Dorel Industries Ltd. is adding a significant new leg to
the Company's business by entering the bicycle industry through a major acquisition. The Company has signed a purchase agreement to acquire Wisconsin-based Pacific Cycle.

“Pacific Cycle sells more bicycles than anyone else in the U.S.
bicycle industry and its portfolio of powerful brands is one of the strongest
in the sporting goods industry. Its business model is very similar to ours and
provides numerous opportunities to significantly strengthen Dorel's position
as a global consumer products company,” stated Dorel President and CEO, Martin
Schwartz.

The total value of the all-cash transaction is US$310 million and is
being financed through additional debt facilities. The purchase is expected to
close within three weeks upon receipt of regulatory approvals. Pacific Cycle
is being purchased from an investment group led by Wind Point Partners, a
private U.S. equity investment firm.

Mr. Schwartz said Dorel has amended its current credit facilities to
accommodate both this acquisition and the Company's future cash flow needs.
“Debt is the most efficient and cost effective source of financing. This
acquisition, along with Dorel's existing businesses, will generate sufficient
cash flow to pay down debt.”

Pacific Cycle's annual sales are in excess of US$325 million. The
transaction will be immediately accretive and is expected to add at least
US$0.50 per share to Dorel's earnings in fiscal 2004, as well as at least an
additional US$0.25 per share due to the impact of the acquisition on the
Company's average tax rate.
Their broad
distribution has enabled Pacific Cycle to garner an industry-leading 27% share
of total U.S. bicycle sales including 44% of the bicycle sales in the mass
merchant sector.

Pacific's brand portfolio enables it to serve virtually all consumer
demographics, price categories and bicycling styles. With an 88% market
awareness, Schwinn is an American icon dating back to 1895 and has a
reputation for delivering high quality bicycles. It is one of the most widely
recognized brands in the sporting goods industry. Mongoose has a 73% market
awareness and is particularly well known in the aggressive, performance-
oriented BMX bicycle and freestyle riding market. The strength of Pacific's
brand portfolio also allows it to license its power brands domestically and
internationally, thereby delivering profitable revenue while expanding the
presence of the brands into additional product categories and markets.

“This transaction is consistent with our objectives and is aligned with
Dorel's strategy of growing our consumer goods to leverage the strong
distribution channels that we have developed. Pacific Cycle does in bicycles
what Dorel has been doing for years in juvenile and home furnishings products.
Both companies have developed high quality products through domestic design,
overseas sourcing and intensive marketing through long-established retailer
relationships. We intend to leverage Pacific's powerful brands to create a
platform for future growth in leisure and recreational products, including
natural extensions in our juvenile segment. Combined with Dorel's resources,
we are confident that Pacific's management will take the company to a new
level.”
Mr. Schwartz underlined Pacific's longstanding sourcing relationships,
citing its 25 years of experience in developing and sourcing quality products,
predominantly from third party manufacturers in Asia. “Pacific has
consistently been at the forefront of the overseas production model that now
dominates the U.S. bicycling industry. This closely parallels Dorel's
manufacturing model and I foresee great opportunities in working together.”

Pacific Cycle was founded by Chris Hornung in 1977. He began his career
in the bicycle industry while completing a degree in Economics. In 1980 he
began importing bicycles directly from suppliers in the Far East and developed
relationships with key U.S. retailers. He directed Pacific's purchase of
Brunswick Bicycles in 2000, as well as the bicycle assets of the Schwinn/GT
Corporation in 2001. Pacific will be run as a stand-alone Dorel division. As
part of the transaction, Dorel has established financial arrangements with key
Pacific Cycle executives that will ensure management continuity and provide a
powerful incentive to continue Pacific Cycle's strong performance.
The U.S. bicycle industry accounts for roughly US$5.5 billion in annual
sales. New bicycles represent some US$2.5 billion, while parts, accessories
and service total close to US$3.0 billion. Bicycle sales have averaged between
16 to 18 million units annually. “Pacific sells about 5 million bicycles each
year and, as the largest player, has the potential to gain additional share
through the added strength of Dorel.

“This is a very special day for Dorel. We have purchased a consumer
products company with a great deal going for it, including some of the best
known brands, powerful designs, established distribution channels, a highly
motivated management team and strong cash flow. Most importantly, Pacific
Cycle is an operation that is immediately accretive to earnings,” concluded
Mr. Schwartz.