DiaMedica Enrolls First Patient in Phase IIa Clinical Trial for DM-99

DiaMedica Inc. (TSX VENTURE:DMA), a drug discovery and clinical development
company focused on a novel approach to treating type 2 diabetes, today announces
enrollment of the first patient in the phase II proof of concept clinical trial
with DM-99, the Company's third drug candidate to enter phase II human trials.


The single-blinded clinical trial being conducted in the European Union, will
demonstrate DM-99's effectiveness at controlling blood glucose levels in 40 type
2 diabetes patients with HbA1c levels over 7.5%, after they have consumed a
standardized meal. Change in insulin and/or glucose levels is the study's
primary endpoint. Each patient will be tested for both the effects of treatment
with DM-99 as well as a placebo, and will therefore serve as their own control
in this cross over study. Results are expected at the end of 2008.


Pre-clinical animal studies on DM-99 were performed by Dr. David Wasserman,
Professor of Molecular Physiology and Biophysics and Ron Santo Chair in Diabetes
at the Diabetes Research and Training Center at Vanderbilt University in
Nashville, Tennessee. The amount of glucose being metabolized was measured using
the hyperinsulinemic euglycemic clamp model. Specifically, healthy animals
treated with DM-99 were able to metabolize 41% more glucose than untreated
healthy animals (p less than 0.04) within the first sixty minutes of the drug
being administered. The drug was also shown to have a very good safety profile.


"We believe that DM-99 both insulin sensitizes and hastens the onset of insulin
action", commented Rick Pauls, DiaMedica's President and CEO. "We are looking
forward to the outcome of this phase II trial because the pre-clinical research
results were very compelling."


Diabetes is a widespread and rapidly growing disease, affecting over 180 million
people world wide with over 90% of people with diabetes being diagnosed with the
type 2 form of the disease. According to the World Health Organization, this
number is expected to double during the next 15 years while the American
Diabetes Association has estimated the annual economic cost in 2007 to the
United States to be $174 billion. Global sales of oral diabetes drugs total $6
billion today and are expected to climb to $11 billion by 2011.


About DM-99

DM-99 is an oral biologic compound with a well established safety profile.
Pre-clinical results from the Diabetes Research and Training Center at
Vanderbilt University have shown that DM-99 is able to cause muscle to increase
the uptake of glucose from the blood by over 40% (p less than 0.04) within 60
minutes of administration.


About DiaMedica

DiaMedica is developing novel treatments for various stages of type 2 diabetes.
The Company has completed a phase IIa clinical trial with its lead product,
DM-71, which demonstrated the ability to reduce HbA1c levels and weight in man.
The Company recently completed a proof of concept phase II clinical trial with
DM-83 that showed a reduction in the amount of peak insulin required to process
glucose. This indicates that DM-83 may prolong the insulin producing ability of
the pancreas. DiaMedica's third drug in clinical development, DM-99, is entering
a phase II clinical trial.


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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
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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.