Onex Third-Quarter Revenues Up 17%, Net Earnings Up 138%

All amounts in Canadian dollars unless otherwise stated

Onex Corporation (TSX: OCX) today reported its consolidated financial results for the third quarter and nine months ended September 30, 2006.

Third-quarter results:

- Revenues were $4.9 billion, up $726 million, or 17%, from $4.2 billion reported for the third quarter of 2005.

- Operating earnings grew to $192 million in the third quarter of 2006 from $69 million in the same quarter of last year (up 178%).

- Net earnings were $31 million ($0.24 per share) compared to net earnings of $13 million ($0.09 per share) for the third quarter of 2005 (up 138%).

- Cash from operations for the quarter totalled $161 million compared to $43 million in the same quarter of last year (up 274%).

First nine months results:

- Revenues grew 21% to $14.0 billion from $11.6 billion for the first nine months of last year.

- Operating earnings were $685 million, up 77% from the first nine months of last year.

- Net earnings were $758 million ($5.66 per share) compared to $973 million ($7.00 per share) for the nine months ended September 30, 2005. There were net gains (continuing and discontinuing operations) of $764 million recorded in the first nine months of 2006 compared to $1,005 million for the first nine months of 2005.

- Cash from operations for the first nine months of 2006 was $633 million, up 98% from the same period of last year.

- At September 30, 2006, consolidated assets totalled $15.3 billion and shareholders' equity was approximately $1.6 billion. Included in consolidated assets was $1.1 billion of cash at Onex, the parent company.

The acquisitions completed over the last 12 months were the primary drivers of growth in revenues and operating earnings for the third quarter and first nine months of 2006. These acquisitions include Spirit AeroSystems, acquired in June 2005, and its acquisition of BAE Systems' aerostructures division in April of this year, the purchase of Skilled Healthcare in December 2005 and the July 2005 acquisition of Famous Players by Cineplex Entertainment.

Gerald W. Schwartz, Chairman and CEO of Onex Corporation said, "We have been able to use our cash resources very effectively this year. We have experienced a very substantial growth in the value of our major assets such as Spirit AeroSystems. We have also been able to commit our cash to excellent new acquisitions such as our recently announced purchase of the Aon Warranty Group."

Mr. Schwartz went on to say, "This has been quite a quarter. Revenues and earnings have risen substantially. Even more importantly, cash from operations, something we watch closely, is up 274% this quarter and 98% year to date."

Operating earnings is Earnings Before the Undernoted Items (as shown in the attached Consolidated Statements of Earnings) less amortization of property, plant and equipment, foreign exchange losses (gains) and stock-based compensation, plus interest and other income and equity-accounted investments.

During the third quarter of 2006, Onex repurchased 2,142,600 Subordinate Voting Shares under its Normal Course Issuer Bid at a total cost of $51 million. This year, up to the end of October 31, 2006, Onex has repurchased 9,101,300 Subordinate Voting Shares at a total cost of $202 million. Mr. Schwartz said, "We think that these share repurchases best exhibit our confidence in the growth in future value of Onex shares."

Onex manages third party private equity investments through the Onex Partners and ONCAP family of funds. It also manages a real estate fund and a public market fund. Through these activities Onex generates annual management fee income and is entitled to a carried interest on approximately $3.5 billion of third party capital.

Onex Corporation is a diversified company with annual consolidated revenues of approximately $19 billion and consolidated assets of approximately $15 billion. Onex is one of Canada's largest companies with global operations in service, manufacturing and technology industries.

Attached are the Consolidated Balance Sheets, Statements of Earnings and information by industry segment for the three and nine months ended September 30, 2006 and 2005. The complete financial statements, including Onex' Management's Discussion and Analysis of the results are posted on Onex' website, www.onex.com, under the Investor Information section and are also available on SEDAR.

Onex shares trade on the Toronto Stock Exchange under the stock symbol OCX.

This news release may contain forward-looking statements that are based on management's current expectations and are subject to known and unknown uncertainties and risks, which could cause actual results to differ materially from those contemplated or implied by such forward-looking statements. Onex is under no obligation to update any forward-looking statements contained herein should material facts change due to new information, future events or otherwise.

At 4:00 p.m. today, Onex will webcast a live conference call to review the Company's Third Quarter 2006 Results in listen-only mode on its website, www.onex.com.

