ACEC Ace Comm Corp (MM)

ACE*COMM Corporation (NASDAQ:ACEC), a global provider of mobile applications, advanced OSS and revenue management solutions, today announced the signing of a definitive agreement with an investment fund that will provide capital to carry out its research, development and delivery plan for products in the value-added services (VAS) sector of the mobile telecommunications market. The financing includes a senior, secured convertible note bearing interest at prime plus 3% and warrants, providing aggregate gross proceeds to the Company of $4.2 million. Repayment of the note is to be completed in three years. Jim Greenwell, ACE*COMM�s Chief Executive Officer, commented, �This investment provides ACE*COMM with additional capital to continue successfully penetrating the wireless market with our Patrol Suite� products. We have been gaining momentum in this market segment, and the financing will enable us to expand our sales and marketing efforts and execute on our product development plan. �With our recent cost reductions and an improving revenue outlook for our traditional businesses, we are now in a much stronger position to meet our business objectives of investing in the wireless VAS market and returning our core businesses to profitability.� The Company will use the proceeds from the financing primarily to deliver existing applications such as Parent Patrol� and Enterprise Patrol�, which are already sold to mobile operators, to expand this customer base and to develop new mobile applications as part of its Patrol Suite product line. ACE*COMM�s Parent Patrol is a Patrol Suite application that helps parents balance access with safety. Parent Patrol is a policy enforcement tool that lets parents personalize each child�s phone use, independent of the handset choice, for voice, messaging and data services. Parents use a graphical web interface to specify what times of day their children can use their mobile phones, what services are permitted, and what content may be viewed on the mobile phone. Enterprise Patrol allows corporate communications managers to specify and control company-owned mobile phone usage. Delegated access management allows authorized individuals to designate acceptable-use policies and cost controls for individuals or groups. Control can be based on time of day, the type of service used, specific telephone numbers, and classification of appropriate content. 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 revenue-generating mobile applications 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 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, Cisco, General Dynamics, IBM, Level 3 Communications, Marconi, Motorola, Northrop Grumman, Siemens and Verisign. 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, the ACE*COMM logo, Parent Patrol and N*VISION are registered 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.