News Releases
Oncolytics Biotech Inc. Phase I Combination REOLYSIN^®/Radiation Clinical Trial Abstract Available on AACR Website

CALGARY, AB, --- March 3, 2006 –Oncolytics Biotech Inc. (TSX: ONC, NASDAQ: ONCY) 
announced today that an abstract covering the preliminary results of a Phase I combination REOLYSIN®/radiation clinical trial being conducted in the U.K. is available today on the American Association for Cancer Research (AACR) website at www.aacr.org, and on the Oncolytics website atwww.oncolyticsbiotech.com. The abstract is entitled “Phase I trial of intratumoral administration of reovirus type 3 (Reolysin) in combination with radiation in patients with advanced malignancies.”

“Early results of the study show that patients are experiencing local and systemic responses to the combination of REOLYSIN® and radiation treatment,” said Dr. Matt Coffey, Oncolytics’ Chief Scientific Officer. “We are pleased with these initial indications of activity, and look forward to providing an update of interim study results at the AACR annual meeting.”
An oral presentation covering more detailed interim results of the Phase I combination clinical trial is scheduled to be delivered at the AACR annual meeting which runs April 1-5 in Washington, D.C. The presentation will be delivered by Principal Investigator Dr. Kevin J. Harrington of the Targeted Therapy Laboratory, The Institute of Cancer Research, Cancer Research UK Centre for Cell and Molecular Biology and Honorary Consultant in Clinical Oncology at The Royal Marsden NHS Foundation Trust, London, UK.

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 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 implication of the abstract and materials presented on the AACR website and at this meeting with respect to REOLYSIN®, the Company’s expectations related to the results of trials investigating delivery of REOLYSIN®, 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 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.