Ariston Global LLC announced it completed its acquisition of ACE*COMM Corporation. ACE*COMM will merge with TeleSciences. Together, the joint solutions address concerns of operators and enterprises as they launch new services and adopt new business models to enhance value for their subscribers.

TeleSciences is a leader in delivering innovative software and solutions for Tier 1 carriers. Its focus is on data management, event processing, real-time charging, and business analytics, allowing carriers to assure customer and product performance and profitability. ACE*COMM’s service delivery platform offers policy controls for any network transaction – complemented by a fully-configurable revenue management and service fulfillment OSS infrastructure – with customers in over 70 countries. Additionally, ACE*COMM brings an extensive enterprise OSS customer base across military, federal, state and local governments, and enterprises. The combined company brings together some of the industry’s most powerful and advanced solutions for data management, analytics, controls, and systems to enhance the value of services offered by carriers and large enterprises alike.

“The addition of ACE*COMM’s experience and solution set is both complementary and expansive,” said Kevin Dickens, co-CEO of Ariston Global. “Not only does this acquisition support our overall vision of assembling innovative companies that deliver enhanced value to BSS/OSS solutions, it presents the opportunity to deploy these solutions on a global scale. Additionally, our solution suite’s breadth will expand and now include both service provider and enterprise specific offerings.”

Mark Trudeau, President & CEO of TeleSciences, will lead the new, combined ACE*COMM/ TeleSciences organization. “In one step, we’ve dramatically broadened our offering as well as our geographic footprint,” said Mr. Trudeau. “Our solutions help our customers enable new personalized services, bill and charge for those services, measure the customer experience, and then feed that information back to further improve the service.”

Mr. Trudeau added, “As a single organization, we have greater domain expertise to support the development of innovative solutions and the delivery of related professional and support services. The outlook for our existing customers is very advantageous. While they’ll be assured of ongoing support and delivery of current solutions, they’ll also have access to best-of-breed in data management, analytics and enabling technologies.”

About ACE*COMM

ACE*COMM is an Ariston Global subsidiary company within Ariston Global’s revenue and margin management division that is a global provider of advanced operations support systems and value added services solutions.

The suite of ACE*COMM solutions is made up of advanced operations support systems (OSS) and service delivery software and solutions for telecommunications service providers and enterprises. The firm’s advanced OSS solutions are applicable to a range of legacy and 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 almost 30 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. There will be a continued presence in the existing ACE*COMM headquarters in Gaithersburg, MD, along with its offices in Australia, Canada and the UK.

For more information, please visit their website: http://www.acecomm.com

About TeleSciences, Inc.

TeleSciences, Inc. has continually delivered innovative solutions that gather, manage, and analyze data allowing service providers to optimize customer, product, and network performance while maximizing revenue and profitability.

The current suite of solutions from TeleSciences enable service providers to more quickly assess revenue leakage, address inaccurate or disputed interconnect charges, reduce fraud, provide operational margin analysis, subscriber and handset analytics, and gain deep visibility into usage trends and network engineering performance.

TeleSciences – with solutions deployed throughout the world processing billions of events per day – has a client base of operators and equipment vendors that includes Alcatel-Lucent, AT&T, Bell Canada, Nokia Siemens Networks, Nortel, NuVox, Qwest, SFR, T-Mobile, TELUS, and Verizon.

TeleSciences is headquartered in Mount Laurel, New Jersey with other locations in the US and UK and has been ISO 9001:2000 certified since 1996.

For more information, please visit their website: http://www.telesciences.com

About Ariston Global LLC

Ariston Global’s vision is to create an innovative organization through combinations of acquisition, merger, and organic growth that will provide enabling tools, services and solutions to the communications industry worldwide.

Through thoughtful integration, collaboration, and partnering, the Ariston Global group of companies realizes the benefits of an association with a larger, diverse, and expanding organization – but without compromising each company’s heritage of individual focus and passionate customer orientation.

In addition to TeleSciences and its 10e Solutions business analytics practice, other companies within the Ariston Global group include The Strata Group (www.stratagroup.com), a leading provider of Customer Self-Serve solutions to communications service providers, and Interactive Enterprise (www.interactive-enterprise.com), an innovator in providing service activation and provisioning solutions for broadband operators. Ariston Global recently announced it had combined operations of Strata Group and Interactive Enterprise in order to leverage and share their global sales, technical support, and software development infrastructures and deliver an integrated service management solution to the marketplace.

