News Releases
Oncolytics Biotech Inc. Reports Highlights and Financial Results for 2001

Oncolytics Biotech Inc. Reports Highlights and Financial Results for 2001

Calgary, AB, March 15, 2002--- Oncolytics Biotech Inc. (TSE:ONC, NASDAQ: ONCY) (“Oncolytics”) reported its financial results for the year ended December 31, 2001.

Highlights of 2001:
· Successfully completed enrolment for Phase I human clinical trial during the year and reported positive interim results
· Received approval from Health Canada to commence a second clinical trial designed to test the effectiveness of REOLYSIN® as a treatment for prostate cancer
· Continued to validate the safety of REOLYSIN® through additional toxicology studies
· A third patent related to the Company’s technology was issued in the U.S. strengthening intellectual property coverage
· Listed the Company’s shares for trading on the NASDAQ Small Cap Market

“Oncolytics made solid clinical progress in 2001,” said Dr. Brad Thompson, Chairman, President and Chief Executive Officer. “While expanding our human clinical trial programs, we have also continued to confirm the safety of REOLYSIN® through a broad range of safety and toxicology studies. We believe we are well-positioned to make significant additional progress in 2002.”

Total loss for the year ended December 31, 2001 was $6,171,461 or $0.34 per share compared to a loss of $3,613,152 or $0.22 per share for the previous year, with a loss of $1,355,736 or $0.08 per share for the three months ended December 31, 2001, as compared to a loss of $511,294 or $0.03 per share for the three months ended December 31, 2000. As expected, increases in clinical expenses associated with the completion of our first Phase I human clinical trial, research and development expenses to broaden our knowledge concerning the safety and various methods of delivery of REOLYSIN®, and costs to enter the U.S. capital market through a listing of the Company’s shares on the NASDAQ Small Cap Market contributed to the increased loss over 2000.

The Company reported $310,000 in revenues for the year ended December 31, 2000 from a payment received for rights associated with a licensing agreement. No similar revenues were received by the Company in 2001. The licensing agreement was terminated in January 2002. The Company also recorded reduced interest income of $655,212 in 2001 ($905,690 in 2000) resulting from lower average cash and investment balances during the year and lower interest rates.

Total expenses for the year ended December 31, 2001 were $7,137,243 as compared to $4,955,654 for 2000. The increase is primarily attributable to increased product development and clinical trial activities, milestone payments to founding shareholders and increased operating activities supporting the efforts to develop REOLYSIN® as a potential cancer therapeutic.

The Company follows the liability method of accounting for income taxes, which resulted in a future income tax recovery of $340,570 in 2001, increased from a recovery of $126,812 recorded in 2000. The increased recovery in 2001 reflects the effect of changes in tax rates in 2001 as well as an adjustment to the valuation allowance.

The Company had cash and cash equivalents of $14,970,756 at December 31, 2001, which compares to cash and cash equivalents of $17,619,110 at December 31, 2000. During the year the Company raised net proceeds of $2,210,016 from the exercise of warrants and stock options. These proceeds will used to further the development and testing of the Company’s products as well as for general corporate purposes.

For a complete copy of the financial statements, please click on the link below:
http://www.newswire.ca/releases/March2002/15/c0850.html

About Oncolytics Biotech Inc.
Oncolytics is a Calgary-based biotechnology company focused on the development of the human reovirus (REOLYSIN®) 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 derived from many types of cancer including breast, prostate, pancreatic and brain tumours. Research has also yielded successful cancer treatment results in a number of animal models. Interim 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 Company’s belief as to the potential of REOLYSIN® as a cancer therapeutic and the Company’s expectations as to the success of its research and development programs in 2002, 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.