Oncolytics Biotech® Inc. Announces Closing of Common Share Offering

     Oncolytics Biotech® Inc. Announces Closing of Common Share Offering

PR Newswire

CALGARY, Feb. 25, 2013

CALGARY, Feb. 25, 2013 /PRNewswire/ -  Oncolytics Biotech Inc.  ("Oncolytics")
(TSX:ONC; NASDAQ:ONCY) announced today that it has closed its previously
announced underwritten public offering of 8.0 million common shares, at a
public offering price of US$4.00 per common share.  The aggregate gross
proceeds from the offering, before deducting underwriting discounts and
commissions and offering expenses payable by Oncolytics, were approximately
US$32.0 million.

The offering was  conducted by Piper  Jaffray & Co.  and Wedbush PacGrow  Life 
Sciences acting as joint  book-running managers for the  offering in the  U.S. 
and Paradigm Capital Inc.  acting as co-manager in  the U.S. and  book-running 
manager in Canada.

The Company has granted  to the underwriters participating  in the offering  a 
30-day option to  purchase up to  an additional 1.2  million common shares  to 
cover over-allotments, if any.

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 were  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  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 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