Oncolytics Biotech Inc. Collaborators to Present Reovirus/Gemcitabine Combination Research at AACR Annual Meeting

CALGARY, March 13 /PRNewswire-FirstCall/ – Oncolytics Biotech Inc. (TSX:
ONC, NASDAQ: ONCY) announced today that an abstract covering preclinical work
using reovirus in combination with gemcitabine is available today on the
American Association for Cancer Research (AACR) website at www.aacr.org, and
on the Oncolytics website at www.oncolyticsbiotech.com. The abstract is
entitled “In Vivo Synergy between Oncolytic Reovirus and Gemcitabine in
Ras-Mutated Human HCT116 Xenografts.” The combination of reovirus and
gemcitabine was more effective than gemcitabine or reovirus alone at killing
human colon cancer cells in a mouse model.

“This exciting work demonstrates that existing, approved chemotherapies
like gemcitabine may enhance the anti-tumour activity of REOLYSIN(R), which
has been demonstrated previously to be active in both animals and humans when
used on its own,” said Matt Coffey, Chief Scientific Officer. “Moreover, this
important preclinical work supports our approved human clinical trial of this
drug combination and provides additional evidence that combination treatment
may lead to first-line therapy indications for REOLYSIN(R).”

A poster presentation covering more detailed information is scheduled to
be delivered at the AACR annual meeting which runs April 14-18, 2007 in Los
Angeles, CA. The poster will be delivered by Dr. Maureen E. Lane of the
Division of Hematology and Medical Oncology and Director, Clinical
Translational Research Core Laboratory at Weill Medical College of Cornell
University, New York.

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 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 AACR 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.