Different ontologies used in semantic web services fields raise numerous interoperation and communication problems with respect to service discovery, composition, and execution. The current approaches for ontology mediation often failed due to their lack of sufficient semantic expressiveness and reasoning capability. In this paper1 , we present a novel approach allowing ontologies to provide self-contained semantics for service applications. We show how desired application ontologies can be generated using a new merging algorithm for service ontologies. We also show some experimental results and compare them to the output of the PROMPT ontology merging tool.