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<SEC-DOCUMENT>0001204459-07-001175.txt : 20070807
<SEC-HEADER>0001204459-07-001175.hdr.sgml : 20070807
<ACCEPTANCE-DATETIME>20070806215119
ACCESSION NUMBER:		0001204459-07-001175
CONFORMED SUBMISSION TYPE:	6-K
PUBLIC DOCUMENT COUNT:		6
CONFORMED PERIOD OF REPORT:	20070701
FILED AS OF DATE:		20070807
DATE AS OF CHANGE:		20070806

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:		071029509

	BUSINESS ADDRESS:	
		STREET 1:		725 MONT?E DE LIESSE
		STREET 2:		MONTREAL
		CITY:			CANADA
		STATE:			A8
		ZIP:			H4T 1P5
		BUSINESS PHONE:		5147352023

	MAIL ADDRESS:	
		STREET 1:		725 MONT?E DE LIESSE
		STREET 2:		MONTREAL
		CITY:			CANADA
		STATE:			A8
		ZIP:			H4T 1P5

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	GILDAN ACTIVEWEAR INC
		DATE OF NAME CHANGE:	19980515
</SEC-HEADER>
<DOCUMENT>
<TYPE>6-K
<SEQUENCE>1
<FILENAME>gildan6k.htm
<DESCRIPTION>FORM 6-K
<TEXT>

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



<html>

<body>

<div style="font-family: 'Times New Roman',Times,serif">
  <div style="border-top: 1px solid; padding-top: 1px">
    <hr color="#000000" SIZE="5">
  </div>
  <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: August&nbsp;2007&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><font size="5">GILDAN ACTIVEWEAR INC.</font></b><font size="5"> </font>
  </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>
    Montr&#233;al, 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
    <p>&nbsp;</p>
    <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">
    <p>
    <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" borderColor="#111111" cellSpacing="0" cellPadding="0" width="100%" border="0">
    <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: August 6, 2007&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">&nbsp;</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; border-collapse: collapse" borderColor="#111111" cellSpacing="0" cellPadding="0" width="100%" border="0" height="46">
      <!-- Begin Table Head -->
      <tr vAlign="bottom">
        <td width="5%" height="15"></td>
        <td width="2%" height="15"></td>
        <td width="93%" height="15"></td>
      </tr>
      <tr style="font-size: 8pt" vAlign="bottom">
        <td style="border-bottom: 1px solid #000000" noWrap align="left" height="16"><b>
        <font size="2">Exhibit</font></b></td>
        <td height="16"><font size="2">&nbsp;</font></td>
        <td style="border-bottom: 1px solid #000000" noWrap align="middle" height="16"><b>
        <font size="2">Description of Exhibit</font></b></td>
      </tr>
      <!-- End Table Head -->
      <!-- Begin Table Body -->
      <tr vAlign="bottom">
        <td vAlign="top" height="15">
        </td>
        <td height="15" valign="top"></td>
        <td vAlign="top" height="15">
        </td>
      </tr>
      <tr vAlign="bottom">
        <td vAlign="top" height="15" bgcolor="#E6E6E6">
        <div style="text-indent: 0px; margin-left: 0px">
          <a href="exh991.htm" style="text-decoration: none">99.1 </a>
        </div>
        </td>
        <td height="15" bgcolor="#E6E6E6" valign="top"></td>
        <td vAlign="top" height="15" bgcolor="#E6E6E6">
        <a href="exh991.htm" style="text-decoration: none">Q3 2007 Quarterly Report to Shareholders</a></td>
      </tr>
      <!-- End Table Body -->
      <tr vAlign="bottom">
        <td vAlign="top" height="15">
        <a href="exh992.htm" style="text-decoration: none">99.2</a></td>
        <td height="15" valign="top"></td>
        <td vAlign="top" height="15">
        <a href="exh992.htm" style="text-decoration: none">Q3 2007 Management's
        Discussion and Analysis</a></td>
      </tr>
      </table>
  </div>
</div>
<p>&nbsp;</p>
<hr color="#000000" SIZE="5">

</body>

</html>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.1
<SEQUENCE>2
<FILENAME>exh991.htm
<DESCRIPTION>Q3 2007 QUARTERLY REPORT TO SHAREHOLDERS
<TEXT>
<html>

