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Semantic Web Services (SWS) intend to enhance interoperability and encapsulate domain knowledge via semantic descriptions. This paper claims that service composition in a service-oriented computing paradigm is an AI planning problem. We present the Event Calculus (EC) - a well-known action theory, and further discuss the mechanisms of using the formalism for representing and reasoning service capabilities. We describe an architecture for automatic workflow generation in which an EC-based planner builds workflows by reasoning against distributed pools of SWS.