Novadaq Technologies Inc.

Novadaq Technologies Inc.

January 26, 2007 08:00 ET

Novadaq Establishes Direct US Sales Team

Ends US Distribution Partnership With CarboMedics

TORONTO, ONTARIO--(Marketwire - Jan. 26, 2007) -

Attention Business Editors:

Novadaq® Technologies Inc. (TSX:NDQ), a developer of medical imaging
systems for the operating room, announced today that it has ended its
distribution partnership with CarboMedics, a member of the Sorin Group
of Companies, effective December 31, 2006, representing the final step
in Novadaq's strategy to establish a dedicated direct sales organization.
The termination of these arrangements will not require any significant
net payment from one party to the other.

In December of 2006 Novadaq hired 12 highly experienced sales
representatives to represent the SPY® Intra-operative Imaging System
(SPY System) throughout the United States. The newly hired sales team will
partner with Novadaq's 12 existing Clinical Educators to drive SPY System
sales and product adoption across the U.S. Both companies are currently
working together to achieve a smooth transition of sales responsibility for
current and future SPY customers from the CarboMedics sales organization to
the Novadaq direct sales team.

"We are grateful to our CarboMedics partners for helping us to introduce
SPY in cardiac surgery. We are working towards changing the paradigm of
cardiac surgical procedures, by providing imaging in the operating room to
improve outcomes. This effort requires a dedicated sales team that can
specialize in surgical interventional imaging. Over the long term, our
dedicated sales team will also be key to building sales of our pipeline
products," said Dr. Arun Menawat, CEO and President of Novadaq Technologies
Inc. "Members of our sales team have had previous successful sales experiences
at many of the most highly respected companies in the industry, including
successful start-up companies such as Cardiothoracic Systems (CTS), FoxHollow
and I-Flow, as well as large established medical device companies such as
Medtronic, Genzyme, Toshiba, Guidant, St. Jude and others. This wealth of
industry experience combined with our team's strong long-term relationships
with surgeons and hospitals is an important step in our efforts to ensure that
use of the SPY System becomes a standard of care in cardiac surgery."

In December 2006, Novadaq secured 12 additional purchase orders for SPY
Systems, which are being installed during the month of January bringing the
total number of systems installed in the United States to 67. Additional
purchase orders have been received in January and will be announced later as
part of the Q1 results.

About Novadaq Technologies

Novadaq Technologies Inc. (TSX: NDQ) develops and commercializes medical
imaging devices 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 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 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. Novadaq's LUNA™ 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. For more information, please visit the company's website

Forward-Looking Statements

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 System placement targets and
utilization rates, the implementation of a reimbursement code for the SPY
System, future revenues and research and development activities, and the
planned European commercial launch of the OPTTX System, as well as the
Company's plans for each of the SPY System, the OPTTX System and LUNA, 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 System, the effect of a
recommended reimbursement code for the SPY System, the clinical results of the
use of the SPY System, the results from clinical tests of the OPTTX System and
LUNA , and potential opportunities in the AMD treatment market and in image
guided conventional and minimally invasive urological and neurological
applications. 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, risks related to the establishment and maintenance of a direct
sales force, risks associated with market acceptance and adoption of the SPY
System and of the OPTTX System, the risk that a recommended reimbursement code
will not be fully implemented or that it will not affect acceptance of the SPY
System, risks related to third party contractual performance, 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.

This press release was prepared by management from information available
to January 23, 2007.

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