Dr. Brad Thompson reports

ONCOLYTICS BIOTECHATRADEMARK INC. ANNOUNCES FIRST QUARTER 2012 RESULTS

Oncolytics Biotech Inc. today released its financial results and operational highlights for the quarter ended March 31, 2012.

"In early April, 2012, we announced that we had completed enrolment in the first, 80-patient stage of our phase III trial in head and neck cancers. The analysis of this patient group will be a significant milestone," said Dr. Brad Thompson, president and chief executive officer of Oncolytics. "We've also significantly expanded our phase II program through agreements with the NCIC which allow us to conduct randomized clinical studies in both prostate and colorectal cancers."

Selected highlights

Since Jan. 1, 2012, the company has made a number of significant announcements.

Clinical trial program:

• Completion of enrolment in the first, 80-patient stage of its phase III clinical trial examining Reolysin in combination with paclitaxel and carboplatin in patients with platinum-refractory head and neck cancers (REO 018);
• Entry into an agreement whereby the NCIC Clinical Trials Group at Queen's University in Kingston, Ont., will sponsor and conduct a randomized phase II study of Reolysin in patients with recurrent or metastatic castration-resistant prostate cancer, enrolling up to 80 patients;
• Entry into an agreement whereby the NCIC CTG at Queen's University will sponsor and conduct a randomized phase II study of Reolysin in patients with advanced or metastatic colorectal cancer, enrolling up to 100 patients;

Preclinical program:

• Presentation of five posters covering preclinical research in a range of cancer types at the 2012 American Association for Cancer Research annual meeting in Chicago, Ill.

Financial:

• Closed bought-deal financing, which was increased postannouncement from $15-million to $18.5-million, for gross proceeds of $21.3-million following the full exercise of the overallotment option by the syndicate of underwriters.

        INTERIM CONSOLIDATED STATEMENTS OF LOSS AND COMPREHENSIVE LOSS

                                                          For the three-month
                                                      period ending March 31,
                                                            2012         2011
Expenses
Research and development                              $7,490,544   $2,971,611
Operating                                              1,088,051    1,127,011
Operating (loss)                                      (8,578,595)  (4,098,622)
Change in fair value of warrant liability                     --       36,000
Interest                                                 120,067       91,506
(Loss) before income taxes                            (8,458,528)  (3,971,116)
Income tax expense                                            --           --
Net (loss)                                            (8,458,528)  (3,971,116)
Other comprehensive (loss) --
translation adjustment                                   (34,259)     (36,880)
Net comprehensive (loss)                              (8,492,787)  (4,007,996)
Basic and diluted (loss) per common share                  (0.11)       (0.06)

We seek Safe Harbor.