CALGARY, Aug. 20 /PRNewswire-FirstCall/ - In response to the current liquidity situation in the asset-backed commercial paper market, The Westaim Corporation announced today that the Company has $19.7 million invested in asset-backed commercial paper (ABCP) maturing on various dates over the next two months. These securities, which meet the criteria of The Westaim Corporation's investment policy, have been rated R-1 (high) by DBRS Limited. However, until these securities mature, Westaim cannot be certain that they will be repaid promptly, in which event there could be adverse consequences to the Company in the future.

The Company also has approximately $12 million in bank deposits and bankers' acceptances that are unaffected by liquidity issues impacting the ABCP market. At June 30, 2007, Westaim had a total of $33.9 million in cash and short-term investments, excluding the cash equivalents held by its 74.8 per cent owned affiliate NUCRYST Pharmaceuticals Corp.

"Westaim has sufficient non-ABCP cash and liquid investments to continue operations well into the first quarter of 2008," said Drew Fitch, President & CEO, The Westaim Corporation. "During the next few months, we will be actively monitoring the asset-backed commercial paper situation and taking steps to ensure we continue to have access to cash necessary to fund our operations."

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 regarding the repayment of mature securities, potential adverse consequences to Westaim in future, the sufficiency of Westaim's cash and liquid investments to continue operations, Westaim's intention to monitor the asset-backed commercial paper situation referred to in the news release, and potential steps to be taken by Westaim to ensure continued access to cash necessary to fund operations. Westaim disclaims any intention or obligation to revise forward-looking statements whether as a result of new information, future developments or otherwise. Accordingly, readers are advised not to place undue reliance on forward-looking statements, and should not rely on this information at any date other than the date of this news release. All forward-looking statements are expressly qualified in their entirety by this cautionary statement.

SOURCE  Westaim Corporation
    -0-              08/20/2007
    /CONTACT: Gillian McArdle, The Westaim Corporation, (416) 504-8464,
info@westaim.com/
    (WED. WEDX)

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

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