Press Release: Oncolytics Biotech Announces Pricing of Previously Announced Public Offering

Oncolytics Biotech Inc. Announces Pricing of Previously Announced Public Offering CALGARY, February 06, 2007 - Oncolytics Biotech Inc. is pleased to announce that in connection with the previously announced short form prospectus offering, it has entered into an underwriting agreement with Canaccord Capital Corporation, pursuant to which Oncolytics has agreed to issue 4,000,000 units, each unit comprised of one common share and one-half of one common share purchase warrant, at a price of $3.00 per unit for gross proceeds of $12,000,000.00. Each whole common share purchase warrant shall entitle the holder thereof to acquire one common share of the Company upon payment of $3.50 at any time until 5:00 p.m. (Calgary time) on the date that is 36 months following the closing of the offering. Additionally, Oncolytics has granted Canaccord Capital Corporation an over-allotment option to purchase up to an additional 600,000 units at a price of $3.00 per unit, exercisable at any time up until 30 days after closing of the offering, increasing the gross proceeds of the offering to $13,800,000.00. The net proceeds from this offering will be used by Oncolytics for its clinical trial program, manufacturing activities in support of the clinical trial program and for the Company's general corporate purposes. The offering is expected to close on or about February 22, 2007 and is subject to the receipt of all necessary regulatory and stock exchange approvals. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of these securities in any state or province in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or province. No offer to buy the securities can be accepted and no part of the purchase price can be received until the registration statement has become effective, and any such offer may be withdrawn or revoked, without obligation or commitment of any kind, at any time prior to the notice of its acceptance given after the effective date. Canaccord Capital Corporation is acting as lead manager on the offering. Once filed and receipted, a copy of the amended and restated short form prospectus may be obtained from Canaccord Capital Corporation - in Canada, call 416-869-7708, in the U.S., call 1-617-788-1554, or send requests to: Attention: Lee Ward, P.O. Box 516, 161 Bay Street, Suite 3000, Toronto, Ontario M5J 2S1 (fax requests - 416-869-7708). This press release contains forward-looking statements, within the meaning of Section 21E of the United States Securities Exchange Act of 1934, as amended. Forward-looking statements, including the Company's expectations related to the placement of the units, 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, ability of the Company to complete the offering on the terms set forth in its agreements, the Company's ability to obtain regulatory approval for the offering, 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, 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 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, except as may be required pursuant to applicable securities laws. CONTACT: Oncolytics Biotech Inc.: Cathy Ward, 210, 1167 Kensington Cr NW,Calgary, Alberta, T2N 1X7, Tel: (403) 670-7377, Fax: (403) 283-0858,; The Equicom Group: Nick Hurst, 600, 205 5th Ave.SW, Calgary, Alberta, T2P 2V7, Tel: (403) 538-4845, Fax: (403) 266-2453,; The Investor Relations Group: Erika Moran, 11Stone St, 3rd Floor, New York, NY, 10004, Tel: (212) 825-3210, Fax: (212)825-3229, [email protected] [email protected] [email protected]

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