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We propose an integrated framework that extracts semantics from WSDL descriptions and constructs operation-level ontologies for Web services. The semantics mainly focus on the functional features of Web services, which facilitates the efficient usage of Web services, such as service discovery and service composition. We use service operations as the first class objects to define service functionalities. We first create service ontologies by measuring the relevance between service operations and clustering operations into functionally relevant groups. We then construct the structure of the service ontologies through a hierarchical clustering algorithm.