DiaMedica Announces Positive DM-199 Pre-Clinical Results Supporting Glucose-Plus Type 2 Diabetes Profile

DiaMedica (TSX VENTURE:DMA) is pleased to announcing promising new pre-clinical
results with its lead therapeutic, DM-199 in a well recognized pre-clinical Type
2 diabetes model. 


As previously reported, treatment with DM-199 exhibited a 313% (p less than
0.0001) increase in glucose disposal in a SD animal hyperinsulinemic euglycemic
clamp model. The Company now reports that treatment with DM-199 in a three-week
study of ZDF animal demonstrated expected improvement in glucose control. In
addition, there was a positive robust control of blood pressure. Specifically, a
low dose of DM-199 therapy lead to a 1.6% improvement in HbA1c, and a 20 mm/Hg
(p=0.008) lower mean systolic blood pressure compared to untreated animals.
Numerically, DM-199 outperformed Exanatide(R) and Sidagliptin(R) in both
measurements, but did not achieve statistical significance. Additional studies
powered to compare DM-199 to these agents are on going.


"These results clearly support the development of DM-199 as a clinical Type 2
diabetes therapy," stated Rick Pauls, CEO of DiaMedica, "in that it appears
DM-199 may not only control blood glucose, but also have a very positive effect
on blood pressure as well. High blood pressure increases the risk of heart
disease (heart attack), stroke, and kidney disease complications in Type 2
diabetics." 


DM-199 featuring a Glucose-Plus Profile

Ideally, next generation Type 2 diabetes therapeutics will provide glucose
control plus additional benefits to control Type 2 diabetes complications and
co-morbidities, termed "glucose-plus". DiaMedica believes DM-199 potentially
offers one of the most comprehensive "glucose-plus" profiles of any of the
products currently on the market or in development. Animal studies to date show
superior glucose control through what the Company believes to be an insulin
sensitivity and insulin secretion mechanism. In addition, results to date
indicate a positive profile for blood pressure and heart rate DM-199 has been
shown to significantly reduce inflammation in animal models. Recently, DM-199
has been co-administered with long acting insulin showing a statistically
significant effect in the absence of hypoglycemia (results to be published).


"While the animal studies need to be confirmed in human trials, we believe
DM-199 is well positioned to be developed as a Type 2 therapeutic with its
glucose-plus features. DiaMedica is now moving forward with its human clinical
for Type 2 diabetes in early 2013," stated Rick Pauls, Chairman & CEO of
DiaMedica.


About DiaMedica

DiaMedica Inc. is a publicly traded (TSX VENTURE:DMA) biopharmaceutical company
focused on the discovery and development of novel therapies to treat diabetes
and the complications associated with diabetes. DiaMedica's lead compound,
DM-199, is a recombinant human protein that represents a novel approach to
treating Type 1 and Type 2 diabetes. Based on the Company's understanding of the
postprandial state, DiaMedica is also developing a novel monoclonal antibody,
DM-204 for the treatment of Type 2 diabetes. Chronic treatment with DM-204 in a
pre-clinical Type 2 diabetes model resulted in a significant improvement in
blood glucose control as measured by HbA1c and also significant improved blood
pressure and serum cholesterol levels.


The Company is listed on the TSX Venture Exchange in Canada under the trading
symbol 'DMA'.


FORWARD-LOOKING STATEMENTS

The statements made in this press release that are not historical facts contain
forward-looking information that involves risk and uncertainties. All
statements, other than statements of historical facts, which address DiaMedica's
expectations, should be considered forward-looking statements. Such statements
are based on management's exercise of business judgment as well as assumptions
made by and information currently available to management. When used in this
document, the words "may", "will", "anticipate", "believe", "estimate",
"expect", "intend" and words of similar import, are intended to identify any
forward-looking statements. You should not place undue reliance on these
forward-looking statements. These statements reflect a current view of future
events and are subject to certain risks and uncertainties as contained in the
Corporation's filings with Canadian securities regulatory authorities. Should
one or more of these risks or uncertainties materialize, or should underlying
assumptions prove incorrect, actual results could differ materially from those
anticipated in these forward-looking statements. The Corporation undertakes no
obligation, and does not intend, to update, revise or otherwise publicly release
any revisions to these forward-looking statements to reflect events or
circumstances after the date hereof, or to reflect the occurrence of any
unanticipated events. Although management believes that expectations are based
on reasonable assumptions, no assurance can be given that these expectations
will materialize.


FOR FURTHER INFORMATION PLEASE CONTACT: 
DiaMedica Inc.
Rick Pauls
Chairman & CEO
One Carlson Parkway, Suite 124, Minneapolis, MN
763-710-4455
[e-mail]