AUTOIMMUNE INC. REPORTS FOURTH QUARTER AND
YEAR END 1993 RESULTS

Lexington, Massachusetts, March 17, 1994 -- AutoImmune Inc. (Nasdaq: AIMM) today reported a net loss of $8.1 million or $.85 per share, for the year ended December 31, 1993, compared with a net loss of $3.9 million, or $2.89 per share, for 1992. These results reflect almost a 100% increase in R&D expenditures as the Company advanced the clinical development of its products. Revenues for 1993 were $537,000, compared to approximately $1.1 million in 1992.

"We achieved significant milestones in 1993, our first year as a publicly traded company, and are looking forward to continued achievements in 1994, beginning with the Phase III pivotal trial for Myloral^TM in multiple sclerosis scheduled to start in upcoming weeks," said Robert C. Bishop, Ph.D., President and Chief Executive Officer of AutoImmune. "Among the accomplishments were important new findings about the basic mechanism of oral tolerance therapy; advancement of our lead products through key stages of clinical development; and, completion of our new laboratories where our staff scientists are developing future products based on our unique and proprietary technology."

Management noted that at year's end, the Company's portfolio contained a full roster of products, four of which are in human clinical testing. Other 1993 highlights included publication in the journal Science of the results of a Phase I/II study of Myloral^TM, demonstrating the drug's potential as a safe treatment for multiple sclerosis; the start of pre-clinical studies of AI-401, recombinant human insulin, for use in Type I diabetes; and publication in Science of encouraging results from a Phase II study of Colloral^TM, indicating clinical efficacy of this drug as a treatment for rheumatoid arthritis.

The net loss for the fourth quarter 1993 was $3.3 million or $.32 per share, compared with a net loss of $1.6 million, or $2.19 per share, for the fourth quarter in 1992. There were no revenues in the fourth quarter 1993. Contract R&D revenues of $209,000 were reported in the fourth quarter 1992.

AutoImmune Inc. is developing pharmaceutical products based on the principle of oral tolerance for the treatment of immune system disorders, including multiple sclerosis, rheumatoid arthritis and uveitis.