Diamyd Medical increases investment in stem cell activity

Diamyd Medical (Nasdaq Stockholm First North Ticker: DMYD B) announced today
that the Company invests an additional SEK 0.8 million in Cellaviva AB, Sweden's
first commercial biobank for stem cells.
Diamyd Medical’s investment of SEK 0.8 million in Cellaviva AB is made in
connection with Mabtech AB buying into Cellaviva in an issue totaling SEK 6
million together with other shareholders prior to the introduction of
Cellaviva’s first product; collection and storage of umbilical cord blood stem
cells, where parents are given the opportunity to save stem cells from their
newborn child.

The reason for Diamyd Medical to be one of the major owners of Cellaviva is
based on Diamyd Medical’s vision that in the future, it should be possible to
differentiate insulin-producing cell from stem cells. These could then help the
donor, or close relatives who have developed type 1 diabetes, primarily siblings
and parents. Since the cells are autologous, no continuous immunosuppression
should be needed, which typically is necessary following transplantation of
unrelated tissue.

“Diamyd Medical is focused on the development of the diabetes vaccine Diamyd® to
stop or delay the destruction of insulin-producing cells,” says Anders Essen
-Möller, President and CEO of Diamyd Medical. “To be able to increase the number
of insulin-producing cells of a type 1 diabetes patient, where the autoimmune
destruction has been arrested, is a next step – a step that many diabetes
patients are waiting for.”

Cellaviva has evolved from a project from Karolinska Institutet Innovations AB.
After the transaction, Diamyd Medical's shareholding in Cellaviva will be
approximately 39%.

About the diabetes vaccine Diamyd®
Type 1 diabetes is a devastating disease which requires daily treatment with
insulin to sustain life. The importance of finding a cure should not be
underestimated. Diamyd® is considered to be the world’s furthest developed
Antigen Based Therapy (ABT) for treating the disease. Diamyd® has been used in
clinical studies with more than 1,000 patients and has shown a good safety
profile. In a European Phase III study Diamyd® showed good clinical effect in
several subgroups, and a limited overall 16% efficacy (p=0.10) in preserving
endogenous insulin secretion. To enhance the overall effect, combination
treatments with Diamyd® and other approved agents are being pursued. Diamyd® is
easy to administer in any clinical setting. The potential annual market is
estimated to several billion dollars.

About Diamyd Medical
Diamyd Medical is dedicated to working toward a cure for type 1 diabetes and
LADA. The Company’s projects include development of combination regimens with
the GAD-based diabetes vaccine Diamyd® for arresting the destruction of insulin
-producing beta cells. The Company exclusively licenses UCLA-rights to GAD65,
the active ingredient in the vaccine, for which the last patent expires in 2032.
Additionally, the Company exclusively licenses UCLA patents for using GABA for
the treatment of diabetes and other inflammation-related conditions.

Diamyd Medical is one of the major shareholders in the stem cell company
Cellaviva AB, which is establishing a Swedish commercial bank for private family
saving of stem cells in umbilical cord blood and other sources of stem cells.
Stem cells can be expected to be used in Personalized Regenerative Medicine
(PRM), for example, to restore beta cell mass in diabetes patients where
autoimmunity has been arrested.

Remium Nordic AB is the Company’s Certified Adviser.
For further information, please contact:
Anders Essen-Möller, President and CEO
Phone: +46 70 55 10 679. E-mail: anders.essen-moller@diamyd.com
Diamyd Medical AB (publ)
Kungsgatan 29, SE-111 56 Stockholm, Sweden. Phone: +46 8 661 00 26, Fax: +46 8
661 63 68
E-mail: info@diamyd.com. Reg. no.: 556242-3797. Website: www.diamyd.com.