Oncolytics Biotech® Inc. Announces Common Share Offering

CALGARY, Feb. 19, 2013 /PRNewswire/ – Oncolytics Biotech Inc. (“Oncolytics”) (TSX:ONC; NASDAQ:ONCY) announced today its intention,
subject to market and other conditions, to commence an underwritten
public offering of common shares.  The number of common shares to be
distributed and the price of each common share will be determined in
the context of the market with final terms to be determined at the time
of pricing.

Piper Jaffray & Co. and Wedbush PacGrow Life Sciences will act as joint
book-running managers for the offering in the U.S. and Paradigm Capital
Inc. will act as co-manager in the U.S. and book-running manager in
Canada. The Company expects to grant the underwriters participating in
the offering a 30-day option to purchase up to an additional 15 percent
of the number of common shares sold pursuant to the offering to cover
over-allotments, if any. The offering is subject to market conditions,
and there can be no assurance as to whether or when the offering may be
completed, or as to the actual size or terms of the offering.

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 are being 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 proposed offering of common shares and 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 market conditions of the offering
and 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.