Dorel creates two distinct bicycle divisions following Cannondale acquisition



    EXCHANGES  TSX: DII.B, DII.A

    
        -  New Division established exclusively for Independent Bicycle
           Dealer channel

        -  Pacific Cycle to concentrate on mass merchant category
    

    MONTREAL, Feb. 4 /CNW Telbec/ - Dorel Industries Ltd. (TSX: DII.A,
DII.B;) today announced it is re-organizing its Recreational/Leisure segment
to create two distinct bicycle divisions to deal separately with the
Independent Bicycle Dealer (IBD) and mass merchant channels. The changes are
being made to coincide with today's announced acquisition of the Bethel,
Connecticut-based Cannondale Bicycle Corporation. The purchase also includes
the Sugoi Performance Apparel Company.
    A new Dorel Independent Bicycle Dealer (IBD) Division, the Cannondale
Sports Group, is being established and will devote all of its energies and
resources exclusively to this channel. The Cannondale Sports Group will
encompass Cannondale, Sugoi, GT and other premium-oriented brands, and will
seek acquisitions in similar high quality, performance bicycle companies. Jeff
Frehner, who has been President of Pacific Cycle for three years is leaving
that position immediately to return to his roots in the bike business and will
oversee the Cannondale Sports Group as President. The current Cannondale
management team, headed by President and CEO, Matt Mannelly, will continue to
run Cannondale within that group.
    "I'm a diehard biking enthusiast. I love this space and am thrilled to be
able to focus all of my energy on the IBD channel. With Cannondale and Dorel's
resources, the sky is the limit. High quality, innovation and passion, this
will be the DNA of our new division," said Jeff.
    "This is an excellent strategic fit for Cannondale and a testament to all
the hard work of Cannondale employees worldwide. This provides us with
tremendous resources to continue to build our innovative brand. It also
creates long term stability that will help us achieve our leadership goals in
the IBD channel. We're excited to be the leading brand in Dorel's new IBD
division. The end result will be a continuous flow of innovative product to
our Dealers and consumers," commented Matt.
    "Dorel recognizes that doing business with the IBD and mass merchant
categories is two very different things and requires distinct strategies and
specialized people selling the best products for those channels. We clearly
realize this and are making the necessary adjustments to best meet the needs
of our customers," stated Dorel President and CEO, Martin Schwartz.
    Pacific Cycle, purchased by Dorel in 2004, will now be a stand-alone
division focused on the mass merchant channel. Alice Tillett, who has been
Executive Vice President, Mass and Sporting Goods Channel at Pacific Cycle,
has been named President. With 18 years experience in the sector, 10 of those
in the bike industry, Alice has a thorough knowledge of the mass and sporting
goods sector and has engineered Pacific's growth in this channel.
    Mr. Schwartz said the Cannondale transaction underlines the Company's
plan to further unlock shareholder value by concentrating on Dorel's core
Recreational/Leisure and Juvenile segments, which provide the greatest
potential. "We are committed to pursuing this strategy, and this important
transaction positions us globally in a most material way. Dorel recognizes the
importance and potential of the Independent Bicycle Dealer channel and is
purchasing Cannondale as the first step to become the world's number one IBD
player."

    Conference Call

    Dorel Industries Inc. will hold a conference call to discuss the
Cannondale acquisition today at 10:30 A.M. Eastern Time. Interested parties
can join the call by dialling 1-800-732-9307. The conference call can also be
accessed via live webcast at www.newswire.ca or www.q1234.com. If you are
unable to call in at this time, you may access a tape recording of the meeting
by calling 1-877-289-8525 and entering the passcode 21261172# on your phone.
This tape recording will be available on Monday, February 4, 2008 as of 12:30
P.M. until 11:59 P.M. on Monday, February 11, 2008.

    Profile

    Dorel Industries (TSX: DII.B, DII.A) 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,
Recreational/Leisure and Home Furnishings segments. Headquartered in Montreal
and with significant operations in the United States and Europe, Dorel employs
approximately 4,700 people in 15 countries. Annual sales are US$1.8 billion
and are made in over 60 countries worldwide.
    US operations include Dorel Juvenile Group, which markets the Cosco and
Safety 1st brands as well as Eddie Bauer and Disney Baby licensed products;
Pacific Cycle, which markets several brands including Schwinn, Mongoose, GT,
InSTEP, Playsafe and Roadmaster; and 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.
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.
Dorel is the majority owner of In Good Care (IGC), a manufacturer and
distributor of juvenile products in Australia, whose two principal brands are
Bertini and Mother's Choice. Dorel also has eight offices in China,
headquartered in Shanghai, which oversee the sourcing, engineering and
logistics of the Company's Asian supplier chain.

    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: Rick Leckner, (514) 731-0000;
Dorel Industries Inc.: Jeffrey Schwartz, (514) 934-3034

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Dorel Industries Inc.

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