DIAMYD INITIATES EUROPEAN SUBMISSION FOR PHASE III STUDIES WITH DIABETES VACCINE

Press Release, Stockholm, Sweden, January 18, 2008 – Diamyd Medical AB (www.omxgroup.com, ticker: DIAM B; www.otcqx.com, ticker DMYDY)

Diamyd Medical announces that its application to initiate European Phase III studies with the therapeutic diabetes vaccine Diamyd®, has been initiated. A submission has been sent today to the Swedish Medicinal Products Agency. Additional submissions will be sent to other European countries. The study is proposed to include approximately 300 patients at 30-50 European clinical sites in 3-5 countries. Principal Investigator for the study will be Professor Ludvigsson, University of Linkoping, Linkoping, Sweden.

An application to conduct a similar Phase III study in the US was submitted to the FDA in December, 2007.

“This is another important milestone for Diamyd. We are looking forward, through the coming national applications, to the gradual inclusion of more European countries and diabetes clinics in the European Phase III Study”, says Elisabeth Lindner, CEO Diamyd Medical.