DIAMYD ANNUAL MEETING: BOARD OF DIRECTORS ELECTED. NEW CEO TO BE PRESENTED SHORTLY. COMPANY CONFIRMS IT IS ON TRACK TO FILE IND WITH THE FDA FOR PHASE III TRIAL THIS YEAR

DIAMYD ANNUAL MEETING:  BOARD OF DIRECTORS ELECTED.  NEW CEO TO BE PRESENTED
SHORTLY. COMPANY CONFIRMS IT IS ON TRACK TO FILE IND WITH THE FDA FOR PHASE III
TRIAL THIS YEAR

Press Release, Stockholm, Sweden, December 11, 2007 - Diamyd Medical AB
(www.omxgroup.com, ticker: DIAM B; www.otcqx.com, ticker DMYDY)

At the Annual General Meeting on December 11, held in Stockholm, it was
confirmed that Diamyd Medical is on track to file an IND application for a phase
III study with the FDA in the US before year end.

At the meeting the following members of Board of Directors were elected for the
coming year: 
•	Lars Jonsson, BSc, Swedish Honorary Consul in Seattle, Founder and majority
owner of the international group Stellar Holding (www.stellar.com). Mr. Jonsson
plays an important role as a bridge between research and business in the US and
Sweden and his established business contacts will be important to the Company's
growing presence in the US.  

•	Christer Hägglund, BSc, Stockholm, is majority owner of the NOMX-listed
service company Proffice AB that recently has moved into the health care service
sector. Mr. Hägglund's experiences from public companies and as a businessman
will be important as Diamyd moves its drug development program forward. 

•	Sam Lindgren, MD, Lund, has more than 14 years experience from leading
positions within drug development within the areas of diabetes (Novo Nordisk),
CNS (Lundbeck) and asthma (Astra). Dr. Lindgren's broad experience will be
particularly beneficial to Diamyd as its lead diabetes product moves through
Phase III studies toward market approval. 

•	Anders Essen-Möller, Diamyd's Founder and President for the past 13 years will
step up from his Presidential role and assume the position as a full time
working Chairman, which will allow him to focus on the Company's strategic
development. 

At the meeting, it was also announced that former Board Director Professor Hans
Wigzell, who has played an important role advising on the Company's drug
development strategy, will continue to provide important scientific advice to
Diamyd Medical as a member of the Scientific and Medical Advisory Board (SAMAB).

“Compiling a Board of Directors with world class business, diabetes and CNS drug
development expertise is vital as we enter the most exciting year in the
Company's history,” said Essen-Möller. “One very important task for the Board
this year will be to closely watch and balance the Company's financial position
with the possibility that a partnership deal can be executed with established
pharma as we are moving into registration studies. I am excited to work with the
new President in my new role as working Chairman.”

At the meeting Essen-Möller informed that the new President and CEO will be
presented tomorrow and that it is an individual with a strong biotech background
that nicely adds to, reinforces and complements the present competences and
leadership skills in the Company. 

Michael Christini, President of Diamyd Inc. in Pittsburgh, reported that the IND
application for a phase I study in patients with cancer pain is planned to be
submitted to the FDA this year. “We believe that the NTDDS system for delivering
pain relieving therapies has a large potential in situations such as neuropathy,
spinal cord injury, cancer pain and shingles. Our NTDDS gene delivery vector
specifically targets the sensory nerves providing local delivery of inhibitory
genes which we believe should be quite effective in reducing pain,” Christini
said.

The Company's Income Statement and Balance Sheet were established and the Board
of Directors and the Chief Executive Officer were discharged from liability for
the financial year 2006/2007.

The meeting authorized the Board of Directors to resolve, at one or more
occasions until the next Annual General Meeting, to issue new shares with
consideration by set-off, in cash or other conditions and without regard to
pre-emption rights. The total number of shares that can be issued based on this
authorization shall not exceed 900,000 B-shares. 

The meeting adopted the Board's proposal for a new employee option program. The
Company shall issue an employee option program free of charge with a validity of
maximum three (3) years. The options shall be non-transferable and entitle the
holder to subscribe for a share of series B at a value of 130 percent of the
average share value on the Nordic Stock Exchange during five (5) days before the
allotment. The conversion of the options should be conditioned by the employment
or assignment at the time for vesting. Concerning employees in the USA, the
conditions for receiving options shall be in accordance with the regulations for
the state where issued.

To secure the employee option program it was decided to issue 200,000 warrants.
Every warrant is entitled to a subscription of one (1) share of series B with
validity until December 31, 2010. The Company shall retain warrants to cover the
costs and taxes that the Company will be liable for at execution of the
warrants. At full execution of all warrants the dilution is calculated to
approximately 2 percent.

The meeting approved the Board of Directors' proposal for principles for
compensation and other terms of employment for the President and Chief Executive
Officer of the Company and key executives.

For further information, please contact:
Stockholm office
Anders Essen-Möller
CEO and President 
+46 8 661 0026
investor.relations@diamyd.com

Pittsburgh office
Michael Christini
President
+1 412 770 1310
Michael.Christini@diamyd.com

Diamyd Medical AB (publ). Linnégatan 89 B, SE-115 23 Stockholm, Sweden. Tel: +46
8 661 00 26, fax: +46 8 661 63 68 or E-mail: info@diamyd.com. VATno:
SE556530-142001.

About Diamyd Medical
Diamyd Medical is a life science company developing treatments for diabetes and
its complications. The company's furthest developed project is the GAD-based
drug Diamyd® for autoimmune diabetes for which Phase III studies are planned.
Diamyd® has demonstrated significant and positive results in Phase II clinical
trials in Sweden.

GAD65, a major autoantigen in autoimmune diabetes, is the active substance in
Diamyd. GAD65 is also an enzyme that converts the excitatory neurotransmitter
glutamate to the inhibitory transmitter GABA. In this context, GAD may have an
important role not only in diabetes but also in several central nervous
system-related diseases. Diamyd Medical has an exclusive worldwide license from
the University of California at Los Angeles regarding the therapeutic use of the
GAD65 gene.

Diamyd Medical has sublicensed its UCLA GAD Composition of Matter license to
Neurologix, Inc. in Fort Lee, New Jersey for treatment of Parkinson's disease
with an AAV-vector.

Other projects comprise drug development within therapeutic gene transfer using
the exclusively licensed and patent protected Nerve Targeted Drug Delivery
System (NTDDS). The company's lead NTDDS projects include using enkephalin and
GAD for chronic pain, e.g., diabetes pain or cancer pain. All projects in this
field are currently in preclinical phases.

Diamyd Medical has offices in Stockholm, Sweden and Pittsburgh, PA. The Diamyd
Medical share is quoted on the Stockholm Nordic Exchange in Sweden (NOMX ticker:
DIAM B) and on the OTCQX-list in the United States (ticker: DMYDY) administered
by the Pink Sheets and the Bank of New York (PAL). Further information is
available at www.diamyd.com.

Disclaimer: This document contains certain "statements" relating to present
understandings, future events and future performance, including statements
relating to the progress, timing and completion of our research, development and
clinical trials; our ability to market, commercialize and achieve market
acceptance for product candidates; and our current and future strategic partner
relationships. These statements can be affected by inaccurate assumptions or by
known or unknown risks and uncertainties. Diamyd Medical undertakes no
obligation to publicly update such statements, whether because of new
information, future events or otherwise, nor does Diamyd Medical give any
guarantees that the statements, given or implied, are correct. This document is
a translation from the Swedish original. No guarantees are made that the
translation is free from errors.