Diamyd Medical’s major owners fully subscribe for their share of a rights issue

Not for release, publication or distribution, directly or indirectly, in the
United States, Canada, Australia, Hong Kong, Japan, New Zealand, Singapore,
Switzerland, Singapore or South Africa.

Diamyd Medical (NASDAQ Stockholm First North, DMYD B), world leader in the
development of Antigen Based Therapy for type 1 diabetes, announced today that
its major owners, Bertil Lindkvist and Anders Essen-Möller, notified that they
will take up their share corresponding to approximately one third of the
upcoming rights issue of SEK 22.1 million.
Diamyd Medical’s rights issue is implemented with the aim to strengthen the
Company’s negotiating position in discussions with pharmaceutical companies. In
addition, a new GABA/GAD study is being planned as well as pre-clinical studies
in Prague. An extension of the ongoing DIAGNODE-study is being prepared. A
dialysis step may be added into the manufacturing process to improve the
efficacy of the GAD-based diabetes vaccine Diamyd® in combination with GABA’s
tolerogenic nature. The Company also makes room for further investments in the
stem cell company Cellaviva.

First day of trading in the B share without entitlement to participate in the
rights issue is February 2, 2016. Record date for participation in the rights
issue is February 3, 2016. The issue price has been set at SEK 3.00 per share.
The subscription period will extend from February 8, 2016 until February 22,
2016. Trading in subscription rights will extend from February 8, 2016 until
February 18, 2016 on Nasdaq Stockholm First North. Subscription for shares can
also be made without subscription rights, but without a guaranteed allotment.

Information material regarding the offer of subscription of shares will be
available from February 8, 2016 on Diamyd Medical’s website, www.diamyd.com, and
on Aqurat Fondkommission’s website www.aqurat.se.

Important notice
In certain jurisdictions, the publication or distribution of this press release
may be subject to legal restrictions and persons in those jurisdictions where
this press release has been published or distributed should inform themselves
about and abide by such legal restrictions.

This press release may not be announced, published or distributed, directly or
indirectly, in the United States, Canada, Australia, Hong Kong, Japan, New
Zealand, Singapore, Switzerland or South Africa or any other country where such
action is wholly or partially subject to legal restrictions. Nor may the
information in this press release be forwarded, reproduced or disclosed in such
a manner that contravenes such restrictions. Failure to comply with this
instruction may result in a violation of the United States Securities Act of
1933 ("Securities Act") or laws applicable in other jurisdictions.

The subscription rights, the BTAs (interim shares) and the new shares will not
be registered in accordance with the Securities Act or any provincial act in
Canada and may not be transferred or offered for sale in the United States or
Canada or to persons resident there, or on account of such persons other than in
such exceptional cases that do not require registration in accordance with the
Securities Act or any provincial act in Canada.

About Diamyd Medical
Diamyd Medical is dedicated to finding a cure for autoimmune diabetes through
pharmaceutical development and investments in stem cell and medical technology.

Diamyd Medical develops the diabetes vaccine Diamyd®, an Antigen Based Therapy
(ABT) based on the exclusively licensed GAD-molecule. The Company’s licensed
technologies for GABA and Gliadin have also potential to become key pieces of
the puzzle of a future solution to prevent, treat or cure autoimmune diabetes,
and also certain inflammatory diseases. At this time six clinical studies are
ongoing with Diamyd®. Diamyd Medical is with its holdings of 39% one of the
major shareholders in the stem cell company Cellaviva AB. Stem cells can be
expected to be used in Personalized Regenerative Medicine (PRM), for example for
restoration of beta cell mass in diabetes patients where the autoimmune
component of the disease has been arrested. Diamyd Medical also has holdings in
the medtech company Companion Medical, Inc., San Diego, USA and in the gene
therapy company Periphagen, Inc., Pittsburgh, USA.

Diamyd Medical’s B-share is traded on Nasdaq Stockholm First North under the
ticker DMYD B. 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.