DiaMedica Inc. (TSX VENTURE:DMA), a drug discovery and development company
focused on novel treatments for Type 2 diabetes has been selected as a winner of
the 2009 annual Canada's Top 10(TM) Competition (www.topcanadiancompanies.ca),
an award the Company was honoured with in 2008. Winners will gather on October
7th at the Fairmont Chateau Laurier Hotel in Ottawa to hone their presentation
skills, meet local and regional investors, and prepare themselves for the first
leg of the 2009 Investment Forum series.


DiaMedica Inc. is a biopharmaceutical company developing novel treatments for
Type 2 diabetes based on a newly discovered mechanism for which the Company has
been issued two U.S. patents. Rather than treating the symptoms, DiaMedica
addresses the cause of Type 2 diabetes which the Company believes is the result
of a dysfunctional nerve signal to the liver. The Company's two lead products,
DM-71 and DM-83, have completed successful Phase IIa clinical trials and will
undergo further testing. DiaMedica's third compound, DM-99, is currently being
tested in a Phase IIa clinical trial with results of the study to be announced
later this year.


"DiaMedica is honored to have been selected for this prestigious award for the
second year in a row," stated DiaMedica's President and CEO, Rick Pauls.
"Independent validation from a jury of experienced venture capitalists who
posses a strong track record of success in the life science industry is highly
valuable. We are proud to be included among such a respected, high-profile group
of companies. This award recognizes our achieved milestones and future prospects
as a top tier biopharmaceutical company and we are looking forward to an
exciting year in 2009".


Winners are chosen by an independent expert panel of Canadian and U.S. venture
capitalists. Originally developed to promote the 10 most promising life science
companies from across Canada to Canadian and international investors and
partners, the competition now showcases Canada's life sciences, cleantech and
technology sectors. Working in partnership with Canadian Consulates in Boston,
New York City, San Diego and San Francisco, winning companies will participate
in targeted investment forums in each city, providing them with an opportunity
to meet with investors who have expressed an active interest in financing these
companies. Since its inception in 1999, competition alumni have secured more
than $522M in venture capital financing.


Canada's Top 10(TM) is organized by OCRI (Ottawa Centre for Research and
Innovation) and presented by Borden Ladner Gervais LLP. The winners include a
wide variety of companies from the life science, cleantech and technology
sectors.


"Diamedica has been chosen as a Canada's Top 10 winner two years in a row. This
is a testament to the quality of the company and its technology. An independent
jury of VC's with expertise in life sciences makes these decisions. Diamedica
would not be a two time winner if these investors did not feel that the
technology and the company as a whole showed great market potential. We look
forward to working with the management team to continue to help them achieve
success", said Michelle Scarborough, Vice President, Investment and
Commercialization, OCRI.


About DiaMedica

DiaMedica is a biotechnology company developing novel treatments for various
stages of Type 2 diabetes with three clinical stage products. The Company's lead
product, DM-71, demonstrated the ability to reduce HbA1c (glucose) levels and
weight in a Phase IIa human trial. DM-83 showed efficacy in reducing insulin
levels in a Phase IIa meal tolerance test. DiaMedica's third clinical stage
product is in a Phase IIa trial in the second half of 2008. DiaMedica trades
under the symbol "DMA" on the TSX Venture Exchange. For additional information
please visit the Company's website at 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,
"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.