For more information, please visit their website: http://www.aristonglobal.com

This latest order, coupled with the U. S. Air Force’s worldwide deployment currently scheduled for mid-2007, will bring the total number of U.S. Department of Defense (DoD) lines managed by ACE*COMM’s NetPlus 6 to more than 1.2 million worldwide. NetPlus 6, which utilizes a totally web based, J2EE architecture simplifying configuration management and system administration, currently manages more than 750,000 DoD lines worldwide.

“The easy-to-use browser interface and work flow functionality provide a tremendous advantage to our customers while reducing our administrative costs,” commented a representative for the U. S. Army in Korea. “A key reason for the decision to upgrade to NetPlus 6 was the improved security within the application, which eliminates unsecure protocols no longer approved for DoD networks.”

Jim Greenwell, ACE*COMM’s President, added, “This award is significant for ACE*COMM as it validates our decision to move to an open, industry standard web-based architecture, eliminating proprietary frameworks and protocols. The Army’s decision to upgrade was even more significant since its existing NetPlus System monitors and manages multiple switch types at more than 40 U.S. military installations from a single location.”

About ACE*COMM
ACE*COMM is a global provider of value added services for telecom operators and 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, multimedia, and Internet communications networks. These solutions provide the analytical tools required to extract knowledge from operating networks–knowledge customers use for asset recovery and revenue assurance, 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 4,000 installations in 70 countries worldwide. ACE*COMM-installed products are currently enabling the success of customers and partners such as Alcatel, AT&T, Cisco, General Dynamics, IBM, Level 3 Communications, Marconi, Motorola, Northrop Grumman, Siemens, and Unisys. Headquartered in the Washington, DC area, ACE*COMM has corporate offices in Australia, Canada, China, and the UK. 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 and Parent Patrol are trademarks of ACE*COMM Corporation.

Prior to joining ACE*COMM, Jim was senior vice president at LCC International, a global leader in voice and data design, deployment and management solutions to the wireless telecommunications industry, responsible for the Americas and Asia Pacific Division. While there he successfully reengineered the division back to profitability by divesting certain operations, focusing on selling profitable new business and controlling costs. Prior to heading up the Americas and Asia Pacific Division, Jim served as vice president of sales and account management where he exceeded sales goals and was instrumental in bringing in some of the largest deals in the company’s history.

Prior to LCC, Jim was a managing director at Markowitz and McNaughton, a consulting firm where he engineered a turn-around in profitability and sales, building the company to record revenues while decreasing turnover and increasing profitability. Jim also served as a reengineering/change management consultant with Coopers and Lybrand and was a sales manager for Environmental Tectonics Corporation. His career began as a military intelligence officer in the U.S. Army where he focused on Signals Intelligence. Jim is a graduate of Western Kentucky University and holds an MBA from the Darden School of Business, at the University of Virginia.

“ACE*COMM has a rich tradition and reputation in technology innovation and customer satisfaction,” said Mr. Greenwell. “It is my goal to focus our team on the fundamentals that have made our company a reputable and successful global leader in providing network based solutions to our customers. We have an opportunity to build upon a strong foundation of committed professionals throughout the globe, a diverse and extensive customer base, an excellent brand, and an innovative product focus that will define our company’s success for the future. It is a privilege to assume the role of President and I look forward to working with everyone on the team to achieve our goals.”

About ACE*COMM
ACE*COMM is a global provider of value added services for telecom operators and 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, multimedia, and Internet communications networks. These solutions provide the analytical tools required to extract knowledge from operating networks—knowledge customers use for asset recovery and revenue assurance, 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 4,000 installations in 70 countries worldwide. ACE*COMM-installed products are currently enabling the success of customers and partners such as Alcatel, AT&T, Cisco, General Dynamics, IBM, Level 3 Communications, Marconi, Motorola, Northrop Grumman, Siemens, and Unisys. Headquartered in the Washington, DC area, ACE*COMM has corporate offices in Australia, Canada, China, and the UK. ACE*COMM is a registered ISO 9001 quality standard company. For more information, visit www.acecomm.com.

