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Oncolytics Biotech(R) Inc. Accelerates Warrant Expiry Date
Date:10/2/2009

CALGARY, Oct. 2 /PRNewswire-FirstCall/ - Oncolytics Biotech Inc. ("Oncolytics" or the "Corporation") (TSX:ONC; NASDAQ:ONCY) announces that in accordance with the terms of the warrant indenture for those warrants issued on May 13, 2009, and in accordance with the terms of the broker warrant certificates for the broker warrants issued on May 13, 2009, the Corporation has provided the required written notice to holders of such warrants that the expiry date has been accelerated to the close of business on Monday, November 2, 2009.

Under the terms of the warrant indenture and the broker warrant certificates, if the 10-day volume-weighted average trading price of the common shares of Oncolytics (the "Common Shares") on the Toronto Stock Exchange exceeds $3.35 per Common Share, then, at any date subsequent to this date, at the Corporation's sole discretion and upon the Corporation sending the holder written notice of such accelerated exercise date and issuing a news release announcing such accelerated exercise date, the expiry date of the warrant shall be the day that is 30 days following the later of (i) the date on which such notice is sent to the holder; and (ii) the date on which such announcement is made by news release. As of the close of business on October 2, 2009, the 10-day volume-weighted average trading price of the Common Shares exceeded $3.35. Warrants may be exercised through payment of the exercise amount of $2.40 per whole warrant up to close of business on November 2, 2009. If all of the warrants subject to this acceleration are exercised, Oncolytics will receive proceeds of approximately $9.1 million. Any warrants not exercised prior to the accelerated expiry date and time will expire without any further action being taken.

About Oncolytics Biotech Inc.

Oncolytics is a Calgary-based biotechnology company focused on the development of oncolytic viruses as potential cancer therapeutics. Oncolytics' clinical progr
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SOURCE Oncolytics Biotech Inc.
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