Dorel Industries Inc. has released third quarter / nine month results for the period ending September 30, 2009. Overall, the company reported the highest profitability on record for a third quarter. However, the Recreational/Leisure division had a third quarter revenue decline, primarily due to a reduction in sales at mass merchants from prior year levels.

Sales at Cycling Sports Group (CSG) to Independent Bike Dealers (IBD) and specialty sporting goods customers increased over last year\'s third quarter. However, consumers are purchasing less of CSG\'s higher end products and are trading down to lower priced items, which carry lower margins. Excluding the impact of new business acquisitions and foreign exchange variations on the segment\'s non-US based businesses, Recreational/Leisure\'s organic revenue decline was approximately 10% for the quarter and 6% year-to-date. Recreational/Leisure revenue for the quarter was $145.2 million, with a Gross Profit of $33.8 million, and for the nine month period $505.7 million and $115.1 million, respectively All numbers are reported in U.S. dollars.

During the quarter and into early October, three business acquisitions were concluded, including a recognized brand name in \"Iron Horse\", and two successful bicycle distributors in Australia and the United Kingdom. The UK acquisition of Hot Wheels and Circle Bikes included the popular local \"Charge\" brand. Dorel has retained the owners of Hot Wheels, who will manage the newly created Cycling Sports Group UK (CSG UK). This subsidiary will be dedicated to the IBD channel and will drive the future growth of the Charge, Mongoose, GT and Cannondale brands.

Last month additional initiatives were announced to further grow Dorel\'s Performance Apparel Division. The Apparel Footwear Group (AFG) will incorporate SUGOI Performance Apparel as well as the apparel lines of Cannondale, GT, Schwinn, Iron Horse and Mongoose - in both custom and its regular offerings. Plans include an investment in new equipment, facilities and additional employees. An important focus of AFG will be to build the custom apparel business, developing specific riding and running uniforms for teams and clubs.

\"The fact that we have exceeded last year\'s earnings for the quarter despite a difficult economic period is a tribute to the quality and value of our products and our focus on maximizing margins through cost containment, a more stable cost environment and our disciplined minimum margin requirement program,\" commented Dorel President and CEO, Martin Schwartz.

\"Dorel\'s multi-national operations, diverse operating segments and broad product lines have traditionally compensated for earnings variations within the Company\'s various operating divisions. This is the case in 2009 as strong results within North America in the Juvenile and Home Furnishing segments are offsetting less profitable results at other divisions elsewhere within the Company.\"