CALGARY, ALBERTA, CANADA – Westaim Corporation announced today that for the year ended December 31, 2002, it recorded a net loss of $49.8 million, or 64 cents per share compared to a net loss of $67.5 million, or 87 cents per share, in the previous year. Included in the results were losses from discontinued operations of $19.7 million and $59.0 million for 2002 and 2001 respectively. Revenues from continuing operations were $49.1 million in 2002 compared to $50.3 million in 2001.

For the three months ended December 31, 2002, the Company posted a net loss of $9.4 million, or 12 cents per share, on revenues of $13.7 million compared to a net loss of $53.7 million, or 69 cents per share, on revenues of $12.5 million in the previous year. For the quarter, losses from discontinued operations were $3.1 million in 2002 and $44.8 million in 2001.

The divisional loss from continuing operations for 2002 was $15.7 million, compared to a loss of
$9.5 million in 2001. This loss primarily reflects the planned level of investment towards research and development in Westaim’s technology divisions.

At December 31, 2002, Westaim had $102.9 million in cash and equivalents, compared to $138.4 million in 2001. The Company has no debt.

“We made significant progress with both NUCRYST and iFire in 2002,” said Barry M. Heck, President & CEO of Westaim. “In 2003 we will build on last year’s accomplishments as NUCRYST enters its first human trials for a drug based on its nanocrystalline technology and iFire begins to work on product-sized, mid-30-inch flat panel displays.”

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:
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.