Novadaq Acquires License For U.S Rights To AMD Technology.

Business Editors

TORONTO--(BUSINESS WIRE)--Dec. 16, 2002

Novadaq(TM) Technologies Inc., today announces that it has signed an exclusive agreement with The Johns Hopkins University Applied Physics Laboratory (APL), Laurel, Maryland, to license a patented method for the diagnosis and treatment of "wet" type Age Related Macular Degeneration (AMD) for the United States. AMD is a progressive eye disease causing vision loss in 6 million Americans and millions more around the world. Novadaq now owns the exclusive worldwide rights to this technology. The multi-year licensing agreement enables Novadaq to develop the technology and distribute the resulting product in the United States.

AMD is the number one cause of legal blindness amongst adults over the age of sixty in the Western world, and as the population ages, it is expected there will be a virtual epidemic of AMD. Worldwide, approximately 500,000 new cases of wet AMD are diagnosed annually, and approximately 200,000 of those are diagnosed in North America.

The debilitating disease attacks the macula of the eye, where sharpest central vision occurs. In "wet" type macular degeneration, abnormal vessels (known as choroidal neovascularization, or CNV) grow under the retina in the area of the macula. These newly grown vessels may then bleed and leak fluid, causing the retina to bulge or lift up, thus distorting or destroying the clear "straight on" vision that is required for performing common daily activities, such as reading and driving.

"The debilitating effects of this disease greatly reduce the ability of individuals to lead normal and productive lives. Patients can lose their independence and normal day to day activities can be greatly limited," states Mr. Rick Mangat, President of Novadaq.

Novadaq is currently developing a laser-based device, which will enable physicians to assess areas of abnormality at the back of the eye and detect the feeder vessels which supply blood to the CNV. Furthermore, the technology will allow physicians to apply treatment by accurately aiming the photocoagulating laser onto the abnormal feeder vessels, thereby effectively sealing the vessels and preventing blood flow to the CNV.

"Novadaq is extremely pleased to now have acquired the worldwide rights to this technology developed at Johns Hopkins," says Mangat. "We are confident that the development of this application will lead to improved care for patients with the wet form of AMD worldwide."

Novadaq's system optimizes the principle of feeder vessel photocoagulation (FVP) as practiced by many ophthalmic surgeons. It is intended that treatment with the Novadaq system will halt the deterioration of vision caused by AMD and possibly improve vision significantly. Novadaq is currently developing devices for both the U.S. and international markets and it is planned that the first iteration be ready in 2003.

About Novadaq

Novadaq Technologies, a privately held company, was founded in April 2000 and is a spin-off from the National Research Council's Institute for Biodiagnostics in Winnipeg, Manitoba. Novadaq has received CE Marking and Health Canada approval for their first product, a revolutionary intra-operative imaging system for cardiac surgery. The Novadaq SPY(TM) Intra-operative Imaging System enables cardiac surgeons to simply and efficiently confirm proper placement of their coronary artery bypass grafts and assess the functionality of those grafts while the patient is still on the operating room table.

Novadaq's corporate offices are in Toronto, Ontario with research and development offices in Winnipeg, Manitoba and global sales offices in the Netherlands and the UK.