Driven by solid organic growth and new product introductions, Dorel reported a strong quarter of revenues and earnings. Revenues for the first quarter ended March 31, 2005 rose 19% to $465.6 million, compared to $391.1 million posted a year ago. Earnings for the period increased 40.2% to $27.2 million or $0.83 per share, fully diluted compared to $19.4 million or $0.59 per share for the first quarter last year.

Recreational/Leisure revenue was up 52.6% to $82.3 million from $53.9 million. 2005 first quarter results include three months as compared to two months in 2004, as Pacific Cycle was acquired in February of 2004. Excluding the extra month, and despite the poor spring weather experienced throughout much of the US, revenues still increased by 30% over the prior year. Earnings from operations rose 34.6% to US$8.7 million from
US$6.5 million. Excluding January, traditionally the least profitable month of the year in the bicycle industry, the segment earned US$9.2 million. As a result, for the comparable two month period of February and March, earnings
were up by 42%.

“Revenues grew in all three segments, with considerable organic increases
in all sectors, particularly in juvenile which accounted for approximately one
half of the overall improvement. North American juvenile revenues were the
highest ever in a particular quarter. The first quarter's strong performance
was achieved despite some on-going pressure on margins, mostly due to the
continued high price of resin and other raw materials. Overall this has been a
satisfying three months and a good start to another exciting year,” commented
Martin Schwartz, President and CEO.

	
	
	    <<
	    -------------------------------------------------------------------------
	                       Summary of Financial Highlights
	    -------------------------------------------------------------------------
	                        First quarter ended March 31
	    -------------------------------------------------------------------------
	         All figures in thousands of US $, except per share amounts
	
	                                             2005          2004      Change %
	    -------------------------------------------------------------------------
	    Revenue                               465,574       391,114         19.0%
	    Net income                             27,205        19,400         40.2%
	      Per share - Basic                      0.83          0.59         40.7%
	      Per share - Diluted                    0.83          0.59         40.7%
	    -------------------------------------------------------------------------
	    Average number of
	    shares outstanding -
	    diluted weighted average           32,959,283    32,886,099
	    -------------------------------------------------------------------------
	
	

Juvenile segment first quarter revenues increased 15.7% to
US$238.3 million from US$205.9 million, while earnings from operations rose
53.6% to US$27.5 million from US$17.9 million a year ago. Juvenile organic
revenue growth was close to 13%, with the balance of the increase coming from
the conversion of Euro and Canadian dollar denominated revenue into US dollars
at a higher rate of exchange in 2005. These increases were across multiple
product categories. In addition, new booster seat legislation in the US is
having a positive effect as a number of states begin to introduce expanded
rules for the use of car seats for older infants.

In Europe, organic revenue growth was 8% with all three major operating
groups posting increases. Particularly strong gains occurred in Germany and
Italy, where the Loola, Buzz and Zapp travel systems, incorporating strollers
and car seats, are being well received. Margins in Europe, which improved
slightly over the prior year, remain higher than in North America. Improved
operational performance in Holland and the stronger Euro were the principal
reasons. In North America, US margins were negatively impacted by raw material
prices. Resin, a major component of many juvenile products, on average, cost
50% more than at this time last year.

In the first quarter of 2004, Dorel had recorded additional operating
expenses of US$6.5 million due to a dispute with one of its insurance
carriers. In the first quarter of 2005 an amount of US$9.8 million was
received in connection with this dispute. Offset by other product liability
settlements, the net impact in the quarter was a reduction in operating
expenses of US$1.8 million. As a result, the year-over-year impact was an
improvement in net income of US$4.8 million after tax.

Total revenues in the Home Furnishings segment increased by 10.5% to
US$145 million from US$131.2 million last year. Earnings from operations grew
21.1% to US$10.8 million from the previous year's first quarter of
US$8.9 million. Combined sales of furniture by both Ameriwood and Dorel Asia
accounted for 60% of the increase. Successful new product placements in
several categories by Dorel Asia and good retail acceptance of newly designed
futons were the principal reasons for the increases. Cosco Home & Office sales
of folding furniture and other imported home furnishings accounted for the
remaining 40% of the overall segment increase. Cosco Home & Office was named
Wal-Mart's 2004 Vendor of the Year in the hardware department.

RTA furniture gross margins were consistent with 2004 levels as factory
efficiencies remain below plan, though they are anticipated to improve in the
second quarter. Raw material costs remain high and continue to pressure
margins. Board prices have declined from the late fiscal 2004 levels, but are
currently 5% higher than in the first quarter of last year. Improved margins
on futons were offset by a greater proportion of lower margin imported items
sold by both Cosco Home & Office and Dorel Asia. As a result, overall, the
segment's gross margins remained similar to last year's first quarter.

"During the first quarter we continued to make gains in all three
segments, with organic revenue growth of over 14%. New products are being
rolled out across all our businesses and we are encouraged by the reaction of
our customers to them. Home Furnishings introduced several new lines at the
April High Point furniture show, including a new generation of futons and
additional RTA furniture models with attractive wood fronts. We are also
making some progress in RTA furniture margins. In bikes, we have introduced
several new models including adult units, 3 and 5 speed versions as well as
the electric Sting-Ray," concluded Mr. Schwartz.

	
	
	                            DOREL INDUSTRIES INC.
	                      CONSOLIDATED STATEMENT OF INCOME
	            FOR THE THREE MONTHS ENDED MARCH 31, 2005 (unaudited)
	         ALL FIGURES IN THOUSANDS OF US $, EXCEPT PER SHARE AMOUNTS
	
	                                                           2005         2004
	
	
	    Sales                                          $    459,295 $    387,705
	
	    Licensing and commission income                       6,279        3,409
	                                                   ------------ -------------
	
	    TOTAL REVENUE                                       465,574      391,114
	                                                   ------------ -------------
	
	    EXPENSES
	      Cost of sales                                     356,405      295,913
	      Operating                                          55,749       54,529
	      Depreciation and amortization                       9,673        9,386
	      Research and development costs                      2,190        1,698
	      Interest on long-term debt                          7,518        6,554
	      Other interest                                        157          169
	                                                   ------------ -------------
	                                                        431,692      368,249
	                                                   ------------ -------------
	
	    Income before income taxes                           33,882       22,865
	
	      Income taxes                                        6,677        3,465
	                                                   ------------ -------------
	
	    NET INCOME                                     $     27,205 $     19,400
	                                                   ------------ -------------
	                                                   ------------ -------------
	
	
	    EARNINGS PER SHARE
	      Basic                                        $       0.83 $       0.59
	                                                   ------------ -------------
	                                                   ------------ -------------
	      Diluted                                      $       0.83 $       0.59
	                                                   ------------ -------------
	                                                   ------------ -------------
	
	    SHARES OUTSTANDING
	      Basic - weighted average                       32,802,978   32,646,534
	      Diluted - weighted average                     32,959,283   32,886,099