DiaMedica Founder Invited to Speak at International Scientific Conference

WINNIPEG, MANITOBA, Jul 30 (MARKET WIRE) --
DiaMedica Inc. (TSX VENTURE: DMA), a clinical stage biopharmaceutical
company developing novel treatments for various stages of type 2
diabetes, is pleased to announce that Dr. Wayne Lautt, co-founder of
DiaMedica, will be speaking today at the International Union of
Physiological Sciences 36th World Congress, a prestigious meeting held
every four years, in Kyoto Japan.

Dr. Lautt's presentation, entitled "Meal-induced insulin sensitization:
role in the pathophysiology and prevention of diabetes" will describe a
nerve-signal mechanism that DiaMedica believes is a fundamental cause of
type 2 diabetes.

"This presentation affords the opportunity to describe a mechanism that
the Company believes is strongly connected to insulin resistance, the
precursor to type 2 diabetes, and to present data that DiaMedica's
approach fully reverses insulin resistance in a diabetic animal model"
stated Dr. Lautt. "Furthermore, data will be presented demonstrating that
restoring this mechanism re-establishes the ability of the body to store
more nutrient energy in muscles, where it can be burned off, rather than
stored as fat, which leads to obesity."

About IUPS

The International Union of Physiological Sciences (IUPS) is an
organization which brings together physiologists from across the globe.
The unifying objective is to increase mankind's understanding of the
functions of cells, tissues, organs and organ systems. It is an adhering
member of the Council for International Organizations of Medical Sciences
and participates in the work of several Scientific Committees of the
International Council for Science. The IUPS publishes a journal,
Physiology in cooperation with the American Physiological Society. The
articles are up-to-date reviews of modern physiology in order to maintain
a current knowledge of all fields of physiology.

About DiaMedica

DiaMedica is developing novel treatments for type 2 diabetes based on a
'nerve signal' mechanism for which the Company has been issued two U.S.
patents. DiaMedica completed a successful phase II trial with its lead
product, DM-71, which demonstrated the ability to reduce HbA1c (blood
sugar) levels and weight in humans. DiaMedica also completed a successful
phase II trial with its second compound, DM-83, designed to measure
changes in insulin and / or glucose. The success of this clinical trial
was highly significant as DiaMedica believes it validated the novel
'nerve signal' mechanism that would designate the Company's drugs as
first-in-class.

The Company's third drug in development, DM-99, recently completed a
phase II clinical trial. Patients receiving DM-99 in Period 1 of this
cross-over study showed a decrease in baseline adjusted peak blood
glucose concentration of 19% (p equals 0.077) versus those receiving
placebo as well as a decrease in incremental glucose Area Under the Curve
(AUC) 0-240 minutes of 31% (p equals 0.030) versus those receiving
placebo. DM-199, a recombinant version of DM-99, has been created with
the expectation that it will a long-acting version of DM-99. DiaMedica
was recently awarded a contribution of up to $492,000 from the National
Research Council of Canada Industrial Research Assistance Program
(NRC-IRAP) to fund the development of DM-199. DiaMedica has been
recognized as one of the Top Ten(TM) Life Science companies in Canada for
the past two years by the Ottawa Centre for Research and Innovation.

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, "forward-looking
statements"). These forward-looking statements relate to, among other
things, our objectives, goals, targets, strategies, intentions, plans,
beliefs, estimates and outlook, including, without limitation, our
anticipated future operating results, 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.

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:
DiaMedica's early stage of development, lack of product revenues and
history of operating losses, 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, supply of raw
materials, income tax matters, management of growth, partnerships for
development and commercialization of technology, effects of insurers'
willingness to pay for products, system failures, dependence on key
personnel, foreign currency risk, risks related to regulatory matters and
risks related to intellectual property and other risks detailed from time
to time in DiaMedica's filings with Canadian securities regulatory
authorities, as well as DiaMedica's ability to anticipate and manage the
risks associated with the foregoing. 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
final long-form prospectus dated March 12, 2007. 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.

These risks and uncertainties should be considered carefully and
prospective investors 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.

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

Contacts:
DiaMedica Inc.
Kevin Richardson, Ph.D.
204-478-5605
204-453-3745 (FAX)
krichardson@diamedica.com
www.diamedica.com

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