AUTOIMMUNE INC. REPORTS THIRD QUARTER 1995
FINANCIAL RESULTS

Lexington, Massachusetts, November 1, 1995 -- AutoImmune Inc. (Nasdaq: AIMM) today reported a net loss of $2.0 million, or $.15 per share, for the quarter ended September 30, 1995, compared with a net loss of $4.0 million, or $.39 per share, for the same quarter a year earlier. Net loss for the nine months ended September 30, 1995 was $10.5 million, or $.84 per share, versus a net loss of $10.3 million, or $1.01 per share, for the same period in 1994.

The decrease in net loss in the third quarter of 1995 versus the same period in 1994 was primarily the result of three factors. First, the Company recorded revenue of $1.5 million in 1995 which reflects a payment in July from a Japanese pharmaceutical company for a short-term exclusive right among Japanese companies to review the results of the Phase II dosing study of Colloral®. No business arrangements resulted from this option, and AutoImmune has no further obligations under its agreement. Second, research and development expenses were $0.4 million lower in the third quarter of 1995 due to the timing of clinical trial activity. Finally, interest income was $0.4 million higher in the third quarter of 1995 relative to the same period in 1994 due to higher cash balances resulting from the Company's recent public offering.

In the third quarter, AutoImmune completed a public offering of 3.9 million shares of common stock, which raised $58.9 million in net proceeds for the Company. The offering was underwritten by Hambrecht & Quist, Lehman Brothers, Montgomery Securities and UBS Securities.

"The Company continues to make significant and steady progress in the clinical development programs for our two lead products, Myloral for multiple sclerosis and Colloral® for rheumatoid arthritis," said Robert C. Bishop, Ph.D., President and Chief Executive Officer. "The positive results from our Phase II dosing study for Colloral® provide further validation that oral tolerance technology has clinical benefit in this large unsatisfied market. In addition, as of September 30,1995, we have more than $73 million in cash and short term investments. We look forward to several significant events for the Company in the coming months, including the start of our final Phase II trial for Colloral®; the initiation of a Phase II clinical trial in new onset diabetes patients with our partner, Eli Lilly; and the completion of the Phase II trial for our product to treat uveitis."

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.