Oncolytics Biotech Inc. Treats 200th Cancer Patient in Clinical Studies with REOLYSIN(R)

– Company to Host Conference Call to Update Clinical Program –

CALGARY, July 14 /PRNewswire-FirstCall/ – Oncolytics Biotech Inc. (“Oncolytics”) (TSX:ONC, NASDAQ:ONCY) announced today that it has now enrolled and treated 200 cancer patients in clinical studies with REOLYSIN(R), its proprietary formulation of the human reovirus.

“The clinical program has gained substantial momentum in the past year, culminating in the treatment of our 200th patient this week,” said Dr. Brad Thompson, President and CEO of Oncolytics. “REOLYSIN(R) has been well tolerated by the patients, and has demonstrated activity in all trials reported on to date. Our current studies will allow us to design our pivotal program based on Phase II data from human clinical studies.”

Together with its collaborators, Oncolytics is now recruiting or enrolling patients in ten Phase I/II or Phase II clinical trials with REOLYSIN(R) in the U.S. and the U.K., and has permission to begin another Phase II trial in the U.S. These trials include four monotherapy trials using REOLYSIN(R) alone, and seven trials using REOLYSIN(R) in combination with radiation or chemotherapy.

Conference Call Details

Dr. Brad Thompson, President and CEO of Oncolytics, will host a conference call on Wednesday, July 16, 2008 at 11:30 a.m. MST (1:30 p.m. EST) to update investors on the Company’s current and future clinical program for REOLYSIN(R).

To access the conference call by telephone, dial 1-416-644-3414 or 1-800-733-7571. A live audio webcast will be available through the Company’s website at www.oncolyticsbiotech.com. Please connect at least 15 minutes prior to the webcast to ensure adequate time for any software download that may be needed. A replay of the webcast will be available at www.oncolyticsbiotech.com and will also be available by telephone through July 23, 2008. To access the telephone replay, dial 1-416-640-1917 or 1-877-289-8525 and enter reservation number 21277892 followed by the number sign.

About Oncolytics Biotech Inc.

Oncolytics is a Calgary-based biotechnology company focused on the development of oncolytic viruses as potential cancer therapeutics. Oncolytics’ clinical program includes a variety of Phase I/II and Phase II human trials using REOLYSIN(R), its proprietary formulation of the human reovirus, alone and in combination with radiation or chemotherapy. For further information about Oncolytics, please visit www.oncolyticsbiotech.com

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, 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 tolerability of REOLYSIN(R) outside a controlled test, 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 and uncertainties related to the regulatory process. 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.

SOURCE Oncolytics Biotech Inc.