Diamyd Medical and Protein Sciences deepen commitment to develop new treatment for diabetes

Diamyd Medical (NASDAQ OMX First North, Ticker: DMYD B) and Protein Sciences
Corporation announced today that Protein Sciences has broadened its commitment
to diabetes and become a strategic and significant shareholder in Diamyd
Medical, its long-time partner in this domain. Protein Sciences will manufacture
product for upcoming late stage clinical trials for type 1 diabetes involving
Diamyd Medical’s recombinant GAD (glutamic acid decarboxylase) protein made
using Protein Sciences’ proprietary Baculovirus Expression Vector System (BEVS)
technology. The diabetes vaccine Diamyd® (GAD formulated with alum) has been
evaluated as a monotherapy for type 1 diabetes in a Phase III study and data
suggests that Diamyd® may be a critical component of combination therapies that
pairs the tolerance-inducing GAD antigen with anti-inflammatory agents for the
treatment and prevention of type 1 diabetes. This is being evaluated in ongoing
and upcoming Phase II studies.
Under the Agreement Diamyd Medical is placing an order for cGMP production of
recombinant GAD protein for which Protein Sciences receives a cash payment and
400,000 new series B shares in Diamyd Medical corresponding to a 2.0% ownership
in Diamyd Medical. The ownership stake will make Protein Sciences a strategic
and one of the largest shareholders in Diamyd Medical. 100,000 of the new shares
will be issued upon entering the Agreement and the remainder at completion of
production. The shares will be issued under the Annual General Meeting’s
authorization of the Board.

“Diamyd Medical has been a longstanding partner of Protein Sciences, and we
believe their approach to treating diabetes holds great promise,” said Dan
Adams, Executive Chairman of Protein Sciences. “The GAD product is an excellent
demonstration of the versatility of our BEVS platform that can be used to make a
wide variety of products, including our revolutionary Flublok® influenza
vaccine.”

“It is strategically important for the development of Diamyd® that the
relationship between manufacturing and commercialization is deepened and we
welcome Protein Sciences to become one of our largest shareholders,” said Anders
Essen-Möller, Chairman of Diamyd Medical. “We believe their technology is the
best for making recombinant proteins such as GAD. FDA approval of Flublok only
makes the platform more valuable to partners such as us, as the significant
regulatory hurdles that typically face new technologies have already been
cleared.”

About Diamyd®
Diamyd® is an antigen based therapy (ABT) under development for the treatment
and prevention of autoimmune diabetes. Diamyd® has been used in trials totaling
more than one thousand patients with an excellent safety profile. Diamyd® has
shown an overall 16% efficacy (p=0.1) versus placebo regarding preservation of
the patients’ endogenous insulin secretion in a European Phase III trial and is
currently being further developed in combination regimens with other therapeutic
compounds. Diamyd® is easy to administer in any clinical setting.

About Diamyd Medical
Diamyd Medical is dedicated to fight type 1 diabetes and to work towards a cure
for the disease. Diamyd Medical’s current projects include development of
combination regimens for arresting the successive destruction of insulin
producing beta cells using the Company’s GAD65-based diabetes vaccine Diamyd®,
such as Diamyd® + Vitamin D with or without an anti-inflammatory compound; and
Diamyd® + GABA, for which Diamyd Medical licenses exclusive intellectual rights
from the University of California in Los Angeles (UCLA). Diamyd Medical has
further acquired 46% of the stem cell company Cellaviva AB that is establishing
a Swedish commercial bank for private family saving of umbilical cord blood and
other sources of stem cells. Stem cells are required for Personalized
Regenerative Medicine (PRM), for example to restore beta cell mass in diabetes
patients where autoimmunity has been arrested.

Remium Nordic AB is the Company’s Certified Adviser.

About Protein Sciences
Protein Sciences is a vaccine development and protein production company that is
dedicated to saving lives and improving health through the creation of
innovative vaccines and biopharmaceuticals. Flublok, the world’s first
recombinant protein-based vaccine for the prevention of seasonal influenza
disease, was approved by FDA in January 2013. Flublok is the only flu vaccine
made in a 100% egg-free system using modern cell culture technology, making it
unnecessary to use an infectious influenza virus or antibiotics in
manufacturing. Flublok is highly purified and does not contain any preservatives
(e.g., thimerosal, a mercury derivative), egg proteins, gelatin or latex. In
addition, Flublok is triple the strength of conventional influenza vaccines.
Flublok is a perfect copy of the virus coat and is not subject to the egg
-adapted mutations associated with low vaccine effectiveness (see Skowronski et
al. (2014) PLOS ONE 9(3), e92153). Protein Sciences has filed for FDA approval
of Flublok for ages 50 and above and expects to receive approval in time for the
2014/15 influenza season.

Healthcare professionals in the U.S. can order Flublok by contacting FFF
Enterprises at 800-843-7477 or ASD Specialty Healthcare at 866-281-4FLU.

Learn more at www.proteinsciences.com and www.flublok.com.

Flublok Safety Information

Flublok is approved for people 18-49 years old to prevent influenza disease. The
most common side effect from Flublok is pain at the site of injection. Other
side effects may occur and include fatigue, headache and muscle aches.

Flublok should not be administered to anyone with a severe allergic reaction
(e.g., anaphylaxis) to any vaccine component.

Tell the doctor if you have ever experienced Guillain-Barré syndrome (severe
muscle weakness) within 6 weeks of receipt of a previous dose of influenza
vaccine. If you notice any other problems or symptoms following vaccination,
please contact your healthcare professional immediately. Vaccination with
Flublok may not protect all individuals.

Please see the complete Package Insert available at www.flublok.com or call 203
-686-0800 for more information.
For further information, please contact:
Anders Essen-Möller, Chairman Diamyd Medical AB
Phone: +46 70 55 10 679. E-mail: anders.essen-moller@diamyd.com
Diamyd Medical AB (publ)
Kungsgatan 29, SE-111 56 Stockholm, Sweden. Phone: +46 8 661 00 26, Fax: +46 8
661 63 68
E-mail: info@diamyd.com. Reg. no.: 556242-3797. Website: www.diamyd.com.