FORT SASKATCHEWAN, ALBERTA, CANADA - The Westaim Corporation ("Westaim") today announced the creation of a Physician Advisory Council consisting of leading burn specialists from across North America to consult on the continuing development of Westaim's ActicoatTM Silver Coated Dressing.

Each year hospital-acquired infections cost the health industry in North America $12 billion and cause 90,000 deaths. Westaim has developed a silver-based infection control technology that can be used in medical devices such as wound dressings, catheters, wound closures and orthopaedic implants. Westaim has chosen the burn segment of the wound dressing market as the initial area to demonstrate clinical efficacy. Westaim's ActicoatTM burn dressing will be the first application of the silver-based infection control coating.

The ActicoatTM dressing received acceptance as a medical device from the Food and Drug Administration in the United States and the Health Protection Branch in Canada in 1996. A 1996 clinical study at the Firefighters' Burn Treatment Unit at the University of Alberta Hospitals demonstrated that the ActicoatTM burn dressing significantly reduced infection-causing bacteria as compared to another leading burn treatment. Further clinical studies, primarily in the United States, will be conducted to demonstrate comparative cost effectiveness in the second half of 1997. Westaim expects commercial sales of its ActicoatTM dressing in the second quarter of 1998.

The following leading burn specialists have agreed to participate on a Physician Advisory Council to assist in the further development of the ActicoatTM dressing:

Dr. John F. Burke
Boston, Massachusetts

Dr. William W. MonafoSt.Louis,Missouri

Dr. William CioffiChief of Trauma and Burns
Rhode Island Hospital
Providence, Rhode Island

Dr. Andrew Munster
Director, Baltimore Regional Burn Center
Johns Hopkins Bayview Medical Center
Baltimore, Maryland

Dr. David Heimbach
Director of Burn Center
Professor of Surgery
Harbourview Medical Center
Seattle, Washington

Dr. E.E. Tredget
Director
Firefighters' Burn Treatment Unit
University of Alberta Hospitals
Edmonton, Alberta

Dr. Raphael Lee
Department of Plastic and Reconstructive Surgery
University of Chicago Burn Center
Chicago, Illinois

The Physician Advisory Council will assist in the development of future clinical studies as well as identifying other applications for Westaim's infection control technology.

Westaim has a portfolio of development stage new business opportunities, which include:
coking-resistant coatings, electroluminescent flat panel displays and biomedical coatings. In addition, Westaim manufactures a wide range of other products based on its advanced industrial materials expertise.

Westaim's common shares are listed on The Alberta Stock Exchange, The Toronto Stock Exchange and the Montreal Exchange under the trading symbol WED.


*ActicoatTM is a registered trademark of The Westaim Corporation.

For further information please contact:

Tony Johnston
Senior Vice President, Corporate Affairs
(403) 234-3103
info@westaim.com