Onex Reports Strong Growth For First Quarter

All amounts in Canadian dollars unless otherwise stated

Onex Corporation (TSX:OCX) today released its financial results for the first quarter ended March 31, 2006.

- Revenues were $4.4 billion, a 26% increase from $3.5 billion for first quarter of 2005.

- Operating earnings were $252 million, up $118 million, or 88%, from $134 million in 2005.

- Net earnings were $679 million ($4.95 per share) compared to net earnings of $721 million ($5.19 per share) in the first quarter of 2005.

- Cash from operations for the quarter was $266 million compared to $109 million in the first quarter of 2005.

- As at March 31, 2006, assets totalled $15.2 billion and shareholders' equity was approximately $1.7 billion.

"It was another strong quarter for Onex as our 2005 acquisitions of Emergency Medical Services, Spirit AeroSystems and Skilled Healthcare meaningfully contributed to our 2006 first-quarter 26% growth in revenues and 88% growth in operating earnings," said Gerald W. Schwartz, President and CEO of Onex Corporation. "We are very pleased with the performance of these businesses."

The 2006 first-quarter earnings include a gain of $605 million on the effective disposition of Onex' interest in J.L. French Automotive. While Onex did not receive any cash on this disposition, the prior years' losses that had been recorded in excess of Onex' investment in J.L. French Automotive are taken back into income and reported as part of discontinued operations. In the first quarter of 2005, there was a non-cash gain of approximately $560 million resulting from the redemption of the Celestica exchangeable debentures issued by Onex.

Spirit AeroSystems, which was acquired in June 2005, contributed $775 million in revenues and $118 million in operating earnings for the first quarter of 2006.

The healthcare segment contributed $715 million in revenues, up $332 million from the first quarter last year. Operating earnings for the segment also grew to $56 million in the first quarter of 2006 from $28 million in the same quarter last year. The improvements were due primarily to the acquisition of Skilled Healthcare Group in December 2005 and the inclusion of a full quarter of results for Emergency Medical Services, acquired in February 2005.

Celestica reported lower revenues in the first quarter of 2006 compared to the same quarter last year. Operating earnings also declined in the quarter as a result of lower revenues.

The rise in price of Onex shares in the stock market in the first quarter resulted in a $36 million expense being recorded from the revaluation of stock option liabilities. This compares to a $13 million charge recorded to operating results in the first quarter of 2005.

Total assets increased in the first quarter by approximately $375 million to $15.2 billion from the end of 2005. Most of that growth was due to the Town and Country real estate acquisition where Onex has a 45% interest. Shareholders' equity increased to $1.7 billion from $1.2 billion at the beginning of the year. This increase is net of $42 million of share repurchases (2.1 million shares) that were completed in the quarter under the Company's issuer bid.

"Onex began fundraising in the first quarter of 2006 for its second fund, Onex Partners II, which is targeted at a size of about $4 billion," continued Mr. Schwartz. "As Onex, the parent company, is in a very strong financial position with approximately $1.4 billion of cash today, we are determined to put more of that cash to work by committing up to 40% of the new fund, an increase from 24% of the first fund."

The Consolidated Statements of Earnings for the three months ended March 31, 2006 and 2005 are attached. In accordance with required accounting rules, the 2005 results have been reclassified from those previously reported for those businesses that have been discontinued in 2006.

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

Onex Corporation is a diversified company with annual consolidated revenues of approximately $20 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. Its operating companies include Celestica Inc., Spirit AeroSystems, Inc., Emergency Medical Services Corporation, Skilled Healthcare Group, Inc., ClientLogic Corporation, Cineplex Entertainment Limited Partnership, Res-Care, Inc., Cosmetic Essence, Inc., Center for Diagnostic Imaging, Inc., Radian Communication Services Corporation and Onex Real Estate Partners LP. 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 10:00 a.m. today, Onex will webcast live its Annual Shareholders Meeting in listen-only mode on its website. Also, at 4:30 p.m. today, Onex will webcast a live conference call to review the Company's First 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 Statements of Earnings

(Unaudited)                               Three months ended March 31

(in millions of dollars,
 except per share data)                                2006      2005
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Revenues                                           $  4,357 $   3,458
Cost of sales                                       (3,715)   (3,064)
Selling, general and administrative expenses          (303)     (230)
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Earnings Before the Undernoted Items               $    339 $     164
Amortization of property, plant and equipment          (91)      (78)
Amortization of intangible assets and deferred
 charges                                               (22)      (22)
Interest expense of operating companies                (85)      (39)
Interest and other income                                33        46
Equity-accounted investments                              3         2
Foreign exchange gains                                    4        13
Stock-based compensation                               (36)      (13)
Derivative instruments                                    1         1
Gains on sales of operating investments, net              1       603
Acquisition, restructuring and other expenses          (35)      (43)
Writedown of goodwill and intangible assets             (5)         -
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Earnings before income taxes, non-controlling
 interests and discontinued operations                  107       634
Provision for income taxes                             (34)      (20)
Non-controlling interests                              (39)         3
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Earnings from continuing operations                      34       617
Earnings from discontinued operations                   645       104
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Net Earnings for the Period                        $    679 $     721
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Net Earnings per Subordinate Voting Share
Basic and Diluted:
  Continuing operations                            $   0.25 $    4.44
  Discontinued operations                          $   4.70 $    0.75
  Net earnings                                     $   4.95 $    5.19
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