The purpose of this clinical research study is to learn whether a muraglitazar-metformin combination is at least as effective as a glimepiride-metformin combination to treat type 2 diabetics who are not sufficiently controlled with metformin alone. The safety of this treatment will also be studied.

Inclusion Criteria:

• Subject with Type 2 diabetes receiving treatment with at least 1,500 mg but not greater than 3000 mg of stable metformin therapy for at least 6 weeks prior to screening
• HbA1c >or = 7% and < or = 10%
• Fasting c-peptide > or = 1.0 umol
• Body Mass Index < or = 41 kg/m2
• Mean serum triglycerides < or = 600 mg/dl