DiaMedica Selected as One of Canada's Top Ten(TM) Competition Winners for the Second Consecutive Year

  DiaMedica Inc. (TSX VENTURE: DMA), a drug discovery and development company focused on novel treatments for Type 2 diabetes has been selected as a winner of the 2009 annual Canada's Top 10(TM) Competition (www.topcanadiancompanies.ca), an award the Company was honoured with in 2008. Winners will gather on October 7th at the Fairmont Chateau Laurier Hotel in Ottawa to hone their presentation skills, meet local and regional investors, and prepare themselves for the first leg of the 2009 Investment Forum series.

DiaMedica Inc. is a biopharmaceutical company developing novel treatments for Type 2 diabetes based on a newly discovered mechanism for which the Company has been issued two U.S. patents. Rather than treating the symptoms, DiaMedica addresses the cause of Type 2 diabetes which the Company believes is the result of a dysfunctional nerve signal to the liver. The Company's two lead products, DM-71 and DM-83, have completed successful Phase IIa clinical trials and will undergo further testing. DiaMedica's third compound, DM-99, is currently being tested in a Phase IIa clinical trial with results of the study to be announced later this year.

"DiaMedica is honored to have been selected for this prestigious award for the second year in a row," stated DiaMedica's President and CEO, Rick Pauls. "Independent validation from a jury of experienced venture capitalists who posses a strong track record of success in the life science industry is highly valuable. We are proud to be included among such a respected, high-profile group of companies. This award recognizes our achieved milestones and future prospects as a top tier biopharmaceutical company and we are looking forward to an exciting year in 2009".

Winners are chosen by an independent expert panel of Canadian and U.S. venture capitalists. Originally developed to promote the 10 most promising life science companies from across Canada to Canadian and international investors and partners, the competition now showcases Canada's life sciences, cleantech and technology sectors. Working in partnership with Canadian Consulates in Boston, New York City, San Diego and San Francisco, winning companies will participate in targeted investment forums in each city, providing them with an opportunity to meet with investors who have expressed an active interest in financing these companies. Since its inception in 1999, competition alumni have secured more than $522M in venture capital financing.

Canada's Top 10(TM) is organized by OCRI (Ottawa Centre for Research and Innovation) and presented by Borden Ladner Gervais LLP. The winners include a wide variety of companies from the life science, cleantech and technology sectors.

"Diamedica has been chosen as a Canada's Top 10 winner two years in a row. This is a testament to the quality of the company and its technology. An independent jury of VC's with expertise in life sciences makes these decisions. Diamedica would not be a two time winner if these investors did not feel that the technology and the company as a whole showed great market potential. We look forward to working with the management team to continue to help them achieve success", said Michelle Scarborough, Vice President, Investment and Commercialization, OCRI.

About DiaMedica

DiaMedica is a biotechnology company developing novel treatments for various stages of Type 2 diabetes with three clinical stage products. The Company's lead product, DM-71, demonstrated the ability to reduce HbA1c (glucose) levels and weight in a Phase IIa human trial. DM-83 showed efficacy in reducing insulin levels in a Phase IIa meal tolerance test. DiaMedica's third clinical stage product is in a Phase IIa trial in the second half of 2008. DiaMedica trades under the symbol "DMA" on the TSX Venture Exchange. For additional information please visit the Company's website at 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, "forward-looking statements"). These forward-looking statements relate to, among other things, our objectives, goals, targets, strategies, intentions, plans, beliefs, estimates and outlook, including, without limitation, our anticipated future operating results, and can, in some cases, be identified by the use of words such as "believe," "anticipate," "expect," "intend," "plan," "will," "may" and other similar expressions. In addition, any statements that refer to expectations, projections or other characterizations of future events or circumstances are forward-looking statements. 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 technological change, uncertainties related to forecasts, competition, potential product liability, additional financing requirements and access to capital, unproven markets, supply of raw materials, income tax matters, management of growth, partnerships for development and commercialization of technology, effects of insurers' willingness to pay for products, system failures, dependence on key personnel, foreign currency risk, risks related to regulatory matters and risks related to intellectual property and other risks detailed from time to time in DiaMedica's filings with Canadian securities regulatory authorities, as well as DiaMedica's ability to anticipate and manage the risks 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.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

Contacts: DiaMedica, Inc. Kevin Richardson, Ph.D. Director, Investor Relations [phone] Email: [e-mail] Website: www.diamedica.com Ottawa Centre for Research and Innovation Kim Cunningham Manager, External Communications [phone] x 256 or Cell: [phone] Email: [e-mail]