Montreal, May 2012 — Dorel Industries Inc. (TSX: DII.B, DII.A) today released results for the first quarter ended March 31, 2012. Revenue rose 2.2% to US$621.1 million from US$607.8 million a year ago. Net income was US$29.2 million or US$0.91 per diluted share, compared to last year’s US$31.2 million or US$0.94 per diluted share.

Noting that the first quarter of 2011 was the prior year’s strongest, Dorel President and CEO Martin Schwartz said that momentum thus far in 2012 is good after a tough 2011. 
“Last year was characterized by a good start, difficult second and third quarters and a reversal of that negative trend in the final quarter. I am pleased that we are continuing to move in the right direction. Recreational/Leisure continued to drive results, posting its best quarter ever on the back of a strong 2011. Powered by brand building, continuing innovation and growing distribution across the globe, sales grew
in both the IBD and mass merchant channels. There has also been operational improvement at our Apparel Footwear Group (AFG).
“In the Juvenile segment, first quarter 2012 operating profits approached a level not seen since the beginning of last year. While there remain issues to contend with, we have made considerable progress. We are feeling more encouraged about our US juvenile business and we must continue to work hard to make it better. Despite the difficult economy in many European countries, we have solid operations there which
have performed well under challenging circumstances. Brazil is recovering as planned
and Chile is performing well, as expected.
“In Home Furnishings sales were up quarter-over-quarter, however product mix dampened margins. The growing importance of the Internet retail distribution channel for Home Furnishings has continued into 2012 and still offers even more opportunity for us. Corporate-wide, we have done a good job in maintaining the proper inventorylevels which should translate into the generation of solid cash flow in 2012,” concluded
Mr. Schwartz.

Recreational/Leisure Segment

The revenue growth of 2011 continued into the first quarter of 2012 with sales increasing in the IBD channel in the U.S., Europe and Japan. The Cannondale, GT, and Mongoose brands are doing especially well in Europe. CSG Canada also contributed to the sales growth with strong spring shipments to certain key customers. While more modest, sales were also up to the segment’s mass merchant customers as favorable weather conditions helped drive consumer demand. Operating profit for the quarter was the highest ever in the segment’s history, dating back to 2004. The AFG apparel division was a positive contributor to earnings and its turnaround is on track.

“Juvenile had its best quarter since the same period a year ago and we are encouraged that things are moving in the right direction. Operational improvements and new product introductions will help drive the turn around. This, along with the contribution of Dorel Chile as well as earnings improvements in Brazil, make us confident that 2012 will be better than 2011.
While our juvenile divisions around the world are well positioned within their respective marketplaces, uncertain economic conditions and volatility in currencies leave us cautious about our outlook,” commented Mr. Schwartz.
“Dorel’s bicycle business continues to grow its revenues and earnings, and all indications are that this momentum will be maintained. Sales improved from the fourth quarter and this positive trend should continue. While still a small part of the Recreational/Leisure segment, there has been substantial improvement in the AFG apparel division and this will also help earnings. 
The Home Furnishings segment experienced a challenging second quarter in 2011 and we are expecting this
year's second quarter to be better than last year. The segment is expecting continued growth in the already strong Internet retail channel,” concluded Mr. Schwartz.

About Dorel Industries:

Dorel Industries Inc. (TSX: DII.B, DII.A) is a world class juvenile products and bicycle company. Now in its 50th year, 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, IronHorse and SUGOI in Recreational/Leisure. Dorel’s Home Furnishings segment markets a wide assortment of both domestically produced and imported furniture products, principally within North America. Dorel has annual sales of US$2.4 billion and employs 5,000 people in facilities located in twenty-two countries worldwide.

Website : http://www.dorel.com/

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