DiaMedica Announces New Data With Its Novel Monoclonal Antibody Program

DiaMedica (TSX VENTURE:DMA) today announces data from its monoclonal antibody
(mAb) program targeting glycogen synthase kinase 3 beta (GSK3B), a key cell
signaling enzyme implicated in diabetes, as well as cancer and viral infections.


In work conducted at Charles River Laboratories, the mAb potently inhibited
GSK3B leading to the killing of prostate, pancreatic, stomach and mixed lineage
leukemia cancer cells in in vitro studies. Importantly, only the cancer cell
lines that are dependent on GSK3B activity for survival were killed by the mAb,
and not the non-GSK3B dependent cell lines tested. Demonstrating the potent and
targeted activity of the mAb. Our leading cancer target was found to be prostate
cancer, the most common form of cancer in men. The mAb was able to kill a highly
metastatic androgen refractory prostate cancer cell line at an EC50 value within
one log of cisplatin, a highly toxic chemotherapy treatment for cancer. 


"DiaMedica's approach to blocking GSK3B is unique and highly differentiated
from, to our knowledge, all other drugs in development to this target which are
small molecule inhibitors. Our antibody causes activation of a critical
signaling pathway, which we believe results in a specific and profound
downstream inhibition of GSK3B. This may lead to superior activity and safety of
our mAb as compared to small molecule GSK3B inhibitors", commented Dr. Mark
Williams, VP Research of DiaMedica.


"While the primary focus of DiaMedica's mAb program is diabetes, these
additional studies support the potentially broad utility of our GSK3B inhibiting
antibody in several indications, including cancer. DiaMedica anticipates
reporting data on diabetes and other diseases in the coming months", stated Rick
Pauls, Chairman and CEO of DiaMedica. "We expect that results from these studies
will provide opportunities to partner our exceptional mAb program for numerous
diseases while still maintaining our company focus on diabetes. 


About DiaMedica

DiaMedica is a biopharmaceutical company developing novel treatments for
diabetes and other disorders. Two of DiaMedica's products, DM-71 and DM-99 have
demonstrated phase II human efficacy in lowering blood glucose levels in people
diagnosed with type 2 diabetes.


DiaMedica's lead product DM-199 is an improved, recombinant form of the
naturally-occurring DM-99 to treat diabetes while also demonstrating activity in
neurological and autoimmune disorders. The Company has shown that DM-99, the
naturally-occurring form of DM-199, confers neural protection (protects brain
cells) and triggers neural stem cell proliferation (creates brain cells) for the
treatment of numerous neurological disorders including Alzheimer's disease.


For further information please visit www.diamedica.com.

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, the "forward-looking statements"). These
forward-looking statements relate to, among other things, DiaMedica's
objectives, goals, targets, strategies, intentions, plans, beliefs, estimates
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"believe," "anticipate," "expect," "intend," "plan," "will," "may" and other
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projections or other characterizations of future events or circumstances are
forward-looking statements. Specifically, this press release contains
forward-looking statements regarding matters such as, but not limited to, the
anticipated use of proceeds from the Offering, management's assessment of
DiaMedica's future plans, information with respect to the advancement of
DiaMedica's research and development programs, and DiaMedica's other estimates
and expectations. 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: uncertainties
and risks related to our research and development programs, the availability of
additional financing, risks and uncertainties relating to the anticipated use of
proceeds, changes in debt and equity markets, 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, the cost and
supply of raw materials, management of growth, effects of insurers' willingness
to pay for products, risks related to regulatory matters and risks related to
intellectual property matters. 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 2009 annual information form. 

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. Such forward-looking statements are based on a number of
estimates and assumptions, which may prove to be incorrect, including, but not
limited to, assumptions regarding the availability of additional financing for
research and development companies, and general business and economic
conditions. These risks and uncertainties should be considered carefully and
investors and others 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. Additional risk factors, factors which
could cause actual results to differ materially from expectations, and
assumptions relating specifically to our acquisition of Sanomune may be found in
our press releases dated February 18, 2010 and April 20, 2010.