U.S. NCI Files for Phase 2 Systemic Melanoma Clinical Trial with REOLYSIN(R)

CALGARY, May 14 /PRNewswire-FirstCall/ – Oncolytics Biotech Inc.
(“Oncolytics”) (TSX:ONC, NASDAQ:ONCY) announced today that the U.S. National
Cancer Institute (NCI) has filed a protocol with the U.S. Food and Drug
Administration (FDA) for a Phase 2 clinical trial for patients with metastatic
melanoma using systemic administration of REOLYSIN(R), Oncolytics’ proprietary
formulation of the human reovirus. The NCI is sponsoring the trial under its
Clinical Trials Agreement with Oncolytics, while Oncolytics will provide
clinical supplies of REOLYSIN(R).

The trial is expected to enroll up to 47 patients with metastatic

This cancer indication was selected after comprehensive preclinical
studies carried out by the NCI indicated the reovirus can kill melanoma cells.

Approximately 60,000 people are diagnosed with melanoma in the U.S. every

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 U.S. NCI Phase II systemic administration clinical trial for patients with
metastatic melanoma, 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 tolerability of REOLYSIN(R) outside a controlled test,
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.