Dorel Industries posted a record quarter in sales citing
continued organic growth at Dorel Juvenile Group USA and the benefits of Pacific Cycle. Total revenues for the first quarter ended March 31, 2004 were up 41.5% to US$391.8 million, compared to US$276.9 million posted a year ago.

First quarter sales underline the positive results of Dorel's intensive, on-going product development efforts. “Over the past several months numerous
new products have been introduced, in both our Juvenile and Home Furnishings Segments. This has particularly augmented juvenile sales in the United States,
continuing the marked improvement which began during the fourth quarter of 2003. The biggest issue of the quarter was high particle board prices and their impact on ready-to-assemble furniture margins. We foresee improvement
going forward as the RTA furniture industry implements higher selling prices,” commented Mr. Schwartz.

Pacific Cycle had a strong first quarter, and is included in results for approximately two months. The acquisition of the bicycle and recreational products company was concluded February 4, 2004.

As previously announced, the Company is recording a charge in the amount
of US$6.5 million pre-tax due to a dispute with one of its insurance carriers over the aggregate amount of insurance available to the Company, including one claim that came due this month. This amount is equivalent to a US$0.13 per
share after-tax impact. After accounting for this expense, earnings were US$19.6 million or US$0.60 per share, compared to US$19.2 million or US$0.60 per share for the first quarter of 2003. Excluding this charge, earnings for
the first quarter would have been US$23.9 million or US$0.73 per share.

As a result, Dorel is reducing its guidance for fiscal 2004 by US$0.13 per share, to earnings of between US$3.12 to US$3.22 per share.

Dorel is initiating legal action against TIG Specialty Insurance Solutions, a subsidiary of Fairfax Financial Holdings Inc. “We anticipate a favourable decision and any recovery will be included in our net income in
future periods,” stated Mr. Schwartz.

Recreational/Leisure


2004 was the first quarter that includes the results of newly acquired Pacific Cycle. Upon acquisition, guidance was issued for sales of between US$335 million and US$375 million for the 11 months of 2004. Earnings from operations as a percentage of sales were anticipated at between 11.5% and 12.5%. The results for the first quarter are in line with these expectations as sales of Pacific Cycle products for February and March were US$52.0 million. Earnings from operations were US$6.0 million.

Bicycle industry sales in the first quarter were slightly stronger than last year. Late in the quarter, Pacific Cycle began shipping major customers the new Schwinn Sting-Ray, a modern day version of the classic Sting-Ray.
Response has been very strong, with several large retailers immediately increasing their initial orders. Pacific Cycle is doubling its monthly production in anticipation of the growing demand.

“While the first quarter has provided us with comfort in that we have successfully faced a number of challenges, it is prudent to maintain our cautious outlook for the year. Bicycle sales are expected to strengthen as we move deeper into the spring due to the stronger U.S. economy and better weather relative to last year. The new Sting-Ray is shaping up to be the most exciting new bicycle ntroduction in over a decade,” concluded Mr. Schwartz.

                            DOREL INDUSTRIES INC.
                      CONSOLIDATED STATEMENT OF INCOME
            FOR THE THREE MONTHS ENDED MARCH 31, 2004 (unaudited)
         ALL FIGURES IN THOUSANDS OF US $, EXCEPT PER SHARE AMOUNTS
                                                           2004         2003
    Sales                                               388,436      276,319
    Licensing and commission income                       3,409          566
                                                    ------------ ------------
    TOTAL REVENUE                                       391,845      276,885
                                                    ------------ ------------
    EXPENSES
      Cost of sales                                     302,241      202,465
      Operating                                          48,781       34,741
      Amortization                                        8,952        7,263
      Research and development costs                      1,732        1,793
      Interest on long-term debt                          6,558        3,111
      Other interest (earned)                               163           (4)
                                                    ------------ ------------
                                                        368,427      249,369
                                                    ------------ ------------
    Income before income taxes                           23,418       27,516
      Income taxes                                        3,816        8,267
                                                    ------------ ------------
    NET INCOME                                           19,602       19,249
                                                    ------------ ------------
                                                    ------------ ------------

    EARNINGS PER SHARE
      Basic                                                0.60         0.61
                                                    ------------ ------------
                                                    ------------ ------------
      Diluted                                              0.60         0.60