MONTREAL, QUEBEC--(Marketwired - June 20, 2016) - Dorel Industries Inc., (TSX:DII.B)(TSX:DII.A) today
announced it is launching a vigorous appeal to the trial court, and if necessary, the 5th Circuit Court of
Appeals, following a jury verdict Friday, June 17th in Marshall, Texas which awarded approximately US$29 million in net damages
as Dorel's portion in the case. Dorel strongly disagrees with the jury award and is optimistic of a favorable outcome as
the case continues to proceed through the legal system.
The trial related to a May, 2013 accident in which a child travelling in a Dorel car seat was seriously injured when the
vehicle the child was in was struck by a driver who crossed the center line and collided with the vehicle in a horrific crash.
There was substantial evidence produced that the child had not been properly secured by the shoulder straps at the time of the
crash.
"The seat in question has an excellent safety record and has been used without incident. We stand by this product which meets
all government standards," commented Dorel President and CEO, Martin Schwartz.
The Company stated it believes the verdict and judgment in the trial court stage of this case is erroneous and unjustified. It
will present strong arguments which it expects will either overturn the judgment entirely or significantly reduce the liability
assessed against the Company.
Should the appeal be unsuccessful, Dorel stated that its current insurance coverage would limit the Company's exposure to not
more than US$6.0 million. It will record the potential impact in the Company's condensed consolidated interim second
quarter financial statements. Dorel has a strong balance sheet and its financial position will not be materially affected by this
case.
"Dorel is the world's largest car seat manufacturer and we take great pride in the excellent reputation for safety that we
have earned globally. We design and produce juvenile products with one overriding objective-the safety of our children. Our
hearts go out to the child and family involved in this most unfortunate accident. Dorel spends millions annually in its product
development and test centers to ensure that our products are of the highest quality", concluded Mr. Schwartz.
Profile
Dorel Industries Inc. (TSX:DII.B)(TSX:DII.A) is a world class juvenile products and bicycle company. The
Company's safety and lifestyle leadership is pronounced in both its Juvenile and Bicycle categories with an array of
trend-setting, innovative products. Dorel Juvenile's powerfully branded products include global juvenile brands Safety
1st, Quinny, Maxi-Cosi and Tiny Love, complemented by regional brands such as Cosco, Bébé Confort and Infanti. In
Dorel Sports, brands include Cannondale, Schwinn, GT, Mongoose, Caloi, IronHorse and SUGOI. Dorel Home Furnishings markets a
wide assortment of both domestically produced and imported furniture products, principally within North America. Dorel Industries
Inc. has annual sales of US$2.7 billion and employs approximately 10,450 people in facilities located in twenty-five countries
worldwide.
Caution Regarding Forward Looking Statements
Certain statements included in this press release may constitute "forward-looking statements" within the meaning of applicable
Canadian securities legislation. Except as may be required by Canadian securities laws, Dorel does not undertake any
obligation to update or revise any forward-looking statements, whether as a result of new information, future events or
otherwise. Forward-looking statements, by their very nature, are subject to numerous risks and uncertainties and are based on
several assumptions which give rise to the possibility that actual results could differ materially from Dorel's expectations
expressed in or implied by such forward-looking statements and that the objectives, plans, strategic priorities and business
outlook may not be achieved. As a result, Dorel cannot guarantee that any forward-looking statement will materialize, or if any
of them do, what benefits Dorel will derive from them. Forward-looking statements are provided in this press release for the
purpose of giving information about Management's current expectations and plans and allowing investors and others to get a better
understanding of Dorel's operating environment. However, readers are cautioned that it may not be appropriate to use such
forward-looking statements for any other purpose.
Forward-looking statements made in this press release are based on a number of assumptions that Dorel believed were reasonable
on the day it made the forward-looking statements. Factors that could cause actual results to differ materially from Dorel's
expectations expressed in or implied by the forward-looking statements include: general economic conditions; changes in product
costs and supply channels; foreign currency fluctuations; customer and credit risk, including the concentration of revenues with
a small number of customers; costs associated with product liability; changes in income tax legislation or the interpretation or
application of those rules; the continued ability to develop products and support brand names; changes in the regulatory
environment; continued access to capital resources and the related costs of borrowing; changes in assumptions in the valuation of
goodwill and other intangible assets; and there being no certainty that Dorel's current dividend policy will be
maintained. These and other risk factors that could cause actual results to differ materially from expectations expressed in
or implied by the forward-looking statements are discussed in Dorel's annual Management Discussion and Analysis and Annual
Information Form filed with the applicable Canadian securities regulatory authorities. The risk factors outlined in the
previously-mentioned documents are specifically incorporated herein by reference.
Dorel cautions readers that the risks described above are not the only ones that could impact it. Additional risks and
uncertainties not currently known to Dorel or that Dorel currently deems to be immaterial may also have a material adverse effect
on Dorel's business, financial condition or results of operations. Given these risks and uncertainties, investors should not
place undue reliance on forward-looking statements as a prediction of actual results.