CALGARY, ALBERTA, CANADA - The Westaim Corporation announced today that it has sold its Chemicals Division to Marsulex Inc. for $18 million.

Westaim’s Chemical Division consists of two Alberta-based chemical manufacturers and distributors, United Chemicals Company, a producer of water treatment chemicals, and Thio-Pet Chemicals Ltd., a manufacturer of industrial chemicals. Together the two companies have 23 employees.

UCC produces water treatment chemicals at facilities in Calgary, Alberta and Saskatoon, Saskatchewan and has customers in the industrial, commercial and municipal sectors. Thio-Pet’s manufacturing plant in Fort Saskatchewan, Alberta is adjacent to Marsulex’s existing Fort Saskatchewan manufacturing facility and produces hydrogen sulphide for use in Canada, the United States and Europe, and carbon disulphide, which is marketed to chemical companies in Canada and the United States.

Marsulex is a global provider of technology-based environmental compliance solutions. It provides full-service outsourcing of environmental compliance activities including the ownership and operation of compliance assets and the guaranteed removal of by-products. Marsulex trades on the Toronto Stock Exchange under the symbol MLX.

The Westaim Corporation is a technology accelerator 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 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.

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For more information:
Tony Johnston
Senior Vice President
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.