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Westaim announces 2007 year-end results
Date:2/15/2008

hs Twelve Months

Ended December 31 Ended December 31

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

(thousands of dollars except

per share data) 2007 2006 2007 2006

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

Revenue $ 11,174 $ 5,140 $ 31,830 $ 27,591

Costs

Manufacturing 3,226 2,899 14,617 17,324

Research and development 1,334 1,966 6,356 12,112

General and administrative 2,660 2,101 9,348 6,762

Depreciation and amortization 403 635 2,093 2,614

Corporate costs 1,845 1,050 10,856 6,123

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

Operating income (loss) 1,706 (3,511) (11,440) (17,344)

Foreign exchange (loss)

gain (305) 1,331 (3,804) (720)

Interest 141 653 1,822 3,242

Change in fair value of

third party asset-backed

commercial paper (1,067) - (4,048) -

Loss on sale of third

party asset-backed

commercial paper (1,067) - (1,067) -

Write-down of capital

assets and intangible

assets - (1,210) (1,203) (1,210)

Gain on sale of capital

assets 75 - 8,722 -

Dilution gain - - 4,525 -

Gain on sale of investment 2,648 - 2,648 -

Loss on issuance of shares

of subsidiary (14) (5
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SOURCE Westaim Corporation
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