Press Release, 12 March 2009

Information about Notification for Subscription of Diamyd shares upon exercise

of warrant DIAM TO 2B

Notification for subscription of shares supported by the warrant Diamyd Medical

TO 2B shall take place between March 16 and April 17, 2009. If the warrant is

not exercised within the period stated above, it will expire without value.

In April 2008 Diamyd Medical issued 991,000 subscription warrants in connection

with a directed placement. The warrants are traded on the market place First

North under the name DIAM TO 2B. The last day to trade the options on First

North is April 8, 2009. Holding of one (1) warrant entitles the owner to

subscribe to one (1) new series B share in Diamyd Medical AB at a price of SEK

100 per share during the period March 16 to April 17, 2009.

The Notification form for subscription of shares supported by the warrant DIAM

TO 2B can be downloaded from the Company's website at www.diamyd.com, or be

ordered by phone from NASDAQ OMX at +46 (0)8-405 7678. Funds are due upon

submission of the Notification form. All instructions can be found on the

Notification form.

Please note that only holders of warrants registered in securities accounts (VP

accounts) can subscribe for shares using this notification form. If your options

are registered in the name of a trustee, please contact your trustee.

Interim shares will be provided once NASDAQ OMX has received both the

notification and the subscription funds. The interim shares will not be listed

for trading. The new shares are expected to be available for trading one to two

weeks after the final subscription date of April 17.

For administrative questions about the subscription procedure, please contact:

Elinor Rudheim

NASDAQ OMX, Corporate Finance Administration, Transactions Services Nordics

Direct: +46 8 405 7678

elinor.rudheim@nasdaqomx.com

For additional information, please contact:

Elisabeth Lindner, President and CEO Diamyd Medical AB (publ.),

elisabeth.lindner@diamyd.com

Tel: +46 (0)8 6610026

This information is disclosed in accordance with the Swedish Securities Markets

Act, the Swedish Financial Instruments Trading Act, or the requirements stated

in the listing agreements.

Diamyd Medical is a Swedish biopharmaceutical company focusing on the

development of pharmaceuticals for the treatment of autoimmune diabetes and its

complications. The company's most advanced project is the GAD-based drug Diamyd^®

for type 1 diabetes. Phase III trials for this drug are in progress in both the

US and Europe. In addition, the Company has initiated clinical studies in the US

in the area of chronic pain, using its Nerve Targeting Drug Delivery System. The

Company has also out-licensed the use of GAD for the treatment of Parkinson's

disease.

Diamyd Medical has offices in Sweden and the US. Its shares are listed on the

OMX Stockholm Nordic Exchange (ticker: DIAM B) and on OTCQX in the US (ticker:

DMYDY) administered by the Pink Sheets and the Bank of New York (PAL). Further

information is available on the company's website; www.diamyd.com.

Diamyd Medical AB (publ.)

Linnégatan 89 B, SE-115 23 Stockholm, Sweden. Tel: +46 (0)8 6610026, Fax: +46 8

661 63 68

E-mail: info@diamyd.com. VAT no: SE556530-142001.

(www.omxnordicexchange.com ticker: DIAM B; www.otcqx.com ticker: DMYDY)