Results of Second Warrant Expiry Date Acceleration Program

Biotech Inc. Announces

Results of Second Warrant Expiry Date Acceleration Program

CALGARY, AB - November 3, 2009 -

Oncolytics Biotech Inc. ("Oncolytics" or the "Corporation") (TSX:ONC;

NASDAQ:ONCY) announces, that pursuant to the accelerated expiry of those

warrants issued on May 13, 2009, the Corporation has received proceeds of

approximately $9.1 million resulting from the exercise of all 3,795,000

warrants. Oncolytics now has 56,662,469 shares issued and outstanding, and cash

on hand and available for operations of approximately $23.7

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.

press release contains forward-looking statements. Forward-looking

statements, including the Company's expectations as to progress in the clinical

trial program 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,

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 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 may be required pursuant to applicable

FURTHER INFORMATION PLEASE CONTACT: