Oncolytics Biotech® Inc. Announces Common Share Offering

           Oncolytics Biotech® Inc. Announces Common Share Offering

PR Newswire

CALGARY, Feb. 19, 2013

CALGARY, Feb. 19, 2013 /PRNewswire/ -  Oncolytics Biotech Inc.  ("Oncolytics")
(TSX:ONC; NASDAQ:ONCY) announced  today its intention,  subject to market  and 
other conditions,  to  commence  an underwritten  public  offering  of  common 
shares. The number of common shares to  be distributed and the price of  each 
common share will be determined in the context of the market with final  terms 
to be determined at the time of pricing.

Piper Jaffray  & Co.  and Wedbush  PacGrow  Life Sciences  will act  as  joint 
book-running managers for the offering in  the U.S. and Paradigm Capital  Inc. 
will act as  co-manager in the  U.S. and book-running  manager in Canada.  The 
Company expects  to grant  the underwriters  participating in  the offering  a 
30-day option to  purchase up to  an additional  15 percent of  the number  of 
common shares sold pursuant to the offering to cover over-allotments, if  any. 
The offering is subject to market conditions, and there can be no assurance as
to whether or when the offering may be completed, or as to the actual size  or 
terms of the offering.

Oncolytics intends  to use  the net  proceeds from  the offering  to fund  its 
clinical trial program,  manufacturing program and  for general corporate  and 
working capital purposes.

The common  shares are  being offered  in each  of the  Canadian provinces  of 
British Columbia,  Alberta,  Manitoba  and  Ontario by  way  of  a  prospectus 
supplement to the Company's base shelf short form prospectus and in the United
States pursuant to a  prospectus supplement to  the Company's effective  shelf 
registration statement on  Form F-10  (333-182260) previously  filed with  the 
United States Securities  and Exchange  Commission. Copies  of the  prospectus 
supplement and accompanying base  prospectus relating to  the offering may  be 
obtained  from   the   Securities   and   Exchange   Commission   website   at 
http://www.sec.gov, from  the  System  for Electronic  Document  Analysis  and 
Retrieval (SEDAR) website at http://www.sedar.com or from the underwriters at:

Piper Jaffray & Co.
800 Nicollet Mall, J12S03, Minneapolis, MN 55402
Email: prospectus@pjc.com
Telephone: (800) 747-3924

Wedbush Securities Inc.
One Bush Street, 17th floor, San Francisco, CA 94104, Attn: SF Prospectus
Department
Phone: 415-274-6819
Fax: 415-274-6887

Before you invest, you should read the prospectus supplement and  accompanying 
prospectus, the  registration  statement, and  the  other documents  that  the 
Company has  filed  with  the  Securities and  Exchange  Commission  for  more 
complete information about the Company and this offering.

This press release does not and shall  not constitute an offer to sell or  the 
solicitation of an offer to buy any of the securities, nor shall there be  any 
sale of  the securities  in any  state or  jurisdiction in  which such  offer, 
solicitation or sale would be unlawful prior to registration of  qualification 
under the securities laws of any state or jurisdiction.

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 human trials including a Phase III trial in head
and neck cancers using REOLYSIN^®, its proprietary formulation of the human
reovirus.

This press release contains forward-looking  statements within the meaning  of 
the U.S. Securities Act of 1933, as amended, and U.S. Securities Exchange  Act 
of 1934, as  amended, and  forward-looking information within  the meaning  of 
Canadian securities  laws. Statements,  other  than statements  of  historical 
facts, included  in this  press  release that  address activities,  events  or 
developments that Oncolytics expects or anticipates  will or may occur in  the 
future, including such things  as the proposed offering  of common shares  and 
the intended  use  of proceeds  and  other such  matters  are  forward-looking 
statements and forward-looking information and 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 and  forward-looking 
information. Such risks and uncertainties include, among others, risks related
to the market conditions  of the offering and  risks related to the  Company's 
business which may result in the intended use of proceeds changing.  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  statement and  forward-looking 
information.  Investors  are  cautioned  against  placing  undue  reliance  on 
forward-looking statements and forward-looking  information. The Company  does 
not undertake to update  these forward-looking statements and  forward-looking 
information, except as required by applicable laws.

SOURCE Oncolytics Biotech Inc.

Contact:

Oncolytics Biotech
Kirk Look
210, 1167 Kensington Cr NW
Calgary, Alberta T2N 1X7
Tel: 403.670.7377
Fax: 403.283.0858
klook@oncolytics.ca

The Equicom Group
Nick Hurst
300 5^th Ave. SW, 10^th Floor
Calgary, Alberta T2P 3C4
Tel: 403.218.2835
Fax: 403.218.2830
nhurst@equicomgroup.com

Dian Griesel, Inc.
Susan Forman
396 West Broadway, 2^nd Floor
New York, NY 10012
Tel: 212.825.3210
Fax: 212.825.3229
sforman@dgicomm.com
 
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