ACE*COMM Reports Signing of Two Contracts Totaling $700,000.

Expects to begin deployment of US Air Force telecom management systems by year-end

GAITHERSBURG, Md. -- ACE*COMM Corporation (ACEC.PK), a leading supplier of advanced operations and business support systems (OSS - BSS) for commercial and government communications organizations, today announced the signing of two new one-year contracts to provide continued support at multiple Department of Defense locations in Europe, Asia and North America. The initial value of the two contracts totals approximately $700,000.

Installation of these systems began approximately six years ago and all have been supported by the Company and remained in continuous operation since installation. Many of these systems are a second generation of an earlier technology, also supplied by ACE*COMM. In these locations, NetPlus[R] is meeting an essential requirement in the military for communications network systems management. The Company expects that other support contracts will be added over time as new systems come on line.

Jim Greenwell, ACE*COMM's President and CEO, commented, "NetPlus[R] has been a core product of ACE*COMM for many years and these new contracts continue to demonstrate the value this product represents for us and our customers."

"In addition, we are starting to see more activity under our telecom management systems (TMS) contract for a substantial portion of all the US Air Force locations, worldwide. This major contract was obtained in August, 2005, in partnership with one of our prime contractors. Although deployment of these systems has been delayed for over a year due to higher priority Air Force mission demands, we now expect that deployments will commence within the next two to three months. With these new deployments alone, many more advanced systems will go into the field, sustaining ACE*COMM's position as a leading provider of TMS in this market."

About NetPlus[R]

NetPlus[R] is an advanced enterprise operations support system (EOSS) designed for enterprise-level voice and data networks. Using a platform-independent architecture and a single-entry, single-image Oracle[R] database, NetPlus[R] reduces costs while enabling smooth operation. NetPlus[R] can replace several disparate products with one fully integrated system, saving money and improving long-term stability.

About ACE*COMM

ACE*COMM is a global provider of advanced operations support systems (OSS) and service delivery solutions for telecommunications service providers and enterprises. ACE*COMM's advanced OSS solutions are applicable to a range of legacy through next-generation networks that include wired, wireless, voice, data, multimedia and Internet communications networks. Network operators use them for revenue management, cost reduction, improved operational efficiency, acceleration of time-to-market for new services, and more effective customer care. ACE*COMM's service delivery solutions provide mobile service providers with award-winning, in-demand consumer-oriented services to help them achieve and sustain market share, generate new revenue and position themselves as market innovators.

For more than 20 years, ACE*COMM technology has been effectively deployed for more than 300 customers, spanning more than 4,000 installations in 70 countries worldwide. ACE*COMM-installed products are currently enabling the success of customers and partners such as Alcatel-Lucent, AT&T, Bell Aliant, Cincinnati Bell, Cisco, General Dynamics, IBM, Motorola, Northrop Grumman, Siemens, and VeriSign. Headquartered in Gaithersburg, MD, ACE*COMM has corporate offices in Australia, Canada and the UK. ACE*COMM is an ISO 9001 quality standard compliant company. For more information, visit www.acecomm.com.

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.