Senior Vice President, Global Licensing and Business Development

Biotech Inc. Appoints

Senior Vice President, Global Licensing and Business Development

CALGARY, AB, December 11, 2009

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

"Company") today announced the appointment of Dr. Alan Warrander to the role of

Senior Vice President, Global Licensing and Business Development.

Warrander will be responsible for the execution of the global licensing strategy

said Dr. Brad Thompson, President and CEO of Oncolytics. "Having reached an

agreement on the design of a Phase 3 trial examining REOLYSIN in combination

with paclitaxel and carboplatin in patients with platinum-refractory head and

neck cancers with the U.S. Food and Drug Administration under the Special

Protocol Assessment (SPA) process, and with ongoing Phase 2 studies in multiple

indications, we felt it was important to bring this skill set in

32-year career, Dr. Warrander has held a number of positions within the

biotechnology and pharmaceutical industries. He held a number of progressively

senior positions in the pharmaceutical industry, most recently as Director,

Global Licensing, AstraZeneca. Dr. Warrander subsequently served as Senior Vice

President, Life Sciences at Wood Mackenzie, providing partnering support and

advice to a range of clients on licensing, merger and acquisition and financing

projects globally. Most recently, as an independent consultant, he has worked

with a number of biotechnology clients including Oncolytics, serving as a

director of Oncolytics Biotech (Barbados) Inc. He holds a PhD from the

Department of Biochemistry at the University of Birmingham and a BSc in

Chemistry and Biochemistry from the University of St. Andrews.

Oncolytics Biotech Inc.

is a Calgary-based biotechnology company focused on the development of oncolytic

viruses as potential cancer therapeutics. Oncolytics Biotech (Barbados) Inc. is

a wholly-owned subsidiary of Oncolytics Biotech Inc. focusing on the development

of products outside of Canada. 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, within the meaning of Section

21E of the Securities Exchange Act of 1934, as

amended. Forward-looking statements, including the impact Dr.

Warrander may have on the Company's licensing and other business activities; 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

FURTHER INFORMATION PLEASE CONTACT: