CALGARY, Dec 4, 2001. Oncolytics Biotech Inc. (TSE: ONC, NASDAQ: ONCY) (Oncolytics) announced that it has successfully completed its first systemic toxicology study of multiple injections of REOLYSIN(R) in animals. 

The toxicology study examined the effects of 28 consecutive days of intravenous administration of REOLYSIN(R) in Sprague-Dawley rats. These studies were conducted in support of future systemic clinical trials that Oncolytics is currently planning. The results of the studies demonstrated that there were no significant adverse clinical outcomes as a result of the administration of the reovirus at any of the dose levels tested. 

'This study supports the planned clinical studies examining the efficacy and safety of REOLYSIN(R) when delivered systemically,' said Dr. Matt Coffey, Vice President Product Development of Oncolytics, 'The successful completion of this study underlies the strategic direction of moving this product from intratumoral clinical studies to systemic trials. Delivering REOLYSIN(R) systemically will increase the number of cancer indications that this product could potentially treat as well as allowing us to examine the effectiveness of the product against metastatic disease.

About Oncolytics Biotech Inc. 

Oncolytics is a Calgary-based biotechnology company focused on the development of the human Reovirus (REOLYSIN(R)), 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 derived from many types of cancer including breast, prostate, pancreatic and brain tumours. Research has also yielded successful cancer treatment results in a number of animal models. In November of 2000, Oncolytics entered into a worldwide licensing agreement with Pfizer Inc. for the development and marketing of the reovirus for animal health applications. 

This press release contains forward looking statements, within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. Forward looking statements, including the Company's belief as to the potential of REOLYSIN(R) as a cancer therapeutic, and the Company's expectations as to the timing and outcome of the anticipated systemic clinical trials, involve known and unknown risks and uncertainties, which 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 availability of funds and resources to pursue Research and Development projects, the efficacy of REOLYSIN(R) as a cancer treatment, the success and timely completion of clinical studies and trials, the Company's ability to successfully commercialize REOLYSIN(R), 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.