DiaMedica Announces Executive Management Change

  DiaMedica Inc. (TSX VENTURE: DMA), announces the departure of Reggie Bowerman as President and Chief Executive Officer of the Company, effective July 31, 2009, by mutual agreement with the Company's board of directors. The Board thanks Mr. Bowerman for his contribution and leadership during his tenure as President and CEO.

Mr. Rick Pauls, who has been an active board member since 2005 and is the Chairman of the Board of DiaMedica, will return to serve as the Acting President and CEO. During his previous tenure as interim President and CEO, Mr. Pauls led the Company through successful clinical trials and raised capital for the Company to fund research and development. DiaMedica was recognized as one of Canada's Top 10 life sciences companies while under his leadership.

About DiaMedica

DiaMedica is developing novel treatments for type 2 diabetes based on a 'nerve signal' mechanism for which the Company has been issued two U.S. patents. DiaMedica completed a successful phase II trial with its lead product, DM-71, which demonstrated the ability to reduce HbA1c (blood sugar) levels and weight in humans. DiaMedica also completed a successful phase II trial with its second compound, DM-83, designed to measure changes in insulin and / or glucose. The success of this clinical trial was highly significant, as DiaMedica believes it validated the novel 'nerve signal' mechanism that would designate the Company's drugs as first-in-class.

The Company's third drug in development, DM-99, recently completed a phase II clinical trial. Patients receiving DM-99 in Period 1 of this cross-over study showed a decrease in baseline adjusted peak blood glucose concentration of 19% (p equals 0.077) versus those receiving placebo as well as a decrease in incremental glucose Area Under the Curve (AUC) 0-240 minutes of 31% (p equals 0.030) versus those receiving placebo. DM-199, a recombinant version of DM-99, has been created with the expectation that it will a long-acting version of DM-99. DiaMedica was recently awarded a contribution of up to $492,000 from the National Research Council of Canada Industrial Research Assistance Program (IRAP) to fund the development of DM-199. DiaMedica has been recognized as one of the Top Ten(TM) Life Science companies in Canada for the past two years by the Ottawa Centre for Research and Innovation.

Caution Regarding Forward-Looking Information

Certain statements contained in this press release constitute forward-looking information within the meaning of applicable Canadian provincial securities legislation (collectively, "forward-looking statements"). These forward-looking statements relate to, among other things, our objectives, goals, targets, strategies, intentions, plans, beliefs, estimates and outlook, including, without limitation, our anticipated future operating results, and can, in some cases, be identified by the use of words such as "believe," "anticipate," "expect," "intend," "plan," "will," "may" and other similar expressions. In addition, any statements that refer to expectations, projections or other characterizations of future events or circumstances are forward-looking statements.

These statements reflect management's current beliefs and are based on information currently available to management. Certain material factors or assumptions are applied in making forward-looking statements, and actual results may differ materially from those expressed or implied in such statements. Important factors that could cause actual results to differ materially from these expectations include, among other things: DiaMedica's early stage of development, lack of product revenues and history of operating losses, uncertainties related to clinical trials and product development, rapid technological change, uncertainties related to forecasts, competition, potential product liability, additional financing requirements and access to capital, unproven markets, supply of raw materials, income tax matters, management of growth, partnerships for development and commercialization of technology, effects of insurers' willingness to pay for products, system failures, dependence on key personnel, foreign currency risk, risks related to regulatory matters and risks related to intellectual property and other risks detailed from time to time in DiaMedica's filings with Canadian securities regulatory authorities, as well as DiaMedica's ability to anticipate and manage the risks associated with the foregoing. Additional information about these factors and about the material factors or assumptions underlying such forward-looking statements may be found in the body of this news release, as well as under the heading "Risk Factors" contained in DiaMedica's final long-form prospectus dated March 12, 2007. DiaMedica cautions that the foregoing list of important factors that may affect future results is not exhaustive. When relying on DiaMedica's forward-looking statements to make decisions with respect to DiaMedica, investors and others should carefully consider the foregoing factors and other uncertainties and potential events.

These risks and uncertainties should be considered carefully and prospective investors should not place undue reliance on the forward-looking statements. Although the forward-looking statements contained in this press release are based upon what management believes to be reasonable assumptions, DiaMedica cannot provide assurance that actual results will be consistent with these forward-looking statements. DiaMedica undertakes no obligation to update or revise any forward-looking statement.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

Contacts: DiaMedica Inc. Kevin Richardson, Ph.D. 204.478.5605 204.453.3745 (FAX) [e-mail] www.diamedica.com