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EXHIBIT 99.1

                    SEPARATION AGREEMENT AND GENERAL RELEASE

         This Separation Agreement and General Release (hereinafter
"Agreement") is hereby entered into January 2, 1998, effective as of January 1,
1998, between ACE*COMM Corporation (hereinafter "the Company") and James M.
Moore (hereinafter "Mr. Moore"), who are collectively referred to herein as the
"Parties."

         WHEREAS, Mr. Moore has served as Vice President - Marketing of the 
Company; and

         WHEREAS, for personal reasons, Mr. Moore is resigning as officer of the
Company; and

         WHEREAS, the Parties desire to enter into this Agreement on the date
hereof to set forth their agreement with respect to Mr. Moore's resignation and
certain other matters in connection therewith; and

         WHEREAS, the Parties desire that this Agreement supersede any
agreement, arrangement or understanding with respect to Mr.  Moore's terms of
employment by the Company to the extent set forth herein.

         NOW, THEREFORE, In consideration of the mutual promises contained
herein, and other good and valuable consideration as hereinafter recited, the
receipt and adequacy of which is hereby acknowledged, the Parties, intending to
be legally bound, agree as follows:

1.  Resignation; Termination of employment.  The Company and Mr. Moore have
    agreed that, effective immediately, he hereby tenders his resignation as an
    officer of the Company, and that he will remain as an active status
    employee of the Company until May 30, 1998 (or such earlier time as he
    breaches a term of this Agreement), whereupon his employment with the
    Company shall terminate.

2.  Special Projects.  During the balance of the term of his employment, Mr.
    Moore shall perform such special projects as may be assigned to him from
    time to time by the Chief Executive Officer of the Company.

3.  Non-competition, non-solicitation and confidentiality.  Mr. Moore agrees
    that, for a period of three (3) years from the date of this Agreement, he
    will not, either within or without the United States, directly or
    indirectly, as a stockholder, partner, investor, director, officer,
    employee, consultant, contractor, agent or in any other capacity, engage
    any business that is in competition with the business presently conducted
    by the Company (the "Business"), provided that the foregoing shall not
    prohibit Mr. Moore from owning beneficially less than 5% of the outstanding
    stock of any class of



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    stock of a corporation the securities of which are regularly traded or
    quoted on a national securities exchange or on an inter-dealer quotation
    system.  Specifically, but without limiting the generality of the
    foregoing, Mr. Moore shall not directly or indirectly:

         (a)  Contract with, represent, solicit business or engage in the
         Business to develop, market or sell billing data collection or network
         management systems;

         (b)  Solicit business or in any other way interfere with or disrupt
         the Company's business relationships with any persons in the Business;

         (c)  Solicit, hire, contract with or enter into any business dealings
         with, entice or aid, or cooperate with others in soliciting or
         enticing any current or future employees of the Company to leave the
         Company and join any other company in the Business;

         (d)  Divulge any confidential information regarding the business to
         anyone not connected with the Company;

         (e)  "indirect" competition shall include any competition undertaken
         through an entity owned in whole or in part by Mr.  Moore or any agent
         or affiliate thereof.

    Mr. Moore shall at all times hold in confidence any and all
    confidential information that may have come into his possession or within
    his knowledge concerning research activities, products and services offered
    or being considered, mergers and other major corporate transactions being
    considered, inventions, innovations, designs, ideas, plans, trade secrets,
    proprietary information, advertising, distribution and sales methods and
    systems, customer lists, and relationships between, or information about,
    the Company and its employees, consultants, dealers, distributors,
    customers and others who have had or will have business dealings with the
    Company ("Confidential Information").  Mr. Moore acknowledges that such
    Confidential Information is a valuable and unique asset and shall not
    disclose any such Confidential Information directly or indirectly unless
    such information has become generally available to the public other than as
    a result of a breach of contract or fiduciary duty or unless required to do
    so by court order.

