Onex Corporation-Loews Cineplex Entertainment Canada Files Initial Public Offering

Business Wire, August 19, 2002

Business/Entertainment Editors

TORONTO--(BUSINESS WIRE)--Aug. 19, 2002

All amounts in Canadian dollars unless otherwise stated Onex

Corporation announced today that Loews Cineplex Entertainment Corporation Canada ("Cineplex"), has filed a preliminary prospectus with the Canadian securities regulatory authorities to qualify the distribution of Cineplex Exchangeable Shares. Cineplex is an indirect wholly-owned subsidiary of Onex' subsidiary, Loews Cineplex Entertainment Corporation ("Loews Cineplex"). Earlier this month, Loews Cineplex filed a registration statement with the U.S. Securities and Exchange Commission for an initial public offering of up to (U.S.) $300,000,000, to consist of primary shares to be sold by Loews Cineplex, secondary shares to be sold by OCM Cinema Holdings, LLC, an entity managed by Oaktree Capital Management, LLC and the Cineplex Exchangeable Shares. The net proceeds to be received by Loews Cineplex and Cineplex will be used to repay outstanding indebtedness and for general corporate purposes.

Cineplex's distribution of Exchangeable Shares is being made to provide Canadian investors with an opportunity to invest in Loews Cineplex through the acquisition of RRSP-eligible Exchangeable Shares that are not foreign property for the purposes of the Income Tax Act (Canada). The Exchangeable Shares will be offered solely in Canada, and will not be offered in the United States.

RBC Capital Markets will be lead manager and bookrunner and CIBC World Markets and Scotia Capital Markets will be co-lead managers of the offering of Cineplex Exchangeable Shares.

Loews Cineplex is one of the world's leading film exhibition companies with 2,419 screens in 251 theatres, primarily in major cities in the United States, Canada, Spain and South Korea. Loews Cineplex operates in North America under the names Loews Theatres, Cineplex Odeon, Star Theatres and Magic Johnson Theatres. In addition, the company is a partner in Yelmo Cineplex (Spain) and Megabox Cineplex (South Korea). Concurrent with the offering, Loews Cineplex will acquire Grupo Cinemex, S.A. de C.V., which operates 349 screens in 31 theatres in Mexico.

Onex Corporation is a diversified company with annual consolidated revenues of approximately $24 billion and consolidated assets of approximately $23 billion. Onex is Canada's 5th largest company with global operations in service, manufacturing and technology industries. Its subsidiaries include Celestica, Inc., Loews Cineplex Entertainment Corporation, ClientLogic Corporation, Lantic Sugar Limited, Rogers Sugar Ltd., Dura Automotive Systems, Inc., J.L. French Automotive Castings, Inc., MAGNATRAX Corporation, InsLogic Corporation, Performance Logistics Group, Inc., Radian Communication Services Corporation and Galaxy Entertainment Inc. Onex shares trade on the Toronto Stock Exchange under the stock symbol OCX.

OCM Cinema Holdings, LLC is managed on behalf of certain investment funds and accounts by Oaktree Capital Management, LLC, a Los Angeles based private investment management firm specializing in inefficient markets and alternative investments with approximately (U.S.) $25 billion of assets committed for management primarily from institutional investors.

The securities offered have not been registered under the U.S. Securities Act of 1993, as amended and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.