News Releases
Oncolytics Biotech Inc. Announces Commencement of Solicitation Process for Clinical Trials Sponsored by the U.S. National Cancer Institute

CALGARY, AB, --- January 18, 2006 - Oncolytics Biotech Inc. (“Oncolytics”) (TSX:ONC, NASDAQ:ONCY) announced today that the Cancer Therapy Evaluation Program (CTEP), part of the U.S. National Cancer Institute (“NCI”), has issued a solicitation for Letters of Intent with respect to the conduct of two human clinical trials using REOLYSIN®, a proprietary formulation of the human reovirus being developed as a potential cancer therapeutic.
CTEP is soliciting proposals for a Phase II study of REOLYSIN® administered systemically in patients with melanoma. The dosage and dosing regimen to be used in the study will be determined based on data derived from ongoing U.K. and U.S. Phase I systemic administration studies being conducted by Oncolytics. 
CTEP is also soliciting proposals for a Phase I/II study of REOLYSIN® co-administered both systemically and intraperitoneally (IP) in patients with ovarian cancer. The purpose of the Phase I portion of the trial is to determine the Maximum Tolerated Dose (MTD) of REOLYSIN® given by IP administration in combination with a constant systemic dose and dosing regimen. 
Oncolytics will provide REOLYSIN? for all clinical trials conducted and sponsored by the NCI under a Clinical Trials Agreement (CTA). The NCI initially approved REOLYSIN® for collaborative development after an analysis of preclinical, GLP toxicology and clinical data. Since the CTA was approved, Oncolytics and the NCI have worked together to select cancer indications and suitable development programs. 

About the National Cancer Institute
The National Cancer Institute is an agency of the National Institutes of Health (NIH), one of eight agencies that compose the Public Health Service (PHS) in the U.S. Department of Health and Human Services (DHHS). The NCI, established under the National Cancer Act of 1937, is the U.S. Federal Government's principal agency for cancer research and training. 

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 cancer cells and, in vitro, kill human cancer cells that are derived from many types of cancer including breast, bladder, prostate, pancreatic and brain tumours, and have also demonstrated successful cancer treatment results in a number of animal models. Previous Phase I clinical trial results have indicated that REOLYSIN® was well tolerated 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 Company’s expectations related to the success and benefits of the collaboration with the NCI, progress in the clinical trial program and the Company’s belief as to the potential of REOLYSIN® 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 efficacy of REOLYSIN® as a cancer treatment, the continued sponsorship by the NCI of the clinical trials, 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, the availability of resources and funding to complete the Company’s research and development efforts 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.