    Mr. Moore acknowledges that there is no adequate remedy at law for a
    breach of this Paragraph 3 and that, in the event of such breach, or
    attempted breach, the Company shall be entitled to injunctive or other
    equitable relief to prevent any such breach, attempted breach or continuing
    breach, without prejudice to any other remedies for damages or otherwise.
    Mr. Moore agrees that the covenants in this Paragraph are separate and
    reasonable in  their scope and duration and that he shall not raise any
    issue of reasonableness as a defense in any proceeding to enforce this
    covenant.  Notwithstanding the foregoing, should any court determine that
    this Paragraph shall be unenforceable with respect to scope, duration or
    geographic area, the Parties agree


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    that such court shall be empowered to substitute, to the extent
    enforceable, provisions similar hereto or other provisions so as to provide
    to the Company, to the fullest extent permitted by applicable law, the
    benefits intended by this Agreement.  The validity, legality or
    enforceability of any remaining provisions of this Agreement shall not be
    affected by any such modification.

4.  Salary and loan forgiveness.  As consideration for his continued employment
    and the agreements in Paragraph 3, the Company agrees (i) to continue to
    pay Mr. Moore through the date of termination of his employment his salary
    at the rate in effect on the date of this Agreement, on a bi-weekly basis,
    and (ii) to forgive on each of the next three anniversaries of the date of
    this Agreement repayment of one third of the outstanding principal and
    interest of that certain Note dated June 5, 1997 in the principal amount of
    $133,000 (the "Note"), subject to Mr. Moore's continuing compliance with
    the terms and conditions of this Agreement.  In the event that Mr. Moore
    breaches one or more of the provisions of this Agreement, without limiting
    the Company's other remedies, including any right to damages, the
    unforgiven amounts under the Note shall remain due and payable in full in
    accordance with the terms of the Note.

    Mr. Moore will have no other benefits of employment, including
    compensation, access to premises, use of equipment and contact with
    suppliers, employees and customers, except to the extent otherwise
    expressly set forth herein.  Mr. Moore agrees that, but for this Agreement,
    he is not otherwise entitled to the above-described consideration from the
    Company.

5.  Stock options.  Attached as Exhibit A is an Amended and Restated Stock
    Option Agreement dated as of August 14, 1996 exercisable for 63,000 shares
    and as Exhibit B, an Amended and Restated Stock Option Agreement dated as
    of April 30, 1997 exercisable for 4,500 shares (together, these option
    agreements are referred to as the "Option Agreements").  The Option
    Agreements shall become exercisable in full on May 14, 1998.

    For purposes of Section 4.1 of the Option Agreements, Mr. Moore will
    be deemed to be employed by the Company until the earlier of May 30, 1998,
    or such earlier time, if any, as he breaches a term of this Agreement.  The
    Option Agreements are subject to the terms of the Company's Amended and
    Restated Omnibus Stock Plan, as amended from time to time, (the "Plan")
    and, to the extent the terms of the Option Agreements are inconsistent with
    the terms of the Plan, the terms of the Plan shall prevail as, interpreted
    in good faith by the Board of Directors of the Company.  Section 5.3 of the
    Option Agreements is hereby deleted.  The Option Agreements shall be
    nontransferable otherwise than by will or the laws of descent and
    distribution.  Until the Option Agreements are terminated (which shall
    occur no later than May 30, 1998), in the event of a change of control of
    the Company, the options granted thereunder shall be treated in
    substantially the same manner as those of other officers and directors of
    the Company.


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    The Parties agree that Mr. Moore is not entitled to any other stock options
    and that any agreements with respect to stock options other than the Option
    Agreements hereby are terminated and are superseded by the terms of this
    Agreement.  The Option Agreements shall otherwise continue in full force
    and effect in accordance with their terms except to the extent otherwise
    modified pursuant to the terms of this Agreement.

