Novadaq Technologies Inc.
TSX : NDQ

Novadaq Technologies Inc.

May 23, 2007 10:28 ET

Novadaq Completes $30 Million Private Placement

TORONTO, ONTARIO--(Marketwire - May 23, 2007) -

Attention Business Editors:

NOT FOR RELEASE IN THE UNITED STATES OR OVER U.S. NEWSWIRE SERVICES

Novadaq® Technologies Inc. (TSX:NDQ), a developer of real-time medical imaging
systems and image guided therapies for the operating room, is pleased to announce
that it has closed its previously announced private placement financing of
4,000,000 common shares at a price of $7.50 per share for aggregate gross proceeds
of $30.0 million. The syndicate of agents was led by RBC Dominion Securities Inc.
and included Blackmont Capital Inc. and Versant Partners Inc.

The net proceeds from this offering will be used to fund ongoing product
research and development efforts, sales and marketing expenses and recent
acquisitions including the exclusive distribution rights to PLC Medical System
Inc.'s Heart Laser System™ for transmyocardial revascularization (TMR) in
the United States, the acquisition of certain business assets of Xillix
Technologies Corp., and for general corporate purposes.

This news release does not constitute an offer to sell or a solicitation
of an offer to buy any securities. The securities referred to above have not
been and will not be registered under the United States' Securities Act of
1933, as amended (the "US Securities Act") or any state securities laws and
may not be offered or sold within the United States or to US persons unless
registered under the US Securities Act and applicable state securities laws or
an exemption from such registration is available.

About Novadaq Technologies

Novadaq Technologies Inc. (TSX:NDQ) develops and commercializes medical
imaging systems and real-time image guided therapies for use in the operating
room. Novadaq's proprietary imaging platform can be used to visualize blood
vessels, nerves and the lymphatic system during surgical procedures. Novadaq's
SPY® Imaging System, commercially available worldwide, enables cardiac
surgeons to visually assess coronary vasculature and bypass graft
functionality during the course of open-heart surgery. Novadaq's OPTTX®
System which received CE Mark approval in November 2006, is aimed at the
diagnosis, evaluation and treatment of wet Age-related Macular Degeneration
(AMD) by using the same core imaging technology that is used in the SPY
Imaging System. The HELIOS™ Imaging System, which received FDA clearance in
January 2007, is the first fluorescent imaging system available for use during
plastic reconstructive surgery allowing surgeons to evaluate pre- and
intra-operative blood flow, as well as post-surgery perfusion. Novadaq's
LUNA™ Imaging System is designed to enable surgeons to visualize nerve
bundles during the course of urological and neurological procedures. LUNA has
been granted a license for use by Health Canada. Novadaq is also the exclusive
United States distributor of PLC Medical's CO(2) HEART LASER™ System for
TMR (Trans-Myocardial Revascularization). Novadaq recently acquired a
comprehensive portfolio of minimally invasive native tissue fluorescence
imaging technology with the vision to expand the applications for this
technology in Novadaq's surgical markets. For more information, please visit
the company's website at www.novadaq.com.

Forward-Looking Information

This press release contains certain information that may constitute
forward-looking information within the meaning of securities laws. In some
cases, forward-looking information can be identified by the use of terms such
as "may", "will", "should", "expect", "plan", "anticipate", "believe",
"intend", "estimate", "predict", "potential", "continue" or other similar
expressions concerning matters that are not historical facts. Forward-looking
information may relate to management's future outlook and anticipated events
or results, and may include statements or information regarding the future
financial position, business strategy and strategic goals, research and
development activities, projected costs and capital expenditures, financial
results, research and clinical testing outcomes, taxes and plans and
objectives of or involving Novadaq. Without limitation, information regarding
future sales and marketing activities, SPY Imaging System placement targets
and utilization rates, the implementation of a reimbursement code for the SPY
Imaging System, future revenues arising from the sales of the Company's
products or the distribution arrangements with PLC Medical Systems Inc., and
research and development activities, FDA approval of sources of indocyanine
green ("ICG"), the fluorescent agent used with the Company's products, and or
the manufacturing of an alternate form of the florescent agent by the Company,
the Company's plans to seek additional regulatory clearances for additional
indications, the expected benefits of the combination of TMR with the SPY
Imaging System, as well as the Company's plans for each of the SPY Imaging
System, HELIOS Imaging System, the OPTTX System and the LUNA Imaging System,
and the current development by the Company of a family of prototype endoscopes
is forward-looking information.

Forward-looking information is based on certain factors and assumptions
regarding, among other things, market acceptance and the rate of market
penetration of Novadaq's SPY Imaging System, the adoption by customers of a
rental mode of arrangement for the SPY Imaging System, the effect of a
recently announced reimbursement code for the SPY Imaging System, the clinical
results of the use of the SPY Imaging System, market acceptance and the rate
of market penetration of the HELIOS Imaging System, the clinical results of
the use of the HELIOS Imaging System, the results from clinical tests of the
OPTTX System and the LUNA Imaging System, and potential opportunities in the
AMD treatment market and in image guided conventional and minimally invasive
urological applications including nerve-sparing radical prostatectomy. While
the Company considers these assumptions to be reasonable based on information
currently available to it, they may prove to be incorrect.

Forward looking-information is subject to certain factors, including
risks and uncertainties, that could cause actual results to differ materially
from what we currently expect. These factors include risks relating to the
transition from research and development activities to commercial activities,
market acceptance and adoption of the SPY Imaging System, the HELIOS Imaging
System and of the OPTTX System, the risk that a recently announced
reimbursement code will not affect acceptance or usage of the SPY Imaging
System, risks related to third party contractual performance, dependence on
key suppliers for components of the SPY Imaging System, the HELIOS Imaging
System and the OPTTX System, regulatory and clinical risks, risks relating to
the protection of intellectual property, risks inherent in the conduct of
research and development activities, including the risk of unfavorable or
inconclusive clinical trial outcomes, potential product liability, competition
and the risks posed by potential technological advances, and risks relating to
fluctuations in the exchange rate between the US dollar and the Canadian
dollar.

You should not place undue importance on forward-looking information and
should not rely upon this information as of any other date. While Novadaq may
elect to, Novadaq is under no obligation and does not undertake to update this
information at any particular time.

For further information: visit our website at www.novadaq.com.

Contact Information