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Oncolytics Biotech Inc. Successfully Completes 100-Litre cGMP Production of REOLYSIN(R)
Date:7/27/2009

CALGARY, July 27 /PRNewswire-FirstCall/ - Oncolytics Biotech Inc. ("Oncolytics") (TSX:ONC, NASDAQ: ONCY) announced today that with the support of its contract manufacturer, SAFC Pharma(R), a Division of Sigma-Aldrich Corporation, it has successfully completed an initial 100-litre production run of REOLYSIN under cGMP conditions. This run is anticipated to be the first of a series to be completed over the next several years as Oncolytics provides product for its existing clinical trials and continues preparations toward commercial launch of REOLYSIN.

"The manufacturing program is an integral part of the Company's development plan for REOLYSIN," said Dr. Matt Coffey, Chief Operating Officer of Oncolytics. "With the clinical results reported to date and the expected initiation of our pivotal program this year, keeping pace with the manufacturing process is critical."

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/II and Phase II human trials using REOLYSIN, its proprietary formulation of the human reovirus, alone and in combination with radiation or chemotherapy. 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 Company's expectations related to the sufficiency of the 100 litre cGMP manufacturing process, 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 and uncertainties related to the regulatory process. 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 laws.


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