DMA Diamedica Therapeutics

DiaMedica Inc. (TSX VENTURE: DMA), a drug discovery and development company focused on novel treatments for Type 2 diabetes today announced that, effective immediately, Dr. Stephen J. Waters has been appointed interim Executive Vice President and Chief Scientific Officer, replacing Dr. Wayne Lautt who has resigned from that position.

Dr. Waters is an experienced scientist and pharmaceutical industry executive with more than 24 years of active leadership and involvement in drug development. His primary industry focus has centered on new drug development programs and he has built and managed multifunctional scientific departments while demonstrating a successful record of investigational new drug (IND) and new drug application (NDA) preparations and submissions to the FDA.

"Dr. Waters will be a critical asset in providing exemplary scientific and strategic leadership in progressing DiaMedica's technology." said Reggie Bowerman, president and CEO of DiaMedica. "He brings the necessary experience required to successfully develop our innovative agents to their full potential."

"I believe that DiaMedica possess very intriguing science and therapeutic approaches and I am looking forward to leveraging my experience in order to guide the Company through the upcoming stages of development," said Dr. Waters.

Pursuant to this appointment, DiaMedica has granted 75,000 stock options at an exercise price of $1.00 per share to Dr. Stephen Waters.

"The Board and management of DiaMedica join me in expressing our gratitude to Dr. Wayne Lautt for his tireless efforts and scientific guidance. As a Professor of Pharmacology and Therapeutics at the University of Manitoba, he had discovered a key mechanism of insulin resistance that led to the founding of DiaMedica." stated Mr. Bowerman. "Wayne indicated the time was right, given the current development status of DiaMedica compounds, to step down as chief scientific officer and to return full time to the creative basic research that can result in breakthrough discoveries."

About Dr. Stephen Waters

Dr. Stephen Waters has successfully managed the development of numerous drugs entering clinical trials through the IND process, and has played major roles in seven drug approvals (NDAs). He previously worked at MGI PHARMA, before it was acquired for US $3.9 billion in 2008 by Eisai Co., LTD. Prior to leaving Eisai/MGI PHARMA to independently consult in the pharmaceutical industry, Dr. Waters served in several executive positions, including; Vice President, Science and Technology where he was the corporate scientific leader for Business Development and Licensing operations and Vice President, Translational Research and Development, where he directed multidisciplinary staff involved in IND-enabling and early clinical studies of development compounds. Prior to joining MGI PHARMA, he served in several research and development leadership positions at Ohmeda Pharmaceutical Products Division before it was acquired by Baxter Healthcare Corporation. Dr. Waters earned his M.S. in Toxicology and his Ph.D. in Pharmacology and Toxicology from the University of Arizona, Tucson, AZ.

About DiaMedica

DiaMedica is developing novel treatments for type 2 diabetes based on a newly discovered 'nerve reflex' 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 glucose. The success of this clinical trial was highly significant as DiaMedica believes it validates the novel 'nerve reflex' mechanism that would designate the Company's drugs as first-in-class. The Company's third drug in clinical development, DM-99, will complete a phase II trial in March 2009. Preclinical results from Vanderbilt University have shown that DM-99 is able to cause tissue to increase its uptake of sugar from the blood by over 40% (p less than 0.001) during the first 60 minutes of treatment. 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) Email: krichardson@diamedica.com