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

<body>

<p>&nbsp;</p>
<div style="border-top-style: solid; border-top-width: 1; padding-top: 1">
  <hr color="#000000" size="5">
</div>
<p align="center">
<img border="0" src="gildanq3cover.gif" width="683" height="403"></p>
<table CELLSPACING="0" BORDER="0" WIDTH="100%" cellpadding="0" style="border-collapse: collapse" bordercolor="#111111">
  <tr>
    <td WIDTH="25%">&nbsp;</td>
    <td WIDTH="25%">&nbsp;</td>
    <td WIDTH="41%"><font FACE="Times New Roman PSMT" SIZE="2">CONTENTS</font></td>
    <td WIDTH="9%" align="center">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="25%">&nbsp;</td>
    <td WIDTH="25%">&nbsp;</td>
    <td WIDTH="41%">&nbsp;</td>
    <td WIDTH="9%" align="center">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="25%">&nbsp;</td>
    <td WIDTH="25%">&nbsp;</td>
    <td WIDTH="41%">&nbsp;</td>
    <td WIDTH="9%" align="center">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="25%">&nbsp;</td>
    <td WIDTH="25%">&nbsp;</td>
    <td WIDTH="41%"><font FACE="Times New Roman PSMT" SIZE="2">MD&amp;A</font></td>
    <td WIDTH="9%" align="center">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="25%">&nbsp;</td>
    <td WIDTH="25%">&nbsp;</td>
    <td WIDTH="41%"><font FACE="Times New Roman PSMT" SIZE="2">
    <p style="margin-left: 15">Our Business</font></td>
    <td WIDTH="9%" align="center"><font FACE="Times New Roman PSMT" SIZE="2">2</font></td>
  </tr>
  <tr>
    <td WIDTH="25%">&nbsp;</td>
    <td WIDTH="25%">&nbsp;</td>
    <td WIDTH="41%"><font FACE="Times New Roman PSMT" SIZE="2">
    <p style="margin-left: 15">Strategy and Financial Objectives</font></td>
    <td WIDTH="9%" align="center"><font FACE="Times New Roman PSMT" SIZE="2">4</font></td>
  </tr>
  <tr>
    <td WIDTH="25%">&nbsp;</td>
    <td WIDTH="25%">&nbsp;</td>
    <td WIDTH="41%"><font FACE="Times New Roman PSMT" SIZE="2">
    <p style="margin-left: 15">Operating Results</font></td>
    <td WIDTH="9%" align="center"><font FACE="Times New Roman PSMT" SIZE="2">5</font></td>
  </tr>
  <tr>
    <td WIDTH="25%">&nbsp;</td>
    <td WIDTH="25%">&nbsp;</td>
    <td WIDTH="41%"><font FACE="Times New Roman PSMT" SIZE="2">
    <p style="margin-left: 15">Financial Condition</font></td>
    <td WIDTH="9%" align="center"><font FACE="Times New Roman PSMT" SIZE="2">9</font></td>
  </tr>
  <tr>
    <td WIDTH="25%">&nbsp;</td>
    <td WIDTH="25%">&nbsp;</td>
    <td WIDTH="41%"><font FACE="Times New Roman PSMT" SIZE="2">
    <p style="margin-left: 15">Liquidity and Capital Resources</font></td>
    <td WIDTH="9%" align="center"><font FACE="Times New Roman PSMT" SIZE="2">10</font></td>
  </tr>
  <tr>
    <td WIDTH="25%">&nbsp;</td>
    <td WIDTH="25%">&nbsp;</td>
    <td WIDTH="41%"><font FACE="Times New Roman PSMT" SIZE="2">
    <p style="margin-left: 15">Critical Accounting Estimates</font></td>
    <td WIDTH="9%" align="center"><font FACE="Times New Roman PSMT" SIZE="2">13</font></td>
  </tr>
  <tr>
    <td WIDTH="25%">&nbsp;</td>
    <td WIDTH="25%">&nbsp;</td>
    <td WIDTH="41%"><font FACE="Times New Roman PSMT" SIZE="2">
    <p style="margin-left: 15">Changes in Accounting Policies</font></td>
    <td WIDTH="9%" align="center"><font FACE="Times New Roman PSMT" SIZE="2">14</font></td>
  </tr>
  <tr>
    <td WIDTH="25%">&nbsp;</td>
    <td WIDTH="25%">&nbsp;</td>
    <td WIDTH="41%"><font FACE="Times New Roman PSMT" SIZE="2">
    <p style="margin-left: 15">Reconciliation and Definition of Non-GAAP
    Measures</font></td>
    <td WIDTH="9%" align="center"><font FACE="Times New Roman PSMT" SIZE="2">15</font></td>
  </tr>
  <tr>
    <td WIDTH="25%">&nbsp;</td>
    <td WIDTH="25%">&nbsp;</td>
    <td WIDTH="41%"><font FACE="Times New Roman PSMT" SIZE="2">
    <p style="margin-left: 15">Risks and Uncertainties</font></td>
    <td WIDTH="9%" align="center"><font FACE="Times New Roman PSMT" SIZE="2">16</font></td>
  </tr>
  <tr>
    <td WIDTH="25%">&nbsp;</td>
    <td WIDTH="25%">&nbsp;</td>
    <td WIDTH="41%"><font FACE="Times New Roman PSMT" SIZE="2">
    <p style="margin-left: 15">Forward-Looking Statements</font></td>
    <td WIDTH="9%" align="center"><font FACE="Times New Roman PSMT" SIZE="2">17</font></td>
  </tr>
  <tr>
    <td WIDTH="25%">&nbsp;</td>
    <td WIDTH="25%">&nbsp;</td>
    <td WIDTH="41%"><font FACE="Times New Roman PSMT" SIZE="2">Interim
    Consolidated Financial Statements</font></td>
    <td WIDTH="9%" align="center"><font FACE="Times New Roman PSMT" SIZE="2">19</font></td>
  </tr>
  <tr>
    <td WIDTH="25%">&nbsp;</td>
    <td WIDTH="25%">&nbsp;</td>
    <td WIDTH="41%"><font FACE="Times New Roman PSMT" SIZE="2">Notes to Interim
    Consolidated Financial Statements</font></td>
    <td WIDTH="9%" align="center"><font FACE="Times New Roman PSMT" SIZE="2">22</font></td>
  </tr>
</table>
<hr color="#000000" size="5"><p Style='page-break-before:always'>
<table CELLSPACING="0" BORDER="0" WIDTH="100%" cellpadding="0" style="border-collapse: collapse" bordercolor="#111111">
  <tr>
    <td width="475">
    <img border="0" src="gildansmlogo.jpg" width="88" height="20"></td>
    <td width="483" align="right"><font FACE="Times New Roman PS" SIZE="2"><i>
    MANAGEMENT'S DISCUSSION AND ANALYSIS</i></font></td>
  </tr>
</table>
<i>
<div style="border-style: solid; border-width: 1; padding-left: 4; padding-right: 4; padding-top: 1; padding-bottom: 1">
  <p ALIGN="JUSTIFY"><font size="2">This Management's discussion and analysis
  (MD&amp;A) comments on Gildan's operations, performance and financial condition as
  at and for the three months and nine months ended July 1, 2007 compared to the
  corresponding periods in the previous year. 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 as at and for the three months and nine months ended July
  1, 2007 and the related notes, and with our MD&amp;A for the year ended October 1,
  2006 (2006 Annual MD&amp;A), which is part of the fiscal 2006 Annual Report. This
  MD&amp;A is dated August 1, 2007. All amounts in this report are in U.S. dollars,
  unless otherwise noted. </font></p>
  <p ALIGN="JUSTIFY"><font size="2">All financial information contained in this
  interim MD&amp;A and in the 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;Non-GAAP Financial Measures&quot; on page 5 of this MD&amp;A. The unaudited
  consolidated financial statements and this MD&amp;A were reviewed by Gildan's
  Audit and Finance Committee and were approved by our Board of Directors.
  </font></p>
  <p ALIGN="JUSTIFY"><font size="2">Additional information about Gildan,
  including our 2006 Annual Information Form, is available on our website at <u>
  <font color="#0000FF">www.gildan.com</font></u>, on the SEDAR website at <u>
  <font color="#0000FF">www.sedar.com</font></u> and on the EDGAR section of the
  U.S. Securities and Exchange Commission website (including the Annual Report
  on Form 40-F) at <u><font color="#0000FF">www.sec.gov</font></u>. </font></p>
  <p><font size="2">This document contains forward-looking statements, which are
  qualified by reference to, and should be read together with the
  &quot;Forward-Looking Statements&quot; cautionary notice on page 17. </font></p>
  <p><font size="2">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 venture.
  </font></p>
  </i>
  <p>&nbsp;</div>
<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 FACE="Arial MT" color="#3988C1">Our Business</font></td>
  </tr>
</table>
<font SIZE="2">
<p ALIGN="JUSTIFY">Gildan is a vertically-integrated marketer and manufacturer
of activewear, socks and underwear. The Company operates in one business
segment, being high-volume, basic, frequently replenished, non-fashion apparel.
We are the leading supplier of activewear for the wholesale imprinted sportswear
market in the U.S. and Canada, and also a leading supplier for this market in
Europe. In 2005, as part of our growth strategy, we began to implement a major
initiative to sell our products into the mass-market retail channel in North
America. In conjunction with these plans, in fiscal 2006, we expanded our
product-line to include athletic socks and underwear. </p>
<p ALIGN="JUSTIFY">Effective July 6, 2006, Gildan completed the acquisition of
Kentucky Derby Hosiery Co., Inc. (Kentucky Derby), a U.S. hosiery manufacturer
in Hopkinsville, Kentucky. Gildan is using Kentucky Derby's experience and
distribution with mass-market retailers to enhance its platform to develop Gildan as a consumer brand in basic athletic socks, underwear and activewear. In
addition, Gildan is relocating Kentucky Derby sock manufacturing production to
its new technologically advanced state-of-the-art integrated facility in Central
America. </p>
<b>
<p>Our Products </p>
</b>
<p ALIGN="JUSTIFY">We specialize in large-scale marketing and manufacturing of
basic, non-fashion apparel products for customers requiring an efficient supply
chain and consistent product quality for high- volume, automatic replenishment
programs. Our product offering focuses on core basic activewear styles sold in
various fabrics, weights and colours. In fiscal 2006, we also introduced a
variety of styles of men's and boys' underwear and athletic socks into our
product-line. Typically, our product offering is characterized by low fashion
risk, since products are basic and produced in a limited range of sizes, colours
and styles. We sell activewear, namely T-shirts, sport shirts and fleece, in
large quantities to wholesale distributors as undecorated &quot;blanks&quot;, which are
subsequently decorated by screenprinters with designs and logos. Consumers
ultimately purchase the Company's products, with the Gildan label, in venues
such as sports, entertainment and corporate events, and travel and tourism
destinations. Other end-uses include work uniforms and similar applications to
convey individual, group and team identity. </p>
</font>
<table CELLSPACING="0" BORDER="0" WIDTH="100%" cellpadding="0" style="border-collapse: collapse" bordercolor="#111111">
  <tr>
    <td><font FACE="Times New Roman PS" SIZE="2"><i>
    <p align="right">GILDAN QUARTERLY REPORT &#150; Q3 2007 p.2</i></font></td>
  </tr>
</table>
<hr color="#000000" size="5"><p Style='page-break-before:always'>
<table CELLSPACING="0" BORDER="0" WIDTH="100%" cellpadding="0" style="border-collapse: collapse" bordercolor="#111111">
  <tr>
    <td width="472">
    <img border="0" src="gildansmlogo.jpg" width="88" height="20"></td>
    <td width="486" align="right"><font FACE="Times New Roman PS" SIZE="2"><i>
    MANAGEMENT'S DISCUSSION AND ANALYSIS</i></font></td>
  </tr>
</table>
<font SIZE="2">
<p>In the retail channel, we sell a variety of styles of men's and boys'
athletic socks and underwear complemented by our activewear product-line. </p>
<b>
<p>Our Manufacturing and Distribution Facilities </p>
</b>
<p ALIGN="JUSTIFY">To support our sales in the various markets, we have built
and are continuing to build modern manufacturing facilities located in Central
America and the Caribbean Basin. Our largest manufacturing hub in Central
America includes our first offshore integrated knitting, bleaching, dyeing,
finishing and cutting textile facility in Rio Nance, Honduras, which became
operational in 2002. In addition, during 2006, we completed the construction of
a state-of-the-art integrated sock manufacturing facility and began the
construction of a technologically advanced integrated facility for the
production of fleece. We commenced production at our sock facility in the first
quarter of fiscal 2007 and expect to ramp up this facility to full capacity
during the balance of fiscal 2007 and the first half of fiscal 2008. Production
at our fleece facility began in the third quarter of fiscal 2007 and we expect
to ramp up this facility to full capacity in the third fiscal quarter of 2008.
</p>
<p ALIGN="JUSTIFY">We also have established a vertically-integrated Caribbean
Basin manufacturing hub with a textile facility in Bella Vista, Dominican
Republic, which began production in fiscal 2005 and is currently running at a
comparable scale of production to our mature textile facility in Honduras. We
will continue to maximize production levels and cost efficiencies at the
Dominican Republic facility during the balance of fiscal 2007. </p>
<p ALIGN="JUSTIFY">Consistent with our strategy to consolidate our sock
production at our new facility in Honduras, on May 30, 2007, we announced the
closure of two sock facilities located in Mount Airy, North Carolina, which will
be completed in the fourth quarter of fiscal 2007. Following these closures, we
will continue to operate one remaining U.S. knitting facility in Hillsville,
Virginia and use third party contractors to source certain non-core specialty
sock products. </p>
<p>Our sewing facilities are located in Central America and the Caribbean Basin.
We also utilize third-party sewing contractors in the Caribbean Basin to
complement our vertically-integrated production. </p>
<p ALIGN="JUSTIFY">On March 27, 2007, we announced plans to close our two
remaining textile facilities in Montreal, Canada, as well as our cutting
facility in Bombay, N.Y., in the fourth quarter of fiscal 2007. In addition, we
closed our two sewing facilities in Mexico, which had been supplied with fabric
from Gildan's Canadian textile operations. Subsequent to the above closures, all
of our manufacturing for T-shirts, fleece, sport shirts and underwear will be
consolidated into our vertically-integrated manufacturing hubs in Central
America and the Caribbean Basin, where we are investing in major capacity
expansion projects, as described above. </p>
<p ALIGN="JUSTIFY">CanAm Yarns, LLC (CanAm), our joint-venture company with
Frontier Spinning Mills, Inc. (Frontier), operates yarn-spinning facilities in
Georgia and North Carolina. CanAm's yarn-spinning operations, together with
supply agreements currently in place with Frontier and other third-party yarn
providers, serve to meet our yarn requirements. </p>
<p ALIGN="JUSTIFY">We distribute our products for the wholesale imprinted
sportswear market in the U.S. primarily out of our company-owned distribution
centre in Eden, North Carolina, and use third-party warehouses in California;
Canada; Mexico and Europe to service our customers in these markets. We also
operate a retail distribution centre in Martinsville, Virginia dedicated to
servicing the mass-market retail channel. </p>
<p>Our corporate head office is located in Montreal, Canada and we employ
approximately 15,000 full-time employees worldwide. </p>
<b>
<p>Market Overview </p>
</b>
<p ALIGN="JUSTIFY">Our target market for activewear, socks and underwear 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 for the screenprint market are not imprinted or
embroidered by manufacturers. </p>
</font>
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  <tr>
    <td><font FACE="Times New Roman PS" SIZE="2"><i>
    <p align="right">GILDAN QUARTERLY REPORT &#150; Q3 2007 p.3</i></font></td>
  </tr>
</table>
<hr color="#000000" size="5"><p Style='page-break-before:always'>
<table CELLSPACING="0" BORDER="0" WIDTH="100%" cellpadding="0" style="border-collapse: collapse" bordercolor="#111111">
  <tr>
    <td width="475">
    <img border="0" src="gildansmlogo.jpg" width="88" height="20"></td>
    <td width="483" align="right"><font FACE="Times New Roman PS" SIZE="2"><i>
    MANAGEMENT'S DISCUSSION AND ANALYSIS</i></font></td>
  </tr>
</table>
<font SIZE="2">
<p ALIGN="JUSTIFY">The apparel market for our products is highly competitive.
Competition is generally based upon price, with reliable quality and service
also being key requirements for success. Our primary competitors in North
America are the major U.S.-based manufacturers of basic branded activewear for
the wholesale and retail channels, which include Hanesbrands Inc., Berkshire
Hathaway Inc. through its subsidiaries Fruit of the Loom, Inc. and Russell
Corporation, Delta Apparel, Inc., and Anvil Knitwear, Inc. The competition in
the European wholesale imprinted activewear market is similar to that in North
America, as we compete primarily with the European divisions of the larger
U.S.-based manufacturers. </p>
<p align="justify">Due to wholesaler and retailer consolidation, the customer
base to which we sell and are targeting to sell our products is composed of a
relatively small number of significant customers. </p>
<p ALIGN="JUSTIFY">While the majority of our sales is currently derived from the
sale of activewear through the wholesale distribution channel, in 2006 we
continued to expand our entry into the retail channel, concentrating on regional
retailers that we were able to service well with the production capacity that we
had available. During fiscal 2007, we continued to expand programs with regional
retailers. In March 2007, we began shipments of our first branded sock program
to a U.S. national retailer and in June 2007, we began shipments of a major
private label sock program to a second U.S. national mass-market retailer. As we
ramp up our major capacity expansion projects in Central America, we are
increasingly better positioned to service major mass-market retailers. We
believe that providing a value proposition predicated on reliable product
quality and comfort, combined with efficient customer service and competitive
pricing, the same factors that contribute to our success in the wholesale
channel, will allow us to be successful in leveraging the same business model in
the retail channel. </p>
<p>We believe that growth for our activewear products has been driven by several
market trends such as the following: </p>
<ul>
  <li>
<p style="margin-top: 0; margin-bottom: 0">continued use of activewear for event merchandising (such as
concerts, festivals, etc.); </p>
  </li>
  <li>
<p style="margin-top: 0; margin-bottom: 0">continued evolution of the entertainment/sports licensing and
merchandising businesses; </p>
  </li>
  <li>
<p style="margin-top: 0; margin-bottom: 0">the growing use of activewear for uniform applications; </p>
  </li>
  <li>
<p style="margin-top: 0; margin-bottom: 0">the growing use of activewear for corporate promotions; </p>
  </li>
  <li>
<p style="margin-top: 0; margin-bottom: 0">continued increase in use of activewear products for travel and
tourism; </p>
  </li>
  <li>
<p style="margin-top: 0; margin-bottom: 0">an increased emphasis on physical fitness; and </p>
  </li>
  <li>
<p style="margin-top: 0; margin-bottom: 0">a greater use and acceptance of casual dress in the workplace. </p>
  </li>
</ul>
<p ALIGN="JUSTIFY">In addition, 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>
<table CELLSPACING="0" BORDER="0" WIDTH="100%" cellpadding="0" style="border-collapse: collapse" bordercolor="#111111">
  <tr>
    <td style="border-bottom-style: solid; border-bottom-width: 1">
    <font FACE="Arial MT" SIZE="3" color="#3988C1">Strategy and Financial
    Objectives</font></td>
  </tr>
</table>
<p ALIGN="JUSTIFY">We believe that our success in developing our
vertically-integrated manufacturing hubs has allowed us to deliver superior
value to our customers with low prices, consistent product quality and a
reliable supply chain, and has been the main reason that we have been able to
rapidly increase our market presence and establish our market leadership in the
imprinted sportswear market. These are the same factors that management believes
will support Gildan's success in building a consumer brand in the retail
channel. </p>
<p>We are able to price our products competitively because of our success in
reducing operating costs. We accomplish this by: </p>
<ul>
  <li>
<p style="margin-top: 0; margin-bottom: 0">investing in modern, automated equipment and facilities; </p>
  </li>
  <li>
<p style="margin-top: 0; margin-bottom: 0">increasing our capacity through the development of integrated regional hubs in
Central America and the Caribbean Basin, where we benefit from strategic
locations and favourable international trade agreements; and <br>
&nbsp;</p>
  </li>
</ul>
</font>
<table CELLSPACING="0" BORDER="0" WIDTH="100%" cellpadding="0" style="border-collapse: collapse" bordercolor="#111111">
  <tr>
    <td><font FACE="Times New Roman PS" SIZE="2"><i>
    <p align="right">GILDAN QUARTERLY REPORT &#150; Q3 2007 p.4</i></font></td>
  </tr>
</table>
<hr color="#000000" size="5"><p Style='page-break-before:always'>
<table CELLSPACING="0" BORDER="0" WIDTH="100%" cellpadding="0" style="border-collapse: collapse" bordercolor="#111111">
  <tr>
    <td width="475">
    <img border="0" src="gildansmlogo.jpg" width="88" height="20"></td>
    <td width="483" align="right"><font FACE="Times New Roman PS" SIZE="2"><i>
    MANAGEMENT'S DISCUSSION AND ANALYSIS</i></font></td>
  </tr>
</table>
<font SIZE="2">
<ul>
  <li>focusing on producing a narrow range of basic, high-volume
product-lines, which allows us to maximize production efficiencies. </li>
</ul>
<p ALIGN="JUSTIFY">We are implementing a five-year plan with the objective of
approximately tripling our unit sales volumes by 2010 and continuing to achieve
significant manufacturing efficiencies. Our growth strategy comprises the
following four initiatives: </p>
<ol>
  <li>Continue to increase market share in the U.S. wholesale imprinted
  sportswear market in all product categories; </li>
  <li>Leverage our successful business model to penetrate the mass-market retail
  channel and develop Gildan as a consumer brand; </li>
  <li>Increase penetration in Europe and other international markets; and </li>
  <li>Support unit sales growth and maintain pricing competitiveness through
  continued significant investments in low-cost production capacity. </li>
</ol>
<p ALIGN="JUSTIFY">We are subject to a variety of business risks that may affect
our ability to maintain our current market share and profitability, as well as
our ability to achieve our long-term strategic objectives. These risks are
described in the &quot;Risks and Uncertainties&quot; section of our 2006 Annual MD&amp;A. As
well, the nature of the Company's growth strategy involves risks related to
certain assumptions underlying unit sales growth, production capacity growth and
cost reductions, among others. Notably, our planned growth in market share
depends to a significant extent on the successful start-up and ramp-up of new
offshore facilities. There can be no assurances that we will achieve our planned
market share growth, retail market penetration or capacity increases. </p>
<b>
<table CELLSPACING="0" BORDER="0" WIDTH="100%" cellpadding="0" style="border-collapse: collapse" bordercolor="#111111">
  <tr>
    <td style="border-bottom-style: solid; border-bottom-width: 1">
    <font FACE="Arial MT" SIZE="3" color="#3988C1">Operating Results</font></td>
  </tr>
</table>
<p>Non-GAAP Financial Measures </p>
</b>
<p ALIGN="JUSTIFY">We use non-GAAP measures to assess our operating performance.
Securities regulations require that companies caution readers that earnings and
other measures adjusted to a basis other than GAAP do not have standardized
meanings and are unlikely to be comparable to similar measures used by other
companies. Accordingly, they should not be considered in isolation. We use non-GAAP
measures such as adjusted net earnings, adjusted diluted EPS, EBITDA, and total
indebtedness and net indebtedness to measure our performance from one period to
the next without the variation caused by certain adjustments that could
potentially distort the analysis of trends in our operating performance, and
because we believe such measures provide meaningful information on the Company's
financial condition and operating results. </p>
<p ALIGN="JUSTIFY">We refer the reader to page 15 for the definition and
complete reconciliation of all non-GAAP financial measures used and presented by
the Company to the most directly comparable GAAP financial measures. </p>
<b>
<p>Summary of Quarterly Results </p>
</b>
<p ALIGN="JUSTIFY">The following table sets forth certain summarized unaudited
quarterly financial data for the eight (8) most recently completed quarters.
This quarterly information is unaudited but has been prepared on the same basis
as the annual audited Consolidated Financial Statements. The operating results
for any quarter are not necessarily indicative of the results to be expected for
any future period. </p>
<p style="text-indent: -12; margin-left: 12; margin-top: 0; margin-bottom: 0">&nbsp;</p>
</font>
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  <tr>
    <td><font FACE="Times New Roman PS" SIZE="2"><i>
    <p align="right">GILDAN QUARTERLY REPORT &#150; Q3 2007 p.5</i></font></td>
  </tr>
</table>
<hr color="#000000" size="5"><p Style='page-break-before:always'>
<table CELLSPACING="0" BORDER="0" WIDTH="100%" cellpadding="0" style="border-collapse: collapse" bordercolor="#111111">
  <tr>
    <td width="475">
    <img border="0" src="gildansmlogo.jpg" width="88" height="20"></td>
    <td width="483" align="right"><font FACE="Times New Roman PS" SIZE="2"><i>
    MANAGEMENT'S DISCUSSION AND ANALYSIS</i></font></td>
  </tr>
  <tr>
    <td width="475">&nbsp;</td>
    <td width="483" align="right">&nbsp;</td>
  </tr>
</table>
<table CELLSPACING="0" BORDER="0" WIDTH="100%" cellpadding="0" style="border-collapse: collapse" bordercolor="#111111">
  <tr>
    <td WIDTH="28%" style="border-bottom: 1px solid #000000">&nbsp;</td>
    <td WIDTH="9%" align="right" style="border-bottom: 1px solid #000000">
    <p style="margin-right: 6">&nbsp;</td>
    <td WIDTH="9%" align="right" style="border-bottom: 1px solid #000000">
    <p style="margin-right: 6">&nbsp;</td>
    <td WIDTH="9%" align="right" style="border-right-style: solid; border-right-width: 1; border-bottom: 1px solid #000000">
    <p style="margin-right: 6">
    <font SIZE="2">2007</font></td>
    <td WIDTH="9%" align="right" style="border-left-style: solid; border-left-width: 1; border-bottom: 1px solid #000000">
    <p style="margin-right: 6">&nbsp;</td>
    <td WIDTH="9%" align="right" style="border-bottom: 1px solid #000000">
    <p style="margin-right: 6">&nbsp;</td>
    <td WIDTH="9%" align="right" style="border-bottom: 1px solid #000000">
    <p style="margin-right: 6">&nbsp;</td>
    <td WIDTH="9%" align="right" style="border-right-style: solid; border-right-width: 1; border-bottom: 1px solid #000000">
    <p style="margin-right: 6">
    <font SIZE="2">2006</font></td>
    <td WIDTH="9%" align="right" style="border-left-style: solid; border-left-width: 1; border-right-style: solid; border-right-width: 1; border-bottom: 1px solid #000000">
    <p style="margin-right: 6">
    <font SIZE="2">2005</font></td>
  </tr>
  <tr>
    <td WIDTH="28%" style="border-bottom: 1px solid #000000"><font SIZE="2"><i>
    (in $ millions, except per share amounts)</i></font></td>
    <td WIDTH="9%" align="right" style="border-bottom: 1px solid #000000">
    <p style="margin-right: 6">
    <font SIZE="2">Q3</font></td>
    <td WIDTH="9%" align="right" style="border-bottom: 1px solid #000000">
    <p style="margin-right: 6">
    <font SIZE="2">Q2</font></td>
    <td WIDTH="9%" align="right" style="border-bottom: 1px solid #000000; border-right-style:solid; border-right-width:1">
    <p style="margin-right: 6">
    <font SIZE="2">Q1</font></td>
    <td WIDTH="9%" align="right" style="border-bottom: 1px solid #000000; border-left-style:solid; border-left-width:1">
    <p style="margin-right: 6">
    <font SIZE="2">Q4</font></td>
    <td WIDTH="9%" align="right" style="border-bottom: 1px solid #000000">
    <p style="margin-right: 6">
    <font SIZE="2">Q3</font></td>
    <td WIDTH="9%" align="right" style="border-bottom: 1px solid #000000">
    <p style="margin-right: 6">
    <font SIZE="2">Q2</font></td>
    <td WIDTH="9%" align="right" style="border-bottom: 1px solid #000000; border-right-style:solid; border-right-width:1">
    <p style="margin-right: 6">
    <font SIZE="2">Q1</font></td>
    <td WIDTH="9%" align="right" style="border-bottom: 1px solid #000000; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1">
    <p style="margin-right: 6">
    <font SIZE="2">Q4</font></td>
  </tr>
  <tr>
    <td WIDTH="28%"><font SIZE="2">Sales</font></td>
    <td WIDTH="9%" align="right">
    <p style="margin-right: 6"><font SIZE="2">291.6</font></td>
    <td WIDTH="9%" align="right">
    <p style="margin-right: 6"><font SIZE="2">232.1</font></td>
    <td WIDTH="9%" align="right">
    <p style="margin-right: 6"><font SIZE="2">185.8</font></td>
    <td WIDTH="9%" align="right">
    <p style="margin-right: 6"><font SIZE="2">235.2</font></td>
    <td WIDTH="9%" align="right">
    <p style="margin-right: 6"><font SIZE="2">233.9</font></td>
    <td WIDTH="9%" align="right">
    <p style="margin-right: 6"><font SIZE="2">183.8</font></td>
    <td WIDTH="9%" align="right">
    <p style="margin-right: 6"><font SIZE="2">120.3</font></td>
    <td WIDTH="9%" align="right">
    <p style="margin-right: 6"><font SIZE="2">180.7</font></td>
  </tr>
  <tr>
    <td WIDTH="28%"><font SIZE="2">Net earnings</font></td>
    <td WIDTH="9%" align="right">
    <p style="margin-right: 6"><font SIZE="2">52.4</font></td>
    <td WIDTH="9%" align="right">
    <p style="margin-right: 6"><font SIZE="2">21.1</font></td>
    <td WIDTH="9%" align="right">
    <p style="margin-right: 6"><font SIZE="2">15.6</font></td>
    <td WIDTH="9%" align="right">
    <p style="margin-right: 6"><font SIZE="2">16.8</font></td>
    <td WIDTH="9%" align="right">
    <p style="margin-right: 6"><font SIZE="2">42.8</font></td>
    <td WIDTH="9%" align="right">
    <p style="margin-right: 6"><font SIZE="2">31.0</font></td>
    <td WIDTH="9%" align="right">
    <p style="margin-right: 6"><font SIZE="2">16.2</font></td>
    <td WIDTH="9%" align="right">
    <p style="margin-right: 6"><font SIZE="2">29.2</font></td>
  </tr>
  <tr>
    <td WIDTH="28%"><font SIZE="2">Net earnings per share</font></td>
    <td WIDTH="9%" align="right">
    <p style="margin-right: 6">&nbsp;</td>
    <td WIDTH="9%" align="right">
    <p style="margin-right: 6">&nbsp;</td>
    <td WIDTH="9%" align="right">
    <p style="margin-right: 6">&nbsp;</td>
    <td WIDTH="9%" align="right">
    <p style="margin-right: 6">&nbsp;</td>
    <td WIDTH="9%" align="right">
    <p style="margin-right: 6">&nbsp;</td>
    <td WIDTH="9%" align="right">
    <p style="margin-right: 6">&nbsp;</td>
    <td WIDTH="9%" align="right">
    <p style="margin-right: 6">&nbsp;</td>
    <td WIDTH="9%" align="right">
    <p style="margin-right: 6">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="28%"><font SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    Basic EPS</font></td>
    <td WIDTH="9%" align="right">
    <p style="margin-right: 6"><font SIZE="2">0.44</font></td>
    <td WIDTH="9%" align="right">
    <p style="margin-right: 6"><font SIZE="2">0.18</font></td>
    <td WIDTH="9%" align="right">
    <p style="margin-right: 6"><font SIZE="2">0.13</font></td>
    <td WIDTH="9%" align="right">
    <p style="margin-right: 6"><font SIZE="2">0.14</font></td>
    <td WIDTH="9%" align="right">
    <p style="margin-right: 6"><font SIZE="2">0.36</font></td>
    <td WIDTH="9%" align="right">
    <p style="margin-right: 6"><font SIZE="2">0.26</font></td>
    <td WIDTH="9%" align="right">
    <p style="margin-right: 6"><font SIZE="2">0.14</font></td>
    <td WIDTH="9%" align="right">
    <p style="margin-right: 6"><font SIZE="2">0.24</font></td>
  </tr>
  <tr>
    <td WIDTH="28%"><font SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    Diluted EPS</font></td>
    <td WIDTH="9%" align="right">
    <p style="margin-right: 6"><font SIZE="2">0.43</font></td>
    <td WIDTH="9%" align="right">
    <p style="margin-right: 6"><font SIZE="2">0.17</font></td>
    <td WIDTH="9%" align="right">
    <p style="margin-right: 6"><font SIZE="2">0.13</font></td>
    <td WIDTH="9%" align="right">
    <p style="margin-right: 6"><font SIZE="2">0.14</font></td>
    <td WIDTH="9%" align="right">
    <p style="margin-right: 6"><font SIZE="2">0.35</font></td>
    <td WIDTH="9%" align="right">
    <p style="margin-right: 6"><font SIZE="2">0.26</font></td>
    <td WIDTH="9%" align="right">
    <p style="margin-right: 6"><font SIZE="2">0.13</font></td>
    <td WIDTH="9%" align="right">
    <p style="margin-right: 6"><font SIZE="2">0.24</font></td>
  </tr>
  <tr>
    <td WIDTH="28%"><font SIZE="2">Total assets</font></td>
    <td WIDTH="9%" align="right">
    <p style="margin-right: 6"><font SIZE="2">825.0</font></td>
    <td WIDTH="9%" align="right">
    <p style="margin-right: 6"><font SIZE="2">795.6</font></td>
    <td WIDTH="9%" align="right">
    <p style="margin-right: 6"><font SIZE="2">715.8</font></td>
    <td WIDTH="9%" align="right">
    <p style="margin-right: 6"><font SIZE="2">723.3</font></td>
    <td WIDTH="9%" align="right">
    <p style="margin-right: 6"><font SIZE="2">673.1</font></td>
    <td WIDTH="9%" align="right">
    <p style="margin-right: 6"><font SIZE="2">643.8</font></td>
    <td WIDTH="9%" align="right">
    <p style="margin-right: 6"><font SIZE="2">609.6</font></td>
    <td WIDTH="9%" align="right">
    <p style="margin-right: 6"><font SIZE="2">597.5</font></td>
  </tr>
  <tr>
    <td WIDTH="28%"><font SIZE="2">Total long-term financial liabilities<sup>1</sup></font></td>
    <td WIDTH="9%" align="right">
    <p style="margin-right: 6"><font SIZE="2">73.5</font></td>
    <td WIDTH="9%" align="right">
    <p style="margin-right: 6"><font SIZE="2">88.4</font></td>
    <td WIDTH="9%" align="right">
    <p style="margin-right: 6"><font SIZE="2">44.2</font></td>
    <td WIDTH="9%" align="right">
    <p style="margin-right: 6"><font SIZE="2">47.1</font></td>
    <td WIDTH="9%" align="right">
    <p style="margin-right: 6"><font SIZE="2">46.4</font></td>
    <td WIDTH="9%" align="right">
    <p style="margin-right: 6"><font SIZE="2">64.8</font></td>
    <td WIDTH="9%" align="right">
    <p style="margin-right: 6"><font SIZE="2">65.4</font></td>
    <td WIDTH="9%" align="right">
    <p style="margin-right: 6"><font SIZE="2">64.1</font></td>
  </tr>
  <tr>
    <td WIDTH="28%"><font SIZE="2">Average number of shares</font></td>
    <td WIDTH="9%" align="right">
    <p style="margin-right: 6">&nbsp;</td>
    <td WIDTH="9%" align="right">
    <p style="margin-right: 6">&nbsp;</td>
    <td WIDTH="9%" align="right">
    <p style="margin-right: 6">&nbsp;</td>
    <td WIDTH="9%" align="right">
    <p style="margin-right: 6">&nbsp;</td>
    <td WIDTH="9%" align="right">
    <p style="margin-right: 6">&nbsp;</td>
    <td WIDTH="9%" align="right">
    <p style="margin-right: 6">&nbsp;</td>
    <td WIDTH="9%" align="right">
    <p style="margin-right: 6">&nbsp;</td>
    <td WIDTH="9%" align="right">
    <p style="margin-right: 6">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="28%"><font SIZE="2">&nbsp; outstanding <i>(in thousands)</i></font></td>
    <td WIDTH="9%" align="right">
    <p style="margin-right: 6">&nbsp;</td>
    <td WIDTH="9%" align="right">
    <p style="margin-right: 6">&nbsp;</td>
    <td WIDTH="9%" align="right">
    <p style="margin-right: 6">&nbsp;</td>
    <td WIDTH="9%" align="right">
    <p style="margin-right: 6">&nbsp;</td>
    <td WIDTH="9%" align="right">
    <p style="margin-right: 6">&nbsp;</td>
    <td WIDTH="9%" align="right">
    <p style="margin-right: 6">&nbsp;</td>
    <td WIDTH="9%" align="right">
    <p style="margin-right: 6">&nbsp;</td>
    <td WIDTH="9%" align="right">
    <p style="margin-right: 6">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="28%"><font SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    Basic</font></td>
    <td WIDTH="9%" align="right">
    <p style="margin-right: 6"><font SIZE="2">120,359</font></td>
    <td WIDTH="9%" align="right">
    <p style="margin-right: 6"><font SIZE="2">120,320</font></td>
    <td WIDTH="9%" align="right">
    <p style="margin-right: 6"><font SIZE="2">120,278</font></td>
    <td WIDTH="9%" align="right">
    <p style="margin-right: 6"><font SIZE="2">120,209</font></td>
    <td WIDTH="9%" align="right">
    <p style="margin-right: 6"><font SIZE="2">120,155</font></td>
    <td WIDTH="9%" align="right">
    <p style="margin-right: 6"><font SIZE="2">120,108</font></td>
    <td WIDTH="9%" align="right">
    <p style="margin-right: 6"><font SIZE="2">119,941</font></td>
    <td WIDTH="9%" align="right">
    <p style="margin-right: 6"><font SIZE="2">119,848</font></td>
  </tr>
  <tr>
    <td WIDTH="28%" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    Diluted</font></td>
    <td WIDTH="9%" align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <p style="margin-right: 6">
    <font SIZE="2">121,599</font></td>
    <td WIDTH="9%" align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <p style="margin-right: 6">
    <font SIZE="2">121,529</font></td>
    <td WIDTH="9%" align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <p style="margin-right: 6">
    <font SIZE="2">121,447</font></td>
    <td WIDTH="9%" align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <p style="margin-right: 6">
    <font SIZE="2">121,340</font></td>
    <td WIDTH="9%" align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <p style="margin-right: 6">
    <font SIZE="2">121,254</font></td>
    <td WIDTH="9%" align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <p style="margin-right: 6">
    <font SIZE="2">121,294</font></td>
    <td WIDTH="9%" align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <p style="margin-right: 6">
    <font SIZE="2">121,119</font></td>
    <td WIDTH="9%" align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <p style="margin-right: 6">
    <font SIZE="2">120,828</font></td>
  </tr>
</table>
<font style="font-size: 9pt"><i><sup>
<p>1 </sup>Represents sum of long-term debt, future income taxes and
non-controlling interest. <br>
All earnings per share and share data are stated after the May 2007 stock split.</p>
</i></font><font SIZE="2">
<p ALIGN="JUSTIFY">The activewear business is seasonal and we have historically
experienced quarterly fluctuations in operating results. Typically, demand for
our T-shirts 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. Demand for fleece is typically highest
in the third and fourth quarters of each fiscal year. The seasonality of
specific product-lines is consistent with that experienced by other companies in
the activewear industry. As a result of the historical seasonal sales trends, 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. For our sock products, demand is typically highest in the first and
fourth quarters of each fiscal year, stimulated largely by the need to support
requirements for the back-to-school period and peak retail selling during the
Christmas holiday season. Management anticipates that the seasonality we have
historically experienced will continue in the future, although it is expected to
be somewhat mitigated by our product diversification. </p>
<p align="justify">Material restructuring and other charges impacted net
earnings in the second and third quarters of fiscal 2007 and the fourth quarter
of fiscal 2006 as discussed on page 7. </p>
<b>
<p>Sales </p>
</b>
<p ALIGN="JUSTIFY">Sales of $291.6 million for the three months ended July 1,
2007 grew 24.7% from $233.9 million in the third quarter of fiscal 2006. The
increase in sales was due to $30.5 million of sock sales pursuant to the
acquisition of Kentucky Derby and an 11.6% increase in unit sales volumes for
activewear, partially offset by a slight reduction in unit selling prices for
activewear of approximately 0.5% compared to the same period last year. For the
nine months ended July 1, 2007, sales were $709.6 million, up 31.9% compared to
the same period last year. The growth in sales reflected $105.9 million of sock
sales, an increase of 12.2% in unit sales volumes for activewear and a
higher-valued activewear product-mix, partially offset by a decrease in unit
selling prices for activewear compared to the same period last year. Excluding
the sock product-line, sales were up 11.6% for the third quarter of fiscal 2007
and 12.2% on a year-to-date basis compared to the same periods of fiscal 2006.
</p>
<p ALIGN="JUSTIFY">Market growth and share data presented for the U.S. wholesale
distributor channel is based on the S.T.A.R.S. Report produced by ACNielsen
Market Decisions. The table below summarizes the S.T.A.R.S. data for market
shares and industry growth in the U.S. distributor channel for the quarter ended
June 30, 2007:<b> </p>
</b></font>
<table CELLSPACING="0" BORDER="0" WIDTH="100%" cellpadding="0" style="border-collapse: collapse" bordercolor="#111111">
  <tr>
    <td WIDTH="20%">&nbsp;</td>
    <td WIDTH="40%" COLSPAN="2" align="right"><font SIZE="2"><b>Three months
    ended June 30</b></font></td>
    <td WIDTH="40%" COLSPAN="2" align="right"><font SIZE="2"><b>Three months
    ended June 30</b></font></td>
  </tr>
  <tr>
    <td WIDTH="20%" style="border-bottom: 1px solid #000000">&nbsp;</td>
    <td WIDTH="19%" align="right" style="border-bottom: 1px solid #000000">&nbsp;</td>
    <td WIDTH="20%" align="right" style="border-bottom: 1px solid #000000">
    <font SIZE="2"><b>2007 vs 2006</b></font></td>
    <td WIDTH="20%" align="right" style="border-bottom: 1px solid #000000">
    <font SIZE="2"><b>2007</b></font></td>
    <td WIDTH="20%" align="right" style="border-bottom: 1px solid #000000">
    <font SIZE="2"><b>2006</b></font></td>
  </tr>
  <tr>
    <td WIDTH="20%" style="border-bottom: 1px solid #000000">&nbsp;</td>
    <td WIDTH="40%" COLSPAN="2" align="right" style="border-bottom: 1px solid #000000">
    <font SIZE="2"><b>Unit Growth&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </b></font></td>
    <td WIDTH="40%" COLSPAN="2" align="right" style="border-bottom: 1px solid #000000">
    <font SIZE="2"><b>Market Share&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </b></font></td>
  </tr>
  <tr>
    <td WIDTH="20%" style="border-bottom: 1px solid #000000">&nbsp;</td>
    <td WIDTH="19%" align="right" style="border-bottom: 1px solid #000000">
    <font SIZE="2"><b>Gildan</b></font></td>
    <td WIDTH="20%" align="right" style="border-bottom: 1px solid #000000">
    <font SIZE="2"><b>Industry</b></font></td>
    <td WIDTH="20%" align="right" style="border-bottom: 1px solid #000000">
    <font SIZE="2"><b>Gildan</b></font></td>
    <td WIDTH="20%" align="right" style="border-bottom: 1px solid #000000">
    <font SIZE="2"><b>Gildan</b></font></td>
  </tr>
  <tr>
    <td WIDTH="20%"><font SIZE="2">All Products</font></td>
    <td WIDTH="19%" align="right"><font SIZE="2">13.9%</font></td>
    <td WIDTH="20%" align="right"><font SIZE="2">3.0%</font></td>
    <td WIDTH="20%" align="right"><font SIZE="2"><b>47.6%</b></font></td>
    <td WIDTH="20%" align="right"><font SIZE="2">43.6%</font></td>
  </tr>
  <tr>
    <td WIDTH="20%"><font SIZE="2">T-shirts</font></td>
    <td WIDTH="19%" align="right"><font SIZE="2">13.4%</font></td>
    <td WIDTH="20%" align="right"><font SIZE="2">3.0%</font></td>
    <td WIDTH="20%" align="right"><font SIZE="2"><b>48.3%</b></font></td>
    <td WIDTH="20%" align="right"><font SIZE="2">44.5%</font></td>
  </tr>
  <tr>
    <td WIDTH="20%"><font SIZE="2">Fleece</font></td>
    <td WIDTH="19%" align="right"><font SIZE="2">57.9%</font></td>
    <td WIDTH="20%" align="right"><font SIZE="2">17.4%</font></td>
    <td WIDTH="20%" align="right"><font SIZE="2"><b>42.2%</b></font></td>
    <td WIDTH="20%" align="right"><font SIZE="2">32.3%</font></td>
  </tr>
  <tr>
    <td WIDTH="20%" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2">Sport shirts</font></td>
    <td WIDTH="19%" align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2">3.6%</font></td>
    <td WIDTH="20%" align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2">(3.6)%</font></td>
    <td WIDTH="20%" align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2"><b>34.0%</b></font></td>
    <td WIDTH="20%" align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2">32.7%</font></td>
  </tr>
</table>
<font SIZE="2">
<p style="text-indent: -12; margin-left: 12; margin-top: 0; margin-bottom: 0">&nbsp;</p>
</font>
<table CELLSPACING="0" BORDER="0" WIDTH="100%" cellpadding="0" style="border-collapse: collapse" bordercolor="#111111">
  <tr>
    <td><font FACE="Times New Roman PS" SIZE="2"><i>
    <p align="right">GILDAN QUARTERLY REPORT &#150; Q3 2007 p.6</i></font></td>
  </tr>
</table>
<hr color="#000000" size="5"><p Style='page-break-before:always'>
<table CELLSPACING="0" BORDER="0" WIDTH="100%" cellpadding="0" style="border-collapse: collapse" bordercolor="#111111">
  <tr>
    <td width="475">
    <img border="0" src="gildansmlogo.jpg" width="88" height="20"></td>
    <td width="483" align="right"><font FACE="Times New Roman PS" SIZE="2"><i>
    MANAGEMENT'S DISCUSSION AND ANALYSIS</i></font></td>
  </tr>
</table>
<font SIZE="2">
<p ALIGN="JUSTIFY">The growth in activewear unit sales was primarily due to
continuing market share penetration in all product categories in the U.S.
distributor channel. Growth in overall industry shipments from U.S. distributors
to screenprinters in the June quarter was 3.0%. In the T-shirt category, we grew
unit volumes by 13.4% for the three months ended June 30, 2007 compared to the
same period last year, and increased our leading share in this category to
48.3%. In the fleece category, our volume growth of 57.9% significantly exceeded
that of the industry, and our leading market share increased to 42.2%. We
increased our leading brand position in sport shirts by achieving a 34.0% market
share, and our volume grew in this segment by 3.6%, compared with an overall
decline of 3.6% for the industry. </p>
<p align="justify">Growth in Gildan's activewear sales in international markets
in the third quarter was strong. In particular, unit shipments in Europe
increased 26.8% compared with the third quarter of fiscal 2006. </p>
<p align="justify">In June, we began shipment of a major private label sock
program to a large national retailer. </p>
<b>
<p>Gross Profit </p>
</b>
<p ALIGN="JUSTIFY">Gross profit for the third quarter of fiscal 2007 was $94.4
million, or 32.4% of sales, compared to $75.7 million, or 32.4% of sales in the
third quarter of fiscal 2006. Higher margins for activewear were offset by the
impact of margins from the sale of socks, which do not yet reflect the cost
synergies from the rationalization of our sock manufacturing operations. Our
major new branded and private label retail sock programs have been priced based
on the ramped-up cost structure for our new Honduran sock facility. However, in
the third quarter, a large proportion of socks for these programs continued to
be supplied from U.S. sock manufacturing facilities, which as previously
announced, will be closed by the end of August 2007, as well as from high-cost
outside contractors. We expect to achieve significant improvement in gross
margins for our sock product-line as we progress with the ramp-up of our new
state-of-the-art sock manufacturing facility in Honduras. Excluding the impact
of sock sales, gross margins in the third quarter of fiscal 2007 were 34.7%
compared to gross margins of 32.4% for the same period last year. The increase
in gross margins for activewear compared to last year was due to further
manufacturing efficiencies, partially offset by lower selling prices and higher
cotton costs. </p>
<p ALIGN="JUSTIFY">For the first nine months of fiscal 2007, gross margins of
32.0% were down from 33.5% in the same period last year due to the impact of
margins from the sale of socks. Excluding the impact of the sock sales, gross
margins for activewear increased to 35.1%. This increase was due to
manufacturing efficiency gains for the period and a more favourable product mix,
which more than offset higher cotton costs, a reduction in unit selling prices
and the non-recurrence of a $1.1 million reversal of a litigation reserve which
positively impacted gross margins in the second quarter of fiscal 2006. </p>
<b>
<p>Selling, General and Administrative Expenses </p>
</b>
<p ALIGN="JUSTIFY">Selling, general and administrative (SG&amp;A) expenses in the
third quarter were $28.4 million, or 9.7% of sales, compared to $22.0 million,
or 9.4% of sales, in the third quarter of last year. For the nine months ended
July 1, 2007, SG&amp;A expenses were $83.1 million, or 11.7% of sales, compared to
$60.7 million, or 11.3% of sales for the same period of fiscal 2006. The
increase in SG&amp;A expenses was due to the impact of the acquisition of Kentucky
Derby, higher distribution costs, and increased administration and information
technology costs to support our continuing growth. SG&amp;A expenses for the first
nine months of fiscal 2007 also included a $1.1 million charge in the first
quarter of fiscal 2007 for the replacement of the aircraft leased by the
Company. </font><b></p>
<font SIZE="2">
<p>Restructuring and Other Charges </p>
</font></b><font SIZE="2">
<p>The following table summarizes the components of restructuring and other
charges: </p>
</font>
<table CELLSPACING="0" BORDER="0" WIDTH="100%" cellpadding="0" style="border-collapse: collapse" bordercolor="#111111">
  <tr>
    <td WIDTH="38%" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2"><i>(in $ millions)</i></font></td>
    <td WIDTH="15%" align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2"><b>
    <p style="margin-right: 8">Q3 2007</b></font></td>
    <td WIDTH="15%" align="right" style="border-bottom-style: solid; border-bottom-width: 1" bgcolor="#CCFFFF">
    <font SIZE="2">
    <p style="margin-right: 8">Q3 2006</font></td>
    <td WIDTH="16%" align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2"><b>
    <p style="margin-right: 8">YTD 2007</b></font></td>
    <td WIDTH="16%" align="right" style="border-bottom-style: solid; border-bottom-width: 1" bgcolor="#CCFFFF">
    <font SIZE="2">
    <p style="margin-right: 8">YTD 2006</font></td>
  </tr>
  <tr>
    <td WIDTH="38%" style="border-top-style: solid; border-top-width: 1">
    <font SIZE="2">Accelerated depreciation (a)</font></td>
    <td WIDTH="15%" align="right" style="border-top-style: solid; border-top-width: 1">
    <font SIZE="2"><b>
    <p style="margin-right: 8">0.8</b></font></td>
    <td WIDTH="15%" align="right" style="border-top-style: solid; border-top-width: 1" bgcolor="#CCFFFF">
    <font SIZE="2">
    <p style="margin-right: 8">-</font></td>
    <td WIDTH="16%" align="right" style="border-top-style: solid; border-top-width: 1">
    <font SIZE="2"><b>
    <p style="margin-right: 8">2.9</b></font></td>
    <td WIDTH="16%" align="right" style="border-top-style: solid; border-top-width: 1" bgcolor="#CCFFFF">
    <font SIZE="2">
    <p style="margin-right: 8">-</font></td>
  </tr>
  <tr>
    <td WIDTH="38%"><font SIZE="2">Gain on disposal of assets held for sale (b)</font></td>
    <td WIDTH="15%" align="right"><font SIZE="2"><b>
    <p style="margin-right: 4">(0.1)</b></font></td>
    <td WIDTH="15%" align="right" bgcolor="#CCFFFF"><font SIZE="2">
    <p style="margin-right: 8">-</font></td>
    <td WIDTH="16%" align="right"><font SIZE="2"><b>
    <p style="margin-right: 4">(1.9)</b></font></td>
    <td WIDTH="16%" align="right" bgcolor="#CCFFFF"><font SIZE="2">
    <p style="margin-right: 8">-</font></td>
  </tr>
  <tr>
    <td WIDTH="38%"><font SIZE="2">Asset impairment loss (c)</font></td>
    <td WIDTH="15%" align="right"><font SIZE="2"><b>
    <p style="margin-right: 8">-</b></font></td>
    <td WIDTH="15%" align="right" bgcolor="#CCFFFF"><font SIZE="2">
    <p style="margin-right: 8">-</font></td>
    <td WIDTH="16%" align="right"><font SIZE="2"><b>
    <p style="margin-right: 8">3.6</b></font></td>
    <td WIDTH="16%" align="right" bgcolor="#CCFFFF"><font SIZE="2">
    <p style="margin-right: 8">-</font></td>
  </tr>
  <tr>
    <td WIDTH="38%"><font SIZE="2">Severance (c)</font></td>
    <td WIDTH="15%" align="right"><font SIZE="2"><b>
    <p style="margin-right: 8">1.2</b></font></td>
    <td WIDTH="15%" align="right" bgcolor="#CCFFFF"><font SIZE="2">
    <p style="margin-right: 8">-</font></td>
    <td WIDTH="16%" align="right"><font SIZE="2"><b>
    <p style="margin-right: 8">13.3</b></font></td>
    <td WIDTH="16%" align="right" bgcolor="#CCFFFF"><font SIZE="2">
    <p style="margin-right: 8">-</font></td>
  </tr>
  <tr>
    <td WIDTH="38%" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2">Other (d)</font></td>
    <td WIDTH="15%" align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2"><b>
    <p style="margin-right: 8">2.7</b></font></td>
    <td WIDTH="15%" align="right" style="border-bottom-style: solid; border-bottom-width: 1" bgcolor="#CCFFFF">
    <font SIZE="2">
    <p style="margin-right: 8">-</font></td>
    <td WIDTH="16%" align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2"><b>
    <p style="margin-right: 8">4.4</b></font></td>
    <td WIDTH="16%" align="right" style="border-bottom-style: solid; border-bottom-width: 1" bgcolor="#CCFFFF">
    <font SIZE="2">
    <p style="margin-right: 8">-</font></td>
  </tr>
  <tr>
    <td WIDTH="38%" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 2">
    <font SIZE="2">Restructuring and other charges</font></td>
    <td WIDTH="15%" align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 2">
    <font SIZE="2"><b>
    <p style="margin-right: 8">4.6</b></font></td>
    <td WIDTH="15%" align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 2" bgcolor="#CCFFFF">
    <font SIZE="2">
    <p style="margin-right: 8">-</font></td>
    <td WIDTH="16%" align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 2">
    <font SIZE="2"><b>
    <p style="margin-right: 8">22.3</b></font></td>
    <td WIDTH="16%" align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 2" bgcolor="#CCFFFF">
    <font SIZE="2">
    <p style="margin-right: 8">-</font></td>
  </tr>
</table>
<font style="font-size: 9pt"><i>
<p>Certain minor rounding variances exist between the financial statements and
this summary.</p>
</i></font><font SIZE="2">
<p style="text-indent: -12; margin-left: 12; margin-top: 0; margin-bottom: 0">&nbsp;</p>
</font>
<table CELLSPACING="0" BORDER="0" WIDTH="100%" cellpadding="0" style="border-collapse: collapse" bordercolor="#111111">
  <tr>
    <td><font FACE="Times New Roman PS" SIZE="2"><i>
    <p align="right">GILDAN QUARTERLY REPORT &#150; Q3 2007 p.7</i></font></td>
  </tr>
</table>
<hr color="#000000" size="5"><p Style='page-break-before:always'>
<table CELLSPACING="0" BORDER="0" WIDTH="100%" cellpadding="0" style="border-collapse: collapse" bordercolor="#111111">
  <tr>
    <td width="475">
    <img border="0" src="gildansmlogo.jpg" width="88" height="20"></td>
    <td width="483" align="right"><font FACE="Times New Roman PS" SIZE="2"><i>
    MANAGEMENT'S DISCUSSION AND ANALYSIS</i></font></td>
  </tr>
</table>
<font SIZE="2">
<p ALIGN="JUSTIFY" style="text-indent: -26; margin-left: 26">(a)&nbsp;&nbsp;&nbsp;
In September 2006, we announced a restructuring of our Canadian manufacturing
operations, involving the closure of our textile manufacturing facility in
Valleyfield, Quebec, and the downsizing of our Montreal, Quebec, knitting
facility, to take effect in December 2006. In the fourth quarter of fiscal 2006,
we recorded severance charges of $2.1 million and other exit costs of $1.6
million relating to this restructuring. In addition, during the fourth quarter
of fiscal 2006, we recorded an impairment loss of $15.1 million on all Canadian
textile and related manufacturing assets, and reduced our estimate of the
remaining economic lives of these assets. The effect of this change in estimate,
amounting to $0.8 million in the third quarter of fiscal 2007 and $2.9 million
for the first nine months of fiscal 2007, has been classified as accelerated
depreciation and included in restructuring and other charges. An additional $0.4
million of accelerated depreciation will be recorded in the fourth quarter of
fiscal 2007. </p>
<p ALIGN="JUSTIFY" style="text-indent: -26; margin-left: 26">(b)&nbsp;&nbsp;
During the fourth quarter of fiscal 2006, we announced the relocation and
consolidation of our U.S. retail distribution centres, which was completed
during the third quarter of fiscal 2007, and the closure of our Canadian
distribution centre in Montreal, Quebec, effective October 2006. We also
announced the closure and downsizing of sock manufacturing capacity located in
North Carolina and Virginia. During the second quarter of fiscal 2007, we sold
some of the assets related to these facilities and recorded a gain of $1.8
million. We sold some of the remaining assets during the third quarter of fiscal
2007 and recorded a net gain of $0.1 million. </p>
<p ALIGN="JUSTIFY" style="text-indent: -26; margin-left: 26">(c)&nbsp;&nbsp; On
March 27, 2007, we announced plans to close our two remaining textile facilities
in Montreal, Quebec, as well as our cutting facility in Bombay, N.Y., in the
fourth quarter of fiscal 2007. In addition, we closed two sewing facilities in
Mexico, which had been supplied with fabric from Gildan's Canadian textile
operations. In the third quarter and in the first nine months of fiscal 2007, we
recorded severance costs of $1.2 million and $13.3 million, respectively,
primarily relating to these plant closures. We expect to recognize additional
severance of $1.4 million in the fourth quarter of fiscal 2007. Concurrent with
the restructuring of the Canadian textile operations, we also announced plans to
relocate our corporate office, which is currently located in the same building
as our Montreal knitting facility, into leased premises in the Montreal area. In
the second quarter of fiscal 2007, we recorded a $3.6 million asset impairment
loss relating to our corporate head office facility. </p>
<p ALIGN="JUSTIFY" style="text-indent: -26; margin-left: 26">(d)&nbsp;&nbsp;
Other costs of $2.7 million for the third quarter and $4.4 million for the nine
months ended July 1, 2007 relate primarily to exit costs incurred in connection
with the closures noted above, including carrying and dismantling costs
associated with assets held for sale. Other costs also include temporary
incremental duties incurred as a result of the closure of our Mexican sewing
facilities. These duties will not be incurred after the completion of our
restructuring initiatives in the fourth quarter of fiscal 2007. We expect to
incur additional exit and duty costs relating to these closures of approximately
$2.4 million, which will be accounted for as incurred during the fourth quarter
of fiscal 2007. </p>
<b>
<p>Depreciation and Amortization </p>
</b>
<p ALIGN="JUSTIFY">Depreciation and amortization expense of $10.3 million in the
third quarter and $28.5 million for the first nine months of fiscal 2007,
reflected increases of $2.1 million and $5.2 million, respectively, compared to
the same periods last year. The increase in depreciation and amortization
expense was due to a higher capital asset base resulting from the Company's
continuing investments in capacity expansion, combined with the impact of the
Kentucky Derby acquisition. </p>
<b>
<p>Interest Expense </p>
</b>
<p ALIGN="JUSTIFY">Net interest expense for the third quarter and the first nine
months of 2007 amounted to $1.5 million and $3.5 million, respectively, up $0.7
million and $1.5 million compared to the same periods of fiscal 2006. The
increase in net interest expense reflected lower investment income and higher
borrowings during the first nine months of fiscal 2007, mainly due to the use of
funds for the acquisition of Kentucky Derby and the acceleration of the
Company's capital expenditure program. </p>
</font>
<table CELLSPACING="0" BORDER="0" WIDTH="100%" cellpadding="0" style="border-collapse: collapse" bordercolor="#111111">
  <tr>
    <td><font FACE="Times New Roman PS" SIZE="2"><i>
    <p align="right">GILDAN QUARTERLY REPORT &#150; Q3 2007 p.8</i></font></td>
  </tr>
</table>
<hr color="#000000" size="5"><p Style='page-break-before:always'>
<table CELLSPACING="0" BORDER="0" WIDTH="100%" cellpadding="0" style="border-collapse: collapse" bordercolor="#111111">
  <tr>
    <td width="475">
    <img border="0" src="gildansmlogo.jpg" width="88" height="20"></td>
    <td width="483" align="right"><font FACE="Times New Roman PS" SIZE="2"><i>
    MANAGEMENT'S DISCUSSION AND ANALYSIS</i></font></td>
  </tr>
</table>
<font SIZE="2"><b>
<p>Income Taxes </p>
</b>
<p ALIGN="JUSTIFY">During the third quarter, we recognized previously unrecorded
tax benefits in the amount of $5.7 million relating to a prior taxation year
which became statute-barred in the third quarter of fiscal 2007. Excluding the
impact of this income tax recovery, as well as the impact of restructuring and
other charges, the effective income tax rate was 4.6% for the third quarter and
4.9% for the first nine months of fiscal 2007. This compared to effective income
tax rates of 4.0% and 3.9% for the respective periods of fiscal 2006. This
increase was mainly due to higher income from our Canadian operations, which is
taxed at a higher effective income tax rate. We expect the effective income tax
rate for fiscal 2007 to be approximately 5% excluding the impact of
restructuring and other charges and excluding the impact of the income tax
recovery. </p>
<b>
<p>Net Earnings </p>
</b>
<p ALIGN="JUSTIFY">Net earnings for the third quarter were $52.4 million, or
$0.43 per share on a diluted basis (EPS), up from net earnings of $42.8 million,
or $0.35 per share on a diluted basis for the third quarter last year. Included
in net earnings were restructuring and other charges of $4.6 million, or $0.04
per share, which primarily related to the previously announced restructuring of
our manufacturing facilities. Before reflecting the restructuring and other
charges, adjusted net earnings and adjusted diluted EPS for the third quarter of
fiscal 2007 amounted to $57.0 million, or $0.47, up respectively, 33.2% and
34.3%, compared to the third quarter of fiscal 2006. The growth in EPS compared
to last year was due to higher gross margins for activewear, continuing growth
in activewear unit sales volumes, and the $0.05 per share benefit of an income
tax recovery related to a prior taxation year. These positive factors were
partially offset by increased SG&amp;A and depreciation expenses, and the continuing
dilutive impact of the acquisition of Kentucky Derby, which negatively impacted
EPS by $0.03 in the third quarter. </p>
<p ALIGN="JUSTIFY">For the first nine months of fiscal 2007, net earnings
amounted to $89.2 million, or $0.73 per share on a diluted basis compared to net
earnings of $90.0 million, or $0.74 per share for the same period last year.
Before the impact of restructuring and other charges, adjusted net earnings
increased to $111.5 million, or $0.92 per share on a diluted basis. The increase
in adjusted net earnings and adjusted diluted EPS was due to favourable
manufacturing efficiencies, growth in activewear unit sales volumes, a
higher-valued product mix and the impact of the $0.05 income tax recovery
recorded in the third quarter, partially offset by lower unit selling prices for
activewear, higher cotton costs, increased SG&amp;A and depreciation expenses and
the $0.04 per share dilutive impact of the Kentucky Derby acquisition. </p>
<table CELLSPACING="0" BORDER="0" WIDTH="100%" cellpadding="0" style="border-collapse: collapse" bordercolor="#111111">
  <tr>
    <td style="border-bottom-style: solid; border-bottom-width: 1">
    <font FACE="Arial MT" SIZE="3" color="#3988C1">Financial Condition</font></td>
  </tr>
</table>
<p ALIGN="JUSTIFY">Accounts receivable of $183.6 million in the third quarter of
fiscal 2007 reflected increases of $17.7 million from $165.9 million at October
1, 2006 and $49.9 million from $133.7 million in the third quarter of the prior
year. The increase in accounts receivable from the end of fiscal 2006 was
primarily due to higher sales, partially offset by a decrease in days sales
outstanding on trade accounts receivable. The increase in accounts receivable
compared to the third quarter of fiscal 2006 was mainly due to the 11.6%
increase in activewear sales in the third quarter over the prior year, the
inclusion of $22.9 million accounts receivable for Kentucky Derby and a slight
increase in days sales outstanding on activewear trade accounts receivable due
to a higher proportion of sales of fleece products. </p>
<p ALIGN="JUSTIFY">Inventories of $231.5 million were up $30.9 million, or 15.4%
from October 1, 2006 and by $70.3 million, or 43.6% compared to the third
quarter of fiscal 2006. The increase in inventories for the periods is
reflective of the growth of our business and in line with our requirements to
support our projected sales. In addition, the year-over-year inventory increase
reflected the inclusion of sock inventory following our acquisition of Kentucky
Derby. </p>
<p ALIGN="JUSTIFY">Property, plant and equipment, which are net of accumulated
depreciation and asset impairment losses, amounted to $368.5 million at the end
of the third quarter of fiscal 2007, up $65.8 million from October 1, 2006. This
increase was primarily due to net capital expenditures of $108.3 million, mainly
for the capacity expansion projects in Honduras and the Dominican Republic as
well as for our new U.S. retail distribution centre and the expansion of our
sewing capacity. </p>
</font>
<table CELLSPACING="0" BORDER="0" WIDTH="100%" cellpadding="0" style="border-collapse: collapse" bordercolor="#111111">
  <tr>
    <td><font FACE="Times New Roman PS" SIZE="2"><i>
    <p align="right">GILDAN QUARTERLY REPORT &#150; Q3 2007 p.9</i></font></td>
  </tr>
</table>
<hr color="#000000" size="5"><p Style='page-break-before:always'>
<table CELLSPACING="0" BORDER="0" WIDTH="100%" cellpadding="0" style="border-collapse: collapse" bordercolor="#111111">
  <tr>
    <td width="475">
    <img border="0" src="gildansmlogo.jpg" width="88" height="20"></td>
    <td width="483" align="right"><font FACE="Times New Roman PS" SIZE="2"><i>
    MANAGEMENT'S DISCUSSION AND ANALYSIS</i></font></td>
  </tr>
</table>
<font SIZE="2">
<p ALIGN="JUSTIFY">Total assets were $825.0 million at July 1, 2007, compared to
$723.3 million at October 1, 2006 and $673.1 million at the end of the third
quarter of fiscal 2006. Working capital was $307.1 million at the end of the
third quarter of fiscal 2007 compared to $261.0 million at October 1, 2006, and
$260.0 million at July 2, 2006. </p>
<b>
<table CELLSPACING="0" BORDER="0" WIDTH="100%" cellpadding="0" style="border-collapse: collapse" bordercolor="#111111">
  <tr>
    <td style="border-bottom-style: solid; border-bottom-width: 1">
    <font FACE="Arial MT" SIZE="3" color="#3988C1">Liquidity and Capital
    Resources</font></td>
  </tr>
</table>
<p>Cash Flows </p>
</b>
<p ALIGN="JUSTIFY">Cash flows from operating activities in the third quarter of
fiscal 2007 were $32.3 million, compared to $47.1 million in the previous year.
The decrease in cash flows from operating activities was mainly due to a higher
seasonal increase in accounts receivable, partially offset by higher earnings
and a lower seasonal decline in inventory compared to the third quarter of
fiscal 2006. For the first nine months of fiscal 2007, cash flows from operating
activities were $72.1 million compared to $61.1 million in the same period last
year mainly as a result of higher earnings. </p>
<p ALIGN="JUSTIFY">Cash flows used in investing activities were $29.2 million in
the third quarter and $103.7 million for the nine months ended July 1, 2007,
compared to $13.5 million and $50.0 million in the respective periods of fiscal
2006, mainly due to higher net capital expenditures. The higher capital spending
was primarily related to our major textile and sock manufacturing expansion
projects in Honduras, our new U.S. retail distribution centre and the expansion
of our sewing capacity. </p>
<p ALIGN="JUSTIFY">Cash flows used in financing activities were $31.1 million in
the third quarter of fiscal 2007 compared to $17.8 million in the same period
last year. Both periods included a $17.5 million principal repayment of our
Senior Notes. Cash flows from financing activities for the first nine months of
fiscal 2007 were $10.0 million compared to cash outflows of $17.0 million for
the same period last year primarily due to a $30.0 million drawdown on our
credit facility during fiscal 2007. </p>
<p ALIGN="JUSTIFY">We ended the third quarter of fiscal 2007 with cash and cash
equivalents of $7.5 million compared to $63.9 million at the end of the third
quarter last year and $29.0 million at October 1, 2006. Total indebtedness at
July 1, 2007 amounted to $46.4 million compared to $37.3 million at October 1,
2006 and $32.6 million at July 2, 2006. The $13.8 million year-over-year
increase in total indebtedness was mainly due to the increase in long-term debt
from the use of our credit facility, partially offset by the final principal
repayment of $17.5 million on our Senior Notes, which was made on May 31, 2007.
Net indebtedness, defined as total indebtedness net of cash and cash
equivalents, at the end of the third quarter of fiscal 2007 was $38.9 million.
</font><font FACE="Arial MT" SIZE="1"></p>
</font><font SIZE="2"><b>
<p>Liquidity and Capital Resources </p>
</b>
<p ALIGN="JUSTIFY">In recent years, we have funded our operations and capital
requirements with cash generated from operations. Our committed revolving term
credit facility has been periodically utilized to finance seasonal peak working
capital requirements. Our primary use of funds on an ongoing basis is related to
capital expenditures for new manufacturing facilities, inventory and accounts
receivable funding, and business acquisitions. In fiscal 2007, we used our
revolving credit facility, in addition to our cash flow from operations, to
finance capital expenditures due to the acceleration of our major capacity
expansion projects in Honduras. </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 is typically seasonally highest in the second quarter as
inventories are built up for the peak T-shirt selling period in the second half
of the fiscal year. </p>
<p align="justify">Anticipated sales growth in 2007 is expected to result in
increased working capital requirements, mainly to finance trade accounts
receivable and inventory. In addition, in order to be able to support our
opportunities for continuing sales growth, we are continuing to invest in
offshore capacity expansion in Central America. For fiscal 2008, we are
projecting capital expenditures of approximately $155 million, primarily to
complete the ramp-up of the fleece and sock facilities in Honduras, and for the
new energy and chemical cost reduction projects which we announced in May of
this year. Fiscal 2008 capital expenditures also include the construction of a
building for a new sock facility to support our projected continuing growth in
sales. The estimated total capital cost of the new facility, to be expended
primarily over the next twenty-four months, is approximately $40 million.
Projected capital expenditures for fiscal 2008 also include approximately $20
million of expenditures in Honduras, which were previously projected to be
incurred in fiscal 2007. We are currently projecting capital expenditures for
fiscal 2007 of approximately $150 million compared to our previous projection of
$170 million. The carryover of fiscal 2007 expenditures relates primarily to a
minor delay in the timing of the delivery of equipment, and to a delay in
beginning the energy cost reduction project in Honduras. </p>
</font>
<table CELLSPACING="0" BORDER="0" WIDTH="100%" cellpadding="0" style="border-collapse: collapse" bordercolor="#111111">
  <tr>
    <td><font FACE="Times New Roman PS" SIZE="2"><i>
    <p align="right">GILDAN QUARTERLY REPORT &#150; Q3 2007 p.10</i></font></td>
  </tr>
</table>
<hr color="#000000" size="5"><p Style='page-break-before:always'>
<table CELLSPACING="0" BORDER="0" WIDTH="100%" cellpadding="0" style="border-collapse: collapse" bordercolor="#111111">
  <tr>
    <td width="475">
    <img border="0" src="gildansmlogo.jpg" width="88" height="20"></td>
    <td width="483" align="right"><font FACE="Times New Roman PS" SIZE="2"><i>
    MANAGEMENT'S DISCUSSION AND ANALYSIS</i></font></td>
  </tr>
</table>
<font SIZE="2">
<p ALIGN="JUSTIFY">At the end of the third quarter of fiscal 2007, $30.0 million
was drawn on our credit facility due to the acceleration of our capacity
expansion plans and seasonal working capital requirements. There were no amounts
drawn under this facility at October 1, 2006 and July 2, 2006. During the third
quarter of fiscal 2007, we increased our credit facility to $300 million, on an
unsecured basis. We believe our cash flow from operating activities together
with our credit facilities will provide us with sufficient liquidity and capital
resources in fiscal 2007 and 2008 to fund our anticipated working capital
requirements and capital projects. Furthermore, we continue to have significant
unused debt financing capacity and financing flexibility to invest in capital
expenditures for further capacity expansion and cost reduction initiatives in
excess of our current plans, as well as to pursue other potential acquisition
opportunities. </p>
<p ALIGN="JUSTIFY">In order to maximize flexibility to finance our ongoing
growth and expansion and to be able to take advantage of additional new
opportunities, we do not currently pay a dividend. Periodically, the merits of
introducing a dividend are re-evaluated by our Board of Directors. </p>
<b>
<p>Off-Balance Sheet Arrangements </p>
</b>
<p ALIGN="JUSTIFY">We have 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 12. As disclosed in
Note 9 to our Interim Consolidated Financial Statements, we have issued
corporate guarantees and standby letters of credit arising from various
servicing agreements amounting to $28.8 million at July 1, 2007. </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, to hedge cash flows
related to sales and operating expenses denominated in foreign currencies other
than the U.S. dollar. </p>
<p ALIGN="JUSTIFY">A forward foreign exchange contract represents an obligation
to buy or sell foreign currency with a counterparty. Credit risk exists in the
event of failure by a counterparty to meet its obligations. We reduce this risk
by dealing only with highly rated counterparties, normally major European and
North American financial institutions. Our exposure to foreign currency
fluctuations is described in more detail in the &quot;Risks and Uncertainties&quot;
section of the 2006 Annual MD&amp;A. </p>
<p>We do not use derivative financial instruments for speculative purposes.
Forward foreign exchange contracts are entered into with maturities not
exceeding twenty-four months. </p>
<p ALIGN="JUSTIFY">All outstanding forward foreign exchange contracts are
reported on a mark-to-market basis because we elected not to follow hedge
accounting for these derivatives, and the gains or losses are included in
earnings. The mark-to-market adjustments relating to the contracts were not
significant in either 2007 or 2006. See &quot;Changes in Accounting Policies&quot; on page
14. </p>
</font>
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  <tr>
    <td><font FACE="Times New Roman PS" SIZE="2"><i>
    <p align="right">GILDAN QUARTERLY REPORT &#150; Q3 2007 p.11</i></font></td>
  </tr>
</table>
<hr color="#000000" size="5"><p Style='page-break-before:always'>
<table CELLSPACING="0" BORDER="0" WIDTH="100%" cellpadding="0" style="border-collapse: collapse" bordercolor="#111111">
  <tr>
    <td width="475">
    <img border="0" src="gildansmlogo.jpg" width="88" height="20"></td>
    <td width="483" align="right"><font FACE="Times New Roman PS" SIZE="2"><i>
    MANAGEMENT'S DISCUSSION AND ANALYSIS</i></font></td>
  </tr>
</table>
<font FACE="Arial MT" SIZE="2">
<p>The following table summarizes our commitments to buy and sell foreign
currencies as at July 1, 2007 and July 2, 2006: </font>
<font FACE="Arial MT" SIZE="1"></p>
</font>
<table CELLSPACING="0" BORDER="0" WIDTH="100%" cellpadding="0" style="border-collapse: collapse" bordercolor="#111111">
  <tr>
    <td WIDTH="25%"><font SIZE="2"><i>(in thousands)</i></font></td>
    <td WIDTH="6%" align="right">&nbsp;</td>
    <td WIDTH="8%" align="right"><font SIZE="2">Notional</font></td>
    <td WIDTH="19%" align="right">&nbsp;</td>
    <td WIDTH="25%" align="right">&nbsp;</td>
    <td WIDTH="17%" align="right"><font SIZE="2">Notional U.S.</font></td>
  </tr>
  <tr>
    <td WIDTH="25%" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="6%" style="border-bottom-style: solid; border-bottom-width: 1" align="right">&nbsp;</td>
    <td WIDTH="8%" align="right" style="border-bottom-style: solid; border-bottom-width: 1"><font SIZE="2">amount</font></td>
    <td WIDTH="19%" align="right" style="border-bottom-style: solid; border-bottom-width: 1"><font SIZE="2">Exchange rate</font></td>
    <td WIDTH="25%" align="right" style="border-bottom-style: solid; border-bottom-width: 1"><font SIZE="2">Maturity</font></td>
    <td WIDTH="17%" align="right" style="border-bottom-style: solid; border-bottom-width: 1"><font SIZE="2">equivalent</font></td>
  </tr>
  <tr>
    <td WIDTH="25%" style="border-top-style: solid; border-top-width: 1"><font SIZE="2"><b>2007</b></font></td>
    <td WIDTH="6%" style="border-top-style: solid; border-top-width: 1" align="right">&nbsp;</td>
    <td WIDTH="8%" align="right" style="border-top-style: solid; border-top-width: 1">&nbsp;</td>
    <td WIDTH="19%" align="right" style="border-top-style: solid; border-top-width: 1">&nbsp;</td>
    <td WIDTH="25%" align="right" style="border-top-style: solid; border-top-width: 1">&nbsp;</td>
    <td WIDTH="17%" align="right" style="border-top-style: solid; border-top-width: 1">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="25%"><font SIZE="2"><b>Buy contracts:</b></font></td>
    <td WIDTH="6%" align="right">&nbsp;</td>
    <td WIDTH="8%" align="right">&nbsp;</td>
    <td WIDTH="19%" align="right">&nbsp;</td>
    <td WIDTH="25%" align="right">&nbsp;</td>
    <td WIDTH="17%" align="right">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="25%"><font SIZE="2"><b>&nbsp;&nbsp;&nbsp; Foreign exchange contracts</b></font></td>
    <td WIDTH="6%" align="right"><font SIZE="2"><b>&#128;</b></font></td>
    <td WIDTH="8%" align="right"><font SIZE="2"><b>7,099</b></font></td>
    <td WIDTH="19%" align="right"><font SIZE="2"><b>1.3108 to 1.3556</b></font></td>
    <td WIDTH="25%" align="right"><font SIZE="2">July 2007 to December 2007</font></td>
    <td WIDTH="17%" align="right"><font SIZE="2"><b>$9,477</b></font></td>
  </tr>
  <tr>
    <td WIDTH="25%">&nbsp;</td>
    <td WIDTH="6%" align="right"><font SIZE="2"><b>CA$</b></font></td>
    <td WIDTH="8%" align="right"><font SIZE="2"><b>8,811</b></font></td>
    <td WIDTH="19%" align="right"><font SIZE="2"><b>0.8506 to 0.8519</b></font></td>
    <td WIDTH="25%" align="right"><font SIZE="2">July 2007 to August 2007</font></td>
    <td WIDTH="17%" align="right"><font SIZE="2"><b>7,500</b></font></td>
  </tr>
  <tr>
    <td WIDTH="25%"><font SIZE="2"><b>Sell contracts:</b></font></td>
    <td WIDTH="6%" align="right">&nbsp;</td>
    <td WIDTH="8%" align="right">&nbsp;</td>
    <td WIDTH="19%" align="right">&nbsp;</td>
