Oncolytics Biotech® Inc. Meets Primary Endpoint for First Stage of U.S. Phase 2 Squamous Cell Lung Cancer Clinical Trial

CALGARY, Sept. 13, 2012 /PRNewswire/ – Oncolytics Biotech Inc. (“Oncolytics”)
(TSX:ONC ) (NASDAQ:ONCY) today announced preliminary results from its
U.S. Phase 2 clinical trial in patients with squamous cell carcinoma of
the lung (SCCLC) using intravenous administration of REOLYSIN® in combination with carboplatin and paclitaxel (REO 021). The Principal
Investigator is Dr. Alain Mita of Cedars-Sinai Medical Centre in Los
Angeles, CA.

Eligible patients include those with metastatic stage IIIB, or stage IV,
or recurrent squamous cell carcinoma of the lung who are chemotherapy
naïve for their metastatic or recurrent cancer. The primary objective
of the Phase 2 trial is to assess the antitumor effect of the treatment
regimen in the study population in terms of objective response rates.
The secondary objectives are to assess progression-free survival and
overall survival for the treatment regimen in the study population; to
determine the proportion of patients receiving the above treatment who
are alive and free of disease progression at six months; and to assess
the safety and tolerability of the treatment regimen in the study

The study is a two stage design. Up to 19 evaluable patients with SCCLC
were to be treated in the first stage. If four or more patients
demonstrated a partial response (PR) or better, the study would then
proceed to the second stage, with up to 55 patients being treated in
the entire study. This endpoint was met after 15 evaluable patients
were enrolled.  Five of 15 patients showed PR, four confirmed, one
unconfirmed, and an additional eight patients had stable disease (SD),
for a disease control rate (complete response (CR) + PR + SD)) of 87%. 
The Company is proceeding with the second stage of the study.

“These preliminary results are encouraging and further supportive of the
decision to conduct a randomized Phase II study examining REOLYSIN in
non-small cell lung cancer (NSCLC) patients including those with
SCCLC,” said Dr. Brad Thompson, President and CEO of Oncolytics.
“Oncolytics Phase II program continues to grow and now includes
randomized trials in six separate indications.”

About SCC Lung Cancer

The American Cancer Society estimates that in 2012, approximately
226,160 new cases of lung cancer will be diagnosed. Between 85% and 90%
of all lung cancers are classified as non-small cell lung cancer
(NSCLC); squamous cell carcinomas account for 25-30% of all lung
cancers. Lung cancer is by far the leading cause of cancer death among
both men and women. There will be an estimated 160,340 deaths from lung
cancer in the United States in 2012, accounting for around 28% of all
cancer deaths. More people die of lung cancer than from colon, breast,
and prostate cancers combined. For more information about SCC lung
cancer, please go to www.cancer.org.

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 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 U.S. Phase II squamous cell carcinoma lung
cancer trial, 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.