Oncolytics Biotech® Inc. Announces 2012 Year End Results

           Oncolytics Biotech® Inc. Announces 2012 Year End Results

PR Newswire

CALGARY, March 14, 2013

CALGARY, March 14, 2013 /PRNewswire/ - Oncolytics Biotech Inc. (TSX:ONC)
(NASDAQ:ONCY) ("Oncolytics" or the "Company") today announced its financial
results and operational highlights for the year ended December 31, 2012.

"We were very pleased to present  our first randomized clinical data from  our 
head and  neck  cancer  clinical  study in  2012,"  said  Dr.  Brad  Thompson, 
President and  CEO  of Oncolytics.  "In  addition,  in order  to  support  our 
program, which now includes seven randomized studies in different indications,
we completed two financings over the last 14 months raising gross proceeds  in 
excess of $50 million."

Selected Highlights

Since January 1, 2012, the Company has made a number of significant
announcements including:

Clinical Trial Results

  *Reporting initial positive top line data from the first endpoint in the
    double-blinded randomized Phase III clinical study examining REOLYSIN^® in
    combination with carboplatin and paclitaxel in second-line patients with
    platinum-refractory, taxane-naïve head and neck cancers (REO 018). The
    endpoint examined initial percentage tumour changes between the
    pre-treatment and first post-treatment scans (typically performed at six
    weeks post-first treatment) of all patients enrolled in the study and was
    designed to assess early differences in response between loco-regional
    tumours and metastatic tumours, as classified and observed by the
    investigators;

  *Reaching the primary endpoint in the first stage of a U.S. Phase 2
    clinical trial in patients with squamous cell carcinoma of the lung
    (SCCLC) using intravenous administration of REOLYSIN in combination with
    carboplatin and paclitaxel (REO 021) and subsequently reporting positive
    percent overall tumour shrinkage data;

  *Poster presentations at the EORTC-NCI-AACR Symposium on Molecular Targets
    and Cancer Therapeutics reporting positive clinical data from a study in a
    Phase 2 clinical trial using intravenous administration of REOLYSIN in
    combination with paclitaxel and carboplatin in patients with non-small
    cell lung cancer (NSCLC) with Kras or EGFR-activated tumours (REO 016) and
    a U.S. Phase 2 clinical trial using intravenous administration of REOLYSIN
    ^ in combination with gemcitabine (Gemzar^®) in patients with advanced
    pancreatic cancer (REO 017);

  *Publication of a paper entitled "Cell Carriage, Delivery, and Selective
    Replication of an Oncolytic Virus in Tumor in Patients," in the June 13, ^
    2012 issue of the journal Science Translational Medicine (Vol. 4 Issue 138
    138ra77), covering findings from a U.K. translational clinical trial (REO
    013) investigating intravenous administration of REOLYSIN in patients with
    metastatic colorectal cancer prior to surgical resection of liver
    metastases. The researchers found that intravenously-administered reovirus
    could specifically target and infect metastatic liver tumors in 90% of the
    patients, even though all patients treated had had a pre-existing immunity
    to the virus;

Clinical Trial Program

  *Expansion of enrollment in the first stage of a Phase III head and neck
    cancer clinical trial (REO 18) to include 167 patients and introduction of
    an additional patient segregation to differentiate between patients with
    local recurrent disease, with or without metastases, and patients with
    distal metastases while maintaining the blind;

  *Completion of patient enrollment in a U.S. Phase 2 clinical trial
    evaluating intravenous administration of REOLYSIN in combination with
    paclitaxel and carboplatin in patients with non-small cell lung cancer
    (NSCLC) with Kras or EGFR-activated tumours (REO 016);

  *Completion of patient enrollment in a U.S. Phase 2 clinical trial using
    intravenous administration of REOLYSIN in combination with gemcitabine
    (Gemzar^®) in patients with advanced or metastatic pancreatic cancer (REO
    017);

  *Completion of enrollment in a U.K. Phase I clinical trial using
    intravenously-administered REOLYSIN in combination with cyclophosphamide
    in patients with advanced malignancies (REO 012);

  *Completion of enrollment in a U.S. Phase 1 clinical trial using
    intravenously-administered REOLYSIN in combination with FOLFIRI in
    patients with colorectal cancer (REO 022);

