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1167 Kensington Cr. N.W Calgary, Alberta Canada T2N 1X7 For Immediate Release Oncolytics Biotech Inc. Reports Highlights and Financial Results for 2008 CALGARY, AB

Key Takeaway: Biotech Inc. Reports Highlights and Financial Results for 2008 CALGARY, AB, March 4, 2009 --- Oncolytics Biotech Inc. (TSX:ONC, NASDAQ:ONCY) ("Oncolytics" or the "Company") today reported its financial results for the year ended December 31, we selected our first pivotal pro

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Biotech Inc. Reports
Highlights and Financial Results for 2008
CALGARY, AB, March 4, 2009 ---
Oncolytics Biotech Inc. (TSX:ONC, NASDAQ:ONCY) ("Oncolytics" or the "Company")
today reported its financial results for the year ended December 31,
we selected our first pivotal program for REOLYSIN ," said
Dr. Brad Thompson, President and CEO of Oncolytics. "The selection of
head and neck cancers was supported by interim results reported in our US and UK
clinical studies, and the successful development of a manufacturing process
capable of supplying REOLYSIN for large clinical studies."
Financial and Intellectual
greatly encouraged by the clinical results we are seeing in our clinical trials,
and by the continued enthusiasm displayed by our collaborators," said Dr.
Thompson. "We look forward to taking REOLYSIN into to the final
stages of development in 2009."
$ 2008 $ 2007
ASSETS
Current
Cash and cash equivalents 7,429,895 6,715,096
Short-term investments 5,846,634 18,498,733
Accounts receivable 86,322 80,085
Prepaid expenses 179,668 260,300
13,542,519 25,554,214
Property and equipment Intellectual property 263,926 180,750 201,103 542,250
13,987,195 26,297,567
LIABILITIES AND SHAREHOLDERS' EQUITY
Current
Accounts payable and accrued liabilities 4,534,111 2,821,227
Commitments and contingency
Shareholders' equity
Share capital
Authorized: unlimited
Issued: 43,830,748 (2006 - 41,180,748) 95,234,924 92,759,665
Warrants 3,425,110 5,346,260
Contributed surplus 13,349,801 10,376,962
Deficit (102,556,751 ) (85,006,547 )
9,453,084 23,476,340
13,987,195 26,297,567
STATEMENTS OF LOSS AND COMPREHESIVE LOSS
periods ended December 31
$ 2008 $ 2007 $ 2006 Cumulative from inception on April 2, 1998 to December 31, 2008 $
Revenue
Rights revenue 310,000
310,000
Expenses
Research and development 13,351,875 12,385,743 11,378,998 74,531,777
Operating 4,311,575 3,826,195 3,630,144 24,837,025
Stock based compensation 64,039 539,156 403,550 4,768,844
Foreign exchange (gain) loss (68,283 ) 8,862 35,270 589,427
Amortization - intellectual property 361,500 361,500 361,500 3,434,250
Amortization - property and equipment 48,754 40,714 52,638 497,151
18,069,460 17,162,170 15,862,100 108,658,474
Loss before the following 18,069,460 17,162,170 15,862,100 108,348,474
Interest income (519,256 ) (1,211,744 ) (1,233,809 ) (6,534,005 )
Gain on sale of BCY LifeSciences Inc. (299,403 )
Loss on sale of Transition Therapeutics Inc. 2,156,685
Loss before income taxes 17,550,204 15,950,426 14,628,291 103,671,751
Future income tax recovery (1,115,000 )
Net loss and comprehensive loss for the period 17,550,204 15,950,426 14,628,291 102,556,751
Basic and diluted loss per share (0.42 ) (0.39 ) (0.40 )
STATEMENTS OF CASH FLOWS
periods ended December 31
$ 2008 $ 2007 $ 2006 Cumulative from inception on April 2, 1998 to December 31, 2008 $
OPERATING ACTIVITIES
Net loss and comprehensive loss for the period (17,550,204 ) (15,950,426 ) (14,628,291 ) (102,556,751 )
Add/(deduct) non-cash items
Amortization - intellectual property 361,500 361,500 361,500 3,434,250
Amortization - property and equipment 48,754 40,714 52,638 497,151
Stock based compensation 64,039 539,156 403,550 4,768,844
Other non-cash items - - - 1,383,537
Net change in non-cash working capital 1,787,279 586,964 812,622 4,268,121
Cash used in operating activities (15,288,632 ) (14,422,092 ) (12,997,981 ) (88,204,848 )
INVESTING ACTIVITIES
Acquisition of property and equipment (111,577 ) (92,221 ) (35,838 ) (813,744 )
Purchase of short-term investments (347,901 ) (949,496 ) (1,035,427 ) (49,416,864 )
Redemption of short-term investments 13,000,000 6,573,000 13,808,000 43,151,746
Investment in BCY LifeSciences Inc. - - - 464,602
Investment in Transition Therapeutics Inc . - - - 2,532,343
Cash provided by (used in) investing activities 12,540,522 5,531,283 12,736,735 (4,081,917 )
FINANCING ACTIVITIES
Proceeds from exercise of stock options and warrants 41,600 51,000 241,400 15,301,068
Proceeds from private placements - - - 38,137,385
Proceeds from public offerings 3,421,309 12,063,394 - 46,278,207
Cash provided by financing activities 3,462,909 12,114,394 241,400 99,716,660
Net increase (decrease) in cash and cash equivalents during the period 714,799 3,223,585 (19,846 ) 7,429,895
Cash and cash equivalents, beginning of period 6,715,096 3,491,511 3,511,357 -
Cash and cash equivalents, end of period 7,429,895 6,715,096 3,491,511 7,429,895
Cash interest received 769,529 1,392,866 940,100
view the Company's Financial Statements and Management's Discussion and
Analysis, please see the Company's 2008 Annual Filings which will be available
Oncolytics Biotech Inc.
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/II and Phase II human trials using
proprietary formulation of the human reovirus, alone and in combination with
radiation or chemotherapy. For further information about Oncolytics
press release contains forward-looking statements, within the meaning of Section
21E of the Securities Exchange Act of 1934, as amended and under applicable
Canadian provincial securities legislation. Forward-looking
statements, including the Company's belief as to the potential of REOLYSIN as a
cancer therapeutic; the Company's expectations as to the success of its research
and development programs in 2009 and beyond, the value of the additional patents
and intellectual property; the Company's expectations related to the
applications of the patented technology; the Company's expectations as to
adequacy of its existing capital resources; the design, timing, success of
planned clinical trial programs and the Company's planned expansion of such
programs; and other statements related to anticipated developments in the
Company's business and technologies 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, except as required by
FURTHER INFORMATION PLEASE CONTACT:
Last updated: Mar 4, 2009