FORT SASKATCHEWAN, ALBERTA, CANADA - The Westaim Corporation ("Westaim") announced today that it has signed an agreement with the People's Republic of China for the production of coin blanks. The ten month contract is worth in excess of C$14 million

"This is a very important contract for Westaim's coinage division," says Dr. Michael Raymont, Executive Vice-President Operations. "This contract goes a long way in filling our 1998 coinage production capacity and will assist us in our pursuit of other international coinage contracts. We are optimistic about further business with China including technology transfer opportunities. Our ability to compete in this global market place is a tribute to the management and staff who operate our coinage business."

The agreement with China to produce nickel bonded steel blanks for the 1 Yuan coin will create an additional twenty-five jobs at the Fort Saskatchewan operation during the term of the contract. Currently the coinage division employs ninety people and manufactures coin blanks for Canada, the Philippines, Equador, El Salvador and Costa Rica.

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.


For further information:
Tony Johnston,
Senior Vice President,
Corporate Affairs,
(403) 234-3103