PROMINENT PROFESSOR AS LEAD INVESTIGATOR FOR DIAMYD STUDIES IN THE U.S.A

Press release: Stockholm – August 10, 2006 – Diamyd Medical AB (SWEDEN OMXS: DIAM B; U.S.A ADR: DMYDY) Diamyd Medical announces that one of the world’s leading clinicians and researchers in diabetes, Professor Jerry Palmer, Seattle, USA, has agreed to be Lead Investigator if studies on type 1 diabetes patients will be started in the U.S.A.

Diamyd Medical plans to present results from their Phase II study with 70 children and adolescents with type 1 diabetes, on August 25, 2006. A scientific presentation will follow in September, by Professor Johnny Ludvigsson at the European Diabetes Congress, EASD, in Copenhagen. In addition, Professors Åke Lernmark and Carl-David Agardh at the University Hospital of Malmö, MAS, have invited world experts on diabetes to a meeting in Malmo on September 16 at which discussions of the results from the study will be included. Diamyd Medical is meanwhile preparing for new clinical trials in the U.S.A. For these, Professor Jerry Palmer, Head of the Diabetes Endocrinology Research Center at the University of Washington in Seattle, has agreed to be involved as Lead Investigator. Professor Palmer is one of the world’s leading authorities in type 1- and in type 2 diabetes, and has extensive experience from clinical trials. ”It will be exciting when the results from the type 1 diabetes study are presented and I hope for success”, says Professor Palmer. “I have followed The Story of GAD right from the beginning and I am very interested in helping to bring this development forward. Diamyd Medical’s selection to measure endpoints such as the levels of C-peptide, and in particular meal stimulated C-peptide levels, is in my opinion the most accurate parameters for clinical trials to show whether a drug can maintain function of pancreatic beta cells in type 1 diabetes patients”.