| FOR IMMEDIATE RELEASE AUTOIMMUNE INC. REPORTS 2003 SECOND QUARTER FINANCIAL RESULTS Pasadena, California, August 7, 2003 – AutoImmune Inc. (Nasdaq: AIMM) today reported a net loss of $0.14 million, or $0.01 per share basic and diluted, for the three months ended June 30, 2003, compared with a net loss of $0.18 million, or $0.01 per share basic and diluted, for the three months ended June 30, 2002. For the six months ended June 30, 2003, net income was $0.89 million, or $0.05 per share basic and diluted, compared with a net loss of $0.39 million, or $0.02 per share basic and diluted, for the six months ended June 30, 2002. Results for the six months ended June 30, 2003 reflect receipt of the final payment in March 2003 from a subsidiary of Elan Corporation plc for its purchase of AutoImmune's rights to certain patent applications. As of June 30, 2003, the Company reported $11.0 million in cash and marketable securities. Robert C. Bishop, Ph.D., Chairman of the Board and Chief Executive Officer stated, "During the second quarter, Colloral LLC, AutoImmune's joint venture with Deseret Laboratories International, reported small but increasing sales of Colloral®, a product for nutritional support of patients with rheumatoid arthritis. The joint venture is planning to expand marketing efforts over the next several quarters and, under the currently applicable accounting model, we will begin to recognize income when profits exceed cumulative start-up costs.” BioMS recently confirmed in a press release that its advanced phase clinical trial of MBP8298 treatment for chronic progressive multiple sclerosis, which utilizes intellectual property rights exclusively licensed from AutoImmune, is scheduled to start before the end of this year. 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., is considering various options 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 will receive both a milestone payment and a royalty on sales. Results from the oral insulin arm of the NIH sponsored diabetes prevention trial (DPT-1) were presented at the ADA meeting in New Orleans. Although there was a trend in favor of the treated group versus the placebo group, the data did not reach statistical significance. It is expected the results will be submitted for publication and there remains the possibility that sub-group analysis will suggest additional trials worth considering. AutoImmune has agreed to help sponsor a New York Academy of Sciences meeting titled “Oral Tolerance: Mechanisms and Applications” to be held at Mt Sinai Medical Center in New York City, October 23-26, 2003. AutoImmune is a biopharmaceutical company involved in the development of a new class of mucosally administered therapies for the treatment 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. Contact: AutoImmune
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