H.I.G. Capital News

Contact:

Investor Relations:
Suzie Robinson, APR Novadaq
Technologies Inc. 972-488-6508
srobinson@novadaq.com

Novadaq Reports First Quarter 2010 Financial Results

TORONTO, ONTARIO - May 12, 2010 - Novadaq® Technologies Inc. (TSX: NDQ), a developer of real-time imaging systems for use in the operating room, today announced 2010 first quarter revenues of $2,419,408 compared to revenue of $3,014,000 in first quarter 2009. Recurring revenues for the SPY® System increased by 30% compared to Q1 2009 and by 22% compared to Q4 2009. Capital sales in Q1 2010 were $166,000 compared to $1,015,000 in the same period in 2009.

Financial Results
As at March 31, 2010, the Company had cash and cash equivalents of $7,967,770. The Company’s cash used in operating activities in Q1 2010, which included a further reduction in working capital, was $1,248,667 compared to $355,111 in Q1-2009. On February 19, 2010, the Company successfully completed a private placement, netting cash proceeds of $6,610,157 to assist in future cash requirements. Novadaq’s Q1-2010 net loss of $2,690,268 or $0.10 per share, compared to net loss of $2,471,360 or $0.10 per share in Q1-2009. Unless otherwise indicated, all dollar amounts expressed in this press release are United States (U.S.) dollars.

Comment
“The financial data reported today continues to reflect our sales model transition from capital sales to a focus on driving recurring revenues,” said Dr. Arun Menawat, Novadaq CEO and President. “Accomplishments over the past six months, which include gaining the support of key opinion leaders in plastic surgery such as those at Duke, Stanford, the Medical College of Illinois, Cleveland Clinic and Emory, confirm that the value proposition of SPY imaging is strong. We continue to be in dialog with multiple multinational companies to partner on sales and marketing, one of our key strategies to increase our market presence and further drive growth.”

Conference Call
Novadaq is pleased to invite all interested parties to participate in a conference call on May 12th, at
10:00 a.m. Eastern Time during which the results will be discussed.
To access the live audio webcast:
Please login 5-10 minutes prior to the event start time. Go to website: http://www.investorcalendar.com/IC/CEPage.asp?ID=157972 Select “1stQtr. 2010 Financial Results”, fill in login information, and then click ‘OK’ A pop-up window will open to display the audio web conference
To access the live conference call:
Live Participant Dial-In (Toll Free): (877) 407-0778 Live Participant Dial-In (International): (201) 689-8565 A telephonic replay of the conference call will be made available until midnight on 6/12/10 and can be accessed by dialing 1-877-660-6853 (within Canada and the United States) or 1-201-612-7415 (international callers) and entering the account number 286 and the conference identification number 350104 when prompted. The call will be archived for 365 days on the company’s website at http://www.novadaq.com under the "Events" tab in the Investors section. In addition, a replay of the call will be available for download to a portable audio player or computer, as an MP3 or podcast file, at the same location on Novadaq’s website.

About Novadaq Technologies Inc.
Novadaq Technologies develops and markets real-time fluorescence imaging technology products for use in the operating room. The company’s primary core technology platform, SPY Imaging, provides clinically relevant, anatomic and physiologic images during a variety of complex open and minimally invasive surgical (MIS) procedures. SPY empowers surgeons treating life threatening diseases to more effectively treat vascular blockages; assess tissue perfusion; identify cancerous tumors and delineate margins; and visualize relevant lymph nodes for removal. More than 30 peer-reviewed publications demonstrate that SPY imaging leads to fewer post-operative complications and reduced hospital costs. The endoscopic SPY system (a SPY scope) combines all of the capabilities of SPY imaging with state-of- the- art high definition (HD) white light visualization offered by conventional endoscopes. The company’s key markets include plastic reconstructive, gastrointestinal, cardiac and general surgery. To realize the full potential of its technology platform, Novadaq explores technology alliances. Novadaq announced its first alliance with Intuitive Surgical Inc. in January 2009, to integrate SPY imaging into the 3-D HD imaging capabilities of the da Vinci® Surgical Robotic System. In addition, Novadaq is the exclusive United States distributor of PLC Medical’s CO2 HEART LASER System. For more information, please visit the company's website at http://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. The closing of the private placement of the units described in this press release is subject to customary conditions precedent, including regulatory approval, and therefore there is a risk that the private placement of the units will not close. 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, results of future clinical tests of the SPY Imaging System and SPY scope, 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.