FORT SASKATCHEWAN, ALBERTA, CANADA - The Westaim Corporation announced today that for the year ended December 31, 1997, earnings from continuing operations were $2.9 million
(4 cents per share) on revenues of $92.2 million. Since Westaim commenced operations June 1, 1996, the company only has seven months of comparative results. For the seven months ended December 31, 1996, the loss from continuing operations was $10.2 million (14 cents per share) on revenues of $55.8 million.

For the year ended December 31, 1997, Westaim reported a net loss of $30.5 million (41 cents per share). The loss included a write-down of assets and a loss from discontinued operations totaling $33.5 million relating to the sale of Westaim's cobalt powders and battery materials businesses in October 1997. The net loss for the seven months ended December 31, 1996 was $19.3 million
(26 cents per share).

For the three months ended December 31, 1997, Westaim reported a net loss of $4.2 million (6 cents per share) compared to a net loss of $11.6 million (16 cents per share) in the fourth quarter of 1996.

At December 31, 1997, Westaim's cash position stood at $240.1 million.

"I am very pleased with the excellent progress made during 1997 in our three technology divisions as well as the record financial performance of our three operating businesses -- aerospace products, coinage and chemicals," said Westaim President and CEO Kevin Jenkins.

"Westaim streamlined its operations in 1997 in order to focus on its high-potential biomedical coatings, surface engineered products and EL flat panel display technologies -- all of which have multiple product applications, sizable markets and the ability to command high margins. Our Westaim Biomedical and Westaim Surfaced Engineered Products divisions are expected to launch their first products into the market this year, and our Westaim Display Technologies division is pressing forward in its development of larger, desk top monitor-sized, full-color flat panel screens. With the appointment of new business leaders for each of the three units, we expect a further acceleration of commercialization activities."

About Westaim

Westaim's new business opportunities consist 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".

CONTACT:

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