Novadaq Technologies Inc.
TSX : NDQ

Novadaq Technologies Inc.

October 02, 2006 09:04 ET

Novadaq Announces Posting of CMS Reimbursement Recommendation for SPY

TORONTO, ONTARIO--(Marketwire - Oct. 2, 2006) -

Attention Business Editors:

Novadaq® Technologies Inc. (TSX:NDQ), a developer of medical imaging systems
for the operating room, today announced that T. Bruce Ferguson, MD Associate
Chief Division of Vascular and CT Surgery at East Carolina University Heart
Institute and Chief Medical Advisor to Novadaq, presented the SPY Intra-
operative Fluorescence Vascular Angiography procedure and request for a unique
ICD-9-CM Code at the September 28th meeting of the Coordination and Maintenance
Committee. As a result, a recommendation for a unique ICD-9-CM code is posted
on the CMS website.

The process for finalization of recommendations includes a public comment
period. Final ICD-9-CM diagnosis and procedure codes for the upcoming fiscal
year will be made public in the April 2007 Notice of Proposed Rulemaking to be
published in the Federal Register following the public comment period which
ends December 4, 2006. Also attending the meeting in support of the request by
Novadaq Technologies for a unique ICD-9 CM Code were Mitchell Magee, MD,
Medical City Hospital, Edwin McGee MD, Northwestern University Medical Center,
Zev Davis, MD Edward Hospital, Christine McCarty, MD, Harrisburg Hospital,
Michael Shen MD, Cleveland Clinic Florida, Nimesh Desai, MD, PhD, Sunnybrook
Hospital and Denise Gunkle RN, St. John Macomb Hospital.

ICD-9-CM procedure codes are used to describe medical procedures
performed by physicians and other healthcare providers. For more detailed
information about the ICD-9-CM process including a copy of the September 28th
meeting agenda, handouts including coding recommendations and process for
public comment is available on the CMS website at
www.CMS.hhs.gov/ICD9ProviderDiagnosticCodes (click on ICD-9-CMCoordination and
Maintenance Committee Meetings on the left side of the page).

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.

Contact Information