Vancouver, CANADA, March 20, 2000 - Micrologix Biotech Inc. today closed the $40 million financing announced on March 8, 2000. A total of 4,000,000 special warrants were issued at a price of $10.00 per special warrant. Each special warrant entitles the holder to acquire, at no additional cost, one common share of Micrologix. The syndicate of underwriters co-led by TD Securities Inc. and Yorkton Securities Inc. included RBC Dominion Securities Inc., Goepel McDermid Inc. and Canaccord Capital Corporation.

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. Micrologix completed Phase II clinical trials for MBI 226 in January 2000 and plans to initiate Phase III clinical trials in Q3 2000. The proceeds 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. Both MBI 594AN and MBI 853NL are currently in Phase I trials in the US with Phase II trials anticipated to commence in H2 2000.

"It was important to Micrologix not only to have a strong syndicate manage the financing but also one that is aligned with, and supports the Company's long-term financial strategy" said Dany Hadary, President and CEO. "To this end, we have granted the underwriters warrants to purchase up to 400,000 common shares in two equal nine-month tranches, at $12.00 per share in the first nine-month tranche and $14.50 per share in the second nine-month tranche."

"The enhanced cash position will allow Micrologix to advance further its clinical programs prior to entering into strategic alliances with major pharmaceutical companies and greater flexibility in securing terms of maximum benefit to Micrologix and its shareholders", Mr. Hadary added.

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.