AUTOIMMUNE INC. REPORTS SECOND QUARTER 1994
FINANCIAL RESULTS

-- Phase II Trial of Second Oral Tolerance Pharmaceutical Underway--

Lexington, Massachusetts, August 3, 1994 -- AutoImmune Inc. (Nasdaq: AIMM) today reported a net loss of $3.5 million, or $.34 per share, for the quarter ended June 30, 1994, compared with a net loss of $1.6 million or $.15 per share, for the same quarter a year earlier. This brings the net loss for the first six months of 1994 to $6.3 million, or $.61 per share, compared to a net loss of $3.0 million, or $.34 per share, for the same period in 1993. Research and development expenses increased to $5.8 million for first half 1994, from $3.2 million in the comparable 1993 period, due to the initiation of additional human clinical trials of the Company's oral tolerance pharmaceuticals, as well as expanded in-house drug development capabilities.

"The Company has continued to make good progress with its portfolio of oral tolerance pharmaceuticals, while keeping cash expenditures under careful control," said Robert C. Bishop, Ph.D., President and Chief Executive Officer of AutoImmune. "Each of our four products currently in human testing is following a carefully planned clinical development strategy."

Dr. Bishop noted that the Phase II human dosing trial of Colloral^TM in active rheumatoid arthritis patients began in June, as planned, and that patient accrual is on schedule. Colloral^TM is AutoImmune's proprietary oral formulation of Type II collagen; earlier this month, the Company received a U.S. patent allowance covering the use of Type II collagen to treat rheumatoid arthritis.

AutoImmune management added that the Phase III clinical trial of Myloral^TM that began in March is proceeding well, with more than half the multiple sclerosis patients already enrolled at the 13 medical centers in the United States and Canada where the trial is being conducted.

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, diabetes and uveitis.