US NATIONAL INSTITUTES OF HEALTH ANNOUNCES PLANS TO SPONSOR A TYPE 1 DIABETES TRIAL WITH THE EXPERIMENTAL DIAMYD® DIABETES VACCINE

US NATIONAL INSTITUTES OF HEALTH ANNOUNCES PLANS TO SPONSOR A TYPE 1 DIABETES
TRIAL WITH THE EXPERIMENTAL DIAMYD® DIABETES VACCINE

Press Release, Stockholm, Sweden, September 21, 2007 - Diamyd Medical AB
(www.omxgroup.com, ticker: DIAM B; www.otcqx.com, ticker DMYDY)

Diamyd Medical announced today that the National Institute of Diabetes and
Digestive and Kidney Diseases (NIDDK) has posted a planned international
clinical study with the Diamyd® GAD-alum diabetes vaccine in 126 new onset type
1 diabetes patients on the NIH clinical trials webpage, www.clinicaltrials.gov.
The study is proposed by the NIH/NIDDK sponsored global network TrialNet, a
group of the world's foremost experts and key opinion leaders in type 1
diabetes.

While the clinical protocol is not completely finalized, and the details of the
clinical trial agreement between Diamyd Medical and NIDDK are still being
negotiated, the trial is intended to include extensive immunological studies to
clarify the mechanism of action and to evaluate the correlation between the
clinical and immunological outcomes of GAD-alum Diamyd® treatment in recent
onset type 1 diabetes patients.

Diamyd Medical has previously announced its plans to initiate a Phase III
clinical program for treatment of recent-onset type 1 diabetes patients in the
US and Europe. Those plans are continuing and the results from the proposed
TrialNet study will complement the findings of Diamyd Medical's planned Phase
III studies.

About TrialNet
TrialNet is an international consortium dedicated to advancing the science of
prevention and early treatment of type 1 diabetes. TrialNet is a network of 18
Clinical Centers worldwide with approximately 100 affiliated centers
participating as collaborating clinical sites. TrialNet is supported by the
United States National Institutes of Health and Department of Health & Human
Services, Juvenile Diabetes Research Foundation International, and the American
Diabetes Association.

About NIH/NIDDK
The National Institutes of Health (NIH), a part of the U.S. Department of Health
and Human Services, is the primary U.S. Federal agency for conducting and
supporting medical research. The National Institute of Diabetes and Digestive
and Kidney Diseases (NIDDK) is one of NIH's 27 Institutes and Centers. NIDDK
conducts and supports biomedical research on many of the most serious diseases
affecting public health, disseminating research findings and health information
to the public.

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

Pittsburgh office
Michael Christini
President
+1 412 770 1310
Michael.Christini@diamyd.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 for which Phase III studies are planned to
be initiated this year. 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 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 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.