Company maintains strong balance sheet, increases cash position to $138.4 million

CALGARY, ALBERTA, CANADA - The Westaim Corporation announced today that for the year ended December 31, 2001, it recorded a net loss of $67.5 million, or 87 cents per share, on revenues of $68.9 million. The net loss includes a previously announced one-time, non-cash write down of $34.7 million for the carrying values of assets in its Coinage and Westaim Coating Solutions divisions. In the previous year, the company recorded a net loss of $14.6 million, or 19 cents per share, on revenues of $127.8 million.

The divisional loss from continuing operations for 2001 was $32.7 million, compared to a loss of $30.8 million in 2000. This loss primarily reflects the planned level of investment in Westaim’s technology divisions.

For the three months ended December 31, 2001, the company posted a loss from continuing operations of $53.8 million, or 69 cents per share, on revenues of $14.7 million. The loss includes the $34.7 million write down. For the same period last year, Westaim had a loss from continuing operations of $5.9 million, or 8 cents per share, on revenues of $34.8 million.

At December 31, 2001, Westaim had $138.4 million in cash and equivalents, compared to $124.5 million in 2000. The company has no debt.

“Even though it was a tough and unpredictable year, Westaim’s disciplined approach allowed us to make good progress in our technology investments and maintain a strong balance sheet,” said Kevin Jenkins, President and CEO of Westaim. “While last year’s accomplishments were significant, we must do even more in 2002.”

The Westaim Corporation is a technology accelerator that launches exceptional technologies into the marketplace. Its technology investments include NUCRYST Pharmaceuticals, which researches, develops and commercializes medical devices and pharmaceutical products based on its nanocrystalline silver technology, and iFire Technology, which has developed a revolutionary low-cost flat panel display. Westaim’s common shares are listed on Nasdaq under the symbol WEDX and on The Toronto Stock Exchange under the symbol WED.

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For more information contact:
Tony Johnston, Senior Vice President
The Westaim Corporation
(403) 234-3103
info@westaim.com
www.westaim.com


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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.

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