Press Release

Stockholm, June 3, 2005
DIAMYD´S GAD GENE IS A POTENTIAL THERAPEUTIC FOR REDUCING PAIN ASSOCIATED WITH DIABETES NEUROPATHY AND CANCER
Diamyd Medical AB (OMX: DIAM B) reports that the GAD gene can potentially be used for treatment of pain and neuropathy - common complications of diabetes and cancer. Diamyd Medical has an exclusive license for the GAD65 gene from the University of California in Los Angeles.

The University of Michigan Health System writes in a press release that researchers at Ann Arbor Healthcare System and the University of Michigan have developed a GAD-based system for blockade of nerve signals which cause pain associated with neuropathy. The results, published in the June edition of Annals of Neurology, demonstrate that gene therapy with GAD (glutamic acid decarboxylase) has been successfully employed to inhibit pain in an animal model. The researchers are apparently now planning to test this application in a Phase I clinical trial with cancer patients.

Neuropathy is a common complication associated with many diseases. Neuropathy is damage to elements of the nerve system which is often associated with severe pain. 

Using a common but harmless Herpes virus as vector, the GAD gene is delivered to nerve ganglia near the spinal cord. While the vector remains in the ganglia, the product of the expressed GAD gene, the GAD enzyme, is transported to the nerve terminals where it triggers production of the potent inhibitory neurotransmitter GABA.

"We will now contact the researchers in the USA to learn in more detail precisely what has been done and to discuss potential future development. If it is the case that our GAD can be used to develop a therapeutic agent against pain, this can be very significant for the company, as our licensed patent rights give us protection for use of the GAD65 gene until 2021 in the USA", says Anders Essen-Moller, CEO in Diamyd Medical.


About Diamyd Medical:
Diamyd Medical is listed on the O-List of the Stockholm Stock Exchange (omx: DIAM B) and conducts selected pharmaceutical development based on the GAD (glutamine acid decarboxylase) technology platform. GAD is an important enzyme regulating the balance between excitatory and inhibitory neurotransmittors and is also one a target antigen in autoimmune diabetes. Diamyd Medical´s most advanced project is the diabetes vaccine Diamyd™, for which three clinical trials are currently in progress. Further information is available at www.diamyd.com.

For further information, please contact:
Johannes Falk, Chief Information Officer
Phn. 08-661 00 26
Direct Phn. 08-545 654 25
Cell Phn: 0708 53 46 00
E-mail: johannes.falk@diamyd.com

Diamyd Medical AB, Linnégatan 89 B, SE-115 23 Stockholm, Sweden. Phn: +46-8-661 00 26, fax: +46-8-661 63 68 or e-mail: info@diamyd.com. Corp. Id: 556530-1420.


This document contains certain information about the general situation, the past, present and the future. This information should be considered as reflecting current understandings, opinions and plans. No guarantees are given or implied that these are correct. Please note that this press release was released in Swedish language. No guarantee can be given that translational errors are not included.

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