CALGARY, ALBERTA, CANADA - The Westaim Corporation announced today that for the second quarter of 1999 it recorded a net loss of $5.5 million, or seven cents per share, on revenues of $27.5 million. For the same quarter last year, the Company recorded a net loss of $0.3 million on revenues of $20.8 million.

Two of Westaim's technology businesses, Westaim Biomedical and Surface Engineered Products, posted increases in revenue over the previous quarter. Sales for Westaim Biomedical generated $1.2 million in revenue for the second quarter, up 35% from the previous quarter ended March 31, 1999. Surface Engineered Products recorded $1.5 million revenue for the second quarter, a 314% increase over the first quarter.

For the six months ended June 30, 1999, the company posted revenues of $50.4 million and a net loss of $10.9 million, or 14 cents per share. For the same period last year, Westaim had revenues of $43 million and a net loss of $0.8 million, or one cent per share. The company's higher net loss reflects the planned increased investment in its technology businesses as part of their commercialization strategies.

At June 30, 1999, Westaim had $165 million in cash and short-term investments, and no debt.

"We have generated considerable momentum in the first half of 1999 with significant commercial progress from Westaim Biomedical and Surface Engineered Products as well as meaningful further advancement of our flat screen technology from Westaim Advanced Display Technologies," said Kevin Jenkins, President and CEO of Westaim. "We will continue our aggressive commercialization strategies in the second half of the year and are well on track to meet all of our stated milestones."

The Westaim Corporation specializes in launching high-potential technologies into the marketplace. Its technology subsidiaries include: Westaim Biomedical Corp., which has developed an infection control technology for use in the treatment of wounds; Surface Engineered Products Corp., which has developed surface engineering technologies and materials for severe applications in the petrochemical industry; and Westaim Advanced Display Technologies Inc., which is developing a revolutionary low-cost flat panel display. Westaim also operates three industrial businesses which produce aerospace materials, coin blanks and chemicals. 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
e-mail: tjohnsto@westaim.com
Website: www.westaim.com
e-mail: info@westaim.com