AUTOIMMUNE INC. REPORTS FOURTH QUARTER AND YEAR END FINANCIAL RESULTS

FOR IMMEDIATE RELEASE

AUTOIMMUNE INC. REPORTS 2002 FOURTH QUARTER AND YEAR END FINANCIAL RESULTS

Pasadena, California, March 5, 2003 – AutoImmune Inc. (Nasdaq: AIMM) today reported a net loss of $0.25 million, or $0.01 per share basic and diluted, for the three months ended December 31, 2002, compared with net loss of $0.10 million, or $0.01 per share basic and diluted, for the same period prior year. For the year ended December 31, 2002, the net loss was $0.89 million, or $0.05 per share basic and diluted, compared with net income of $0.85 million, or $0.05 per share basic and diluted, for the year ended December 31, 2001. The results for the year ended December 31, 2001 reflect receipt of a payment from a subsidiary of Elan Corporation plc for its purchase of AutoImmune’s rights to certain patent applications. During the fourth quarter of 2002, the Company recorded a charge of $100,000 to reflect an impairment of its investment in Oragen Corporation. As of December 31, 2002, the Company reported $10.0 million in cash and marketable securities as compared to $10.8 in cash and marketable securities as of December 31, 2001.

Robert C. Bishop, Ph.D., Chairman of the Board and Chief Executive Officer stated “ AutoImmune made significant progress this past fiscal year through the efforts of its licensees and a new joint venture for the manufacture, marketing and sale of Colloral® as a nutritional supplement.”

BioMS has again confirmed that it anticipates starting an advanced phase clinical trial during the first quarter of 2003 on its MBP8298 treatment for chronic progressive multiple sclerosis, which utilizes intellectual property rights exclusively licensed from AutoImmune. BioMS makes monthly diligence payments to AutoImmune and has a royalty obligation on sales of MBP8298 should it reach the market.

Teva Pharmaceutical Industries, Ltd., has begun planning for the next human clinical studies on an oral formulation of COPAXONE® (glatiramer acetate), a product for the treatment of multiple sclerosis, which utilizes intellectual property rights exclusively licensed from AutoImmune. If Teva is successful in bringing this product to market, AutoImmune should receive both a milestone payment and a royalty on sales.

Recruitment has ended for the oral insulin arm of the NIH sponsored diabetes prevention trial (DPT-1), which is testing a therapeutic method covered by AutoImmune’s intellectual property, and preliminary results are expected toward the middle of this year. If successful, it should open the door to additional licensing opportunities for the company.

Colloral LLC, a joint venture between AutoImmune and Deseret Laboratories International, launched Colloral®, a product for the nutritional support of patients with rheumatoid arthritis, during February 2003. AutoImmune has structured the relationship with Deseret in a manner that allows it to continue conserving financial resources while pursuing additional outlicensing opportunities and waiting for results from externally funded clinical trials.

AutoImmune is a biopharmaceutical company involved in the development of a new class of mucosally administered therapies for thetreatment of autoimmune and cell-mediated inflammatory diseases and conditions.

This release contains forward-looking statements which involve risks and uncertainties. The Company’s actual results may differ significantly from results discussed in the forward-looking statements due to a number of important factors, including, but not limited to the uncertainties of clinical trial results, the Company’s dependence on third parties for licensing revenue, and the risks of technological change and competition. These factors are more fully discussed in the Company’s most recent Annual Report on Form 10-K filed with the Securities and Exchange Commission in the section “Business-Factors to be Considered.” The discussion in the Annual Report on Form 10-K is hereby referenced into this release.