  *Entry into multiple agreements whereby the NCIC Clinical Trials Group
    (CTG) at Queen's University in Kingston, Ontario, will sponsor and conduct
    randomized Phase II studies of REOLYSIN in patients with recurrent or
    metastatic castration resistant prostate cancer, advanced or metastatic
    colorectal cancer, advanced or metastatic non-small cell lung cancer, and
    advanced or metastatic breast cancer;

Management

  *Appointment of Mr. Kirk Look to the role of Chief Financial Officer;

  *Appointment of Dr. Alan Tuchman to the role of Chief Medical Officer and
    Senior Vice President, Clinical and Medical Development;

Financial

  *Closing of a bought deal financing in February 2012, which was increased
    post-announcement from $15 million to $18.5 million, for gross proceeds of
    $21.3 million following the full exercise of the over-allotment option by
    the syndicate of underwriters; and

  *Subsequent to year-end, closing of an underwritten public offering of 8.0
    million common shares, at a public offering price of US$4.00 per common
    share for aggregate gross proceeds from the offering, before deducting
    underwriting discounts and commissions and offering expenses, of
    approximately US$32.0 million.

                        ONCOLYTICS BIOTECH INC.
             CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

                                           December 31,    December 31,
                                             2012            2011
                                               $               $
Assets                                                                
Current assets                                                        
Cash and cash equivalents                   19,323,541     32,918,751 
Short-term investments                       1,969,228      1,936,787 
Accounts receivable                             44,979         55,392 
Prepaid expenses                               331,094        721,576 
Total current assets                        21,668,842     35,632,506 
                                                                   
Non-current assets                                                     
Property and equipment                         409,248        392,111 
Total non-current assets                       409,248        392,111 
                                                                   
                                                                     
Total assets                                22,078,090     36,024,617 
                                                                   
Liabilities And Shareholders' Equity                                  
Current Liabilities                                                   
Accounts payable and accrued liabilities     7,291,310      6,504,238 
Total current liabilities                    7,291,310      6,504,238 
                                                                   
Shareholders' equity                                                  
                                                                     
Share capital                                                       
     Authorized: unlimited                                         
     Issued:                                                       
     December 31, 2012 - 76,710,285                                
     December 31, 2011 - 71,251,335      198,155,091    177,282,566 
Warrants                                       376,892      2,653,627 
Contributed surplus                         24,126,265     21,142,519 
Accumulated other comprehensive loss          (57,115)      (117,501) 
Accumulated deficit                      (207,814,353)  (171,440,832) 
Total shareholders' equity                  14,786,780     29,520,379 
Total liabilities and equity                22,078,090     36,024,617 

                           ONCOLYTICS BIOTECH INC.
            CONSOLIDATED STATEMENTS OF LOSS AND COMPREHENSIVE LOSS

                                      2012           2011           2010
For the years ending December 31,       $              $              $
                                                             
Expenses                                                                   
Research and development            31,402,625    23,386,685    13,882,565 
Operating                            5,285,425     5,334,582     6,003,870 
Loss before the following         (36,688,050)  (28,721,267)  (19,886,435) 
Write down of asset available for            —     (735,681)             — 
sale
Change in fair value of warrant              —        36,000   (4,841,949) 
liability
Interest                               345,003       416,247        76,934 
Loss before income taxes          (36,343,047)  (29,004,701)  (24,651,450) 
Income tax expense                    (30,474)      (40,000)       (7,611) 
Net loss                          (36,373,521)  (29,044,701)  (24,659,061) 
                                                                       
Other comprehensive gain (loss) -       60,386        39,159     (156,660) 
translation adjustment
                                                                       
Net comprehensive loss            (36,313,135)  (29,005,542)  (24,815,721) 
Basic and diluted loss per common       (0.48)        (0.41)        (0.39) 
share
                                                                       
Weighted average number of shares   76,102,062    70,911,526    62,475,403 
(basic and diluted)

                                        ONCOLYTICS BIOTECH INC.
                             CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
                                                                                          
                                                          Accumulated
                                                         Other                                  
                 Share                    Contributed   Comprehensive    Accumulated
               Capital      Warrants      Surplus         Income          Deficit         Total
                  $            $            $              $              $             $       
                                                                                          