For more information on Onex, visit its website at www.onex.com.

The company's security filings can also be accessed at www.sedar.com.

Consolidated Balance Sheets

--------------------------------------------------------------------------- (Unaudited) As at September 30 As at December 31 (in millions of dollars) 2006 2005 --------------------------------------------------------------------------- Assets Current assets Cash and short-term investments $ 2,315 $ 3,096 Accounts receivable 2,294 2,124 Inventories 2,303 1,944 Other current assets 348 440 Current assets held by discontinued operations 14 156 --------------------------------------------------------------------------- 7,274 7,760 Property, plant and equipment 2,581 2,421 Investments and other assets 1,830 1,271 Intangible assets 471 441 Goodwill 2,414 2,478 Long-lived assets held by discontinued operations 779 474 --------------------------------------------------------------------------- $ 15,349 $ 14,845 --------------------------------------------------------------------------- --------------------------------------------------------------------------- Liabilities and Shareholders' Equity Current liabilities Bank indebtedness, without recourse to Onex $ 12 $ 1 Accounts payable and accrued liabilities 3,537 3,226 Current portion of long-term debt and obligations under capital leases of operating companies, without recourse to Onex 128 60 Current liabilities held by discontinued operations 11 877 --------------------------------------------------------------------------- 3,688 4,164 Long-term debt of operating companies, without recourse to Onex 3,584 3,796 Obligations under capital leases of operating companies, without recourse to Onex 75 65 Other liabilities 1,338 1,059 Future income taxes 714 767 Long-term liabilities held by discontinued operations 677 199 --------------------------------------------------------------------------- 10,076 10,050 Non-controlling interests 3,716 3,643 Shareholders' equity 1,557 1,152 --------------------------------------------------------------------------- $ 15,349 $ 14,845 --------------------------------------------------------------------------- ---------------------------------------------------------------------------

The December 31, 2005 balance sheet is taken from the audited annual consolidated financial statements and has been restated for discontinued operations.

Consolidated Statements of Earnings

--------------------------------------------------------------------------- Three months Nine months (Unaudited) ------------------------------------------ (in millions of dollars, ended September 30 ended September 30 except per share data) 2006 2005 2006 2005 --------------------------------------------------------------------------- Revenues $ 4,923 $ 4,197 $ 14,016 $ 11,619 Cost of sales (4,263) (3,714) (12,081) (10,254) Selling, general and administrative expenses (299) (285) (892) (770) --------------------------------------------------------------------------- Earnings Before the

Undernoted Items $ 361 $ 198 $ 1,043 $ 595 Amortization of property, plant and equipment (88) (88) (264) (251) Amortization of intangible assets and deferred charges (24) (22) (65) (65) Interest expense of operating companies (90) (75) (262) (169) Interest and other income 17 51 83 116 Equity-accounted investments 4 (4) 10 1 Foreign exchange gains (loss) 6 (58) (23) (24) Stock-based compensation (108) (30) (164) (51) Derivative instruments (1) 2 - 3 Gains on sales of operating investments, net 9 54 58 870 Acquisition, restructuring and other expenses (105) (56) (210) (151) Debt prepayment - (4) - (4) Writedown of goodwill and intangible assets - - (5) (2) Writedown of long-lived assets - (4) - (4) --------------------------------------------------------------------------- Earnings (loss) before income taxes, non-controlling interests and discontinued operations (19) (36) 201 864 Provision for income taxes (11) (24) (65) (57) Non-controlling interests (3) 9 (85) (4) --------------------------------------------------------------------------- Earnings (loss) from continuing operations (33) (51) 51 803 Earnings from discontinued operations 64 64 707 170 --------------------------------------------------------------------------- Net Earnings for the Period $ 31 $ 13 $ 758 $ 973 --------------------------------------------------------------------------- ---------------------------------------------------------------------------

Net Earnings (Loss) per Subordinate Voting Share Basic and Diluted Continuing operations $ (0.25) $ (0.37) $ 0.38 $ 5.78 Discontinued operations $ 0.49 $ 0.46 $ 5.28 $ 1.22 Net earnings $ 0.24 $ 0.09 $ 5.66 $ 7.00 --------------------------------------------------------------------------- ---------------------------------------------------------------------------

