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Westaim announces 2007 first quarter results

05/01/2007


CALGARY, May 1 /PRNewswire-FirstCall/ - The Westaim Corporation announced today that for the first quarter ended March 31, 2007, it recorded a net loss of $6.7 million or 7 cents per share, on revenues of $6.1 million. In the same quarter last year, the company recorded a net loss of $18.0 million, or 19 cents per share, on revenues of $7.3 million. The results for the first quarter of 2007 benefited from a $4.5 million dilution gain.

At March 31, 2007, Westaim had $51.7 million in consolidated cash and short-term investments.

Tomorrow, May 2, 2007, The Westaim Corporation is holding its Annual Meeting of Shareholders in Toronto, Canada at 10:00 a.m. EDT. The meeting and accompanying investor briefing, which will provide an update on the company's businesses, will be webcast live and is available through the company website www.westaim.com. An archive of the webcast will be posted following the meeting.

On April 23, 2007, Westaim announced it was conducting a strategic review of its business strategy to determine the optimal use of existing resources and assets to maximize value for shareholders.

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 NASDAQ under the trading symbol WEDX and on The Toronto Stock Exchange under the trading symbol WED. A more detailed discussion of Westaim's 2007 first quarter results can be found at www.westaim.com and www.sedar.com.


    THE WESTAIM CORPORATION
    Financial Highlights
    (unaudited)
    (thousands of dollars except per share data)

    -------------------------------------------------------------------------

                                                 Three Months Ended March 31
                                               ------------------------------
    Consolidated Statements of Operations            2007               2006
    -------------------------------------------------------------------------

    Revenue                                     $   6,131          $   7,253
    Net loss                                       (6,700)           (18,006)
    Net loss per common share
     - basic and diluted                            (0.07)             (0.19)
    Weighted average number of common
    shares outstanding (thousands)                 93,992             92,922

    -------------------------------------------------------------------------

                                                 Three Months Ended March 31
                                               ------------------------------
    Segmented Information                            2007               2006
    -------------------------------------------------------------------------

    Revenue
      Nucryst Pharmaceuticals                   $   6,131          $   7,253
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Operating loss
      Nucryst Pharmaceuticals                   $  (2,157)         $  (3,341)
      iFire Technology                             (8,595)           (11,373)
      Other (including corporate costs)            (1,274)            (4,624)
    -------------------------------------------------------------------------
    Operating loss                              $ (12,026)         $ (19,338)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Consolidated Balance Sheets            March 31, 2007  December 31, 2006
    -------------------------------------------------------------------------

    Cash and short-term investments             $  51,668          $  62,832
    Current assets                                 68,117             80,256
    Other assets                                   65,271             68,083
    Current liabilities                             6,416             15,797
    Shareholders' equity                          106,660            112,977

SOURCE  Westaim Corporation
    -0-              05/01/2007
    /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:  ERN

    -30-

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