21-MONTH FINDINGS FROM DIAMYD® TYPE 1 DIABETES TRIAL TO BE PRESENTED AT AN INTERNATIONAL DIABETES CONFERENCE IN BERLIN

Press Release, Stockholm, Sweden, August 16, 2007 – Diamyd Medical AB
(www.omxgroup.com, ticker: DIAM B; www.otcqx.com, ticker DMYDY)

Diamyd Medical announced today that preliminary findings from a 21-month follow-up analysis of the previously reported successful Phase II type 1 diabetes trial will be presented at the annual ISPAD (International Society for Pediatric and Adolescent Diabetes) meeting in Berlin, Germany, the 26th of September, 2007.

The trial is designed to investigate the efficacy and safety of the Diamyd® vaccine in 70 children with recent onset type 1 diabetes. The children were treated with two injections of Diamyd® or placebo. As previously reported, 15 months after treatment, the Diamyd® group showed significantly higher meal stimulated insulin levels than the placebo group. Diamyd®-treated patients also showed a clear favorable immune response.

The presentation at the ISPAD meeting in September will be made by Professor Johnny Ludvigsson, Linkoping University Hospital, Sweden, the principal investigator of the study.

In a separate presentation, additional immunological data from the type 1 diabetes study, after 15 months of follow-up, will be presented by Professor Ludvigsson´s team at the annual EASD (European Association for the Study of Diabetes) meeting in Amsterdam, the Netherlands, the 18th of September 2007.

As previously reported, Diamyd Medical is conducting partnership discussions while preparing its international Phase III program for type 1 diabetes.