CALGARY, ALBERTA, CANADA - The Westaim Corporation announced today that for the first quarter ended March 31, 2000, it recorded net income of $2.4 million, or three cents per share, on revenues of $37.9 million. In the same quarter last year, the company recorded a net loss of $5.4 million, or seven cents per share, on revenues of $22.9 million. The company’s increased earnings are due to a $10.5 million gain on sale of a minority interest of its subsidiary iFire Technology Inc. to Japan-based TDK Corporation. The company’s loss prior to the one-time gain reflects planned increased investment in its technology businesses as part of their commercialization strategies.

At March 31, 2000, Westaim had $139.5 million in cash and short-term investments, and no debt.

“We made significant progress in the first quarter of 2000, highlighted by iFire Technology Inc. entering into a small graphics licensing deal with TDK Corporation of Japan,” said Kevin Jenkins, President and CEO of Westaim. “In addition, we purchased 22 per cent of TDI, a very promising e-business management software company. We now have technology investments in three of the most important and fastest growing sectors of the economy – biotechnology, semi conductor/electronics and e-business management software.”

The Westaim Corporation is a technology incubator that launches exceptional technologies into the marketplace. Its technology investments include Westaim Biomedical Corp., which has developed an infection control technology for use in the treatment of wounds, 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. Westaim's common shares are listed on Nasdaq under the symbol WEDX and 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


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.