FOR IMMEDIATE RELEASE
AUTOIMMUNE INC. REPORTS 2007 FIRST QUARTER FINANCIAL RESULTS

Pasadena, California, May 10, 2007 &mdash AutoImmune Inc. (OTCBB: AIMM) today reported net income of $8,000, or break even per share basic and diluted, for the three months ended March 31, 2007, compared with a net loss of $298,000, or $0.02 per share basic and diluted, for the three months ended March 31, 2006. As of March 31, 2007, the Company reported $8.8 million in cash and marketable securities, which is the same as cash and marketable securities as of December 31, 2006.

Robert C. Bishop, Ph.D., Chairman of the Board and Chief Executive Officer stated, "We are pleased with our improving financial performance and feel good about our progress so far this year. The NIH has started a multicenter Phase III trial on our product, AI-401, to determine if treatment can delay or prevent Type I diabetes, and Colloral LLC, our joint venture with Deseret Laboratories, Inc., has signed an international supply and distribution agreement with Futurebiotics LLC." AutoImmune consolidates Colloral LLC for financial reporting purposes in accordance with FIN 46 "Consolidation of Variable Interest Entities."

BioMS Medical Corp., a Canadian company which has an exclusive license to certain of the Company's intellectual property rights, recently announced it has received a seventh positive review by the Data Safety Monitoring Board in its Phase II/III human clinical trial of MBP8298 for secondary progressive MS, and again confirmed that interim results from this trial will be available at the end of the second quarter 2008. BioMS also announced that it has received FDA approval to initiate a pivotal Phase III trial on MBP8298 in the United States. Under the license agreement, BioMS makes monthly diligence payments to AutoImmune and will pay royalties to AutoImmune on sales of its lead drug MBP8298, a treatment for multiple sclerosis, if it reaches the market.

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 that 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-KSB filed with the Securities and Exchange Commission in the section "Risk Factors" The discussion in the Annual Report on Form 10-KSB is hereby referenced into this release.

- Financial Chart Follows -


Contact:
Robert C. Bishop, Ph.D.
Chairman and Chief Executive Officer
AutoImmune Inc.
626-792-1235
website: http://www.autoimmuneinc.com

AutoImmune Inc.
1199 Madia Street
Pasadena, CA 91103
Phone: 626-792-1235
Fax: 626-792-1236

AUTOIMMUNE INC.
STATEMENT OF OPERATIONS
(Unaudited)
  Three months ended March 31,
  2006 2007
 
Revenue $97,000 $97,000
 
Costs and expenses:  
Cost of goods sold 9,000 9,000
    Research and development 130,000 30,000
    General and administrative 353,000 185,000
        Total costs and expenses 492,000 224,000
 
Interest income 97,000 110,000
Equity in net loss of unconsolidated affiliate - 25,000
  97,000 135,000
 
Net income (loss) ($298,000) $8,000
 
Net income (loss) per share - basic ($0.02) $0.00
 
Net income (loss) per share - diluted ($0.02) $0.00
 
Weighted average common shares  
    outstanding - basic 16,919,623 16,942,861
 
Weighted average common shares  
    outstanding - diluted 16,919,623 17,439,507


CONDENSED BALANCE SHEET
(Unaudited)
  December 31, March 31,
  2006 2007
Cash and marketable securities $8,763,000 $8,785,000
Other current assets 188,000 242,000
 
    Total assets $8,951,000 $9,027,000
 
Current liabilities $128,000 $153,000
Total stockholder's equity 8,823,000 8,874,000
 
Total liabilities and equity $8,951,000 $9,027,000