Dorel Establishes Juvenile Platform in Brazil - New initiative to capitalize on country's strong market potential


    MONTREAL, Jan. 6 /CNW Telbec/ - Dorel Industries Inc. (TSX: DII.B DII.A)
today announced it is establishing Companhia Dorel Brasil Produtos Infantis
(Dorel Brazil), a new operating division of the Company's Juvenile segment.
"Brazil holds tremendous promise and we are well positioned to benefit from
the excellent market opportunities that exist there. This is yet another
strategic move to further secure Dorel's dominance as a global leader in the
juvenile products industry," stated Dorel Juvenile Group President Camillo
    Dorel has identified a local partner with solid experience in the
juvenile sector to act as President of the new venture. Rafael Anjos Camarano
is well respected in industry circles and has established relations in all of
Brazil's retail channels. His knowledge will serve the new company well in
identifying local consumer trends and preferences. In the past, Mr. Camarano's
firm has represented Safety 1st in the Brazilian market. Dorel will be the
majority shareholder of the new venture.
    Mr. Lisio said that after carefully analyzing the potential market in
Brazil, despite current economic conditions and currency issues, it was
determined that there are still a number of compelling reasons to support
Dorel's foray into the country.
    "Importantly, car seats became mandatory in Brazil in June 2008 and
demand has escalated. As the world's largest car seat manufacturer, we will
maximize our internal assets and will be able to quickly ramp up the
manufacture of car seats locally. Dorel already has the necessary car seat
moulds and thus we will save both time and significant costs. As such, our
total investment is under $4 million. There is room for more contemporary
designs in the market and Dorel has a proven track record of providing a wide
range of exciting products."
    He also pointed out that competition in Brazil is fragmented, and the
country has a young population with a very high birth rate of 18.72 per 1000
population compared to the U.S. rate of 14.18 births per 1000 population. With
over 196 million residents, Brazil is ranked 7th in world population.
    "Dorel has the global scope and the experience to maximize the prospects
in Brazil. We look forward to building this platform into a very meaningful
component of our Juvenile segment," said Dorel President and CEO Martin
    Dorel Brazil will be operational almost immediately with multiple brands
and products to meet all price points in all retail channels. First year
revenue is anticipated to be at least US$10 million and it is expected that
the business will grow significantly over the next couple of years.


    Dorel Industries Inc. (TSX: DII.B, DII.A) is a world class juvenile
products and bicycle company. Established in 1962, Dorel creates style and
excitement in equal measure to safety, quality and value. The Company's
lifestyle leadership position is pronounced in both its Juvenile and Bicycle
categories with an array of trend-setting products. Dorel's powerfully branded
products include Safety 1st, Quinny, Cosco, Maxi-Cosi and Bébé Confort in
Juvenile, as well as Cannondale, Schwinn, GT, Mongoose and SUGOI in
Recreational/Leisure. Dorel's Home Furnishings segment markets a wide
assortment of furniture products, both domestically produced and imported.
Dorel is a $2 billion company with 4600 employees, facilities in seventeen
countries, and sales worldwide.

    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

For further information:

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

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