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CALGARY, AB, --- November 23, 2004 - Oncolytics Biotech Inc. (“Oncolytics”) (TSX:ONC, NASDAQ:ONCY) announced today that it has closed its previously announced bought deal financing and issued 1,504,000 units, at $6.65 per unit, with each unit consisting of one common share and one-half of one common share purchase warrant, for aggregate gross proceeds of approximately $10 million. Each whole common share purchase warrant entitles the holder to acquire, on or before November 23, 2007, one common share of Oncolytics upon payment of $8.00 per share. 

Canaccord Capital Corporation acted as underwriter in connection with the financing and received a commission of 7.5% of the gross proceeds and was issued 112,800 warrants, each warrant entitling the holder to acquire, on or before, May 23, 2006, one common share of Oncolytics upon payment of $7.06 per share. Oncolytics will use the proceeds from this financing to expand and accelerate its clinical trial programs and for general corporate purposes.

After giving effect to this transaction, Oncolytics has 31,153,871 common shares issued and outstanding.

The securities issued by Oncolytics have not and will not be registered under the United States Securities Act of 1933, as amended (the “1933 Act”), or the securities laws of any state of the United States, and may not be offered or sold in the United States absent registration or an applicable exemption therefrom under the 1933 Act and the securities laws of all applicable states. 

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 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®.

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 expectations related to progress in the clinical trial programs and the Company’s belief as to the potential of REOLYSIN® as a cancer therapeutic, 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® as a cancer treatment, the success and timely completion of clinical studies and trials, the Company’s ability to successfully commercialize REOLYSIN®, 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.