Diamyd´s subscription warrant provides SEK 28 million cash injection


Press release April,23, 2009                                                    

        
Diamyd Medical reports today that the subscription of new shares upon exercise  
of the subscription warrant DIAM TO2B brought in SEK 28 million in cash         
injection.                                                                      


We appreciate the continued support from our shareholders and warrant owners.   
Diamyd has made good progress during the year and this together with a large    
international interest for the Company, has made it possible to exercise the    
subscription warrants at the exercise price, says Elisabeth Lindner, President  
and CEO of Diamyd Medical.                                                      

In May 2008 Diamyd Medical issued a direct emission of shares, where each share 
was followed by a subscription warrant giving the right to subscribe one share  
in Diamyd Medical at the exercise price SEK 100 during the period March 16 to   
April 17, 2009. The subscription warrant Diamyd Medical TO 2B has now been      
exercised and has brought MSEK 28 in cash injection. The money will be used for 
clinical operations.                                                            

The subscription warrants that were not exercised have expired without value.   

For additional information, please contact:                                     
Elisabeth Lindner, President and CEO Diamyd Medical AB (publ.)                  
Tel: +46  (0)8 6610026                                                          

For pictures and press material, please contact:                                
Alexandra Fleetwood, Director Communications Diamyd Medical AB (publ.),         
alexandra.fleetwood@diamyd.com                                                  
Tel: +46 (0)8 661 0026                                                          

About Diamyd Medical                                                            
Diamyd Medical is a Swedish biopharmaceutical company focusing on the           
development of pharmaceuticals for the treatment of autoimmune diabetes and its 
complications. The company's most advanced project is the GAD-based drug Diamyd®
for type 1 diabetes. Phase III trials for this drug are in progress in both the 
US and Europe. In addition, the Company has initiated clinical studies in the US
in the area of chronic pain, using its Nerve Targeting Drug Delivery System. 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. Shares are listed on Nasdaq 
OMX First North (ticker: DIAM B) and on OTCQX in the US (ticker: DMYDY)         
administered by Pink OTC Markets and the Bank of New York (PAL). Further        
information is available on the company's website; www.diamyd.com.              

This information is disclosed in accordance with the Swedish Securities Mark    
ets Act, the Swedish Financial Instruments Trading Act, or the requirements     
stated in the listing agreements.                                               

Diamyd Medical AB (publ.)                                                       
Linnégatan 89 B, SE-115 23 Stockholm, Sweden. Tel: +46 (0)8 6610026, Fax: +46 8 
661 63 68                                                                       
E-mail: info@diamyd.com. VAT no: SE556530-142001.                               
(www.omxnordicexchange.com ticker: DIAM B; www.otcqx.com ticker: DMYDY

Attachments

pr_eng_to2b_090423.pdf