Abstract. We present the combined results on electron-pair production in 158 GeV/n Pb-Au ( √ s= 17.2 GeV) collisions taken at the CERN SPS in 1995 and 1996, and give a detailed account of the data analysis. The enhancement over the reference of neutral meson decays amounts to a factor of 2.31±0.19 (stat.) ± 0.55 (syst.) ± 0.69 (decays) for semi-central collisions (28% σ/σgeo) when yields are integrated over m > 200 MeV/c 2 in invariant mass. The measured yield, its stronger-than-linear scaling with N ch , and the dominance of low pair pt strongly suggest an interpretation as thermal radiation from pion annihilation in the hadronic fireball. The shape of the excess centring at m ≈ 500 MeV/c 2 , however, cannot be described without strong medium modifications of the ρ meson. The results are put into perspective by comparison to predictions from Brown-Rho scaling governed by chiral symmetry restoration, and from the spectral-function many-body treatment in which the approach to the phase boundary is less explicit.