Oncolytics Biotech Inc. Appoints New Board Member.

Business Editors

CALGARY, ALBERTA--(BUSINESS WIRE)--July 12, 2000

ONCOLYTICS Biotech Inc. ("Oncolytics") (TSE:ONC.)(CDNX:ONC.) today announced that the Board of Directors of Oncolytics have appointed Mr. Robert B. Schultz, F.C.A. to the Board.

Mr. Schultz was formerly Chairman and Chief Executive Officer of Merrill Lynch Canada, a role he assumed in August 1998, after orchestrating the merger of Midland Walwyn with Merrill Lynch. On May 1, 2000 Mr. Schultz retired as Chairman and CEO, and continues to maintain an association with Merrill Lynch as a Director and Special Advisor.

"We are pleased to welcome Mr. Schultz to our Board," said Dr. Thompson, Chairman, President and CEO of Oncolytics. "His vast experience in the securities industry and his breadth of management and Board experience will clearly assist us in successfully reaching our full potential."

At Midland Walwyn, Mr. Schultz was Chief Executive Officer from 1990, a position he assumed shortly after the merger of Midland Doherty with Walwyn Stodgell. Prior to the merger he held the position of President and COO of Walwyn Stodgell. Since joining the securities industry in 1971, Mr. Schultz has held a variety of other senior positions.

Mr. Schultz served on the Board of Directors of the Investment Dealers Association of Canada ("IDA") from 1991 to 1996, and was Chairman from June 1994 to June 1995. He also served as Chairman of the Canadian Investor Protection Fund from April 1996 to April 1998, and has served on various committees of both the IDA and the Toronto Stock Exchange. He is currently Chair, Law Division for the United Way of Greater Toronto 2000 Campaign Cabinet, Chairman of the P.C. Ontario Fund and Chairman of the Board of Directors of St. Joseph's Health Centre Foundation.

Mr. Schultz received a Bachelor of Commerce degree from the University of Manitoba in 1965, and obtained his C.A. designation in 1969 while articling at Deloitte, Haskins and Sells.

Oncolytics is a biotechnology company whose focus is the development of the reovirus known as REOLYSIN(R) as a potential cancer therapeutic. The human reovirus infects and kills cancer cells with an activated Ras pathway. Ras is an important component of a pathway controlling normal growth and differentiation of a cell and when activated, may account for a large proportion of all human tumours. Researchers believe that targeting this pathway could have broad potential in the treatment of many cancers. Oncolytics researchers demonstrated the REOLYSIN(R) was selectively able to kill cancer cells with this particular activation and successfully demonstrated that the virus could kill human cancer cells in vitro derived from breast, prostate, pancreatic, and brain tumours, as well as being able to treat tumours successfully in a number of animal models. Oncolytics initiated a Phase I clinical trial on REOLYSIN(R) in June of 2000.

This release contains certain forward-looking statements which involve known and unknown risks, delays, uncertainties and other factors not under the Company's control which may cause actual results, performance or achievements of the Company to be materially different from the results, performance or expectations implied by these forward-looking statements.