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Diamyd Updates Gene Therapy Program and Outlines Plans for Phase I Clinical Trial for Treatment of Cancer Pain
Date:8/27/2007

antigen in autoimmune diabetes, is the active substance in Diamyd. GAD65 is also an enzyme that converts the excitatory neurotransmitter glutamate to the inhibitory transmitter GABA. In this context, GAD may have an important role not only in diabetes but also in several central nervous system-related diseases. Diamyd Medical has an exclusive worldwide license from the University of California at Los Angeles regarding the therapeutic use of the GAD65 gene.

Diamyd Medical has sublicensed its UCLA GAD Composition of Matter license to Neurologix, Inc. in Fort Lee, New Jersey for treatment of Parkinson's disease with an AAV-vector.

Other projects comprise drug development within therapeutic gene transfer using the exclusively licensed and patent protected Nerve Targeted Drug Delivery System (NTDDS). The company's lead NTDDS projects include using enkephalin and GAD for chronic pain, e.g., diabetes pain or cancer pain. All projects in this field are currently in preclinical phases.

Diamyd Medical has offices in Stockholm, Sweden and Pittsburgh, PA. The Diamyd Medical share is quoted on the Stockholm Nordic Exchange in Sweden (NOMX ticker: DIAM B) and on the OTCQX-list in the United States (ticker: DMYDY) administered by the Pink Sheets and the Bank of New York (PAL). Further information is available at http://www.diamyd.com.

For further information, please contact:

Stockholm office

Anders Essen-Moller

CEO and President +46 8 661 0026

investor.relations@diamyd.com

Pittsburgh office

Michael Christini

President

+1 412 770 1310

Michael.Christini@diamyd.com

For media contact in the US, please contact:

Gregory Tiberend, Executive Vice President

Richard Lewis Communications, Inc.

+1 212 827 0020

E-mail:

SOURCE Diamyd Medical AB
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