ACE*COMM Reports Results for the Third Quarter of Fiscal 2007.

Corporate Highlights:

* Net loss for quarter of $2.6 million

* Signed Term Sheet, negotiating $4.2 million in convertible debt financing 

* Backlog increased to $15.3 million

* Cost reductions of $3.0 million completed

* New management structure implemented

GAITHERSBURG, Md. -- ACE*COMM Corporation (NASDAQ:ACEC), a global provider of value-added services and advanced operations support systems (OSS) solutions, today reported financial results for the quarter ended March 31, 2007, the third quarter of its 2007 fiscal year. The company reported revenue of $3.1 million for the quarter, which compares to $6.7 million for the comparable quarter of fiscal year 2006. Net loss for the quarter was $2.6 million, or $0.14 per share, compared to a profit of $365,000, or $0.02 per share, for the same quarter of the prior year.

For the nine months ended March 31, 2007, revenue was $9.3 million compared to $20.1 million for the same nine months of fiscal year 2006. Net loss for the nine months was $7.9 million, or $0.44 per share, compared to a net income of $800,000, or $0.05 per share, for the same nine months of the prior year.

"Third-quarter revenues were derived primarily from backlog and maintenance contracts," said ACE*COMM CEO Jim Greenwell. "However, we see this trend reversing and for the first time in 18 months, bookings for the quarter exceeded revenues, increasing our backlog to $15 million. We have, in addition, resolved or are in the process of resolving issues that have led to project delays over the past year. These are significant reversals that we believe reflect an improved direction for the company."

Continued Mr. Greenwell, "We are also finding and continuing to capitalize on opportunities in the wireless mobility space. Interest in our products continues to grow, as illustrated by our selection in April by Cincinnati Bell Wireless, who we understand will launch both Parent Patrol[R] and Enterprise Patrol[TM] under its own brand later this year. In addition, we are implementing a hosted Patrol Suite solution for a third carrier through one of our channel partners. Finally, we signed a Memorandum of Understanding and are in final contract negotiations for an innovative Advanced Revenue Management solution for a customer operating one of the largest mobile transaction networks delivering mobile services and content to operators around the world."

Steve Delmar, CFO, added, "We are engaged in raising over $4 million of additional financing for the company. Combined with the cost reductions already in place, this new financing will have a strong positive impact on our financial position and cash resources. The new funding, which we expect to close in the next few weeks, will provide the capital we need to invest in our value-added services business. Also, this quarter was the first quarter in over a year in which our sales bookings exceeded our revenue, increasing our backlog."

Mr. Greenwell concluded, "The changes made in our leadership and organizational structure - particularly when combined with the new financing and a more streamlined budget - will make ACE*COMM a stronger and more focused company. In the coming months, we believe we can execute effectively on our strategy to return our traditional businesses to profitability and to expand our presence in the fast growing value-added services market."

ACE*COMM will host an earnings teleconference call on Tuesday, May 15 at 5:30 pm ET to discuss the third quarter fiscal year 2007 results. To participate, please call 866-847-7859 (within the United States) or 703-639-1426 (outside the United States). When prompted, enter the ACE*COMM reservation number 1086753. Internet users can hear a simultaneous live webcast of the teleconference at http://acecomm.com or http://www.fulldisclosure.com. An audio replay of the call is available from 8:30 p.m. ET on May 15, 2007, through 11:59 p.m. ET on May 23, 2007. To listen to the audio replay, please call 888-266-2081 (within the United States) or 703-925-2533 (outside the United States); the passcode is: 1086753

About ACE*COMM

ACE*COMM is a global provider of value-added services, mobile content delivery applications and advanced operations support systems (OSS) solutions for telecommunications 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, multimedia, and Internet communications networks. These solutions provide the software applications that enable new carrier services offerings and the analytical tools required to extract knowledge from operating networks--knowledge customers use for cost reduction, improved operational efficiency, acceleration of time-to-market for new services, and more effective customer care.

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 currently enabling the success of customers and partners such as Alcatel-Lucent, AT&T, Cisco, General Dynamics, IBM, Level 3 Communications, Marconi, Motorola, Northrop Grumman, and Siemens. Headquartered in the Washington, DC area, ACE*COMM has corporate offices in Australia, Canada and the UK. ACE*COMM is an ISO 9001 compliant company. For more information, visit www.acecomm.com.

ACE*COMM, NetPlus, the ACE*COMM logo, and N*VISION are registered trademarks, and Convergent Mediation and Parent Patrol are trademarks 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 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.

[TABLE OMITTED]
[TABLE OMITTED]