Oncolytics Biotech Inc. Successfully Completes Initial Scale Up of Manufacturing Process for REOLYSIN(R)

CALGARY, April 30 /PRNewswire-FirstCall/ – Oncolytics Biotech Inc.
(“Oncolytics”) (TSX:ONC, NASDAQ:ONCY) announced today that it has successfully
completed initial scale up of its manufacturing process for REOLYSIN(R).

The process improvements and scale up to 40-litre batch size has resulted
in increased total yields, which are a result of advancements in the media
formulation used in the primary production of REOLYSIN(R) and in the
downstream processing steps required to generate finished product. The
proprietary media formulation was developed by SAFC Biosciences, of Lenexa,
Kansas. The scale up of primary production and downstream processing
development was undertaken by the National Research Council Biotechnology
Research Institute (NRC-BRI) located in Montreal, Canada. The process at this
scale now yields at least 20,000 doses at the maximum clinical dose for
intravenous use, or 60,000 doses for local use. Further increases in scale are
being investigated.

“This enhanced manufacturing process will allow us to keep pace with our
rapidly expanding clinical program for REOLYSIN(R),” said Dr. Matt Coffey,
Chief Scientific Officer of Oncolytics.

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 Company’s expectations related to
the manufacturing process, the transfer of the scale up to full cGMP
production, 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.