CALGARY, ALBERTA, CANADA – The Westaim Corporation announced today that for the second quarter ended June, 2003, it recorded a net loss of $8.1 million, or 10 cents per share on revenue of $9.7 million. In the same quarter last year, the company recorded a net loss of $25.6 million, or 33 cents per share, on revenue of $11.6 million. The 2002 results include a net loss from discontinued operations of $14.2 million related to the closing of Westaim’s non-core assets.

For the six months ended June 30, 2003, the company posted revenues of $26.3 million and a net loss of $9.0 million, or 12 cents per share. For the same period last year, Westaim had revenues of $23.7 million and a net loss of $34.0 million, or 44 cents per share.

At June 30, 2003, Westaim had $84.5 million in cash and short-term investments, and no debt.

“Westaim has experienced significant progress over the first half of the year with both iFire Technology and NUCRYST Pharmaceuticals,” said Barry M. Heck, President & CEO of Westaim. “Both subsidiaries have made significant achievements in 2003. iFire’s Color by Blue technology breakthrough is resulting in capital and production cost reductions. NUCRYST Pharmaceuticals is moving ahead with the human clinical trials necessary to gain FDA approval for a new class of eczema drug based on its nanocrystalline technology and sales from its medical device business continued to grow by approximately 50 percent year over year.”

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
(416) 504-8464
info@westaim.com
www.westaim.com