20071231 Mandate Audit committee E

ART ADVANCED RESEARCH TECHNOLOGIES INC. (THE “COMPANY”) MANDATE OF THE AUDIT & ENVIRONMENT COMMITTEE The Board of Directors (the “Board”) of ART Advanced Research Technologies Inc. (the “Company”) has formed a committee known as the Audit & Environment Committee (the “Committee”), to which it has delegated some of its duties and responsibilities in order to assist the Board more efficiently. The primary responsibility of the Committee is to oversee the Company’s financial reporting process on behalf of the Board and report the results of its activities to the Board. Management of the Company is responsible for preparing the Company’s financial statements, and the independent auditors are responsible for auditing those financial statements. 1. MANDATE OF THE COMMITTEE The responsibility of the Committee is: To assist the Board in performing its duties, in particular ensuring that the management of the Company discharges its responsibilities with respect to: • The production of reliable financial information; • The integrity of the internal control systems and management information systems of the Company; • The identification of the principal risks of the business and putting appropriate systems in place to manage such risks; • Compliance with applicable statutory and regulatory requirements. To ensure and maintain free and open communication between the Board, the management of the Company and the external auditors. To reinforce the ...