DiaMedica's DM-204 for Type 2 Diabetes Significantly Lowers Blood Glucose, Blood Pressure and Cholesterol Levels

WINNIPEG, MANITOBA--(Marketwire - Dec. 1, 2011) - DiaMedica Inc. (TSX VENTURE:DMA) is pleased to announce the presentation of new compelling Type 2 diabetes data from studies of DM-204 at the Windhover Therapeutic Area Partnership Conference in Boston, MA, USA.

In an independently conducted study, chronic administration of DM-204 prevented disease progression within an in vivo Type 2 diabetes model. Treatment with DM-204 resulted in statistically significant lower mean differences compared to untreated animals after 21 days for the following parameters:

• 2.6% (p=0.0103) lower HbA1c levels at day 21
• 70% (p=0.0058) lower difference in fasting blood glucose levels
• 25 mm/Hg (p=0.0004) lower difference in systolic blood pressure levels
• >20% (p=0.0156) improvement in total cholesterol levels

Managing each of these parameters, HbA1c, blood glucose, blood pressure and cholesterol, is important in the treatment of patients suffering from Type 2 diabetes. Reduction in HbA1c is the critical endpoint measurement in receiving regulatory approval for a Type 2 diabetes medication. Additionally, approximately 70% of Type 2 diabetics are prescribed antihypertensive medication(s) to control blood pressure and prevent heart disease and stroke. The antihypertensive and cholesterol lowering ability of DM-204 may significantly reduce the need for such medication(s) and furthermore protect Type 2 diabetics from heart disease and stroke complications. Administration of DM-204 was well-tolerated and outperformed marketed Type 2 diabetes drugs sitagliptin (Januvia®) and exenatide (Byetta®).

"These results are very encouraging and provide a strong foundation with which to move DM-204 forward," said Dr. John Amatruda, DiaMedica's Scientific Advisory Board member and former Senior Vice President and Franchise Head for Diabetes and Obesity at Merck Research Laboratories.

"DM-204 has the opportunity to fundamentally change the treatment regimen for Type 2 diabetes patients with hypertension and high cholesterol. DM-204 could potentially become the single long-acting treatment by virtue of being a monoclonal antibody therapy"," stated Dr. Mark Williams, Vice President, of Research at DiaMedica. "The chronic in vivo model data shows DM-204's ability to prevent disease progression of Type 2 diabetes and increased blood pressure."

Summary results will be presented at the 2011 Windhover's Therapeutic Area Partnership Conference at 3pm December 1^st, 2011 at the Westin Copley Place, Boston, MA with the full results to be published and presented in 2012.

About DiaMedica

DiaMedica is a biopharmaceutical company that has developed novel therapeutic compounds aimed to improve the lives of patients with diabetes and other major, medically-unmet diseases. DiaMedica's lead compound, DM-199, represents a novel approach to treating Type 1 and Type 2 diabetes by demonstrating significant results against three major aspects of these diseases: 1) halting the autoimmune attack on beta cells; 2) proliferating insulin producing beta cells; and 3) improving glucose control.

Treatment with DiaMedica's monoclonal antibody, DM-204, has demonstrated significant improvement in glucose control, blood pressure and cholesterol levels in in vivo models of Type 2 diabetes.

The company is listed on the TSX Venture Exchange under the trading symbol 'DMA'.

Caution Regarding Forward-Looking Information

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, 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 the Company'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. The Company 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. Although management believes that expectations are based on reasonable assumptions, no assurance can be given that these expectations will materialize.