Oncolytics Biotech(R) Inc. Closes Acquisition of Private Company


    CALGARY, April 9 /CNW/ - Oncolytics Biotech Inc. (TSX: ONC, NASDAQ:   ONCY)
("Oncolytics") announced today that it has completed its acquisition of an
inactive private company, ("PrivateCo") pursuant to a plan of arrangement
under the Business Corporations Act (Alberta) (the "Arrangement"). PrivateCo
had accumulated tax losses from its previous development business, and had
approximately $2.1 million in net cash at the closing of the transaction.
    Under the terms of the Arrangement, Oncolytics issued 1,875,121 common
shares in its capital (the "Common Shares") to former holders of PrivateCo
securities in exchange for all of the issued and outstanding securities of
PrivateCo. The exchange ratio was at an agreed premium to PrivateCo's net cash
per security at closing and was calculated using an ascribed value per Common
Share of $1.69 (being the 20 day volume weighted average trading price of the
Common Shares on the Toronto Stock Exchange up to and including March 2,
2009). Shareholders of PrivateCo approved the proposed transaction at a
special meeting of shareholders held April 7, 2009.
    After giving effect to this transaction, Oncolytics has 45,730,869 Common
Shares issued and outstanding.

    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(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

    The Toronto Stock Exchange has not reviewed and does not accept
    responsibility for the adequacy or accuracy of this release.

    This press release contains forward-looking statements. Forward-looking
statements, including the Company's expectations related to the proposal to
acquire all of the outstanding shares of PrivateCo, as to progress in the
clinical trial program 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 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,
uncertainties related to the regulatory process and general changes to the
economic environment. Investors should consult the Company's quarterly and
annual filings with the Canadian 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 may be required pursuant to applicable
securities laws.

    %SEDAR: 00013081E

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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