Dorel News

Dorel Acquires Belgium Juvenile Products Company.

Montreal, Quebec - 1/27/2009

Dorel Industries Inc. (TSX: DII.B, DII.A) today announced a further strengthening of its successful high-end European juvenile lines with the purchase of all of the outstanding shares of Belgium-based BABY ART bvba. Created in 2006, BABY ART bvba markets its products under the BABY ART and HOPPOP brands. The innovative baby products and accessories, feature outstanding modern designs, are highly popular with consumers and received rave reviews at Europe’s prestigious 2008 Cologne, Germany juvenile trade fair.

The purchase price was US$ 5.3 million (4.1 million Euros). The transaction, which will be immediately accretive to earnings, is being financed through debt.

High-end innovation

BABY ART is the worldwide leader in the distribution of an original and unique baby product which allows parents to instantly create the print of their baby’s hand or foot. (www.babyart.eu). The item is sold in 121 countries. Another innovation, Bato, the first double shell bath, maintains the desired temperature of baby’s bath for a longer period of time. Both BABY ART and HOPPOP (www.hoppop.eu) have won several prestigious international awards recognising the originality of their various concepts.

Dorel Juvenile Group Interim President, Hani Basile, commented that BABY ART founder, Christophe Verlinden, has demonstrated an extraordinary passion for design and innovation in the creation of the Company’s products. “Christophe has a remarkable eye for beauty and a dedication to quality which sets these items apart. This acquisition is particularly meaningful as it provides us with a range of high-end, one-of-a-kind specialty juvenile products. We are most excited about the potential they provide in the countless markets where Dorel operates.”

“We are eager to quickly integrate the BABY ART and HOPPOP lines into our marketing plans. Our strong relationships with our customers should result in meaningful synergies throughout our distribution networks,” said Dorel Europe President, Jean Claude Jacomin.

Earlier this month Dorel established a new juvenile platform in Brazil to maximize the strong potential in that country. Juvenile car restraints became obligatory in Brazil last June.

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 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. 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.