CALGARY, ALBERTA, CANADA – The Westaim Corporation announced today that for the third quarter ended September 30, 2003, it recorded a net loss of $7.8 million, or 10 cents per share on revenue of $10.5 million. In the same quarter last year, the company recorded a net loss of $6.3 million, or eight cents per share, on revenues of $11.7 million.

For the nine months ended September 30, 2003, the company posted revenues of $36.8 million and a net loss of $16.8 million, or 22 cents per share. For the same period last year, Westaim had revenues of $35.4 million and a net loss of $40.3 million, or 52 cents per share. The 2002 results include a net loss from discontinued operations of $16.5 million related to the closing of Westaim’s non-core assets.

At September 30, 2003, Westaim had $76.9 million in cash and short-term investments, and no debt.

“Westaim has experienced considerable momentum in 2003 from both iFire Technology and NUCRYST Pharmaceuticals as well as increased interest from investors,” said Barry Heck, President & CEO of Westaim. “Both subsidiaries are progressing very well and remain on track. iFire continues to make significant progress in scaling up to 34-inch screen sizes and in pursuing commercial partnerships while NUCRYST is advancing toward Phase 2 human efficacy studies for FDA approval of a new class of eczema drug based on its proprietary nanocrystalline technology. We remain confident in our strategy and committed to our planned commercialization efforts.”

iFire update:
iFire Technology continues to make good progress with its 34-inch prototype display in collaboration with Dai Nippon Printing (DNP) of Japan. In addition to technology collaboration, iFire and DNP are discussing a manufacturing partnership. The focus of the discussions is on minimizing development costs and moving to full-scale commercial production as quickly as possible.

As part of its due diligence, iFire recently commissioned an independent study to compare its manufacturing model against both LCD and PDP in a Generation 6 manufacturing facility. iFire hired a highly respected engineering firm that engineers and designs Generation 6 LCD production facilities in Asia. This detailed study has confirmed that iFire will have a 50 percent cost advantage in both capital and module costs versus LCD in a mature manufacturing environment.

NUCRYST update:
NUCRYST Pharmaceuticals announced third quarter total revenue of $3.0 million, an increase of 58 percent over the $1.9 million posted in the same period last year. Total revenue results reflect a record performance in the current quarter for product-based revenue of $2.8 million, an increase of 47 percent over the same quarter in 2002.

Year to date, total revenue for NUCRYST is $12.8 million, compared to $5.8 million during the first nine months of 2002. The results for the first three quarters of 2003 include the receipt of a milestone payment of $4.6 million in the first quarter of 2003. The milestone payment was received from NUCRYST’s corporate partner, Smith & Nephew, for achievement of additional regulatory approvals in Europe.

NUCRYST is currently conducting clinical trials of a novel dermatology cream containing its proprietary formulation of silver Rx nanocrystals. NUCRYST is developing this new drug (NPI 32101) for the treatment of atopic dermatitis, or eczema, and other skin conditions. The company believes that its nanocrystalline technology with dual anti-inflammatory and antimicrobial properties addresses both the inflammation associated with atopic dermatitis and the secondary infections that often accompany the disease.

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.

View Quarterly Report

-30-
For more information contact:
David Wills
Investor Relations
(416) 504-8464

info@westaim.com
www.westaim.com