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<SEC-DOCUMENT>0001204459-06-000415.txt : 20060517
<SEC-HEADER>0001204459-06-000415.hdr.sgml : 20060517
<ACCEPTANCE-DATETIME>20060517154345
ACCESSION NUMBER:		0001204459-06-000415
CONFORMED SUBMISSION TYPE:	6-K
PUBLIC DOCUMENT COUNT:		4
CONFORMED PERIOD OF REPORT:	20060402
FILED AS OF DATE:		20060517
DATE AS OF CHANGE:		20060517

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			GILDAN ACTIVEWEAR INC
		CENTRAL INDEX KEY:			0001061894
		STANDARD INDUSTRIAL CLASSIFICATION:	APPAREL & OTHER FINISHED PRODS OF FABRICS & SIMILAR MATERIAL [2300]
		IRS NUMBER:				000000000
		FISCAL YEAR END:			1003

	FILING VALUES:
		FORM TYPE:		6-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-14830
		FILM NUMBER:		06849131

	BUSINESS ADDRESS:	
		STREET 1:		725 MONTEE DE LIESSE
		STREET 2:		VILLE SAINT LAURENT
		CITY:			QUEBEC CANADA
		STATE:			A8
		ZIP:			00000
		BUSINESS PHONE:		5147352023

	MAIL ADDRESS:	
		STREET 1:		725 MONTEE DE LIESSE
		STREET 2:		ST LAURENT QUE
		CITY:			CANADA
		STATE:			A8
		ZIP:			00000
</SEC-HEADER>
<DOCUMENT>
<TYPE>6-K
<SEQUENCE>1
<FILENAME>gildanf6k.htm
<DESCRIPTION>FORM 6-K
<TEXT>
<html>

<head>

<title>Gildan Activewear Inc.: Form 6-K - Prepared by TNT Filings Inc.</title>
</head>

<body>

<div style="font-family: 'Times New Roman',Times,serif">
&nbsp;<hr color="#000000" size="5">
  <div style="font-size: 14pt; margin-top: 12pt" align="center">
    <b><font size="5">SECURITIES AND EXCHANGE COMMISSION</font></b><font size="5">
    </font>
  </div>
  <div style="font-size: 12pt" align="center">
    <b><font size="2">Washington, DC 20549</font></b><font size="2"> </font>
  </div>
  <div style="font-size: 18pt; margin-top: 12pt" align="center">
    <b>Form&nbsp;6-K</b>
  </div>
  <div style="font-size: 12pt; margin-top: 12pt" align="center">
    <b><font size="2">Report of Foreign Private Issuer<br>
    Pursuant to Rule&nbsp;13a-16 or 15d-16 of<br>
    the Securities Exchange Act of 1934</font></b><font size="2"> </font>
  </div>
  <div style="font-size: 10pt; margin-top: 18pt" align="center">
    For the month of: May&nbsp;2006&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Commission File Number: 1-14830
  </div>
  <div style="font-size: 24pt; margin-top: 12pt" align="center">
    <b>GILDAN ACTIVEWEAR INC.</b>
  </div>
  <div style="font-size: 10pt" align="center">
    (<i>Translation of Registrant's name into English</i>)</div>
  <div style="font-size: 10pt; margin-top: 18pt" align="center">
    <b>725 Mont&#233;e de Liesse<br>
    Ville Saint-Laurent, Qu&#233;bec<br>
    Canada H4T 1P5</b><br>
    (<i>Address of Principal Executive Offices</i>)
  </div>
  <div style="font-size: 10pt; text-indent: 0%; margin-left: 0%; margin-right: 0%; margin-top: 6pt" align="left">
    Indicate by check mark whether the registrant files or will file annual
    reports under cover of Form 20-F or Form 40-F:</div>
  <div style="font-size: 10pt; margin-top: 18pt" align="center">
    Form&nbsp;20-F <font style="font-family: Wingdings">o</font>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Form&nbsp;40-F
    <font style="font-family: Wingdings">&#254;</font>
  </div>
  <div style="font-size: 10pt; text-indent: 0%; margin-left: 0%; margin-right: 0%; margin-top: 6pt" align="left">
    Indicate by check mark if the registrant is submitting the Form 6-K in paper
    as permitted by Regulation&nbsp;S-T Rule&nbsp;101(b)(1):
    <font style="font-family: Wingdings">o</font></div>
  <div style="font-size: 10pt; text-indent: 0%; margin-left: 0%; margin-right: 0%; margin-top: 6pt" align="left">
    Indicate by check mark if the registrant is submitting the form 6-K in paper
    as permitted by Regulation&nbsp;S-T Rule&nbsp;101(b)(7):
    <font style="font-family: Wingdings">o</font></div>
  <div style="font-size: 10pt; text-indent: 0%; margin-left: 0%; margin-right: 0%; margin-top: 6pt" align="left">
    Indicate by check mark whether by furnishing the information contained in
    this Form, the registrant is also thereby furnishing the information to the
    Commission pursuant to Rule&nbsp;12g3-2(b) under the Securities Exchange Act of
    1934:</div>
  <div style="font-size: 10pt; margin-top: 18pt" align="center">
    Yes <font style="font-family: Wingdings">o</font>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;No
    <font style="font-family: Wingdings">&#254;</font>
  </div>
  <div style="font-size: 10pt; text-indent: 0%; margin-left: 0%; margin-right: 0%; margin-top: 6pt" align="left">
    If &quot;Yes&quot; is marked, indicate below the file number assigned to the
    registrant in connection with Rule&nbsp;12g3-2(b): N/A<hr color="#000000" size="5"><p Style='page-break-before:always'>
  </div>
</div>
<div style="font-family: 'Times New Roman',Times,serif">
  <!-- link1 "SIGNATURES" -->
  <div style="font-size: 10pt; margin-top: 18pt" align="center">
    <b>SIGNATURES</b>
  </div>
  <div style="font-size: 10pt; margin-top: 6pt" align="left">
    &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pursuant to the requirements of the Securities Exchange Act of 1934,
    the registrant has duly caused this report to be signed on its behalf by the
    undersigned, thereunto duly authorized.
  </div>
  <table style="font-size: 10pt; border-collapse: collapse" cellSpacing="0" cellPadding="0" width="100%" border="0" bordercolor="#111111">
    <tr>
      <td width="48%">&nbsp;</td>
      <td width="1%">&nbsp;</td>
      <td width="1%">&nbsp;</td>
      <td width="35%">&nbsp;</td>
      <td width="15%">&nbsp;</td>
    </tr>
    <tr>
      <td vAlign="top" align="left">&nbsp;</td>
      <td align="left" colSpan="3"><b>GILDAN ACTIVEWEAR INC.</b><br>
      &nbsp;</td>
      <td>&nbsp;</td>
    </tr>
    <tr>
      <td align="left">Date: May 17, 2006&nbsp;</td>
      <td vAlign="top">By:&nbsp;&nbsp;</td>
      <td style="border-bottom: 1px solid #000000" align="left" colSpan="2">/s/
      Lindsay Matthews &nbsp;</td>
      <td>&nbsp;</td>
    </tr>
    <tr>
      <td align="left">&nbsp;</td>
      <td>&nbsp;</td>
      <td vAlign="top">Name:&nbsp;&nbsp;</td>
      <td align="left">Lindsay Matthews&nbsp;</td>
      <td>&nbsp;</td>
    </tr>
    <tr>
      <td align="left">&nbsp;</td>
      <td>&nbsp;</td>
      <td vAlign="top">Title:&nbsp;&nbsp;</td>
      <td align="left">Director, Legal Services and<br>
      Corporate Secretary&nbsp;</td>
      <td>&nbsp;</td>
    </tr>
    <tr>
      <td colSpan="5">&nbsp;</td>
    </tr>
  </table>
  <p style="font-size: 10pt" align="center">&nbsp; </p>
  <hr color="#000000" size="5"><p Style='page-break-before:always'>
</div>
<div style="font-family: 'Times New Roman',Times,serif">
  <!-- link1 "EXHIBIT INDEX" -->
  <div style="font-size: 10pt; margin-top: 18pt" align="center">
    <b>EXHIBIT INDEX</b>
  </div>
  <div align="center">
    <table style="font-size: 10pt" cellSpacing="0" cellPadding="0" width="100%" border="0">
      <!-- Begin Table Head -->
      <tr vAlign="bottom">
        <td width="5%">&nbsp;</td>
        <td width="2%">&nbsp;</td>
        <td width="93%">&nbsp;</td>
      </tr>
      <tr style="font-size: 8pt" vAlign="bottom">
        <td style="border-bottom: 1px solid #000000" noWrap align="left"><b>
        <font size="2">Exhibit</font></b></td>
        <td><font size="2">&nbsp;</font></td>
        <td style="border-bottom: 1px solid #000000" noWrap align="middle"><b>
        <font size="2">Description of Exhibit</font></b></td>
      </tr>
      <!-- End Table Head -->
      <!-- Begin Table Body -->
      <tr vAlign="bottom">
        <td vAlign="top">
        <div style="text-indent: 0px; margin-left: 0px">
          <a href="gildan2qreport.htm" style="text-decoration: none">99.1 </a>
        </div>
        </td>
        <td>&nbsp;</td>
        <td vAlign="top" align="left">
        <a href="gildan2qreport.htm" style="text-decoration: none">Gildan
        Activewear Quarterly Report to Shareholders &#151; Second Quarter Ended April
        2, 2006.</a></td>
      </tr>
      <!-- End Table Body -->
    </table>
  </div>
</div>
<hr color="#000000" size="5">

</body>

</html>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.1
<SEQUENCE>2
<FILENAME>gildan2qreport.htm
<DESCRIPTION>EX-99.1
<TEXT>
<html>

<head>

<title>Gildan Activewear Inc.: Exhibit 99.1 - Prepared by TNT Filings Inc.
</title>
</head>

<body>

<p>&nbsp;</p>
<hr color="#000000" size="5">
<table border="0" cellpadding="0" cellspacing="0" style="border-collapse: collapse" bordercolor="#111111" width="100%">
  <tr>
    <td width="50%"><img border="0" src="gildan1.jpg" width="159" height="49"></td>
    <td width="50%" bgcolor="#000000"><b><font SIZE="4" color="#FFFFFF">
    <p style="margin-left: 20"><font style="background-color: #000000">Quarterly
    Report to Shareholders <br>
    Second quarter ended April 2, 2006 </font></font></b></td>
  </tr>
  <tr>
    <td width="50%">&nbsp;</td>
    <td width="50%">&nbsp;</td>
  </tr>
  <tr>
    <td width="100%" colspan="2" bgcolor="#000000">
    <font FACE="Times New Roman PS" size="5" color="#FFFFFF"><b>
    <p align="center">MESSAGE FROM THE PRESIDENT AND CEO </b></font></td>
  </tr>
</table>
<font FACE="Times New Roman PSMT" SIZE="2">
<p ALIGN="JUSTIFY">I am pleased to communicate and review our results for the
three months ended April 2, 2006. We achieved record earnings and E.P.S. for the
second quarter of a fiscal year and exceeded our previous E.P.S. guidance, which
had been provided on February 1, 2006. </p>
<p ALIGN="JUSTIFY">The Company reported second quarter net earnings of U.S.
$31.0 million and diluted E.P.S. of U.S. $0.51, up respectively 40.3% and 37.8%
from adjusted net earnings of U.S. $22.1 million and U.S. $0.37 per share in the
second quarter of fiscal 2005. Adjusted net earnings for the second quarter of
last year exclude a special charge of U.S. $7.8 million after-tax, or U.S. $0.13
per share, for the closure and relocation of the Company's Canadian
yarn-spinning operations. Net earnings and diluted E.P.S. increased respectively
by 116.7% and 112.5% over the second quarter of fiscal 2005, after giving effect
to the prior year special charge. </p>
<p ALIGN="JUSTIFY">Compared to the second quarter a year ago, the increase in
net earnings and E.P.S. was due to continuing strong growth in unit sales
volumes and higher gross margins, partially offset by higher selling, general
and administrative and depreciation expenses. </p>
<p ALIGN="JUSTIFY">Sales in the second quarter amounted to U.S. $183.8 million,
up 11.2% from U.S. $165.3 million in the second quarter of last year. The
increase in sales revenues reflected a 13.9% increase in unit sales volumes due
to continued market share penetration, partially offset by the impact of an
approximate 1.5% reduction in net selling prices. </p>
<p ALIGN="JUSTIFY">Gross margins in the second quarter were 33.4%, versus 30.1%
in the second quarter of 2005. The increase in gross margins was due to more
favourable cotton costs and positive manufacturing efficiencies. In addition,
margins were positively impacted by the reversal of a prior year reserve of U.S.
$1.1 million for litigation related to cotton purchase contracts in fiscal 2001,
which has now been resolved in Gildan's favour. These factors were partially
offset by the reduction in selling prices, while margins in the quarter also
continued to reflect higher energy and transportation costs, as well as start-up
costs for the Dominican Republic textile facility and new sewing plants. </p>
<p ALIGN="JUSTIFY">Selling, general and administrative expenses in the second
quarter were U.S. $20.7 million, or 11.3% of sales, compared to U.S. $18.3
million, or 11.1% of sales, in the second quarter of last year. The increase in
selling, general and administrative expenses was due to higher volume-related
distribution expenses, the continuing development of the organization to support
the Company's ongoing growth strategy, and the impact of the stronger Canadian
dollar, partially offset by an adjustment to the reserve for doubtful accounts.
The increase of U.S. $1.2 million in depreciation expense was due to the
Company's major ongoing investments in capacity expansion, in particular the new
Dominican Republic facility. </p>
<p ALIGN="JUSTIFY">Due to the more favourable than anticipated results for the
second quarter, the Company has increased its E.P.S. guidance for the full 2006
fiscal year to approximately U.S. $1.96 per share, compared with its most recent
guidance of approximately U.S. $1.90 per share. The revised full year guidance
reflects a projected increase of 26% in E.P.S. compared with adjusted net
earnings of U.S. $1.55 per share in fiscal 2005, before reflecting the prior
year special charge. Sales revenues for the full 2006 fiscal year are projected
at approximately U.S. $740 million, representing an increase of approximately
13% over fiscal 2005. </p>
<p ALIGN="JUSTIFY">Gildan projects diluted E.P.S. for the third quarter of
fiscal 2006 of approximately U.S. $0.63 per share, up approximately 10% from the
third quarter of last year, and diluted E.P.S. of approximately U.S. $0.56 per
share in the fourth quarter, up approximately 19% from the fourth quarter of
fiscal 2005. </p>
<p ALIGN="JUSTIFY">The Company's sales and diluted E.P.S. guidance for the
second half of the year reflects the assumption of a further 1.5% reduction in
selling prices, compared with the second quarter, and an approximate 2%
reduction in selling prices compared to the second half of fiscal 2005. Unit
sales volumes are projected to increase by approximately 15% compared to the
second half of fiscal 2005. However, the impact of lower than previously
projected selling prices and unit sales volumes in the second half of the fiscal
year is expected to be fully offset by more favourable product-mix, due to a
higher proportion of sweatshirts and colour T-shirts, combined with greater than
previously assumed manufacturing efficiencies. </p>
</font>
<hr color="#000000" size="5"><p Style='page-break-before:always'>
<table border="0" cellpadding="0" cellspacing="0" style="border-collapse: collapse" bordercolor="#111111" width="100%">
  <tr>
    <td width="50%"><img border="0" src="gildan1.jpg" width="159" height="49"></td>
    <td width="50%" bgcolor="#000000"><b><font SIZE="4" color="#FFFFFF">
    <p style="margin-left: 20"><font style="background-color: #000000">Quarterly
    Report to Shareholders <br>
    Second quarter ended April 2, 2006 </font></font></b></td>
  </tr>
</table>
<font FACE="Times New Roman PSMT" SIZE="2">
<p ALIGN="JUSTIFY">During the second quarter, the Company's cash and cash
equivalents decreased by U.S. $42.2 million, after utilizing U.S. $51.6 million
to finance a seasonal increase in accounts receivable, and after financing
capital expenditures of U.S. $23.8 million. Capital expenditures are still
expected to total approximately U.S. $90 million for the full fiscal year. In
addition, Gildan is progressing with its major strategic capacity expansion
projects in Honduras and in the Dominican Republic, as well as with the
evaluation of a potential acquisition opportunity in the sock industry. The
Company believes that its operating cash flow and unused credit facilities will
provide it with sufficient liquidity to finance the potential sock acquisition,
as well as its capital expenditures and the next scheduled principal repayment
of its U.S. Senior Notes in June 2006. </p>
<p><u>Board Appointment </u></p>
<p ALIGN="JUSTIFY">I am also pleased to announce the appointment of William D.
Anderson to the Company's Board of Directors. Mr. Anderson has had a successful
career as a business leader in Canada spanning over 30 years. Most recently, Mr.
Anderson served as Chairman and Chief Executive Officer of Bell Canada
International Inc., and previously held the position of Chief Financial Officer
of BCE Inc. Prior to joining the Bell Canada organization, Mr. Anderson was a
partner with KPMG. As such, he is a Chartered Accountant who further reinforces
the financial expertise on Gildan's Board of Directors and Audit Committee. With
the addition of Mr. Anderson, Gildan's Board of Directors now comprises seven
members, of which six are independent of management. All Board Committees are
composed exclusively of independent directors. </p>
<p>Finally, I would like to take this opportunity to thank our shareholders for
their confidence and support and acknowledge the contributions of all our
employees in delivering another successful quarter. </p>
</font><font FACE="Times New Roman PS" SIZE="2"><i>
<p><img border="0" src="presid2.gif" width="192" height="47"></p>
<p>Glenn J. Chamandy </p>
</i></font><font FACE="Times New Roman PSMT" SIZE="2">
<p>President and Chief Executive Officer </p>
</font>
<p>&nbsp;</p>
<p>&nbsp;</p>
<hr color="#000000" size="5"><p Style='page-break-before:always'>
<p align="center"><font SIZE="5"><b>Gildan Activewear Inc.<br>
</b></font><b><font size="5">Consolidated Balance Sheets</font><br>
</b><font SIZE="2">(in thousands of U.S. dollars)</font></p>
<table CELLSPACING="0" BORDER="0" WIDTH="100%" cellpadding="0" height="0" style="border-collapse: collapse" bordercolor="#111111">
  <tr>
    <td WIDTH="757" valign="bottom">&nbsp;</td>
    <td WIDTH="26" align="left" valign="bottom">&nbsp;</td>
    <td WIDTH="120" align="right" valign="bottom"><u><font SIZE="2">April 2, 2006</font></u></td>
    <td WIDTH="34" align="right" valign="bottom">&nbsp;</td>
    <td WIDTH="145" COLSPAN="2" align="right" valign="bottom"><u><font SIZE="2">October 2, 2005</font></u></td>
    <td WIDTH="37" align="right" valign="bottom">&nbsp;</td>
    <td WIDTH="118" align="right" valign="bottom"><u><font SIZE="2">April 3, 2005</font></u></td>
  </tr>
  <tr>
    <td WIDTH="757" valign="bottom">&nbsp;</td>
    <td WIDTH="26" align="left" valign="bottom">&nbsp;</td>
    <td WIDTH="120" align="right" valign="bottom"><font SIZE="2">(unaudited)</font></td>
    <td WIDTH="34" align="right" valign="bottom">&nbsp;</td>
    <td WIDTH="23" align="left" valign="bottom">&nbsp;</td>
    <td WIDTH="122" align="right" valign="bottom"><font SIZE="2">(audited)</font></td>
    <td WIDTH="37" align="right" valign="bottom">&nbsp;</td>
    <td WIDTH="118" align="right" valign="bottom"><font SIZE="2">(unaudited)</font></td>
  </tr>
  <tr>
    <td WIDTH="757" valign="bottom">&nbsp;</td>
    <td WIDTH="26" align="left" valign="bottom">&nbsp;</td>
    <td WIDTH="120" align="right" valign="bottom">&nbsp;</td>
    <td WIDTH="34" align="right" valign="bottom">&nbsp;</td>
    <td WIDTH="23" align="left" valign="bottom">&nbsp;</td>
    <td WIDTH="122" align="right" valign="bottom">&nbsp;</td>
    <td WIDTH="37" align="right" valign="bottom">&nbsp;</td>
    <td WIDTH="118" align="right" valign="bottom">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="757" valign="bottom" bgcolor="#E6E6E6"><font SIZE="2">Current assets:</font></td>
    <td WIDTH="26" align="left" valign="bottom" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="120" align="right" valign="bottom" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="34" align="right" valign="bottom" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="23" align="left" valign="bottom" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="122" align="right" valign="bottom" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="37" align="right" valign="bottom" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="118" align="right" valign="bottom" bgcolor="#E6E6E6">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="757" valign="bottom"><font SIZE="2">
    <p style="text-indent: 26">Cash and cash equivalents</font></td>
    <td WIDTH="26" align="left" valign="bottom"><font SIZE="2">$</font></td>
    <td WIDTH="120" align="right" valign="bottom"><font SIZE="2">48,129</font></td>
    <td WIDTH="34" align="right" valign="bottom">&nbsp;</td>
    <td WIDTH="23" align="left" valign="bottom"><font SIZE="2">$</font></td>
    <td WIDTH="122" align="right" valign="bottom"><font SIZE="2">69,802</font></td>
    <td WIDTH="37" align="right" valign="bottom"><font SIZE="2">$</font></td>
    <td WIDTH="118" align="right" valign="bottom"><font SIZE="2">30,043</font></td>
  </tr>
  <tr>
    <td WIDTH="757" valign="bottom" bgcolor="#E6E6E6"><font SIZE="2">
    <p style="text-indent: 26">Accounts receivable</font></td>
    <td WIDTH="26" align="left" valign="bottom" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="120" align="right" valign="bottom" bgcolor="#E6E6E6"><font SIZE="2">103,376</font></td>
    <td WIDTH="34" align="right" valign="bottom" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="23" align="left" valign="bottom" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="122" align="right" valign="bottom" bgcolor="#E6E6E6"><font SIZE="2">108,646</font></td>
    <td WIDTH="37" align="right" valign="bottom" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="118" align="right" valign="bottom" bgcolor="#E6E6E6"><font SIZE="2">89,223</font></td>
  </tr>
  <tr>
    <td WIDTH="757" valign="bottom"><font SIZE="2">
    <p style="text-indent: 26">Inventories</font></td>
    <td WIDTH="26" align="left" valign="bottom">&nbsp;</td>
    <td WIDTH="120" align="right" valign="bottom"><font SIZE="2">186,591</font></td>
    <td WIDTH="34" align="right" valign="bottom">&nbsp;</td>
    <td WIDTH="23" align="left" valign="bottom">&nbsp;</td>
    <td WIDTH="122" align="right" valign="bottom"><font SIZE="2">134,861</font></td>
    <td WIDTH="37" align="right" valign="bottom">&nbsp;</td>
    <td WIDTH="118" align="right" valign="bottom"><font SIZE="2">141,107</font></td>
  </tr>
  <tr>
    <td WIDTH="757" valign="bottom" bgcolor="#E6E6E6"><font SIZE="2">
    <p style="text-indent: 26">Prepaid expenses and deposits</font></td>
    <td WIDTH="26" align="left" valign="bottom" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="120" align="right" valign="bottom" bgcolor="#E6E6E6"><font SIZE="2">3,889</font></td>
    <td WIDTH="34" align="right" valign="bottom" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="23" align="left" valign="bottom" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="122" align="right" valign="bottom" bgcolor="#E6E6E6"><font SIZE="2">4,394</font></td>
    <td WIDTH="37" align="right" valign="bottom" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="118" align="right" valign="bottom" bgcolor="#E6E6E6"><font SIZE="2">6,751</font></td>
  </tr>
  <tr>
    <td WIDTH="757" valign="bottom"><font SIZE="2">
    <p style="text-indent: 26">Future income taxes</font></td>
    <td WIDTH="26" align="left" style="border-bottom-style: solid; border-bottom-width: 1" valign="bottom">&nbsp;</td>
    <td WIDTH="120" align="right" style="border-bottom-style: solid; border-bottom-width: 1" valign="bottom"><font SIZE="2">10,580</font></td>
    <td WIDTH="34" align="right" valign="bottom">&nbsp;</td>
    <td WIDTH="23" align="left" style="border-bottom-style: solid; border-bottom-width: 1" valign="bottom">&nbsp;</td>
    <td WIDTH="122" align="right" style="border-bottom-style: solid; border-bottom-width: 1" valign="bottom"><font SIZE="2">10,135</font></td>
    <td WIDTH="37" align="right" style="border-bottom-style: solid; border-bottom-width: 1" valign="bottom">&nbsp;</td>
    <td WIDTH="118" align="right" style="border-bottom-style: solid; border-bottom-width: 1" valign="bottom"><font SIZE="2">9,606</font></td>
  </tr>
  <tr>
    <td WIDTH="757" valign="bottom" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="26" align="left" valign="bottom" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="120" align="right" valign="bottom" bgcolor="#E6E6E6"><font SIZE="2">352,565</font></td>
    <td WIDTH="34" align="right" valign="bottom" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="23" align="left" valign="bottom" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="122" align="right" valign="bottom" bgcolor="#E6E6E6"><font SIZE="2">327,838</font></td>
    <td WIDTH="37" align="right" valign="bottom" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="118" align="right" valign="bottom" bgcolor="#E6E6E6"><font SIZE="2">276,730</font></td>
  </tr>
  <tr>
    <td WIDTH="757" valign="bottom">&nbsp;</td>
    <td WIDTH="26" align="left" valign="bottom">&nbsp;</td>
    <td WIDTH="120" align="right" valign="bottom">&nbsp;</td>
    <td WIDTH="34" align="right" valign="bottom">&nbsp;</td>
    <td WIDTH="23" align="left" valign="bottom">&nbsp;</td>
    <td WIDTH="122" align="right" valign="bottom">&nbsp;</td>
    <td WIDTH="37" align="right" valign="bottom">&nbsp;</td>
    <td WIDTH="118" align="right" valign="bottom">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="757" valign="bottom" bgcolor="#E6E6E6"><font SIZE="2">Fixed assets</font></td>
    <td WIDTH="26" align="left" valign="bottom" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="120" align="right" valign="bottom" bgcolor="#E6E6E6"><font SIZE="2">282,086</font></td>
    <td WIDTH="34" align="right" valign="bottom" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="23" align="left" valign="bottom" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="122" align="right" valign="bottom" bgcolor="#E6E6E6"><font SIZE="2">260,615</font></td>
    <td WIDTH="37" align="right" valign="bottom" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="118" align="right" valign="bottom" bgcolor="#E6E6E6"><font SIZE="2">234,577</font></td>
  </tr>
  <tr>
    <td WIDTH="757" valign="bottom"><font SIZE="2">Assets held for sale</font></td>
    <td WIDTH="26" align="left" valign="bottom">&nbsp;</td>
    <td WIDTH="120" align="right" valign="bottom"><font SIZE="2">5,027</font></td>
    <td WIDTH="34" align="right" valign="bottom">&nbsp;</td>
    <td WIDTH="23" align="left" valign="bottom">&nbsp;</td>
    <td WIDTH="122" align="right" valign="bottom"><font SIZE="2">5,027</font></td>
    <td WIDTH="37" align="right" valign="bottom">&nbsp;</td>
    <td WIDTH="118" align="right" valign="bottom"><font SIZE="2">8,025</font></td>
  </tr>
  <tr>
    <td WIDTH="757" valign="bottom" bgcolor="#E6E6E6"><font SIZE="2">Other assets</font></td>
    <td WIDTH="26" align="left" style="border-bottom-style: solid; border-bottom-width: 1" valign="bottom" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="120" align="right" style="border-bottom-style: solid; border-bottom-width: 1" valign="bottom" bgcolor="#E6E6E6"><font SIZE="2">4,135</font></td>
    <td WIDTH="34" align="right" valign="bottom" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="23" align="left" style="border-bottom-style: solid; border-bottom-width: 1" valign="bottom" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="122" align="right" style="border-bottom-style: solid; border-bottom-width: 1" valign="bottom" bgcolor="#E6E6E6"><font SIZE="2">4,036</font></td>
    <td WIDTH="37" align="right" style="border-bottom-style: solid; border-bottom-width: 1" valign="bottom" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="118" align="right" style="border-bottom-style: solid; border-bottom-width: 1" valign="bottom" bgcolor="#E6E6E6"><font SIZE="2">6,112</font></td>
  </tr>
  <tr>
    <td WIDTH="757" valign="bottom">&nbsp;</td>
    <td WIDTH="26" align="left" valign="bottom">&nbsp;</td>
    <td WIDTH="120" align="right" valign="bottom">&nbsp;</td>
    <td WIDTH="34" align="right" valign="bottom">&nbsp;</td>
    <td WIDTH="23" align="left" valign="bottom">&nbsp;</td>
    <td WIDTH="122" align="right" valign="bottom">&nbsp;</td>
    <td WIDTH="37" align="right" valign="bottom">&nbsp;</td>
    <td WIDTH="118" align="right" valign="bottom">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="757" valign="bottom" bgcolor="#E6E6E6"><font SIZE="2">Total assets</font></td>
    <td WIDTH="26" align="left" style="border-bottom-style: solid; border-bottom-width: 3" valign="bottom" bgcolor="#E6E6E6"><font SIZE="2">$</font></td>
    <td WIDTH="120" align="right" style="border-bottom-style: solid; border-bottom-width: 3" valign="bottom" bgcolor="#E6E6E6"><font SIZE="2">643,813</font></td>
    <td WIDTH="34" align="right" valign="bottom" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="23" align="left" style="border-bottom-style: solid; border-bottom-width: 3" valign="bottom" bgcolor="#E6E6E6"><font SIZE="2">$</font></td>
    <td WIDTH="122" align="right" style="border-bottom-style: solid; border-bottom-width: 3" valign="bottom" bgcolor="#E6E6E6"><font SIZE="2">597,516</font></td>
    <td WIDTH="37" align="right" style="border-bottom-style: solid; border-bottom-width: 3" valign="bottom" bgcolor="#E6E6E6"><font SIZE="2">$</font></td>
    <td WIDTH="118" align="right" style="border-bottom-style: solid; border-bottom-width: 3" valign="bottom" bgcolor="#E6E6E6"><font SIZE="2">525,444</font></td>
  </tr>
  <tr>
    <td WIDTH="757" valign="bottom">&nbsp;</td>
    <td WIDTH="26" align="left" valign="bottom">&nbsp;</td>
    <td WIDTH="120" align="right" valign="bottom">&nbsp;</td>
    <td WIDTH="34" align="right" valign="bottom">&nbsp;</td>
    <td WIDTH="23" align="left" valign="bottom">&nbsp;</td>
    <td WIDTH="122" align="right" valign="bottom">&nbsp;</td>
    <td WIDTH="37" align="right" valign="bottom">&nbsp;</td>
    <td WIDTH="118" align="right" valign="bottom">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="757" valign="bottom">&nbsp;</td>
    <td WIDTH="26" align="left" valign="bottom">&nbsp;</td>
    <td WIDTH="120" align="right" valign="bottom">&nbsp;</td>
    <td WIDTH="34" align="right" valign="bottom">&nbsp;</td>
    <td WIDTH="23" align="left" valign="bottom">&nbsp;</td>
    <td WIDTH="122" align="right" valign="bottom">&nbsp;</td>
    <td WIDTH="37" align="right" valign="bottom">&nbsp;</td>
    <td WIDTH="118" align="right" valign="bottom">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="757" valign="bottom">&nbsp;</td>
    <td WIDTH="26" align="left" valign="bottom">&nbsp;</td>
    <td WIDTH="120" align="right" valign="bottom">&nbsp;</td>
    <td WIDTH="34" align="right" valign="bottom">&nbsp;</td>
    <td WIDTH="23" align="left" valign="bottom">&nbsp;</td>
    <td WIDTH="122" align="right" valign="bottom">&nbsp;</td>
    <td WIDTH="37" align="right" valign="bottom">&nbsp;</td>
    <td WIDTH="118" align="right" valign="bottom">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="757" valign="bottom" bgcolor="#E6E6E6"><font SIZE="2">Current liabilities:</font></td>
    <td WIDTH="26" align="left" valign="bottom" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="120" align="right" valign="bottom" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="34" align="right" valign="bottom" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="23" align="left" valign="bottom" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="122" align="right" valign="bottom" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="37" align="right" valign="bottom" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="118" align="right" valign="bottom" bgcolor="#E6E6E6">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="757" valign="bottom"><font SIZE="2">
    <p style="text-indent: 26">Bank indebtedness</font></td>
    <td WIDTH="26" align="left" valign="bottom"><font SIZE="2">$</font></td>
    <td WIDTH="120" align="right" valign="bottom"><font SIZE="2">3,980</font></td>
    <td WIDTH="34" align="right" valign="bottom">&nbsp;</td>
    <td WIDTH="23" align="left" valign="bottom"><font SIZE="2">$</font></td>
    <td WIDTH="122" align="right" valign="bottom"><font SIZE="2">3,980</font></td>
    <td WIDTH="37" align="right" valign="bottom"><font SIZE="2">$</font></td>
    <td WIDTH="118" align="right" valign="bottom"><font SIZE="2">-</font></td>
  </tr>
  <tr>
    <td WIDTH="757" valign="bottom" bgcolor="#E6E6E6"><font SIZE="2">
    <p style="text-indent: 26">Accounts payable and accrued liabilities</font></td>
    <td WIDTH="26" align="left" valign="bottom" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="120" align="right" valign="bottom" bgcolor="#E6E6E6"><font SIZE="2">83,413</font></td>
    <td WIDTH="34" align="right" valign="bottom" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="23" align="left" valign="bottom" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="122" align="right" valign="bottom" bgcolor="#E6E6E6"><font SIZE="2">86,843</font></td>
    <td WIDTH="37" align="right" valign="bottom" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="118" align="right" valign="bottom" bgcolor="#E6E6E6"><font SIZE="2">76,345</font></td>
  </tr>
  <tr>
    <td WIDTH="757" valign="bottom"><font SIZE="2">
    <p style="text-indent: 26">Income taxes payable</font></td>
    <td WIDTH="26" align="left" valign="bottom">&nbsp;</td>
    <td WIDTH="120" align="right" valign="bottom"><font SIZE="2">2,209</font></td>
    <td WIDTH="34" align="right" valign="bottom">&nbsp;</td>
    <td WIDTH="23" align="left" valign="bottom">&nbsp;</td>
    <td WIDTH="122" align="right" valign="bottom"><font SIZE="2">2,206</font></td>
    <td WIDTH="37" align="right" valign="bottom">&nbsp;</td>
    <td WIDTH="118" align="right" valign="bottom"><font SIZE="2">2,166</font></td>
  </tr>
  <tr>
    <td WIDTH="757" valign="bottom" bgcolor="#E6E6E6"><font SIZE="2">
    <p style="text-indent: 26">Current portion of long-term debt</font></td>
    <td WIDTH="26" align="left" style="border-bottom-style: solid; border-bottom-width: 1" valign="bottom" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="120" align="right" style="border-bottom-style: solid; border-bottom-width: 1" valign="bottom" bgcolor="#E6E6E6"><font SIZE="2">19,712</font></td>
    <td WIDTH="34" align="right" valign="bottom" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="23" align="left" style="border-bottom-style: solid; border-bottom-width: 1" valign="bottom" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="122" align="right" style="border-bottom-style: solid; border-bottom-width: 1" valign="bottom" bgcolor="#E6E6E6"><font SIZE="2">19,859</font></td>
    <td WIDTH="37" align="right" style="border-bottom-style: solid; border-bottom-width: 1" valign="bottom" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="118" align="right" style="border-bottom-style: solid; border-bottom-width: 1" valign="bottom" bgcolor="#E6E6E6"><font SIZE="2">19,718</font></td>
  </tr>
  <tr>
    <td WIDTH="757" valign="bottom">&nbsp;</td>
    <td WIDTH="26" align="left" valign="bottom">&nbsp;</td>
    <td WIDTH="120" align="right" valign="bottom"><font SIZE="2">109,314</font></td>
    <td WIDTH="34" align="right" valign="bottom">&nbsp;</td>
    <td WIDTH="23" align="left" valign="bottom">&nbsp;</td>
    <td WIDTH="122" align="right" valign="bottom"><font SIZE="2">112,888</font></td>
    <td WIDTH="37" align="right" valign="bottom">&nbsp;</td>
    <td WIDTH="118" align="right" valign="bottom"><font SIZE="2">98,229</font></td>
  </tr>
  <tr>
    <td WIDTH="757" valign="bottom" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="26" align="left" valign="bottom" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="120" align="right" valign="bottom" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="34" align="right" valign="bottom" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="23" align="left" valign="bottom" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="122" align="right" valign="bottom" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="37" align="right" valign="bottom" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="118" align="right" valign="bottom" bgcolor="#E6E6E6">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="757" valign="bottom"><font SIZE="2">Long-term debt</font></td>
    <td WIDTH="26" align="left" valign="bottom">&nbsp;</td>
    <td WIDTH="120" align="right" valign="bottom"><font SIZE="2">26,854</font></td>
    <td WIDTH="34" align="right" valign="bottom">&nbsp;</td>
    <td WIDTH="23" align="left" valign="bottom">&nbsp;</td>
    <td WIDTH="122" align="right" valign="bottom"><font SIZE="2">27,288</font></td>
    <td WIDTH="37" align="right" valign="bottom">&nbsp;</td>
    <td WIDTH="118" align="right" valign="bottom"><font SIZE="2">40,595</font></td>
  </tr>
  <tr>
    <td WIDTH="757" valign="bottom" bgcolor="#E6E6E6"><font SIZE="2">Future income taxes</font></td>
    <td WIDTH="26" align="left" valign="bottom" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="120" align="right" valign="bottom" bgcolor="#E6E6E6"><font SIZE="2">32,461</font></td>
    <td WIDTH="34" align="right" valign="bottom" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="23" align="left" valign="bottom" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="122" align="right" valign="bottom" bgcolor="#E6E6E6"><font SIZE="2">31,386</font></td>
    <td WIDTH="37" align="right" valign="bottom" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="118" align="right" valign="bottom" bgcolor="#E6E6E6"><font SIZE="2">26,746</font></td>
  </tr>
  <tr>
    <td WIDTH="757" valign="bottom"><font SIZE="2">Non-controlling interest</font></td>
    <td WIDTH="26" align="left" valign="bottom">&nbsp;</td>
    <td WIDTH="120" align="right" valign="bottom"><font SIZE="2">5,442</font></td>
    <td WIDTH="34" align="right" valign="bottom">&nbsp;</td>
    <td WIDTH="23" align="left" valign="bottom">&nbsp;</td>
    <td WIDTH="122" align="right" valign="bottom"><font SIZE="2">5,394</font></td>
    <td WIDTH="37" align="right" valign="bottom">&nbsp;</td>
    <td WIDTH="118" align="right" valign="bottom"><font SIZE="2">5,476</font></td>
  </tr>
  <tr>
    <td WIDTH="757" valign="bottom" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="26" align="left" valign="bottom" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="120" align="right" valign="bottom" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="34" align="right" valign="bottom" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="23" align="left" valign="bottom" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="122" align="right" valign="bottom" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="37" align="right" valign="bottom" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="118" align="right" valign="bottom" bgcolor="#E6E6E6">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="757" valign="bottom"><font SIZE="2">Shareholders' equity:</font></td>
    <td WIDTH="26" align="left" valign="bottom">&nbsp;</td>
    <td WIDTH="120" align="right" valign="bottom">&nbsp;</td>
    <td WIDTH="34" align="right" valign="bottom">&nbsp;</td>
    <td WIDTH="23" align="left" valign="bottom">&nbsp;</td>
    <td WIDTH="122" align="right" valign="bottom">&nbsp;</td>
    <td WIDTH="37" align="right" valign="bottom">&nbsp;</td>
    <td WIDTH="118" align="right" valign="bottom">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="757" valign="bottom" bgcolor="#E6E6E6"><font SIZE="2">
    <p style="text-indent: 26">Share capital (note 4)</font></td>
    <td WIDTH="26" align="left" valign="bottom" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="120" align="right" valign="bottom" bgcolor="#E6E6E6"><font SIZE="2">85,624</font></td>
    <td WIDTH="34" align="right" valign="bottom" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="23" align="left" valign="bottom" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="122" align="right" valign="bottom" bgcolor="#E6E6E6"><font SIZE="2">84,177</font></td>
    <td WIDTH="37" align="right" valign="bottom" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="118" align="right" valign="bottom" bgcolor="#E6E6E6"><font SIZE="2">81,857</font></td>
  </tr>
  <tr>
    <td WIDTH="757" valign="bottom"><font SIZE="2">
    <p style="text-indent: 26">Contributed surplus</font></td>
    <td WIDTH="26" align="left" valign="bottom">&nbsp;</td>
    <td WIDTH="120" align="right" valign="bottom"><font SIZE="2">2,121</font></td>
    <td WIDTH="34" align="right" valign="bottom">&nbsp;</td>
    <td WIDTH="23" align="left" valign="bottom">&nbsp;</td>
    <td WIDTH="122" align="right" valign="bottom"><font SIZE="2">1,596</font></td>
    <td WIDTH="37" align="right" valign="bottom">&nbsp;</td>
    <td WIDTH="118" align="right" valign="bottom"><font SIZE="2">1,098</font></td>
  </tr>
  <tr>
    <td WIDTH="757" valign="bottom" bgcolor="#E6E6E6"><font SIZE="2">
    <p style="text-indent: 26">Retained earnings</font></td>
    <td WIDTH="26" align="left" valign="bottom" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="120" align="right" valign="bottom" bgcolor="#E6E6E6"><font SIZE="2">355,749</font></td>
    <td WIDTH="34" align="right" valign="bottom" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="23" align="left" valign="bottom" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="122" align="right" valign="bottom" bgcolor="#E6E6E6"><font SIZE="2">308,539</font></td>
    <td WIDTH="37" align="right" valign="bottom" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="118" align="right" valign="bottom" bgcolor="#E6E6E6"><font SIZE="2">245,195</font></td>
  </tr>
  <tr>
    <td WIDTH="757" valign="bottom"><font SIZE="2">
    <p style="text-indent: 26">Cumulative translation adjustment</font></td>
    <td WIDTH="26" align="left" style="border-bottom-style: solid; border-bottom-width: 1" valign="bottom">&nbsp;</td>
    <td WIDTH="120" align="right" style="border-bottom-style: solid; border-bottom-width: 1" valign="bottom"><font SIZE="2">26,248</font></td>
    <td WIDTH="34" align="right" valign="bottom">&nbsp;</td>
    <td WIDTH="23" align="left" style="border-bottom-style: solid; border-bottom-width: 1" valign="bottom">&nbsp;</td>
    <td WIDTH="122" align="right" style="border-bottom-style: solid; border-bottom-width: 1" valign="bottom"><font SIZE="2">26,248</font></td>
    <td WIDTH="37" align="right" style="border-bottom-style: solid; border-bottom-width: 1" valign="bottom">&nbsp;</td>
    <td WIDTH="118" align="right" style="border-bottom-style: solid; border-bottom-width: 1" valign="bottom"><font SIZE="2">26,248</font></td>
  </tr>
  <tr>
    <td WIDTH="757" valign="bottom" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="26" align="left" style="border-bottom-style: solid; border-bottom-width: 1" valign="bottom" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="120" align="right" style="border-bottom-style: solid; border-bottom-width: 1" valign="bottom" bgcolor="#E6E6E6"><font SIZE="2">469,742</font></td>
    <td WIDTH="34" align="right" valign="bottom" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="23" align="left" style="border-bottom-style: solid; border-bottom-width: 1" valign="bottom" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="122" align="right" style="border-bottom-style: solid; border-bottom-width: 1" valign="bottom" bgcolor="#E6E6E6"><font SIZE="2">420,560</font></td>
    <td WIDTH="37" align="right" style="border-bottom-style: solid; border-bottom-width: 1" valign="bottom" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="118" align="right" style="border-bottom-style: solid; border-bottom-width: 1" valign="bottom" bgcolor="#E6E6E6"><font SIZE="2">354,398</font></td>
  </tr>
  <tr>
    <td WIDTH="757" valign="bottom">&nbsp;</td>
    <td WIDTH="26" align="left" valign="bottom">&nbsp;</td>
    <td WIDTH="120" align="right" valign="bottom">&nbsp;</td>
    <td WIDTH="34" align="right" valign="bottom">&nbsp;</td>
    <td WIDTH="23" align="left" valign="bottom">&nbsp;</td>
    <td WIDTH="122" align="right" valign="bottom">&nbsp;</td>
    <td WIDTH="37" align="right" valign="bottom">&nbsp;</td>
    <td WIDTH="118" align="right" valign="bottom">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="757" valign="bottom" bgcolor="#E6E6E6"><font SIZE="2">Total liabilities and shareholders' equity</font></td>
    <td WIDTH="26" align="left" style="border-bottom-style: solid; border-bottom-width: 3" valign="bottom" bgcolor="#E6E6E6"><font SIZE="2">$</font></td>
    <td WIDTH="120" align="right" style="border-bottom-style: solid; border-bottom-width: 3" valign="bottom" bgcolor="#E6E6E6"><font SIZE="2">643,813</font></td>
    <td WIDTH="34" align="right" valign="bottom" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="23" align="left" style="border-bottom-style: solid; border-bottom-width: 3" valign="bottom" bgcolor="#E6E6E6"><font SIZE="2">$</font></td>
    <td WIDTH="122" align="right" style="border-bottom-style: solid; border-bottom-width: 3" valign="bottom" bgcolor="#E6E6E6"><font SIZE="2">597,516</font></td>
    <td WIDTH="37" align="right" style="border-bottom-style: solid; border-bottom-width: 3" valign="bottom" bgcolor="#E6E6E6"><font SIZE="2">$</font></td>
    <td WIDTH="118" align="right" style="border-bottom-style: solid; border-bottom-width: 3" valign="bottom" bgcolor="#E6E6E6"><font SIZE="2">525,444</font></td>
  </tr>
  <tr>
    <td WIDTH="757" valign="bottom">&nbsp;</td>
    <td WIDTH="26" align="left" valign="bottom">&nbsp;</td>
    <td WIDTH="120" align="right" valign="bottom">&nbsp;</td>
    <td WIDTH="34" align="right" valign="bottom">&nbsp;</td>
    <td WIDTH="23" align="left" valign="bottom">&nbsp;</td>
    <td WIDTH="122" align="right" valign="bottom">&nbsp;</td>
    <td WIDTH="37" align="right" valign="bottom">&nbsp;</td>
    <td WIDTH="118" align="right" valign="bottom">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="1237" colspan="8" valign="bottom"><font SIZE="2">See accompanying notes to interim
    consolidated financial statements.</font></td>
  </tr>
</table>