6.  Taxes.  Mr. Moore agrees that he is solely responsible for any and all
    taxes on payments or other compensation described herein, subject to any
    required withholding by the Company, as to which Mr. Moore hereby consents.
    Mr. Moore further agrees to indemnify and hold harmless the Company from
    any and all costs, expenses, including but not limited to, reasonable
    attorneys' fees, judgments, liabilities, tax liabilities or penalties,
    interest, claims, payment of moneys, demands, losses, damages, and
    penalties, except for the Company's share of FICA payments, which the
    Company may hereafter sustain, incur or be required to pay as a consequence
    of, for or by reason of, resulting from, arising out of, or relating in any
    way to this payment to Mr. Moore.  While the payments made herewith are
    intended by the parties to be other than back pay, Mr. Moore understands
    and acknowledges that the Company makes no representations to him regarding
    the income tax treatment or consequences of any consideration paid in
    connection herewith.

7.  Health, life and disability insurance.  The Company further agrees to
    provide Mr. Moore and his dependents continuing coverage under the
    Company's health, life and disability policies at his current level of
    benefits until May 30, 1998, to the extent permitted under these policies
    and, thereafter, only to the extent expressly required under the
    Consolidated Omnibus Budget Reconciliation Act of 1985 (COBRA), as amended.
    Mr. Moore recognizes that for purposes of the continuation coverage
    requirements of group health plans under and the group health provisions of
    the Maryland Annotated Code, a "qualifying event" and "applicable change in
    status" occurs at the earlier of May 30, 1998 or the date that Mr. Moore is
    earlier terminated as an employee of the Company.

8.  Surrender of Company property and no authority.  Mr. Moore agrees that upon
    the termination of his employment with the Company, he will surrender to
    the Company every item and every document that came into Mr. Moore's
    possession in the course of his employment at the Company or that is the
    Company's property (including but not limited to keys, records, computers,
    peripherals, computer files and disks, notes, memoranda, models, inventory
    and equipment) or contains Company information, in whatever form.  All of
    these materials are the sole and absolute property of the Company.  In
    addition, Mr. Moore shall not represent to any third party that he is an
    employee or agent of the Company and he acknowledges that as of the date
    hereof, he has no authority to, and will not attempt to, legally bind or
    otherwise obligate the Company.


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9.  References.  All reference requests from Mr. Moore's prospective employers
    shall be made in writing addressed to the attention of George Jimenez, and
    shall include a written authorization signed by Mr. Moore for the release
    of the information.  The Company will provide to prospective employers the
    following information:  Mr.  Moore's dates of employment; Mr. Moore's job
    title; and Mr. Moore's last annual compensation.

10. Release of the Company.  Mr. Moore agrees that, in consideration of the
    payments and consideration described above, on behalf of himself and anyone
    claiming through him, he will, and hereby does, forever and irrevocably,
    release and discharge the Company, its officers, directors, stockholders,
    employees, agents, affiliates, predecessors, purchasers, assigns,
    representatives, successors, successors in interest, and customers from any
    and all grievances, claims, demands, debts, defenses, actions or causes of
    action, obligations, contracts, promises, damages, judgments, expenses, and
    liabilities, known or unknown, whatsoever, which he now has, has had, or
    may have, whether the same be at law, in equity, or mixed, in any way
    arising from or relating to any act, occurrence, or transaction before the
    date of this Agreement, including without limitation his anticipated
    separation of employment.  This is a General Release.  Mr. Moore expressly
    acknowledges that this General Release includes, but is not limited to, Mr.
    Moore's intent to release the Company from any claim relating to his
    employment at the Company, including, but not limited to, tort and contract
    claims, arbitration claims, statutory claims, claims under any state or
    federal wage and hour law or wage collection law, and claims of age, race,
    color, sex, religion, handicap, disability, national origin, ancestry,
    citizenship, marital status, retaliation, or any other claim of employment
    discrimination under the Age Discrimination In Employment Act (29 U.S.C.
    Sections 626 et seq., "ADEA"), Title VII of the Civil Rights Acts of 1964
    and 1991 as amended (42 U.S.C. Sections 2000e et seq.), the Moore
    Retirement Income Security Act (29 U.S.C. Sections 1001 et seq.), the
    Consolidated Omnibus Budget Reconciliation Act of 1985 (29 U.S.C. Sections
    1161 et seq.), the Americans With Disabilities Act (42 U.S.C.  Sections
    12101 et seq.), the Rehabilitation Act of 1973 (29 U.S.C. Sections 701 et
    seq.), the Family and Medical Leave Act (29 U.S.C. Sections 2601 et seq.),
    the Fair Labor Standards Act (29 U.S.C. Sections 201 et seq.), the
    Annotated Code of Maryland, and any other law prohibiting employment
    discrimination.

