Oncolytics Biotech Inc. Announces Issuance of 21th U.S. Patent

CALGARY, May 29 /PRNewswire-FirstCall/ - Oncolytics Biotech Inc. ("Oncolytics") has been granted U.S. Patent 7,223,585 entitled "Viral Purification Methods." The claims cover the production and purification of viruses including reovirus.

"This patent expands our intellectual property portfolio well beyond that of reovirus," said Dr. Matt Coffey, Chief Scientific Officer of Oncolytics. "We have now secured six U.S. patents relating to production or purification of viruses in addition to the various trade secrets relating to manufacture of our agent."

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 news release contains forward-looking statements, within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements, including among others, the Company's belief as to the importance of the issuance of this patent, the safety and efficacy of the reovirus, the Company's expectations as to the potential applications of the patented technology and other statements relating to anticipated developments in the Company's business and technologies, involve known and unknown risks and uncertainties that 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 efficacy of REOLYSIN(R) as a cancer treatment, the success and timely completion of clinical studies and trials, 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.

CONTACT: Oncolytics Biotech Inc.: Cathy Ward, 210, 1167 Kensington Cr NW,Calgary, Alberta T2N 1X7, Tel: (403) 670-7377, Fax: (403) 283-0858,cathy.ward@oncolytics.ca; The Equicom Group: Nick Hurst, 333, 300 5th AveSW, Calgary, Alberta T2P 3C4, Tel: (403) 538-4845, Fax: (403) 237-6916,nhurst@equicomgroup.com; The Investor Relations Group: Erika Moran, 11Stone St, 3rd Floor, New York, NY 10004, Tel: (212) 825-3210, Fax: (212)825-3229, emoran@investorrelationsgroup.com