Acquisition

Smith & Nephew Plc
9 May 2001


9 May 2001


         SMITH & NEPHEW ACQUIRES BURNS BUSINESS AND EXCLUSIVE LICENCE

             TO NEW WOUNDCARE TECHNOLOGY FROM WESTAIM BIOMEDICAL


Smith & Nephew, the global advanced medical devices group, has acquired from
Westaim Biomedical Corp an exclusive global licence to its antimicrobial
coating technology for wounds, together with its US and Canadian Acticoat
burns dressing business.

The Acticoat product is a nanocrystalline silver-based dressing used for the
treatment and prevention of infection in burns.  The product has had strong
growth since its introduction in 1998 and has developed a significant
reputation within burns hospitals in North America.  It has demonstrated a
wide antimicrobial spectrum and is effective against many different pathogens.
It achieved sales of £4m in 2000.

Westaim Biomedical will continue to manufacture current product for Smith &
Nephew and will receive royalty payments.  The two companies will also
collaborate to develop the technology further, particularly for chronic
wounds.

The initial cash consideration is £11.5m with up to a further £39m becoming
payable on the achievement of certain regulatory and sales milestones ranged
up to annual product sales of £70m.

Chris O'Donnell, Chief Executive of Smith & Nephew said: 'Acticoat has
established an important position in the prevention and management of
infection in burns.  It will bring a number of strengths to our wound
management business, including increased sales in existing and new growth
markets, patented technology with a strong competitive position, and major
benefits for patients.'

Kevin Jenkins, President and CEO of The Westaim Corporation said: 'As the
world leader in the rapidly growing advanced woundcare market, Smith & Nephew
is the ideal partner to accelerate Acticoat's worldwide penetration of the
chronic and acute wound markets.  We are confident that Smith & Nephew's
strong reputation and market presence, combined with Westaim Biomedical's
patented nanocrystalline technology will prove to be a powerful partnership
for success in the marketplace.'


Enquiries:


Chris O'Donnell, Chief Executive       Tony Johnston, Sr. Vice President
Smith & Nephew plc                     The Westaim Corporation
Tel: [phone]              Tel:  [phone]


Jim Dick, President
Smith & Nephew Wound Management
Tel: [phone]


David Yates
Financial Dynamics
Tel: [phone]


NOTES TO EDITORS

Background to Acticoat

Each year, chronic wounds such as venous ulcers and pressure sores affect
around 2.5 million people in the US.  More than one million of these patients
require weekly care from a doctor.

The global market for burns dressings is estimated to be US$50m.  Over 100,000
people are hospitalised each year and burns are particularly susceptible to
infection by pathogens.



About Smith & Nephew plc

Smith & Nephew plc is a global advanced medical devices group with more than
£825m (US$1.2 billion) in annual sales.  It has four businesses: Orthopaedics,
Endoscopy, Wound Management and Rehabilitation, and has a highly successful
track record in developing manufacturing and marketing a wide variety of
innovative and technologically advanced tissue repair products, primarily in
the areas of bone, joints, skin and other soft tissue.  Smith & Nephew employs
some 9,000 people with operations in 35 countries.  It is the world leader in
advanced wound management, and has extensive woundcare marketing and
distribution capabilities with a global sales force of more than 500
representatives and sales in more than 90 countries.  Smith & Nephew is traded
on the London Stock Exchange (SN) and ADRs on the New York Stock Exchange
(SNN).



About Westaim Biomedical Corp.

Westaim Biomedical Corp is a biotechnology company with research and
manufacturing expertise in the science of noble metal nanotechnology for
sophisticated medical device and pharmaceutical applications.  Its
nanocrystalline silver technology, a patented method of applying a thin layer
of anti-microbial silver to base materials, delivers pure silver ions.  The
company's nanocrystalline silver products have demonstrated in laboratory
tests, a wide antimicrobial spectrum and a high kill rate and are effective
against 150 different pathogens, including drug-resistant forms of bacteria.

Westaim Biomedical's first commercial product, Acticoat burns dressing, was
launched in 1998 and is used in more than 100 major burns hospitals in North
America.  In addition, Westaim Biomedical has introduced dressings into the
specialised chronic wound market that provide sustained antimicrobial
protection of up to 7 days.



About The Westaim Corporation

The Westaim Corporation is a technology accelerator that launches advanced
technologies into the marketplace.  In addition to its investment in Westaim
Biomedical Corp., The Westaim Corporation's technology investments include
iFire Technology Inc., which has developed a low-cost flat panel display and
Savvion, a leader in e-business management software.  The company's common
shares are listed on Nasdaq under the symbol WEDX and on the Toronto Stock
Exchange under the symbol WED.