FORT SASKATCHEWAN, ALBERTA - The Westaim Corporation announced today that for the three months ended September 30, 1997, the company posted revenues of $21.3 million and a net loss of $27.7 million, or 37 cents per share. The loss included a write-down of assets of $23.7 million relating to the sale of Westaim's cobalt powders and battery materials businesses in October 1997. The loss from continuing operations was $0.9 million or 1 cent per share.

During the same quarter in 1996, Westaim posted revenues of $24.5 million and a net loss of $5.3 million or 7 cents per share. The loss from continuing operations in the third quarter of 1996 was $2.4 million.

For the nine months ended September 30, 1997, Westaim recorded a net loss of $26.4 million, or 35 cents per share, on revenues of $62.8 million. Earnings from continuing operations were $5.3 million for the nine months, compared with a net loss from continuing operations of $3.1 million for the four months ended September 30, 1996. Westaim commenced operations effective June 1, 1996.

After taking into account $37.4 million in proceeds from the disposition of the cutting tools and battery materials businesses Westaim's cash balance stood at $246.7 million.

"I am pleased with the steps taken to streamline the company and with the advances made by Westaim's leading-edge technologies during the third quarter," said Kevin Jenkins, President and CEO. "Our electroluminescent (EL) flat panel display team achieved a stable blue phosphor -- a major technological breakthrough in the development of full-colour EL flat panel displays. We are also proceeding with full-scale commercialization of our surface engineered products with the planned construction of a coatings application plant. The plant is slated to commence production in the fall of 1998 and will initially provide anti-coking products and solutions to the ethylene industry."

About Westaim
Westaim has a portfolio of new business opportunities consisting of surface engineered products, electroluminescent flat panel displays and biomedical coatings. Westaim also manufactures aerospace materials, chemicals and coin blanks. Westaim is a TSE 300 company whose common shares are listed on The Toronto Stock Exchange, The Alberta Stock Exchange and the Montreal Exchange under the trading symbol "WED."

CONTACT:
Tony Johnston
Senior Vice President, Corporate Affairs
(403) 234-3103

Website: www.westaim.com

Statement of Earnings	Quarter Ended Sept. 30 1997	Quarter Ended Sept. 30 1996	Nine Months Ended Sept. 30 1997	Four Months Ended Sept. 30 1996
Revenue	$ 21,255	$ 24,495	$ 62,753	$ 33,280
Earnings (loss) from continuing operations	(875)	(2,357)	5,343	(3,059)
Net-loss	(27,664)	(5,321)	(26,368)	(7,695)
Earnings (loss) per share
Continuing   operations	(0.01)	(0.03)	0.07	(0.04)
Net loss	(0.37)	(0.07)	(0.35)	(0.10)
Average number of outstanding common shares (thousands)			75,026	75,002
Balance Sheet	Sept. 30 1997	Dec. 31 1996
Cash and short term investments	$ 209,266	$ 182,558
Current assets	324,723	332,941
Other assets	32,451	56,841
Current liabilities	42,881	49,354
Shareholders' equity	313,718	339,853