Vancouver, CANADA, September 12, 2000 - Micrologix Biotech Inc. today reported a loss of $1,752,766 or $0.05 per common share for the three months ended July 31, 2000, compared to a loss of $1,983,171 or $0.09 per common share for three months ended July 31, 1999.

The decrease in loss is due to the increase in interest income resulting from the Company's enhanced cash position and higher rates of return thereon. Interest income was $790,412 compared to $97,601 in 1999. At July 31, 2000, the Company's cash, cash equivalents and marketable securities were $54,941,873. Expenses increased 22% primarily due to the expansion and advancement of the Company's clinical development programs. Research and development expenses were $1,876,974, an increase of 29%. General and corporate costs increased 6% to $666,204.

During the quarter, the Company continued preparations for two pivotal phase III clinical trials of MBI 226 which is targeted at preventing catheter-related bloodstream infections. These studies are on track to start later this month. Additionally during the quarter, phase I studies were successfully completed for MBI 594AN in the treatment of acne and for MBI 853NL in the prevention of hospital-acquired infections caused by Staphylococcus aureus. Preparations are underway to initiate further clinical trials of MBI 594AN and MBI 853NL in the fourth quarter of 2000.

The Company's cash, cash equivalents and marketable securities decreased $1,667,959 during the quarter. This decrease consists of $1,779,124 used for operating activities, $378,573 to fund capital expenditures and $145,649 to fund expenses associated with the March special warrant financing, less $635,387 received from the exercise of warrants and stock options.

On August 30, 2000, the Company announced the receipt of approximately $8.6 million pursuant to the exercise of warrants and after-market support options increasing the Company's cash position to approximately $63 million. There are currently 39,311,809 (July 31, 2000 - 35,802,142) common shares issued and outstanding.

ANNUAL AND EXTRAORDINARY GENERAL MEETING

On September 7, 2000, Micrologix held its Annual and Extraordinary General Meeting. The Company's shareholders approved all resolutions including the adoption of the 2000 Incentive Stock Option Plan, an increase in the authorized capital and the adoption of the Shareholder Rights Plan announced August 9, 2000. Details of these matters were included in the Information Circular mailed to shareholders.

At the meeting, shareholders also elected the seven directors proposed by management. Re-elected were William (Bud) Foran, Chairman of the Board; Dany Hadary, Keith Dorrington, Steven Gillis, Colin Mallet and Robert Rieder. Joining the board is newly elected member David Scott. Mr. Scott, Chairman of AnorMED Inc., brings to Micrologix's board of directors over 30 years in investment analysis and management experience.

CORPORATE PROFILE

Micrologix Biotech Inc. develops novel drugs targeted at severe and life-threatening diseases-particularly those caused by antibiotic-resistant bacteria. The Company's portfolio of antibiotic drug candidates is based on improved analogs of naturally occurring cationic peptides found in the host defense systems of most life forms. Micrologix currently has three drugs in clinical trials in the US -- MBI 226 for the prevention of catheter-related bloodstream infections, MBI 594AN for the treatment of acne and MBI 853NL for the prevention of hospital-acquired Staphylococcus aureus infections. Under FDA fast track designation, the Company plans to initiate Phase III clinical trials of MBI 226 in September 2000. Micrologix recently completed Phase I clinical trials of MBI 594AN and MBI 853NL and anticipates initiating further clinical trials for these drug candidates during the fourth quarter of 2000.