CALGARY, ALBERTA, CANADA - The Westaim Corporation announced today that for the year ended December 31, 1999, it recorded a net loss of $23.9 million, or 32 cents per share, on revenues of $115.2 million. In 1998, the Company recorded a net loss of $15.5 million, or 21 cents per share, on revenues of $85.1 million. The company’s higher net loss reflects planned increased investment in its technology businesses as part of their commercialization strategies.

For the three months ended December 31, 1999, the company posted revenues of $34.2 million and a net loss of $7.7 million, or 10 cents per share. For the same period last year, Westaim had revenues of $23.6 million and a net loss of $8.8 million, or 12 cents per share.

At December 31, 1999, Westaim had $146.7 million in cash and short-term investments, and no debt.

“Each of our technology subsidiaries made significant progress in 1999, and is positioned for continued growth in 2000,” said Kevin Jenkins, President and CEO of Westaim. “With two of our technology subsidiaries entering their second year in the marketplace, we will identify new technology investments that fit our criteria. We will be looking for scalable opportunities that are in the fastest growing sectors of the economy and that will benefit from Westaim’s corporate leadership.”

The Westaim Corporation is a technology incubator that launches 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, and iFire Technology Inc., which has developed a revolutionary low-cost flat panel display. A TSE 300 company, Westaim’s common shares are listed on The Toronto Stock Exchange under the trading symbol WED.

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CONTACT: Tony Johnston
Senior Vice President, Corporate Affairs
The Westaim Corporation
(403) 234-3103
Website: www.westaim.com
e-mail: info@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.