"A number of factors have placed the future viability of the plant in serious doubt."
Bob Klassen, head of Dorel Ready-to-Assemble furniture division

Dorel Industries announced today it is closing the Carina Furniture factory in Brampton, Ontario. Carina was acquired last September and is now part of Dorel's Home Furnishings segment. Bob Klassen, head of the Ready-to- Assemble furniture division, said the closure is in line with the Company's strategy of making optimum use of its manufacturing facilities. "Carina was purchased primarily for its sales, customer base and avenues of distribution. While the addition of Carina has provided important new retail markets for Dorel, a number of factors have placed the future viability of the plant in serious doubt."

Mr. Klassen said that unfortunately the Carina factory is unlikely to meet the Company's efficiency targets in a very competitive environment, especially as the strength of the Canadian dollar continues to erode margins. A significant portion of the Carina production will be transferred to the high efficiency Cornwall, Ontario facility.

"As the number two RTA furniture producer in North America, we must act decisively to serve our customers in the best possible manner," commented Mr. Klassen.

The consolidation will affect some 300 employees at the Brampton plant. Workers will be offered the option of relocating to the Cornwall, Ontario factory. The Company is also working with various provincial and federal departments to coordinate available programs with a view to assisting employees as much as possible. Carina will set up on-site resume clinics to help workers prepare for a transition to other jobs elsewhere. "Carina has good people and we are confident that most of them will be successful in finding new employment."

The cost of the closure will be incorporated into the cost of the acquisition and will have no negative impact on Dorel's 2004 earnings.