Oncolytics Biotech® Inc. Collaborators to Present Reovirus Research at the 14th World Conference on Lung Cancer

CALGARY, June 8, 2011 /PRNewswire/ – Oncolytics Biotech Inc. (TSX:ONC), (NASDAQ:ONCY)
(“Oncolytics”) today announced that an abstract 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 is available on the International Association
for the Study of Lung Cancer World Conference on Lung Cancer website at
http://www.2011worldlungcancer.org/index.html. The conference is being held in Amsterdam, the Netherlands from July 3rd – 7th 2011.

The abstract, 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”, authored by Villalona-Calero et al, indicated that as of the date of submission of the abstract 21
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 first
two patients, doses were reduced to paclitaxel 175 mg/m m2 and carboplatin AUC 5. Overall, 85 cycles (per patient median four,
range one to eight) were administered. Grade 3-4 adverse events
included grade 4 neutropenia (four patients), anemia, fatigue,
electrolyte abnormalities, diarrhea, (two patients), and single cases
of nausea, vomiting, and sepsis. Molecular tumor demographics included:
eight Kras mutant, three EGFR mutant, 15 EGFR amplified. Response evaluation to
date in 20 patients showed six partial responses (PR) (30%), 12 stable
disease (SD)(60%), two progressive disease (PD)(10%). This translates
into a clinical benefit rate (complete response (CR)+PR+SD) of 90% and
a response rate (CR+PR) of 30%.

“Although preliminary, this data is very encouraging. Once we have data
from our ongoing Phase II trial in squamous cell carcinoma lung cancer,
we will decide which lung cancer indication will proceed into a
randomized clinical study,” said Dr. Brad Thompson, President and CEO
of Oncolytics.

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.