FORT SASKATCHEWAN, ALBERTA, CANADA - The Westaim Corporation announced today that it has created a separate company to pursue the commercialization of its Electronic Materials and MicroWear technologies and related businesses. Westaim intends to distribute the shares of this company, ThermicEdge orporation, to Westaim shareholders through a dividend-in-kind once final regulatory approval has been obtained.

"The ThermicEdge businesses have significant commercial potential which can best be exploited in a smaller company with a single focus rather than in Westaim which has a number of priorities," said Kevin Jenkins, President and Chief Executive Officer of Westaim.

ThermicEdge's President and Chief Executive Officer is Michael McKibbin, formerly executive vice president of New Enterprises for Westaim. Frank King, a member of the Westaim Board of Directors, has agreed to serve as the new company's non-executive Chairman.

"ThermicEdge will start out as a debt-free public company with more than $15 million in cash, proven technologies and established customer applications," said ThermicEdge's McKibbin. "In addition, we have a talented employee group that will provide the foundation for the development of additional commercialization opportunities."

ThermicEdge develops and sells specialized electronic materials used to package high-performance electronic devices, including semiconductors. ThermicEdge's electronic materials product line is primarily based on the manufacture of metallized aluminum nitride components that help remove heat from electronic devices. It is also a supplier of solder spheres used to provide electrical interconnections between electronic devices and their underlying circuits. Current customers include Hughes Aircraft Company, Motorola, Inc., power semiconductor suppliers
International Rectifier Corp. and ABB Semiconductors AG, and communications equipment provider Nortel (Northern Telecom Limited).

ThermicEdge, through its MicroWear subsidiary, has also developed microwave sintering technology which can be substituted for conventional thermal processing in the manufacture of cutting tool and wear resistant industrial parts using ceramic and cemented carbide materials.

ThermicEdge has today filed a preliminary prospectus to qualify the ThermicEdge shares for trading upon declaration and payment of the dividend-in-kind by Westaim.

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 please contact:

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

Michael McKibbin
President and CEO
ThermicEdge Corporation
(403) 992-5304