ Shareholders'
            Total Assets Equity   Shareholders' Equity to Total Assets
                                   Equity
            JPY millions JPY      JPY millions  %
                          millions
As of
December 31, 75,892       35,218   35,196        46.4
2012
As of March  73,493       32,696   32,688        44.5
31, 2012


2. Dividends
                      Dividend per Shares
                      1Q-end    2Q-end      3Q-end    Year-end    Total
                      JPY       JPY         JPY       JPY         JPY
Fiscal Year Ended      --        1,500.00    --        1,750.00    3,250.00
March 31, 2012
Fiscal Year Ending     --        1,750.00    --                   
March 31, 2013
Fiscal Year Ending
March 31, 2013                                      10.00       1,760.00
(Forecast)
(Note1) Changes in the latest forecasts released: Yes
(Note2) The year-end dividend forecast for fiscal year ending March 31, 2013
reflects the stock split effective on October 1, 2012. For details, please
refer to the "4. Others (4) Others" of this document.


3. Target of Consolidated Financial Results for the Fiscal Year (% shown is
Ending March 31, 2013                                            YoY change)
(April 1, 2012 through March 31, 2013)
                                      Income before              Basic Net
                        Operating     Income Tax    Net Income   Income
       Total Revenues  Income        Expense       Attributable attributable
                                      (Benefit)     to IIJ       to IIJ per
                                                                 Share
       JPY        %    JPY      %    JPY      %    JPY      %   JPY
        millions        millions      millions      millions
Fiscal
Year
Ending  107,000    10.0 7,500    18.0 6,900    15.5 4,000    9.9 98.68
March
31,
2013
(Note1) Changes in the latest target released: None
(Note2) Basic net income attributable to IIJ per share for the fiscal year
ending March 31, 2013 reflects the stock split effective on October 1, 2012.

4. Others

(1) Changes in Significant Subsidiaries for the Nine Months Ended December 31,
2012

(Changes in significant subsidiaries for the Nine Months Ended December 31,
2012 which resulted in changes in scope of consolidation): None

(2) Changes in Significant Accounting and Reporting Policies for the Quarterly
Consolidated Financial Statements

1) Changes due to the revision of accounting standards: Yes

2) Others: No

(3) Number of Shares Outstanding (Shares of Common Stock)

1) The number of shares outstanding (inclusive of treasury stock): 
As of December 31, 2012:             41,295,600 shares
As of March 31, 2012:                41,295,600 shares


2) The number of treasury stock:
As of December 31, 2012: 758,800 shares
As of March 31, 2012:    758,800 shares


3) The weighted average number of shares outstanding:
For the Nine Months Ended December 31, 2012: 40,536,800 shares
For the Nine Months Ended December 31, 2011: 40,536,800 shares

(Note) IIJ conducted a 1:200 stock split on common stock with an effective
date of October 1, 2012. Number of shares outstanding (shares of common stock)
in the above have been calculated as if the stock split was conducted at the
beginning of the previous fiscal year (fiscal year ended on April 1, 2011).

(4) Others

The below table provides the dividends retroactively adjusted to reflect the
stock split.


                                Dividend per Shares
                                2Q-end      Year-end         Total
                                JPY         JPY              JPY
Fiscal Year Ended March 31, 2012 7.50        8.75             16.25
Fiscal Year Ending March 31,     8.75 (Paid) 10.00 (Forecast) 18.75 (Forecast)
2013

CONTACT: Internet Initiative Japan Inc.
         E-mail: ir@iij.ad.jp
         Tel: +81-3-5259-6500
         URL: http://www.iij.ad.jp/en/ir

company logo
 
Press spacebar to pause and continue. Press esc to stop.