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The paper proposes a novel distributed service discovery protocol for pervasive environments. The protocol is based on the concepts of peer-to-peer caching of service advertisements and group-based intelligent forwarding of service requests. It does not require a service to be registered with a registry or lookup server. Services are described using the Web Ontology Language (OWL). We exploit the semantic class/subClass hierarchy of OWL to describe service groups and use this semantic information to selectively forward service requests. OWL-based service description also enables increased flexibility in service matching. We present simulation results that show that our protocol achieves increased efficiency in discovering services (compared to traditional broadcast-based mechanisms) by efficiently utilizing bandwidth via controlled forwarding of service requests.