SAFC, Oncolytics Biotech sign commercial supply agreement for REOLYSIN

May 11 2011

Oncolytics Biotech Inc. (TSX: ONC) (NASDAQ: ONCY) ("Oncolytics" or the "Company") today announced that it has entered into a commercial supply agreement with SAFC, a Division of Sigma-Aldrich Corporation, for the commercial manufacture of REOLYSIN^®, Oncolytics proprietary reovirus. Under the terms of the agreement, SAFC will perform process validation of the product, will continue to supply clinical requirements and will supply commercial material upon approval of the product.

"As a leading global provider of high-quality and reliable biologics manufacturing services we are eager to work with companies focused on bringing novel products to market," said Gilles Cottier, President of SAFC. "SAFC has worked closely with Oncolytics to develop, scale-up, and optimize manufacturing of REOLYSIN, advancing it to the commercial level."

"This agreement represents a significant step forward in the drive to commercialize REOLYSIN as we prepare to produce expanded clinical supplies and build inventory for potential commercial sales," said Dr. Matt Coffey, Chief Operating Officer of Oncolytics. "Having worked with a recognized world leader on the efficient manufacture of REOLYSIN for several years now, we feel we are well positioned with this element of our overall plan to commercialize REOLYSIN."