AUTOIMMUNE INC. REPORTS YEAR END 1994
FINANCIAL RESULTS

-- Myloral^TM Phase III Trial Recruitment Completed --
-- Colloral^TM Granted Orphan Drug Status --

Lexington, Massachusetts, March 6, 1995 -- AutoImmune Inc. (Nasdaq: AIMM) today reported a net loss of $14.7 million, or $1.44 per share, for the year ended December 31, 1994, compared with a net loss of $8.1 million, or $.85 per share, for the year ended December 31, 1993. Research and development expenses increased approximately 60% to $13.6 million, from $8.3 million in 1993, reflecting advancement of human clinical trials of the Company's oral tolerance pharmaceuticals, as well as expansion of in-house drug development capabilities.

The highlights of the Company's performance in 1994 included the initiation of Phase III trials of Myloral^TM for multiple sclerosis and the start of a Phase II trial of Colloral^TM for rheumatoid arthritis; the establishment of a collaboration with Eli Lilly to develop oral tolerance pharmaceuticals for the treatment of autoimmune-mediated diabetes; further substantiation of the mechanism of oral tolerance at the cellular level; and enhancement of the Company's Board of Directors and Scientific Advisory Board.

"In 1995, we will continue to focus on the clinical development of our product pipeline," said Robert C. Bishop, Ph.D., President and Chief Executive Officer of AutoImmune. "So far this year, we have completed recruitment for our 500 patient Phase III clinical trial of Myloral^TM; received from the FDA orphan drug designation for Colloral^TM (purified Type II collagen) for the treatment of juvenile rheumatoid arthritis; and successfully raised $9.2 million in a private equity financing."

The net loss for the fourth quarter of 1994 was $4.4 million or $.43 per share, compared with a net loss of $3.3 million, or $.32 per share for the fourth quarter of 1993. There were no revenues in the fourth quarter of 1994 or 1993.

AutoImmune, Inc. is a biopharmaceutical company developing a new class of drug therapies for the treatment of autoimmune diseases. With highly focused use of its human and capital resources, the Company has successfully brought four product candidates based on the principle of oral tolerance into human clinical testing. These orally administered products are targeted for the treatment of multiple sclerosis, rheumatoid arthritis, autoimmune-mediated diabetes and uveitis.