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Oncolytics Biotech Inc. Announces Issuance of 23rd U.S. Patent
Date:9/4/2007

CALGARY, Sept. 4 /PRNewswire-FirstCall/ - Oncolytics Biotech Inc. (TSX: ONC, NASDAQ: ONCY) ("Oncolytics") today announced that it has been granted U.S. Patent 7,264,798 entitled "Sensitization of Chemotherapeutic Agent Resistant Neoplastic Cells with a Virus." The claims describe a method of using reovirus to prevent Ras-activated cancers from developing drug resistance to chemotherapeutic agents.

"Recent research conducted by the U.S. National Cancer Institute (NCI) and Cornell University demonstrated that administering reovirus in combination with various chemotherapeutic agents potentiates, or enhances tumour-killing, thus preventing the cancer cells from developing drug resistance," said Dr. Matt Coffey, Chief Scientific Officer. "This patent complements the combination REOLYSIN(R) and chemotherapy clinical program that we are pursuing in the U.K."

About Oncolytics Biotech Inc.

Oncolytics is a Calgary-based biotechnology company focused on the development of oncolytic viruses as potential cancer therapeutics. Oncolytics' clinical program includes a variety of Phase I and Phase II human trials using REOLYSIN(R), its proprietary formulation of the human reovirus, alone and in combination with radiation or chemotherapy. For further information about Oncolytics, please visit http://www.oncolyticsbiotech.com.

This news release contains forward-looking statements, within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements, including among others, the Company's belief as to the importance of the issuance of this patent, the safety and efficacy of the reovirus, the Company's expectations as to the potential applications of the patented technology and other statements relating to anticipated developments in the Company's business and technologies, involve known and unknown risks and uncertainties that could cause the Company's
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