Dorel Sports continued to expand its bicycle business in South America
Wednesday by opening a subsidiary in Chile and acquiring one of its
dealers there.

Dorel Sports Chile S.A.  of Santiago de Chile,
will lead sales, marketing, distribution and customer service for all if
Dorel Sports brands, including Cannondale, GT, Schwinn, Mongoose, Sugoi
and the Brazilian brand Caloi in Chile and Peru. Dorel said it had also
acquired the assets of Intercycles, a Santiago-based bicycle retailer.
Dorel acquired Calois, which is Brazil's largest bicycle manufacturer,
in 2013.

A long-time distribution partner of Dorel Sports,
Intercycles will be an integral part of Dorel Sports Chile, with the new
division operating Intercycles' retail location.

Dorel Sports Chile will combine the extensive marketing,
logistical and distribution expertise of Dorel's existing juvenile
operations, which makes products for infants, in Chile with Intercycles'
market specific bicycle knowledge and Dorel Sport's global brand
expertise.

In addition to selling direct to mass retailers,
sporting goods and independent bicycle dealers (IBDs), Dorel Sports
Chile will expand the Intercycles retail concept to various locations
across the region.

“The launch of Dorel Sports Chile provides an excellent
opportunity to build on our presence in these areas where there is
significant growth potential for the bicycle industry,” said Martin
Schwartz, president & CEO for Montreal, Canada-based Dorel
Industries. “We are already well-established in Brazil with Caloi. In
addition, we
are associating with our existing juvenile partners in Chile. The
relationship established with them in 2011 has been most beneficial and
with their strong marketing expertise and local connections, we are well
positioned for further growth in South America.”