The September 30, 2005 unaudited interim consolidated statements of earnings have been restated for discontinued operations

Consolidated Statements of Cash Flows

--------------------------------------------------------------------------- Three months Nine months (Unaudited) ------------------------------------------ (in millions of dollars) ended September 30 ended September 30 2006 2005 2006 2005 --------------------------------------------------------------------------- Operating Activities Net earnings for the period $ 31 $ 13 $ 758 $ 973 Earnings from discontinued operations (64) (64) (707) (170) Items not affecting cash: Amortization of property, plant and equipment 88 88 264 251 Amortization of intangible assets and deferred charges 24 22 65 65 Writedown of goodwill and intangible assets - - 5 2 Writedown of long-lived assets - 4 - 4 Non-cash component of restructuring 46 - 83 9 Non-controlling interests 3 (9) 85 4 Future income taxes (47) 1 (21) 5 Stock-based compensation 108 30 164 51 Derivative instruments 1 (2) - (3) Gains on sales of operating investments, net (9) (54) (58) (870) Other (20) 14 (5) (2) --------------------------------------------------------------------------- 161 43 633 319 Increase in other liabilities 21 292 233 285 Changes in non-cash working capital items: Accounts receivable (3) (93) (219) 134 Inventories (194) 40 (424) (38) Other current assets 44 44 41 51 Accounts payable and accrued liabilities 304 (54) 491 (184) --------------------------------------------------------------------------- Increase (decrease) in cash due to changes in working capital items 151 (63) (111) (37) Cash used by discontinued operations - (1) (2) (10) --------------------------------------------------------------------------- 333 271 753 557 --------------------------------------------------------------------------- Financing Activities Issuance of long-term debt 252 297 461 1,130 Repayment of long-term debt (291) (271) (511) (658) Cash dividends paid (3) (3) (11) (11) Repurchase of share capital (51) - (190) - Issuance of share capital by operating companies 11 84 77 577 Distributions by operating companies (10) (26) (34) (409) Repurchase of share capital by operating companies - (273) - (273) Increase due to other financing activities 5 41 13 32 Cash from discontinued operations - 28 - 54 --------------------------------------------------------------------------- (87) (123) (195) 442 --------------------------------------------------------------------------- Investing Activities Acquisition of operating companies, net of cash in acquired companies of $10 (2005 - $224) (14) (448) (262) (1,260) Purchase of property, plant and equipment (191) (162) (645) (307) Proceeds from sales of operating investments - - 39 394 Net purchase of short-term investments (854) (283) (854) (543) Increase (decrease) due to other investing activities (97) 32 (348) (66) Cash from (used by) discontinued operations 1 185 (62) 48 --------------------------------------------------------------------------- (1,155) (676) (2,132) (1,734) --------------------------------------------------------------------------- Decrease in Cash for the Period (909) (528) (1,574) (735) Increase (decrease) in cash due to changes in foreign exchange rates 4 (124) (73) (84) Cash, beginning of the period - continuing operations 2,365 3,140 3,096 2,857 Cash, beginning of the period - discontinued operations 8 3 19 453 --------------------------------------------------------------------------- Cash - End of the Period(a) 1,468 2,491 1,468 2,491 Short-term investments(b) 854 543 854 543 --------------------------------------------------------------------------- Cash and Short-term Investments $ 2,322 $ 3,034 $ 2,322 $ 3,034 --------------------------------------------------------------------------- ---------------------------------------------------------------------------

(a) Cash includes cash and money market investments that mature in less than three months from the balance sheet date. (b) Short-term investments consist of money market investments that mature in three months to a year. (c) Includes cash from discontinued operations of $7.

The September 30, 2005 unaudited interim consolidated statement of cash flows has been restated for discontinued operations.

