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

56,371 112,977

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$ 83,387 $ 148,339

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THE WESTAIM CORPORATION

Consolidated Cash Flow Statements

(unaudited)

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Three Months Ended Twelve Months Ended

December 31 December 31

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(thousands of dollars) 2007 2006 2007 2006

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Operating Activities

Net income (loss) from

continuing operations $ 1,169 $ (2,200) $ (2,830) (12,861)

Items not affecting cash

Gain on sale of capital

assets (75) - (8,722) -

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

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 -

Depreciation and

amortization 403 635 2,093 2,614

Stock-based compensation

expense 667 372 2,469 1,412

Non-controlling interest 806 (466) (1,293) (3,222)

Loss on issuance of shares

of subsidiary 14 5 134
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SOURCE Westaim Corporation
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