Onex Establishes New US$3.45 Billion Fund

All amounts in Canadian dollars unless otherwise stated

Onex Corporation (TSX: OCX) announced today that it closed its second large-cap private equity fund, Onex Partners II LP, at US$3.45 billion. Onex has committed 41% of the capital, or US$1.4 billion, to Onex Partners II and owns the fund's general partner and manager.

"We are delighted with the continued support of our existing investors, virtually all of whom have continued to partner with Onex," said Gerald W. Schwartz, Chairman and CEO of Onex. "Onex Partners II will allow Onex to continue to pursue attractive and sizable acquisition opportunities."

Mr. Schwartz added that "through Onex' large commitment to the Fund, it is well positioned to invest its substantial cash balances, while continuing to build a third party asset management business that generates carried interests in future gains of the Fund and meaningful annual fee income."

It is anticipated that the first investment for Onex Partners II, and the final investment for Onex Partners I, will be the US$710 million acquisition of Aon Warranty Group, one of the world's largest providers of extended warranty contracts, later this year.

The prior fund, Onex Partners I, was established by Onex in late 2003 and to date has invested or committed to invest more than US$1.5 billion in nine new operating companies.

Onex manages third party private equity investments through the Onex Partners and Oncap family of funds and invests in real estate and public equities through Onex Real Estate Partners and Onex Capital Markets. Through these activities Onex generates annual management fee income and earns a carried interest on approximately $3.5 billion of third party capital.

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

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

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

Onex' security filings can be accessed at www.sedar.com.

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.