CALGARY, AB, December 21 2004 -- Oncolytics Biotech Inc. (TSX: ONC, NASDAQ: ONCY) (‘Oncolytics’) today announced that it has received total proceeds of $5,061,200 with respect to the exercise of 1,265,300 warrants from the private placement entered into on June 19, 2003. Of the total proceeds, $1,698,620 was received prior to the end of September 2004, and included in the Company’s quarterly reports.

Of the 1,272,000 warrants issued under this private placement, 6,700 expired December 20, 2004, without being exercised. 

As at the close of business on December 20, 2004 there were 31,915,496 common shares issued and outstanding.

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, 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 REOLYSIN® was well tolerated and that the reovirus demonstrated activity in tumours injected with REOLYSIN®.