News Releases
Oncolytics Biotech Inc. Announces Issuance of 14th U.S. Patent – Reovirus Clearance of Ras-Mediated Neoplastic Cells from Mixed Cellular Compositions

CALGARY, AB --- February 7, 2006 - Oncolytics Biotech Inc. (TSX: ONC, NASDAQ: ONCY) (“Oncolytics”) has been granted U.S. Patent 6,994,858 entitled “Reovirus Clearance of Ras-Mediated Neoplastic Cells from Mixed Cellular Compositions.” The claims describe methods of using the reovirus ex vivo to eliminate contaminating cancer cells from autologous (harvested from the patient themselves) blood stem cell transplants. The results of a study to purge cancer cells from autologous stem cell preparations using the reovirus were previously published in the March 13, 2003 issue of Blood.

“The results of this study demonstrated that the reovirus may have a role to play in purging contaminating cancer cells from stem cell preparations used for transplants,” said Dr. Matt Coffey, Chief Scientific Officer for Oncolytics. “This patent provides Oncolytics with an important extension of the potential use of the reovirus for the treatment of cancer.”

Hematological (derived from blood) stem cell rescue following high-dose chemotherapy is extensively used clinically for both solid tumours and tumours of the blood. Globally, the number of autologous blood and bone marrow transplants surpasses the number of donor-derived transplants. It has been estimated that as many as 30 per cent of these autologous stem cells transplants are contaminated by cancer cells, and may contribute to clinical relapse of the cancer.

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 I/II human trials using REOLYSIN®, its proprietary formulation of the human reovirus, alone and in combination with radiation. 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® as a cancer treatment, the success and timely completion of clinical studies and trials, 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.