Collaborators Present Positive Phase II Sarcoma Trial Results at CTOS Annual

Collaborators Present Positive Phase II Sarcoma Trial Results at CTOS Annual

CALGARY, AB, November 6, 2009

--- Oncolytics Biotech Inc. (TSX:ONC, NASDAQ:ONCY) ("Oncolytics" or the

"Company") today announced updated results from a Phase II study of intravenous

patients with sarcomas metastatic to the lung in a poster presentation at the

Annual Connective Tissue Oncology Society Meeting held in Miami Beach, Florida,

from November 5th to

poster presentation, entitled "A Phase II Study of Intravenous REOLYSIN

(Wild-type Reovirus) in the Treatment of Patients with Bone and Soft Tissue

Sarcomas Metastatic to the Lung", was delivered by Dr. Kamalesh Sankhala, part

of principal investigator Dr. Monica Mita's team at the Institute of Drug

Development (IDD), the Cancer Therapy and Research Center at the University of

Texas Health Science Center, (UTHSC), San Antonio, Texas.

investigators reported that the treatment has been well tolerated to date, and

that 19 of 44 evaluable patients experienced stable disease ranging from two to

20 months, resulting in a total clinical benefit rate (complete response +

partial response + stable disease) of 43%. The response objective for the study

was three or more patients having prolonged stabilization of disease (>6

months) or better, for the agent to be considered. The trial exceeded its

established objective with six patients experiencing stable disease for more

than six months. Two patients have experienced stable disease for more than 19

months. One has synovial cell sarcoma that relapsed following surgery, while the

other has Ewing's Sarcoma and had previously progressed following multiple

very happy to participate in the study," said Dr. Mita. "REOLYSIN is a promising

option for patients with sarcoma as shown by the results of this study. As a

single agent the virus had a clinical benefit rate of 43% and it was very well

tolerated. Further studies combining REOLYSIN with chemotherapy are contemplated

in order to integrate the virus in the panoply of agents used for sarcoma

results are consistent with what we observed on an interim basis when we

reported data on the first 16 patients back in June 2008," said Dr. Brad

Thompson, President and CEO of Oncolytics. "It is encouraging that we

are observing stable disease in a range of sarcomas and the clinical benefit is

not isolated to any specific type."

the poster will be available on the Oncolytics website today.

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 human trials including a Phase III trial in head and neck cancers

using REOLYSIN, its proprietary formulation of the human reovirus. 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 the CTOS meeting with respect to

REOLYSIN; 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 Company's planned operations, 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 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 applicable

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