DiaMedica Publishes Manuscript Summarizing Preclinical Data on DM199 Treatment for Type 2 Diabetes

MINNEAPOLIS, MINNESOTA--(Marketwired - Aug. 7, 2014) - DiaMedica Inc. (TSX VENTURE:DMA), a clinical stage biopharmaceutical company primarily focused on the development of novel, first-in-class therapies for metabolic disorders, kidney dysfunction and orphan diseases, today announced the publication of its manuscript entitled, "Preclinical Characterization of Recombinant Human Tissue Kallikrein-1 as a Novel Treatment for Type 2 Diabetes Mellitus," in PLOS ONE, an international, peer-reviewed, open access, scientific journal. The manuscript can be accessed at http://dx.plos.org/10.1371/journal.pone.0103981.

The manuscript expands upon previously released data on the Company's lead product, DM199, in type 2 diabetes mellitus animal models, and the beneficial effects of this novel therapeutic candidate on several disease parameters.

"We believe this peer-reviewed publication provides further validation for DM199 and its potential to treat patients suffering from type 2 diabetes and its associated complications," said Rick Pauls, DiaMedica's President & CEO.

The Company currently is conducting a Phase 2 study of DM199 in type 2 diabetes mellitus patients and expects to receive results from the trial later this fall. The Company plans to conduct additional studies on DM199's mechanism of action, as well as additional toxicological and pharmacokinetic studies. The results from these additional studies would be beneficial for advancing clinical development of the product for various indications, in addition to type 2 diabetes.

About DiaMedica

DiaMedica Inc. is a publicly traded (TSX VENTURE:DMA) clinical stage biopharmaceutical company primarily focused on the development of novel, first-in-class therapies for metabolic disorders, kidney dysfunction and orphan diseases. DiaMedica's lead clinical stage product, DM199, recombinant human tissue kallikrein-1 protein ("rhKLK-1"), is a novel, first-in-class, therapeutic for the treatment of diabetes mellitus and associated complications. DiaMedica also is developing DM204, a monoclonal antibody program, for glucose control and cardiovascular complications in type 2 diabetes and a companion diagnostic in vitro assay, DMDx, utilizing the detection of tissue kallikrein-1 protein ("KLK-1") as a potential biomarker in human urine to identify diabetic kidney disease patients who are most likely to respond to a therapeutic regimen that includes DM199.

The Company is listed on the TSX Venture Exchange in Canada under the trading symbol 'DMA'.

FORWARD-LOOKING STATEMENTS

The statements made in this press release that are not historical facts contain forward-looking information that involves risk and uncertainties. All statements, other than statements of historical facts, which address DiaMedica's expectations, including the intended use of the net proceeds of the Offering, should be considered forward-looking statements. Such statements are based on management's exercise of business judgment as well as assumptions made by and information currently available to management. When used in this document, the words "may", "will", "anticipate", "believe", "estimate", "expect", "intend" and words of similar import, are intended to identify any forward-looking statements. You should not place undue reliance on these forward-looking statements. These statements reflect a current view of future events and are subject to certain risks and uncertainties as contained in DiaMedica's filings with Canadian securities regulatory authorities. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results could differ materially from those anticipated in these forward-looking statements. DiaMedica undertakes no obligation, and does not intend, to update, revise or otherwise publicly release any revisions to these forward-looking statements to reflect events or circumstances after the date hereof, or to reflect the occurrence of any unanticipated events, unless required by law. Although management believes that expectations are based on reasonable assumptions, no assurance can be given that these expectations will materialize.

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