INFORMATION BY INDUSTRY

Three months ended September 30, 2006

Electronics (Unaudited) Manufacturing (in millions of dollars) Services Aerostructures Healthcare --------------------------------------------------------------------------- Revenues $ 2,680 $ 925 $ 726 Cost of sales (2,507) (745) (601) Selling, general and administrative expenses (75) (48) (43) --------------------------------------------------------------------------- Earnings (loss) before the undernoted items $ 98 $ 132 $ 82 Amortization of property, plant and equipment (29) (7) (23) Amortization of intangible assets and deferred charges (7) (5) (6) Interest expense of operating companies (19) (13) (28) Interest and other income - 7 -

Equity-accounted investments - - 2 Foreign exchange gains 5 - - Stock-based compensation (5) (65) (1) Derivative instruments - - - Gains on sales of operating investments, net - - - Acquisition, restructuring and other expenses (92) (9) - --------------------------------------------------------------------------- Earnings (loss) before income taxes, non-controlling interests, and discontinued operations $ (49) $ 40 $ 26 --------------------------------------------------------------------------- Provision for income taxes Non-controlling interests Loss from continuing operations Earnings from discontinued operations Net earnings ---------------------------------------------------------------------------

--------------------------------------------------------------------------- Customer (Unaudited) Theatre Management Consolidated (in millions of dollars) Exhibition Services Other (a) Total --------------------------------------------------------------------------- Revenues $ 199 $ 184 $ 209 $ 4,923 Cost of sales (157) (110) (143) (4,263) Selling, general and administrative expenses (9) (51) (73) (299) --------------------------------------------------------------------------- Earnings (loss) before the undernoted items 33 23 (7) 361 Amortization of property, plant and equipment (15) (7) (7) (88) Amortization of intangible assets and deferred charges (1) (1) (4) (24) Interest expense of operating companies (12) (10) (8) (90) Interest and other income 1 - 9 17 Equity-accounted investments - - 2 4 Foreign exchange gains - - 1 6 Stock-based compensation - - (37) (108) Derivative instruments - - (1) (1) Gains on sales of operating investments, net - - 9 9 Acquisition, restructuring and other expenses - - (4) (105) --------------------------------------------------------------------------- Earnings (loss) before income taxes, non-controlling interests, and discontinued operations 6 5 (47) (19) ------------------------------------------------------------- Provision for income taxes (11) Non-controlling interests (3) ------------- Loss from continuing operations (33) Earnings from discontinued operations 64 ------------- Net earnings 31 --------------------------------------------------------------------------- (a) Includes Cosmetic Essence, Radian, OREP, ONCAP I, ONCAP II and parent company.

INFORMATION BY INDUSTRY

Three months ended September 30, 2005

Electronics (Unaudited) Manufacturing (in millions of dollars) Services Aerostructures Healthcare --------------------------------------------------------------------------- Revenues $ 2,388 $ 684 $ 579 Cost of sales (2,229) (617) (496) Selling, general and administrative expenses (70) (51) (30) --------------------------------------------------------------------------- Earnings before the undernoted items $ 89 $ 16 $ 53 Amortization of property, plant and equipment (37) (6) (19) Amortization of intangible assets and deferred charges (8) (1) (4) Interest expense of operating companies (19) (15) (18) Interest and other income 19 10 1 Equity-accounted investments - - - Foreign exchange gains (loss) 1 - - Stock-based compensation (13) (3) (1) Derivative instruments - - - Gains on sales of operating investments, net - - - Acquisition, restructuring and other expenses (49) (5) - Debt prepayment - - - Writedown of long-lived assets - - - --------------------------------------------------------------------------- Earnings (loss) before income taxes, non-controlling interests and discontinued operations $ (17) $ (4) $ 12 --------------------------------------------------------------------------- Provision for income taxes Non-controlling interests Loss from continuing operations Earnings from discontinued operations Net earnings ---------------------------------------------------------------------------

--------------------------------------------------------------------------- Customer (Unaudited) Theatre Management Consolidated (in millions of dollars) Exhibition Services Other (a) Total ---------------------------------------------------------------------------

