AUTOIMMUNE INC. REPORTS 2000 FOURTH QUARTER AND YEAR END FINANCIAL RESULTS

Pasadena, California, January 30, 2001 ‚ AutoImmune Inc. (Nasdaq: AIMM) today reported net income of $3.1 million, or $0.19 per share basic and $0.18 per share diluted, for the year ended December 31, 2000, compared with a net loss of $10.7 million, or $0.64 per share basic and diluted, for the year ended December 31, 1999. Licensing income was up $ 4.0 million over the prior year. Research and development expenses for 2000 were $0.8 million, down from $8.8 million for 1999. This change reflects the cessation of Colloral® clinical trials and the elimination of research and development expenses except for contract research support at The Brigham and Women’s Hospital and costs associated with maintaining the Company’s patent portfolio. General and administrative expenses for 2000 were $0.7 million, down from $2.4 million for 1999, reflecting a reduction in personnel costs. Net loss for the three months ended December 31, 2000 was $0.1 million, or $0.01 per share basic and diluted, versus a net loss of $1.4 million, or $0.08 per share basic and diluted, for the comparable 1999 period, reflecting lower research and administrative costs. As of December 31, 2000, the Company reported $9.9 million in cash and marketable securities.

Robert C. Bishop, Ph.D., Chairman of the Board and Chief Executive Officer stated: “This past year AutoImmune made considerable progress. We signed two licenses that provided immediate revenue and which should produce positive cash flow for the company in 2001. Our partner Teva Pharmaceutical Industries, Ltd., completed enrollment in a Phase III study of an oral formulation of Copaxone®, the results of which should be known early next year. The last of the “new-onset” diabetes trials funded by Eli Lilly was finished and the data is being readied for publication.We filed a “Notice of New Dietary Ingredient” with the FDA to allow marketing of Colloral as a nutraceutical, and we successfully defended a broad patent on our basic technology in an opposition proceeding in Europe.”

AutoImmune is a biopharmaceutical company involved in the development of a new class of mucosally administered therapies for the treatment of autoimmune and cell-mediated inflammatory diseases and conditions.

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, the Company’s dependence on third parties for licensing 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 in the section “Business-Factors to be Considered.” The discussion in the Annual Report on Form 10-K is hereby referenced into this release.

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