CALGARY, ALBERTA, CANADA - The Westaim Corporation announced today that for the third quarter of 1999 it recorded a net loss of $5.3 million, or seven cents per share, on revenues of $30.6 million. For the same quarter last year, the Company recorded a net loss of $5.8 million on revenues of $18.5 million.

Westaim's Surface Engineered Products subsidiary had an increase in revenue of 53% over the previous quarter with total sales of $2.3 million for the period. The company's Westaim Biomedical subsidiary increased its sales quarter over quarter by 21%, with revenues of $1.4 million. Revenue for the first nine months of 1999 was $4.3 million for Surface Engineered Products and $3.5 million for Westaim Biomedical.

"We are seeing strong revenue growth from two of our technology subsidiaries -- Surface Engineered Products and Westaim Biomedical -- and from our three industrial operations," said Kevin Jenkins, President and CEO of Westaim. "Sales for Westaim Biomedical and Surface Engineered Products are increasing as they continue to gain market acceptance for their technologies. Westaim Advanced Display Technologies is also making good progress in both partnership discussions and technical development of its revolutionary flat panel display technology."

All three of the Westaim's industrial divisions, coinage, chemicals and aerospace, posted increases in sales over the same period last year. Collectively, the three operations had sales of $26.8 million and earnings of $5.3 million for the quarter, compared with sales of $18.3 million and earnings of $4.4 million for the same period last year.

For the nine months ended September 30, 1999, the company posted revenues of $81 million and a net loss of $16.2 million, or 21 cents per share. For the same period last year, Westaim had revenues of $61.5 million and a net loss of $6.7 million, or nine cents per share. The company's higher net loss reflects the planned increased investment in its technology businesses as part of their commercialization strategies.

At September 30, 1999, Westaim had $161.4 million in cash and short-term investments, and no debt.

The Westaim Corporation specializes in launching exceptional 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 Incorporated, 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".


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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