    <td WIDTH="25%" align="right">&nbsp;</td>
    <td WIDTH="17%" align="right">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="25%"><font SIZE="2"><b>&nbsp;&nbsp;&nbsp; Foreign exchange contracts</b></font></td>
    <td WIDTH="6%" align="right"><font SIZE="2"><b>&#128;</b></font></td>
    <td WIDTH="8%" align="right"><font SIZE="2"><b>13,718</b></font></td>
    <td WIDTH="19%" align="right"><font SIZE="2"><b>1.3066 to 1.3696</b></font></td>
    <td WIDTH="25%" align="right"><font SIZE="2">July 2007 to September 2008</font></td>
    <td WIDTH="17%" align="right"><font SIZE="2"><b>$18,463</b></font></td>
  </tr>
  <tr>
    <td WIDTH="25%">&nbsp;</td>
    <td WIDTH="6%" align="right"><b><font SIZE="2">&#163;</font></b></td>
    <td WIDTH="8%" align="right"><font SIZE="2"><b>10,459</b></font></td>
    <td WIDTH="19%" align="right"><font SIZE="2"><b>1.9100 to 1.9780</b></font></td>
    <td WIDTH="25%" align="right"><font SIZE="2">July 2007 to September 2008</font></td>
    <td WIDTH="17%" align="right"><font SIZE="2"><b>20,505</b></font></td>
  </tr>
  <tr>
    <td WIDTH="25%" bgcolor="#CCFFFF"><font SIZE="2">2006</font></td>
    <td WIDTH="6%" align="right" bgcolor="#CCFFFF">&nbsp;</td>
    <td WIDTH="8%" align="right" bgcolor="#CCFFFF">&nbsp;</td>
    <td WIDTH="19%" align="right" bgcolor="#CCFFFF">&nbsp;</td>
    <td WIDTH="25%" align="right" bgcolor="#CCFFFF">&nbsp;</td>
    <td WIDTH="17%" align="right" bgcolor="#CCFFFF">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="25%" bgcolor="#CCFFFF"><font SIZE="2">Buy contracts:</font></td>
    <td WIDTH="6%" align="right" bgcolor="#CCFFFF">&nbsp;</td>
    <td WIDTH="8%" align="right" bgcolor="#CCFFFF">&nbsp;</td>
    <td WIDTH="19%" align="right" bgcolor="#CCFFFF">&nbsp;</td>
    <td WIDTH="25%" align="right" bgcolor="#CCFFFF">&nbsp;</td>
    <td WIDTH="17%" align="right" bgcolor="#CCFFFF">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="25%" bgcolor="#CCFFFF"><font SIZE="2">&nbsp;&nbsp;&nbsp; Foreign exchange contracts</font></td>
    <td WIDTH="6%" align="right" bgcolor="#CCFFFF"><font SIZE="2">CA$</font></td>
    <td WIDTH="8%" align="right" bgcolor="#CCFFFF"><font SIZE="2">37,334</font></td>
    <td WIDTH="19%" align="right" bgcolor="#CCFFFF"><font SIZE="2">0.7997 to 0.8997</font></td>
    <td WIDTH="25%" align="right" bgcolor="#CCFFFF"><font SIZE="2">July 2006 to September 2006</font></td>
    <td WIDTH="17%" align="right" bgcolor="#CCFFFF"><font SIZE="2">$31,720</font></td>
  </tr>
  <tr>
    <td WIDTH="25%" bgcolor="#CCFFFF">&nbsp;</td>
    <td WIDTH="6%" align="right" bgcolor="#CCFFFF"><font SIZE="2">&#128;</font></td>
    <td WIDTH="8%" align="right" bgcolor="#CCFFFF"><font SIZE="2">11,147</font></td>
    <td WIDTH="19%" align="right" bgcolor="#CCFFFF"><font SIZE="2">1.1991 to 1.2208</font></td>
    <td WIDTH="25%" align="right" bgcolor="#CCFFFF"><font SIZE="2">July 2006 to June 2007</font></td>
    <td WIDTH="17%" align="right" bgcolor="#CCFFFF"><font SIZE="2">13,480</font></td>
  </tr>
  <tr>
    <td WIDTH="25%" bgcolor="#CCFFFF"><font SIZE="2">Sell contracts:</font></td>
    <td WIDTH="6%" align="right" bgcolor="#CCFFFF">&nbsp;</td>
    <td WIDTH="8%" align="right" bgcolor="#CCFFFF">&nbsp;</td>
    <td WIDTH="19%" align="right" bgcolor="#CCFFFF">&nbsp;</td>
    <td WIDTH="25%" align="right" bgcolor="#CCFFFF">&nbsp;</td>
    <td WIDTH="17%" align="right" bgcolor="#CCFFFF">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="25%" bgcolor="#CCFFFF"><font SIZE="2">&nbsp;&nbsp;&nbsp; Foreign exchange contracts</font></td>
    <td WIDTH="6%" align="right" bgcolor="#CCFFFF"><font SIZE="2">&#128;</font></td>
    <td WIDTH="8%" align="right" bgcolor="#CCFFFF"><font SIZE="2">2,265</font></td>
    <td WIDTH="19%" align="right" bgcolor="#CCFFFF"><font SIZE="2">1.3495 to 1.3525</font></td>
    <td WIDTH="25%" align="right" bgcolor="#CCFFFF"><font SIZE="2">July 2006 to September 2006</font></td>
    <td WIDTH="17%" align="right" bgcolor="#CCFFFF"><font SIZE="2">$3,059</font></td>
  </tr>
  <tr>
    <td WIDTH="25%" style="border-bottom: 2px solid #000000" bgcolor="#CCFFFF">&nbsp;</td>
    <td WIDTH="6%" align="right" style="border-bottom: 2px solid #000000" bgcolor="#CCFFFF"><font SIZE="2">
    &#163;</font></td>
    <td WIDTH="8%" align="right" style="border-bottom: 2px solid #000000" bgcolor="#CCFFFF"><font SIZE="2">1,745</font></td>
    <td WIDTH="19%" align="right" style="border-bottom: 2px solid #000000" bgcolor="#CCFFFF"><font SIZE="2">1.8396 to 1.8736</font></td>
    <td WIDTH="25%" align="right" style="border-bottom: 2px solid #000000" bgcolor="#CCFFFF"><font SIZE="2">July 2006 to September 2006</font></td>
    <td WIDTH="17%" align="right" style="border-bottom: 2px solid #000000" bgcolor="#CCFFFF"><font SIZE="2">3,256</font></td>
  </tr>
</table>
<font SIZE="2">
<p><u>Contractual Obligations </u></p>
<p ALIGN="JUSTIFY">In the normal course of business, we enter into contractual
obligations that will require us to disburse cash over future periods. The
following table sets forth our contractual obligations for the following items
as at July 1, 2007: </p>
</font>
<table CELLSPACING="0" BORDER="0" WIDTH="100%" cellpadding="0" style="border-collapse: collapse" bordercolor="#111111">
  <tr>
    <td WIDTH="35%"><font SIZE="2">Payments due by period</font></td>
    <td WIDTH="13%" align="right">&nbsp;</td>
    <td WIDTH="13%" align="right">&nbsp;</td>
    <td WIDTH="13%" align="right">&nbsp;</td>
    <td WIDTH="13%" align="right">&nbsp;</td>
    <td WIDTH="13%" align="right">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="35%"><font SIZE="2"><i>(in $ millions)</i></font></td>
    <td WIDTH="13%" align="right">&nbsp;</td>
    <td WIDTH="13%" align="right"><font SIZE="2"><b>Less than</b></font></td>
    <td WIDTH="13%" align="right"><font SIZE="2"><b>1 to 3</b></font></td>
    <td WIDTH="13%" align="right"><font SIZE="2"><b>4 to 5</b></font></td>
    <td WIDTH="13%" align="right"><font SIZE="2"><b>After</b></font></td>
  </tr>
  <tr>
    <td WIDTH="35%" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="13%" align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2"><b>Total</b></font></td>
    <td WIDTH="13%" align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2"><b>1 year</b></font></td>
    <td WIDTH="13%" align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2"><b>years</b></font></td>
    <td WIDTH="13%" align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2"><b>years</b></font></td>
    <td WIDTH="13%" align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2"><b>5 years</b></font></td>
  </tr>
  <tr>
    <td WIDTH="35%" style="border-top-style: solid; border-top-width: 1">
    <font SIZE="2">Long-term debt</font></td>
    <td WIDTH="13%" align="right" style="border-top-style: solid; border-top-width: 1">
    <font SIZE="2">42.9</font></td>
    <td WIDTH="13%" align="right" style="border-top-style: solid; border-top-width: 1">
    <font SIZE="2">0.8</font></td>
    <td WIDTH="13%" align="right" style="border-top-style: solid; border-top-width: 1">
    <font SIZE="2">9.0</font></td>
    <td WIDTH="13%" align="right" style="border-top-style: solid; border-top-width: 1">
    <font SIZE="2">33.1</font></td>
    <td WIDTH="13%" align="right" style="border-top-style: solid; border-top-width: 1">
    <font SIZE="2">-</font></td>
  </tr>
  <tr>
    <td WIDTH="35%"><font SIZE="2">Operating leases</font></td>
    <td WIDTH="13%" align="right"><font SIZE="2">30.1</font></td>
    <td WIDTH="13%" align="right"><font SIZE="2">1.9</font></td>
    <td WIDTH="13%" align="right"><font SIZE="2">14.9</font></td>
    <td WIDTH="13%" align="right"><font SIZE="2">6.1</font></td>
    <td WIDTH="13%" align="right"><font SIZE="2">7.2</font></td>
  </tr>
  <tr>
    <td WIDTH="35%"><font SIZE="2">Purchase obligations</font></td>
    <td WIDTH="13%" align="right"><font SIZE="2">175.3</font></td>
    <td WIDTH="13%" align="right"><font SIZE="2">107.9</font></td>
    <td WIDTH="13%" align="right"><font SIZE="2">67.4</font></td>
    <td WIDTH="13%" align="right"><font SIZE="2">-</font></td>
    <td WIDTH="13%" align="right"><font SIZE="2">-</font></td>
  </tr>
  <tr>
    <td WIDTH="35%" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2">Other obligations</font></td>
    <td WIDTH="13%" align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2">55.9</font></td>
    <td WIDTH="13%" align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2">25.4</font></td>
    <td WIDTH="13%" align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2">30.5</font></td>
    <td WIDTH="13%" align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2">-</font></td>
    <td WIDTH="13%" align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2">-</font></td>
  </tr>
  <tr>
    <td WIDTH="35%" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 2">
    <font SIZE="2"><b>Total Contractual Obligations</b></font></td>
    <td WIDTH="13%" align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 2">
    <font SIZE="2"><b>304.2</b></font></td>
    <td WIDTH="13%" align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 2">
    <font SIZE="2"><b>136.0</b></font></td>
    <td WIDTH="13%" align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 2">
    <font SIZE="2"><b>121.8</b></font></td>
    <td WIDTH="13%" align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 2">
    <font SIZE="2"><b>39.2</b></font></td>
    <td WIDTH="13%" align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 2">
    <font SIZE="2"><b>7.2</b></font></td>
  </tr>
</table>
<font SIZE="2"><b>
<p>Settlement of Contingent Liability </p>
</b>
<p ALIGN="JUSTIFY">In November 2002, one of the Company's Mexican subsidiaries
(&quot;Gildan Mexico&quot;) received a tax assessment from a regional taxation office
relating to duties for the 2000 fiscal year for approximately $6.0 million. The
substance of the assessment was that the Mexican taxation authorities adopted
the position that Canadian-made textiles shipped to Gildan Mexico for sewing
processing had not subsequently been exported from Mexico. Gildan Mexico
appealed the assessment and was successful in obtaining a judgment in its favour.
Notwithstanding the judgment, the regional Mexican taxation office issued a new
assessment in March 2005, and increased the assessed amount to approximately
$7.1 million, primarily comprised of interest and late payment penalties.
Shortly after receiving the second assessment, Gildan Mexico again filed an
appeal. In July 2006, Gildan Mexico received notification that its appeal of the
second assessment for fiscal 2000 was unsuccessful. The Company received legal
opinions that the tax assessment was without merit under Mexican law governing
re-export from maquiladora operations. Additionally, Gildan Mexico, a
maquiladora operation, provided documentation to establish that the textiles
imported into Mexico for sewing were subsequently exported to the United States
and Canada. </font><font FACE="Times New Roman PSMT"></p>
</font><font SIZE="2">
<p ALIGN="JUSTIFY">In April 2007, a new law which was passed by the Mexican
Congress in December 2006, was formally enacted. The provisions of this law
allowed Gildan Mexico to apply for the forgiveness of all of the interest and
penalties and a substantial amount of the principal related to this tax
assessment. In May 2007, Gildan Mexico filed an application requesting that the
provisions of the new law be applied to its outstanding tax assessment. The
Mexican taxation authorities accepted the application in May 2007 and
<font FACE="Arial MT" SIZE="2">Gildan Mexico settled the tax assessment with a
payment of $0.4 million during the third quarter of fiscal 2007. The Company had
previously recorded a charge for this amount, which was reflected in selling,
general and administrative expenses in the second quarter of fiscal 2007. Gildan
Mexico has been released from all previously tax assessed amounts by the Mexican
taxation authorities. </p>
</font></font>
<table CELLSPACING="0" BORDER="0" WIDTH="100%" cellpadding="0" style="border-collapse: collapse" bordercolor="#111111">
  <tr>
    <td><font FACE="Times New Roman PS" SIZE="2"><i>
    <p align="right">GILDAN QUARTERLY REPORT &#150; Q3 2007 p.12</i></font></td>
  </tr>
</table>
<hr color="#000000" size="5"><p Style='page-break-before:always'>
<table CELLSPACING="0" BORDER="0" WIDTH="100%" cellpadding="0" style="border-collapse: collapse" bordercolor="#111111">
  <tr>
    <td width="475">
    <img border="0" src="gildansmlogo.jpg" width="88" height="20"></td>
    <td width="483" align="right"><font FACE="Times New Roman PS" SIZE="2"><i>
    MANAGEMENT'S DISCUSSION AND ANALYSIS</i></font></td>
  </tr>
</table>
<font SIZE="2"><b>
<p>Outstanding Share Data </p>
</b>
<p>Our common shares are listed on the New York Stock Exchange and the Toronto
Stock Exchange (GIL). </p>
<p ALIGN="JUSTIFY">As of July 31, 2007, there were 120,381,611 common shares
issued and outstanding along with 892,400 stock options and 968,000 dilutive
restricted share units (Treasury RSUs) outstanding. Each stock option entitles
the holder to purchase one common share at the end of the vesting period at a
pre-determined option price. Each Treasury RSU entitles the holder to receive
one common share from treasury at the end of the vesting period, without any
monetary consideration being paid to the Company. However, the vesting of 50% of
the restricted share grant is dependent upon the financial performance of the
Company relative to a benchmark group of Canadian publicly-listed companies.
</font><b></p>
<font SIZE="2">
<p>Stock split </p>
</font></b><font SIZE="2">
<p ALIGN="JUSTIFY">On May 2, 2007, 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 issued and outstanding common shares, to shareholders of
record on May 18, 2007. The Company's shares commenced trading on a post-split
basis on May 16, 2007, on the TSX and on May 28, 2007, on the NYSE, in
accordance with the respective requirements of these exchanges. All share and
per share data in this Interim MD&amp;A reflect the effect of the stock split on a
retroactive basis. </p>
<table CELLSPACING="0" BORDER="0" WIDTH="100%" cellpadding="0" style="border-collapse: collapse" bordercolor="#111111">
  <tr>
    <td style="border-bottom-style: solid; border-bottom-width: 1">
    <font FACE="Arial MT" SIZE="3" color="#3988C1">Critical Accounting Estimates</font></td>
  </tr>
</table>
<p ALIGN="JUSTIFY">Our significant accounting policies are described in Note 2
to our 2006 audited Consolidated Financial Statements. The preparation of
financial statements in conformity with Canadian GAAP requires estimates and
assumptions that affect our results of operations and financial position. By
their nature, these judgements 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 following accounting estimates are most
significant to assist in understanding and evaluating our financial results: </p>
</font><font FACE="Wingdings" LANG="JA" SIZE="2">
<ul>
  <li></font><font SIZE="2">Sales promotional programs; </li>
  </font><font FACE="Wingdings" LANG="JA" SIZE="2">
  <li></font><font SIZE="2">Allowance for doubtful accounts receivable; </li>
  </font><font FACE="Wingdings" LANG="JA" SIZE="2">
  <li></font><font SIZE="2">Useful life and recoverability of property, plant
  and equipment and intangible assets; </font></li>
  <li><font SIZE="2">Cotton and yarn procurements; </font></li>
  <li><font SIZE="2">Stock-based compensation costs; and </font></li>
  <li><font SIZE="2">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 2006 Annual MD&amp;A, which is hereby
incorporated by reference. </p>
</font>
<table CELLSPACING="0" BORDER="0" WIDTH="100%" cellpadding="0" style="border-collapse: collapse" bordercolor="#111111">
  <tr>
    <td><font FACE="Times New Roman PS" SIZE="2"><i>
    <p align="right">GILDAN QUARTERLY REPORT &#150; Q3 2007 p.13</i></font></td>
  </tr>
</table>
<hr color="#000000" size="5"><p Style='page-break-before:always'>
<table CELLSPACING="0" BORDER="0" WIDTH="100%" cellpadding="0" style="border-collapse: collapse" bordercolor="#111111">
  <tr>
    <td width="475">
    <img border="0" src="gildansmlogo.jpg" width="88" height="20"></td>
    <td width="483" align="right"><font FACE="Times New Roman PS" SIZE="2"><i>
    MANAGEMENT'S DISCUSSION AND ANALYSIS</i></font></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 FACE="Arial MT" SIZE="3" color="#3988C1">Changes in Accounting
    Policies</font></td>
  </tr>
</table>
<font SIZE="2">
<p ALIGN="JUSTIFY">Effective with the commencement of our 2007 fiscal year, we
have adopted the Canadian Institute of Chartered Accountants (CICA) Handbook
Section 1530, Comprehensive Income, CICA Handbook Section 3251, Equity, CICA
Handbook Section 3855, Financial Instruments &#150; Recognition and Measurement, CICA
Handbook Section 3861, Financial Instruments &#150; Disclosure and Presentation, and
CICA Handbook Section 3865, Hedges. These new Handbook Sections, which apply to
fiscal years beginning on or after October 1, 2006, provide comprehensive
requirements for the recognition and measurement of financial instruments, as
well as standards on when and how hedge accounting may be applied. Handbook
Section 1530 also establishes standards for reporting and displaying
comprehensive income. Comprehensive income is defined as the change in equity
from transactions and other events from non-owner sources. Other comprehensive
income refers to items recognized in comprehensive income but that are excluded
from net income calculated in accordance with generally accepted accounting
principles. </p>
<p ALIGN="JUSTIFY">Under these new standards, all financial instruments are
classified into one of the following five categories: held for trading,
held-to-maturity investments, loans and receivables, available-for-sale
financial assets or other financial liabilities. All financial instruments,
including derivatives, are included on the consolidated balance sheet and are
measured at fair market value with the exception of loans and receivables,
investments held-to-maturity and other financial liabilities, which will be
measured at amortized cost. Subsequent measurement and recognition of changes in
fair value of financial instruments depend on their initial classification. Held
for trading financial investments are measured at fair value and all gains and
losses are included in net income in the period in which they arise.
Available-for-sale financial instruments are measured at fair value with
revaluation gains and losses included in other comprehensive income until the
asset is removed from the balance sheet. </p>
<p ALIGN="JUSTIFY">The standards require derivative instruments to be recorded
as either assets or liabilities measured at their fair value unless exempted
from derivative treatment as a normal purchase and sale. Certain derivatives
embedded in other contracts must also be measured at fair value. All changes in
the fair value of derivatives are recognized in earnings unless specific hedge
criteria are met, which requires that a company must formally document,
designate and assess the effectiveness of transactions that receive hedge
accounting. Derivatives that qualify as hedging instruments must be designated
as either a &quot;cash flow hedge,'' when the hedged item is a future cash flow, or
a &quot;fair value hedge,'' when the hedged item is a recognized asset or liability.
The unrealized gains and losses related to a cash flow hedge are included in
other comprehensive income. For a fair value hedge, both the derivative and the
hedged item are recorded at fair value in the consolidated balance sheet and the
unrealized gains and losses from both items are included in earnings. Any
derivative instrument that does not qualify for hedge accounting is
marked-to-market at each reporting date and the gains or losses are included in
earnings. </p>
<p ALIGN="JUSTIFY">As a result of the adoption of these standards, we have
classified our cash equivalents as available for sale. We have also classified
our accounts receivable as loans and receivables, and our accounts payable and
long-term debt as other financial liabilities, all of which are measured at
amortized cost. The adoption of these new standards also resulted in the
reclassification of an amount of $26.3 million previously recorded in
&quot;Cumulative translation adjustment&quot; to &quot;Accumulated other comprehensive income&quot;
on the consolidated balance sheets. As at October 1, 2006 and July 1, 2007, all
outstanding forward foreign exchange contracts were reported on a mark-to-market
basis and the gains or losses were included in earnings, because we elected not
to follow hedge accounting for these derivatives. The adoption of these
standards had no impact on the consolidated statement of earnings. </p>
</font>
<table CELLSPACING="0" BORDER="0" WIDTH="100%" cellpadding="0" style="border-collapse: collapse" bordercolor="#111111">
  <tr>
    <td><font FACE="Times New Roman PS" SIZE="2"><i>
    <p align="right">GILDAN QUARTERLY REPORT &#150; Q3 2007 p.14</i></font></td>
  </tr>
</table>
<hr color="#000000" size="5"><p Style='page-break-before:always'>
<table CELLSPACING="0" BORDER="0" WIDTH="100%" cellpadding="0" style="border-collapse: collapse" bordercolor="#111111">
  <tr>
    <td width="475">
    <img border="0" src="gildansmlogo.jpg" width="88" height="20"></td>
    <td width="483" align="right"><font FACE="Times New Roman PS" SIZE="2"><i>
    MANAGEMENT'S DISCUSSION AND ANALYSIS</i></font></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 FACE="Arial MT" SIZE="3" color="#3988C1">Reconciliation and Definition
    of Non-GAAP Measures</font></td>
  </tr>
</table>
<font SIZE="2">
<p ALIGN="JUSTIFY">We use non-GAAP measures to assess our operating performance
and financial condition. The terms and definitions of the non-GAAP measures used
in this report and a reconciliation of each non-GAAP measure to the most
directly comparable GAAP measure are provided below. The non-GAAP measures are
presented on a consistent basis for all periods presented in this MD&amp;A. These
non-GAAP measures do not have any standardized meanings prescribed by Canadian
GAAP and are therefore unlikely to be comparable to similar measures presented
by other companies. Accordingly, they should not be considered in isolation. </p>
<b>
<p>Adjusted Net Earnings and Adjusted Diluted EPS </p>
</b>
<p ALIGN="JUSTIFY">To measure our performance from one period to the next,
without the variations caused by the after-tax impact of restructuring and other
charges, as discussed on page 7, management uses adjusted net earnings and
adjusted diluted earnings per share, which is calculated as net earnings and
earnings per share excluding these items. We exclude these items because they
affect the comparability of our financial results and could potentially distort
the analysis of trends in our business performance. Excluding these items does
not imply they are necessarily non-recurring. </p>
</font>
<table CELLSPACING="0" BORDER="0" WIDTH="100%" cellpadding="0" style="border-collapse: collapse" bordercolor="#111111">
  <tr>
    <td WIDTH="33%" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2"><i>(in $ millions, except per share amounts)</i></font></td>
    <td WIDTH="11%" align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <p style="margin-right: 8">&nbsp;</td>
    <td WIDTH="11%" align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <p style="margin-right: 8">&nbsp;</td>
    <td WIDTH="11%" align="right" style="border-right-style: solid; border-right-width: 1; border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2"><b>
    <p style="margin-right: 8">Q3 2007</b></font></td>
    <td WIDTH="11%" align="right" style="border-left-style: solid; border-left-width: 1; border-bottom-style: solid; border-bottom-width: 1">
    <p style="margin-right: 8">&nbsp;</td>
    <td WIDTH="11%" align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <p style="margin-right: 8">&nbsp;</td>
    <td WIDTH="12%" align="right" style="border-right-style: solid; border-right-width: 1; border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2"><b>
    <p style="margin-right: 8">YTD 2007</b></font></td>
  </tr>
  <tr>
    <td WIDTH="33%" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="11%" align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2"><b>
    <p style="margin-right: 8">Reported</b></font></td>
    <td WIDTH="11%" align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1">
    <p style="margin-right: 8">&nbsp;</td>
    <td WIDTH="11%" align="right" style="border-right-style: solid; border-right-width: 1; border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2"><b>
    <p style="margin-right: 8">Adjusted</b></font></td>
    <td WIDTH="11%" align="right" style="border-left-style: solid; border-left-width: 1; border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2"><b>
    <p style="margin-right: 8">Reported</b></font></td>
    <td WIDTH="11%" align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1">
    <p style="margin-right: 8">&nbsp;</td>
    <td WIDTH="12%" align="right" style="border-right-style: solid; border-right-width: 1; border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2"><b>
    <p style="margin-right: 8">Adjusted</b></font></td>
  </tr>
  <tr>
    <td WIDTH="33%" style="border-top-style: solid; border-top-width: 1">
    <font SIZE="2">Sales</font></td>
    <td WIDTH="11%" align="right" style="border-top-style: solid; border-top-width: 1">
    <font SIZE="2"><b>
    <p style="margin-right: 8">291.6</b></font></td>
    <td WIDTH="11%" align="right" style="border-top-style: solid; border-top-width: 1">
    <p style="margin-right: 8">&nbsp;</td>
    <td WIDTH="11%" align="right" style="border-top-style: solid; border-top-width: 1">
    <font SIZE="2"><b>
    <p style="margin-right: 8">291.6</b></font></td>
    <td WIDTH="11%" align="right" style="border-top-style: solid; border-top-width: 1">
    <font SIZE="2"><b>
    <p style="margin-right: 8">709.6</b></font></td>
    <td WIDTH="11%" align="right" style="border-top-style: solid; border-top-width: 1">
    <p style="margin-right: 8">&nbsp;</td>
    <td WIDTH="12%" align="right" style="border-top-style: solid; border-top-width: 1">
    <font SIZE="2"><b>
    <p style="margin-right: 8">709.6</b></font></td>
  </tr>
  <tr>
    <td WIDTH="33%" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2">Cost of sales</font></td>
    <td WIDTH="11%" align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2"><b>
    <p style="margin-right: 8">197.2</b></font></td>
    <td WIDTH="11%" align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <p style="margin-right: 8">&nbsp;</td>
    <td WIDTH="11%" align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2"><b>
    <p style="margin-right: 8">197.2</b></font></td>
    <td WIDTH="11%" align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2"><b>
    <p style="margin-right: 8">482.6</b></font></td>
    <td WIDTH="11%" align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <p style="margin-right: 8">&nbsp;</td>
    <td WIDTH="12%" align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2"><b>
    <p style="margin-right: 8">482.6</b></font></td>
  </tr>
  <tr>
    <td WIDTH="33%" style="border-top-style: solid; border-top-width: 1">
    <font SIZE="2">Gross profit</font></td>
    <td WIDTH="11%" align="right" style="border-top-style: solid; border-top-width: 1">
    <font SIZE="2"><b>
    <p style="margin-right: 8">94.4</b></font></td>
    <td WIDTH="11%" align="right" style="border-top-style: solid; border-top-width: 1">
    <font SIZE="2">
    <p style="margin-right: 8">-</font></td>
    <td WIDTH="11%" align="right" style="border-top-style: solid; border-top-width: 1">
    <font SIZE="2"><b>
    <p style="margin-right: 8">94.4</b></font></td>
    <td WIDTH="11%" align="right" style="border-top-style: solid; border-top-width: 1">
    <font SIZE="2"><b>
    <p style="margin-right: 8">227.0</b></font></td>
    <td WIDTH="11%" align="right" style="border-top-style: solid; border-top-width: 1">
    <font SIZE="2">
    <p style="margin-right: 8">-</font></td>
    <td WIDTH="12%" align="right" style="border-top-style: solid; border-top-width: 1">
    <font SIZE="2"><b>
    <p style="margin-right: 8">227.0</b></font></td>
  </tr>
  <tr>
    <td WIDTH="33%"><font SIZE="2">Selling, general and</font></td>
    <td WIDTH="11%" align="right">
    <p style="margin-right: 8">&nbsp;</td>
    <td WIDTH="11%" align="right">
    <p style="margin-right: 8">&nbsp;</td>
    <td WIDTH="11%" align="right">
    <p style="margin-right: 8">&nbsp;</td>
    <td WIDTH="11%" align="right">
    <p style="margin-right: 8">&nbsp;</td>
    <td WIDTH="11%" align="right">
    <p style="margin-right: 8">&nbsp;</td>
    <td WIDTH="12%" align="right">
    <p style="margin-right: 8">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="33%"><font SIZE="2">&nbsp;&nbsp; administrative expenses</font></td>
    <td WIDTH="11%" align="right"><font SIZE="2"><b>
    <p style="margin-right: 8">28.4</b></font></td>
    <td WIDTH="11%" align="right">
    <p style="margin-right: 8">&nbsp;</td>
    <td WIDTH="11%" align="right"><font SIZE="2"><b>
    <p style="margin-right: 8">28.4</b></font></td>
    <td WIDTH="11%" align="right"><font SIZE="2"><b>
    <p style="margin-right: 8">83.1</b></font></td>
    <td WIDTH="11%" align="right">
    <p style="margin-right: 8">&nbsp;</td>
    <td WIDTH="12%" align="right"><font SIZE="2"><b>
    <p style="margin-right: 8">83.1</b></font></td>
  </tr>
  <tr>
    <td WIDTH="33%" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2">Restructuring and other charges <sup>(1)</sup></font></td>
    <td WIDTH="11%" align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2"><b>
    <p style="margin-right: 8">4.6</b></font></td>
    <td WIDTH="11%" align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2"><b>
    <p style="margin-right: 4">(4.6)</b></font></td>
    <td WIDTH="11%" align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2"><b>
    <p style="margin-right: 8">-</b></font></td>
    <td WIDTH="11%" align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2"><b>
    <p style="margin-right: 8">22.3</b></font></td>
    <td WIDTH="11%" align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2"><b>
    <p style="margin-right: 4">(22.3)</b></font></td>
    <td WIDTH="12%" align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2"><b>
    <p style="margin-right: 8">-</b></font></td>
  </tr>
  <tr>
    <td WIDTH="33%" style="border-top-style: solid; border-top-width: 1">&nbsp;</td>
    <td WIDTH="11%" align="right" style="border-top-style: solid; border-top-width: 1">
    <font SIZE="2"><b>
    <p style="margin-right: 8">61.4</b></font></td>
    <td WIDTH="11%" align="right" style="border-top-style: solid; border-top-width: 1">
    <font SIZE="2"><b>
    <p style="margin-right: 8">4.6</b></font></td>
    <td WIDTH="11%" align="right" style="border-top-style: solid; border-top-width: 1">
    <font SIZE="2"><b>
    <p style="margin-right: 8">66.0</b></font></td>
    <td WIDTH="11%" align="right" style="border-top-style: solid; border-top-width: 1">
    <font SIZE="2"><b>
    <p style="margin-right: 8">121.6</b></font></td>
    <td WIDTH="11%" align="right" style="border-top-style: solid; border-top-width: 1">
    <font SIZE="2"><b>
    <p style="margin-right: 8">22.3</b></font></td>
    <td WIDTH="12%" align="right" style="border-top-style: solid; border-top-width: 1">
    <font SIZE="2"><b>
    <p style="margin-right: 8">143.9</b></font></td>
  </tr>
  <tr>
    <td WIDTH="33%"><font SIZE="2">Depreciation and amortization</font></td>
    <td WIDTH="11%" align="right"><font SIZE="2"><b>
    <p style="margin-right: 8">10.3</b></font></td>
    <td WIDTH="11%" align="right">
    <p style="margin-right: 8">&nbsp;</td>
    <td WIDTH="11%" align="right"><font SIZE="2"><b>
    <p style="margin-right: 8">10.3</b></font></td>
    <td WIDTH="11%" align="right"><font SIZE="2"><b>
    <p style="margin-right: 8">28.5</b></font></td>
    <td WIDTH="11%" align="right">
    <p style="margin-right: 8">&nbsp;</td>
    <td WIDTH="12%" align="right"><font SIZE="2"><b>
    <p style="margin-right: 8">28.5</b></font></td>
  </tr>
  <tr>
    <td WIDTH="33%"><font SIZE="2">Interest, net</font></td>
    <td WIDTH="11%" align="right"><font SIZE="2"><b>
    <p style="margin-right: 8">1.5</b></font></td>
    <td WIDTH="11%" align="right">
    <p style="margin-right: 8">&nbsp;</td>
    <td WIDTH="11%" align="right"><font SIZE="2"><b>
    <p style="margin-right: 8">1.5</b></font></td>
    <td WIDTH="11%" align="right"><font SIZE="2"><b>
    <p style="margin-right: 8">3.5</b></font></td>
    <td WIDTH="11%" align="right">
    <p style="margin-right: 8">&nbsp;</td>
    <td WIDTH="12%" align="right"><font SIZE="2"><b>
    <p style="margin-right: 8">3.5</b></font></td>
  </tr>
  <tr>
    <td WIDTH="33%"><font SIZE="2">Non-controlling interest in income</font></td>
    <td WIDTH="11%" align="right">
    <p style="margin-right: 8">&nbsp;</td>
    <td WIDTH="11%" align="right">
    <p style="margin-right: 8">&nbsp;</td>
    <td WIDTH="11%" align="right">
    <p style="margin-right: 8">&nbsp;</td>
    <td WIDTH="11%" align="right">
    <p style="margin-right: 8">&nbsp;</td>
    <td WIDTH="11%" align="right">
    <p style="margin-right: 8">&nbsp;</td>
    <td WIDTH="12%" align="right">
    <p style="margin-right: 8">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="33%" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2">&nbsp;&nbsp; of consolidated joint venture</font></td>
    <td WIDTH="11%" align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2"><b>
    <p style="margin-right: 8">0.5</b></font></td>
    <td WIDTH="11%" align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <p style="margin-right: 8">&nbsp;</td>
    <td WIDTH="11%" align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2"><b>
    <p style="margin-right: 8">0.5</b></font></td>
    <td WIDTH="11%" align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2"><b>
    <p style="margin-right: 8">0.6</b></font></td>
    <td WIDTH="11%" align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <p style="margin-right: 8">&nbsp;</td>
    <td WIDTH="12%" align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2"><b>
    <p style="margin-right: 8">0.6</b></font></td>
  </tr>
  <tr>
    <td WIDTH="33%" style="border-top-style: solid; border-top-width: 1">
    <font SIZE="2">Earnings before income taxes</font></td>
    <td WIDTH="11%" align="right" style="border-top-style: solid; border-top-width: 1">
    <font SIZE="2"><b>
    <p style="margin-right: 8">49.1</b></font></td>
    <td WIDTH="11%" align="right" style="border-top-style: solid; border-top-width: 1">
    <font SIZE="2"><b>
    <p style="margin-right: 8">4.6</b></font></td>
    <td WIDTH="11%" align="right" style="border-top-style: solid; border-top-width: 1">
    <font SIZE="2"><b>
    <p style="margin-right: 8">53.7</b></font></td>
    <td WIDTH="11%" align="right" style="border-top-style: solid; border-top-width: 1">
    <font SIZE="2"><b>
    <p style="margin-right: 8">89.0</b></font></td>
    <td WIDTH="11%" align="right" style="border-top-style: solid; border-top-width: 1">
    <font SIZE="2"><b>
    <p style="margin-right: 8">22.3</b></font></td>
    <td WIDTH="12%" align="right" style="border-top-style: solid; border-top-width: 1">
    <font SIZE="2"><b>
    <p style="margin-right: 8">111.3</b></font></td>
  </tr>
  <tr>
    <td WIDTH="33%" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2">Income taxes</font></td>
    <td WIDTH="11%" align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2"><b>
    <p style="margin-right: 4">(3.3)</b></font></td>
    <td WIDTH="11%" align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <p style="margin-right: 8">&nbsp;</td>
    <td WIDTH="11%" align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2"><b>
    <p style="margin-right: 8">(3.3)</b></font></td>
    <td WIDTH="11%" align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2"><b>
    <p style="margin-right: 4">(0.2)</b></font></td>
    <td WIDTH="11%" align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <p style="margin-right: 8">&nbsp;</td>
    <td WIDTH="12%" align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2"><b>
    <p style="margin-right: 4">(0.2)</b></font></td>
  </tr>
  <tr>
    <td WIDTH="33%" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 2">
    <font SIZE="2">Net earnings</font></td>
    <td WIDTH="11%" align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 2">
    <font SIZE="2"><b>
    <p style="margin-right: 8">52.4</b></font></td>
    <td WIDTH="11%" align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 2">
    <font SIZE="2"><b>
    <p style="margin-right: 8">4.6</b></font></td>
    <td WIDTH="11%" align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 2">
    <font SIZE="2"><b>
    <p style="margin-right: 8">57.0</b></font></td>
    <td WIDTH="11%" align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 2">
    <font SIZE="2"><b>
    <p style="margin-right: 8">89.2</b></font></td>
    <td WIDTH="11%" align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 2">
    <font SIZE="2"><b>
    <p style="margin-right: 8">22.3</b></font></td>
    <td WIDTH="12%" align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 2">
    <font SIZE="2"><b>
    <p style="margin-right: 8">111.5</b></font></td>
  </tr>
  <tr>
    <td WIDTH="33%"><font SIZE="2">Basic EPS</font></td>
    <td WIDTH="11%" align="right"><font SIZE="2"><b>
    <p style="margin-right: 8">0.44</b></font></td>
    <td WIDTH="11%" align="right"><font SIZE="2"><b>
    <p style="margin-right: 8">0.04</b></font></td>
    <td WIDTH="11%" align="right"><font SIZE="2"><b>
    <p style="margin-right: 8">0.48</b></font></td>
    <td WIDTH="11%" align="right"><font SIZE="2"><b>
    <p style="margin-right: 8">0.74</b></font></td>
    <td WIDTH="11%" align="right"><font SIZE="2"><b>
    <p style="margin-right: 8">0.18</b></font></td>
    <td WIDTH="12%" align="right"><font SIZE="2"><b>
    <p style="margin-right: 8">0.92</b></font></td>
  </tr>
  <tr>
    <td WIDTH="33%" style="border-bottom: 2px solid #000000"><font SIZE="2">
    Diluted EPS</font></td>
    <td WIDTH="11%" align="right" style="border-bottom: 2px solid #000000">
    <font SIZE="2"><b>
    <p style="margin-right: 8">0.43</b></font></td>
    <td WIDTH="11%" align="right" style="border-bottom: 2px solid #000000">
    <font SIZE="2"><b>
    <p style="margin-right: 8">0.04</b></font></td>
    <td WIDTH="11%" align="right" style="border-bottom: 2px solid #000000">
    <font SIZE="2"><b>
    <p style="margin-right: 8">0.47</b></font></td>
    <td WIDTH="11%" align="right" style="border-bottom: 2px solid #000000">
    <font SIZE="2"><b>
    <p style="margin-right: 8">0.73</b></font></td>
    <td WIDTH="11%" align="right" style="border-bottom: 2px solid #000000">
    <font SIZE="2"><b>
    <p style="margin-right: 8">0.18</b></font></td>
    <td WIDTH="12%" align="right" style="border-bottom: 2px solid #000000">
    <font SIZE="2"><b>
    <p style="margin-right: 8">0.92</b></font></td>
  </tr>
  <tr>
    <td WIDTH="33%">&nbsp;</td>
    <td WIDTH="11%" align="right">
    <p style="margin-right: 8">&nbsp;</td>
    <td WIDTH="11%" align="right">
    <p style="margin-right: 8">&nbsp;</td>
    <td WIDTH="11%" align="right">
    <p style="margin-right: 8">&nbsp;</td>
    <td WIDTH="11%" align="right">
    <p style="margin-right: 8">&nbsp;</td>
    <td WIDTH="11%" align="right">
    <p style="margin-right: 8">&nbsp;</td>
    <td WIDTH="12%" align="right">
    <p style="margin-right: 8">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="33%">&nbsp;</td>
    <td WIDTH="11%" align="right">
    <p style="margin-right: 8">&nbsp;</td>
    <td WIDTH="11%" align="right">
    <p style="margin-right: 8">&nbsp;</td>
    <td WIDTH="11%" align="right">
    <p style="margin-right: 8">&nbsp;</td>
    <td WIDTH="11%" align="right">
    <p style="margin-right: 8">&nbsp;</td>
    <td WIDTH="11%" align="right">
    <p style="margin-right: 8">&nbsp;</td>
    <td WIDTH="12%" align="right">
    <p style="margin-right: 8">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="33%" style="border-bottom: 1px solid #000000"><font SIZE="2"><i>
    (in $ millions, except per share amounts)</i></font></td>
    <td WIDTH="11%" align="right" style="border-bottom: 1px solid #000000" bgcolor="#CCFFFF">
    <p style="margin-right: 8">&nbsp;</td>
    <td WIDTH="11%" align="right" style="border-bottom: 1px solid #000000" bgcolor="#CCFFFF">
    <p style="margin-right: 8">&nbsp;</td>
    <td WIDTH="11%" align="right" style="border-right-style: solid; border-right-width: 1; border-bottom: 1px solid #000000" bgcolor="#CCFFFF">
    <font SIZE="2">
    <p style="margin-right: 8">Q3 2006</font></td>
    <td WIDTH="11%" align="right" style="border-left-style: solid; border-left-width: 1; border-bottom: 1px solid #000000" bgcolor="#CCFFFF">
    <p style="margin-right: 8">&nbsp;</td>
    <td WIDTH="11%" align="right" style="border-bottom: 1px solid #000000" bgcolor="#CCFFFF">
    <p style="margin-right: 8">&nbsp;</td>
    <td WIDTH="12%" align="right" style="border-right-style: solid; border-right-width: 1; border-bottom: 1px solid #000000" bgcolor="#CCFFFF">
    <font SIZE="2">
    <p style="margin-right: 8">YTD 2006</font></td>
  </tr>
  <tr>
    <td WIDTH="33%" style="border-bottom: 1px solid #000000">&nbsp;</td>
    <td WIDTH="11%" align="right" style="border-bottom: 1px solid #000000" bgcolor="#CCFFFF">
    <font SIZE="2">
    <p style="margin-right: 8">Reported</font></td>
    <td WIDTH="11%" align="right" style="border-bottom: 1px solid #000000" bgcolor="#CCFFFF">
    <p style="margin-right: 8">&nbsp;</td>
    <td WIDTH="11%" align="right" style="border-right-style: solid; border-right-width: 1; border-bottom: 1px solid #000000" bgcolor="#CCFFFF">
    <font SIZE="2">
    <p style="margin-right: 8">Adjusted</font></td>
    <td WIDTH="11%" align="right" style="border-left-style: solid; border-left-width: 1; border-bottom: 1px solid #000000" bgcolor="#CCFFFF">
    <font SIZE="2">
    <p style="margin-right: 8">Reported</font></td>
    <td WIDTH="11%" align="right" style="border-bottom: 1px solid #000000" bgcolor="#CCFFFF">
    <p style="margin-right: 8">&nbsp;</td>
    <td WIDTH="12%" align="right" style="border-right-style: solid; border-right-width: 1; border-bottom: 1px solid #000000" bgcolor="#CCFFFF">
    <font SIZE="2">
    <p style="margin-right: 8">Adjusted</font></td>
  </tr>
  <tr>
    <td WIDTH="33%"><font SIZE="2">Sales</font></td>
    <td WIDTH="11%" align="right" bgcolor="#CCFFFF"><font SIZE="2">
    <p style="margin-right: 8">233.9</font></td>
    <td WIDTH="11%" align="right" bgcolor="#CCFFFF">
    <p style="margin-right: 8">&nbsp;</td>
    <td WIDTH="11%" align="right" bgcolor="#CCFFFF"><font SIZE="2">
    <p style="margin-right: 8">233.9</font></td>
    <td WIDTH="11%" align="right" bgcolor="#CCFFFF"><font SIZE="2">
    <p style="margin-right: 8">538.0</font></td>
    <td WIDTH="11%" align="right" bgcolor="#CCFFFF">
    <p style="margin-right: 8">&nbsp;</td>
    <td WIDTH="12%" align="right" bgcolor="#CCFFFF"><font SIZE="2">
    <p style="margin-right: 8">538.0</font></td>
  </tr>
  <tr>
    <td WIDTH="33%" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2">Cost of sales</font></td>
    <td WIDTH="11%" align="right" style="border-bottom-style: solid; border-bottom-width: 1" bgcolor="#CCFFFF">
    <font SIZE="2">
    <p style="margin-right: 8">158.2</font></td>
    <td WIDTH="11%" align="right" style="border-bottom-style: solid; border-bottom-width: 1" bgcolor="#CCFFFF">
    <p style="margin-right: 8">&nbsp;</td>
    <td WIDTH="11%" align="right" style="border-bottom-style: solid; border-bottom-width: 1" bgcolor="#CCFFFF">
    <font SIZE="2">
    <p style="margin-right: 8">158.2</font></td>
    <td WIDTH="11%" align="right" style="border-bottom-style: solid; border-bottom-width: 1" bgcolor="#CCFFFF">
    <font SIZE="2">
    <p style="margin-right: 8">358.0</font></td>
    <td WIDTH="11%" align="right" style="border-bottom-style: solid; border-bottom-width: 1" bgcolor="#CCFFFF">
    <p style="margin-right: 8">&nbsp;</td>
    <td WIDTH="12%" align="right" style="border-bottom-style: solid; border-bottom-width: 1" bgcolor="#CCFFFF">
    <font SIZE="2">
    <p style="margin-right: 8">358.0</font></td>
  </tr>
  <tr>
    <td WIDTH="33%" style="border-top-style: solid; border-top-width: 1">
    <font SIZE="2">Gross profit</font></td>
    <td WIDTH="11%" align="right" style="border-top-style: solid; border-top-width: 1" bgcolor="#CCFFFF">
    <font SIZE="2">
    <p style="margin-right: 8">75.7</font></td>
    <td WIDTH="11%" align="right" style="border-top-style: solid; border-top-width: 1" bgcolor="#CCFFFF">
    <font SIZE="2">
    <p style="margin-right: 8">-</font></td>
    <td WIDTH="11%" align="right" style="border-top-style: solid; border-top-width: 1" bgcolor="#CCFFFF">
    <font SIZE="2">
    <p style="margin-right: 8">75.7</font></td>
    <td WIDTH="11%" align="right" style="border-top-style: solid; border-top-width: 1" bgcolor="#CCFFFF">
    <font SIZE="2">
    <p style="margin-right: 8">180.0</font></td>
    <td WIDTH="11%" align="right" style="border-top-style: solid; border-top-width: 1" bgcolor="#CCFFFF">
    <font SIZE="2">
    <p style="margin-right: 8">-</font></td>
    <td WIDTH="12%" align="right" style="border-top-style: solid; border-top-width: 1" bgcolor="#CCFFFF">
    <font SIZE="2">
    <p style="margin-right: 8">180.0</font></td>
  </tr>
  <tr>
    <td WIDTH="33%"><font SIZE="2">Selling, general and</font></td>
    <td WIDTH="11%" align="right" bgcolor="#CCFFFF">
    <p style="margin-right: 8">&nbsp;</td>
    <td WIDTH="11%" align="right" bgcolor="#CCFFFF">
    <p style="margin-right: 8">&nbsp;</td>
    <td WIDTH="11%" align="right" bgcolor="#CCFFFF">
    <p style="margin-right: 8">&nbsp;</td>
    <td WIDTH="11%" align="right" bgcolor="#CCFFFF">
    <p style="margin-right: 8">&nbsp;</td>
    <td WIDTH="11%" align="right" bgcolor="#CCFFFF">
    <p style="margin-right: 8">&nbsp;</td>
    <td WIDTH="12%" align="right" bgcolor="#CCFFFF">
    <p style="margin-right: 8">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="33%" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2">&nbsp;&nbsp; administrative expenses</font></td>
    <td WIDTH="11%" align="right" style="border-bottom-style: solid; border-bottom-width: 1" bgcolor="#CCFFFF">
    <font SIZE="2">
    <p style="margin-right: 8">22.0</font></td>
    <td WIDTH="11%" align="right" style="border-bottom-style: solid; border-bottom-width: 1" bgcolor="#CCFFFF">
    <p style="margin-right: 8">&nbsp;</td>
    <td WIDTH="11%" align="right" style="border-bottom-style: solid; border-bottom-width: 1" bgcolor="#CCFFFF">
    <font SIZE="2">
    <p style="margin-right: 8">22.0</font></td>
    <td WIDTH="11%" align="right" style="border-bottom-style: solid; border-bottom-width: 1" bgcolor="#CCFFFF">
    <font SIZE="2">
    <p style="margin-right: 8">60.8</font></td>
    <td WIDTH="11%" align="right" style="border-bottom-style: solid; border-bottom-width: 1" bgcolor="#CCFFFF">
    <p style="margin-right: 8">&nbsp;</td>
    <td WIDTH="12%" align="right" style="border-bottom-style: solid; border-bottom-width: 1" bgcolor="#CCFFFF">
    <font SIZE="2">
    <p style="margin-right: 8">60.8</font></td>
  </tr>
  <tr>
    <td WIDTH="33%" style="border-top-style: solid; border-top-width: 1">&nbsp;</td>
    <td WIDTH="11%" align="right" style="border-top-style: solid; border-top-width: 1" bgcolor="#CCFFFF">
    <font SIZE="2">
    <p style="margin-right: 8">53.7</font></td>
    <td WIDTH="11%" align="right" style="border-top-style: solid; border-top-width: 1" bgcolor="#CCFFFF">
    <font SIZE="2">
    <p style="margin-right: 8">-</font></td>
    <td WIDTH="11%" align="right" style="border-top-style: solid; border-top-width: 1" bgcolor="#CCFFFF">
    <font SIZE="2">
    <p style="margin-right: 8">53.7</font></td>
    <td WIDTH="11%" align="right" style="border-top-style: solid; border-top-width: 1" bgcolor="#CCFFFF">
    <font SIZE="2">
    <p style="margin-right: 8">119.2</font></td>
    <td WIDTH="11%" align="right" style="border-top-style: solid; border-top-width: 1" bgcolor="#CCFFFF">
    <font SIZE="2">
    <p style="margin-right: 8">-</font></td>
    <td WIDTH="12%" align="right" style="border-top-style: solid; border-top-width: 1" bgcolor="#CCFFFF">
    <font SIZE="2">
    <p style="margin-right: 8">119.2</font></td>
  </tr>
  <tr>
    <td WIDTH="33%"><font SIZE="2">Depreciation and amortization</font></td>
    <td WIDTH="11%" align="right" bgcolor="#CCFFFF"><font SIZE="2">
    <p style="margin-right: 8">8.2</font></td>
    <td WIDTH="11%" align="right" bgcolor="#CCFFFF">
    <p style="margin-right: 8">&nbsp;</td>
    <td WIDTH="11%" align="right" bgcolor="#CCFFFF"><font SIZE="2">
    <p style="margin-right: 8">8.2</font></td>
    <td WIDTH="11%" align="right" bgcolor="#CCFFFF"><font SIZE="2">
    <p style="margin-right: 8">23.3</font></td>
    <td WIDTH="11%" align="right" bgcolor="#CCFFFF">
    <p style="margin-right: 8">&nbsp;</td>
    <td WIDTH="12%" align="right" bgcolor="#CCFFFF"><font SIZE="2">
    <p style="margin-right: 8">23.3</font></td>
  </tr>
  <tr>
    <td WIDTH="33%"><font SIZE="2">Interest, net</font></td>
    <td WIDTH="11%" align="right" bgcolor="#CCFFFF"><font SIZE="2">
    <p style="margin-right: 8">0.7</font></td>
    <td WIDTH="11%" align="right" bgcolor="#CCFFFF">
    <p style="margin-right: 8">&nbsp;</td>
    <td WIDTH="11%" align="right" bgcolor="#CCFFFF"><font SIZE="2">
    <p style="margin-right: 8">0.7</font></td>
    <td WIDTH="11%" align="right" bgcolor="#CCFFFF"><font SIZE="2">
    <p style="margin-right: 8">2.0</font></td>
    <td WIDTH="11%" align="right" bgcolor="#CCFFFF">
    <p style="margin-right: 8">&nbsp;</td>
    <td WIDTH="12%" align="right" bgcolor="#CCFFFF"><font SIZE="2">
    <p style="margin-right: 8">2.0</font></td>
  </tr>
  <tr>
    <td WIDTH="33%"><font SIZE="2">Non-controlling interest in income</font></td>
    <td WIDTH="11%" align="right" bgcolor="#CCFFFF">
    <p style="margin-right: 8">&nbsp;</td>
    <td WIDTH="11%" align="right" bgcolor="#CCFFFF">
    <p style="margin-right: 8">&nbsp;</td>
    <td WIDTH="11%" align="right" bgcolor="#CCFFFF">
    <p style="margin-right: 8">&nbsp;</td>
    <td WIDTH="11%" align="right" bgcolor="#CCFFFF">
    <p style="margin-right: 8">&nbsp;</td>
    <td WIDTH="11%" align="right" bgcolor="#CCFFFF">
    <p style="margin-right: 8">&nbsp;</td>
    <td WIDTH="12%" align="right" bgcolor="#CCFFFF">
    <p style="margin-right: 8">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="33%" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2">&nbsp;&nbsp; of consolidated joint venture</font></td>
    <td WIDTH="11%" align="right" style="border-bottom-style: solid; border-bottom-width: 1" bgcolor="#CCFFFF">
    <font SIZE="2">
    <p style="margin-right: 8">0.2</font></td>
    <td WIDTH="11%" align="right" style="border-bottom-style: solid; border-bottom-width: 1" bgcolor="#CCFFFF">
    <p style="margin-right: 8">&nbsp;</td>
    <td WIDTH="11%" align="right" style="border-bottom-style: solid; border-bottom-width: 1" bgcolor="#CCFFFF">
    <font SIZE="2">
    <p style="margin-right: 8">0.2</font></td>
    <td WIDTH="11%" align="right" style="border-bottom-style: solid; border-bottom-width: 1" bgcolor="#CCFFFF">
    <font SIZE="2">
    <p style="margin-right: 8">0.2</font></td>
    <td WIDTH="11%" align="right" style="border-bottom-style: solid; border-bottom-width: 1" bgcolor="#CCFFFF">
    <p style="margin-right: 8">&nbsp;</td>
    <td WIDTH="12%" align="right" style="border-bottom-style: solid; border-bottom-width: 1" bgcolor="#CCFFFF">
    <font SIZE="2">
    <p style="margin-right: 8">0.2</font></td>
  </tr>
  <tr>
    <td WIDTH="33%" style="border-top-style: solid; border-top-width: 1">
    <font SIZE="2">Earnings before income taxes</font></td>
    <td WIDTH="11%" align="right" style="border-top-style: solid; border-top-width: 1" bgcolor="#CCFFFF">
    <font SIZE="2">
    <p style="margin-right: 8">44.6</font></td>
    <td WIDTH="11%" align="right" style="border-top-style: solid; border-top-width: 1" bgcolor="#CCFFFF">
    <font SIZE="2">
    <p style="margin-right: 8">-</font></td>
    <td WIDTH="11%" align="right" style="border-top-style: solid; border-top-width: 1" bgcolor="#CCFFFF">
    <font SIZE="2">
    <p style="margin-right: 8">44.6</font></td>
    <td WIDTH="11%" align="right" style="border-top-style: solid; border-top-width: 1" bgcolor="#CCFFFF">
    <font SIZE="2">
    <p style="margin-right: 8">93.7</font></td>
    <td WIDTH="11%" align="right" style="border-top-style: solid; border-top-width: 1" bgcolor="#CCFFFF">
    <font SIZE="2">
    <p style="margin-right: 8">-</font></td>
    <td WIDTH="12%" align="right" style="border-top-style: solid; border-top-width: 1" bgcolor="#CCFFFF">
    <font SIZE="2">
    <p style="margin-right: 8">93.7</font></td>
  </tr>
  <tr>
    <td WIDTH="33%" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2">Income taxes</font></td>
    <td WIDTH="11%" align="right" style="border-bottom-style: solid; border-bottom-width: 1" bgcolor="#CCFFFF">
    <font SIZE="2">
    <p style="margin-right: 8">1.8</font></td>
    <td WIDTH="11%" align="right" style="border-bottom-style: solid; border-bottom-width: 1" bgcolor="#CCFFFF">
    <p style="margin-right: 8">&nbsp;</td>
    <td WIDTH="11%" align="right" style="border-bottom-style: solid; border-bottom-width: 1" bgcolor="#CCFFFF">
    <font SIZE="2">
    <p style="margin-right: 8">1.8</font></td>
    <td WIDTH="11%" align="right" style="border-bottom-style: solid; border-bottom-width: 1" bgcolor="#CCFFFF">
    <font SIZE="2">
    <p style="margin-right: 8">3.7</font></td>
    <td WIDTH="11%" align="right" style="border-bottom-style: solid; border-bottom-width: 1" bgcolor="#CCFFFF">
    <p style="margin-right: 8">&nbsp;</td>
    <td WIDTH="12%" align="right" style="border-bottom-style: solid; border-bottom-width: 1" bgcolor="#CCFFFF">
    <font SIZE="2">
    <p style="margin-right: 8">3.7</font></td>
  </tr>
  <tr>
    <td WIDTH="33%" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 2">
    <font SIZE="2">Net earnings</font></td>
    <td WIDTH="11%" align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 2" bgcolor="#CCFFFF">
    <font SIZE="2">
    <p style="margin-right: 8">42.8</font></td>
    <td WIDTH="11%" align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 2" bgcolor="#CCFFFF">
    <font SIZE="2">
    <p style="margin-right: 8">-</font></td>
    <td WIDTH="11%" align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 2" bgcolor="#CCFFFF">
    <font SIZE="2">
    <p style="margin-right: 8">42.8</font></td>
    <td WIDTH="11%" align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 2" bgcolor="#CCFFFF">
    <font SIZE="2">
    <p style="margin-right: 8">90.0</font></td>
    <td WIDTH="11%" align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 2" bgcolor="#CCFFFF">
    <font SIZE="2">
    <p style="margin-right: 8">-</font></td>
    <td WIDTH="12%" align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 2" bgcolor="#CCFFFF">
    <font SIZE="2">
    <p style="margin-right: 8">90.0</font></td>
  </tr>
  <tr>
    <td WIDTH="33%"><font SIZE="2">Basic EPS</font></td>
    <td WIDTH="11%" align="right" bgcolor="#CCFFFF"><font SIZE="2">
    <p style="margin-right: 8">0.36</font></td>
    <td WIDTH="11%" align="right" bgcolor="#CCFFFF"><font SIZE="2">
    <p style="margin-right: 8">-</font></td>
    <td WIDTH="11%" align="right" bgcolor="#CCFFFF"><font SIZE="2">
    <p style="margin-right: 8">0.36</font></td>
    <td WIDTH="11%" align="right" bgcolor="#CCFFFF"><font SIZE="2">
    <p style="margin-right: 8">0.75</font></td>
    <td WIDTH="11%" align="right" bgcolor="#CCFFFF"><font SIZE="2">
    <p style="margin-right: 8">-</font></td>
    <td WIDTH="12%" align="right" bgcolor="#CCFFFF"><font SIZE="2">
    <p style="margin-right: 8">0.75</font></td>
  </tr>
  <tr>
    <td WIDTH="33%" style="border-bottom: 2px solid #000000"><font SIZE="2">
    Diluted EPS</font></td>
    <td WIDTH="11%" align="right" style="border-bottom: 2px solid #000000" bgcolor="#CCFFFF">
    <font SIZE="2">
    <p style="margin-right: 8">0.35</font></td>
    <td WIDTH="11%" align="right" style="border-bottom: 2px solid #000000" bgcolor="#CCFFFF">
    <font SIZE="2">
    <p style="margin-right: 8">-</font></td>
    <td WIDTH="11%" align="right" style="border-bottom: 2px solid #000000" bgcolor="#CCFFFF">
    <font SIZE="2">
    <p style="margin-right: 8">0.35</font></td>
    <td WIDTH="11%" align="right" style="border-bottom: 2px solid #000000" bgcolor="#CCFFFF">
    <font SIZE="2">
    <p style="margin-right: 8">0.74</font></td>
    <td WIDTH="11%" align="right" style="border-bottom: 2px solid #000000" bgcolor="#CCFFFF">
    <font SIZE="2">
    <p style="margin-right: 8">-</font></td>
    <td WIDTH="12%" align="right" style="border-bottom: 2px solid #000000" bgcolor="#CCFFFF">
    <font SIZE="2">
    <p style="margin-right: 8">0.74</font></td>
  </tr>
</table>
<font style="font-size: 9pt"><i>
<p>Certain minor rounding variances exist between the financial statements and
this summary <sup><br>
(1) </sup>Adjustment to remove restructuring and other charges. See page 7. <br>
EPS amounts may not add due to rounding</p>
</i></font><font SIZE="2"></font>
<table CELLSPACING="0" BORDER="0" WIDTH="100%" cellpadding="0" style="border-collapse: collapse" bordercolor="#111111">
  <tr>
    <td><font FACE="Times New Roman PS" SIZE="2"><i>
    <p align="right">GILDAN QUARTERLY REPORT &#150; Q3 2007 p.15</i></font></td>
  </tr>
</table>
<hr color="#000000" size="5"><p Style='page-break-before:always'>
<table CELLSPACING="0" BORDER="0" WIDTH="100%" cellpadding="0" style="border-collapse: collapse" bordercolor="#111111">
  <tr>
    <td width="475">
    <img border="0" src="gildansmlogo.jpg" width="88" height="20"></td>
    <td width="483" align="right"><font FACE="Times New Roman PS" SIZE="2"><i>
    MANAGEMENT'S DISCUSSION AND ANALYSIS</i></font></td>
  </tr>
</table>
<font SIZE="2"><b>
<p>EBITDA </p>
</b>
<p ALIGN="JUSTIFY">EBITDA is calculated as earnings before interest, taxes,
depreciation and amortization, and non-controlling interest in income of the
consolidated joint venture, and excludes the impact of restructuring and other
charges. We use EBITDA, among other measures, to assess the operating
performance of our business. We also believe this measure is commonly used by
investors and analysts to measure a company's ability to service debt and to
meet other payment obligations, or as a common valuation measurement. We exclude
depreciation and amortization expenses, which are non-cash in nature and can
vary significantly depending upon accounting methods or non-operating factors
such as historical cost. Excluding these items does not imply they are
necessarily non-recurring. </p>
</font>
<table CELLSPACING="0" BORDER="0" WIDTH="100%" cellpadding="0" style="border-collapse: collapse" bordercolor="#111111">
  <tr>
    <td WIDTH="35%" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2"><i>(in $ millions)</i></font></td>
    <td WIDTH="16%" align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2"><b>
    <p style="margin-right: 8">Q3 2007</b></font></td>
    <td WIDTH="16%" align="right" style="border-bottom-style: solid; border-bottom-width: 1" bgcolor="#CCFFFF">
    <font SIZE="2">
    <p style="margin-right: 8">Q3 2006</font></td>
    <td WIDTH="16%" align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2"><b>
    <p style="margin-right: 8">YTD 2007</b></font></td>
    <td WIDTH="17%" align="right" style="border-bottom-style: solid; border-bottom-width: 1" bgcolor="#CCFFFF">
    <font SIZE="2">
    <p style="margin-right: 8">YTD 2006</font></td>
  </tr>
  <tr>
    <td WIDTH="35%" style="border-top-style: solid; border-top-width: 1">
    <font SIZE="2">Net earnings</font></td>
    <td WIDTH="16%" align="right" style="border-top-style: solid; border-top-width: 1">
    <font SIZE="2"><b>
    <p style="margin-right: 8">52.4</b></font></td>
    <td WIDTH="16%" align="right" style="border-top-style: solid; border-top-width: 1" bgcolor="#CCFFFF">
    <font SIZE="2">
    <p style="margin-right: 8">42.8</font></td>
    <td WIDTH="16%" align="right" style="border-top-style: solid; border-top-width: 1">
    <font SIZE="2"><b>
    <p style="margin-right: 8">89.2</b></font></td>
    <td WIDTH="17%" align="right" style="border-top-style: solid; border-top-width: 1" bgcolor="#CCFFFF">
    <font SIZE="2">
    <p style="margin-right: 8">90.0</font></td>
  </tr>
  <tr>
    <td WIDTH="35%"><font SIZE="2">Restructuring and other charges <sup>(1)</sup></font></td>
    <td WIDTH="16%" align="right"><font SIZE="2"><b>
    <p style="margin-right: 8">4.6</b></font></td>
    <td WIDTH="16%" align="right" bgcolor="#CCFFFF"><font SIZE="2">
    <p style="margin-right: 8">-</font></td>
    <td WIDTH="16%" align="right"><font SIZE="2"><b>
    <p style="margin-right: 8">22.3</b></font></td>
    <td WIDTH="17%" align="right" bgcolor="#CCFFFF"><font SIZE="2">
    <p style="margin-right: 8">-</font></td>
  </tr>
  <tr>
    <td WIDTH="35%"><font SIZE="2">Depreciation and amortization</font></td>
    <td WIDTH="16%" align="right"><font SIZE="2"><b>
    <p style="margin-right: 8">10.3</b></font></td>
    <td WIDTH="16%" align="right" bgcolor="#CCFFFF"><font SIZE="2">
    <p style="margin-right: 8">8.2</font></td>
    <td WIDTH="16%" align="right"><font SIZE="2"><b>
    <p style="margin-right: 8">28.5</b></font></td>
    <td WIDTH="17%" align="right" bgcolor="#CCFFFF"><font SIZE="2">
    <p style="margin-right: 8">23.3</font></td>
  </tr>
  <tr>
    <td WIDTH="35%"><font SIZE="2">Interest, net</font></td>
    <td WIDTH="16%" align="right"><font SIZE="2"><b>
    <p style="margin-right: 8">1.5</b></font></td>
    <td WIDTH="16%" align="right" bgcolor="#CCFFFF"><font SIZE="2">
    <p style="margin-right: 8">0.7</font></td>
    <td WIDTH="16%" align="right"><font SIZE="2"><b>
    <p style="margin-right: 8">3.5</b></font></td>
    <td WIDTH="17%" align="right" bgcolor="#CCFFFF"><font SIZE="2">
    <p style="margin-right: 8">2.0</font></td>
  </tr>
  <tr>
    <td WIDTH="35%"><font SIZE="2">Income taxes</font></td>
    <td WIDTH="16%" align="right"><font SIZE="2"><b>
    <p style="margin-right: 4">(3.3)</b></font></td>
    <td WIDTH="16%" align="right" bgcolor="#CCFFFF"><font SIZE="2">
    <p style="margin-right: 8">1.8</font></td>
    <td WIDTH="16%" align="right"><font SIZE="2"><b>
    <p style="margin-right: 4">(0.2)</b></font></td>
    <td WIDTH="17%" align="right" bgcolor="#CCFFFF"><font SIZE="2">
    <p style="margin-right: 8">3.7</font></td>
  </tr>
  <tr>
    <td WIDTH="35%"><font SIZE="2">Non-controlling interest in income of</font></td>
    <td WIDTH="16%" align="right">
    <p style="margin-right: 8">&nbsp;</td>
    <td WIDTH="16%" align="right" bgcolor="#CCFFFF">
    <p style="margin-right: 8">&nbsp;</td>
    <td WIDTH="16%" align="right">
    <p style="margin-right: 8">&nbsp;</td>
    <td WIDTH="17%" align="right" bgcolor="#CCFFFF">
    <p style="margin-right: 8">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="35%" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2">&nbsp;&nbsp; consolidated joint venture</font></td>
    <td WIDTH="16%" align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2"><b>
    <p style="margin-right: 8">0.5</b></font></td>
    <td WIDTH="16%" align="right" style="border-bottom-style: solid; border-bottom-width: 1" bgcolor="#CCFFFF">
    <font SIZE="2">
    <p style="margin-right: 8">0.2</font></td>
    <td WIDTH="16%" align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2"><b>
    <p style="margin-right: 8">0.6</b></font></td>
    <td WIDTH="17%" align="right" style="border-bottom-style: solid; border-bottom-width: 1" bgcolor="#CCFFFF">
    <font SIZE="2">
    <p style="margin-right: 8">0.2</font></td>
  </tr>
  <tr>
    <td WIDTH="35%" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 2">
    <font SIZE="2">EBITDA</font></td>
    <td WIDTH="16%" align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 2">
    <font SIZE="2"><b>
    <p style="margin-right: 8">66.0</b></font></td>
    <td WIDTH="16%" align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 2" bgcolor="#CCFFFF">
    <font SIZE="2">
    <p style="margin-right: 8">53.7</font></td>
    <td WIDTH="16%" align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 2">
    <font SIZE="2"><b>
    <p style="margin-right: 8">143.9</b></font></td>
    <td WIDTH="17%" align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 2" bgcolor="#CCFFFF">
    <font SIZE="2">
    <p style="margin-right: 8">119.2</font></td>
  </tr>
</table>
<font style="font-size: 9pt"><i>
<p>Certain minor rounding variances exist between the financial statements and
this summary. <sup><br>
(1)</sup> See page 7. </p>
</i></font><font SIZE="2"><b>
<p>Total Indebtedness and Net Indebtedness </p>
</b>
<p>We consider total indebtedness and net indebtedness to be important
indicators of the financial leverage of the Company. </p>
</font>
<table CELLSPACING="0" BORDER="0" WIDTH="100%" cellpadding="0" style="border-collapse: collapse" bordercolor="#111111">
  <tr>
    <td WIDTH="42%"><font SIZE="2"><i>(in $ millions)</i></font></td>
    <td WIDTH="19%" align="right">
    <p style="margin-right: 8">&nbsp;</td>
    <td WIDTH="19%" align="right">
    <p style="margin-right: 8">&nbsp;</td>
    <td WIDTH="20%" align="right">
    <p style="margin-right: 8">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="42%" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="19%" align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <p style="margin-right: 8">
    <font SIZE="2"><b>Q3 2007</b></font></td>
    <td WIDTH="19%" align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <p style="margin-right: 8">
    <font SIZE="2">Q4 2006</font></td>
    <td WIDTH="20%" align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <p style="margin-right: 8">
    <font SIZE="2">Q3 2006</font></td>
  </tr>
  <tr>
    <td WIDTH="42%" style="border-top-style: solid; border-top-width: 1">
    <font SIZE="2">Bank indebtedness</font></td>
    <td WIDTH="19%" align="right" style="border-top-style: solid; border-top-width: 1">
    <p style="margin-right: 4">
    <font SIZE="2"><b>(3.5)</b></font></td>
    <td WIDTH="19%" align="right" style="border-top-style: solid; border-top-width: 1">
    <p style="margin-right: 4">
    <font SIZE="2">(3.5)</font></td>
    <td WIDTH="20%" align="right" style="border-top-style: solid; border-top-width: 1">
    <p style="margin-right: 4">
    <font SIZE="2">(4.0)</font></td>
  </tr>
  <tr>
    <td WIDTH="42%"><font SIZE="2">Current portion of long-term debt</font></td>
    <td WIDTH="19%" align="right">
    <p style="margin-right: 4"><font SIZE="2"><b>(3.9)</b></font></td>
    <td WIDTH="19%" align="right">
    <p style="margin-right: 4"><font SIZE="2">(21.8)</font></td>
    <td WIDTH="20%" align="right">
    <p style="margin-right: 4"><font SIZE="2">(19.6)</font></td>
  </tr>
  <tr>
    <td WIDTH="42%" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2">Long-term debt</font></td>
    <td WIDTH="19%" align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <p style="margin-right: 4">
    <font SIZE="2"><b>(39.0)</b></font></td>
    <td WIDTH="19%" align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <p style="margin-right: 4">
    <font SIZE="2">(12.0)</font></td>
    <td WIDTH="20%" align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <p style="margin-right: 4">
    <font SIZE="2">(9.0)</font></td>
  </tr>
  <tr>
    <td WIDTH="42%" style="border-top-style: solid; border-top-width: 1">
    <font SIZE="2"><b>Total indebtedness</b></font></td>
    <td WIDTH="19%" align="right" style="border-top-style: solid; border-top-width: 1">
    <p style="margin-right: 4">
    <font SIZE="2"><b>(46.4)</b></font></td>
    <td WIDTH="19%" align="right" style="border-top-style: solid; border-top-width: 1">
    <p style="margin-right: 4">
    <font SIZE="2">(37.3)</font></td>
    <td WIDTH="20%" align="right" style="border-top-style: solid; border-top-width: 1">
    <p style="margin-right: 4">
    <font SIZE="2">(32.6)</font></td>
  </tr>
  <tr>
    <td WIDTH="42%">&nbsp;</td>
    <td WIDTH="19%" align="right">
    <p style="margin-right: 8">&nbsp;</td>
    <td WIDTH="19%" align="right">
    <p style="margin-right: 8">&nbsp;</td>
    <td WIDTH="20%" align="right">
    <p style="margin-right: 4">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="42%" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2">Cash and cash equivalents</font></td>
    <td WIDTH="19%" align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <p style="margin-right: 8">
    <font SIZE="2"><b>7.5</b></font></td>
    <td WIDTH="19%" align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <p style="margin-right: 8">
    <font SIZE="2">29.0</font></td>
    <td WIDTH="20%" align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <p style="margin-right: 8">
    <font SIZE="2">63.9</font></td>
  </tr>
  <tr>
    <td WIDTH="42%" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 2">
    <font SIZE="2"><b>(Net indebtedness) cash in excess of debt</b></font></td>
    <td WIDTH="19%" align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 2">
    <p style="margin-right: 4">
    <font SIZE="2"><b>(38.9)</b></font></td>
    <td WIDTH="19%" align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 2">
    <p style="margin-right: 4">
    <font SIZE="2">(8.3)</font></td>
    <td WIDTH="20%" align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 2">
    <p style="margin-right: 4">
    <font SIZE="2">31.3</font></td>
  </tr>
</table>
<font style="font-size: 9pt"><i>
<p>Certain minor rounding variances exist between the financial statements and
this summary. </p>
</i></font><font SIZE="2">
<table CELLSPACING="0" BORDER="0" WIDTH="100%" cellpadding="0" style="border-collapse: collapse" bordercolor="#111111" height="17">
  <tr>
    <td style="border-bottom-style: solid; border-bottom-width: 1" height="17">
    <font FACE="Arial MT" SIZE="3" color="#3988C1">Risks and Uncertainties</font></td>
  </tr>
</table>
<p ALIGN="JUSTIFY">The Company is subject to a variety of business risks. The
risks listed below are risks that could materially affect our business,
financial condition and results of operations, but are not necessarily the only
ones facing the Company. Additional risks that are not currently known to us or
that we currently deem immaterial could also materially and adversely affect our
business. The most significant risks we face are as follows: </p>
</font><font FACE="Wingdings" LANG="JA" SIZE="2">
<ul>
  <li></font>
  <p style="margin-top: 0; margin-bottom: 0"><font SIZE="2">Our ability to implement our strategies and plans;
  </font></li>
  <li>
  <p style="margin-top: 0; margin-bottom: 0"><font SIZE="2">Our industry is competitive; </font></li>
  <li>
  <p style="margin-top: 0; margin-bottom: 0"><font SIZE="2">Our industry is subject to pricing pressures; </li>
  </font><font FACE="Wingdings" LANG="JA" SIZE="2">
  <li></font>
  <p style="margin-top: 0; margin-bottom: 0"><font SIZE="2">Our success depends on our ability to anticipate
  evolving consumer preferences and trends; </font></li>
  <li>
  <p style="margin-top: 0; margin-bottom: 0"><font SIZE="2">Our operations are subject to environmental regulation;
  </font></li>
  <li>
  <p style="margin-top: 0; margin-bottom: 0"><font SIZE="2">We rely on a relatively small number of significant
  customers; </font></li>
  <li>
  <p style="margin-top: 0; margin-bottom: 0"><font SIZE="2">Our customers do not commit to purchase minimum quantities;
  </li>
</ul>
</font><font style="font-size: 9pt"><i></i></font>
<table CELLSPACING="0" BORDER="0" WIDTH="100%" cellpadding="0" style="border-collapse: collapse" bordercolor="#111111">
  <tr>
    <td><font FACE="Times New Roman PS" SIZE="2"><i>
    <p align="right">GILDAN QUARTERLY REPORT &#150; Q3 2007 p.16</i></font></td>
  </tr>
</table>
<hr color="#000000" size="5"><p Style='page-break-before:always'>
<table CELLSPACING="0" BORDER="0" WIDTH="100%" cellpadding="0" style="border-collapse: collapse" bordercolor="#111111">
  <tr>
    <td width="475">
    <img border="0" src="gildansmlogo.jpg" width="88" height="20"></td>
    <td width="483" align="right"><font FACE="Times New Roman PS" SIZE="2"><i>
    MANAGEMENT'S DISCUSSION AND ANALYSIS</i></font></td>
  </tr>
</table>
<font FACE="Wingdings" LANG="JA" SIZE="2">
<ul>
  <li></font>
  <p style="margin-top: 0; margin-bottom: 0"><font SIZE="2">We are exposed to concentrations of credit risk;
  </li>
  </font><font FACE="Wingdings" LANG="JA" SIZE="2">
  <li></font>
  <p style="margin-top: 0; margin-bottom: 0"><font SIZE="2">Our business is affected by changes in international
  trade legislation; </li>
  </font><font FACE="Wingdings" LANG="JA" SIZE="2">
  <li>
  <p ALIGN="justify" style="margin-top: 0; margin-bottom: 0"></font><font SIZE="2">We currently pay income tax at a
  comparatively low effective rate, which could change in the future; </font>
  </li>
  <li>
  <p ALIGN="justify" style="margin-top: 0; margin-bottom: 0"><font SIZE="2">The price of the raw materials we buy is
  prone to significant fluctuations and volatility; </font></li>
  <li>
  <p ALIGN="justify" style="margin-top: 0; margin-bottom: 0"><font SIZE="2">Our operations are subject to political,
  social and economic risks; </font></li>
  <li>
  <p ALIGN="justify" style="margin-top: 0; margin-bottom: 0"><font SIZE="2">Our industry is subject to fluctuations in
  sales demand; </font></li>
  <li>
  <p ALIGN="justify" style="margin-top: 0; margin-bottom: 0"><font SIZE="2">Our business operations significantly rely
  on our information systems; </font></li>
  <li>
  <p ALIGN="justify" style="margin-top: 0; margin-bottom: 0"><font SIZE="2">We are subject to foreign currency risk;
  </font></li>
  <li>
  <p ALIGN="justify" style="margin-top: 0; margin-bottom: 0"><font SIZE="2">Our operations could be affected by changes
  in our relationships with our employees or changes to domestic and foreign
  employment regulations; </font></li>
  <li>
  <p ALIGN="justify" style="margin-top: 0; margin-bottom: 0"><font SIZE="2">We may suffer negative publicity if we, or
  our third-party contractors, violate labour laws or engage in practices that
  are viewed as unethical; and </font></li>
  <li>
  <p ALIGN="justify" style="margin-top: 0; margin-bottom: 0"><font SIZE="2">We depend on key management. </li>
</ul>
<p ALIGN="JUSTIFY">For a more detailed discussion of these potential business
risks, readers should review the &quot;Risks and Uncertainties&quot; section of the 2006
Annual 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>
</font>
<table CELLSPACING="0" BORDER="0" WIDTH="100%" cellpadding="0" style="border-collapse: collapse" bordercolor="#111111">
  <tr>
    <td style="border-bottom-style: solid; border-bottom-width: 1">
    <font FACE="Arial MT" SIZE="3" color="#3988C1">Forward-Looking Statements</font></td>
  </tr>
</table>
<font SIZE="2">
<p ALIGN="JUSTIFY">Certain statements included in this MD&amp;A may constitute
&quot;forward-looking statements&quot; within the meaning of the U.S. <i>Private
Securities Litigation Reform Act of 1995</i> 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 and Uncertainties&quot; section of the 2006 Annual
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 in this MD&amp;A describes our
expectations as at August 1, 2007. </p>
<p ALIGN="JUSTIFY">The results or events predicted in such forward-looking
information may differ materially from actual results or events. Material
factors, which could cause actual results or events to differ materially from a
conclusion, forecast or projection in such forward-looking information, include,
but are not limited to: </p>
<ul>
  <li>
  <p ALIGN="justify" style="margin-top: 0; margin-bottom: 0">general economic conditions such as currency exchange
  rates, commodity prices and other factors over which we have no control; </li>
  <li>
  <p ALIGN="justify" style="margin-top: 0; margin-bottom: 0">the impact of economic and business conditions, industry
  trends and other external and political factors in the countries in which we
  operate; </li>
  <li>
  <p ALIGN="justify" style="margin-top: 0; margin-bottom: 0">the intensity of competitive activity; </li>
  <li>
  <p ALIGN="justify" style="margin-top: 0; margin-bottom: 0">changes in environmental, tax, trade and other laws and
  regulations; </li>
  <li>
  <p ALIGN="justify" style="margin-top: 0; margin-bottom: 0">our ability to implement our strategies and plans; </li>
  <li>
  <p ALIGN="justify" style="margin-top: 0; margin-bottom: 0">our ability to complete and successfully integrate
  acquisitions; </li>
  <li>
  <p ALIGN="justify" style="margin-top: 0; margin-bottom: 0">changes in customer demand for our products and our ability
  to maintain customer relationships and grow our business; </li>
  <li>
  <p ALIGN="justify" style="margin-top: 0; margin-bottom: 0">the seasonality of our business; </li>
  <li>
  <p ALIGN="justify" style="margin-top: 0; margin-bottom: 0">our ability to attract and retain key personnel; </li>
  <li>
  <p ALIGN="justify" style="margin-top: 0; margin-bottom: 0">changes in accounting policies and estimates; and </li>
</ul>
</font>
<table CELLSPACING="0" BORDER="0" WIDTH="100%" cellpadding="0" style="border-collapse: collapse" bordercolor="#111111">
  <tr>
    <td><font FACE="Times New Roman PS" SIZE="2"><i>
    <p align="right">GILDAN QUARTERLY REPORT &#150; Q3 2007 p.17</i></font></td>
  </tr>
</table>
<hr color="#000000" size="5"><p Style='page-break-before:always'>
<table CELLSPACING="0" BORDER="0" WIDTH="100%" cellpadding="0" style="border-collapse: collapse" bordercolor="#111111">
  <tr>
    <td width="475">
    <img border="0" src="gildansmlogo.jpg" width="88" height="20"></td>
    <td width="483" align="right"><font FACE="Times New Roman PS" SIZE="2"><i>
    MANAGEMENT'S DISCUSSION AND ANALYSIS</i></font></td>
  </tr>
</table>
<font SIZE="2">
<ul>
  <li>disruption to manufacturing and distribution activities due to the impact
  of weather, natural disasters and other unforeseen adverse events. </li>
</ul>
<p ALIGN="JUSTIFY">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 business dispositions, acquisitions, other business
transactions, asset writedowns or other charges announced or occurring after
forward-looking statements are made. The financial impact of such transactions
and nonrecurring and other special items can be complex and necessarily depends
on the facts particular to each of them. </p>
<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>August 1, 2007 </p>
</font>
<table CELLSPACING="0" BORDER="0" WIDTH="100%" cellpadding="0" style="border-collapse: collapse" bordercolor="#111111">
  <tr>
    <td><font FACE="Times New Roman PS" SIZE="2"><i>
    <p align="right">GILDAN QUARTERLY REPORT &#150; Q3 2007 p.18</i></font></td>
  </tr>
</table>

