Oncolytics Biotech Inc. Collaborators to Present Phase II Sarcoma Trial Results at ASCO Annual Meeting

CALGARY, May 16 /PRNewswire-FirstCall/ – Oncolytics Biotech Inc. (TSX:
ONC, NASDAQ: ONCY) announced today that an abstract covering interim results
of a Phase II study of intravenous REOLYSIN(R) in patients with sarcomas
metastatic to the lung is available on the American Society of Clinical
Oncology (ASCO) website at www.asco.org and on the Oncolytics website at
www.oncolyticsbiotech.com. The abstract is entitled “A Phase II Study of
Intravenous REOLYSIN (Wild-type reovirus) in the Treatment of Patients with
Bone and Soft Tissue Sarcomas Metastatic to the Lung.” The abstract discusses
results of this study up to early January, 2008.

Dr. Monica Mita, Principal Investigator at the Cancer Therapy and Research
Center at the University of Texas Health Science Center (CTRC at UTHSC), San
Antonio, Texas and her team are scheduled to deliver a poster presentation
providing updated information on the trial at the 44th ASCO annual meeting,
which runs from May 30 to June 3, 2008 in Chicago, Illinois.

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/II 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 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 abstract and
materials presented on the ASCO website and at this meeting with respect to
REOLYSIN(R), the Company’s expectations related to the results of trials
investigating delivery of REOLYSIN(R), and the Company’s belief as to the
potential of REOLYSIN(R) 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(R) as a
cancer treatment, the success and timely completion of clinical studies and
trials, the Company’s ability to successfully commercialize REOLYSIN(R),
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.

SOURCE Oncolytics Biotech Inc.