Toronto, Ontario – May 3, 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 it has completed the purchase of all intellectual property, certain capital assets and inventory from Xillix Technologies Corp. (Richmond, British Columbia) including, an extensive auto-fluorescence and multi-modal imaging portfolio of 31 issued patents and multiple pending applications in the United States, Japan and Europe and licensed rights to certain innovative fluorescence imaging technologies.

For the acquired assets, Novadaq paid Xillix consideration in the amount of CDN $3,000,000 of which $1,075,000 was paid in cash and $1,925,000 was satisfied by the issuance of 224,883 common shares (at an issue price of $8.56 per share, being the volume weighted average trading price of Novadaq’s common shares on the Toronto Stock Exchange for the five trading days preceding the execution of the asset purchase agreement).

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 CO² HEART LASER™ System for TMR (Trans-Myocardial Revascularization). For more information, please visit the company's website at www.novadaq.com.

Forward-looking Statements
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 (including without limitation those related to the intellectual property and other assets acquired from Xillix). 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