Oncolytics Biotech Inc. Research Collaborators Present Combination Reovirus and Cyclophosphamide Treatment Results at International Oncolytic Virus Conference

CALGARY, March 19 /PRNewswire-FirstCall/ – Oncolytics Biotech Inc.
(“Oncolytics”) (TSX:ONC, NASDAQ:ONCY) announced today that Dr. Richard Vile of
the Mayo College of Medicine, Rochester, Minnesota delivered an oral
presentation at the 4th International Conference on Oncolytic Viruses as
Cancer Therapeutics in Carefree, Arizona on Saturday, March 17 covering a
study of systemic administration of reovirus in combination with
cyclophosphamide, an immune modulator. The conference was held from March 14
through 17, 2007.

The work demonstrated that systemic administration of reovirus in
combination with cyclophosphamide enhanced tumour regression in a melanoma
animal model without increasing toxicity. In addition, the investigators were
able to demonstrate that the addition of cyclophosphamide significantly
increased the amount of reovirus replicating within the tumour.

The investigators concluded that the addition of cyclophosphamide may lead
to improved efficacy of REOLYSIN(R) treatment.

“Our ongoing clinical trials are examining REOLYSIN(R) in combination with
gemcitabine, paclitaxel/carboplatin and docetaxel,” said Dr. Matt Coffey,
Chief Scientific Officer of Oncolytics. “These new results are remarkable.
This promising preclinical work confirms Oncolytics’ commitment to continuing
to investigate moving REOLYSIN(R) and other existing chemotherapies into human
clinical trials.”

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 Phase I and Phase II human trials using
REOLYSIN(R), its proprietary formulation of the human reovirus, alone and in
combination with radiation or chemotherapy. 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 implication of the materials
presented at this conference with respect to REOLYSIN(R), the Company’s
expectations related to the results of trials investigating delivery of
REOLYSIN(R), and the Company’s belief as to the potential of REOLYSIN(R) 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(R) as a cancer treatment, the
success and timely completion of clinical studies and trials, the Company’s
ability to successfully commercialize REOLYSIN(R), 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.

SOURCE Oncolytics Biotech Inc.