<p>&nbsp;</p>
<hr color="#000000" size="5"><p Style='page-break-before:always'><b>
<font size="5">
<p align="center">Gildan Activewear Inc.<br>
Consolidated Statements of Earnings</font><font SIZE="2"><br>
</font></b><font SIZE="2">(In thousands of U.S. dollars, except per share data)</p>
</font>
<table CELLSPACING="0" BORDER="0" WIDTH="100%" cellpadding="0" style="border-collapse: collapse" bordercolor="#111111">
  <tr>
    <td WIDTH="55%" align="center" height="26">&nbsp;</td>
    <td WIDTH="29%" align="center" colspan="4" height="26" bordercolor="#9ACCFF" bgcolor="#9ACCFF">
    <font SIZE="2"><i><b>Three months ended</b></i></font></td>
    <td WIDTH="2%" align="center" height="26">&nbsp;</td>
    <td WIDTH="35%" align="center" colspan="4" height="26" bordercolor="#9ACCFF" bgcolor="#9ACCFF">
    <font SIZE="2"><i><b>Six months ended</b></i></font></td>
  </tr>
  <tr>
    <td WIDTH="55%" height="30">&nbsp;</td>
    <td WIDTH="1%" align="right" height="30">&nbsp;</td>
    <td WIDTH="9%" align="right" height="30"><font SIZE="2"><u>April 2, 2006</u></font></td>
    <td WIDTH="2%" align="right" height="30">&nbsp;</td>
    <td WIDTH="9%" align="right" height="30"><font SIZE="2"><u>April 3, 2005</u></font></td>
    <td WIDTH="2%" align="right" height="30">&nbsp;</td>
    <td WIDTH="2%" align="right" height="30">&nbsp;</td>
    <td WIDTH="9%" align="right" height="30"><font SIZE="2"><u>April 2, 2006</u></font></td>
    <td WIDTH="2%" align="right" height="30">&nbsp;</td>
    <td WIDTH="9%" align="right" height="30"><font SIZE="2"><u>April 3, 2005</u></font></td>
  </tr>
  <tr>
    <td WIDTH="55%" height="19">&nbsp;</td>
    <td WIDTH="1%" align="right" height="19">&nbsp;</td>
    <td WIDTH="9%" align="right" height="19"><font SIZE="2">(unaudited)</font></td>
    <td WIDTH="2%" align="right" height="19">&nbsp;</td>
    <td WIDTH="9%" align="right" height="19"><font SIZE="2">(unaudited)</font></td>
    <td WIDTH="2%" align="right" height="19">&nbsp;</td>
    <td WIDTH="2%" align="right" height="19">&nbsp;</td>
    <td WIDTH="9%" align="right" height="19"><font SIZE="2">(unaudited)</font></td>
    <td WIDTH="2%" align="right" height="19">&nbsp;</td>
    <td WIDTH="9%" align="right" height="19"><font SIZE="2">(unaudited)</font></td>
  </tr>
  <tr>
    <td WIDTH="55%" height="19">&nbsp;</td>
    <td WIDTH="1%" align="right" height="19">&nbsp;</td>
    <td WIDTH="9%" align="right" height="19">&nbsp;</td>
    <td WIDTH="2%" align="right" height="19">&nbsp;</td>
    <td WIDTH="9%" align="right" height="19">&nbsp;</td>
    <td WIDTH="2%" align="right" height="19">&nbsp;</td>
    <td WIDTH="2%" align="right" height="19">&nbsp;</td>
    <td WIDTH="9%" align="right" height="19">&nbsp;</td>
    <td WIDTH="2%" align="right" height="19">&nbsp;</td>
    <td WIDTH="9%" align="right" height="19">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="55%" height="19" bgcolor="#E6E6E6"><font SIZE="2">Sales</font></td>
    <td WIDTH="1%" align="right" height="19" bgcolor="#E6E6E6"><font SIZE="2">$</font></td>
    <td WIDTH="9%" align="right" height="19" bgcolor="#E6E6E6"><font SIZE="2">183,783</font></td>
    <td WIDTH="2%" align="right" height="19" bgcolor="#E6E6E6"><font SIZE="2">$</font></td>
    <td WIDTH="9%" align="right" height="19" bgcolor="#E6E6E6"><font SIZE="2">165,321</font></td>
    <td WIDTH="2%" align="right" height="19" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="2%" align="right" height="19" bgcolor="#E6E6E6"><font SIZE="2">$</font></td>
    <td WIDTH="9%" align="right" height="19" bgcolor="#E6E6E6"><font SIZE="2">304,093</font></td>
    <td WIDTH="2%" align="right" height="19" bgcolor="#E6E6E6"><font SIZE="2">$</font></td>
    <td WIDTH="9%" align="right" height="19" bgcolor="#E6E6E6"><font SIZE="2">274,278</font></td>
  </tr>
  <tr>
    <td WIDTH="55%" height="19"><font SIZE="2">Cost of sales</font></td>
    <td WIDTH="1%" align="right" height="19" style="border-bottom-style: solid; border-bottom-width: 2">&nbsp;</td>
    <td WIDTH="9%" align="right" height="19" style="border-bottom-style: solid; border-bottom-width: 2">
    <font SIZE="2">122,375</font></td>
    <td WIDTH="2%" align="right" height="19" style="border-bottom-style: solid; border-bottom-width: 2">&nbsp;</td>
    <td WIDTH="9%" align="right" height="19" style="border-bottom-style: solid; border-bottom-width: 2">
    <font SIZE="2">115,641</font></td>
    <td WIDTH="2%" align="right" height="19">&nbsp;</td>
    <td WIDTH="2%" align="right" height="19" style="border-bottom-style: solid; border-bottom-width: 2">&nbsp;</td>
    <td WIDTH="9%" align="right" height="19" style="border-bottom-style: solid; border-bottom-width: 2">
    <font SIZE="2">199,790</font></td>
    <td WIDTH="2%" align="right" height="19" style="border-bottom-style: solid; border-bottom-width: 2">&nbsp;</td>
    <td WIDTH="9%" align="right" height="19" style="border-bottom-style: solid; border-bottom-width: 2">
    <font SIZE="2">192,218</font></td>
  </tr>
  <tr>
    <td WIDTH="55%" height="19" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="1%" align="right" height="19" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="9%" align="right" height="19" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="2%" align="right" height="19" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="9%" align="right" height="19" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="2%" align="right" height="19" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="2%" align="right" height="19" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="9%" align="right" height="19" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="2%" align="right" height="19" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="9%" align="right" height="19" bgcolor="#E6E6E6">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="55%" height="19"><font SIZE="2">Gross profit</font></td>
    <td WIDTH="1%" align="right" height="19">&nbsp;</td>
    <td WIDTH="9%" align="right" height="19"><font SIZE="2">61,408</font></td>
    <td WIDTH="2%" align="right" height="19">&nbsp;</td>
    <td WIDTH="9%" align="right" height="19"><font SIZE="2">49,680</font></td>
    <td WIDTH="2%" align="right" height="19">&nbsp;</td>
    <td WIDTH="2%" align="right" height="19">&nbsp;</td>
    <td WIDTH="9%" align="right" height="19"><font SIZE="2">104,303</font></td>
    <td WIDTH="2%" align="right" height="19">&nbsp;</td>
    <td WIDTH="9%" align="right" height="19"><font SIZE="2">82,060</font></td>
  </tr>
  <tr>
    <td WIDTH="55%" height="19" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="1%" align="right" height="19" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="9%" align="right" height="19" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="2%" align="right" height="19" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="9%" align="right" height="19" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="2%" align="right" height="19" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="2%" align="right" height="19" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="9%" align="right" height="19" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="2%" align="right" height="19" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="9%" align="right" height="19" bgcolor="#E6E6E6">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="55%" height="30"><font SIZE="2">Selling, general and
    administrative expenses</font></td>
    <td WIDTH="1%" align="right" height="30">&nbsp;</td>
    <td WIDTH="9%" align="right" height="30"><font SIZE="2">20,706</font></td>
    <td WIDTH="2%" align="right" height="30">&nbsp;</td>
    <td WIDTH="9%" align="right" height="30"><font SIZE="2">18,285</font></td>
    <td WIDTH="2%" align="right" height="30">&nbsp;</td>
    <td WIDTH="2%" align="right" height="30">&nbsp;</td>
    <td WIDTH="9%" align="right" height="30"><font SIZE="2">38,769</font></td>
    <td WIDTH="2%" align="right" height="30">&nbsp;</td>
    <td WIDTH="9%" align="right" height="30"><font SIZE="2">34,612</font></td>
  </tr>
  <tr>
    <td WIDTH="55%" height="19" bgcolor="#E6E6E6"><font SIZE="2">Special charge (note 3)</font></td>
    <td WIDTH="1%" align="right" height="19" style="border-bottom-style: solid; border-bottom-width: 2" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="9%" align="right" height="19" style="border-bottom-style: solid; border-bottom-width: 2" bgcolor="#E6E6E6">
    <font SIZE="2">-</font></td>
    <td WIDTH="2%" align="right" height="19" style="border-bottom-style: solid; border-bottom-width: 2" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="9%" align="right" height="19" style="border-bottom-style: solid; border-bottom-width: 2" bgcolor="#E6E6E6">
    <font SIZE="2">11,886</font></td>
    <td WIDTH="2%" align="right" height="19" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="2%" align="right" height="19" style="border-bottom-style: solid; border-bottom-width: 2" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="9%" align="right" height="19" style="border-bottom-style: solid; border-bottom-width: 2" bgcolor="#E6E6E6">
    <font SIZE="2">-</font></td>
    <td WIDTH="2%" align="right" height="19" style="border-bottom-style: solid; border-bottom-width: 2" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="9%" align="right" height="19" style="border-bottom-style: solid; border-bottom-width: 2" bgcolor="#E6E6E6">
    <font SIZE="2">11,886</font></td>
  </tr>
  <tr>
    <td WIDTH="55%" height="19">&nbsp;</td>
    <td WIDTH="1%" align="right" height="19">&nbsp;</td>
    <td WIDTH="9%" align="right" height="19">&nbsp;</td>
    <td WIDTH="2%" align="right" height="19">&nbsp;</td>
    <td WIDTH="9%" align="right" height="19">&nbsp;</td>
    <td WIDTH="2%" align="right" height="19">&nbsp;</td>
    <td WIDTH="2%" align="right" height="19">&nbsp;</td>
    <td WIDTH="9%" align="right" height="19">&nbsp;</td>
    <td WIDTH="2%" align="right" height="19">&nbsp;</td>
    <td WIDTH="9%" align="right" height="19">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="55%" height="19" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="1%" align="right" height="19" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="9%" align="right" height="19" bgcolor="#E6E6E6"><font SIZE="2">40,702</font></td>
    <td WIDTH="2%" align="right" height="19" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="9%" align="right" height="19" bgcolor="#E6E6E6"><font SIZE="2">19,509</font></td>
    <td WIDTH="2%" align="right" height="19" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="2%" align="right" height="19" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="9%" align="right" height="19" bgcolor="#E6E6E6"><font SIZE="2">65,534</font></td>
    <td WIDTH="2%" align="right" height="19" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="9%" align="right" height="19" bgcolor="#E6E6E6"><font SIZE="2">35,562</font></td>
  </tr>
  <tr>
    <td WIDTH="55%" height="19">&nbsp;</td>
    <td WIDTH="1%" align="right" height="19">&nbsp;</td>
    <td WIDTH="9%" align="right" height="19">&nbsp;</td>
    <td WIDTH="2%" align="right" height="19">&nbsp;</td>
    <td WIDTH="9%" align="right" height="19">&nbsp;</td>
    <td WIDTH="2%" align="right" height="19">&nbsp;</td>
    <td WIDTH="2%" align="right" height="19">&nbsp;</td>
    <td WIDTH="9%" align="right" height="19">&nbsp;</td>
    <td WIDTH="2%" align="right" height="19">&nbsp;</td>
    <td WIDTH="9%" align="right" height="19">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="55%" height="19" bgcolor="#E6E6E6"><font SIZE="2">Depreciation and amortization</font></td>
    <td WIDTH="1%" align="right" height="19" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="9%" align="right" height="19" bgcolor="#E6E6E6"><font SIZE="2">7,712</font></td>
    <td WIDTH="2%" align="right" height="19" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="9%" align="right" height="19" bgcolor="#E6E6E6"><font SIZE="2">6,490</font></td>
    <td WIDTH="2%" align="right" height="19" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="2%" align="right" height="19" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="9%" align="right" height="19" bgcolor="#E6E6E6"><font SIZE="2">15,142</font></td>
    <td WIDTH="2%" align="right" height="19" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="9%" align="right" height="19" bgcolor="#E6E6E6"><font SIZE="2">12,370</font></td>
  </tr>
  <tr>
    <td WIDTH="55%" height="19"><font SIZE="2">Interest expense, net</font></td>
    <td WIDTH="1%" align="right" height="19">&nbsp;</td>
    <td WIDTH="9%" align="right" height="19"><font SIZE="2">703</font></td>
    <td WIDTH="2%" align="right" height="19">&nbsp;</td>
    <td WIDTH="9%" align="right" height="19"><font SIZE="2">1,299</font></td>
    <td WIDTH="2%" align="right" height="19">&nbsp;</td>
    <td WIDTH="2%" align="right" height="19">&nbsp;</td>
    <td WIDTH="9%" align="right" height="19"><font SIZE="2">1,269</font></td>
    <td WIDTH="2%" align="right" height="19">&nbsp;</td>
    <td WIDTH="9%" align="right" height="19"><font SIZE="2">2,500</font></td>
  </tr>
  <tr>
    <td WIDTH="55%" height="19" bgcolor="#E6E6E6"><font SIZE="2">Non-controlling interest in
    income of</font></td>
    <td WIDTH="1%" align="right" height="19" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="9%" align="right" height="19" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="2%" align="right" height="19" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="9%" align="right" height="19" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="2%" align="right" height="19" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="2%" align="right" height="19" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="9%" align="right" height="19" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="2%" align="right" height="19" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="9%" align="right" height="19" bgcolor="#E6E6E6">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="55%" height="19"><font SIZE="2">consolidated joint venture</font></td>
    <td WIDTH="1%" align="right" height="19" style="border-bottom-style: solid; border-bottom-width: 2">&nbsp;</td>
    <td WIDTH="9%" align="right" height="19" style="border-bottom-style: solid; border-bottom-width: 2">
    <font SIZE="2">156</font></td>
    <td WIDTH="2%" align="right" height="19" style="border-bottom-style: solid; border-bottom-width: 2">&nbsp;</td>
    <td WIDTH="9%" align="right" height="19" style="border-bottom-style: solid; border-bottom-width: 2">
    <font SIZE="2">115</font></td>
    <td WIDTH="2%" align="right" height="19">&nbsp;</td>
    <td WIDTH="2%" align="right" height="19" style="border-bottom-style: solid; border-bottom-width: 2">&nbsp;</td>
    <td WIDTH="9%" align="right" height="19" style="border-bottom-style: solid; border-bottom-width: 2">
    <font SIZE="2">48</font></td>
    <td WIDTH="2%" align="right" height="19" style="border-bottom-style: solid; border-bottom-width: 2">&nbsp;</td>
    <td WIDTH="9%" align="right" height="19" style="border-bottom-style: solid; border-bottom-width: 2">
    <font SIZE="2">115</font></td>
  </tr>
  <tr>
    <td WIDTH="55%" height="19" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="1%" align="right" height="19" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="9%" align="right" height="19" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="2%" align="right" height="19" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="9%" align="right" height="19" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="2%" align="right" height="19" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="2%" align="right" height="19" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="9%" align="right" height="19" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="2%" align="right" height="19" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="9%" align="right" height="19" bgcolor="#E6E6E6">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="55%" height="19"><font SIZE="2">Earnings before income taxes</font></td>
    <td WIDTH="1%" align="right" height="19">&nbsp;</td>
    <td WIDTH="9%" align="right" height="19"><font SIZE="2">32,131</font></td>
    <td WIDTH="2%" align="right" height="19">&nbsp;</td>
    <td WIDTH="9%" align="right" height="19"><font SIZE="2">11,605</font></td>
    <td WIDTH="2%" align="right" height="19">&nbsp;</td>
    <td WIDTH="2%" align="right" height="19">&nbsp;</td>
    <td WIDTH="9%" align="right" height="19"><font SIZE="2">49,075</font></td>
    <td WIDTH="2%" align="right" height="19">&nbsp;</td>
    <td WIDTH="9%" align="right" height="19"><font SIZE="2">20,577</font></td>
  </tr>
  <tr>
    <td WIDTH="55%" height="19" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="1%" align="right" height="19" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="9%" align="right" height="19" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="2%" align="right" height="19" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="9%" align="right" height="19" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="2%" align="right" height="19" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="2%" align="right" height="19" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="9%" align="right" height="19" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="2%" align="right" height="19" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="9%" align="right" height="19" bgcolor="#E6E6E6">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="55%" height="19"><font SIZE="2">Income tax expense (recovery)</font></td>
    <td WIDTH="1%" align="right" height="19" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="9%" align="right" height="19" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2">1,116</font></td>
    <td WIDTH="2%" align="right" height="19" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="9%" align="right" height="19" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2">(2,707)</font></td>
    <td WIDTH="2%" align="right" height="19">&nbsp;</td>
    <td WIDTH="2%" align="right" height="19" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="9%" align="right" height="19" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2">1,865</font></td>
    <td WIDTH="2%" align="right" height="19" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="9%" align="right" height="19" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2">(2,122)</font></td>
  </tr>
  <tr>
    <td WIDTH="55%" height="19" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="1%" align="right" height="19" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="9%" align="right" height="19" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="2%" align="right" height="19" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="9%" align="right" height="19" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="2%" align="right" height="19" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="2%" align="right" height="19" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="9%" align="right" height="19" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="2%" align="right" height="19" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="9%" align="right" height="19" bgcolor="#E6E6E6">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="55%" height="19"><font SIZE="2">Net earnings</font></td>
    <td WIDTH="1%" align="right" height="19" style="border-bottom-style: solid; border-bottom-width: 3">
    <font SIZE="2">$</font></td>
    <td WIDTH="9%" align="right" height="19" style="border-bottom-style: solid; border-bottom-width: 3">
    <font SIZE="2">31,015</font></td>
    <td WIDTH="2%" align="right" height="19" style="border-bottom-style: solid; border-bottom-width: 3">
    <font SIZE="2">$</font></td>
    <td WIDTH="9%" align="right" height="19" style="border-bottom-style: solid; border-bottom-width: 3">
    <font SIZE="2">14,312</font></td>
    <td WIDTH="2%" align="right" height="19">&nbsp;</td>
    <td WIDTH="2%" align="right" height="19" style="border-bottom-style: solid; border-bottom-width: 3">
    <font SIZE="2">$</font></td>
    <td WIDTH="9%" align="right" height="19" style="border-bottom-style: solid; border-bottom-width: 3">
    <font SIZE="2">47,210</font></td>
    <td WIDTH="2%" align="right" height="19" style="border-bottom-style: solid; border-bottom-width: 3">
    <font SIZE="2">$</font></td>
    <td WIDTH="9%" align="right" height="19" style="border-bottom-style: solid; border-bottom-width: 3">
    <font SIZE="2">22,699</font></td>
  </tr>
  <tr>
    <td WIDTH="55%" height="19" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="1%" align="right" height="19" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="9%" align="right" height="19" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="2%" align="right" height="19" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="9%" align="right" height="19" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="2%" align="right" height="19" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="2%" align="right" height="19" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="9%" align="right" height="19" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="2%" align="right" height="19" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="9%" align="right" height="19" bgcolor="#E6E6E6">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="55%" height="19">&nbsp;</td>
    <td WIDTH="1%" align="right" height="19">&nbsp;</td>
    <td WIDTH="9%" align="right" height="19">&nbsp;</td>
    <td WIDTH="2%" align="right" height="19">&nbsp;</td>
    <td WIDTH="9%" align="right" height="19">&nbsp;</td>
    <td WIDTH="2%" align="right" height="19">&nbsp;</td>
    <td WIDTH="2%" align="right" height="19">&nbsp;</td>
    <td WIDTH="9%" align="right" height="19">&nbsp;</td>
    <td WIDTH="2%" align="right" height="19">&nbsp;</td>
    <td WIDTH="9%" align="right" height="19">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="55%" height="19" bgcolor="#E6E6E6"><font SIZE="2">Basic E.P.S. (note 5)</font></td>
    <td WIDTH="1%" align="right" height="19" bgcolor="#E6E6E6"><font SIZE="2">$</font></td>
    <td WIDTH="9%" align="right" height="19" bgcolor="#E6E6E6"><font SIZE="2">0.52</font></td>
    <td WIDTH="2%" align="right" height="19" bgcolor="#E6E6E6"><font SIZE="2">$</font></td>
    <td WIDTH="9%" align="right" height="19" bgcolor="#E6E6E6"><font SIZE="2">0.24</font></td>
    <td WIDTH="2%" align="right" height="19" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="2%" align="right" height="19" bgcolor="#E6E6E6"><font SIZE="2">$</font></td>
    <td WIDTH="9%" align="right" height="19" bgcolor="#E6E6E6"><font SIZE="2">0.79</font></td>
    <td WIDTH="2%" align="right" height="19" bgcolor="#E6E6E6"><font SIZE="2">$</font></td>
    <td WIDTH="9%" align="right" height="19" bgcolor="#E6E6E6"><font SIZE="2">0.38</font></td>
  </tr>
  <tr>
    <td WIDTH="55%" height="19">&nbsp;</td>
    <td WIDTH="1%" align="right" height="19">&nbsp;</td>
    <td WIDTH="9%" align="right" height="19">&nbsp;</td>
    <td WIDTH="2%" align="right" height="19">&nbsp;</td>
    <td WIDTH="9%" align="right" height="19">&nbsp;</td>
    <td WIDTH="2%" align="right" height="19">&nbsp;</td>
    <td WIDTH="2%" align="right" height="19">&nbsp;</td>
    <td WIDTH="9%" align="right" height="19">&nbsp;</td>
    <td WIDTH="2%" align="right" height="19">&nbsp;</td>
    <td WIDTH="9%" align="right" height="19">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="55%" height="19" bgcolor="#E6E6E6"><font SIZE="2">Diluted E.P.S. (note 5)</font></td>
    <td WIDTH="1%" align="right" height="19" bgcolor="#E6E6E6"><font SIZE="2">$</font></td>
    <td WIDTH="9%" align="right" height="19" bgcolor="#E6E6E6"><font SIZE="2">0.51</font></td>
    <td WIDTH="2%" align="right" height="19" bgcolor="#E6E6E6"><font SIZE="2">$</font></td>
    <td WIDTH="9%" align="right" height="19" bgcolor="#E6E6E6"><font SIZE="2">0.24</font></td>
    <td WIDTH="2%" align="right" height="19" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="2%" align="right" height="19" bgcolor="#E6E6E6"><font SIZE="2">$</font></td>
    <td WIDTH="9%" align="right" height="19" bgcolor="#E6E6E6"><font SIZE="2">0.78</font></td>
    <td WIDTH="2%" align="right" height="19" bgcolor="#E6E6E6"><font SIZE="2">$</font></td>
    <td WIDTH="9%" align="right" height="19" bgcolor="#E6E6E6"><font SIZE="2">0.38</font></td>
  </tr>
  <tr>
    <td WIDTH="55%" height="19">&nbsp;</td>
    <td WIDTH="1%" align="right" height="19">&nbsp;</td>
    <td WIDTH="9%" align="right" height="19">&nbsp;</td>
    <td WIDTH="2%" align="right" height="19">&nbsp;</td>
    <td WIDTH="9%" align="right" height="19">&nbsp;</td>
    <td WIDTH="2%" align="right" height="19">&nbsp;</td>
    <td WIDTH="2%" align="right" height="19">&nbsp;</td>
    <td WIDTH="9%" align="right" height="19">&nbsp;</td>
    <td WIDTH="2%" align="right" height="19">&nbsp;</td>
    <td WIDTH="9%" align="right" height="19">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="55%" height="19">&nbsp;</td>
    <td WIDTH="1%" align="right" height="19">&nbsp;</td>
    <td WIDTH="9%" align="right" height="19">&nbsp;</td>
    <td WIDTH="2%" align="right" height="19">&nbsp;</td>
    <td WIDTH="9%" align="right" height="19">&nbsp;</td>
    <td WIDTH="2%" align="right" height="19">&nbsp;</td>
    <td WIDTH="2%" align="right" height="19">&nbsp;</td>
    <td WIDTH="9%" align="right" height="19">&nbsp;</td>
    <td WIDTH="2%" align="right" height="19">&nbsp;</td>
    <td WIDTH="9%" align="right" height="19">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="120%" COLSPAN="10" height="19"><font SIZE="5"><b>
    <p align="center">Consolidated Statements of Retained Earnings<br>
    </b></font><font SIZE="2">(In thousands of U.S. dollars)</font></td>
  </tr>
  <tr>
    <td WIDTH="55%" height="19">&nbsp;</td>
    <td WIDTH="1%" align="right" height="19">&nbsp;</td>
    <td WIDTH="9%" align="right" height="19">&nbsp;</td>
    <td WIDTH="2%" align="right" height="19">&nbsp;</td>
    <td WIDTH="9%" align="right" height="19">&nbsp;</td>
    <td WIDTH="2%" align="right" height="19">&nbsp;</td>
    <td WIDTH="2%" align="right" height="19">&nbsp;</td>
    <td WIDTH="9%" align="right" height="19">&nbsp;</td>
    <td WIDTH="2%" align="right" height="19">&nbsp;</td>
    <td WIDTH="9%" align="right" height="19">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="55%" align="center" height="26">&nbsp;</td>
    <td WIDTH="29%" align="center" colspan="4" height="26" bordercolor="#9ACCFF" bgcolor="#9ACCFF">
    <font SIZE="2"><i><b>Three months ended</b></i></font></td>
    <td WIDTH="2%" align="center" height="26">&nbsp;</td>
    <td WIDTH="35%" align="center" colspan="4" height="26" bordercolor="#9ACCFF" bgcolor="#9ACCFF">
    <font SIZE="2"><i><b>Six months ended</b></i></font></td>
  </tr>
  <tr>
    <td WIDTH="55%" height="30">&nbsp;</td>
    <td WIDTH="1%" align="right" height="30">&nbsp;</td>
    <td WIDTH="9%" align="right" height="30"><font SIZE="2"><u>April 2, 2006</u></font></td>
    <td WIDTH="2%" align="right" height="30">&nbsp;</td>
    <td WIDTH="9%" align="right" height="30"><font SIZE="2"><u>April 3, 2005</u></font></td>
    <td WIDTH="2%" align="right" height="30">&nbsp;</td>
    <td WIDTH="2%" align="right" height="30">&nbsp;</td>
    <td WIDTH="9%" align="right" height="30"><font SIZE="2"><u>April 2, 2006</u></font></td>
    <td WIDTH="2%" align="right" height="30">&nbsp;</td>
    <td WIDTH="9%" align="right" height="30"><font SIZE="2"><u>April 3, 2005</u></font></td>
  </tr>
  <tr>
    <td WIDTH="55%" height="19">&nbsp;</td>
    <td WIDTH="1%" align="right" height="19">&nbsp;</td>
    <td WIDTH="9%" align="right" height="19"><font SIZE="2">(unaudited)</font></td>
    <td WIDTH="2%" align="right" height="19">&nbsp;</td>
    <td WIDTH="9%" align="right" height="19"><font SIZE="2">(unaudited)</font></td>
    <td WIDTH="2%" align="right" height="19">&nbsp;</td>
    <td WIDTH="2%" align="right" height="19">&nbsp;</td>
    <td WIDTH="9%" align="right" height="19"><font SIZE="2">(unaudited)</font></td>
    <td WIDTH="2%" align="right" height="19">&nbsp;</td>
    <td WIDTH="9%" align="right" height="19"><font SIZE="2">(unaudited)</font></td>
  </tr>
  <tr>
    <td WIDTH="55%" height="19">&nbsp;</td>
    <td WIDTH="1%" align="right" height="19">&nbsp;</td>
    <td WIDTH="9%" align="right" height="19">&nbsp;</td>
    <td WIDTH="2%" align="right" height="19">&nbsp;</td>
    <td WIDTH="9%" align="right" height="19">&nbsp;</td>
    <td WIDTH="2%" align="right" height="19">&nbsp;</td>
    <td WIDTH="2%" align="right" height="19">&nbsp;</td>
    <td WIDTH="9%" align="right" height="19">&nbsp;</td>
    <td WIDTH="2%" align="right" height="19">&nbsp;</td>
    <td WIDTH="9%" align="right" height="19">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="55%" height="19" bgcolor="#E6E6E6"><font SIZE="2">Retained earnings, beginning of
    the period</font></td>
    <td WIDTH="1%" align="right" height="19" bgcolor="#E6E6E6"><font SIZE="2">$</font></td>
    <td WIDTH="9%" align="right" height="19" bgcolor="#E6E6E6"><font SIZE="2">324,734</font></td>
    <td WIDTH="2%" align="right" height="19" bgcolor="#E6E6E6"><font SIZE="2">$</font></td>
    <td WIDTH="9%" align="right" height="19" bgcolor="#E6E6E6"><font SIZE="2">230,883</font></td>
    <td WIDTH="2%" align="right" height="19" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="2%" align="right" height="19" bgcolor="#E6E6E6"><font SIZE="2">$</font></td>
    <td WIDTH="9%" align="right" height="19" bgcolor="#E6E6E6"><font SIZE="2">308,539</font></td>
    <td WIDTH="2%" align="right" height="19" bgcolor="#E6E6E6"><font SIZE="2">$</font></td>
    <td WIDTH="9%" align="right" height="19" bgcolor="#E6E6E6"><font SIZE="2">222,496</font></td>
  </tr>
  <tr>
    <td WIDTH="55%" height="19"><font SIZE="2">Net earnings</font></td>
    <td WIDTH="1%" align="right" height="19" style="border-bottom-style: solid; border-bottom-width: 2">&nbsp;</td>
    <td WIDTH="9%" align="right" height="19" style="border-bottom-style: solid; border-bottom-width: 2">
    <font SIZE="2">31,015</font></td>
    <td WIDTH="2%" align="right" height="19" style="border-bottom-style: solid; border-bottom-width: 2">&nbsp;</td>
    <td WIDTH="9%" align="right" height="19" style="border-bottom-style: solid; border-bottom-width: 2">
    <font SIZE="2">14,312</font></td>
    <td WIDTH="2%" align="right" height="19">&nbsp;</td>
    <td WIDTH="2%" align="right" height="19" style="border-bottom-style: solid; border-bottom-width: 2">&nbsp;</td>
    <td WIDTH="9%" align="right" height="19" style="border-bottom-style: solid; border-bottom-width: 2">
    <font SIZE="2">47,210</font></td>
    <td WIDTH="2%" align="right" height="19" style="border-bottom-style: solid; border-bottom-width: 2">&nbsp;</td>
    <td WIDTH="9%" align="right" height="19" style="border-bottom-style: solid; border-bottom-width: 2">
    <font SIZE="2">22,699</font></td>
  </tr>
  <tr>
    <td WIDTH="55%" height="19" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="1%" align="right" height="19" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="9%" align="right" height="19" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="2%" align="right" height="19" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="9%" align="right" height="19" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="2%" align="right" height="19" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="2%" align="right" height="19" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="9%" align="right" height="19" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="2%" align="right" height="19" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="9%" align="right" height="19" bgcolor="#E6E6E6">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="55%" height="19"><font SIZE="2">Retained earnings, end of the
    period</font></td>
    <td WIDTH="1%" align="right" height="19" style="border-bottom-style: solid; border-bottom-width: 3">
    <font SIZE="2">$</font></td>
    <td WIDTH="9%" align="right" height="19" style="border-bottom-style: solid; border-bottom-width: 3">
    <font SIZE="2">355,749</font></td>
    <td WIDTH="2%" align="right" height="19" style="border-bottom-style: solid; border-bottom-width: 3">
    <font SIZE="2">$</font></td>
    <td WIDTH="9%" align="right" height="19" style="border-bottom-style: solid; border-bottom-width: 3">
    <font SIZE="2">245,195</font></td>
    <td WIDTH="2%" align="right" height="19">&nbsp;</td>
    <td WIDTH="2%" align="right" height="19" style="border-bottom-style: solid; border-bottom-width: 3">
    <font SIZE="2">$</font></td>
    <td WIDTH="9%" align="right" height="19" style="border-bottom-style: solid; border-bottom-width: 3">
    <font SIZE="2">355,749</font></td>
    <td WIDTH="2%" align="right" height="19" style="border-bottom-style: solid; border-bottom-width: 3">
    <font SIZE="2">$</font></td>
    <td WIDTH="9%" align="right" height="19" style="border-bottom-style: solid; border-bottom-width: 3">
    <font SIZE="2">245,195</font></td>
  </tr>
  <tr>
    <td WIDTH="55%" height="19">&nbsp;</td>
    <td WIDTH="1%" align="right" height="19">&nbsp;</td>
    <td WIDTH="9%" align="right" height="19">&nbsp;</td>
    <td WIDTH="2%" align="right" height="19">&nbsp;</td>
    <td WIDTH="9%" align="right" height="19">&nbsp;</td>
    <td WIDTH="2%" align="right" height="19">&nbsp;</td>
    <td WIDTH="2%" align="right" height="19">&nbsp;</td>
    <td WIDTH="9%" align="right" height="19">&nbsp;</td>
    <td WIDTH="2%" align="right" height="19">&nbsp;</td>
    <td WIDTH="9%" align="right" height="19">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="55%" height="19">&nbsp;</td>
    <td WIDTH="1%" align="right" height="19">&nbsp;</td>
    <td WIDTH="9%" align="right" height="19">&nbsp;</td>
    <td WIDTH="2%" align="right" height="19">&nbsp;</td>
    <td WIDTH="9%" align="right" height="19">&nbsp;</td>
    <td WIDTH="2%" align="right" height="19">&nbsp;</td>
    <td WIDTH="2%" align="right" height="19">&nbsp;</td>
    <td WIDTH="9%" align="right" height="19">&nbsp;</td>
    <td WIDTH="2%" align="right" height="19">&nbsp;</td>
    <td WIDTH="9%" align="right" height="19">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="116%" COLSPAN="10" height="18"><font SIZE="2">See accompanying
    notes to interim consolidated financial statements.</font></td>
  </tr>
</table>
<p>&nbsp;</p>
<hr color="#000000" size="5"><p Style='page-break-before:always'><b>
<p align="center"><font size="5">Gildan Activewear Inc.<br>
Consolidated Statements of Cash Flows</font><font SIZE="2"><br>
</font></b><font SIZE="2">(In thousands of U.S. dollars)</p>
</font>
<table CELLSPACING="0" BORDER="0" WIDTH="100%" cellpadding="0" style="border-collapse: collapse" bordercolor="#111111">
  <tr>
    <td WIDTH="55%" align="center" height="27" valign="bottom">&nbsp;</td>
    <td WIDTH="26%" align="center" colspan="4" height="27" bordercolor="#9ACCFF" bgcolor="#9ACCFF" valign="bottom">
    <font SIZE="2"><i><b>Three months ended</b></i></font></td>
    <td WIDTH="2%" align="center" height="27" valign="bottom">&nbsp;</td>
    <td WIDTH="53%" align="center" colspan="4" height="27" bordercolor="#9ACCFF" bgcolor="#9ACCFF" valign="bottom">
    <font SIZE="2"><i><b>Six months ended</b></i></font></td>
  </tr>
  <tr>
    <td WIDTH="41%" height="19" valign="bottom">&nbsp;</td>
    <td WIDTH="1%" align="right" height="19" valign="bottom">&nbsp;</td>
    <td WIDTH="9%" align="right" height="19" valign="bottom">&nbsp;</td>
    <td WIDTH="2%" align="right" height="19" valign="bottom">&nbsp;</td>
    <td WIDTH="9%" align="right" height="19" valign="bottom">&nbsp;</td>
    <td WIDTH="2%" align="right" height="19" valign="bottom">&nbsp;</td>
    <td WIDTH="2%" align="right" height="19" valign="bottom">&nbsp;</td>
    <td WIDTH="9%" align="right" height="19" valign="bottom">&nbsp;</td>
    <td WIDTH="2%" align="right" height="19" valign="bottom">&nbsp;</td>
    <td WIDTH="9%" align="right" height="19" valign="bottom">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="41%" height="30" valign="bottom">&nbsp;</td>
    <td WIDTH="1%" align="right" height="30" valign="bottom">&nbsp;</td>
    <td WIDTH="9%" align="right" height="30" valign="bottom"><font SIZE="2"><u>
    April 2, 2006</u></font></td>
    <td WIDTH="2%" align="right" height="30" valign="bottom">&nbsp;</td>
    <td WIDTH="9%" align="right" height="30" valign="bottom"><font SIZE="2"><u>
    April 3, 2005</u></font></td>
    <td WIDTH="2%" align="right" height="30" valign="bottom">&nbsp;</td>
    <td WIDTH="2%" align="right" height="30" valign="bottom">&nbsp;</td>
    <td WIDTH="9%" align="right" height="30" valign="bottom"><font SIZE="2"><u>
    April 2, 2006</u></font></td>
    <td WIDTH="2%" align="right" height="30" valign="bottom">&nbsp;</td>
    <td WIDTH="9%" align="right" height="30" valign="bottom"><font SIZE="2"><u>
    April 3, 2005</u></font></td>
  </tr>
  <tr>
    <td WIDTH="41%" height="19" valign="bottom">&nbsp;</td>
    <td WIDTH="1%" align="right" height="19" valign="bottom">&nbsp;</td>
    <td WIDTH="9%" align="right" height="19" valign="bottom"><font SIZE="2">(unaudited)</font></td>
    <td WIDTH="2%" align="right" height="19" valign="bottom">&nbsp;</td>
    <td WIDTH="9%" align="right" height="19" valign="bottom"><font SIZE="2">(unaudited)</font></td>
    <td WIDTH="2%" align="right" height="19" valign="bottom">&nbsp;</td>
    <td WIDTH="2%" align="right" height="19" valign="bottom">&nbsp;</td>
    <td WIDTH="9%" align="right" height="19" valign="bottom"><font SIZE="2">(unaudited)</font></td>
    <td WIDTH="2%" align="right" height="19" valign="bottom">&nbsp;</td>
    <td WIDTH="9%" align="right" height="19" valign="bottom"><font SIZE="2">(unaudited)</font></td>
  </tr>
  <tr>
    <td WIDTH="41%" height="19" valign="bottom">&nbsp;</td>
    <td WIDTH="1%" align="right" height="19" valign="bottom">&nbsp;</td>
    <td WIDTH="9%" align="right" height="19" valign="bottom">&nbsp;</td>
    <td WIDTH="2%" align="right" height="19" valign="bottom">&nbsp;</td>
    <td WIDTH="9%" align="right" height="19" valign="bottom">&nbsp;</td>
    <td WIDTH="2%" align="right" height="19" valign="bottom">&nbsp;</td>
    <td WIDTH="2%" align="right" height="19" valign="bottom">&nbsp;</td>
    <td WIDTH="9%" align="right" height="19" valign="bottom">&nbsp;</td>
