Novadaq@ Technologies Inc. (TSX: NDQ)(NASDAQ: NVDQ), a developer of

real-time imaging systems for use in the operating room, today

announced that the Centers for Medicare & Medicaid Services (CMS) has

established SPY Vascular Angiography as a new reimbursable service

under the Hospital Outpatient Prospective Payment System (OPPS).

Effective April 1, 2012, SPY is assigned to Ambulatory Payment

Classification (APC) 0397 Vascular Imaging.

"CMS has recognized SPY Imaging as a standalone reimbursable

procedure, which means that our products will become more accessible

to the hospital outpatient system," commented Dr. Arun Menawat,

Novadaq's President and Chief Executive Officer. "While most

procedures for our current SPY applications are performed in the

inpatient setting, we anticipate near term launches of our SPY Imaging

technologies into wound care and vascular procedures and PINPOINT into

minimally invasive surgeries that are frequently performed in

outpatient facilities. Each year, more than 1 million Americans

receive outpatient treatment for vascular diseases alone, including

patients with chronic lower extremity ischemia, non-healing wounds,

diabetic ulcers, pressure ulcers and peripheral vascular disease. For

these patients, visual assessment of blood flow and tissue perfusion

during procedures is critical to successful intervention, speedy

recovery and reduced possibility of complications."

About Novadaq Technologies Inc.

Novadaq primarily develops, manufactures and markets real-time

fluorescence imaging products that are designed for use by surgeons in

the operating room and other clinical settings where open, minimally

invasive or interventional surgical procedures are performed. The

Company's SPY@ Imaging core technology enables surgeons to visualize

blood flow in vessels, co-joined vessels and micro-vessels, and to

assess the quality of blood perfusion in tissue, without exposing the

patient to radiation. More than 50 peer-reviewed publications

demonstrate that the use of SPY Imaging 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 during a variety of open surgical

applications. The endoscopic version of SPY, which is branded

PINPOINT, combines the capabilities of SPY Imaging with high

definition ("HD") visible light visualization offered by conventional

endoscopes. The majority of Novadaq's current revenues come from

alliances formed with leading companies in relevant markets in which

SPY technology has been demonstrated to improve clinical outcomes in

open, minimally invasive and robotic surgery applications. Novadaq's

first alliance integrates SPY Imaging into the 3-D HD imaging

capabilities of the da Vinci@ Surgical Robotic System offered by

Intuitive Surgical@, Inc. The integrated system received FDA 510(k)

clearance in February 2011. In September 2010, Novadaq entered into an

exclusive North American sales and marketing alliance with LifeCell

Corporation, for SPY in open plastic and reconstructive,

gastrointestinal and head and neck surgeries. In November 30, 2011,

Novadaq signed exclusive, multi-year sales and marketing agreements

with Kinetic Concepts, Inc., for wound care applications and extended

its agreement with LifeCell for the commercialization of the SPY

System into vascular surgery. In addition, the SPY Imaging System for

cardiac applications is marketed directly, whereas the CO2 Heart

Laser for TMR is distributed by MAQUET Cardiovascular. For more

information, please visit the Company's website at

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, 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


Note: LifeCell Corporation is a business unit and trademark of

Kinetic Concepts, Inc. Intuitive Surgical and da Vinci are registered

trademarks of Intuitive Surgical.