“Consistent with our preliminary review, first quarter results were clearly affected by some of our customers and prospects who delayed or postponed large projects,” said George T. Jimenez, CEO of ACE*COMM. “While we continue to see the relevant use and value of our traditional products within these customer groups, and anticipate that the second half of the fiscal year will show significant improvement over the first half, we are still faced with uncertainty into the timing of these larger transactions. This dependence on large orders has been one of the continuing challenges of our traditional business model – a situation that we believe will be mitigated as we reposition into the recurring revenue model of a value-added services approach.”

Added Mr. Jimenez: “We continue to make progress on our market penetration efforts around Parent Patrol™, the first of our Patrol suite of value-added services. Most significantly, we signed a contract with VeriSign that will make our Patrol suite available to VeriSign’s service provider customers in a managed services arrangement. With more that 250 mobile service provider customers and over 600 million accessible mobile subscribers1 globally, we believe that VeriSign has the infrastructure and sales organization to help drive the market penetration for these products more quickly.”

“During the quarter, we continued our market research efforts to substantiate the benefits of our Parent Patrol™ suite of value-added services,” concluded Mr. Jimenez. “We commissioned independent survey specialists, ITracks, to poll 1,000 U.S. parents on their attitudes on youth mobile issues. Seventy five percent of the parents polled felt service providers should offer parental controls options for wireless teens, and 59 percent indicated they would provide a cell phone to a child under the age of 12 if their cell phone provider offered easy-to-use parental control capabilities. We were also pleased to be identified as leaders in the parental controls space by third party research firm, iGR.”

The Company reiterated its guidance for the second quarter of fiscal 2007, announced on October 10, 2006, which called for revenue to be in the range of $4.0 million to $5.0 million.

Annual Shareholder’s Meeting
The Company has scheduled its Annual Shareholder’s Meeting for Friday, December 1, 10:00 AM, Eastern Standard Time, at Corporate Headquarters, Gaithersburg, MD.

Earnings Call
ACE*COMM will host an earnings teleconference call this evening, Thursday, October 26, 2006 at 5:30 pm, Eastern Standard Time, to discuss the first quarter results. To participate, please call 866-837-9780. When prompted, enter the ACE*COMM reservation number 986238. 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 Thursday, October 26, 2006.

About ACE*COMM
ACE*COMM is a global provider of network business intelligence and 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, multimedia, and Internet communications networks. These solutions provide the analytical tools required to extract knowledge from operating networks—knowledge customers use for asset recovery and revenue assurance, 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, AT&T, Cisco, General Dynamics, IBM, Level 3 Communications, Marconi, Motorola, Northrop Grumman, Siemens, and Unisys. Headquartered in the Washington, DC area, ACE*COMM has corporate offices in Australia, Canada, China, 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.

ACE*COMM CORPORATION

CONSOLIDATED BALANCE SHEETS

(in thousands except share and per share amounts)

September 30, 2006
June 30,
2006

Assets

Current assets:
Cash and cash equivalents $ 699 $ 946
Accounts receivable, net 9,768 10,981
Inventories, net 799 838
Deferred contract costs 85 18
Prepaid expenses and other 616 571
Total current assets 11,967 13,354
Property and equipment, net 736 787
Goodwill 386 522
Acquired intangibles, net 897 1,041
Other non-current assets 598 657
Total assets $ 14,584 $ 16,361

Liabilities and Stockholders’ Equity

Current liabilities:
Borrowings $ 2,483 $ 2,970
Accounts payable 949 1,114
Accrued expenses 1,568 1,661
Accrued compensation 946 885
Deferred revenue 3,265 3,617
Total current liabilities 9,211 10,247
Long-term notes payable 12 17
Total liabilities 9,223 10,264

Commitments and contingencies

Stockholders’ equity:
Preferred stock, $.01 par value, 5,000,000 shares authorized, none issued and outstanding
– –
Common stock, $.01 par value, 45,000,000 shares authorized, 18,654,083 and 17,788,032 shares issued and outstanding
187 178
Additional paid-in capital 37,225 35,257
Other accumulated comprehensive loss (59) (91)
Accumulated deficit (31,992) (29,247)
Total stockholders’ equity 5,361 6,097