Revenues $ 152 $ 163 $ 231 $ 4,197 Cost of sales (126) (98) (148) (3,714) Selling, general and administrative expenses (9) (48) (77) (285) --------------------------------------------------------------------------- Earnings before the undernoted items $ 17 $ 17 $ 6 $ 198 Amortization of property, plant and equipment (13) (7) (6) (88) Amortization of intangible assets and deferred charges (1) (2) (6) (22) Interest expense of operating companies (9) (6) (8) (75) Interest and other income - 1 20 51 Equity-accounted investments - - (4) (4) Foreign exchange gains (loss) - - (59) (58) Stock-based compensation (8) - (5) (30) Derivative instruments - - 2 2 Gains on sales of operating investments, net - - 54 54 Acquisition, restructuring and other expenses - (2) - (56) Debt prepayment (4) - - (4) Writedown of long-lived assets (4) - - (4) --------------------------------------------------------------------------- Earnings (loss) before income taxes, non-controlling interests and discontinued operations $ (22) $ 1 $ (6) (36) ------------------------------------------------------------- Provision for income taxes (24) Non-controlling interests 9 ------------- Loss from continuing operations (51) Earnings from discontinued operations 64 ------------- Net earnings $ 13 --------------------------------------------------------------------------- (a) Includes Cosmetic Essence, Radian, OREP, ONCAP I and parent company.

INFORMATION BY INDUSTRY

Nine months ended September 30, 2006

Electronics (Unaudited) Manufacturing (in millions of dollars) Services Aerostructures Healthcare --------------------------------------------------------------------------- Revenues $ 7,402 $ 2,665 $ 2,157 Cost of sales (6,922) (2,152) (1,794) Selling, general and administrative expenses (228) (130) (118) --------------------------------------------------------------------------- Earnings before the undernoted items $ 252 $ 383 $ 245 Amortization of property, plant and equipment (85) (23) (69) Amortization of intangible assets and deferred charges (23) (5) (18) Interest expense of operating companies (56) (39) (85) Interest and other income 4 27 4 Equity-accounted investments - - 3 Foreign exchange gains (loss) 10 - -

Stock-based compensation (21) (69) (2) Gains on sales of operating investments, net - - - Acquisition, restructuring and other expenses (172) (24) (1) Writedown of goodwill and intangible assets - - - --------------------------------------------------------------------------- Earnings (loss) before income taxes, non-controlling interests and discontinued operations $ (91) $ 250 $ 77 --------------------------------------------------------------------------- Provision for income taxes Non-controlling interests Earnings from continuing operations Earnings from discontinued operations Net earnings --------------------------------------------------------------------------- Total assets(b) $ 5,462 $ 2,757 $ 2,728 --------------------------------------------------------------------------- Long-term debt(c) $ 838 $ 776 $ 1,122 --------------------------------------------------------------------------- --------------------------------------------------------------------------- (a) Includes Cosmetic Essence, Radian, OREP, ONCAP I and parent company. (b) Total assets for the Customer Management Services and Other segments include discontinued operations. (c) Long-term debt includes current portion and excludes capital leases.

--------------------------------------------------------------------------- Customer (Unaudited) Theatre Management Consolidated (in millions of dollars) Exhibition Services Other (a) Total --------------------------------------------------------------------------- Revenues $ 545 $ 543 $ 704 $ 14,016 Cost of sales (443) (330) (440) (12,081) Selling, general and administrative expenses (24) (153) (239) (892) --------------------------------------------------------------------------- Earnings before the undernoted items $ 78 $ 60 $ 25 $ 1,043 Amortization of property, plant and equipment (44) (23) (20) (264) Amortization of intangible assets and deferred charges (4) (1) (14) (65) Interest expense of operating companies (34) (24) (24) (262) Interest and other income 1 2 45 83 Equity-accounted investments - - 7 10 Foreign exchange gains (loss) - - (33) (23) Stock-based compensation (1) 1 (72) (164) Gains on sales of operating investments, net - - 58 58 Acquisition, restructuring and other expenses - (4) (9) (210) Writedown of goodwill and intangible assets - - (5) (5) --------------------------------------------------------------------------- Earnings (loss) before income taxes, non-controlling interests and discontinued operations $ (4) $ 11 $ (42) 201 ------------------------------------------------------------- Provision for income taxes (65) Non-controlling interests (85) ------------- Earnings from continuing operations 51 Earnings from discontinued operations 707 ------------- Net earnings $ 758 --------------------------------------------------------------------------- Total assets(b) 861 $ 225 $ 3,316 $ 15,349 --------------------------------------------------------------------------- Long-term debt(c) $ 370 $ 192 $ 381 $ 3,679 --------------------------------------------------------------------------- --------------------------------------------------------------------------- (a) Includes Cosmetic Essence, Radian, OREP, ONCAP I, ONCAP II and parent company. (b) Total assets for the Customer Management Services and Other segments include discontinued operations. (c) Long-term debt includes current portion and excludes capital leases.

