This book constitutes the refereed proceedings of the Second Asian Applied Computing Conference, AACC 2004, held in Kathmandu, Nepal in October 2004.The 42 revised full papers presented were carefully reviewed and selected from 184 submissions. The papers are organized in topical sections on machine learning and soft computing; scheduling, optimization, and constraint solving; 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 applicationsfor the developing world; and cryptography and security.