    <td WIDTH="2%" align="right" height="19" valign="bottom">&nbsp;</td>
    <td WIDTH="9%" align="right" height="19" valign="bottom">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="41%" height="19" valign="bottom" bgcolor="#E6E6E6"><font SIZE="2">Cash flows from
    (used in) operating activities:</font></td>
    <td WIDTH="1%" align="right" height="19" valign="bottom" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="9%" align="right" height="19" valign="bottom" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="2%" align="right" height="19" valign="bottom" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="9%" align="right" height="19" valign="bottom" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="2%" align="right" height="19" valign="bottom" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="2%" align="right" height="19" valign="bottom" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="9%" align="right" height="19" valign="bottom" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="2%" align="right" height="19" valign="bottom" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="9%" align="right" height="19" valign="bottom" bgcolor="#E6E6E6">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="41%" height="19" valign="bottom"><font SIZE="2">
    <p style="margin-left: 26">Net earnings</font></td>
    <td WIDTH="1%" align="right" height="19" valign="bottom"><font SIZE="2">$</font></td>
    <td WIDTH="9%" align="right" height="19" valign="bottom"><font SIZE="2">
    31,015</font></td>
    <td WIDTH="2%" align="right" height="19" valign="bottom"><font SIZE="2">$</font></td>
    <td WIDTH="9%" align="right" height="19" valign="bottom"><font SIZE="2">
    14,312</font></td>
    <td WIDTH="2%" align="right" height="19" valign="bottom">&nbsp;</td>
    <td WIDTH="2%" align="right" height="19" valign="bottom"><font SIZE="2">$</font></td>
    <td WIDTH="9%" align="right" height="19" valign="bottom"><font SIZE="2">
    47,210</font></td>
    <td WIDTH="2%" align="right" height="19" valign="bottom"><font SIZE="2">$</font></td>
    <td WIDTH="9%" align="right" height="19" valign="bottom"><font SIZE="2">
    22,699</font></td>
  </tr>
  <tr>
    <td WIDTH="41%" height="19" valign="bottom" bgcolor="#E6E6E6"><font SIZE="2">
    <p style="margin-left: 26">Adjustments for:</font></td>
    <td WIDTH="1%" align="right" height="19" valign="bottom" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="9%" align="right" height="19" valign="bottom" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="2%" align="right" height="19" valign="bottom" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="9%" align="right" height="19" valign="bottom" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="2%" align="right" height="19" valign="bottom" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="2%" align="right" height="19" valign="bottom" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="9%" align="right" height="19" valign="bottom" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="2%" align="right" height="19" valign="bottom" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="9%" align="right" height="19" valign="bottom" bgcolor="#E6E6E6">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="41%" height="19" valign="bottom"><font SIZE="2">
    <p style="margin-left: 52">Depreciation and amortization</font></td>
    <td WIDTH="1%" align="right" height="19" valign="bottom">&nbsp;</td>
    <td WIDTH="9%" align="right" height="19" valign="bottom"><font SIZE="2">
    7,712</font></td>
    <td WIDTH="2%" align="right" height="19" valign="bottom">&nbsp;</td>
    <td WIDTH="9%" align="right" height="19" valign="bottom"><font SIZE="2">
    6,490</font></td>
    <td WIDTH="2%" align="right" height="19" valign="bottom">&nbsp;</td>
    <td WIDTH="2%" align="right" height="19" valign="bottom">&nbsp;</td>
    <td WIDTH="9%" align="right" height="19" valign="bottom"><font SIZE="2">
    15,142</font></td>
    <td WIDTH="2%" align="right" height="19" valign="bottom">&nbsp;</td>
    <td WIDTH="9%" align="right" height="19" valign="bottom"><font SIZE="2">
    12,370</font></td>
  </tr>
  <tr>
    <td WIDTH="41%" height="19" valign="bottom" bgcolor="#E6E6E6"><font SIZE="2">
    <p style="margin-left: 52">Future income taxes</font></td>
    <td WIDTH="1%" align="right" height="19" valign="bottom" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="9%" align="right" height="19" valign="bottom" bgcolor="#E6E6E6"><font SIZE="2">191</font></td>
    <td WIDTH="2%" align="right" height="19" valign="bottom" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="9%" align="right" height="19" valign="bottom" bgcolor="#E6E6E6"><font SIZE="2">
    (3,191)</font></td>
    <td WIDTH="2%" align="right" height="19" valign="bottom" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="2%" align="right" height="19" valign="bottom" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="9%" align="right" height="19" valign="bottom" bgcolor="#E6E6E6"><font SIZE="2">418</font></td>
    <td WIDTH="2%" align="right" height="19" valign="bottom" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="9%" align="right" height="19" valign="bottom" bgcolor="#E6E6E6"><font SIZE="2">
    (3,374)</font></td>
  </tr>
  <tr>
    <td WIDTH="41%" height="19" valign="bottom"><font SIZE="2">
    <p style="margin-left: 52">Loss on disposal and writedown of fixed assets</font></td>
    <td WIDTH="1%" align="right" height="19" valign="bottom">&nbsp;</td>
    <td WIDTH="9%" align="right" height="19" valign="bottom"><font SIZE="2">302</font></td>
    <td WIDTH="2%" align="right" height="19" valign="bottom">&nbsp;</td>
    <td WIDTH="9%" align="right" height="19" valign="bottom"><font SIZE="2">
    8,034</font></td>
    <td WIDTH="2%" align="right" height="19" valign="bottom">&nbsp;</td>
    <td WIDTH="2%" align="right" height="19" valign="bottom">&nbsp;</td>
    <td WIDTH="9%" align="right" height="19" valign="bottom"><font SIZE="2">342</font></td>
    <td WIDTH="2%" align="right" height="19" valign="bottom">&nbsp;</td>
    <td WIDTH="9%" align="right" height="19" valign="bottom"><font SIZE="2">
    8,359</font></td>
  </tr>
  <tr>
    <td WIDTH="41%" height="19" valign="bottom" bgcolor="#E6E6E6"><font SIZE="2">
    <p style="margin-left: 52">Stock-based compensation expense</font></td>
    <td WIDTH="1%" align="right" height="19" valign="bottom" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="9%" align="right" height="19" valign="bottom" bgcolor="#E6E6E6"><font SIZE="2">248</font></td>
    <td WIDTH="2%" align="right" height="19" valign="bottom" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="9%" align="right" height="19" valign="bottom" bgcolor="#E6E6E6"><font SIZE="2">217</font></td>
    <td WIDTH="2%" align="right" height="19" valign="bottom" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="2%" align="right" height="19" valign="bottom" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="9%" align="right" height="19" valign="bottom" bgcolor="#E6E6E6"><font SIZE="2">525</font></td>
    <td WIDTH="2%" align="right" height="19" valign="bottom" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="9%" align="right" height="19" valign="bottom" bgcolor="#E6E6E6"><font SIZE="2">417</font></td>
  </tr>
  <tr>
    <td WIDTH="41%" height="19" valign="bottom"><font SIZE="2">
    <p style="margin-left: 52">Other</font></td>
    <td WIDTH="1%" align="right" height="19" style="border-bottom-style: solid; border-bottom-width: 2" valign="bottom">&nbsp;</td>
    <td WIDTH="9%" align="right" height="19" style="border-bottom-style: solid; border-bottom-width: 2" valign="bottom">
    <font SIZE="2">20</font></td>
    <td WIDTH="2%" align="right" height="19" style="border-bottom-style: solid; border-bottom-width: 2" valign="bottom">&nbsp;</td>
    <td WIDTH="9%" align="right" height="19" style="border-bottom-style: solid; border-bottom-width: 2" valign="bottom">
    <font SIZE="2">313</font></td>
    <td WIDTH="2%" align="right" height="19" valign="bottom">&nbsp;</td>
    <td WIDTH="2%" align="right" height="19" style="border-bottom-style: solid; border-bottom-width: 2" valign="bottom">&nbsp;</td>
    <td WIDTH="9%" align="right" height="19" style="border-bottom-style: solid; border-bottom-width: 2" valign="bottom">
    <font SIZE="2">167</font></td>
    <td WIDTH="2%" align="right" height="19" style="border-bottom-style: solid; border-bottom-width: 2" valign="bottom">&nbsp;</td>
    <td WIDTH="9%" align="right" height="19" style="border-bottom-style: solid; border-bottom-width: 2" valign="bottom">
    <font SIZE="2">154</font></td>
  </tr>
  <tr>
    <td WIDTH="41%" height="19" valign="bottom" bgcolor="#E6E6E6">
    <p style="margin-left: 26">&nbsp;</td>
    <td WIDTH="1%" align="right" height="19" valign="bottom" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="9%" align="right" height="19" valign="bottom" bgcolor="#E6E6E6"><font SIZE="2">
    39,488</font></td>
    <td WIDTH="2%" align="right" height="19" valign="bottom" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="9%" align="right" height="19" valign="bottom" bgcolor="#E6E6E6"><font SIZE="2">
    26,175</font></td>
    <td WIDTH="2%" align="right" height="19" valign="bottom" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="2%" align="right" height="19" valign="bottom" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="9%" align="right" height="19" valign="bottom" bgcolor="#E6E6E6"><font SIZE="2">
    63,804</font></td>
    <td WIDTH="2%" align="right" height="19" valign="bottom" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="9%" align="right" height="19" valign="bottom" bgcolor="#E6E6E6"><font SIZE="2">
    40,625</font></td>
  </tr>
  <tr>
    <td WIDTH="41%" height="19" valign="bottom"><font SIZE="2">
    <p style="margin-left: 26">Net changes in non-cash working capital balances:</font></td>
    <td WIDTH="1%" align="right" height="19" valign="bottom">&nbsp;</td>
    <td WIDTH="9%" align="right" height="19" valign="bottom">&nbsp;</td>
    <td WIDTH="2%" align="right" height="19" valign="bottom">&nbsp;</td>
    <td WIDTH="9%" align="right" height="19" valign="bottom">&nbsp;</td>
    <td WIDTH="2%" align="right" height="19" valign="bottom">&nbsp;</td>
    <td WIDTH="2%" align="right" height="19" valign="bottom">&nbsp;</td>
    <td WIDTH="9%" align="right" height="19" valign="bottom">&nbsp;</td>
    <td WIDTH="2%" align="right" height="19" valign="bottom">&nbsp;</td>
    <td WIDTH="9%" align="right" height="19" valign="bottom">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="41%" height="19" valign="bottom" bgcolor="#E6E6E6"><font SIZE="2">
    <p style="margin-left: 52">Accounts receivable</font></td>
    <td WIDTH="1%" align="right" height="19" valign="bottom" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="9%" align="right" height="19" valign="bottom" bgcolor="#E6E6E6"><font SIZE="2">
    (51,573)</font></td>
    <td WIDTH="2%" align="right" height="19" valign="bottom" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="9%" align="right" height="19" valign="bottom" bgcolor="#E6E6E6"><font SIZE="2">
    (40,390)</font></td>
    <td WIDTH="2%" align="right" height="19" valign="bottom" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="2%" align="right" height="19" valign="bottom" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="9%" align="right" height="19" valign="bottom" bgcolor="#E6E6E6"><font SIZE="2">
    5,256</font></td>
    <td WIDTH="2%" align="right" height="19" valign="bottom" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="9%" align="right" height="19" valign="bottom" bgcolor="#E6E6E6"><font SIZE="2">
    (2,689)</font></td>
  </tr>
  <tr>
    <td WIDTH="41%" height="19" valign="bottom"><font SIZE="2">
    <p style="margin-left: 52">Inventories</font></td>
    <td WIDTH="1%" align="right" height="19" valign="bottom">&nbsp;</td>
    <td WIDTH="9%" align="right" height="19" valign="bottom"><font SIZE="2">
    (7,747)</font></td>
    <td WIDTH="2%" align="right" height="19" valign="bottom">&nbsp;</td>
    <td WIDTH="9%" align="right" height="19" valign="bottom"><font SIZE="2">
    1,269</font></td>
    <td WIDTH="2%" align="right" height="19" valign="bottom">&nbsp;</td>
    <td WIDTH="2%" align="right" height="19" valign="bottom">&nbsp;</td>
    <td WIDTH="9%" align="right" height="19" valign="bottom"><font SIZE="2">
    (51,730)</font></td>
    <td WIDTH="2%" align="right" height="19" valign="bottom">&nbsp;</td>
    <td WIDTH="9%" align="right" height="19" valign="bottom"><font SIZE="2">
    (24,036)</font></td>
  </tr>
  <tr>
    <td WIDTH="41%" height="19" valign="bottom" bgcolor="#E6E6E6"><font SIZE="2">
    <p style="margin-left: 52">Prepaid expenses and deposits</font></td>
    <td WIDTH="1%" align="right" height="19" valign="bottom" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="9%" align="right" height="19" valign="bottom" bgcolor="#E6E6E6"><font SIZE="2">
    (624)</font></td>
    <td WIDTH="2%" align="right" height="19" valign="bottom" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="9%" align="right" height="19" valign="bottom" bgcolor="#E6E6E6"><font SIZE="2">
    (879)</font></td>
    <td WIDTH="2%" align="right" height="19" valign="bottom" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="2%" align="right" height="19" valign="bottom" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="9%" align="right" height="19" valign="bottom" bgcolor="#E6E6E6"><font SIZE="2">505</font></td>
    <td WIDTH="2%" align="right" height="19" valign="bottom" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="9%" align="right" height="19" valign="bottom" bgcolor="#E6E6E6"><font SIZE="2">
    (3,439)</font></td>
  </tr>
  <tr>
    <td WIDTH="41%" height="19" valign="bottom"><font SIZE="2">
    <p style="margin-left: 52">Accounts payable and accrued liabilities</font></td>
    <td WIDTH="1%" align="right" height="19" valign="bottom">&nbsp;</td>
    <td WIDTH="9%" align="right" height="19" valign="bottom"><font SIZE="2">
    2,485</font></td>
    <td WIDTH="2%" align="right" height="19" valign="bottom">&nbsp;</td>
    <td WIDTH="9%" align="right" height="19" valign="bottom"><font SIZE="2">
    10,175</font></td>
    <td WIDTH="2%" align="right" height="19" valign="bottom">&nbsp;</td>
    <td WIDTH="2%" align="right" height="19" valign="bottom">&nbsp;</td>
    <td WIDTH="9%" align="right" height="19" valign="bottom"><font SIZE="2">
    (3,792)</font></td>
    <td WIDTH="2%" align="right" height="19" valign="bottom">&nbsp;</td>
    <td WIDTH="9%" align="right" height="19" valign="bottom"><font SIZE="2">
    (2,111)</font></td>
  </tr>
  <tr>
    <td WIDTH="41%" height="19" valign="bottom" bgcolor="#E6E6E6"><font SIZE="2">
    <p style="margin-left: 52">Income taxes payable</font></td>
    <td WIDTH="1%" align="right" height="19" style="border-bottom-style: solid; border-bottom-width: 2" valign="bottom" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="9%" align="right" height="19" style="border-bottom-style: solid; border-bottom-width: 2" valign="bottom" bgcolor="#E6E6E6">
    <font SIZE="2">(73)</font></td>
    <td WIDTH="2%" align="right" height="19" style="border-bottom-style: solid; border-bottom-width: 2" valign="bottom" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="9%" align="right" height="19" style="border-bottom-style: solid; border-bottom-width: 2" valign="bottom" bgcolor="#E6E6E6">
    <font SIZE="2">(160)</font></td>
    <td WIDTH="2%" align="right" height="19" valign="bottom" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="2%" align="right" height="19" style="border-bottom-style: solid; border-bottom-width: 2" valign="bottom" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="9%" align="right" height="19" style="border-bottom-style: solid; border-bottom-width: 2" valign="bottom" bgcolor="#E6E6E6">
    <font SIZE="2">(15)</font></td>
    <td WIDTH="2%" align="right" height="19" style="border-bottom-style: solid; border-bottom-width: 2" valign="bottom" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="9%" align="right" height="19" style="border-bottom-style: solid; border-bottom-width: 2" valign="bottom" bgcolor="#E6E6E6">
    <font SIZE="2">76</font></td>
  </tr>
  <tr>
    <td WIDTH="41%" height="19" valign="bottom">&nbsp;</td>
    <td WIDTH="1%" align="right" height="19" valign="bottom">&nbsp;</td>
    <td WIDTH="9%" align="right" height="19" valign="bottom"><font SIZE="2">
    (18,044)</font></td>
    <td WIDTH="2%" align="right" height="19" valign="bottom">&nbsp;</td>
    <td WIDTH="9%" align="right" height="19" valign="bottom"><font SIZE="2">
    (3,810)</font></td>
    <td WIDTH="2%" align="right" height="19" valign="bottom">&nbsp;</td>
    <td WIDTH="2%" align="right" height="19" valign="bottom">&nbsp;</td>
    <td WIDTH="9%" align="right" height="19" valign="bottom"><font SIZE="2">
    14,028</font></td>
    <td WIDTH="2%" align="right" height="19" valign="bottom">&nbsp;</td>
    <td WIDTH="9%" align="right" height="19" valign="bottom"><font SIZE="2">
    8,426</font></td>
  </tr>
  <tr>
    <td WIDTH="41%" height="19" valign="bottom" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="1%" align="right" height="19" valign="bottom" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="9%" align="right" height="19" valign="bottom" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="2%" align="right" height="19" valign="bottom" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="9%" align="right" height="19" valign="bottom" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="2%" align="right" height="19" valign="bottom" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="2%" align="right" height="19" valign="bottom" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="9%" align="right" height="19" valign="bottom" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="2%" align="right" height="19" valign="bottom" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="9%" align="right" height="19" valign="bottom" bgcolor="#E6E6E6">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="41%" height="19" valign="bottom"><font SIZE="2">Cash flows from
    (used in) financing activities:</font></td>
    <td WIDTH="1%" align="right" height="19" valign="bottom">&nbsp;</td>
    <td WIDTH="9%" align="right" height="19" valign="bottom">&nbsp;</td>
    <td WIDTH="2%" align="right" height="19" valign="bottom">&nbsp;</td>
    <td WIDTH="9%" align="right" height="19" valign="bottom">&nbsp;</td>
    <td WIDTH="2%" align="right" height="19" valign="bottom">&nbsp;</td>
    <td WIDTH="2%" align="right" height="19" valign="bottom">&nbsp;</td>
    <td WIDTH="9%" align="right" height="19" valign="bottom">&nbsp;</td>
    <td WIDTH="2%" align="right" height="19" valign="bottom">&nbsp;</td>
    <td WIDTH="9%" align="right" height="19" valign="bottom">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="41%" height="19" valign="bottom" bgcolor="#E6E6E6"><font SIZE="2">
    <p style="margin-left: 26">Net (decrease) increase in long-term debt</font></td>
    <td WIDTH="1%" align="right" height="19" valign="bottom" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="9%" align="right" height="19" valign="bottom" bgcolor="#E6E6E6"><font SIZE="2">
    (673)</font></td>
    <td WIDTH="2%" align="right" height="19" valign="bottom" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="9%" align="right" height="19" valign="bottom" bgcolor="#E6E6E6"><font SIZE="2">
    (551)</font></td>
    <td WIDTH="2%" align="right" height="19" valign="bottom" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="2%" align="right" height="19" valign="bottom" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="9%" align="right" height="19" valign="bottom" bgcolor="#E6E6E6"><font SIZE="2">
    (581)</font></td>
    <td WIDTH="2%" align="right" height="19" valign="bottom" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="9%" align="right" height="19" valign="bottom" bgcolor="#E6E6E6"><font SIZE="2">355</font></td>
  </tr>
  <tr>
    <td WIDTH="41%" height="19" valign="bottom"><font SIZE="2">
    <p style="margin-left: 26">Contribution by non-controlling interest</font></td>
    <td WIDTH="1%" align="right" height="19" valign="bottom">&nbsp;</td>
    <td WIDTH="9%" align="right" height="19" valign="bottom"><font SIZE="2">-</font></td>
    <td WIDTH="2%" align="right" height="19" valign="bottom">&nbsp;</td>
    <td WIDTH="9%" align="right" height="19" valign="bottom"><font SIZE="2">
    2,500</font></td>
    <td WIDTH="2%" align="right" height="19" valign="bottom">&nbsp;</td>
    <td WIDTH="2%" align="right" height="19" valign="bottom">&nbsp;</td>
    <td WIDTH="9%" align="right" height="19" valign="bottom"><font SIZE="2">-</font></td>
    <td WIDTH="2%" align="right" height="19" valign="bottom">&nbsp;</td>
    <td WIDTH="9%" align="right" height="19" valign="bottom"><font SIZE="2">
    2,500</font></td>
  </tr>
  <tr>
    <td WIDTH="41%" height="19" valign="bottom" bgcolor="#E6E6E6"><font SIZE="2">
    <p style="margin-left: 26">Proceeds from the issuance of shares</font></td>
    <td WIDTH="1%" align="right" height="19" valign="bottom" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="9%" align="right" height="19" valign="bottom" bgcolor="#E6E6E6"><font SIZE="2">587</font></td>
    <td WIDTH="2%" align="right" height="19" valign="bottom" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="9%" align="right" height="19" valign="bottom" bgcolor="#E6E6E6"><font SIZE="2">
    3,278</font></td>
    <td WIDTH="2%" align="right" height="19" valign="bottom" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="2%" align="right" height="19" valign="bottom" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="9%" align="right" height="19" valign="bottom" bgcolor="#E6E6E6"><font SIZE="2">
    1,447</font></td>
    <td WIDTH="2%" align="right" height="19" valign="bottom" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="9%" align="right" height="19" valign="bottom" bgcolor="#E6E6E6"><font SIZE="2">
    3,687</font></td>
  </tr>
  <tr>
    <td WIDTH="41%" height="19" valign="bottom">&nbsp;</td>
    <td WIDTH="1%" align="right" height="19" valign="bottom">&nbsp;</td>
    <td WIDTH="9%" align="right" height="19" valign="bottom"><font SIZE="2">(86)</font></td>
    <td WIDTH="2%" align="right" height="19" valign="bottom">&nbsp;</td>
    <td WIDTH="9%" align="right" height="19" valign="bottom"><font SIZE="2">
    5,227</font></td>
    <td WIDTH="2%" align="right" height="19" valign="bottom">&nbsp;</td>
    <td WIDTH="2%" align="right" height="19" valign="bottom">&nbsp;</td>
    <td WIDTH="9%" align="right" height="19" valign="bottom"><font SIZE="2">866</font></td>
    <td WIDTH="2%" align="right" height="19" valign="bottom">&nbsp;</td>
    <td WIDTH="9%" align="right" height="19" valign="bottom"><font SIZE="2">
    6,542</font></td>
  </tr>
  <tr>
    <td WIDTH="41%" height="19" valign="bottom" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="1%" align="right" height="19" valign="bottom" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="9%" align="right" height="19" valign="bottom" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="2%" align="right" height="19" valign="bottom" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="9%" align="right" height="19" valign="bottom" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="2%" align="right" height="19" valign="bottom" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="2%" align="right" height="19" valign="bottom" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="9%" align="right" height="19" valign="bottom" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="2%" align="right" height="19" valign="bottom" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="9%" align="right" height="19" valign="bottom" bgcolor="#E6E6E6">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="41%" height="19" valign="bottom"><font SIZE="2">Cash flows used
    in investing activities:</font></td>
    <td WIDTH="1%" align="right" height="19" valign="bottom">&nbsp;</td>
    <td WIDTH="9%" align="right" height="19" valign="bottom">&nbsp;</td>
    <td WIDTH="2%" align="right" height="19" valign="bottom">&nbsp;</td>
    <td WIDTH="9%" align="right" height="19" valign="bottom">&nbsp;</td>
    <td WIDTH="2%" align="right" height="19" valign="bottom">&nbsp;</td>
    <td WIDTH="2%" align="right" height="19" valign="bottom">&nbsp;</td>
    <td WIDTH="9%" align="right" height="19" valign="bottom">&nbsp;</td>
    <td WIDTH="2%" align="right" height="19" valign="bottom">&nbsp;</td>
    <td WIDTH="9%" align="right" height="19" valign="bottom">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="41%" height="19" valign="bottom" bgcolor="#E6E6E6"><font SIZE="2">
    <p style="margin-left: 26">Purchase of fixed assets, net of disposals</font></td>
    <td WIDTH="1%" align="right" height="19" valign="bottom" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="9%" align="right" height="19" valign="bottom" bgcolor="#E6E6E6"><font SIZE="2">
    (23,849)</font></td>
    <td WIDTH="2%" align="right" height="19" valign="bottom" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="9%" align="right" height="19" valign="bottom" bgcolor="#E6E6E6"><font SIZE="2">
    (21,041)</font></td>
    <td WIDTH="2%" align="right" height="19" valign="bottom" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="2%" align="right" height="19" valign="bottom" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="9%" align="right" height="19" valign="bottom" bgcolor="#E6E6E6"><font SIZE="2">
    (36,223)</font></td>
    <td WIDTH="2%" align="right" height="19" valign="bottom" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="9%" align="right" height="19" valign="bottom" bgcolor="#E6E6E6"><font SIZE="2">
    (43,130)</font></td>
  </tr>
  <tr>
    <td WIDTH="41%" height="19" valign="bottom"><font SIZE="2">
    <p style="margin-left: 26">Increase in other assets</font></td>
    <td WIDTH="1%" align="right" height="19" style="border-bottom-style: solid; border-bottom-width: 2" valign="bottom">&nbsp;</td>
    <td WIDTH="9%" align="right" height="19" style="border-bottom-style: solid; border-bottom-width: 2" valign="bottom">
    <font SIZE="2">(144)</font></td>
    <td WIDTH="2%" align="right" height="19" style="border-bottom-style: solid; border-bottom-width: 2" valign="bottom">&nbsp;</td>
    <td WIDTH="9%" align="right" height="19" style="border-bottom-style: solid; border-bottom-width: 2" valign="bottom">
    <font SIZE="2">(2,555)</font></td>
    <td WIDTH="2%" align="right" height="19" valign="bottom">&nbsp;</td>
    <td WIDTH="2%" align="right" height="19" style="border-bottom-style: solid; border-bottom-width: 2" valign="bottom">&nbsp;</td>
    <td WIDTH="9%" align="right" height="19" style="border-bottom-style: solid; border-bottom-width: 2" valign="bottom">
    <font SIZE="2">(251)</font></td>
    <td WIDTH="2%" align="right" height="19" style="border-bottom-style: solid; border-bottom-width: 2" valign="bottom">&nbsp;</td>
    <td WIDTH="9%" align="right" height="19" style="border-bottom-style: solid; border-bottom-width: 2" valign="bottom">
    <font SIZE="2">(2,609)</font></td>
  </tr>
  <tr>
    <td WIDTH="41%" height="19" valign="bottom" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="1%" align="right" height="19" valign="bottom" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="9%" align="right" height="19" valign="bottom" bgcolor="#E6E6E6"><font SIZE="2">
    (23,993)</font></td>
    <td WIDTH="2%" align="right" height="19" valign="bottom" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="9%" align="right" height="19" valign="bottom" bgcolor="#E6E6E6"><font SIZE="2">
    (23,596)</font></td>
    <td WIDTH="2%" align="right" height="19" valign="bottom" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="2%" align="right" height="19" valign="bottom" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="9%" align="right" height="19" valign="bottom" bgcolor="#E6E6E6"><font SIZE="2">
    (36,474)</font></td>
    <td WIDTH="2%" align="right" height="19" valign="bottom" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="9%" align="right" height="19" valign="bottom" bgcolor="#E6E6E6"><font SIZE="2">
    (45,739)</font></td>
  </tr>
  <tr>
    <td WIDTH="41%" height="19" valign="bottom">&nbsp;</td>
    <td WIDTH="1%" align="right" height="19" valign="bottom">&nbsp;</td>
    <td WIDTH="9%" align="right" height="19" valign="bottom">&nbsp;</td>
    <td WIDTH="2%" align="right" height="19" valign="bottom">&nbsp;</td>
    <td WIDTH="9%" align="right" height="19" valign="bottom">&nbsp;</td>
    <td WIDTH="2%" align="right" height="19" valign="bottom">&nbsp;</td>
    <td WIDTH="2%" align="right" height="19" valign="bottom">&nbsp;</td>
    <td WIDTH="9%" align="right" height="19" valign="bottom">&nbsp;</td>
    <td WIDTH="2%" align="right" height="19" valign="bottom">&nbsp;</td>
    <td WIDTH="9%" align="right" height="19" valign="bottom">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="41%" height="19" valign="bottom" bgcolor="#E6E6E6"><font SIZE="2">Effect of
    exchange rate changes on cash and</font></td>
    <td WIDTH="1%" align="right" height="19" valign="bottom" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="9%" align="right" height="19" valign="bottom" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="2%" align="right" height="19" valign="bottom" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="9%" align="right" height="19" valign="bottom" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="2%" align="right" height="19" valign="bottom" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="2%" align="right" height="19" valign="bottom" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="9%" align="right" height="19" valign="bottom" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="2%" align="right" height="19" valign="bottom" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="9%" align="right" height="19" valign="bottom" bgcolor="#E6E6E6">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="41%" height="19" valign="bottom"><font SIZE="2">
    <p style="margin-left: 26">cash equivalents</font></td>
    <td WIDTH="1%" align="right" height="19" style="border-bottom-style: solid; border-bottom-width: 2" valign="bottom">&nbsp;</td>
    <td WIDTH="9%" align="right" height="19" style="border-bottom-style: solid; border-bottom-width: 2" valign="bottom">
    <font SIZE="2">(44)</font></td>
    <td WIDTH="2%" align="right" height="19" style="border-bottom-style: solid; border-bottom-width: 2" valign="bottom">&nbsp;</td>
    <td WIDTH="9%" align="right" height="19" style="border-bottom-style: solid; border-bottom-width: 2" valign="bottom">
    <font SIZE="2">(159)</font></td>
    <td WIDTH="2%" align="right" height="19" valign="bottom">&nbsp;</td>
    <td WIDTH="2%" align="right" height="19" style="border-bottom-style: solid; border-bottom-width: 2" valign="bottom">&nbsp;</td>
    <td WIDTH="9%" align="right" height="19" style="border-bottom-style: solid; border-bottom-width: 2" valign="bottom">
    <font SIZE="2">(93)</font></td>
    <td WIDTH="2%" align="right" height="19" style="border-bottom-style: solid; border-bottom-width: 2" valign="bottom">&nbsp;</td>
    <td WIDTH="9%" align="right" height="19" style="border-bottom-style: solid; border-bottom-width: 2" valign="bottom">
    <font SIZE="2">143</font></td>
  </tr>
  <tr>
    <td WIDTH="41%" height="19" valign="bottom" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="1%" align="right" height="19" valign="bottom" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="9%" align="right" height="19" valign="bottom" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="2%" align="right" height="19" valign="bottom" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="9%" align="right" height="19" valign="bottom" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="2%" align="right" height="19" valign="bottom" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="2%" align="right" height="19" valign="bottom" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="9%" align="right" height="19" valign="bottom" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="2%" align="right" height="19" valign="bottom" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="9%" align="right" height="19" valign="bottom" bgcolor="#E6E6E6">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="41%" height="19" valign="bottom"><font SIZE="2">Net decrease in
    cash and cash equivalents during the period</font></td>
    <td WIDTH="1%" align="right" height="19" valign="bottom">&nbsp;</td>
    <td WIDTH="9%" align="right" height="19" valign="bottom"><font SIZE="2">
    (42,167)</font></td>
    <td WIDTH="2%" align="right" height="19" valign="bottom">&nbsp;</td>
    <td WIDTH="9%" align="right" height="19" valign="bottom"><font SIZE="2">
    (22,338)</font></td>
    <td WIDTH="2%" align="right" height="19" valign="bottom">&nbsp;</td>
    <td WIDTH="2%" align="right" height="19" valign="bottom">&nbsp;</td>
    <td WIDTH="9%" align="right" height="19" valign="bottom"><font SIZE="2">
    (21,673)</font></td>
    <td WIDTH="2%" align="right" height="19" valign="bottom">&nbsp;</td>
    <td WIDTH="9%" align="right" height="19" valign="bottom"><font SIZE="2">
    (30,628)</font></td>
  </tr>
  <tr>
    <td WIDTH="41%" height="19" valign="bottom" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="1%" align="right" height="19" valign="bottom" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="9%" align="right" height="19" valign="bottom" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="2%" align="right" height="19" valign="bottom" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="9%" align="right" height="19" valign="bottom" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="2%" align="right" height="19" valign="bottom" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="2%" align="right" height="19" valign="bottom" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="9%" align="right" height="19" valign="bottom" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="2%" align="right" height="19" valign="bottom" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="9%" align="right" height="19" valign="bottom" bgcolor="#E6E6E6">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="41%" height="19" valign="bottom"><font SIZE="2">Cash and cash
    equivalents, beginning of period</font></td>
    <td WIDTH="1%" align="right" height="19" valign="bottom">&nbsp;</td>
    <td WIDTH="9%" align="right" height="19" valign="bottom"><font SIZE="2">
    90,296</font></td>
    <td WIDTH="2%" align="right" height="19" valign="bottom">&nbsp;</td>
    <td WIDTH="9%" align="right" height="19" valign="bottom"><font SIZE="2">
    52,381</font></td>
    <td WIDTH="2%" align="right" height="19" valign="bottom">&nbsp;</td>
    <td WIDTH="2%" align="right" height="19" valign="bottom">&nbsp;</td>
    <td WIDTH="9%" align="right" height="19" valign="bottom"><font SIZE="2">
    69,802</font></td>
    <td WIDTH="2%" align="right" height="19" valign="bottom">&nbsp;</td>
    <td WIDTH="9%" align="right" height="19" valign="bottom"><font SIZE="2">
    60,671</font></td>
  </tr>
  <tr>
    <td WIDTH="41%" height="19" valign="bottom" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="1%" align="right" height="19" style="border-bottom-style: solid; border-bottom-width: 2" valign="bottom" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="9%" align="right" height="19" style="border-bottom-style: solid; border-bottom-width: 2" valign="bottom" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="2%" align="right" height="19" style="border-bottom-style: solid; border-bottom-width: 2" valign="bottom" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="9%" align="right" height="19" style="border-bottom-style: solid; border-bottom-width: 2" valign="bottom" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="2%" align="right" height="19" valign="bottom" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="2%" align="right" height="19" style="border-bottom-style: solid; border-bottom-width: 2" valign="bottom" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="9%" align="right" height="19" style="border-bottom-style: solid; border-bottom-width: 2" valign="bottom" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="2%" align="right" height="19" style="border-bottom-style: solid; border-bottom-width: 2" valign="bottom" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="9%" align="right" height="19" style="border-bottom-style: solid; border-bottom-width: 2" valign="bottom" bgcolor="#E6E6E6">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="41%" height="19" valign="bottom"><font SIZE="2">Cash and cash
    equivalents, end of period</font></td>
    <td WIDTH="1%" align="right" height="19" style="border-bottom-style: solid; border-bottom-width: 4" valign="bottom">
    <font SIZE="2">$</font></td>
    <td WIDTH="9%" align="right" height="19" style="border-bottom-style: solid; border-bottom-width: 4" valign="bottom">
    <font SIZE="2">48,129</font></td>
    <td WIDTH="2%" align="right" height="19" style="border-bottom-style: solid; border-bottom-width: 4" valign="bottom">
    <font SIZE="2">$</font></td>
    <td WIDTH="9%" align="right" height="19" style="border-bottom-style: solid; border-bottom-width: 4" valign="bottom">
    <font SIZE="2">30,043</font></td>
    <td WIDTH="2%" align="right" height="19" valign="bottom">&nbsp;</td>
    <td WIDTH="2%" align="right" height="19" style="border-bottom-style: solid; border-bottom-width: 4" valign="bottom">
    <font SIZE="2">$</font></td>
    <td WIDTH="9%" align="right" height="19" style="border-bottom-style: solid; border-bottom-width: 4" valign="bottom">
    <font SIZE="2">48,129</font></td>
    <td WIDTH="2%" align="right" height="19" style="border-bottom-style: solid; border-bottom-width: 4" valign="bottom">
    <font SIZE="2">$</font></td>
    <td WIDTH="9%" align="right" height="19" style="border-bottom-style: solid; border-bottom-width: 4" valign="bottom">
    <font SIZE="2">30,043</font></td>
  </tr>
  <tr>
    <td WIDTH="106%" COLSPAN="10" height="15" valign="bottom"></td>
  </tr>
  <tr>
    <td WIDTH="106%" COLSPAN="10" height="15" valign="bottom"><font SIZE="2">See
    accompanying notes to interim consolidated financial statements.</font></td>
  </tr>
</table>
<p>&nbsp;</p>
<hr color="#000000" size="5"><p Style='page-break-before:always'>

