Oncolytics Biotech® Inc. Enters into Sponsorship Agreement with NCIC CTG for Randomized Phase II Study in Colorectal Cancer

CALGARY, May 3, 2012 /PRNewswire/ – Oncolytics Biotech Inc. (“Oncolytics”)
(TSX:ONC, NASDAQ:ONCY) announced today that it has entered into an
agreement whereby the NCIC Clinical Trials Group (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 colorectal cancer.

“We are pleased to be conducting a second randomized study with the NCIC
CTG,” said Dr. Brad Thompson, President and CEO of Oncolytics. “This
study will build on both our early preclinical and clinical colorectal
cancer work, as well as preclinical research combining REOLYSIN with
Avastin®. As a Company, we intend to continue expanding our clinical program to
include randomized studies of frequently diagnosed cancers.”

The study will be an open-label, randomized, non-blinded, Phase II
clinical study of REOLYSIN given in combination with FOLFOX-6 plus
bevacizumab (Avastin) versus FOLFOX-6 plus bevacizumab alone.
Approximately 50 response evaluable patients will be enrolled in each
arm, after a six to nine patient safety run in.

About Colorectal Cancer
The Canadian Cancer Society estimates that 22,200 Canadians were
diagnosed with colorectal cancer and 8,900 Canadians were expected to
die from the disease in 2011. The American Cancer Society estimates
that 143,460 Americans will be diagnosed with colorectal cancer and
51,690 Americans are expected to die of 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
. The Group is committed to assessing all modalities of
therapy for a spectrum of cancer types. More than 60 member
institutions, from major cancer centres to community hospitals, enroll
patients in NCIC Clinical Trials Group studies.

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 colorectal 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.