<hr color="#000000" size="5"><p Style='page-break-before:always'><b><font FACE="Times New Roman" size="4">
<p align="center">Gildan Activewear Inc.<br>
</font><font FACE="Times New Roman" SIZE="2">Consolidated Balance Sheets<br>
</font></b><font FACE="Times New Roman" 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%">&nbsp;</td>
    <td WIDTH="3%" align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="3%" align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="3%" align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right">
    <p style="margin-right: 4">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="55%">&nbsp;</td>
    <td WIDTH="3%" align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="3%" align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="3%" align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right">
    <p style="margin-right: 4">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="55%">&nbsp;</td>
    <td WIDTH="3%" align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <font FACE="Arial MT" SIZE="2">
    <p style="margin-right: 4">July 1, 2007</font></td>
    <td WIDTH="3%" align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="5%" align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <font FACE="Arial MT" SIZE="2">October 1, 2006</font></td>
    <td WIDTH="3%" align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <font FACE="Arial MT" SIZE="2">
    <p style="margin-right: 4">July 2, 2006</font></td>
  </tr>
  <tr>
    <td WIDTH="55%">&nbsp;</td>
    <td WIDTH="3%" align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right"><font FACE="Arial MT" SIZE="2">(unaudited)</font></td>
    <td WIDTH="3%" align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right"><font FACE="Arial MT" SIZE="2">(audited)</font></td>
    <td WIDTH="3%" align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right"><font FACE="Arial MT" SIZE="2">(unaudited)</font></td>
  </tr>
  <tr>
    <td WIDTH="55%">&nbsp;</td>
    <td WIDTH="3%" align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="3%" align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="3%" align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right">
    <p style="margin-right: 4">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="55%" bgcolor="#E6E6E6"><font FACE="Arial MT" SIZE="2">Current assets:</font></td>
    <td WIDTH="3%" align="right" bgcolor="#E6E6E6">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" bgcolor="#E6E6E6">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="3%" align="right" bgcolor="#E6E6E6">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" bgcolor="#E6E6E6">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="3%" align="right" bgcolor="#E6E6E6">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" bgcolor="#E6E6E6">
    <p style="margin-right: 4">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="55%"><font FACE="Arial MT" SIZE="2">
    <p style="margin-left: 26">Cash and cash equivalents</font></td>
    <td WIDTH="3%" align="right"><font FACE="Arial MT" SIZE="2">
    <p style="margin-right: 4">$</font></td>
    <td WIDTH="12%" align="right"><font FACE="Arial MT" SIZE="2">
    <p style="margin-right: 4">7,537</font></td>
    <td WIDTH="3%" align="right"><font FACE="Arial MT" SIZE="2">
    <p style="margin-right: 4">$</font></td>
    <td WIDTH="12%" align="right"><font FACE="Arial MT" SIZE="2">
    <p style="margin-right: 4">29,007</font></td>
    <td WIDTH="3%" align="right"><font FACE="Arial MT" SIZE="2">
    <p style="margin-right: 4">$</font></td>
    <td WIDTH="12%" align="right"><font FACE="Arial MT" SIZE="2">
    <p style="margin-right: 4">63,883</font></td>
  </tr>
  <tr>
    <td WIDTH="55%" bgcolor="#E6E6E6"><font FACE="Arial MT" SIZE="2">
    <p style="margin-left: 26">Accounts receivable</font></td>
    <td WIDTH="3%" align="right" bgcolor="#E6E6E6">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" bgcolor="#E6E6E6"><font FACE="Arial MT" SIZE="2">
    <p style="margin-right: 4">183,557</font></td>
    <td WIDTH="3%" align="right" bgcolor="#E6E6E6">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" bgcolor="#E6E6E6"><font FACE="Arial MT" SIZE="2">
    <p style="margin-right: 4">165,870</font></td>
    <td WIDTH="3%" align="right" bgcolor="#E6E6E6">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" bgcolor="#E6E6E6"><font FACE="Arial MT" SIZE="2">
    <p style="margin-right: 4">133,666</font></td>
  </tr>
  <tr>
    <td WIDTH="55%"><font FACE="Arial MT" SIZE="2">
    <p style="margin-left: 26">Inventories</font></td>
    <td WIDTH="3%" align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right"><font FACE="Arial MT" SIZE="2">
    <p style="margin-right: 4">231,538</font></td>
    <td WIDTH="3%" align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right"><font FACE="Arial MT" SIZE="2">
    <p style="margin-right: 4">200,653</font></td>
    <td WIDTH="3%" align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right"><font FACE="Arial MT" SIZE="2">
    <p style="margin-right: 4">161,261</font></td>
  </tr>
  <tr>
    <td WIDTH="55%" bgcolor="#E6E6E6"><font FACE="Arial MT" SIZE="2">
    <p style="margin-left: 26">Prepaid expenses and deposits</font></td>
    <td WIDTH="3%" align="right" bgcolor="#E6E6E6">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" bgcolor="#E6E6E6"><font FACE="Arial MT" SIZE="2">
    <p style="margin-right: 4">9,573</font></td>
    <td WIDTH="3%" align="right" bgcolor="#E6E6E6">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" bgcolor="#E6E6E6"><font FACE="Arial MT" SIZE="2">
    <p style="margin-right: 4">5,757</font></td>
    <td WIDTH="3%" align="right" bgcolor="#E6E6E6">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" bgcolor="#E6E6E6"><font FACE="Arial MT" SIZE="2">
    <p style="margin-right: 4">6,302</font></td>
  </tr>
  <tr>
    <td WIDTH="55%"><font FACE="Arial MT" SIZE="2">
    <p style="margin-left: 26">Future income taxes</font></td>
    <td WIDTH="3%" align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <font FACE="Arial MT" SIZE="2">
    <p style="margin-right: 4">4,601</font></td>
    <td WIDTH="3%" align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <font FACE="Arial MT" SIZE="2">
    <p style="margin-right: 4">5,298</font></td>
    <td WIDTH="3%" align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <font FACE="Arial MT" SIZE="2">
    <p style="margin-right: 4">8,575</font></td>
  </tr>
  <tr>
    <td WIDTH="55%" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="3%" align="right" bgcolor="#E6E6E6">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" bgcolor="#E6E6E6"><font FACE="Arial MT" SIZE="2">
    <p style="margin-right: 4">436,806</font></td>
    <td WIDTH="3%" align="right" bgcolor="#E6E6E6">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" bgcolor="#E6E6E6"><font FACE="Arial MT" SIZE="2">
    <p style="margin-right: 4">406,585</font></td>
    <td WIDTH="3%" align="right" bgcolor="#E6E6E6">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" bgcolor="#E6E6E6"><font FACE="Arial MT" SIZE="2">
    <p style="margin-right: 4">373,687</font></td>
  </tr>
  <tr>
    <td WIDTH="55%">&nbsp;</td>
    <td WIDTH="3%" align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="3%" align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="3%" align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right">
    <p style="margin-right: 4">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="55%" bgcolor="#E6E6E6"><font FACE="Arial MT" SIZE="2">Property, plant and equipment</font></td>
    <td WIDTH="3%" align="right" bgcolor="#E6E6E6">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" bgcolor="#E6E6E6"><font FACE="Arial MT" SIZE="2">
    <p style="margin-right: 4">368,477</font></td>
    <td WIDTH="3%" align="right" bgcolor="#E6E6E6">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" bgcolor="#E6E6E6"><font FACE="Arial MT" SIZE="2">
    <p style="margin-right: 4">302,677</font></td>
    <td WIDTH="3%" align="right" bgcolor="#E6E6E6">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" bgcolor="#E6E6E6"><font FACE="Arial MT" SIZE="2">
    <p style="margin-right: 4">292,985</font></td>
  </tr>
  <tr>
    <td WIDTH="55%"><font FACE="Arial MT" SIZE="2">Intangible assets</font></td>
    <td WIDTH="3%" align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right"><font FACE="Arial MT" SIZE="2">
    <p style="margin-right: 4">9,030</font></td>
    <td WIDTH="3%" align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right"><font FACE="Arial MT" SIZE="2">
    <p style="margin-right: 4">9,513</font></td>
    <td WIDTH="3%" align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right"><font FACE="Arial MT" SIZE="2">
    <p style="margin-right: 4">-</font></td>
  </tr>
  <tr>
    <td WIDTH="55%" bgcolor="#E6E6E6"><font FACE="Arial MT" SIZE="2">Assets held for sale</font></td>
    <td WIDTH="3%" align="right" bgcolor="#E6E6E6">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" bgcolor="#E6E6E6"><font FACE="Arial MT" SIZE="2">
    <p style="margin-right: 4">2,434</font></td>
    <td WIDTH="3%" align="right" bgcolor="#E6E6E6">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" bgcolor="#E6E6E6"><font FACE="Arial MT" SIZE="2">
    <p style="margin-right: 4">-</font></td>
    <td WIDTH="3%" align="right" bgcolor="#E6E6E6">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" bgcolor="#E6E6E6"><font FACE="Arial MT" SIZE="2">
    <p style="margin-right: 4">-</font></td>
  </tr>
  <tr>
    <td WIDTH="55%"><font FACE="Arial MT" SIZE="2">Other assets</font></td>
    <td WIDTH="3%" align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <font FACE="Arial MT" SIZE="2">
    <p style="margin-right: 4">8,266</font></td>
    <td WIDTH="3%" align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <font FACE="Arial MT" SIZE="2">
    <p style="margin-right: 4">4,501</font></td>
    <td WIDTH="3%" align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <font FACE="Arial MT" SIZE="2">
    <p style="margin-right: 4">6,475</font></td>
  </tr>
  <tr>
    <td WIDTH="55%" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="3%" align="right" bgcolor="#E6E6E6">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" bgcolor="#E6E6E6">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="3%" align="right" bgcolor="#E6E6E6">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" bgcolor="#E6E6E6">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="3%" align="right" bgcolor="#E6E6E6">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" bgcolor="#E6E6E6">
    <p style="margin-right: 4">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="55%"><font FACE="Arial MT" SIZE="2">Total assets</font></td>
    <td WIDTH="3%" align="right"><font FACE="Arial MT" SIZE="2">
    <p style="margin-right: 4">$</font></td>
    <td WIDTH="12%" align="right" style="border-bottom-style: solid; border-bottom-width: 2">
    <font FACE="Arial MT" SIZE="2">
    <p style="margin-right: 4">825,013</font></td>
    <td WIDTH="3%" align="right"><font FACE="Arial MT" SIZE="2">
    <p style="margin-right: 4">$</font></td>
    <td WIDTH="12%" align="right" style="border-bottom-style: solid; border-bottom-width: 2">
    <font FACE="Arial MT" SIZE="2">
    <p style="margin-right: 4">723,276</font></td>
    <td WIDTH="3%" align="right"><font FACE="Arial MT" SIZE="2">
    <p style="margin-right: 4">$</font></td>
    <td WIDTH="12%" align="right" style="border-bottom-style: solid; border-bottom-width: 2">
    <font FACE="Arial MT" SIZE="2">
    <p style="margin-right: 4">673,147</font></td>
  </tr>
  <tr>
    <td WIDTH="55%" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="3%" align="right" bgcolor="#E6E6E6">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" bgcolor="#E6E6E6">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="3%" align="right" bgcolor="#E6E6E6">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" bgcolor="#E6E6E6">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="3%" align="right" bgcolor="#E6E6E6">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" bgcolor="#E6E6E6">
    <p style="margin-right: 4">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="55%">&nbsp;</td>
    <td WIDTH="3%" align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="3%" align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="3%" align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right">
    <p style="margin-right: 4">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="55%" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="3%" align="right" bgcolor="#E6E6E6">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" bgcolor="#E6E6E6">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="3%" align="right" bgcolor="#E6E6E6">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" bgcolor="#E6E6E6">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="3%" align="right" bgcolor="#E6E6E6">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" bgcolor="#E6E6E6">
    <p style="margin-right: 4">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="55%" bgcolor="#E6E6E6"><font FACE="Arial MT" SIZE="2">Current liabilities:</font></td>
    <td WIDTH="3%" align="right" bgcolor="#E6E6E6">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" bgcolor="#E6E6E6">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="3%" align="right" bgcolor="#E6E6E6">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" bgcolor="#E6E6E6">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="3%" align="right" bgcolor="#E6E6E6">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" bgcolor="#E6E6E6">
    <p style="margin-right: 4">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="55%"><font FACE="Arial MT" SIZE="2">
    <p style="margin-left: 26">Bank indebtedness (note 4)</font></td>
    <td WIDTH="3%" align="right"><font FACE="Arial MT" SIZE="2">
    <p style="margin-right: 4">$</font></td>
    <td WIDTH="12%" align="right"><font FACE="Arial MT" SIZE="2">
    <p style="margin-right: 4">3,500</font></td>
    <td WIDTH="3%" align="right"><font FACE="Arial MT" SIZE="2">
    <p style="margin-right: 4">$</font></td>
    <td WIDTH="12%" align="right"><font FACE="Arial MT" SIZE="2">
    <p style="margin-right: 4">3,500</font></td>
    <td WIDTH="3%" align="right"><font FACE="Arial MT" SIZE="2">
    <p style="margin-right: 4">$</font></td>
    <td WIDTH="12%" align="right"><font FACE="Arial MT" SIZE="2">
    <p style="margin-right: 4">3,980</font></td>
  </tr>
  <tr>
    <td WIDTH="55%" bgcolor="#E6E6E6"><font FACE="Arial MT" SIZE="2">
    <p style="margin-left: 26">Accounts payable and accrued liabilities</font></td>
    <td WIDTH="3%" align="right" bgcolor="#E6E6E6">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" bgcolor="#E6E6E6"><font FACE="Arial MT" SIZE="2">
    <p style="margin-right: 4">120,229</font></td>
    <td WIDTH="3%" align="right" bgcolor="#E6E6E6">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" bgcolor="#E6E6E6"><font FACE="Arial MT" SIZE="2">
    <p style="margin-right: 4">117,984</font></td>
    <td WIDTH="3%" align="right" bgcolor="#E6E6E6">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" bgcolor="#E6E6E6"><font FACE="Arial MT" SIZE="2">
    <p style="margin-right: 4">86,579</font></td>
  </tr>
  <tr>
    <td WIDTH="55%"><font FACE="Arial MT" SIZE="2">
    <p style="margin-left: 26">Income taxes payable</font></td>
    <td WIDTH="3%" align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right"><font FACE="Arial MT" SIZE="2">
    <p style="margin-right: 4">2,054</font></td>
    <td WIDTH="3%" align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right"><font FACE="Arial MT" SIZE="2">
    <p style="margin-right: 4">2,269</font></td>
    <td WIDTH="3%" align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right"><font FACE="Arial MT" SIZE="2">
    <p style="margin-right: 4">3,516</font></td>
  </tr>
  <tr>
    <td WIDTH="55%" bgcolor="#E6E6E6"><font FACE="Arial MT" SIZE="2">
    <p style="margin-left: 26">Current portion of long-term debt (note 5)</font></td>
    <td WIDTH="3%" align="right" bgcolor="#E6E6E6">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" style="border-bottom-style: solid; border-bottom-width: 1" bgcolor="#E6E6E6">
    <font FACE="Arial MT" SIZE="2">
    <p style="margin-right: 4">3,934</font></td>
    <td WIDTH="3%" align="right" bgcolor="#E6E6E6">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" style="border-bottom-style: solid; border-bottom-width: 1" bgcolor="#E6E6E6">
    <font FACE="Arial MT" SIZE="2">
    <p style="margin-right: 4">21,820</font></td>
    <td WIDTH="3%" align="right" bgcolor="#E6E6E6">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" style="border-bottom-style: solid; border-bottom-width: 1" bgcolor="#E6E6E6">
    <font FACE="Arial MT" SIZE="2">
    <p style="margin-right: 4">19,582</font></td>
  </tr>
  <tr>
    <td WIDTH="55%">&nbsp;</td>
    <td WIDTH="3%" align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right"><font FACE="Arial MT" SIZE="2">
    <p style="margin-right: 4">129,717</font></td>
    <td WIDTH="3%" align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right"><font FACE="Arial MT" SIZE="2">
    <p style="margin-right: 4">145,573</font></td>
    <td WIDTH="3%" align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right"><font FACE="Arial MT" SIZE="2">
    <p style="margin-right: 4">113,657</font></td>
  </tr>
  <tr>
    <td WIDTH="55%" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="3%" align="right" bgcolor="#E6E6E6">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" bgcolor="#E6E6E6">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="3%" align="right" bgcolor="#E6E6E6">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" bgcolor="#E6E6E6">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="3%" align="right" bgcolor="#E6E6E6">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" bgcolor="#E6E6E6">
    <p style="margin-right: 4">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="55%"><font FACE="Arial MT" SIZE="2">Long-term debt (note 5)</font></td>
    <td WIDTH="3%" align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right"><font FACE="Arial MT" SIZE="2">
    <p style="margin-right: 4">38,979</font></td>
    <td WIDTH="3%" align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right"><font FACE="Arial MT" SIZE="2">
    <p style="margin-right: 4">12,041</font></td>
    <td WIDTH="3%" align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right"><font FACE="Arial MT" SIZE="2">
    <p style="margin-right: 4">8,977</font></td>
  </tr>
  <tr>
    <td WIDTH="55%" bgcolor="#E6E6E6"><font FACE="Arial MT" SIZE="2">Future income taxes</font></td>
    <td WIDTH="3%" align="right" bgcolor="#E6E6E6">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" bgcolor="#E6E6E6"><font FACE="Arial MT" SIZE="2">
    <p style="margin-right: 4">28,221</font></td>
    <td WIDTH="3%" align="right" bgcolor="#E6E6E6">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" bgcolor="#E6E6E6"><font FACE="Arial MT" SIZE="2">
    <p style="margin-right: 4">29,443</font></td>
    <td WIDTH="3%" align="right" bgcolor="#E6E6E6">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" bgcolor="#E6E6E6"><font FACE="Arial MT" SIZE="2">
    <p style="margin-right: 4">31,821</font></td>
  </tr>
  <tr>
    <td WIDTH="55%"><font FACE="Arial MT" SIZE="2">Non-controlling interest in
    consolidated joint venture</font></td>
    <td WIDTH="3%" align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right"><font FACE="Arial MT" SIZE="2">
    <p style="margin-right: 4">6,279</font></td>
    <td WIDTH="3%" align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right"><font FACE="Arial MT" SIZE="2">
    <p style="margin-right: 4">5,654</font></td>
    <td WIDTH="3%" align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right"><font FACE="Arial MT" SIZE="2">
    <p style="margin-right: 4">5,634</font></td>
  </tr>
  <tr>
    <td WIDTH="55%" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="3%" align="right" bgcolor="#E6E6E6">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" bgcolor="#E6E6E6">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="3%" align="right" bgcolor="#E6E6E6">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" bgcolor="#E6E6E6">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="3%" align="right" bgcolor="#E6E6E6">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" bgcolor="#E6E6E6">
    <p style="margin-right: 4">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="55%"><font FACE="Arial MT" SIZE="2">Shareholders' equity:</font></td>
    <td WIDTH="3%" align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="3%" align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="3%" align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right">
    <p style="margin-right: 4">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="55%" bgcolor="#E6E6E6"><font FACE="Arial MT" SIZE="2">
    <p style="margin-left: 26">Share capital (note 6)</font></td>
    <td WIDTH="3%" align="right" bgcolor="#E6E6E6">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" bgcolor="#E6E6E6"><font FACE="Arial MT" SIZE="2">
    <p style="margin-right: 4">87,686</font></td>
    <td WIDTH="3%" align="right" bgcolor="#E6E6E6">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" bgcolor="#E6E6E6"><font FACE="Arial MT" SIZE="2">
    <p style="margin-right: 4">86,584</font></td>
    <td WIDTH="3%" align="right" bgcolor="#E6E6E6">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" bgcolor="#E6E6E6"><font FACE="Arial MT" SIZE="2">
    <p style="margin-right: 4">85,791</font></td>
  </tr>
  <tr>
    <td WIDTH="55%"><font FACE="Arial MT" SIZE="2">
    <p style="margin-left: 26">Contributed surplus (note 6)</font></td>
    <td WIDTH="3%" align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right"><font FACE="Arial MT" SIZE="2">
    <p style="margin-right: 4">3,361</font></td>
    <td WIDTH="3%" align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right"><font FACE="Arial MT" SIZE="2">
    <p style="margin-right: 4">2,365</font></td>
    <td WIDTH="3%" align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right"><font FACE="Arial MT" SIZE="2">
    <p style="margin-right: 4">2,439</font></td>
  </tr>
  <tr>
    <td WIDTH="55%" bgcolor="#E6E6E6"><font FACE="Arial MT" SIZE="2">
    <p style="margin-left: 26">Retained earnings</font></td>
    <td WIDTH="3%" align="right" bgcolor="#E6E6E6">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" bgcolor="#E6E6E6"><font FACE="Arial MT" SIZE="2">
    <p style="margin-right: 4">504,522</font></td>
    <td WIDTH="3%" align="right" bgcolor="#E6E6E6">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" bgcolor="#E6E6E6"><font FACE="Arial MT" SIZE="2">
    <p style="margin-right: 4">415,368</font></td>
    <td WIDTH="3%" align="right" bgcolor="#E6E6E6">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" bgcolor="#E6E6E6"><font FACE="Arial MT" SIZE="2">
    <p style="margin-right: 4">398,580</font></td>
  </tr>
  <tr>
    <td WIDTH="55%"><font FACE="Arial MT" SIZE="2">
    <p style="margin-left: 26">Accumulated other comprehensive income</font></td>
    <td WIDTH="3%" align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <font FACE="Arial MT" SIZE="2">
    <p style="margin-right: 4">26,248</font></td>
    <td WIDTH="3%" align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <font FACE="Arial MT" SIZE="2">
    <p style="margin-right: 4">26,248</font></td>
    <td WIDTH="3%" align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <font FACE="Arial MT" SIZE="2">
    <p style="margin-right: 4">26,248</font></td>
  </tr>
  <tr>
    <td WIDTH="55%" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="3%" align="right" bgcolor="#E6E6E6">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" style="border-bottom-style: solid; border-bottom-width: 1" bgcolor="#E6E6E6">
    <font FACE="Arial MT" SIZE="2">
    <p style="margin-right: 4">621,817</font></td>
    <td WIDTH="3%" align="right" bgcolor="#E6E6E6">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" style="border-bottom-style: solid; border-bottom-width: 1" bgcolor="#E6E6E6">
    <font FACE="Arial MT" SIZE="2">
    <p style="margin-right: 4">530,565</font></td>
    <td WIDTH="3%" align="right" bgcolor="#E6E6E6">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" style="border-bottom-style: solid; border-bottom-width: 1" bgcolor="#E6E6E6">
    <font FACE="Arial MT" SIZE="2">
    <p style="margin-right: 4">513,058</font></td>
  </tr>
  <tr>
    <td WIDTH="55%">&nbsp;</td>
    <td WIDTH="3%" align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="3%" align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="3%" align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right">
    <p style="margin-right: 4">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="55%" bgcolor="#E6E6E6"><font FACE="Arial MT" SIZE="2">Settlement of contingent
    liability (note 8)</font></td>
    <td WIDTH="3%" align="right" bgcolor="#E6E6E6">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" bgcolor="#E6E6E6">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="3%" align="right" bgcolor="#E6E6E6">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" bgcolor="#E6E6E6">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="3%" align="right" bgcolor="#E6E6E6">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" bgcolor="#E6E6E6">
    <p style="margin-right: 4">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="55%">&nbsp;</td>
    <td WIDTH="3%" align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="3%" align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="3%" align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right">
    <p style="margin-right: 4">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="55%" bgcolor="#E6E6E6"><font FACE="Arial MT" SIZE="2">Total liabilities and
    shareholders' equity</font></td>
    <td WIDTH="3%" align="right" bgcolor="#E6E6E6"><font FACE="Arial MT" SIZE="2">
    <p style="margin-right: 4">$</font></td>
    <td WIDTH="12%" align="right" style="border-bottom-style: solid; border-bottom-width: 2" bgcolor="#E6E6E6">
    <font FACE="Arial MT" SIZE="2">
    <p style="margin-right: 4">825,013</font></td>
    <td WIDTH="3%" align="right" bgcolor="#E6E6E6"><font FACE="Arial MT" SIZE="2">
    <p style="margin-right: 4">$</font></td>
    <td WIDTH="12%" align="right" style="border-bottom-style: solid; border-bottom-width: 2" bgcolor="#E6E6E6">
    <font FACE="Arial MT" SIZE="2">
    <p style="margin-right: 4">723,276</font></td>
    <td WIDTH="3%" align="right" bgcolor="#E6E6E6"><font FACE="Arial MT" SIZE="2">
    <p style="margin-right: 4">$</font></td>
    <td WIDTH="12%" align="right" style="border-bottom-style: solid; border-bottom-width: 2" bgcolor="#E6E6E6">
    <font FACE="Arial MT" SIZE="2">
    <p style="margin-right: 4">673,147</font></td>
  </tr>
</table>
<font FACE="Arial MT" SIZE="2">
<p>See accompanying notes to interim consolidated financial statements.</p>
</font><font FACE="Times New Roman PS" SIZE="2"><i>
<p align="right">GILDAN QUARTERLY REPORT - Q3 2007 p.19</p>
<hr color="#000000" size="5"><p Style='page-break-before:always'></i></font>
<table CELLSPACING="0" BORDER="0" WIDTH="100%" cellpadding="0" style="border-collapse: collapse" bordercolor="#111111">
  <tr>
    <td WIDTH="101%" colspan="9" align="center">
    <font FACE="Times New Roman" SIZE="4"><b>Gildan Activewear Inc.</b></font></td>
  </tr>
  <tr>
    <td WIDTH="100%" colspan="9" align="center">
    <font FACE="Times New Roman" SIZE="2"><b>Consolidated Statements of Earnings</b></font></td>
  </tr>
  <tr>
    <td WIDTH="100%" colspan="9" align="center">
    <font FACE="Times New Roman" SIZE="2">(In thousands of U.S. dollars, except
    per share data)</font></td>
  </tr>
  <tr>
    <td WIDTH="40%">&nbsp;</td>
    <td WIDTH="3%" align="right">&nbsp;</td>
    <td WIDTH="12%" align="right">&nbsp;</td>
    <td WIDTH="3%" align="right">&nbsp;</td>
    <td WIDTH="12%" align="right">&nbsp;</td>
    <td WIDTH="3%" align="right">&nbsp;</td>
    <td WIDTH="12%" align="right">&nbsp;</td>
    <td WIDTH="3%" align="right">&nbsp;</td>
    <td WIDTH="12%" align="right">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="40%">&nbsp;</td>
    <td WIDTH="3%" align="right">&nbsp;</td>
    <td WIDTH="21%" COLSPAN="3" align="right">
    <font FACE="Times New Roman" SIZE="2"><i><b>
    <p style="margin-right: 15%">Three months ended</b></i></font></td>
    <td WIDTH="3%" align="right">
    <p style="margin-right: 15%">&nbsp;</td>
    <td WIDTH="36%" COLSPAN="3" align="right">
    <font FACE="Times New Roman" SIZE="2"><i><b>
    <p style="margin-right: 15%">Nine months ended</b></i></font></td>
  </tr>
  <tr>
    <td WIDTH="40%">
    <p style="text-indent: -26; margin-left: 26">&nbsp;</td>
    <td WIDTH="3%" align="right">&nbsp;</td>
    <td WIDTH="12%" align="right"><font FACE="Times New Roman" SIZE="2">
    <p style="margin-right: 4"><u>July 1, 2007</u></font></td>
    <td WIDTH="3%" align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right"><font FACE="Times New Roman" SIZE="2">
    <p style="margin-right: 4"><u>July 2, 2006</u></font></td>
    <td WIDTH="3%" align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right"><font FACE="Times New Roman" SIZE="2">
    <p style="margin-right: 4"><u>July 1, 2007</u></font></td>
    <td WIDTH="3%" align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right"><font FACE="Times New Roman" SIZE="2">
    <p style="margin-right: 4"><u>July 2, 2006</u></font></td>
  </tr>
  <tr>
    <td WIDTH="40%">
    <p style="text-indent: -26; margin-left: 26">&nbsp;</td>
    <td WIDTH="3%" align="right">&nbsp;</td>
    <td WIDTH="12%" align="right"><font FACE="Times New Roman" SIZE="2">(unaudited)</font></td>
    <td WIDTH="3%" align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right"><font FACE="Times New Roman" SIZE="2">(unaudited)</font></td>
    <td WIDTH="3%" align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right"><font FACE="Times New Roman" SIZE="2">(unaudited)</font></td>
    <td WIDTH="3%" align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right"><font FACE="Times New Roman" SIZE="2">(unaudited)</font></td>
  </tr>
  <tr>
    <td WIDTH="40%">
    <p style="text-indent: -26; margin-left: 26">&nbsp;</td>
    <td WIDTH="3%" align="right" valign="bottom">&nbsp;</td>
    <td WIDTH="12%" align="right" valign="bottom">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="3%" align="right" valign="bottom">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" valign="bottom">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="3%" align="right" valign="bottom">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" valign="bottom">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="3%" align="right" valign="bottom">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" valign="bottom">
    <p style="margin-right: 4">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="40%" bgcolor="#E6E6E6"><font FACE="Times New Roman" SIZE="2">
    <p style="text-indent: -26; margin-left: 26">Sales</font></td>
    <td WIDTH="3%" align="right" valign="bottom" bgcolor="#E6E6E6">
    <font FACE="Times New Roman" SIZE="2">$</font></td>
    <td WIDTH="12%" align="right" valign="bottom" bgcolor="#E6E6E6">
    <font FACE="Times New Roman" SIZE="2">
    <p style="margin-right: 4">291,610</font></td>
    <td WIDTH="3%" align="right" valign="bottom" bgcolor="#E6E6E6">
    <font FACE="Times New Roman" SIZE="2">
    <p style="margin-right: 4">$</font></td>
    <td WIDTH="12%" align="right" valign="bottom" bgcolor="#E6E6E6">
    <font FACE="Times New Roman" SIZE="2">
    <p style="margin-right: 4">233,945</font></td>
    <td WIDTH="3%" align="right" valign="bottom" bgcolor="#E6E6E6">
    <font FACE="Times New Roman" SIZE="2">
    <p style="margin-right: 4">$</font></td>
    <td WIDTH="12%" align="right" valign="bottom" bgcolor="#E6E6E6">
    <font FACE="Times New Roman" SIZE="2">
    <p style="margin-right: 4">709,573</font></td>
    <td WIDTH="3%" align="right" valign="bottom" bgcolor="#E6E6E6">
    <font FACE="Times New Roman" SIZE="2">
    <p style="margin-right: 4">$</font></td>
    <td WIDTH="12%" align="right" valign="bottom" bgcolor="#E6E6E6">
    <font FACE="Times New Roman" SIZE="2">
    <p style="margin-right: 4">538,038</font></td>
  </tr>
  <tr>
    <td WIDTH="40%"><font FACE="Times New Roman" SIZE="2">
    <p style="text-indent: -26; margin-left: 26">Cost of sales</font></td>
    <td WIDTH="3%" align="right" valign="bottom">&nbsp;</td>
    <td WIDTH="12%" align="right" style="border-bottom-style: solid; border-bottom-width: 1" valign="bottom">
    <font FACE="Times New Roman" SIZE="2">
    <p style="margin-right: 4">197,221</font></td>
    <td WIDTH="3%" align="right" valign="bottom">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" style="border-bottom-style: solid; border-bottom-width: 1" valign="bottom">
    <font FACE="Times New Roman" SIZE="2">
    <p style="margin-right: 4">158,221</font></td>
    <td WIDTH="3%" align="right" valign="bottom">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" style="border-bottom-style: solid; border-bottom-width: 1" valign="bottom">
    <font FACE="Times New Roman" SIZE="2">
    <p style="margin-right: 4">482,558</font></td>
    <td WIDTH="3%" align="right" valign="bottom">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" style="border-bottom-style: solid; border-bottom-width: 1" valign="bottom">
    <font FACE="Times New Roman" SIZE="2">
    <p style="margin-right: 4">358,011</font></td>
  </tr>
  <tr>
    <td WIDTH="40%" bgcolor="#E6E6E6">
    <p style="text-indent: -26; margin-left: 26">&nbsp;</td>
    <td WIDTH="3%" align="right" valign="bottom" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="12%" align="right" style="border-top-style: solid; border-top-width: 1" valign="bottom" bgcolor="#E6E6E6">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="3%" align="right" valign="bottom" bgcolor="#E6E6E6">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" style="border-top-style: solid; border-top-width: 1" valign="bottom" bgcolor="#E6E6E6">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="3%" align="right" valign="bottom" bgcolor="#E6E6E6">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" style="border-top-style: solid; border-top-width: 1" valign="bottom" bgcolor="#E6E6E6">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="3%" align="right" valign="bottom" bgcolor="#E6E6E6">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" style="border-top-style: solid; border-top-width: 1" valign="bottom" bgcolor="#E6E6E6">
    <p style="margin-right: 4">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="40%"><font FACE="Times New Roman" SIZE="2">
    <p style="text-indent: -26; margin-left: 26">Gross profit</font></td>
    <td WIDTH="3%" align="right" valign="bottom">&nbsp;</td>
    <td WIDTH="12%" align="right" valign="bottom">
    <font FACE="Times New Roman" SIZE="2">
    <p style="margin-right: 4">94,389</font></td>
    <td WIDTH="3%" align="right" valign="bottom">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" valign="bottom">
    <font FACE="Times New Roman" SIZE="2">
    <p style="margin-right: 4">75,724</font></td>
    <td WIDTH="3%" align="right" valign="bottom">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" valign="bottom">
    <font FACE="Times New Roman" SIZE="2">
    <p style="margin-right: 4">227,015</font></td>
    <td WIDTH="3%" align="right" valign="bottom">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" valign="bottom">
    <font FACE="Times New Roman" SIZE="2">
    <p style="margin-right: 4">180,027</font></td>
  </tr>
  <tr>
    <td WIDTH="40%" bgcolor="#E6E6E6">
    <p style="text-indent: -26; margin-left: 26">&nbsp;</td>
    <td WIDTH="3%" align="right" valign="bottom" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="12%" align="right" valign="bottom" bgcolor="#E6E6E6">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="3%" align="right" valign="bottom" bgcolor="#E6E6E6">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" valign="bottom" bgcolor="#E6E6E6">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="3%" align="right" valign="bottom" bgcolor="#E6E6E6">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" valign="bottom" bgcolor="#E6E6E6">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="3%" align="right" valign="bottom" bgcolor="#E6E6E6">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" valign="bottom" bgcolor="#E6E6E6">
    <p style="margin-right: 4">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="40%"><font FACE="Times New Roman" SIZE="2">
    <p style="text-indent: -26; margin-left: 26">Selling, general and
    administrative expenses</font></td>
    <td WIDTH="3%" align="right" valign="bottom">&nbsp;</td>
    <td WIDTH="12%" align="right" valign="bottom">
    <font FACE="Times New Roman" SIZE="2">
    <p style="margin-right: 4">28,430</font></td>
    <td WIDTH="3%" align="right" valign="bottom">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" valign="bottom">
    <font FACE="Times New Roman" SIZE="2">
    <p style="margin-right: 4">21,978</font></td>
    <td WIDTH="3%" align="right" valign="bottom">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" valign="bottom">
    <font FACE="Times New Roman" SIZE="2">
    <p style="margin-right: 4">83,080</font></td>
    <td WIDTH="3%" align="right" valign="bottom">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" valign="bottom">
    <font FACE="Times New Roman" SIZE="2">
    <p style="margin-right: 4">60,747</font></td>
  </tr>
  <tr>
    <td WIDTH="40%" bgcolor="#E6E6E6"><font FACE="Times New Roman" SIZE="2">
    <p style="text-indent: -26; margin-left: 26">Restructuring and other charges
    (note 10)</font></td>
    <td WIDTH="3%" align="right" valign="bottom" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="12%" align="right" style="border-bottom-style: solid; border-bottom-width: 1" valign="bottom" bgcolor="#E6E6E6">
    <font FACE="Times New Roman" SIZE="2">
    <p style="margin-right: 4">4,589</font></td>
    <td WIDTH="3%" align="right" valign="bottom" bgcolor="#E6E6E6">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" style="border-bottom-style: solid; border-bottom-width: 1" valign="bottom" bgcolor="#E6E6E6">
    <font FACE="Times New Roman" SIZE="2">
    <p style="margin-right: 4">-</font></td>
    <td WIDTH="3%" align="right" valign="bottom" bgcolor="#E6E6E6">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" style="border-bottom-style: solid; border-bottom-width: 1" valign="bottom" bgcolor="#E6E6E6">
    <font FACE="Times New Roman" SIZE="2">
    <p style="margin-right: 4">22,339</font></td>
    <td WIDTH="3%" align="right" valign="bottom" bgcolor="#E6E6E6">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" style="border-bottom-style: solid; border-bottom-width: 1" valign="bottom" bgcolor="#E6E6E6">
    <font FACE="Times New Roman" SIZE="2">
    <p style="margin-right: 4">-</font></td>
  </tr>
  <tr>
    <td WIDTH="40%">
    <p style="text-indent: -26; margin-left: 26">&nbsp;</td>
    <td WIDTH="3%" align="right" valign="bottom">&nbsp;</td>
    <td WIDTH="12%" align="right" style="border-top-style: solid; border-top-width: 1" valign="bottom">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="3%" align="right" valign="bottom">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" style="border-top-style: solid; border-top-width: 1" valign="bottom">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="3%" align="right" valign="bottom">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" style="border-top-style: solid; border-top-width: 1" valign="bottom">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="3%" align="right" valign="bottom">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" style="border-top-style: solid; border-top-width: 1" valign="bottom">
    <p style="margin-right: 4">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="40%" bgcolor="#E6E6E6"><font FACE="Times New Roman" SIZE="2">
    <p style="text-indent: -26; margin-left: 26">Earnings before undernoted
    items</font></td>
    <td WIDTH="3%" align="right" valign="bottom" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="12%" align="right" valign="bottom" bgcolor="#E6E6E6">
    <font FACE="Times New Roman" SIZE="2">
    <p style="margin-right: 4">61,370</font></td>
    <td WIDTH="3%" align="right" valign="bottom" bgcolor="#E6E6E6">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" valign="bottom" bgcolor="#E6E6E6">
    <font FACE="Times New Roman" SIZE="2">
    <p style="margin-right: 4">53,746</font></td>
    <td WIDTH="3%" align="right" valign="bottom" bgcolor="#E6E6E6">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" valign="bottom" bgcolor="#E6E6E6">
    <font FACE="Times New Roman" SIZE="2">
    <p style="margin-right: 4">121,596</font></td>
    <td WIDTH="3%" align="right" valign="bottom" bgcolor="#E6E6E6">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" valign="bottom" bgcolor="#E6E6E6">
    <font FACE="Times New Roman" SIZE="2">
    <p style="margin-right: 4">119,280</font></td>
  </tr>
  <tr>
    <td WIDTH="40%">
    <p style="text-indent: -26; margin-left: 26">&nbsp;</td>
    <td WIDTH="3%" align="right" valign="bottom">&nbsp;</td>
    <td WIDTH="12%" align="right" valign="bottom">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="3%" align="right" valign="bottom">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" valign="bottom">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="3%" align="right" valign="bottom">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" valign="bottom">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="3%" align="right" valign="bottom">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" valign="bottom">
    <p style="margin-right: 4">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="40%" bgcolor="#E6E6E6"><font FACE="Times New Roman" SIZE="2">
    <p style="text-indent: -26; margin-left: 26">Depreciation and amortization</font></td>
    <td WIDTH="3%" align="right" valign="bottom" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="12%" align="right" valign="bottom" bgcolor="#E6E6E6">
    <font FACE="Times New Roman" SIZE="2">
    <p style="margin-right: 4">10,272</font></td>
    <td WIDTH="3%" align="right" valign="bottom" bgcolor="#E6E6E6">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" valign="bottom" bgcolor="#E6E6E6">
    <font FACE="Times New Roman" SIZE="2">
    <p style="margin-right: 4">8,169</font></td>
    <td WIDTH="3%" align="right" valign="bottom" bgcolor="#E6E6E6">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" valign="bottom" bgcolor="#E6E6E6">
    <font FACE="Times New Roman" SIZE="2">
    <p style="margin-right: 4">28,521</font></td>
    <td WIDTH="3%" align="right" valign="bottom" bgcolor="#E6E6E6">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" valign="bottom" bgcolor="#E6E6E6">
    <font FACE="Times New Roman" SIZE="2">
    <p style="margin-right: 4">23,311</font></td>
  </tr>
  <tr>
    <td WIDTH="40%"><font FACE="Times New Roman" SIZE="2">
    <p style="text-indent: -26; margin-left: 26">Interest, net</font></td>
    <td WIDTH="3%" align="right" valign="bottom">&nbsp;</td>
    <td WIDTH="12%" align="right" valign="bottom">
    <font FACE="Times New Roman" SIZE="2">
    <p style="margin-right: 4">1,453</font></td>
    <td WIDTH="3%" align="right" valign="bottom">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" valign="bottom">
    <font FACE="Times New Roman" SIZE="2">
    <p style="margin-right: 4">759</font></td>
    <td WIDTH="3%" align="right" valign="bottom">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" valign="bottom">
    <font FACE="Times New Roman" SIZE="2">
    <p style="margin-right: 4">3,501</font></td>
    <td WIDTH="3%" align="right" valign="bottom">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" valign="bottom">
    <font FACE="Times New Roman" SIZE="2">
    <p style="margin-right: 4">2,028</font></td>
  </tr>
  <tr>
    <td WIDTH="40%" bgcolor="#E6E6E6"><font FACE="Times New Roman" SIZE="2">
    <p style="text-indent: -26; margin-left: 26">Non-controlling interest in
    income of consolidated joint venture</font></td>
    <td WIDTH="3%" align="right" valign="bottom" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="12%" align="right" style="border-bottom-style: solid; border-bottom-width: 2" valign="bottom" bgcolor="#E6E6E6">
    <font FACE="Times New Roman" SIZE="2">
    <p style="margin-right: 4">503</font></td>
    <td WIDTH="3%" align="right" valign="bottom" bgcolor="#E6E6E6">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" style="border-bottom-style: solid; border-bottom-width: 2" valign="bottom" bgcolor="#E6E6E6">
    <font FACE="Times New Roman" SIZE="2">
    <p style="margin-right: 4">192</font></td>
    <td WIDTH="3%" align="right" valign="bottom" bgcolor="#E6E6E6">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" style="border-bottom-style: solid; border-bottom-width: 2" valign="bottom" bgcolor="#E6E6E6">
    <font FACE="Times New Roman" SIZE="2">
    <p style="margin-right: 4">625</font></td>
    <td WIDTH="3%" align="right" valign="bottom" bgcolor="#E6E6E6">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" style="border-bottom-style: solid; border-bottom-width: 2" valign="bottom" bgcolor="#E6E6E6">
    <font FACE="Times New Roman" SIZE="2">
    <p style="margin-right: 4">240</font></td>
  </tr>
  <tr>
    <td WIDTH="40%">
    <p style="text-indent: -26; margin-left: 26">&nbsp;</td>
    <td WIDTH="3%" align="right" valign="bottom">&nbsp;</td>
    <td WIDTH="12%" align="right" valign="bottom">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="3%" align="right" valign="bottom">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" valign="bottom">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="3%" align="right" valign="bottom">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" valign="bottom">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="3%" align="right" valign="bottom">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" valign="bottom">
    <p style="margin-right: 4">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="40%" bgcolor="#E6E6E6"><font FACE="Times New Roman" SIZE="2">
    <p style="text-indent: -26; margin-left: 26">Earnings before income taxes</font></td>
    <td WIDTH="3%" align="right" valign="bottom" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="12%" align="right" valign="bottom" bgcolor="#E6E6E6">
    <font FACE="Times New Roman" SIZE="2">
    <p style="margin-right: 4">49,142</font></td>
    <td WIDTH="3%" align="right" valign="bottom" bgcolor="#E6E6E6">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" valign="bottom" bgcolor="#E6E6E6">
    <font FACE="Times New Roman" SIZE="2">
    <p style="margin-right: 4">44,626</font></td>
    <td WIDTH="3%" align="right" valign="bottom" bgcolor="#E6E6E6">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" valign="bottom" bgcolor="#E6E6E6">
    <font FACE="Times New Roman" SIZE="2">
    <p style="margin-right: 4">88,949</font></td>
    <td WIDTH="3%" align="right" valign="bottom" bgcolor="#E6E6E6">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" valign="bottom" bgcolor="#E6E6E6">
    <font FACE="Times New Roman" SIZE="2">
    <p style="margin-right: 4">93,701</font></td>
  </tr>
  <tr>
    <td WIDTH="40%">
    <p style="text-indent: -26; margin-left: 26">&nbsp;</td>
    <td WIDTH="3%" align="right" valign="bottom">&nbsp;</td>
    <td WIDTH="12%" align="right" valign="bottom">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="3%" align="right" valign="bottom">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" valign="bottom">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="3%" align="right" valign="bottom">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" valign="bottom">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="3%" align="right" valign="bottom">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" valign="bottom">
    <p style="margin-right: 4">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="40%" bgcolor="#E6E6E6"><font FACE="Times New Roman" SIZE="2">
    <p style="text-indent: -26; margin-left: 26">Income tax (recovery) expense
    (note 15)</font></td>
    <td WIDTH="3%" align="right" valign="bottom" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="12%" align="right" style="border-bottom-style: solid; border-bottom-width: 1" valign="bottom" bgcolor="#E6E6E6">
    <font FACE="Times New Roman" SIZE="2">(3,255)</font></td>
    <td WIDTH="3%" align="right" valign="bottom" bgcolor="#E6E6E6">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" style="border-bottom-style: solid; border-bottom-width: 1" valign="bottom" bgcolor="#E6E6E6">
    <font FACE="Times New Roman" SIZE="2">
    <p style="margin-right: 4">1,795</font></td>
    <td WIDTH="3%" align="right" valign="bottom" bgcolor="#E6E6E6">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" style="border-bottom-style: solid; border-bottom-width: 1" valign="bottom" bgcolor="#E6E6E6">
    <font FACE="Times New Roman" SIZE="2">(205)</font></td>
    <td WIDTH="3%" align="right" valign="bottom" bgcolor="#E6E6E6">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" style="border-bottom-style: solid; border-bottom-width: 1" valign="bottom" bgcolor="#E6E6E6">
    <font FACE="Times New Roman" SIZE="2">
    <p style="margin-right: 4">3,660</font></td>
  </tr>
  <tr>
    <td WIDTH="40%">
    <p style="text-indent: -26; margin-left: 26">&nbsp;</td>
    <td WIDTH="3%" align="right" valign="bottom">&nbsp;</td>
    <td WIDTH="12%" align="right" style="border-top-style: solid; border-top-width: 1" valign="bottom">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="3%" align="right" valign="bottom">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" style="border-top-style: solid; border-top-width: 1" valign="bottom">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="3%" align="right" valign="bottom">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" style="border-top-style: solid; border-top-width: 1" valign="bottom">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="3%" align="right" valign="bottom">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" style="border-top-style: solid; border-top-width: 1" valign="bottom">
    <p style="margin-right: 4">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="40%" bgcolor="#E6E6E6"><font FACE="Times New Roman" SIZE="2">
    <p style="text-indent: -26; margin-left: 26">Net earnings</font></td>
    <td WIDTH="3%" align="right" valign="bottom" bgcolor="#E6E6E6">
    <font FACE="Times New Roman" SIZE="2">$</font></td>
    <td WIDTH="12%" align="right" style="border-bottom-style: solid; border-bottom-width: 2" valign="bottom" bgcolor="#E6E6E6">
    <font FACE="Times New Roman" SIZE="2">
    <p style="margin-right: 4">52,397</font></td>
    <td WIDTH="3%" align="right" valign="bottom" bgcolor="#E6E6E6">
    <font FACE="Times New Roman" SIZE="2">
    <p style="margin-right: 4">$</font></td>
    <td WIDTH="12%" align="right" style="border-bottom-style: solid; border-bottom-width: 2" valign="bottom" bgcolor="#E6E6E6">
    <font FACE="Times New Roman" SIZE="2">
    <p style="margin-right: 4">42,831</font></td>
    <td WIDTH="3%" align="right" valign="bottom" bgcolor="#E6E6E6">
    <font FACE="Times New Roman" SIZE="2">
    <p style="margin-right: 4">$</font></td>
    <td WIDTH="12%" align="right" style="border-bottom-style: solid; border-bottom-width: 2" valign="bottom" bgcolor="#E6E6E6">
    <font FACE="Times New Roman" SIZE="2">
    <p style="margin-right: 4">89,154</font></td>
    <td WIDTH="3%" align="right" valign="bottom" bgcolor="#E6E6E6">
    <font FACE="Times New Roman" SIZE="2">
    <p style="margin-right: 4">$</font></td>
    <td WIDTH="12%" align="right" style="border-bottom-style: solid; border-bottom-width: 2" valign="bottom" bgcolor="#E6E6E6">
    <font FACE="Times New Roman" SIZE="2">
    <p style="margin-right: 4">90,041</font></td>
  </tr>
  <tr>
    <td WIDTH="40%">
    <p style="text-indent: -26; margin-left: 26">&nbsp;</td>
    <td WIDTH="3%" align="right" valign="bottom">&nbsp;</td>
    <td WIDTH="12%" align="right" valign="bottom">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="3%" align="right" valign="bottom">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" valign="bottom">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="3%" align="right" valign="bottom">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" valign="bottom">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="3%" align="right" valign="bottom">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" valign="bottom">
    <p style="margin-right: 4">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="40%" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="3%" align="right" valign="bottom" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="12%" align="right" valign="bottom" bgcolor="#E6E6E6">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="3%" align="right" valign="bottom" bgcolor="#E6E6E6">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" valign="bottom" bgcolor="#E6E6E6">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="3%" align="right" valign="bottom" bgcolor="#E6E6E6">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" valign="bottom" bgcolor="#E6E6E6">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="3%" align="right" valign="bottom" bgcolor="#E6E6E6">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" valign="bottom" bgcolor="#E6E6E6">
    <p style="margin-right: 4">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="40%"><font FACE="Times New Roman" SIZE="2">Basic EPS (note 11)</font></td>
    <td WIDTH="3%" align="right" valign="bottom">
    <font FACE="Times New Roman" SIZE="2">$</font></td>
    <td WIDTH="12%" align="right" valign="bottom">
    <font FACE="Times New Roman" SIZE="2">
    <p style="margin-right: 4">0.44</font></td>
    <td WIDTH="3%" align="right" valign="bottom">
    <font FACE="Times New Roman" SIZE="2">
    <p style="margin-right: 4">$</font></td>
    <td WIDTH="12%" align="right" valign="bottom">
    <font FACE="Times New Roman" SIZE="2">
    <p style="margin-right: 4">0.36</font></td>
    <td WIDTH="3%" align="right" valign="bottom">
    <font FACE="Times New Roman" SIZE="2">
    <p style="margin-right: 4">$</font></td>
    <td WIDTH="12%" align="right" valign="bottom">
    <font FACE="Times New Roman" SIZE="2">
    <p style="margin-right: 4">0.74</font></td>
    <td WIDTH="3%" align="right" valign="bottom">
    <font FACE="Times New Roman" SIZE="2">
    <p style="margin-right: 4">$</font></td>
    <td WIDTH="12%" align="right" valign="bottom">
    <font FACE="Times New Roman" SIZE="2">
    <p style="margin-right: 4">0.75</font></td>
  </tr>
  <tr>
    <td WIDTH="40%" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="3%" align="right" valign="bottom" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="12%" align="right" valign="bottom" bgcolor="#E6E6E6">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="3%" align="right" valign="bottom" bgcolor="#E6E6E6">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" valign="bottom" bgcolor="#E6E6E6">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="3%" align="right" valign="bottom" bgcolor="#E6E6E6">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" valign="bottom" bgcolor="#E6E6E6">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="3%" align="right" valign="bottom" bgcolor="#E6E6E6">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" valign="bottom" bgcolor="#E6E6E6">
    <p style="margin-right: 4">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="40%"><font FACE="Times New Roman" SIZE="2">Diluted EPS (note 11)</font></td>
    <td WIDTH="3%" align="right" valign="bottom">
    <font FACE="Times New Roman" SIZE="2">$</font></td>
    <td WIDTH="12%" align="right" valign="bottom">
    <font FACE="Times New Roman" SIZE="2">
    <p style="margin-right: 4">0.43</font></td>
    <td WIDTH="3%" align="right" valign="bottom">
    <font FACE="Times New Roman" SIZE="2">
    <p style="margin-right: 4">$</font></td>
    <td WIDTH="12%" align="right" valign="bottom">
    <font FACE="Times New Roman" SIZE="2">
    <p style="margin-right: 4">0.35</font></td>
    <td WIDTH="3%" align="right" valign="bottom">
    <font FACE="Times New Roman" SIZE="2">
    <p style="margin-right: 4">$</font></td>
    <td WIDTH="12%" align="right" valign="bottom">
    <font FACE="Times New Roman" SIZE="2">
    <p style="margin-right: 4">0.73</font></td>
    <td WIDTH="3%" align="right" valign="bottom">
    <font FACE="Times New Roman" SIZE="2">
    <p style="margin-right: 4">$</font></td>
    <td WIDTH="12%" align="right" valign="bottom">
    <font FACE="Times New Roman" SIZE="2">
    <p style="margin-right: 4">0.74</font></td>
  </tr>
  <tr>
    <td WIDTH="40%" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="3%" align="right" valign="bottom" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="12%" align="right" valign="bottom" bgcolor="#E6E6E6">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="3%" align="right" valign="bottom" bgcolor="#E6E6E6">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" valign="bottom" bgcolor="#E6E6E6">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="3%" align="right" valign="bottom" bgcolor="#E6E6E6">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" valign="bottom" bgcolor="#E6E6E6">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="3%" align="right" valign="bottom" bgcolor="#E6E6E6">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" valign="bottom" bgcolor="#E6E6E6">
    <p style="margin-right: 4">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="40%">&nbsp;</td>
    <td WIDTH="3%" align="right" valign="bottom">&nbsp;</td>
    <td WIDTH="12%" align="right" valign="bottom">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="3%" align="right" valign="bottom">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" valign="bottom">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="3%" align="right" valign="bottom">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" valign="bottom">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="3%" align="right" valign="bottom">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" valign="bottom">
    <p style="margin-right: 4">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="100%" COLSPAN="9" align="center">
    <font FACE="Times New Roman" SIZE="2"><b>Consolidated Statements of Retained
    Earnings</b></font></td>
  </tr>
  <tr>
    <td WIDTH="100%" colspan="9" align="center">
    <font FACE="Times New Roman" SIZE="2">(In thousands of U.S. dollars)</font></td>
  </tr>
  <tr>
    <td WIDTH="40%">&nbsp;</td>
    <td WIDTH="3%" align="right" valign="bottom">&nbsp;</td>
    <td WIDTH="12%" align="right" valign="bottom">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="3%" align="right" valign="bottom">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" valign="bottom">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="3%" align="right" valign="bottom">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" valign="bottom">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="3%" align="right" valign="bottom">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" valign="bottom">
    <p style="margin-right: 4">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="40%">&nbsp;</td>
    <td WIDTH="3%" align="right" valign="bottom">&nbsp;</td>
    <td WIDTH="21%" COLSPAN="3" align="right" valign="bottom">
    <font FACE="Times New Roman" SIZE="2"><i><b>
    <p style="margin-right: 15%">Three months ended</b></i></font></td>
    <td WIDTH="3%" align="right" valign="bottom">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="36%" COLSPAN="3" align="right" valign="bottom">
    <font FACE="Times New Roman" SIZE="2"><i><b>
    <p style="margin-right: 15%">Nine months ended</b></i></font></td>
  </tr>
  <tr>
    <td WIDTH="40%">&nbsp;</td>
    <td WIDTH="3%" align="right" valign="bottom">&nbsp;</td>
    <td WIDTH="12%" align="right" valign="bottom">
    <font FACE="Times New Roman" SIZE="2">
    <p style="margin-right: 4"><u>July 1, 2007</u></font></td>
    <td WIDTH="3%" align="right" valign="bottom">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" valign="bottom">
    <font FACE="Times New Roman" SIZE="2">
    <p style="margin-right: 4"><u>July 2, 2006</u></font></td>
    <td WIDTH="3%" align="right" valign="bottom">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" valign="bottom">
    <font FACE="Times New Roman" SIZE="2">
    <p style="margin-right: 4"><u>July 1, 2007</u></font></td>
    <td WIDTH="3%" align="right" valign="bottom">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" valign="bottom">
    <font FACE="Times New Roman" SIZE="2">
    <p style="margin-right: 4"><u>July 2, 2006</u></font></td>
  </tr>
  <tr>
    <td WIDTH="40%">&nbsp;</td>
    <td WIDTH="3%" align="right" valign="bottom">&nbsp;</td>
    <td WIDTH="12%" align="right" valign="bottom">
    <font FACE="Times New Roman" SIZE="2">(unaudited)</font></td>
    <td WIDTH="3%" align="right" valign="bottom">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" valign="bottom">
    <font FACE="Times New Roman" SIZE="2">(unaudited)</font></td>
    <td WIDTH="3%" align="right" valign="bottom">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" valign="bottom">
    <font FACE="Times New Roman" SIZE="2">(unaudited)</font></td>
    <td WIDTH="3%" align="right" valign="bottom">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" valign="bottom">
    <font FACE="Times New Roman" SIZE="2">(unaudited)</font></td>
  </tr>
  <tr>
    <td WIDTH="40%">&nbsp;</td>
    <td WIDTH="3%" align="right" valign="bottom">&nbsp;</td>
    <td WIDTH="12%" align="right" valign="bottom">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="3%" align="right" valign="bottom">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" valign="bottom">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="3%" align="right" valign="bottom">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" valign="bottom">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="3%" align="right" valign="bottom">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" valign="bottom">
    <p style="margin-right: 4">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="40%" bgcolor="#E6E6E6"><font FACE="Times New Roman" SIZE="2">Retained earnings,
    beginning of the period</font></td>
    <td WIDTH="3%" align="right" valign="bottom" bgcolor="#E6E6E6">
    <font FACE="Times New Roman" SIZE="2">$</font></td>
    <td WIDTH="12%" align="right" valign="bottom" bgcolor="#E6E6E6">
    <font FACE="Times New Roman" SIZE="2">
    <p style="margin-right: 4">452,125</font></td>
    <td WIDTH="3%" align="right" valign="bottom" bgcolor="#E6E6E6">
    <font FACE="Times New Roman" SIZE="2">
    <p style="margin-right: 4">$</font></td>
    <td WIDTH="12%" align="right" valign="bottom" bgcolor="#E6E6E6">
    <font FACE="Times New Roman" SIZE="2">
    <p style="margin-right: 4">355,749</font></td>
    <td WIDTH="3%" align="right" valign="bottom" bgcolor="#E6E6E6">
    <font FACE="Times New Roman" SIZE="2">
    <p style="margin-right: 4">$</font></td>
    <td WIDTH="12%" align="right" valign="bottom" bgcolor="#E6E6E6">
    <font FACE="Times New Roman" SIZE="2">
    <p style="margin-right: 4">415,368</font></td>
    <td WIDTH="3%" align="right" valign="bottom" bgcolor="#E6E6E6">
    <font FACE="Times New Roman" SIZE="2">
    <p style="margin-right: 4">$</font></td>
    <td WIDTH="12%" align="right" valign="bottom" bgcolor="#E6E6E6">
    <font FACE="Times New Roman" SIZE="2">
    <p style="margin-right: 4">308,539</font></td>
  </tr>
  <tr>
    <td WIDTH="40%"><font FACE="Times New Roman" SIZE="2">Net earnings</font></td>
    <td WIDTH="3%" align="right" valign="bottom">&nbsp;</td>
    <td WIDTH="12%" align="right" style="border-bottom-style: solid; border-bottom-width: 1" valign="bottom">
    <font FACE="Times New Roman" SIZE="2">
    <p style="margin-right: 4">52,397</font></td>
    <td WIDTH="3%" align="right" valign="bottom">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" style="border-bottom-style: solid; border-bottom-width: 1" valign="bottom">
    <font FACE="Times New Roman" SIZE="2">
    <p style="margin-right: 4">42,831</font></td>
    <td WIDTH="3%" align="right" valign="bottom">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" style="border-bottom-style: solid; border-bottom-width: 1" valign="bottom">
    <font FACE="Times New Roman" SIZE="2">
    <p style="margin-right: 4">89,154</font></td>
    <td WIDTH="3%" align="right" valign="bottom">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" style="border-bottom-style: solid; border-bottom-width: 1" valign="bottom">
    <font FACE="Times New Roman" SIZE="2">
    <p style="margin-right: 4">90,041</font></td>
  </tr>
  <tr>
    <td WIDTH="40%" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="3%" align="right" valign="bottom" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="12%" align="right" style="border-top-style: solid; border-top-width: 1" valign="bottom" bgcolor="#E6E6E6">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="3%" align="right" valign="bottom" bgcolor="#E6E6E6">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" style="border-top-style: solid; border-top-width: 1" valign="bottom" bgcolor="#E6E6E6">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="3%" align="right" valign="bottom" bgcolor="#E6E6E6">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" style="border-top-style: solid; border-top-width: 1" valign="bottom" bgcolor="#E6E6E6">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="3%" align="right" valign="bottom" bgcolor="#E6E6E6">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" style="border-top-style: solid; border-top-width: 1" valign="bottom" bgcolor="#E6E6E6">
    <p style="margin-right: 4">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="40%"><font FACE="Times New Roman" SIZE="2">Retained earnings, end
    of the period</font></td>
    <td WIDTH="3%" align="right" valign="bottom">
    <font FACE="Times New Roman" SIZE="2">$</font></td>
    <td WIDTH="12%" align="right" style="border-bottom-style: solid; border-bottom-width: 2" valign="bottom">
    <font FACE="Times New Roman" SIZE="2">
    <p style="margin-right: 4">504,522</font></td>
    <td WIDTH="3%" align="right" valign="bottom">
    <font FACE="Times New Roman" SIZE="2">
    <p style="margin-right: 4">$</font></td>
    <td WIDTH="12%" align="right" style="border-bottom-style: solid; border-bottom-width: 2" valign="bottom">
    <font FACE="Times New Roman" SIZE="2">
    <p style="margin-right: 4">398,580</font></td>
    <td WIDTH="3%" align="right" valign="bottom">
    <font FACE="Times New Roman" SIZE="2">
    <p style="margin-right: 4">$</font></td>
    <td WIDTH="12%" align="right" style="border-bottom-style: solid; border-bottom-width: 2" valign="bottom">
    <font FACE="Times New Roman" SIZE="2">
    <p style="margin-right: 4">504,522</font></td>
    <td WIDTH="3%" align="right" valign="bottom">
    <font FACE="Times New Roman" SIZE="2">
    <p style="margin-right: 4">$</font></td>
    <td WIDTH="12%" align="right" style="border-bottom-style: solid; border-bottom-width: 2" valign="bottom">
    <font FACE="Times New Roman" SIZE="2">
    <p style="margin-right: 4">398,580</font></td>
  </tr>
  <tr>
    <td WIDTH="40%">&nbsp;</td>
    <td WIDTH="3%" align="right">&nbsp;</td>
    <td WIDTH="12%" align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="3%" align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="3%" align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="3%" align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right">
    <p style="margin-right: 4">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="96%" COLSPAN="9"><font FACE="Times New Roman" SIZE="2">See
    accompanying notes to interim consolidated financial statements.</font></td>
  </tr>
</table>
<font FACE="Times New Roman PS" SIZE="2"><i>
<p align="right">GILDAN QUARTERLY REPORT - Q3 2007 p.20</p>
<hr color="#000000" size="5"><p Style='page-break-before:always'></i></font>
<table CELLSPACING="0" BORDER="0" WIDTH="100%" cellpadding="0" style="border-collapse: collapse" bordercolor="#111111">
  <tr>
    <td WIDTH="100%" colspan="9" align="center">
    <font FACE="Times New Roman" SIZE="4"><b>Gildan Activewear Inc.</b></font></td>
  </tr>
  <tr>
    <td WIDTH="100%" colspan="9" align="center">
    <font FACE="Times New Roman" SIZE="2"><b>Consolidated Statements of Cash
    Flows</b></font></td>
  </tr>
  <tr>
    <td WIDTH="99%" colspan="9" align="center">
    <font FACE="Times New Roman" SIZE="2">(In thousands of U.S. dollars)</font></td>
  </tr>
  <tr>
    <td WIDTH="40%">
    <p style="text-indent: -26; margin-left: 26">&nbsp;</td>
    <td WIDTH="3%" align="right" valign="bottom">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" valign="bottom">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="3%" align="right" valign="bottom">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" valign="bottom">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="3%" align="right" valign="bottom">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" valign="bottom">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="3%" align="right" valign="bottom">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" valign="bottom">
    <p style="margin-right: 4">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="40%">
    <p style="text-indent: -26; margin-left: 26">&nbsp;</td>
    <td WIDTH="3%" align="right" valign="bottom">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="21%" COLSPAN="3" align="right" valign="bottom">
    <font FACE="Times New Roman" SIZE="2"><i><b>
    <p style="margin-right: 15%">Three months ended</b></i></font></td>
    <td WIDTH="3%" align="right" valign="bottom">
    <p style="margin-right: 15%">&nbsp;</td>
    <td WIDTH="37%" COLSPAN="3" align="right" valign="bottom">
    <font FACE="Times New Roman" SIZE="2"><i><b>
    <p style="margin-right: 15%">Nine months ended</b></i></font></td>
  </tr>
  <tr>
    <td WIDTH="40%">
    <p style="text-indent: -26; margin-left: 26">&nbsp;</td>
    <td WIDTH="3%" align="right" valign="bottom">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" valign="bottom">
    <font FACE="Times New Roman" SIZE="2">
    <p style="margin-right: 4"><u>July 1, 2007</u></font></td>
    <td WIDTH="3%" align="right" valign="bottom">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" valign="bottom">
    <font FACE="Times New Roman" SIZE="2">
    <p style="margin-right: 4"><u>July 2, 2006</u></font></td>
    <td WIDTH="3%" align="right" valign="bottom">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" valign="bottom">
    <font FACE="Times New Roman" SIZE="2">
    <p style="margin-right: 4"><u>July 1, 2007</u></font></td>
    <td WIDTH="3%" align="right" valign="bottom">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" valign="bottom">
    <font FACE="Times New Roman" SIZE="2">
    <p style="margin-right: 4"><u>July 2, 2006</u></font></td>
  </tr>
  <tr>
    <td WIDTH="40%">
    <p style="text-indent: -26; margin-left: 26">&nbsp;</td>
    <td WIDTH="3%" align="right" valign="bottom">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" valign="bottom">
    <font FACE="Times New Roman" SIZE="2">(unaudited)</font></td>
    <td WIDTH="3%" align="right" valign="bottom">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" valign="bottom">
    <font FACE="Times New Roman" SIZE="2">(unaudited)</font></td>
    <td WIDTH="3%" align="right" valign="bottom">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" valign="bottom">
    <font FACE="Times New Roman" SIZE="2">(unaudited)</font></td>
    <td WIDTH="3%" align="right" valign="bottom">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" valign="bottom">
    <font FACE="Times New Roman" SIZE="2">(unaudited)</font></td>
  </tr>
  <tr>
    <td WIDTH="40%">
    <p style="text-indent: -26; margin-left: 26">&nbsp;</td>
    <td WIDTH="3%" align="right" valign="bottom">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" valign="bottom">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="3%" align="right" valign="bottom">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" valign="bottom">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="3%" align="right" valign="bottom">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" valign="bottom">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="3%" align="right" valign="bottom">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" valign="bottom">
    <p style="margin-right: 4">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="40%" bgcolor="#E6E6E6"><font FACE="Times New Roman" SIZE="2">
    <p style="text-indent: -26; margin-left: 26">Cash flows from operating
    activities:</font></td>
    <td WIDTH="3%" align="right" valign="bottom" bgcolor="#E6E6E6">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" valign="bottom" bgcolor="#E6E6E6">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="3%" align="right" valign="bottom" bgcolor="#E6E6E6">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" valign="bottom" bgcolor="#E6E6E6">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="3%" align="right" valign="bottom" bgcolor="#E6E6E6">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" valign="bottom" bgcolor="#E6E6E6">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="3%" align="right" valign="bottom" bgcolor="#E6E6E6">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" valign="bottom" bgcolor="#E6E6E6">
    <p style="margin-right: 4">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="40%"><font FACE="Times New Roman" SIZE="2">
    <p style="text-indent: -26; margin-left: 52">Net earnings</font></td>
    <td WIDTH="3%" align="right" valign="bottom">
    <font FACE="Times New Roman" SIZE="2">
    <p style="margin-right: 4">$</font></td>
    <td WIDTH="12%" align="right" valign="bottom">
    <font FACE="Times New Roman" SIZE="2">
    <p style="margin-right: 4">52,397</font></td>
    <td WIDTH="3%" align="right" valign="bottom">
    <font FACE="Times New Roman" SIZE="2">
    <p style="margin-right: 4">$</font></td>
    <td WIDTH="12%" align="right" valign="bottom">
    <font FACE="Times New Roman" SIZE="2">
    <p style="margin-right: 4">42,831</font></td>
    <td WIDTH="3%" align="right" valign="bottom">
    <font FACE="Times New Roman" SIZE="2">
    <p style="margin-right: 4">$</font></td>
    <td WIDTH="12%" align="right" valign="bottom">
    <font FACE="Times New Roman" SIZE="2">
    <p style="margin-right: 4">89,154</font></td>
    <td WIDTH="3%" align="right" valign="bottom">
    <font FACE="Times New Roman" SIZE="2">
    <p style="margin-right: 4">$</font></td>
    <td WIDTH="12%" align="right" valign="bottom">
    <font FACE="Times New Roman" SIZE="2">
    <p style="margin-right: 4">90,041</font></td>
  </tr>
  <tr>
    <td WIDTH="40%" bgcolor="#E6E6E6"><font FACE="Times New Roman" SIZE="2">
    <p style="text-indent: -26; margin-left: 52">Adjustments for:</font></td>
    <td WIDTH="3%" align="right" valign="bottom" bgcolor="#E6E6E6">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" valign="bottom" bgcolor="#E6E6E6">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="3%" align="right" valign="bottom" bgcolor="#E6E6E6">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" valign="bottom" bgcolor="#E6E6E6">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="3%" align="right" valign="bottom" bgcolor="#E6E6E6">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" valign="bottom" bgcolor="#E6E6E6">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="3%" align="right" valign="bottom" bgcolor="#E6E6E6">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" valign="bottom" bgcolor="#E6E6E6">
    <p style="margin-right: 4">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="40%"><font FACE="Times New Roman" SIZE="2">
    <p style="text-indent: -26; margin-left: 78">Depreciation and amortization</font></td>
    <td WIDTH="3%" align="right" valign="bottom">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" valign="bottom">
    <font FACE="Times New Roman" SIZE="2">
    <p style="margin-right: 4">11,038</font></td>
    <td WIDTH="3%" align="right" valign="bottom">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" valign="bottom">
    <font FACE="Times New Roman" SIZE="2">
    <p style="margin-right: 4">8,169</font></td>
    <td WIDTH="3%" align="right" valign="bottom">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" valign="bottom">
    <font FACE="Times New Roman" SIZE="2">
    <p style="margin-right: 4">31,413</font></td>
    <td WIDTH="3%" align="right" valign="bottom">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" valign="bottom">
    <font FACE="Times New Roman" SIZE="2">
    <p style="margin-right: 4">23,311</font></td>
  </tr>
  <tr>
    <td WIDTH="40%" bgcolor="#E6E6E6"><font FACE="Times New Roman" SIZE="2">
    <p style="text-indent: -26; margin-left: 78">Impairment loss and writedown
    of property, plant and equipment</font></td>
    <td WIDTH="3%" align="right" valign="bottom" bgcolor="#E6E6E6">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" valign="bottom" bgcolor="#E6E6E6">
    <font FACE="Times New Roman" SIZE="2">
    <p style="margin-right: 4">-</font></td>
    <td WIDTH="3%" align="right" valign="bottom" bgcolor="#E6E6E6">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" valign="bottom" bgcolor="#E6E6E6">
    <font FACE="Times New Roman" SIZE="2">
    <p style="margin-right: 4">-</font></td>
    <td WIDTH="3%" align="right" valign="bottom" bgcolor="#E6E6E6">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" valign="bottom" bgcolor="#E6E6E6">
    <font FACE="Times New Roman" SIZE="2">
    <p style="margin-right: 4">3,560</font></td>
    <td WIDTH="3%" align="right" valign="bottom" bgcolor="#E6E6E6">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" valign="bottom" bgcolor="#E6E6E6">
    <font FACE="Times New Roman" SIZE="2">
    <p style="margin-right: 4">-</font></td>
  </tr>
  <tr>
    <td WIDTH="40%"><font FACE="Times New Roman" SIZE="2">
    <p style="text-indent: -26; margin-left: 78">(Gain) loss on disposal of
    assets held for sale and property, plant and equipment</font></td>
    <td WIDTH="3%" align="right" valign="bottom">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" valign="bottom">
    <font FACE="Times New Roman" SIZE="2">(118)</font></td>
    <td WIDTH="3%" align="right" valign="bottom">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" valign="bottom">
    <font FACE="Times New Roman" SIZE="2">
    <p style="margin-right: 4">833</font></td>
    <td WIDTH="3%" align="right" valign="bottom">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" valign="bottom">
    <font FACE="Times New Roman" SIZE="2">(1,856)</font></td>
    <td WIDTH="3%" align="right" valign="bottom">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" valign="bottom">
    <font FACE="Times New Roman" SIZE="2">
    <p style="margin-right: 4">1,175</font></td>
  </tr>
  <tr>
    <td WIDTH="40%" bgcolor="#E6E6E6"><font FACE="Times New Roman" SIZE="2">
    <p style="text-indent: -26; margin-left: 78">Stock-based compensation costs</font></td>
    <td WIDTH="3%" align="right" valign="bottom" bgcolor="#E6E6E6">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" valign="bottom" bgcolor="#E6E6E6">
    <font FACE="Times New Roman" SIZE="2">
    <p style="margin-right: 4">371</font></td>
    <td WIDTH="3%" align="right" valign="bottom" bgcolor="#E6E6E6">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" valign="bottom" bgcolor="#E6E6E6">
    <font FACE="Times New Roman" SIZE="2">
    <p style="margin-right: 4">318</font></td>
    <td WIDTH="3%" align="right" valign="bottom" bgcolor="#E6E6E6">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" valign="bottom" bgcolor="#E6E6E6">
    <font FACE="Times New Roman" SIZE="2">
    <p style="margin-right: 4">1,149</font></td>
    <td WIDTH="3%" align="right" valign="bottom" bgcolor="#E6E6E6">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" valign="bottom" bgcolor="#E6E6E6">
    <font FACE="Times New Roman" SIZE="2">
    <p style="margin-right: 4">843</font></td>
  </tr>
  <tr>
    <td WIDTH="40%"><font FACE="Times New Roman" SIZE="2">
    <p style="text-indent: -26; margin-left: 78">Future income taxes</font></td>
    <td WIDTH="3%" align="right" valign="bottom">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" valign="bottom">
    <font FACE="Times New Roman" SIZE="2">(4,689)</font></td>
    <td WIDTH="3%" align="right" valign="bottom">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" valign="bottom">
    <font FACE="Times New Roman" SIZE="2">
    <p style="margin-right: 4">427</font></td>
    <td WIDTH="3%" align="right" valign="bottom">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" valign="bottom">
    <font FACE="Times New Roman" SIZE="2">(3,210)</font></td>
    <td WIDTH="3%" align="right" valign="bottom">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" valign="bottom">
    <font FACE="Times New Roman" SIZE="2">
    <p style="margin-right: 4">845</font></td>
  </tr>
  <tr>
    <td WIDTH="40%" bgcolor="#E6E6E6"><font FACE="Times New Roman" SIZE="2">
    <p style="text-indent: -26; margin-left: 78">Non-controlling interest</font></td>
    <td WIDTH="3%" align="right" valign="bottom" bgcolor="#E6E6E6">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" valign="bottom" bgcolor="#E6E6E6">
    <font FACE="Times New Roman" SIZE="2">
    <p style="margin-right: 4">503</font></td>
    <td WIDTH="3%" align="right" valign="bottom" bgcolor="#E6E6E6">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" valign="bottom" bgcolor="#E6E6E6">
    <font FACE="Times New Roman" SIZE="2">
    <p style="margin-right: 4">192</font></td>
    <td WIDTH="3%" align="right" valign="bottom" bgcolor="#E6E6E6">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" valign="bottom" bgcolor="#E6E6E6">
    <font FACE="Times New Roman" SIZE="2">
    <p style="margin-right: 4">625</font></td>
    <td WIDTH="3%" align="right" valign="bottom" bgcolor="#E6E6E6">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" valign="bottom" bgcolor="#E6E6E6">
    <font FACE="Times New Roman" SIZE="2">
    <p style="margin-right: 4">240</font></td>
  </tr>
  <tr>
    <td WIDTH="40%"><font FACE="Times New Roman" SIZE="2">
    <p style="text-indent: -26; margin-left: 78">Unrealized foreign exchange
    loss (gain)</font></td>
    <td WIDTH="3%" align="right" valign="bottom">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" valign="bottom" style="border-bottom-style: solid; border-bottom-width: 1">
    <font FACE="Times New Roman" SIZE="2">
    <p style="margin-right: 4">3,029</font></td>
    <td WIDTH="3%" align="right" valign="bottom">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" valign="bottom" style="border-bottom-style: solid; border-bottom-width: 1">
    <font FACE="Times New Roman" SIZE="2">(766)</font></td>
    <td WIDTH="3%" align="right" valign="bottom">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" valign="bottom" style="border-bottom-style: solid; border-bottom-width: 1">
    <font FACE="Times New Roman" SIZE="2">
    <p style="margin-right: 4">1,441</font></td>
