DIAMYD MEDICAL LICENSES FRENCH GENE THERAPY

Press Release, Stockholm, Sweden – December 7, 2006 – Diamyd Medical AB
(SWEDEN NOMX: DIAM B; U.S.A ADR: DMYDY)

Diamyd Medical announced today that it has executed an exclusive license agreement with Centre National de la Recherche Scientifique in Paris for the rights to a patent portfolio covering therapeutic use of GAD via viral vectors. “This license is an important complement to our existing rights from University of Pittsburgh re: gene therapy with the NTDDS system and GAD for neuropathic pain”, says Anders Essen-Moller, President and CEO of Diamyd Medical.

The French patent portfolio has international priority from 1995. The portfolio consists of active applications in Europe and the U.S.A with one granted patent in France. This patent covers the use of GAD65 and GAD67 for gene therapy for treatment of neurodegenerative diseases such as Alzheimer’s, Huntington’s, Parkinson’s, Epilepsy and Amyotropic Lateral Sclerosis (ALS).