Dorel Acquires 55% Interest in Australian Juvenile Products Company - New unit to provide platform for growth



    Canada TSX: DII.B, DII.A
    U.S.A. NASDAQ:   DIIB

    MONTREAL, March 1 /CNW Telbec/ - Dorel Industries Inc. (TSX: DII.B DII.A;
NASDAQ:   DIIB) today announced a further strengthening of its Juvenile segment
with the purchase of a 55% interest in Australian company IGC (Australia) Pty
Ltd. Operating as In Good Care, IGC is a well established manufacturer and
distributor of juvenile products in Australia and New Zealand. Dorel has paid
cash consideration of US$2.5 million (AUD$3.2 million), and has assumed debt
in the amount of US$7.4 million (AUD$9.4 million) in return for the 55%
interest. The remaining 45% is owned by the current CEO, Mr. Robert Berchik,
who will continue to serve in that capacity.
    "This acquisition presents exciting opportunities for Dorel," stated
Martin Schwartz, President and CEO of Dorel Industries Inc. "We firmly believe
that working with an established company is the best way to accelerate our
growth prospects in Australia and nearby countries. Robert and his team have
built a strong business which we plan to grow even further through the
introduction of our diversified range of popular juvenile products. The
combination of IGC's established brands with those of Dorel will create a
powerful market force."
    "The transaction also provides a base from which to introduce other
products from Dorel's consumer products categories. We have tested this
all-encompassing strategy over the past two years with our Dorel Distribution
Canada division. The concept was designed to bolster sales and profits of the
Canadian unit and to serve as a model for possible future such ventures. With
the success of the Canadian venture, we will now put this formula to work in
Australia," concluded Mr. Schwartz.

    About IGC

    IGC, was established in Australia in 1974 by Robert Berchik with the
introduction of a range of prams and strollers. With time, the company has
augmented its juvenile product offerings and today is considered a leading
stroller and car seat specialist. IGC sells its products under a number of
well established brands in Australia, the most recognizable being Bertini and
Mother's Choice. Annual sales are approximately US$24 million (AUD$30 million)
and are made to major retail customers as well as to smaller specialist
outlets selling juvenile products.

    (1 US$ = $1.27 Australian)

    Profile

    Dorel Industries (TSX: DII.A, DII.B; NASDAQ:   DIIB) is a global consumer
products company engaged in the designing, manufacturing and marketing of a
diverse portfolio of powerful consumer brands, sold through its Juvenile, Home
Furnishings, and Recreational/Leisure segments. Headquartered in Montreal,
Dorel employs approximately 4,500 people in 14 countries. Dorel also has eight
offices in China, headquartered in Shanghai, which oversee the sourcing,
engineering and logistics of the Company's Asian supplier chain. 2005 sales
were US$1.8 billion.
    US operations include Dorel Juvenile Group USA, which markets the Cosco
and Safety 1st brands as well as Eddie Bauer and Disney Baby licensed
products; Ameriwood Industries, which markets ready-to-assemble furniture
products under the Ameriwood, Carina, SystemBuild, Altra Furniture and
Ridgewood brands; Cosco Home & Office, which markets home/office products
under the Cosco brand and Samsonite license as well as home healthcare
products under the Cosco Ability Essentials and Adepta brands; and Pacific
Cycle, which markets the Schwinn, Mongoose, GT, InSTEP, Playsafe and
Roadmaster brands. In Canada, Dorel operates Dorel Distribution Canada,
Ridgewood Industries and Dorel Home Products. Dorel Europe markets juvenile
products throughout Europe, under the Bébé Confort, Maxi-Cosi, Quinny, Safety
1st, Babidéal, Mon Bébé and Baby Relax brands. Dorel Asia sources and imports
home furnishings products.

    Caution Concerning Forward-Looking Statements

    Except for historical information provided herein, this press release may
contain information and statements of a forward-looking nature concerning the
future performance of Dorel Industries Inc. These statements are based on
suppositions and uncertainties as well as on management's best possible
evaluation of future events. The business of the Company and these
forward-looking statements are subject to a number of risks and uncertainties
that could cause actual results to differ from expected results. Important
factors which could cause such differences may include, without excluding
other considerations, increases in raw material costs, particularly for key
input factors such as particle board and resins; increases in ocean freight
container costs; failure of new products to meet demand expectations; changes
to the Company's effective income tax rate as a result of changes in the
anticipated geographic mix of revenues; the impact of price pressures exerted
by competitors, and settlements for product liability cases which exceed the
Company's insurance coverage limits. A description of the above mentioned
items and certain additional risk factors are discussed in the Company's
Annual MD&A and Annual Information Form, filed with the securities regulatory
authorities in Canada and the U.S. The risk factors outlined in the previously
mentioned documents are specifically incorporated herein by reference. The
Company's business, financial condition, or operating results could be
materially adversely affected if any of these risks and uncertainties were to
materialize. Given these risks and uncertainties, investors should not place
undue reliance on forward-looking statements as a prediction of actual
results.




For further information:

For further information: MaisonBrison/BarnesMcInerney: Rick Leckner,
(514) 731-0000; Dorel Industries Inc.: Jeffrey Schwartz, (514) 934-3034

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