Diamyd, Inc., and Diarect AG settles dispute

In a press release of November 27, Diamyd Medical wrote that it "won" a dispute over Diarect, and that the judge had "decided" in favor of Diamyd. As recommended by Diarect, Diamyd is now modifying this wording in this corrective press release: Diamyd, Inc., and Diarect AG settles dispute Diamyd Medical AB (listed on the Swedish Stock Exchange, O-list) develops a treatment for insulin dependent diabetes, Diamyd(TM). There has been an ongoing dispute since one year between a subsidiary, i.e. Diamyd, Inc., Akron, Ohio, USA and Diarect AG, Freiburg, Germany, regarding the termination by Diarect of a distribution agreement concerning Diamyd's right to market products from Diarect on the North American market. In a court hearing in Freiburg the judge expressed the opinion, that Diarect may indeed wrongfully have terminated the agreement, and recommended a settlement which should include a compensation in favour of Diamyd. The parties thereafter agreed that Diarect would pay US$ 35,000 to Diamyd and that all other claims from the respective parties are withdrawn. The outcome of the dispute will affect Diamyd's earnings positively with approximately US$ 35,000 for the first quarter. For further information, contact Anders Essen-Möller, Diamyd Medical AB (publ), Phone: +46 8-661 00 26, 661 12 25, fax: +46 8-661 63 68 or email: info@diamyd.com, web site: www.diamyd.com No guarantee is given or implied for the accuracy of any statements on present, historical or future results. ------------------------------------------------------------ This information was brought to you by Waymaker http://www.waymaker.net The following files are available for download: http://www.waymaker.net/bitonline/2003/12/08/20031207BIT00030/wkr0001.doc http://www.waymaker.net/bitonline/2003/12/08/20031207BIT00030/wkr0002.pdf