FORT SASKATCHEWAN, ALBERTA, CANADA - The Westaim Corporation and the University of Alberta Faculty of Medicine and Oral Health Sciences have won a 1997 University-Industry Synergy Research and Development Award for their collaborative work on the development of dressings for burn wounds.

The award was presented today in Vancouver at the Third Annual Symposium on University-Industry Research and Development Collaboration, which was co-sponsored by the Natural Sciences and Engineering Council of Canada and the Conference Board of Canada.

"This partnership was ideal for the development of a medical device because Westaim had the know-how to create a solution to a problem and the University had the expertise to refine and then test the solution in a clinical setting," said Dr. Robert Burrell, Director, Science and Technology with Westaim's Biomedical Group. "This project, which could potentially change the method of treatment in all burn centres in the world, was enhanced by the clear vision by both partners as to the importance of the technology."

Award winners were selected based on their ability to demonstrate an effective use of university and industry human resources, a lasting partnership between university and industry collaborators, and evidence of commercial benefits to Canadian industry, along with tangible rewards to the university partner.

"We are very excited by the results of ActicoatTM, particularly with regard to the data on large burn wound patients," said Dr. Edward E. Tredget, Scholar, Alberta Heritage Foundation for Medical Research and Director of the Firefighters' Burn Treatment Unit at the University of Alberta Hospital. "It shows a significant reduction in burn wound sepsis, kills more bacteria than conventional treatments and patients find dressing removal less painful."

The control of infection is a significant issue for health care providers. Infections contracted in North American health care facilities cost about $12 billion to treat and contribute to 90,000 deaths each year. The burn segment of the wound dressing market was chosen for the launch of initial products based on the ActicoatTM technology because the risk of infection is great due to large wound sizes.

In 1993 the University of Alberta Faculty of Medicine and Oral Health Sciences and Westaim began working to develop a burn wound treatment. In late 1996, Dr. Tredget's clinical studies involving 30 patients at the Firefighters' Burn Treatment Unit led to very positive results for Westaim's ActicoatTM Silver Coated Dressing. The results of the study were presented at the American Burn Association meeting in New York in March 1997, and were enough to convince Westaim to invest $5.4 million in a commercial coatings plant in Fort Saskatchewan, Alberta.

Conventional treatments of burn wounds, which involve creams and ointments, are expensive, labour intensive and uncomfortable for patients. Using conventional methods, the cream or ointment must be removed and the wound cleaned, irrigated and redressed more than once a day. Other treatments, such as silver nitrate, must be applied even more often.

Westaim's proprietary coating technology produces thin, soluble silver films that are flexible and abrasion resistant. When applied to wound dressings and other medical devices, these films release a constant concentration of silver for up to five days.

"By providing a controlled, sustained release of silver over the wound, the dressing required less frequent changes which reduces exposure to the environment," said Dr. Tredget. "It also helps avoid problems caused by creams and ointments such as staining and tissue maceration."

Westaim has assembled a Physicians Advisory Panel to assist in the development of future clinical studies as well as identifying other applications for Westaim's infection control technology. Members include Dr. Tredget, as well as other well-known specialists from leading North American burn treatment centres including Johns Hopkins Bayview Medical Centre and the University of Chicago Burn Centre.

ActicoatTM Silver Coated Dressing has been accepted as a medical device in the United States and in Canada. Westaim plans to conduct further clinical trials and expects to launch ActicoatTM as a commercial product early in 1998.

The University of Alberta Faculty of Medicine and Oral Health Sciences, an Academic Health Centre located in the Capital Health Authority Hospitals, is a leading medical research organization in Canada. The faculty provides the finest health care service, education and research, and enhances the community by attracting a critical mass of researchers and medical specialists. It has a $198 million impact on Edmonton and Alberta, and creates thousands of high tech jobs, which contribute to Edmonton being recognized as one of Canada's "smart cities."

Westaim has a portfolio of new business opportunities consisting of biomedical coatings, surface engineered products and electroluminescent flat panel displays. 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."

For more information contact:

Tony Johnston
Senior Vice President, Corporate Affairs
The Westaim Corporation
(403) 234-3103
Website: www.westaim.com

Bert Murray
Public Relations Director
Faculty of Medicine and Oral Health Sciences
University of Alberta
(403) 492-8314