New product lines will target US$1-billion chronic wound market

EXETER, NEW HAMPSHIRE, U.S.A. - Westaim Biomedical Corp. announced today it has received U.S. Food and Drug Administration (FDA) approval for two new dressings that will be used in the treatment of chronic wounds. Westaim Biomedical has received 510K clearance for Acticoat® Composite Dressing and Acticoat® Foam Dressing.

"Receiving 510K approval for these new dressings is the first step in bringing our proprietary technology to the huge chronic wound market," said Scott H. Gillis, President of Westaim Biomedical. "The growing demand for antimicrobial products combined with Acticoat dressing's clinically proven superiority over other technologies will allow us to rapidly enter the chronic wound market and establish a significant market share."

Westaim Biomedical's Acticoat® dressings use a proprietary nanocrystalline coating of pure silver that delivers 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 so-called superbugs.

Acticoat® Composite Dressing delivers fast-acting, long-lasting, three-day infection control and is designed so that it can be cut, molded and applied to difficult areas such as feet. It is initially available in a four-inch by four-inch size and will be used by health care professionals in the treatment of diabetic foot ulcers, pressure ulcers, venous stasis ulcers, acute and surgical wounds.

Acticoat® Foam Dressing is a multi-layer dressing with absorptive capabilities that make it ideal for moderate to heavily draining wounds, such as venous stasis ulcers and pressure sores. It is designed to facilitate the passage of antimicrobial silver through the dressing while maintaining a moist environment and controlling exudate. It will initially be available in a four-inch by five-inch size. The Acticoat® Foam Dressing has seven days of sustained antimicrobial activity, based on in vitro testing against common pathogens, making it ideal for use under compression dressings that are usually changed every seven days.

Each year in the United States alone, chronic wounds affect more than four million people, with more than one million people requiring weekly care from a doctor. Chronic wounds are often severe, persistent and prone to infection, which can lead to pain, an inability to stand or walk, and in the worst cases, amputation of limbs. As the population ages, this problem is expected to intensify.

Westaim Biomedical's strategy is to establish strategic marketing partnerships with medical product companies that have specialized sales forces and marketing expertise in the chronic wound market. The new Acticoat® dressings are being tested by select chronic wound care physicians and will be commercially available by July 2000.

Westaim Biomedical's first product line, Acticoat® Burn Dressing, are 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.

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. Future applications based on Acticoat® antimicrobial technology include specialized chronic wound dressings, catheters, orthopaedic implants and other surgical devices.

The Westaim Corporation is a technology incubator that launches exceptional technologies into the marketplace. In addition to Westaim Biomedical Corp., its technology investments include iFire Technology Inc., which has developed a revolutionary low-cost flat panel display and Technology Deployment International, Inc., a leader in e-business management software. A TSE 300 company, Westaim's common shares are listed on The Toronto Stock Exchange under the trading symbol WED.


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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

This news release may contain forward-looking statements. These statements are based on current expectations that are subject to risks and uncertainties, and the Company can give no assurance that these expectations are correct. Various factors could cause actual results to differ materially from those projected in such statements, including financial considerations and those predicting the timing and market acceptance of future products. The Company disclaims any intention or obligations to revise forward-looking statements whether as a result of new information, future developments or otherwise. All forward-looking statements are expressly qualified in their entirety by this Cautionary Statement.