CALGARY, AB --- October 20, 2005 - Oncolytics Biotech Inc. (TSX: ONC, NASDAQ: ONCY) (“Oncolytics”) has been granted Canadian Patent 2,283,280 entitled “Reovirus for the treatment of neoplasia.” The claims describe the use of a reovirus for the manufacture of a medicament to treat Ras-mediated neoplasia as well as methods of treating various cancers by the administration of the reovirus.

“The claims in Oncolytics’ third Canadian patent provide additional coverage for the use of the reovirus in treating cancers,” said Dr. Matt Coffey, Chief Scientific Officer for Oncolytics. “This patent further broadens our patent coverage in Canada.”

About Oncolytics Biotech Inc.
Oncolytics is a Calgary-based biotechnology company focused on the development of REOLYSIN®, its proprietary formulation of the human reovirus, as a potential cancer therapeutic. Oncolytics’ researchers have demonstrated that the reovirus is able to selectively kill cancer cells and, in vitro, kill human cancer cells that are derived from many types of cancer including breast, prostate, pancreatic, bladder and brain tumours, and have also demonstrated successful cancer treatment results in a number of animal models. Phase I clinical trial results have indicated that REOLYSIN® was well tolerated and that the reovirus demonstrated activity in tumours injected with REOLYSIN®. Oncolytics has developed a strategy to pursue the licensing of its Canadian patents for research, development and commercial activities. Oncolytics has established a form and terms for licenses with individuals and institutions wishing to conduct academic research and will be negotiating appropriate licenses with individuals, institutions and companies involved in other activities in Canada. 

This news release contains forward looking statements, within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. Forward looking statements, including among others, the Company’s belief as to the importance of the issuance of this patent, the safety and efficacy of the reovirus, the Company’s expectations as to the potential applications of the patented technology and other statements relating to anticipated developments in the Company’s business and technologies, involve known and unknown risks and uncertainties that could cause the Company’s actual results to differ materially from those in the forward looking statements. Such risks and uncertainties include, among others, the efficacy of REOLYSIN® as a cancer treatment, the success and timely completion of clinical studies and trials, uncertainties related to the research and development of pharmaceuticals, uncertainties related to the regulatory process and general changes to the economic environment. Investors should consult the Company’s quarterly and annual filings with the Canadian and U.S. securities commissions for additional information on risks and uncertainties relating to the forward looking statements. Investors are cautioned against placing undue reliance on forward looking statements. The Company does not undertake to update these forward looking statements.