Oncolytics Biotech Inc. Announces Issuance of 18th U.S. Patent

CALGARY, Jan. 16 /PRNewswire-FirstCall/ – Oncolytics Biotech Inc. (TSX:
ONC, NASDAQ: ONCY) (“Oncolytics”) has been granted U.S. Patent 7,163,678
entitled “Reovirus for the Treatment of Ral-Mediated Cellular Proliferative
Disorders.” The claims describe using recombinant reoviruses for the treatment
of Ral-mediated neoplasms and non-cancer cellular proliferative diseases such
as neurofibromatosis.

“This patent expands our intellectual property portfolio to include
additional molecular mechanisms that can lead to reovirus susceptibility in
cancer cells,” said Dr. Matt Coffey, Chief Scientific Officer of Oncolytics.
“This patent expands the coverage of reovirus beyond Ras-mediated cancers and
other disorders.”

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 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 news release contains forward looking statements, within the meaning
of Section 21E of the Securities Exchange Act of 1934, as amended. Forward
looking statements, including among others, the Company’s belief as to the
importance of the issuance of this patent, the safety and efficacy of the
reovirus, the Company’s expectations as to the potential applications of the
patented technology and other statements relating to anticipated developments
in the Company’s business and technologies, involve known and unknown risks
and uncertainties that 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 efficacy of REOLYSIN(R) as a cancer
treatment, the success and timely completion of clinical studies and trials,
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.