Press Release, February 13, 2009

DIAMYD^® APPROVED FOR GROUNDBREAKING STUDY IN NORWAY

Diamyd Medical reports today that a prevention study with the Diamyd^® diabetes

vaccine has been approved by the Norwegian Medicines Agency. As previously

communicated on December 9, 2008, the objective of the study is to investigate

the disease process before type 1 diabetes onset and if treatment with the

Diamyd^® diabetes vaccine stops the process.

In type 1 diabetes, the insulin-producing capacity is gradually destroyed by the

immune system. Already before any symptoms of diabetes appear the disease can be

detected through analysis of biomarkers in the blood. If Diamyd^® treatment is

initiated at this early stage it is likely that the onset of type 1 diabetes can

be delayed or prevented.

A unique feature of the study is that tissue samples from the pancreas are

taken. Analysis of these tissue samples can provide direct insight into how

Diamyd^® reduces the destruction of beta cells, i.e. the cells that produce

insulin. This study includes 90 adults at high risk for developing type 1

diabetes and an additional 60 recent-onset type 1 diabetes patients.

"This is a major step in diabetes research. We have never previously studied

what actually happens to the beta cells during onset of type 1 diabetes," says

Professor Knut Dahl-Jørgensen who will lead the study. "In addition to studying

how the Diamyd^® vaccine affects the insulin producing cells in people at high

risk for developing type 1 diabetes, as well as how Diamyd^® preserves the

insulin producing capacity in recent-onset patients, we will specifically

investigate whether type 1 diabetes may be caused by viral infection."

"This study may be groundbreaking," says Elisabeth Lindner, President and CEO of

Diamyd Medical. "This is the first time our diabetes vaccine Diamyd^® will be

used in an attempt to prevent the disease progression in persons at risk for

type 1 diabetes."

The study will be conducted by a leading diabetes research group at Oslo

University Hospital, Oslo Diabetes Research Centre in Norway, under the

direction of Professor Knut Dahl-Jørgensen. The study is financed by

Helse-SørØst, Oslo University Hospital and University of Oslo, Norway. The

clinical study protocol is developed by the Norwegian research group in

cooperation with Diamyd Medical and Professor Johnny Ludvigsson, Linköping

University, Sweden.

The Diamyd^® vaccine is being tested in the company's own Phase III studies in

Europe and the US for children and adolescents with recent-onset type 1

diabetes.

For more information, please contact:

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

elisabeth.lindner@diamyd.com

Phone: +46-8-661 00 26

For pictures and press material, please contact:

Sonja Catani, Chief Communications Officer Diamyd Medical AB (publ.),

sonja.catani@diamyd.com

Phone: +46-8-661 00 26

This information is disclosed in accordance with the Securities Markets Act, the

Financial Instruments Trading Act or demands made in the exchange rules.

Diamyd Medical is a Swedish biopharmaceutical company focusing on development of

pharmaceuticals for treatment of autoimmune diabetes and its complications. The

company's most advanced project is the GAD-based drug Diamyd^® for type 1

diabetes for which Phase III trials are ongoing in both the US and Europe.

Furthermore, the company has started clinical studies within 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.

Diamyd Medical has offices in Sweden and in the US. The share is quoted 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 web site: www.diamyd.com.

Diamyd Medical AB (publ.)

Linnégatan 89 B, SE-115 23 Stockholm, Sweden. Phone: +46 8 661 00 26, Fax: +46 8

661 63 68

E-mail: info@diamyd.com. VATno: SE556530-142001.

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