Total liabilities and stockholders’ equity $ 14,584 $ 16,361

ACE*COMM CORPORATION

CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except per share amounts)

For the three months ended
September 30,
2006 2005
(Unaudited) (Unaudited)

Revenue
Licenses and hardware $ 458 $ 3,455
Services 2,564 3,230
Total revenue 3,022 6,685

Cost of licenses and hardware revenue 303 1,070
Cost of services revenue 1,773 1,612
Total cost of revenue 2,076 2,682

Gross profit 946 4,003

Selling, general, and administrative 2,832 2,817
Research and development 780 1,037
Income (loss) from operations (2,666) 149

Interest expense 79 51
Income (loss) before income taxes (2,745) 98
Income tax (benefits) expense – (1)

Net income (loss) $ (2,745) $ 99

Basic net income (loss) per share $ (0.16) $ 0.01

Diluted net income (loss) per share $ (0.16) $ 0.01

Shares used in computing net income (loss) per share:
Basic 17,441 16,741

Diluted 17,441 17,160

“Through some difficult times, John has demonstrated his leadership and professionalism,” said George T. Jimenez, CEO of ACE*COMM. “Over the course of the past year, he has worked diligently to manage our corporate operations and sales functions, and has been a most effective representative of the company’s interests around the world. On behalf of the rest of the management team, I would like to express our appreciation for his contributions and wish him well in his future endeavors.”

Mr. Bennett’s duties will be assumed by other members of the management team, until a replacement is named.

ACE*COMM Management will be holding a conference call on Thursday, October 26, 2006 at 5:30 pm, Eastern Standard Time, to discuss the first quarter results and current corporate activities. To participate, please call 866-837-9780 (within the United States) or 703-639-1418 (outside the United States). When prompted, enter the ACE*COMM reservation number 986238. 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 Thursday, October 26, 2006.

About ACE*COMM
ACE*COMM is a global provider of network business intelligence and 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, multimedia, and Internet communications networks. These solutions provide the analytical tools required for extracting knowledge from operating networks – knowledge customers use for asset recovery and revenue assurance, 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, AT&T, Cisco, General Dynamics, IBM, Level 3 Communications, Marconi, Motorola, Northrop Grumman, Siemens, and Unisys. Headquartered in the Washington, DC area, ACE*COMM has corporate offices in Australia, Canada, China, and the UK. ACE*COMM is an ISO 9001 compliant company. For more information, visit www.acecomm.com.

ACE*COMM and the ACE*COMM logo are registered trademarks, and ACE*COMM Enterprise Patrol is a trademark, of ACE*COMM Corporation.

“In the current telecommunications marketplace, operators such as Vivodi are facing increased competition and an increasingly sophisticated customer base with a growing demand for new service offerings,” said John Bennett, President of ACE*COMM. “With the rapid growth of its customer base and new technology deployments, Vivodi identified the requirement for a robust next generation mediation solution to address its back-office issues and effectively reduce capital and operating cost pressures.”

ACE*COMM is deploying its NV2 solution to fully automate Vivodi’s retail and interconnect billing mediation processes. This will enable Vivodi to continue network expansion and new product deployment, while at the same time expediting the time-to-revenue of new products and services by being able to adapt and evolve their mediation system as required. This provides Vivodi with a competitive advantage over other carriers.

Based on core ACE*COMM technology and expertise, the NV2 product suite enables the flow of information in hyperconvergent environments by removing traditional application barriers that delay or even prevent the incorporation of new products and services. NV2 can acquire data in virtually any format, from any source. It validates, correlates, and transforms the data into the formats required by external applications and networks, and routes it to the appropriate destination based on the business rules defined by the service provider. It controls, moderates, and facilitates the interactive communication between multiple network technologies and the software support systems used in delivering high demand, high ROI services – without abandoning critical legacy network and infrastructure investments.

About Vivodi Telecommunications
Vivodi Telecommunications S.A., is the only alternative Greek operator offering a full compliment of residential, corporate, and carrier services. Vivodi Telecom incorporates leading edge, ‘state-of-the-art’ technology in all its product lines, from fixed Telephony and Internet, to Broadband services.