As at         155,439,610    4,108,652    19,399,489      (156,660)  (142,396,131)    36,394,960 
December 31,
2010
                                                                                          
Net loss and            —            —             —         39,159   (29,044,701)  (29,005,542) 
comprehensive
income
Exercise of    21,487,080  (1,455,025)             —              —              —    20,032,055 
warrants
Exercise of       355,876            —      (62,473)              —              —       293,403 
stock options
Share based             —            —     1,805,503              —              —     1,805,503 
compensation
                                                                                          
As at         177,282,566    2,653,627    21,142,519      (117,501)  (171,440,832)    29,520,379 
December 31,
2011
                                                                                          
Net loss and            —            —             —         60,386   (36,373,521)  (36,313,135) 
comprehensive
income
Issued,        19,386,903      376,892             —              —              —    19,763,795 
pursuant to a
bought deal
financing
Expiry of               —  (2,653,627)     2,653,627              —              —             — 
warrants
Exercise of     1,485,622            —     (400,632)              —              —     1,084,990 
stock options
Share based             —            —       730,751              —              —       730,751 
compensation
                                                                                          
As at         198,155,091      376,892    24,126,265       (57,115)  (207,814,353)    14,786,780 
December 31,
2012

                           ONCOLYTICS BIOTECH INC.
                    CONSOLIDATED STATEMENTS OF CASH FLOWS

                                       2012           2011           2010
For the years ending December 31,       $              $              $
                                                                          
                                                             
Operating Activities                                                       
Net loss for the year             (36,373,521)  (29,044,701)  (24,659,061) 
Amortization - property and            109,275        92,590        63,156 
equipment
Share based compensation               730,751     1,805,503     3,251,041 
Change in fair value of warrant              —      (36,000)     4,841,949 
liability
Write down of asset available for            —       735,681             — 
sale
Unrealized foreign exchange loss        89,890       115,234       343,821 
Net change in non-cash working       1,187,967     3,790,510   (1,717,978) 
capital
Cash used in operating activities (34,255,638)  (22,541,183)  (17,877,072) 
                                                                       
Investing Activities                                                       
Acquisition of property and          (126,412)     (257,790)      (81,846) 
equipment
Acquisition of investment                    —             —      (51,681) 
Redemption (purchase) of              (32,441)     1,672,459   (1,929,309) 
short-term investments
Cash provided by (used in)           (158,853)     1,414,669   (2,062,836) 
investing activities
                                                                       
Financing Activities                                                       
Proceeds from exercise of stock      1,084,990    14,824,658       528,211 
options and warrants
Proceeds from public offering       19,763,795             —    26,759,921 
Cash provided by financing          20,848,785    14,824,658    27,288,132 
activities
Increase (decrease) in cash       (13,565,706)   (6,301,856)     7,348,224 
Cash and cash equivalents,          32,918,751    39,296,682    32,448,939 
beginning of year
Impact of foreign exchange on         (29,504)      (76,075)     (500,481) 
cash and cash equivalents
Cash and cash equivalents, end of   19,323,541    32,918,751    39,296,682 
year

To view the Company's Fiscal  2012 Consolidated Financial Statements,  related 
Notes to Consolidated  Financial Statements, and  Management's Discussion  and 
Analysis, please see the Company's  quarterly filings which will be  available 
on www.sedar.com  and on www.oncolyticsbiotech.com.

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.  For   further   information   about   Oncolytics,   please   visit: 
www.oncolyticsbiotech.com.

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 as  a cancer  therapeutic; the  Company's expectations  as to  the 
success of  its research  and development  programs in  2013 and  beyond,  the 
Company's  planned  operations,  the  value  of  the  additional  patents  and 
intellectual property; the Company's expectations related to the  applications 
of the patented technology; the Company's  expectations as to adequacy of  its 
existing capital resources;  the design, timing,  success of planned  clinical 
trial programs; and  other statements related  to anticipated developments  in 
the Company's business and  technologies 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 as  a 
cancer treatment, the success  and timely completion  of clinical studies  and 
trials,  the  Company's  ability   to  successfully  commercialize   REOLYSIN, 
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,  except  as required  by  applicable 
laws.



SOURCE Oncolytics Biotech Inc.

Contact:

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Fax: 212.825.3229
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