<table border="0" cellpadding="0" cellspacing="0" style="border-collapse: collapse" bordercolor="#111111" width="100%">
  <tr>
    <td width="50%"><img border="0" src="gildan1.jpg" width="159" height="49"></td>
    <td width="50%" bgcolor="#000000"><b><font SIZE="4" color="#FFFFFF">
    <p style="margin-left: 20"><font style="background-color: #000000">Quarterly
    Report to Shareholders <br>
    Second quarter ended April 2, 2006 </font></font></b></td>
  </tr>
</table>
<table CELLSPACING="0" BORDER="0" WIDTH="100%" cellpadding="0" style="border-collapse: collapse" bordercolor="#111111">
  <tr>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="5"><b>NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS</b></font></td>
  </tr>
  <tr>
    <td style="border-top-style: solid; border-top-width: 1"><font SIZE="2"><b>
    (For the period ended April 2, 2006)</b></font></td>
  </tr>
  <tr>
    <td><font SIZE="2"><b>(Tabular amounts in thousands of U.S. dollars, except
    per share data)</b></font></td>
  </tr>
  <tr>
    <td><font SIZE="2"><b>(unaudited)</b></font></td>
  </tr>
</table>
<font SIZE="2"><b>
<p>1. Basis of presentation:</p>
</b>
<p ALIGN="JUSTIFY">The accompanying unaudited interim consolidated financial
statements have been prepared in accordance with Canadian generally accepted
accounting principles for interim financial information and include all normal
and recurring entries that are necessary for a fair presentation of the
statements. Accordingly, they do not include all of the information and
footnotes required by Canadian generally accepted accounting principles for
complete financial statements, and should be read in conjunction with the
Company's annual consolidated financial statements. </p>
<p>The Company's revenues and income are subject to seasonal variations.
Consequently, the results of operations for the second quarter ended April 2,
2006 are traditionally not indicative of the results to be expected for the full
year. </p>
<p>Certain comparative figures have been reclassified in order to conform with
the current year's presentation. </p>
<p>All amounts in the attached notes are unaudited unless specifically
identified. </p>
<b>
<p>2. Significant accounting policies: </p>
</b>
<p>The Company applied the same accounting policies in the preparation of the
interim consolidated financial statements, as disclosed in note 2 of its audited
consolidated financial statements in the Company's annual report for the year
ended October 2, 2005. </p>
<b>
<p>3. Special charge: </p>
</b>
<p>During the second quarter of fiscal 2005, the Company closed its two Canadian
yarn-spinning operations and recognized a charge of $11.9 million before tax, or
$7.8 million after tax ($0.13 per share). The components of the special charge
were as follows; </p>
</font>
<table CELLSPACING="0" BORDER="0" WIDTH="100%" cellpadding="0" style="border-collapse: collapse" bordercolor="#111111">
  <tr>
    <td WIDTH="822" style="border-top-style: solid; border-top-width: 1" bgcolor="#E6E6E6">
    <font FACE="Arial MT" SIZE="2">Writedown of fixed assets</font></td>
    <td WIDTH="209" align="right" style="border-top-style: solid; border-top-width: 1" bgcolor="#E6E6E6">
    <font FACE="Arial MT" SIZE="2">$</font></td>
    <td WIDTH="210" align="right" style="border-top-style: solid; border-top-width: 1" bgcolor="#E6E6E6">
    <font FACE="Arial MT" SIZE="2">7,872</font></td>
  </tr>
  <tr>
    <td WIDTH="822"><font FACE="Arial MT" SIZE="2">Employee severance</font></td>
    <td WIDTH="209" align="right">&nbsp;</td>
    <td WIDTH="210" align="right"><font FACE="Arial MT" SIZE="2">3,688</font></td>
  </tr>
  <tr>
    <td WIDTH="822" style="border-bottom-style: solid; border-bottom-width: 1" bgcolor="#E6E6E6">
    <font FACE="Arial MT" SIZE="2">Other</font></td>
    <td WIDTH="209" align="right" style="border-bottom-style: solid; border-bottom-width: 1" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="210" align="right" style="border-bottom-style: solid; border-bottom-width: 1" bgcolor="#E6E6E6">
    <font FACE="Arial MT" SIZE="2">326</font></td>
  </tr>
  <tr>
    <td WIDTH="822" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="209" align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1">
    <font FACE="Arial MT" SIZE="2">$</font></td>
    <td WIDTH="210" align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1">
    <font FACE="Arial MT" SIZE="2">11,886</font></td>
  </tr>
</table>
<font FACE="Arial MT" SIZE="2">
<p ALIGN="JUSTIFY">A major portion of the Canadian yarn-spinning equipment was
transferred to a new facility in Clarkton, North Carolina, which is operated by
the Company's joint venture with Frontier Spinning Mills, Inc. The Company
reduced the carrying values of the remaining fixed assets considered to be held
for sale to their fair values. The severance accrual, included in &quot;Accounts
payable and accrued liabilities&quot; as at April 3, 2005, was paid in the third
quarter of fiscal 2005. </p>
<p ALIGN="JUSTIFY">In the fourth quarter of fiscal 2005, the Company realized an
after-tax gain of $0.8 million or $0.01 per share from the sale of equipment,
thereby reducing the cumulative amount of the charge to $10.7 million before
tax, or $7.0 million after-tax ($0.12 per share), for the full fiscal year. </p>
</font><font SIZE="2"><b>
<p>4. Share capital: </p>
</b></font>
<table CELLSPACING="0" BORDER="0" WIDTH="100%" cellpadding="0" style="border-collapse: collapse" bordercolor="#111111">
  <tr>
    <td WIDTH="611">&nbsp;</td>
    <td WIDTH="204" COLSPAN="3" align="center"><font SIZE="2"><u>April 2, 2006</u></font></td>
    <td WIDTH="219" COLSPAN="3" align="center"><font SIZE="2"><u>October 2, 2005</u></font></td>
    <td WIDTH="207" COLSPAN="3" align="center"><font SIZE="2"><u>April 3, 2005</u></font></td>
  </tr>
  <tr>
    <td WIDTH="611">&nbsp;</td>
    <td WIDTH="89" align="right">&nbsp;</td>
    <td WIDTH="26" align="right">&nbsp;</td>
    <td WIDTH="89" align="right">&nbsp;</td>
    <td WIDTH="219" COLSPAN="3" align="right"><font SIZE="2">
    <p align="center">(audited)</font></td>
    <td WIDTH="89" align="right">&nbsp;</td>
    <td WIDTH="28" align="right">&nbsp;</td>
    <td WIDTH="90" align="right">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="611" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="89" align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2">Shares</font></td>
    <td WIDTH="26" align="right" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="89" align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2">$</font></td>
    <td WIDTH="89" align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2">Shares</font></td>
    <td WIDTH="41" align="right" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="89" align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2">$</font></td>
    <td WIDTH="89" align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2">Shares</font></td>
    <td WIDTH="28" align="right" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="90" align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2">$</font></td>
  </tr>
  <tr>
    <td WIDTH="611" style="border-top-style: solid; border-top-width: 1">
    <font SIZE="2">Authorized without limit as to number and without par value:</font></td>
    <td WIDTH="89" align="right" style="border-top-style: solid; border-top-width: 1">&nbsp;</td>
    <td WIDTH="26" align="right" style="border-top-style: solid; border-top-width: 1">&nbsp;</td>
    <td WIDTH="89" align="right" style="border-top-style: solid; border-top-width: 1">&nbsp;</td>
    <td WIDTH="89" align="right" style="border-top-style: solid; border-top-width: 1">&nbsp;</td>
    <td WIDTH="41" align="right" style="border-top-style: solid; border-top-width: 1">&nbsp;</td>
    <td WIDTH="89" align="right" style="border-top-style: solid; border-top-width: 1">&nbsp;</td>
    <td WIDTH="89" align="right" style="border-top-style: solid; border-top-width: 1">&nbsp;</td>
    <td WIDTH="28" align="right" style="border-top-style: solid; border-top-width: 1">&nbsp;</td>
    <td WIDTH="90" align="right" style="border-top-style: solid; border-top-width: 1">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="611"><font SIZE="2">
    <p style="margin-left: 26">First preferred shares, issuable in series,
    non-voting</font></td>
    <td WIDTH="89" align="right">&nbsp;</td>
    <td WIDTH="26" align="right">&nbsp;</td>
    <td WIDTH="89" align="right">&nbsp;</td>
    <td WIDTH="89" align="right">&nbsp;</td>
    <td WIDTH="41" align="right">&nbsp;</td>
    <td WIDTH="89" align="right">&nbsp;</td>
    <td WIDTH="89" align="right">&nbsp;</td>
    <td WIDTH="28" align="right">&nbsp;</td>
    <td WIDTH="90" align="right">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="611"><font SIZE="2">
    <p style="margin-left: 26">Second preferred shares, issuable in series,
    non-voting</font></td>
    <td WIDTH="89" align="right">&nbsp;</td>
    <td WIDTH="26" align="right">&nbsp;</td>
    <td WIDTH="89" align="right">&nbsp;</td>
    <td WIDTH="89" align="right">&nbsp;</td>
    <td WIDTH="41" align="right">&nbsp;</td>
    <td WIDTH="89" align="right">&nbsp;</td>
    <td WIDTH="89" align="right">&nbsp;</td>
    <td WIDTH="28" align="right">&nbsp;</td>
    <td WIDTH="90" align="right">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="611" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2">
    <p style="margin-left: 26">Common shares</font></td>
    <td WIDTH="89" align="right" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="26" align="right" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="89" align="right" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="89" align="right" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="41" align="right" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="89" align="right" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="89" align="right" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="28" align="right" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="90" align="right" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="611" style="border-top-style: solid; border-top-width: 1">
    <font SIZE="2">Issued and outstanding:</font></td>
    <td WIDTH="89" align="right" style="border-top-style: solid; border-top-width: 1">&nbsp;</td>
    <td WIDTH="26" align="right" style="border-top-style: solid; border-top-width: 1">&nbsp;</td>
    <td WIDTH="89" align="right" style="border-top-style: solid; border-top-width: 1">&nbsp;</td>
    <td WIDTH="89" align="right" style="border-top-style: solid; border-top-width: 1">&nbsp;</td>
    <td WIDTH="41" align="right" style="border-top-style: solid; border-top-width: 1">&nbsp;</td>
    <td WIDTH="89" align="right" style="border-top-style: solid; border-top-width: 1">&nbsp;</td>
    <td WIDTH="89" align="right" style="border-top-style: solid; border-top-width: 1">&nbsp;</td>
    <td WIDTH="28" align="right" style="border-top-style: solid; border-top-width: 1">&nbsp;</td>
    <td WIDTH="90" align="right" style="border-top-style: solid; border-top-width: 1">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="611"><font SIZE="2">
    <p style="margin-left: 26">Common shares:</font></td>
    <td WIDTH="89" align="right">&nbsp;</td>
    <td WIDTH="26" align="right">&nbsp;</td>
    <td WIDTH="89" align="right">&nbsp;</td>
    <td WIDTH="89" align="right">&nbsp;</td>
    <td WIDTH="41" align="right">&nbsp;</td>
    <td WIDTH="89" align="right">&nbsp;</td>
    <td WIDTH="89" align="right">&nbsp;</td>
    <td WIDTH="28" align="right">&nbsp;</td>
    <td WIDTH="90" align="right">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="611" bgcolor="#E6E6E6"><font SIZE="2">
    <p style="margin-left: 36">Total outstanding, beginning of period</font></td>
    <td WIDTH="89" align="right" bgcolor="#E6E6E6"><font SIZE="2">59,954</font></td>
    <td WIDTH="26" align="right" bgcolor="#E6E6E6"><font SIZE="2">$</font></td>
    <td WIDTH="89" align="right" bgcolor="#E6E6E6"><font SIZE="2">84,177</font></td>
    <td WIDTH="89" align="right" bgcolor="#E6E6E6"><font SIZE="2">59,397</font></td>
    <td WIDTH="41" align="right" bgcolor="#E6E6E6"><font SIZE="2">$</font></td>
    <td WIDTH="89" align="right" bgcolor="#E6E6E6"><font SIZE="2">78,170</font></td>
    <td WIDTH="89" align="right" bgcolor="#E6E6E6"><font SIZE="2">59,397</font></td>
    <td WIDTH="28" align="right" bgcolor="#E6E6E6"><font SIZE="2">$</font></td>
    <td WIDTH="90" align="right" bgcolor="#E6E6E6"><font SIZE="2">78,170</font></td>
  </tr>
  <tr>
    <td WIDTH="611"><font SIZE="2">
    <p style="margin-left: 46">Shares issued under employee share purchase plan</font></td>
    <td WIDTH="89" align="right"><font SIZE="2">3</font></td>
    <td WIDTH="26" align="right">&nbsp;</td>
    <td WIDTH="89" align="right"><font SIZE="2">119</font></td>
    <td WIDTH="89" align="right"><font SIZE="2">10</font></td>
    <td WIDTH="41" align="right">&nbsp;</td>
    <td WIDTH="89" align="right"><font SIZE="2">200</font></td>
    <td WIDTH="89" align="right"><font SIZE="2">6</font></td>
    <td WIDTH="28" align="right">&nbsp;</td>
    <td WIDTH="90" align="right"><font SIZE="2">88</font></td>
  </tr>
  <tr>
    <td WIDTH="611" style="border-bottom-style: solid; border-bottom-width: 1" bgcolor="#E6E6E6">
    <font SIZE="2">
    <p style="margin-left: 46">Shares issued pursuant to exercise of stock
    options</font></td>
    <td WIDTH="89" align="right" style="border-bottom-style: solid; border-bottom-width: 1" bgcolor="#E6E6E6">
    <font SIZE="2">116</font></td>
    <td WIDTH="26" align="right" style="border-bottom-style: solid; border-bottom-width: 1" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="89" align="right" style="border-bottom-style: solid; border-bottom-width: 1" bgcolor="#E6E6E6">
    <font SIZE="2">1,328</font></td>
    <td WIDTH="89" align="right" style="border-bottom-style: solid; border-bottom-width: 1" bgcolor="#E6E6E6">
    <font SIZE="2">547</font></td>
    <td WIDTH="41" align="right" style="border-bottom-style: solid; border-bottom-width: 1" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="89" align="right" style="border-bottom-style: solid; border-bottom-width: 1" bgcolor="#E6E6E6">
    <font SIZE="2">5,807</font></td>
    <td WIDTH="89" align="right" style="border-bottom-style: solid; border-bottom-width: 1" bgcolor="#E6E6E6">
    <font SIZE="2">356</font></td>
    <td WIDTH="28" align="right" style="border-bottom-style: solid; border-bottom-width: 1" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="90" align="right" style="border-bottom-style: solid; border-bottom-width: 1" bgcolor="#E6E6E6">
    <font SIZE="2">3,599</font></td>
  </tr>
  <tr>
    <td WIDTH="611" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2">
    <p style="margin-left: 26">Total outstanding, end of period</font></td>
    <td WIDTH="89" align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2">60,073</font></td>
    <td WIDTH="26" align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2">$</font></td>
    <td WIDTH="89" align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2">85,624</font></td>
    <td WIDTH="89" align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2">59,954</font></td>
    <td WIDTH="41" align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2">$</font></td>
    <td WIDTH="89" align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2">84,177</font></td>
    <td WIDTH="89" align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2">59,759</font></td>
    <td WIDTH="28" align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2">$</font></td>
    <td WIDTH="90" align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2">81,857</font></td>
  </tr>
</table>
<font FACE="Arial MT" SIZE="2">
<p ALIGN="JUSTIFY">On May 4, 2005, the Board of Directors of the Company
declared a two-for-one stock split, effected in the form of a stock dividend,
applicable to all of its issued and outstanding common shares and payable to
shareholders of record on May 20, 2005. All share and per share data reflect the
effect of the stock split on a retroactive basis. </p>
</font>
<hr color="#000000" size="5"><p Style='page-break-before:always'>
<table border="0" cellpadding="0" cellspacing="0" style="border-collapse: collapse" bordercolor="#111111" width="100%">
  <tr>
    <td width="50%"><img border="0" src="gildan1.jpg" width="159" height="49"></td>
    <td width="50%" bgcolor="#000000"><b><font SIZE="4" color="#FFFFFF">
    <p style="margin-left: 20"><font style="background-color: #000000">Quarterly
    Report to Shareholders <br>
    Second quarter ended April 2, 2006 </font></font></b></td>
  </tr>
</table>
<font SIZE="2"><b>
<p align="justify">4. Share capital: (continued) </p>
</b>
<p ALIGN="JUSTIFY">The Company has obtained approval from the Toronto Stock
Exchange to renew its normal course issuer bid, authorizing the Company to
purchase up to a maximum of 1,000,000 of its common shares in the open market
commencing December 22, 2005 and ending December 21, 2006. As at April 2, 2006
no shares have been repurchased under this plan. </p>
<b>
<p align="justify">5. Earnings per share: </p>
</b>
<p align="justify">The following table sets forth the computation of basic and
diluted earnings per share: </p>
</font>
<table CELLSPACING="0" BORDER="0" WIDTH="100%" cellpadding="0" style="border-collapse: collapse" bordercolor="#111111">
  <tr>
    <td WIDTH="682">&nbsp;</td>
    <td WIDTH="36" align="right">&nbsp;</td>
    <td WIDTH="243" COLSPAN="3" align="center"><font SIZE="2"><i><b>Three months
    ended</b></i></font></td>
    <td WIDTH="36" align="center">&nbsp;</td>
    <td WIDTH="244" COLSPAN="3" align="center"><font SIZE="2"><i><b>Six months
    ended</b></i></font></td>
  </tr>
  <tr>
    <td WIDTH="682">&nbsp;</td>
    <td WIDTH="36" align="right">&nbsp;</td>
    <td WIDTH="103" align="right"><font SIZE="2"><u>April 2,</u></font></td>
    <td WIDTH="36" align="right">&nbsp;</td>
    <td WIDTH="104" align="right"><font SIZE="2"><u>April 3,</u></font></td>
    <td WIDTH="36" align="right">&nbsp;</td>
    <td WIDTH="104" align="right"><font SIZE="2"><u>April 2,</u></font></td>
    <td WIDTH="36" align="right">&nbsp;</td>
    <td WIDTH="104" align="right"><font SIZE="2"><u>April 3,</u></font></td>
  </tr>
  <tr>
    <td WIDTH="682">&nbsp;</td>
    <td WIDTH="36" align="right">&nbsp;</td>
    <td WIDTH="103" align="right"><font SIZE="2"><u>2006</u></font></td>
    <td WIDTH="36" align="right">&nbsp;</td>
    <td WIDTH="104" align="right"><font SIZE="2"><u>2005</u></font></td>
    <td WIDTH="36" align="right">&nbsp;</td>
    <td WIDTH="104" align="right"><font SIZE="2"><u>2006</u></font></td>
    <td WIDTH="36" align="right">&nbsp;</td>
    <td WIDTH="104" align="right"><font SIZE="2"><u>2005</u></font></td>
  </tr>
  <tr>
    <td WIDTH="682">&nbsp;</td>
    <td WIDTH="36" align="right">&nbsp;</td>
    <td WIDTH="103" align="right">&nbsp;</td>
    <td WIDTH="36" align="right">&nbsp;</td>
    <td WIDTH="104" align="right">&nbsp;</td>
    <td WIDTH="36" align="right">&nbsp;</td>
    <td WIDTH="104" align="right">&nbsp;</td>
    <td WIDTH="36" align="right">&nbsp;</td>
    <td WIDTH="104" align="right">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="682" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1" bgcolor="#E6E6E6">
    <font SIZE="2">Basic weighted average number of common shares outstanding</font></td>
    <td WIDTH="36" align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="103" align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1" bgcolor="#E6E6E6">
    <font SIZE="2">60,054</font></td>
    <td WIDTH="36" align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="104" align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1" bgcolor="#E6E6E6">
    <font SIZE="2">59,617</font></td>
    <td WIDTH="36" align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="104" align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1" bgcolor="#E6E6E6">
    <font SIZE="2">60,012</font></td>
    <td WIDTH="36" align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="104" align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1" bgcolor="#E6E6E6">
    <font SIZE="2">59,512</font></td>
  </tr>
  <tr>
    <td WIDTH="682" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2">Basic earnings per share</font></td>
    <td WIDTH="36" align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2">$</font></td>
    <td WIDTH="103" align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2">0.52</font></td>
    <td WIDTH="36" align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2">$</font></td>
    <td WIDTH="104" align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2">0.24</font></td>
    <td WIDTH="36" align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2">$</font></td>
    <td WIDTH="104" align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2">0.79</font></td>
    <td WIDTH="36" align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2">$</font></td>
    <td WIDTH="104" align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2">0.38</font></td>
  </tr>
  <tr>
    <td WIDTH="682" bgcolor="#E6E6E6"><font SIZE="2">Diluted earnings per share:</font></td>
    <td WIDTH="36" align="right" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="103" align="right" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="36" align="right" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="104" align="right" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="36" align="right" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="104" align="right" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="36" align="right" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="104" align="right" bgcolor="#E6E6E6">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="682"><font SIZE="2">
    <p style="margin-left: 26">Basic weighted average number of common shares
    outstanding</font></td>
    <td WIDTH="36" align="right">&nbsp;</td>
    <td WIDTH="103" align="right"><font SIZE="2">60,054</font></td>
    <td WIDTH="36" align="right">&nbsp;</td>
    <td WIDTH="104" align="right"><font SIZE="2">59,617</font></td>
    <td WIDTH="36" align="right">&nbsp;</td>
    <td WIDTH="104" align="right"><font SIZE="2">60,012</font></td>
    <td WIDTH="36" align="right">&nbsp;</td>
    <td WIDTH="104" align="right"><font SIZE="2">59,512</font></td>
  </tr>
  <tr>
    <td WIDTH="682" bgcolor="#E6E6E6"><font SIZE="2">
    <p style="margin-left: 26">Plus impact of stock options and RSUs</font></td>
    <td WIDTH="36" align="right" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="103" align="right" bgcolor="#E6E6E6"><font SIZE="2">593</font></td>
    <td WIDTH="36" align="right" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="104" align="right" bgcolor="#E6E6E6"><font SIZE="2">469</font></td>
    <td WIDTH="36" align="right" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="104" align="right" bgcolor="#E6E6E6"><font SIZE="2">591</font></td>
    <td WIDTH="36" align="right" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="104" align="right" bgcolor="#E6E6E6"><font SIZE="2">416</font></td>
  </tr>
  <tr>
    <td WIDTH="682" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2">Diluted weighted average number of common shares outstanding</font></td>
    <td WIDTH="36" align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="103" align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2">60,647</font></td>
    <td WIDTH="36" align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="104" align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2">60,086</font></td>
    <td WIDTH="36" align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="104" align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2">60,603</font></td>
    <td WIDTH="36" align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="104" align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2">59,928</font></td>
  </tr>
  <tr>
    <td WIDTH="682" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1" bgcolor="#E6E6E6">
    <font SIZE="2">Diluted earnings per share</font></td>
    <td WIDTH="36" align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1" bgcolor="#E6E6E6">
    <font SIZE="2">$</font></td>
    <td WIDTH="103" align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1" bgcolor="#E6E6E6">
    <font SIZE="2">0.51</font></td>
    <td WIDTH="36" align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1" bgcolor="#E6E6E6">
    <font SIZE="2">$</font></td>
    <td WIDTH="104" align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1" bgcolor="#E6E6E6">
    <font SIZE="2">0.24</font></td>
    <td WIDTH="36" align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1" bgcolor="#E6E6E6">
    <font SIZE="2">$</font></td>
    <td WIDTH="104" align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1" bgcolor="#E6E6E6">
    <font SIZE="2">0.78</font></td>
    <td WIDTH="36" align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1" bgcolor="#E6E6E6">
    <font SIZE="2">$</font></td>
    <td WIDTH="104" align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1" bgcolor="#E6E6E6">
    <font SIZE="2">0.38</font></td>
  </tr>
</table>
<font SIZE="2"><b>
<p>6. Guarantees: </p>
</b>
<p>Significant guarantees that have been provided to third parties are the
following: </p>
<p>The Company, and some of its subsidiaries, have granted irrevocable standby
letters of credit and surety bonds, issued by highly rated financial
institutions, to third parties to indemnify them in the event the Company does
not perform its contractual obligations. As at April 2, 2006, the maximum
potential liability under these guarantees was $40.5 million of which $7.4
million was for surety bonds and $33.1 million was for standby letters of credit
and corporate guarantees. The standby letters of credit mature at various dates
during 2006, the surety bonds are automatically renewed on an annual basis and
the corporate guarantees mature upon 30 days notice. As at April 2, 2006, the
Company has not recorded a liability with respect to these guarantees, as the
Company does not expect to make any payments for the aforementioned items.
Management believes that the fair value of the non-contingent obligations to
stand ready to perform in the event that specified triggering events or
conditions occur approximates the cost of obtaining the standby letters of
credit and surety bonds. </p>
<b>
<p>7. Financial instruments: </p>
</b>
<p>The following table summarizes the Company's commitments to buy and sell
foreign currencies as at April 2, 2006 and April 3, 2005: </p>
</font>
<table CELLSPACING="0" BORDER="0" WIDTH="100%" cellpadding="0" style="border-collapse: collapse" bordercolor="#111111">
  <tr>
    <td WIDTH="392" style="border-top-style: solid; border-top-width: 1">&nbsp;</td>
    <td WIDTH="85" align="right" style="border-top-style: solid; border-top-width: 1">&nbsp;</td>
    <td WIDTH="135" align="right" style="border-top-style: solid; border-top-width: 1">
    <font SIZE="2">Notional</font></td>
    <td WIDTH="179" align="right" style="border-top-style: solid; border-top-width: 1">&nbsp;</td>
    <td WIDTH="315" align="right" style="border-top-style: solid; border-top-width: 1">&nbsp;</td>
    <td WIDTH="135" align="right" style="border-top-style: solid; border-top-width: 1">
    <font SIZE="2">Notional U.S.</font></td>
  </tr>
  <tr>
    <td WIDTH="392" style="border-bottom-style: solid; border-bottom-width: 1">
    &nbsp;</td>
    <td WIDTH="85" align="right" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="135" align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2">amount</font></td>
    <td WIDTH="179" align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2">Exchange rate</font></td>
    <td WIDTH="315" align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2">Maturity</font></td>
    <td WIDTH="135" align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2">equivalent</font></td>
  </tr>
  <tr>
    <td WIDTH="392" style="border-top-style: solid; border-top-width: 1">
    <b>
    <font SIZE="2">2006:</font></b></td>
    <td WIDTH="85" align="right" style="border-top-style: solid; border-top-width: 1">&nbsp;</td>
    <td WIDTH="135" align="right" style="border-top-style: solid; border-top-width: 1">&nbsp;</td>
    <td WIDTH="179" align="right" style="border-top-style: solid; border-top-width: 1">&nbsp;</td>
    <td WIDTH="315" align="right" style="border-top-style: solid; border-top-width: 1">&nbsp;</td>
    <td WIDTH="135" align="right" style="border-top-style: solid; border-top-width: 1">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="392"><font SIZE="2">Buy contracts:</font></td>
    <td WIDTH="85" align="right">&nbsp;</td>
    <td WIDTH="135" align="right">&nbsp;</td>
    <td WIDTH="179" align="right">&nbsp;</td>
    <td WIDTH="315" align="right">&nbsp;</td>
    <td WIDTH="135" align="right">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="392" bgcolor="#E6E6E6"><font SIZE="2">
    <p style="margin-left: 26">Foreign exchange contracts</font></td>
    <td WIDTH="85" align="right" bgcolor="#E6E6E6"><font SIZE="2">CA$</font></td>
    <td WIDTH="135" align="right" bgcolor="#E6E6E6"><font SIZE="2">40,967</font></td>
    <td WIDTH="179" align="right" bgcolor="#E6E6E6"><font SIZE="2">0.7997 to 0.8642</font></td>
    <td WIDTH="315" align="right" bgcolor="#E6E6E6"><font SIZE="2">April 2006 to September 2006</font></td>
    <td WIDTH="135" align="right" bgcolor="#E6E6E6"><font SIZE="2">$34,596</font></td>
  </tr>
  <tr>
    <td WIDTH="392">&nbsp;</td>
    <td WIDTH="85" align="right"><font SIZE="2">&#128;</font></td>
    <td WIDTH="135" align="right"><font SIZE="2">11,147</font></td>
    <td WIDTH="179" align="right"><font SIZE="2">1.1991 to 1.2208</font></td>
    <td WIDTH="315" align="right"><font SIZE="2">July 2006 to June 2007</font></td>
    <td WIDTH="135" align="right"><font SIZE="2">$13,480</font></td>
  </tr>
  <tr>
    <td WIDTH="392" bgcolor="#E6E6E6"><font SIZE="2">Sell contracts:</font></td>
    <td WIDTH="85" align="right" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="135" align="right" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="179" align="right" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="315" align="right" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="135" align="right" bgcolor="#E6E6E6">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="392"><font SIZE="2">
    <p style="margin-left: 26">Foreign exchange contracts</font></td>
    <td WIDTH="85" align="right">&nbsp;</td>
    <td WIDTH="135" align="right">&nbsp;</td>
    <td WIDTH="179" align="right">&nbsp;</td>
    <td WIDTH="315" align="right">&nbsp;</td>
    <td WIDTH="135" align="right">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="392" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="85" align="right" bgcolor="#E6E6E6"><font SIZE="2">&#128;</font></td>
    <td WIDTH="135" align="right" bgcolor="#E6E6E6"><font SIZE="2">5,600</font></td>
    <td WIDTH="179" align="right" bgcolor="#E6E6E6"><font SIZE="2">1.2097 to 1.3525</font></td>
    <td WIDTH="315" align="right" bgcolor="#E6E6E6"><font SIZE="2">April 2006 to September 2006</font></td>
    <td WIDTH="135" align="right" bgcolor="#E6E6E6"><font SIZE="2">$7,355</font></td>
  </tr>
  <tr>
    <td WIDTH="392">&nbsp;</td>
    <td WIDTH="85" align="right"><font face="Times New Roman">&#8356;</font></td>
    <td WIDTH="135" align="right"><font SIZE="2">2,850</font></td>
    <td WIDTH="179" align="right"><font SIZE="2">1.7379 to 1.8783</font></td>
    <td WIDTH="315" align="right"><font SIZE="2">April 2006 to September 2006</font></td>
    <td WIDTH="135" align="right"><font SIZE="2">$5,306</font></td>
  </tr>
  <tr>
    <td WIDTH="392" bgcolor="#E6E6E6"><b><font SIZE="2">2005:</font></b></td>
    <td WIDTH="85" align="right" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="135" align="right" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="179" align="right" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="315" align="right" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="135" align="right" bgcolor="#E6E6E6">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="392"><font SIZE="2">Buy contracts:</font></td>
    <td WIDTH="85" align="right">&nbsp;</td>
    <td WIDTH="135" align="right">&nbsp;</td>
    <td WIDTH="179" align="right">&nbsp;</td>
    <td WIDTH="315" align="right">&nbsp;</td>
    <td WIDTH="135" align="right">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="392" bgcolor="#E6E6E6"><font SIZE="2">
    <p style="margin-left: 26">Foreign exchange contracts</font></td>
    <td WIDTH="85" align="right" bgcolor="#E6E6E6"><font SIZE="2">CA$</font></td>
    <td WIDTH="135" align="right" bgcolor="#E6E6E6"><font SIZE="2">39,090</font></td>
    <td WIDTH="179" align="right" bgcolor="#E6E6E6"><font SIZE="2">0.7251 to 0.8081</font></td>
    <td WIDTH="315" align="right" bgcolor="#E6E6E6"><font SIZE="2">April 2005 to November 2005</font></td>
    <td WIDTH="135" align="right" bgcolor="#E6E6E6"><font SIZE="2">$30,612</font></td>
  </tr>
  <tr>
    <td WIDTH="392"><font SIZE="2">Sell contracts:</font></td>
    <td WIDTH="85" align="right">&nbsp;</td>
    <td WIDTH="135" align="right">&nbsp;</td>
    <td WIDTH="179" align="right">&nbsp;</td>
    <td WIDTH="315" align="right">&nbsp;</td>
    <td WIDTH="135" align="right">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="392" bgcolor="#E6E6E6"><font SIZE="2">
    <p style="margin-left: 26">Foreign exchange contracts</font></td>
    <td WIDTH="85" align="right" bgcolor="#E6E6E6"><font SIZE="2">&#128;</font></td>
    <td WIDTH="135" align="right" bgcolor="#E6E6E6"><font SIZE="2">21,191</font></td>
    <td WIDTH="179" align="right" bgcolor="#E6E6E6"><font SIZE="2">1.3321 to 1.3721</font></td>
    <td WIDTH="315" align="right" bgcolor="#E6E6E6"><font SIZE="2">April 2005 to September 2006</font></td>
    <td WIDTH="135" align="right" bgcolor="#E6E6E6"><font SIZE="2">$28,696</font></td>
  </tr>
  <tr>
    <td WIDTH="392" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="85" align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <font face="Times New Roman">&#8356;</font></td>
    <td WIDTH="135" align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2">7,455</font></td>
    <td WIDTH="179" align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2">1.8707 to 1.9094</font></td>
    <td WIDTH="315" align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2">April 2005 to September 2006</font></td>
    <td WIDTH="135" align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2">$14,078</font></td>
  </tr>
</table>
<hr color="#000000" size="5"><p Style='page-break-before:always'>
<table border="0" cellpadding="0" cellspacing="0" style="border-collapse: collapse" bordercolor="#111111" width="100%">
  <tr>
    <td width="50%"><img border="0" src="gildan1.jpg" width="159" height="49"></td>
    <td width="50%" bgcolor="#000000"><b><font SIZE="4" color="#FFFFFF">
    <p style="margin-left: 20"><font style="background-color: #000000">Quarterly
    Report to Shareholders <br>
    Second quarter ended April 2, 2006 </font></font></b></td>
  </tr>
</table>
<font SIZE="2"><b>
<p>8. Segmented information: </p>
</b>
<p>The Company manufactures and sells activewear apparel, and operates in one
business segment. </p>
<p ALIGN="JUSTIFY">The Company has one customer accounting for greater than 10%
of total sales. For the three-month period ended April 2, 2006 and April 3,
2005, this customer accounted for 27.8% and 28.1% of total sales, respectively.
For the six-month period ended April 2, 2006 and April 3, 2005 the customer
accounted for 29.9% and 31.9% of total sales, respectively. </p>
<p>Sales were derived from customers located in the following geographic areas:
</p>
</font>
<table CELLSPACING="0" BORDER="0" WIDTH="100%" cellpadding="0" style="border-collapse: collapse" bordercolor="#111111">
  <tr>
    <td WIDTH="686">&nbsp;</td>
    <td WIDTH="28" align="right">&nbsp;</td>
    <td WIDTH="233" COLSPAN="3" align="center" bgcolor="#9ACCFF"><font SIZE="2">
    <i><b>Three months ended</b></i></font></td>
    <td WIDTH="42" align="center">&nbsp;</td>