Current projects include the deployment of a metropolitan fiber network and DSL nodes supporting ADSL2+ technology, to drive Vivodi Telecom’s Triple-Play services. This establishes Vivodi as the only Greek operator to offer high capacity Internet service (up to 24Mbps to the home/office), video on demand, and IPTV, to name but a few.

Vivodi Telecom’s customer-centric objective differentiates our products and has established us as a market leader. Vivodi Telecom’s network comprises a nation-wide and international Points-of-Presence. Continued investments in developing a robust network have resulted in an enviable Quality of Service and piece of mind for our customers.

About ACE*COMM
ACE*COMM is a global provider of network business intelligence and 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, multimedia, and Internet communications networks. These solutions provide the analytical tools required for extracting knowledge from operating networks – knowledge customers use for asset recovery and revenue assurance, 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, AT&T, Cisco, General Dynamics, IBM, Level 3 Communications, Marconi, Motorola, Northrop Grumman, Siemens, and Unisys. Headquartered in the Washington, DC area, ACE*COMM has corporate offices in Australia, Canada, China, and the UK. ACE*COMM is an ISO 9001 compliant company. For more information, visit www.acecomm.com.

ACE*COMM and the ACE*COMM logo are registered trademarks, and ACE*COMM Enterprise Patrol is a trademark, of ACE*COMM Corporation.

1) Business Intelligence in Telecoms
Date: September 21, 2006
Location: Amsterdam, The Netherlands

ACE*COMM will chair an executive roundtable discussion on “Good
Data Governance and Practices for Application Across the
Business.” Additionally, ACE*COMM will present the topic “Creating
standardized interfaces for presenting data that would satisfy the
requirements from internal user groups.”

For more information:

http://www.businessintelligence-events.com/programme.htm

2) IIR Telecoms Market Forecasting
Date: September 25, 2006
Location: Lisbon, Portugal

ACE*COMM will present the topic “Utilizing Business Intelligence
to Evaluate the Success of New Services.”

For more information:

http://www.iir-events.com/IIR%2Dconf/Telecoms/

3) Mobile Youth 2006 Summit
Date: October 20, 2006
Location: London, UK

ACE*COMM will participate on a roundtable panel of leading telecom
and marketing executives to discuss mobile youth issues and
opportunities.

For more information:

http://www.w2forum.com/i/mobileYouth_Summit/

Visit the ACE*COMM Speaker’s Corner Web page for updates on
industry presentations:

http://www.acecomm.com/events/speakerscorner.htm

About ACE*COMM
ACE*COMM is a global provider of network business intelligence and 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, multimedia, and Internet communications networks. These solutions provide the analytical tools required to extract knowledge from operating networks – knowledge customers use for asset recovery and revenue assurance, 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, AT&T, Cisco, General Dynamics, IBM, Level 3 Communications, Marconi, Motorola, Northrop Grumman, Siemens, and Unisys. Headquartered in the Washington, DC area, ACE*COMM has corporate offices in Australia, Canada, China, and the UK. ACE*COMM is an ISO 9001 compliant company. For more information, visit www.acecomm.com.

ACE*COMM and the ACE*COMM logo are registered trademarks of ACE*COMM Corporation.

For the year ended June 30, 2006, the Company recorded revenues of $26.7 million, compared to $20.0 million for fiscal year 2005. The Company had net income and income per fully diluted share of $0.3 million and $0.02, respectively, compared to a net loss and loss per fully diluted share of $6.5 million and $0.44 for fiscal year 2005. Revenues for the fourth quarter 2006 totaled $6.5 million compared to $6.8 million for the same quarter in fiscal year 2005. Net loss for the quarter was $0.5 million, or $0.03 per fully diluted share, compared to net income of $0.3 million, or $0.02 per fully diluted share for the same quarter a year ago.

“The ACE*COMM team performed well during the recently concluded year,” said George T. Jimenez, Chairman and CEO of ACE*COMM. “Last year at this time we outlined the growth strategies – to expand our technology offerings, broaden our market penetration, add major new customers, and more tightly integrate our business across product lines. We are executing on all these fronts today. We have aligned our product focus and investments in technology and marketing, and have produced some of the most promising market opportunities we have experienced in many years.”

