Toronto, Ontario – March 21, 2007 Novadaq® Technologies Inc. (TSX: NDQ), a developer of real-time medical imaging systems and image guided therapies for the operating room, announced today that its wholly-owned U.S. subsidiary, Novadaq Corp., has agreed with Edwards Lifesciences LLC to acquire Edwards’ exclusive distribution rights to PLC Medical System Inc.’s HEART LASER™ SYSTEM for transmyocardial revascularization (TMR) in the United States. Novadaq will begin marketing the system immediately.

TMR is a procedure aimed at improving blood flow to areas of the heart in patients suffering from stable Class III or IV angina or chest pain due to a decrease in blood supply to the heart muscle and that can not be successfully treated by other revascularization procedures, such as angioplasty, stents or coronary artery bypass surgery (CABG). TMR involves the use of a laser to create small channels in the heart muscle which may promote the growth of small blood vessels that will help supply blood to the heart muscle, a process know as angiogenesis. TMR procedures are FDA approved for treating areas of the myocardium not amenable to traditional methods of revascularization. The procedure is reimbursed by the Center for Medicare and Medicaid Services using specifically designated codes.
Studies published in such journals as the New England Journal of Medicine and Circulation report a sustained benefit to patients treated with TMR compared to patients treated with other therapies. Novadaq understands from experts in the field of cardiac surgery that more than 30,000 patients in the US could benefit from TMR each year; however, today, only 7,000 patients are actually treated. Novadaq’s SPY® Intra-operative Imaging System may enable cardiac surgeons to visually identify the most suitable area for treatment by assessing blood flow which is indicative of tissue perfusion and potentially guide TMR delivery in real-time making the procedure potentially more effective and offered more frequently to patients in need.

“Based upon Edwards’ historical revenues and margins for its distribution of TMR, this transaction will be immediately accretive to our bottom line and synergistic to our sales strategy as we can now offer cardiac surgeons a total revascularization solution”, said Dr. Arun Menawat, President and Chief Executive Officer of Novadaq Technologies Inc. “The combination of our SPY System and TMR not only holds the promise of improving the effective delivery of TMR, but will also potentially improve the quality of life for many patients. TMR fits well with our current corporate strategy to provide and enable image guided therapies in the operating room and further validates our vision that real-time image guidance in the operating room can improve the effectiveness of therapeutic surgical procedures.”

“Novadaq’s strong commitment to quality products and customer education will ensure that our cardiac surgeon customers will continue to receive the high level of service and support they have come to expect,” said Rick Bleil, Vice President, General Manager, Cardiac Surgery Systems, Edwards Lifesciences.

“Today, we are taking a major step for our TMR business by naming a new partner in Novadaq,” said Mark R. Tauscher, President and Chief Executive Officer of PLC Systems, Inc. “We, and Novadaq, see strong synergistic opportunities for our TMR product line used in real-time in conjunction with Novadaq’s SPYÒ Intra-operative Imaging System, for which Novadaq recently built a direct US sales team that targets the same end user as we do, the cardiac surgeon. We appreciate the support of Edwards throughout the launch and building of our TMR business, and we are fortunate to find a new and able partner in Novadaq to make this a seamless transition for our growing customer base.”

For the exclusive United States distribution rights, Novadaq will pay Edwards cash consideration in the amount of $1 million USD at closing, an earn-out for the balance of 2007 which is estimated to be $3 million USD and a final payment of $3 million USD which is deferred under a one-year secured promissory note. Novadaq will also purchase Edwards’ inventory and certain property used in its distribution of TMR at Edwards' net book value. In 2006, revenues for Edwards’ TMR product line were approximately $12 million USD at gross margin of approximately 50%.

Edwards has committed to assist in transitioning the TMR distribution to Novadaq. Concurrently with the Edwards transaction, Novadaq is entering into an amended and restated distribution agreement with PLC.

Conference Call
Management will also host a conference call and live webcast this afternoon, Wednesday, March 21, 2007 at 4:15 p.m. E.T. to discuss the acquisition of Edwards’ TMR distribution rights. To access the conference call by telephone, dial 416-644-3420 or 1-800-595-8550. Please connect approximately ten minutes prior to the beginning of the call to ensure participation. The conference call will be archived for replay until March 26, 2007 at midnight. To access the archived conference call, dial 416-640-1917 or 1-877-289-8525 and enter the reservation number 21224262 followed by the number sign. A live audio webcast of the conference call will be available at www.novadaq.com. Please connect at least ten minutes prior to the conference call to ensure adequate time for any software download that may be required to join the webcast. The webcast will be archived at the above website for 365 days.

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® 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 www.novadaq.com.

Certain statements included in this press release may be considered forward-looking. Such statements involve known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements to be materially different from those implied by such statements, and therefore these statements should not be read as guarantees of future performance or results. All forward-looking statements are based on Novadaq's current beliefs as well as assumptions made by and information currently available to Novadaq and relate to, among other things, anticipated financial performance, business prospects, strategies, regulatory developments, market acceptance and future commitments. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. Due to risks and uncertainties, including the risks and uncertainties identified by Novadaq in its public securities filings; actual events may differ materially from current expectations. Novadaq disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

For further information visit our website at www.novadaq.com, or contact:

Arun Menawat, PhD, MBA
President & CEO
Novadaq Technologies Inc.
Phone: 905-629-3822 x 202
amenawat@novadaq.com

Investor Relations:
Michael Moore
The Equicom Group
Phone: 416-815-0700 x 241
mmoore@equicomgroup.com