    <td WIDTH="3%" align="right" valign="bottom">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" valign="bottom" style="border-bottom-style: solid; border-bottom-width: 1">
    <font FACE="Times New Roman" SIZE="2">(647)</font></td>
  </tr>
  <tr>
    <td WIDTH="40%" bgcolor="#E6E6E6">
    <p style="text-indent: -26; margin-left: 26">&nbsp;</td>
    <td WIDTH="3%" align="right" valign="bottom" bgcolor="#E6E6E6">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" valign="bottom" style="border-top-style: solid; border-top-width: 1" bgcolor="#E6E6E6">
    <font FACE="Times New Roman" SIZE="2">
    <p style="margin-right: 4">62,531</font></td>
    <td WIDTH="3%" align="right" valign="bottom" bgcolor="#E6E6E6">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" valign="bottom" style="border-top-style: solid; border-top-width: 1" bgcolor="#E6E6E6">
    <font FACE="Times New Roman" SIZE="2">
    <p style="margin-right: 4">52,004</font></td>
    <td WIDTH="3%" align="right" valign="bottom" bgcolor="#E6E6E6">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" valign="bottom" style="border-top-style: solid; border-top-width: 1" bgcolor="#E6E6E6">
    <font FACE="Times New Roman" SIZE="2">
    <p style="margin-right: 4">122,276</font></td>
    <td WIDTH="3%" align="right" valign="bottom" bgcolor="#E6E6E6">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" valign="bottom" style="border-top-style: solid; border-top-width: 1" bgcolor="#E6E6E6">
    <font FACE="Times New Roman" SIZE="2">
    <p style="margin-right: 4">115,808</font></td>
  </tr>
  <tr>
    <td WIDTH="40%"><font FACE="Times New Roman" SIZE="2">
    <p style="text-indent: -26; margin-left: 52">Changes in non-cash working
    capital balances:</font></td>
    <td WIDTH="3%" align="right" valign="bottom">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" valign="bottom">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="3%" align="right" valign="bottom">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" valign="bottom">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="3%" align="right" valign="bottom">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" valign="bottom">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="3%" align="right" valign="bottom">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" valign="bottom">
    <p style="margin-right: 4">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="40%" bgcolor="#E6E6E6"><font FACE="Times New Roman" SIZE="2">
    <p style="text-indent: -26; margin-left: 78">Accounts receivable</font></td>
    <td WIDTH="3%" align="right" valign="bottom" bgcolor="#E6E6E6">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" valign="bottom" bgcolor="#E6E6E6">
    <font FACE="Times New Roman" SIZE="2">(45,712)</font></td>
    <td WIDTH="3%" align="right" valign="bottom" bgcolor="#E6E6E6">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" valign="bottom" bgcolor="#E6E6E6">
    <font FACE="Times New Roman" SIZE="2">(29,333)</font></td>
    <td WIDTH="3%" align="right" valign="bottom" bgcolor="#E6E6E6">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" valign="bottom" bgcolor="#E6E6E6">
    <font FACE="Times New Roman" SIZE="2">(16,266)</font></td>
    <td WIDTH="3%" align="right" valign="bottom" bgcolor="#E6E6E6">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" valign="bottom" bgcolor="#E6E6E6">
    <font FACE="Times New Roman" SIZE="2">(24,077)</font></td>
  </tr>
  <tr>
    <td WIDTH="40%"><font FACE="Times New Roman" SIZE="2">
    <p style="text-indent: -26; margin-left: 78">Inventories</font></td>
    <td WIDTH="3%" align="right" valign="bottom">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" valign="bottom">
    <font FACE="Times New Roman" SIZE="2">
    <p style="margin-right: 4">11,051</font></td>
    <td WIDTH="3%" align="right" valign="bottom">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" valign="bottom">
    <font FACE="Times New Roman" SIZE="2">
    <p style="margin-right: 4">25,330</font></td>
    <td WIDTH="3%" align="right" valign="bottom">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" valign="bottom">
    <font FACE="Times New Roman" SIZE="2">(30,885)</font></td>
    <td WIDTH="3%" align="right" valign="bottom">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" valign="bottom">
    <font FACE="Times New Roman" SIZE="2">(26,400)</font></td>
  </tr>
  <tr>
    <td WIDTH="40%" bgcolor="#E6E6E6"><font FACE="Times New Roman" SIZE="2">
    <p style="text-indent: -26; margin-left: 78">Prepaid expenses and deposits</font></td>
    <td WIDTH="3%" align="right" valign="bottom" bgcolor="#E6E6E6">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" valign="bottom" bgcolor="#E6E6E6">
    <font FACE="Times New Roman" SIZE="2">(2,499)</font></td>
    <td WIDTH="3%" align="right" valign="bottom" bgcolor="#E6E6E6">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" valign="bottom" bgcolor="#E6E6E6">
    <font FACE="Times New Roman" SIZE="2">(2,413)</font></td>
    <td WIDTH="3%" align="right" valign="bottom" bgcolor="#E6E6E6">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" valign="bottom" bgcolor="#E6E6E6">
    <font FACE="Times New Roman" SIZE="2">(3,816)</font></td>
    <td WIDTH="3%" align="right" valign="bottom" bgcolor="#E6E6E6">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" valign="bottom" bgcolor="#E6E6E6">
    <font FACE="Times New Roman" SIZE="2">(1,908)</font></td>
  </tr>
  <tr>
    <td WIDTH="40%"><font FACE="Times New Roman" SIZE="2">
    <p style="text-indent: -26; margin-left: 78">Accounts payable and accrued
    liabilities</font></td>
    <td WIDTH="3%" align="right" valign="bottom">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" valign="bottom">
    <font FACE="Times New Roman" SIZE="2">
    <p style="margin-right: 4">5,354</font></td>
    <td WIDTH="3%" align="right" valign="bottom">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" valign="bottom">
    <font FACE="Times New Roman" SIZE="2">
    <p style="margin-right: 4">293</font></td>
    <td WIDTH="3%" align="right" valign="bottom">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" valign="bottom">
    <font FACE="Times New Roman" SIZE="2">
    <p style="margin-right: 4">1,119</font></td>
    <td WIDTH="3%" align="right" valign="bottom">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" valign="bottom">
    <font FACE="Times New Roman" SIZE="2">(3,499)</font></td>
  </tr>
  <tr>
    <td WIDTH="40%" bgcolor="#E6E6E6"><font FACE="Times New Roman" SIZE="2">
    <p style="text-indent: -26; margin-left: 78">Income taxes payable</font></td>
    <td WIDTH="3%" align="right" valign="bottom" bgcolor="#E6E6E6">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" valign="bottom" style="border-bottom-style: solid; border-bottom-width: 1" bgcolor="#E6E6E6">
    <font FACE="Times New Roman" SIZE="2">
    <p style="margin-right: 4">1,607</font></td>
    <td WIDTH="3%" align="right" valign="bottom" bgcolor="#E6E6E6">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" valign="bottom" style="border-bottom-style: solid; border-bottom-width: 1" bgcolor="#E6E6E6">
    <font FACE="Times New Roman" SIZE="2">
    <p style="margin-right: 4">1,240</font></td>
    <td WIDTH="3%" align="right" valign="bottom" bgcolor="#E6E6E6">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" valign="bottom" style="border-bottom-style: solid; border-bottom-width: 1" bgcolor="#E6E6E6">
    <font FACE="Times New Roman" SIZE="2">(338)</font></td>
    <td WIDTH="3%" align="right" valign="bottom" bgcolor="#E6E6E6">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" valign="bottom" style="border-bottom-style: solid; border-bottom-width: 1" bgcolor="#E6E6E6">
    <font FACE="Times New Roman" SIZE="2">
    <p style="margin-right: 4">1,225</font></td>
  </tr>
  <tr>
    <td WIDTH="40%">
    <p style="text-indent: -26; margin-left: 26">&nbsp;</td>
    <td WIDTH="3%" align="right" valign="bottom">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" valign="bottom" style="border-top-style: solid; border-top-width: 1">
    <font FACE="Times New Roman" SIZE="2">
    <p style="margin-right: 4">32,332</font></td>
    <td WIDTH="3%" align="right" valign="bottom">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" valign="bottom" style="border-top-style: solid; border-top-width: 1">
    <font FACE="Times New Roman" SIZE="2">
    <p style="margin-right: 4">47,121</font></td>
    <td WIDTH="3%" align="right" valign="bottom">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" valign="bottom" style="border-top-style: solid; border-top-width: 1">
    <font FACE="Times New Roman" SIZE="2">
    <p style="margin-right: 4">72,090</font></td>
    <td WIDTH="3%" align="right" valign="bottom">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" valign="bottom" style="border-top-style: solid; border-top-width: 1">
    <font FACE="Times New Roman" SIZE="2">
    <p style="margin-right: 4">61,149</font></td>
  </tr>
  <tr>
    <td WIDTH="40%" bgcolor="#E6E6E6">
    <p style="text-indent: -26; margin-left: 26">&nbsp;</td>
    <td WIDTH="3%" align="right" valign="bottom" bgcolor="#E6E6E6">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" valign="bottom" bgcolor="#E6E6E6">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="3%" align="right" valign="bottom" bgcolor="#E6E6E6">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" valign="bottom" bgcolor="#E6E6E6">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="3%" align="right" valign="bottom" bgcolor="#E6E6E6">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" valign="bottom" bgcolor="#E6E6E6">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="3%" align="right" valign="bottom" bgcolor="#E6E6E6">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" valign="bottom" bgcolor="#E6E6E6">
    <p style="margin-right: 4">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="40%"><font FACE="Times New Roman" SIZE="2">
    <p style="text-indent: -26; margin-left: 26">Cash flows from (used in)
    financing activities:</font></td>
    <td WIDTH="3%" align="right" valign="bottom">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" valign="bottom">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="3%" align="right" valign="bottom">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" valign="bottom">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="3%" align="right" valign="bottom">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" valign="bottom">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="3%" align="right" valign="bottom">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" valign="bottom">
    <p style="margin-right: 4">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="40%" bgcolor="#E6E6E6"><font FACE="Times New Roman" SIZE="2">
    <p style="text-indent: -26; margin-left: 52">(Decrease) increase in
    revolving term credit facility</font></td>
    <td WIDTH="3%" align="right" valign="bottom" bgcolor="#E6E6E6">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" valign="bottom" bgcolor="#E6E6E6">
    <font FACE="Times New Roman" SIZE="2">(13,000)</font></td>
    <td WIDTH="3%" align="right" valign="bottom" bgcolor="#E6E6E6">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" valign="bottom" bgcolor="#E6E6E6">
    <font FACE="Times New Roman" SIZE="2">
    <p style="margin-right: 4">-</font></td>
    <td WIDTH="3%" align="right" valign="bottom" bgcolor="#E6E6E6">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" valign="bottom" bgcolor="#E6E6E6">
    <font FACE="Times New Roman" SIZE="2">
    <p style="margin-right: 4">30,000</font></td>
    <td WIDTH="3%" align="right" valign="bottom" bgcolor="#E6E6E6">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" valign="bottom" bgcolor="#E6E6E6">
    <font FACE="Times New Roman" SIZE="2">
    <p style="margin-right: 4">-</font></td>
  </tr>
  <tr>
    <td WIDTH="40%"><font FACE="Times New Roman" SIZE="2">
    <p style="text-indent: -26; margin-left: 52">Net decrease in other long-term
    debt</font></td>
    <td WIDTH="3%" align="right" valign="bottom">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" valign="bottom">
    <font FACE="Times New Roman" SIZE="2">(18,266)</font></td>
    <td WIDTH="3%" align="right" valign="bottom">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" valign="bottom">
    <font FACE="Times New Roman" SIZE="2">(18,007)</font></td>
    <td WIDTH="3%" align="right" valign="bottom">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" valign="bottom">
    <font FACE="Times New Roman" SIZE="2">(20,948)</font></td>
    <td WIDTH="3%" align="right" valign="bottom">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" valign="bottom">
    <font FACE="Times New Roman" SIZE="2">(18,588)</font></td>
  </tr>
  <tr>
    <td WIDTH="40%" bgcolor="#E6E6E6"><font FACE="Times New Roman" SIZE="2">
    <p style="text-indent: -26; margin-left: 52">Proceeds from the issuance of
    shares</font></td>
    <td WIDTH="3%" align="right" valign="bottom" bgcolor="#E6E6E6">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" valign="bottom" style="border-bottom-style: solid; border-bottom-width: 1" bgcolor="#E6E6E6">
    <font FACE="Times New Roman" SIZE="2">
    <p style="margin-right: 4">180</font></td>
    <td WIDTH="3%" align="right" valign="bottom" bgcolor="#E6E6E6">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" valign="bottom" style="border-bottom-style: solid; border-bottom-width: 1" bgcolor="#E6E6E6">
    <font FACE="Times New Roman" SIZE="2">
    <p style="margin-right: 4">167</font></td>
    <td WIDTH="3%" align="right" valign="bottom" bgcolor="#E6E6E6">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" valign="bottom" style="border-bottom-style: solid; border-bottom-width: 1" bgcolor="#E6E6E6">
    <font FACE="Times New Roman" SIZE="2">
    <p style="margin-right: 4">949</font></td>
    <td WIDTH="3%" align="right" valign="bottom" bgcolor="#E6E6E6">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" valign="bottom" style="border-bottom-style: solid; border-bottom-width: 1" bgcolor="#E6E6E6">
    <font FACE="Times New Roman" SIZE="2">
    <p style="margin-right: 4">1,614</font></td>
  </tr>
  <tr>
    <td WIDTH="40%">
    <p style="text-indent: -26; margin-left: 26">&nbsp;</td>
    <td WIDTH="3%" align="right" valign="bottom">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" valign="bottom" style="border-top-style: solid; border-top-width: 1">
    <font FACE="Times New Roman" SIZE="2">(31,086)</font></td>
    <td WIDTH="3%" align="right" valign="bottom">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" valign="bottom" style="border-top-style: solid; border-top-width: 1">
    <font FACE="Times New Roman" SIZE="2">(17,840)</font></td>
    <td WIDTH="3%" align="right" valign="bottom">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" valign="bottom" style="border-top-style: solid; border-top-width: 1">
    <font FACE="Times New Roman" SIZE="2">
    <p style="margin-right: 4">10,001</font></td>
    <td WIDTH="3%" align="right" valign="bottom">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" valign="bottom" style="border-top-style: solid; border-top-width: 1">
    <font FACE="Times New Roman" SIZE="2">(16,974)</font></td>
  </tr>
  <tr>
    <td WIDTH="40%" bgcolor="#E6E6E6">
    <p style="text-indent: -26; margin-left: 26">&nbsp;</td>
    <td WIDTH="3%" align="right" valign="bottom" bgcolor="#E6E6E6">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" valign="bottom" bgcolor="#E6E6E6">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="3%" align="right" valign="bottom" bgcolor="#E6E6E6">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" valign="bottom" bgcolor="#E6E6E6">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="3%" align="right" valign="bottom" bgcolor="#E6E6E6">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" valign="bottom" bgcolor="#E6E6E6">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="3%" align="right" valign="bottom" bgcolor="#E6E6E6">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" valign="bottom" bgcolor="#E6E6E6">
    <p style="margin-right: 4">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="40%"><font FACE="Times New Roman" SIZE="2">
    <p style="text-indent: -26; margin-left: 26">Cash flows used in investing
    activities:</font></td>
    <td WIDTH="3%" align="right" valign="bottom">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" valign="bottom">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="3%" align="right" valign="bottom">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" valign="bottom">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="3%" align="right" valign="bottom">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" valign="bottom">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="3%" align="right" valign="bottom">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" valign="bottom">
    <p style="margin-right: 4">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="40%" bgcolor="#E6E6E6"><font FACE="Times New Roman" SIZE="2">
    <p style="text-indent: -26; margin-left: 52">Purchase of property, plant and
    equipment</font></td>
    <td WIDTH="3%" align="right" valign="bottom" bgcolor="#E6E6E6">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" valign="bottom" bgcolor="#E6E6E6">
    <font FACE="Times New Roman" SIZE="2">(32,864)</font></td>
    <td WIDTH="3%" align="right" valign="bottom" bgcolor="#E6E6E6">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" valign="bottom" bgcolor="#E6E6E6">
    <font FACE="Times New Roman" SIZE="2">(17,772)</font></td>
    <td WIDTH="3%" align="right" valign="bottom" bgcolor="#E6E6E6">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" valign="bottom" bgcolor="#E6E6E6">
    <font FACE="Times New Roman" SIZE="2">(108,315)</font></td>
    <td WIDTH="3%" align="right" valign="bottom" bgcolor="#E6E6E6">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" valign="bottom" bgcolor="#E6E6E6">
    <font FACE="Times New Roman" SIZE="2">(53,995)</font></td>
  </tr>
  <tr>
    <td WIDTH="40%"><font FACE="Times New Roman" SIZE="2">
    <p style="text-indent: -26; margin-left: 52">Proceeds from assets held for
    sale</font></td>
    <td WIDTH="3%" align="right" valign="bottom">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" valign="bottom">
    <font FACE="Times New Roman" SIZE="2">
    <p style="margin-right: 4">4,429</font></td>
    <td WIDTH="3%" align="right" valign="bottom">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" valign="bottom">
    <font FACE="Times New Roman" SIZE="2">
    <p style="margin-right: 4">5,027</font></td>
    <td WIDTH="3%" align="right" valign="bottom">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" valign="bottom">
    <font FACE="Times New Roman" SIZE="2">
    <p style="margin-right: 4">6,424</font></td>
    <td WIDTH="3%" align="right" valign="bottom">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" valign="bottom">
    <font FACE="Times New Roman" SIZE="2">
    <p style="margin-right: 4">5,027</font></td>
  </tr>
  <tr>
    <td WIDTH="40%" bgcolor="#E6E6E6"><font FACE="Times New Roman" SIZE="2">
    <p style="text-indent: -26; margin-left: 52">Increase in other assets</font></td>
    <td WIDTH="3%" align="right" valign="bottom" bgcolor="#E6E6E6">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" valign="bottom" style="border-bottom-style: solid; border-bottom-width: 1" bgcolor="#E6E6E6">
    <font FACE="Times New Roman" SIZE="2">(778)</font></td>
    <td WIDTH="3%" align="right" valign="bottom" bgcolor="#E6E6E6">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" valign="bottom" style="border-bottom-style: solid; border-bottom-width: 1" bgcolor="#E6E6E6">
    <font FACE="Times New Roman" SIZE="2">(756)</font></td>
    <td WIDTH="3%" align="right" valign="bottom" bgcolor="#E6E6E6">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" valign="bottom" style="border-bottom-style: solid; border-bottom-width: 1" bgcolor="#E6E6E6">
    <font FACE="Times New Roman" SIZE="2">(1,786)</font></td>
    <td WIDTH="3%" align="right" valign="bottom" bgcolor="#E6E6E6">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" valign="bottom" style="border-bottom-style: solid; border-bottom-width: 1" bgcolor="#E6E6E6">
    <font FACE="Times New Roman" SIZE="2">(1,007)</font></td>
  </tr>
  <tr>
    <td WIDTH="40%">
    <p style="text-indent: -26; margin-left: 26">&nbsp;</td>
    <td WIDTH="3%" align="right" valign="bottom">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" valign="bottom" style="border-top-style: solid; border-top-width: 1">
    <font FACE="Times New Roman" SIZE="2">(29,213)</font></td>
    <td WIDTH="3%" align="right" valign="bottom">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" valign="bottom" style="border-top-style: solid; border-top-width: 1">
    <font FACE="Times New Roman" SIZE="2">(13,501)</font></td>
    <td WIDTH="3%" align="right" valign="bottom">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" valign="bottom" style="border-top-style: solid; border-top-width: 1">
    <font FACE="Times New Roman" SIZE="2">(103,677)</font></td>
    <td WIDTH="3%" align="right" valign="bottom">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" valign="bottom" style="border-top-style: solid; border-top-width: 1">
    <font FACE="Times New Roman" SIZE="2">(49,975)</font></td>
  </tr>
  <tr>
    <td WIDTH="40%" bgcolor="#E6E6E6">
    <p style="text-indent: -26; margin-left: 26">&nbsp;</td>
    <td WIDTH="3%" align="right" valign="bottom" bgcolor="#E6E6E6">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" valign="bottom" bgcolor="#E6E6E6">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="3%" align="right" valign="bottom" bgcolor="#E6E6E6">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" valign="bottom" bgcolor="#E6E6E6">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="3%" align="right" valign="bottom" bgcolor="#E6E6E6">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" valign="bottom" bgcolor="#E6E6E6">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="3%" align="right" valign="bottom" bgcolor="#E6E6E6">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" valign="bottom" bgcolor="#E6E6E6">
    <p style="margin-right: 4">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="40%"><font FACE="Times New Roman" SIZE="2">
    <p style="text-indent: -26; margin-left: 26">Effect of exchange rate changes
    on cash and cash equivalents denominated in foreign currencies</font></td>
    <td WIDTH="3%" align="right" valign="bottom">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" valign="bottom" style="border-bottom-style: solid; border-bottom-width: 1">
    <font FACE="Times New Roman" SIZE="2">
    <p style="margin-right: 4">23</font></td>
    <td WIDTH="3%" align="right" valign="bottom">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" valign="bottom" style="border-bottom-style: solid; border-bottom-width: 1">
    <font FACE="Times New Roman" SIZE="2">(26)</font></td>
    <td WIDTH="3%" align="right" valign="bottom">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" valign="bottom" style="border-bottom-style: solid; border-bottom-width: 1">
    <font FACE="Times New Roman" SIZE="2">
    <p style="margin-right: 4">116</font></td>
    <td WIDTH="3%" align="right" valign="bottom">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" valign="bottom" style="border-bottom-style: solid; border-bottom-width: 1">
    <font FACE="Times New Roman" SIZE="2">(119)</font></td>
  </tr>
  <tr>
    <td WIDTH="40%" bgcolor="#E6E6E6">
    <p style="text-indent: -26; margin-left: 26">&nbsp;</td>
    <td WIDTH="3%" align="right" valign="bottom" bgcolor="#E6E6E6">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" valign="bottom" style="border-top-style: solid; border-top-width: 1" bgcolor="#E6E6E6">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="3%" align="right" valign="bottom" bgcolor="#E6E6E6">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" valign="bottom" style="border-top-style: solid; border-top-width: 1" bgcolor="#E6E6E6">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="3%" align="right" valign="bottom" bgcolor="#E6E6E6">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" valign="bottom" style="border-top-style: solid; border-top-width: 1" bgcolor="#E6E6E6">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="3%" align="right" valign="bottom" bgcolor="#E6E6E6">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" valign="bottom" style="border-top-style: solid; border-top-width: 1" bgcolor="#E6E6E6">
    <p style="margin-right: 4">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="40%"><font FACE="Times New Roman" SIZE="2">
    <p style="text-indent: -26; margin-left: 26">Net (decrease) increase in cash
    and cash equivalents during the period</font></td>
    <td WIDTH="3%" align="right" valign="bottom">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" valign="bottom">
    <font FACE="Times New Roman" SIZE="2">(27,944)</font></td>
    <td WIDTH="3%" align="right" valign="bottom">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" valign="bottom">
    <font FACE="Times New Roman" SIZE="2">
    <p style="margin-right: 4">15,754</font></td>
    <td WIDTH="3%" align="right" valign="bottom">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" valign="bottom">
    <font FACE="Times New Roman" SIZE="2">(21,470)</font></td>
    <td WIDTH="3%" align="right" valign="bottom">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" valign="bottom">
    <font FACE="Times New Roman" SIZE="2">(5,919)</font></td>
  </tr>
  <tr>
    <td WIDTH="40%" bgcolor="#E6E6E6">
    <p style="text-indent: -26; margin-left: 26">&nbsp;</td>
    <td WIDTH="3%" align="right" valign="bottom" bgcolor="#E6E6E6">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" valign="bottom" bgcolor="#E6E6E6">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="3%" align="right" valign="bottom" bgcolor="#E6E6E6">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" valign="bottom" bgcolor="#E6E6E6">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="3%" align="right" valign="bottom" bgcolor="#E6E6E6">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" valign="bottom" bgcolor="#E6E6E6">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="3%" align="right" valign="bottom" bgcolor="#E6E6E6">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" valign="bottom" bgcolor="#E6E6E6">
    <p style="margin-right: 4">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="40%"><font FACE="Times New Roman" SIZE="2">
    <p style="text-indent: -26; margin-left: 26">Cash and cash equivalents,
    beginning of period</font></td>
    <td WIDTH="3%" align="right" valign="bottom">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" valign="bottom" style="border-bottom-style: solid; border-bottom-width: 1">
    <font FACE="Times New Roman" SIZE="2">
    <p style="margin-right: 4">35,481</font></td>
    <td WIDTH="3%" align="right" valign="bottom">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" valign="bottom" style="border-bottom-style: solid; border-bottom-width: 1">
    <font FACE="Times New Roman" SIZE="2">
    <p style="margin-right: 4">48,129</font></td>
    <td WIDTH="3%" align="right" valign="bottom">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" valign="bottom" style="border-bottom-style: solid; border-bottom-width: 1">
    <font FACE="Times New Roman" SIZE="2">
    <p style="margin-right: 4">29,007</font></td>
    <td WIDTH="3%" align="right" valign="bottom">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" valign="bottom" style="border-bottom-style: solid; border-bottom-width: 1">
    <font FACE="Times New Roman" SIZE="2">
    <p style="margin-right: 4">69,802</font></td>
  </tr>
  <tr>
    <td WIDTH="40%" bgcolor="#E6E6E6">
    <p style="text-indent: -26; margin-left: 26">&nbsp;</td>
    <td WIDTH="3%" align="right" valign="bottom" bgcolor="#E6E6E6">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" valign="bottom" style="border-top-style: solid; border-top-width: 1" bgcolor="#E6E6E6">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="3%" align="right" valign="bottom" bgcolor="#E6E6E6">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" valign="bottom" style="border-top-style: solid; border-top-width: 1" bgcolor="#E6E6E6">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="3%" align="right" valign="bottom" bgcolor="#E6E6E6">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" valign="bottom" style="border-top-style: solid; border-top-width: 1" bgcolor="#E6E6E6">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="3%" align="right" valign="bottom" bgcolor="#E6E6E6">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" valign="bottom" style="border-top-style: solid; border-top-width: 1" bgcolor="#E6E6E6">
    <p style="margin-right: 4">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="40%"><font FACE="Times New Roman" SIZE="2">
    <p style="text-indent: -26; margin-left: 26">Cash and cash equivalents, end
    of period</font></td>
    <td WIDTH="3%" align="right" valign="bottom">
    <font FACE="Times New Roman" SIZE="2">
    <p style="margin-right: 4">$</font></td>
    <td WIDTH="12%" align="right" valign="bottom" style="border-bottom-style: solid; border-bottom-width: 2">
    <font FACE="Times New Roman" SIZE="2">
    <p style="margin-right: 4">7,537</font></td>
    <td WIDTH="3%" align="right" valign="bottom">
    <font FACE="Times New Roman" SIZE="2">
    <p style="margin-right: 4">$</font></td>
    <td WIDTH="12%" align="right" valign="bottom" style="border-bottom-style: solid; border-bottom-width: 2">
    <font FACE="Times New Roman" SIZE="2">
    <p style="margin-right: 4">63,883</font></td>
    <td WIDTH="3%" align="right" valign="bottom">
    <font FACE="Times New Roman" SIZE="2">
    <p style="margin-right: 4">$</font></td>
    <td WIDTH="12%" align="right" valign="bottom" style="border-bottom-style: solid; border-bottom-width: 2">
    <font FACE="Times New Roman" SIZE="2">
    <p style="margin-right: 4">7,537</font></td>
    <td WIDTH="3%" align="right" valign="bottom">
    <font FACE="Times New Roman" SIZE="2">
    <p style="margin-right: 4">$</font></td>
    <td WIDTH="12%" align="right" valign="bottom" style="border-bottom-style: solid; border-bottom-width: 2">
    <font FACE="Times New Roman" SIZE="2">
    <p style="margin-right: 4">63,883</font></td>
  </tr>
  <tr>
    <td WIDTH="40%">
    <p style="text-indent: -26; margin-left: 26">&nbsp;</td>
    <td WIDTH="3%" align="right" valign="bottom">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" valign="bottom">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="3%" align="right" valign="bottom">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" valign="bottom">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="3%" align="right" valign="bottom">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" valign="bottom">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="3%" align="right" valign="bottom">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" valign="bottom">
    <p style="margin-right: 4">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="100%" COLSPAN="9"><font FACE="Times New Roman" SIZE="2">
    Supplemental disclosure of cash flow information (note 12 (b))</font></td>
  </tr>
  <tr>
    <td WIDTH="99%" COLSPAN="9"><font FACE="Times New Roman" SIZE="2">See
    accompanying notes to interim consolidated financial statements.</font></td>
  </tr>
</table>
<font FACE="Times New Roman PS" SIZE="2"><i>
<p align="right">GILDAN QUARTERLY REPORT - Q3 2007 p.21</p>
<hr color="#000000" size="5"><p Style='page-break-before:always'></i></font>
<p><img border="0" src="gildan1wxtbh.jpg" width="110" height="41"></p>
<font FACE="Times New Roman" SIZE="2"><i>
<p align="right">NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS </p>
</i><b>
<p align="justify"><u>NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS <br>
</u>(For the period ended July 1, 2007) <br>
(Tabular amounts in thousands or thousands of U.S. dollars, except per share
data or unless otherwise noted) <br>
(unaudited) </p>
<p align="justify">1.&nbsp;&nbsp;&nbsp;&nbsp; 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 align="justify">The Company's revenues and income are subject to seasonal
variations. Consequently, the results of operations for the third fiscal quarter
are traditionally not indicative of the results to be expected for the full
fiscal year. </p>
<p align="justify">Certain comparative figures have been reclassified in order
to conform with the current period's presentation. </p>
<p align="justify">All amounts in the attached notes are unaudited unless
specifically identified. </p>
<b>
<p align="justify">2.&nbsp;&nbsp;&nbsp;&nbsp; Significant accounting policies:
</p>
</b>
<p ALIGN="JUSTIFY">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 1, 2006, except as described in note 3 below.
</p>
<b>
<p align="justify">3.&nbsp;&nbsp;&nbsp;&nbsp; Change in accounting policy: </p>
</b>
<p ALIGN="JUSTIFY">Effective with the commencement of its 2007 fiscal year, the
Company has adopted the Canadian Institute of Chartered Accountants (&quot;CICA&quot;)
Handbook Section 1530, Comprehensive Income, CICA Handbook Section 3251, Equity,
CICA Handbook Section 3855, Financial Instruments&#151;Recognition and Measurement,
CICA Handbook Section 3861, Financial Instruments &#150; Disclosure and Presentation,
and CICA Handbook Section 3865, Hedges. These new Handbook Sections, which apply
to fiscal years beginning on or after October 1, 2006, provide comprehensive
requirements for the recognition and measurement of financial instruments, as
well as standards on when and how hedge accounting may be applied. Handbook
Section 1530 also establishes standards for reporting and displaying
comprehensive income. Comprehensive income is defined as the change in equity
from transactions and other events from non-owner sources. Other comprehensive
income refers to items recognized in comprehensive income but that are excluded
from net income calculated in accordance with generally accepted accounting
principles. </p>
<p align="justify">Under these new standards, all financial instruments are
classified into one of the following five categories: held for trading,
held&#150;to-maturity investments, loans and receivables, available-for-sale
financial assets or other financial liabilities. All financial instruments,
including derivatives, are included on the consolidated balance sheet and are
measured either at fair market value with the exception of loans and
receivables, investments held-to-maturity and other financial liabilities, which
will be measured at amortized cost. Subsequent measurement and recognition of
changes in fair value of financial instruments depend on their initial
classification. Held for trading financial investments are measured at fair
value and all gains and losses are included in net income in the period in which
they arise. Available-for-sale financial instruments are measured at fair value
with revaluation gains and losses included in other comprehensive income until
the asset is removed from the balance sheet. </p>
<p ALIGN="JUSTIFY">The standards require derivative instruments to be recorded
as either assets or liabilities measured at their fair value unless exempted
from derivative treatment as a normal purchase and sale. Certain derivatives
embedded in other contracts must also be measured at fair value. All changes in
the fair value of derivatives are recognized in earnings unless specific hedge
criteria are met, which requires that a company must formally document,
designate and assess the effectiveness of transactions that receive hedge
accounting. Derivatives that qualify as hedging instruments must be designated
as either a &quot;cash flow hedge,'' when the hedged item is a future cash flow, or
a &quot;fair value hedge,'' when the hedged item is a recognized asset or liability.
The unrealized gains and losses related to a cash flow hedge are included in
other comprehensive income. For a fair value hedge, both the derivative and the
hedged item are recorded at fair value in the consolidated balance sheet and the
unrealized gains and losses from both items are included in earnings. Any
derivative instrument that does not qualify for hedge accounting is
marked-to-market at each reporting date and the gains or losses are included in
earnings. </p>
</font><font FACE="Times New Roman PS" SIZE="2"><i>
<p align="right">GILDAN QUARTERLY REPORT - Q3 2007 p.22</p>
<hr color="#000000" size="5"><p Style='page-break-before:always'></i></font>
<p><img border="0" src="gildan1wxtbh.jpg" width="110" height="41"></p>
<font FACE="Times New Roman" SIZE="2"><i>
<p align="right">NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS </p>
</i><b>
<p>3.&nbsp;&nbsp;&nbsp;&nbsp; Change in accounting policy (Continued): </p>
</b>
<p ALIGN="JUSTIFY">As a result of the adoption of these standards, the Company
has classified its cash equivalents as available for sale. The Company has also
classified its accounts receivable as loans and receivables, and its accounts
payable and long-term debt as other financial liabilities, all of which are
measured at amortized cost. The adoption of these new standards also resulted in
the reclassification of an amount of $26.3 million previously recorded in
&quot;Cumulative translation adjustment&quot; to &quot;Accumulated other comprehensive income&quot;
on the consolidated balance sheets. As at October 1, 2006 and July 1, 2007, all
outstanding forward foreign exchange contracts were reported on a mark-to-market
basis and the gains or losses were included in earnings, because the Company
elected not to follow hedge accounting for these derivatives. The adoption of
these standards had no impact on the consolidated statement of earnings. </p>
<b>
<p>4.</b> </font><b><font FACE="Times New Roman" SIZE="2">&nbsp;&nbsp;&nbsp;
Bank indebtedness: </p>
</font></b><font FACE="Times New Roman" SIZE="2">
<p ALIGN="JUSTIFY">The Company's joint venture, CanAm, has a revolving line of
credit in the amount of $4.0 million. As at July 1, 2007 and October 1, 2006,
the joint venture had utilized $3.5 million of its line of credit. As at July 2,
2006, the joint venture had utilized $4.0 million. The borrowings are due on
demand and bear interest at 30-day LIBOR plus 2.25%. The line of credit is
secured by a first ranking security interest on the assets of the joint venture.
</p>
<b>
<p>5.</b> </font><b><font FACE="Times New Roman" SIZE="2">Long-term debt: </p>
</font></b>
<table CELLSPACING="0" BORDER="0" WIDTH="100%" cellpadding="0" style="border-collapse: collapse" bordercolor="#111111">
  <tr>
    <td WIDTH="55%">&nbsp;</td>
    <td WIDTH="23%" COLSPAN="2" align="right"><font SIZE="2">
    <p style="margin-right: 4"><u>July 1, 2007</u></font></td>
    <td WIDTH="14%" COLSPAN="2" align="right"><font SIZE="2">
    <p style="margin-right: 4"><u>October 1, 2006</u></font></td>
    <td WIDTH="25%" COLSPAN="2" align="right"><font SIZE="2">
    <p style="margin-right: 4"><u>July 2, 2006</u></font></td>
  </tr>
  <tr>
    <td WIDTH="55%" style="border-bottom-style: solid; border-bottom-width: 2">&nbsp;</td>
    <td WIDTH="3%" align="right" style="border-bottom-style: solid; border-bottom-width: 2">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" style="border-bottom-style: solid; border-bottom-width: 2">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="3%" align="right" style="border-bottom-style: solid; border-bottom-width: 2">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" style="border-bottom-style: solid; border-bottom-width: 2">
    <font SIZE="2">(audited)</font></td>
    <td WIDTH="3%" align="right" style="border-bottom-style: solid; border-bottom-width: 2">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" style="border-bottom-style: solid; border-bottom-width: 2">
    <p style="margin-right: 4">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="55%" bgcolor="#E6E6E6"><font SIZE="2">Senior notes (a)</font></td>
    <td WIDTH="3%" align="right" bgcolor="#E6E6E6"><font SIZE="2">
    <p style="margin-right: 4">$</font></td>
    <td WIDTH="12%" align="right" bgcolor="#E6E6E6"><font SIZE="2">
    <p style="margin-right: 4">-</font></td>
    <td WIDTH="3%" align="right" bgcolor="#E6E6E6"><font SIZE="2">
    <p style="margin-right: 4">$</font></td>
    <td WIDTH="12%" align="right" bgcolor="#E6E6E6"><font SIZE="2">
    <p style="margin-right: 4">17,500</font></td>
    <td WIDTH="3%" align="right" bgcolor="#E6E6E6"><font SIZE="2">
    <p style="margin-right: 4">$</font></td>
    <td WIDTH="12%" align="right" bgcolor="#E6E6E6"><font SIZE="2">
    <p style="margin-right: 4">17,500</font></td>
  </tr>
  <tr>
    <td WIDTH="55%"><font SIZE="2">Revolving term credit facility (b)</font></td>
    <td WIDTH="3%" align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right"><font SIZE="2">
    <p style="margin-right: 4">30,000</font></td>
    <td WIDTH="3%" align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right"><font SIZE="2">
    <p style="margin-right: 4">-</font></td>
    <td WIDTH="3%" align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right"><font SIZE="2">
    <p style="margin-right: 4">-</font></td>
  </tr>
  <tr>
    <td WIDTH="55%" style="border-bottom-style: solid; border-bottom-width: 1" bgcolor="#E6E6E6">
    <font SIZE="2">Other</font></td>
    <td WIDTH="3%" align="right" style="border-bottom-style: solid; border-bottom-width: 1" bgcolor="#E6E6E6">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" style="border-bottom-style: solid; border-bottom-width: 1" bgcolor="#E6E6E6">
    <font SIZE="2">
    <p style="margin-right: 4">12,913</font></td>
    <td WIDTH="3%" align="right" style="border-bottom-style: solid; border-bottom-width: 1" bgcolor="#E6E6E6">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" style="border-bottom-style: solid; border-bottom-width: 1" bgcolor="#E6E6E6">
    <font SIZE="2">
    <p style="margin-right: 4">16,361</font></td>
    <td WIDTH="3%" align="right" style="border-bottom-style: solid; border-bottom-width: 1" bgcolor="#E6E6E6">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" style="border-bottom-style: solid; border-bottom-width: 1" bgcolor="#E6E6E6">
    <font SIZE="2">
    <p style="margin-right: 4">11,059</font></td>
  </tr>
  <tr>
    <td WIDTH="55%" style="border-top-style: solid; border-top-width: 1">&nbsp;</td>
    <td WIDTH="3%" align="right" style="border-top-style: solid; border-top-width: 1">
    <font SIZE="2">
    <p style="margin-right: 4">$</font></td>
    <td WIDTH="12%" align="right" style="border-top-style: solid; border-top-width: 1">
    <font SIZE="2">
    <p style="margin-right: 4">42,913</font></td>
    <td WIDTH="3%" align="right" style="border-top-style: solid; border-top-width: 1">
    <font SIZE="2">
    <p style="margin-right: 4">$</font></td>
    <td WIDTH="12%" align="right" style="border-top-style: solid; border-top-width: 1">
    <font SIZE="2">
    <p style="margin-right: 4">33,861</font></td>
    <td WIDTH="3%" align="right" style="border-top-style: solid; border-top-width: 1">
    <font SIZE="2">
    <p style="margin-right: 4">$</font></td>
    <td WIDTH="12%" align="right" style="border-top-style: solid; border-top-width: 1">
    <font SIZE="2">
    <p style="margin-right: 4">28,559</font></td>
  </tr>
  <tr>
    <td WIDTH="55%" style="border-bottom-style: solid; border-bottom-width: 1" bgcolor="#E6E6E6">
    <font SIZE="2">Current portion of long term-debt</font></td>
    <td WIDTH="3%" align="right" style="border-bottom-style: solid; border-bottom-width: 1" bgcolor="#E6E6E6">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" style="border-bottom-style: solid; border-bottom-width: 1" bgcolor="#E6E6E6">
    <font SIZE="2">
    <p style="margin-right: 4">3,934</font></td>
    <td WIDTH="3%" align="right" style="border-bottom-style: solid; border-bottom-width: 1" bgcolor="#E6E6E6">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" style="border-bottom-style: solid; border-bottom-width: 1" bgcolor="#E6E6E6">
    <font SIZE="2">
    <p style="margin-right: 4">21,820</font></td>
    <td WIDTH="3%" align="right" style="border-bottom-style: solid; border-bottom-width: 1" bgcolor="#E6E6E6">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" style="border-bottom-style: solid; border-bottom-width: 1" bgcolor="#E6E6E6">
    <font SIZE="2">
    <p style="margin-right: 4">19,582</font></td>
  </tr>
  <tr>
    <td WIDTH="55%" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 2">
    <font SIZE="2">Total long-term debt</font></td>
    <td WIDTH="3%" align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 2">
    <font SIZE="2">
    <p style="margin-right: 4">$</font></td>
    <td WIDTH="12%" align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 2">
    <font SIZE="2">
    <p style="margin-right: 4">38,979</font></td>
    <td WIDTH="3%" align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 2">
    <font SIZE="2">
    <p style="margin-right: 4">$</font></td>
    <td WIDTH="12%" align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 2">
    <font SIZE="2">
    <p style="margin-right: 4">12,041</font></td>
    <td WIDTH="3%" align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 2">
    <font SIZE="2">
    <p style="margin-right: 4">$</font></td>
    <td WIDTH="12%" align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 2">
    <font SIZE="2">
    <p style="margin-right: 4">8,977</font></td>
  </tr>
</table>
<font FACE="Times New Roman" SIZE="2">
<p align="justify" style="text-indent: -30; margin-left: 30">(a)&nbsp;&nbsp;&nbsp;&nbsp;
The notes bore interest at 9.51% on $13.8 million and 9.88% on $3.7 million, and
were secured by tangible and intangible property of the Company. The notes were
repaid in May 2007. </p>
<p ALIGN="JUSTIFY" style="text-indent: -30; margin-left: 30">(b)&nbsp;&nbsp;&nbsp;&nbsp;
The Company has a committed revolving term credit facility for a maximum of $300
million, which matures in June 2012. As at July 1, 2007, $30.0 million was drawn
on this facility. There were no amounts drawn under this facility at October 1,
2006 or July 2, 2006. </p>
<b>
<p>6.&nbsp;&nbsp;&nbsp;&nbsp; Share capital and contributed surplus: </p>
</b></font>
<table CELLSPACING="0" BORDER="0" WIDTH="100%" cellpadding="0" style="border-collapse: collapse" bordercolor="#111111">
  <tr>
    <td WIDTH="37%">
    <p style="text-indent: -26; margin-left: 26">&nbsp;</td>
    <td WIDTH="15%" COLSPAN="3" align="center">
    <font FACE="Times New Roman" SIZE="2"><u>July 1, 2007</u></font></td>
    <td WIDTH="15%" COLSPAN="3" align="center">
    <font FACE="Times New Roman" SIZE="2"><u>October 1, 2006</u></font></td>
    <td WIDTH="28%" COLSPAN="3" align="center">
    <font FACE="Times New Roman" SIZE="2"><u>July 2, 2006</u></font></td>
  </tr>
  <tr>
    <td WIDTH="37%">
    <p style="text-indent: -26; margin-left: 26">&nbsp;</td>
    <td WIDTH="9%" align="right" valign="bottom">&nbsp;</td>
    <td WIDTH="3%" align="right" valign="bottom">&nbsp;</td>
    <td WIDTH="9%" align="right" valign="bottom">&nbsp;</td>
    <td WIDTH="15%" COLSPAN="3" align="right" valign="bottom">
    <font FACE="Times New Roman" SIZE="2">
    <p align="center">(audited)</font></td>
    <td WIDTH="9%" align="right" valign="bottom">&nbsp;</td>
    <td WIDTH="3%" align="right" valign="bottom">&nbsp;</td>
    <td WIDTH="9%" align="right" valign="bottom">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="37%" style="border-bottom-style: solid; border-bottom-width: 2">
    <p style="text-indent: -26; margin-left: 26">&nbsp;</td>
    <td WIDTH="9%" align="right" valign="bottom" style="border-bottom-style: solid; border-bottom-width: 2">
    <font FACE="Times New Roman" SIZE="2">Shares</font></td>
    <td WIDTH="8%" COLSPAN="2" align="right" valign="bottom" style="border-bottom-style: solid; border-bottom-width: 2">
    <font FACE="Times New Roman" SIZE="2">Book value</font></td>
    <td WIDTH="9%" align="right" valign="bottom" style="border-bottom-style: solid; border-bottom-width: 2">
    <font FACE="Times New Roman" SIZE="2">Shares</font></td>
    <td WIDTH="9%" COLSPAN="2" align="right" valign="bottom" style="border-bottom-style: solid; border-bottom-width: 2">
    <font FACE="Times New Roman" SIZE="2">Book value</font></td>
    <td WIDTH="9%" align="right" valign="bottom" style="border-bottom-style: solid; border-bottom-width: 2">
    <font FACE="Times New Roman" SIZE="2">Shares</font></td>
    <td WIDTH="22%" COLSPAN="2" align="right" valign="bottom" style="border-bottom-style: solid; border-bottom-width: 2">
    <font FACE="Times New Roman" SIZE="2">Book value</font></td>
  </tr>
  <tr>
    <td WIDTH="37%" bgcolor="#E6E6E6"><font FACE="Times New Roman" SIZE="2">
    <p style="text-indent: -26; margin-left: 26">Authorized without limit as to
    number and without par value:</font></td>
    <td WIDTH="9%" align="right" valign="bottom" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="3%" align="right" valign="bottom" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="9%" align="right" valign="bottom" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="9%" align="right" valign="bottom" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="3%" align="right" valign="bottom" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="9%" align="right" valign="bottom" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="9%" align="right" valign="bottom" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="3%" align="right" valign="bottom" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="9%" align="right" valign="bottom" bgcolor="#E6E6E6">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="37%"><font FACE="Times New Roman" SIZE="2">
    <p style="text-indent: -26; margin-left: 52">First preferred shares,
    issuable in series, non-voting</font></td>
    <td WIDTH="9%" align="right" valign="bottom">&nbsp;</td>
    <td WIDTH="3%" align="right" valign="bottom">&nbsp;</td>
    <td WIDTH="9%" align="right" valign="bottom">&nbsp;</td>
    <td WIDTH="9%" align="right" valign="bottom">&nbsp;</td>
    <td WIDTH="3%" align="right" valign="bottom">&nbsp;</td>
    <td WIDTH="9%" align="right" valign="bottom">&nbsp;</td>
    <td WIDTH="9%" align="right" valign="bottom">&nbsp;</td>
    <td WIDTH="3%" align="right" valign="bottom">&nbsp;</td>
    <td WIDTH="9%" align="right" valign="bottom">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="37%" bgcolor="#E6E6E6"><font FACE="Times New Roman" SIZE="2">
    <p style="text-indent: -26; margin-left: 52">Second preferred shares,
    issuable in series, non-voting</font></td>
    <td WIDTH="9%" align="right" valign="bottom" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="3%" align="right" valign="bottom" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="9%" align="right" valign="bottom" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="9%" align="right" valign="bottom" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="3%" align="right" valign="bottom" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="9%" align="right" valign="bottom" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="9%" align="right" valign="bottom" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="3%" align="right" valign="bottom" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="9%" align="right" valign="bottom" bgcolor="#E6E6E6">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="37%" style="border-bottom-style: solid; border-bottom-width: 1">
    <font FACE="Times New Roman" SIZE="2">
    <p style="text-indent: -26; margin-left: 52">Common shares</font></td>
    <td WIDTH="9%" align="right" valign="bottom" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="3%" align="right" valign="bottom" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="9%" align="right" valign="bottom" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="9%" align="right" valign="bottom" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="3%" align="right" valign="bottom" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="9%" align="right" valign="bottom" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="9%" align="right" valign="bottom" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="3%" align="right" valign="bottom" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="9%" align="right" valign="bottom" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="37%" style="border-top-style: solid; border-top-width: 1" bgcolor="#E6E6E6">
    <font FACE="Times New Roman" SIZE="2">
    <p style="text-indent: -26; margin-left: 26">Issued and outstanding:</font></td>
    <td WIDTH="9%" align="right" valign="bottom" style="border-top-style: solid; border-top-width: 1" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="3%" align="right" valign="bottom" style="border-top-style: solid; border-top-width: 1" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="9%" align="right" valign="bottom" style="border-top-style: solid; border-top-width: 1" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="9%" align="right" valign="bottom" style="border-top-style: solid; border-top-width: 1" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="3%" align="right" valign="bottom" style="border-top-style: solid; border-top-width: 1" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="9%" align="right" valign="bottom" style="border-top-style: solid; border-top-width: 1" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="9%" align="right" valign="bottom" style="border-top-style: solid; border-top-width: 1" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="3%" align="right" valign="bottom" style="border-top-style: solid; border-top-width: 1" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="9%" align="right" valign="bottom" style="border-top-style: solid; border-top-width: 1" bgcolor="#E6E6E6">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="37%"><font FACE="Times New Roman" SIZE="2">
    <p style="text-indent: -26; margin-left: 52">Common shares:</font></td>
    <td WIDTH="9%" align="right" valign="bottom">&nbsp;</td>
    <td WIDTH="3%" align="right" valign="bottom">&nbsp;</td>
    <td WIDTH="9%" align="right" valign="bottom">&nbsp;</td>
    <td WIDTH="9%" align="right" valign="bottom">&nbsp;</td>
    <td WIDTH="3%" align="right" valign="bottom">&nbsp;</td>
    <td WIDTH="9%" align="right" valign="bottom">&nbsp;</td>
    <td WIDTH="9%" align="right" valign="bottom">&nbsp;</td>
    <td WIDTH="3%" align="right" valign="bottom">&nbsp;</td>
    <td WIDTH="9%" align="right" valign="bottom">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="37%" bgcolor="#E6E6E6"><font FACE="Times New Roman" SIZE="2">
    <p style="text-indent: -26; margin-left: 78">Total outstanding, beginning of
    year</font></td>
    <td WIDTH="9%" align="right" valign="bottom" bgcolor="#E6E6E6">
    <font FACE="Times New Roman" SIZE="2">120,228</font></td>
    <td WIDTH="3%" align="right" valign="bottom" bgcolor="#E6E6E6">
    <font FACE="Times New Roman" SIZE="2">$</font></td>
    <td WIDTH="9%" align="right" valign="bottom" bgcolor="#E6E6E6">
    <font FACE="Times New Roman" SIZE="2">86,584</font></td>
    <td WIDTH="9%" align="right" valign="bottom" bgcolor="#E6E6E6">
    <font FACE="Times New Roman" SIZE="2">119,910</font></td>
    <td WIDTH="3%" align="right" valign="bottom" bgcolor="#E6E6E6">
    <font FACE="Times New Roman" SIZE="2">$</font></td>
    <td WIDTH="9%" align="right" valign="bottom" bgcolor="#E6E6E6">
    <font FACE="Times New Roman" SIZE="2">84,177</font></td>
    <td WIDTH="9%" align="right" valign="bottom" bgcolor="#E6E6E6">
    <font FACE="Times New Roman" SIZE="2">119,910</font></td>
    <td WIDTH="3%" align="right" valign="bottom" bgcolor="#E6E6E6">
    <font FACE="Times New Roman" SIZE="2">$</font></td>
    <td WIDTH="9%" align="right" valign="bottom" bgcolor="#E6E6E6">
    <font FACE="Times New Roman" SIZE="2">84,177</font></td>
  </tr>
  <tr>
    <td WIDTH="37%"><font FACE="Times New Roman" SIZE="2">
    <p style="text-indent: -26; margin-left: 78">Shares issued pursuant to
    business acquisition</font></td>
    <td WIDTH="9%" align="right" valign="bottom">
    <font FACE="Times New Roman" SIZE="2">-</font></td>
    <td WIDTH="3%" align="right" valign="bottom">&nbsp;</td>
    <td WIDTH="9%" align="right" valign="bottom">
    <font FACE="Times New Roman" SIZE="2">-</font></td>
    <td WIDTH="9%" align="right" valign="bottom">
    <font FACE="Times New Roman" SIZE="2">20</font></td>
    <td WIDTH="3%" align="right" valign="bottom">&nbsp;</td>
    <td WIDTH="9%" align="right" valign="bottom">
    <font FACE="Times New Roman" SIZE="2">460</font></td>
    <td WIDTH="9%" align="right" valign="bottom">
    <font FACE="Times New Roman" SIZE="2">-</font></td>
    <td WIDTH="3%" align="right" valign="bottom">&nbsp;</td>
    <td WIDTH="9%" align="right" valign="bottom">
    <font FACE="Times New Roman" SIZE="2">-</font></td>
  </tr>
  <tr>
    <td WIDTH="37%" bgcolor="#E6E6E6"><font FACE="Times New Roman" SIZE="2">
    <p style="text-indent: -26; margin-left: 78">Shares issued under employee
    share purchase plan</font></td>
    <td WIDTH="9%" align="right" valign="bottom" bgcolor="#E6E6E6">
    <font FACE="Times New Roman" SIZE="2">13</font></td>
    <td WIDTH="3%" align="right" valign="bottom" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="9%" align="right" valign="bottom" bgcolor="#E6E6E6">
    <font FACE="Times New Roman" SIZE="2">378</font></td>
    <td WIDTH="9%" align="right" valign="bottom" bgcolor="#E6E6E6">
    <font FACE="Times New Roman" SIZE="2">16</font></td>
    <td WIDTH="3%" align="right" valign="bottom" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="9%" align="right" valign="bottom" bgcolor="#E6E6E6">
    <font FACE="Times New Roman" SIZE="2">360</font></td>
    <td WIDTH="9%" align="right" valign="bottom" bgcolor="#E6E6E6">
    <font FACE="Times New Roman" SIZE="2">12</font></td>
    <td WIDTH="3%" align="right" valign="bottom" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="9%" align="right" valign="bottom" bgcolor="#E6E6E6">
    <font FACE="Times New Roman" SIZE="2">225</font></td>
  </tr>
  <tr>
    <td WIDTH="37%"><font FACE="Times New Roman" SIZE="2">
    <p style="text-indent: -26; margin-left: 78">Shares issued pursuant to
    exercise of stock options</font></td>
    <td WIDTH="9%" align="right" valign="bottom">
    <font FACE="Times New Roman" SIZE="2">117</font></td>
    <td WIDTH="3%" align="right" valign="bottom">&nbsp;</td>
    <td WIDTH="9%" align="right" valign="bottom">
    <font FACE="Times New Roman" SIZE="2">571</font></td>
    <td WIDTH="9%" align="right" valign="bottom">
    <font FACE="Times New Roman" SIZE="2">282</font></td>
    <td WIDTH="3%" align="right" valign="bottom">&nbsp;</td>
    <td WIDTH="9%" align="right" valign="bottom">
    <font FACE="Times New Roman" SIZE="2">1,587</font></td>
    <td WIDTH="9%" align="right" valign="bottom">
    <font FACE="Times New Roman" SIZE="2">242</font></td>
    <td WIDTH="3%" align="right" valign="bottom">&nbsp;</td>
    <td WIDTH="9%" align="right" valign="bottom">
    <font FACE="Times New Roman" SIZE="2">1,389</font></td>
  </tr>
  <tr>
    <td WIDTH="37%" style="border-bottom-style: solid; border-bottom-width: 1" bgcolor="#E6E6E6">
    <font FACE="Times New Roman" SIZE="2">
    <p style="text-indent: -26; margin-left: 78">Shares issued pursuant of
    Treasury RSUs</font></td>
    <td WIDTH="9%" align="right" valign="bottom" style="border-bottom-style: solid; border-bottom-width: 1" bgcolor="#E6E6E6">
    <font FACE="Times New Roman" SIZE="2">18</font></td>
    <td WIDTH="3%" align="right" valign="bottom" style="border-bottom-style: solid; border-bottom-width: 1" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="9%" align="right" valign="bottom" style="border-bottom-style: solid; border-bottom-width: 1" bgcolor="#E6E6E6">
    <font FACE="Times New Roman" SIZE="2">153</font></td>
    <td WIDTH="9%" align="right" valign="bottom" style="border-bottom-style: solid; border-bottom-width: 1" bgcolor="#E6E6E6">
    <font FACE="Times New Roman" SIZE="2">-</font></td>
    <td WIDTH="3%" align="right" valign="bottom" style="border-bottom-style: solid; border-bottom-width: 1" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="9%" align="right" valign="bottom" style="border-bottom-style: solid; border-bottom-width: 1" bgcolor="#E6E6E6">
    <font FACE="Times New Roman" SIZE="2">-</font></td>
    <td WIDTH="9%" align="right" valign="bottom" style="border-bottom-style: solid; border-bottom-width: 1" bgcolor="#E6E6E6">
    <font FACE="Times New Roman" SIZE="2">-</font></td>
    <td WIDTH="3%" align="right" valign="bottom" style="border-bottom-style: solid; border-bottom-width: 1" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="9%" align="right" valign="bottom" style="border-bottom-style: solid; border-bottom-width: 1" bgcolor="#E6E6E6">
    <font FACE="Times New Roman" SIZE="2">-</font></td>
  </tr>
  <tr>
    <td WIDTH="37%" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 2">
    <font FACE="Times New Roman" SIZE="2">
    <p style="text-indent: -26; margin-left: 78">Total outstanding, end of
    period</font></td>
    <td WIDTH="9%" align="right" valign="bottom" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 2">
    <font FACE="Times New Roman" SIZE="2">120,376</font></td>
    <td WIDTH="3%" align="right" valign="bottom" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 2">
    <font FACE="Times New Roman" SIZE="2">$</font></td>
    <td WIDTH="9%" align="right" valign="bottom" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 2">
    <font FACE="Times New Roman" SIZE="2">87,686</font></td>
    <td WIDTH="9%" align="right" valign="bottom" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 2">
    <font FACE="Times New Roman" SIZE="2">120,228</font></td>
    <td WIDTH="3%" align="right" valign="bottom" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 2">
    <font FACE="Times New Roman" SIZE="2">$</font></td>
    <td WIDTH="9%" align="right" valign="bottom" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 2">
    <font FACE="Times New Roman" SIZE="2">86,584</font></td>
    <td WIDTH="9%" align="right" valign="bottom" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 2">
    <font FACE="Times New Roman" SIZE="2">120,164</font></td>
    <td WIDTH="3%" align="right" valign="bottom" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 2">
    <font FACE="Times New Roman" SIZE="2">$</font></td>
    <td WIDTH="9%" align="right" valign="bottom" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 2">
    <font FACE="Times New Roman" SIZE="2">85,791</font></td>
  </tr>
</table>
<font SIZE="2">
<p ALIGN="JUSTIFY" style="text-indent: -30; margin-left: 30">(a)&nbsp;&nbsp;&nbsp;&nbsp;
On May 2, 2007, the Board of Directors of the Company declared a two-for-one
stock spilt, effected in the form of a stock dividend, applicable to all of its
issued and outstanding common shares, to shareholders of record on May 18, 2007.
The Company's shares commenced trading on a post-split basis on May 16, 2007, on
the Toronto Stock Exchange and on May 28, 2007, on the New York Stock Exchange,
in accordance with the respective requirements of these exchanges. All share and
per share data in these interim consolidated financial statements reflect the
effect of the stock split on a retroactive basis.<b> </p>
</b></font><font FACE="Times New Roman PS" SIZE="2"><i>
<p align="right">GILDAN QUARTERLY REPORT - Q3 2007 p.23</p>
<hr color="#000000" size="5"><p Style='page-break-before:always'></i></font>
<p><img border="0" src="gildan1wxtbh.jpg" width="110" height="41"></p>
<font FACE="Times New Roman" SIZE="2"><i>
<p align="right">NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS </p>
</i></font><font SIZE="2"><b>
<p>6.&nbsp;&nbsp;&nbsp;&nbsp; Share capital and contributed surplus (Continued):
</p>
</b></font>
<table CELLSPACING="0" BORDER="0" WIDTH="100%" cellpadding="0" style="border-collapse: collapse" bordercolor="#111111">
  <tr>
    <td WIDTH="85%" style="border-bottom-style: solid; border-bottom-width: 2">
    <font FACE="Arial MT" SIZE="2">(b) Changes in contributed surplus were as
    follows:</font></td>
    <td WIDTH="3%" align="right" style="border-bottom-style: solid; border-bottom-width: 2">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" style="border-bottom-style: solid; border-bottom-width: 2">
    <p style="margin-right: 4">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="85%" bgcolor="#E6E6E6"><font FACE="Arial MT" SIZE="2">Balance, October 1, 2006</font></td>
    <td WIDTH="3%" align="right" bgcolor="#E6E6E6"><font FACE="Arial MT" SIZE="2">
    <p style="margin-right: 4">$</font></td>
    <td WIDTH="12%" align="right" bgcolor="#E6E6E6"><font FACE="Arial MT" SIZE="2">
    <p style="margin-right: 4">2,365</font></td>
  </tr>
  <tr>
    <td WIDTH="85%"><font FACE="Arial MT" SIZE="2">Stock-based compensation
    related to stock options and Treasury RSUs</font></td>
    <td WIDTH="3%" align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right"><font FACE="Arial MT" SIZE="2">
    <p style="margin-right: 4">1,149</font></td>
  </tr>
  <tr>
    <td WIDTH="85%" style="border-bottom-style: solid; border-bottom-width: 1" bgcolor="#E6E6E6">
    <font FACE="Arial MT" SIZE="2">Ascribed value credited to share capital from
    issuance of Treasury RSUs</font></td>
    <td WIDTH="3%" align="right" style="border-bottom-style: solid; border-bottom-width: 1" bgcolor="#E6E6E6">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" style="border-bottom-style: solid; border-bottom-width: 1" bgcolor="#E6E6E6">
    <font FACE="Arial MT" SIZE="2">(153)</font></td>
  </tr>
  <tr>
    <td WIDTH="85%" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 2">
    <font FACE="Arial MT" SIZE="2">Balance, July 1, 2007</font></td>
    <td WIDTH="3%" align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 2">
    <font FACE="Arial MT" SIZE="2">
    <p style="margin-right: 4">$</font></td>
    <td WIDTH="12%" align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 2">
    <font FACE="Arial MT" SIZE="2">
    <p style="margin-right: 4">3,361</font></td>
  </tr>
</table>
<font FACE="Times New Roman" SIZE="2"><b>
<p align="justify">7.&nbsp;&nbsp;&nbsp;&nbsp; Stock-based compensation:</b> </p>
<p ALIGN="JUSTIFY">The Company's Long Term Incentive Plan (the &quot;LTIP&quot;) includes
stock options and restricted share units. The LTIP allows the Board of Directors
to grant stock options, dilutive restricted share units (&quot;Treasury RSUs&quot;) and
non-dilutive restricted share units (&quot;Non-Treasury RSUs&quot;) to officers and other
key employees of the Company and its subsidiaries. </p>
<p align="justify" style="margin-bottom: 0">Changes in outstanding stock options
were as follows: </p>
</font>
<table CELLSPACING="0" BORDER="0" WIDTH="100%" cellpadding="0" style="border-collapse: collapse" bordercolor="#111111">
  <tr>
    <td WIDTH="73%" style="border-top-style: solid; border-top-width: 2">&nbsp;</td>
    <td WIDTH="12%" align="right" style="border-top-style: solid; border-top-width: 2">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="29%" COLSPAN="2" align="right" style="border-top-style: solid; border-top-width: 2">
    <font SIZE="2">
    <p style="margin-right: 4">Weighted average</font></td>
  </tr>
  <tr>
    <td WIDTH="73%" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="12%" align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2">
    <p style="margin-right: 4">Number</font></td>
    <td WIDTH="29%" COLSPAN="2" align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2">
    <p style="margin-right: 4">exercise price</font></td>
  </tr>
  <tr>
    <td WIDTH="73%" style="border-top-style: solid; border-top-width: 1">&nbsp;</td>
    <td WIDTH="12%" align="right" style="border-top-style: solid; border-top-width: 1">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="29%" COLSPAN="2" align="right" style="border-top-style: solid; border-top-width: 1">
    <font SIZE="2">(in Canadian dollars)</font></td>
  </tr>
  <tr>
    <td WIDTH="73%" bgcolor="#E6E6E6"><font SIZE="2">Options outstanding, October 1, 2006</font></td>
    <td WIDTH="12%" align="right" bgcolor="#E6E6E6"><font SIZE="2">
    <p style="margin-right: 4">856</font></td>
    <td WIDTH="3%" align="right" bgcolor="#E6E6E6"><font SIZE="2">
    <p style="margin-right: 4">$</font></td>
    <td WIDTH="12%" align="right" bgcolor="#E6E6E6"><font SIZE="2">
    <p style="margin-right: 4">6.35</font></td>
  </tr>
  <tr>
    <td WIDTH="73%"><font SIZE="2">Granted</font></td>
    <td WIDTH="12%" align="right"><font SIZE="2">
    <p style="margin-right: 4">181</font></td>
    <td WIDTH="3%" align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right"><font SIZE="2">
    <p style="margin-right: 4">27.28</font></td>
  </tr>
  <tr>
    <td WIDTH="73%" bgcolor="#E6E6E6"><font SIZE="2">Exercised</font></td>
    <td WIDTH="12%" align="right" bgcolor="#E6E6E6"><font SIZE="2">(117)</font></td>
    <td WIDTH="3%" align="right" bgcolor="#E6E6E6">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" bgcolor="#E6E6E6"><font SIZE="2">
    <p style="margin-right: 4">5.63</font></td>
  </tr>
  <tr>
    <td WIDTH="73%" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2">Forfeited</font></td>
    <td WIDTH="12%" align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2">(27)</font></td>
    <td WIDTH="3%" align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2">
    <p style="margin-right: 4">27.27</font></td>
  </tr>
  <tr>
    <td WIDTH="73%" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 2" bgcolor="#E6E6E6">
    <font SIZE="2">Options outstanding, July 1, 2007</font></td>
    <td WIDTH="12%" align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 2" bgcolor="#E6E6E6">
    <font SIZE="2">
    <p style="margin-right: 4">893</font></td>
    <td WIDTH="3%" align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 2" bgcolor="#E6E6E6">
    <font SIZE="2">
    <p style="margin-right: 4">$</font></td>
    <td WIDTH="12%" align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 2" bgcolor="#E6E6E6">
    <font SIZE="2">
    <p style="margin-right: 4">10.05</font></td>
  </tr>
</table>
<font FACE="Arial MT" SIZE="2">
<p ALIGN="JUSTIFY">As at July 1, 2007, 738,556 of the outstanding options were
exercisable at the weighted average price of CA$6.46. Based on the Black-Scholes
option pricing model, the grant date weighted average fair value of the options
granted during the first nine months ended July 1, 2007 was CA$8.47. No options
were granted during fiscal 2006. </p>
<p style="margin-bottom: 0">Changes in outstanding Treasury RSUs were as
follows: </p>
</font>
<table CELLSPACING="0" BORDER="0" WIDTH="100%" cellpadding="0" style="border-collapse: collapse" bordercolor="#111111">
  <tr>
    <td WIDTH="73%" style="border-top-style: solid; border-top-width: 2">&nbsp;</td>
    <td WIDTH="12%" align="right" style="border-top-style: solid; border-top-width: 2">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="32%" COLSPAN="2" align="right" style="border-top-style: solid; border-top-width: 2">
    <font FACE="Arial MT" SIZE="2">
    <p style="margin-right: 4">Weighted average</font></td>
  </tr>
  <tr>
    <td WIDTH="73%" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="12%" align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <font FACE="Arial MT" SIZE="2">
    <p style="margin-right: 4">Number</font></td>
    <td WIDTH="32%" COLSPAN="2" align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <font FACE="Arial MT" SIZE="2">
    <p style="margin-right: 4">fair value per unit</font></td>
  </tr>
  <tr>
    <td WIDTH="73%" style="border-top-style: solid; border-top-width: 1; border-bottom-style: none; border-bottom-width: medium">&nbsp;</td>
    <td WIDTH="12%" align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: none; border-bottom-width: medium">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="32%" COLSPAN="2" align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: none; border-bottom-width: medium">
    <font FACE="Arial MT" SIZE="2">(in Canadian dollars)</font></td>
  </tr>
  <tr>
    <td WIDTH="73%" style="border-top-style: none; border-top-width: medium" bgcolor="#E6E6E6">
    <font FACE="Arial MT" SIZE="2">Treasury RSUs outstanding, October 1, 2006</font></td>
    <td WIDTH="12%" align="right" style="border-top-style: none; border-top-width: medium" bgcolor="#E6E6E6">
    <font FACE="Arial MT" SIZE="2">
    <p style="margin-right: 4">833</font></td>
    <td WIDTH="3%" align="right" style="border-top-style: none; border-top-width: medium" bgcolor="#E6E6E6">
    <font FACE="Arial MT" SIZE="2">
    <p style="margin-right: 4">$</font></td>
    <td WIDTH="12%" align="right" style="border-top-style: none; border-top-width: medium" bgcolor="#E6E6E6">
    <font FACE="Arial MT" SIZE="2">
    <p style="margin-right: 4">14.81</font></td>
  </tr>
  <tr>
    <td WIDTH="73%"><font FACE="Arial MT" SIZE="2">Granted</font></td>
    <td WIDTH="12%" align="right"><font FACE="Arial MT" SIZE="2">
    <p style="margin-right: 4">208</font></td>
    <td WIDTH="3%" align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right"><font FACE="Arial MT" SIZE="2">
    <p style="margin-right: 4">30.65</font></td>
  </tr>
  <tr>
    <td WIDTH="73%" bgcolor="#E6E6E6"><font FACE="Arial MT" SIZE="2">Issued</font></td>
    <td WIDTH="12%" align="right" bgcolor="#E6E6E6"><font FACE="Arial MT" SIZE="2">(18)</font></td>
    <td WIDTH="3%" align="right" bgcolor="#E6E6E6">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" bgcolor="#E6E6E6"><font FACE="Arial MT" SIZE="2">
    <p style="margin-right: 4">9.48</font></td>
  </tr>
  <tr>
    <td WIDTH="73%" style="border-bottom-style: solid; border-bottom-width: 1">
    <font FACE="Arial MT" SIZE="2">Forfeited</font></td>
    <td WIDTH="12%" align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <font FACE="Arial MT" SIZE="2">(60)</font></td>
    <td WIDTH="3%" align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <font FACE="Arial MT" SIZE="2">
    <p style="margin-right: 4">11.96</font></td>
  </tr>
  <tr>
    <td WIDTH="73%" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 2" bgcolor="#E6E6E6">
    <font FACE="Arial MT" SIZE="2">Treasury RSUs outstanding, July 1, 2007</font></td>
    <td WIDTH="12%" align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 2" bgcolor="#E6E6E6">
    <font FACE="Arial MT" SIZE="2">
    <p style="margin-right: 4">963</font></td>
    <td WIDTH="3%" align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 2" bgcolor="#E6E6E6">
    <font FACE="Arial MT" SIZE="2">
    <p style="margin-right: 4">$</font></td>
    <td WIDTH="12%" align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 2" bgcolor="#E6E6E6">
    <font FACE="Arial MT" SIZE="2">
    <p style="margin-right: 4">18.17</font></td>
  </tr>
</table>
<font FACE="Times New Roman" SIZE="2">
<p align="justify">As of July 1, 2007, none of the outstanding Treasury RSUs
were vested. </p>
<p ALIGN="JUSTIFY">The compensation expense recorded for the three-month periods
ended July 1, 2007 and July 2, 2006, respectively, was $0.4 million and $0.3
million, in respect of the Treasury RSUs and stock options. The compensation
expense recorded for the nine-month periods<b> </b>ended July 1, 2007 and July
2, 2006, respectively, was $1.2 million and $1.0 million, in respect of the
Treasury RSUs and stock options. The counterpart has been recorded as
contributed surplus. When the shares are issued to the employees, the amounts
previously credited to contributed surplus are reclassified to share capital.
</p>
<p align="justify" style="margin-bottom: 0">Changes in outstanding Non-Treasury
RSUs were as follows: </p>
</font>
<table CELLSPACING="0" BORDER="0" WIDTH="100%" cellpadding="0" style="border-collapse: collapse" bordercolor="#111111">
  <tr>
    <td WIDTH="66%" style="border-top-style: solid; border-top-width: 2; border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="12%" align="right" style="border-top-style: solid; border-top-width: 2; border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2">
    <p style="margin-right: 4">Number</font></td>
  </tr>
  <tr>
    <td WIDTH="66%" style="border-top-style: solid; border-top-width: 1">&nbsp;</td>
    <td WIDTH="12%" align="right" style="border-top-style: solid; border-top-width: 1">
    <p style="margin-right: 4">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="66%" bgcolor="#E6E6E6"><font SIZE="2">Non-Treasury RSUs outstanding, October 1,
    2006</font></td>
    <td WIDTH="12%" align="right" bgcolor="#E6E6E6"><font SIZE="2">
    <p style="margin-right: 4">-</font></td>
  </tr>
  <tr>
    <td WIDTH="66%"><font SIZE="2">Granted</font></td>
    <td WIDTH="12%" align="right"><font SIZE="2">
    <p style="margin-right: 4">70</font></td>
  </tr>
  <tr>
    <td WIDTH="66%" bgcolor="#E6E6E6"><font SIZE="2">Issued</font></td>
    <td WIDTH="12%" align="right" bgcolor="#E6E6E6"><font SIZE="2">(1)</font></td>
  </tr>
  <tr>
    <td WIDTH="66%" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2">Forfeited</font></td>
    <td WIDTH="12%" align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2">(10)</font></td>
  </tr>
  <tr>
    <td WIDTH="66%" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 2" bgcolor="#E6E6E6">
    <font SIZE="2">Non-Treasury RSUs outstanding, July 1, 2007</font></td>
    <td WIDTH="12%" align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 2" bgcolor="#E6E6E6">
    <font SIZE="2">
    <p style="margin-right: 4">59</font></td>
  </tr>
</table>
<font FACE="Times New Roman PS" SIZE="2"><i>
<p align="right">GILDAN QUARTERLY REPORT - Q3 2007 p.24</p>
<hr color="#000000" size="5"><p Style='page-break-before:always'></i></font>
<p><img border="0" src="gildan1wxtbh.jpg" width="110" height="41"></p>
<font FACE="Times New Roman" SIZE="2"><i>
<p align="right">NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS </p>
</i></font><font SIZE="2"><b>
<p align="justify">7.&nbsp;&nbsp;&nbsp;&nbsp; Stock-based compensation
(Continued) : </p>
</b>
<p ALIGN="JUSTIFY">Non-Treasury RSUs have the same features as Treasury RSUs
except that their vesting period is a maximum of three years and they will be
settled in cash at the end of the vesting period. The settlement amount is based
on the Company's stock price at the vesting date. As of July 1, 2007 the
weighted average fair value per Non-Treasury RSU was CA$36.37. No Common Shares
are issued from treasury under such awards and they are therefore non-dilutive.
As of July 1, 2007, none of the outstanding Non-Treasury RSUs were vested. </p>
<p align="justify">The compensation expense recorded in respect of the
Non-Treasury RSUs for the three-month period and nine-month period ended July 1,
2007 was $0.1 million and $0.4 million, respectively. No Non-Treasury RSUs were
issued in fiscal 2006. </p>
<p ALIGN="JUSTIFY">Effective the commencement of its 2004 fiscal year, the
Company follows the fair value-based method to account for all transactions
where services are received in exchange for stock-based compensation and other
stock-based payments. For stock options and Treasury RSUs, compensation cost is
measured at the fair value at the date of grant and is expensed over the award's
vesting period. For Non-Treasury RSUs, the compensation cost is ultimately
measured based on the market price of the Company's shares at the vesting date
and is recognized by amortizing the cost over the vesting period. The offsetting
liability is marked-to-market until the vesting date with any changes in the
market value of the Company's shares resulting in a change in the measure of
compensation cost for these awards until vested, which is recorded in the
periods in which these changes occur. </p>
<b>
<p align="justify">8.&nbsp;&nbsp;&nbsp;&nbsp; Settlement of contingent
liability: </p>
</b>
<p ALIGN="JUSTIFY">In November 2002, one of the Company's Mexican subsidiaries
(&quot;Gildan Mexico&quot;) received a tax assessment from a regional taxation office
relating to duties for the 2000 fiscal year for approximately $6.0 million. The
substance of the assessment was that the Mexican taxation authorities adopted
the position that Canadian-made textiles shipped to Gildan Mexico for sewing
processing had not subsequently been exported from Mexico. Gildan Mexico
appealed the assessment and was successful in obtaining a judgment in its favour.
Notwithstanding the judgment, the regional Mexican taxation office issued a new
assessment in March 2005, and increased the assessed amount to approximately
$7.1 million, primarily comprised of interest and late payment penalties.
Shortly after receiving the second assessment, Gildan Mexico again filed an
appeal. In July 2006, Gildan Mexico received notification that its appeal of the
second assessment for fiscal 2000 was unsuccessful. The Company received legal
opinions that the tax assessment was without merit under Mexican law governing
re-export from maquiladora operations. Additionally, Gildan Mexico, a
maquiladora operation, provided documentation to establish that the textiles
imported into Mexico for sewing were subsequently exported to the United States
and Canada. </p>
<p ALIGN="JUSTIFY">In April 2007, a new law, which was passed by the Mexican
Congress in December 2006, was formally enacted. The provisions of this law
allowed Gildan Mexico to apply for the forgiveness of all of the interest and
penalties and a substantial amount of the principal related to this tax
assessment. In May 2007, Gildan Mexico filed an application requesting that the
provisions of the new law be applied to its outstanding tax assessment. The
Mexican taxation authorities accepted the application in May 2007 and Gildan
Mexico settled the assessment with a payment of $0.4 million during the third
quarter of fiscal 2007. The Company had previously recorded a charge for this
amount, which was reflected in selling, general and administrative expenses in
the second quarter of fiscal 2007. Gildan Mexico has been released from all
previously tax assessed amounts by the Mexican taxation authorities. </p>
<b>
<p align="justify">9.&nbsp;&nbsp;&nbsp;&nbsp; Guarantees: </p>
</b>
<p align="justify">As at July 1, 2007, significant guarantees that have been
provided to third parties are the following: </p>
<p align="justify">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 July 1, 2007, the
maximum potential liability under these guarantees was $34.2 million, of which
$5.4 million was for surety bonds and $28.8 million was for corporate guarantees
and standby letters of credit. The standby letters of credit mature at various
dates during 2007, the surety bonds are automatically renewed on an annual basis
and the corporate guarantees mature at various dates up to fiscal 2012. </p>
<p align="justify">As at July 1, 2007, the Company has recorded no performance
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 requiring performance under the
guarantees in the event that specified triggering events or conditions occur
approximates the cost of obtaining the standby letters of credit and surety
bonds. </p>
</font><font FACE="Times New Roman PS" SIZE="2"><i>
<p align="right">GILDAN QUARTERLY REPORT - Q3 2007 p.25</p>
<hr color="#000000" size="5"><p Style='page-break-before:always'></i></font>
<p><img border="0" src="gildan1wxtbh.jpg" width="110" height="41"></p>
<font FACE="Times New Roman" SIZE="2"><i>
<p align="right">NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS </p>
