AUTOIMMUNE INC. REPORTS THIRD QUARTER 2000 FINANCIAL RESULTS

Lexington, Massachusetts, November 7, 2000‚ AutoImmune Inc. (Nasdaq: AIMM) today reported a net loss of $0.1 million, or $0.01 per share, for the three months ended September 30, 2000, compared with a net loss of $2.9 million, or $0.17 per share, for the same quarter one year earlier. Research and development expenses for the three months ended September 30, 2000 were $0.1 million, down from $2.7 million for the comparable period in 1999. This change reflects the cessation of Colloral® clinical trials and the elimination of research and development expenses except for contract research support for The Brigham and Women’s Hospital and the costs associated with maintaining the Company’s patent portfolio. General and administrative expenses for the three months ended September 30, 2000 were $0.1 million, down from $0.3 million for the comparable period in 1999, reflecting a reduction in personnel costs. As of September 30, 2000, the Company reported $10.0 million in cash and marketable securities.

Robert C. Bishop, Ph.D., Chairman of the Board and Chief Executive Officer stated: “There were two significant events for the Company during the third quarter. First, our licensee, Teva Pharmaceutical Industries, Ltd., completed enrollment in their trial for approval of Colloral® to treat multiple sclerosis. Second, we signed an agreement with Rycor Technology Investments Corporation for an exclusive license to a separate aspect of our patents for treating multiple sclerosis. It is now expected that during the first half of next year they will begin Canadian based advanced-phase clinical studies on their product.”

“Our company is carefully conserving its resources while pursuing opportunities to increase shareholder value,” Dr. Bishop continued. “We are considering additional licensing possibilities and remain optimistic about the potential for success in a growing number of externally funded clinical trials involving our technology.”

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, 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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AUTOIMMUNE INC.
STATEMENT OF OPERATIONS
(Unaudited)
Three months ended September 30,
Nine months ended September 30,
1999
2000
1999
2000
Revenue
  $  - 
$3,000
  $  - 
$4,003,000
Costs and expenses:
Research and development
2,680,000
141,000
8,517,000
645,000
General and administrative
332,000
118,000
1,267,000
550,000
  Total costs and expenses
3,012,000
259,000
9,784,000
1,195,000
Interest income
151,000
157,000
492,000
444,000
Interest expense
(1,000)
- 
(2,000)
- 
150,000
157,000
490,000
444,000
Net income (loss)
($2,862,000)
($99,000)
($9,294,000)
$3,252,000
Net income (loss) per share - basic
($0.17)
($0.01)
($0.56)
$0.19
Net income (loss) per share - diluted
($0.17)
($0.01)
($0.56)
$0.19
Weighted average common shares
  outstanding - basic
16,639,338
16,759,623
16,584,389
16,737,884
Weighted average common shares
  outstanding - diluted
16,639,338
16,759,623
16,584,389
17,303,059
CONDENSED BALANCE SHEET
(Unaudited)
December 31, September 30,
1999
2000
Cash and marketable securities $6,973,000 $10,049,000
Other current assets 109,000 35,000
Total assets $7,082,000 $10,084,000
Current liabilities $671,000 $227,000
Total stockholders' equity 6,411,000 9,857,000
Total liabilities and equity  $7,082,000 $10,084,000