21-MONTH FINDINGS FROM DIAMYD® TYPE 1 DIABETES TRIAL TO BE PRESENTED AT AN INTERNATIONAL DIABETES CONFERENCE IN BERLIN

21-MONTH FINDINGS FROM DIAMYD® TYPE 1 DIABETES TRIAL TO BE PRESENTED AT AN
INTERNATIONAL DIABETES CONFERENCE IN BERLIN

Press Release, Stockholm, Sweden, August 16, 2007 - Diamyd Medical AB
(www.omxgroup.com, ticker: DIAM B; www.otcqx.com, ticker DMYDY)

Diamyd Medical announced today that preliminary findings from a 21-month
follow-up analysis of the previously reported successful Phase II type 1
diabetes trial will be presented at the annual ISPAD (International Society for
Pediatric and Adolescent Diabetes) meeting in Berlin, Germany, the 26th of
September, 2007. 

The trial is designed to investigate the efficacy and safety of the Diamyd®
vaccine in 70 children with recent onset type 1 diabetes. The children were
treated with two injections of Diamyd® or placebo. As previously reported, 15
months after treatment, the Diamyd® group showed significantly higher meal
stimulated insulin levels than the placebo group. Diamyd®-treated patients also
showed a clear favorable immune response. 

The presentation at the ISPAD meeting in September will be made by Professor
Johnny Ludvigsson, Linkoping University Hospital, Sweden, the principal
investigator of the study. 

In a separate presentation, additional immunological data from the type 1
diabetes study, after 15 months of follow-up, will be presented by Professor
Ludvigsson´s team at the annual EASD (European Association for the Study of
Diabetes) meeting in Amsterdam, the Netherlands, the 18th of September 2007. 

As previously reported, Diamyd Medical is conducting partnership discussions
while preparing its international Phase III program for type 1 diabetes.

For further information, please contact:
Stockholm-office
Anders Essen-Möller
CEO and President 
Tel: +46 8 661 0026
E-mail: investor.relations@diamyd.com

Pittsburgh office
Michael Christini
President
Tel: +1 412 770 1310
E-mail: Michael.Christini@diamyd.com

For media contact in the US, please contact:
Gregory Tiberend, Executive Vice President 
Richard Lewis Communications, Inc. 
Tel: +1 212 827 0020 
E-mail: gtiberend@rlcinc.com

Diamyd Medical AB (publ). Linnégatan 89 B, SE-115 23 Stockholm, Sweden. Tel: +46
8 661 00 26, fax: +46 8 661 63 68 or E-mail: info@diamyd.com. VATno:
SE556530-142001.

About Diamyd Medical: 
Diamyd Medical is a life science company developing treatments for diabetes and
its complications. The company's furthest developed project is the GAD-based
drug Diamyd® for autoimmune diabetes. Diamyd® has demonstrated significant and
positive results in phase II clinical trials in Sweden. 

GAD65, a major autoantigen 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 GAD65 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 gene therapy using the
exclusively licensed and patent protected Nerve Targeted Drug Delivery System
(NTDDS). The company's lead gene therapy 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 in Pittsburgh (USA). The
Diamyd Medical share is quoted on the Stockholm Nordic Exchange in Sweden
(ticker symbol: DIAM B) and on the OTCQX-list in the US (ticker symbol: DMYDY)
administered by the Pink Sheets and the Bank of New York (PAL). Further
information is available at www.diamyd.com. 

Disclaimer: This document contains certain "statements" relating to present
understandings, future events and future performance, including statements
relating to the progress, timing and completion of our research, development and
clinical trials; our ability to market, commercialize and achieve market
acceptance for product candidates; and our current and future strategic partner
relationships. These statements can be affected by inaccurate assumptions or by
known or unknown risks and uncertainties. Diamyd Medical undertakes no
obligation to publicly update such statements, whether because of new
information, future events or otherwise, nor does Diamyd Medical give any
guarantees that the statements, given or implied, are correct. This document is
a translation from the Swedish original. No guarantees are made that the
translation is free from errors.