News Releases
Oncolytics Announces Distribution of Oncolytics’ Shares held by SYNSORB to SYNSORB Shareholders

CALGARY, Alberta, May 9, 2002 – Oncolytics Biotech Inc. (TSX: ONC, NASDAQ: ONCY) ("Oncolytics") announced today that SYNSORB Biotech Inc. ("SYNSORB") has received court approval and filed the required documents which provide for distribution to the SYNSORB shareholders of approximately 4,000,000 previously issued common shares in the capital of Oncolytics. Effective 12:01 am on May 8, 2002, each SYNSORB share represents the right to receive one-eighth of a new SYNSORB share and approximately 0.8065 of a common share of Oncolytics. The shareholders of Oncolytics voted 98.5% in favour of the resolution approving the early release from escrow of the shares of Oncolytics held by SYNSORB. SYNSORB now holds 725,000 freely-tradeable shares of Oncolytics, representing approximately 3.8% of the outstanding common shares. 

Oncolytics’ President and CEO Dr. Brad Thompson says he is pleased with the outcome. “This decision significantly broadens our shareholder base and we believe it is in the best interests of our shareholders. In addition, we are pleased that Oncolytics will receive shares in BCY LifeSciences as part of the transaction.”

In consideration of the early release from escrow SYNSORB transferred 1,500,000 common shares (and the right to receive 400,000 additional shares upon the attainment of certain milestones) currently held by SYNSORB in the capital of BCY LifeSciences Inc., a CDNX listed (CDNX:BCY) pharmaceutical company with license rights to technologies to treat certain diseases of the respiratory tract, to Oncolytics. After giving effect to this transfer, Oncolytics is the beneficial owner of the following securities of BCY LifeSciences Inc.: (i) 2,194,445 common shares; (ii) the right to receive 400,000 common shares upon the attainment of certain milestones; and (iii) warrants to purchase up to 694,445 common shares at an exercise price of $0.27 at any time prior to April 23, 2004. It is not the present intention of Oncolytics to acquire any additional securities of BCY LifeSciences Inc.

About Oncolytics Biotech Inc.

Oncolytics is a Calgary-based biotechnology company focused on the development of REOLYSIN®, its proprietary formulation of the human reovirus, as a potential cancer therapeutic. Oncolytics’ researchers have demonstrated that the reovirus is able to selectively kill human cancer cells in vitro that are derived from many types of cancer, including breast, prostate, pancreatic and brain tumours, and have also demonstrated successful cancer treatment results in a number of animal models. Phase I clinical trial results have indicated that there were no toxicology-related issues with the administration of the reovirus, and that the reovirus demonstrated activity in tumours injected with REOLYSIN®.


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 potential of REOLYSIN® as a cancer therapeutic, and the belief that Ras pathway has broad potential in the treatment of many cancers, 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® as a cancer treatment, the success and timely completion of clinical studies and trials, the Company’s ability to successfully commercialize REOLYSIN®, uncertainties related to the research and development of pharmaceuticals, uncertainties related to the regulatory process and general changes to the economic environment. 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.