In general exercise is good for diabetics, but some precautions for hypoglycemia need to be taken. All diabetics being treated with glucose lowering medication should have something sweet just in case and most important is to give adequate time after exercising to check that glucose levels are in the right range. Muscle is one of the most important tissues in regard to glucose uptake which is why it is good for diabetics to exercise.
Additionally on the longer term, exercise will change insulin requirements for type I diabetics.
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