Onex Completes Acquisition of Loews Cineplex Entertainment; Loews Cineplex Entertainment Emerges From Bankruptcy

Business Wire, March 21, 2002

Business Editors

TORONTO--(BUSINESS WIRE)--March 21, 2002

All amounts in Canadian dollars unless otherwise stated

Onex Corporation announced today that it has completed the purchase of Loews Cineplex Entertainment Corporation and all of its wholly-owned U.S. subsidiaries ("Loews Cineplex") following its emergence from bankruptcy. Onex and its partner, Oaktree Capital Management, LLC, have converted their interests in the bank debt of Loews Cineplex to equity of the restructured company. As a result, to date Onex will have invested a total of approximately $320 million in Loews Cineplex for a 60% ownership interest.

"Loews Cineplex represents a new and exciting opportunity for Onex in the film exhibition industry worldwide," said Gerald W. Schwartz, Chairman and CEO of Onex Corporation. "Since announcing our interest in Loews Cineplex a little over a year ago, we have worked with management to position the company for future growth. Loews Cineplex emerges from bankruptcy with the highest quality theatre portfolio in the industry. As well the company has significantly reduced its financial leverage, emerges with a well capitalized balance sheet and a strong commitment by Onex and Oaktree to provide additional capital for growth."

Over the past 13 months, Loews Cineplex has increased its annual cash flow by $45 million through the closure of over 100 theatres totalling 700 screens and the renegotiation of lease terms on an additional 350 screens. The company has also greatly improved its capitalization, reducing long-term debt by approximately $1 billion and benefitting from a significant capital contribution by Onex and Oaktree.

Loews Cineplex has entered into a new credit facility with Bankers Trust Company and its affiliate Deutsche Banc Alex. Brown Inc. to finance Loews Cineplex' emergence from bankruptcy and provide for the company's ongoing working capital needs.

The company's Canadian subsidiary, Cineplex Odeon Corporation, and certain of its other Canadian subsidiaries, also completed its reorganization under the Companies' Creditors Arrangement Act (Canada). Cineplex Odeon will continue to be a wholly-owned subsidiary of Loews Cineplex.

Onex Corporation is a diversified company with annual consolidated revenues of approximately $24 billion and consolidated assets of approximately $21 billion. Onex is Canada's 4th largest company with global operations in service, manufacturing and technology industries. Its subsidiaries include Celestica, Inc., 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.

Loews Cineplex Entertainment Corporation is one of the world's largest theatre exhibition companies in terms of revenues and operating cash flow, with 2,445 screens in 263 locations primarily in major cities throughout the United States, Canada and Europe. Loews Cineplex operates theatres under the Loews and Cineplex Odeon names. In addition, the company is a partner in Magic Johnson Theatres, Star Theatres, Yelmo Cineplex de Espana (Spain) and Megabox (Korea).

Oaktree Capital Management, LLC, based in Los Angeles, is a private investment management firm specializing in inefficient markets and alternative investments with approximately US$23 billion of assets committed for management primarily from institutional investors. For further information: