Novadaq Technologies Inc.

Novadaq Technologies Inc.

January 29, 2007 08:00 ET

Novadaq Imaging System Receives FDA Clearance for use During Plastic Reconstructive Surgery

TORONTO, ONTARIO--(Marketwire - Jan. 29, 2007) -

Attention Business Editors:

Novadaq® Technologies Inc. (TSX:NDQ), a developer of medical imaging systems
for the operating room, announced today that it has received 510K clearance
from the United States Food and Drug Administration (FDA) for its imaging system
for use during plastic reconstruction and micro surgery. Novadaq plans to market
the system under the name HELIOS™, which is the first fluorescent imaging
system available for use during plastic reconstructive surgery. In plastic
reconstructive surgery, the system enables surgeons to:

- Pre-operatively visualize blood flow as an adjunct for the evaluation
of circulation in the tissue targeted for harvest, commonly referred
to as a "flap", A flap is tissue taken from the patients own body,
such as from the abdomen, used to create the new body part;

- Intra-operatively assess blood flow in the co-joined vessels which
are responsible for providing adequate blood supply to the tissue and
the quality of blood perfusion to the newly created body part; and

- Post-operatively continue to adjunctively evaluate blood perfusion to
the tissue in the newly created body part which can be indicative of
a successful or unsuccessful reconstruction.

"I wish to thank Drs. Michel Samson and Martin Newman, Plastic Surgeons
at the Cleveland Clinic Florida in Weston, Florida who observed the use of the
SPY System during an open heart coronary artery bypass grafting procedure, and
saw the potential clinical value of imaging during breast reconstruction and
potentially other reconstructive procedures," said Dr. Arun Menawat, President
and Chief Executive Officer Novadaq Technologies Inc. "These two visionary
surgeons note significant clinical benefits to imaging during these very
complex procedures, which represent a large potential new market opportunity
for Novadaq."

During any plastic reconstructive surgery the maintenance or creation of
adequate blood supply to tissue is integral to the procedure, as inadequate
blood flow in reconstructed tissue, such as a newly created breast, can lead
to serious complications such as necrosis, partial or total flap loss. A
10-year retrospective study of 758 breast flap procedures published by Gill et
al., in Plastic and Reconstructive Surgery in April 2004 reported that
complications can occur in up to 30% of all breast reconstruction surgeries
and that 5% of patients undergoing breast reconstruction will return to the
operating room due to complications. Use of the HELIOS System may allow
surgeons to quickly identify areas of inadequate blood perfusion and
potentially make immediate revisions to the surgically reconstructed area that
ultimately may save the newly constructed body part, prevent life altering
complications and improve the overall outcome of the surgery for many

Breast reconstruction procedures are extremely complicated, typically
lasting as long as 8-12 hours, and therefore can be very expensive procedures.
Novadaq estimates that the average cost of a breast reconstruction procedure
can exceed $50,000 (USD). Most patients undergoing these procedures are either
being treated simultaneously by mastectomy for breast cancer or are already
breast cancer survivors who have undergone a prior mastectomy.

According to the American Society of Plastic Surgery (ASPS), in 2005,
approximately 1.5 million plastic reconstruction procedures were performed by
the members of the society. In October of 1998, federal legislation was signed
in the United States, requiring health plans and health insurers providing
benefits with respect to mastectomy procedures, to cover the cost of
reconstructive breast surgery for women who have undergone a mastectomy.
Novadaq believes that the HELIOS System will add value in the most complex of
plastic reconstructive surgeries and therefore estimates the potential annual
market opportunity to be approximately 300,000 procedures.

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. The HELIOS 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™ 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 at

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, the utility of and the Company's plans
for the HELIOS System and the size of the potential market for HELIOS, 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 the HELIOS System and the number of plastic
reconstruction procedures performed annually in the United States. 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 HELIOS System, risks
related to third party contractual performance, dependence on key suppliers
for components of the HELIOS 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, except
as required by law.

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

For further information: visit our website at

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