Continued Mr. Jimenez: “The fiscal 2006 results demonstrate our progress in transforming our Company from a trusted provider of OSS infrastructure solutions to one that carriers can also tap for high-margin, value-added service applications and network business intelligence solutions. We developed and brought to market a number of new products and capabilities designed to deliver innovative, profit-enhancing solutions to customers, and gained solid market visibility for Parent Patrol(TM) – the first of our new suite of value-added service applications. At the same time we added Tier 1 carriers such as Turktel and the Saudi Telecom Company as customers, and plan to leverage these wins for further NBI and VAS opportunities. In addition, we achieved a significant financial milestone in 2006, increasing annual revenues by 34 percent, and achieving our first profitable fiscal year in five years.”

“While our fiscal year results demonstrated notable improvements, revenues for the fourth quarter reflect short-term delays in booking revenues on a few significant contracts which we now expect to accomplish in the next couple of quarters,” said Steve Delmar, CFO of ACE*COMM. “In addition, our margins for the fourth quarter were negatively impacted by higher cost of sales components due to a higher than normal mix of hardware revenues during the quarter, which increased costs by approximately $700 thousand. We also reduced some staff in locations where shifts in business concentration indicated we move to better align our resources, incurring one-time charges related to those reductions totaling $200 thousand.”

Continued Mr. Delmar: “We are making significant progress on our Tier 1 market penetration efforts relative to Parent Patrol(TM) – an access control application that lets parents manage their children’s mobile phone use. First, we announced that Lucent will use Parent Patrol(TM) technology in its global offering of a parental control solution for mobile operators; and second, that we signed a contract with a Tier 1 North American wireless service provider to roll out Parent Patrol(TM) in one of its regional divisions this fall. We are continuing discussions with large wireless service providers around the world for this technology.”

Concluded Mr. Jimenez: “The year ahead, I believe, will be one of building on the progress achieved this year. We believe our market leading solutions for value-added services, business intelligence, and advanced OSS are well-positioned in their respective markets. We also believe we are on track to achieve further solid revenue growth and improve our operating margins over the next few years.”

ACE*COMM will host an earnings teleconference call this evening, September 13, 2006 at 5:30 pm, Eastern Standard Time, to discuss the fourth quarter fiscal year 2006 results. To participate, please call 866-219-5268. When prompted, enter the ACE*COMM reservation number 966674. 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 September 13, 2006.

About ACE*COMM
ACE*COMM is a global provider of network business intelligence and 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, multimedia, and Internet communications networks. These solutions provide the analytical tools required to extract knowledge from operating networks–knowledge customers use for asset recovery and revenue assurance, 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, AT&T, Cisco, General Dynamics, IBM, Level 3 Communications, Marconi, Motorola, Northrop Grumman, Siemens, and Unisys. Headquartered in the Washington, DC area, ACE*COMM has corporate offices in Australia, Canada, China, and the UK. 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 and Parent Patrol are trademarks of ACE*COMM Corporation.

“From conversations with multiple mobile operators, we understand that the need to provide a solution that incorporates parental controls is one of the most pressing product strategies for wireless service providers today,” said Iain Gillott, wireless analyst at iGR and acknowledged mobile industry authority. “Our data clearly shows that there is a significant untapped mobile market with children, but the mobile operators must be responsible in addressing this opportunity. In the competitive wireless marketplace, operators need to provide the appropriate parental protection and management capabilities in order to responsibly target younger subscribers with parents’ blessings.”

According to the iGR report, “ACE*COMM, a leader in the parental control industry, is offering Parent Patrol and is a good example of a network-based product that has met with wide acceptance and a high level of interest from the mobile operators.”

iGR characterizes the market trend for parental controls as not being limited to Tier 1 operators, indicating that many Tier 2 and 3 operators are planning services that offer parents controls over their child’s cell phone usage. “It is not a question of if an operator will offer parental controls, but when,” said Mr. Gillott. “Carriers are already procuring these solutions. We can expect to see rollouts in this calendar year.”

“iGR’s research provides further confirmation that our Parent Patrol(TM) approach is right on track,” said George Jimenez, CEO of ACE*COMM. “Parent Patrol(TM) is not an expensive handset-based solution, nor does it require parents to sign up for a whole new service that includes proprietary handsets. Parent Patrol(TM) is a flexible network-based solution that can be added onto an existing family plan, lets parents apply restrictions on a per-child basis, and can include filtering to prevent kid’s access to communications and content that may be inappropriate. It is easy to market, can be offered to existing or new subscribers, encourages parents to bring younger children into family plans, and gives the service provider a good corporate citizen stamp of approval.” For more information on Parent Patrol(TM), visit: www.parent-patrol.com.

