AUTOIMMUNE INC. REPORTS SECOND QUARTER 1996 FINANCIAL RESULTS

-- Phase III Trial for Myloral® on Target for Completion in the First Quarter 1997 --

Lexington, Massachusetts, August 1, 1996 -- AutoImmune Inc. (Nasdaq: AIMM) today reported a net loss of $5,413,000, or $0.33 per share, for the quarter ended June 30, 1996, compared with a net loss of $4,715,000, or $0.38 per share, for the same quarter a year earlier. Research and development expenses increased to $5,678,000 for the second quarter of 1996 from $4,412,000 in the comparable 1995 period, reflecting the Company's expanded clinical development program. Net loss for the six months ended June 30, 1996 was $9,527,000, or $0.59 per share, versus a net loss of $8,500,000, or $0.71 per share, for the same period in 1995. As of June 30, 1996, the Company reported $61,629,000 in cash and marketable securities, which should be sufficient for the Company to complete development and file product license applications for its two lead products.

AutoImmune management noted that Myloral® and Colloral® are approaching major clinical milestones in coming months. Robert C. Bishop, Ph.D., President and Chief Executive Officer of AutoImmune, commented: "To date, more than 200 of the 515 patients enrolled in our pivotal Phase III trial of Myloral® for multiple sclerosis have completed the two year study. We expect the remaining patients to complete therapy by the end of March 1997. We have also completed patient enrollment for two of the three final Colloral® Phase II trials, with patient enrollment for the third trial to be completed shortly. The results of these trials, involving more than 800 patients, will be known early next year and will allow us to finalize the design of our Phase III pivotal studies for rheumatoid arthritis," Dr. Bishop added.

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.

This release contains forward-looking statements which involve risks and uncertainties. The Company's actual results may differ significantly from results discussed in the forward-looking statements due to a number of important factors, including, but not limited to, the developmental stage of the Company's products and uncertainties of clinical trial results; the Company's capital requirements, history of operating losses and lack of product revenue and its limited manufacturing and marketing experience, and the risks of technological change and competition. These factors are more fully discussed in the Company's most recent Annual Report on Form 10-K filed with the Securities and Exchange Commission.