CALGARY, ALBERTA, CANADA – The Westaim Corporation today announced it has sold its Ambeon division and its Neomet Ltd. subsidiary to Sulzer Metco for $35 million.

“While Ambeon is a great business for Westaim, we believe this transaction unlocks the best value for our shareholders,” said Barry Heck. “Westaim will use the proceeds to increase our focus, attention and resources on our two high-potential businesses – iFire Technology and NUCRYST Pharmaceuticals.”

Westaim Ambeon produces a specialized range of composite and nickel-based thermal spray powders and honeycomb for gas path sealing systems in turbine engines as well as conductive filler material for use in electromagnetic interference products.

Sulzer Metco (www.sulzermetco.com) is a global leader in surface coating solutions and services. The division offers a broad range of thermal spray, thin film and other advanced surface technology equipment, integrated systems and materials, as well as specialized coating and surface enhancement services and manufactured components for selected industries. A global customer support service completes its portfolio. Sulzer Metco provides a global manufacturing, distribution and service network and caters to aerospace, power generation, automotive, as well as other strategic growth industries. Sulzer Metco employs about 1500 professionals worldwide. Net sales for the first half year 2003 totaled CHF 193 million (sales for year 2002: CHF 465 million).

The Westaim Corporation’s technology investments include: NUCRYST Pharmaceuticals, which researches, develops and commercializes wound care 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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This news release may contain forward-looking statements, including those concerning opportunities to employ proceeds in Westaim’s Nucryst and iFire businesses. 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 the risk factors set forth in our Form 40-F as filed with the U.S. Securities and Exchange Commission. 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.

For more information contact:


The Westaim Corporation
David Wills
Investor Relations
Tel: 416 504 8464

info@westaim.com
www.westaim.com

Sulzer Metco
Markus Niederhäuser
Tel: +41 (0)52 262 20 30
Fax: +41 (0)52 262 00 25
markus.niederhaeuser@sulzer.com
www.sulzer.com