Press Release June 22, 2009



Diamyd Medical reported today that the first children have been vaccinated in a

unique prevention study with the diabetes vaccine Diamyd^®. The purpose of the

study is to investigate whether vaccination with Diamyd^® may prevent or delay

that children, with high risk to develop type 1 diabetes, get the disease. This

is the first time ever that vaccination is tested with the purpose to prevent

this chronic disease.

The children participating in the Diamyd^®-study are at high risk of developing

type 1 diabetes. It has been concluded that they all have an ongoing autoimmune

disease process, where their insulin-producing cells are being destroyed by

their own immune system. If the destruction is not stopped, it can with time

lead to type 1 diabetes. Today there is no treatment that can prevent the

progress of the disease.

"We are hoping that treatment with Diamyd^® will alter this situation, so that we

in the future could help children already before they develop type 1 diabetes,"

says Helena Elding Larsson, pediatrician at the UMAS university hospital in

Malmö and researcher at Lund University. "So far three children have been

treated with two injections each of the Diamyd^® vaccine or placebo," states

Elding Larsson.

The objective is to evaluate whether vaccination with Diamyd^® could delay or

halt the progress of the disease, so that the children do not develop type 1

diabetes. Diamyd Medical reported on March 4 this year that the Swedish Medical

Products Agency had approved the study.

"If the Diamyd^® vaccine would be able to prevent or delay this serious disease,

which primarily affects children and adolescents, we are facing a medical

breakthrough," says Elisabeth Lindner, President and CEO of Diamyd Medical.

The study, which is the first of its kind, is double-blind and placebo

controlled and includes a total of 50 children ages four and above. Half of the

children will receive two injections of the Diamyd^® vaccine, and half will

receive placebo (a non-active medication).

In type 1 diabetes, the children's blood sugar must be checked and insulin

injections must be taken several times a day, while careful attention must be

paid to diet and exercise. Type 1 diabetes is a chronic disease for which there

is currently no cure. The disease must be strictly controlled in order to avoid

the serious complications associated with diabetes.

A few studies aiming to prevent type 1 diabetes have been conducted worldwide,

but no one has yet been able to affect the progress of the disease. Researchers

have for a long time been convinced that the active substance in Diamyd^® (GAD)

may prevent type 1 diabetes. Now the development of the drug has progressed far

enough to initiate a prevention study in children.

For additional information, please contact:

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

Tel: +46 (0)8 6610026

For pictures and press material, please contact:

Alexandra Fleetwood, Director Communications Diamyd Medical AB (publ.),

alexandra.fleetwood@diamyd.com

Tel: +46 (0)8 661 0026

About Diamyd Medical

Diamyd Medical is a Swedish diabetes 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 Europe and the

US. In addition, the company has initiated clinical studies in the US in the

area of chronic pain, using its Nerve Targeting Drug Delivery System (NTDDS).

The company has also out-licensed the use of GAD for the treatment of

Parkinson's disease. The company currently has three clinical-phase products.

Diamyd Medical has offices in Sweden and in the US. Shares are listed on Nasdaq

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

administered by the Pink OTC Markets and the Bank of New York Mellon (PAL).

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

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 AB (publ.)

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

(0)8 661 63 68



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

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