FOR IMMEDIATE RELEASE
AUTOIMMUNE INC. REPORTS 2008 THIRD QUARTER FINANCIAL RESULTS

Pasadena, California, November 7, 2008 — AutoImmune Inc. (OTC BB: AIMM.OB) today reported a net loss of $23,000, or break even per share basic and diluted, for the three months ended September 30, 2008, compared with a net loss of $8,000, or break even per share basic and diluted, for the three months ended September 30, 2007. For the nine months ended September 30, 2008, the net loss was $216,000, or $0.01 per share basic and diluted, compared with net loss of $62,000, or break even per share basic and diluted for the same period in 2007. As of September 30, 2008, the Company reported $8.6 million in cash and marketable securities as compared to $8.8 million in cash and marketable securities as of December 31, 2007.

Chairman of the Board and Chief Executive Officer Robert C. Bishop, Ph.D. stated, "Product sales at Colloral LLC during the third quarter were unchanged from the same period prior year." AutoImmune consolidates Colloral LLC for financial reporting purposes in accordance with FIN 46 "Consolidation of Variable Interest Entities."

AutoImmune has exclusively licensed certain of its intellectual property rights to BioMS Medical Corp., a Canadian company. Under the license agreement, BioMS makes monthly diligence payments to AutoImmune and will pay royalties to AutoImmune on sales of its lead drug, MBP8298, if it reaches the market. In December 2007, BioMS sublicensed its rights in this product to Eli Lilly and Company. During the third quarter just completed, BioMS announced the product was granted fast track designation by the FDA and that it had received a milestone payment from Eli Lilly for successfully passing an interim analysis for safety and futility in its pivotal phase II/III trial of MBP8208 for treatment of secondary progressive multiple sclerosis. We expect the final trial data will be available during the second half of 2009.

AutoImmune is a biopharmaceutical company involved in the development of treatments for autoimmune and cell-mediated inflammatory diseases and conditions.

Statements in this release that are not strictly historical are forward-looking statements including statements about clinical trials and studies and future sales, royalties and revenue. You can identify these forward-looking statements because they involve our expectations, beliefs, projections, anticipations or other characterizations of future events or circumstances. These forward-looking statements are not guarantees of future performance and are subject to risks and uncertainties that may cause actual results to differ materially from those in the forward-looking statements as a result of any number of factors. These factors include, but are 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, as are other factors, in the Company's most recent Annual Report on Form 10-KSB filed with the Securities and Exchange Commission in the section entitled "Risk Factors."

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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 September 30, Nine months ended September 30,

2007 2008 2007 2008
 
Revenue $59,000 $57,000 $219,000 $225,000
 
Costs and expenses:  
Cost of goods sold 9,000 1,000 20,000 29,000
    Research and development 7,000 3,000 95,000 93,000
    General and administrative 163,000 125,000 532,000 511,000
        Total costs and expenses 179,000 129,000 647,000 633,000
 
Interest income 112,000 51,000 335,000 195,000
Minority interest in joint venture - (2,000) 6,000 (3,000)
Other income - - 25,000 0

112,000 49,000 366,000 192,000
 
Net loss ($8,000) ($23,000) ($62,000) ($216,000)
 
Net loss per share - basic ($0.00) ($0.00) ($0.00) ($0.01)
 
Net loss per share - diluted ($0.00) ($0.00) ($0.00) ($0.01)
 
Weighted average common shares  
    outstanding - basic 16,979,623 16,999,623 16,967,504 16,998,820
 
Weighted average common shares  
    outstanding - diluted 16,979,623 16,999,623 16,967,504 16,998,820


CONDENSED BALANCE SHEET
(Unaudited)
  December 31, September 30,

2007 2008
Cash and marketable securities $8,804,000 $8,591,000
Other current assets 167,000 154,000
 
    Total assets $8,971,000 $8,745,000
 
Current liabilities $128,000 $129,000
Minority interest in joint venture $11,000 $24,000
Total stockholder's equity 8,832,000 8,592,000
 
Total liabilities and equity $8,971,000 $8,745,000