DiaMedica Inc.

DiaMedica Inc.

December 13, 2007 09:09 ET

DiaMedica Receives Regulatory Clearance for Phase II Human Study of DM-83

WINNIPEG, MANITOBA--(Marketwire - Dec. 13, 2007) - DiaMedica Inc. (TSX VENTURE:DMA), a drug discovery and development company focused on novel treatments for type 2 diabetes is pleased to announce that it has received regulatory clearance from the Office for Registration of Medicinal Products, Medicinal Devices and Biocidal Products, of Poland, to conduct a Phase II human study with DM-83 in type 2 diabetes patients.

The study will be a single-centre, single blind, cross-over trial, designed to measure meal associated insulin sensitivity (MIS). Multiple metabolic markers will be monitored in the 20 patient study, including post-meal glucose and post-meal insulin levels. The Company is employing a full-service clinical trials management organization with over 20 years of experience in developing metabolic drugs.

"Our recent Phase II study with DM-71 was designed to provide proof-of-concept for our mechanism in an HbA1c model, thus requiring patients to complete multiple weeks of treatment," stated Dr. Karl-Gunnar Hidinger, President of DiaMedica Inc. "Based on the finding that drugs working on our mechanism can successfully lower HbA1c levels, we believe proof-of-efficacy for our additional clinical stage drugs can be expedited using the more efficient meal tolerance model. This will allow DM-83 to progress quickly to a larger study measuring HbA1c".

The Company's decision to advance DM-83 into clinical studies was based upon preliminary pre-clinical results demonstrating the drug's ability to restore insulin sensitivity to pre-diabetic levels. This was further validated by the final results reported on December 6, 2007. First patient in for the study is expected in January 2008 and the Company expects to announce results of the study in Q2 2008.

About DiaMedica

DiaMedica is developing novel treatments for various stages of type 2 diabetes. The Company recently completed a phase II clinical trial with its lead product DM-71 which demonstrated the ability to reduce HbA1c levels in man. The Company has two other drugs 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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