The focus of the Asian Applied Computing Conference (AACC) is primarily to bring the research in computer science closer to practical applications. The conference is aimed primarily at topics that have immediate practical benefits. By hosting the conf- ence in the developingnations in Asia we aim to provide a forum for engagingboth the academic and the commercial sectors in that region. The first conference “Information Technology Prospects and Challenges” was held in May 2003 in Kathmandu, Nepal. Thisyear theconferencenamewas changedto “Asian AppliedComputingConference” to reffect both the regional- and the application-oriented nature of the conference. AACC is planned to be a themed conference with a primary focus on a small set of topics although other relevant applied topics will be considered. The theme in AACC 2004 was on the following topics: systems and architectures, mobile and ubiquitous computing, soft computing, man machine interfaces,and innovative applications for the developing world. AACC 2004 attracted 184 paper submissions from around the world, making the reviewing and the selection process tough and time consuming. The selected papers covered a wide range of topics: genetic algorithms and soft computing; scheduling, - timization andconstraintsolving; neural networks and support vector machines;natural language processing and information retrieval; speech and signal processing; networks and mobile computing; parallel, grid and high-performance computing; innovative - plications for the developing world; cryptography and security; and machine lea- ing. Papers were primarily judged on originality, presentation, relevance and quality of work. Papers that had clearly demonstrated results were given preference.