Onex Corporation: Acquisition of Qantas Airways Limited

Market Wire, December, 2006

Onex Corporation (TSX: OCX) -

All amounts in Canadian dollars unless otherwise stated

Onex Corporation announced today that, together with its partners in Airline Partners Australia, it has entered into an agreement with Qantas Airways Limited (ASX: QAN) to acquire 100% of the company for A$5.60 (C$5.10) per share, for a total equity purchase price of A$11.2 billion (C$10.2 billion).

Qantas is Australia's largest domestic and international airline. It is the 11th largest global airline, carrying more than 34 million passengers in 2006, serving 142 destinations in 39 countries, and employing approximately 36,000 people worldwide.

The Qantas board of directors has unanimously recommended that shareholders accept the offer. The recommendation is subject to the Qantas board receiving an opinion by an independent expert that the offer is fair and reasonable.

Airline Partners Australia includes Onex with a 12.5% economic interest along with Allco Equity Partners, Allco Finance Group, Macquarie Bank, Texas Pacific Group and certain other investors. Onex's investment of approximately A$445 million (C$404 million) will be made through Onex Partners and will include an investment of approximately A$178 million (C$162 million) by Onex Corporation.

The offer is subject to customary conditions, including receipt of required regulatory approval and acceptance by 90% of the Qantas shareholders. The offer is expected to be mailed to Qantas shareholders in January or early February 2007.

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 is a diversified company with annual consolidated revenues of approximately $20 billion and consolidated assets of approximately $20 billion. Onex 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 .

Contacts: Onex Corporation Nigel S. Wright (416) 362-7711 Onex Corporation Anthony Munk (212) 582-2211 Website: www.onex.com