REPEAT: The Sanford Project & DiaMedica Announce Successful Type 1 Diabetes NOD Mouse Study with DM-199

The Sanford Project & DiaMedica (TSX VENTURE:DMA) today announce the successful
completion of a study involving DM-199 in preventing the onset of Type 1
diabetes in the non-obese diabetic (NOD) mouse model. With these latest results,
DiaMedica's DM-199 program has now demonstrated efficacy in three critical areas
of Type 1 diabetes treatment consisting of immune therapy, beta cell therapy,
and glucose control. 


Immune Therapy 

DM-199 administration to NOD mice, the gold standard animal model for Type 1
diabetes, appeared to prevent the autoimmune attack and thereby the destruction
of insulin-producing beta cells in the pancreas which causes Type 1 diabetes.
Under the direction of Dr. Alexei Savinov, Associate Scientist at The Sanford
Project, DM-199 showed a significant dose-dependent and dose-frequency dependent
delay in the onset of Type 1 diabetes over the 18-week course of treatment
(beginning at 6 weeks of age). The Sanford Project and DiaMedica intend to
publish the results of this study together in a peer-reviewed publication.


"The results of this study are extremely exciting and suggest that DM-199 has
the potential to become a very promising treatment for Type 1 diabetics," said
Dr. Alexei Savinov. 


"Modulating the auto-immune response and stimulating beta cell regeneration are
key strategies in developing novel therapies and cures for type 1 diabetes "
stated Dr. Paul Burn, the Broin Chair & Director of The Sanford Project and
Professor, Department of Pediatrics at the Sanford School of Medicine,
previously Senior Vice President of Research & Development at the Juvenile
Diabetes Research Foundation, Global Head of Metabolic Diseases at Hoffman-La
Roche, Director of Research at Bayer Pharmaceutical, and former Director of
Endocrinology at Eli Lilly. "DM-199 has now demonstrated its benefits in mouse
models of type 1 diabetes. Clinical trials exploring the potential of DM-199 in
human settings are the logical next step. We look forward to continue working
with DiaMedica towards this goal."


In addition to its immuno-modulating activity in NOD mice, DiaMedica has tested
DM-199 in other animal models and demonstrated it also possess beta cell
proliferative activity as well as improved glucose control. 


Beta Cell Therapy 

DM-99, the first generation DiaMedica drug that has been replaced by the
advanced DM-199 was shown to increase insulin producing beta cell proliferation
by 1,277% resulting in a 300% increase in pancreas insulin levels and a 68%
(p=0.05) reduction in fasting blood sugar after three weeks of treatment
compared to untreated animals. In the previously reported study, animals were
injected with streptozotocin, a naturally occurring compound known to be toxic
to beta cells, in order to mimic Type 1 diabetes with an insult to the beta
cells.


Beta cell therapy aims to restore the body's ability to make insulin by
proliferating new insulin producing beta cells in the pancreas.


Glucose Control 

DM-199 improved whole body glucose uptake in a previously reported
hyperinsulinemic euglycemic clamp model. Animals treated with a single dose of
DM-199 had up to 160% increase in maximal glucose infusion rate. 


Human Data 

In a Phase II human proof-of-concept study with the first generation of DM-199,
DM-99, diabetics demonstrated an ability to process 31-48% more glucose
following a meal compared to patients not on treatment. 


Glucose control is the ability to maintain normal blood glucose levels
(euglycemia) and prevent high blood sugar (hyperglycemia) thereby reducing the
risk of complications from diabetes when blood glucose is not properly
controlled.


"We are very pleased with the results from the collaboration with The Sanford
Project," stated Rick Pauls, President and Chief Executive Officer of DiaMedica.
"These current NOD mouse results are pivotal as they confirm that DM-199
addresses the main concerns of Type 1 diabetes. We look forward to moving ahead
with DM-199 and our ongoing collaboration with The Sanford Project."


About The Sanford Project

The Sanford Project is one of the four initiatives made possible through Denny
Sanford's transformational gift to Sanford Health in 2007. From its inception,
The Sanford Project was "designed for results." Sanford Health will combine
clinical components of patient care and science into one of the most promising
and fast-moving fields of research; regenerative medicine. Their goal is to
research and cure Type 1 diabetes, all in pursuit of a healthy future for our
children. For further information please visit www.sanfordproject.org


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 protect and proliferate beta cells and
significantly improve glucose metabolism in pre-clinical models.


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

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