DiaMedica Announces that Co-Administration of DM-199 with Insulin Enhances Insulin's Glucose Lowering Activity

DiaMedica (TSX VENTURE:DMA) is pleased to report that DM-199 has demonstrated a
statistically significant effect in lowering daily insulin needs when
co-administered with basal long-acting insulin (Lantus(R)) in a pre-clinical
diabetes study. Full results to be published.


The study confirmed DM-199 alone lowers fasting glucose values (p=0.000003) in a
diabetic model. During an oral glucose tolerance test, DM-199 co-administered
with basal long-acting insulin significantly reduced the spike in glucose levels
immediately and well after a meal to near normal levels (p=0.00002), as measured
by area under the curve glucose, with no evidence of hypoglycemia. 


"The results from this study suggest DM-199 co-administered with basal
long-acting insulin may reduce the need for short-acting insulin around meals
while improving glucose control in diabetic patients," stated Rick Pauls,
Chairman & CEO of DiaMedica. "Lowering the frequency and amount of daily insulin
injections and reducing the risk of hypoglycemia could significantly improve the
quality of life for Type 1 diabetics and possibly for Type 2 diabetics. Results
are to be confirmed in future human studies."


"These promising results further suggest the potential of DM-199 for the
treatment of Type 1 diabetes," stated Dr. Alexei Savinov, Associate Scientist at
The Sanford Project who performed the study. The Sanford Project is an emerging
translational research center focused on targeted diabetes research, cures and
care. "Earlier pre-clinical studies have also independently demonstrated the
ability of the DM-199 program to lower glucose levels, significantly halt the
autoimmune attack and proliferate insulin-producing beta cells."


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.