EXETER, NEW HAMPSHIRE, U.S.A.
TOKYO, JAPAN - The Westaim Corporation’s subsidiary, Westaim Biomedical Corp., today announced an exclusive agreement for the supply and distribution in Japan of Acticoat® antimicrobial burn dressings with Century Medical Inc., a wholly owned subsidiary of ITOCHU Corporation, one of Japan’s leading general trading companies.

“Century Medical is an excellent strategic partner for Westaim Biomedical,” said Scott H. Gillis, President of Westaim Biomedical. “As one of the largest medical device distributors in Japan, Century Medical already has a distribution agreement for Integra Artificial Skin – a product that is often used in conjunction with Acticoat dressings. This means that Century Medical already has relationships with many of our target customers.”

Century Medical Inc. will distribute Acticoat® antimicrobial burn dressings for use in the treatment of burns, grafts and donor sites, and surgical wounds related to the use of Integra Artificial Skin. The agreement does not include distribution of Acticoat® dressings for the treatment of chronic wounds.

“We are very excited to have entered into a long-term distribution agreement with Westaim Biomedical,” said Mr. Hiroshi Matsumoto, President & CEO of Century Medical Inc. “We are confident that Westaim's Acticoat dressing will be a successful product in the Japanese marketplace.”

As part of the agreement, Century Medical is responsible for securing the import license and regulatory approvals required for Acticoat® antimicrobial barriers from the Japanese government. The requisite approvals will likely take 12 to 24 months to obtain.

Westaim Biomedical’s Acticoat® barrier dressings use a proprietary nanocrystalline coating of pure silver that deliver antimicrobial activity considerably faster than other forms of silver, providing the optimal healing environment. Acticoat® dressings have demonstrated effectiveness against more than 150 pathogens, including antibiotic-resistant superbugs such as Methicillin-resistant Staphylococcus aureus (MRSA) and Vancomycin-resistant Enterococcus (VRE).

In addition, laboratory tests have shown that this unique delivery system has lowered proteolytic enzymes in chronic wounds. Many physicians believe that the reduction in proteolytic enzymes is a key factor in moving non-healing wounds into a progressing healing state.

Westaim Biomedical’s Acticoat® Burn Dressing is being used to treat burn wounds, graft sites and donor sites in more than 100 burn centers in North America. In its first full year on the market, Acticoat® Burn Dressing generated sales of US$3.2 million.

About Westaim Biomedical Corp.
Westaim Biomedical Corp. develops medical devices based on its Acticoat® antimicrobial technology, a patented method of applying a thin layer of antimicrobial silver to base materials. The first commercial product based on this technology is the Acticoat® Burn Dressing, launched into the burn wound market in 1998. In 2000, Westaim Biomedical introduced Acticoat 7® into the specialized chronic wound market. Future applications based on Acticoat® antimicrobial technology include catheters, orthopaedic implants and other surgical devices.

About The Westaim Corporation
The Westaim Corporation is a technology accelerator that launches exceptional technologies into the marketplace. In addition to its investment in Westaim Biomedical, Westaim’s technology investments include iFire Technology Inc., which has developed a revolutionary low-cost flat panel display and Savvion, a leader in e-business management software. Westaim’s common shares are listed on Nasdaq under the symbol WEDX and on the Toronto Stock Exchange under the trading symbol WED.

About Century Medical Inc.
Century Medical Inc. is a wholly owned subsidiary of ITOCHU Corporation, one of Japan’s leading general trading companies, with more than 700 subsidiary and associated companies worldwide. Century Medical is one of the largest independent broad line vertically integrated medical device distributors in Japan. Century Medical Inc. has product partnerships with many U.S. and global medical device manufacturers including Smith & Nephew ENT, Integra LifeSciences, Wright Medical Technology and Ballard Medical Products. In fiscal year 1998, the company had revenues of US$ 91 million. ITOCHU Corporation had revenues of US$ 114 billion over the same period.

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For more information contact:
Tony Johnston, Senior Vice President, Corporate Affairs
The Westaim Corporation
(403) 234-3103
info@westaim.com
www.westaim.com
www.westaimbiomedical.com

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