    <td WIDTH="252" COLSPAN="3" align="center" bgcolor="#9ACCFF"><font SIZE="2">
    <i><b>Six months ended</b></i></font></td>
  </tr>
  <tr>
    <td WIDTH="686">&nbsp;</td>
    <td WIDTH="28" align="right">&nbsp;</td>
    <td WIDTH="103" align="right"><font SIZE="2"><u>April 2,</u></font></td>
    <td WIDTH="26" align="right">&nbsp;</td>
    <td WIDTH="104" align="right"><font SIZE="2"><u>April 3,</u></font></td>
    <td WIDTH="42" align="right">&nbsp;</td>
    <td WIDTH="104" align="right"><font SIZE="2"><u>April 2,</u></font></td>
    <td WIDTH="44" align="right">&nbsp;</td>
    <td WIDTH="104" align="right"><font SIZE="2"><u>April 3,</u></font></td>
  </tr>
  <tr>
    <td WIDTH="686">&nbsp;</td>
    <td WIDTH="28" align="right">&nbsp;</td>
    <td WIDTH="103" align="right"><font SIZE="2"><u>2006</u></font></td>
    <td WIDTH="26" align="right">&nbsp;</td>
    <td WIDTH="104" align="right"><font SIZE="2"><u>2005</u></font></td>
    <td WIDTH="42" align="right">&nbsp;</td>
    <td WIDTH="104" align="right"><font SIZE="2"><u>2006</u></font></td>
    <td WIDTH="44" align="right">&nbsp;</td>
    <td WIDTH="104" align="right"><font SIZE="2"><u>2005</u></font></td>
  </tr>
  <tr>
    <td WIDTH="686" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="28" align="right" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="103" align="right" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="26" align="right" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="104" align="right" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="42" align="right" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="104" align="right" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="44" align="right" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="104" align="right" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="686" style="border-top-style: solid; border-top-width: 1" bgcolor="#E6E6E6">
    <font SIZE="2">United States</font></td>
    <td WIDTH="28" align="right" style="border-top-style: solid; border-top-width: 1" bgcolor="#E6E6E6">
    <font SIZE="2">$</font></td>
    <td WIDTH="103" align="right" style="border-top-style: solid; border-top-width: 1" bgcolor="#E6E6E6">
    <font SIZE="2">160,498</font></td>
    <td WIDTH="26" align="right" style="border-top-style: solid; border-top-width: 1" bgcolor="#E6E6E6">
    <font SIZE="2">$</font></td>
    <td WIDTH="104" align="right" style="border-top-style: solid; border-top-width: 1" bgcolor="#E6E6E6">
    <font SIZE="2">140,293</font></td>
    <td WIDTH="42" align="right" style="border-top-style: solid; border-top-width: 1" bgcolor="#E6E6E6">
    <font SIZE="2">$</font></td>
    <td WIDTH="104" align="right" style="border-top-style: solid; border-top-width: 1" bgcolor="#E6E6E6">
    <font SIZE="2">267,150</font></td>
    <td WIDTH="44" align="right" style="border-top-style: solid; border-top-width: 1" bgcolor="#E6E6E6">
    <font SIZE="2">$</font></td>
    <td WIDTH="104" align="right" style="border-top-style: solid; border-top-width: 1" bgcolor="#E6E6E6">
    <font SIZE="2">235,864</font></td>
  </tr>
  <tr>
    <td WIDTH="686"><font SIZE="2">Canada</font></td>
    <td WIDTH="28" align="right">&nbsp;</td>
    <td WIDTH="103" align="right"><font SIZE="2">14,160</font></td>
    <td WIDTH="26" align="right">&nbsp;</td>
    <td WIDTH="104" align="right"><font SIZE="2">14,435</font></td>
    <td WIDTH="42" align="right">&nbsp;</td>
    <td WIDTH="104" align="right"><font SIZE="2">21,626</font></td>
    <td WIDTH="44" align="right">&nbsp;</td>
    <td WIDTH="104" align="right"><font SIZE="2">21,255</font></td>
  </tr>
  <tr>
    <td WIDTH="686" style="border-bottom-style: solid; border-bottom-width: 1" bgcolor="#E6E6E6">
    <font SIZE="2">Europe and other</font></td>
    <td WIDTH="28" align="right" style="border-bottom-style: solid; border-bottom-width: 1" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="103" align="right" style="border-bottom-style: solid; border-bottom-width: 1" bgcolor="#E6E6E6">
    <font SIZE="2">9,125</font></td>
    <td WIDTH="26" align="right" style="border-bottom-style: solid; border-bottom-width: 1" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="104" align="right" style="border-bottom-style: solid; border-bottom-width: 1" bgcolor="#E6E6E6">
    <font SIZE="2">10,593</font></td>
    <td WIDTH="42" align="right" style="border-bottom-style: solid; border-bottom-width: 1" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="104" align="right" style="border-bottom-style: solid; border-bottom-width: 1" bgcolor="#E6E6E6">
    <font SIZE="2">15,317</font></td>
    <td WIDTH="44" align="right" style="border-bottom-style: solid; border-bottom-width: 1" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="104" align="right" style="border-bottom-style: solid; border-bottom-width: 1" bgcolor="#E6E6E6">
    <font SIZE="2">17,159</font></td>
  </tr>
  <tr>
    <td WIDTH="686" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="28" align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2">$</font></td>
    <td WIDTH="103" align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2">183,783</font></td>
    <td WIDTH="26" align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2">$</font></td>
    <td WIDTH="104" align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2">165,321</font></td>
    <td WIDTH="42" align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2">$</font></td>
    <td WIDTH="104" align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2">304,093</font></td>
    <td WIDTH="44" align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2">$</font></td>
    <td WIDTH="104" align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2">274,278</font></td>
  </tr>
</table>
<font FACE="Arial MT" SIZE="2">
<p>Fixed assets by geographic areas are as follows: </p>
</font>
<table CELLSPACING="0" BORDER="0" WIDTH="100%" cellpadding="0" style="border-collapse: collapse" bordercolor="#111111">
  <tr>
    <td WIDTH="813">&nbsp;</td>
    <td WIDTH="142" align="right" colspan="2"><font SIZE="2"><u>April 2, 2006</u></font></td>
    <td WIDTH="143" COLSPAN="2" align="right"><font SIZE="2"><u>October 2, 2005</u></font></td>
    <td WIDTH="143" align="right" colspan="2"><font SIZE="2"><u>April 3, 2005</u></font></td>
  </tr>
  <tr>
    <td WIDTH="813" style="border-bottom-style: solid; border-bottom-width: 2">&nbsp;</td>
    <td WIDTH="38" align="right" style="border-bottom-style: solid; border-bottom-width: 2">&nbsp;</td>
    <td WIDTH="104" align="right" style="border-bottom-style: solid; border-bottom-width: 2">&nbsp;</td>
    <td WIDTH="39" align="right" style="border-bottom-style: solid; border-bottom-width: 2">&nbsp;</td>
    <td WIDTH="104" align="right" style="border-bottom-style: solid; border-bottom-width: 2">
    <font SIZE="2">(audited)</font></td>
    <td WIDTH="39" align="right" style="border-bottom-style: solid; border-bottom-width: 2">&nbsp;</td>
    <td WIDTH="104" align="right" style="border-bottom-style: solid; border-bottom-width: 2">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="813" style="border-top-style: solid; border-top-width: 1" bgcolor="#E6E6E6">
    <font SIZE="2">Caribbean basin and Central America</font></td>
    <td WIDTH="38" align="right" style="border-top-style: solid; border-top-width: 1" bgcolor="#E6E6E6">
    <font SIZE="2">$</font></td>
    <td WIDTH="104" align="right" style="border-top-style: solid; border-top-width: 1" bgcolor="#E6E6E6">
    <font SIZE="2">166,854</font></td>
    <td WIDTH="39" align="right" style="border-top-style: solid; border-top-width: 1" bgcolor="#E6E6E6">
    <font SIZE="2">$</font></td>
    <td WIDTH="104" align="right" style="border-top-style: solid; border-top-width: 1" bgcolor="#E6E6E6">
    <font SIZE="2">141,029</font></td>
    <td WIDTH="39" align="right" style="border-top-style: solid; border-top-width: 1" bgcolor="#E6E6E6">
    <font SIZE="2">$</font></td>
    <td WIDTH="104" align="right" style="border-top-style: solid; border-top-width: 1" bgcolor="#E6E6E6">
    <font SIZE="2">121,619</font></td>
  </tr>
  <tr>
    <td WIDTH="813"><font SIZE="2">United States</font></td>
    <td WIDTH="38" align="right">&nbsp;</td>
    <td WIDTH="104" align="right"><font SIZE="2">66,012</font></td>
    <td WIDTH="39" align="right">&nbsp;</td>
    <td WIDTH="104" align="right"><font SIZE="2">67,260</font></td>
    <td WIDTH="39" align="right">&nbsp;</td>
    <td WIDTH="104" align="right"><font SIZE="2">62,049</font></td>
  </tr>
  <tr>
    <td WIDTH="813" bgcolor="#E6E6E6"><font SIZE="2">Canada</font></td>
    <td WIDTH="38" align="right" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="104" align="right" bgcolor="#E6E6E6"><font SIZE="2">45,022</font></td>
    <td WIDTH="39" align="right" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="104" align="right" bgcolor="#E6E6E6"><font SIZE="2">47,711</font></td>
    <td WIDTH="39" align="right" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="104" align="right" bgcolor="#E6E6E6"><font SIZE="2">46,164</font></td>
  </tr>
  <tr>
    <td WIDTH="813"><font SIZE="2">Mexico</font></td>
    <td WIDTH="38" align="right">&nbsp;</td>
    <td WIDTH="104" align="right"><font SIZE="2">4,198</font></td>
    <td WIDTH="39" align="right">&nbsp;</td>
    <td WIDTH="104" align="right"><font SIZE="2">4,615</font></td>
    <td WIDTH="39" align="right">&nbsp;</td>
    <td WIDTH="104" align="right"><font SIZE="2">4,745</font></td>
  </tr>
  <tr>
    <td WIDTH="813" style="border-top-style: solid; border-top-width: 2; border-bottom-style: solid; border-bottom-width: 2" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="38" align="right" style="border-top-style: solid; border-top-width: 2; border-bottom-style: solid; border-bottom-width: 2" bgcolor="#E6E6E6">
    <font SIZE="2">$</font></td>
    <td WIDTH="104" align="right" style="border-top-style: solid; border-top-width: 2; border-bottom-style: solid; border-bottom-width: 2" bgcolor="#E6E6E6">
    <font SIZE="2">282,086</font></td>
    <td WIDTH="39" align="right" style="border-top-style: solid; border-top-width: 2; border-bottom-style: solid; border-bottom-width: 2" bgcolor="#E6E6E6">
    <font SIZE="2">$</font></td>
    <td WIDTH="104" align="right" style="border-top-style: solid; border-top-width: 2; border-bottom-style: solid; border-bottom-width: 2" bgcolor="#E6E6E6">
    <font SIZE="2">260,615</font></td>
    <td WIDTH="39" align="right" style="border-top-style: solid; border-top-width: 2; border-bottom-style: solid; border-bottom-width: 2" bgcolor="#E6E6E6">
    <font SIZE="2">$</font></td>
    <td WIDTH="104" align="right" style="border-top-style: solid; border-top-width: 2; border-bottom-style: solid; border-bottom-width: 2" bgcolor="#E6E6E6">
    <font SIZE="2">234,577</font></td>
  </tr>
</table>
<font SIZE="2"><b>
<p>9. Other information: </p>
</b></font>
<table CELLSPACING="0" BORDER="0" WIDTH="100%" cellpadding="0" style="border-collapse: collapse" bordercolor="#111111">
  <tr>
    <td WIDTH="664">&nbsp;</td>
    <td WIDTH="37" align="right">&nbsp;</td>
    <td WIDTH="251" COLSPAN="3" align="center" bgcolor="#9ACCFF"><font SIZE="2">
    <i><b>Three months ended</b></i></font></td>
    <td WIDTH="37" align="center">&nbsp;</td>
    <td WIDTH="252" COLSPAN="3" align="center" bgcolor="#9ACCFF"><font SIZE="2">
    <i><b>Six months ended</b></i></font></td>
  </tr>
  <tr>
    <td WIDTH="664">&nbsp;</td>
    <td WIDTH="37" align="right">&nbsp;</td>
    <td WIDTH="107" align="right"><font SIZE="2"><u>April 2,</u></font></td>
    <td WIDTH="37" align="right">&nbsp;</td>
    <td WIDTH="107" align="right"><font SIZE="2"><u>April 3,</u></font></td>
    <td WIDTH="37" align="right">&nbsp;</td>
    <td WIDTH="107" align="right"><font SIZE="2"><u>April 2,</u></font></td>
    <td WIDTH="37" align="right">&nbsp;</td>
    <td WIDTH="108" align="right"><font SIZE="2"><u>April 3,</u></font></td>
  </tr>
  <tr>
    <td WIDTH="664">&nbsp;</td>
    <td WIDTH="37" align="right">&nbsp;</td>
    <td WIDTH="107" align="right"><font SIZE="2"><u>2006</u></font></td>
    <td WIDTH="37" align="right">&nbsp;</td>
    <td WIDTH="107" align="right"><font SIZE="2"><u>2005</u></font></td>
    <td WIDTH="37" align="right">&nbsp;</td>
    <td WIDTH="107" align="right"><font SIZE="2"><u>2006</u></font></td>
    <td WIDTH="37" align="right">&nbsp;</td>
    <td WIDTH="108" align="right"><font SIZE="2"><u>2005</u></font></td>
  </tr>
  <tr>
    <td WIDTH="664" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="37" align="right" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="107" align="right" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="37" align="right" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="107" align="right" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="37" align="right" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="107" align="right" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="37" align="right" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="108" align="right" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="664" style="border-top-style: solid; border-top-width: 1">
    <font SIZE="2">(a) The following items were included in the determination of
    the</font></td>
    <td WIDTH="37" align="right" style="border-top-style: solid; border-top-width: 1">&nbsp;</td>
    <td WIDTH="107" align="right" style="border-top-style: solid; border-top-width: 1">&nbsp;</td>
    <td WIDTH="37" align="right" style="border-top-style: solid; border-top-width: 1">&nbsp;</td>
    <td WIDTH="107" align="right" style="border-top-style: solid; border-top-width: 1">&nbsp;</td>
    <td WIDTH="37" align="right" style="border-top-style: solid; border-top-width: 1">&nbsp;</td>
    <td WIDTH="107" align="right" style="border-top-style: solid; border-top-width: 1">&nbsp;</td>
    <td WIDTH="37" align="right" style="border-top-style: solid; border-top-width: 1">&nbsp;</td>
    <td WIDTH="108" align="right" style="border-top-style: solid; border-top-width: 1">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="664" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2">Company's net earnings:</font></td>
    <td WIDTH="37" align="right" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="107" align="right" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="37" align="right" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="107" align="right" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="37" align="right" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="107" align="right" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="37" align="right" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="108" align="right" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="664" style="border-top-style: solid; border-top-width: 1" bgcolor="#E6E6E6">
    <font SIZE="2">Depreciation of fixed assets</font></td>
    <td WIDTH="37" align="right" style="border-top-style: solid; border-top-width: 1" bgcolor="#E6E6E6">
    <font SIZE="2">$</font></td>
    <td WIDTH="107" align="right" style="border-top-style: solid; border-top-width: 1" bgcolor="#E6E6E6">
    <font SIZE="2">7,426</font></td>
    <td WIDTH="37" align="right" style="border-top-style: solid; border-top-width: 1" bgcolor="#E6E6E6">
    <font SIZE="2">$</font></td>
    <td WIDTH="107" align="right" style="border-top-style: solid; border-top-width: 1" bgcolor="#E6E6E6">
    <font SIZE="2">6,289</font></td>
    <td WIDTH="37" align="right" style="border-top-style: solid; border-top-width: 1" bgcolor="#E6E6E6">
    <font SIZE="2">$</font></td>
    <td WIDTH="107" align="right" style="border-top-style: solid; border-top-width: 1" bgcolor="#E6E6E6">
    <font SIZE="2">14,613</font></td>
    <td WIDTH="37" align="right" style="border-top-style: solid; border-top-width: 1" bgcolor="#E6E6E6">
    <font SIZE="2">$</font></td>
    <td WIDTH="108" align="right" style="border-top-style: solid; border-top-width: 1" bgcolor="#E6E6E6">
    <font SIZE="2">11,973</font></td>
  </tr>
  <tr>
    <td WIDTH="664"><font SIZE="2">Interest expense on long-term debt</font></td>
    <td WIDTH="37" align="right">&nbsp;</td>
    <td WIDTH="107" align="right"><font SIZE="2">1,089</font></td>
    <td WIDTH="37" align="right">&nbsp;</td>
    <td WIDTH="107" align="right"><font SIZE="2">1,322</font></td>
    <td WIDTH="37" align="right">&nbsp;</td>
    <td WIDTH="107" align="right"><font SIZE="2">2,120</font></td>
    <td WIDTH="37" align="right">&nbsp;</td>
    <td WIDTH="108" align="right"><font SIZE="2">2,641</font></td>
  </tr>
  <tr>
    <td WIDTH="664" bgcolor="#E6E6E6"><font SIZE="2">Interest expense on short-term indebtedness</font></td>
    <td WIDTH="37" align="right" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="107" align="right" bgcolor="#E6E6E6"><font SIZE="2">68</font></td>
    <td WIDTH="37" align="right" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="107" align="right" bgcolor="#E6E6E6"><font SIZE="2">-</font></td>
    <td WIDTH="37" align="right" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="107" align="right" bgcolor="#E6E6E6"><font SIZE="2">132</font></td>
    <td WIDTH="37" align="right" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="108" align="right" bgcolor="#E6E6E6"><font SIZE="2">-</font></td>
  </tr>
  <tr>
    <td WIDTH="664"><font SIZE="2">Foreign exchange (gain) loss</font></td>
    <td WIDTH="37" align="right">&nbsp;</td>
    <td WIDTH="107" align="right"><font SIZE="2">(120)</font></td>
    <td WIDTH="37" align="right">&nbsp;</td>
    <td WIDTH="107" align="right"><font SIZE="2">26</font></td>
    <td WIDTH="37" align="right">&nbsp;</td>
    <td WIDTH="107" align="right"><font SIZE="2">(29)</font></td>
    <td WIDTH="37" align="right">&nbsp;</td>
    <td WIDTH="108" align="right"><font SIZE="2">(578)</font></td>
  </tr>
  <tr>
    <td WIDTH="664" bgcolor="#E6E6E6"><font SIZE="2">Amortization expense of deferred start-up
    costs</font></td>
    <td WIDTH="37" align="right" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="107" align="right" bgcolor="#E6E6E6"><font SIZE="2">227</font></td>
    <td WIDTH="37" align="right" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="107" align="right" bgcolor="#E6E6E6"><font SIZE="2">92</font></td>
    <td WIDTH="37" align="right" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="107" align="right" bgcolor="#E6E6E6"><font SIZE="2">411</font></td>
    <td WIDTH="37" align="right" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="108" align="right" bgcolor="#E6E6E6"><font SIZE="2">179</font></td>
  </tr>
  <tr>
    <td WIDTH="664"><font SIZE="2">Amortization of deferred financing costs and
    other</font></td>
    <td WIDTH="37" align="right">&nbsp;</td>
    <td WIDTH="107" align="right"><font SIZE="2">59</font></td>
    <td WIDTH="37" align="right">&nbsp;</td>
    <td WIDTH="107" align="right"><font SIZE="2">109</font></td>
    <td WIDTH="37" align="right">&nbsp;</td>
    <td WIDTH="107" align="right"><font SIZE="2">118</font></td>
    <td WIDTH="37" align="right">&nbsp;</td>
    <td WIDTH="108" align="right"><font SIZE="2">218</font></td>
  </tr>
  <tr>
    <td WIDTH="664" style="border-bottom-style: solid; border-bottom-width: 1" bgcolor="#E6E6E6">
    <font SIZE="2">Investment income</font></td>
    <td WIDTH="37" align="right" style="border-bottom-style: solid; border-bottom-width: 1" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="107" align="right" style="border-bottom-style: solid; border-bottom-width: 1" bgcolor="#E6E6E6">
    <font SIZE="2">(409)</font></td>
    <td WIDTH="37" align="right" style="border-bottom-style: solid; border-bottom-width: 1" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="107" align="right" style="border-bottom-style: solid; border-bottom-width: 1" bgcolor="#E6E6E6">
    <font SIZE="2">(68)</font></td>
    <td WIDTH="37" align="right" style="border-bottom-style: solid; border-bottom-width: 1" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="107" align="right" style="border-bottom-style: solid; border-bottom-width: 1" bgcolor="#E6E6E6">
    <font SIZE="2">(919)</font></td>
    <td WIDTH="37" align="right" style="border-bottom-style: solid; border-bottom-width: 1" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="108" align="right" style="border-bottom-style: solid; border-bottom-width: 1" bgcolor="#E6E6E6">
    <font SIZE="2">(187)</font></td>
  </tr>
  <tr>
    <td WIDTH="664" style="border-top-style: solid; border-top-width: 1; border-bottom-style: none; border-bottom-width: medium">&nbsp;</td>
    <td WIDTH="37" align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: none; border-bottom-width: medium">&nbsp;</td>
    <td WIDTH="107" align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: none; border-bottom-width: medium">&nbsp;</td>
    <td WIDTH="37" align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: none; border-bottom-width: medium">&nbsp;</td>
    <td WIDTH="107" align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: none; border-bottom-width: medium">&nbsp;</td>
    <td WIDTH="37" align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: none; border-bottom-width: medium">&nbsp;</td>
    <td WIDTH="107" align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: none; border-bottom-width: medium">&nbsp;</td>
    <td WIDTH="37" align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: none; border-bottom-width: medium">&nbsp;</td>
    <td WIDTH="108" align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: none; border-bottom-width: medium">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="664" style="border-top-style: none; border-top-width: medium; border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2">(b) Supplemental cash flow disclosure:</font></td>
    <td WIDTH="37" align="right" style="border-top-style: none; border-top-width: medium; border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="107" align="right" style="border-top-style: none; border-top-width: medium; border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="37" align="right" style="border-top-style: none; border-top-width: medium; border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="107" align="right" style="border-top-style: none; border-top-width: medium; border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="37" align="right" style="border-top-style: none; border-top-width: medium; border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="107" align="right" style="border-top-style: none; border-top-width: medium; border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="37" align="right" style="border-top-style: none; border-top-width: medium; border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="108" align="right" style="border-top-style: none; border-top-width: medium; border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="664" style="border-top-style: solid; border-top-width: 1" bgcolor="#E6E6E6">
    <font SIZE="2">Cash paid during the period for:</font></td>
    <td WIDTH="37" align="right" style="border-top-style: solid; border-top-width: 1" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="107" align="right" style="border-top-style: solid; border-top-width: 1" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="37" align="right" style="border-top-style: solid; border-top-width: 1" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="107" align="right" style="border-top-style: solid; border-top-width: 1" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="37" align="right" style="border-top-style: solid; border-top-width: 1" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="107" align="right" style="border-top-style: solid; border-top-width: 1" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="37" align="right" style="border-top-style: solid; border-top-width: 1" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="108" align="right" style="border-top-style: solid; border-top-width: 1" bgcolor="#E6E6E6">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="664"><font SIZE="2">
    <p style="margin-left: 26">Interest</font></td>
    <td WIDTH="37" align="right"><font SIZE="2">$</font></td>
    <td WIDTH="107" align="right"><font SIZE="2">1,100</font></td>
    <td WIDTH="37" align="right"><font SIZE="2">$</font></td>
    <td WIDTH="107" align="right"><font SIZE="2">1,299</font></td>
    <td WIDTH="37" align="right"><font SIZE="2">$</font></td>
    <td WIDTH="107" align="right"><font SIZE="2">2,160</font></td>
    <td WIDTH="37" align="right"><font SIZE="2">$</font></td>
    <td WIDTH="108" align="right"><font SIZE="2">2,536</font></td>
  </tr>
  <tr>
    <td WIDTH="664" style="border-bottom-style: solid; border-bottom-width: 1" bgcolor="#E6E6E6">
    <font SIZE="2">
    <p style="margin-left: 26">Income taxes</font></td>
    <td WIDTH="37" align="right" style="border-bottom-style: solid; border-bottom-width: 1" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="107" align="right" style="border-bottom-style: solid; border-bottom-width: 1" bgcolor="#E6E6E6">
    <font SIZE="2">935</font></td>
    <td WIDTH="37" align="right" style="border-bottom-style: solid; border-bottom-width: 1" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="107" align="right" style="border-bottom-style: solid; border-bottom-width: 1" bgcolor="#E6E6E6">
    <font SIZE="2">480</font></td>
    <td WIDTH="37" align="right" style="border-bottom-style: solid; border-bottom-width: 1" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="107" align="right" style="border-bottom-style: solid; border-bottom-width: 1" bgcolor="#E6E6E6">
    <font SIZE="2">1,271</font></td>
    <td WIDTH="37" align="right" style="border-bottom-style: solid; border-bottom-width: 1" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="108" align="right" style="border-bottom-style: solid; border-bottom-width: 1" bgcolor="#E6E6E6">
    <font SIZE="2">562</font></td>
  </tr>
</table>
<hr color="#000000" size="5"><p Style='page-break-before:always'>
<table border="0" cellpadding="0" cellspacing="0" style="border-collapse: collapse" bordercolor="#111111" width="100%">
  <tr>
    <td width="50%"><img border="0" src="gildan1.jpg" width="159" height="49"></td>
    <td width="50%" bgcolor="#000000"><b><font SIZE="4" color="#FFFFFF">
    <p style="margin-left: 20"><font style="background-color: #000000">Quarterly
    Report to Shareholders <br>
    Second quarter ended April 2, 2006 </font></font></b></td>
  </tr>
</table>
<font SIZE="2"><b>
<p>9. Other information: (continued) </p>
</b></font>
<table CELLSPACING="0" BORDER="0" WIDTH="100%" cellpadding="0" style="border-collapse: collapse" bordercolor="#111111">
  <tr>
    <td WIDTH="705"><font FACE="Arial MT" SIZE="2">(b) Supplemental cash flow
    disclosure:</font></td>
    <td WIDTH="178" COLSPAN="2" align="right"><font FACE="Arial MT" SIZE="2"><u>
    April 2, 2006</u></font></td>
    <td WIDTH="179" COLSPAN="2" align="right"><font FACE="Arial MT" SIZE="2"><u>
    October 2, 2005</u></font></td>
    <td WIDTH="179" COLSPAN="2" align="right"><font FACE="Arial MT" SIZE="2"><u>
    April 3, 2005</u></font></td>
  </tr>
  <tr>
    <td WIDTH="705" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="32" align="right" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="146" align="right" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="32" align="right" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="147" align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <font FACE="Arial MT" SIZE="2">(audited)</font></td>
    <td WIDTH="32" align="right" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="147" align="right" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="705" style="border-top-style: solid; border-top-width: 1" bgcolor="#E6E6E6">
    <font FACE="Arial MT" SIZE="2">Non-cash transactions:</font></td>
    <td WIDTH="32" align="right" style="border-top-style: solid; border-top-width: 1" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="146" align="right" style="border-top-style: solid; border-top-width: 1" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="32" align="right" style="border-top-style: solid; border-top-width: 1" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="147" align="right" style="border-top-style: solid; border-top-width: 1" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="32" align="right" style="border-top-style: solid; border-top-width: 1" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="147" align="right" style="border-top-style: solid; border-top-width: 1" bgcolor="#E6E6E6">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="705" style="border-bottom-style: solid; border-bottom-width: 1">
    <font FACE="Arial MT" SIZE="2">
    <p style="margin-left: 26">Additions to fixed assets included in accounts
    payable</font></td>
    <td WIDTH="32" align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <font FACE="Arial MT" SIZE="2">$</font></td>
    <td WIDTH="146" align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <font FACE="Arial MT" SIZE="2">943</font></td>
    <td WIDTH="32" align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <font FACE="Arial MT" SIZE="2">$</font></td>
    <td WIDTH="147" align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <font FACE="Arial MT" SIZE="2">740</font></td>
    <td WIDTH="32" align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <font FACE="Arial MT" SIZE="2">$</font></td>
    <td WIDTH="147" align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <font FACE="Arial MT" SIZE="2">4,889</font></td>
  </tr>
  <tr>
    <td WIDTH="705" style="border-top-style: solid; border-top-width: 1" bgcolor="#E6E6E6">
    <font FACE="Arial MT" SIZE="2">Cash and cash equivalents consist of:</font></td>
    <td WIDTH="32" align="right" style="border-top-style: solid; border-top-width: 1" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="146" align="right" style="border-top-style: solid; border-top-width: 1" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="32" align="right" style="border-top-style: solid; border-top-width: 1" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="147" align="right" style="border-top-style: solid; border-top-width: 1" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="32" align="right" style="border-top-style: solid; border-top-width: 1" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="147" align="right" style="border-top-style: solid; border-top-width: 1" bgcolor="#E6E6E6">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="705"><font FACE="Arial MT" SIZE="2">
    <p style="margin-left: 26">Cash balances with banks</font></td>
    <td WIDTH="32" align="right"><font FACE="Arial MT" SIZE="2">$</font></td>
    <td WIDTH="146" align="right"><font FACE="Arial MT" SIZE="2">32,329</font></td>
    <td WIDTH="32" align="right"><font FACE="Arial MT" SIZE="2">$</font></td>
    <td WIDTH="147" align="right"><font FACE="Arial MT" SIZE="2">38,802</font></td>
    <td WIDTH="32" align="right"><font FACE="Arial MT" SIZE="2">$</font></td>
    <td WIDTH="147" align="right"><font FACE="Arial MT" SIZE="2">30,043</font></td>
  </tr>
  <tr>
    <td WIDTH="705" style="border-bottom-style: solid; border-bottom-width: 1" bgcolor="#E6E6E6">
    <font FACE="Arial MT" SIZE="2">
    <p style="margin-left: 26">Short-term investments</font></td>
    <td WIDTH="32" align="right" style="border-bottom-style: solid; border-bottom-width: 1" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="146" align="right" style="border-bottom-style: solid; border-bottom-width: 1" bgcolor="#E6E6E6">
    <font FACE="Arial MT" SIZE="2">15,800</font></td>
    <td WIDTH="32" align="right" style="border-bottom-style: solid; border-bottom-width: 1" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="147" align="right" style="border-bottom-style: solid; border-bottom-width: 1" bgcolor="#E6E6E6">
    <font FACE="Arial MT" SIZE="2">31,000</font></td>
    <td WIDTH="32" align="right" style="border-bottom-style: solid; border-bottom-width: 1" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="147" align="right" style="border-bottom-style: solid; border-bottom-width: 1" bgcolor="#E6E6E6">
    <font FACE="Arial MT" SIZE="2">-</font></td>
  </tr>
  <tr>
    <td WIDTH="705" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="32" align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1">
    <font FACE="Arial MT" SIZE="2">$</font></td>
    <td WIDTH="146" align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1">
    <font FACE="Arial MT" SIZE="2">48,129</font></td>
    <td WIDTH="32" align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1">
    <font FACE="Arial MT" SIZE="2">$</font></td>
    <td WIDTH="147" align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1">
    <font FACE="Arial MT" SIZE="2">69,802</font></td>
    <td WIDTH="32" align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1">
    <font FACE="Arial MT" SIZE="2">$</font></td>
    <td WIDTH="147" align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1">
    <font FACE="Arial MT" SIZE="2">30,043</font></td>
  </tr>
</table>
<p>&nbsp;</p>
<p>&nbsp;</p>
<p>&nbsp;</p>
<p>&nbsp;</p>
<hr color="#000000" size="5"><p Style='page-break-before:always'>
<table border="0" cellpadding="0" cellspacing="0" style="border-collapse: collapse" bordercolor="#111111" width="100%">
  <tr>
    <td width="50%"><img border="0" src="gildan1.jpg" width="159" height="49"></td>
    <td width="50%" bgcolor="#000000"><b><font SIZE="4" color="#FFFFFF">
    <p style="margin-left: 20"><font style="background-color: #000000">Quarterly
    Report to Shareholders <br>
    Second quarter ended April 2, 2006 </font></font></b></td>
  </tr>
</table>
<font SIZE="2"><i>
<p ALIGN="JUSTIFY">In this MD&amp;A, &quot;Gildan&quot;, the &quot;Company&quot;, or the words &quot;we&quot;,
&quot;us&quot;, &quot;our&quot; refer, depending on the context, either to Gildan Activewear Inc. or
to Gildan Activewear Inc. together with its subsidiaries and joint ventures. </p>
</i></font><b><font size="5">
<p>MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
OPERATIONS </p>
</font></b><font SIZE="2">
<p ALIGN="JUSTIFY">The following is management's discussion and analysis (MD&amp;A)
of Gildan's consolidated financial condition and results of operations for the
three months and six months ended April 2, 2006 compared to the corresponding
periods in the previous year. This MD&amp;A has been prepared as of May 3, 2006. For
a complete understanding of our business environment, trends, risks and
uncertainties and the effect of accounting estimates on our results of
operations and financial condition, this MD&amp;A should be read together with the
unaudited interim consolidated financial statements for the three and six month
periods ended April 2, 2006 and notes thereto, and with our MD&amp;A for the year
ended October 2, 2005 (2005 MD&amp;A), which is part of the fiscal 2005 Annual
Report. </p>
<p ALIGN="JUSTIFY">All financial information contained in this interim MD&amp;A and
Gildan's interim consolidated financial statements has been prepared in
accordance with Canadian generally accepted accounting principles (GAAP), except
for certain information discussed in the paragraph entitled &quot;<i>Non-GAAP
Financial Measures&quot;</i> on page 11 of this interim MD&amp;A. The Company's financial
results are reconciled to U.S. GAAP at the end of its fiscal year. The effect of
significant differences between Canadian and U.S. GAAP is discussed in Note 18
to the Company's 2005 Consolidated Financial Statements. All amounts in this
report are in U.S. dollars, unless otherwise noted. The interim consolidated
financial statements and this MD&amp;A were reviewed by Gildan's Audit and Finance
Committee and were approved by the Board of Directors. </p>
<p>This document contains forward-looking statements, which are qualified by
reference to, and should be read together with the &quot;<i>Forward-looking
Statements&quot; </i>on page 21. </p>
</font>
<p><font size="2">Additional information about Gildan, including our 2005
Annual Information Form, is available on our website at <font color="#0000FF">
<u>www.gildan.com</u></font>, on the
SEDAR website at <font color="#0000FF"><u>www.sedar.com</u></font> and on the EDGAR section of the U.S. Securities
