CEO INCREASES HOLDING IN DIAMYD MEDICAL WITH 10,000 SHARES

Press Release, Stockholm, Sweden, September 28, 2007 – Diamyd Medical AB (www.omxgroup.com, ticker: DIAM B; www.otcqx.com, ticker DMYDY)

Diamyd Medical announces that its president and CEO, Anders Essen-Moller, has increased his holdings in Diamyd Medical with 10,000 shares series B. The increase includes simultaneous exercise of 30,000 options financed through sale of 20,000 shares less tax, resulting in an increase of Diamyd Medical’s cash position with SEK 1,5 million.