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September 7, 2005

WAKEFIELD, Massachusetts, August 19, 2005 – NUCRYST Pharmaceuticals Corp., a subsidiary of The Westaim Corporation, is pleased to announce that David C. McDowell has been appointed Vice President of Operations.

Mr. McDowell is based at NUCRYST’s facility in Fort Saskatchewan, Alberta, Canada. He is responsible for overseeing quality, manufacturing, engineering, medical coatings research and wound care product development.

“David brings 25 years experience in the pharmaceutical, medical device and consumer packaged goods industries,” said Scott H. Gillis, President of NUCRYST. “His demonstrated accomplishments in manufacturing and supply will be instrumental as we increase production to meet the growing demand for the Acticoat™ family of dressings.”

With Mr. McDowell’s appointment, NUCRYST will have a senior manager in Canada to guide strategic direction and provide operational oversight to the manufacturing facility.  In June, NUCRYST brought new proprietary manufacturing equipment online in the Fort Saskatchewan production facility to meet the growing demand for the Acticoat™ family of dressings. Mr. McDowell will guide future capacity expansions which will be required to keep up with Acticoat™ dressings’ anticipated sales growth.

Prior to joining NUCRYST, Mr. McDowell served in senior positions with Novartis, GlaxoSmithKline and Sterling Winthrop. Most recently, he held the position of General Manager Sterile Manufacturing, Head Lens Care Products Global Supply with Novartis’ CIBA Vision. At CIBA, he was responsible for global manufacturing and supply of lens care and ophthalmic products.  

NUCRYST Pharmaceuticals Corp. ( researches and develops healthcare products based on noble metal nanocrystalline technology. Potential products are in development for dermatology and respiratory conditions. The company has an established, profitable medical coatings business called SILCRYST. NUCRYST manufactures Acticoat™ antimicrobial dressings for burns and serious wounds for Smith & Nephew plc, the world leader in advanced wound management.

In addition to NUCRYST, The Westaim Corporation’s technology investments include iFire Technology, which has developed a revolutionary low-cost flat panel display. Westaim's common shares are listed on NASDAQ under the symbol WEDX and on The Toronto Stock Exchange under the trading symbol WED.


For more information contact:
David Wills
Investor Relations
(416) 504-8464

This news release may contain forward-looking statements. These statements are based on current expectations that are subject to risks and uncertainties, and the Company can give no assurance that these expectations are correct. Various factors such as but not limited to financial considerations could cause actual results to differ materially from those projected in such statements, including but not limited to statements regarding the development, expansion or upgrading of facilities and equipment, facility capacity increases, the growing demand for ActicoatTM dressings, and the anticipated growth in sales of ActicoatTM dressings. The Company 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.

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