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This paper addresses the problem of describing and discovering grid services semantically in a heterogeneous grid environment. We propose a matchmaking system that enables semantic descriptions of grid services using WSDL-S. Also, the matchmaking algorithm proposed in our system uses weighted QoS factors to match requests with service advertisements. The semantic similarity between the requested capability and that of the advertised ones is determined using the respective domain ontology. We also propose ontology clustering to group similar categories of advertisements so that service discovery becomes fast and accurate.