The Sanford Project to Present Results of DiaMedica's DM-199 for Type 1 Diabetes at the IDF World Diabetes Congress Conference

WINNIPEG, MANITOBA--(Marketwire - Sept. 27, 2011) - DiaMedica (TSX VENTURE:DMA) today announces that Dr. Alexi Savinov of The Sanford Project has been invited to present a poster based on its late-breaking abstract, detailing results of pre-clinical studies of DM-199 for the treatment of Type 1 diabetes. The material will be presented December 4-9, 2011 at the 21^st biennial World Diabetes Congress organized by the International Diabetes Federation (IDF) in Dubai, United Arab Emirates.

The poster is entitled "Novel DM-199 compound provides potent protection against diabetes development in non-obese diabetic (NOD) mouse model by modulating autoimmunity."

The Sanford Project and DiaMedica previously announced high-level results that DM-199 administration to NOD mice, the gold standard animal model for Type 1 diabetes, prevented the autoimmune attack and thereby the destruction of insulin-producing beta cells in the pancreas which causes Type 1 diabetes. The DM-199 program has now demonstrated efficacy in three critical areas of Type 1 diabetes treatment; immune therapy, beta cell therapy and glucose control.

The research was a collaborative effort between DiaMedica and The Sanford Project, a research initiative at Sanford Health which has the goal to research and cure Type 1 diabetes. "We look forward to sharing greater details of the extremely promising results of DM-199 treatment for Type 1 diabetes at the IDF World Diabetes Congress," stated Dr. Alexei Savinov, MD, 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 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.

DiaMedica is also developing DM-204, a monoclonal antibody that inhibits the enzyme glycogen synthase kinase 3 beta (GSK3B). In pre-clinical studies, DM-204 significantly improved glucose control and decreased blood pressure.

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

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