TORONTO, ONTARIO--(Marketwire - May 4, 2012) - Novadaq^® Technologies Inc. ("Novadaq" or the "Company") (TSX:NDQ)(NASDAQ:NVDQ), a developer of clinically-relevant fluorescence imaging solutions for use in surgical procedures, today announced financial results for its first quarter ended March 31, 2012. Unless otherwise indicated, all dollar amounts in this press release are expressed in United States (U.S.) dollars.

"We are focused on building a sustainable business model based on partnering our SPY fluorescence imaging technology for certain surgical applications with market leading companies and commercializing, on our own, new systems such as PINPOINT^® for endoscopic surgery," commented Dr. Arun Menawat, Novadaq's President and CEO.

"The combined installed base of SPY technology in the United States now exceeds 400 systems, and 3,100 open SPY procedure kits were shipped during the first quarter of 2012, increasing SPY recurring revenues by 180% year-over-year. Additionally, with the recent completion of the $40.3 million equity financing, and by sponsoring a multi-center clinical trial called PILLAR™, we have taken the initial steps towards the commercialization of PINPOINT," added Dr. Menawat.

First Quarter Corporate Highlights

• Novadaq shipped 120 SPY Elite^® and FIREFLY systems during the first quarter. At March 31, 2012, the number of US hospitals with installed SPY and FIREFLY systems exceeded 400.
• 3,100 SPY kits for open surgical procedures were shipped to hospitals during the first quarter, representing a 163% increase over the same period in 2011, and a 15% sequential increase compared with Q4-2011.
• In January, Novadaq named MAQUET Cardiovascular as the exclusive US distributor of Novadaq's CO2 Heart Laser products.
• In March, Novadaq announced that its common shares were approved for listing on the NASDAQ Global Market (NASDAQ) under the ticker symbol "NVDQ."
• Also in March, the Company announced that the Centers for Medicare & Medicaid Services established SPY Vascular Angiography as a new reimbursable service under the Hospital Outpatient Prospective Payment System, effective April 1, 2012.
• Prior to the end of the quarter, Novadaq initiated the multi-center PILLAR (Perfusion Assessment in Laparoscopic Left Anterior Resection) clinical trial, which will study the use of PINPOINT endoscopic fluorescence imaging in up to 150 patients undergoing laparoscopic left colectomies. Details of the study can be found at: www.clinicaltrials.gov, searching identifier NCT01560377.

Financial Highlights

• Total revenues in the first quarter were $4.8 million, a 103% increase compared to $2.3 million in the same period in 2011, due mainly to increased sales of systems and procedure kits across both of our commercial SPY businesses (SPY Elite and FIREFLY). Total revenues decreased sequentially by $228,000 in comparison to Q4-2011 due to seasonality in SPY Elite capital sales, and lower TMR revenues.
• First quarter recurring revenues for our SPY businesses totaled $2.1 million, representing year-over-year growth of 180% compared to Q1-2011, and sequential growth of 16% compared to Q4-2011.
• Operating burn (cash used in operating activities before changes in working capital) was close to break-even at $0.08 million in the first quarter. Excluding the impact of NASDAQ registration fees, operations would have contributed $0.2 million. This compares with operating burns of $1.8 million for the same period in 2011, and $0.03 million in Q4-2011. Working capital contributed $0.6 million during the first quarter 2012, and $1.9 million was invested, including $1.8 million to build the SPY Elite installed base.
• At March 31, 2012, cash and cash equivalents totaled $7.9 million, and 32.8 million basic shares were outstanding. Subsequent to the end of the quarter, the Company raised $40.3 million by way of an underwritten equity offering (net proceeds approximately $36.9 million), issuing 7,015,000 shares at a price of $5.75 per share.

Conference Call

Novadaq is pleased to invite all interested parties to participate in a conference call today, Friday, May 4, 2012, at 8:30 a.m. Eastern Time during which the results will be discussed.

Those wishing to access the live conference call by telephone should dial 1-877-407-8031 (within Canada and the United States) or 1-201-689-8031 (international callers) several minutes prior to the beginning of the call. A telephonic replay of the conference call will be made available until midnight on June 4, 2012 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 388170 when prompted.

The call will be archived for 90 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.

Enabling surgeons with clinically-relevant, innovative fluorescence imaging solutions to enhance the lives of patients and their surgeons, while reducing health care costs, is Novadaq's global mission. SPY fluorescence imaging technology provides surgeons with real-time visualization, leading to improved outcomes and reduced costs without exposing the patient to radiation. More than 50 peer-reviewed publications demonstrate that the use of SPY during complex surgery, leads to fewer post-operative complications and lower hospital costs.

The SPY Imaging System is United States Food and Drug Administration ("FDA") 510(k) cleared for use for use in seven surgical specialties. The endoscopic version of SPY called PINPOINT™, combines the capabilities of SPY Imaging with high definition ("HD") visible light visualization offered by conventional endoscopes. Our unique business model of partnering with market-leading companies to drive adoption of our fluorescence imaging technology, while building our own commercial infrastructure is the cornerstone of our corporate strategy for growth.

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, the Company's strategy, strategic goals, research and development activities, research and clinical testing outcomes, taxes, capital expenditures, future operations, future financial position, future revenues/results, projected costs, prospects and plans and objectives of management.

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 available at www.sedar.com, 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.

Novadaq Technologies Inc.

