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Dorels Recreational Leisure Segment Adds Another
Strong Brand With Purchase Of Iron Horse Assets

Montreal, Canada -- 07/15/2009



Dorel Industries Inc. (TSX: DII.A, DII. B; ) today
announced that it has acquired certain assets of
Iron Horse Bicycles, including inventory, various
trademarks and trade names, as well as the "Iron
Horse" brand, in a transaction valued at US$5.2 million.

The assets were acquired in a bankruptcy auction by
Iron Horse's secured lender following that company's
decision to suspend operations for financial reasons.

Iron Horse, marketed throughout North America,
internationally, is best known for its downhill and
extreme trail bikes. Founded in 1987 in New York,
Iron Horse Bicycles quickly established themselves
as a market force.

They gained their reputation with lightning-quick
and superb handling bikes that placed them on the
international racing stage.

Iron Horse has carried a strong roster of professional
athletes, including: Dave Cullinan, Kim Sonier, Penny
Davidson, Toby Henderson, Leigh Donovan, "Pistol"
Pete Loncarevich and Sam Hill. In addition to downhill
and extreme trail bikes, Iron Horse products range
from mountain bikes, road bikes, and comfort bikes
to juvenile bikes and hybrids.

Iron Horse has also received numerous accolades,
including the 2003 Mountain Biking Magazine's "Bike
of the Year" award. The brand is recognized as one
of the best in the industry. Sales in 2008 were US$25
million globally.

The transaction adds yet another highly recognized
name to Dorel's portfolio. "Adding Iron Horse to our
stable of existing world-class bicycle brands, such
as Cannondale, Schwinn, GT and Mongoose, brings
depth to our mountain bike offerings," said Robert
Baird, President of Dorel's Recreational/Leisure
segment.

"With growing interest in mountain biking and racing,
the addition makes Dorel better suited to reach new
retailers and, in turn, consumers."

"This latest purchase is in line with the strategic road
map we have developed to build our bicycle business
into the leading global bicycle company," stated Dorel
President and CEO, Martin Schwartz.

"While their 2008 sales were US$25 million, we are
confident we can significantly grow this number.

Iron Horse is another excellent brand that we will
be able to leverage through our vast resources.

The purchase price was most favourable and we
look forward to an excellent return on this investment."

Profile

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 t
rend-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 US$2.2 billion company with 4700 employees,
facilities in eighteen countries, and sales worldwide.
________________________________________________________

*** Dorel Buys Iron Horse Bicycle Co. ***

Central Islip, NY -- 07/14/2009



Dorel Industries purchased Iron Horse Bicycle Company for
$5.2 million in an auction Monday in federal bankruptcy court.

The deal is scheduled to close on Wednesday.

Dorel owns Pacific Cycle, along with Cannondale,
GT, Mongoose and Schwinn brands.

Four other companies Kent International, Care Bicycles, d**k's
Sporting Goods and Outdoor Cycle Group, a company owned by
the son of Iron Horse president Cliff Weidberg also submitted bids
for Iron Horse.

Taking place in a small room of over 30 lawyers, company
executives and Department of Justice officials, the bidding
process was heated but decorous.

The respective parties place over 90 bids by the end of the
six-hour process. The dramatic highlight came after Kent and
Care withdrew from the auction, and Outdoor Cycle formed a
bidding coalition with Care in an attempt to muscle out deep
pocketed Dorel.

Both Weidberg and his son, Randall Scott, were present for the
auction. Though all parties maintained their civility through out
the process, the mood in the room became strained as Weidberg,
counsel Andrew Thaler, and a coterie of accountants were forced
to leave the auction room numerous times to discuss whether
each offer was actually of greater value than the last.

Because of the variety of notes, bullet notes and interest
arrangements that could accompany each bid, the group
was forced to recess to establish a valuation for more complex
bids, so that other bidders could up the ante accordingly.

Bidding opened at $2.775 million in cash and increased in
increments of $25,000. Though Outdoor Cycle's one-time pre-
auction bid of $5.2-plus million in cash, notes and revenue-sharing
would likely have been the most lucrative for the estate over time,
Judge Alan Trust ruled yesterday afternoon that Pacific's all-cash
offer of $5 million plus a $220,000 one-year note was best for the
involved parties.

The sale includes existing Iron Horse inventory, as well
as any trademarks and patents owned by the company.

According to the purchase agreement, Dorel will also pay
CIT Group, Iron Horse’s secured lender, $220,000 on the
first anniversary of the closing date of the sale. CIT Group
will pay a carve-out of at least $150,000 to the Iron Horse’s
unsecured creditors.

Iron Horse was forced into bankruptcy in March by three Asian
suppliers who were due more than $5 million in back debt. The
company owes another $17 million to dozens of other unsecured
creditors, as well as about $4 million to CIT Group.

The bankruptcy sparked a blame game between former principals
of the company with president Cliff Weidberg filing a civil lawsuit
against former longtime vice president Stewart Barnett and former
chief financial officer Nick Aversano accusing the two of falsifying
financial statements to inflate the value of the failing company.

Suspension designer Dave Weagle is also pursuing litigation
against Iron Horse for back debt; that suit will now fall to
Dorel for resolution.

According to Doug Pick, counsel for Outdoor Cycle and Randall
Scott, the online retailer may strike an agreement with Dorel's
Pacific Cycle to purchase the remaining bicycles in inventory at
Randall Scott's Colorado warehouse, so that they can continue
selling them online. “Outdoor [Cycle] has a lot of respect for
Pacific's ability and talent,” Pick said, “and we hope to have
a long term relationship with them.”

Those talks will be initiated at the end of the week,
once the sale is finalized on Wednesday, July 15.
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Reporting The BMX News & Information
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