Novadaq Reports Financial Results for the Third Quarter of 2008

Novadaq® Technologies Inc. (TSX: NDQ), a leading developer of real-time imaging and image guidance systems for use in the operating room, today announced its financial results for the third quarter ended September 30, 2008. In this press release, unless otherwise indicated, all dollar amounts are expressed in US dollars.

Q3-2008 Highlights

- SPY continued to gain:

-- SPY kits sales up 123% over Q3-2007 and up 41% from Q2-2008;

-- SPY capital sales up 37% over Q3-2007 but down sequentially in a difficult capital sales environment; and

-- 25 units placed.

- As projected, the FDA cleared the Company's new SPY analysis tools mid-quarter. These are a set of software that reside within the SPY device and provide surgeons with real time information, such as quantification of tissue perfusion and other important parameters, that they can use for immediate clinical decisions. The SPY analysis tools will be introduced commercially in January 2009

- Animal testing of the SPY scope continued to confirm the efficacy of SPY imaging in minimally invasive surgery applications. Human trials are scheduled in Q4-2008 and subsequent commercial launch in H1-2009.

Revenue increased 54% to $3,311,000 in Q3-2008 from $2,149,000 in Q3-2007. This was driven by year-over-year total revenue gains in all three of the Company's businesses primarily driven by increases in recurring revenues. Largely as a result of the Company's product mix continuing to move toward the higher margin SPY product set, the gross margin percentage increased to 52% in Q3-2008 compared to 43% in Q3-2007. Novadaq's Q3-2008 net loss was $4,066,000, or $0.17 per share, compared to $4,083,000, or $0.17 per share, in Q3-2007.

As at September 30, 2008, the Company had cash, cash equivalents and short-term investments of $6,946,000. The Company used cash of $3,417,107 in operations in Q3-2008 down from $4,190,783 in Q2-2008. This is reflective of ongoing cost containment actions.

"This is the fourth consecutive quarter where SPY disposable revenues have grown in double digits," commented Dr. Arun Menawat, Novadaq's President and Chief Executive Officer. "While SPY continues to capture the hearts and minds of thought leaders across multiple surgical disciplines, interest among plastic and reconstructive surgeons has been building with particular strength. We are maintaining our emphasis on the three A's of all successful new medical technology roll-outs - awareness, acceptance and adoption."

Conference Call

Novadaq is pleased to invite all interested parties to participate in a conference call today, November 13, at 10:00 a.m. Eastern Time during which these results will be discussed.

Those wishing to access the live conference call by telephone should dial 1-877-407-8033 (within Canada and the United States) or 201-689-8033 (international callers) several minutes prior to the beginning of the call. A telephonic replay of the conference call will be made available until November 27, 2008 at midnight and can be accessed by dialing 1-877-660-6853 (within Canada and the United States) or 201-612-7415 (international callers) and entering the account number 286 and the conference identification number 301976 when prompted.

The call will also be webcast live and 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 develops and commercializes real-time imaging and image guidance systems for use in the operating room. Novadaq's SPY® Imaging System uniquely enables surgeons to visualize blood vessels, tumors, tumor margins, blood flow and the lymphatic system in real-time during surgery. This core technology is now being applied to and across multiple surgical markets such as cardiac, plastic and reconstructive, urological, general, micro and transplant. The PINPOINT(TM) System for endoscopic autofluorescence imaging is Novadaq's first minimally invasive product. PINPOINT allows surgeons to differentiate between healthy and cancerous tissue in the lung and other hollow organs. Expanding its portfolio of minimally invasive products, Novadaq's SPY scope combines the typical features of a standard endoscope with the capabilities of SPY imaging. The SPY scope may unlock the full potential of certain minimally invasive surgeries by effectively addressing the limited field of vision that has until now constrained surgeons. Novadaq also leverages its core technology to offer the OPTTX® System, which is designed for the diagnosis, evaluation and treatment of wet Age-related Macular Degeneration (AMD). Novadaq is the exclusive United States distributor of PLC Medical's (CO)2 (HEART LASER(TM) System, which is used in the same cardiac procedures as the SPY Imaging) System. For more information, please visit the company's website at http://www.novadaq.com .