DiaMedica Announces Successful Phase I/II Clinical Results in Type 2 Diabetic Patients

DiaMedica (TSX VENTURE:DMA), a clinical stage biopharmaceutical company
announced positive results from the second portion of the DM199 Phase I/II
clinical trial conducted in Type 2 diabetic patients. The study achieved its
primary clinical endpoints of demonstrating the safety, tolerability and
sustained pharmacokinetic (PK) properties of DM199, while also suggesting an
insulin sensitization mechanism of action for Type 2 diabetes. 


The randomized, double-blinded, placebo-controlled study enrolled 10 Type 2
diabetic patients. The patients were dosed with either DM199 at three single
ascending dose levels or placebo. DM199 was well-tolerated at all three dose
levels by the diabetic patients with no dose limiting side effects. In addition,
results from secondary endpoints of the clinical trial assessing glucose control
were consistent with an insulin sensitization mechanism of action. Insulin
sensitizers lower a patient's blood sugar levels by increasing the body's
response to insulin over time. Full results of the study will be published as
part of the overall Phase I/II clinical trial.


In a separate study to the ongoing Phase I/II clinical trial, DiaMedica recently
completed a Phase I PK study in 14 healthy volunteers demonstrated DM199 has an
extended half-life (time required to reduce concentration of drug in body by
one-half) confirming earlier PK results. DM199 also had long half-life and
similar PK profile in Type 2 diabetic patients. 


"The sustained PK profile continues to support once-a-week administration which
could play an important role in improving patients compliance and disease
management," stated Mr. Rick Pauls, Chairman & CEO of DiaMedica. "DM199 offers a
promising new approach to improving glucose control and potentially addresses
some of the major complications associated with diabetes." 


"We are very encouraged by the results of the single ascending dose study in
Type 2 diabetic patients and the PK study. We are now progressing into the
chronic 16-day multiple ascending dose (MAD) study in healthy volunteers,
followed shortly thereafter with a 28-day study in Type 2 diabetic patients,"
said Dr. Mark Robbins, Vice President of Clinical and Regulatory Affairs at
DiaMedica. "DiaMedica has received regulatory clearance, started subject
recruitment, and will initiate the 16-day MAD study on October 1st."


About DiaMedica  

DiaMedica Inc. is a publicly traded (TSX VENTURE:DMA) clinical stage
biopharmaceutical company focused on the discovery and development of novel
therapies to treat diabetes and the complications associated with diabetes.
DiaMedica's lead clinical stage compound, DM199, is a recombinant human protein
known as rhKLK1 that represents a novel approach to treating diabetes and
associated complications. DiaMedica is also developing a novel monoclonal
antibody, DM204 for the treatment of Type 2 diabetes, which is in preclinical
development. 


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: 
Rick Pauls
Chairman & CEO
DiaMedica Inc.
763-710-4455
[e-mail]