    Mr. Moore represents that he has not heretofore assigned or
    transferred, or purported to assign or transfer, to any person or entity,
    any claim against the Company or portion thereof or interest therein, and
    that any such claim is not assignable or transferable.

11. Agreement not to sue.  Mr. Moore agrees not to sue the Company or to join
    in any lawsuit against the Company, or any other person or entity specified
    in Paragraph 10, concerning any matter which arose prior to the date of
    this Agreement.  Mr. Moore further agrees and covenants not to make, file,
    assist or encourage others in making or filing any lawsuits, complaints, or
    other proceedings, including but not limited to any


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<PAGE>   6
    suits in the local or state courts, the United States Federal District
    Courts or any other court, against the Company, or any other person or
    entity specified in Paragraph 10.

12. No wrongdoing.  Mr. Moore agrees that the consideration set forth herein is
    not to be construed as an admission of any wrongdoing or liability on the
    part of the Company under any statute or otherwise, but that on the
    contrary, any such wrongdoing or liability is expressly denied by the
    Parties.

13. No prevailing party.  Mr. Moore agrees that neither this Agreement nor the
    negotiations in pursuance thereof shall be construed or interpreted to
    render Mr. Moore a prevailing party for any reason, including but not
    limited to an award of attorney's fees or costs under any statute or
    otherwise.

14. Confidentiality.  Mr. Moore agrees that the terms, provisions, and
    conditions of this Agreement and the negotiations in pursuance thereof are
    strictly confidential, that he may not disclose them to any person or
    entity and that the Company will not disclose them except as required by
    law, provided that Mr. Moore agrees that he will provide, and the Company
    may provide, a copy of Paragraph 3 to any future employer.  Mr. Moore
    further agrees that a violation of the terms of this Paragraph regarding
    the confidentiality of this Agreement is a material breach of this
    Agreement, entitling the Company to recover any payments made to Mr. Moore
    under this Agreement, to stop any payments or obligations owing under this
    Agreement, to recover the costs and attorneys' fees the Company incurs to
    recover under this paragraph and to obtain injunctive, monetary or other
    relief permitted by law.

15. No comment on Company.  Mr. Moore agrees that after the date of the
    execution of this Agreement, he will not, either by conversation or any
    other oral expression, by letter or any other written expression, or by any
    other deed or act of communication (including, but not limited to allowing
    himself to be referred to or quoted as the source of information) to the
    public or to any individual person or entity or groups of persons or
    entities, specifically including but not limited to such persons or
    entities as are, have been, or may be, employees, customers, or business
    associates of the Company, disparage, criticize, condemn or impugn the
    reputation or character of the Company or any of the actions or writings,
    specifically including but not limited to any of the policies, practices,
    procedures or advertisements, which are, have been or may be taken or
    produced by the Company or its predecessors, subsidiaries, parents,
    successors, successors in interest, assigns, trustees, officers, directors,
    agents, attorneys, servants or employees on behalf of the Company.  Mr.
    Moore understands that by agreeing to the provisions of this Paragraph, he
    is waiving rights guaranteed by the First Amendment of the United States
    Constitution and State counterparts.  Mr. Moore further agrees that a
    violation of the terms of this Paragraph is a material breach of this
    Agreement, entitling the Company to recover any payments made to Mr. Moore
    under this Agreement, to stop any payments, benefits or obligations owing
    under this Agreement, to recover the costs and attorneys' fees the Company
    incurs to


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    recover under this Paragraph and to obtain injunctive, monetary or other
    relief permitted by law.

