Oncolytics Biotech® Inc. Collaborators Present Positive REOLYSIN® Clinical Trial Results at the 14th World Conference on Lung Cancer

CALGARY, July 6, 2011 /PRNewswire/ – Oncolytics Biotech Inc. (TSX:ONC,
NASDAQ:ONCY) (“Oncolytics”) today announced that a presentation
covering interim preliminary results from a Phase 2 clinical trial
using intravenous administration of REOLYSIN® in combination with paclitaxel and carboplatin in patients with
non-small cell lung cancer (NSCLC) with Kras or EGFR-activated tumours was made today at the International
Association for the Study of Lung Cancer World Conference on Lung
Cancer. The conference is being held in Amsterdam, the Netherlands from
July 3rd – 7th 2011.

The presentation, entitled “Phase II study of reovirus with paclitaxel
(P) and carboplatin (C) in patients with metastatic non-small cell lung
cancer (NSCLC) who have Kras or EGFR-activated tumors”, was given by Dr. Miguel Villalona-Calero,
principal investigator for the study, and indicated that 22 patients
had received Reovirus (REOLYSIN) (3 x 1010 TCID50) intravenously daily on days one to five, in combination with
carboplatin and paclitaxel. Initial doses used were carboplatin AUC 6
on day one, and palitaxel 200 mg/m2, on day one of each 21-day cycle. Due to exacerbation of prior
gastrointestinal conditions and febrile neutropenia (one each) in the
first two patients, doses were reduced to paclitaxel 175 mg/m2 and carboplatin AUC 5.

To date the study has enrolled patients with Adenocarcinoma (15),
Squamous Cell Carcinoma (three), Bronchioloalveolar Carcinoma (one),
and not otherwise specified non-small cell lung cancer (three).
Molecular tumor demographics included: nine Kras mutant, three EGFR mutant, 16 EGFR amplified. Response evaluation to
date in 21 patients showed six partial responses (PR) (28.6%), 13
stable disease (SD) (61.9%), two progressive disease (PD) (9.5%). This
translates into a clinical benefit rate (complete response (CR)+PR+SD)
of 90.5% and a response rate (CR+PR) of 28.6%. The investigators noted
that the clinical benefit noted so far is encouraging and that a follow
up randomized clinical trial appears warranted.

“The patient response and clinical benefit rates observed in this trial
are very encouraging.  We will decide which lung cancer indication will
proceed into a randomized clinical study based on this data and the
data we expect from our ongoing Phase II trial in squamous cell
carcinoma lung cancer,” said Dr. Brad Thompson, President and CEO of

The full presentation is available on the Company’s website at www.oncolyticsbiotech.com.

Conference Call Details

Dr. Brad Thompson, President and CEO of Oncolytics, will host a
conference call and webcast on Wednesday, July 6th, 2011 at 6:30 a.m. MT (8:30 a.m. ET) to discuss in more depth the
presentation covering the Phase II NSCLC data. To access the conference
call by telephone, dial 1-647-427-7450 or 1-888-231-8191. A live audio
webcast will also be available at the following link: http://www.newswire.ca/en/webcast/viewEvent.cgi?eventID=3563560 or 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 13th, 2011. To access the telephone replay, dial 1-416-849-0833 or
1-800-642-1687 and enter reservation number 78454074 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 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
materials to be presented at the IASLC 14
th World Conference on Lung Cancer with respect to REOLYSIN; the Company’s
belief as to the potential of REOLYSIN as a cancer therapeutic; the
Company’s expectations as to the success of its research and
development programs in 2011 and beyond, the Company’s planned
operations, the value of the additional patents and intellectual
property; the Company’s expectations related to the applications of the
patented technology; the Company’s expectations as to adequacy of its
existing capital resources; the design, timing, success of planned
clinical trial programs; and other statements related to anticipated
developments in the Company’s business and technologies 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 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, uncertainties
related to the regulatory process and general changes to the economic
environment.  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.