CALGARY, April 23 /PRNewswire-FirstCall/ - The Westaim Corporation announced today it will undertake a review of its business strategy. The Board of Directors has directed management of the Company to consider strategic alternatives to maximize value for shareholders. The Board does not believe that the Company's current share price accurately reflects the value of its investments in NUCRYST Pharmaceuticals and iFire Technology. The company will retain strategic and financial advisors as necessary during the process.

"Development delays at iFire Technology and disappointing results from a Phase 2 clinical trial of a treatment for atopic dermatitis at NUCRYST have resulted in a weakened share price," said Barry Heck, President & CEO of The Westaim Corporation. "This is putting pressure on our balance sheet and, as a result, we must re-assess our business strategy and determine the optimal use of existing resources and assets."

As of December 31, 2006, Westaim had $62.8 million in consolidated cash and short term investments which includes $22.1 million of NUCRYST Pharmaceuticals Corp. cash and short-term investments. In addition to its wholly owned subsidiary, iFire Technology, Westaim owns 74.8 per cent of the outstanding shares of NUCRYST Pharmaceuticals.

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 beliefs regarding the Company's share price, the value of Westaim's investments in NUCRYST and iFire, and the best use of the Company's assets. 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-              04/23/2007
    /CONTACT: David Wills, Investor Relations, The Westaim Corporation, (416)
504-8464, info@westaim.com, www.westaim.com/
    (WED. WEDX)

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

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2422 04/23/2007 12:32 EDT http://www.prnewswire.com