DIAMYD EXECUTES AGREEMENT WITH US NATIONAL INSTITUTES OF HEALTH FOR A TYPE 1 DIABETES TRIAL WITH THE EXPERIMENTAL DIAMYD® DIABETES VACCINE

DIAMYD EXECUTES AGREEMENT WITH US NATIONAL INSTITUTES OF HEALTH FOR A TYPE 1
DIABETES TRIAL WITH THE EXPERIMENTAL DIAMYD® DIABETES VACCINE

Press Release, Stockholm, Sweden, November 22, 2007 - Diamyd Medical AB
(www.omxgroup.com, ticker: DIAM B; www.otcqx.com, ticker DMYDY)

Diamyd Medical announced today that it has executed a Clinical Trial Agreement
with the National Institute of Diabetes and Digestive and Kidney Diseases
(NIDDK) for a planned clinical study with the Diamyd® GAD-alum diabetes vaccine
in 126 new onset type 1 diabetes patients. The clinical study will be conducted
by the NIDDK-sponsored consortium Type 1 Diabetes TrialNet. Under the terms of
the agreement, Diamyd Medical will supply clinical-grade material (i.e. Diamyd®
and placebo) for the trial.

As previously announced, the trial will 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. Such a detailed analysis may provide important
information into the ability of Diamyd® to protect islet cells from autoimmune
attack as a mechanism for maintaining insulin production. Additionally, the
immunological data may prove beneficial for designing future diabetes prevention
studies.

“We are extremely excited to be working with NIDDK and TrialNet on this new
Diamyd® clinical study,” stated Anders Essen-Möller, CEO of Diamyd Medical.
“TrialNet is uniquely positioned to conduct clinical studies and to evaluate the
molecular and cellular mechanisms of potential diabetes therapies. The insights
expected from this trial should prove very valuable for Diamyd®, the scientific
community and for 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. Applications for allowance to conduct the studies are planned to be
submitted to FDA in the US in December and then to the regulatory authorities in
Europe.

About TrialNet
TrialNet is an international consortium dedicated to advancing the science of
prevention and early treatment of type 1 diabetes. TrialNet is a worldwide
network of 18 Clinical Centers with 16 major affiliates and approximately 150
additional 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.
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.