Oncolytics Biotech® Inc. Announces Closing of Common Share Offering

CALGARY, Feb. 25, 2013 /PRNewswire/ – Oncolytics Biotech Inc. (“Oncolytics”) (TSX:ONC; NASDAQ:ONCY) announced today that it has closed
its previously announced underwritten public offering of 8.0 million
common shares, at a public offering price of US$4.00 per common share. 
The aggregate gross proceeds from the offering, before deducting
underwriting discounts and commissions and offering expenses payable by
Oncolytics, were approximately US$32.0 million.

The offering was conducted by Piper Jaffray & Co. and Wedbush PacGrow
Life Sciences acting as joint book-running managers for the offering in
the U.S. and Paradigm Capital Inc. acting as co-manager in the U.S. and
book-running manager in Canada.

The Company has granted to the underwriters participating in the
offering a 30-day option to purchase up to an additional 1.2 million
common shares to cover over-allotments, if any.

Oncolytics intends to use the net proceeds from the offering to fund its
clinical trial program, manufacturing program and for general corporate
and working capital purposes.

The common shares were offered in each of the Canadian provinces of
British Columbia, Alberta, Manitoba and Ontario by way of a prospectus
supplement to the Company’s base shelf short form prospectus and in the
United States
pursuant to a prospectus supplement to the Company’s
effective shelf registration statement on Form F-10 (333-182260)
previously filed with the United States Securities and Exchange
Commission. Copies of the prospectus supplement and accompanying base
prospectus relating to the offering may be obtained from the Securities
and Exchange Commission website at http://www.sec.gov, from the System for Electronic Document Analysis and Retrieval (SEDAR)
website at http://www.sedar.com or from the underwriters at:

Piper Jaffray & Co.
800 Nicollet Mall, J12S03, Minneapolis, MN 55402
Email: prospectus@pjc.com
Telephone: (800) 747-3924

Wedbush Securities Inc.
One Bush Street, 17th floor, San Francisco, CA 94104,
Attn:  SF Prospectus Department
Phone: 415-274-6819
Fax: 415-274-6887

Before you invest, you should read the prospectus supplement and
accompanying prospectus, the registration statement, and the other
documents that the Company has filed with the Securities and Exchange
Commission for more complete information about the Company and this

This press release does not and shall not constitute an offer to sell or
the solicitation of an offer to buy any of the securities, nor shall
there be any sale of the securities in any state or jurisdiction in
which such offer, solicitation or sale would be unlawful prior to
registration of qualification under the securities laws of any state or

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 human trials
including a Phase III trial in head and neck cancers using REOLYSIN®, its proprietary formulation of the human reovirus.

This press release contains forward-looking statements within the
meaning of the U.S. Securities Act of 1933, as amended, and U.S.
Securities Exchange Act of 1934, as amended, and forward-looking
information within the meaning of Canadian securities laws. Statements,
other than statements of historical facts, included in this press
release that address activities, events or developments that Oncolytics
expects or anticipates will or may occur in the future, including such
things as the intended use of proceeds and other such matters are
forward-looking statements and forward-looking information and 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 and forward-looking information. Such risks
and uncertainties include, among others, risks related to the Company’s
business which may result in the intended use of proceeds changing.
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
statement and forward-looking information. Investors are cautioned
against placing undue reliance on forward-looking statements and
forward-looking information. The Company does not undertake to update
these forward-looking statements and forward-looking information,
except as required by applicable laws.

SOURCE Oncolytics Biotech Inc.