</i></font><font SIZE="2"><b>
<p align="justify">10.&nbsp;&nbsp;&nbsp;&nbsp; Restructuring and other charges:
</p>
</b>
<p align="justify">The following table summarizes the components of
restructuring and other charges: </p>
</font>
<table CELLSPACING="0" BORDER="0" WIDTH="100%" cellpadding="0" style="border-collapse: collapse" bordercolor="#111111">
  <tr>
    <td WIDTH="40%">&nbsp;</td>
    <td WIDTH="30%" align="right" colspan="3">
    <p style="margin-right: 15%"><i><b><font size="2">Three months ended</font></b></i></td>
    <td WIDTH="30%" align="right" colspan="3">
    <p style="margin-right: 15%"><i><b><font size="2">Nine months ended</font></b></i></td>
  </tr>
  <tr>
    <td WIDTH="40%" style="border-bottom-style: solid; border-bottom-width: 2">&nbsp;</td>
    <td WIDTH="17%" COLSPAN="2" align="right" style="border-bottom-style: solid; border-bottom-width: 2">
    <font FACE="Times New Roman" SIZE="2">July 1, 2007</font></td>
    <td WIDTH="15%" align="right" style="border-bottom-style: solid; border-bottom-width: 2">
    <font FACE="Times New Roman" SIZE="2">July 2, 2006</font></td>
    <td WIDTH="10%" COLSPAN="2" align="right" style="border-bottom-style: solid; border-bottom-width: 2">
    <font FACE="Times New Roman" SIZE="2">July 1, 2007</font></td>
    <td WIDTH="15%" align="right" style="border-bottom-style: solid; border-bottom-width: 2">
    <font FACE="Times New Roman" SIZE="2">July 2, 2006</font></td>
  </tr>
  <tr>
    <td WIDTH="40%" bgcolor="#E6E6E6"><font FACE="Times New Roman" SIZE="2">Accelerated
    depreciation (a)</font></td>
    <td WIDTH="3%" align="right" bgcolor="#E6E6E6"><font FACE="Times New Roman" SIZE="2">$</font></td>
    <td WIDTH="12%" align="right" bgcolor="#E6E6E6"><font FACE="Times New Roman" SIZE="2">766</font></td>
    <td WIDTH="15%" align="right" bgcolor="#E6E6E6"><font FACE="Times New Roman" SIZE="2">-</font></td>
    <td WIDTH="3%" align="right" bgcolor="#E6E6E6"><font FACE="Times New Roman" SIZE="2">$</font></td>
    <td WIDTH="12%" align="right" bgcolor="#E6E6E6"><font FACE="Times New Roman" SIZE="2">2,892</font></td>
    <td WIDTH="15%" align="right" bgcolor="#E6E6E6"><font FACE="Times New Roman" SIZE="2">-</font></td>
  </tr>
  <tr>
    <td WIDTH="40%"><font FACE="Times New Roman" SIZE="2">Gain on disposal of
    assets held for sale (b)</font></td>
    <td WIDTH="3%" align="right">&nbsp;</td>
    <td WIDTH="12%" align="right"><font FACE="Times New Roman" SIZE="2">(58)</font></td>
    <td WIDTH="15%" align="right"><font FACE="Times New Roman" SIZE="2">-</font></td>
    <td WIDTH="3%" align="right">&nbsp;</td>
    <td WIDTH="12%" align="right"><font FACE="Times New Roman" SIZE="2">(1,836)</font></td>
    <td WIDTH="15%" align="right"><font FACE="Times New Roman" SIZE="2">-</font></td>
  </tr>
  <tr>
    <td WIDTH="40%" bgcolor="#E6E6E6"><font FACE="Times New Roman" SIZE="2">Asset impairment loss
    (c)</font></td>
    <td WIDTH="3%" align="right" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="12%" align="right" bgcolor="#E6E6E6"><font FACE="Times New Roman" SIZE="2">-</font></td>
    <td WIDTH="15%" align="right" bgcolor="#E6E6E6"><font FACE="Times New Roman" SIZE="2">-</font></td>
    <td WIDTH="3%" align="right" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="12%" align="right" bgcolor="#E6E6E6"><font FACE="Times New Roman" SIZE="2">3,560</font></td>
    <td WIDTH="15%" align="right" bgcolor="#E6E6E6"><font FACE="Times New Roman" SIZE="2">-</font></td>
  </tr>
  <tr>
    <td WIDTH="40%"><font FACE="Times New Roman" SIZE="2">Severance (c)</font></td>
    <td WIDTH="3%" align="right">&nbsp;</td>
    <td WIDTH="12%" align="right"><font FACE="Times New Roman" SIZE="2">1,234</font></td>
    <td WIDTH="15%" align="right"><font FACE="Times New Roman" SIZE="2">-</font></td>
    <td WIDTH="3%" align="right">&nbsp;</td>
    <td WIDTH="12%" align="right"><font FACE="Times New Roman" SIZE="2">13,296</font></td>
    <td WIDTH="15%" align="right"><font FACE="Times New Roman" SIZE="2">-</font></td>
  </tr>
  <tr>
    <td WIDTH="40%" style="border-bottom-style: solid; border-bottom-width: 1" bgcolor="#E6E6E6">
    <font FACE="Times New Roman" SIZE="2">Other (d)</font></td>
    <td WIDTH="3%" align="right" style="border-bottom-style: solid; border-bottom-width: 1" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="12%" align="right" style="border-bottom-style: solid; border-bottom-width: 1" bgcolor="#E6E6E6">
    <font FACE="Times New Roman" SIZE="2">2,647</font></td>
    <td WIDTH="15%" align="right" style="border-bottom-style: solid; border-bottom-width: 1" bgcolor="#E6E6E6">
    <font FACE="Times New Roman" SIZE="2">-</font></td>
    <td WIDTH="3%" align="right" style="border-bottom-style: solid; border-bottom-width: 1" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="12%" align="right" style="border-bottom-style: solid; border-bottom-width: 1" bgcolor="#E6E6E6">
    <font FACE="Times New Roman" SIZE="2">4,427</font></td>
    <td WIDTH="15%" align="right" style="border-bottom-style: solid; border-bottom-width: 1" bgcolor="#E6E6E6">
    <font FACE="Times New Roman" SIZE="2">-</font></td>
  </tr>
  <tr>
    <td WIDTH="40%" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 2">&nbsp;</td>
    <td WIDTH="3%" align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 2">
    <font FACE="Times New Roman" SIZE="2">$</font></td>
    <td WIDTH="12%" align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 2">
    <font FACE="Times New Roman" SIZE="2">4,589</font></td>
    <td WIDTH="15%" align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 2">
    <font FACE="Times New Roman" SIZE="2">-</font></td>
    <td WIDTH="3%" align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 2">
    <font FACE="Times New Roman" SIZE="2">$</font></td>
    <td WIDTH="12%" align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 2">
    <font FACE="Times New Roman" SIZE="2">22,339</font></td>
    <td WIDTH="15%" align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 2">
    <font FACE="Times New Roman" SIZE="2">-</font></td>
  </tr>
</table>
<font SIZE="2">
<p align="justify" style="text-indent: -30; margin-left: 30">(a)&nbsp;&nbsp;&nbsp;&nbsp;
In September 2006, the Company announced a restructuring of its Canadian
manufacturing operations, involving the closure of its textile manufacturing
facility in Valleyfield, Quebec and the downsizing of its Montreal, Quebec
knitting facility, to take effect in December 2006. In the fourth quarter of
fiscal 2006, the Company recorded severance charges of $2.1 million and other
exit costs of $1.6 million relating to this restructuring. In addition, during
the fourth quarter of fiscal 2006, the Company recorded an impairment loss of
$15.1 million on all Canadian textile and related manufacturing assets, and
reduced its estimate of the remaining economic lives of these assets. The effect
of this change in estimate, amounting to $0.8 million in the third quarter of
fiscal 2007 and $2.9 million for the first nine months of fiscal 2007, has been
classified as accelerated depreciation and included in restructuring and other
charges. An additional $0.4 million of accelerated depreciation will be recorded
in the fourth quarter of fiscal 2007. </p>
<p align="justify" style="text-indent: -30; margin-left: 30">(b)&nbsp;&nbsp;&nbsp;&nbsp;
During the fourth quarter of fiscal 2006, the Company announced the relocation
and consolidation of its U.S. retail distribution centres, which was
substantially completed during the third quarter of fiscal 2007, and the closure
of its Canadian distribution centre in Montreal, Quebec, effective October 2006.
The Company also announced the closure and downsizing of sock manufacturing
capacity located in North Carolina and Virginia. During the second quarter of
fiscal 2007, the Company sold some of the assets related to these facilities and
recorded a gain of $1.8 million. The Company sold some of the remaining assets
during the third quarter of fiscal 2007 and recorded a net gain of $0.1 million.
</p>
<p align="justify" style="text-indent: -30; margin-left: 30">(c)&nbsp;&nbsp;&nbsp;&nbsp;
On March 27, 2007, the Company announced plans to close its two remaining
textile facilities in Montreal, Quebec, as well as its cutting facility in
Bombay, N.Y., in the fourth quarter of fiscal 2007. In addition, the Company
closed two sewing facilities in Mexico, which had been supplied with fabric from
Gildan's Canadian textile operations. In the third quarter and in the first nine
months of fiscal 2007, the Company recorded severance costs of $1.2 million and
$13.3 million respectively, primarily relating to these plant closures. The
Company expects to recognize additional severance of $1.4 million in the fourth
quarter of fiscal 2007. Concurrent with the restructuring of the Canadian
textile operations, the Company also announced plans to relocate the corporate
office, which is currently located in the same building as its Montreal knitting
facility, into leased premises in the Montreal area. In the second quarter of
fiscal 2007, the Company recorded a $3.6 million asset impairment loss relating
to our corporate head office facility. </p>
<p align="justify" style="text-indent: -30; margin-left: 30">(d)&nbsp;&nbsp;&nbsp;&nbsp;
Other costs of $2.6 million for the third quarter and $4.4 million for the nine
months ended July 1, 2007 relate primarily to exit costs incurred in connection
with the closures noted above, including carrying and dismantling costs
associated with assets held for sale. Other costs also include temporary
incremental duties incurred as a result of the closure of our Mexican sewing
facilities. These duties will not be incurred after the completion of our
restructuring initiatives in the fourth quarter of fiscal 2007. The Company
expects to incur additional exit and duty costs relating to these closures of
approximately $2.4 million, which will be accounted for as incurred during the
fourth quarter of fiscal 2007. </p>
<p align="justify">Accounts payable and accrued liabilities include amounts
relating to severance costs, as follows: </p>
</font>
<table CELLSPACING="0" BORDER="0" WIDTH="100%" cellpadding="0" style="border-collapse: collapse" bordercolor="#111111">
  <tr>
    <td WIDTH="85%" style="border-top-style: solid; border-top-width: 2" bgcolor="#E6E6E6">
    <font SIZE="2">Balance in accounts payable and accrued liabilities at
    October 1, 2006</font></td>
    <td WIDTH="3%" align="right" style="border-top-style: solid; border-top-width: 2" bgcolor="#E6E6E6">
    <font SIZE="2">
    <p style="margin-right: 4">$</font></td>
    <td WIDTH="12%" align="right" style="border-top-style: solid; border-top-width: 2" bgcolor="#E6E6E6">
    <font SIZE="2">
    <p style="margin-right: 4">3,641</font></td>
  </tr>
  <tr>
    <td WIDTH="85%"><font SIZE="2">2007 severance costs</font></td>
    <td WIDTH="3%" align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right"><font SIZE="2">
    <p style="margin-right: 4">13,296</font></td>
  </tr>
  <tr>
    <td WIDTH="85%" bgcolor="#E6E6E6"><font SIZE="2">Foreign exchange adjustment</font></td>
    <td WIDTH="3%" align="right" bgcolor="#E6E6E6">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" bgcolor="#E6E6E6"><font SIZE="2">
    <p style="margin-right: 4">446</font></td>
  </tr>
  <tr>
    <td WIDTH="85%"><font SIZE="2">Less:</font></td>
    <td WIDTH="3%" align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right">
    <p style="margin-right: 4">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="85%" style="border-bottom-style: solid; border-bottom-width: 1" bgcolor="#E6E6E6">
    <font SIZE="2">
    <p style="margin-left: 52">Cash payments</font></td>
    <td WIDTH="3%" align="right" style="border-bottom-style: solid; border-bottom-width: 1" bgcolor="#E6E6E6">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" style="border-bottom-style: solid; border-bottom-width: 1" bgcolor="#E6E6E6">
    <font SIZE="2">(8,848)</font></td>
  </tr>
  <tr>
    <td WIDTH="85%" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 2">
    <font SIZE="2">Balance in accounts payable and accrued liabilities at July
    1, 2007</font></td>
    <td WIDTH="3%" align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 2">
    <font SIZE="2">
    <p style="margin-right: 4">$</font></td>
    <td WIDTH="12%" align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 2">
    <font SIZE="2">
    <p style="margin-right: 4">8,535</font></td>
  </tr>
</table>
<font FACE="Times New Roman PS" SIZE="2"><i>
<p align="right">GILDAN QUARTERLY REPORT - Q3 2007 p.26</p>
<hr color="#000000" size="5"><p Style='page-break-before:always'></i></font>
<p><img border="0" src="gildan1wxtbh.jpg" width="110" height="41"></p>
<font FACE="Times New Roman" SIZE="2"><i>
<p align="right">NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS </p>
</i></font><font SIZE="2"><b>
<p>10.&nbsp;&nbsp;&nbsp;&nbsp; Restructuring and other charges (Continued) : </p>
</b>
<p ALIGN="JUSTIFY">Accounts payable and accrued liabilities also include
management's best estimate of the cost of financial obligations pursuant to an
employment contract with the former Chairman and Co-Chief Executive Officer of
the Company. The employment contract includes variable components related to the
Company's financial and operating performance to fiscal 2009. Most of the
payments under this contract are payable in Canadian dollars. Adjustments
relating to the variable components of the Company's obligations under this
contract are included in restructuring and other charges. Movements in the
accrual from the end of fiscal 2006 were as follows: </p>
</font>
<table CELLSPACING="0" BORDER="0" WIDTH="100%" cellpadding="0" style="border-collapse: collapse" bordercolor="#111111">
  <tr>
    <td WIDTH="85%" style="border-top-style: solid; border-top-width: 2" bgcolor="#E6E6E6">
    <font SIZE="2">Balance in accounts payable and accrued liabilities at
    October 1, 2006</font></td>
    <td WIDTH="3%" align="right" style="border-top-style: solid; border-top-width: 2" bgcolor="#E6E6E6">
    <font SIZE="2">
    <p style="margin-right: 4">$</font></td>
    <td WIDTH="12%" align="right" style="border-top-style: solid; border-top-width: 2" bgcolor="#E6E6E6">
    <font SIZE="2">
    <p style="margin-right: 4">3,288</font></td>
  </tr>
  <tr>
    <td WIDTH="85%"><font SIZE="2">Adjustments related to variable components of
    contractual obligations</font></td>
    <td WIDTH="3%" align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right"><font SIZE="2">
    <p style="margin-right: 4">-</font></td>
  </tr>
  <tr>
    <td WIDTH="85%" bgcolor="#E6E6E6"><font SIZE="2">Foreign exchange adjustment</font></td>
    <td WIDTH="3%" align="right" bgcolor="#E6E6E6">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" bgcolor="#E6E6E6"><font SIZE="2">
    <p style="margin-right: 4">161</font></td>
  </tr>
  <tr>
    <td WIDTH="85%"><font SIZE="2">Less:</font></td>
    <td WIDTH="3%" align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right">
    <p style="margin-right: 4">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="85%" style="border-bottom-style: solid; border-bottom-width: 1" bgcolor="#E6E6E6">
    <font SIZE="2">
    <p style="margin-left: 52">Cash payments</font></td>
    <td WIDTH="3%" align="right" style="border-bottom-style: solid; border-bottom-width: 1" bgcolor="#E6E6E6">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" style="border-bottom-style: solid; border-bottom-width: 1" bgcolor="#E6E6E6">
    <font SIZE="2">(936)</font></td>
  </tr>
  <tr>
    <td WIDTH="85%" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 2">
    <font SIZE="2">Balance in accounts payable and accrued liabilities at July
    1, 2007</font></td>
    <td WIDTH="3%" align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 2">
    <font SIZE="2">
    <p style="margin-right: 4">$</font></td>
    <td WIDTH="12%" align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 2">
    <font SIZE="2">
    <p style="margin-right: 4">2,513</font></td>
  </tr>
</table>
<font SIZE="2"><b>
<p align="justify">11.&nbsp;&nbsp;&nbsp;&nbsp; Earnings per share: </p>
</b>
<p align="justify">A reconciliation between basic and diluted earnings per share
is as follows: </p>
</font>
<table CELLSPACING="0" BORDER="0" WIDTH="100%" cellpadding="0" style="border-collapse: collapse" bordercolor="#111111">
  <tr>
    <td WIDTH="40%">
    <p style="text-indent: -26; margin-left: 26">&nbsp;</td>
    <td WIDTH="30%" align="center" colspan="4">
    <p align="right" style="margin-right: 15%"><i><b><font size="2">Three months
    ended</font></b></i></td>
    <td WIDTH="30%" align="center" colspan="4">
    <p align="right" style="margin-right: 15%"><i><b><font size="2">Nine months
    ended</font></b></i></td>
  </tr>
  <tr>
    <td WIDTH="40%">
    <p style="text-indent: -26; margin-left: 26">&nbsp;</td>
    <td WIDTH="3%" align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right"><font SIZE="2">
    <p style="margin-right: 4"><u>July 1,</u></font></td>
    <td WIDTH="3%" align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right"><font SIZE="2">
    <p style="margin-right: 4"><u>July 2,</u></font></td>
    <td WIDTH="3%" align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right"><font SIZE="2">
    <p style="margin-right: 4"><u>July 1,</u></font></td>
    <td WIDTH="3%" align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right"><font SIZE="2">
    <p style="margin-right: 4"><u>July 2,</u></font></td>
  </tr>
  <tr>
    <td WIDTH="40%" style="border-bottom-style: solid; border-bottom-width: 2">
    <p style="text-indent: -26; margin-left: 26">&nbsp;</td>
    <td WIDTH="3%" align="right" style="border-bottom-style: solid; border-bottom-width: 2">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" style="border-bottom-style: solid; border-bottom-width: 2">
    <font SIZE="2">
    <p style="margin-right: 4"><u>2007</u></font></td>
    <td WIDTH="3%" align="right" style="border-bottom-style: solid; border-bottom-width: 2">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" style="border-bottom-style: solid; border-bottom-width: 2">
    <font SIZE="2">
    <p style="margin-right: 4"><u>2006</u></font></td>
    <td WIDTH="3%" align="right" style="border-bottom-style: solid; border-bottom-width: 2">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" style="border-bottom-style: solid; border-bottom-width: 2">
    <font SIZE="2">
    <p style="margin-right: 4"><u>2007</u></font></td>
    <td WIDTH="3%" align="right" style="border-bottom-style: solid; border-bottom-width: 2">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" style="border-bottom-style: solid; border-bottom-width: 2">
    <font SIZE="2">
    <p style="margin-right: 4"><u>2006</u></font></td>
  </tr>
  <tr>
    <td WIDTH="40%" bgcolor="#E6E6E6"><font SIZE="2">
    <p style="text-indent: -26; margin-left: 26">Basic earnings per share:</font></td>
    <td WIDTH="3%" align="right" bgcolor="#E6E6E6">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" bgcolor="#E6E6E6">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="3%" align="right" bgcolor="#E6E6E6">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" bgcolor="#E6E6E6">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="3%" align="right" bgcolor="#E6E6E6">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" bgcolor="#E6E6E6">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="3%" align="right" bgcolor="#E6E6E6">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" bgcolor="#E6E6E6">
    <p style="margin-right: 4">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="40%" style="border-bottom-style: solid; border-bottom-width: 2">
    <font SIZE="2">
    <p style="text-indent: -26; margin-left: 52">Basic weighted average number
    of common shares outstanding</font></td>
    <td WIDTH="3%" align="right" style="border-bottom-style: solid; border-bottom-width: 2">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" style="border-bottom-style: solid; border-bottom-width: 2">
    <font SIZE="2">
    <p style="margin-right: 4">120,359</font></td>
    <td WIDTH="3%" align="right" style="border-bottom-style: solid; border-bottom-width: 2">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" style="border-bottom-style: solid; border-bottom-width: 2">
    <font SIZE="2">
    <p style="margin-right: 4">120,155</font></td>
    <td WIDTH="3%" align="right" style="border-bottom-style: solid; border-bottom-width: 2">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" style="border-bottom-style: solid; border-bottom-width: 2">
    <font SIZE="2">
    <p style="margin-right: 4">120,319</font></td>
    <td WIDTH="3%" align="right" style="border-bottom-style: solid; border-bottom-width: 2">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" style="border-bottom-style: solid; border-bottom-width: 2">
    <font SIZE="2">
    <p style="margin-right: 4">120,068</font></td>
  </tr>
  <tr>
    <td WIDTH="40%" style="border-bottom-style: solid; border-bottom-width: 2" bgcolor="#E6E6E6">
    <font SIZE="2">
    <p style="text-indent: -26; margin-left: 52">Basic earnings per share</font></td>
    <td WIDTH="3%" align="right" style="border-bottom-style: solid; border-bottom-width: 2" bgcolor="#E6E6E6">
    <font SIZE="2">
    <p style="margin-right: 4">$</font></td>
    <td WIDTH="12%" align="right" style="border-bottom-style: solid; border-bottom-width: 2" bgcolor="#E6E6E6">
    <font SIZE="2">
    <p style="margin-right: 4">0.44</font></td>
    <td WIDTH="3%" align="right" style="border-bottom-style: solid; border-bottom-width: 2" bgcolor="#E6E6E6">
    <font SIZE="2">
    <p style="margin-right: 4">$</font></td>
    <td WIDTH="12%" align="right" style="border-bottom-style: solid; border-bottom-width: 2" bgcolor="#E6E6E6">
    <font SIZE="2">
    <p style="margin-right: 4">0.36</font></td>
    <td WIDTH="3%" align="right" style="border-bottom-style: solid; border-bottom-width: 2" bgcolor="#E6E6E6">
    <font SIZE="2">
    <p style="margin-right: 4">$</font></td>
    <td WIDTH="12%" align="right" style="border-bottom-style: solid; border-bottom-width: 2" bgcolor="#E6E6E6">
    <font SIZE="2">
    <p style="margin-right: 4">0.74</font></td>
    <td WIDTH="3%" align="right" style="border-bottom-style: solid; border-bottom-width: 2" bgcolor="#E6E6E6">
    <font SIZE="2">
    <p style="margin-right: 4">$</font></td>
    <td WIDTH="12%" align="right" style="border-bottom-style: solid; border-bottom-width: 2" bgcolor="#E6E6E6">
    <font SIZE="2">
    <p style="margin-right: 4">0.75</font></td>
  </tr>
  <tr>
    <td WIDTH="40%"><font SIZE="2">
    <p style="text-indent: -26; margin-left: 26">Diluted earnings per share:</font></td>
    <td WIDTH="3%" align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="3%" align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="3%" align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="3%" align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right">
    <p style="margin-right: 4">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="40%" bgcolor="#E6E6E6"><font SIZE="2">
    <p style="text-indent: -26; margin-left: 52">Basic weighted average number
    of common shares outstanding</font></td>
    <td WIDTH="3%" align="right" bgcolor="#E6E6E6">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" bgcolor="#E6E6E6"><font SIZE="2">
    <p style="margin-right: 4">120,359</font></td>
    <td WIDTH="3%" align="right" bgcolor="#E6E6E6">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" bgcolor="#E6E6E6"><font SIZE="2">
    <p style="margin-right: 4">120,155</font></td>
    <td WIDTH="3%" align="right" bgcolor="#E6E6E6">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" bgcolor="#E6E6E6"><font SIZE="2">
    <p style="margin-right: 4">120,319</font></td>
    <td WIDTH="3%" align="right" bgcolor="#E6E6E6">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" bgcolor="#E6E6E6"><font SIZE="2">
    <p style="margin-right: 4">120,068</font></td>
  </tr>
  <tr>
    <td WIDTH="40%" style="border-bottom-style: solid; border-bottom-width: 2">
    <font SIZE="2">
    <p style="text-indent: -26; margin-left: 52">Plus impact of stock options
    and Treasury RSUs</font></td>
    <td WIDTH="3%" align="right" style="border-bottom-style: solid; border-bottom-width: 2">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" style="border-bottom-style: solid; border-bottom-width: 2">
    <font SIZE="2">
    <p style="margin-right: 4">1,240</font></td>
    <td WIDTH="3%" align="right" style="border-bottom-style: solid; border-bottom-width: 2">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" style="border-bottom-style: solid; border-bottom-width: 2">
    <font SIZE="2">
    <p style="margin-right: 4">1,099</font></td>
    <td WIDTH="3%" align="right" style="border-bottom-style: solid; border-bottom-width: 2">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" style="border-bottom-style: solid; border-bottom-width: 2">
    <font SIZE="2">
    <p style="margin-right: 4">1,206</font></td>
    <td WIDTH="3%" align="right" style="border-bottom-style: solid; border-bottom-width: 2">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" style="border-bottom-style: solid; border-bottom-width: 2">
    <font SIZE="2">
    <p style="margin-right: 4">1,154</font></td>
  </tr>
  <tr>
    <td WIDTH="40%" style="border-bottom-style: solid; border-bottom-width: 2" bgcolor="#E6E6E6">
    <font SIZE="2">
    <p style="text-indent: -26; margin-left: 52">Diluted weighted average number
    of common shares outstanding</font></td>
    <td WIDTH="3%" align="right" style="border-bottom-style: solid; border-bottom-width: 2" bgcolor="#E6E6E6">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" style="border-bottom-style: solid; border-bottom-width: 2" bgcolor="#E6E6E6">
    <font SIZE="2">
    <p style="margin-right: 4">121,599</font></td>
    <td WIDTH="3%" align="right" style="border-bottom-style: solid; border-bottom-width: 2" bgcolor="#E6E6E6">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" style="border-bottom-style: solid; border-bottom-width: 2" bgcolor="#E6E6E6">
    <font SIZE="2">
    <p style="margin-right: 4">121,254</font></td>
    <td WIDTH="3%" align="right" style="border-bottom-style: solid; border-bottom-width: 2" bgcolor="#E6E6E6">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" style="border-bottom-style: solid; border-bottom-width: 2" bgcolor="#E6E6E6">
    <font SIZE="2">
    <p style="margin-right: 4">121,525</font></td>
    <td WIDTH="3%" align="right" style="border-bottom-style: solid; border-bottom-width: 2" bgcolor="#E6E6E6">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" style="border-bottom-style: solid; border-bottom-width: 2" bgcolor="#E6E6E6">
    <font SIZE="2">
    <p style="margin-right: 4">121,222</font></td>
  </tr>
  <tr>
    <td WIDTH="40%" style="border-bottom-style: solid; border-bottom-width: 2">
    <font SIZE="2">
    <p style="text-indent: -26; margin-left: 52">Diluted earnings per share</font></td>
    <td WIDTH="3%" align="right" style="border-bottom-style: solid; border-bottom-width: 2">
    <font SIZE="2">
    <p style="margin-right: 4">$</font></td>
    <td WIDTH="12%" align="right" style="border-bottom-style: solid; border-bottom-width: 2">
    <font SIZE="2">
    <p style="margin-right: 4">0.43</font></td>
    <td WIDTH="3%" align="right" style="border-bottom-style: solid; border-bottom-width: 2">
    <font SIZE="2">
    <p style="margin-right: 4">$</font></td>
    <td WIDTH="12%" align="right" style="border-bottom-style: solid; border-bottom-width: 2">
    <font SIZE="2">
    <p style="margin-right: 4">0.35</font></td>
    <td WIDTH="3%" align="right" style="border-bottom-style: solid; border-bottom-width: 2">
    <font SIZE="2">
    <p style="margin-right: 4">$</font></td>
    <td WIDTH="12%" align="right" style="border-bottom-style: solid; border-bottom-width: 2">
    <font SIZE="2">
    <p style="margin-right: 4">0.73</font></td>
    <td WIDTH="3%" align="right" style="border-bottom-style: solid; border-bottom-width: 2">
    <font SIZE="2">
    <p style="margin-right: 4">$</font></td>
    <td WIDTH="12%" align="right" style="border-bottom-style: solid; border-bottom-width: 2">
    <font SIZE="2">
    <p style="margin-right: 4">0.74</font></td>
  </tr>
  <tr>
    <td WIDTH="40%">
    <p style="text-indent: -26; margin-left: 26">&nbsp;</td>
    <td WIDTH="3%" align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="3%" align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="3%" align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="3%" align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right">
    <p style="margin-right: 4">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="40%"><font SIZE="2"><b>
    <p style="text-indent: -26; margin-left: 26">12.&nbsp;&nbsp;&nbsp;&nbsp;
    Other information:</b></font></td>
    <td WIDTH="3%" align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="3%" align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="3%" align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="3%" align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right">
    <p style="margin-right: 4">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="40%">
    <p style="text-indent: -26; margin-left: 26">&nbsp;</td>
    <td WIDTH="30%" align="center" colspan="4">
    <p align="right" style="margin-right: 15%"><i><b><font size="2">Three months
    ended</font></b></i></td>
    <td WIDTH="30%" align="center" colspan="4">
    <p align="right" style="margin-right: 15%"><i><b><font size="2">Nine months
    ended</font></b></i></td>
  </tr>
  <tr>
    <td WIDTH="40%">
    <p style="text-indent: -26; margin-left: 26">&nbsp;</td>
    <td WIDTH="3%" align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right"><font SIZE="2">
    <p style="margin-right: 4"><u>July 1,</u></font></td>
    <td WIDTH="3%" align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right"><font SIZE="2">
    <p style="margin-right: 4"><u>July 2,</u></font></td>
    <td WIDTH="3%" align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right"><font SIZE="2">
    <p style="margin-right: 4"><u>July 1,</u></font></td>
    <td WIDTH="3%" align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right"><font SIZE="2">
    <p style="margin-right: 4"><u>July 2,</u></font></td>
  </tr>
  <tr>
    <td WIDTH="40%">
    <p style="text-indent: -26; margin-left: 26">&nbsp;</td>
    <td WIDTH="3%" align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right"><font SIZE="2">
    <p style="margin-right: 4"><u>2007</u></font></td>
    <td WIDTH="3%" align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right"><font SIZE="2">
    <p style="margin-right: 4"><u>2006</u></font></td>
    <td WIDTH="3%" align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right"><font SIZE="2">
    <p style="margin-right: 4"><u>2007</u></font></td>
    <td WIDTH="3%" align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right"><font SIZE="2">
    <p style="margin-right: 4"><u>2006</u></font></td>
  </tr>
  <tr>
    <td WIDTH="40%">
    <p style="text-indent: -26; margin-left: 26">&nbsp;</td>
    <td WIDTH="3%" align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="3%" align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="3%" align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="3%" align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right">
    <p style="margin-right: 4">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="59%" COLSPAN="4" style="border-bottom-style: solid; border-bottom-width: 2" bgcolor="#E6E6E6">
    <font SIZE="2">(a) The following items were included in the determination of
    the Company's net earnings:</font></td>
    <td WIDTH="12%" align="right" style="border-bottom-style: solid; border-bottom-width: 2" bgcolor="#E6E6E6">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="3%" align="right" style="border-bottom-style: solid; border-bottom-width: 2" bgcolor="#E6E6E6">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" style="border-bottom-style: solid; border-bottom-width: 2" bgcolor="#E6E6E6">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="3%" align="right" style="border-bottom-style: solid; border-bottom-width: 2" bgcolor="#E6E6E6">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" style="border-bottom-style: solid; border-bottom-width: 2" bgcolor="#E6E6E6">
    <p style="margin-right: 4">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="40%"><font SIZE="2">
    <p style="text-indent: -26; margin-left: 26">Depreciation of property, plant
    and equipment</font></td>
    <td WIDTH="30%" align="center" colspan="4">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="30%" align="center" colspan="4">
    <p style="margin-right: 4">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="40%"><font SIZE="2">
    <p style="text-indent: -26; margin-left: 52">(excluding restructuring and
    other charges)</font></td>
    <td WIDTH="3%" align="right"><font SIZE="2">
    <p style="margin-right: 4">$</font></td>
    <td WIDTH="12%" align="right"><font SIZE="2">
    <p style="margin-right: 4">9,612</font></td>
    <td WIDTH="3%" align="right"><font SIZE="2">
    <p style="margin-right: 4">$</font></td>
    <td WIDTH="12%" align="right"><font SIZE="2">
    <p style="margin-right: 4">7,913</font></td>
    <td WIDTH="3%" align="right"><font SIZE="2">
    <p style="margin-right: 4">$</font></td>
    <td WIDTH="12%" align="right"><font SIZE="2">
    <p style="margin-right: 4">26,791</font></td>
    <td WIDTH="3%" align="right"><font SIZE="2">
    <p style="margin-right: 4">$</font></td>
    <td WIDTH="12%" align="right"><font SIZE="2">
    <p style="margin-right: 4">22,526</font></td>
  </tr>
  <tr>
    <td WIDTH="40%" bgcolor="#E6E6E6"><font SIZE="2">
    <p style="text-indent: -26; margin-left: 26">Amortization expense of
    deferred start-up costs and other</font></td>
    <td WIDTH="3%" align="right" bgcolor="#E6E6E6">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" bgcolor="#E6E6E6"><font SIZE="2">
    <p style="margin-right: 4">499</font></td>
    <td WIDTH="3%" align="right" bgcolor="#E6E6E6">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" bgcolor="#E6E6E6"><font SIZE="2">
    <p style="margin-right: 4">256</font></td>
    <td WIDTH="3%" align="right" bgcolor="#E6E6E6">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" bgcolor="#E6E6E6"><font SIZE="2">
    <p style="margin-right: 4">1,247</font></td>
    <td WIDTH="3%" align="right" bgcolor="#E6E6E6">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" bgcolor="#E6E6E6"><font SIZE="2">
    <p style="margin-right: 4">785</font></td>
  </tr>
  <tr>
    <td WIDTH="40%"><font SIZE="2">
    <p style="text-indent: -26; margin-left: 26">Amortization expense of
    intangible assets</font></td>
    <td WIDTH="3%" align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right"><font SIZE="2">
    <p style="margin-right: 4">161</font></td>
    <td WIDTH="3%" align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right"><font SIZE="2">
    <p style="margin-right: 4">-</font></td>
    <td WIDTH="3%" align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right"><font SIZE="2">
    <p style="margin-right: 4">483</font></td>
    <td WIDTH="3%" align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right"><font SIZE="2">
    <p style="margin-right: 4">-</font></td>
  </tr>
  <tr>
    <td WIDTH="40%" bgcolor="#E6E6E6"><font SIZE="2">
    <p style="text-indent: -26; margin-left: 26">Interest expense on long-term
    debt</font></td>
    <td WIDTH="3%" align="right" bgcolor="#E6E6E6">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" bgcolor="#E6E6E6"><font SIZE="2">
    <p style="margin-right: 4">1,393</font></td>
    <td WIDTH="3%" align="right" bgcolor="#E6E6E6">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" bgcolor="#E6E6E6"><font SIZE="2">
    <p style="margin-right: 4">869</font></td>
    <td WIDTH="3%" align="right" bgcolor="#E6E6E6">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" bgcolor="#E6E6E6"><font SIZE="2">
    <p style="margin-right: 4">3,578</font></td>
    <td WIDTH="3%" align="right" bgcolor="#E6E6E6">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" bgcolor="#E6E6E6"><font SIZE="2">
    <p style="margin-right: 4">2,989</font></td>
  </tr>
  <tr>
    <td WIDTH="40%"><font SIZE="2">
    <p style="text-indent: -26; margin-left: 26">Interest expense on short-term
    indebtedness and other</font></td>
    <td WIDTH="3%" align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right"><font SIZE="2">
    <p style="margin-right: 4">145</font></td>
    <td WIDTH="3%" align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right"><font SIZE="2">
    <p style="margin-right: 4">194</font></td>
    <td WIDTH="3%" align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right"><font SIZE="2">
    <p style="margin-right: 4">323</font></td>
    <td WIDTH="3%" align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right"><font SIZE="2">
    <p style="margin-right: 4">262</font></td>
  </tr>
  <tr>
    <td WIDTH="40%" bgcolor="#E6E6E6"><font SIZE="2">
    <p style="text-indent: -26; margin-left: 26">Investment income</font></td>
    <td WIDTH="3%" align="right" bgcolor="#E6E6E6">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" bgcolor="#E6E6E6"><font SIZE="2">
    <p style="margin-right: 4">85</font></td>
    <td WIDTH="3%" align="right" bgcolor="#E6E6E6">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" bgcolor="#E6E6E6"><font SIZE="2">
    <p style="margin-right: 4">304</font></td>
    <td WIDTH="3%" align="right" bgcolor="#E6E6E6">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" bgcolor="#E6E6E6"><font SIZE="2">
    <p style="margin-right: 4">400</font></td>
    <td WIDTH="3%" align="right" bgcolor="#E6E6E6">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" bgcolor="#E6E6E6"><font SIZE="2">
    <p style="margin-right: 4">1,223</font></td>
  </tr>
  <tr>
    <td WIDTH="40%" style="border-bottom-style: solid; border-bottom-width: 2">
    <font SIZE="2">
    <p style="text-indent: -26; margin-left: 26">Foreign exchange (loss) gain</font></td>
    <td WIDTH="3%" align="right" style="border-bottom-style: solid; border-bottom-width: 2">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" style="border-bottom-style: solid; border-bottom-width: 2">
    <font SIZE="2">(708)</font></td>
    <td WIDTH="3%" align="right" style="border-bottom-style: solid; border-bottom-width: 2">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" style="border-bottom-style: solid; border-bottom-width: 2">
    <font SIZE="2">
    <p style="margin-right: 4">1,171</font></td>
    <td WIDTH="3%" align="right" style="border-bottom-style: solid; border-bottom-width: 2">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" style="border-bottom-style: solid; border-bottom-width: 2">
    <font SIZE="2">
    <p style="margin-right: 4">1,684</font></td>
    <td WIDTH="3%" align="right" style="border-bottom-style: solid; border-bottom-width: 2">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" style="border-bottom-style: solid; border-bottom-width: 2">
    <font SIZE="2">
    <p style="margin-right: 4">1,200</font></td>
  </tr>
  <tr>
    <td WIDTH="40%">
    <p style="text-indent: -26; margin-left: 26">&nbsp;</td>
    <td WIDTH="3%" align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="3%" align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="3%" align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="3%" align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right">
    <p style="margin-right: 4">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="40%" style="border-bottom-style: solid; border-bottom-width: 2" bgcolor="#E6E6E6">
    <font SIZE="2">
    <p style="text-indent: -26; margin-left: 26">(b) Supplemental cash flow
    disclosure:</font></td>
    <td WIDTH="3%" align="right" style="border-bottom-style: solid; border-bottom-width: 2" bgcolor="#E6E6E6">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" style="border-bottom-style: solid; border-bottom-width: 2" bgcolor="#E6E6E6">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="3%" align="right" style="border-bottom-style: solid; border-bottom-width: 2" bgcolor="#E6E6E6">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" style="border-bottom-style: solid; border-bottom-width: 2" bgcolor="#E6E6E6">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="3%" align="right" style="border-bottom-style: solid; border-bottom-width: 2" bgcolor="#E6E6E6">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" style="border-bottom-style: solid; border-bottom-width: 2" bgcolor="#E6E6E6">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="3%" align="right" style="border-bottom-style: solid; border-bottom-width: 2" bgcolor="#E6E6E6">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" style="border-bottom-style: solid; border-bottom-width: 2" bgcolor="#E6E6E6">
    <p style="margin-right: 4">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="40%"><font SIZE="2">
    <p style="text-indent: -26; margin-left: 26">Cash paid during the period
    for:</font></td>
    <td WIDTH="3%" align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="3%" align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="3%" align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="3%" align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right">
    <p style="margin-right: 4">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="40%" bgcolor="#E6E6E6"><font SIZE="2">
    <p style="text-indent: -26; margin-left: 52">Interest</font></td>
    <td WIDTH="3%" align="right" bgcolor="#E6E6E6"><font SIZE="2">
    <p style="margin-right: 4">$</font></td>
    <td WIDTH="12%" align="right" bgcolor="#E6E6E6"><font SIZE="2">
    <p style="margin-right: 4">1,842</font></td>
    <td WIDTH="3%" align="right" bgcolor="#E6E6E6"><font SIZE="2">
    <p style="margin-right: 4">$</font></td>
    <td WIDTH="12%" align="right" bgcolor="#E6E6E6"><font SIZE="2">
    <p style="margin-right: 4">955</font></td>
    <td WIDTH="3%" align="right" bgcolor="#E6E6E6"><font SIZE="2">
    <p style="margin-right: 4">$</font></td>
    <td WIDTH="12%" align="right" bgcolor="#E6E6E6"><font SIZE="2">
    <p style="margin-right: 4">4,065</font></td>
    <td WIDTH="3%" align="right" bgcolor="#E6E6E6"><font SIZE="2">
    <p style="margin-right: 4">$</font></td>
    <td WIDTH="12%" align="right" bgcolor="#E6E6E6"><font SIZE="2">
    <p style="margin-right: 4">3,115</font></td>
  </tr>
  <tr>
    <td WIDTH="40%" style="border-bottom-style: solid; border-bottom-width: 2">
    <font SIZE="2">
    <p style="text-indent: -26; margin-left: 52">Income taxes</font></td>
    <td WIDTH="3%" align="right" style="border-bottom-style: solid; border-bottom-width: 2">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" style="border-bottom-style: solid; border-bottom-width: 2">
    <font SIZE="2">
    <p style="margin-right: 4">482</font></td>
    <td WIDTH="3%" align="right" style="border-bottom-style: solid; border-bottom-width: 2">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" style="border-bottom-style: solid; border-bottom-width: 2">
    <font SIZE="2">
    <p style="margin-right: 4">111</font></td>
    <td WIDTH="3%" align="right" style="border-bottom-style: solid; border-bottom-width: 2">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" style="border-bottom-style: solid; border-bottom-width: 2">
    <font SIZE="2">
    <p style="margin-right: 4">3,798</font></td>
    <td WIDTH="3%" align="right" style="border-bottom-style: solid; border-bottom-width: 2">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" style="border-bottom-style: solid; border-bottom-width: 2">
    <font SIZE="2">
    <p style="margin-right: 4">1,382</font></td>
  </tr>
</table>
<font FACE="Times New Roman PS" SIZE="2"><i>
<p align="right">GILDAN QUARTERLY REPORT - Q3 2007 p.27</p>
<hr color="#000000" size="5"><p Style='page-break-before:always'></i></font>
<p><img border="0" src="gildan1wxtbh.jpg" width="110" height="41"></p>
<font FACE="Times New Roman" SIZE="2"><i>
<p align="right">NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS </p>
</i><b>
<p align="justify">12.&nbsp;&nbsp;&nbsp;&nbsp; Other information (Continued):
</p>
</b></font>
<table CELLSPACING="0" BORDER="0" WIDTH="100%" cellpadding="0" style="border-collapse: collapse" bordercolor="#111111">
  <tr>
    <td WIDTH="55%">&nbsp;</td>
    <td WIDTH="10%" COLSPAN="2" align="right"><font SIZE="2">
    <p style="margin-right: 4">July 1, 2007</font></td>
    <td WIDTH="16%" COLSPAN="2" align="right"><font SIZE="2">
    <p style="margin-right: 4">October 1, 2006</font></td>
    <td WIDTH="23%" COLSPAN="2" align="right"><font SIZE="2">
    <p style="margin-right: 4">July 2, 2006</font></td>
  </tr>
  <tr>
    <td WIDTH="55%" style="border-bottom-style: solid; border-bottom-width: 2" bgcolor="#E6E6E6">
    <font SIZE="2">(b) Supplemental cash flow disclosure (continued):</font></td>
    <td WIDTH="3%" align="right" valign="bottom" style="border-bottom-style: solid; border-bottom-width: 2" bgcolor="#E6E6E6">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" valign="bottom" style="border-bottom-style: solid; border-bottom-width: 2" bgcolor="#E6E6E6">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="3%" align="right" valign="bottom" style="border-bottom-style: solid; border-bottom-width: 2" bgcolor="#E6E6E6">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" valign="bottom" style="border-bottom-style: solid; border-bottom-width: 2" bgcolor="#E6E6E6">
    <font SIZE="2">(audited)</font></td>
    <td WIDTH="3%" align="right" valign="bottom" style="border-bottom-style: solid; border-bottom-width: 2" bgcolor="#E6E6E6">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" valign="bottom" style="border-bottom-style: solid; border-bottom-width: 2" bgcolor="#E6E6E6">
    <p style="margin-right: 4">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="55%"><font SIZE="2">
    <p style="text-indent: -26; margin-left: 26">Non-cash transactions:</font></td>
    <td WIDTH="3%" align="right" valign="bottom">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" valign="bottom">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="3%" align="right" valign="bottom">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" valign="bottom">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="3%" align="right" valign="bottom">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" valign="bottom">
    <p style="margin-right: 4">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="55%" bgcolor="#E6E6E6"><font SIZE="2">
    <p style="text-indent: -26; margin-left: 52">Additions to property, plant
    and equipment included in accounts payable and accrued liabilities</font></td>
    <td WIDTH="3%" align="right" valign="bottom" bgcolor="#E6E6E6">
    <p style="margin-right: 4"><font SIZE="2">$</font></td>
    <td WIDTH="12%" align="right" valign="bottom" bgcolor="#E6E6E6"><font SIZE="2">
    <p style="margin-right: 4">2,652</font></td>
    <td WIDTH="3%" align="right" valign="bottom" bgcolor="#E6E6E6"><font SIZE="2">
    <p style="margin-right: 4">$</font></td>
    <td WIDTH="12%" align="right" valign="bottom" bgcolor="#E6E6E6"><font SIZE="2">
    <p style="margin-right: 4">2,979</font></td>
    <td WIDTH="3%" align="right" valign="bottom" bgcolor="#E6E6E6">
    <p style="margin-right: 4"><font SIZE="2">$</font></td>
    <td WIDTH="12%" align="right" valign="bottom" bgcolor="#E6E6E6"><font SIZE="2">
    <p style="margin-right: 4">2,816</font></td>
  </tr>
  <tr>
    <td WIDTH="55%"><font SIZE="2">
    <p style="text-indent: -26; margin-left: 52">Proceeds on disposition of
    long-lived assets in other assets</font></td>
    <td WIDTH="3%" align="right" valign="bottom">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" valign="bottom"><font SIZE="2">
    <p style="margin-right: 4">1,943</font></td>
    <td WIDTH="3%" align="right" valign="bottom">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" valign="bottom"><font SIZE="2">
    <p style="margin-right: 4">-</font></td>
    <td WIDTH="3%" align="right" valign="bottom">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" valign="bottom"><font SIZE="2">
    <p style="margin-right: 4">-</font></td>
  </tr>
  <tr>
    <td WIDTH="55%" bgcolor="#E6E6E6"><font SIZE="2">
    <p style="text-indent: -26; margin-left: 52">Ascribed value credited to
    share capital from issuance of Treasury RSUs</font></td>
    <td WIDTH="3%" align="right" valign="bottom" bgcolor="#E6E6E6">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" valign="bottom" bgcolor="#E6E6E6"><font SIZE="2">
    <p style="margin-right: 4">153</font></td>
    <td WIDTH="3%" align="right" valign="bottom" bgcolor="#E6E6E6">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" valign="bottom" bgcolor="#E6E6E6"><font SIZE="2">
    <p style="margin-right: 4">-</font></td>
    <td WIDTH="3%" align="right" valign="bottom" bgcolor="#E6E6E6">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" valign="bottom" bgcolor="#E6E6E6"><font SIZE="2">
    <p style="margin-right: 4">-</font></td>
  </tr>
  <tr>
    <td WIDTH="55%"><font SIZE="2">
    <p style="text-indent: -26; margin-left: 52">Issuance of shares on
    acquisition of Kentucky Derby</font></td>
    <td WIDTH="3%" align="right" valign="bottom">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" valign="bottom"><font SIZE="2">
    <p style="margin-right: 4">-</font></td>
    <td WIDTH="3%" align="right" valign="bottom">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" valign="bottom"><font SIZE="2">
    <p style="margin-right: 4">460</font></td>
    <td WIDTH="3%" align="right" valign="bottom">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" valign="bottom"><font SIZE="2">
    <p style="margin-right: 4">-</font></td>
  </tr>
  <tr>
    <td WIDTH="55%" style="border-bottom-style: solid; border-bottom-width: 2" bgcolor="#E6E6E6">
    <p style="text-indent: -26; margin-left: 26">&nbsp;</td>
    <td WIDTH="3%" align="right" valign="bottom" style="border-bottom-style: solid; border-bottom-width: 2" bgcolor="#E6E6E6">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" valign="bottom" style="border-bottom-style: solid; border-bottom-width: 2" bgcolor="#E6E6E6">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="3%" align="right" valign="bottom" style="border-bottom-style: solid; border-bottom-width: 2" bgcolor="#E6E6E6">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" valign="bottom" style="border-bottom-style: solid; border-bottom-width: 2" bgcolor="#E6E6E6">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="3%" align="right" valign="bottom" style="border-bottom-style: solid; border-bottom-width: 2" bgcolor="#E6E6E6">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" valign="bottom" style="border-bottom-style: solid; border-bottom-width: 2" bgcolor="#E6E6E6">
    <p style="margin-right: 4">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="55%"><font SIZE="2">
    <p style="text-indent: -26; margin-left: 26">Cash and cash equivalents
    consist of:</font></td>
    <td WIDTH="3%" align="right" valign="bottom">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" valign="bottom">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="3%" align="right" valign="bottom">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" valign="bottom">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="3%" align="right" valign="bottom">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" valign="bottom">
    <p style="margin-right: 4">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="55%" bgcolor="#E6E6E6"><font SIZE="2">
    <p style="text-indent: -26; margin-left: 52">Cash balances with banks</font></td>
    <td WIDTH="3%" align="right" valign="bottom" bgcolor="#E6E6E6"><font SIZE="2">
    <p style="margin-right: 4">$</font></td>
    <td WIDTH="12%" align="right" valign="bottom" bgcolor="#E6E6E6"><font SIZE="2">
    <p style="margin-right: 4">7,537</font></td>
    <td WIDTH="3%" align="right" valign="bottom" bgcolor="#E6E6E6"><font SIZE="2">
    <p style="margin-right: 4">$</font></td>
    <td WIDTH="12%" align="right" valign="bottom" bgcolor="#E6E6E6"><font SIZE="2">
    <p style="margin-right: 4">27,810</font></td>
    <td WIDTH="3%" align="right" valign="bottom" bgcolor="#E6E6E6"><font SIZE="2">
    <p style="margin-right: 4">$</font></td>
    <td WIDTH="12%" align="right" valign="bottom" bgcolor="#E6E6E6"><font SIZE="2">
    <p style="margin-right: 4">39,096</font></td>
  </tr>
  <tr>
    <td WIDTH="55%" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2">
    <p style="text-indent: -26; margin-left: 52">Short-term investments</font></td>
    <td WIDTH="3%" align="right" valign="bottom" style="border-bottom-style: solid; border-bottom-width: 1">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" valign="bottom" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2">
    <p style="margin-right: 4">-</font></td>
    <td WIDTH="3%" align="right" valign="bottom" style="border-bottom-style: solid; border-bottom-width: 1">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" valign="bottom" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2">
    <p style="margin-right: 4">1,197</font></td>
    <td WIDTH="3%" align="right" valign="bottom" style="border-bottom-style: solid; border-bottom-width: 1">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" valign="bottom" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2">
    <p style="margin-right: 4">24,787</font></td>
  </tr>
  <tr>
    <td WIDTH="55%" style="border-bottom-style: solid; border-bottom-width: 2" bgcolor="#E6E6E6">
    <p style="text-indent: -26; margin-left: 26">&nbsp;</td>
    <td WIDTH="3%" align="right" valign="bottom" style="border-bottom-style: solid; border-bottom-width: 2" bgcolor="#E6E6E6">
    <font SIZE="2">
    <p style="margin-right: 4">$</font></td>
    <td WIDTH="12%" align="right" valign="bottom" style="border-bottom-style: solid; border-bottom-width: 2" bgcolor="#E6E6E6">
    <font SIZE="2">
    <p style="margin-right: 4">7,537</font></td>
    <td WIDTH="3%" align="right" valign="bottom" style="border-bottom-style: solid; border-bottom-width: 2" bgcolor="#E6E6E6">
    <font SIZE="2">
    <p style="margin-right: 4">$</font></td>
    <td WIDTH="12%" align="right" valign="bottom" style="border-bottom-style: solid; border-bottom-width: 2" bgcolor="#E6E6E6">
    <font SIZE="2">
    <p style="margin-right: 4">29,007</font></td>
    <td WIDTH="3%" align="right" valign="bottom" style="border-bottom-style: solid; border-bottom-width: 2" bgcolor="#E6E6E6">
    <font SIZE="2">
    <p style="margin-right: 4">$</font></td>
    <td WIDTH="12%" align="right" valign="bottom" style="border-bottom-style: solid; border-bottom-width: 2" bgcolor="#E6E6E6">
    <font SIZE="2">
    <p style="margin-right: 4">63,883</font></td>
  </tr>
</table>
<font FACE="Times New Roman" SIZE="2"><b>
<p align="justify">13.&nbsp;&nbsp;&nbsp;&nbsp; Financial instruments: </p>
</b>
<p align="justify">The following table summarizes the Company's commitments to
buy and sell foreign currencies as at July 1, 2007 and July 2, 2006: </p>
</font>
<table CELLSPACING="0" BORDER="0" WIDTH="100%" cellpadding="0" style="border-collapse: collapse" bordercolor="#111111">
  <tr>
    <td WIDTH="26%">&nbsp;</td>
    <td WIDTH="4%" align="right">&nbsp;</td>
    <td WIDTH="9%" align="right">&nbsp;</td>
    <td WIDTH="17%" align="center">&nbsp;</td>
    <td WIDTH="25%" align="right">&nbsp;</td>
    <td WIDTH="9%" align="right">&nbsp;</td>
    <td WIDTH="10%" align="right">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="26%">&nbsp;</td>
    <td WIDTH="4%" align="right">&nbsp;</td>
    <td WIDTH="9%" align="right"><font SIZE="2">Notional</font></td>
    <td WIDTH="17%" align="center">&nbsp;</td>
    <td WIDTH="25%" align="right">&nbsp;</td>
    <td WIDTH="18%" COLSPAN="2" align="right"><font SIZE="2">Notional U.S.</font></td>
  </tr>
  <tr>
    <td WIDTH="26%" style="border-bottom-style: solid; border-bottom-width: 2">&nbsp;</td>
    <td WIDTH="4%" align="right" style="border-bottom-style: solid; border-bottom-width: 2">&nbsp;</td>
    <td WIDTH="9%" align="right" style="border-bottom-style: solid; border-bottom-width: 2">
    <font SIZE="2">amount</font></td>
    <td WIDTH="17%" align="center" style="border-bottom-style: solid; border-bottom-width: 2">
    <font SIZE="2">Exchange rate</font></td>
    <td WIDTH="25%" align="right" style="border-bottom-style: solid; border-bottom-width: 2">
    <font SIZE="2">Maturity</font></td>
    <td WIDTH="18%" COLSPAN="2" align="right" style="border-bottom-style: solid; border-bottom-width: 2">
    <font SIZE="2">equivalent</font></td>
  </tr>
  <tr>
    <td WIDTH="26%" bgcolor="#E6E6E6"><font SIZE="2"><b>2007:</b></font></td>
    <td WIDTH="4%" align="right" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="9%" align="right" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="17%" align="center" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="25%" align="right" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="9%" align="right" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="10%" align="right" bgcolor="#E6E6E6">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="26%"><font SIZE="2">Buy contracts:</font></td>
    <td WIDTH="4%" align="right">&nbsp;</td>
    <td WIDTH="9%" align="right">&nbsp;</td>
    <td WIDTH="17%" align="center">&nbsp;</td>
    <td WIDTH="25%" align="right">&nbsp;</td>
    <td WIDTH="9%" align="right">&nbsp;</td>
    <td WIDTH="10%" align="right">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="26%" bgcolor="#E6E6E6"><font SIZE="2">
    <p style="margin-left: 26">Foreign exchange contracts</font></td>
    <td WIDTH="4%" align="right" bgcolor="#E6E6E6"><font SIZE="2">&#128;</font></td>
    <td WIDTH="9%" align="right" bgcolor="#E6E6E6"><font SIZE="2">7,099</font></td>
    <td WIDTH="17%" align="center" bgcolor="#E6E6E6"><font SIZE="2">1.3108 to 1.3556</font></td>
    <td WIDTH="25%" align="right" bgcolor="#E6E6E6"><font SIZE="2">July 2007 to December 2007</font></td>
    <td WIDTH="9%" align="right" bgcolor="#E6E6E6"><font SIZE="2">$</font></td>
    <td WIDTH="10%" align="right" bgcolor="#E6E6E6"><font SIZE="2">9,477</font></td>
  </tr>
  <tr>
    <td WIDTH="26%">&nbsp;</td>
    <td WIDTH="4%" align="right"><font SIZE="2">CA$</font></td>
    <td WIDTH="9%" align="right"><font SIZE="2">8,811</font></td>
    <td WIDTH="17%" align="center"><font SIZE="2">0.8506 to 0.8519</font></td>
    <td WIDTH="25%" align="right"><font SIZE="2">July 2007 to August 2007</font></td>
    <td WIDTH="9%" align="right">&nbsp;</td>
    <td WIDTH="10%" align="right"><font SIZE="2">7,500</font></td>
  </tr>
  <tr>
    <td WIDTH="26%" bgcolor="#E6E6E6"><font SIZE="2">Sell contracts:</font></td>
    <td WIDTH="4%" align="right" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="9%" align="right" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="17%" align="center" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="25%" align="right" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="9%" align="right" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="10%" align="right" bgcolor="#E6E6E6">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="26%"><font SIZE="2">
    <p style="margin-left: 26">Foreign exchange contracts</font></td>
    <td WIDTH="4%" align="right"><font SIZE="2">&#128;</font></td>
    <td WIDTH="9%" align="right"><font SIZE="2">13,718</font></td>
    <td WIDTH="17%" align="center"><font SIZE="2">1.3066 to 1.3696</font></td>
    <td WIDTH="25%" align="right"><font SIZE="2">July 2007 to September 2008</font></td>
    <td WIDTH="9%" align="right"><font SIZE="2">$ </font></td>
    <td WIDTH="10%" align="right"><font SIZE="2">18,463</font></td>
  </tr>
  <tr>
    <td WIDTH="26%" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="4%" align="right" bgcolor="#E6E6E6">
    <font FACE="Times New Roman" LANG="JA" SIZE="2">&#163;</font></td>
    <td WIDTH="9%" align="right" bgcolor="#E6E6E6"><font SIZE="2">10,459</font></td>
    <td WIDTH="17%" align="center" bgcolor="#E6E6E6"><font SIZE="2">1.9100 to 1.9780</font></td>
    <td WIDTH="25%" align="right" bgcolor="#E6E6E6"><font SIZE="2">July 2007 to September 2008</font></td>
    <td WIDTH="9%" align="right" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="10%" align="right" bgcolor="#E6E6E6"><font SIZE="2">20,505</font></td>
  </tr>
  <tr>
    <td WIDTH="26%">&nbsp;</td>
    <td WIDTH="4%" align="right">&nbsp;</td>
    <td WIDTH="9%" align="right">&nbsp;</td>
    <td WIDTH="17%" align="center">&nbsp;</td>
    <td WIDTH="25%" align="right">&nbsp;</td>
    <td WIDTH="9%" align="right">&nbsp;</td>
    <td WIDTH="10%" align="right">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="26%" bgcolor="#E6E6E6"><font SIZE="2"><b>2006:</b></font></td>
    <td WIDTH="4%" align="right" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="9%" align="right" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="17%" align="center" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="25%" align="right" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="9%" align="right" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="10%" align="right" bgcolor="#E6E6E6">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="26%"><font SIZE="2">Buy contracts:</font></td>
    <td WIDTH="4%" align="right">&nbsp;</td>
    <td WIDTH="9%" align="right">&nbsp;</td>
    <td WIDTH="17%" align="center">&nbsp;</td>
    <td WIDTH="25%" align="right">&nbsp;</td>
    <td WIDTH="9%" align="right">&nbsp;</td>
    <td WIDTH="10%" align="right">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="26%" bgcolor="#E6E6E6"><font SIZE="2">
    <p style="margin-left: 26">Foreign exchange contracts</font></td>
    <td WIDTH="4%" align="right" bgcolor="#E6E6E6"><font SIZE="2">CA$</font></td>
    <td WIDTH="9%" align="right" bgcolor="#E6E6E6"><font SIZE="2">37,334</font></td>
    <td WIDTH="17%" align="center" bgcolor="#E6E6E6"><font SIZE="2">0.7997 to 0.8997</font></td>
    <td WIDTH="25%" align="right" bgcolor="#E6E6E6"><font SIZE="2">July 2006 to September 2006</font></td>
    <td WIDTH="9%" align="right" bgcolor="#E6E6E6"><font SIZE="2">$ </font></td>
    <td WIDTH="10%" align="right" bgcolor="#E6E6E6"><font SIZE="2">31,720</font></td>
  </tr>
  <tr>
    <td WIDTH="26%">&nbsp;</td>
    <td WIDTH="4%" align="right"><font SIZE="2">&#128;</font></td>
    <td WIDTH="9%" align="right"><font SIZE="2">11,147</font></td>
    <td WIDTH="17%" align="center"><font SIZE="2">1.1991 to 1.2208</font></td>
    <td WIDTH="25%" align="right"><font SIZE="2">July 2006 to June 2007</font></td>
    <td WIDTH="9%" align="right">&nbsp;</td>
    <td WIDTH="10%" align="right"><font SIZE="2">13,480</font></td>
  </tr>
  <tr>
    <td WIDTH="26%" bgcolor="#E6E6E6"><font SIZE="2">Sell contracts:</font></td>
    <td WIDTH="4%" align="right" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="9%" align="right" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="17%" align="center" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="25%" align="right" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="9%" align="right" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="10%" align="right" bgcolor="#E6E6E6">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="26%"><font SIZE="2">
    <p style="margin-left: 26">Foreign exchange contracts</font></td>
    <td WIDTH="4%" align="right"><font SIZE="2">&#128;</font></td>
    <td WIDTH="9%" align="right"><font SIZE="2">2,265</font></td>
    <td WIDTH="17%" align="center"><font SIZE="2">1.3495 to 1.3525</font></td>
    <td WIDTH="25%" align="right"><font SIZE="2">July 2006 to September 2006</font></td>
    <td WIDTH="9%" align="right"><font SIZE="2">$</font></td>
    <td WIDTH="10%" align="right"><font SIZE="2">3,059</font></td>
  </tr>
  <tr>
    <td WIDTH="26%" style="border-bottom-style: solid; border-bottom-width: 2" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="4%" align="right" style="border-bottom-style: solid; border-bottom-width: 2" bgcolor="#E6E6E6">
    <font FACE="Times New Roman" LANG="JA" SIZE="2">&#163;</font></td>
    <td WIDTH="9%" align="right" style="border-bottom-style: solid; border-bottom-width: 2" bgcolor="#E6E6E6">
    <font SIZE="2">1,745</font></td>
    <td WIDTH="17%" align="center" style="border-bottom-style: solid; border-bottom-width: 2" bgcolor="#E6E6E6">
    <font SIZE="2">1.8396 to 1.8736</font></td>
    <td WIDTH="25%" align="right" style="border-bottom-style: solid; border-bottom-width: 2" bgcolor="#E6E6E6">
    <font SIZE="2">July 2006 to September 2006</font></td>
    <td WIDTH="9%" align="right" style="border-bottom-style: solid; border-bottom-width: 2" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="10%" align="right" style="border-bottom-style: solid; border-bottom-width: 2" bgcolor="#E6E6E6">
    <font SIZE="2">3,256</font></td>
  </tr>
</table>
<font FACE="Times New Roman" SIZE="2">
<p ALIGN="JUSTIFY">All outstanding forward foreign exchange contracts are
reported on a mark-to-market basis because the Company elected not to follow
hedge accounting for these derivatives and the gains or losses are included in
earnings. The mark-to-market adjustments relating to the contracts were not
significant in either 2007 or 2006. </p>
<b>
<p>14.&nbsp;&nbsp;&nbsp;&nbsp; Segmented information: </p>
</b>
<p align="justify">The Company manufactures and sells activewear, socks and underwear. The
Company operates in one business segment, being high-volume, basic, frequently
replenished, non-fashion apparel. </p>
<p ALIGN="JUSTIFY">The Company has one customer accounting for greater than 10%
of total sales. For the three-month periods ended July 1, 2007 and July 2, 2006,
this customer accounted for 22.2% and 31.5% of total sales, respectively. For
the nine-month periods ended July 1, 2007 and July 2, 2006, this customer
accounted for 22.2% and 30.3% of total sales, respectively. </p>
</font><font FACE="Times New Roman PS" SIZE="2"><i>
<p align="right">GILDAN QUARTERLY REPORT - Q3 2007 p.28</p>
<hr color="#000000" size="5"><p Style='page-break-before:always'></i></font>
<p><img border="0" src="gildan1wxtbh.jpg" width="110" height="41"></p>
<font FACE="Times New Roman" SIZE="2"><i>
<p align="right">NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS </p>
</i></font><font SIZE="2"><b>
<p align="justify">14.&nbsp;&nbsp;&nbsp;&nbsp; Segmented information
(Continued):</b> </p>
</font>
<table CELLSPACING="0" BORDER="0" WIDTH="100%" cellpadding="0" style="border-collapse: collapse" bordercolor="#111111">
  <tr>
    <td WIDTH="40%">&nbsp;</td>
    <td WIDTH="3%" align="right">&nbsp;</td>
    <td WIDTH="18%" COLSPAN="3" align="right"><font SIZE="2"><i><b>
    <p style="margin-right: 15%">Three months ended</b></i></font></td>
    <td WIDTH="30%" align="right" colspan="4"><font SIZE="2"><i><b>
    <p style="margin-right: 15%">Nine months ended</b></i></font></td>
  </tr>
  <tr>
    <td WIDTH="40%">&nbsp;</td>
    <td WIDTH="21%" COLSPAN="2" align="right"><font SIZE="2"><u>July 1, 2007</u></font></td>
    <td WIDTH="10%" COLSPAN="2" align="right"><font SIZE="2"><u>July 2, 2006</u></font></td>
    <td WIDTH="10%" COLSPAN="2" align="right"><font SIZE="2"><u>July 1, 2007</u></font></td>
    <td WIDTH="24%" COLSPAN="2" align="right"><font SIZE="2"><u>July 2, 2006</u></font></td>
  </tr>
  <tr>
    <td WIDTH="56%" COLSPAN="3" style="border-bottom-style: solid; border-bottom-width: 2">
    <font SIZE="2">Sales were derived from customers located in the following
    geographic areas:</font></td>
    <td WIDTH="3%" align="right" style="border-bottom-style: solid; border-bottom-width: 2">&nbsp;</td>
    <td WIDTH="12%" align="right" style="border-bottom-style: solid; border-bottom-width: 2">&nbsp;</td>
    <td WIDTH="3%" align="right" style="border-bottom-style: solid; border-bottom-width: 2">&nbsp;</td>
    <td WIDTH="12%" align="right" style="border-bottom-style: solid; border-bottom-width: 2">&nbsp;</td>
    <td WIDTH="3%" align="right" style="border-bottom-style: solid; border-bottom-width: 2">&nbsp;</td>
    <td WIDTH="12%" align="right" style="border-bottom-style: solid; border-bottom-width: 2">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="40%" bgcolor="#E6E6E6"><font SIZE="2">United States</font></td>
    <td WIDTH="3%" align="right" bgcolor="#E6E6E6"><font SIZE="2">$</font></td>
    <td WIDTH="12%" align="right" bgcolor="#E6E6E6"><font SIZE="2">255,281</font></td>
    <td WIDTH="3%" align="right" bgcolor="#E6E6E6"><font SIZE="2">$</font></td>
    <td WIDTH="12%" align="right" bgcolor="#E6E6E6"><font SIZE="2">203,047</font></td>
    <td WIDTH="3%" align="right" bgcolor="#E6E6E6"><font SIZE="2">$</font></td>
    <td WIDTH="12%" align="right" bgcolor="#E6E6E6"><font SIZE="2">627,758</font></td>
    <td WIDTH="3%" align="right" bgcolor="#E6E6E6"><font SIZE="2">$</font></td>
    <td WIDTH="12%" align="right" bgcolor="#E6E6E6"><font SIZE="2">470,197</font></td>
  </tr>
  <tr>
    <td WIDTH="40%" style="border-bottom-style: none; border-bottom-width: medium">
    <font SIZE="2">Canada</font></td>
    <td WIDTH="3%" align="right" style="border-bottom-style: none; border-bottom-width: medium">&nbsp;</td>
    <td WIDTH="12%" align="right" style="border-bottom-style: none; border-bottom-width: medium">
    <font SIZE="2">16,456</font></td>
    <td WIDTH="3%" align="right" style="border-bottom-style: none; border-bottom-width: medium">&nbsp;</td>
    <td WIDTH="12%" align="right" style="border-bottom-style: none; border-bottom-width: medium">
    <font SIZE="2">16,429</font></td>
    <td WIDTH="3%" align="right" style="border-bottom-style: none; border-bottom-width: medium">&nbsp;</td>
    <td WIDTH="12%" align="right" style="border-bottom-style: none; border-bottom-width: medium">
    <font SIZE="2">39,021</font></td>
    <td WIDTH="3%" align="right" style="border-bottom-style: none; border-bottom-width: medium">&nbsp;</td>
    <td WIDTH="12%" align="right" style="border-bottom-style: none; border-bottom-width: medium">
    <font SIZE="2">38,055</font></td>
  </tr>
  <tr>
    <td WIDTH="40%" style="border-top-style: none; border-top-width: medium; border-bottom-style: solid; border-bottom-width: 1" bgcolor="#E6E6E6">
    <font SIZE="2">Europe and other</font></td>
    <td WIDTH="3%" align="right" style="border-top-style: none; border-top-width: medium; border-bottom-style: solid; border-bottom-width: 1" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="12%" align="right" style="border-top-style: none; border-top-width: medium; border-bottom-style: solid; border-bottom-width: 1" bgcolor="#E6E6E6">
    <font SIZE="2">19,873</font></td>
    <td WIDTH="3%" align="right" style="border-top-style: none; border-top-width: medium; border-bottom-style: solid; border-bottom-width: 1" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="12%" align="right" style="border-top-style: none; border-top-width: medium; border-bottom-style: solid; border-bottom-width: 1" bgcolor="#E6E6E6">
    <font SIZE="2">14,469</font></td>
    <td WIDTH="3%" align="right" style="border-top-style: none; border-top-width: medium; border-bottom-style: solid; border-bottom-width: 1" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="12%" align="right" style="border-top-style: none; border-top-width: medium; border-bottom-style: solid; border-bottom-width: 1" bgcolor="#E6E6E6">
    <font SIZE="2">42,794</font></td>
    <td WIDTH="3%" align="right" style="border-top-style: none; border-top-width: medium; border-bottom-style: solid; border-bottom-width: 1" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="12%" align="right" style="border-top-style: none; border-top-width: medium; border-bottom-style: solid; border-bottom-width: 1" bgcolor="#E6E6E6">
    <font SIZE="2">29,786</font></td>
  </tr>
  <tr>
    <td WIDTH="40%">&nbsp;</td>
    <td WIDTH="3%" align="right"><font SIZE="2">$</font></td>
    <td WIDTH="12%" align="right"><font SIZE="2">291,610</font></td>
    <td WIDTH="3%" align="right"><font SIZE="2">$</font></td>
    <td WIDTH="12%" align="right"><font SIZE="2">233,945</font></td>
    <td WIDTH="3%" align="right"><font SIZE="2">$</font></td>
    <td WIDTH="12%" align="right"><font SIZE="2">709,573</font></td>
    <td WIDTH="3%" align="right"><font SIZE="2">$</font></td>
    <td WIDTH="12%" align="right"><font SIZE="2">538,038</font></td>
  </tr>
  <tr>
    <td WIDTH="40%" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="3%" align="right" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="12%" align="right" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="3%" align="right" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="12%" align="right" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="3%" align="right" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="12%" align="right" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="3%" align="right" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="12%" align="right" bgcolor="#E6E6E6">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="40%" style="border-bottom-style: solid; border-bottom-width: 2">
    <font SIZE="2">Sales by major product group:</font></td>
    <td WIDTH="3%" align="right" style="border-bottom-style: solid; border-bottom-width: 2">&nbsp;</td>
    <td WIDTH="12%" align="right" style="border-bottom-style: solid; border-bottom-width: 2">&nbsp;</td>
    <td WIDTH="3%" align="right" style="border-bottom-style: solid; border-bottom-width: 2">&nbsp;</td>
    <td WIDTH="12%" align="right" style="border-bottom-style: solid; border-bottom-width: 2">&nbsp;</td>
    <td WIDTH="3%" align="right" style="border-bottom-style: solid; border-bottom-width: 2">&nbsp;</td>
    <td WIDTH="12%" align="right" style="border-bottom-style: solid; border-bottom-width: 2">&nbsp;</td>
    <td WIDTH="3%" align="right" style="border-bottom-style: solid; border-bottom-width: 2">&nbsp;</td>
    <td WIDTH="12%" align="right" style="border-bottom-style: solid; border-bottom-width: 2">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="40%" bgcolor="#E6E6E6"><font SIZE="2">Activewear and underwear</font></td>
    <td WIDTH="3%" align="right" bgcolor="#E6E6E6"><font SIZE="2">$</font></td>
    <td WIDTH="12%" align="right" bgcolor="#E6E6E6"><font SIZE="2">261,087</font></td>
    <td WIDTH="3%" align="right" bgcolor="#E6E6E6"><font SIZE="2">$</font></td>
    <td WIDTH="12%" align="right" bgcolor="#E6E6E6"><font SIZE="2">233,945</font></td>
    <td WIDTH="3%" align="right" bgcolor="#E6E6E6"><font SIZE="2">$</font></td>
    <td WIDTH="12%" align="right" bgcolor="#E6E6E6"><font SIZE="2">603,646</font></td>
    <td WIDTH="3%" align="right" bgcolor="#E6E6E6"><font SIZE="2">$</font></td>
    <td WIDTH="12%" align="right" bgcolor="#E6E6E6"><font SIZE="2">538,038</font></td>
  </tr>
  <tr>
    <td WIDTH="40%" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2">Socks</font></td>
    <td WIDTH="3%" align="right" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="12%" align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2">30,523</font></td>
    <td WIDTH="3%" align="right" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="12%" align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2">-</font></td>
    <td WIDTH="3%" align="right" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="12%" align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2">105,927</font></td>
    <td WIDTH="3%" align="right" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="12%" align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2">-</font></td>
  </tr>
  <tr>
    <td WIDTH="40%" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 2" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="3%" align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 2" bgcolor="#E6E6E6">
    <font SIZE="2">$</font></td>
    <td WIDTH="12%" align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 2" bgcolor="#E6E6E6">
    <font SIZE="2">291,610</font></td>
    <td WIDTH="3%" align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 2" bgcolor="#E6E6E6">
    <font SIZE="2">$</font></td>
    <td WIDTH="12%" align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 2" bgcolor="#E6E6E6">
    <font SIZE="2">233,945</font></td>
    <td WIDTH="3%" align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 2" bgcolor="#E6E6E6">
    <font SIZE="2">$</font></td>
    <td WIDTH="12%" align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 2" bgcolor="#E6E6E6">
    <font SIZE="2">709,573</font></td>
    <td WIDTH="3%" align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 2" bgcolor="#E6E6E6">
    <font SIZE="2">$</font></td>
    <td WIDTH="12%" align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 2" bgcolor="#E6E6E6">
    <font SIZE="2">538,038</font></td>
  </tr>
</table>
<table CELLSPACING="0" BORDER="0" WIDTH="100%" cellpadding="0" style="border-collapse: collapse" bordercolor="#111111">
  <tr>
    <td WIDTH="55%">&nbsp;</td>
    <td WIDTH="3%" align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="14%" COLSPAN="2" align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="3%" align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right">
    <p style="margin-right: 4">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="55%">&nbsp;</td>
    <td WIDTH="3%" align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right"><font FACE="Arial MT" SIZE="2">
    <p style="margin-right: 4"><u>July 1, 2007</u></font></td>
    <td WIDTH="14%" COLSPAN="2" align="right"><font FACE="Arial MT" SIZE="2">
    <p style="margin-right: 4"><u>October 1, 2006</u></font></td>
    <td WIDTH="3%" align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right"><font FACE="Arial MT" SIZE="2">
    <p style="margin-right: 4"><u>July 2, 2006</u></font></td>
  </tr>
  <tr>
    <td WIDTH="55%" style="border-bottom-style: solid; border-bottom-width: 2">
    <font FACE="Arial MT" SIZE="2">Property, plant and equipment by geographic
    areas are as follows:</font></td>
    <td WIDTH="3%" align="right" style="border-bottom-style: solid; border-bottom-width: 2">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" style="border-bottom-style: solid; border-bottom-width: 2">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="3%" align="right" style="border-bottom-style: solid; border-bottom-width: 2">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" style="border-bottom-style: solid; border-bottom-width: 2">
    <font FACE="Arial MT" SIZE="2">(audited)</font></td>
    <td WIDTH="3%" align="right" style="border-bottom-style: solid; border-bottom-width: 2">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" style="border-bottom-style: solid; border-bottom-width: 2">
    <p style="margin-right: 4">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="55%" bgcolor="#E6E6E6"><font FACE="Arial MT" SIZE="2">Caribbean Basin and Central
    America</font></td>
    <td WIDTH="3%" align="right" bgcolor="#E6E6E6"><font FACE="Arial MT" SIZE="2">
    <p style="margin-right: 4">$</font></td>
    <td WIDTH="12%" align="right" bgcolor="#E6E6E6"><font FACE="Arial MT" SIZE="2">
    <p style="margin-right: 4">276,000</font></td>
    <td WIDTH="3%" align="right" bgcolor="#E6E6E6"><font FACE="Arial MT" SIZE="2">
    <p style="margin-right: 4">$</font></td>
    <td WIDTH="12%" align="right" bgcolor="#E6E6E6"><font FACE="Arial MT" SIZE="2">
    <p style="margin-right: 4">200,170</font></td>
    <td WIDTH="3%" align="right" bgcolor="#E6E6E6"><font FACE="Arial MT" SIZE="2">
    <p style="margin-right: 4">$</font></td>
    <td WIDTH="12%" align="right" bgcolor="#E6E6E6"><font FACE="Arial MT" SIZE="2">
    <p style="margin-right: 4">180,595</font></td>
  </tr>
  <tr>
    <td WIDTH="55%"><font FACE="Arial MT" SIZE="2">United States</font></td>
    <td WIDTH="3%" align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right"><font FACE="Arial MT" SIZE="2">
    <p style="margin-right: 4">69,163</font></td>
    <td WIDTH="3%" align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right"><font FACE="Arial MT" SIZE="2">
    <p style="margin-right: 4">68,591</font></td>
    <td WIDTH="3%" align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right"><font FACE="Arial MT" SIZE="2">
    <p style="margin-right: 4">64,146</font></td>
  </tr>
  <tr>
    <td WIDTH="55%" bgcolor="#E6E6E6"><font FACE="Arial MT" SIZE="2">Canada</font></td>
    <td WIDTH="3%" align="right" bgcolor="#E6E6E6">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" bgcolor="#E6E6E6"><font FACE="Arial MT" SIZE="2">
    <p style="margin-right: 4">21,260</font></td>
    <td WIDTH="3%" align="right" bgcolor="#E6E6E6">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" bgcolor="#E6E6E6"><font FACE="Arial MT" SIZE="2">
    <p style="margin-right: 4">31,407</font></td>
    <td WIDTH="3%" align="right" bgcolor="#E6E6E6">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" bgcolor="#E6E6E6"><font FACE="Arial MT" SIZE="2">
    <p style="margin-right: 4">44,229</font></td>
  </tr>
  <tr>
    <td WIDTH="55%" style="border-bottom-style: solid; border-bottom-width: 1">
    <font FACE="Arial MT" SIZE="2">Mexico</font></td>
    <td WIDTH="3%" align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <font FACE="Arial MT" SIZE="2">
    <p style="margin-right: 4">2,054</font></td>
    <td WIDTH="3%" align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <font FACE="Arial MT" SIZE="2">
    <p style="margin-right: 4">2,509</font></td>
    <td WIDTH="3%" align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="12%" align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <font FACE="Arial MT" SIZE="2">
    <p style="margin-right: 4">4,015</font></td>
  </tr>
  <tr>
    <td WIDTH="55%" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 2" bgcolor="#E6E6E6">&nbsp;</td>
    <td WIDTH="3%" align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 2" bgcolor="#E6E6E6">
    <font FACE="Arial MT" SIZE="2">
    <p style="margin-right: 4">$</font></td>
    <td WIDTH="12%" align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 2" bgcolor="#E6E6E6">
    <font FACE="Arial MT" SIZE="2">
    <p style="margin-right: 4">368,477</font></td>
    <td WIDTH="3%" align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 2" bgcolor="#E6E6E6">
    <font FACE="Arial MT" SIZE="2">
    <p style="margin-right: 4">$</font></td>
    <td WIDTH="12%" align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 2" bgcolor="#E6E6E6">
    <font FACE="Arial MT" SIZE="2">
    <p style="margin-right: 4">302,677</font></td>
    <td WIDTH="3%" align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 2" bgcolor="#E6E6E6">
    <font FACE="Arial MT" SIZE="2">
    <p style="margin-right: 4">$</font></td>
    <td WIDTH="12%" align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 2" bgcolor="#E6E6E6">
    <font FACE="Arial MT" SIZE="2">
    <p style="margin-right: 4">292,985</font></td>
  </tr>
</table>
<font FACE="Times New Roman" SIZE="2"><b>
<p>15.&nbsp;&nbsp;&nbsp;&nbsp; Income taxes: </p>
</b>
<p ALIGN="JUSTIFY">The income tax recovery of $3.3 million for the three-month
period ended July 1, 2007 and of $0.2 million for the nine-month period ended
July 1, 2007 includes the recognition of previously unrecorded tax benefits in
the amount of $5.7 million relating to a prior taxation year. </p>
</font>
<p>&nbsp;</p>
<p>&nbsp;</p>
<p>&nbsp;</p>
<font FACE="Times New Roman PS" SIZE="2"><i>
<p align="right">GILDAN QUARTERLY REPORT - Q3 2007 p.29</p>
<hr color="#000000" size="5"></i></font>

