Diamyd Medical provides information regarding changes in associated company Cellaviva

Diamyd Medical (Nasdaq Stockholm First North, DMYD B) announces that the stem
cell company Cellaviva AB is to be refinanced by approximately MSEK 8.2 through
the exercise of a convertible loan of about MSEK 2.7 and a capital contribution
of approximately MSEK 5.5, of which Diamyd Medical’s shares amount to MSEK 1.3
and MSEK 1, respectively. Cellaviva intends to increase its focus on the
development of therapeutic stem cell products. Diamyd Medical has also announced
in its quarterly report, which was published today, that an impairment has been
made of the previous holding.
Developments in stem cell therapy are progressing at a rapid pace. Inflammatory
disease, rejection of transplant, arthritis, stroke and autoimmune diseases such
as type 1 diabetes and MS are some of the indications that are subject of
comprehensive clinical tests on a global scale today. In addition to harvesting
stem cells at birth for the newborns’ possible future use, Cellaviva sees
opportunities in developing “of-the-shelf” products for certain therapeutic
areas of application.

Diamyd Medical’s ownership share of Cellaviva is expected to be halved as a
result of the refinancing and subsequently amount to about 22%.

“This reduces our exposure and risk, and although the investment is regarded as
strategic, it must be seen as an investment that is separate from Diamyd
Medical’s core operation – curing diabetes,” says Ulf Hannelius, President and
CEO of Diamyd Medical.

Diamyd Medical announced earlier that an impairment of the holding in Cellaviva
could be undertaken (see press release dated June 2, 2016). In conjunction with
the preparation of the financial statements for the third quarter of the
2015/2016 financial year, the Board and management of Diamyd Medical have
identified a need for impairment of the carrying amount, corresponding to MSEK
13.5.

About Cellaviva
Cellaviva is Sweden’s first biobank for family saving 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 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
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.