Oncolytics Biotech Inc. Completes Patient Enrolment in U.K. Phase Ia/Ib Combination REOLYSIN(R)/Radiation Clinical Trial

CALGARY, Dec. 21 /PRNewswire-FirstCall/ – Oncolytics Biotech Inc.
(“Oncolytics”) (TSX:ONC, NASDAQ:ONCY) has completed patient enrolment in its
Phase Ia/Ib U.K. clinical trial investigating the intratumoural delivery of
REOLYSIN(R) in combination with radiation to treat patients with advanced
cancers. A total of 23 patients received a range of two to six intratumoural
doses of REOLYSIN(R) at escalating dosages up to a maximum of 1×10(10)
TCID(50) with a constant localized radiation dose of either 20 Gy or 36 Gy.
The treatment appears to have been well tolerated by the patients and results
in both local and remote anti-tumour activity in patients with a variety of
advanced cancers.

Interim results were presented at the National Cancer Research Institute
conference on October 2, 2007 in Birmingham, U.K. and at the AACR-NCI-EORTC
International Conference on Molecular Targets and Cancer Therapeutics in San
Francisco on October 24, 2007.

The primary objective of the trial is to determine the maximum tolerated
dose (MTD), dose limiting toxicity (DLT), and safety profile of REOLYSIN(R)
when administered intratumourally to patients receiving radiation treatment. A
secondary objective is to examine any evidence of anti-tumour activity.
Eligible patients include those who have been diagnosed with advanced or
metastatic solid tumours that are refractory (have not responded) to standard
therapy or for which no curative standard therapy exists.

The principal investigators for the trial are Dr. Kevin Harrington of the
Targeted Therapy Laboratory, Cancer Research UK Centre for Cell and Molecular
Biology, The Institute of Cancer Research and Honorary Consultant in Clinical
Oncology at The Royal Marsden NHS Foundation Trust, London, UK, and Dr. Alan
Melcher of the Cancer Research U.K. Clinical Centre at St. James’s University
Hospital in Leeds. The trial enrolled patients at the Royal Marsden and St.
James’s Hospitals in the U.K.

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 Company’s expectations related to
the Phase 1a/Ib U.K. combination REOLYSIN(R) and radiation clinical trial, 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 and uncertainties related to
the regulatory process. 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.