CALGARY, April 13 /PRNewswire-FirstCall/ - The Westaim Corporation today announced that the Company has received a NASDAQ Staff Deficiency Letter dated April 10, 2007 advising that for 30 consecutive business days the bid price of the Company's common stock listed on the NASDAQ under the symbol WEDX has closed below the minimum US $1.00 per share requirement for continued inclusion on NASDAQ under NASDAQ Marketplace Rule 4450(a)(5).

As a result, and in accordance with NASDAQ Marketplace Rule 4450(e)(2), the Company has been given 180 calendar days, or until October 8, 2007, to regain compliance. If at any time before October 8, 2007 the bid price of Westaim's common stock closes at or above US $1.00 per share for a minimum of 10 consecutive business days, NASDAQ will notify Westaim that compliance has been achieved. In certain circumstances, NASDAQ may require the bid price of Westaim's common stock to close at or above US $1.00 for up to 20 consecutive business days before confirming compliance.

If Westaim does not regain compliance with NASDAQ Marketplace Rule 4450(a)(5) by October 8, 2007, NASDAQ will provide written notification that Westaim's securities will be delisted from NASDAQ.

The Westaim Corporation intends to monitor the market value of its listed securities and consider available options in respect of its NASDAQ listing.

The TSX is the primary exchange on which The Westaim Corporation's common stock is listed. Since January 1, 2007, trading of the Company's stock on the TSX has represented approximately 85 per cent of total trading. Westaim's listing on the TSX is not affected by the NASDAQ Staff Deficiency Letter and the Company intends to maintain its TSX listing regardless of the status of its NASDAQ listing.

The Westaim Corporation's technology investments include iFire Technology Corp., which is developing a low-cost flat panel display technology, and a 74.8 per cent interest in NUCRYST Pharmaceuticals Corp. (NASDAQ: NCST; TSX: NCS), which develops, manufactures and commercializes medical products that fight infection and inflammation based on its nanocrystalline silver technology. Westaim's common shares are listed on The Toronto Stock Exchange under the trading symbol WED and on the NASDAQ under the trading symbol WEDX.

This news release contains forward-looking statements. These statements are based on current expectations that are subject to risks and uncertainties, and Westaim 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 but not limited to statements involving NASDAQ's potential future actions, Westaim's consideration of the options available in respect of its NASDAQ listing, and Westaim's intention to maintain its TSX listing. Westaim disclaims any intention or obligation 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.

SOURCE  Westaim Corporation
    -0-              04/13/2007
    /CONTACT: David Wills, Investor Relations, (416) 504-8464,
info@westaim.com, www.westaim.com/
    (WED. WEDX)

CO:  Westaim Corporation
ST:  Alberta
IN:  MLM MTC
SU:

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