CALGARY, ALBERTA, CANADA – The Westaim Corporation announced today that for the first quarter ended March 31, 2003, it recorded a net loss of $984,000 or one cent per share, on revenues of $16.7 million. In the same quarter last year, the Company recorded a net loss of $8.4 million, or 11 cents per share, on revenues of $12.0 million. The improved revenues and operating results are primarily due to a $4.6 million milestone payment received by NUCRYST Pharmaceuticals in the quarter.

At March 31, 2003, Westaim had $95.7 million in cash and short-term investments, and no debt.

“Westaim has gained considerable momentum during the first quarter,” said Barry M. Heck, President and CEO of Westaim. “iFire has started development of a mid-30-inch display in conjunction with its partners, Sanyo and Dai Nippon Printing, and NUCRYST Pharmaceuticals is conducting human clinical safety trials for a new dermatology cream with its proprietary Rx nanocrystals for the treatment of eczema.”

Today Westaim is holding its Annual Meeting of Shareholders in Toronto, Canada at 10 a.m. (EDT). The meeting and accompanying investor briefing, which will provide an update on the Company’s businesses, will be webcast live and is available through the company website www.westaim.com. An archive of the webcast will be posted following the meeting.

The Westaim Corporation’s 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 trading symbol WED.

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For more information contact:

David Wills, Investor Relations
The Westaim Corporation
(416) 504-8464

info@westaim.com
www.westaim.com