ELISABETH LINDNER NEW PRESIDENT AND CEO OF DIAMYD MEDICAL

Press Release, Stockholm, Sweden, December 12, 2007 – Diamyd Medical AB (www.omxgroup.com, ticker: DIAM B; www.otcqx.com, ticker DMYDY)

Diamyd Medical announced today that the Board of Directors has appointed Elisabeth Lindner as President and CEO for the Company.

Elisabeth Lindner, MSc, MBA, is one of Sweden’s most experienced experts within the biopharmaceutical industry with more than 25 years experience in senior management from positions at Octapharma AB and Pharmacia Corporation, among others.

Lindner is also a member of the Board of Directors of NOMX-listed BioInvent International AB and a newly elected member of the Royal Swedish Academy of Engineering Science (IVA).

“To lead Diamyd Medical through its most important phase of corporate growth is an extraordinary professional opportunity,” stated Lindner. “The lead drug candidate, Diamyd® holds great potential as a therapy for diabetes and I am committed to moving the product to market as quickly as possible, starting with the submission of the Phase III IND filing in the US this year. Anders Essen-Möller has assembled a very strong and accomplished team and I look forward to building on its past successes.”

“We are extremely pleased to announce Elisabeth Lindner as President and CEO for our growing biotech organization,” says Anders Essen-Möller, Chairman of Diamyd Medical. “Elisabeth Lindner is a very experienced and competent person with outstanding management skills that will be of vital importance as we move our products forward towards commercialization. I am excited as a working Chairman to work with Elisabeth Lindner and feel confident that she will lead our outstanding teams in Stockholm and Pittsburgh to great success.”