Exhibit 99.1

AutoImmune Inc. 1199 Madia Street Pasadena, CA 91103 Phone: 626-792-1235 Fax: 626-792-1236

Contact:

Robert C. Bishop, Ph.D.

Chairman and Chief Executive Officer

AutoImmune Inc.

626-792-1235

website: http://www.autoimmuneinc.com

FOR IMMEDIATE RELEASE

AUTOIMMUNE INC. REPORTS 2005 SECOND QUARTER FINANCIAL RESULTS

Pasadena, California, August 11, 2005 - AutoImmune Inc. (OTCBB: AIMM) today reported a net loss of $0.19 million, or $0.01 per share basic and diluted, for the three months ended June 30, 2005 compared with a net loss of $0.30 million, or $0.02 per share basic and diluted, for the three months ended June 30, 2004. For the six months ended June 30, 2005, the net loss was $0.37 million, or $0.02 per share basic and diluted, compared with net loss of $0.47 million, or $0.03 per share basic and diluted for the same period in 2004. As of June 30, 2005, the Company reported $9.6 million in cash and marketable securities as compared to $10.0 million in cash and marketable securities as of December 31, 2004.

Robert C. Bishop, Ph.D., Chairman of the Board and Chief Executive Officer stated, “The Company’s licensees made progress during the second quarter with their ongoing clinical trials of products using AutoImmune technology and Colloral LLC, our joint venture with Deseret Laboratories Inc. for dietary supplements, is preparing to embark on a new consumer oriented marketing plan created with the assistance of Business Development Resources, Inc.” Under the currently applicable accounting model, AutoImmune will begin to recognize income from the joint venture when profits exceed cumulative start-up costs.

AutoImmune has exclusively licensed certain of its intellectual property rights to BioMS Medical Corp., a Canadian company. Under the license agreement, BioMS makes monthly diligence payments to AutoImmune and has a royalty obligation on sales of its lead drug MBP8298, a treatment for secondary progressive multiple sclerosis, should it reach the market. BioMS is currently enrolling patients at multiple sites in a Phase II/III study of MBP8298.

AutoImmune has also exclusively licensed certain of its intellectual property rights to Teva Pharmaceutical Industries, Ltd. Teva has an ongoing Phase II study looking at two different doses of on an oral formulation of COPAXONE® (glatiramer acetate), a product for the treatment of multiple sclerosis. The oral formulation utilizes the intellectual property rights

licensed from AutoImmune. If Teva is successful in bringing this product to market, AutoImmune will receive both a milestone payment and a royalty on sales under its license agreement.

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 development stage of the Company’s and its licensees’ products, uncertainties of clinical trial results, the Company’s dependence on third parties for licensing revenue, the risk that Colloral^® may be classified as a drug rather than a dietary supplement, 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 June 30,						Six months ended June 30,
	2004			2005			2004			2005
Revenue	$	30,000		$	37,000		$	60,000		$	75,000
Costs and expenses:
Research and development		146,000			21,000			204,000			148,000
General and administrative		214,000			182,000			385,000			297,000
Total costs and expenses		360,000			203,000			589,000			445,000
Interest income		30,000			72,000			61,000			133,000
Equity in net loss of unconsolidated affiliate		—			(100,000	)		—			(130,000	)
		30,000			(28,000	)		61,000			3,000
Net income (loss)	$	(300,000	)	$	(194,000	)	$	(468,000	)	$	(367,000	)
Net income (loss) per share - basic	$	(0.02	)	$	(0.01	)	$	(0.03	)	$	(0.02	)
Net income (loss) per share - diluted	$	(0.02	)	$	(0.01	)	$	(0.03	)	$	(0.02	)
Weighted average common shares outstanding - basic		16,919,623			16,919,623			16,919,623			16,919,623
Weighted average common shares outstanding - diluted		16,919,623			16,919,623			16,919,623			16,919,623

CONDENSED BALANCE SHEET (Unaudited)
	December 31, 2004		June 30, 2005
Cash and marketable securities	$	9,996,000	$	9,606,000
Other current assets		37,000		76,000
Other assets		5,000		—
Total assets	$	10,038,000	$	9,682,000
Current liabilities	$	108,000	$	121,000
Total stockholders’ equity		9,930,000		9,561,000
Total liabilities and equity	$	10,038,000	$	9,682,000