ACE*COMM Announces Data Collection Project in Yunnan Province, China; Kunming Tel to Use ACE*COMM's Mediation Systems for Network Data Collection.

Business Editors/High-Tech Writers

GAITHERSBURG, Md.--(BUSINESS WIRE)--Feb. 2, 2004

ACE*COMM Corporation (NASDAQ:ACEC), a global provider of advanced operations support systems (OSS) technologies, today announced that it has been selected to provide a data collection mediation solution for Kunming Tel, a service provider in Yunnan Province, China. The solution provides the data collection elements from ACE*COMM's Convergent Mediation(TM) suite, and will be used for the capture, processing, and storing of transaction records critical to the process of billing customers and managing traffic on the network. Kunming Tel is the telecommunications service provider for Kunming City - the capital city and largest metropolitan area in Yunnan Province, with a population in excess of three million people. ACE*COMM has worked together with ZTE Corporation, China's largest telecommunications equipment provider, to secure this new contract.

"This latest business in China is the result of a targeted sales effort in Yunnan Province, spanning approximately a year and encompassing an earlier field trial and pilot installation. We are pleased to have made real inroads as part of our proof-of-concept work to date," said George T. Jimenez, CEO of ACE*COMM. "Further, we are delighted to have marked a partner milestone with ZTE Corporation, clearly an important player in the Chinese telecommunications landscape. We intend to continue to build on these dual successes for additional market penetration in Yunnan Province and in China."

The 'data collection' functionality of ACE*COMM's Convergent Mediation(TM) solution is part of the process of securing of network usage data. "Collection" typically refers to the process of centralizing data from several sites. Data is gathered directly from multiple network elements and from other data capture adjunct processors. ACE*COMM's collection solutions support usage-sensitive billing with flexible, configurable collection for large networks, and provide the following benefits:

-- Efficient, reliable collection that includes polling and

verifying of records sent directly from virtually any type of

network element.

-- Standards-based solutions with a wide support library of

different formats and protocols

-- Collects in near real time or on user-defined batch schedule

-- Supports retransmission of data in the event of downstream

data loss

-- Centralized monitoring and troubleshooting reduces maintenance

costs and ensures minimum downtime and maximum revenue

potential

About ACE*COMM

ACE*COMM is a global provider of advanced Convergent Mediation(TM) products and Enterprise operations support software applications. ACE*COMM's solutions are employed in wired and wireless networks that deliver voice, data, mixed media and Internet communications. Their proven technology provides the ability to capture, secure, validate, and enhance data from multiple networks. These operations are performed interactively with a data warehouse, and processed information is distributed in near real-time, to all types of carrier OSS (Operations Support Systems) and BSS (Business Support Systems). Solutions are matched to each customer's business environment. They provide the analytical tools required to extract knowledge from operating networks - knowledge customers use to generate more revenue, reduce costs, accelerate time-to-market for new services, and deliver more effective customer support.

For more than 20 years, ACE*COMM technology has been effectively deployed in over 3500 installations in more than 65 countries world-wide - including over 100 installations in China - enabling the success of customers and partners such as AT&T, Cisco, Marconi, Motorola, Alcatel, General Dynamics, TRW, Unisys and Siemens. ACE*COMM is a registered ISO 9001 quality standard company. For more information, visit www.acecomm.com.

ACE*COMM, NetPlus, the ACE*COMM logo and N*VISION are registered trademarks, and Convergent Mediation is a trademark of ACE*COMM Corporation.

Except for historical information, the matters discussed in this news release include forward-looking statements that are subject to certain risks and uncertainties that could cause the actual future events to differ materially from those projected, including, but not limited to: the failure of anticipated demand to materialize, delays or cancellations of orders due to various factors, including business and economic conditions in the U.S. and foreign countries; industry-wide slowdowns, any limitations on customers' financial resources, the continued convergence of voice and data networks, the continuing success of the Company's strategic alliances for product development and marketing, customer purchasing and budgetary patterns or lack thereof; pricing pressures and the impact of competitive products; the timely development and acceptance of new products; the Company's ability to adequately support its operations, and other risks detailed from time to time in the Company's Report on Form 10-Q and other reports filed with the Securities Exchange Commission.