Sunday 17 August 2008

U.S. NCI Starts Enrolment In Phase 2 Systemic Melanoma Clinical Trial With REOLYSIN(R)

�Oncolytics Biotech Inc.
("Oncolytics") (TSX:ONC, NASDAQ:ONCY) announced that the U.S.
National Cancer Institute (NCI), part of the National Institutes of Health,
has started enrollment in a Phase 2 clinical trial for patients with
metastatic melanoma victimization systemic administration of REOLYSIN(R),
Oncolytics' proprietary formulation of the human reovirus. The trial is
being carried out by the Mayo Phase 2 Consortium under the NCI's Clinical
Trials Agreement with Oncolytics, spell Oncolytics volition provide clinical
supplies of REOLYSIN(R). The Principal Investigator is Dr. Evanthia Galanis
of the Mayo Clinic Cancer Center.



The primary objectives of the study are to assess the antitumour
personal effects of REOLYSIN(R) in patients with metastatic malignant melanoma, as
easily as the safety profile of REOLYSIN(R). Secondary objectives include
assessment of progression free survival and overall survival.



Patients will receive systemic presidential term of REOLYSIN(R) at a dose
of 3x10(10) TCID(50) per day on days 15 of each 28 day cycle, and patients
may receive up to 12 cycles of treatment. The trial is expected to enroll
up to 47 patients with metastatic malignant melanoma.



Approximately 60,000 people are diagnosed with malignant melanoma in the U.S.
every year.

About Oncolytics Biotech Inc.



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



This press release contains innovative statements, within the
substance of Section 21E of the Securities Exchange Act of 1934, as amended.
Forward-looking statements, including the Company's expectations related to
the U.S. NCI Phase 2 systemic administration clinical trial for patients
with metastatic malignant melanoma, and the Company's belief as to the potential difference of
REOLYSIN(R) as a cancer therapeutic, involve known and obscure risks and
uncertainties, which could causal agent the Company's actual results to differ
materially from those in the forward-looking statements. Such risks and
uncertainties admit, among others, the accessibility of cash in hand and
resources to engage research and development projects, the efficaciousness of
REOLYSIN(R) as a cancer treatment, the tolerability of REOLYSIN(R) outside
a controlled quiz, the success and well timed completion of clinical studies
and trials, the Company's ability to successfully commercialize
REOLYSIN(R), uncertainties related to the research and development of
pharmaceuticals and uncertainties related to the regulatory process.
Investors should refer the Company's quarterly and annual filings with
the Canadian and U.S. securities commissions for additional entropy on
risks and uncertainties relating to the ahead looking statements.
Investors ar cautioned against placing undue reliance on forward-looking
statements. The Company does not undertake to update these forward-looking
statements.


Oncolytics Biotech Inc.
http://www.oncolyticsbiotech.com



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