</body>

</html>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.2
<SEQUENCE>3
<FILENAME>exh992.htm
<DESCRIPTION>Q3 2007 MANAGEMENT'S DISCUSSION AND ANALYSIS
<TEXT>
<html>

<head>
<title>Gildan Activewear Inc. - Exhibit 99.2 - Prepared By TNT Filings Inc.</title>
</head>

<body>

<p>&nbsp;</p>
<div style="border-top-style: solid; border-top-width: 1; padding-top: 1">
  <hr color="#000000" size="5">
</div>
<p align="center">
<img border="0" src="gildanq3cover.gif" width="683" height="403"></p>
<table CELLSPACING="0" BORDER="0" WIDTH="100%" cellpadding="0" style="border-collapse: collapse" bordercolor="#111111">
  <tr>
    <td WIDTH="25%">&nbsp;</td>
    <td WIDTH="25%">&nbsp;</td>
    <td WIDTH="41%"><font FACE="Times New Roman PSMT" SIZE="2">CONTENTS</font></td>
    <td WIDTH="9%" align="center">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="25%">&nbsp;</td>
    <td WIDTH="25%">&nbsp;</td>
    <td WIDTH="41%">&nbsp;</td>
    <td WIDTH="9%" align="center">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="25%">&nbsp;</td>
    <td WIDTH="25%">&nbsp;</td>
    <td WIDTH="41%">&nbsp;</td>
    <td WIDTH="9%" align="center">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="25%">&nbsp;</td>
    <td WIDTH="25%">&nbsp;</td>
    <td WIDTH="41%"><font FACE="Times New Roman PSMT" SIZE="2">MD&amp;A</font></td>
    <td WIDTH="9%" align="center">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="25%">&nbsp;</td>
    <td WIDTH="25%">&nbsp;</td>
    <td WIDTH="41%"><font FACE="Times New Roman PSMT" SIZE="2">
    <p style="margin-left: 15">Our Business</font></td>
    <td WIDTH="9%" align="center"><font FACE="Times New Roman PSMT" SIZE="2">2</font></td>
  </tr>
  <tr>
    <td WIDTH="25%">&nbsp;</td>
    <td WIDTH="25%">&nbsp;</td>
    <td WIDTH="41%"><font FACE="Times New Roman PSMT" SIZE="2">
    <p style="margin-left: 15">Strategy and Financial Objectives</font></td>
    <td WIDTH="9%" align="center"><font FACE="Times New Roman PSMT" SIZE="2">4</font></td>
  </tr>
  <tr>
    <td WIDTH="25%">&nbsp;</td>
    <td WIDTH="25%">&nbsp;</td>
    <td WIDTH="41%"><font FACE="Times New Roman PSMT" SIZE="2">
    <p style="margin-left: 15">Operating Results</font></td>
    <td WIDTH="9%" align="center"><font FACE="Times New Roman PSMT" SIZE="2">5</font></td>
  </tr>
  <tr>
    <td WIDTH="25%">&nbsp;</td>
    <td WIDTH="25%">&nbsp;</td>
    <td WIDTH="41%"><font FACE="Times New Roman PSMT" SIZE="2">
    <p style="margin-left: 15">Financial Condition</font></td>
    <td WIDTH="9%" align="center"><font FACE="Times New Roman PSMT" SIZE="2">9</font></td>
  </tr>
  <tr>
    <td WIDTH="25%">&nbsp;</td>
    <td WIDTH="25%">&nbsp;</td>
    <td WIDTH="41%"><font FACE="Times New Roman PSMT" SIZE="2">
    <p style="margin-left: 15">Liquidity and Capital Resources</font></td>
    <td WIDTH="9%" align="center"><font FACE="Times New Roman PSMT" SIZE="2">10</font></td>
  </tr>
  <tr>
    <td WIDTH="25%">&nbsp;</td>
    <td WIDTH="25%">&nbsp;</td>
    <td WIDTH="41%"><font FACE="Times New Roman PSMT" SIZE="2">
    <p style="margin-left: 15">Critical Accounting Estimates</font></td>
    <td WIDTH="9%" align="center"><font FACE="Times New Roman PSMT" SIZE="2">13</font></td>
  </tr>
  <tr>
    <td WIDTH="25%">&nbsp;</td>
    <td WIDTH="25%">&nbsp;</td>
    <td WIDTH="41%"><font FACE="Times New Roman PSMT" SIZE="2">
    <p style="margin-left: 15">Changes in Accounting Policies</font></td>
    <td WIDTH="9%" align="center"><font FACE="Times New Roman PSMT" SIZE="2">14</font></td>
  </tr>
  <tr>
    <td WIDTH="25%">&nbsp;</td>
    <td WIDTH="25%">&nbsp;</td>
    <td WIDTH="41%"><font FACE="Times New Roman PSMT" SIZE="2">
    <p style="margin-left: 15">Reconciliation and Definition of Non-GAAP
    Measures</font></td>
    <td WIDTH="9%" align="center"><font FACE="Times New Roman PSMT" SIZE="2">15</font></td>
  </tr>
  <tr>
    <td WIDTH="25%">&nbsp;</td>
    <td WIDTH="25%">&nbsp;</td>
    <td WIDTH="41%"><font FACE="Times New Roman PSMT" SIZE="2">
    <p style="margin-left: 15">Risks and Uncertainties</font></td>
    <td WIDTH="9%" align="center"><font FACE="Times New Roman PSMT" SIZE="2">16</font></td>
  </tr>
  <tr>
    <td WIDTH="25%">&nbsp;</td>
    <td WIDTH="25%">&nbsp;</td>
    <td WIDTH="41%"><font FACE="Times New Roman PSMT" SIZE="2">
    <p style="margin-left: 15">Forward-Looking Statements</font></td>
    <td WIDTH="9%" align="center"><font FACE="Times New Roman PSMT" SIZE="2">17</font></td>
  </tr>
  <tr>
    <td WIDTH="25%">&nbsp;</td>
    <td WIDTH="25%">&nbsp;</td>
    <td WIDTH="41%"><font FACE="Times New Roman PSMT" SIZE="2">Interim
    Consolidated Financial Statements</font></td>
    <td WIDTH="9%" align="center"><font FACE="Times New Roman PSMT" SIZE="2">19</font></td>
  </tr>
  <tr>
    <td WIDTH="25%">&nbsp;</td>
    <td WIDTH="25%">&nbsp;</td>
    <td WIDTH="41%"><font FACE="Times New Roman PSMT" SIZE="2">Notes to Interim
    Consolidated Financial Statements</font></td>
    <td WIDTH="9%" align="center"><font FACE="Times New Roman PSMT" SIZE="2">22</font></td>
  </tr>
</table>
<hr color="#000000" size="5"><p Style='page-break-before:always'>
<table CELLSPACING="0" BORDER="0" WIDTH="100%" cellpadding="0" style="border-collapse: collapse" bordercolor="#111111">
  <tr>
    <td width="475">
    <img border="0" src="gildansmlogo.jpg" width="88" height="20"></td>
    <td width="483" align="right"><font FACE="Times New Roman PS" SIZE="2"><i>
    MANAGEMENT'S DISCUSSION AND ANALYSIS</i></font></td>
  </tr>
</table>
<i>
<div style="border-style: solid; border-width: 1; padding-left: 4; padding-right: 4; padding-top: 1; padding-bottom: 1">
  <p ALIGN="JUSTIFY"><font size="2">This Management's discussion and analysis
  (MD&amp;A) comments on Gildan's operations, performance and financial condition as
  at and for the three months and nine months ended July 1, 2007 compared to the
  corresponding periods in the previous year. 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 as at and for the three months and nine months ended July
  1, 2007 and the related notes, and with our MD&amp;A for the year ended October 1,
  2006 (2006 Annual MD&amp;A), which is part of the fiscal 2006 Annual Report. This
  MD&amp;A is dated August 1, 2007. All amounts in this report are in U.S. dollars,
  unless otherwise noted. </font></p>
  <p ALIGN="JUSTIFY"><font size="2">All financial information contained in this
  interim MD&amp;A and in the 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;Non-GAAP Financial Measures&quot; on page 5 of this MD&amp;A. The unaudited
  consolidated financial statements and this MD&amp;A were reviewed by Gildan's
  Audit and Finance Committee and were approved by our Board of Directors.
  </font></p>
  <p ALIGN="JUSTIFY"><font size="2">Additional information about Gildan,
  including our 2006 Annual Information Form, is available on our website at <u>
  <font color="#0000FF">www.gildan.com</font></u>, on the SEDAR website at <u>
  <font color="#0000FF">www.sedar.com</font></u> and on the EDGAR section of the
  U.S. Securities and Exchange Commission website (including the Annual Report
  on Form 40-F) at <u><font color="#0000FF">www.sec.gov</font></u>. </font></p>
  <p><font size="2">This document contains forward-looking statements, which are
  qualified by reference to, and should be read together with the
  &quot;Forward-Looking Statements&quot; cautionary notice on page 17. </font></p>
  <p><font size="2">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 venture.
  </font></p>
  </i>
  <p>&nbsp;</div>
<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 FACE="Arial MT" color="#3988C1">Our Business</font></td>
  </tr>
</table>
<font SIZE="2">
<p ALIGN="JUSTIFY">Gildan is a vertically-integrated marketer and manufacturer
of activewear, socks and underwear. The Company operates in one business
segment, being high-volume, basic, frequently replenished, non-fashion apparel.
We are the leading supplier of activewear for the wholesale imprinted sportswear
market in the U.S. and Canada, and also a leading supplier for this market in
Europe. In 2005, as part of our growth strategy, we began to implement a major
initiative to sell our products into the mass-market retail channel in North
America. In conjunction with these plans, in fiscal 2006, we expanded our
product-line to include athletic socks and underwear. </p>
<p ALIGN="JUSTIFY">Effective July 6, 2006, Gildan completed the acquisition of
Kentucky Derby Hosiery Co., Inc. (Kentucky Derby), a U.S. hosiery manufacturer
in Hopkinsville, Kentucky. Gildan is using Kentucky Derby's experience and
distribution with mass-market retailers to enhance its platform to develop Gildan as a consumer brand in basic athletic socks, underwear and activewear. In
addition, Gildan is relocating Kentucky Derby sock manufacturing production to
its new technologically advanced state-of-the-art integrated facility in Central
America. </p>
<b>
<p>Our Products </p>
</b>
<p ALIGN="JUSTIFY">We specialize in large-scale marketing and manufacturing of
basic, non-fashion apparel products for customers requiring an efficient supply
chain and consistent product quality for high- volume, automatic replenishment
programs. Our product offering focuses on core basic activewear styles sold in
various fabrics, weights and colours. In fiscal 2006, we also introduced a
variety of styles of men's and boys' underwear and athletic socks into our
product-line. Typically, our product offering is characterized by low fashion
risk, since products are basic and produced in a limited range of sizes, colours
and styles. We sell activewear, namely T-shirts, sport shirts and fleece, in
large quantities to wholesale distributors as undecorated &quot;blanks&quot;, which are
subsequently decorated by screenprinters with designs and logos. Consumers
ultimately purchase the Company's products, with the Gildan label, in venues
such as sports, entertainment and corporate events, and travel and tourism
destinations. Other end-uses include work uniforms and similar applications to
convey individual, group and team identity. </p>
</font>
<table CELLSPACING="0" BORDER="0" WIDTH="100%" cellpadding="0" style="border-collapse: collapse" bordercolor="#111111">
  <tr>
    <td><font FACE="Times New Roman PS" SIZE="2"><i>
    <p align="right">GILDAN QUARTERLY REPORT &#150; Q3 2007 p.2</i></font></td>
  </tr>
</table>
<hr color="#000000" size="5"><p Style='page-break-before:always'>
<table CELLSPACING="0" BORDER="0" WIDTH="100%" cellpadding="0" style="border-collapse: collapse" bordercolor="#111111">
  <tr>
    <td width="472">
    <img border="0" src="gildansmlogo.jpg" width="88" height="20"></td>
    <td width="486" align="right"><font FACE="Times New Roman PS" SIZE="2"><i>
    MANAGEMENT'S DISCUSSION AND ANALYSIS</i></font></td>
  </tr>
</table>
<font SIZE="2">
<p>In the retail channel, we sell a variety of styles of men's and boys'
athletic socks and underwear complemented by our activewear product-line. </p>
<b>
<p>Our Manufacturing and Distribution Facilities </p>
</b>
<p ALIGN="JUSTIFY">To support our sales in the various markets, we have built
and are continuing to build modern manufacturing facilities located in Central
America and the Caribbean Basin. Our largest manufacturing hub in Central
America includes our first offshore integrated knitting, bleaching, dyeing,
finishing and cutting textile facility in Rio Nance, Honduras, which became
operational in 2002. In addition, during 2006, we completed the construction of
a state-of-the-art integrated sock manufacturing facility and began the
construction of a technologically advanced integrated facility for the
production of fleece. We commenced production at our sock facility in the first
quarter of fiscal 2007 and expect to ramp up this facility to full capacity
during the balance of fiscal 2007 and the first half of fiscal 2008. Production
at our fleece facility began in the third quarter of fiscal 2007 and we expect
to ramp up this facility to full capacity in the third fiscal quarter of 2008.
</p>
<p ALIGN="JUSTIFY">We also have established a vertically-integrated Caribbean
Basin manufacturing hub with a textile facility in Bella Vista, Dominican
Republic, which began production in fiscal 2005 and is currently running at a
comparable scale of production to our mature textile facility in Honduras. We
will continue to maximize production levels and cost efficiencies at the
Dominican Republic facility during the balance of fiscal 2007. </p>
<p ALIGN="JUSTIFY">Consistent with our strategy to consolidate our sock
production at our new facility in Honduras, on May 30, 2007, we announced the
closure of two sock facilities located in Mount Airy, North Carolina, which will
be completed in the fourth quarter of fiscal 2007. Following these closures, we
will continue to operate one remaining U.S. knitting facility in Hillsville,
Virginia and use third party contractors to source certain non-core specialty
sock products. </p>
<p>Our sewing facilities are located in Central America and the Caribbean Basin.
We also utilize third-party sewing contractors in the Caribbean Basin to
complement our vertically-integrated production. </p>
<p ALIGN="JUSTIFY">On March 27, 2007, we announced plans to close our two
remaining textile facilities in Montreal, Canada, as well as our cutting
facility in Bombay, N.Y., in the fourth quarter of fiscal 2007. In addition, we
closed our two sewing facilities in Mexico, which had been supplied with fabric
from Gildan's Canadian textile operations. Subsequent to the above closures, all
of our manufacturing for T-shirts, fleece, sport shirts and underwear will be
consolidated into our vertically-integrated manufacturing hubs in Central
America and the Caribbean Basin, where we are investing in major capacity
expansion projects, as described above. </p>
<p ALIGN="JUSTIFY">CanAm Yarns, LLC (CanAm), our joint-venture company with
Frontier Spinning Mills, Inc. (Frontier), operates yarn-spinning facilities in
Georgia and North Carolina. CanAm's yarn-spinning operations, together with
supply agreements currently in place with Frontier and other third-party yarn
providers, serve to meet our yarn requirements. </p>
<p ALIGN="JUSTIFY">We distribute our products for the wholesale imprinted
sportswear market in the U.S. primarily out of our company-owned distribution
centre in Eden, North Carolina, and use third-party warehouses in California;
Canada; Mexico and Europe to service our customers in these markets. We also
operate a retail distribution centre in Martinsville, Virginia dedicated to
servicing the mass-market retail channel. </p>
<p>Our corporate head office is located in Montreal, Canada and we employ
approximately 15,000 full-time employees worldwide. </p>
<b>
<p>Market Overview </p>
</b>
<p ALIGN="JUSTIFY">Our target market for activewear, socks and underwear 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 for the screenprint market are not imprinted or
embroidered by manufacturers. </p>
</font>
<table CELLSPACING="0" BORDER="0" WIDTH="100%" cellpadding="0" style="border-collapse: collapse" bordercolor="#111111">
  <tr>
    <td><font FACE="Times New Roman PS" SIZE="2"><i>
    <p align="right">GILDAN QUARTERLY REPORT &#150; Q3 2007 p.3</i></font></td>
  </tr>
</table>
<hr color="#000000" size="5"><p Style='page-break-before:always'>
<table CELLSPACING="0" BORDER="0" WIDTH="100%" cellpadding="0" style="border-collapse: collapse" bordercolor="#111111">
  <tr>
    <td width="475">
    <img border="0" src="gildansmlogo.jpg" width="88" height="20"></td>
    <td width="483" align="right"><font FACE="Times New Roman PS" SIZE="2"><i>
    MANAGEMENT'S DISCUSSION AND ANALYSIS</i></font></td>
  </tr>
</table>
<font SIZE="2">
<p ALIGN="JUSTIFY">The apparel market for our products is highly competitive.
Competition is generally based upon price, with reliable quality and service
also being key requirements for success. Our primary competitors in North
America are the major U.S.-based manufacturers of basic branded activewear for
the wholesale and retail channels, which include Hanesbrands Inc., Berkshire
Hathaway Inc. through its subsidiaries Fruit of the Loom, Inc. and Russell
Corporation, Delta Apparel, Inc., and Anvil Knitwear, Inc. The competition in
the European wholesale imprinted activewear market is similar to that in North
America, as we compete primarily with the European divisions of the larger
U.S.-based manufacturers. </p>
<p align="justify">Due to wholesaler and retailer consolidation, the customer
base to which we sell and are targeting to sell our products is composed of a
relatively small number of significant customers. </p>
<p ALIGN="JUSTIFY">While the majority of our sales is currently derived from the
sale of activewear through the wholesale distribution channel, in 2006 we
continued to expand our entry into the retail channel, concentrating on regional
retailers that we were able to service well with the production capacity that we
had available. During fiscal 2007, we continued to expand programs with regional
retailers. In March 2007, we began shipments of our first branded sock program
to a U.S. national retailer and in June 2007, we began shipments of a major
private label sock program to a second U.S. national mass-market retailer. As we
ramp up our major capacity expansion projects in Central America, we are
increasingly better positioned to service major mass-market retailers. We
believe that providing a value proposition predicated on reliable product
quality and comfort, combined with efficient customer service and competitive
pricing, the same factors that contribute to our success in the wholesale
channel, will allow us to be successful in leveraging the same business model in
the retail channel. </p>
<p>We believe that growth for our activewear products has been driven by several
market trends such as the following: </p>
<ul>
  <li>
<p style="margin-top: 0; margin-bottom: 0">continued use of activewear for event merchandising (such as
concerts, festivals, etc.); </p>
  </li>
  <li>
<p style="margin-top: 0; margin-bottom: 0">continued evolution of the entertainment/sports licensing and
merchandising businesses; </p>
  </li>
  <li>
<p style="margin-top: 0; margin-bottom: 0">the growing use of activewear for uniform applications; </p>
  </li>
  <li>
<p style="margin-top: 0; margin-bottom: 0">the growing use of activewear for corporate promotions; </p>
  </li>
  <li>
<p style="margin-top: 0; margin-bottom: 0">continued increase in use of activewear products for travel and
tourism; </p>
  </li>
  <li>
<p style="margin-top: 0; margin-bottom: 0">an increased emphasis on physical fitness; and </p>
  </li>
  <li>
<p style="margin-top: 0; margin-bottom: 0">a greater use and acceptance of casual dress in the workplace. </p>
  </li>
</ul>
<p ALIGN="JUSTIFY">In addition, 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>
<table CELLSPACING="0" BORDER="0" WIDTH="100%" cellpadding="0" style="border-collapse: collapse" bordercolor="#111111">
  <tr>
    <td style="border-bottom-style: solid; border-bottom-width: 1">
    <font FACE="Arial MT" SIZE="3" color="#3988C1">Strategy and Financial
    Objectives</font></td>
  </tr>
</table>
<p ALIGN="JUSTIFY">We believe that our success in developing our
vertically-integrated manufacturing hubs has allowed us to deliver superior
value to our customers with low prices, consistent product quality and a
reliable supply chain, and has been the main reason that we have been able to
rapidly increase our market presence and establish our market leadership in the
imprinted sportswear market. These are the same factors that management believes
will support Gildan's success in building a consumer brand in the retail
channel. </p>
<p>We are able to price our products competitively because of our success in
reducing operating costs. We accomplish this by: </p>
<ul>
  <li>
<p style="margin-top: 0; margin-bottom: 0">investing in modern, automated equipment and facilities; </p>
  </li>
  <li>
<p style="margin-top: 0; margin-bottom: 0">increasing our capacity through the development of integrated regional hubs in
Central America and the Caribbean Basin, where we benefit from strategic
locations and favourable international trade agreements; and <br>
&nbsp;</p>
  </li>
</ul>
</font>
<table CELLSPACING="0" BORDER="0" WIDTH="100%" cellpadding="0" style="border-collapse: collapse" bordercolor="#111111">
  <tr>
    <td><font FACE="Times New Roman PS" SIZE="2"><i>
    <p align="right">GILDAN QUARTERLY REPORT &#150; Q3 2007 p.4</i></font></td>
  </tr>
</table>
<hr color="#000000" size="5"><p Style='page-break-before:always'>
<table CELLSPACING="0" BORDER="0" WIDTH="100%" cellpadding="0" style="border-collapse: collapse" bordercolor="#111111">
  <tr>
    <td width="475">
    <img border="0" src="gildansmlogo.jpg" width="88" height="20"></td>
    <td width="483" align="right"><font FACE="Times New Roman PS" SIZE="2"><i>
    MANAGEMENT'S DISCUSSION AND ANALYSIS</i></font></td>
  </tr>
</table>
<font SIZE="2">
<ul>
  <li>focusing on producing a narrow range of basic, high-volume
product-lines, which allows us to maximize production efficiencies. </li>
</ul>
<p ALIGN="JUSTIFY">We are implementing a five-year plan with the objective of
approximately tripling our unit sales volumes by 2010 and continuing to achieve
significant manufacturing efficiencies. Our growth strategy comprises the
following four initiatives: </p>
<ol>
  <li>Continue to increase market share in the U.S. wholesale imprinted
  sportswear market in all product categories; </li>
  <li>Leverage our successful business model to penetrate the mass-market retail
  channel and develop Gildan as a consumer brand; </li>
  <li>Increase penetration in Europe and other international markets; and </li>
  <li>Support unit sales growth and maintain pricing competitiveness through
  continued significant investments in low-cost production capacity. </li>
</ol>
<p ALIGN="JUSTIFY">We are subject to a variety of business risks that may affect
our ability to maintain our current market share and profitability, as well as
our ability to achieve our long-term strategic objectives. These risks are
described in the &quot;Risks and Uncertainties&quot; section of our 2006 Annual MD&amp;A. As
well, the nature of the Company's growth strategy involves risks related to
certain assumptions underlying unit sales growth, production capacity growth and
cost reductions, among others. Notably, our planned growth in market share
depends to a significant extent on the successful start-up and ramp-up of new
offshore facilities. There can be no assurances that we will achieve our planned
market share growth, retail market penetration or capacity increases. </p>
<b>
<table CELLSPACING="0" BORDER="0" WIDTH="100%" cellpadding="0" style="border-collapse: collapse" bordercolor="#111111">
  <tr>
    <td style="border-bottom-style: solid; border-bottom-width: 1">
    <font FACE="Arial MT" SIZE="3" color="#3988C1">Operating Results</font></td>
  </tr>
</table>
<p>Non-GAAP Financial Measures </p>
</b>
<p ALIGN="JUSTIFY">We use non-GAAP measures to assess our operating performance.
Securities regulations require that companies caution readers that earnings and
other measures adjusted to a basis other than GAAP do not have standardized
meanings and are unlikely to be comparable to similar measures used by other
companies. Accordingly, they should not be considered in isolation. We use non-GAAP
measures such as adjusted net earnings, adjusted diluted EPS, EBITDA, and total
indebtedness and net indebtedness to measure our performance from one period to
the next without the variation caused by certain adjustments that could
potentially distort the analysis of trends in our operating performance, and
because we believe such measures provide meaningful information on the Company's
financial condition and operating results. </p>
<p ALIGN="JUSTIFY">We refer the reader to page 15 for the definition and
complete reconciliation of all non-GAAP financial measures used and presented by
the Company to the most directly comparable GAAP financial measures. </p>
<b>
<p>Summary of Quarterly Results </p>
</b>
<p ALIGN="JUSTIFY">The following table sets forth certain summarized unaudited
quarterly financial data for the eight (8) most recently completed quarters.
This quarterly information is unaudited but has been prepared on the same basis
as the annual audited Consolidated Financial Statements. The operating results
for any quarter are not necessarily indicative of the results to be expected for
any future period. </p>
<p style="text-indent: -12; margin-left: 12; margin-top: 0; margin-bottom: 0">&nbsp;</p>
</font>
<table CELLSPACING="0" BORDER="0" WIDTH="100%" cellpadding="0" style="border-collapse: collapse" bordercolor="#111111">
  <tr>
    <td><font FACE="Times New Roman PS" SIZE="2"><i>
    <p align="right">GILDAN QUARTERLY REPORT &#150; Q3 2007 p.5</i></font></td>
  </tr>
</table>
<hr color="#000000" size="5"><p Style='page-break-before:always'>
<table CELLSPACING="0" BORDER="0" WIDTH="100%" cellpadding="0" style="border-collapse: collapse" bordercolor="#111111">
  <tr>
    <td width="475">
    <img border="0" src="gildansmlogo.jpg" width="88" height="20"></td>
    <td width="483" align="right"><font FACE="Times New Roman PS" SIZE="2"><i>
    MANAGEMENT'S DISCUSSION AND ANALYSIS</i></font></td>
  </tr>
  <tr>
    <td width="475">&nbsp;</td>
    <td width="483" align="right">&nbsp;</td>
  </tr>
</table>
<table CELLSPACING="0" BORDER="0" WIDTH="100%" cellpadding="0" style="border-collapse: collapse" bordercolor="#111111">
  <tr>
    <td WIDTH="28%" style="border-bottom: 1px solid #000000">&nbsp;</td>
    <td WIDTH="9%" align="right" style="border-bottom: 1px solid #000000">
    <p style="margin-right: 6">&nbsp;</td>
    <td WIDTH="9%" align="right" style="border-bottom: 1px solid #000000">
    <p style="margin-right: 6">&nbsp;</td>
    <td WIDTH="9%" align="right" style="border-right-style: solid; border-right-width: 1; border-bottom: 1px solid #000000">
    <p style="margin-right: 6">
    <font SIZE="2">2007</font></td>
    <td WIDTH="9%" align="right" style="border-left-style: solid; border-left-width: 1; border-bottom: 1px solid #000000">
    <p style="margin-right: 6">&nbsp;</td>
    <td WIDTH="9%" align="right" style="border-bottom: 1px solid #000000">
    <p style="margin-right: 6">&nbsp;</td>
    <td WIDTH="9%" align="right" style="border-bottom: 1px solid #000000">
    <p style="margin-right: 6">&nbsp;</td>
    <td WIDTH="9%" align="right" style="border-right-style: solid; border-right-width: 1; border-bottom: 1px solid #000000">
    <p style="margin-right: 6">
    <font SIZE="2">2006</font></td>
    <td WIDTH="9%" align="right" style="border-left-style: solid; border-left-width: 1; border-right-style: solid; border-right-width: 1; border-bottom: 1px solid #000000">
    <p style="margin-right: 6">
    <font SIZE="2">2005</font></td>
  </tr>
  <tr>
    <td WIDTH="28%" style="border-bottom: 1px solid #000000"><font SIZE="2"><i>
    (in $ millions, except per share amounts)</i></font></td>
    <td WIDTH="9%" align="right" style="border-bottom: 1px solid #000000">
    <p style="margin-right: 6">
    <font SIZE="2">Q3</font></td>
    <td WIDTH="9%" align="right" style="border-bottom: 1px solid #000000">
    <p style="margin-right: 6">
    <font SIZE="2">Q2</font></td>
    <td WIDTH="9%" align="right" style="border-bottom: 1px solid #000000; border-right-style:solid; border-right-width:1">
    <p style="margin-right: 6">
    <font SIZE="2">Q1</font></td>
    <td WIDTH="9%" align="right" style="border-bottom: 1px solid #000000; border-left-style:solid; border-left-width:1">
    <p style="margin-right: 6">
    <font SIZE="2">Q4</font></td>
    <td WIDTH="9%" align="right" style="border-bottom: 1px solid #000000">
    <p style="margin-right: 6">
    <font SIZE="2">Q3</font></td>
    <td WIDTH="9%" align="right" style="border-bottom: 1px solid #000000">
    <p style="margin-right: 6">
    <font SIZE="2">Q2</font></td>
    <td WIDTH="9%" align="right" style="border-bottom: 1px solid #000000; border-right-style:solid; border-right-width:1">
    <p style="margin-right: 6">
    <font SIZE="2">Q1</font></td>
    <td WIDTH="9%" align="right" style="border-bottom: 1px solid #000000; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1">
    <p style="margin-right: 6">
    <font SIZE="2">Q4</font></td>
  </tr>
  <tr>
    <td WIDTH="28%"><font SIZE="2">Sales</font></td>
    <td WIDTH="9%" align="right">
    <p style="margin-right: 6"><font SIZE="2">291.6</font></td>
    <td WIDTH="9%" align="right">
    <p style="margin-right: 6"><font SIZE="2">232.1</font></td>
    <td WIDTH="9%" align="right">
    <p style="margin-right: 6"><font SIZE="2">185.8</font></td>
    <td WIDTH="9%" align="right">
    <p style="margin-right: 6"><font SIZE="2">235.2</font></td>
    <td WIDTH="9%" align="right">
    <p style="margin-right: 6"><font SIZE="2">233.9</font></td>
    <td WIDTH="9%" align="right">
    <p style="margin-right: 6"><font SIZE="2">183.8</font></td>
    <td WIDTH="9%" align="right">
    <p style="margin-right: 6"><font SIZE="2">120.3</font></td>
    <td WIDTH="9%" align="right">
    <p style="margin-right: 6"><font SIZE="2">180.7</font></td>
  </tr>
  <tr>
    <td WIDTH="28%"><font SIZE="2">Net earnings</font></td>
    <td WIDTH="9%" align="right">
    <p style="margin-right: 6"><font SIZE="2">52.4</font></td>
    <td WIDTH="9%" align="right">
    <p style="margin-right: 6"><font SIZE="2">21.1</font></td>
    <td WIDTH="9%" align="right">
    <p style="margin-right: 6"><font SIZE="2">15.6</font></td>
    <td WIDTH="9%" align="right">
    <p style="margin-right: 6"><font SIZE="2">16.8</font></td>
    <td WIDTH="9%" align="right">
    <p style="margin-right: 6"><font SIZE="2">42.8</font></td>
    <td WIDTH="9%" align="right">
    <p style="margin-right: 6"><font SIZE="2">31.0</font></td>
    <td WIDTH="9%" align="right">
    <p style="margin-right: 6"><font SIZE="2">16.2</font></td>
    <td WIDTH="9%" align="right">
    <p style="margin-right: 6"><font SIZE="2">29.2</font></td>
  </tr>
  <tr>
    <td WIDTH="28%"><font SIZE="2">Net earnings per share</font></td>
    <td WIDTH="9%" align="right">
    <p style="margin-right: 6">&nbsp;</td>
    <td WIDTH="9%" align="right">
    <p style="margin-right: 6">&nbsp;</td>
    <td WIDTH="9%" align="right">
    <p style="margin-right: 6">&nbsp;</td>
    <td WIDTH="9%" align="right">
    <p style="margin-right: 6">&nbsp;</td>
    <td WIDTH="9%" align="right">
    <p style="margin-right: 6">&nbsp;</td>
    <td WIDTH="9%" align="right">
    <p style="margin-right: 6">&nbsp;</td>
    <td WIDTH="9%" align="right">
    <p style="margin-right: 6">&nbsp;</td>
    <td WIDTH="9%" align="right">
    <p style="margin-right: 6">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="28%"><font SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    Basic EPS</font></td>
    <td WIDTH="9%" align="right">
    <p style="margin-right: 6"><font SIZE="2">0.44</font></td>
    <td WIDTH="9%" align="right">
    <p style="margin-right: 6"><font SIZE="2">0.18</font></td>
    <td WIDTH="9%" align="right">
    <p style="margin-right: 6"><font SIZE="2">0.13</font></td>
    <td WIDTH="9%" align="right">
    <p style="margin-right: 6"><font SIZE="2">0.14</font></td>
    <td WIDTH="9%" align="right">
    <p style="margin-right: 6"><font SIZE="2">0.36</font></td>
    <td WIDTH="9%" align="right">
    <p style="margin-right: 6"><font SIZE="2">0.26</font></td>
    <td WIDTH="9%" align="right">
    <p style="margin-right: 6"><font SIZE="2">0.14</font></td>
    <td WIDTH="9%" align="right">
    <p style="margin-right: 6"><font SIZE="2">0.24</font></td>
  </tr>
  <tr>
    <td WIDTH="28%"><font SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    Diluted EPS</font></td>
    <td WIDTH="9%" align="right">
    <p style="margin-right: 6"><font SIZE="2">0.43</font></td>
    <td WIDTH="9%" align="right">
    <p style="margin-right: 6"><font SIZE="2">0.17</font></td>
    <td WIDTH="9%" align="right">
    <p style="margin-right: 6"><font SIZE="2">0.13</font></td>
    <td WIDTH="9%" align="right">
    <p style="margin-right: 6"><font SIZE="2">0.14</font></td>
    <td WIDTH="9%" align="right">
    <p style="margin-right: 6"><font SIZE="2">0.35</font></td>
    <td WIDTH="9%" align="right">
    <p style="margin-right: 6"><font SIZE="2">0.26</font></td>
    <td WIDTH="9%" align="right">
    <p style="margin-right: 6"><font SIZE="2">0.13</font></td>
    <td WIDTH="9%" align="right">
    <p style="margin-right: 6"><font SIZE="2">0.24</font></td>
  </tr>
  <tr>
    <td WIDTH="28%"><font SIZE="2">Total assets</font></td>
    <td WIDTH="9%" align="right">
    <p style="margin-right: 6"><font SIZE="2">825.0</font></td>
    <td WIDTH="9%" align="right">
    <p style="margin-right: 6"><font SIZE="2">795.6</font></td>
    <td WIDTH="9%" align="right">
    <p style="margin-right: 6"><font SIZE="2">715.8</font></td>
    <td WIDTH="9%" align="right">
    <p style="margin-right: 6"><font SIZE="2">723.3</font></td>
    <td WIDTH="9%" align="right">
    <p style="margin-right: 6"><font SIZE="2">673.1</font></td>
    <td WIDTH="9%" align="right">
    <p style="margin-right: 6"><font SIZE="2">643.8</font></td>
    <td WIDTH="9%" align="right">
    <p style="margin-right: 6"><font SIZE="2">609.6</font></td>
    <td WIDTH="9%" align="right">
    <p style="margin-right: 6"><font SIZE="2">597.5</font></td>
  </tr>
  <tr>
    <td WIDTH="28%"><font SIZE="2">Total long-term financial liabilities<sup>1</sup></font></td>
    <td WIDTH="9%" align="right">
    <p style="margin-right: 6"><font SIZE="2">73.5</font></td>
    <td WIDTH="9%" align="right">
    <p style="margin-right: 6"><font SIZE="2">88.4</font></td>
    <td WIDTH="9%" align="right">
    <p style="margin-right: 6"><font SIZE="2">44.2</font></td>
    <td WIDTH="9%" align="right">
    <p style="margin-right: 6"><font SIZE="2">47.1</font></td>
    <td WIDTH="9%" align="right">
    <p style="margin-right: 6"><font SIZE="2">46.4</font></td>
    <td WIDTH="9%" align="right">
    <p style="margin-right: 6"><font SIZE="2">64.8</font></td>
    <td WIDTH="9%" align="right">
    <p style="margin-right: 6"><font SIZE="2">65.4</font></td>
    <td WIDTH="9%" align="right">
    <p style="margin-right: 6"><font SIZE="2">64.1</font></td>
  </tr>
  <tr>
    <td WIDTH="28%"><font SIZE="2">Average number of shares</font></td>
    <td WIDTH="9%" align="right">
    <p style="margin-right: 6">&nbsp;</td>
    <td WIDTH="9%" align="right">
    <p style="margin-right: 6">&nbsp;</td>
    <td WIDTH="9%" align="right">
    <p style="margin-right: 6">&nbsp;</td>
    <td WIDTH="9%" align="right">
    <p style="margin-right: 6">&nbsp;</td>
    <td WIDTH="9%" align="right">
    <p style="margin-right: 6">&nbsp;</td>
    <td WIDTH="9%" align="right">
    <p style="margin-right: 6">&nbsp;</td>
    <td WIDTH="9%" align="right">
    <p style="margin-right: 6">&nbsp;</td>
    <td WIDTH="9%" align="right">
    <p style="margin-right: 6">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="28%"><font SIZE="2">&nbsp; outstanding <i>(in thousands)</i></font></td>
    <td WIDTH="9%" align="right">
    <p style="margin-right: 6">&nbsp;</td>
    <td WIDTH="9%" align="right">
    <p style="margin-right: 6">&nbsp;</td>
    <td WIDTH="9%" align="right">
    <p style="margin-right: 6">&nbsp;</td>
    <td WIDTH="9%" align="right">
    <p style="margin-right: 6">&nbsp;</td>
    <td WIDTH="9%" align="right">
    <p style="margin-right: 6">&nbsp;</td>
    <td WIDTH="9%" align="right">
    <p style="margin-right: 6">&nbsp;</td>
    <td WIDTH="9%" align="right">
    <p style="margin-right: 6">&nbsp;</td>
    <td WIDTH="9%" align="right">
    <p style="margin-right: 6">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="28%"><font SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    Basic</font></td>
    <td WIDTH="9%" align="right">
    <p style="margin-right: 6"><font SIZE="2">120,359</font></td>
    <td WIDTH="9%" align="right">
    <p style="margin-right: 6"><font SIZE="2">120,320</font></td>
    <td WIDTH="9%" align="right">
    <p style="margin-right: 6"><font SIZE="2">120,278</font></td>
    <td WIDTH="9%" align="right">
    <p style="margin-right: 6"><font SIZE="2">120,209</font></td>
    <td WIDTH="9%" align="right">
    <p style="margin-right: 6"><font SIZE="2">120,155</font></td>
    <td WIDTH="9%" align="right">
    <p style="margin-right: 6"><font SIZE="2">120,108</font></td>
    <td WIDTH="9%" align="right">
    <p style="margin-right: 6"><font SIZE="2">119,941</font></td>
    <td WIDTH="9%" align="right">
    <p style="margin-right: 6"><font SIZE="2">119,848</font></td>
  </tr>
  <tr>
    <td WIDTH="28%" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    Diluted</font></td>
    <td WIDTH="9%" align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <p style="margin-right: 6">
    <font SIZE="2">121,599</font></td>
    <td WIDTH="9%" align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <p style="margin-right: 6">
    <font SIZE="2">121,529</font></td>
    <td WIDTH="9%" align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <p style="margin-right: 6">
    <font SIZE="2">121,447</font></td>
    <td WIDTH="9%" align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <p style="margin-right: 6">
    <font SIZE="2">121,340</font></td>
    <td WIDTH="9%" align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <p style="margin-right: 6">
    <font SIZE="2">121,254</font></td>
    <td WIDTH="9%" align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <p style="margin-right: 6">
    <font SIZE="2">121,294</font></td>
    <td WIDTH="9%" align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <p style="margin-right: 6">
    <font SIZE="2">121,119</font></td>
    <td WIDTH="9%" align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <p style="margin-right: 6">
    <font SIZE="2">120,828</font></td>
  </tr>
</table>
<font style="font-size: 9pt"><i><sup>
<p>1 </sup>Represents sum of long-term debt, future income taxes and
non-controlling interest. <br>
All earnings per share and share data are stated after the May 2007 stock split.</p>
</i></font><font SIZE="2">
<p ALIGN="JUSTIFY">The activewear business is seasonal and we have historically
experienced quarterly fluctuations in operating results. Typically, demand for
our T-shirts 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. Demand for fleece is typically highest
in the third and fourth quarters of each fiscal year. The seasonality of
specific product-lines is consistent with that experienced by other companies in
the activewear industry. As a result of the historical seasonal sales trends, 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. For our sock products, demand is typically highest in the first and
fourth quarters of each fiscal year, stimulated largely by the need to support
requirements for the back-to-school period and peak retail selling during the
Christmas holiday season. Management anticipates that the seasonality we have
historically experienced will continue in the future, although it is expected to
be somewhat mitigated by our product diversification. </p>
<p align="justify">Material restructuring and other charges impacted net
earnings in the second and third quarters of fiscal 2007 and the fourth quarter
of fiscal 2006 as discussed on page 7. </p>
<b>
<p>Sales </p>
</b>
<p ALIGN="JUSTIFY">Sales of $291.6 million for the three months ended July 1,
2007 grew 24.7% from $233.9 million in the third quarter of fiscal 2006. The
increase in sales was due to $30.5 million of sock sales pursuant to the
acquisition of Kentucky Derby and an 11.6% increase in unit sales volumes for
activewear, partially offset by a slight reduction in unit selling prices for
activewear of approximately 0.5% compared to the same period last year. For the
nine months ended July 1, 2007, sales were $709.6 million, up 31.9% compared to
the same period last year. The growth in sales reflected $105.9 million of sock
sales, an increase of 12.2% in unit sales volumes for activewear and a
higher-valued activewear product-mix, partially offset by a decrease in unit
selling prices for activewear compared to the same period last year. Excluding
the sock product-line, sales were up 11.6% for the third quarter of fiscal 2007
and 12.2% on a year-to-date basis compared to the same periods of fiscal 2006.
</p>
<p ALIGN="JUSTIFY">Market growth and share data presented for the U.S. wholesale
distributor channel is based on the S.T.A.R.S. Report produced by ACNielsen
Market Decisions. The table below summarizes the S.T.A.R.S. data for market
shares and industry growth in the U.S. distributor channel for the quarter ended
June 30, 2007:<b> </p>
</b></font>
<table CELLSPACING="0" BORDER="0" WIDTH="100%" cellpadding="0" style="border-collapse: collapse" bordercolor="#111111">
  <tr>
    <td WIDTH="20%">&nbsp;</td>
    <td WIDTH="40%" COLSPAN="2" align="right"><font SIZE="2"><b>Three months
    ended June 30</b></font></td>
    <td WIDTH="40%" COLSPAN="2" align="right"><font SIZE="2"><b>Three months
    ended June 30</b></font></td>
  </tr>
  <tr>
    <td WIDTH="20%" style="border-bottom: 1px solid #000000">&nbsp;</td>
    <td WIDTH="19%" align="right" style="border-bottom: 1px solid #000000">&nbsp;</td>
    <td WIDTH="20%" align="right" style="border-bottom: 1px solid #000000">
    <font SIZE="2"><b>2007 vs 2006</b></font></td>
    <td WIDTH="20%" align="right" style="border-bottom: 1px solid #000000">
    <font SIZE="2"><b>2007</b></font></td>
    <td WIDTH="20%" align="right" style="border-bottom: 1px solid #000000">
    <font SIZE="2"><b>2006</b></font></td>
  </tr>
  <tr>
    <td WIDTH="20%" style="border-bottom: 1px solid #000000">&nbsp;</td>
    <td WIDTH="40%" COLSPAN="2" align="right" style="border-bottom: 1px solid #000000">
    <font SIZE="2"><b>Unit Growth&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </b></font></td>
    <td WIDTH="40%" COLSPAN="2" align="right" style="border-bottom: 1px solid #000000">
    <font SIZE="2"><b>Market Share&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </b></font></td>
  </tr>
  <tr>
    <td WIDTH="20%" style="border-bottom: 1px solid #000000">&nbsp;</td>
    <td WIDTH="19%" align="right" style="border-bottom: 1px solid #000000">
    <font SIZE="2"><b>Gildan</b></font></td>
    <td WIDTH="20%" align="right" style="border-bottom: 1px solid #000000">
    <font SIZE="2"><b>Industry</b></font></td>
    <td WIDTH="20%" align="right" style="border-bottom: 1px solid #000000">
    <font SIZE="2"><b>Gildan</b></font></td>
    <td WIDTH="20%" align="right" style="border-bottom: 1px solid #000000">
    <font SIZE="2"><b>Gildan</b></font></td>
  </tr>
  <tr>
    <td WIDTH="20%"><font SIZE="2">All Products</font></td>
    <td WIDTH="19%" align="right"><font SIZE="2">13.9%</font></td>
    <td WIDTH="20%" align="right"><font SIZE="2">3.0%</font></td>
    <td WIDTH="20%" align="right"><font SIZE="2"><b>47.6%</b></font></td>
    <td WIDTH="20%" align="right"><font SIZE="2">43.6%</font></td>
  </tr>
  <tr>
    <td WIDTH="20%"><font SIZE="2">T-shirts</font></td>
    <td WIDTH="19%" align="right"><font SIZE="2">13.4%</font></td>
    <td WIDTH="20%" align="right"><font SIZE="2">3.0%</font></td>
    <td WIDTH="20%" align="right"><font SIZE="2"><b>48.3%</b></font></td>
    <td WIDTH="20%" align="right"><font SIZE="2">44.5%</font></td>
  </tr>
  <tr>
    <td WIDTH="20%"><font SIZE="2">Fleece</font></td>
    <td WIDTH="19%" align="right"><font SIZE="2">57.9%</font></td>
    <td WIDTH="20%" align="right"><font SIZE="2">17.4%</font></td>
    <td WIDTH="20%" align="right"><font SIZE="2"><b>42.2%</b></font></td>
    <td WIDTH="20%" align="right"><font SIZE="2">32.3%</font></td>
  </tr>
  <tr>
    <td WIDTH="20%" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2">Sport shirts</font></td>
    <td WIDTH="19%" align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2">3.6%</font></td>
    <td WIDTH="20%" align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2">(3.6)%</font></td>
    <td WIDTH="20%" align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2"><b>34.0%</b></font></td>
    <td WIDTH="20%" align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2">32.7%</font></td>
  </tr>
</table>
<font SIZE="2">
<p style="text-indent: -12; margin-left: 12; margin-top: 0; margin-bottom: 0">&nbsp;</p>
</font>
<table CELLSPACING="0" BORDER="0" WIDTH="100%" cellpadding="0" style="border-collapse: collapse" bordercolor="#111111">
  <tr>
    <td><font FACE="Times New Roman PS" SIZE="2"><i>
    <p align="right">GILDAN QUARTERLY REPORT &#150; Q3 2007 p.6</i></font></td>
  </tr>
</table>
<hr color="#000000" size="5"><p Style='page-break-before:always'>
<table CELLSPACING="0" BORDER="0" WIDTH="100%" cellpadding="0" style="border-collapse: collapse" bordercolor="#111111">
  <tr>
    <td width="475">
    <img border="0" src="gildansmlogo.jpg" width="88" height="20"></td>
    <td width="483" align="right"><font FACE="Times New Roman PS" SIZE="2"><i>
    MANAGEMENT'S DISCUSSION AND ANALYSIS</i></font></td>
  </tr>
</table>
<font SIZE="2">
<p ALIGN="JUSTIFY">The growth in activewear unit sales was primarily due to
continuing market share penetration in all product categories in the U.S.
distributor channel. Growth in overall industry shipments from U.S. distributors
to screenprinters in the June quarter was 3.0%. In the T-shirt category, we grew
unit volumes by 13.4% for the three months ended June 30, 2007 compared to the
same period last year, and increased our leading share in this category to
48.3%. In the fleece category, our volume growth of 57.9% significantly exceeded
that of the industry, and our leading market share increased to 42.2%. We
increased our leading brand position in sport shirts by achieving a 34.0% market
share, and our volume grew in this segment by 3.6%, compared with an overall
decline of 3.6% for the industry. </p>
<p align="justify">Growth in Gildan's activewear sales in international markets
in the third quarter was strong. In particular, unit shipments in Europe
increased 26.8% compared with the third quarter of fiscal 2006. </p>
<p align="justify">In June, we began shipment of a major private label sock
program to a large national retailer. </p>
<b>
<p>Gross Profit </p>
</b>
<p ALIGN="JUSTIFY">Gross profit for the third quarter of fiscal 2007 was $94.4
million, or 32.4% of sales, compared to $75.7 million, or 32.4% of sales in the
third quarter of fiscal 2006. Higher margins for activewear were offset by the
impact of margins from the sale of socks, which do not yet reflect the cost
synergies from the rationalization of our sock manufacturing operations. Our
major new branded and private label retail sock programs have been priced based
on the ramped-up cost structure for our new Honduran sock facility. However, in
the third quarter, a large proportion of socks for these programs continued to
be supplied from U.S. sock manufacturing facilities, which as previously
announced, will be closed by the end of August 2007, as well as from high-cost
outside contractors. We expect to achieve significant improvement in gross
margins for our sock product-line as we progress with the ramp-up of our new
state-of-the-art sock manufacturing facility in Honduras. Excluding the impact
of sock sales, gross margins in the third quarter of fiscal 2007 were 34.7%
compared to gross margins of 32.4% for the same period last year. The increase
in gross margins for activewear compared to last year was due to further
manufacturing efficiencies, partially offset by lower selling prices and higher
cotton costs. </p>
<p ALIGN="JUSTIFY">For the first nine months of fiscal 2007, gross margins of
32.0% were down from 33.5% in the same period last year due to the impact of
margins from the sale of socks. Excluding the impact of the sock sales, gross
margins for activewear increased to 35.1%. This increase was due to
manufacturing efficiency gains for the period and a more favourable product mix,
which more than offset higher cotton costs, a reduction in unit selling prices
and the non-recurrence of a $1.1 million reversal of a litigation reserve which
positively impacted gross margins in the second quarter of fiscal 2006. </p>
<b>
<p>Selling, General and Administrative Expenses </p>
</b>
<p ALIGN="JUSTIFY">Selling, general and administrative (SG&amp;A) expenses in the
third quarter were $28.4 million, or 9.7% of sales, compared to $22.0 million,
or 9.4% of sales, in the third quarter of last year. For the nine months ended
July 1, 2007, SG&amp;A expenses were $83.1 million, or 11.7% of sales, compared to
$60.7 million, or 11.3% of sales for the same period of fiscal 2006. The
increase in SG&amp;A expenses was due to the impact of the acquisition of Kentucky
Derby, higher distribution costs, and increased administration and information
technology costs to support our continuing growth. SG&amp;A expenses for the first
nine months of fiscal 2007 also included a $1.1 million charge in the first
quarter of fiscal 2007 for the replacement of the aircraft leased by the
Company. </font><b></p>
<font SIZE="2">
<p>Restructuring and Other Charges </p>
</font></b><font SIZE="2">
<p>The following table summarizes the components of restructuring and other
charges: </p>
</font>
<table CELLSPACING="0" BORDER="0" WIDTH="100%" cellpadding="0" style="border-collapse: collapse" bordercolor="#111111">
  <tr>
    <td WIDTH="38%" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2"><i>(in $ millions)</i></font></td>
    <td WIDTH="15%" align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2"><b>
    <p style="margin-right: 8">Q3 2007</b></font></td>
    <td WIDTH="15%" align="right" style="border-bottom-style: solid; border-bottom-width: 1" bgcolor="#CCFFFF">
    <font SIZE="2">
    <p style="margin-right: 8">Q3 2006</font></td>
    <td WIDTH="16%" align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2"><b>
    <p style="margin-right: 8">YTD 2007</b></font></td>
    <td WIDTH="16%" align="right" style="border-bottom-style: solid; border-bottom-width: 1" bgcolor="#CCFFFF">
    <font SIZE="2">
    <p style="margin-right: 8">YTD 2006</font></td>
  </tr>
  <tr>
    <td WIDTH="38%" style="border-top-style: solid; border-top-width: 1">
    <font SIZE="2">Accelerated depreciation (a)</font></td>
    <td WIDTH="15%" align="right" style="border-top-style: solid; border-top-width: 1">
    <font SIZE="2"><b>
    <p style="margin-right: 8">0.8</b></font></td>
    <td WIDTH="15%" align="right" style="border-top-style: solid; border-top-width: 1" bgcolor="#CCFFFF">
    <font SIZE="2">
    <p style="margin-right: 8">-</font></td>
    <td WIDTH="16%" align="right" style="border-top-style: solid; border-top-width: 1">
    <font SIZE="2"><b>
    <p style="margin-right: 8">2.9</b></font></td>
    <td WIDTH="16%" align="right" style="border-top-style: solid; border-top-width: 1" bgcolor="#CCFFFF">
    <font SIZE="2">
    <p style="margin-right: 8">-</font></td>
  </tr>
  <tr>
    <td WIDTH="38%"><font SIZE="2">Gain on disposal of assets held for sale (b)</font></td>
    <td WIDTH="15%" align="right"><font SIZE="2"><b>
    <p style="margin-right: 4">(0.1)</b></font></td>
    <td WIDTH="15%" align="right" bgcolor="#CCFFFF"><font SIZE="2">
    <p style="margin-right: 8">-</font></td>
    <td WIDTH="16%" align="right"><font SIZE="2"><b>
    <p style="margin-right: 4">(1.9)</b></font></td>
    <td WIDTH="16%" align="right" bgcolor="#CCFFFF"><font SIZE="2">
    <p style="margin-right: 8">-</font></td>
  </tr>
  <tr>
    <td WIDTH="38%"><font SIZE="2">Asset impairment loss (c)</font></td>
    <td WIDTH="15%" align="right"><font SIZE="2"><b>
    <p style="margin-right: 8">-</b></font></td>
    <td WIDTH="15%" align="right" bgcolor="#CCFFFF"><font SIZE="2">
    <p style="margin-right: 8">-</font></td>
    <td WIDTH="16%" align="right"><font SIZE="2"><b>
    <p style="margin-right: 8">3.6</b></font></td>
    <td WIDTH="16%" align="right" bgcolor="#CCFFFF"><font SIZE="2">
    <p style="margin-right: 8">-</font></td>
  </tr>
  <tr>
    <td WIDTH="38%"><font SIZE="2">Severance (c)</font></td>
    <td WIDTH="15%" align="right"><font SIZE="2"><b>
    <p style="margin-right: 8">1.2</b></font></td>
    <td WIDTH="15%" align="right" bgcolor="#CCFFFF"><font SIZE="2">
    <p style="margin-right: 8">-</font></td>
    <td WIDTH="16%" align="right"><font SIZE="2"><b>
    <p style="margin-right: 8">13.3</b></font></td>
    <td WIDTH="16%" align="right" bgcolor="#CCFFFF"><font SIZE="2">
    <p style="margin-right: 8">-</font></td>
  </tr>
  <tr>
    <td WIDTH="38%" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2">Other (d)</font></td>
    <td WIDTH="15%" align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2"><b>
    <p style="margin-right: 8">2.7</b></font></td>
    <td WIDTH="15%" align="right" style="border-bottom-style: solid; border-bottom-width: 1" bgcolor="#CCFFFF">
    <font SIZE="2">
    <p style="margin-right: 8">-</font></td>
    <td WIDTH="16%" align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2"><b>
    <p style="margin-right: 8">4.4</b></font></td>
    <td WIDTH="16%" align="right" style="border-bottom-style: solid; border-bottom-width: 1" bgcolor="#CCFFFF">
    <font SIZE="2">
    <p style="margin-right: 8">-</font></td>
  </tr>
  <tr>
    <td WIDTH="38%" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 2">
    <font SIZE="2">Restructuring and other charges</font></td>
    <td WIDTH="15%" align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 2">
    <font SIZE="2"><b>
    <p style="margin-right: 8">4.6</b></font></td>
    <td WIDTH="15%" align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 2" bgcolor="#CCFFFF">
    <font SIZE="2">
    <p style="margin-right: 8">-</font></td>
    <td WIDTH="16%" align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 2">
    <font SIZE="2"><b>
    <p style="margin-right: 8">22.3</b></font></td>
    <td WIDTH="16%" align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 2" bgcolor="#CCFFFF">
    <font SIZE="2">
    <p style="margin-right: 8">-</font></td>
  </tr>
</table>
<font style="font-size: 9pt"><i>
<p>Certain minor rounding variances exist between the financial statements and
this summary.</p>
</i></font><font SIZE="2">
<p style="text-indent: -12; margin-left: 12; margin-top: 0; margin-bottom: 0">&nbsp;</p>
</font>
<table CELLSPACING="0" BORDER="0" WIDTH="100%" cellpadding="0" style="border-collapse: collapse" bordercolor="#111111">
  <tr>
    <td><font FACE="Times New Roman PS" SIZE="2"><i>
    <p align="right">GILDAN QUARTERLY REPORT &#150; Q3 2007 p.7</i></font></td>
  </tr>
</table>
<hr color="#000000" size="5"><p Style='page-break-before:always'>
<table CELLSPACING="0" BORDER="0" WIDTH="100%" cellpadding="0" style="border-collapse: collapse" bordercolor="#111111">
  <tr>
    <td width="475">
    <img border="0" src="gildansmlogo.jpg" width="88" height="20"></td>
    <td width="483" align="right"><font FACE="Times New Roman PS" SIZE="2"><i>
    MANAGEMENT'S DISCUSSION AND ANALYSIS</i></font></td>
  </tr>
</table>
<font SIZE="2">
<p ALIGN="JUSTIFY" style="text-indent: -26; margin-left: 26">(a)&nbsp;&nbsp;&nbsp;
In September 2006, we announced a restructuring of our Canadian manufacturing
operations, involving the closure of our textile manufacturing facility in
Valleyfield, Quebec, and the downsizing of our Montreal, Quebec, knitting
facility, to take effect in December 2006. In the fourth quarter of fiscal 2006,
we recorded severance charges of $2.1 million and other exit costs of $1.6
million relating to this restructuring. In addition, during the fourth quarter
of fiscal 2006, we recorded an impairment loss of $15.1 million on all Canadian
textile and related manufacturing assets, and reduced our estimate of the
remaining economic lives of these assets. The effect of this change in estimate,
amounting to $0.8 million in the third quarter of fiscal 2007 and $2.9 million
for the first nine months of fiscal 2007, has been classified as accelerated
depreciation and included in restructuring and other charges. An additional $0.4
million of accelerated depreciation will be recorded in the fourth quarter of
fiscal 2007. </p>
<p ALIGN="JUSTIFY" style="text-indent: -26; margin-left: 26">(b)&nbsp;&nbsp;
During the fourth quarter of fiscal 2006, we announced the relocation and
consolidation of our U.S. retail distribution centres, which was completed
during the third quarter of fiscal 2007, and the closure of our Canadian
distribution centre in Montreal, Quebec, effective October 2006. We also
announced the closure and downsizing of sock manufacturing capacity located in
North Carolina and Virginia. During the second quarter of fiscal 2007, we sold
some of the assets related to these facilities and recorded a gain of $1.8
million. We sold some of the remaining assets during the third quarter of fiscal
2007 and recorded a net gain of $0.1 million. </p>
<p ALIGN="JUSTIFY" style="text-indent: -26; margin-left: 26">(c)&nbsp;&nbsp; On
March 27, 2007, we announced plans to close our two remaining textile facilities
in Montreal, Quebec, as well as our cutting facility in Bombay, N.Y., in the
fourth quarter of fiscal 2007. In addition, we closed two sewing facilities in
Mexico, which had been supplied with fabric from Gildan's Canadian textile
operations. In the third quarter and in the first nine months of fiscal 2007, we
recorded severance costs of $1.2 million and $13.3 million, respectively,
primarily relating to these plant closures. We expect to recognize additional
severance of $1.4 million in the fourth quarter of fiscal 2007. Concurrent with
the restructuring of the Canadian textile operations, we also announced plans to
relocate our corporate office, which is currently located in the same building
as our Montreal knitting facility, into leased premises in the Montreal area. In
