Internet Initiative Japan : Notice Regarding the Terms and Conditions Concerning the Issuance of Stock-Compensation-Type Stock Options (Stock Acquisition Rights)

[English Translation]

July 14, 2022

Company name: Internet Initiative Japan Inc.

Company representative: Eijiro Katsu, President and Representative Director (Stock Code Number: 3774, The Prime Market of the Tokyo Stock Exchange)

Contact: Akihisa Watai, Senior Managing Director and CFO TEL: [phone]

Notice Regarding the Terms and Conditions Concerning the

Issuance of Stock-Compensation-Type Stock Options (Stock Acquisition Rights)

TOKYO-July 14, 2022-Internet Initiative Japan Inc. ("IIJ", the "Company", TSE Prime: 3774) hereby announces that it has determined the remaining terms and conditions concerning the issuance of stock-compensation-type stock options ("Stock Acquisition Rights"), resolved by the IIJ's Board of Directors on June 28, 2022, to be allotted to Directors (excluding Part-time and Outside Directors) and Executive Officers of IIJ, as follows.

1. Total number of Stock Acquisition Rights 17,497 rights
2. Class and total number of shares underlying the Stock Acquisition Rights
   17,497 shares of the Company's common stock (the number of shares to be issued or transferred for each Stock Acquisition Rights shall be 1 share)
3. Amount to be paid in exchange for the Stock Acquisition Rights
   JPY4,361 per Stock Acquisition Rights (JPY4,361 per share of common stock)
   The Stock Acquisition Rights are allotted to Directors (excluding Part-time and Outside Directors) and Executive Officers of IIJ by offsetting their monetary remuneration claims against the Company and their obligations to pay for the allotment of the Stock Acquisition Rights.
4. Persons to be allotted the stock acquisition rights, number of persons, and number of stock acquisition rights to be allotted:

Directors (excluding Part-time and Outside Directors) of IIJ	9 Directors	11,650 rights
Executive Officers of IIJ	17 Executive Officers	5,847 rights

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 companies provide total network solutions that mainly cater to high-end corporate customers. IIJ's services include high-quality Internet connectivity services, mobile services, security services, cloud computing services, and systems integration. Moreover, IIJ operates one of the largest Internet backbone networks in Japan that is connected to the United States, the United Kingdom and Asia. IIJ listed on the First Section of the Tokyo Stock Exchange ("TSE") in 2006 and transitioned to the Prime Market of TSE from April 2022.

IIJ Investor Relations

Tel: [phone]E-mail:[e-mail]: https://www.iij.ad.jp/en/ir