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*** Dorel Reports 2nd Quarter Results ***

Montreal, Canada -- 08/12/2009



Dorel Industries Inc. (TSX: DII.B DII.A) today announced its
results for the second quarter ended June 30, 2009. Net income
was US$24.8 million or US$0.74 per diluted share compared with
US$31.3 million or US$0.94 per diluted share for the corresponding
quarter of 2008.

As described below, the 2009 results include significant mark
-to-market losses on foreign exchange contracts. These losses
totaled US$12.6 million in the second quarter and represent an
after tax amount of US$0.27 per diluted share.

Excluding these losses, diluted EPS for the second quarter this
year would have been US$1.01. This earnings improvement
was despite a decline in revenues for the period which slipped
7.2% to US$551.1 million from US$593.7 million for the same
period a year ago.

Year-to-date net income was US$52.8 million or US$1.58 per
diluted share compared to US$66.5 million or US$1.99 per diluted
share for the first half of 2008. Excluding year-to-date mark-to-market
losses on foreign exchange contracts, earnings were US$61.3 million,
or US$1.84 per diluted share. First half revenue was US$1.076 billion
or a decrease of 6.4% from the US$1.150 billion last year.

To protect itself from variations in foreign exchange rates and their
impact on the Company's cash flow, it enters into foreign exchange
forward contracts and other types of derivative financial instruments,
the great majority of which are at Dorel Europe within the Juvenile
segment.

As the Company does not follow the accounting practice of
"hedge accounting", non-cash "mark-to-market" gains and
losses are recognized, representing the difference between
the contracted exchange rate and the market rate on these
instruments at the end of a given accounting period.

Therefore, the gains and losses on these instruments are
recognized relative to fluctuations in current exchange rates
as opposed to the date of maturity of the contracts, when the
cash flow impact is recorded.

The majority of the unrealized losses booked in 2009 thus far
pertain to contracts that were in place as of December 30, 2008
on which the related unrealized gains were recorded in 2008.

"For the second consecutive quarter we have surpassed our
internal earnings forecasts due to the implementation of stringent
cost constraint measures, a focus on working capital management
and a more stable cost environment.

While sales are down, a significant percentage of the decrease
is attributable to foreign exchange translation. High-end bicycle
sales are still not where we want them to be as consumers remain
selective in their discretionary spending.

Overall, our divisions are performing well notwithstanding the
challenging economy. Product development remains a key driver
for Dorel. Exciting new products, such as our revolutionary Safety
1st Air Protect car seat, are being introduced to the market.

At this year's Tour de France two members of Team Liquigas,
riding Cannondale's new 2010 SuperSix road bike, finished in
the top ten and a third took the prestigious King of the Mountains
Polkadot Jersey.

This is the first time ever that a Cannondale sponsored team
had two riders finish in the top ten. These are examples of how
our R&D commitment will further grow our strong competitive
position," commented Dorel CEO and President, Martin Schwartz.

Second quarter Recreational / Leisure revenue increased
by 2.1% over 2008, and year-to-date this increase was 7.4%.
Excluding the impact of new business acquisitions and foreign
exchange variations, the segment's organic revenue decline
was approximately 5% for the quarter and 4% year-to-date.

Revenues within the segment's core bicycle business at the mass
merchant level were down from the prior year, but these declines
were offset by the contribution of the parts and accessories business
that was acquired late in June of 2008.

Bicycle sales by the Cycling Sports Group to the Company's
Independent Bike Dealers (IBD) and sporting goods customers
were also down as consumers are purchasing less of the Company's
high-end product or are trading down to lower priced items.

The Company also believes that the poor weather that was
experienced in most of North America throughout May and
June also has a negative impact on sales.

Gross margins and earnings from operations for the quarter
decreased from 2008, as did the year-to-date results. Gross
margin declines for the quarter and year-to-date were due
principally to a less profitable product mix as consumers
shifted to lower price point products.

Gross margins in the quarter were further negatively impacted
by foreign exchange variations including a mark-to-market loss
of US$1.1 million on foreign exchange contracts.

Costs associated with the previously announced re-organization
of the segment in the quarter totalled approximately US$0.3 million.

In July and August the Company announced the acquisitions of
certain assets of Iron Horse Bicycles, based in the United States,
and Australian-based distributor Gemini Bicycles. The Iron Horse
transaction of US$5.2 million comprised of inventory and various
trademarks and trade names, including the well-recognized "Iron
Horse" brand. At a cost of US$2.2 million, the assets acquired in
the Gemini purchase will be merged with Cannondale's existing
Australian operations under the new Cycling Sports Group (CSG)
Australia division and will be dedicated to the Independent Bike
Dealer (IBD) channel.

"I am particularly proud of our successes at this year's Tour
de France. Two riders on Team Liquigas riding Cannondales
finished in the top ten with Vincenzo Nibali placing seventh
and Roman Kreuziger placing ninth.

In addition, Franco Pellizotti won the prestigious King of the
Mountains Polka Dot Jersey. As we approach the 2010 model
year, early reaction to our new IBD product line has been out
standing and our pre-delivery order level is up significantly
from last year at this time.

Based on the feedback we have received thus far, we believe
we will increase our bike sales next year to the IBD retail chain,
regardless of the economic situation," commented Mr. Schwartz.

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

For full report see:
www.newswire.ca/en/releases/archive/August2009/12/c4337.html
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