Oncolytics Biotech Inc. Collaborators to Present Reovirus Research at ASGT Meeting

CALGARY, May 30 /PRNewswire-FirstCall/ – Oncolytics Biotech Inc. (TSX:
ONC, NASDAQ: ONCY) announced today that two presentations covering preclinical
work using the reovirus are scheduled to be delivered by Dr. Richard Vile of
the Mayo College of Medicine, Rochester, Minnesota, at the American Society of
Gene Therapy (ASGT) annual meeting in Boston, MA. The meeting runs from May 28
to June 1, 2008.

A poster presentation entitled “Combination Immunotherapy and Oncolytic
Virotherapy for the Treatment of Malignant Mesothelioma” is scheduled to be
presented on Friday, May 30, 2008. The poster covers preclinical work using
oncolytic viruses including reovirus against mesothelioma, a rare but deadly
cancer. In vitro data show that mesothelioma cells are sensitive to and
support replication of reoviruses. In addition, data suggesting how
anti-tumour immunity can be enhanced will be presented.

An oral presentation entitled “Purging Lymph Node Metastases with Adoptive
T Cell Therapy, Oncolytic Virotherapy and Immunotherapy” is scheduled to be
presented on Saturday, May 31, 2008. In many cancers, disease spreads to other
parts of the body via the lymph nodes. In this study, the investigators
demonstrated that normal T-cells pre-loaded with reovirus localize to lymph
nodes, spleen and liver and deliver the virus to sites of metastatic disease.
In addition, killing the tumour cells in the lymph nodes and spleen by
reovirus generated potent anti-tumour immunity, preventing repopulation of the
lymph nodes and spleen by further waves of cells spreading from the primary
tumour. The researchers are continuing to investigate methods of improving
virus delivery, and developing clinical protocols that will examine purging
lymph nodes of tumor cells using reovirus.

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 materials
presented at the ASGT 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.