HOUSTON, TEXAS, U.S.A. - Surface Engineered Products Corp. today launched its next generation anti-coking coating branded CoatAlloy^TM-1100. This new coating provides ethylene producers with anti-coking protection at operating temperatures of up to 1100°C. This is 40°C higher than previously attainable using the first-generation CoatAlloy^TM coating. The CoatAlloy^TM-1100 coating is thermally stable up to 1130°C.

“Our CoatAlloy^TM-1100 coating is the high-temperature anti-coking solution that owners of high-severity ethylene furnaces have been looking for,” said Ted Redmond, President, Surface Engineered Products. “This breakthrough product combines the anti-coking performance of our original CoatAlloy^TM coating with the higher upper temperature limit required to increase furnace ethylene yield and increase furnace feed rates, which adds up to greatly increased ethylene production.”

“The CoatAlloy^TM-1100 coating allows Surface Engineered Products to aggressively pursue the liquid feedstock market, which accounts for 65 per cent of the worldwide ethylene production,” said John Page, Vice-President Customer Service, Sales and Marketing, Surface Engineered Products. “Liquid feedstock furnaces typically reach 1100°C at the end of their runs and the CoatAlloy^TM-1100 coating allows the owners of these furnaces to achieve longer run lengths and increased feed rates.”

Ethylene plants can increase ethylene production by up to 20 per cent by coating their pyrolysis furnace tubes and fittings with CoatAlloy^TM-1100 coating. The exact benefit will vary from plant to plant but it is estimated that more than 50 per cent of the plants worldwide can generate 4 to 15 per cent more ethylene by using CoatAlloy^TM-1100 coating. The payback period for these plants is typically less than one year.

CoatAlloy^TM-1100 coating will be sold at a 25-per cent premium over the existing CoatAlloy^TM-1060 coatings. CoatAlloy^TM-1060 coating will continue to be sold to customers with low-to medium-severity furnaces with end-of-run temperatures that do not exceed 1060°C.

In addition to higher temperature operation, CoatAlloy^TM-1100 coating boasts an improved engineered surface that increases anti-coking and anti-carburization performance. Product performance is summarized in the table below:

Surface Engineered Products develops, manufactures and markets proprietary products and services which reduce operating costs and increase productivity in high-severity operating environments found in the petrochemical and other process industries. Its first line of coating products, sold under the brand CoatAlloyT^TM, targets the ethylene industry, which loses $2 billion in annual production due to the build-up of coke (carbon) in ethylene furnace tubes.

The Westaim Corporation is a technology incubator that launches exceptional technologies into the marketplace. In addition to Surface Engineered Products, 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. A TSE 300 company, Westaim’s common shares are listed on The Toronto Stock Exchange under the trading symbol WED.

-30-

*CoatAlloy is a trademark of Surface Engineered Products Corp.

For more information, contact:

Brandy Luedemann
Surface Engineered Products
(780) 431-4116
www.surfaceengineered.com
coatalloy@surfaceengineered.com

Tony Johnston
Senior Vice President, Corporate Affairs
(403) 234-3103
www.westaim.com
info@westaim.com