Oncolytics Biotech® Inc. Announces Reovirus Research to be Presented at AACR Annual Meeting

CALGARY, March 29, 2012 /PRNewswire/ – Oncolytics Biotech Inc. (“Oncolytics”)
(TSX:ONC) (NASDAQ:ONCY) announced today that abstracts of preclinical
research on reovirus (REOLYSIN®) are available on the American Association for Cancer Research (AACR)
website at www.aacr.org. The research is scheduled to be presented at the 2012 AACR Annual
Meeting in Chicago, IL, which takes place from March 31 to April 4,

“We are delighted to see that the research community has been embracing
preclinical research utilizing reovirus,” said Dr. Matt Coffey, Chief
Operating Officer of Oncolytics.  “This research helps us to continue
to refine our understanding of REOLYSIN’s mechanism of action, its
suitability for combination with other treatment modalities and its
potential for application to a growing range of potential cancer

The first abstract, entitled “Reovirus (REOLYSIN) as a potential therapy
for malignant peripheral nerve sheath tumors,” covers preclinical work
malignant in peripheral nerve sheath tumors (MPNST), a rare form of
soft tissue sarcoma. The results show that MPNST-derived cell lines
including sporadic MPNST without active Ras were efficiently
transduced, promoted virus replication and were killed by the oncolytic
reovirus. The poster is scheduled to be presented on Monday, April 2,

The second abstract, entitled “REOLYSIN: A novel reovirus-based agent
that induces endoplasmic reticular stress in RAS-activated pancreatic
cancer,” covers preclinical work done to better understand the
mechanisms associated with the synergies in this co-treatment approach.
The results demonstrate that the abnormal protein accumulation induced
by REOLYSIN and bortezomib promotes heightened ER stress and apoptosis
in pancreatic cancer cells.  The poster is scheduled to be presented on
Monday, April 2, 2012.

The third abstract, entitled “Oncolytic reovirus synergizes with
bortezomib and dexamethasone in overcoming therapy resistance of
multiple myeloma,” covers preclinical work done in therapy resistant
multiple myeloma (MM) cell lines. The investigators noted that highly
synergistic cytotoxicity was observed with reovirus and bortezomib in
both reovirus and drug resistant cell lines OPM2 and KMS-11 at all drug
combination ratios. Dexamethasone and reovirus treatment induced
synergy in OPM2 cells. The poster is scheduled to be presented on
Tuesday, April 3, 2012.

The fourth abstract, entitled “Serum regulates reovirus-mediated
cytopathy in K-Ras activated colorectal cancer and intestinal
epithelial cell lines,” covers the use of isogenic human-derived
colorectal cancer cell lines that differ only by the presence of mutant
Kras and normal rat intestinal epithelial cells (IEC) with inducible Kras to evaluate whether the presence of oncogenic Kras alters the sensitivity of colon cancer cells to reovirus.  The
investigators demonstrated that the activity of reovirus was observed
in all cell lines studied. Reduction in cell variability was greater in
Kras-mutant HCT116 compared to WT Hke3 cells. Consistently, induction of Kras in IEC cells increased the potency of reovirus. The poster is scheduled
to be presented on Tuesday, April 3, 2012.

The fifth abstract, entitled “Mammalian orthoreovirus downregulates
HIF-1α in hypoxic prostate tumor cells via RACK1-mediated proteasomal
degradation and translational inhibition,” was added as a late-breaking
abstract. The poster is scheduled to be presented on Tuesday April 3,

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. 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 implication of the
abstracts and materials presented on the AACR website and at this
meeting with respect to REOLYSIN, 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
tolerability of REOLYSIN outside a controlled test, 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 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,
except as required by applicable laws.

SOURCE Oncolytics Biotech Inc.