March 31, 2003

News Release: Presentation of Results From Interim Assessment of T2 Prostate Cancer Trial

Oncolytics Biotech Inc. ('Oncolytics') reports that Dr. Don Morris of the Alberta Cancer Board and the University of Calgary presented results from an interim assessment of the first six completed patients of a clinical study to evaluate the efficacy and safety of REOLYSIN(R) for the treatment of T2 prostate cancer. There was evidence of viral activity in five of six patients and there were no safety concerns, from either a clinical or histopathological perspective, in all six patients. The results were presented March 28th, 2003 at a conference on 'Oncolytic Viruses As Cancer Therapeutics'held in Banff, Alberta. The preliminary data showed clear histopathological evidence of apoptotic tumour cell death, one measure of viral activity, in four of the six patients. In a fifth patient, the PSA level dropped by 53% and the prostate gland shrank by 67% from just prior to treatment to the time of surgical removal. There was no evidence of viral activity in the sixth patient. In all six patients, there was no histopathological evidence of any viral effect on healthy prostatic tissue.

'We are pleased with the preliminary results from this trial,'said Dr. Brad Thompson, Oncolytics'President and CEO. 'This preliminary data shows histopathological evidence that REOLYSIN(R) selectively infects and kills tumour cells in humans. Our future clinical trials will examine systemic administration of REOLYSIN(R) that will target metastatic disease. Advanced prostate cancer will be considered for one of these trials.'

The T2 prostate cancer trial is intended to evaluate the histopathological efficacy of intra-tumoural administration of REOLYSIN(R) for the treatment of cancer that is restricted to the prostate gland. Patients will receive a single injection of REOLYSIN(R) and will be monitored for approximately three weeks, at which time the prostate will be surgically removed. The primary efficacy endpoint will be the response rate as measured by pathological examination of the tumour.

Cancer of the prostate is one of the most common cancers in men, representing approximately one-third of all male cancers in western society. It is second only to lung cancer as the leading cause of cancer deaths in men. There were an estimated 18,200 new cases of prostate cancer in Canada in 2002 and the American Cancer Society estimates that there will be 220,900 new cases in the US in 2003.

About Oncolytics Biotech Inc.

Oncolytics is a Calgary-based biotechnology company focused on the development of REOLYSIN(R), its proprietary formulation of the human reovirus, as a potential cancer therapeutic. Oncolytics'researchers have demonstrated that the reovirus is able to selectively kill human cancer cells in vitro that are derived from many types of cancer, including breast, prostate, pancreatic and brain tumours, and have also demonstrated successful cancer treatment results in a number of animal models. Phase I clinical trial results have indicated that REOLYSIN(R) was well tolerated and that the reovirus demonstrated activity in tumours injected with REOLYSIN(R).

This news 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 Company's belief as to: the Company's expectations as to the safety and efficacy of REOLYSIN(R) including application by systemic delivery; and the Company's expectations as to the design, timing and success of its planned clinical trial programs, 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 efficacy of REOLYSIN(R) as a cancer treatment, the success and timely completion of clinical studies and trials, 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.


For Canada: Oncolytics Biotech Inc.



CONTACT: TEL: (403) 670-7377 Brad Thompson
FAX: (403) 283-0858
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For Canada:
TEL: (416) 815-0700 ext. 233 Joanna Longo, The Equicom Group Inc.
FAX: (416) 815-0080

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For United States:
TEL: (212) 825-3210 Gino De Jesus or Dian Griesel, Ph.D.
FAX: (212) 825-3229 The Investor Relations Group
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