 The READ-2 Study is a phase 2 randomized, multi-center clinical trial to be conducted under an investigator-initiated investigational new drug IND. The study aims to enroll 126 patients, who will be randomized into 3 different groups. The primary objectives of the READ-2 Study are: a to obtain data on the bioactivity and dose interval effects of intravitreal ranibizumab RBZ alone, as well as in combination with laser photocoagulation, on retinal thickness and visual acuity in subjects with DME; and b to obtain additional safety and bioactivity data to aid in the design of a phase 3 clinical trial to evaluate ranibizumab as a therapeutic option for patients with DME The study consists of a 2-week screening period Days -14 to 0, a 6-month treatment period with a primary time endpoint, and a 18-month follow-up and treatment period with secondary time endpoints. Consented subjects will enter the 14-day screening period to determine eligibility. Serum chemistry and hematology testing, urinalysis, pregnancy testing, and macular thickness measurements based on optical coherence tomography OCT will be performed. Screening will also include VA, ophthalmic examination and fluorescein angiography FA entry criteria. 