FORT SASKATCHEWAN, ALBERTA, CANADA - The Westaim Corporation (''Westaim'') today announced that for the three months ended June 30, 1997, the company recorded net earnings of $4.7 million, or 7 cents per share, on revenue of $33.9 million. The second-quarter results included a one-time gain of $5.8 million realized on the sale of 3,500 tonnes of surplus nickel inventory.

For the six months ended June 30, 1997, Westaim recorded net earnings of $1.3 million, or 2 cents per share, on revenue of $61.8 million. As the company commenced operations effective June 1, 1996, there are no comparative figures for prior periods.

Westaim has a portfolio of development stage new business opportunities, which include coking-resistant coatings, electroluminiscent 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 please contact

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