Novadaq Technologies Inc.
TSX : NDQ

Novadaq Technologies Inc.

May 11, 2007 16:18 ET

Novadaq Increases Private Placement to Approximately $30 Million

TORONTO, ONTARIO--(Marketwire - May 11, 2007) -

Attention Business Editors:

NOT FOR DISTRIBUTION OVER US NEWSWIRE SERVICES

Novadaq® Technologies Inc. (TSX:NDQ), a developer of real-time medical
imaging systems and image guided therapies for the operating room, is
pleased to announce that it has increased the previously announced private
placement financing to approximately $30.0 million. The syndicate of agents
led by RBC Dominion Securities Inc. and including Blackmont Capital Inc.
and Versant Partners Inc., will offer approximately 4,000,000 common shares
at a price of $7.50 per share for aggregate gross proceeds of approximately
$30.0 million.

Closing of the offering is expected to be on or about May 23, 2007
subject to certain customary conditions, including the entering into of
definitive agreements on customary terms, and the receipt of all necessary
regulatory approvals, including the approval of the Toronto Stock Exchange.

The net proceeds from this offering will be used to fund ongoing product
research and development efforts, sales and marketing expenses and recent
acquisitions including the exclusive distribution rights to PLC Medical System
Inc.'s Heart Laser System™ for transmyocardial revascularization (TMR) in
the United States, the acquisition of certain business assets of Xillix
Technologies Corp., and for general corporate purposes.

This news release does not constitute an offer to sell or a solicitation
of an offer to buy any securities. The securities referred to above have not
been and will not be registered under the United States' Securities Act of
1933, as amended (the "US Securities Act") or any state securities laws and
may not be offered or sold within the United States or to US persons unless
registered under the US Securities Act and applicable state securities laws or
an exemption from such registration is available.

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 at www.novadaq.com.

This MD&A 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 arising from the sales of the Company's products or
the distribution arrangements with PLC Medical Systems Inc., and research and
development activities, FDA approval of sources of indocyanine green ("ICG"),
the fluorescent agent used with the Company's products, and or the
manufacturing of an alternate form of the florescent agent by the Company, the
currently proposed private placement of common shares by the Company or the
terms thereof, the Company's plans to seek additional regulatory clearances
for additional indications, the expected benefits of the combination of TMR
with the SPY System, as well as the Company's plans for each of the SPY
System, HELIOS System, the OPTTX System and LUNA, and the current development
by the Company of a family of prototype endoscopes 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 adoption by customers of a rental
mode of arrangement for the SPY System, the effect of a recently announced
reimbursement code for the SPY System, the clinical results of the use of the
SPY System, market acceptance and the rate of market penetration of the HELIOS
System, the clinical results of the use of the HELIOS 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 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 and of the OPTTX System, the
risk that a recently announced reimbursement code will not affect acceptance
or usage 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, risks related to the
completion, and if completed the terms of the Company's proposed private
placement, 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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