Oncolytics Biotech® Inc. Enters into Sponsorship Agreement with NCIC CTG for Randomized Phase II Study in Advanced and Metastatic Breast Cancers

CALGARY, June 21, 2012 /PRNewswire/ – Oncolytics Biotech Inc. (“Oncolytics”)
(TSX:ONC) (NASDAQ:ONCY) today announced that it has entered into an
agreement whereby the NCIC Clinical Trials Group (NCIC CTG) at Queen’s
University in Kingston, Ontario, will sponsor and conduct a randomized
Phase II study of REOLYSIN® in patients with advanced or metastatic breast cancer.

“We are excited to announce our fourth randomized study with the NCIC
CTG,” said Dr. Brad Thompson, President and CEO of Oncolytics. “This
study will build upon pre-clinical research conducted with REOLYSIN in
human breast cancer primary tumour samples.”

The study will be an open-label, randomized, non-blinded, Phase II
clinical study of REOLYSIN given in combination with paclitaxel versus
paclitaxel alone. Approximately 50 response-evaluable patients will be
enrolled in each arm, after a six- to nine-patient safety run-in.

About Breast Cancer
The Canadian Cancer Society estimates that 22,900 Canadians will be
diagnosed with breast cancer and 5,155 Canadians are expected to die
from the disease in 2012. The American Cancer Society estimates that
229,060 Americans will be diagnosed with breast cancer and 39,920 will
die from the disease in 2012.

About the NCIC Clinical Trials Group at Queen’s University
The NCIC Clinical Trials Group (NCIC CTG) is a cancer clinical trials
cooperative group that conducts Phase I-III trials testing anti-cancer
and supportive therapies across Canada and internationally. It is a
national research program of the Canadian Cancer Society. The NCIC
CTG’s Central Office is located at Queen’s University in Kingston,
Ontario, Canada

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 Company’s
expectations related to the Phase II breast cancer trial sponsored by
the NCIC CTG, and the Company’s belief as to the potential of REOLYSIN
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 as a cancer treatment, the tolerability of REOLYSIN outside a
controlled test, 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 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, except as required by applicable

SOURCE Oncolytics Biotech Inc.