The Westaim Corporation to undertake review of business strategy

    CALGARY, April 23 /CNW/ - 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.

    %SEDAR: 00002793E

For further information:

For further information: David Wills, Investor Relations, The Westaim
Corporation, (416) 504-8464,,

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