AUTOIMMUNE INC. REPORTS THIRD QUARTER 1999 RESULTS

Lexington, MA, November 2, 1999 -- AutoImmune Inc. (Nasdaq: AIMM) today reported a net loss of $2.9 million, or $0.17 per share, for the quarter ended September 30, 1999, compared with a net loss of $3.6 million, or $0.22 per share, for the same period in 1998. Research and development expenses decreased to $2.7 million for the quarter ended September 30, 1999, from $3.4 million in the comparable 1998 period, reflecting cessation of clinical trial activity with Colloral®. In addition, the Company recorded restructuring charges of $643,000 in the third quarter of 1999 relating to employee severance costs and equipment dispositions. Net loss for the nine months ended September 30, 1999 was $9.3 million, or $0.56 per share, versus a net loss of $10.3 million, or $0.63 per share, for the same period in 1998. As of September 30, 1999, the Company reported $8.3 million in cash and cash equivalents.

"We have acted decisively to conserve resources while we complete an evaluation of strategic options to maximize shareholder value and await the results of several externally funded clinical trials which are ongoing or scheduled to begin early next year," said Robert C. Bishop, Ph.D., Chairman of the Board and Chief Executive Officer. The Company is working with a consulting firm to determine the viability of selling Colloral®, its product for rheumatoid arthritis, as a nutraceutical and is also pursuing new outlicensing opportunities for its technology.

AutoImmune is a biopharmaceutical company developing a new class of orally administered pharmaceutical therapies for the treatment of autoimmune and cell-mediated inflammatory diseases and conditions. With highly focused human and capital resources, the Company has advanced several product candidates, all based on the principle of oral tolerance, into human clinical testing.

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, 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.

Contacts:
Robert C. Bishop, Ph.D.
Chairman and Chief Executive Officer
AutoImmune Inc.
(781) 860-0710
website:www.autoimmune.com