and Exchange Commission website (including the Annual Report on Form 40-F) at
<font color="#0000FF"><u>www.sec.gov</u></font>.</font></p>
<p><b><font size="2">CORPORATE OVERVIEW </font></b> </p>
<font SIZE="2">
<p ALIGN="JUSTIFY">Gildan is a vertically-integrated marketer and manufacturer
of premium quality branded basic apparel. We manufacture premium quality basic
T-shirts, sport shirts and sweatshirts for sale in the wholesale imprinted
activewear market. Our products are sold as blanks, which are ultimately
decorated by screenprinters with designs and logos for sale to consumers. Gildan
has announced plans to sell its products into the mass-market retail channel, in
addition to the screenprint market. In conjunction with this strategy, Gildan is
expanding its product-line to include underwear and athletic socks. </p>
<p ALIGN="JUSTIFY">To support our sales in the various markets, we have modern
textile facilities located in Honduras, the Dominican Republic and Canada. The
Dominican Republic facility began production in fiscal 2005 and management
expects to ramp up this facility to close to full capacity by the end of fiscal
2006. All of Gildan's sewing facilities are located in Central America, Mexico
and the Caribbean Basin. We also utilize third party contractors to complement
our vertically-integrated production. </p>
<p ALIGN="JUSTIFY">In the first quarter of fiscal 2004, Gildan formed a
joint-venture company with Frontier Spinning Mills, Inc. (Frontier), called
CanAm Yarns, LLC (CanAm) (formerly Cedartown Manufacturing, LLC). The joint
venture operates yarn-spinning facilities in Georgia and North Carolina. CanAm's
yarn-spinning </font><font FACE="Arial MT" SIZE="2">operations, together with
supply agreements currently in place with Frontier and other third-party yarn
providers, serve to meet our commodity yarn requirements. </p>
<hr color="#000000" size="5"><p Style='page-break-before:always'>
<table border="0" cellpadding="0" cellspacing="0" style="border-collapse: collapse" bordercolor="#111111" width="100%">
  <tr>
    <td width="50%"><img border="0" src="gildan1.jpg" width="159" height="49"></td>
    <td width="50%" bgcolor="#000000"><b><font SIZE="4" color="#FFFFFF">
    <p style="margin-left: 20"><font style="background-color: #000000">Quarterly
    Report to Shareholders <br>
    Second quarter ended April 2, 2006 </font></font></b></td>
  </tr>
</table>
<p align="justify">We distribute our products in Canada and the U.S. primarily
out of company-owned distribution centres, and we use third-party warehouses in
Europe and Australia to service our international customers. </p>
<p align="justify">Our corporate head office is located in Montreal, Canada and
we employ over 11,000 full-time employees in our facilities worldwide. </p>
<b>
<p align="justify">INDUSTRY OVERVIEW </p>
</b>
<p ALIGN="JUSTIFY">We currently focus on sales of T-shirts, sport shirts, and
sweatshirts, in &quot;blank&quot; form, to the wholesale imprinted activewear market.
&quot;Imprinted&quot; activewear is decorated with a screenprint or embroidered with a
logo, design or character before it reaches the customer. Imprinted activewear
is either branded or private label. Branded products, which constitute
approximately 95% of Gildan's total sales, reach consumers carrying the
manufacturer's label, whereas products sold on a private label basis reach
consumers carrying the brand name of the customer. </p>
<p ALIGN="justify">We believe that growth in the imprinted activewear market has
been driven by several trends, such as the following:</p>
<ul>
  <li>
  <p ALIGN="justify">continued use of activewear for event merchandising (such
  as concerts, festivals, etc.);</li>
  <li>
  <p ALIGN="justify">continued evolution of the entertainment/sports licensing
  and merchandising businesses;</li>
  <li>
  <p ALIGN="justify">the growing use of activewear for uniform applications;</li>
  <li>
  <p ALIGN="justify">the growing use of activewear for corporate promotions;</li>
  <li>
  <p ALIGN="justify">continued increase in use of activewear products for travel
  and tourism;</li>
  <li>
  <p ALIGN="justify">an increased emphasis on physical fitness; and</li>
  <li>
  <p ALIGN="justify">a greater use and acceptance of casual dress in the
  workplace.</li>
</ul>
<p ALIGN="JUSTIFY">Furthermore, the continuation of significant reductions in
manufacturing costs, combined with quality enhancements in activewear apparel,
such as pre-shrunk fabrics, improved fabric weight, blends and construction,
have provided consumers with superior products at lower prices. </p>
<p ALIGN="JUSTIFY">The screenprint activewear market is characterized by low
fashion risk compared to many other apparel markets, since products are basic
and produced in a limited range of sizes, colours and styles, and since logos
and designs are not imprinted by manufacturers. </font><b></p>
<font SIZE="2" face="Arial MT">
<p align="justify">RESULTS OF OPERATIONS </p>
<p align="justify">Non-GAAP Financial Measures </p>
</font></b><font FACE="Arial MT" SIZE="2">
<p ALIGN="JUSTIFY">The operating results of Gildan account for unusual items
affecting the comparability of its results. To measure our performance from one
period to the next, without the variations caused by the adjustments of special
charges as discussed on page 13, management uses certain measures that are not
defined by GAAP, such as: adjusted net earnings and adjusted earnings per share,
being net earnings and earnings per share excluding the special charge. Other
such measures are free cash flow, total indebtedness and net debt. We use and
present such non-GAAP financial measures because we believe such measures
provide meaningful information on the Company's financial condition and
operating results. However, investors should know that such non-GAAP financial
measures have no standardized meaning as prescribed by GAAP and may not be
comparable to similar measures used and presented by other companies.
Accordingly, they should not be considered in isolation. </p>
<p align="justify">See the table on page 19 for a complete reconciliation of all
non-GAAP financial measures used and presented by Gildan to the most directly
comparable GAAP financial measures. </p>
</font><hr color="#000000" size="5"><p Style='page-break-before:always'><font SIZE="2"><b>
<table border="0" cellpadding="0" cellspacing="0" style="border-collapse: collapse" bordercolor="#111111" width="100%">
  <tr>
    <font FACE="Arial MT" SIZE="2">
    <td width="50%"><img border="0" src="gildan1.jpg" width="159" height="49"></td>
    <td width="50%" bgcolor="#000000"><b><font SIZE="4" color="#FFFFFF">
    <p style="margin-left: 20"><font style="background-color: #000000">Quarterly
    Report to Shareholders <br>
    Second quarter ended April 2, 2006 </font></font></b></td>
    </font>
  </tr>
</table>
<p>Quarterly Results Summary </p>
</b>
<p ALIGN="JUSTIFY">The table below sets forth selected consolidated financial
and other data for the eight most recently completed quarters. This quarterly
information is unaudited but has been prepared on the same basis as the annual
consolidated financial statements. The operating results for any quarter are not
necessarily indicative of the results to be expected for any future period. </p>
</font>
<table CELLSPACING="0" BORDER="0" WIDTH="100%" cellpadding="0" style="border-collapse: collapse" bordercolor="#111111">
  <tr>
    <td WIDTH="453" style="border-top-style: solid; border-top-width: 1">&nbsp;</td>
    <td WIDTH="196" align="center" colspan="2" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2">2006</font></td>
    <td WIDTH="394" align="center" colspan="4" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2">2005</font></td>
    <td WIDTH="198" align="center" colspan="2" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2">2004</font></td>
  </tr>
  <tr>
    <td WIDTH="453" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2"><i>(in $ millions, except per share amounts, $)</i></font></td>
    <td WIDTH="98" align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2"><b>Q2</b></font></td>
    <td WIDTH="98" align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2">Q1</font></td>
    <td WIDTH="98" align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2">Q4</font></td>
    <td WIDTH="98" align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2">Q3</font></td>
    <td WIDTH="99" align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2">Q2</font></td>
    <td WIDTH="99" align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2">Q1</font></td>
    <td WIDTH="99" align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2">Q4</font></td>
    <td WIDTH="99" align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2">Q3</font></td>
  </tr>
  <tr>
    <td WIDTH="453" style="border-top-style: solid; border-top-width: 1" bgcolor="#E6E6E6">
    <font SIZE="2">Sales</font></td>
    <td WIDTH="98" align="right" style="border-top-style: solid; border-top-width: 1" bgcolor="#E6E6E6">
    <font SIZE="2"><b>183.8</b></font></td>
    <td WIDTH="98" align="right" style="border-top-style: solid; border-top-width: 1" bgcolor="#E6E6E6">
    <font SIZE="2">120.3</font></td>
    <td WIDTH="98" align="right" style="border-top-style: solid; border-top-width: 1" bgcolor="#E6E6E6">
    <font SIZE="2">180.7</font></td>
    <td WIDTH="98" align="right" style="border-top-style: solid; border-top-width: 1" bgcolor="#E6E6E6">
    <font SIZE="2">198.9</font></td>
    <td WIDTH="99" align="right" style="border-top-style: solid; border-top-width: 1" bgcolor="#E6E6E6">
    <font SIZE="2">165.3</font></td>
    <td WIDTH="99" align="right" style="border-top-style: solid; border-top-width: 1" bgcolor="#E6E6E6">
    <font SIZE="2">109.0</font></td>
    <td WIDTH="99" align="right" style="border-top-style: solid; border-top-width: 1" bgcolor="#E6E6E6">
    <font SIZE="2">145.6</font></td>
    <td WIDTH="99" align="right" style="border-top-style: solid; border-top-width: 1" bgcolor="#E6E6E6">
    <font SIZE="2">168.4</font></td>
  </tr>
  <tr>
    <td WIDTH="453"><font SIZE="2">Net earnings</font></td>
    <td WIDTH="98" align="right"><font SIZE="2"><b>31.0</b></font></td>
    <td WIDTH="98" align="right"><font SIZE="2">16.2</font></td>
    <td WIDTH="98" align="right"><font SIZE="2">29.2</font></td>
    <td WIDTH="98" align="right"><font SIZE="2">34.1</font></td>
    <td WIDTH="99" align="right"><font SIZE="2">14.3</font></td>
    <td WIDTH="99" align="right"><font SIZE="2">8.4</font></td>
    <td WIDTH="99" align="right"><font SIZE="2">16.8</font></td>
    <td WIDTH="99" align="right"><font SIZE="2">26.2</font></td>
  </tr>
  <tr>
    <td WIDTH="453" bgcolor="#E6E6E6"><font SIZE="2">Net earnings per share</font></td>
    <td WIDTH="98" align="right" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="98" align="right" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="98" align="right" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="98" align="right" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="99" align="right" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="99" align="right" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="99" align="right" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="99" align="right" bgcolor="#E6E6E6">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="453"><font SIZE="2">
    <p style="margin-left: 26">Basic EPS</font></td>
    <td WIDTH="98" align="right"><font SIZE="2"><b>0.52</b></font></td>
    <td WIDTH="98" align="right"><font SIZE="2">0.27</font></td>
    <td WIDTH="98" align="right"><font SIZE="2">0.49</font></td>
    <td WIDTH="98" align="right"><font SIZE="2">0.57</font></td>
    <td WIDTH="99" align="right"><font SIZE="2">0.24</font></td>
    <td WIDTH="99" align="right"><font SIZE="2">0.14</font></td>
    <td WIDTH="99" align="right"><font SIZE="2">0.28</font></td>
    <td WIDTH="99" align="right"><font SIZE="2">0.44</font></td>
  </tr>
  <tr>
    <td WIDTH="453" bgcolor="#E6E6E6"><font SIZE="2">
    <p style="margin-left: 26">Diluted EPS</font></td>
    <td WIDTH="98" align="right" bgcolor="#E6E6E6"><font SIZE="2"><b>0.51</b></font></td>
    <td WIDTH="98" align="right" bgcolor="#E6E6E6"><font SIZE="2">0.27</font></td>
    <td WIDTH="98" align="right" bgcolor="#E6E6E6"><font SIZE="2">0.48</font></td>
    <td WIDTH="98" align="right" bgcolor="#E6E6E6"><font SIZE="2">0.57</font></td>
    <td WIDTH="99" align="right" bgcolor="#E6E6E6"><font SIZE="2">0.24</font></td>
    <td WIDTH="99" align="right" bgcolor="#E6E6E6"><font SIZE="2">0.14</font></td>
    <td WIDTH="99" align="right" bgcolor="#E6E6E6"><font SIZE="2">0.28</font></td>
    <td WIDTH="99" align="right" bgcolor="#E6E6E6"><font SIZE="2">0.44</font></td>
  </tr>
  <tr>
    <td WIDTH="453"><font SIZE="2">Total assets</font></td>
    <td WIDTH="98" align="right"><font SIZE="2"><b>643.8</b></font></td>
    <td WIDTH="98" align="right"><font SIZE="2">609.6</font></td>
    <td WIDTH="98" align="right"><font SIZE="2">597.5</font></td>
    <td WIDTH="98" align="right"><font SIZE="2">551.6</font></td>
    <td WIDTH="99" align="right"><font SIZE="2">525.4</font></td>
    <td WIDTH="99" align="right"><font SIZE="2">497.5</font></td>
    <td WIDTH="99" align="right"><font SIZE="2">488.8</font></td>
    <td WIDTH="99" align="right"><font SIZE="2">457.3</font></td>
  </tr>
  <tr>
    <td WIDTH="453" bgcolor="#E6E6E6"><font SIZE="2">Total long-term financial liabilities<sup>1</sup></font></td>
    <td WIDTH="98" align="right" bgcolor="#E6E6E6"><font SIZE="2"><b>64.8</b></font></td>
    <td WIDTH="98" align="right" bgcolor="#E6E6E6"><font SIZE="2">65.4</font></td>
    <td WIDTH="98" align="right" bgcolor="#E6E6E6"><font SIZE="2">64.1</font></td>
    <td WIDTH="98" align="right" bgcolor="#E6E6E6"><font SIZE="2">58.1</font></td>
    <td WIDTH="99" align="right" bgcolor="#E6E6E6"><font SIZE="2">72.8</font></td>
    <td WIDTH="99" align="right" bgcolor="#E6E6E6"><font SIZE="2">73.2</font></td>
    <td WIDTH="99" align="right" bgcolor="#E6E6E6"><font SIZE="2">66.0</font></td>
    <td WIDTH="99" align="right" bgcolor="#E6E6E6"><font SIZE="2">60.9</font></td>
  </tr>
  <tr>
    <td WIDTH="453"><font SIZE="2">Average number of shares outstanding</font></td>
    <td WIDTH="98" align="right">&nbsp;</td>
    <td WIDTH="98" align="right">&nbsp;</td>
    <td WIDTH="98" align="right">&nbsp;</td>
    <td WIDTH="98" align="right">&nbsp;</td>
    <td WIDTH="99" align="right">&nbsp;</td>
    <td WIDTH="99" align="right">&nbsp;</td>
    <td WIDTH="99" align="right">&nbsp;</td>
    <td WIDTH="99" align="right">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="453" bgcolor="#E6E6E6"><font SIZE="2"><i>(in thousands)</i></font></td>
    <td WIDTH="98" align="right" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="98" align="right" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="98" align="right" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="98" align="right" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="99" align="right" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="99" align="right" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="99" align="right" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="99" align="right" bgcolor="#E6E6E6">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="453"><font SIZE="2">
    <p style="margin-left: 26">Basic</font></td>
    <td WIDTH="98" align="right"><font SIZE="2"><b>60,054</b></font></td>
    <td WIDTH="98" align="right"><font SIZE="2">59,970</font></td>
    <td WIDTH="98" align="right"><font SIZE="2">59,924</font></td>
    <td WIDTH="98" align="right"><font SIZE="2">59,816</font></td>
    <td WIDTH="99" align="right"><font SIZE="2">59,617</font></td>
    <td WIDTH="99" align="right"><font SIZE="2">59,407</font></td>
    <td WIDTH="99" align="right"><font SIZE="2">59,270</font></td>
    <td WIDTH="99" align="right"><font SIZE="2">59,256</font></td>
  </tr>
  <tr>
    <td WIDTH="453" style="border-bottom-style: solid; border-bottom-width: 1" bgcolor="#E6E6E6">
    <font SIZE="2">
    <p style="margin-left: 26">Diluted</font></td>
    <td WIDTH="98" align="right" style="border-bottom-style: solid; border-bottom-width: 1" bgcolor="#E6E6E6">
    <font SIZE="2"><b>60,647</b></font></td>
    <td WIDTH="98" align="right" style="border-bottom-style: solid; border-bottom-width: 1" bgcolor="#E6E6E6">
    <font SIZE="2">60,559</font></td>
    <td WIDTH="98" align="right" style="border-bottom-style: solid; border-bottom-width: 1" bgcolor="#E6E6E6">
    <font SIZE="2">60,414</font></td>
    <td WIDTH="98" align="right" style="border-bottom-style: solid; border-bottom-width: 1" bgcolor="#E6E6E6">
    <font SIZE="2">60,270</font></td>
    <td WIDTH="99" align="right" style="border-bottom-style: solid; border-bottom-width: 1" bgcolor="#E6E6E6">
    <font SIZE="2">60,086</font></td>
    <td WIDTH="99" align="right" style="border-bottom-style: solid; border-bottom-width: 1" bgcolor="#E6E6E6">
    <font SIZE="2">59,770</font></td>
    <td WIDTH="99" align="right" style="border-bottom-style: solid; border-bottom-width: 1" bgcolor="#E6E6E6">
    <font SIZE="2">59,651</font></td>
    <td WIDTH="99" align="right" style="border-bottom-style: solid; border-bottom-width: 1" bgcolor="#E6E6E6">
    <font SIZE="2">59,718</font></td>
  </tr>
  <tr>
    <td WIDTH="1241" COLSPAN="9"><font SIZE="2"><sup>1</sup>Represents sum of
    long-term debt, future income taxes and non-controlling interest</font></td>
  </tr>
</table>
<font FACE="Arial MT" SIZE="2">
<p ALIGN="JUSTIFY">The activewear business is seasonal and Gildan has
historically experienced quarterly fluctuations in operating results. Typically,
demand for our products is highest in the third quarter of each fiscal year,
when distributors purchase inventory for the peak summer selling season, and
lowest in the first quarter of each fiscal year. The seasonality of specific
product lines is consistent with that experienced by other companies in the
activewear industry and management anticipates and assumes that this trend will
continue in the future, although it is expected to be somewhat mitigated by the
Company's product diversification. </p>
<p ALIGN="JUSTIFY">We produce and store finished goods inventory in the first
half of the fiscal year in order to meet the expected demand for delivery in the
second half of the fiscal year. However, if after producing and storing
inventory in anticipation of third and fourth quarter deliveries, demand is
significantly less than expected, a risk inherent in our business is that we may
be required to hold inventory for an extended period of time at our expense, or
sell the excess inventory at reduced prices, thereby reducing profits. This risk
is mitigated by the low risk of obsolescence inherent in undecorated apparel.
</p>
<b>
<p>Sales </p>
</b>
<p ALIGN="JUSTIFY">Sales of $183.8 million for the three months ended April 2,
2006 grew 11.2% from $165.3 million for the three months ended April 3, 2005.
This increase was driven by a 13.9% increase in unit sales volumes, partially
offset by the impact of an approximate 1.5% reduction in net selling prices. </p>
<p ALIGN="JUSTIFY">For the six months ended April 2, 2006 sales were $304.1
million, up 10.9% compared to the same period last year, reflecting an increase
of 14.3% in unit sales volumes, partially offset by the impact of lower selling
prices in the second quarter of fiscal 2006 and a lower-valued product-mix in
the first quarter. </p>
<p ALIGN="JUSTIFY">Gildan uses U.S. market growth and share data for the U.S.
wholesale distributor channel based on the S.T.A.R.S. report produced by
ACNielsen Market Decisions. Although the value of the S.T.A.R.S. report in the
first calendar quarter of 2006 continued to be reduced by the non-participation
of our largest distributor, it is understood that, with effect from the second
calendar quarter, the distributor will participate in S.T.A.R.S., and that
historical data will be restated on a comparable basis. </p>
</font><hr color="#000000" size="5"><p Style='page-break-before:always'>
<table border="0" cellpadding="0" cellspacing="0" style="border-collapse: collapse" bordercolor="#111111" width="100%">
  <tr>
    <font SIZE="2"><b><font FACE="Arial MT" SIZE="2">
    <td width="50%"><img border="0" src="gildan1.jpg" width="159" height="49"></td>
    <td width="50%" bgcolor="#000000"><b><font SIZE="4" color="#FFFFFF">
    <p style="margin-left: 20"><font style="background-color: #000000">Quarterly
    Report to Shareholders <br>
    Second quarter ended April 2, 2006 </font></font></b></td>
    </font></b></font>
  </tr>
</table>
<font FACE="Arial MT" SIZE="2">
<p>With this caveat, the table below summarizes the S.T.A.R.S. data for the
calendar quarter ended March 31, 2006. </p>
</font>
<table CELLSPACING="0" BORDER="0" WIDTH="100%" cellpadding="0" style="border-collapse: collapse" bordercolor="#111111">
  <tr>
    <td WIDTH="475" style="border-top-style: solid; border-top-width: 1">&nbsp;</td>
    <td WIDTH="363" align="right" colspan="2" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2"><b>
    <p align="center">Q2 2006 vs Q2 2005</b></font></td>
    <td WIDTH="39" align="right" style="border-top-style: solid; border-top-width: 1">&nbsp;</td>
    <td WIDTH="182" align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2"><b>Q2 2006</b></font></td>
    <td WIDTH="182" align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2"><b>Q2 2005</b></font></td>
  </tr>
  <tr>
    <td WIDTH="475">&nbsp;</td>
    <td WIDTH="363" align="right" colspan="2" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2"><b>
    <p align="center">Unit Growth</b></font></td>
    <td WIDTH="39" align="right">&nbsp;</td>
    <td WIDTH="364" align="right" colspan="2" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2"><b>
    <p align="center">Market Share</b></font></td>
  </tr>
  <tr>
    <td WIDTH="475">&nbsp;</td>
    <td WIDTH="181" align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2"><b>Industry</b></font></td>
    <td WIDTH="182" align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2"><b>Gildan</b></font></td>
    <td WIDTH="39" align="right" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="182" align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2"><b>Gildan</b></font></td>
    <td WIDTH="182" align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2"><b>Gildan</b></font></td>
  </tr>
  <tr>
    <td WIDTH="475" bgcolor="#E6E6E6"><font SIZE="2">All Products</font></td>
    <td WIDTH="181" align="right" style="border-top-style: solid; border-top-width: 1" bgcolor="#E6E6E6">
    <font SIZE="2">5.9%</font></td>
    <td WIDTH="182" align="right" style="border-top-style: solid; border-top-width: 1" bgcolor="#E6E6E6">
    <font SIZE="2"><b>9.4%</b></font></td>
    <td WIDTH="39" align="right" style="border-top-style: solid; border-top-width: 1" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="182" align="right" style="border-top-style: solid; border-top-width: 1" bgcolor="#E6E6E6">
    <font SIZE="2"><b>38.7%</b></font></td>
    <td WIDTH="182" align="right" style="border-top-style: solid; border-top-width: 1" bgcolor="#E6E6E6">
    <font SIZE="2">35.4%</font></td>
  </tr>
  <tr>
    <td WIDTH="475"><font SIZE="2">T-shirts</font></td>
    <td WIDTH="181" align="right"><font SIZE="2">5.5%</font></td>
    <td WIDTH="182" align="right"><font SIZE="2"><b>8.7%</b></font></td>
    <td WIDTH="39" align="right">&nbsp;</td>
    <td WIDTH="182" align="right"><font SIZE="2"><b>39.6%</b></font></td>
    <td WIDTH="182" align="right"><font SIZE="2">36.3%</font></td>
  </tr>
  <tr>
    <td WIDTH="475" bgcolor="#E6E6E6"><font SIZE="2">Sport shirts</font></td>
    <td WIDTH="181" align="right" bgcolor="#E6E6E6"><font SIZE="2">5.1%</font></td>
    <td WIDTH="182" align="right" bgcolor="#E6E6E6"><font SIZE="2"><b>3.3%</b></font></td>
    <td WIDTH="39" align="right" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="182" align="right" bgcolor="#E6E6E6"><font SIZE="2"><b>32.5%</b></font></td>
    <td WIDTH="182" align="right" bgcolor="#E6E6E6"><font SIZE="2">33.1%</font></td>
  </tr>
  <tr>
    <td WIDTH="475" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2">Sweatshirts</font></td>
    <td WIDTH="181" align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2">11.7%</font></td>
    <td WIDTH="182" align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2"><b>28.6%</b></font></td>
    <td WIDTH="39" align="right" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="182" align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2"><b>30.5%</b></font></td>
    <td WIDTH="182" align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2">23.9%</font></td>
  </tr>
</table>
<font FACE="Arial MT" SIZE="2">
<p ALIGN="JUSTIFY">The higher unit sales were due to continuing market share
penetration and 5.9% growth in overall industry unit shipments in the quarter,
based on the S.T.A.R.S. report. Gildan exceeded industry growth in T-shirts in
the quarter and increased its leading share in this category from 36.3% to
39.6%. We also achieved significant unit volume growth in the sweatshirt
category, growing unit volumes by 28.6% and gaining 6.6 percentage points in
market share to reach 30.5% for the quarter. In the sport shirts category, our
unit volumes grew by 3.3% versus 5.1% for the market overall. We continued to be
the leading brand in the market with a share of 32.5% for the quarter, compared
to 33.1% for the same period last year as Gildan did not aggressively
participate in heavy promotional discounting in sport shirts in the quarter. </p>
<b>
<p>Gross Margins </p>
</b>
<p ALIGN="JUSTIFY">Gross margins increased to 33.4% in the second quarter of
fiscal 2006 from 30.1% for the same period of fiscal 2005. The gross margin
improvement in the second quarter of fiscal 2006 was driven primarily by lower
cotton costs and gains in manufacturing efficiencies. In addition, margins were
positively impacted by the reversal of a prior year reserve of $1.1 million for
litigation related to cotton purchase contracts in fiscal 2001, which has now
been resolved in Gildan's favour. These factors were offset in part by the
reduction in selling prices, increased energy and transportation costs, as well
as the impact of start-up costs for the Dominican Republic textile facility and
new sewing plants. </p>
<p ALIGN="JUSTIFY">For the first six months of fiscal 2006 we increased our
gross margins to 34.3% compared to 29.9% achieved in the same period last year.
This increase in gross margins was due to lower cotton costs and continued
manufacturing efficiencies. These positive factors more than offset lower
selling prices in the second quarter of this fiscal year, increased energy and
transportation costs, lower-valued product-mix, and the impact of start-up costs
for new manufacturing facilities. </p>
<b>
<p>Special Charge </p>
</b>
<p ALIGN="JUSTIFY">During the second quarter of fiscal 2005, the Company closed
its two Canadian yarn-spinning operations and recognized a charge of $11.9
million before tax, or $7.8 million after tax ($0.13 per share). The components
of the special charge are as follows: </p>
</font>
<table CELLSPACING="0" BORDER="0" WIDTH="100%" cellpadding="0" style="border-collapse: collapse" bordercolor="#111111">
  <tr>
    <td WIDTH="50%" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2"><i>(in $ millions)</i></font></td>
    <td WIDTH="50%" align="right" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="50%" style="border-top-style: solid; border-top-width: 1" bgcolor="#E6E6E6">
    <font SIZE="2">Writedown of fixed assets</font></td>
    <td WIDTH="50%" align="right" style="border-top-style: solid; border-top-width: 1" bgcolor="#E6E6E6">
    <font SIZE="2">7.9</font></td>
  </tr>
  <tr>
    <td WIDTH="50%"><font SIZE="2">Employee severance</font></td>
    <td WIDTH="50%" align="right"><font SIZE="2">3.7</font></td>
  </tr>
  <tr>
    <td WIDTH="50%" style="border-bottom-style: solid; border-bottom-width: 1" bgcolor="#E6E6E6">
    <font SIZE="2">Other</font></td>
    <td WIDTH="50%" align="right" style="border-bottom-style: solid; border-bottom-width: 1" bgcolor="#E6E6E6">
    <font SIZE="2">0.3</font></td>
  </tr>
  <tr>
    <td WIDTH="50%" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="50%" align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2">11.9</font></td>
  </tr>
</table>
<font FACE="Arial MT" SIZE="2">
<p ALIGN="JUSTIFY">A major portion of the Canadian yarn-spinning equipment was
transferred to a new facility in Clarkton, North Carolina, which is operated by
the Company's joint venture with Frontier Spinning Mills, Inc. The Company
reduced the carrying values of the remaining fixed assets considered to be held
for sale to their fair values. The severance accrual was included in &quot;Accounts
payable and accrued liabilities&quot; as at April 3, 2005 and was paid in the third
quarter of fiscal 2005. </p>
</font><hr color="#000000" size="5"><p Style='page-break-before:always'>
<table border="0" cellpadding="0" cellspacing="0" style="border-collapse: collapse" bordercolor="#111111" width="100%">
  <tr>
    <font SIZE="2"><b><font FACE="Arial MT" SIZE="2">
    <td width="50%"><img border="0" src="gildan1.jpg" width="159" height="49"></td>
    <td width="50%" bgcolor="#000000"><b><font SIZE="4" color="#FFFFFF">
    <p style="margin-left: 20"><font style="background-color: #000000">Quarterly
    Report to Shareholders <br>
    Second quarter ended April 2, 2006 </font></font></b></td>
    </font></b></font>
  </tr>
</table>
<font FACE="Arial MT" SIZE="2">
<p ALIGN="JUSTIFY">In the fourth quarter of fiscal 2005, the Company realized an
after-tax gain of $0.8 million or $0.01 per share from the sale of equipment,
thereby reducing the cumulative amount of the charge for the full fiscal year to
$10.7 million before tax, or $7.0 million after-tax ($0.12 per share). </p>
<b>
<p>Selling, General and Administrative Expenses </p>
</b>
<p ALIGN="JUSTIFY">Selling, General and Administrative (SG&amp;A) expenses for the
second quarter of fiscal 2006 were $20.7 million or 11.3% of sales, compared to
$18.3 million, or 11.1% of sales, for the second quarter of fiscal 2005. For the
six-month period ended April 2, 2006 SG&amp;A, expenses were $38.8 million, or 12.8%
of sales, compared to $34.6 million, or 12.6% of sales for the same period of
the prior year. The rise in SG&amp;A expenses compared to last year stemmed from
higher volume-driven distribution costs, the continuing development of the
organization to support our ongoing growth strategy, including additional
information technology costs to support the Company's retail initiative,
increased costs to comply with the requirements of the Sarbanes-Oxley Act of
2002, and the impact of the stronger Canadian dollar. In addition, year-to-date SG&amp;A expenses included a severance charge in the first quarter of the year.
These increases were partially offset by an adjustment to the reserve for
doubtful accounts in the second quarter of this fiscal year. </p>
<b>
<p>Depreciation and Interest Expense </p>
</b>
<p ALIGN="JUSTIFY">Depreciation expense increased from $6.5 million in the
second quarter of fiscal 2005 to $7.7 million in the second quarter of fiscal
2006. For the six-month period, depreciation expense was $15.1 million in fiscal
2006 compared to $12.4 million in fiscal 2005. These increases in depreciation
expense resulted from a higher capital asset base driven by continued capital
spending to support capacity expansion, in particular the new Dominican Republic
facility. </p>
<p ALIGN="JUSTIFY">Interest expense of $0.7 million in the second quarter and
$1.3 million in the first six months of fiscal 2006, reflected significant
decreases of $0.6 million and $1.2 million, respectively, compared to the same
periods in fiscal 2005. The lower interest expense resulted from increases in
investment income driven by higher average cash balances combined with higher
interest rate returns compared to the same periods last year, and the reduction
in overall debt following the second scheduled principal repayment made in June
of last year on the Company's U.S. Senior Notes. </p>
<b>
<p>Income Taxes </p>
</b>
<p ALIGN="JUSTIFY">The effective income tax rate for the three months and six
months ended April 2, 2006 was 3.5% and 3.8%, respectively. This compared to an
effective tax rate of 5.9% and 6.0% for the same respective periods of fiscal
2005, excluding the impact of the closure of our Canadian yarn-spinning
operations in March 2005, which yielded a tax recovery of $4.1 million. The
decline in the effective income tax rate was due to a higher proportion of our
total sales being derived from our international operations and sourced from our
offshore textile facilities. We anticipate that the effective tax rate will be
approximately 4% for fiscal 2006. </p>
<b>
<p>Net earnings </b></font><font FACE="Arial MT" SIZE="3"></p>
</font><font FACE="Arial MT" SIZE="2">
<p ALIGN="JUSTIFY">Net earnings were $31.0 million or $0.51 per share on a
diluted basis in the second quarter of fiscal 2006 compared to reported net
earnings of $14.3 million or $0.24 per share in the second quarter of fiscal
2005. Excluding the impact of a special charge in the second quarter of 2005 of
$7.8 million after tax or $0.13 per share, relating to the closure and
relocation of the Canadian yarn-spinning operations, net earnings and earnings
per share on a diluted basis in the second quarter this year grew 40.3% and
37.8% respectively, compared to adjusted net earnings of $22.1 million or $0.37
per share in the second quarter of fiscal 2005. </p>
<p>This increase in net earnings was driven by continued strong growth in unit
sales volumes and higher gross margins, which more than offset increases in SG&amp;A
and depreciation expenses. </p>
<p>Net earnings for the first six months of fiscal 2006 were $47.2 million or
$0.78 per diluted share, up respectively 54.8% and 52.9% from adjusted net
earnings of $30.5 million or $0.51 per share in fiscal 2005 before the prior
year special charge for the closure of the Canadian yarn-spinning facilities.
Net earnings and diluted earnings per share (EPS) for the first half of fiscal
2006 grew 107.9% and 105.3% respectively compared with $22.7 million or $0.38
per diluted share for the same periods of the prior fiscal year, after taking
account of the special charge in fiscal 2005. </p>
<b><hr color="#000000" size="5"><p Style='page-break-before:always'>
<table border="0" cellpadding="0" cellspacing="0" style="border-collapse: collapse" bordercolor="#111111" width="100%">
  <tr>
    <td width="50%"><img border="0" src="gildan1.jpg" width="159" height="49"></td>
    <td width="50%" bgcolor="#000000"><b><font SIZE="4" color="#FFFFFF">
    <p style="margin-left: 20"><font style="background-color: #000000">Quarterly
    Report to Shareholders <br>
    Second quarter ended April 2, 2006 </font></font></b></td>
  </tr>
</table>
<p>Balance Sheet </p>
</b>
<p ALIGN="JUSTIFY">Accounts receivable decreased to $103.4 million in the second
quarter of fiscal 2006 from $108.6 million at October 2, 2005 and increased by
$14.2 million compared to the second quarter of the prior year. The decrease in
receivables compared with October 2, 2005 was due to a reduction in days sales
outstanding on trade accounts receivable partially offset by higher sales. The
increase in accounts receivable from the second quarter of fiscal 2005 was due
to the 11.2% increase in sales over the prior year. </p>
<p ALIGN="JUSTIFY">Inventories of $186.6 million were up $51.7 million from
October 2, 2005 and by $45.5 million from the second quarter of fiscal 2005. The
Company traditionally builds up inventory levels in the first half of the fiscal
year to meet peak sales demand. </p>
<p ALIGN="JUSTIFY">We invested $23.8 million and $36.2 million in fixed assets
in the second quarter and first six months of fiscal 2006 respectively,
primarily for the textile facilities in the Dominican Republic and Honduras.
Capital investment was $21.0 million and $43.1 million in the corresponding
periods in fiscal 2005. </p>
<b>
<p>Liquidity and Capital Resources </p>
</b>
