Diamyd Medical AB: Diamyd Collaborator Presents Positive Preclinical Data for a New Pain Product Using Diamyd's Nerve Targeting Drug Delivery System (NTDDS)

Diamyd Medical (NASDAQ:DMYDY) (STO:DIAMB) announced today that Sangamo BioSciences, Richmond, CA has presented data showing a statistically significant reduction in pain in a preclinical model of cancer pain using a product that combines Sangamo’s proprietary zinc finger protein technology with Diamyd’s Nerve Targeting Drug Delivery System (NTDDS). The data was presented at Neuroscience 2007, the 37th annual meeting of the Society for Neuroscience in San Diego, CA. The full press release can be found at Sangamo’s website: www.sangamo.com.