DIAMYD REQUESTS A MEETING WITH THE US FDA TO DISCUSS PHASE III CLINICAL TRIALS IN THE U.S.A

Press Release, Stockholm, Sweden – October 12, 2006 – Diamyd Medical AB
(SWEDEN OMX: DIAM B; U.S.A ADR: DMYDY)

Diamyd Medical today announces that the Company has requested an end-of-phase II meeting with the US FDA, to discuss a planned phase III clinical trial in type 1-diabetes patients in the U.S.A. If the US FDA agrees to meet, an end-of-phase II meeting will be conducted where the US FDA gives their opinion on the proposed clinical trial. After adjustments based on this feed-back Diamyd can file an application to perform clinical trials in the U.S.A.

“We are working hard to bring the Diamyd® product further in its development towards a new therapeutic for autoimmune diabetes, while simultaneously continuing our discussions with third parties regarding partnerships” says Anders Essen-Moller, President and CEO of Diamyd Medical.