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

CALGARY, Feb. 21, 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 recurrent or metastatic castration resistant prostate

“Third party sponsored trials remain an important part of our overall
clinical strategy. We are pleased to be conducting another randomized
study, especially in Canada, with an experienced and capable group like
the NCIC CTG,” said Dr. Brad Thompson, President and CEO of Oncolytics.
“This study will build on both our early preclinical and clinical
prostate cancer work, as well as our growing understanding of REOLYSIN
in combination with approved chemotherapeutic agents. As a Company we
continue to expand our clinical program to include 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 docetaxel versus
docetaxel alone. Approximately 40 response evaluable patients will be
enrolled in each arm.

About Prostate Cancer
The Canadian Cancer Society estimates that 25,500 Canadians were
diagnosed with prostate cancer and nearly 4,100 Canadians were expected
to die from the disease in 2011. The prognosis for patients diagnosed
with prostate cancer varies but the five-year survival rate for the
period between 2004 and 2006 was approximately 95%.

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 prostate 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.