EXHIBIT 99.1

Confidential

# MDSI MOBILE DATA
SOLUTIONS INC.

# AUDIT COMMITTEE
TERMS OF REFERENCE

# AUTHORITY

Primary responsibility for the
Companys financial reporting, accounting systems and internal controls is vested in
senior management and is overseen by the Board of Directors. The Audit Committee is a
standing committee of the Board established to assist it in fulfilling its
responsibilities in this regard.

The Audit Committee shall have
unrestricted access to Company personnel and documents and will be provided with the
resources necessary to carry out its responsibilities. The Audit Committee shall have the
authority and funding (SOX 301) to engage independent counsel and other advisers, as it
determines necessary to carry out its duties.

# STRUCTURE

| |  | The Audit Committee shall be composed of a minimum of three directors, each of whom shall:
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| |  |  | be independent within the meaning of all applicable securities laws and the
rules and regulations of all exchanges and quotation systems on which the Companys
securities are listed or quoted for trading (collectively, the Applicable Securities
Laws), except that the Audit Committee may include one or more members that are not
independent, if and only to the extent permitted by all Applicable Securities
Laws;
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| |  |  | not have participated in the preparation of the financial statements of the Company or any
current subsidiary of the Company at any time during the past three years; and
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| |  |  | meet the financial literacy requirements of Applicable Securities Laws.
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| |  | In
addition, at least one member of the Audit Committee shall:
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| |  |  | have past employment experience in finance or accounting, requisite professional
certification in accounting, or any other comparable experience or background which
results in the individuals financial sophistication, including being or having been
a chief executive officer, chief financial officer or other senior officer with financial
oversight responsibilities, and
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| |  |  | be considered a financial expert and disclosed in accordance with Applicable
Securities Laws (SOX 407).
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| |  | Members
shall serve two-year terms and may serve consecutive terms.
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| |  | The chairperson shall be an outside director appointed by the Board for a one-year term,
and may serve any number of consecutive terms.
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|Audit Committee
Terms of Reference
Revised: Mar 22, 2005 | Page 1 of 6 Pages
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Confidential

| |  | The chairperson shall, in consultation with management and the external auditors,
establish the agenda for the meetings and ensure that properly prepared agenda materials
are circulated to members with sufficient time for study prior to the meeting.
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| |  | The Audit Committee shall have direct communication with each of management and the
external auditors (TSX), meet at least four times per year and may call special meetings
as required. A quorum at meetings of the Audit Committee shall be three members provided
the majority of the quorum are independent directors.
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| |  | The minutes of the Audit Committee meetings shall accurately record the decisions reached
and shall be distributed to all directors with copies to the chief financial officer, and
the external auditors.
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# RESPONSIBILITIES

# Supervision of External
Auditors

The Audit Committee shall be directly
responsible for the following tasks:

| |  | Select the firm of external auditors to be proposed for election as the external auditors
of the Company, oversee the work of the Companys external auditors, and subject to
relevant corporate and securities law requirements, fix the compensation of the external
auditors. The independent auditors will report directly to the Audit Committee and the
Audit Committee will oversee the resolution of disagreements between management and the
external auditor if they arise (SOX 301).
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| |  | Pre-approve all audit services and all non-audit services proposed to be undertaken by the
Companys external auditors. The Audit Committee is permitted to delegate the
authority to grant pre-approvals to one or more designated members of the Audit Committee
who are independent directors of the Company, provided that the decisions of any such
member or members are presented to the full committee at each of its scheduled meetings.
The external auditors shall not engage in any audit services or non-audit services unless
pre-approved in accordance with this paragraph or exempted from the pre-approval
requirements of all Applicable Securities Laws.
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| |  | Obtain from the external auditors a formal written statement, in accordance with
Applicable Securities Laws, delineating all relationships between the auditor and the
Company, actively engage in a dialogue with the external auditors with respect to any
disclosed relationships or services that may impact the objectivity and independence of
the auditor and take, or recommend that the full Board take, appropriate action to oversee
the independence of the external auditors.
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| |  | Hold
discussions with the external auditors covering
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| |  |  | critical
accounting policies and estimates;
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| |  |  | alternative treatments of financial information under generally accepted accounting
principles discussed with management together with preferred treatment of the auditor; and
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|Audit Committee
Terms of Reference
Revised: Mar 22, 2005 | Page 2 of 6 Pages
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Confidential

| |  |  | other material communication between management and the independent auditor including but
not limited to the management letter and schedule of unadjusted differences (SOX 204).
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# Annual Financial
Information

| |  | Review the annual financial statements and recommend their approval to the Board, after
discussing matters such as the selection of accounting policies, major accounting
judgements, accruals and estimates with management.
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| |  | Review
the other financial information included in the annual report.
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| |  | Review
the annual report under Applicable Securities Laws.
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| |  | Review
all financial news releases.
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| |  | Review
the Management Discussions and Analysis (MD&A).
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| |  | Review
the planning and results of the external audit, including:
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| |  |  | the
auditor's engagement letter;
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| |  |  | the
reasonableness of the estimated audit fees;
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| |  |  | the scope of the audit, including materiality, locations to be visited, audit reports
required, areas of audit risk, timetable, deadlines and coordination with internal audit;
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| |  |  | the
post-audit management letter together with management's response;
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| |  |  | the
form of the audit report;
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| |  |  | any
 other  related  audit  engagements  (e.g.,  audit of the  company           pension
plan);
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| |  |  | reviewing
 management's  certifications  over  internal  control  over           financial
reporting and fraud;
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| |  |  | non-audit
services performed by the auditor;
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| |  |  | assessing
the auditor's performance;
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| |  |  | recommending
the auditor for appointment by the Board; and
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| |  |  | meeting privately with the auditors to discuss pertinent matters, including the quality of
accounting personnel.
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|Audit Committee
Terms of Reference
Revised: Mar 22, 2005 | Page 3 of 6 Pages
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Confidential

