ACE*COMM Introduces Its Advanced Mediation Platform for Next-Generation Service Delivery.

GAITHERSBURG, Md. & NICE, France -- Convergent Mediation(TM) SDP Includes Service Implementation and Control Capabilities for VoIP, 3G and IP Services

ACE*COMM Corporation (NASDAQ:ACEC), a global provider of advanced operations support systems (OSS) solutions for communications networks, introduced today its advanced mediation-based platform for the control and delivery of next-generation services - Convergent Mediation(TM) SDP (Service Delivery Platform) - at the IIR Next Generation Billing and Processes 2005 Conference, December 7-9, in Nice, France.

Convergent Mediation(TM) SDP is an innovative approach that enables operators and service providers to deliver new mobile and data services to their subscribers, competitively and profitably. Studies show marked growth rates in the adoption of next-generation services such as Voice-over-IP (VoIP), mobile email, text and picture messaging, ringtone and game downloads, and location-based services. ACE*COMM's Convergent Mediation(TM) SDP ensures accurate billing and intercarrier/partner settlements, real-time rating and charging for pre- and post-paid, proven revenue assurance, and rapid rollout and delivery time - on virtually any kind of service, network, and configuration environment.

"Convergent Mediation(TM) SDP builds on our unrivalled experience in the mediation space to offer a reliable and flexible platform to address our customers' needs for the rapid and profitable delivery of next generation services to their subscribers," said Chris Couch, ACE*COMM's Senior Vice President and Chief Marketing Officer. "Convergent Mediation(TM) SDP is a major, logical step forward for us in terms of our product road map. It supports the delivery of value-add services in a massively scalable way. By consolidating core service delivery OSS functions at the network's edge - the space where mediation is currently dominant - we enable carriers to define and launch more revenue producing services faster, with less disruption, and with minimal incremental cost."

Mr. Couch will chair the "Next Generation Mediation & Rating Strategies" day of the IIR Next Generation Billing and Processes 2005 Conference on Thursday, December 9, 2004. He will also be making a presentation entitled "Overcoming the Challenges of Billing Mediation and Next Generation Service Delivery" at 2:40 P.M. as part of the day's activities. For more information, visit: www.iir-conferences.com.

Convergent Mediation(TM) SDP features the following key capabilities:

--Real-time Event Management and Service Logic Execution - for a real-time event processing platform that enables the rapid deployment of new services and servers; facilitates the integration of new services with existing OSS/BSS; and supports a multitude of interfaces to different OSS and CRM applications, including fraud, scoring, customer profiling, and provisioning.

--Real-time Provisioning - to enable service activation and management to occur within the same timeframes as service delivery, and to allow for customer self-care.

--Support for Converged Pre- and Post-paid Voice and Data Services - to enable existing pre- and post-paid systems to support new data services.

--Real-time Rating and Balance Management - to support the rapid deployment of new services using existing OSS infrastructure, and enables e-wallet functionality, as well as interconnect and partner settlements.

--Supplemental Subscriber Information Management - a subscriber data repository that can act as a primary or secondary system of record for subscriber information that cannot be readily managed by another system. This lets service providers launch new services with new subscriber data requirements, quickly and economically.

--Real-time Credit Checking - for both pre-paid and post-paid environments.

--Highly Flexible and Configurable Framework - to integrate new services quickly and independently using an intuitive GUI.

--J2EE-based Platform - developed using the latest software technologies; hardware platform independent, highly distributable and scalable, and supporting various fault tolerant and high availability configurations.

--Modular Architecture - developed for both very small to very large installations, and is easily expandable to support new functionality and higher volumes as operators and service providers grow.

Industry research firm, Dittberner Associates Inc., forecasts the worldwide market for mediation software and services will grow to $1.25 billion dollars in 2009, from an estimated $824 million dollars in 2004.

According to Dan Baker, Director of Dittberner's OSS/BSS KnowledgeBase, "The adoption of next generation network services, such as VoIP and 3G mobile, has revitalized the mediation market. This platform announcement demonstrates that ACE*COMM intends to take advantage of these new business opportunities."

Dittberner's research cites three key factors driving the mediation market: a) the rise of a new class of VoIP service providers; b) traditional carriers upgrading their mediation systems to handle softswitch rollouts; and c) the need for highly flexible, scalable, and real-time-based mediation platforms to enable and control advanced 2.5G and 3G mobile services. For more information, visit the Dittberner's website at www.Dittberner.com.

Availability:

Convergent Mediation(TM) SDP is scheduled for delivery during the first quarter of calendar year 2005. For more information: [e-mail].

About ACE*COMM

ACE*COMM is a global provider of advanced operations support systems (OSS) solutions for telecom service providers and enterprises. ACE*COMM's solutions are applicable to a range of legacy through next-generation networks that include wired, wireless ,voice, data, multi-media, and Internet communications networks. These solutions include the analytical tools required to extract knowledge from operating networks - knowledge customers use for revenue recovery, reduction of costs, acceleration of time-to-market for new services, and more effective customer care. ACE*COMM also offers interoperable wireless billing and electronic payment solutions, in addition to mediation and OSS solutions, for operators in both developed and emerging markets around the world.

For over 20 years, ACE*COMM technology has been effectively deployed for more than 300 customers, spanning over 4000 installations, in 70 countries worldwide. ACE*COMM-installed products are presently enabling the success of customers and partners such as AT&T, Cisco, IBM, Marconi, Motorola, Alcatel, General Dynamics, Northrop-Grumman, 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 results to differ materially from those projected, including, but not limited to: the failure of anticipated demand to materialise, 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.