Novadaq Technologies Inc.
TSX : NDQ

Novadaq Technologies Inc.

October 20, 2006 08:00 ET

Novadaq Announces Initiation of LUNA System Human Clinical Trials

TORONTO, ONTARIO--(Marketwire - Oct. 20, 2006) -

Attention Business Editors:

Novadaq® Technologies Inc. (TSX:NDQ), a developer of medical imaging systems
for the operating room, today announced that it has commenced the first human
trial with the LUNA™ System. Novadaq designed and developed the LUNA System
to enable surgeons to visualize nerves, tissue perfusion and lymph nodes during
urological applications, including but not limited to, radical prostatectomy surgery.

This first trial enrolled and imaged its first patients over the past
week at the Strong Memorial Hospital, University of Rochester, Rochester,
N.Y., USA. This first application uses the LUNA System to assist the surgeon
to evaluate and identify tumor margins in kidney tumors. It is anticipated
that successful tumor identification will aid the surgeon in removing as much
of the tumor as possible, while preserving normal tissue. The initial images
demonstrate the differential perfusion of the tumor to normal tissue allowing
the doctor to clearly identify the extent of the tumor, while surgically
removing it.

The trial is designed to evaluate the clinical utility of the images, as
well as correlate the findings to standard histopathology determinations of
tumor margins. In addition, LUNA can be used to evaluate perfusion of the
kidney after partial nephrectomy, something that is not routinely or
practically done in the operating room without the LUNA System. Novadaq
intends to initiate further clinical work in radical prostatectomy surgery
later this year.

"The images from the initial patients are very promising," remarked Dr.
Edward Messing, Winfield W. Scott Professor and Chairman Department of
Urology, Principal Investigator of this trial. "This technology holds a lot of
potential for many urological applications, and we are looking forward to
continuing the clinical development of this product for those different
procedures."

"I would like to congratulate the Rochester team for making tremendous
progress on taking the urological applications for LUNA from concept to clinic
in such a short period of time," said Dr. Arun Menawat, President and CEO,
Novadaq Technologies Inc. "We entered into this research arrangement in
February 2006 and are already conducting our first human trial with
encouraging early images and findings."

About Novadaq Technologies

Novadaq Technologies Inc. (TSX:NDQ) develops and commercializes medical
devices based on its proprietary imaging platform for the diagnosis and
treatment of human vascular and ophthalmic diseases and conditions. Novadaq's
SPY Intra-operative 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 ophthalmic
product, the OPTTX® System, 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. Novadaq filed for CE Mark
approval for the OPTTX System at the end of Q2 2006 and expects a limited
launch in Europe by year end. Novadaq's product for urology, LUNA is designed
to enable surgeons to visualize nerve bundles during the course of urological
procedures such as radical prostatectomy in order to reduce negative outcomes
including impotency. For more information, please visit the company's website
at www.novadaq.com.

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, and plans and objectives of
or involving Novadaq. Particularly, information regarding future sales and
marketing activities, the future roll-out of the SPY System in Europe and
Emerging Markets, future revenues and research and development activities,
expectations for regulatory approval and commercial launch of the OPTTX
System, as well as the Company's plans for each of the SPY, OPTTX and Luna
Systems, is forward-looking information.

Forward-looking information is based on certain factors and assumptions
regarding, among other things, current sales and distribution plans, market
acceptance and the rate of market penetration of Novadaq's SPY System, the
clinical results of the use of the SPY System, the results from clinical tests
of the OPTTX System, the likelihood of regulatory approval in Europe for the
OPTTX System, potential opportunities in the AMD treatment market, and
potential opportunities 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 System, sales and distribution
risks, dependence on key suppliers for components of the SPY 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.

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