About Iain Gillott
Iain Gillott, the founder and president of iGR, is an acknowledged wireless and mobile industry authority. He is a frequent speaker on industry issues and trends and has addressed audiences around the world and at many of the leading industry trade shows, including CES, SuperComm, WiMAX World, BREW, 3G Americas, and CTIA. In addition, he is frequently quoted in various publications, including Investors Business Daily, the Wall Street Journal, Telephony, RCR, Newsweek International, Wireless Week, and Business Week and has appeared on CNN, CNBC, and TechTV.

About iGR
iGR is a market strategy consultancy focused on the wireless and mobile communications industry. Founded by Iain Gillott, one of the wireless industry’s leading analysts, iGR provides research and analysis on the impact new wireless and mobile technologies will have on the industry, on vendors’ competitive positioning, and on clients’ strategic business plans. iGR clients typically include service providers, equipment vendors, mobile Internet software providers, wireless ASPs, mobile commerce vendors, and billing, provisioning, and back office solution providers. iGR offers a range of services to help telecom companies improve their position in the marketplace, clearly define their future direction, and, ultimately, improve their bottom line. A more complete profile of the company can be found at www.iGR-Inc.com.

About ACE*COMM
ACE*COMM is a global provider of network business intelligence and 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, multimedia, and Internet communications networks. These solutions provide the analytical tools required to extract knowledge from operating networks – knowledge customers use for asset recovery and revenue assurance, 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, AT&T, Cisco, General Dynamics, IBM, Level 3 Communications, Marconi, Motorola, Northrop Grumman, Siemens, and Unisys. Headquartered in the Washington, DC area, ACE*COMM has corporate offices in Australia, Canada, China, and the UK. ACE*COMM is a registered ISO 9001 quality standard company. For more information, visit www.acecomm.com.

ACE*COMM and the ACE*COMM logo are registered trademarks, and Parent Patrol is a trademark of ACE*COMM Corporation.

They include:
- The county government for one of the most populous counties on the US west coast
- A major western municipal utility supplying basic utilities to millions of residents
- A congressional agency encompassing thousands of employees in multiple locations

These new contracts are an illustration of the Company’s strategy to aggressively penetrate the civilian government sector with the NetPlus(R) solution. ACE*COMM now has a total of nine government customers – encompassing state, local and related municipal governments – who use NetPlus(R) to manage internal communications systems and data.

“NetPlus(R) provides our customers with the software tools and best-practice disciplines to automate network operations and management functions to improve communications and control service costs across the enterprise,” said John Bennett, President of ACE*COMM. “Municipal and federal government organizations typically are seeking to enhance and improve how they manage their telecommunications inventories, business processes, and related expenses. They need to leverage and integrate with existing telecom and network infrastructure, demonstrate a compelling return-on-investment (ROI), and continuously incorporate new technologies to maximize efficiencies and reduce costs. NetPlus(R) delivers the software tools to consolidate and improve all organizational communications systems and technologies.”

NetPlus(R) provides an enterprise-level view of communications and data systems. It improves information flow inside and outside of the organization, and allows for more efficient operations by automating service administration, tracking network connections, detecting system errors and malfunctions, controlling network inventory assignments and configuration, monitoring traffic, and performing billing functions, all within a secure network environment.

About ACE*COMM
ACE*COMM is a global provider of value-added services, network business intelligence and 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, multimedia, and Internet communications networks. These solutions provide the analytical tools required to extract knowledge from operating networks – knowledge customers use for asset recovery and revenue assurance, 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, AT&T, Cisco, General Dynamics, IBM, Level 3 Communications, Marconi, Motorola, Northrop Grumman, Siemens, and Unisys. Headquartered in the Washington, DC area, ACE*COMM has corporate offices in Australia, Canada, China, and the UK. ACE*COMM is a registered ISO 9001 quality standard company. For more information, visit www.acecomm.com.

ACE*COMM, NetPlus, and the ACE*COMM logo are registered trademarks of ACE*COMM Corporation.