Vancouver, CANADA, July 18, 2000 - Micrologix Biotech Inc. today reported a net loss of $8,659,873 or $0.32 per common share for the year ended April 30, 2000 ("Fiscal 2000"), compared to a net loss of $6,506,709 or $0.28 per common share for the year ended April 30, 1999 ("Fiscal 1999"). The net loss for the three months ended April 30, 2000 was $2,975,910 or $0.10 per common share compared to a net loss of $1,776,559 or $0.08 per common share for the same period in 1999.

"Micrologix achieved several major clinical milestones in Fiscal 2000 and I am confident that even more will be accomplished in the year ahead," said Dany Hadary, President and CEO of Micrologix. "Following the completion of Phase I, we received fast track designation from the FDA and successfully completed Phase II clinical trials for MBI 226, which is targeted at preventing catheter-related bloodstream infections, a very serious and often fatal medical condition for which effective therapeutic options are limited. Two additional drug candidates - MBI 594AN for the treatment of acne and MBI 853NL for the prevention of hospital-acquired infections caused by Staphylococcus aureus entered Phase I clinical trials. In the year ahead, we intend to move these three products into advanced-stage clinical trials, including MBI 226 into pivotal Phase III studies in the third quarter of 2000. These studies will form the basis for a New Drug Application to market MBI 226 in the United States."

At April 30, 2000 the Company's cash, cash equivalents and marketable securities were $56,609,832 an increase of $46,058,905 from April 30, 1999. This increase consists of $51,100,079 proceeds ($50,921,178 net of financing costs payable) from two equity financings completed during Fiscal 2000, $2,182,834 received from the exercise of after-market support options, warrants and stock options, less $6,699,999 used for operating activities and $524,009 to fund capital expenditures. There are currently 35,797,142 (April 30, 2000 - 31,536,517) common shares issued and outstanding.

Operating expenses in Fiscal 2000 increased 36% to $9,683,066, an increase of $2,550,177 compared with Fiscal 1999. This increase was principally due to the expansion and advancement of the Company's clinical development programs including the initiation and completion of the Phase II clinical trial for MBI 226 and preparations for Phase III, and the initiation of Phase I clinical trials for MBI 594AN and MBI 853NL. Clinical development program costs increased 135% to $3,376,880 in Fiscal 2000, an increase of $1,940,554 compared with Fiscal 1999. Other research and development expenses were $3,560,571 in Fiscal 2000 compared with $3,629,740 in Fiscal 1999. General and corporate expenses increased 33% to $2,745,615 in Fiscal 2000. Interest income was $1,023,193 in Fiscal 2000, an increase of $397,013 compared with Fiscal 1999, principally due to higher average cash balances.

	At April 30
Balance Sheets	2000	1999
Cash, cash equivalents and marketable securities	$56,609,832	$10,550,927
Other current assets	167,351	239,939
Total current assets	56,777,183	10,790,866
Capital assets	2,156,795	2,706,103
Total assets	$58,933,978	$13,496,969

Current liabilities	$2,050,438	$1,029,849
Deferred rental inducement	¾	27,719
Shareholders’ equity2	56,883,540	12,439,401
Total liabilities and shareholders’ equity	$58,933,978	$13,496,969

	Three months ended April 30		Year ended April 30
Statements of Loss and Deficit	2000	1999	2000	1999
Revenue: interest and sundry	$468,430	$125,547	$1,023,193	$626,180
Expenses
Research and development	2,430,976	1,328,196	6,937,451	5,066,066
General and corporate	1,013,364	573,910	2,745,615	2,066,823
	$3,444,340	$1,902,106	$9,683,066	$7,132,889
Net loss	$(2,975,910)	$(1,776,559)	$(8,659,873)	$(6,506,709)
Deficit, beginning of period	(26,624,790)	(19,164,268)	(20,940,827)	(14,434,118)
Deficit, end of period	$(29,600,700)	$(20,940,827)	$(29,600,700)	$(20,940,827)
Net loss per common share3	$(0.10)	$(0.08)	$(0.32)	$(0.28)
Weighted average number of common shares outstanding	31,378,350	23,058,599	27,174,162	23,058,599

¹ Condensed from the Company’s audited financial statements.

² As at July 18, 2000 there are 35,797,142 common shares outstanding, warrants to acquire 3,316,250 common shares, after-market support options to acquire 849,832 common shares, options to acquire 2,253,301 common shares and other commitments to issue approximately 172,000 common shares outstanding.

³ Loss per share is based on the weighted average number of common shares outstanding during the period including the Company’s shares held in escrow. Since the Company’s stock options, special warrants, warrants, after-market support options and warrants are anti-dilutive, fully diluted loss per common share has not been presented.

The Company’s Annual General Meeting will be held on September 7, 2000 at 2:00 p.m. in the Cheakamus Room at the Waterfront Centre Hotel, Vancouver, British Columbia. The record date is July 31, 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’s portfolio of antibiotic drug candidates is based on improved analogs of the anti-infective peptides found in the host-defense systems of most life forms. These peptides overcome conventional antibiotic resistance and extensive research by Micrologix and independent researchers indicates that it will be extremely difficult for resistance to develop to them.