Westaim announces sale of iFire Technology Ltd. assets

    CALGARY, Oct. 17 /CNW/ - The Westaim Corporation announced today a
purchase and sale agreement between its wholly owned subsidiary iFire
Technology Ltd. and CTS Group Limited. Under the agreement, iFire will sell
its equipment, patents and intellectual property for net proceeds of
approximately US$8.0 million. The sale is subject to several conditions,
including iFire obtaining certain Government of Canada consents and approvals,
which are expected to be obtained by mid-November. CTS Group is a
Canadian-Chinese joint venture with established operations in Henan province,
People's Republic of China.
    "iFire management has worked very hard over the past few months to bring
this transaction to completion," said Drew Fitch, President & CEO of Westaim.
"The sale of iFire's assets will provide Westaim with additional cash
resources as the company pursues its goal of strategically transitioning into
a new sector."
    Westaim previously announced it has entered into a reorganization
agreement where it will acquire, subject to shareholder approval, several
closely held and profitable businesses that provide products and services in
the growing western Canadian construction industry. An information circular
was mailed to shareholders on October 15th in advance of a special meeting of
shareholders to be held on November 21, 2008. Westaim continues to hold a
74.5 percent interest in NUCRYST Pharmaceuticals Corp. (NASDAQ:   NCST; TSX:
    The Westaim Corporation's common shares are listed on The Toronto Stock
Exchange under the trading symbol WED.

    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 sale
of assets, cash resources to be realized from the sale of assets, shareholder
and other approvals to which acquisition of businesses or sales of assets are
subject, conditions upon the sale of assets, Westaim's strategic transition to
a new sector, and the acquisition of businesses. 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.

    %SEDAR: 00002793E

For further information:

For further information: David Wills, Gillian McArdle, Investor
Relations, info@westaim.com, (416) 504-8464

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