Extra shareholders’ meeting at Diamyd Medical AB approves a new share issue of 220 MSEK

The extra shareholders’ meeting at Diamyd Medical AB (publ) held today decided, in accordance with the proposal put forward by the Board of Directors, to implement a new share issue of just under 220 MSEK with preferential rights for existing shareholders. The rights issue is 100% underwritten through subscription undertakings and underwriting guarantees.

The additional capital is required to cover with margin the costs that the Company anticipates incurring up to spring 2011, when data from the current Phase III program is expected to be available, and to strengthen the Company’s bargaining position in current partnership negotiations. The new issue gives an increase in the share capital of up to 3,131,091 SEK and an increase in the number of shares of up to 3,131,091 shares, whereof up to 157,267 are A shares and up to 2,973,824 are B shares. If the shares are fully subscribed for, this gives an increase in the share capital from 11,182,472 SEK to 14,313,563 SEK and an increase in the number of shares from a total of 11,182,472 shares to a total of 14,313,563 shares. The issue price is 70 SEK per share, which means that the company receives up to 219,176,370 SEK before issue and guarantee costs. Holders of A and B shares have preferential rights to subscribe for new shares in the same class of shares in proportion to the amount of owned shares. Holding of twenty-five (25) A and B shares gives a preferential right to subscribe for seven (7) new A and B shares (primary preferential right). In case all shares are not subscribed for with a primary preferential right, a subsidiary preferential right applies. The record day for establishing who is entitled to subscribe for the new shares with a preferential right is Wednesday October 14, 2009. Preliminary time plan for the issue: • Last day of trading including preferential rights - October 9, 2009 • Record day - October 14, 2009 • Publication of prospectus - October 14, 2009 • Subscription period - October 16 – 30, 2009 • Trading with preferential rights - October 16 – 27, 2009 For more information, please refer to the prospectus produced by the Board of Directors of Diamyd Medical for the preferential rights issue. It is estimated that the prospectus will be available on the Company’s website at www.diamyd.com from Wednesday October 14, 2009.

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