INFORMATION BY INDUSTRY

Nine months ended September 30, 2005

Electronics (Unaudited) Manufacturing (in millions of dollars) Services Aerostructures Healthcare --------------------------------------------------------------------------- Revenues $ 7,826 $ 794 $ 1,548 Cost of sales (7,266) (715) (1,315) Selling, general and administrative expenses (239) (70) (81) --------------------------------------------------------------------------- Earnings before the undernoted items $ 321 $ 9 $ 152 Amortization of property, plant and equipment (119) (10) (52) Amortization of intangible assets and deferred charges (26) (1) (13) Interest expense of operating companies (50) (17) (49) Interest and other income 22 10 1 Equity-accounted investments - - 1 Foreign exchange gains (loss) 5 - - Stock-based compensation (23) (3) (2) Derivative instruments - - - Gains on sales of operating investments, net - - - Acquisition, restructuring and other expenses (128) (13) - Debt prepayment - - - Writedown of goodwill and intangible assets - - - Writedown of long-lived assets - - - --------------------------------------------------------------------------- Earnings (loss) before income taxes, non-controlling interests and discontinued operations $ 2 $ (25) $ 38 --------------------------------------------------------------------------- Provision for income taxes Non-controlling interests of operating companies Earnings from continuing operations Earnings from discontinued operations Net earnings --------------------------------------------------------------------------- Total assets as at December 31, 2005(b) $ 5,637 $ 1,966 $ 2,753 --------------------------------------------------------------------------- Long-term debt as at December 31, 2005(c) $ 872 $ 839 $ 1,196 --------------------------------------------------------------------------- --------------------------------------------------------------------------- (a) Other includes Cosmetic Essence, Radian, OREP, ONCAP I and parent company. (b) Total assets for the Theatre Exhibition, Customer Management Services, and Other segments include discontinued operations. (c) Long-term debt includes current portion and excludes capital leases.

--------------------------------------------------------------------------- Customer (Unaudited) Theatre Management Consolidated (in millions of dollars) Exhibition Services Other (a) Total --------------------------------------------------------------------------- Revenues $ 298 $ 506 $ 647 $ 11,619 Cost of sales (242) (309) (407) (10,254) Selling, general and administrative expenses (18) (147) (215) (770) --------------------------------------------------------------------------- Earnings before the undernoted items $ 38 $ 50 $ 25 $ 595 Amortization of property, plant and equipment (27) (24) (19) (251) Amortization of intangible assets and deferred charges (1) (9) (15) (65) Interest expense of operating companies (14) (16) (23) (169) Interest and other income 2 3 78 116 Equity-accounted investments - - - 1 Foreign exchange gains (loss) - (2) (27) (24) Stock-based compensation (8) - (15) (51) Derivative instruments - - 3 3 Gains on sales of operating investments, net - - 870 870 Acquisition, restructuring and other expenses - (8) (2) (151) Debt prepayment (4) - - (4) Writedown of goodwill and intangible assets - (2) - (2) Writedown of long-lived assets (4) - - (4) --------------------------------------------------------------------------- Earnings (loss) before income

taxes, non-controlling interests and discontinued operations $ (18) $ (8) $ 875 864 ------------------------------------------------------------- Provision for income taxes (57) Non-controlling interests of operating companies (4) ------------- Earnings from continuing operations 803 Earnings from discontinued operations 170 ------------- Net earnings $ 973 --------------------------------------------------------------------------- Total assets as at December 31, 2005(b) $ 860 $ 260 $ 3,369 $ 14,845 --------------------------------------------------------------------------- Long-term debt as at December 31, 2005(c) $ 346 $ 206 $ 379 $ 3,838 --------------------------------------------------------------------------- --------------------------------------------------------------------------- (a) Other includes Cosmetic Essence, Radian, OREP, ONCAP I and parent company. (b) Total assets for the Theatre Exhibition, Customer Management Services, and Other segments include discontinued operations. (c) Long-term debt includes current portion and excludes capital leases.

Contacts: Onex Corporation Ewout R. Heersink (416) 362-7711

Onex Corporation Donald W. Lewtas (416) 362-7711 Website: www.onex.com

SOURCE:  Onex Corporation

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