DiaMedica Inc. Announces Dr. Michael Giuffre to Join Board of Directors

WINNIPEG, MANITOBA--(Marketwire - August 10, 2010) - DiaMedica Inc. (TSX VENTURE: DMA) today announced the appointment of Dr. Michael Giuffre to the company’s Board of Directors.

Dr. Giuffre is a Clinical Professor of Cardiac Sciences and Pediatrics at the University of Calgary. Dr Giuffre is currently a member on the board’s of the Alberta Medical Association and Unicef Canada. He is a past representative to the board of the Calgary Health Region and is an active participant in the biotechnology business sector.

“Dr. Giuffre’s clinical and business experience, particularly with his extensive cardiovascular background, will add additional depth to our Board,” stated Mr. Rick Pauls, President and CEO of DiaMedica.

“I am pleased to be joining the Board of Directors of DiaMedica at such a progressive time in its history,” stated Dr. Giuffre. “DiaMedica has very promising technology and I look forward to leveraging my experience as the company prepares for exciting and ambitious milestones.”

About Dr. Michael Giuffre

As a Clinical Professor of Cardiac Sciences and Pediatrics at the University of Calgary, Dr Giuffre maintains a portfolio of clinical practice, cardiovascular research, and university teaching. He maintains on-going involvement in both health care administration, and in the biotechnology business sector. Dr Giuffre is Past President of the Calgary and Area Physicians Association (CAPA) and a past representative to the board of the Calgary Health Region. Dr Giuffre holds a BSc in cellular and microbial biology, a PhD candidacy in molecular virology, an MD and an MBA. His Canadian Royal College board certified specialties include Pediatrics, Pediatric Cardiology and a subspecialty in Pediatric Electrophysiology.

As a biotechnology consultant, Dr. Giuffre has been involved with RedSky Inc. (acquired by Research in Motion), MDMI, and MedMira Inc. He is currently on the boards of IC2E Inc and FoodChek Inc. He serves on the Medical Advisory Board of the SADS Foundation and on the boards of Unicef Canada and the Alberta Medical Association. He is also an MD-MP contact for the Canadian Medical Association.

Dr Giuffre has recently received a Certified and Registered Appointment by the American Academy of Cardiology, “Distinguished Fellow of the American Academy of Cardiology,” and in 2005 was awarded “Physician of the Year” by the Calgary Medical Society.

About DiaMedica

DiaMedica is a biopharmaceutical company focused on developing novel treatments for diabetes and neurological disorders. The Company’s type 2 diabetes program is based on a critical liver nerve signaling mechanism involved in enhancing insulin sensitivity after meal consumption. Two of DiaMedica’s products, DM-71 and DM-99, have previously demonstrated human efficacy in lowering blood sugar levels in people diagnosed with type 2 diabetes based on this novel nerve signaling mechanism.

DiaMedica has expanded its DM-199 recombinant protein program into neurological and autoimmune disorders. The Company has demonstrated that DM-99, the naturally occurring form of DM-199, confers neural protection (protects brain cells) and triggers neural stem cell proliferation (creates brain cells) for the treatment of numerous neurological disorders including Alzheimer’s disease. DiaMedica is listed on the TSX Venture Exchange under the trading symbol “DMA”. For further information please visit www.diamedica.com.

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, the “forward-looking statements”). These forward-looking statements relate to, among other things, DiaMedica’s objectives, goals, targets, strategies, intentions, plans, beliefs, estimates and outlook, 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. Specifically, this press release contains forward-looking statements regarding matters such as, but not limited to, the prospective Offering and the proceeds from the Offering, the anticipated use of proceeds from the Offering, regulatory approval of the Offering, and our other plans, estimates and expectations, including the completion of our proposed acquisition of Sanomune Inc. 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: uncertainties and risks related to our ability to complete the Offering, the availability of financing, risks and uncertainties relating to the anticipated use of proceeds, changes in debt and equity markets, 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, the cost and supply of raw materials, management of growth, effects of insurers’ willingness to pay for products, risks related to regulatory matters and risks related to intellectual property matters.

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 2008 annual information form. 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. Such forward-looking statements are based on a number of estimates and assumptions which may prove to be incorrect, including, but not limited to, assumptions regarding the availability of financing for research and development companies, general business and economic conditions, and DiaMedica’s ability to complete its proposed acquisition of Sanomune Inc. These risks and uncertainties should be considered carefully and investors and others 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. Additional risk factors, factors which could cause actual results to differ materially from expectations, and assumptions relating specifically to our proposed acquisition of Sanomune Inc. may be found in our press release dated February 18, 2010.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.