# Interim Financial
Statements

| |  | Obtain reasonable assurance on the process for preparing reliable quarterly interim
financial statements from discussions with management and, where appropriate, reports from
the external and internal auditors.
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| |  | Review and engage the external auditors to review, as required under Applicable Securities
Laws, the quarterly interim financial statements.
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| |  | Review and obtain reasonable assurance from management about the process for ensuring the
reliability of other public disclosure documents that contain audited and unaudited
financial information.
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| |  | Reviewing managements certifications over internal control over financial reporting
and fraud.
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# Accounting System and
Internal Controls

| |  | Obtain reasonable assurance from discussions with and/or reports from management, and
reports from external and internal auditors that the Companys accounting systems are
reliable and that the prescribed internal controls are operating effectively (this is
particularly important where the Company is dependent on complex EDP systems).
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| |  | Direct
the auditorsexaminations to particular areas.
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| |  | Request the auditors to undertake special examinations (e.g., review compliance with
conflict of interest policies).
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| |  | Review control weaknesses identified by the external and internal auditors, together with
managements response.
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| |  | Review the appointments of the chief financial officer and key financial executives.
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| |  | Review
accounting and financial human resources and succession planning within the corporation.
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| |  | Establish procedures for the receipt, retention, and treatment of complaints received by
the Company regarding accounting, internal accounting controls, or auditing matters,
including the confidential, anonymous submission by employees of the Company of concerns
regarding questionable accounting or auditing matters.
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# Internal Audit

| |  | Review the terms of reference of the internal audit function and the appointment of the
director on internal audit.
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|Audit Committee
Terms of Reference
Revised: Mar 22, 2005 | Page 4 of 6 Pages
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Confidential

| |  | Review the resources, budget, reporting relationships and planned activities of the
internal audit function.
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| |  | Review internal audit findings and determine that they are being properly followed up.
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# Statutory
Responsibilities

Ensure compliance by the corporation
of any regulatory requirements.

# Other Responsibilities

Additional responsibilities to be
defined as required.

These responsibilities may include:

| |  | Reviewing
prospectuses and other offering memoranda;
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| |  | Monitoring
compliance with the corporate code of conduct;
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| |  | Investigating
fraud, illegal acts or conflicts of interest;
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| |  | Discussing
selected issues with corporate counsel;
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| |  | Reviewing
compliance with environmental codes of conduct and legislation.
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# Liaison with Other Audit
Committees of Subsidiary Companies in the Consolidated Group

| |  | Review the mandate and terms of reference of the subsidiarys Audit Committee.
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| |  | Review
the report(s) of the subsidiarys Audit Committee to its Board of Directors.
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| |  | Follow up, as appropriate, with management, the chairperson of the Audit Committee or the
audit partner of the subsidiary on any matters of concern.
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# Reporting

| |  | Report, through the chairperson, to the Board following each meeting on the major
discussions and decisions made by the Audit Committee.
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| |  | Report annually, through the Board, to the shareholders as required by Applicable
Securities Laws on the Audit Committees responsibilities and how it has discharged
them.
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|Audit Committee
Terms of Reference
Revised: Mar 22, 2005 | Page 5 of 6 Pages
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Confidential

| |  | Review the Audit Committees terms of reference annually and propose recommended
changes to the Board.
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# REGULATIONS

|1. | This committee, constituted by the Board of Directors, shall have the power,
          authority and discretion delegated to it by the Board which shall not include
          the power to fill vacancies in the Board or the power to change the membership
          of or fill vacancies in this committee and this committee shall conform to the
          regulations which may from time to time be imposed upon it by the Board.
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|2. | The Audit Committee may meet and adjourn, as it thinks proper. Questions arising
          shall be determined by a majority of votes of the members of the Audit Committee
          present, and in the case of an equality of votes, the chairman shall not have a
          second or casting vote.
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|3. | A resolution approved in writing by all members of the Audit Committee shall be
          valid and effective as if it had been passed at a duly called meeting. Such
          resolution shall be filed with the minutes of the proceedings of the Audit
          Committee and shall be effective on the date stated thereon or on the latest
          date stated in any counterpart.
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|4. | The Audit Committee shall keep regular minutes of its transactions and shall
          cause them to be recorded in the books kept for that purpose and shall
          distribute such minutes to the Board of Directors.
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|5. | The Board shall have the power at any time to revoke or override the authority
          given to or acts done by the Audit Committee except as to acts done before
          revocation or overriding and to terminate the appointment or change the
          membership of such committee and to fill vacancies in it.
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|6. | A majority of the members of the said committee shall constitute a quorum
          thereof, which quorum is to consist of a majority of independent directors.
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|Audit Committee
Terms of Reference
Revised: Mar 22, 2005 | Page 6 of 6 Pages
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