September 25, 2002

News Release: Oncolytics Biotech Inc. Announces Issuance of Fifth U.S. Patent Covering REOLYSIN(R) Technology

Oncolytics Biotech Inc. (TSX: ONC, NASDAQ: ONCY) ('Oncolytics') has been granted U.S. Patent 6,455,038 entitled "Reovirus for the treatment of cellular proliferative disorders." This patent covers the use of various strains and combinations of reoviruses, wherein one or more of the reoviruses may be immunoprotected, as a treatment for Ras-mediated proliferative disorders, such as neurofibromatosis and cancer in an immunocompetent mammal. "We are pleased with the patent protection Oncolytics is securing," said Dr. Matt Coffey, Vice President of Product Development. "With the issuance of our fifth U.S. patent covering REOLYSIN(R) technology, the Company is becoming well-positioned in this novel therapeutic area. We have over 100 additional patent applications pending worldwide and we expect to continue to expand our patent portfolio for REOLYSIN(R)."

About Oncolytics Biotech Inc.

Oncolytics is a Calgary-based biotechnology company focused on the development of the human reovirus (REOLYSIN(R)) as a potential cancer therapeutic. Oncolytics' researchers have demonstrated that the reovirus is able to selectively kill cancer cells and, in vitro, kill human cancer cells derived from many types of cancer including breast, prostate, pancreatic and brain tumours. Research has also yielded successful cancer treatment results in a number of animal models. Phase I clinical trial results have indicated that there were no toxicology-related issues with the administration of the reovirus, and that the reovirus demonstrated activity in injected tumours. Oncolytics is currently conducting a T2 prostate cancer trial, and a Phase I/II recurrent malignant glioma (brain cancer) trial.

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 Company's belief as to the potential of REOLYSIN(R) as a cancer therapeutic, the Company's expectations regarding the issuance of additional patents and the benefits provided by current and prospective patents, and the Company's ability to protect its intellectual property, 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), the development of alternative products or treatments by the Company's competitors, the inability of the Company to defend its patents from infringement by third parties, the risk that the Company's patents may be subsequently shown to be invalid, 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 further information: PLEASE CONTACT: For Canada: Oncolytics Biotech
Inc., Dr. Matt Coffey, 210, 1167 Kensington Cr NW, Calgary, Alberta T2N 1X7,
Tel: (403) 670-7377, Fax: (403) 283-0858, www.oncolyticsbiotech.com; For
Canada: The Equicom Group Inc., Jason Hogan, 20 Toronto Street, Toronto,
Ontario M5C 2B8, Tel: (416) 815-0700 ext. 222, Fax: (416) 815-0080,
jhogan(at)equicomgroup.com; For United States: The Investor Relations Group,
Gino De Jesus or Dian Griesel, Ph.D., 50 Pine Street, 6th Floor, New York, NY
10005, Tel: (212) 825-3210, Fax: (212) 825-3229, theproteam(at)aol.com

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