FORT SASKATCHEWAN, ALBERTA, CANADA - The Westaim Corporation announced today that for the first three months ended March 31, 1998, the company posted revenues of $22.2 million and a net loss of $544,000 or 1 cent per share.

During the first quarter of 1997, Westaim posted revenues of $19.0 million and a net loss of $3.4 million or 5 cents per share. 1997 figures included a loss from discontinued operations of $3.1 million.
At March 31, 1998, Westaim’s cash position stood at $225.4 million.

Significant events during the period included the appointment of business unit leaders for Westaim’s three technology divisions—Westaim Biomedical, Westaim Surface Engineered Products and Advanced Display Technologies; the commercial launch of Westaim Biomedical’s Acticoat® antimicrobial barrier dressing for burn wounds; and the selection of an Edmonton site for Westaim Surface Engineered Products’ new commercial-scale coating application plant—slated to begin operation in the fall of 1998 in preparation for the launch of CoatAlloy TM anti-coking products for the ethylene industry.

During the first quarter, Westaim declared and distributed to shareholders a dividend-in-kind consisting of one common share of ThermicEdge Corporation for each 100 Westaim shares held. The dividend-in-kind had a set value of $0.20 per Westaim share.

About Westaim

The Westaim Corporation’s technology businesses consist of Westaim Biomedical, Westaim Surface Engineered Products and Westaim Advanced Display Technologies. Its industrial businesses produce coin blanks, aerospace materials and chemical products. A TSE 300 company, Westaim’s 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
(403) 234-3103

website: www.westaim.com