WINNIPEG, Manitoba – March 26, 2007 – DiaMedica Inc. (the “Company” or “DiaMedica”) (TSX-V:DMA), a clinical stage biotechnology company developing novel treatments for various stages of type 2 diabetes, is pleased to announce that subject to regulatory approval, David G.P. Allan has joined its board of directors. Mr. Allan is well known in the life sciences and investment banking industries and has considerable experience in the public markets.

“We are very pleased to welcome Mr. Allan to our board of directors”, commented Dr. Karl-Gunnar Hidinger, President of DiaMedica. “He is a highly respected member of the life sciences community and we are confident that his extensive business expertise in the investment banking and biotech industries will be invaluable as the Company executes its strategic plan.”

DiaMedica’s shares recently began trading on the TSX Venture Exchange under the stock symbol “DMA”. The Company’s lead product, DM-71, is currently in the final stages of enrollment for its phase IIa clinical trial. Earlier this month Mr. Peter de Visser of DeVisser Gray was also appointed to the board of directors.

“DiaMedica has enormous future potential and I am honoured to have been appointed to the Company’s board of directors”, said Mr. Allan. “I am pleased to have the opportunity to join them at this exciting time in their development.”

DiaMedica has granted 50,000 options to each of the new directors joining the board in March. The options have an exercise price of $1.00 and are set to expire five years from the date of grant.

About David G.P. Allan

Mr. Allan is the chairman and chief executive officer of YM BioSciences Inc., an oncology company that identifies, develops and commercializes differentiated products for patients worldwide. He has held the position of CEO since April 1998 and has been chairman of the board of directors since 1994.

In 1992, Mr. Allan founded the Knowledge-Based Industries Group at a Canadian investment banking firm. It was the first organization in Canada involved in financing, analyzing and creating strategic alliances for life sciences and information technology companies. He was executive director of this organization until 1998.