DiaMedica's Type 2 Diabetes Antibody Shown to Increase Glucose Infusion Rate by 291%

DiaMedica (TSX VENTURE:DMA) today announces positive and important activity with
DM-204, its lead monoclonal antibody. In a gold-standard animal model for
testing Type 2 diabetes therapies, administration of DM-204 caused a significant
increase in glucose utilization. This study in combination with the antibody's
recently reported lowering of high blood pressure - the most common complication
experienced by diabetes patients - highlight DM-204's potential to become a
breakthrough treatment for Type 2 diabetes.


In a preclinical study conducted by Invitech Inc. (Hayward, CA), DM-204's
activity was measured using a hyperinsulinemic euglycemic clamp model. Rats
acutely treated with a single dose of DM-204 demonstrated a 291% increase in
maximal glucose infusion rate (p less than 0.0035). This significant increase in
glucose disposal was associated with a 160% overall average increase (p less
than 0.0066) in the glucose infusion rate in order to maintain euglycemia.
DM-204 also showed positive results in two other Type 2 diabetes models. 


"DM-204 had a clear effect on whole body glucose utilization," stated Dr. Alan
Cherrington, Professor of Medicine at Vanderbilt University, past President of
American Diabetes Association, Banting Award winner and member of DiaMedica's
scientific advisory board, "I am very keen to see testing of this antibody move
forward".


DM-204 was previously reported to reduce blood pressure in an earlier study.
High blood pressure (hypertension) is the primary risk associated with Type 2
diabetes, with 70% of Type 2 diabetics at increased risk of stroke and
cardiovascular disease as a result of having high blood pressure. As announced
on March 2nd 2011, the antibody lowered systolic blood pressure by 15 mmHg (p
less than 0.05). 


"These exceptional results of DM-204 for Type 2 diabetes and our earlier
hypertension results offer a promising and highly differentiated product," said
Mr. Rick Pauls, CEO of DiaMedica. "A monoclonal antibody with potent dual
capabilities to normalize blood glucose and blood pressure could replace
currently used combination therapies of diabetic and anti-hypertensive drugs.
These could be administered as infrequently as once a month. DM-204 has the
potential to fundamentally change the treatment regimen for diabetic patients". 


About DiaMedica 

DiaMedica is a biopharmaceutical company that develops novel therapeutic
products designed to improve the lives of people with Type 1 diabetes, Type 2
diabetes and other large, medically unmet diseases. DiaMedica's lead product
candidate, DM-199, has been shown to significantly improve glucose metabolism
and protect and proliferate beta cells.


The Company is listed on the TSX Venture Exchange under the trading symbol "DMA".

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circumstances after the date hereof, or to reflect the occurrence of any
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on reasonable assumptions, no assurance can be given that these expectations
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