Toronto, Ontario – February 8, 2006 Novadaq® Technologies Inc. (TSX: NDQ) announced today that it has signed an exclusive agreement with the University of Rochester, Rochester, New York, to license a broad portfolio of patents in the field of intra-operative fluorescence guided imaging of nerves, including image guided conventional and minimally invasive nerve-sparing radical prostatectomy. The agreement enables Novadaq to develop and globally commercialize the resulting proprietary nerve imaging technologies.

“The research team at the University of Rochester Medical Center (URMC) has been studying Novadaq’s fluorescence imaging technology as a unique approach to visualize nerves and we are extremely pleased to be partnering with such an innovative team,” said Dr. Arun Menawat, President and Chief Executive Officer of Novadaq Technologies Inc. “We are confident that the combination of this technology with our existing and commercially proven SPY® System in cardiac surgery, will provide us an opportunity to lead the way in medical imaging for urologic and other operating room procedures”.

Prostate cancer affects more than 1.8 million men in the United States alone. One in six will develop prostate cancer and more than a quarter of a million new cases are diagnosed each year. Radical prostatectomy, involving surgical removal of the entire prostate, is the most commonly prescribed treatment for prostate cancer and is associated with excellent survival rates. However, 50% of men undergoing radical prostatectomy will suffer erectile dysfunction (ED) following the procedure due to inadvertent damage to the nerve bundles located at either side of the prostate. The ability to image these nerves during prostate surgery by combining the newly licensed technologies and Novadaq’s existing fluorescence imaging technology, currently used to visualize arteries during cardiac surgery, may reduce nerve damage and typical side effects and more significantly, the possibility of erectile dysfunction.

“We are pleased to partner with Novadaq. The use of the same fluorescent agent as with the current SPY System for cardiac surgery applications, has allowed us to quickly and easily visualize nerves in the laboratory,” said Professor Edward M. Messing, M.D., Chairman, Department of Urology, University of Rochester School of Medicine & Dentistry. “We now look forward to researching the benefits of the SPY System in a clinical study”.

“Although the survival rates associated with prostate surgery are excellent, the side effects related to nerve damage during the procedure are difficult for most men to live with,” said Dr. Menawat. “Fluorescence image guided nerve sparing prostatectomy will address a huge unmet need and has the potential to significantly reduce impotence due to surgery and improve patient quality of life”.

About Novadaq Technologies

Novadaq Technologies (TSX: NDQ) develops and commercializes medical devices based on its proprietary imaging platform for the diagnosis and treatment of human vascular and ophthalmic diseases and conditions. Novadaq's SPY Intra-operative Imaging System enables surgeons to visually assess coronary vasculature and bypass graft functionality during the course of cardiac surgery. Novadaq's ophthalmic product, the OPTTX™ System, 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 OPTTX System is currently being evaluated in clinical trials.

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 additional information:

Arun Menawat
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