FORT SASKATCHEWAN, ALBERTA, CANADA - The Westaim Corporation announced today that for the three months ended September 30, 1998, the company posted revenues of $18.5 million and a net loss of $5.8 million, or 8 cents per share.

During the same quarter in 1997, Westaim posted revenues of $21.3 million and a net loss of $27.7 million or 37 cents per share. The 1997 figures included a loss from discontinued operations of $26.8 million.

For the nine months ended September 30, 1998, Westaim recorded revenues of $61.5 million and a net loss of $6.7 million, or 9 cents per share. For the previous nine-month period ended September 30, 1997, the company posted revenues of $62.8 million and a net loss of $26.4 million, or 35 cents per share.

At September 30, 1998, Westaim’s cash balance stood at $212.8 million.

During the period Westaim officially launched its second technology business into the marketplace. Surface Engineered Products’ CoatAlloy^TM anti-coking product for the ethylene industry announced its first commercial order in September. In order to meet expected customer demand, Surface Engineered Products also announced in September that it would accelerate 1999 expansion plans for its new surface alloy application plant in Edmonton, Alberta. The plant will be ready for production in December 1998.

Westaim’s industrial businesses—coin blank, aerospace and chemical operations—continue to provide a steady cash flow to help fund the company’s commercial development of its three high potential technology divisions: Westaim Biomedical, Surface Engineered Products and Westaim Advanced Display Technologies.

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”.