Collaborators to Present Phase II Sarcoma Trial Results at CTOS Annual

Collaborators to Present Phase II Sarcoma Trial Results at CTOS Annual

CALGARY, AB, October 30, 2009

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

"Company") announced that a poster presentation covering updated results of a

Phase II study of REOLYSIN

administered intravenously to patients with sarcomas metastatic to the lung will

be presented at the 15th

Annual Connective Tissue Oncology Society (CTOS) Meeting being held in Miami

Beach, Florida on November 6th,

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" will be 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.

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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