Dorel announced new initiatives by its Pacific Cycle
division aimed at leveraging the strength of its Schwinn brand. Schwinn has launched a new category of four-stroke gas-powered motor scooters. It has also unveiled add-ons to the highly popular Sting-Ray chopper-style bike, which was voted outdoor Toy of the Year for 2004 at a New York City gala on Saturday.

Schwinn introduced the first models of its new line of motor scooters at
the 2005 Dealernews International Powersports Dealer Expo in Indianapolis,
Indiana. Three 50cc models were showcased; the Schwinn “Campus,” the Schwinn
“Collegiate” and the Schwinn “Graduate.” Each model is currently available in
two colors and will feature the Schwinn Quality Seal. Schwinn plans to launch
additional models through 2005 in the 80cc or 125cc engine category.

“Schwinn is a highly trusted name in the wheeled goods category and is
one of the most recognized and respected brands in the US,” said Dorel
President and CEO, Martin Schwartz. “Weve had great success with a variety of
Schwinn-branded wheeled goods, and gas powered scooters are a natural
extension of the Schwinn brand.

“The motor scooter market is the fastest growing motorcycle segment.
According to Powersports Business, a popular motorcycle industry trade
magazine, motor scooter sales grew at a rate of 18% in 2003. 2004 total U.S.
scooter sales are estimated to be well over 100,000 units.

“The motor scooter market is booming,” said Pacific Cycle CEO, Chris
Hornung. “This new, high quality product represents an opportunity to
motorcycle dealers and bicycle shops that can accommodate gas-powered mobility
products. Schwinn Motor Scooters will bring additional traffic and sales to
independent bicycle dealerships.”

Pacific has also launched three new Schwinn Sting-Ray models for 2005;
the Sting-Ray Three, a three-speed version of the highly popular 20″ Street
Series chopper; a classic Grey Ghost Five-Speed; and a Classic purple Sting-
Ray. A 26″ adult model of the Sting-Ray is now available as well.

The 20″ Street Series Schwinn Sting-Ray went on to become what Schwinn
believes to be the fastest selling bicycle of all time, and has won the 2004
Toy of the Year award for the best outdoor toy at the fifth-annual
International Toy Fair Awards, hosted this past weekend by the Toy Industry
Association.

“Market research indicates that our chopper bicycle style is not simply a
trend and that the Schwinn Sting-Ray has created great demand for this new
category of bicycle. The research also shows that kids dont want just any
brand of chopper bicycle – theyre specifically looking for the Schwinn Sting-
Ray name,” commented Mr. Hornung.