FOR IMMEDIATE RELEASE

AUTOIMMUNE INC. REPORTS 2001 FIRST QUARTER FINANCIAL RESULTS

Pasadena, California, May 3, 2001‚ AutoImmune Inc. (Nasdaq: AIMM) today reported a net loss of $0.1 million, or $0.01 per share basic and diluted, for the three months ended March 31, 2001, compared with net income of $3.5 million, or $0.21 per share basic and $0.20 per share diluted, for the three months ended March 31, 2000. The primary difference between the first quarter of 2001 and the comparable period prior year is a decrease of $4.0 million in licensing income. Last year AutoImmune received the initial payment from a subsidiary of Elan Corporation plc on its purchase of AutoImmuneís rights to certain patent applications; the second of three payments on that purchase is not due until later this year. Research and development expenses for the three months ended March 31, 2001 were $0.1 million, down from $0.3 million for the three months ended March 31, 2000. General and administrative expenses for the three months ended March 31, 2001 were $0.2 million, down from $0.3 million for 2000. As of March 31, 2001, the Company reported $9.8 million in cash and marketable securities.

Robert C. Bishop, Ph.D., Chairman of the Board and Chief Executive Officer stated: “AutoImmune continues to conserve its financial resources while waiting for results from externally funded clinical trials and actively pursuing additional outlicensing opportunities.”

Teva Pharmaceutical Industries, Ltd., with whom the Company has an exclusive agreement, has said it expects to report data from the Patient recruitment for the NIH sponsored diabetes prevention trial (DPT-1) remains ongoing. The FDA has cleared AutoImmune to sell ColloralÆ as a dietary supplement and the search for a marketing/distribution partner is underway.

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 Companyís 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 Companyís products and uncertainties of clinical trial results, the Companyís capital requirements, history of operating losses and lack of product revenue, the Companyís 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 Companyís most recent Annual Report on Form 10-K filed with the Securities and Exchange Commission in the section “Business-Factors to be Considered.î 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
March 31,
  
2000
2001
Revenue
  $4,000,000
$7,000
 
Costs and expenses:
Research and development
345,000
114,000
General and administrative
256,000
180,000
  Total costs and expenses
601,000
294,000
Interest income
133,000
165,000
Interest expense
- 
- 
133,000
165,000
Net income (loss)
$3,532,000
($122,000)
Net income (loss) per share - basic
$0.21
($0.01)
Net income (loss) per share - diluted
$0.20
($0.01)
Weighted average common shares
  outstanding - basic
16,694,166
16,878,734
Weighted average common shares
  outstanding - diluted
17,454,315
16,878,734
CONDENSED BALANCE SHEET
(Unaudited)
December 31, March 31,
2000
2001
Cash and marketable securities $9,883,000 $9,757,000
Other current assets 72,000 75,000
Total assets $9,955,000 $9,832,000
Current liabilities $202,000 $197,000
Total stockholders' equity 9,753,000 9,635,000
Total liabilities and equity  $9,955,000 $9,832,000