16. Binding on successors and permitted assigns; amendments.  The Parties
    further agree that this Agreement shall be binding upon and inure to the
    benefit of the personal representatives, heirs, executors, and
    administrators of Mr. Moore (who may not assign this Agreement) and the
    assigns, affiliates, successors, officers, purchasers, agents,
    representatives, directors and employees of the Company, that this
    Agreement contains and comprises the entire agreement and understanding of
    the Parties, that there are no additional promises or terms of the
    Agreement among the Parties other than those contained herein, and that
    this Agreement shall not be modified except in writing signed by each of
    the Parties hereto.

17. Governing law.  The Parties further agree that this Agreement and the
    rights and obligations hereunder shall be governed by, and construed in
    accordance with, the laws of the State of Maryland regardless of any
    principles of conflicts of laws or choice of laws of any jurisdiction.  The
    state courts of the State of Maryland and, if the jurisdictional
    prerequisites exist at the time, the United States District Court for the
    District of Maryland, shall have sole and exclusive jurisdiction to hear
    and determine any dispute or controversy arising under or concerning this
    Agreement.  Mr. Moore consents to the jurisdiction of such courts in any
    such suit, action or proceeding and waives any objection he may have to
    venue in such courts.

18. Interpretation.  If any terms of the above provisions of this Agreement are
    found null, void or inoperative, for any reason, the remaining provisions
    will remain in full force and effect.  The language of all parts of this
    Agreement shall in all cases be construed as a whole, according to its fair
    meaning, and not strictly for or against either of the Parties.

19. Cost of enforcement.  If the Company seeks a restraining order, injunction
    or any other relief, including but not limited to damages, against Mr.
    Moore as a result of his breach of any provision of this Agreement, and
    recovers any such relief, Mr. Moore shall reimburse the Company for the
    attorney's fees, costs and other expenses it incurred obtaining that relief
    (even if other relief were denied).

20. Understanding of agreement.  Mr. Moore represents that he has read this
    Agreement, that he understands all of its terms, that he had a reasonable
    amount of time to consider his decision to sign it, that he had the
    opportunity to discuss the terms of this Agreement with an attorney of his
    choice, that in executing this Agreement he does not rely and has not
    relied upon any representation or statements made by any of the Company's
    agents, representatives, or attorneys with regard to the subject matter,
    basis, or effect of the Agreement, and that he enters into this Agreement
    voluntarily, of his own free will and with knowledge of its meaning and
    effect.


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21. Consideration of agreement.  Mr. Moore understands that he has up to
    twenty-two (22) days from the date of his receipt of this Agreement, which
    was December 19, 1997, to consider his decision to sign it.  By signing
    this Agreement, Mr. Moore expressly acknowledges that his decision to sign
    this Agreement was knowing and voluntary and of his own free will.

22. Limited right to revoke.  Mr. Moore acknowledges that he may revoke this
    Agreement only as it pertains to claims under the ADEA for up to and
    including seven (7) days after his execution of this Agreement, and that
    the aspects of this Agreement regarding his release of claims under the
    ADEA shall not become effective until the expiration of seven (7) days from
    the date of his execution of this Agreement.  This provision regarding
    revocation shall have no effect on the validity and enforceability of any
    other term, condition or provision of this Agreement, which becomes
    effective when signed by the Parties.

23. Counsel.  THE COMPANY HEREBY ADVISES MR. MOORE TO CONSULT WITH AN ATTORNEY
    PRIOR TO EXECUTING THIS AGREEMENT.

24. Headings.  All Paragraph headings are for convenience only.

25. Entire agreement.  Mr. Moore acknowledges and agrees that payments made or
    to be made and benefits provided or to be provided under this Agreement are
    in lieu of any and all compensation and benefits of any nature which may
    otherwise have been due to Mr.  Moore under the terms of any agreement,
    arrangement or understanding (whether written or oral) binding upon the
    Company and Mr.  Moore.

IN WITNESS WHEREOF, the parties have duly executed this Agreement as of the day
and year first above written.

----------------------------      ---------------
James M. Moore                             Date

ACE*COMM CORPORATION

By:
   ----------------------------   -----------------
                                  Date



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