This paper introduces a new similarity measure based on edge counting in a taxonomy like WorldNet or Ontology. Measurement of similarity between text segments or concepts is very useful for many applications like information retrieval, ontology matching, text mining, and question answering and so on. Several measures have been developed for measuring similarity between two concepts: out of these we see that the measure given by Wu and Palmer [1] is simple, and gives good performance. Our measure is based on their measure but strengthens it. Wu and Palmer [1] measure has a disadvantage that it does not consider how far the concepts are semantically. In our measure we include the shortest path between the concepts and the depth of whole taxonomy together with the distances used in Wu and Palmer [1]. Also the measure has following disadvantage i.e. in some situations, the similarity of two elements of an IS-A ontology contained in the neighborhood exceeds the similarity value of two elements contained in the same hierarchy. Our measure introduces a penalization factor for this case based upon shortest length between the concepts and depth of whole taxonomy.