Oncolytics Biotech Inc., research collaborators demonstrate reovirus/gemcitabine

April 17, 2007

CALGARY, AB, --- April 17, 2007 - Oncolytics Biotech Inc. ("Oncolytics") (TSX:ONC, NASDAQ:ONCY) announces that a poster by Dr. Maureen E. Lane et al. of Cornell University, New York, entitled "In Vivo Synergy between Oncolytic Reovirus and Gemcitabine in Ras-Mutated Human HCT116 Xenografts" is scheduled to be presented today at the American Association for Cancer Research (AACR) Annual Meeting in Los Angeles, CA. The meeting runs from April 14-18, 2007.

The researchers found that treatment of human colon cancer cell lines with the combination of REOLYSIN® and gemcitabine resulted in both in vitro and in vivo synergy. There was no toxicity associated with the combined treatment. Tumours treated with the combination were significantly smaller (by area and weight) than tumours in control groups or tumours treated with either agent alone. The researchers concluded that the synergistic combination of REOLYSIN® and gemcitabine is a promising therapeutic regimen for study in clinical trials.

"It is rare to see the virtual elimination of tumours as well as the long-lasting therapeutic effect that we have observed from this study," said Dr. Brad Thompson, President and CEO of Oncolytics. "We are very encouraged by these results and look forward to testing this particular treatment combination in our upcoming human systemic administration trial in the U.K."
-end-
The poster will be available on the Oncolytics website today at www.oncolyticsbiotech.com.

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®, 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

Oncolytics Biotech Inc.

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