INTERIM CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

(expressed in U.S. dollars)

		As at March 31, 2012			As at December 31, 2011
ASSETS
Current assets
	Cash and cash equivalents	$	7,894,253		$	9,633,608
	Accounts receivable		2,145,413			2,018,782
	Prepaid expenses and other		1,508,354			829,625
	Inventories		2,249,449			1,755,729
Non-current assets
	Property and equipment		7,500,057			6,034,674
	Deferred tax assets		222,546			248,640
	Intangible assets		1,977,681			2,272,434
Total Assets		$	23,497,753		$	22,793,492
LIABILITIES AND SHAREHOLDERS' EQUITY (DEFICIENCY)
Current liabilities
	Accounts payable and accrued liabilities		4,341,377		$	2,485,994
	Provisions		41,620			41,300
	Deferred revenue		450,238			396,859
	Deferred partnership fee revenue		1,300,000			1,300,000
	Repayable government assistance		202,556			197,760
Non-current liabilities
	Deferred tax liabilities		222,546			248,640
	Convertible debentures		4,327,830			4,223,454
	Deferred revenue		164,357			188,883
	Deferred partnership fee revenue		4,266,666			4,591,666
	Repayable government assistance		169,175			214,402
	Shareholder warrants		11,876,354			8,278,105
Total Liabilities		$	27,362,719		$	22,167,063
Shareholders' (Deficiency) Equity
	Share capital	$	98,825,650		$	98,695,023
	Contributed surplus		6,895,159			6,772,298
	Equity component of convertible debentures		1,454,353			1,454,353
	Deficit		(111,040,128	)		(106,295,245	)
Total Shareholders' (Deficiency) Equity		$	(3,864,966	)	$	626,429
Total Liabilities and Shareholders' (Deficiency) Equity		$	23,497,753		$	22,793,492

Novadaq Technologies Inc.

INTERIM CONSOLIDATED STATEMENTS OF LOSS AND COMPREHENSIVE LOSS

(Unaudited)

(expressed in U.S. dollars)

	For the three months ended
	March 31, 2012			March 31, 2011
Product sales	$	3,654,045		$	1,735,892
Royalty revenue		608,083			-
Deferred licensing revenue		325,000			200,000
Service revenue		180,247			404,938
Total revenues	$	4,767,375		$	2,340,830
Cost of sales		2,045,537			1,257,057
Gross margin	$	2,721,838		$	1,083,773
Selling and distribution costs	$	1,063,487		$	1,275,219
Research and development expenses		1,161,731			1,048,128
Administrative expenses		1,470,950			1,112,784
Total operating expenses	$	3,696,168		$	3,436,131
Loss from operations before the following	$	(974,330	)	$	(2,352,358	)
Finance costs	$	(172,731	)	$	(167,578	)
Finance income		427			7,085
Shareholder warrants revaluation adjustment		(3,598,249	)		4,307
Gain on investment		-			25,000
Loss and comprehensive loss for the period	$	(4,744,883	)	$	(2,483,544	)
Basic and diluted loss and comprehensive loss per share for the period	$	(0.15	)	$	(0.09	)

Novadaq Technologies Inc.

INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

(expressed in U.S. dollars)

			For the three months ended
			March 31, 2012			March 31, 2011
OPERATING ACTIVITIES
	Loss and comprehensive loss for the period		$	(4,744,883	)	$	(2,483,544	)
	Items not affecting cash
		Depreciation of property and equipment		418,182			192,210
		Amortization of intangible assets		294,753			235,183
		Stock-based compensation		253,488			205,020
		Finance costs, including imputed interest on convertible debentures		104,376			96,760
		Warrants revaluation adjustment		3,598,249			(4,307	)
			$	(75,835	)	$	(1,758,678	)
	Changes in non-cash working capital balances
		(Decrease) increase in deferred revenue	$	40,387			323,772
		(Increase) decrease in accounts receivable		(126,631	)		322,895
		Increase in inventories		(493,720	)		(799,410	)
		Increase in accounts payable and accrued liabilities		1,845,432			627,129
		Decrease (increase) in prepaid expenses and other		(652,635	)		438,812
	Net change in non-cash working capital balances related to operations		$	612,833		$	913,198
	(Decrease) increase in long term deferred revenue			(357,650	)		(239,148	)
	Cash provided by (used in) operating activities		$	179,348		$	(1,084,628	)
INVESTING ACTIVITIES
	Additions to property and equipment		$	(1,913,282	)	$	(749,265	)
	Disposals of property and equipment			29,717			27,409
	Purchase of TMR business			-			(1,000,000	)
Cash used in investing activities			$	(1,883,565	)	$	(1,721,856	)
FINANCING ACTIVITIES
	Issuance of common shares and warrants			-		$	15,278,447
	Transaction costs of common shares and warrants			-			(998,207	)
	Repayable government assistance		$	(40,431	)		-
Cash (used in) provided by financing activities			$	(40,431	)	$	14,280,240
Net (decrease) increase in cash and cash equivalents during the period			$	(1,744,648	)	$	11,473,756
Net foreign exchange difference				5,293			38,775
Cash and cash equivalents at beginning of period				9,633,608			5,597,407
Cash and cash equivalents at end of period			$	7,894,253		$	17,109,938

FOR FURTHER INFORMATION PLEASE CONTACT:

David C. Martin
Investor and Media Relations: Novadaq Technologies Inc.
Vice President, Corporate Development and Investor Relations
905-629-3822 ext: 218
dmartin@novadaq.com
www.novadaq.com