<p ALIGN="JUSTIFY">In recent years, we have funded our capital expenditure
requirements with cash generated from operations. Our primary use of funds on an
ongoing basis is related to capital expenditures for new manufacturing
facilities, inventory and accounts receivable financing and scheduled payments
of principal and interest on the Company's Senior Notes. </p>
<p ALIGN="JUSTIFY">As a result of the seasonal nature of the apparel business,
working capital requirements are variable throughout the year. Our need for
working capital typically grows during the first two quarters of the fiscal year
as inventories are built up for the peak selling period in the third quarter.
</p>
<p ALIGN="JUSTIFY">For the quarter ended April 2, 2006, cash outflows from
operating activities, including changes in non-cash working capital balances,
amounted to $18.0 million compared with cash outflows of $3.8 million during the
same period last year. The increase in cash outflow resulted from higher trade
receivable balances due to sales growth, and was also attributable to a higher
seasonal build-up of inventory in the first half of 2006, which more than offset
the higher earnings and improvement in days sales outstanding. </p>
<p ALIGN="JUSTIFY">We ended the second quarter of fiscal 2006 with cash and cash
equivalents of $48.1 million compared to $30.0 million at the end of the second
quarter of fiscal 2005 and $69.8 million at October 2, 2005. At the end of both
fiscal quarters, no amounts were drawn under the Company's revolving bank
facility. Bank indebtedness included in the interim consolidated financial
statements is attributable to our joint venture. Total indebtedness<sup>1</sup>
at April 2, 2006, which comprises both long-term and short-term debt, amounted
to $50.6 million compared to $51.1 million at October 2, 2005 and $60.3 million
at April 3, 2005. The decline in total indebtedness from April 3, 2005 primarily
reflects the second scheduled principal repayment of $17.5 million on Gildan's
Senior Notes, which was made on June 10, 2005, offset in part by an increase in
the long-term debt of Gildan's joint venture. </p>
<p ALIGN="JUSTIFY">We continue to anticipate capital expenditures of
approximately $90 million for the full fiscal year. In addition, we are
progressing with our evaluation of a potential acquisition opportunity in the
sock industry. We believe our cash flow from operating activities together with
our unused credit facilities will provide us with sufficient liquidity and
capital resources in fiscal 2006 to fund our working capital requirements,
capital expenditures, the potential acquisition of a sock company and the next
scheduled principal repayment of our Senior Notes in June 2006. </p>
<sup>
<p>___________________________________<br>
1</sup> See non-GAAP financial measures on page 11. </p>
<b><hr color="#000000" size="5"><p Style='page-break-before:always'>
<table border="0" cellpadding="0" cellspacing="0" style="border-collapse: collapse" bordercolor="#111111" width="100%">
  <tr>
    <td width="50%"><img border="0" src="gildan1.jpg" width="159" height="49"></td>
    <td width="50%" bgcolor="#000000"><b><font SIZE="4" color="#FFFFFF">
    <p style="margin-left: 20"><font style="background-color: #000000">Quarterly
    Report to Shareholders <br>
    Second quarter ended April 2, 2006 </font></font></b></td>
  </tr>
</table>
</b>
<p ALIGN="JUSTIFY">Total assets were $643.8 million at April 2, 2006, compared
to $597.5 million at October 2, 2005 and $525.4 million at April 3, 2005.
Working capital was $243.3 million at the end of the second quarter of fiscal
2006 compared to $214.9 million at October 2, 2005, and $178.5 million at April
3, 2005. </p>
<p ALIGN="JUSTIFY">In order to maximize flexibility to finance our ongoing
growth and expansion, Gildan does not currently pay a dividend. Periodically,
the merits of introducing a dividend are re-evaluated by Gildan's Board of
Directors. </p>
<p ALIGN="JUSTIFY">We obtained approval from the Toronto Stock Exchange to renew
our normal course issuer bid in order to repurchase up to a maximum of 1,000,000
of our common shares in the open market commencing December 22, 2005 and ending
December 21, 2006. This represents less than 2.0% of the total common shares
issued and outstanding. As at April 30, 2006, no shares have been repurchased
under this plan. </p>
<b>
<p>Off-Balance Sheet Arrangements</b> </font><font FACE="Times New Roman PSMT">
</p>
</font><font FACE="Arial MT" SIZE="2">
<p><u>Operating Leases </u></p>
<p ALIGN="JUSTIFY">Gildan has no commitments that are not reflected in our
balance sheets except for operating leases and other purchase obligations, which
are included in the table of contractual obligations on page 17 of this interim
MD&amp;A. As disclosed in Note 6 to our Interim Consolidated Financial Statements,
the Company has issued standby letters of credit and corporate guarantees
primarily from various servicing agreements amounting to $33.1 million at April
2, 2006. </p>
<p><u>Derivative Financial Instruments </u></p>
<p ALIGN="JUSTIFY">From time to time, we use forward foreign exchange contracts,
primarily in Canadian dollars, British pounds and Euros, mainly to hedge cash
flows related to sales and operating expenses denominated in foreign currencies
(non-U.S. dollar). A forward foreign exchange contract represents an obligation
to exchange a foreign currency with a counterparty at a predetermined rate.
Credit risk exists in the event of failure by a counterparty to meet its
obligations. The Company reduces this risk by dealing only with highly-rated
counterparties, normally major European and North American financial
institutions. Gildan's exposure to foreign currency fluctuations is described in
more detail in the &quot;Risks&quot; section of the 2005 MD&amp;A, which is hereby
incorporated by reference. </p>
<p ALIGN="JUSTIFY">We do not use derivative financial instruments for
speculative purposes. Forward foreign exchange contracts are entered into with
maturities not exceeding twenty-four months. The following table summarizes
Gildan's commitments to buy and sell foreign currencies as at April 2, 2006 and
April 3, 2005: </p>
</font>
<table CELLSPACING="0" BORDER="0" WIDTH="100%" cellpadding="0" style="border-collapse: collapse" bordercolor="#111111">
  <tr>
    <td WIDTH="392" style="border-top-style: solid; border-top-width: 1">&nbsp;</td>
    <td WIDTH="85" align="right" style="border-top-style: solid; border-top-width: 1">&nbsp;</td>
    <td WIDTH="135" align="right" style="border-top-style: solid; border-top-width: 1">
    <font SIZE="2">Notional</font></td>
    <td WIDTH="179" align="right" style="border-top-style: solid; border-top-width: 1">&nbsp;</td>
    <td WIDTH="315" align="right" style="border-top-style: solid; border-top-width: 1">&nbsp;</td>
    <td WIDTH="135" align="right" style="border-top-style: solid; border-top-width: 1">
    <font SIZE="2">Notional U.S.</font></td>
  </tr>
  <tr>
    <td WIDTH="392" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2"><i>(in thousands)</i></font></td>
    <td WIDTH="85" align="right" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="135" align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2">amount</font></td>
    <td WIDTH="179" align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2">Exchange rate</font></td>
    <td WIDTH="315" align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2">Maturity</font></td>
    <td WIDTH="135" align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2">equivalent</font></td>
  </tr>
  <tr>
    <td WIDTH="392" style="border-top-style: solid; border-top-width: 1">
    <font SIZE="2"><b>2006</b></font></td>
    <td WIDTH="85" align="right" style="border-top-style: solid; border-top-width: 1">&nbsp;</td>
    <td WIDTH="135" align="right" style="border-top-style: solid; border-top-width: 1">&nbsp;</td>
    <td WIDTH="179" align="right" style="border-top-style: solid; border-top-width: 1">&nbsp;</td>
    <td WIDTH="315" align="right" style="border-top-style: solid; border-top-width: 1">&nbsp;</td>
    <td WIDTH="135" align="right" style="border-top-style: solid; border-top-width: 1">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="392"><font SIZE="2"><b>Buy contracts:</b></font></td>
    <td WIDTH="85" align="right">&nbsp;</td>
    <td WIDTH="135" align="right">&nbsp;</td>
    <td WIDTH="179" align="right">&nbsp;</td>
    <td WIDTH="315" align="right">&nbsp;</td>
    <td WIDTH="135" align="right">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="392" bgcolor="#E6E6E6"><font SIZE="2"><b>
    <p style="margin-left: 26">Foreign exchange contracts</b></font></td>
    <td WIDTH="85" align="right" bgcolor="#E6E6E6"><font SIZE="2"><b>CA$</b></font></td>
    <td WIDTH="135" align="right" bgcolor="#E6E6E6"><font SIZE="2"><b>40,967</b></font></td>
    <td WIDTH="179" align="right" bgcolor="#E6E6E6"><font SIZE="2"><b>0.7997 to 0.8642</b></font></td>
    <td WIDTH="315" align="right" bgcolor="#E6E6E6"><font SIZE="2"><b>April 2006 to September 2006</b></font></td>
    <td WIDTH="135" align="right" bgcolor="#E6E6E6"><font SIZE="2"><b>$34,596</b></font></td>
  </tr>
  <tr>
    <td WIDTH="392">&nbsp;</td>
    <td WIDTH="85" align="right"><font SIZE="2"><b>&#128;</b></font></td>
    <td WIDTH="135" align="right"><font SIZE="2"><b>11,147</b></font></td>
    <td WIDTH="179" align="right"><font SIZE="2"><b>1.1991 to 1.2208</b></font></td>
    <td WIDTH="315" align="right"><font SIZE="2"><b>July 2006 to June 2007</b></font></td>
    <td WIDTH="135" align="right"><font SIZE="2"><b>$13,480</b></font></td>
  </tr>
  <tr>
    <td WIDTH="392" bgcolor="#E6E6E6"><font SIZE="2"><b>Sell contracts:</b></font></td>
    <td WIDTH="85" align="right" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="135" align="right" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="179" align="right" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="315" align="right" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="135" align="right" bgcolor="#E6E6E6">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="392"><font SIZE="2"><b>
    <p style="margin-left: 26">Foreign exchange contracts</b></font></td>
    <td WIDTH="85" align="right">&nbsp;</td>
    <td WIDTH="135" align="right">&nbsp;</td>
    <td WIDTH="179" align="right">&nbsp;</td>
    <td WIDTH="315" align="right">&nbsp;</td>
    <td WIDTH="135" align="right">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="392" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="85" align="right" bgcolor="#E6E6E6"><font SIZE="2"><b>&#128;</b></font></td>
    <td WIDTH="135" align="right" bgcolor="#E6E6E6"><font SIZE="2"><b>5,600</b></font></td>
    <td WIDTH="179" align="right" bgcolor="#E6E6E6"><font SIZE="2"><b>1.2097 to 1.3525</b></font></td>
    <td WIDTH="315" align="right" bgcolor="#E6E6E6"><font SIZE="2"><b>April 2006 to September 2006</b></font></td>
    <td WIDTH="135" align="right" bgcolor="#E6E6E6"><font SIZE="2"><b>$7,355</b></font></td>
  </tr>
  <tr>
    <td WIDTH="392">&nbsp;</td>
    <td WIDTH="85" align="right"><b><font face="Times New Roman">&#8356;</font></b></td>
    <td WIDTH="135" align="right"><font SIZE="2"><b>2,850</b></font></td>
    <td WIDTH="179" align="right"><font SIZE="2"><b>1.7379 to 1.8783</b></font></td>
    <td WIDTH="315" align="right"><font SIZE="2"><b>April 2006 to September 2006</b></font></td>
    <td WIDTH="135" align="right"><font SIZE="2"><b>$5,306</b></font></td>
  </tr>
  <tr>
    <td WIDTH="392"><font SIZE="2">2005</font></td>
    <td WIDTH="85" align="right">&nbsp;</td>
    <td WIDTH="135" align="right">&nbsp;</td>
    <td WIDTH="179" align="right">&nbsp;</td>
    <td WIDTH="315" align="right">&nbsp;</td>
    <td WIDTH="135" align="right">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="392"><font SIZE="2">Buy contracts:</font></td>
    <td WIDTH="85" align="right">&nbsp;</td>
    <td WIDTH="135" align="right">&nbsp;</td>
    <td WIDTH="179" align="right">&nbsp;</td>
    <td WIDTH="315" align="right">&nbsp;</td>
    <td WIDTH="135" align="right">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="392" bgcolor="#E6E6E6"><font SIZE="2">
    <p style="margin-left: 26">Foreign exchange contracts</font></td>
    <td WIDTH="85" align="right" bgcolor="#E6E6E6"><font SIZE="2">CA$</font></td>
    <td WIDTH="135" align="right" bgcolor="#E6E6E6"><font SIZE="2">39,090</font></td>
    <td WIDTH="179" align="right" bgcolor="#E6E6E6"><font SIZE="2">0.7251 to 0.8081</font></td>
    <td WIDTH="315" align="right" bgcolor="#E6E6E6"><font SIZE="2">April 2005 to November 2005</font></td>
    <td WIDTH="135" align="right" bgcolor="#E6E6E6"><font SIZE="2">$30,612</font></td>
  </tr>
  <tr>
    <td WIDTH="392"><font SIZE="2">Sell contracts:</font></td>
    <td WIDTH="85" align="right">&nbsp;</td>
    <td WIDTH="135" align="right">&nbsp;</td>
    <td WIDTH="179" align="right">&nbsp;</td>
    <td WIDTH="315" align="right">&nbsp;</td>
    <td WIDTH="135" align="right">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="392" bgcolor="#E6E6E6"><font SIZE="2">
    <p style="margin-left: 26">Foreign exchange contracts</font></td>
    <td WIDTH="85" align="right" bgcolor="#E6E6E6"><font SIZE="2">&#128;</font></td>
    <td WIDTH="135" align="right" bgcolor="#E6E6E6"><font SIZE="2">21,191</font></td>
    <td WIDTH="179" align="right" bgcolor="#E6E6E6"><font SIZE="2">1.3321 to 1.3721</font></td>
    <td WIDTH="315" align="right" bgcolor="#E6E6E6"><font SIZE="2">April 2005 to September 2006</font></td>
    <td WIDTH="135" align="right" bgcolor="#E6E6E6"><font SIZE="2">$28,696</font></td>
  </tr>
  <tr>
    <td WIDTH="392" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="85" align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <font face="Times New Roman">&#8356;</font></td>
    <td WIDTH="135" align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2">7,455</font></td>
    <td WIDTH="179" align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2">1.8707 to 1.9094</font></td>
    <td WIDTH="315" align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2">April 2005 to September 2006</font></td>
    <td WIDTH="135" align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2">$14,078</font></td>
  </tr>
</table>
<font FACE="Arial MT" SIZE="2"><b><hr color="#000000" size="5"><p Style='page-break-before:always'>
<table border="0" cellpadding="0" cellspacing="0" style="border-collapse: collapse" bordercolor="#111111" width="100%">
  <tr>
    <td width="50%"><img border="0" src="gildan1.jpg" width="159" height="49"></td>
    <td width="50%" bgcolor="#000000"><b><font SIZE="4" color="#FFFFFF">
    <p style="margin-left: 20"><font style="background-color: #000000">Quarterly
    Report to Shareholders <br>
    Second quarter ended April 2, 2006 </font></font></b></td>
  </tr>
</table>
</b></font><font SIZE="2"><b>
<p>Contractual Obligations </p>
</b>
<p ALIGN="JUSTIFY">In the normal course of business, the Company enters into
contractual obligations that will require it to disburse cash over future
periods. The following table sets forth the Company's contractual obligations
for the following items as at April 2, 2006: </p>
</font>
<table CELLSPACING="0" BORDER="0" WIDTH="100%" cellpadding="0" style="border-collapse: collapse" bordercolor="#111111">
  <tr>
    <td WIDTH="518" style="border-top-style: solid; border-top-width: 1">&nbsp;</td>
    <td WIDTH="723" colspan="5" align="center" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2"><b>Payments Due by Period</b></font></td>
  </tr>
  <tr>
    <td WIDTH="518"><font SIZE="2"><i>(in $ millions)</i></font></td>
    <td WIDTH="144" align="right" style="border-top-style: solid; border-top-width: 1">&nbsp;</td>
    <td WIDTH="144" align="right" style="border-top-style: solid; border-top-width: 1">
    <font SIZE="2"><b>Less than</b></font></td>
    <td WIDTH="145" align="right" style="border-top-style: solid; border-top-width: 1">
    <font SIZE="2"><b>1 to 3</b></font></td>
    <td WIDTH="145" align="right" style="border-top-style: solid; border-top-width: 1">
    <font SIZE="2"><b>4 to 5</b></font></td>
    <td WIDTH="145" align="right" style="border-top-style: solid; border-top-width: 1">
    <font SIZE="2"><b>After</b></font></td>
  </tr>
  <tr>
    <td WIDTH="518">&nbsp;</td>
    <td WIDTH="144" align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2"><b>Total</b></font></td>
    <td WIDTH="144" align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2"><b>1 year</b></font></td>
    <td WIDTH="145" align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2"><b>years</b></font></td>
    <td WIDTH="145" align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2"><b>years</b></font></td>
    <td WIDTH="145" align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2"><b>5 years</b></font></td>
  </tr>
  <tr>
    <td WIDTH="518" bgcolor="#E6E6E6"><font SIZE="2">Long Term Debt</font></td>
    <td WIDTH="144" align="right" style="border-top-style: solid; border-top-width: 1" bgcolor="#E6E6E6">
    <font SIZE="2">46.6</font></td>
    <td WIDTH="144" align="right" style="border-top-style: solid; border-top-width: 1" bgcolor="#E6E6E6">
    <font SIZE="2">19.1</font></td>
    <td WIDTH="145" align="right" style="border-top-style: solid; border-top-width: 1" bgcolor="#E6E6E6">
    <font SIZE="2">21.9</font></td>
    <td WIDTH="145" align="right" style="border-top-style: solid; border-top-width: 1" bgcolor="#E6E6E6">
    <font SIZE="2">3.6</font></td>
    <td WIDTH="145" align="right" style="border-top-style: solid; border-top-width: 1" bgcolor="#E6E6E6">
    <font SIZE="2">2.0</font></td>
  </tr>
  <tr>
    <td WIDTH="518"><font SIZE="2">Fixed Interest Payments</font></td>
    <td WIDTH="144" align="right"><font SIZE="2">2.6</font></td>
    <td WIDTH="144" align="right"><font SIZE="2">1.3</font></td>
    <td WIDTH="145" align="right"><font SIZE="2">1.3</font></td>
    <td WIDTH="145" align="right"><font SIZE="2">-</font></td>
    <td WIDTH="145" align="right"><font SIZE="2">-</font></td>
  </tr>
  <tr>
    <td WIDTH="518" bgcolor="#E6E6E6"><font SIZE="2">Operating Leases</font></td>
    <td WIDTH="144" align="right" bgcolor="#E6E6E6"><font SIZE="2">29.7</font></td>
    <td WIDTH="144" align="right" bgcolor="#E6E6E6"><font SIZE="2">5.7</font></td>
    <td WIDTH="145" align="right" bgcolor="#E6E6E6"><font SIZE="2">7.9</font></td>
    <td WIDTH="145" align="right" bgcolor="#E6E6E6"><font SIZE="2">5.2</font></td>
    <td WIDTH="145" align="right" bgcolor="#E6E6E6"><font SIZE="2">10.9</font></td>
  </tr>
  <tr>
    <td WIDTH="518"><font SIZE="2">Purchase Obligations</font></td>
    <td WIDTH="144" align="right"><font SIZE="2">97.9</font></td>
    <td WIDTH="144" align="right"><font SIZE="2">97.3</font></td>
    <td WIDTH="145" align="right"><font SIZE="2">0.6</font></td>
    <td WIDTH="145" align="right"><font SIZE="2">-</font></td>
    <td WIDTH="145" align="right"><font SIZE="2">-</font></td>
  </tr>
  <tr>
    <td WIDTH="518" style="border-bottom-style: solid; border-bottom-width: 1" bgcolor="#E6E6E6">
    <font SIZE="2">Other Long Term Obligations</font></td>
    <td WIDTH="144" align="right" style="border-bottom-style: solid; border-bottom-width: 1" bgcolor="#E6E6E6">
    <font SIZE="2">60.7</font></td>
    <td WIDTH="144" align="right" style="border-bottom-style: solid; border-bottom-width: 1" bgcolor="#E6E6E6">
    <font SIZE="2">51.1</font></td>
    <td WIDTH="145" align="right" style="border-bottom-style: solid; border-bottom-width: 1" bgcolor="#E6E6E6">
    <font SIZE="2">9.6</font></td>
    <td WIDTH="145" align="right" style="border-bottom-style: solid; border-bottom-width: 1" bgcolor="#E6E6E6">
    <font SIZE="2">-</font></td>
    <td WIDTH="145" align="right" style="border-bottom-style: solid; border-bottom-width: 1" bgcolor="#E6E6E6">
    <font SIZE="2">-</font></td>
  </tr>
  <tr>
    <td WIDTH="518" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2"><b>Total Contractual Obligations</b></font></td>
    <td WIDTH="144" align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2">237.5</font></td>
    <td WIDTH="144" align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2">174.5</font></td>
    <td WIDTH="145" align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2">41.3</font></td>
    <td WIDTH="145" align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2">8.8</font></td>
    <td WIDTH="145" align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2">12.9</font></td>
  </tr>
</table>
<font FACE="Arial MT" SIZE="2">
<p ALIGN="JUSTIFY">Management expects that cash flow from the Company's
operating earnings, together with its year-end cash balances and unutilized bank
facilities, will be sufficient to meet foreseeable cash needs for fiscal 2006.
</p>
<b>
<p>Outlook </p>
</b>
<p ALIGN="JUSTIFY">Due to the more favourable than anticipated results for the
second quarter, we have increased our EPS guidance for the full 2006 fiscal year
to approximately $1.96 per share, compared with our most recent guidance of
approximately $1.90 per share. The revised full year guidance reflects a
projected increase of approximately 26% in EPS compared with $1.55 per share in
fiscal 2005, before reflecting the prior year special charge. Sales revenues for
the full 2006 fiscal year are projected at approximately $740 million,
representing an increase of approximately 13% over fiscal 2005.<b> </p>
</b>
<p ALIGN="JUSTIFY">Gildan projects diluted EPS for the third quarter of fiscal
2006 of approximately $0.63 per share, up approximately 10% from the third
quarter of last year, and diluted EPS of approximately $0.56 per share in the
fourth quarter, up approximately 19% from the fourth quarter of fiscal 2005. </p>
<p ALIGN="JUSTIFY">Our sales and diluted EPS guidance for the second half of the
year reflects the assumption of a further 1.5% reduction in selling prices,
compared with the second quarter, and an approximate 2% reduction in selling
prices compared to the second half of fiscal 2005. Unit sales volumes are
projected to increase by approximately 15% compared to the second half of fiscal
2005. However, the impact of lower than previously projected selling prices and
unit sales volumes in the second half of the fiscal year is expected to be fully
offset by more favourable product-mix, due to a higher proportion of sweatshirts
and colour T-shirts, combined with greater than previously assumed manufacturing
efficiencies. </p>
<p ALIGN="JUSTIFY">We continue to project capital expenditures of approximately
$90 million in fiscal 2006, which we expect to fully finance out of our
internally-generated cash flow from operating activities. In addition to
completing the ramp-up and further expansion of Gildan's new textile facility in
the Dominican Republic, we are constructing two new facilities at our Rio Nance
site in Honduras, one for the manufacture of activewear and one for the
production of athletic socks. </p>
<p>We hereby refer to the Forward-Looking Statements cautionary notice on page
21. </p>
<b><hr color="#000000" size="5"><p Style='page-break-before:always'>
<table border="0" cellpadding="0" cellspacing="0" style="border-collapse: collapse" bordercolor="#111111" width="100%">
  <tr>
    <td width="50%"><img border="0" src="gildan1.jpg" width="159" height="49"></td>
    <td width="50%" bgcolor="#000000"><b><font SIZE="4" color="#FFFFFF">
    <p style="margin-left: 20"><font style="background-color: #000000">Quarterly
    Report to Shareholders <br>
    Second quarter ended April 2, 2006 </font></font></b></td>
  </tr>
</table>
</b></font><font SIZE="2"><b>
<p>CRITICAL ACCOUNTING ESTIMATES </p>
</b>
<p ALIGN="JUSTIFY">The Company's significant accounting policies are described
in Note 2 to the Company's 2005 Consolidated Financial Statements. The
preparation of financial statements in conformity with Canadian GAAP requires
estimates and assumptions that affect the Company's results of operations and
financial position. By their nature, these judgments are subject to an inherent
degree of uncertainty and are based upon historical experience, trends in the
industry and information available from outside sources. On an ongoing basis,
management reviews its estimates and actual results could differ from those
estimates. </p>
<p>Management believes that the accounting estimates relating to the following
items are most significant to assist in understanding and evaluating the
Company's financial results:</p>
<ul>
  <li>Sales promotional programs;</li>
  <li>Trade accounts receivable;</li>
  <li>Fixed assets;</li>
  <li>Cotton and yarn procurements; and</li>
  <li>Future income taxes.</li>
</ul>
<p>For a more detailed discussion of these estimates, readers should review the
&quot;Critical Accounting Estimates&quot; section of the 2005 MD&amp;A, which is hereby
incorporated by reference.</font><b><font SIZE="2"> </p>
<p>RISKS </p>
</font></b><font SIZE="2">
<p>In order to be successful, we must continuously be aware of global changes
and risks affecting our markets and competitive environment. The most
significant risks we face are as follows:</p>
<ul>
  <li>Our industry is competitive;</li>
  <li>Our industry is subject to pricing pressures;</li>
  <li>Our operations are subject to environmental regulation;</li>
  <li>We are exposed to concentration of credit risk;</li>
  <li>We rely on a relatively small number of significant customers;</li>
  <li>We are subject to international trade legislation that is becoming
  increasingly liberalized;</li>
  <li>We currently pay income tax at a comparatively low effective rate, which
  could change in the future;</li>
  <li>The price of the raw materials we buy may be subject to significant
  fluctuations and volatility;</li>
  <li>Our operations are subject to political, social and economic risks;</li>
  <li>Our industry is subject to fluctuation in sales demand; and</li>
  <li>We are subject to foreign exchange fluctuation risk.</li>
</ul>
<p ALIGN="JUSTIFY">For a more detailed discussion of these potential business
risks, readers should review the &quot;Risks&quot; section of the 2005 MD&amp;A and the Annual
Information Form filed by Gildan with the Canadian securities regulatory
authorities and the Annual Report on Form 40-F filed with the U.S. Securities
and Exchange Commission, which are hereby incorporated by reference. </p>
<p ALIGN="JUSTIFY">As part of our growth strategy, Gildan has announced plans to
sell its products into the mass-market retail channel, in addition to the
screenprint market. While we believe we can leverage our successful business
model into the mass-market retail channel, there can be no assurance that the
Company will successfully execute these plans. </p>
</font><font FACE="Arial MT" SIZE="2"><b><hr color="#000000" size="5"><p Style='page-break-before:always'>
<table border="0" cellpadding="0" cellspacing="0" style="border-collapse: collapse" bordercolor="#111111" width="100%">
  <tr>
    <td width="50%"><img border="0" src="gildan1.jpg" width="159" height="49"></td>
    <td width="50%" bgcolor="#000000"><b><font SIZE="4" color="#FFFFFF">
    <p style="margin-left: 20"><font style="background-color: #000000">Quarterly
    Report to Shareholders <br>
    Second quarter ended April 2, 2006 </font></font></b></td>
  </tr>
</table>
</b></font><font SIZE="2"><b>
<p align="justify">DISCLOSURE OF OUTSTANDING SHARE DATA </p>
</b>
<p align="justify">Gildan's common shares are listed on the New York Stock
Exchange and the Toronto Stock Exchange (GIL). </p>
<p ALIGN="JUSTIFY">As of April 30, 2006 there were 60,073,556 common shares
issued and outstanding along with 453,447 stock options and 343,500 dilutive
restricted share units outstanding. Each stock option and restricted share unit
entitles the holder to either purchase or receive one common share from treasury
at the end of the vesting period. </p>
<b>
<p align="justify">RECONCILIATION OF NON-GAAP FINANCIAL MEASURES </p>
</b>
<p ALIGN="JUSTIFY">We use and present such Non-GAAP Financial Measures because
we believe such measures provide meaningful information on our performance and
operating results. However, investors should be advised that such Non-GAAP
Financial Measures have no standardized meaning as prescribed by GAAP and may
not be comparable to similar measures presented by other companies. Accordingly
they should not be considered in isolation. </p>
<p ALIGN="JUSTIFY">The following measures included in this interim MD&amp;A do not
have standardized meanings under Canadian GAAP and, therefore, are unlikely to
be comparable to similar measures presented by other companies: </p>
<p align="justify" style="text-indent: -26; margin-left: 52">1.&nbsp;&nbsp;&nbsp;&nbsp;
Total indebtedness; </p>
<p align="justify" style="text-indent: -26; margin-left: 52">2.&nbsp;&nbsp;&nbsp;&nbsp;
Cash in excess of debt (net debt); </p>
<p align="justify" style="text-indent: -26; margin-left: 52">3.&nbsp;&nbsp;&nbsp;&nbsp;
Free cash flow; and </p>
<p align="justify" style="text-indent: -26; margin-left: 52">4.&nbsp;&nbsp;&nbsp;&nbsp;
All references made to adjusted gross margin and adjusted net earnings and
adjusted diluted earnings per share. </p>
<p align="justify">The following tables reconcile the Non-GAAP Financial
Measures mentioned in this Interim MD&amp;A to the most directly comparable GAAP
measures: </p>
<b>
<p align="justify">Total indebtedness/ Cash in excess of debt (net debt)</p>
</b></font>
<table CELLSPACING="0" BORDER="0" WIDTH="100%" cellpadding="0" style="border-collapse: collapse" bordercolor="#111111">
  <tr>
    <td WIDTH="626" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2"><i>(in $ millions)</i></font></td>
    <td WIDTH="153" align="right" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="154" align="right" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="154" align="right" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="154" align="right" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="626" style="border-top-style: solid; border-top-width: 1">&nbsp;</td>
    <td WIDTH="153" align="right" style="border-top-style: solid; border-top-width: 1">&nbsp;</td>
    <td WIDTH="154" align="right" style="border-top-style: solid; border-top-width: 1">
    <font SIZE="2"><b>Q2 2006</b></font></td>
    <td WIDTH="154" align="right" style="border-top-style: solid; border-top-width: 1">
    <font SIZE="2">Q4 2005</font></td>
    <td WIDTH="154" align="right" style="border-top-style: solid; border-top-width: 1">
    <font SIZE="2">Q2 2005</font></td>
  </tr>
  <tr>
    <td WIDTH="626" bgcolor="#E6E6E6"><font SIZE="2">Bank indebtedness</font></td>
    <td WIDTH="153" align="right" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="154" align="right" bgcolor="#E6E6E6"><font SIZE="2"><b>(4.0)</b></font></td>
    <td WIDTH="154" align="right" bgcolor="#E6E6E6"><font SIZE="2">(4.0)</font></td>
    <td WIDTH="154" align="right" bgcolor="#E6E6E6"><font SIZE="2">-</font></td>
  </tr>
  <tr>
    <td WIDTH="626"><font SIZE="2">Current portion of long-term debt</font></td>
    <td WIDTH="153" align="right">&nbsp;</td>
    <td WIDTH="154" align="right"><font SIZE="2"><b>(19.7)</b></font></td>
    <td WIDTH="154" align="right"><font SIZE="2">(19.9)</font></td>
    <td WIDTH="154" align="right"><font SIZE="2">(19.7)</font></td>
  </tr>
  <tr>
    <td WIDTH="626" style="border-bottom-style: solid; border-bottom-width: 1" bgcolor="#E6E6E6">
    <font SIZE="2">Long-term debt</font></td>
    <td WIDTH="153" align="right" style="border-bottom-style: solid; border-bottom-width: 1" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="154" align="right" style="border-bottom-style: solid; border-bottom-width: 1" bgcolor="#E6E6E6">
    <font SIZE="2"><b>(26.9)</b></font></td>
    <td WIDTH="154" align="right" style="border-bottom-style: solid; border-bottom-width: 1" bgcolor="#E6E6E6">
    <font SIZE="2">(27.2)</font></td>
    <td WIDTH="154" align="right" style="border-bottom-style: solid; border-bottom-width: 1" bgcolor="#E6E6E6">
    <font SIZE="2">(40.6)</font></td>
  </tr>
  <tr>
    <td WIDTH="626" style="border-top-style: solid; border-top-width: 1">
    <font SIZE="2"><b>Total indebtedness</b></font></td>
    <td WIDTH="153" align="right" style="border-top-style: solid; border-top-width: 1">&nbsp;</td>
    <td WIDTH="154" align="right" style="border-top-style: solid; border-top-width: 1">
    <font SIZE="2"><b>(50.6)</b></font></td>
    <td WIDTH="154" align="right" style="border-top-style: solid; border-top-width: 1">
    <font SIZE="2">(51.1)</font></td>
    <td WIDTH="154" align="right" style="border-top-style: solid; border-top-width: 1">
    <font SIZE="2">(60.3)</font></td>
  </tr>
  <tr>
    <td WIDTH="626">&nbsp;</td>
    <td WIDTH="153" align="right">&nbsp;</td>
    <td WIDTH="154" align="right">&nbsp;</td>
    <td WIDTH="154" align="right">&nbsp;</td>
    <td WIDTH="154" align="right">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="626" style="border-bottom-style: solid; border-bottom-width: 1" bgcolor="#E6E6E6">
    <font SIZE="2">Cash and cash equivalents</font></td>
    <td WIDTH="153" align="right" style="border-bottom-style: solid; border-bottom-width: 1" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="154" align="right" style="border-bottom-style: solid; border-bottom-width: 1" bgcolor="#E6E6E6">
    <font SIZE="2"><b>48.1</b></font></td>
    <td WIDTH="154" align="right" style="border-bottom-style: solid; border-bottom-width: 1" bgcolor="#E6E6E6">
    <font SIZE="2">69.8</font></td>
    <td WIDTH="154" align="right" style="border-bottom-style: solid; border-bottom-width: 1" bgcolor="#E6E6E6">
    <font SIZE="2">30.0</font></td>
  </tr>
  <tr>
    <td WIDTH="626" style="border-top-style: solid; border-top-width: 1; border-bottom-style: double; border-bottom-width: 3">
    <font SIZE="2"><b>Cash in excess of debt (net debt)</b></font></td>
    <td WIDTH="153" align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: double; border-bottom-width: 3">&nbsp;</td>
    <td WIDTH="154" align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: double; border-bottom-width: 3">
    <font SIZE="2"><b>(2.5)</b></font></td>
    <td WIDTH="154" align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: double; border-bottom-width: 3">
    <font SIZE="2">18.7</font></td>
    <td WIDTH="154" align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: double; border-bottom-width: 3">
    <font SIZE="2">(30.3)</font></td>
  </tr>
  <tr>
    <td WIDTH="626">&nbsp;</td>
    <td WIDTH="153" align="right">&nbsp;</td>
    <td WIDTH="154" align="right">&nbsp;</td>
    <td WIDTH="154" align="right">&nbsp;</td>
    <td WIDTH="154" align="right">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="626">&nbsp;</td>
    <td WIDTH="153" align="right">&nbsp;</td>
    <td WIDTH="154" align="right">&nbsp;</td>
    <td WIDTH="154" align="right">&nbsp;</td>
    <td WIDTH="154" align="right">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="626"><font SIZE="2"><b>Free cash flow</b></font></td>
    <td WIDTH="153" align="right">&nbsp;</td>
    <td WIDTH="154" align="right">&nbsp;</td>
    <td WIDTH="154" align="right">&nbsp;</td>
    <td WIDTH="154" align="right">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="626">&nbsp;</td>
    <td WIDTH="153" align="right">&nbsp;</td>
    <td WIDTH="154" align="right">&nbsp;</td>
    <td WIDTH="154" align="right">&nbsp;</td>
    <td WIDTH="154" align="right">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="626" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2"><i>(in $ millions)</i></font></td>
    <td WIDTH="153" align="right" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="154" align="right" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="154" align="right" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="154" align="right" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="626" style="border-top-style: solid; border-top-width: 1">&nbsp;</td>
    <td WIDTH="153" align="right" style="border-top-style: solid; border-top-width: 1">
    <font SIZE="2"><b>Q2 2006</b></font></td>
    <td WIDTH="154" align="right" style="border-top-style: solid; border-top-width: 1">
    <font SIZE="2"><b>Q2 2005</b></font></td>
    <td WIDTH="154" align="right" style="border-top-style: solid; border-top-width: 1">
