Establishment of INTERNET MULTIFEED CO.

News Release

INTERNET MULTIFEED CO.

Establishment of INTERNET MULTIFEED CO.

Nippon Telegraph and Telephone Corporation (NTT; head office: Shinjuku-ku, Tokyo; president: Jun-ichiro Miyazu) and Internet Initiative Japan Inc. (IIJ; head office: Chiyoda-ku, Tokyo; president: Koichi Suzuki) and 18 other firms have agreed to establish INTERNET MULTIFEED CO., a new company offering high-speed, high-capacity distribution of Internet content.

INTERNET MULTIFEED will provide a "location" for connecting high-speed Internet backbones with content servers to create an information distribution market on the Internet. The company will use multifeed technology to reduce the rising load imposed on networks by increases in content distribution. MultiFEED technology, currently in testing led by NTT and IIJ, will allow high-speed, high-volume distribution through more efficient management of network traffic.

The company aims to make this "location" a major base for distributing content nationwide, to Asia, and worldwide.

1. Name of New Company
   INTERNET MULTIFEED CO.
   See below for details.

2. Business Overview
   The new company will launch a MultiFEED Connectivity Service offering high-speed, high-volume content provision, and a MultiFEED Housing Service, offering central siting of equipment, such as routers and servers, used by Internet content and service providers along with maintenance and management services. In addition to these two core services, the new company will offer related services that promote content distribution.

   • MultiFEED Connectivity Service
     This service will use MultiFEED systems to link Internet content providers that have high-volume content with the high-speed backbones of leading Internet service providers with numerous end users to realize a high-speed network environment for content distribution. This service achieves the high-speed, large-volume distribution of content via MultiFEED technology to allow efficient simultaneous access to content by multiple end users.

   • MultiFEED Housing Service
     This service offers Internet content providers and service providers that use the MultiFEED Connectivity Service central siting of routers, servers, and other equipment, as well as maintenance and management services. Users of this service benefit from facilities equipped with sophisticated security for their equipment, as well as uninterruptible power supply, air conditioning, and other facility services for keeping their equipment running. Monitoring and maintenance are, of course, also included.

   • Development of Other Related Services
     The company plans to develop and offer sophisticated services for promoting content distribution, such as bandwidth-on-demand transactions* and statistical information services using traffic analysis in order to contribute to the healthy development of the Internet environment in Japan

     • Transactions in which bandwidth required by the transmission participants or the content is secured, and charges are levied according to the bandwidth used.

3. Future Plans
   A trial service will commence in October 1997, with commercial service scheduled for April 1998.

Description of the New Company Name of company : INTERNET MULTIFEED CO.

Establishment : September 1997

Address : Chiyoda-ku, Tokyo

Capital : 490 million yen

Shareholders and interest
(in order of percentage ownership and Japanese alphabetical order)

Internet Initiative Japan Inc.	26%
Nippon Telegraph and Telephone Corp.	26%
ITOCHU Corp.	5%
NTT PC Communications Inc.	5%
NEC Corp.	5%
Fujitsu, Ltd.	5%
Cisco Systems,Inc.	2%
IIJ Technology Inc.	2%
IIJ Media Communications Inc.	2%
Asahi Shimbun	2%
NTT Data Corp.	2%
NTT Urban Development Co.	2%
NTT Learning Systems Corp.	2%
International Digital Communications Inc.(IDC)	2%
Sumitomo Corp.	2%
Dai Nippon Printing Co., Ltd.	2%
Trans Cosmos Inc.	2%
FamilyMart Co., Ltd.	2%
The Mainichi Newspapers	2%
The Yomiuri Shimbun	2%

President and representative director : Koichi Suzuki