ONCOLYTICS BIOTECH INC. ANNOUNCES $16.48 MILLION PRIVATE PLACEMENT

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Oncolytics Biotech Inc. ("Oncolytics") (TSX:ONC, NASDAQ:ONCY) announced today that it has entered into a private placement with a number of institutional investors. Under the agreement, Oncolytics will issue 3,200,000 units (the "Units") at a price of $5.15 per Unit, resulting in gross proceeds to the Company of $16,480,000. Each Unit consists of one common share and one-half of one common share purchase warrant, with each whole common share purchase warrant entitling the holder to acquire one common share upon payment of $6.15 per share for a period of 36 months following the closing date.

Canada NewsWire (http://www.newswire.ca/en/releases/archive/December2005/13/c6223.html)