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

CALGARY, March 16 /PRNewswire-FirstCall/ – Oncolytics Biotech Inc.
(“Oncolytics”) (TSX:ONC, NASDAQ:ONCY) announces that Professor Hardev Pandha
of The Royal Surrey Hospital, U.K. is scheduled to present a poster today
entitled “Synergistic Antitumour Activity of Oncolytic Reovirus and Cisplatin
in Malignant Melanoma” at the 4th International Conference on Oncolytic
Viruses as Cancer Therapeutics in Carefree, Arizona, March 14 through 17,
2007. The results of the preclinical study showed that the combination of
reovirus and cisplatin was significantly more effective than cisplatin or
reovirus alone at killing melanoma cancer cells in a mouse model.

The investigators concluded that the addition of chemotherapeutic agents
can enhance the efficacy of reovirus therapy. They intend to explore the
mechanism of this promising synergistic action in further detail in future
preclinical work.

“We find this rapidly expanding body of evidence supporting combination
treatment with reovirus to be very gratifying,” said Dr. Matt Coffey, Chief
Scientific Officer of Oncolytics. “This recent evidence that reovirus can be
combined with commonly used therapies such as platinum agents further supports
our approved human clinical trial program using REOLYSIN(R) in combination
with platinum and taxane agents.”

The research will be posted on the Oncolytics website at
www.oncolyticsbiotech.com as soon as it is available.

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.