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Oncolytics Enters into Sponsorship Agreement with NCIC CTG

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Oncolytics Biotech Inc. has announced that it has entered into an agreement whereby the NCIC Clinical Trials Group (CTG) at Queen's University in Kingston, Ontario, will sponsor and conduct a randomized Phase II study of REOLYSIN® in patients with advanced or metastatic non-small cell lung cancer ("NSCLC").

"This agreement expands our program with the NCIC CTG to a total of three randomized studies, including the colorectal and prostate studies we announced earlier in 2012," said Dr. Brad Thompson, President and CEO of Oncolytics.

Dr. Thompson continued, "This study builds upon both of our existing NSCLC clinical studies, as well as clinical research combining REOLYSIN® with docetaxel."

The study will be an open-label, randomized, non-blinded, Phase II clinical study of REOLYSIN.

Patients with squamous cell histology will be treated with REOLYSIN given in combination with docetaxel versus docetaxel alone.

Patients with non-squamous cell histology will be treated with REOLYSIN given in combination with pemetrexed versus pemetrexed alone.

Approximately 150 total response evaluable patients will be enrolled, after a patient safety run in.

Conference Call Details

Dr. Brad Thompson, President and CEO of Oncolytics, will host a conference call and webcast on Tuesday, June 5th, 2012 at 7:00 a.m. MT (9:00 a.m. ET) to discuss in more depth the Company's randomized Phase II clinical trial program.

To access the conference call by telephone, dial 1-647-427-7450 or 1-888-231-8191.

A live audio webcast will also be available at the following link: http://www.newswire.ca/en/webcast/detail/986501/1062975 or through the Company's website at www.oncolyticsbiotech.com/presentations.

Please connect at least 10 minutes prior to the webcast to ensure adequate time for any software download that may be needed.

A replay of the webcast will be available at www.oncolyticsbiotech.com and will also be available by telephone through June 12th, 2012.

To access the telephone replay, dial 1-416-849-0833 or 1-855-859-2056 and enter reservation number 88541070 followed by the number sign.