Wednesday 3 September 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 enrolment in a Phase 2 clinical test for patients with
metastatic melanoma exploitation systemic governing 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 will provide clinical
supplies of REOLYSIN(R). The Principal Investigator is Dr. Evanthia Galanis
of the Mayo Clinic Cancer Center.



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



Patients will welcome systemic administration of REOLYSIN(R) at a dose
of 3x10(10) TCID(50) per day on days fifteen of each 28 day cycle, and patients
whitethorn 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 crab therapeutics.
Oncolytics' clinical programme includes a variety of Phase I/II and Phase II
human trials exploitation REOLYSIN(R), its proprietary preparation of the human
reovirus, alone and in combination with radiation or chemotherapy. For
farther information roughly Oncolytics, please visit
hypertext transfer protocol://www.oncolyticsbiotech.com



This press release contains advanced statements, inside the
signification 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 feeling as to the potency of
REOLYSIN(R) as a cancer alterative, involve known and obscure risks and
uncertainties, which could grounds the Company's actual results to differ
materially from those in the forward-looking statements. Such risks and
uncertainties include, among others, the accessibility of monetary resource and
resources to follow research and development projects, the efficaciousness of
REOLYSIN(R) as a cancer treatment, the tolerability of REOLYSIN(R) outside
a controlled screen, the achiever and well timed completion of clinical studies
and trials, the Company's ability to successfully commercialise
REOLYSIN(R), uncertainties related to the research and development of
pharmaceuticals and uncertainties related to the regulative 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 ar cautioned against placing unreasonable reliance on forward-looking
statements. The Company does non undertake to update these forward-looking
statements.


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



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