DiaMedica Inc.

DiaMedica Inc.

March 26, 2007 09:03 ET

DiaMedica Appoints David Allan to Its Board of Directors

WINNIPEG, MANITOBA--(CCNMatthews - March 26, 2007) - DiaMedica Inc. (the "Company" or "DiaMedica") (TSX VENTURE:DMA), a clinical stage biotechnology company developing novel treatments for various stages of type 2 diabetes, is pleased to announce that subject to regulatory approval, David G.P. Allan has joined its board of directors. Mr. Allan is well known in the life sciences and investment banking industries and has considerable experience in the public markets.

"We are very pleased to welcome Mr. Allan to our board of directors", commented Dr. Karl-Gunnar Hidinger, President of DiaMedica. "He is a highly respected member of the life sciences community and we are confident that his extensive business expertise in the investment banking and biotech industries will be invaluable as the Company executes its strategic plan."

DiaMedica's shares recently began trading on the TSX Venture Exchange under the stock symbol "DMA". The Company's lead product, DM-71, is currently in the final stages of enrollment for its phase IIa clinical trial. Earlier this month Mr. Peter de Visser of DeVisser Gray was also appointed to the board of directors.

"DiaMedica has enormous future potential and I am honoured to have been appointed to the Company's board of directors", said Mr. Allan. "I am pleased to have the opportunity to join them at this exciting time in their development."

DiaMedica has granted 50,000 options to each of the new directors joining the board in March. The options have an exercise price of $1.00 and are set to expire five years from the date of grant.

About David G.P. Allan

Mr. Allan is the chairman and chief executive officer of YM BioSciences Inc., an oncology company that identifies, develops and commercializes differentiated products for patients worldwide. He has held the position of CEO since April 1998 and has been chairman of the board of directors since 1994.

In 1992, Mr. Allan founded the Knowledge-Based Industries Group at a Canadian investment banking firm. It was the first organization in Canada involved in financing, analyzing and creating strategic alliances for life sciences and information technology companies. He was executive director of this organization until 1998.

Mr. Allan is a former governor of The Toronto Stock Exchange and former member of the Awards Selection Committee for the Networks of Centres of Excellence in Canada.

About DiaMedica

DiaMedica is developing novel treatments for various stages of type 2 diabetes based on a mechanism involving nerve signaling to the liver. Rather than treating the symptoms, DiaMedica addresses the cause of type 2 diabetes with multiple points of intervention. Its lead product, DM-71, is currently in a phase II clinical trial. The Company has two other products in its clinical pipeline, DM-83 and DM-99.

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.

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