Atmos Energy Upgrades to MDSI's Advantex r7.

RICHMOND, British Columbia -- MDSI Mobile Data Solutions (NASDAQ:MDSI) (TSX:MMD) will upgrade current customer Atmos Energy Corporation to Advantex r7, the latest version of MDSI's market-leading mobile workforce management software. Atmos Energy is one of the largest pure natural gas distributors in the United States, delivering natural gas to approximately 1.7 million residential, commercial, industrial and public-authority customers across 12 states. The current contract sees Atmos upgrading 100 of its field workers. The company expects to add another 500 workers to Advantex r7 later by a separate contract.

According to Les Duncan, chief information officer for Atmos Energy, "We are upgrading a number of critical applications right now, and Advantex r7 offers the flexibility to adapt to the new IT environment quickly and easily. In fact, we anticipate that this initial rollout will take just two to three months to complete. We look at our key software suppliers as partners in achieving our business objectives and appreciate MDSI's help."

With Advantex, Atmos Energy will optimally schedule and wirelessly dispatch work to field crews, who will use the solution to manage and record their work, and provide real time status updates from the field. Access to such real time data will support the company's goal of highly responsive customer service and will help ensure that each job is completed by the right person at the right time.

Advantex will be integrated with third party vendors' customer information and work management systems and will wirelessly communicate data over both terrestrial and satellite networks. Mobile workers will interface with the application through notebook computers and handheld devices.

About Atmos Energy Corporation

Atmos Energy Corporation, headquartered in Dallas, is one of the largest natural gas distributors in the United States, serving about 1.7 million gas utility customers. Atmos Energy's utility operations serve more than 1,000 small and medium-size communities in 12 states from the Blue Ridge Mountains in the East to the Rocky Mountains in the West. Atmos Energy's non-utility operations, organized under Atmos Energy Holdings, Inc., operate in 18 states. They provide natural gas marketing and procurement services to industrial, commercial and municipal customers, manage company-owned natural gas storage and pipeline assets and construct small electric generating plants for industrial and municipal customers. On June 17, 2004, Atmos Energy entered into a definitive agreement to acquire the natural gas distribution and pipeline operations of TXU Gas Company for $1.925 billion. For more information, visit www.atmosenergy.com.

About MDSI

MDSI is the largest, most successful and experienced provider of mobile workforce management software in the world. MDSI's software improves customer service and relationships and reduces operating costs by allowing companies to manage field resources more effectively. Headquartered in Richmond, BC, Canada, MDSI was founded in 1993 and has approximately 350 employees. The company has operations and support offices in the United States, Canada, Europe and Australia. MDSI services approximately 100 customers and has licensed more than 80,000 field service users around the world. MDSI is a public company traded on the Toronto Stock Exchange (MMD) and on NASDAQ (MDSI). www.mdsi-advantex.com.

This press release contains statements that constitute "forward-looking statements" within the meaning of Section 21E of the Securities Exchange Act of 1934. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements, or developments in our industry, to differ materially from the anticipated results, performance or achievements expressed or implied by such forward-looking statements. Forward-looking statements in this release include statements regarding MDSI's expectations concerning the execution of an additional contract with Atmos. Factors that could cause actual results to differ materially from anticipated results include risks and uncertainties such as: risks associated with project implementations and software development; delays and technical issues caused by our customers or other third parties; the possibility that our potential customers will defer purchasing decisions due to economic, political or other conditions or will purchase products offered by our competitors; and other risks and uncertainties detailed in MDSI's most recent Annual Report on Form 10-K and quarterly report on Form 10-Q filed with the Securities and Exchange Commission. MDSI disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.