FOR IMMEDIATE RELEASE

AUTOIMMUNE INC. REPORTS 2002 FIRST QUARTER AND YEAR END FINANCIAL RESULTS

Pasadena, California, May 9, 2002 – AutoImmune Inc. (Nasdaq: AIMM) today reported a net loss of $0.22 million, or $0.01 per share basic and diluted, for the three months ended March 31, 2002, compared with a net loss of $0.12 million, or $0.01 per share basic and diluted, for the three months ended March 31, 2001. These results reflect the continued receipt of monthly payments from BioMS Medical Corporation (“BioMS”), the reduction in patent expenses and a reduction in interest income due to a lower average return on investment. As of March 31, 2002, the Company reported $10.6 million in cash and marketable securities.

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

BioMS Medical Corporation has said it anticipates starting an advanced phase clinical trial during the latter part of 2002 on its MBP8298 treatment for chronic progressive multiple sclerosis which utilizes intellectual property rights exclusively licensed from AutoImmune. Teva Pharmaceutical Industries, Ltd., has announced it will conduct additional pre-clinical and clinical pharmacology studies on an oral formulation of COPAXONE® (glatiramer acetate), a product for the treatment of multiple sclerosis, which utilizes intellectual property rights exclusively licensed from AutoImmune. Recruitment for the NIH sponsored diabetes prevention trial (DPT-1) remains ongoing.

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 uncertainties of clinical trial results, the Company’s dependence on third parties for licensing revenue, 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
March 31,
 
2001
2002
Revenue
  $7,000
$15,000
 
Costs and expenses:
Research and development
114,000
63,000
General and administrative
180,000
219,000
  Total costs and expenses
294,000
282,000
Interest income
165,000
51,000
Interest expense
- 
- 
165,000
51,000
Net income (loss)
($122,000)
($216,000)
Net income (loss) per share - basic
($0.01)
($0.01)
Net income (loss) per share - diluted
($0.01)
($0.01)
Weighted average common shares
  outstanding - basic
16,878,734
16,919,623
Weighted average common shares
  outstanding - diluted
16,878,734
16,919,623
CONDENSED BALANCE SHEET
(Unaudited)
December 31,
March 31,
2001
2001
Cash and marketable securities$10,792,000 $10,533,000
Other current assets42,000 42,000
Other assets
100,000
100,000
Total assets$10,934,000 $10,695,000
Current liabilities$137,000 $114,000
Total stockholders' equity10,797,000 10,581,000
Total liabilities and equity  $10,934,000$10,695,000