Press Release, March 24, 2009

Insiders subscribe for Diamyd shares

Diamyd Medical's CEO Elisabeth Lindner is exercising 5,000 subscription

warrants, increasing her holdings in Diamyd Medical to 9,100 Class B shares.

"Diamyd is in a tremendously positive and exciting stage in its development.

Converting the options is a unique opportunity for me as an insider to increase

my long-term ownership in the company," said Diamyd Medical's President and CEO

Elisabeth Lindner.

Out of the 50,000 stock options that Diamyd Medical's CEO acquired in 2008, she

is subscribing for 5,000 new shares on her own behalf for a value of SEK

500,000. Lindner is keeping 25,000 of the remaining options, and is selling

10,000 options each to Chairman of the Board Anders Essen-Möller and principal

shareholder Bertil Lindqvist.

During the previous week Bertil Lindqvist bought 3,000 shares, thereby

increasing his holdings to 3,893,303 Class B shares. Board Member Lars Jonsson

also bought 550 shares of Diamyd Medical, and now owns 1,150 Class B shares.

The stock option is being traded up till and including April 8 on the First

North Exchange, and can be converted into a Class B share in Diamyd Medical AB

from March 16 through April 17, 2009. The redemption price is SEK 100.

About Diamyd Medical:

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

using enkephalin to treat 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.

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

For more information, please contact:

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

Fleetwood, Head of Communications, e-mail: alexandra.fleetwood@diamyd.com.

Diamyd Medical AB (publ.)Linnégatan 89 B, SE-115 23 Stockholm, Sweden. Tel: +

46 661 00 26, Fax + 46 8 661 63 68. E-mail: info@diamyd.com. VATno

SE556530-142001.

This information is being published in accordance with the Securities Act, the

Financial Instruments Trading Act, or requirements stated in the listing

agreement.