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Oncolytics Biotech Inc. Reports REOLYSIN^® and Chemotherapeutic Agents are Synergistic Against NSCL Cancer Cell Lines

CALGARY, AB, --- November 9, 2006 - Oncolytics Biotech Inc. (“Oncolytics”) (TSX:ONC, NASDAQ:ONCY) announced today that Dr. Shizuko Sei of SAIC-Frederick, Inc., prime contractor to the National Cancer Institute at Frederick (NCI-F) in the United States presented a poster at the 18th EORTC-NCI-AACR symposium on Molecular Targets and Cancer Therapeutics today. The meeting is being held from November 7-10, 2006 in Prague, Czech Republic.

The poster, entitled “Synergistic Antitumor Activity of Oncolytic Reovirus and Chemotherapeutic Agents against Non-small Cell Lung Cancer (NSCLC)” covers preclinical work conducted with collaborators Dr. Joseph E. Tomaszewski of the NCI and Dr. Matt Coffey of Oncolytics Biotech Inc. under a Clinical Trials Agreement between Oncolytics and NCI.

The research focused on work conducted by the NCI with reovirus in combination with a number of common chemotherapeutic agents. In general, the combination of reovirus with cisplatin, gemcitabine, mitomycin or vinblastine was synergistic against NSCLC cell lines sensitive to anti-cancer drugs. Of particular interest to the researchers, the combination of reovirus and paclitaxel was uniformly synergistic in all six cell lines examined, including in those with high-level resistance to paclitaxel or reovirus. The data suggest that the combination of reovirus and paclitaxel may help in promoting cell-death signaling, resulting in a more efficient and synergistic anti-cancer effect against these cell lines than using each agent on its own.

“Data from the NCI and other investigators examining various co-therapies with REOLYSIN® is providing Oncolytics with the rationale for its planned combination clinical trial program,” said Dr. Brad Thompson, President and CEO of Oncolytics. “This research suggests that REOLYSIN® can be combined with many existing therapies that are currently broadly used in the treatment of cancer patients.”

The poster will be available on the Oncolytics website following the presentation.

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 materials presented at this symposium 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, accuracy of interpretation of data, 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 and uncertainties related to the regulatory process. 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.