Internet Initiative Japan : IIJ Builds MVNO Service Platform as MVNE to Support Panasonic's Entry into MVNO Business

TOKYO-October 15, 2014-Internet Initiative Japan Inc. (IIJ, NASDAQ: IIJI, TSE1: 3774), one of Japan's leading Internet access and comprehensive network solutions providers, today announced it supports the entry of Panasonic Corporation ("Panasonic") into the MVNO business. As an MVNE(*1) , IIJ has built a service platform with IIJ Mobile Service for the Panasonic's MVNO service started on October 14.

In addition to providing network bandwidth using LTE and 3G networks, IIJ has built the following systems as the MVNO service platform for Panasonic.

1. Communication control system (centering on PCRF (*2) /PCEF (*3) )
2. Business systems for such functions as customer management, billing, and invoices
3. Highly secure remote access platform

Panasonic's unique communication control systems allow for detailed communication control. The system can be custom built for such purposes as billing systems, flexibly providing services that meet the needs of the application. In building this service platform, IIJ-which offers comprehensive solutions from mobile networks to cloud computing environments-was applauded for its accomplishments in its advanced level of administration technology, abundant experience as an MVNO, and ability as an independent provider to deal with multiple carriers. As a result, IIJ was chosen as MVNE. As the Panasonic Group enters the MVNO business, it also plans to support training in MVNO service administration technology.

Panasonic currently focuses on solutions for business customers. Starting with the M2M field, it views IoT (*4) as one means to strengthen this business, and is making a full-scale entry into the MVNO business to provide a one-stop service that covers devices, networks, and the cloud computing service. The company expects to apply this MVNO service to solutions that focus on Panasonic Group hardware, such as integration of communication functions with its products, or services that allow for remote maintenance and management of devices.

• (*1) MVNE (Mobile Virtual Network Enabler): Businesses that provide services supporting MVNO.
• (*2) PCRF (Policy and Charging Rules Function): Control functions that manage/determine communication policies (speed, etc.).
• (*3) PCEF (Policy and Charging Enforcement Function): Functions that control communications according to PCRF policies.
• (*4) IoT (Internet of Things): A framework where every object in the world-not only telecommunication devices such as computers-is given communication functions, and where automatic recognition and control are performed as these devices communicate with one another over the Internet.

As IIJ continues to support the MVNO business of the Panasonic, it will strengthen its MVNE business and expand its support to other companies entering the MVNO business, with the goal of creating a diverse mobile services market.

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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