FORT SASKATCHEWAN, ALBERTA, CANADA - The Westaim Corporation ("Westaim") today announced its financial results for the seven months ended December 31, 1996. Westaim recorded a net loss of $19.3 million or $0.26 per share. The results for the seven months include an $8.2 million after tax ($14.9 million before tax) writedown of nickel and cobalt inventories. As the Company commenced operations effective June 1, 1996, there are no comparative figures for prior periods.

The Company's revenue for the seven months ended December 31, 1996 was $72.8 million. Earnings before interest, income taxes, depreciation and writedown of assets (EBITDA) for the seven months were negative $13.4 million.

For the three months ended December 31, 1996, the company recorded a net loss of $11.6 million or $0.16 per share. Revenue for the period was $28.0 million and EBITDA was negative $8.0 million. The results for the last quarter include a $3.6 million after tax ($6.5 million before tax) writedown of nickel and cobalt inventories. Westaim ended 1996 with a working capital of $284.3 million and its net cash position was $182.6 million.

Kevin J. Jenkins, President and Chief Executive Officer, noted that the companies financial results in the fourth quarter were impacted by the decline in commodity nickel and cobalt prices. He stated that the price of nickel had significantly increased since December 31, 1996 and Westaim intends to reduce its surplus nickel position in 1997.

"We made important strides in the development of a number of our technologies in 1996 and look forward to further progress toward commercialization in 1997," Jenkins said.

The Westaim Corporation produces and markets products for global applications based on its advanced industrial materials expertise. The Company has a portfolio of development stage new business opportunities which include: coking-resistant coatings, electroluminescent flat panel displays, biomedical coatings, electronic ceramics and structural ceramics. Westaim also produces and markets fine cobalt powders, battery materials, turbine engine materials, industrial chemicals and coinage blanks.

Westaim 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