Diamyd Medical increases strategic investment in the stem cell company Cellaviva

Diamyd Medical (Nasdaq Stockholm First North, Ticker: DMYD B) today announced
that the Company has increased its investment in the associated company
Cellaviva AB with an additional SEK 1.3 million. The investment is made within
the framework of a convertible loan of SEK 2.7 million, mainly directed at
existing shareholders.
The convertible loan will, among others, be used to finance Cellaviva’s
development of existing service offerings to include saving of stem cells from
umbilical cord and for the establishment of Cellaviva’s research bank.

“With this investment Diamyd Medical strengthens its commitment in the stem cell
area,” says Ulf Hannelius, President and CEO of Diamyd Medical. “We envisage
there is continuing progress made within research that may be significant for
future use of stem cells in the treatment of diseases like type 1 diabetes.”

Diamyd Medical is presently the largest shareholder in Cellaviva AB, Sweden's
first biobank for family saving and research on stem cells from the umbilical
cord. If fully converted, the convertible loan would increase Diamyd Medical's
shareholding in Cellaviva marginally from about 44.5 % to about 45 %.

About Cellaviva AB
Cellaviva is Sweden’s first biobank for family preservation of and research on
stem cells from the umbilical cord. Stem cells from the umbilical cord are
collected at birth, analyzed, frozen, and saved for possible future use. Every
cell in the body is stemming from stem cells that have unique properties, which
make them attractive from a medical perspective. The operations work under
approval from the Swedish Health and Social Care Inspectorate (IVO). Read more
at www.cellaviva.se.

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 45% 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:
Ulf Hannelius, President and CEO
Phone: +46 736 35 42 41. E-mail: ulf.hannelius@diamyd.com

Mathias Svahn, CEO Cellaviva AB
Phone: +46 702 61 55 04. E-mail: mathias.svahn@cellaviva.se
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.