Reovirus Infection of Melanoma Cells Generates Anti-Tumour Immunity



    Oncolytics Biotech Inc. Collaborators to Present Research at
    National Cancer Research Institute Conference

    CALGARY, Sept. 12 /CNW/ - Oncolytics Biotech Inc. ("Oncolytics")
(TSX:ONC, NASDAQ:  ONCY) announced today that Dr. Robin Prestwich of CR-UK
Clinical Centre, Leeds Institute of Molecular Medicine, University of Leeds,
U.K. is scheduled to deliver a poster presentation on Tuesday, October 2, 2007
at the NCRI Cancer Conference entitled "Reovirus Infection of Human Melanoma
Cells Supports Priming of Anti-Tumour Cytotoxic T Cell Immunity." The
conference runs from September 30 through October 3, 2007 in Birmingham, U.K.
    In this study, the investigators infected melanoma cell lines with
reovirus. The reovirus-infected cell lines stimulated the maturation of
dendritic cells, which in turn educated cancer-killing T cells to attack and
kill the melanoma cells.
    "Despite widespread interest in the anti-tumour effects of oncolytic
viruses, little attention has been focused upon their potential to generate
anti-tumour immunity," said Professor Alan Melcher of St. James's University
Hospital in Leeds, U.K. and a co-investigator of this preclinical study. "This
work has demonstrated for the first time the stimulatory effect of
reovirus-infected melanoma cells on dendritic cells and their superiority over
uninfected cells as an antigen source for bystander priming of anti-tumour
immunity."
    The research will be posted on the Oncolytics website at
www.oncolyticsbiotech.com as soon as it is available.

    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 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 implication of the materials
presented at this conference with respect to REOLYSIN(R), the Company's
expectations related to the results of trials investigating delivery of
REOLYSIN(R), and the Company's belief as to the potential of REOLYSIN(R) 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(R) as a cancer treatment, the
success and timely 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 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.





For further information:

For further information: Oncolytics Biotech Inc.: Cathy Ward, 210, 1167
Kensington Cr NW, Calgary, Alberta, T2N 1X7, Tel: (403) 670-7377, Fax: (403)
283-0858, cathy.ward@oncolytics.ca; The Equicom Group: Nick Hurst, 325, 300
5th Ave. SW, Calgary, Alberta, T2P 3C4, Tel: (403) 538-4845, Fax: (403)
237-6916, nhurst@equicomgroup.com; The Investor Relations Group: Erika Moran,
11 Stone St, 3rd Floor, New York, NY, 10004, Tel: (212) 825-3210, Fax: (212)
825-3229, emoran@investorrelationsgroup.com


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