Onex Subsidiary Skilled Healthcare to Complete US$258.4 Million IPO

Market Wire, May, 2007

All amounts in Canadian dollars unless otherwise stated

Onex Corporation (TSX: OCX) announced today that its subsidiary Skilled Healthcare Group, Inc. intends to complete an initial public offering of 16.67 million shares of Class A common stock at US$15.50 per share. The offering consists of 8.33 million treasury shares offered by Skilled Healthcare for expected gross proceeds of US$129.2 million and 8.33 million shares offered by selling stockholders, including Onex for expected gross proceeds of US$129.2 million. The selling stockholders have also granted to the underwriters in the offering an over-allotment option to purchase up to approximately 2.5 million additional shares at the offering price. The offering is expected to close on May 18, 2007 and the stock will be listed on the New York Stock Exchange under the symbol SKH.

Following the completion of the offering, Onex and Onex Partners will continue to hold 17.1 million shares valued at US$265.6 million at the offering price. If the over-allotment option is exercised in full, Onex and Onex Partners will continue to own 14.8 million shares valued at US$228.6 million at the offering price.

A registration statement relating to these securities was declared effective by the United States Securities and Exchange Commission on May 14, 2007. This communication shall not constitute an offer to sell or a solicitation of an offer to buy, nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. A written prospectus related to the offering may be obtained by Credit Suisse Prospectus Department, One Madison Avenue, New York, NY 10010; UBS Investment Bank, Prospectus Department, 299 Park Avenue, New York, NY 10171; or Banc of America Securities LLC, by email to dg.prospectus-distribution@bofasecurities.com or by mail to Banc of America Securities LLC, Capital Markets Operations, 100 West 33rd St, 3rd Floor, New York, NY, 10001.

Onex makes private equity investments through the Onex Partners and ONCAP family of Funds. Through these Funds, which have third-party capital as well as Onex' capital, Onex generates annual management fee income from third-party capital and is entitled to a carried interest on that capital. The third-party capital under management currently has a value of approximately $5.3 billion. Onex also has a Real Estate Fund and a Public Markets Fund.

Onex' operating companies have annual revenues of $28 billion, assets of $28 billion and 184,000 employees worldwide. These companies are in a variety of industries, including electronics manufacturing services, aerostructures manufacturing, healthcare, financial services, aircraft & aftermarket, metal services, customer management services, theatre exhibition, personal care products and communications infrastructure.

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 Robert M. Le Blanc (212) 582-2211