Oncolytics Biotech® Inc. Enters into Commercial Supply Agreement with SAFC®

CALGARY, May 11 /PRNewswire/ – Oncolytics Biotech Inc. (TSX: ONC) (NASDAQ:
ONCY) (“Oncolytics” or the “Company”) today announced that it has
entered into a commercial supply agreement with SAFC, a Division of
Sigma-Aldrich Corporation, for the commercial manufacture of REOLYSIN®, Oncolytics proprietary reovirus. Under the terms of the agreement,
SAFC will perform process validation of the product, will continue to
supply clinical requirements and will supply commercial material upon
approval of the product.

“As a leading global provider of high-quality and reliable biologics
manufacturing services we are eager to work with companies focused on
bringing novel products to market,” said Gilles Cottier, President of
SAFC. “SAFC has worked closely with Oncolytics to develop, scale-up,
and optimize manufacturing of REOLYSIN, advancing it to the commercial

“This agreement represents a significant step forward in the drive to
commercialize REOLYSIN as we prepare to produce expanded clinical
supplies and build inventory for potential commercial sales,” said Dr.
Matt Coffey, Chief Operating Officer of Oncolytics. “Having worked with
a recognized world leader on the efficient manufacture of REOLYSIN for
several years now, we feel we are well positioned with this element of
our overall plan to commercialize REOLYSIN.”

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 3 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.

About SAFC
SAFC is the custom manufacturing and services business unit of
Sigma-Aldrich Corporation. It is recognized as a top 10 global fine
molecule supplier and trusted manufacturer of specialty chemicals and
biologics for the life science and high technology industries.
Utilizing global “Centers of Excellence” and dedicated manufacturing
facilities, SAFC’s capabilities enable it to resolve development and
manufacturing challenges and accelerate the production of custom
materials. SAFC’s rich portfolio includes high-purity inorganic
materials for high technology applications, cell culture products,
services for biopharmaceutical manufacturing and biochemical
production, and complex, multi-step organic synthesis of APIs and key
intermediates. For more information about SAFC, visit www.safcglobal.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
relationship with SAFC and the manufacture of REOLYSIN; 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.