Vancouver, CANADA, March 8, 2000 - Micrologix Biotech Inc. is pleased to announce that it has agreed to a $40 million financing with a syndicate of underwriters co-led by TD Securities Inc. and Yorkton Securities Inc. and including RBC Dominion Securities Inc., Goepel McDermid Inc. and Canaccord Capital Corporation.

The underwriters have agreed to purchase on a private placement basis, 4,000,000 special warrants at a price of $10.00 per special warrant. Each special warrant will entitle the holder to acquire, at no additional cost, one common share of Micrologix. The completion of the special warrant financing is subject to regulatory approvals and certain other customary conditions and is expected to close on or about March 20, 2000.

The proceeds from the financing will be used principally to fund later stage clinical development of MBI 226, Micrologix's lead drug product for the prevention of central venous catheter-related bloodstream infections and to advance other products through clinical trials. In January 2000, MBI 226 successfully completed Phase II; the Company plans to initiate Phase III clinical trials in Q3 2000. These studies will form the basis for a New Drug Application to market MBI 226 in the United States. Proceeds from the financing will also be used to fund Phase II clinical trials of MBI 594AN for the treatment of acne and MBI 853NL for the prevention of Staphylococcus aureus (S. aureus) hospital-acquired infections. Each of these drug products is in Phase I trials in the US with Phase II anticipated to commence in H2 2000.

Micrologix Biotech Inc. is a biopharmaceutical company developing novel drugs to treat severe and life-threatening diseases-particularly those caused by antibiotic-resistant microorganisms. Micrologix was granted fast track designation by the US Food and Drug Administration for MBI 226, an antimicrobial drug product for the prevention of central venous catheter-related bloodstream infections which the Company anticipates will be in Phase III clinical trials in Q3 2000. In Q1 2000, Micrologix initiated Phase I clinical trials of MBI 594AN for the treatment of acne and MBI 853NL for the prevention of hospital-acquired S. aureus infections. The Company anticipates completing both trials by mid-2000. Micrologix's portfolio of drug candidates is based on improved analogs of the anti-infective peptide compounds found in the host-defense systems of most life forms.

Note: The offered securities will not be registered under the U.S. Securities Act of 1933 (the "Securities Act") and may not be offered or sold within the United States or to, or for the account or benefit of, U.S. persons except in certain transactions exempt from the registration requirements of the Securities Act.