ACE*COMM Corporation (NASDAQ:ACEC), a global provider of network business intelligence and advanced operations support systems (OSS) solutions, today reported financial results for the quarter ended December 31, 2005, the second quarter of its 2006 fiscal year. The Company reported revenues of $6.7 million for the quarter, which compares to $4.8 million for the comparable quarter of fiscal year 2005. Net profit for the quarter was $347 thousand, or $0.02 per share, compared to a net profit of $176 thousand, or $0.01 per share, for the same quarter in the prior year.

For the six months, revenues were $13.4 million which compares to $9.4 million for the same six months period last year. Net profit for the six months ended December 31, 2005 was $446 thousand or $0.03 per share as compared to a net loss of $209 thousand or $0.02 per share in the same six months last year.

“ACE*COMM’s second quarter performance underscores the successes we have achieved to date with our reinvigorated growth strategy and the resilience of our organization,” said George T. Jimenez, CEO of ACE*COMM. “Our Network Business Intelligence(TM) suite is making gains in the carrier market, with the noteworthy expansion to a second phase of the contract with Saudi Telecom. As carriers become more aware that their networks are a major source of business information, we believe they will increasingly look to experienced companies like ACE*COMM for solutions that enable operational and business intelligence (BI) processes, and invest in BI with enterprise-wide initiatives. Our extensive experience with systems that operate at the edge of the network places us in an optimal position to capture market share for the evolving telecom BI market.”

“We are further delighted to have successfully completed customer site trials and testing for the deployment of our industry-leading Parent Patrol(TM) service control application that allows parents to manage children’s mobile phone usage. Our pipeline of opportunities remains strong, and we anticipate rolling out our first deployment of this patent-pending technology in North America in the near future,” continued Mr. Jimenez. “Market analysts forecast tremendous potential for growth in the mobile youth segment once innovative solutions - like Parent Patrol(TM) - are available to deal with parental concerns. Looking ahead, we expect market penetration rates for this technology to accelerate.”

Continued Mr. Jimenez: “Our ability to win significant business such as our major contract with Northrop Grumman for the US Air Force, stems from both our technical expertise and our success in joining forces with large industry players. We will expand this approach to all areas of our business. We continue to strengthen our relationship with Northrop Grumman, and other NetPlus(R) channel partners, to leverage our industry recognition and market success into additional contract opportunities.”

“Having delivered exceptional top-line growth in the first half of fiscal 2006 and continued profitability, ACE*COMM is demonstrating the earnings power of its business model,” said Steve Delmar, CFO of ACE*COMM. “Additionally, we still have opportunities to improve efficiencies across the Company, and are currently working to hone these and to more tightly integrate corporate functions.”

Earnings Call
ACE*COMM will host an earnings teleconference call this evening, February 8, 2006 at 5:30 pm, Eastern Standard Time, to discuss the second quarter results. To participate, please call 866-219-5885 (within the United States) or 703-639-1124 (outside the United States). When prompted, enter the ACE*COMM reservation number 851617. Internet users can hear a simultaneous live Webcast of the teleconference at http://acecomm.com or http://www.fulldisclosure.com. A taped replay of the call will be made available from the ACE*COMM Corporate Web Site after 8:30 pm, on Wednesday, February 8, 2006.