Dorel Industries announced today it has signed and closed a purchase agreement for all of the shares of Toronto-based Carina Furniture Industries Ltd., North America's fastest growing ready-to-assemble (RTA) furniture manufacturer. The addition of Carina makes Dorel the number two RTA furniture producer in North America and will allow the Company to strengthen retail sectors where it has not had a solid share of the market.

"This is a highly strategic complement to our current RTA furniture operations. Carina has excellent relationships in the office superstore and do- it-yourself retail chains in both the United States and Canada and opens markets where traditionally we have not been strong. A consistent strength of Dorel has been our ability to create solid distribution channels and then use them to efficiently market new product lines. Carina adds exciting new opportunities for the Company at a time when the RTA furniture market is consolidating," stated Dorel President and CEO, Martin Schwartz.

Fastest growing RTA manufacturer in North America

Carina Furniture Industries, with its brands Carina and SystemBuild, is an industry leader. Its state-of-the-art technology includes the latest in computerized design and production capabilities geared to provide quality mass production with maximum flexibility.

Carina partners directly with some of the best known retailers in North and South America including: Lowe's, Menards, OfficeMax, Staples, Home Depot, Home Hardware, and Wal-Mart Canada. The Company has received a number of awards for its quality and service from retail customers.

Sales for its last fiscal year, ended July 31, 2003, were approximately US$60 million. The Company has been the fastest growing RTA furniture manufacturer in North America during the past two years and experienced a 40% increase in revenue during the past year alone. Carina's operations will be integrated within Ameriwood, Dorel's RTA furniture division.

The transaction is immediately accretive to Dorel. Carina is expected to add US$0.02 per share this year. The purchase is being financed through internally generated cash flow and from existing lines of credit. No additional financing is required. The purchase price was not disclosed.

"The timing of this latest acquisition could not be better", said Mr. Schwartz. "The existing retail environment has created an excellent opportunity for such a purchase and our strong financial situation allows us to move forward with the deal. We are confident that we will gain important market share and, as such, anticipate a stronger second half in our Home Furnishings segment," concluded Mr. Schwartz.