• August 12, 2010
  • North America

Novadaq Reports Second Quarter 2010 Financial Results

TORONTO, ONTARIO – August 12, 2010 – Novadaq® Technologies Inc. (TSX: NDQ), a developer of real-time imaging systems for use in the operating room, today announced 2010 second quarter revenues of $2,647,000 compared to revenues of $1,699,000 in second quarter 2009. Sales of SPY products were $1,627,000 (excluding engineering services on a development contract) representing an increase of 125% compared to Q2-2009 and 62% compared to Q1-2010.

Financial Results
As at June 30, 2010, the Company had cash and cash equivalents of $5,427,000. The Company‟s cash used in operating activities in Q2-2010 was $2,367,000 compared to $376,000 in Q2-2009. Novadaq‟s Q2-2010 net loss of $3,524,000 or $0.13 per share, compared to net loss of $3,358,000 or $0.14 per share in Q2-2009. The Q2-2010 loss among other items included a one-time non-cash inventory write-down of $427,000. Unless otherwise indicated, all dollar amounts expressed in this press release are United States (U.S.) dollars.

Comment
“Our continued focused on driving the adoption of SPY in key opinion leading plastic surgery centers throughout the United States resulted in our best sales quarter overall for SPY” said Dr. Arun Menawat, Novadaq CEO and President. “In addition, CMS recently announced that on October 1, 2010, a new ICD-9-CM procedure code describing the use of SPY in non-coronary surgical applications such as plastic reconstruction surgery will go into effect. As the momentum continues to build, we expect to announce our broader commercialization strategy by the end of the third quarter.”

Conference Call
Novadaq is pleased to invite all interested parties to participate in a conference call on August 12, 2010 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=160767
Select “2nd Qtr. 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) 407-8033
Live Participant Dial-In (International): (201) 689-8033

A telephonic replay of the conference call will be made available until midnight on 9/12/10 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 354599 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. 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.

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