Diamyd Medical reports today that the United States Food and Drug Administration

(FDA) has approved the experimental use of Diamyd^® vaccine in children as young

as 3 years of age in the TrialNet GAD study, enrolling 126 new onset type 1

diabetes patients in North America.

The TrialNet GAD study, conducted by an international network of leading

pediatric and adult endocrinologists and immunologists, has previously enrolled

new onset type 1 diabetes patients from 16 to 45 years of age but is now allowed

by the FDA to enroll and administer the Diamyd^® vaccine to children as young as

3 years of age.

"This is very encouraging news," says Elisabeth Lindner, CEO and President at

Diamyd Medical. "The approval to enroll small children in the TrialNet study is

based on an FDA review of safety data from our ongoing Phase III trials and

further supports that the Diamyd^® vaccine's safety profile is strong."

The TrialNet study is a double-blind, randomized, placebo-controlled trial,

which aims to enroll a total of 126 new onset type 1 diabetes patients at 16

TrialNet sites in the US and Canada. One third of the participants will receive

3 injections with the Diamyd^® vaccine, one third will receive 2 injections with

the Diamyd^® vaccine and one third will receive placebo (inactive drug). The

purpose of the study is to determine whether the Diamyd^® vaccine will preserve

the body's ability to make its own insulin to help control blood sugar.

The trial also includes extensive immunological studies to clarify the mechanism

of action of Diamyd^® and to evaluate the correlation between the clinical and

immunological outcomes of Diamyd^® treatment in new onset type 1 diabetes

patients.

Diamyd Medical has approved the protocol and has executed a Clinical Trial

Agreement with the National Institute of Diabetes and Digestive and Kidney

Diseases, part of the US National Institutes of Health, to supply clinical-grade

material (i.e. Diamyd^® and placebo) for this trial. TrialNet is sponsored by the

National Institutes of Health and supported by Juvenile Diabetes Research

Foundation International and the American Diabetes Association.

For more information, please contact:

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

Phone: +46 8 661 0026

For pictures and press material, please contact:

Andreas Ericsson, Diamyd Medical AB (publ.)

andreas.ericsson@diamyd.com

Phone: +46 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.