IIJ and China Telecom Announce Strategic Partnership to Jointly Provide Cloud Computing Services in China

Internet Initiative Japan Inc. and China Telecom Corporation Limited today announced that they have forged a strategic partnership to jointly provide Cloud computing services in China. As part of the partnership, the two companies plan to develop Cloud computing services just as IaaS, PaaS and SaaS, and aim to provide them to the Chinese market from summer 2012.

IIJ has long experience in providing resource on-demand services, a prototype service for Cloud computing from 2000. From 2009, IIJ began providing Cloud computing service in accordance with the brand name "IIJ GIO" which covers layers from IaaS to SaaS. Currently,IIJ GIO has been recognized as No.1 Cloud computing service in Japan and is adopted by over 600 Japanese blue-chip clients. From 2011, IIJ has strengthened its overseas business and considers China to be one of the most important markets in Asia.

China Telecom is the largest carrier in China that provides an array of telecommunications-related services, from voice, internet connectivity to wireless services and as well owns and operates data centers facilities across the country. With its elaborate network infrastructure, China Telecom provides services to around 170 million local line subscribers.

The most from this strategic partnership

To make the most from this strategic partnership, IIJ and China Telecom will jointly provide high quality and flexible Cloud computing services in China, as is provided in Japan, by exploiting IIJ's abundant experiences in providing Cloud computing service and utilizing the largest and strongest network infrastructure that China Telecom owns throughout China. China Telecom will offer its data center and network infrastructure and IIJ will build and operate the Cloud computing platform.

Many Japanese companies are operating businesses in China and there would be demands for Cloud computing services. As well IIJ and China Telecom believe there are potential demands especially for IaaS from Chinese companies. We will cooperate at the same time in developing and operating many great services most suited in the Chinese 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, exactly 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.