Novadaq Technologies Inc.

Novadaq Technologies Inc.

April 23, 2007 07:00 ET

Novadaq Acquires Portfolio of Fluorescence Endoscopy Patents From Xillix

TORONTO, ONTARIO--(Marketwire - Apr. 23, 2007) -

Attention Business Editors:

Novadaq® Technologies Inc. (TSX:NDQ), a developer of real-time medical
imaging systems and image guided therapies for the operating room, announced
today that it has entered into an asset purchase agreement to acquire certain
business assets of Xillix Technologies Corp. (Richmond, British Columbia),
including all of Xillix's intellectual property, certain capital assets
and inventory.

"The Xillix acquisition should enable us to accelerate our
commercialization efforts in the area of endoscopic fluorescence imaging and
image guided therapies in minimally invasive surgical procedures," said
Dr. Arun Menawat, President and Chief Executive Officer of Novadaq
Technologies Inc. "Real-time fluorescence imaging through endoscopes should
allow surgeons performing minimally invasive procedures through small
incisions to see much more than what is possible with present day technology."

The intellectual property purchased by Novadaq includes Xillix's
extensive auto-fluorescence and multi-modal imaging portfolio of 31 issued
patents and multiple pending applications in the United States, Japan and
Europe. The acquisition also includes licensed rights to innovative
fluorescence imaging technologies. The combined assets represent years of
market intelligence, advanced research and multiple product generations of
auto-fluorescence endoscopic systems, including innovative endoscopy cameras
and light sources.

Adding valuable Xillix patents and assets in auto-fluorescence to
Novadaq's already strong intellectual property portfolio of exogenous agents,
devices and methods for fluorescence, immediately positions the Company as an
innovation leader in auto-fluorescence and fluorescence endoscopy. According
to market research reports, including those published by Windover, minimally
invasive procedures guided by endoscopic imaging are some of the fastest
growing within most surgical specialties. Reports from both the Mayo and
Cleveland Clinic confirm that the ability to image and guide minimally
invasive procedures involving small incisions using endoscopes is desirable.
This is particularly true in Novadaq's targeted markets, cardiac, plastic
reconstructive, general and urologic surgeries. Within cardiac surgery the
Company already enjoys a healthy combined installed base of 150 CO(2) HEART
LASER™ Systems and more than 70 SPY® Imaging Systems that are being used
today in open procedures. Combining Novadaq's existing intellectual property
for open and minimally invasive procedures with the Xillix portfolio, gives
Novadaq the flexibility to potentially provide the most advanced imaging and
image guidance in both procedural markets and across many specialties in the

For the acquired assets, Novadaq will pay Xillix consideration in the
amount of CDN $3,000,000 at closing of which $1,075,000 will be paid in cash
and CDN $1,925,000 will be paid in cash or, at Novadaq's election, stock (at
an issue price of $8.56 per share, being the volume weighted average trading
price of Novadaq's common shares on the Toronto Stock Exchange for the five
trading days preceding the execution of the asset purchase agreement). Closing
of the Xillix transaction, currently scheduled to occur in early May, 2007, is
subject to a number of conditions, including (among others) the approval of
the transaction by the Supreme Court of British Columbia in connection with
Xillix's CCAA proceedings, and the Toronto Stock Exchange.

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 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). For more information, please visit the company's website

Forward-looking Statements

Certain statements included in this press release may be considered
forward-looking. Such statements involve known and unknown risks,
uncertainties and other factors that may cause actual results, performance or
achievements to be materially different from those implied by such statements,
and therefore these statements should not be read as guarantees of future
performance or results. All forward-looking statements are based on Novadaq's
current beliefs as well as assumptions made by and information currently
available to Novadaq and relate to, among other things, anticipated financial
performance, business prospects, strategies, regulatory developments, market
acceptance and future commitments. In particular, closing of the acquisition
of Xillix assets by Novadaq described in this press release is subject to a
number of conditions, any or all of which may not be satisfied or waived by
the parties, respectively; accordingly, there can be no assurance that such
acquisition will be completed on the basis currently anticipated, if at all.
Readers are cautioned not to place undue reliance on these forward-looking
statements, which speak only as of the date of this press release. Due to
risks and uncertainties, including the risks and uncertainties identified by
Novadaq in its public securities filings; actual events may differ materially
from current expectations. Novadaq disclaims any intention or obligation to
update or revise any forward-looking statements, whether as a result of new
information, future events or otherwise.

For further information: visit our website at

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