    <font SIZE="2"><b>YTD 2006</b></font></td>
    <td WIDTH="154" align="right" style="border-top-style: solid; border-top-width: 1">
    <font SIZE="2"><b>YTD 2005</b></font></td>
  </tr>
  <tr>
    <td WIDTH="626" bgcolor="#E6E6E6"><font SIZE="2"><b>Cash flows from operating activities</b></font></td>
    <td WIDTH="153" align="right" bgcolor="#E6E6E6"><font SIZE="2"><b>(18.0)</b></font></td>
    <td WIDTH="154" align="right" bgcolor="#E6E6E6"><font SIZE="2">(3.8)</font></td>
    <td WIDTH="154" align="right" bgcolor="#E6E6E6"><font SIZE="2"><b>14.0</b></font></td>
    <td WIDTH="154" align="right" bgcolor="#E6E6E6"><font SIZE="2">8.4</font></td>
  </tr>
  <tr>
    <td WIDTH="626" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2">Cash flows from investing activities</font></td>
    <td WIDTH="153" align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2"><b>(24.0)</b></font></td>
    <td WIDTH="154" align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2">(23.6)</font></td>
    <td WIDTH="154" align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2"><b>(36.5)</b></font></td>
    <td WIDTH="154" align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2">(45.7)</font></td>
  </tr>
  <tr>
    <td WIDTH="626" style="border-top-style: solid; border-top-width: 1; border-bottom-style: double; border-bottom-width: 3" bgcolor="#E6E6E6">
    <font SIZE="2"><b>Free cash flow</b></font></td>
    <td WIDTH="153" align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: double; border-bottom-width: 3" bgcolor="#E6E6E6">
    <font SIZE="2"><b>(42.0)</b></font></td>
    <td WIDTH="154" align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: double; border-bottom-width: 3" bgcolor="#E6E6E6">
    <font SIZE="2">(27.4)</font></td>
    <td WIDTH="154" align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: double; border-bottom-width: 3" bgcolor="#E6E6E6">
    <font SIZE="2"><b>(22.5)</b></font></td>
    <td WIDTH="154" align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: double; border-bottom-width: 3" bgcolor="#E6E6E6">
    <font SIZE="2">(37.3)</font></td>
  </tr>
</table>
<font FACE="Arial MT" SIZE="2"><b><hr color="#000000" size="5"><p Style='page-break-before:always'>
<table border="0" cellpadding="0" cellspacing="0" style="border-collapse: collapse" bordercolor="#111111" width="100%">
  <tr>
    <td width="50%"><img border="0" src="gildan1.jpg" width="159" height="49"></td>
    <td width="50%" bgcolor="#000000"><b><font SIZE="4" color="#FFFFFF">
    <p style="margin-left: 20"><font style="background-color: #000000">Quarterly
    Report to Shareholders <br>
    Second quarter ended April 2, 2006 </font></font></b></td>
  </tr>
</table>
</b></font><font SIZE="2"><b>
<p>Adjusted Consolidated Statement of Earnings and Earnings per Share </p>
</b></font>
<table CELLSPACING="0" BORDER="0" WIDTH="100%" cellpadding="0" style="border-collapse: collapse" bordercolor="#111111">
  <tr>
    <td WIDTH="384" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2"><i>(in $ millions)</i></font></td>
    <td WIDTH="142" align="right" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="143" align="right" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="143" align="right" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="143" align="right" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="143" align="right" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="143" align="right" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="384" style="border-top-style: solid; border-top-width: 1">&nbsp;</td>
    <td WIDTH="142" align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="143" align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="143" align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="143" align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="143" align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="143" align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="384">&nbsp;</td>
    <td WIDTH="142" align="right" style="border-top-style: solid; border-top-width: 1">&nbsp;</td>
    <td WIDTH="143" align="right" style="border-top-style: solid; border-top-width: 1">&nbsp;</td>
    <td WIDTH="143" align="right" style="border-top-style: solid; border-top-width: 1">
    <font SIZE="2"><b>Q2 2006</b></font></td>
    <td WIDTH="143" align="right" style="border-top-style: solid; border-top-width: 1">&nbsp;</td>
    <td WIDTH="143" align="right" style="border-top-style: solid; border-top-width: 1">&nbsp;</td>
    <td WIDTH="143" align="right" style="border-top-style: solid; border-top-width: 1">
    <font SIZE="2"><b>YTD 2006</b></font></td>
  </tr>
  <tr>
    <td WIDTH="384">&nbsp;</td>
    <td WIDTH="142" align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2"><b>Q2 2006</b></font></td>
    <td WIDTH="143" align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2"><b>Adjustments</b></font></td>
    <td WIDTH="143" align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2"><b>Adjusted</b></font></td>
    <td WIDTH="143" align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2"><b>YTD 2006</b></font></td>
    <td WIDTH="143" align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2"><b>Adjustments</b></font></td>
    <td WIDTH="143" align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2"><b>Adjusted</b></font></td>
  </tr>
  <tr>
    <td WIDTH="384" bgcolor="#E6E6E6"><font SIZE="2">Sales</font></td>
    <td WIDTH="142" align="right" style="border-top-style: solid; border-top-width: 1" bgcolor="#E6E6E6">
    <font SIZE="2"><b>183.8</b></font></td>
    <td WIDTH="143" align="right" style="border-top-style: solid; border-top-width: 1" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="143" align="right" style="border-top-style: solid; border-top-width: 1" bgcolor="#E6E6E6">
    <font SIZE="2"><b>183.8</b></font></td>
    <td WIDTH="143" align="right" style="border-top-style: solid; border-top-width: 1" bgcolor="#E6E6E6">
    <font SIZE="2"><b>304.1</b></font></td>
    <td WIDTH="143" align="right" style="border-top-style: solid; border-top-width: 1" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="143" align="right" style="border-top-style: solid; border-top-width: 1" bgcolor="#E6E6E6">
    <font SIZE="2"><b>304.1</b></font></td>
  </tr>
  <tr>
    <td WIDTH="384"><font SIZE="2">Cost of sales</font></td>
    <td WIDTH="142" align="right"><font SIZE="2"><b>122.4</b></font></td>
    <td WIDTH="143" align="right">&nbsp;</td>
    <td WIDTH="143" align="right"><font SIZE="2"><b>122.4</b></font></td>
    <td WIDTH="143" align="right"><font SIZE="2"><b>199.8</b></font></td>
    <td WIDTH="143" align="right">&nbsp;</td>
    <td WIDTH="143" align="right"><font SIZE="2"><b>199.8</b></font></td>
  </tr>
  <tr>
    <td WIDTH="384" bgcolor="#E6E6E6"><font SIZE="2">Gross profit</font></td>
    <td WIDTH="142" align="right" bgcolor="#E6E6E6"><font SIZE="2"><b>61.4</b></font></td>
    <td WIDTH="143" align="right" bgcolor="#E6E6E6"><font SIZE="2">-</font></td>
    <td WIDTH="143" align="right" bgcolor="#E6E6E6"><font SIZE="2"><b>61.4</b></font></td>
    <td WIDTH="143" align="right" bgcolor="#E6E6E6"><font SIZE="2"><b>104.3</b></font></td>
    <td WIDTH="143" align="right" bgcolor="#E6E6E6"><font SIZE="2">-</font></td>
    <td WIDTH="143" align="right" bgcolor="#E6E6E6"><font SIZE="2"><b>104.3</b></font></td>
  </tr>
  <tr>
    <td WIDTH="384"><font SIZE="2">Selling, general and</font></td>
    <td WIDTH="142" align="right">&nbsp;</td>
    <td WIDTH="143" align="right">&nbsp;</td>
    <td WIDTH="143" align="right">&nbsp;</td>
    <td WIDTH="143" align="right">&nbsp;</td>
    <td WIDTH="143" align="right">&nbsp;</td>
    <td WIDTH="143" align="right">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="384" style="border-bottom-style: solid; border-bottom-width: 1" bgcolor="#E6E6E6">
    <font SIZE="2">administrative expenses</font></td>
    <td WIDTH="142" align="right" style="border-bottom-style: solid; border-bottom-width: 1" bgcolor="#E6E6E6">
    <font SIZE="2"><b>20.7</b></font></td>
    <td WIDTH="143" align="right" style="border-bottom-style: solid; border-bottom-width: 1" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="143" align="right" style="border-bottom-style: solid; border-bottom-width: 1" bgcolor="#E6E6E6">
    <font SIZE="2"><b>20.7</b></font></td>
    <td WIDTH="143" align="right" style="border-bottom-style: solid; border-bottom-width: 1" bgcolor="#E6E6E6">
    <font SIZE="2"><b>38.8</b></font></td>
    <td WIDTH="143" align="right" style="border-bottom-style: solid; border-bottom-width: 1" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="143" align="right" style="border-bottom-style: solid; border-bottom-width: 1" bgcolor="#E6E6E6">
    <font SIZE="2"><b>38.8</b></font></td>
  </tr>
  <tr>
    <td WIDTH="384" style="border-top-style: solid; border-top-width: 1">&nbsp;</td>
    <td WIDTH="142" align="right" style="border-top-style: solid; border-top-width: 1">
    <font SIZE="2"><b>40.7</b></font></td>
    <td WIDTH="143" align="right" style="border-top-style: solid; border-top-width: 1">
    <font SIZE="2">-</font></td>
    <td WIDTH="143" align="right" style="border-top-style: solid; border-top-width: 1">
    <font SIZE="2"><b>40.7</b></font></td>
    <td WIDTH="143" align="right" style="border-top-style: solid; border-top-width: 1">
    <font SIZE="2"><b>65.5</b></font></td>
    <td WIDTH="143" align="right" style="border-top-style: solid; border-top-width: 1">
    <font SIZE="2">-</font></td>
    <td WIDTH="143" align="right" style="border-top-style: solid; border-top-width: 1">
    <font SIZE="2"><b>65.5</b></font></td>
  </tr>
  <tr>
    <td WIDTH="384" bgcolor="#E6E6E6"><font SIZE="2">Depreciation and amortization</font></td>
    <td WIDTH="142" align="right" bgcolor="#E6E6E6"><font SIZE="2"><b>7.7</b></font></td>
    <td WIDTH="143" align="right" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="143" align="right" bgcolor="#E6E6E6"><font SIZE="2"><b>7.7</b></font></td>
    <td WIDTH="143" align="right" bgcolor="#E6E6E6"><font SIZE="2"><b>15.1</b></font></td>
    <td WIDTH="143" align="right" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="143" align="right" bgcolor="#E6E6E6"><font SIZE="2"><b>15.1</b></font></td>
  </tr>
  <tr>
    <td WIDTH="384"><font SIZE="2">Interest expense</font></td>
    <td WIDTH="142" align="right"><font SIZE="2"><b>0.7</b></font></td>
    <td WIDTH="143" align="right">&nbsp;</td>
    <td WIDTH="143" align="right"><font SIZE="2"><b>0.7</b></font></td>
    <td WIDTH="143" align="right"><font SIZE="2"><b>1.3</b></font></td>
    <td WIDTH="143" align="right">&nbsp;</td>
    <td WIDTH="143" align="right"><font SIZE="2"><b>1.3</b></font></td>
  </tr>
  <tr>
    <td WIDTH="384" style="border-bottom-style: solid; border-bottom-width: 1" bgcolor="#E6E6E6">
    <font SIZE="2">Non-controlling interest</font></td>
    <td WIDTH="142" align="right" style="border-bottom-style: solid; border-bottom-width: 1" bgcolor="#E6E6E6">
    <font SIZE="2"><b>0.2</b></font></td>
    <td WIDTH="143" align="right" style="border-bottom-style: solid; border-bottom-width: 1" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="143" align="right" style="border-bottom-style: solid; border-bottom-width: 1" bgcolor="#E6E6E6">
    <font SIZE="2"><b>0.2</b></font></td>
    <td WIDTH="143" align="right" style="border-bottom-style: solid; border-bottom-width: 1" bgcolor="#E6E6E6">
    <font SIZE="2"><b>-</b></font></td>
    <td WIDTH="143" align="right" style="border-bottom-style: solid; border-bottom-width: 1" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="143" align="right" style="border-bottom-style: solid; border-bottom-width: 1" bgcolor="#E6E6E6">
    <font SIZE="2"><b>-</b></font></td>
  </tr>
  <tr>
    <td WIDTH="384" style="border-top-style: solid; border-top-width: 1">
    <font SIZE="2">Earnings before income taxes</font></td>
    <td WIDTH="142" align="right" style="border-top-style: solid; border-top-width: 1">
    <font SIZE="2"><b>32.1</b></font></td>
    <td WIDTH="143" align="right" style="border-top-style: solid; border-top-width: 1">
    <font SIZE="2">-</font></td>
    <td WIDTH="143" align="right" style="border-top-style: solid; border-top-width: 1">
    <font SIZE="2"><b>32.1</b></font></td>
    <td WIDTH="143" align="right" style="border-top-style: solid; border-top-width: 1">
    <font SIZE="2"><b>49.1</b></font></td>
    <td WIDTH="143" align="right" style="border-top-style: solid; border-top-width: 1">
    <font SIZE="2">-</font></td>
    <td WIDTH="143" align="right" style="border-top-style: solid; border-top-width: 1">
    <font SIZE="2"><b>49.1</b></font></td>
  </tr>
  <tr>
    <td WIDTH="384" style="border-bottom-style: solid; border-bottom-width: 1" bgcolor="#E6E6E6">
    <font SIZE="2">Income taxes</font></td>
    <td WIDTH="142" align="right" style="border-bottom-style: solid; border-bottom-width: 1" bgcolor="#E6E6E6">
    <font SIZE="2"><b>1.1</b></font></td>
    <td WIDTH="143" align="right" style="border-bottom-style: solid; border-bottom-width: 1" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="143" align="right" style="border-bottom-style: solid; border-bottom-width: 1" bgcolor="#E6E6E6">
    <font SIZE="2"><b>1.1</b></font></td>
    <td WIDTH="143" align="right" style="border-bottom-style: solid; border-bottom-width: 1" bgcolor="#E6E6E6">
    <font SIZE="2"><b>1.9</b></font></td>
    <td WIDTH="143" align="right" style="border-bottom-style: solid; border-bottom-width: 1" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="143" align="right" style="border-bottom-style: solid; border-bottom-width: 1" bgcolor="#E6E6E6">
    <font SIZE="2"><b>1.9</b></font></td>
  </tr>
  <tr>
    <td WIDTH="384" style="border-top-style: solid; border-top-width: 1; border-bottom-style: double; border-bottom-width: 3">
    <font SIZE="2">Net earnings</font></td>
    <td WIDTH="142" align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: double; border-bottom-width: 3">
    <font SIZE="2"><b>31.0</b></font></td>
    <td WIDTH="143" align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: double; border-bottom-width: 3">
    <font SIZE="2">-</font></td>
    <td WIDTH="143" align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: double; border-bottom-width: 3">
    <font SIZE="2"><b>31.0</b></font></td>
    <td WIDTH="143" align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: double; border-bottom-width: 3">
    <font SIZE="2"><b>47.2</b></font></td>
    <td WIDTH="143" align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: double; border-bottom-width: 3">
    <font SIZE="2">-</font></td>
    <td WIDTH="143" align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: double; border-bottom-width: 3">
    <font SIZE="2"><b>47.2</b></font></td>
  </tr>
  <tr>
    <td WIDTH="384" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="142" align="right" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="143" align="right" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="143" align="right" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="143" align="right" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="143" align="right" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="143" align="right" bgcolor="#E6E6E6">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="384"><font SIZE="2">Basic E.P.S.</font></td>
    <td WIDTH="142" align="right"><font SIZE="2"><b>0.52</b></font></td>
    <td WIDTH="143" align="right"><font SIZE="2">-</font></td>
    <td WIDTH="143" align="right"><font SIZE="2"><b>0.52</b></font></td>
    <td WIDTH="143" align="right"><font SIZE="2"><b>0.79</b></font></td>
    <td WIDTH="143" align="right"><font SIZE="2">-</font></td>
    <td WIDTH="143" align="right"><font SIZE="2"><b>0.79</b></font></td>
  </tr>
  <tr>
    <td WIDTH="384" style="border-bottom-style: double; border-bottom-width: 3" bgcolor="#E6E6E6">
    <font SIZE="2">Diluted E.P.S.</font></td>
    <td WIDTH="142" align="right" style="border-bottom-style: double; border-bottom-width: 3" bgcolor="#E6E6E6">
    <font SIZE="2"><b>0.51</b></font></td>
    <td WIDTH="143" align="right" style="border-bottom-style: double; border-bottom-width: 3" bgcolor="#E6E6E6">
    <font SIZE="2">-</font></td>
    <td WIDTH="143" align="right" style="border-bottom-style: double; border-bottom-width: 3" bgcolor="#E6E6E6">
    <font SIZE="2"><b>0.51</b></font></td>
    <td WIDTH="143" align="right" style="border-bottom-style: double; border-bottom-width: 3" bgcolor="#E6E6E6">
    <font SIZE="2"><b>0.78</b></font></td>
    <td WIDTH="143" align="right" style="border-bottom-style: double; border-bottom-width: 3" bgcolor="#E6E6E6">
    <font SIZE="2">-</font></td>
    <td WIDTH="143" align="right" style="border-bottom-style: double; border-bottom-width: 3" bgcolor="#E6E6E6">
    <font SIZE="2"><b>0.78</b></font></td>
  </tr>
  <tr>
    <td WIDTH="384">&nbsp;</td>
    <td WIDTH="142" align="right">&nbsp;</td>
    <td WIDTH="143" align="right">&nbsp;</td>
    <td WIDTH="143" align="right">&nbsp;</td>
    <td WIDTH="143" align="right">&nbsp;</td>
    <td WIDTH="143" align="right">&nbsp;</td>
    <td WIDTH="143" align="right">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="384">&nbsp;</td>
    <td WIDTH="142" align="right">&nbsp;</td>
    <td WIDTH="143" align="right">&nbsp;</td>
    <td WIDTH="143" align="right">&nbsp;</td>
    <td WIDTH="143" align="right">&nbsp;</td>
    <td WIDTH="143" align="right">&nbsp;</td>
    <td WIDTH="143" align="right">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="384" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2"><i>(in $ millions)</i></font></td>
    <td WIDTH="142" align="right" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="143" align="right" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="143" align="right" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="143" align="right" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="143" align="right" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="143" align="right" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="384" style="border-top-style: solid; border-top-width: 1">&nbsp;</td>
    <td WIDTH="142" align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="143" align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="143" align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="143" align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="143" align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="143" align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="384">&nbsp;</td>
    <td WIDTH="142" align="right" style="border-top-style: solid; border-top-width: 1">&nbsp;</td>
    <td WIDTH="143" align="right" style="border-top-style: solid; border-top-width: 1">&nbsp;</td>
    <td WIDTH="143" align="right" style="border-top-style: solid; border-top-width: 1">
    <font SIZE="2">Q2 2005</font></td>
    <td WIDTH="143" align="right" style="border-top-style: solid; border-top-width: 1">&nbsp;</td>
    <td WIDTH="143" align="right" style="border-top-style: solid; border-top-width: 1">&nbsp;</td>
    <td WIDTH="143" align="right" style="border-top-style: solid; border-top-width: 1">
    <font SIZE="2">YTD 2005</font></td>
  </tr>
  <tr>
    <td WIDTH="384">&nbsp;</td>
    <td WIDTH="142" align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2">Q2 2005</font></td>
    <td WIDTH="143" align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2">Adjustments</font></td>
    <td WIDTH="143" align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2">Adjusted</font></td>
    <td WIDTH="143" align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2">YTD 2005</font></td>
    <td WIDTH="143" align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2">Adjustments</font></td>
    <td WIDTH="143" align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2">Adjusted</font></td>
  </tr>
  <tr>
    <td WIDTH="384" bgcolor="#E6E6E6"><font SIZE="2">Sales</font></td>
    <td WIDTH="142" align="right" style="border-top-style: solid; border-top-width: 1" bgcolor="#E6E6E6">
    <font SIZE="2">165.3</font></td>
    <td WIDTH="143" align="right" style="border-top-style: solid; border-top-width: 1" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="143" align="right" style="border-top-style: solid; border-top-width: 1" bgcolor="#E6E6E6">
    <font SIZE="2">165.3</font></td>
    <td WIDTH="143" align="right" style="border-top-style: solid; border-top-width: 1" bgcolor="#E6E6E6">
    <font SIZE="2">274.3</font></td>
    <td WIDTH="143" align="right" style="border-top-style: solid; border-top-width: 1" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="143" align="right" style="border-top-style: solid; border-top-width: 1" bgcolor="#E6E6E6">
    <font SIZE="2">274.3</font></td>
  </tr>
  <tr>
    <td WIDTH="384" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2">Cost of sales</font></td>
    <td WIDTH="142" align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2">115.6</font></td>
    <td WIDTH="143" align="right" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="143" align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2">115.6</font></td>
    <td WIDTH="143" align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2">192.2</font></td>
    <td WIDTH="143" align="right" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="143" align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2">192.2</font></td>
  </tr>
  <tr>
    <td WIDTH="384" style="border-top-style: solid; border-top-width: 1" bgcolor="#E6E6E6">
    <font SIZE="2">Gross profit</font></td>
    <td WIDTH="142" align="right" style="border-top-style: solid; border-top-width: 1" bgcolor="#E6E6E6">
    <font SIZE="2">49.7</font></td>
    <td WIDTH="143" align="right" style="border-top-style: solid; border-top-width: 1" bgcolor="#E6E6E6">
    <font SIZE="2">-</font></td>
    <td WIDTH="143" align="right" style="border-top-style: solid; border-top-width: 1" bgcolor="#E6E6E6">
    <font SIZE="2">49.7</font></td>
    <td WIDTH="143" align="right" style="border-top-style: solid; border-top-width: 1" bgcolor="#E6E6E6">
    <font SIZE="2">82.1</font></td>
    <td WIDTH="143" align="right" style="border-top-style: solid; border-top-width: 1" bgcolor="#E6E6E6">
    <font SIZE="2">-</font></td>
    <td WIDTH="143" align="right" style="border-top-style: solid; border-top-width: 1" bgcolor="#E6E6E6">
    <font SIZE="2">82.1</font></td>
  </tr>
  <tr>
    <td WIDTH="384"><font SIZE="2">Selling, general and</font></td>
    <td WIDTH="142" align="right">&nbsp;</td>
    <td WIDTH="143" align="right">&nbsp;</td>
    <td WIDTH="143" align="right">&nbsp;</td>
    <td WIDTH="143" align="right">&nbsp;</td>
    <td WIDTH="143" align="right">&nbsp;</td>
    <td WIDTH="143" align="right">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="384" bgcolor="#E6E6E6"><font SIZE="2">administrative expenses</font></td>
    <td WIDTH="142" align="right" bgcolor="#E6E6E6"><font SIZE="2">18.3</font></td>
    <td WIDTH="143" align="right" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="143" align="right" bgcolor="#E6E6E6"><font SIZE="2">18.3</font></td>
    <td WIDTH="143" align="right" bgcolor="#E6E6E6"><font SIZE="2">34.6</font></td>
    <td WIDTH="143" align="right" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="143" align="right" bgcolor="#E6E6E6"><font SIZE="2">34.6</font></td>
  </tr>
  <tr>
    <td WIDTH="384" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2">Special charge <sup>(1)</sup></font></td>
    <td WIDTH="142" align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2">11.9</font></td>
    <td WIDTH="143" align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2">(11.9)</font></td>
    <td WIDTH="143" align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2">-</font></td>
    <td WIDTH="143" align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2">11.9</font></td>
    <td WIDTH="143" align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2">(11.9)</font></td>
    <td WIDTH="143" align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2">-</font></td>
  </tr>
  <tr>
    <td WIDTH="384" style="border-top-style: solid; border-top-width: 1" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="142" align="right" style="border-top-style: solid; border-top-width: 1" bgcolor="#E6E6E6">
    <font SIZE="2">19.5</font></td>
    <td WIDTH="143" align="right" style="border-top-style: solid; border-top-width: 1" bgcolor="#E6E6E6">
    <font SIZE="2">11.9</font></td>
    <td WIDTH="143" align="right" style="border-top-style: solid; border-top-width: 1" bgcolor="#E6E6E6">
    <font SIZE="2">31.4</font></td>
    <td WIDTH="143" align="right" style="border-top-style: solid; border-top-width: 1" bgcolor="#E6E6E6">
    <font SIZE="2">35.6</font></td>
    <td WIDTH="143" align="right" style="border-top-style: solid; border-top-width: 1" bgcolor="#E6E6E6">
    <font SIZE="2">11.9</font></td>
    <td WIDTH="143" align="right" style="border-top-style: solid; border-top-width: 1" bgcolor="#E6E6E6">
    <font SIZE="2">47.5</font></td>
  </tr>
  <tr>
    <td WIDTH="384"><font SIZE="2">Depreciation and amortization</font></td>
    <td WIDTH="142" align="right"><font SIZE="2">6.5</font></td>
    <td WIDTH="143" align="right">&nbsp;</td>
    <td WIDTH="143" align="right"><font SIZE="2">6.5</font></td>
    <td WIDTH="143" align="right"><font SIZE="2">12.4</font></td>
    <td WIDTH="143" align="right">&nbsp;</td>
    <td WIDTH="143" align="right"><font SIZE="2">12.4</font></td>
  </tr>
  <tr>
    <td WIDTH="384" bgcolor="#E6E6E6"><font SIZE="2">Interest expense</font></td>
    <td WIDTH="142" align="right" bgcolor="#E6E6E6"><font SIZE="2">1.3</font></td>
    <td WIDTH="143" align="right" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="143" align="right" bgcolor="#E6E6E6"><font SIZE="2">1.3</font></td>
    <td WIDTH="143" align="right" bgcolor="#E6E6E6"><font SIZE="2">2.5</font></td>
    <td WIDTH="143" align="right" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="143" align="right" bgcolor="#E6E6E6"><font SIZE="2">2.5</font></td>
  </tr>
  <tr>
    <td WIDTH="384" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2">Non-controlling interest</font></td>
    <td WIDTH="142" align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2">0.1</font></td>
    <td WIDTH="143" align="right" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="143" align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2">0.1</font></td>
    <td WIDTH="143" align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2">0.1</font></td>
    <td WIDTH="143" align="right" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="143" align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2">0.1</font></td>
  </tr>
  <tr>
    <td WIDTH="384" style="border-top-style: solid; border-top-width: 1" bgcolor="#E6E6E6">
    <font SIZE="2">Earnings before income taxes</font></td>
    <td WIDTH="142" align="right" style="border-top-style: solid; border-top-width: 1" bgcolor="#E6E6E6">
    <font SIZE="2">11.6</font></td>
    <td WIDTH="143" align="right" style="border-top-style: solid; border-top-width: 1" bgcolor="#E6E6E6">
    <font SIZE="2">11.9</font></td>
    <td WIDTH="143" align="right" style="border-top-style: solid; border-top-width: 1" bgcolor="#E6E6E6">
    <font SIZE="2">23.5</font></td>
    <td WIDTH="143" align="right" style="border-top-style: solid; border-top-width: 1" bgcolor="#E6E6E6">
    <font SIZE="2">20.6</font></td>
    <td WIDTH="143" align="right" style="border-top-style: solid; border-top-width: 1" bgcolor="#E6E6E6">
    <font SIZE="2">11.9</font></td>
    <td WIDTH="143" align="right" style="border-top-style: solid; border-top-width: 1" bgcolor="#E6E6E6">
    <font SIZE="2">32.5</font></td>
  </tr>
  <tr>
    <td WIDTH="384" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2">Income taxes</font></td>
    <td WIDTH="142" align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2">(2.7)</font></td>
    <td WIDTH="143" align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2">4.1</font></td>
    <td WIDTH="143" align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2">1.4</font></td>
    <td WIDTH="143" align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2">(2.1)</font></td>
    <td WIDTH="143" align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2">4.1</font></td>
    <td WIDTH="143" align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2">2.0</font></td>
  </tr>
  <tr>
    <td WIDTH="384" style="border-top-style: solid; border-top-width: 1; border-bottom-style: double; border-bottom-width: 3" bgcolor="#E6E6E6">
    <font SIZE="2">Net earnings</font></td>
    <td WIDTH="142" align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: double; border-bottom-width: 3" bgcolor="#E6E6E6">
    <font SIZE="2">14.3</font></td>
    <td WIDTH="143" align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: double; border-bottom-width: 3" bgcolor="#E6E6E6">
    <font SIZE="2">7.8</font></td>
    <td WIDTH="143" align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: double; border-bottom-width: 3" bgcolor="#E6E6E6">
    <font SIZE="2">22.1</font></td>
    <td WIDTH="143" align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: double; border-bottom-width: 3" bgcolor="#E6E6E6">
    <font SIZE="2">22.7</font></td>
    <td WIDTH="143" align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: double; border-bottom-width: 3" bgcolor="#E6E6E6">
    <font SIZE="2">7.8</font></td>
    <td WIDTH="143" align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: double; border-bottom-width: 3" bgcolor="#E6E6E6">
    <font SIZE="2">30.5</font></td>
  </tr>
  <tr>
    <td WIDTH="384">&nbsp;</td>
    <td WIDTH="142" align="right">&nbsp;</td>
    <td WIDTH="143" align="right">&nbsp;</td>
    <td WIDTH="143" align="right">&nbsp;</td>
    <td WIDTH="143" align="right">&nbsp;</td>
    <td WIDTH="143" align="right">&nbsp;</td>
    <td WIDTH="143" align="right">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="384" bgcolor="#E6E6E6"><font SIZE="2">Basic E.P.S.</font></td>
    <td WIDTH="142" align="right" bgcolor="#E6E6E6"><font SIZE="2">0.24</font></td>
    <td WIDTH="143" align="right" bgcolor="#E6E6E6"><font SIZE="2">0.13</font></td>
    <td WIDTH="143" align="right" bgcolor="#E6E6E6"><font SIZE="2">0.37</font></td>
    <td WIDTH="143" align="right" bgcolor="#E6E6E6"><font SIZE="2">0.38</font></td>
    <td WIDTH="143" align="right" bgcolor="#E6E6E6"><font SIZE="2">0.13</font></td>
    <td WIDTH="143" align="right" bgcolor="#E6E6E6"><font SIZE="2">0.51</font></td>
  </tr>
  <tr>
    <td WIDTH="384" style="border-bottom-style: double; border-bottom-width: 3">
    <font SIZE="2">Diluted E.P.S.</font></td>
    <td WIDTH="142" align="right" style="border-bottom-style: double; border-bottom-width: 3">
    <font SIZE="2">0.24</font></td>
    <td WIDTH="143" align="right" style="border-bottom-style: double; border-bottom-width: 3">
    <font SIZE="2">0.13</font></td>
    <td WIDTH="143" align="right" style="border-bottom-style: double; border-bottom-width: 3">
    <font SIZE="2">0.37</font></td>
    <td WIDTH="143" align="right" style="border-bottom-style: double; border-bottom-width: 3">
    <font SIZE="2">0.38</font></td>
    <td WIDTH="143" align="right" style="border-bottom-style: double; border-bottom-width: 3">
    <font SIZE="2">0.13</font></td>
    <td WIDTH="143" align="right" style="border-bottom-style: double; border-bottom-width: 3">
    <font SIZE="2">0.51</font></td>
  </tr>
</table>
<font FACE="Arial MT" SIZE="2">
<p style="text-indent: -26; margin-left: 52">(1)&nbsp;&nbsp; Adjustment to
remove the special charge relating to the closure of the Canadian yarn-spinning
facilities and the income tax effect thereon. See page 13. </p>
<b><hr color="#000000" size="5"><p Style='page-break-before:always'>
<table border="0" cellpadding="0" cellspacing="0" style="border-collapse: collapse" bordercolor="#111111" width="100%">
  <tr>
    <td width="50%"><img border="0" src="gildan1.jpg" width="159" height="49"></td>
    <td width="50%" bgcolor="#000000"><b><font SIZE="4" color="#FFFFFF">
    <p style="margin-left: 20"><font style="background-color: #000000">Quarterly
    Report to Shareholders <br>
    Second quarter ended April 2, 2006 </font></font></b></td>
  </tr>
</table>
</b></font><font FACE="Times New Roman" size="2"><b>
<p>FORWARD-LOOKING STATEMENTS </p>
</b>
<p ALIGN="JUSTIFY">Certain statements included in this interim MD&amp;A may
constitute &quot;forward-looking statements&quot; within the meaning of the U.S. Private
Securities Litigation Reform Act of 1995 and Canadian securities legislation and
regulations, and are subject to important risks, uncertainties and assumptions.
This forward-looking information includes amongst others, information with
respect to our objectives and the strategies to achieve these objectives, as
well as information with respect to our beliefs, plans, expectations,
anticipations, estimates and intentions. Forward-looking statements generally
can be identified by the use of forward-looking terminology such as &quot;may&quot;,
&quot;will&quot;, &quot;expect&quot;, &quot;intend&quot;, &quot;estimate&quot;, &quot;anticipate&quot;, &quot;plan&quot;, &quot;foresee&quot;,
&quot;believe&quot; or &quot;continue&quot; or the negatives of these terms or variations of them or
similar terminology. We refer you to the Company's filings with the Canadian
securities regulatory authorities and the U.S. Securities and Exchange
Commission, as well as the &quot;Risks&quot; section of the 2005 MD&amp;A for a discussion of
the various factors that may affect the Company's future results. Material
factors and assumptions that were applied in drawing a conclusion or making a
forecast or projection are also set out throughout this document. The
forward-looking information on this interim MD&amp;A describes our expectations as
at May 3, 2006. </p>
<p ALIGN="JUSTIFY">Readers are cautioned, however, not to place undue reliance
on forward-looking statements as there can be no assurance that the plans,
intentions or expectations upon which they are based will occur. By their
nature, forward-looking statements involve numerous assumptions, known and
unknown risks and uncertainties, both general and specific, that contribute to
the possibility that the predictions, forecasts, projections and other
forward-looking statements will not occur. This may cause the Company's actual
performance and financial results in future periods to differ materially from
any estimates or projections of future performance or results expressed or
implied by such forward-looking statements. Forward-looking statements do not
take into account the effect that transactions or non-recurring or other special
items announced or occurring after the statements are made have on the Company's
business. For example, they do not include the effect of dispositions,
acquisitions, other business transactions, asset writedowns or other charges
announced or occurring after forward-looking statements are made. </p>
<p>The financial impact of such transactions and non-recurring and other special
items can be complex and necessarily depends on the facts particular to each of
them. </font><font FACE="Arial" SIZE="2"><b></p>
</b></font><font FACE="Times New Roman" SIZE="2">
<p ALIGN="JUSTIFY">We believe that the expectations represented by our
forward-looking statements are reasonable, yet there can be no assurance that
such expectations will prove to be correct. Furthermore, the forward-looking
statements contained in this report are made as of the date of this report, and
we do not undertake any obligation to update publicly or to revise any of the
included forward-looking statements, whether as a result of new information,
future events or otherwise unless required by applicable legislation or
regulation. The forward-looking statements contained in this report are
expressly qualified by this cautionary statement. </p>
<p>May 3, 2006 </p>
</font>
<p>&nbsp;</p>
<p>&nbsp;</p>
<hr color="#000000" size="5">

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"`#L_
`
end
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
-----END PRIVACY-ENHANCED MESSAGE-----
