Onex To Acquire Kodak Health Group

Onex Corp. (Toronto, Canada) announced that it will
acquire the Health Group of Eastman Kodak Co. (Rochester, NY, USA) in a transaction initially valued at approximately US$2.78 billion (US$2.35 billion).

Kodak Health Group is a leading provider of medical imaging and
healthcare information technology system. Its range of products include digital x-ray systems, molecular imaging systems and x-ray film, as well as dental imaging products, software, and services. As part of the transaction, Onex will also acquire Kodak's non-destructive testing business, which sells x-ray film and digital x-ray products into the non-destructive testing market. Aggregate revenues of the businesses being acquired were about $3.0 billion (US$2.54 billion) for the 12 months ended September 30, 2006.

"This is a great opportunity to acquire and grow a business that has
established an extraordinary record in delivering innovative solutions to customers around the world. We are very impressed with the Health Group's world-class products in every sector: medical, dental, molecular maging, and non-destructive testing,” said Robert M. Le Blanc, an Onex managing director. "The Kodak Health Group has an exceptionally strong management team and we share this team's vision for the future. We recognize that growth is critical and that digital technology is the future and we believe strongly that customers and employees must continue to be a top priority,” Mr. Le Blanc emphasized.

"We are delighted to join Onex, a partner that shares our enthusiasm to grow our business. This transaction creates an extraordinary
opportunity for our global organization to meet the growing medical imaging and information needs of the healthcare community now and into the future,” said Kevin J. Hobert, president of Kodak's Health Group. "Onex has a long track record of acquiring businesses and working with them to achieve superior growth and operational excellence. Onex's expertise and its commitment to this business, together with the Health Group's proven product portfolio, worldwide presence, and highly talented employee base will result in tremendous opportunities to provide the best in customer
service.”

"Onex is an ideal acquirer of Kodak's Health Group because they
understand the health industry and are committed to growing the business for the benefit of customers and employees,” added Antonio M. Perez, Kodak's chairman and CEO. "I'm very pleased that we have such a favorable outcome for all of our constituents.”

The acquisition agreement provides that if Onex Partners realizes an
internal rate of return in excess of 25% on its investment, Kodak will receive payment equal to 25% of the excess return up to $200 million.

The transaction is subject to customary regulatory approvals and
closing is anticipated in the first half of 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.




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