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Diamyd(R) Study Published in Prestigious New England Journal of Medicine
Date:10/9/2008

duce insulin significantly better than the patients, who received placebo. The best effect was seen in patients, for whom treatment was begun shortly after diagnosis, since those patients still retained a significant amount of the cells that produce insulin. The results indicate that the Diamyd(R) vaccine may also be effective in preventing type 1 diabetes.

About ongoing Phase III studies with Diamyd(R) Type 1:

There are currently two Phase III studies in progress: one in Europe and one in the US. The studies apply to children and adolescents diagnosed with type 1 diabetes within the last three months.

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(R) for type 1 diabetes and for which Phase III trials are ongoing in both the US and Europe. Furthermore, the company has initiated 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: http://www.diamyd.com

For more information, please contact:

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

elisabeth.lindner@diamyd.com ,

Phone: +46-8-661-0026.

For pictures and press material, please contact:

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SOURCE Diamyd Medical AB (publ)
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