the second quarter of fiscal 2007, we recorded a $3.6 million asset impairment
loss relating to our corporate head office facility. </p>
<p ALIGN="JUSTIFY" style="text-indent: -26; margin-left: 26">(d)&nbsp;&nbsp;
Other costs of $2.7 million for the third quarter and $4.4 million for the nine
months ended July 1, 2007 relate primarily to exit costs incurred in connection
with the closures noted above, including carrying and dismantling costs
associated with assets held for sale. Other costs also include temporary
incremental duties incurred as a result of the closure of our Mexican sewing
facilities. These duties will not be incurred after the completion of our
restructuring initiatives in the fourth quarter of fiscal 2007. We expect to
incur additional exit and duty costs relating to these closures of approximately
$2.4 million, which will be accounted for as incurred during the fourth quarter
of fiscal 2007. </p>
<b>
<p>Depreciation and Amortization </p>
</b>
<p ALIGN="JUSTIFY">Depreciation and amortization expense of $10.3 million in the
third quarter and $28.5 million for the first nine months of fiscal 2007,
reflected increases of $2.1 million and $5.2 million, respectively, compared to
the same periods last year. The increase in depreciation and amortization
expense was due to a higher capital asset base resulting from the Company's
continuing investments in capacity expansion, combined with the impact of the
Kentucky Derby acquisition. </p>
<b>
<p>Interest Expense </p>
</b>
<p ALIGN="JUSTIFY">Net interest expense for the third quarter and the first nine
months of 2007 amounted to $1.5 million and $3.5 million, respectively, up $0.7
million and $1.5 million compared to the same periods of fiscal 2006. The
increase in net interest expense reflected lower investment income and higher
borrowings during the first nine months of fiscal 2007, mainly due to the use of
funds for the acquisition of Kentucky Derby and the acceleration of the
Company's capital expenditure program. </p>
</font>
<table CELLSPACING="0" BORDER="0" WIDTH="100%" cellpadding="0" style="border-collapse: collapse" bordercolor="#111111">
  <tr>
    <td><font FACE="Times New Roman PS" SIZE="2"><i>
    <p align="right">GILDAN QUARTERLY REPORT &#150; Q3 2007 p.8</i></font></td>
  </tr>
</table>
<hr color="#000000" size="5"><p Style='page-break-before:always'>
<table CELLSPACING="0" BORDER="0" WIDTH="100%" cellpadding="0" style="border-collapse: collapse" bordercolor="#111111">
  <tr>
    <td width="475">
    <img border="0" src="gildansmlogo.jpg" width="88" height="20"></td>
    <td width="483" align="right"><font FACE="Times New Roman PS" SIZE="2"><i>
    MANAGEMENT'S DISCUSSION AND ANALYSIS</i></font></td>
  </tr>
</table>
<font SIZE="2"><b>
<p>Income Taxes </p>
</b>
<p ALIGN="JUSTIFY">During the third quarter, we recognized previously unrecorded
tax benefits in the amount of $5.7 million relating to a prior taxation year
which became statute-barred in the third quarter of fiscal 2007. Excluding the
impact of this income tax recovery, as well as the impact of restructuring and
other charges, the effective income tax rate was 4.6% for the third quarter and
4.9% for the first nine months of fiscal 2007. This compared to effective income
tax rates of 4.0% and 3.9% for the respective periods of fiscal 2006. This
increase was mainly due to higher income from our Canadian operations, which is
taxed at a higher effective income tax rate. We expect the effective income tax
rate for fiscal 2007 to be approximately 5% excluding the impact of
restructuring and other charges and excluding the impact of the income tax
recovery. </p>
<b>
<p>Net Earnings </p>
</b>
<p ALIGN="JUSTIFY">Net earnings for the third quarter were $52.4 million, or
$0.43 per share on a diluted basis (EPS), up from net earnings of $42.8 million,
or $0.35 per share on a diluted basis for the third quarter last year. Included
in net earnings were restructuring and other charges of $4.6 million, or $0.04
per share, which primarily related to the previously announced restructuring of
our manufacturing facilities. Before reflecting the restructuring and other
charges, adjusted net earnings and adjusted diluted EPS for the third quarter of
fiscal 2007 amounted to $57.0 million, or $0.47, up respectively, 33.2% and
34.3%, compared to the third quarter of fiscal 2006. The growth in EPS compared
to last year was due to higher gross margins for activewear, continuing growth
in activewear unit sales volumes, and the $0.05 per share benefit of an income
tax recovery related to a prior taxation year. These positive factors were
partially offset by increased SG&amp;A and depreciation expenses, and the continuing
dilutive impact of the acquisition of Kentucky Derby, which negatively impacted
EPS by $0.03 in the third quarter. </p>
<p ALIGN="JUSTIFY">For the first nine months of fiscal 2007, net earnings
amounted to $89.2 million, or $0.73 per share on a diluted basis compared to net
earnings of $90.0 million, or $0.74 per share for the same period last year.
Before the impact of restructuring and other charges, adjusted net earnings
increased to $111.5 million, or $0.92 per share on a diluted basis. The increase
in adjusted net earnings and adjusted diluted EPS was due to favourable
manufacturing efficiencies, growth in activewear unit sales volumes, a
higher-valued product mix and the impact of the $0.05 income tax recovery
recorded in the third quarter, partially offset by lower unit selling prices for
activewear, higher cotton costs, increased SG&amp;A and depreciation expenses and
the $0.04 per share dilutive impact of the Kentucky Derby acquisition. </p>
<table CELLSPACING="0" BORDER="0" WIDTH="100%" cellpadding="0" style="border-collapse: collapse" bordercolor="#111111">
  <tr>
    <td style="border-bottom-style: solid; border-bottom-width: 1">
    <font FACE="Arial MT" SIZE="3" color="#3988C1">Financial Condition</font></td>
  </tr>
</table>
<p ALIGN="JUSTIFY">Accounts receivable of $183.6 million in the third quarter of
fiscal 2007 reflected increases of $17.7 million from $165.9 million at October
1, 2006 and $49.9 million from $133.7 million in the third quarter of the prior
year. The increase in accounts receivable from the end of fiscal 2006 was
primarily due to higher sales, partially offset by a decrease in days sales
outstanding on trade accounts receivable. The increase in accounts receivable
compared to the third quarter of fiscal 2006 was mainly due to the 11.6%
increase in activewear sales in the third quarter over the prior year, the
inclusion of $22.9 million accounts receivable for Kentucky Derby and a slight
increase in days sales outstanding on activewear trade accounts receivable due
to a higher proportion of sales of fleece products. </p>
<p ALIGN="JUSTIFY">Inventories of $231.5 million were up $30.9 million, or 15.4%
from October 1, 2006 and by $70.3 million, or 43.6% compared to the third
quarter of fiscal 2006. The increase in inventories for the periods is
reflective of the growth of our business and in line with our requirements to
support our projected sales. In addition, the year-over-year inventory increase
reflected the inclusion of sock inventory following our acquisition of Kentucky
Derby. </p>
<p ALIGN="JUSTIFY">Property, plant and equipment, which are net of accumulated
depreciation and asset impairment losses, amounted to $368.5 million at the end
of the third quarter of fiscal 2007, up $65.8 million from October 1, 2006. This
increase was primarily due to net capital expenditures of $108.3 million, mainly
for the capacity expansion projects in Honduras and the Dominican Republic as
well as for our new U.S. retail distribution centre and the expansion of our
sewing capacity. </p>
</font>
<table CELLSPACING="0" BORDER="0" WIDTH="100%" cellpadding="0" style="border-collapse: collapse" bordercolor="#111111">
  <tr>
    <td><font FACE="Times New Roman PS" SIZE="2"><i>
    <p align="right">GILDAN QUARTERLY REPORT &#150; Q3 2007 p.9</i></font></td>
  </tr>
</table>
<hr color="#000000" size="5"><p Style='page-break-before:always'>
<table CELLSPACING="0" BORDER="0" WIDTH="100%" cellpadding="0" style="border-collapse: collapse" bordercolor="#111111">
  <tr>
    <td width="475">
    <img border="0" src="gildansmlogo.jpg" width="88" height="20"></td>
    <td width="483" align="right"><font FACE="Times New Roman PS" SIZE="2"><i>
    MANAGEMENT'S DISCUSSION AND ANALYSIS</i></font></td>
  </tr>
</table>
<font SIZE="2">
<p ALIGN="JUSTIFY">Total assets were $825.0 million at July 1, 2007, compared to
$723.3 million at October 1, 2006 and $673.1 million at the end of the third
quarter of fiscal 2006. Working capital was $307.1 million at the end of the
third quarter of fiscal 2007 compared to $261.0 million at October 1, 2006, and
$260.0 million at July 2, 2006. </p>
<b>
<table CELLSPACING="0" BORDER="0" WIDTH="100%" cellpadding="0" style="border-collapse: collapse" bordercolor="#111111">
  <tr>
    <td style="border-bottom-style: solid; border-bottom-width: 1">
    <font FACE="Arial MT" SIZE="3" color="#3988C1">Liquidity and Capital
    Resources</font></td>
  </tr>
</table>
<p>Cash Flows </p>
</b>
<p ALIGN="JUSTIFY">Cash flows from operating activities in the third quarter of
fiscal 2007 were $32.3 million, compared to $47.1 million in the previous year.
The decrease in cash flows from operating activities was mainly due to a higher
seasonal increase in accounts receivable, partially offset by higher earnings
and a lower seasonal decline in inventory compared to the third quarter of
fiscal 2006. For the first nine months of fiscal 2007, cash flows from operating
activities were $72.1 million compared to $61.1 million in the same period last
year mainly as a result of higher earnings. </p>
<p ALIGN="JUSTIFY">Cash flows used in investing activities were $29.2 million in
the third quarter and $103.7 million for the nine months ended July 1, 2007,
compared to $13.5 million and $50.0 million in the respective periods of fiscal
2006, mainly due to higher net capital expenditures. The higher capital spending
was primarily related to our major textile and sock manufacturing expansion
projects in Honduras, our new U.S. retail distribution centre and the expansion
of our sewing capacity. </p>
<p ALIGN="JUSTIFY">Cash flows used in financing activities were $31.1 million in
the third quarter of fiscal 2007 compared to $17.8 million in the same period
last year. Both periods included a $17.5 million principal repayment of our
Senior Notes. Cash flows from financing activities for the first nine months of
fiscal 2007 were $10.0 million compared to cash outflows of $17.0 million for
the same period last year primarily due to a $30.0 million drawdown on our
credit facility during fiscal 2007. </p>
<p ALIGN="JUSTIFY">We ended the third quarter of fiscal 2007 with cash and cash
equivalents of $7.5 million compared to $63.9 million at the end of the third
quarter last year and $29.0 million at October 1, 2006. Total indebtedness at
July 1, 2007 amounted to $46.4 million compared to $37.3 million at October 1,
2006 and $32.6 million at July 2, 2006. The $13.8 million year-over-year
increase in total indebtedness was mainly due to the increase in long-term debt
from the use of our credit facility, partially offset by the final principal
repayment of $17.5 million on our Senior Notes, which was made on May 31, 2007.
Net indebtedness, defined as total indebtedness net of cash and cash
equivalents, at the end of the third quarter of fiscal 2007 was $38.9 million.
</font><font FACE="Arial MT" SIZE="1"></p>
</font><font SIZE="2"><b>
<p>Liquidity and Capital Resources </p>
</b>
<p ALIGN="JUSTIFY">In recent years, we have funded our operations and capital
requirements with cash generated from operations. Our committed revolving term
credit facility has been periodically utilized to finance seasonal peak working
capital requirements. Our primary use of funds on an ongoing basis is related to
capital expenditures for new manufacturing facilities, inventory and accounts
receivable funding, and business acquisitions. In fiscal 2007, we used our
revolving credit facility, in addition to our cash flow from operations, to
finance capital expenditures due to the acceleration of our major capacity
expansion projects in Honduras. </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 is typically seasonally highest in the second quarter as
inventories are built up for the peak T-shirt selling period in the second half
of the fiscal year. </p>
<p align="justify">Anticipated sales growth in 2007 is expected to result in
increased working capital requirements, mainly to finance trade accounts
receivable and inventory. In addition, in order to be able to support our
opportunities for continuing sales growth, we are continuing to invest in
offshore capacity expansion in Central America. For fiscal 2008, we are
projecting capital expenditures of approximately $155 million, primarily to
complete the ramp-up of the fleece and sock facilities in Honduras, and for the
new energy and chemical cost reduction projects which we announced in May of
this year. Fiscal 2008 capital expenditures also include the construction of a
building for a new sock facility to support our projected continuing growth in
sales. The estimated total capital cost of the new facility, to be expended
primarily over the next twenty-four months, is approximately $40 million.
Projected capital expenditures for fiscal 2008 also include approximately $20
million of expenditures in Honduras, which were previously projected to be
incurred in fiscal 2007. We are currently projecting capital expenditures for
fiscal 2007 of approximately $150 million compared to our previous projection of
$170 million. The carryover of fiscal 2007 expenditures relates primarily to a
minor delay in the timing of the delivery of equipment, and to a delay in
beginning the energy cost reduction project in Honduras. </p>
</font>
<table CELLSPACING="0" BORDER="0" WIDTH="100%" cellpadding="0" style="border-collapse: collapse" bordercolor="#111111">
  <tr>
    <td><font FACE="Times New Roman PS" SIZE="2"><i>
    <p align="right">GILDAN QUARTERLY REPORT &#150; Q3 2007 p.10</i></font></td>
  </tr>
</table>
<hr color="#000000" size="5"><p Style='page-break-before:always'>
<table CELLSPACING="0" BORDER="0" WIDTH="100%" cellpadding="0" style="border-collapse: collapse" bordercolor="#111111">
  <tr>
    <td width="475">
    <img border="0" src="gildansmlogo.jpg" width="88" height="20"></td>
    <td width="483" align="right"><font FACE="Times New Roman PS" SIZE="2"><i>
    MANAGEMENT'S DISCUSSION AND ANALYSIS</i></font></td>
  </tr>
</table>
<font SIZE="2">
<p ALIGN="JUSTIFY">At the end of the third quarter of fiscal 2007, $30.0 million
was drawn on our credit facility due to the acceleration of our capacity
expansion plans and seasonal working capital requirements. There were no amounts
drawn under this facility at October 1, 2006 and July 2, 2006. During the third
quarter of fiscal 2007, we increased our credit facility to $300 million, on an
unsecured basis. We believe our cash flow from operating activities together
with our credit facilities will provide us with sufficient liquidity and capital
resources in fiscal 2007 and 2008 to fund our anticipated working capital
requirements and capital projects. Furthermore, we continue to have significant
unused debt financing capacity and financing flexibility to invest in capital
expenditures for further capacity expansion and cost reduction initiatives in
excess of our current plans, as well as to pursue other potential acquisition
opportunities. </p>
<p ALIGN="JUSTIFY">In order to maximize flexibility to finance our ongoing
growth and expansion and to be able to take advantage of additional new
opportunities, we do not currently pay a dividend. Periodically, the merits of
introducing a dividend are re-evaluated by our Board of Directors. </p>
<b>
<p>Off-Balance Sheet Arrangements </p>
</b>
<p ALIGN="JUSTIFY">We have 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 12. As disclosed in
Note 9 to our Interim Consolidated Financial Statements, we have issued
corporate guarantees and standby letters of credit arising from various
servicing agreements amounting to $28.8 million at July 1, 2007. </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, to hedge cash flows
related to sales and operating expenses denominated in foreign currencies other
than the U.S. dollar. </p>
<p ALIGN="JUSTIFY">A forward foreign exchange contract represents an obligation
to buy or sell foreign currency with a counterparty. Credit risk exists in the
event of failure by a counterparty to meet its obligations. We reduce this risk
by dealing only with highly rated counterparties, normally major European and
North American financial institutions. Our exposure to foreign currency
fluctuations is described in more detail in the &quot;Risks and Uncertainties&quot;
section of the 2006 Annual MD&amp;A. </p>
<p>We do not use derivative financial instruments for speculative purposes.
Forward foreign exchange contracts are entered into with maturities not
exceeding twenty-four months. </p>
<p ALIGN="JUSTIFY">All outstanding forward foreign exchange contracts are
reported on a mark-to-market basis because we elected not to follow hedge
accounting for these derivatives, and the gains or losses are included in
earnings. The mark-to-market adjustments relating to the contracts were not
significant in either 2007 or 2006. See &quot;Changes in Accounting Policies&quot; on page
14. </p>
</font>
<table CELLSPACING="0" BORDER="0" WIDTH="100%" cellpadding="0" style="border-collapse: collapse" bordercolor="#111111">
  <tr>
    <td><font FACE="Times New Roman PS" SIZE="2"><i>
    <p align="right">GILDAN QUARTERLY REPORT &#150; Q3 2007 p.11</i></font></td>
  </tr>
</table>
<hr color="#000000" size="5"><p Style='page-break-before:always'>
<table CELLSPACING="0" BORDER="0" WIDTH="100%" cellpadding="0" style="border-collapse: collapse" bordercolor="#111111">
  <tr>
    <td width="475">
    <img border="0" src="gildansmlogo.jpg" width="88" height="20"></td>
    <td width="483" align="right"><font FACE="Times New Roman PS" SIZE="2"><i>
    MANAGEMENT'S DISCUSSION AND ANALYSIS</i></font></td>
  </tr>
</table>
<font FACE="Arial MT" SIZE="2">
<p>The following table summarizes our commitments to buy and sell foreign
currencies as at July 1, 2007 and July 2, 2006: </font>
<font FACE="Arial MT" SIZE="1"></p>
</font>
<table CELLSPACING="0" BORDER="0" WIDTH="100%" cellpadding="0" style="border-collapse: collapse" bordercolor="#111111">
  <tr>
    <td WIDTH="25%"><font SIZE="2"><i>(in thousands)</i></font></td>
    <td WIDTH="6%" align="right">&nbsp;</td>
    <td WIDTH="8%" align="right"><font SIZE="2">Notional</font></td>
    <td WIDTH="19%" align="right">&nbsp;</td>
    <td WIDTH="25%" align="right">&nbsp;</td>
    <td WIDTH="17%" align="right"><font SIZE="2">Notional U.S.</font></td>
  </tr>
  <tr>
    <td WIDTH="25%" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="6%" style="border-bottom-style: solid; border-bottom-width: 1" align="right">&nbsp;</td>
    <td WIDTH="8%" align="right" style="border-bottom-style: solid; border-bottom-width: 1"><font SIZE="2">amount</font></td>
    <td WIDTH="19%" align="right" style="border-bottom-style: solid; border-bottom-width: 1"><font SIZE="2">Exchange rate</font></td>
    <td WIDTH="25%" align="right" style="border-bottom-style: solid; border-bottom-width: 1"><font SIZE="2">Maturity</font></td>
    <td WIDTH="17%" align="right" style="border-bottom-style: solid; border-bottom-width: 1"><font SIZE="2">equivalent</font></td>
  </tr>
  <tr>
    <td WIDTH="25%" style="border-top-style: solid; border-top-width: 1"><font SIZE="2"><b>2007</b></font></td>
    <td WIDTH="6%" style="border-top-style: solid; border-top-width: 1" align="right">&nbsp;</td>
    <td WIDTH="8%" align="right" style="border-top-style: solid; border-top-width: 1">&nbsp;</td>
    <td WIDTH="19%" align="right" style="border-top-style: solid; border-top-width: 1">&nbsp;</td>
    <td WIDTH="25%" align="right" style="border-top-style: solid; border-top-width: 1">&nbsp;</td>
    <td WIDTH="17%" align="right" style="border-top-style: solid; border-top-width: 1">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="25%"><font SIZE="2"><b>Buy contracts:</b></font></td>
    <td WIDTH="6%" align="right">&nbsp;</td>
    <td WIDTH="8%" align="right">&nbsp;</td>
    <td WIDTH="19%" align="right">&nbsp;</td>
    <td WIDTH="25%" align="right">&nbsp;</td>
    <td WIDTH="17%" align="right">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="25%"><font SIZE="2"><b>&nbsp;&nbsp;&nbsp; Foreign exchange contracts</b></font></td>
    <td WIDTH="6%" align="right"><font SIZE="2"><b>&#128;</b></font></td>
    <td WIDTH="8%" align="right"><font SIZE="2"><b>7,099</b></font></td>
    <td WIDTH="19%" align="right"><font SIZE="2"><b>1.3108 to 1.3556</b></font></td>
    <td WIDTH="25%" align="right"><font SIZE="2">July 2007 to December 2007</font></td>
    <td WIDTH="17%" align="right"><font SIZE="2"><b>$9,477</b></font></td>
  </tr>
  <tr>
    <td WIDTH="25%">&nbsp;</td>
    <td WIDTH="6%" align="right"><font SIZE="2"><b>CA$</b></font></td>
    <td WIDTH="8%" align="right"><font SIZE="2"><b>8,811</b></font></td>
    <td WIDTH="19%" align="right"><font SIZE="2"><b>0.8506 to 0.8519</b></font></td>
    <td WIDTH="25%" align="right"><font SIZE="2">July 2007 to August 2007</font></td>
    <td WIDTH="17%" align="right"><font SIZE="2"><b>7,500</b></font></td>
  </tr>
  <tr>
    <td WIDTH="25%"><font SIZE="2"><b>Sell contracts:</b></font></td>
    <td WIDTH="6%" align="right">&nbsp;</td>
    <td WIDTH="8%" align="right">&nbsp;</td>
    <td WIDTH="19%" align="right">&nbsp;</td>
    <td WIDTH="25%" align="right">&nbsp;</td>
    <td WIDTH="17%" align="right">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="25%"><font SIZE="2"><b>&nbsp;&nbsp;&nbsp; Foreign exchange contracts</b></font></td>
    <td WIDTH="6%" align="right"><font SIZE="2"><b>&#128;</b></font></td>
    <td WIDTH="8%" align="right"><font SIZE="2"><b>13,718</b></font></td>
    <td WIDTH="19%" align="right"><font SIZE="2"><b>1.3066 to 1.3696</b></font></td>
    <td WIDTH="25%" align="right"><font SIZE="2">July 2007 to September 2008</font></td>
    <td WIDTH="17%" align="right"><font SIZE="2"><b>$18,463</b></font></td>
  </tr>
  <tr>
    <td WIDTH="25%">&nbsp;</td>
    <td WIDTH="6%" align="right"><b><font SIZE="2">&#163;</font></b></td>
    <td WIDTH="8%" align="right"><font SIZE="2"><b>10,459</b></font></td>
    <td WIDTH="19%" align="right"><font SIZE="2"><b>1.9100 to 1.9780</b></font></td>
    <td WIDTH="25%" align="right"><font SIZE="2">July 2007 to September 2008</font></td>
    <td WIDTH="17%" align="right"><font SIZE="2"><b>20,505</b></font></td>
  </tr>
  <tr>
    <td WIDTH="25%" bgcolor="#CCFFFF"><font SIZE="2">2006</font></td>
    <td WIDTH="6%" align="right" bgcolor="#CCFFFF">&nbsp;</td>
    <td WIDTH="8%" align="right" bgcolor="#CCFFFF">&nbsp;</td>
    <td WIDTH="19%" align="right" bgcolor="#CCFFFF">&nbsp;</td>
    <td WIDTH="25%" align="right" bgcolor="#CCFFFF">&nbsp;</td>
    <td WIDTH="17%" align="right" bgcolor="#CCFFFF">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="25%" bgcolor="#CCFFFF"><font SIZE="2">Buy contracts:</font></td>
    <td WIDTH="6%" align="right" bgcolor="#CCFFFF">&nbsp;</td>
    <td WIDTH="8%" align="right" bgcolor="#CCFFFF">&nbsp;</td>
    <td WIDTH="19%" align="right" bgcolor="#CCFFFF">&nbsp;</td>
    <td WIDTH="25%" align="right" bgcolor="#CCFFFF">&nbsp;</td>
    <td WIDTH="17%" align="right" bgcolor="#CCFFFF">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="25%" bgcolor="#CCFFFF"><font SIZE="2">&nbsp;&nbsp;&nbsp; Foreign exchange contracts</font></td>
    <td WIDTH="6%" align="right" bgcolor="#CCFFFF"><font SIZE="2">CA$</font></td>
    <td WIDTH="8%" align="right" bgcolor="#CCFFFF"><font SIZE="2">37,334</font></td>
    <td WIDTH="19%" align="right" bgcolor="#CCFFFF"><font SIZE="2">0.7997 to 0.8997</font></td>
    <td WIDTH="25%" align="right" bgcolor="#CCFFFF"><font SIZE="2">July 2006 to September 2006</font></td>
    <td WIDTH="17%" align="right" bgcolor="#CCFFFF"><font SIZE="2">$31,720</font></td>
  </tr>
  <tr>
    <td WIDTH="25%" bgcolor="#CCFFFF">&nbsp;</td>
    <td WIDTH="6%" align="right" bgcolor="#CCFFFF"><font SIZE="2">&#128;</font></td>
    <td WIDTH="8%" align="right" bgcolor="#CCFFFF"><font SIZE="2">11,147</font></td>
    <td WIDTH="19%" align="right" bgcolor="#CCFFFF"><font SIZE="2">1.1991 to 1.2208</font></td>
    <td WIDTH="25%" align="right" bgcolor="#CCFFFF"><font SIZE="2">July 2006 to June 2007</font></td>
    <td WIDTH="17%" align="right" bgcolor="#CCFFFF"><font SIZE="2">13,480</font></td>
  </tr>
  <tr>
    <td WIDTH="25%" bgcolor="#CCFFFF"><font SIZE="2">Sell contracts:</font></td>
    <td WIDTH="6%" align="right" bgcolor="#CCFFFF">&nbsp;</td>
    <td WIDTH="8%" align="right" bgcolor="#CCFFFF">&nbsp;</td>
    <td WIDTH="19%" align="right" bgcolor="#CCFFFF">&nbsp;</td>
    <td WIDTH="25%" align="right" bgcolor="#CCFFFF">&nbsp;</td>
    <td WIDTH="17%" align="right" bgcolor="#CCFFFF">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="25%" bgcolor="#CCFFFF"><font SIZE="2">&nbsp;&nbsp;&nbsp; Foreign exchange contracts</font></td>
    <td WIDTH="6%" align="right" bgcolor="#CCFFFF"><font SIZE="2">&#128;</font></td>
    <td WIDTH="8%" align="right" bgcolor="#CCFFFF"><font SIZE="2">2,265</font></td>
    <td WIDTH="19%" align="right" bgcolor="#CCFFFF"><font SIZE="2">1.3495 to 1.3525</font></td>
    <td WIDTH="25%" align="right" bgcolor="#CCFFFF"><font SIZE="2">July 2006 to September 2006</font></td>
    <td WIDTH="17%" align="right" bgcolor="#CCFFFF"><font SIZE="2">$3,059</font></td>
  </tr>
  <tr>
    <td WIDTH="25%" style="border-bottom: 2px solid #000000" bgcolor="#CCFFFF">&nbsp;</td>
    <td WIDTH="6%" align="right" style="border-bottom: 2px solid #000000" bgcolor="#CCFFFF"><font SIZE="2">
    &#163;</font></td>
    <td WIDTH="8%" align="right" style="border-bottom: 2px solid #000000" bgcolor="#CCFFFF"><font SIZE="2">1,745</font></td>
    <td WIDTH="19%" align="right" style="border-bottom: 2px solid #000000" bgcolor="#CCFFFF"><font SIZE="2">1.8396 to 1.8736</font></td>
    <td WIDTH="25%" align="right" style="border-bottom: 2px solid #000000" bgcolor="#CCFFFF"><font SIZE="2">July 2006 to September 2006</font></td>
    <td WIDTH="17%" align="right" style="border-bottom: 2px solid #000000" bgcolor="#CCFFFF"><font SIZE="2">3,256</font></td>
  </tr>
</table>
<font SIZE="2">
<p><u>Contractual Obligations </u></p>
<p ALIGN="JUSTIFY">In the normal course of business, we enter into contractual
obligations that will require us to disburse cash over future periods. The
following table sets forth our contractual obligations for the following items
as at July 1, 2007: </p>
</font>
<table CELLSPACING="0" BORDER="0" WIDTH="100%" cellpadding="0" style="border-collapse: collapse" bordercolor="#111111">
  <tr>
    <td WIDTH="35%"><font SIZE="2">Payments due by period</font></td>
    <td WIDTH="13%" align="right">&nbsp;</td>
    <td WIDTH="13%" align="right">&nbsp;</td>
    <td WIDTH="13%" align="right">&nbsp;</td>
    <td WIDTH="13%" align="right">&nbsp;</td>
    <td WIDTH="13%" align="right">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="35%"><font SIZE="2"><i>(in $ millions)</i></font></td>
    <td WIDTH="13%" align="right">&nbsp;</td>
    <td WIDTH="13%" align="right"><font SIZE="2"><b>Less than</b></font></td>
    <td WIDTH="13%" align="right"><font SIZE="2"><b>1 to 3</b></font></td>
    <td WIDTH="13%" align="right"><font SIZE="2"><b>4 to 5</b></font></td>
    <td WIDTH="13%" align="right"><font SIZE="2"><b>After</b></font></td>
  </tr>
  <tr>
    <td WIDTH="35%" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="13%" align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2"><b>Total</b></font></td>
    <td WIDTH="13%" align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2"><b>1 year</b></font></td>
    <td WIDTH="13%" align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2"><b>years</b></font></td>
    <td WIDTH="13%" align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2"><b>years</b></font></td>
    <td WIDTH="13%" align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2"><b>5 years</b></font></td>
  </tr>
  <tr>
    <td WIDTH="35%" style="border-top-style: solid; border-top-width: 1">
    <font SIZE="2">Long-term debt</font></td>
    <td WIDTH="13%" align="right" style="border-top-style: solid; border-top-width: 1">
    <font SIZE="2">42.9</font></td>
    <td WIDTH="13%" align="right" style="border-top-style: solid; border-top-width: 1">
    <font SIZE="2">0.8</font></td>
    <td WIDTH="13%" align="right" style="border-top-style: solid; border-top-width: 1">
    <font SIZE="2">9.0</font></td>
    <td WIDTH="13%" align="right" style="border-top-style: solid; border-top-width: 1">
    <font SIZE="2">33.1</font></td>
    <td WIDTH="13%" align="right" style="border-top-style: solid; border-top-width: 1">
    <font SIZE="2">-</font></td>
  </tr>
  <tr>
    <td WIDTH="35%"><font SIZE="2">Operating leases</font></td>
    <td WIDTH="13%" align="right"><font SIZE="2">30.1</font></td>
    <td WIDTH="13%" align="right"><font SIZE="2">1.9</font></td>
    <td WIDTH="13%" align="right"><font SIZE="2">14.9</font></td>
    <td WIDTH="13%" align="right"><font SIZE="2">6.1</font></td>
    <td WIDTH="13%" align="right"><font SIZE="2">7.2</font></td>
  </tr>
  <tr>
    <td WIDTH="35%"><font SIZE="2">Purchase obligations</font></td>
    <td WIDTH="13%" align="right"><font SIZE="2">175.3</font></td>
    <td WIDTH="13%" align="right"><font SIZE="2">107.9</font></td>
    <td WIDTH="13%" align="right"><font SIZE="2">67.4</font></td>
    <td WIDTH="13%" align="right"><font SIZE="2">-</font></td>
    <td WIDTH="13%" align="right"><font SIZE="2">-</font></td>
  </tr>
  <tr>
    <td WIDTH="35%" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2">Other obligations</font></td>
    <td WIDTH="13%" align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2">55.9</font></td>
    <td WIDTH="13%" align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2">25.4</font></td>
    <td WIDTH="13%" align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2">30.5</font></td>
    <td WIDTH="13%" align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2">-</font></td>
    <td WIDTH="13%" align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2">-</font></td>
  </tr>
  <tr>
    <td WIDTH="35%" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 2">
    <font SIZE="2"><b>Total Contractual Obligations</b></font></td>
    <td WIDTH="13%" align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 2">
    <font SIZE="2"><b>304.2</b></font></td>
    <td WIDTH="13%" align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 2">
    <font SIZE="2"><b>136.0</b></font></td>
    <td WIDTH="13%" align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 2">
    <font SIZE="2"><b>121.8</b></font></td>
    <td WIDTH="13%" align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 2">
    <font SIZE="2"><b>39.2</b></font></td>
    <td WIDTH="13%" align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 2">
    <font SIZE="2"><b>7.2</b></font></td>
  </tr>
</table>
<font SIZE="2"><b>
<p>Settlement of Contingent Liability </p>
</b>
<p ALIGN="JUSTIFY">In November 2002, one of the Company's Mexican subsidiaries
(&quot;Gildan Mexico&quot;) received a tax assessment from a regional taxation office
relating to duties for the 2000 fiscal year for approximately $6.0 million. The
substance of the assessment was that the Mexican taxation authorities adopted
the position that Canadian-made textiles shipped to Gildan Mexico for sewing
processing had not subsequently been exported from Mexico. Gildan Mexico
appealed the assessment and was successful in obtaining a judgment in its favour.
Notwithstanding the judgment, the regional Mexican taxation office issued a new
assessment in March 2005, and increased the assessed amount to approximately
$7.1 million, primarily comprised of interest and late payment penalties.
Shortly after receiving the second assessment, Gildan Mexico again filed an
appeal. In July 2006, Gildan Mexico received notification that its appeal of the
second assessment for fiscal 2000 was unsuccessful. The Company received legal
opinions that the tax assessment was without merit under Mexican law governing
re-export from maquiladora operations. Additionally, Gildan Mexico, a
maquiladora operation, provided documentation to establish that the textiles
imported into Mexico for sewing were subsequently exported to the United States
and Canada. </font><font FACE="Times New Roman PSMT"></p>
</font><font SIZE="2">
<p ALIGN="JUSTIFY">In April 2007, a new law which was passed by the Mexican
Congress in December 2006, was formally enacted. The provisions of this law
allowed Gildan Mexico to apply for the forgiveness of all of the interest and
penalties and a substantial amount of the principal related to this tax
assessment. In May 2007, Gildan Mexico filed an application requesting that the
provisions of the new law be applied to its outstanding tax assessment. The
Mexican taxation authorities accepted the application in May 2007 and
<font FACE="Arial MT" SIZE="2">Gildan Mexico settled the tax assessment with a
payment of $0.4 million during the third quarter of fiscal 2007. The Company had
previously recorded a charge for this amount, which was reflected in selling,
general and administrative expenses in the second quarter of fiscal 2007. Gildan
Mexico has been released from all previously tax assessed amounts by the Mexican
taxation authorities. </p>
</font></font>
<table CELLSPACING="0" BORDER="0" WIDTH="100%" cellpadding="0" style="border-collapse: collapse" bordercolor="#111111">
  <tr>
    <td><font FACE="Times New Roman PS" SIZE="2"><i>
    <p align="right">GILDAN QUARTERLY REPORT &#150; Q3 2007 p.12</i></font></td>
  </tr>
</table>
<hr color="#000000" size="5"><p Style='page-break-before:always'>
<table CELLSPACING="0" BORDER="0" WIDTH="100%" cellpadding="0" style="border-collapse: collapse" bordercolor="#111111">
  <tr>
    <td width="475">
    <img border="0" src="gildansmlogo.jpg" width="88" height="20"></td>
    <td width="483" align="right"><font FACE="Times New Roman PS" SIZE="2"><i>
    MANAGEMENT'S DISCUSSION AND ANALYSIS</i></font></td>
  </tr>
</table>
<font SIZE="2"><b>
<p>Outstanding Share Data </p>
</b>
<p>Our common shares are listed on the New York Stock Exchange and the Toronto
Stock Exchange (GIL). </p>
<p ALIGN="JUSTIFY">As of July 31, 2007, there were 120,381,611 common shares
issued and outstanding along with 892,400 stock options and 968,000 dilutive
restricted share units (Treasury RSUs) outstanding. Each stock option entitles
the holder to purchase one common share at the end of the vesting period at a
pre-determined option price. Each Treasury RSU entitles the holder to receive
one common share from treasury at the end of the vesting period, without any
monetary consideration being paid to the Company. However, the vesting of 50% of
the restricted share grant is dependent upon the financial performance of the
Company relative to a benchmark group of Canadian publicly-listed companies.
</font><b></p>
<font SIZE="2">
<p>Stock split </p>
</font></b><font SIZE="2">
<p ALIGN="JUSTIFY">On May 2, 2007, 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 issued and outstanding common shares, to shareholders of
record on May 18, 2007. The Company's shares commenced trading on a post-split
basis on May 16, 2007, on the TSX and on May 28, 2007, on the NYSE, in
accordance with the respective requirements of these exchanges. All share and
per share data in this Interim MD&amp;A reflect the effect of the stock split on a
retroactive basis. </p>
<table CELLSPACING="0" BORDER="0" WIDTH="100%" cellpadding="0" style="border-collapse: collapse" bordercolor="#111111">
  <tr>
    <td style="border-bottom-style: solid; border-bottom-width: 1">
    <font FACE="Arial MT" SIZE="3" color="#3988C1">Critical Accounting Estimates</font></td>
  </tr>
</table>
<p ALIGN="JUSTIFY">Our significant accounting policies are described in Note 2
to our 2006 audited Consolidated Financial Statements. The preparation of
financial statements in conformity with Canadian GAAP requires estimates and
assumptions that affect our results of operations and financial position. By
their nature, these judgements 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 following accounting estimates are most
significant to assist in understanding and evaluating our financial results: </p>
</font><font FACE="Wingdings" LANG="JA" SIZE="2">
<ul>
  <li></font><font SIZE="2">Sales promotional programs; </li>
  </font><font FACE="Wingdings" LANG="JA" SIZE="2">
  <li></font><font SIZE="2">Allowance for doubtful accounts receivable; </li>
  </font><font FACE="Wingdings" LANG="JA" SIZE="2">
  <li></font><font SIZE="2">Useful life and recoverability of property, plant
  and equipment and intangible assets; </font></li>
  <li><font SIZE="2">Cotton and yarn procurements; </font></li>
  <li><font SIZE="2">Stock-based compensation costs; and </font></li>
  <li><font SIZE="2">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 2006 Annual MD&amp;A, which is hereby
incorporated by reference. </p>
</font>
<table CELLSPACING="0" BORDER="0" WIDTH="100%" cellpadding="0" style="border-collapse: collapse" bordercolor="#111111">
  <tr>
    <td><font FACE="Times New Roman PS" SIZE="2"><i>
    <p align="right">GILDAN QUARTERLY REPORT &#150; Q3 2007 p.13</i></font></td>
  </tr>
</table>
<hr color="#000000" size="5"><p Style='page-break-before:always'>
<table CELLSPACING="0" BORDER="0" WIDTH="100%" cellpadding="0" style="border-collapse: collapse" bordercolor="#111111">
  <tr>
    <td width="475">
    <img border="0" src="gildansmlogo.jpg" width="88" height="20"></td>
    <td width="483" align="right"><font FACE="Times New Roman PS" SIZE="2"><i>
    MANAGEMENT'S DISCUSSION AND ANALYSIS</i></font></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 FACE="Arial MT" SIZE="3" color="#3988C1">Changes in Accounting
    Policies</font></td>
  </tr>
</table>
<font SIZE="2">
<p ALIGN="JUSTIFY">Effective with the commencement of our 2007 fiscal year, we
have adopted the Canadian Institute of Chartered Accountants (CICA) Handbook
Section 1530, Comprehensive Income, CICA Handbook Section 3251, Equity, CICA
Handbook Section 3855, Financial Instruments &#150; Recognition and Measurement, CICA
Handbook Section 3861, Financial Instruments &#150; Disclosure and Presentation, and
CICA Handbook Section 3865, Hedges. These new Handbook Sections, which apply to
fiscal years beginning on or after October 1, 2006, provide comprehensive
requirements for the recognition and measurement of financial instruments, as
well as standards on when and how hedge accounting may be applied. Handbook
Section 1530 also establishes standards for reporting and displaying
comprehensive income. Comprehensive income is defined as the change in equity
from transactions and other events from non-owner sources. Other comprehensive
income refers to items recognized in comprehensive income but that are excluded
from net income calculated in accordance with generally accepted accounting
principles. </p>
<p ALIGN="JUSTIFY">Under these new standards, all financial instruments are
classified into one of the following five categories: held for trading,
held-to-maturity investments, loans and receivables, available-for-sale
financial assets or other financial liabilities. All financial instruments,
including derivatives, are included on the consolidated balance sheet and are
measured at fair market value with the exception of loans and receivables,
investments held-to-maturity and other financial liabilities, which will be
measured at amortized cost. Subsequent measurement and recognition of changes in
fair value of financial instruments depend on their initial classification. Held
for trading financial investments are measured at fair value and all gains and
losses are included in net income in the period in which they arise.
Available-for-sale financial instruments are measured at fair value with
revaluation gains and losses included in other comprehensive income until the
asset is removed from the balance sheet. </p>
<p ALIGN="JUSTIFY">The standards require derivative instruments to be recorded
as either assets or liabilities measured at their fair value unless exempted
from derivative treatment as a normal purchase and sale. Certain derivatives
embedded in other contracts must also be measured at fair value. All changes in
the fair value of derivatives are recognized in earnings unless specific hedge
criteria are met, which requires that a company must formally document,
designate and assess the effectiveness of transactions that receive hedge
accounting. Derivatives that qualify as hedging instruments must be designated
as either a &quot;cash flow hedge,'' when the hedged item is a future cash flow, or
a &quot;fair value hedge,'' when the hedged item is a recognized asset or liability.
The unrealized gains and losses related to a cash flow hedge are included in
other comprehensive income. For a fair value hedge, both the derivative and the
hedged item are recorded at fair value in the consolidated balance sheet and the
unrealized gains and losses from both items are included in earnings. Any
derivative instrument that does not qualify for hedge accounting is
marked-to-market at each reporting date and the gains or losses are included in
earnings. </p>
<p ALIGN="JUSTIFY">As a result of the adoption of these standards, we have
classified our cash equivalents as available for sale. We have also classified
our accounts receivable as loans and receivables, and our accounts payable and
long-term debt as other financial liabilities, all of which are measured at
amortized cost. The adoption of these new standards also resulted in the
reclassification of an amount of $26.3 million previously recorded in
&quot;Cumulative translation adjustment&quot; to &quot;Accumulated other comprehensive income&quot;
on the consolidated balance sheets. As at October 1, 2006 and July 1, 2007, all
outstanding forward foreign exchange contracts were reported on a mark-to-market
basis and the gains or losses were included in earnings, because we elected not
to follow hedge accounting for these derivatives. The adoption of these
standards had no impact on the consolidated statement of earnings. </p>
</font>
<table CELLSPACING="0" BORDER="0" WIDTH="100%" cellpadding="0" style="border-collapse: collapse" bordercolor="#111111">
  <tr>
    <td><font FACE="Times New Roman PS" SIZE="2"><i>
    <p align="right">GILDAN QUARTERLY REPORT &#150; Q3 2007 p.14</i></font></td>
  </tr>
</table>
<hr color="#000000" size="5"><p Style='page-break-before:always'>
<table CELLSPACING="0" BORDER="0" WIDTH="100%" cellpadding="0" style="border-collapse: collapse" bordercolor="#111111">
  <tr>
    <td width="475">
    <img border="0" src="gildansmlogo.jpg" width="88" height="20"></td>
    <td width="483" align="right"><font FACE="Times New Roman PS" SIZE="2"><i>
    MANAGEMENT'S DISCUSSION AND ANALYSIS</i></font></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 FACE="Arial MT" SIZE="3" color="#3988C1">Reconciliation and Definition
    of Non-GAAP Measures</font></td>
  </tr>
</table>
<font SIZE="2">
<p ALIGN="JUSTIFY">We use non-GAAP measures to assess our operating performance
and financial condition. The terms and definitions of the non-GAAP measures used
in this report and a reconciliation of each non-GAAP measure to the most
directly comparable GAAP measure are provided below. The non-GAAP measures are
presented on a consistent basis for all periods presented in this MD&amp;A. These
non-GAAP measures do not have any standardized meanings prescribed by Canadian
GAAP and are therefore unlikely to be comparable to similar measures presented
by other companies. Accordingly, they should not be considered in isolation. </p>
<b>
<p>Adjusted Net Earnings and Adjusted Diluted EPS </p>
</b>
<p ALIGN="JUSTIFY">To measure our performance from one period to the next,
without the variations caused by the after-tax impact of restructuring and other
charges, as discussed on page 7, management uses adjusted net earnings and
adjusted diluted earnings per share, which is calculated as net earnings and
earnings per share excluding these items. We exclude these items because they
affect the comparability of our financial results and could potentially distort
the analysis of trends in our business performance. Excluding these items does
not imply they are necessarily non-recurring. </p>
</font>
<table CELLSPACING="0" BORDER="0" WIDTH="100%" cellpadding="0" style="border-collapse: collapse" bordercolor="#111111">
  <tr>
    <td WIDTH="33%" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2"><i>(in $ millions, except per share amounts)</i></font></td>
    <td WIDTH="11%" align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <p style="margin-right: 8">&nbsp;</td>
    <td WIDTH="11%" align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <p style="margin-right: 8">&nbsp;</td>
    <td WIDTH="11%" align="right" style="border-right-style: solid; border-right-width: 1; border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2"><b>
    <p style="margin-right: 8">Q3 2007</b></font></td>
    <td WIDTH="11%" align="right" style="border-left-style: solid; border-left-width: 1; border-bottom-style: solid; border-bottom-width: 1">
    <p style="margin-right: 8">&nbsp;</td>
    <td WIDTH="11%" align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <p style="margin-right: 8">&nbsp;</td>
    <td WIDTH="12%" align="right" style="border-right-style: solid; border-right-width: 1; border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2"><b>
    <p style="margin-right: 8">YTD 2007</b></font></td>
  </tr>
  <tr>
    <td WIDTH="33%" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="11%" align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2"><b>
    <p style="margin-right: 8">Reported</b></font></td>
    <td WIDTH="11%" align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1">
    <p style="margin-right: 8">&nbsp;</td>
    <td WIDTH="11%" align="right" style="border-right-style: solid; border-right-width: 1; border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2"><b>
    <p style="margin-right: 8">Adjusted</b></font></td>
    <td WIDTH="11%" align="right" style="border-left-style: solid; border-left-width: 1; border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2"><b>
    <p style="margin-right: 8">Reported</b></font></td>
    <td WIDTH="11%" align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1">
    <p style="margin-right: 8">&nbsp;</td>
    <td WIDTH="12%" align="right" style="border-right-style: solid; border-right-width: 1; border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2"><b>
    <p style="margin-right: 8">Adjusted</b></font></td>
  </tr>
  <tr>
    <td WIDTH="33%" style="border-top-style: solid; border-top-width: 1">
    <font SIZE="2">Sales</font></td>
    <td WIDTH="11%" align="right" style="border-top-style: solid; border-top-width: 1">
    <font SIZE="2"><b>
    <p style="margin-right: 8">291.6</b></font></td>
    <td WIDTH="11%" align="right" style="border-top-style: solid; border-top-width: 1">
    <p style="margin-right: 8">&nbsp;</td>
    <td WIDTH="11%" align="right" style="border-top-style: solid; border-top-width: 1">
    <font SIZE="2"><b>
    <p style="margin-right: 8">291.6</b></font></td>
    <td WIDTH="11%" align="right" style="border-top-style: solid; border-top-width: 1">
    <font SIZE="2"><b>
    <p style="margin-right: 8">709.6</b></font></td>
    <td WIDTH="11%" align="right" style="border-top-style: solid; border-top-width: 1">
    <p style="margin-right: 8">&nbsp;</td>
    <td WIDTH="12%" align="right" style="border-top-style: solid; border-top-width: 1">
    <font SIZE="2"><b>
    <p style="margin-right: 8">709.6</b></font></td>
  </tr>
  <tr>
    <td WIDTH="33%" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2">Cost of sales</font></td>
    <td WIDTH="11%" align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2"><b>
    <p style="margin-right: 8">197.2</b></font></td>
    <td WIDTH="11%" align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <p style="margin-right: 8">&nbsp;</td>
    <td WIDTH="11%" align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2"><b>
    <p style="margin-right: 8">197.2</b></font></td>
    <td WIDTH="11%" align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2"><b>
    <p style="margin-right: 8">482.6</b></font></td>
    <td WIDTH="11%" align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <p style="margin-right: 8">&nbsp;</td>
    <td WIDTH="12%" align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2"><b>
    <p style="margin-right: 8">482.6</b></font></td>
  </tr>
  <tr>
    <td WIDTH="33%" style="border-top-style: solid; border-top-width: 1">
    <font SIZE="2">Gross profit</font></td>
    <td WIDTH="11%" align="right" style="border-top-style: solid; border-top-width: 1">
    <font SIZE="2"><b>
    <p style="margin-right: 8">94.4</b></font></td>
    <td WIDTH="11%" align="right" style="border-top-style: solid; border-top-width: 1">
    <font SIZE="2">
    <p style="margin-right: 8">-</font></td>
    <td WIDTH="11%" align="right" style="border-top-style: solid; border-top-width: 1">
    <font SIZE="2"><b>
    <p style="margin-right: 8">94.4</b></font></td>
    <td WIDTH="11%" align="right" style="border-top-style: solid; border-top-width: 1">
    <font SIZE="2"><b>
    <p style="margin-right: 8">227.0</b></font></td>
    <td WIDTH="11%" align="right" style="border-top-style: solid; border-top-width: 1">
    <font SIZE="2">
    <p style="margin-right: 8">-</font></td>
    <td WIDTH="12%" align="right" style="border-top-style: solid; border-top-width: 1">
    <font SIZE="2"><b>
    <p style="margin-right: 8">227.0</b></font></td>
  </tr>
  <tr>
    <td WIDTH="33%"><font SIZE="2">Selling, general and</font></td>
    <td WIDTH="11%" align="right">
    <p style="margin-right: 8">&nbsp;</td>
    <td WIDTH="11%" align="right">
    <p style="margin-right: 8">&nbsp;</td>
    <td WIDTH="11%" align="right">
    <p style="margin-right: 8">&nbsp;</td>
    <td WIDTH="11%" align="right">
    <p style="margin-right: 8">&nbsp;</td>
    <td WIDTH="11%" align="right">
    <p style="margin-right: 8">&nbsp;</td>
    <td WIDTH="12%" align="right">
    <p style="margin-right: 8">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="33%"><font SIZE="2">&nbsp;&nbsp; administrative expenses</font></td>
    <td WIDTH="11%" align="right"><font SIZE="2"><b>
    <p style="margin-right: 8">28.4</b></font></td>
    <td WIDTH="11%" align="right">
    <p style="margin-right: 8">&nbsp;</td>
    <td WIDTH="11%" align="right"><font SIZE="2"><b>
    <p style="margin-right: 8">28.4</b></font></td>
    <td WIDTH="11%" align="right"><font SIZE="2"><b>
    <p style="margin-right: 8">83.1</b></font></td>
    <td WIDTH="11%" align="right">
    <p style="margin-right: 8">&nbsp;</td>
    <td WIDTH="12%" align="right"><font SIZE="2"><b>
    <p style="margin-right: 8">83.1</b></font></td>
  </tr>
  <tr>
    <td WIDTH="33%" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2">Restructuring and other charges <sup>(1)</sup></font></td>
    <td WIDTH="11%" align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2"><b>
    <p style="margin-right: 8">4.6</b></font></td>
    <td WIDTH="11%" align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2"><b>
    <p style="margin-right: 4">(4.6)</b></font></td>
    <td WIDTH="11%" align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2"><b>
    <p style="margin-right: 8">-</b></font></td>
    <td WIDTH="11%" align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2"><b>
    <p style="margin-right: 8">22.3</b></font></td>
    <td WIDTH="11%" align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2"><b>
    <p style="margin-right: 4">(22.3)</b></font></td>
    <td WIDTH="12%" align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2"><b>
    <p style="margin-right: 8">-</b></font></td>
  </tr>
  <tr>
    <td WIDTH="33%" style="border-top-style: solid; border-top-width: 1">&nbsp;</td>
    <td WIDTH="11%" align="right" style="border-top-style: solid; border-top-width: 1">
    <font SIZE="2"><b>
    <p style="margin-right: 8">61.4</b></font></td>
    <td WIDTH="11%" align="right" style="border-top-style: solid; border-top-width: 1">
    <font SIZE="2"><b>
    <p style="margin-right: 8">4.6</b></font></td>
    <td WIDTH="11%" align="right" style="border-top-style: solid; border-top-width: 1">
    <font SIZE="2"><b>
    <p style="margin-right: 8">66.0</b></font></td>
    <td WIDTH="11%" align="right" style="border-top-style: solid; border-top-width: 1">
    <font SIZE="2"><b>
    <p style="margin-right: 8">121.6</b></font></td>
    <td WIDTH="11%" align="right" style="border-top-style: solid; border-top-width: 1">
    <font SIZE="2"><b>
    <p style="margin-right: 8">22.3</b></font></td>
    <td WIDTH="12%" align="right" style="border-top-style: solid; border-top-width: 1">
    <font SIZE="2"><b>
    <p style="margin-right: 8">143.9</b></font></td>
  </tr>
  <tr>
    <td WIDTH="33%"><font SIZE="2">Depreciation and amortization</font></td>
    <td WIDTH="11%" align="right"><font SIZE="2"><b>
    <p style="margin-right: 8">10.3</b></font></td>
    <td WIDTH="11%" align="right">
    <p style="margin-right: 8">&nbsp;</td>
    <td WIDTH="11%" align="right"><font SIZE="2"><b>
    <p style="margin-right: 8">10.3</b></font></td>
    <td WIDTH="11%" align="right"><font SIZE="2"><b>
    <p style="margin-right: 8">28.5</b></font></td>
    <td WIDTH="11%" align="right">
    <p style="margin-right: 8">&nbsp;</td>
    <td WIDTH="12%" align="right"><font SIZE="2"><b>
    <p style="margin-right: 8">28.5</b></font></td>
  </tr>
  <tr>
    <td WIDTH="33%"><font SIZE="2">Interest, net</font></td>
    <td WIDTH="11%" align="right"><font SIZE="2"><b>
    <p style="margin-right: 8">1.5</b></font></td>
    <td WIDTH="11%" align="right">
    <p style="margin-right: 8">&nbsp;</td>
    <td WIDTH="11%" align="right"><font SIZE="2"><b>
    <p style="margin-right: 8">1.5</b></font></td>
    <td WIDTH="11%" align="right"><font SIZE="2"><b>
    <p style="margin-right: 8">3.5</b></font></td>
    <td WIDTH="11%" align="right">
    <p style="margin-right: 8">&nbsp;</td>
    <td WIDTH="12%" align="right"><font SIZE="2"><b>
    <p style="margin-right: 8">3.5</b></font></td>
  </tr>
  <tr>
    <td WIDTH="33%"><font SIZE="2">Non-controlling interest in income</font></td>
    <td WIDTH="11%" align="right">
    <p style="margin-right: 8">&nbsp;</td>
    <td WIDTH="11%" align="right">
    <p style="margin-right: 8">&nbsp;</td>
    <td WIDTH="11%" align="right">
    <p style="margin-right: 8">&nbsp;</td>
    <td WIDTH="11%" align="right">
    <p style="margin-right: 8">&nbsp;</td>
    <td WIDTH="11%" align="right">
    <p style="margin-right: 8">&nbsp;</td>
    <td WIDTH="12%" align="right">
    <p style="margin-right: 8">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="33%" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2">&nbsp;&nbsp; of consolidated joint venture</font></td>
    <td WIDTH="11%" align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2"><b>
    <p style="margin-right: 8">0.5</b></font></td>
    <td WIDTH="11%" align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <p style="margin-right: 8">&nbsp;</td>
    <td WIDTH="11%" align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2"><b>
    <p style="margin-right: 8">0.5</b></font></td>
    <td WIDTH="11%" align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2"><b>
    <p style="margin-right: 8">0.6</b></font></td>
    <td WIDTH="11%" align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <p style="margin-right: 8">&nbsp;</td>
    <td WIDTH="12%" align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2"><b>
    <p style="margin-right: 8">0.6</b></font></td>
  </tr>
  <tr>
    <td WIDTH="33%" style="border-top-style: solid; border-top-width: 1">
    <font SIZE="2">Earnings before income taxes</font></td>
    <td WIDTH="11%" align="right" style="border-top-style: solid; border-top-width: 1">
    <font SIZE="2"><b>
    <p style="margin-right: 8">49.1</b></font></td>
    <td WIDTH="11%" align="right" style="border-top-style: solid; border-top-width: 1">
    <font SIZE="2"><b>
    <p style="margin-right: 8">4.6</b></font></td>
    <td WIDTH="11%" align="right" style="border-top-style: solid; border-top-width: 1">
    <font SIZE="2"><b>
    <p style="margin-right: 8">53.7</b></font></td>
    <td WIDTH="11%" align="right" style="border-top-style: solid; border-top-width: 1">
    <font SIZE="2"><b>
    <p style="margin-right: 8">89.0</b></font></td>
    <td WIDTH="11%" align="right" style="border-top-style: solid; border-top-width: 1">
    <font SIZE="2"><b>
    <p style="margin-right: 8">22.3</b></font></td>
    <td WIDTH="12%" align="right" style="border-top-style: solid; border-top-width: 1">
    <font SIZE="2"><b>
    <p style="margin-right: 8">111.3</b></font></td>
  </tr>
  <tr>
    <td WIDTH="33%" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2">Income taxes</font></td>
    <td WIDTH="11%" align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2"><b>
    <p style="margin-right: 4">(3.3)</b></font></td>
    <td WIDTH="11%" align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <p style="margin-right: 8">&nbsp;</td>
    <td WIDTH="11%" align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2"><b>
    <p style="margin-right: 8">(3.3)</b></font></td>
    <td WIDTH="11%" align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2"><b>
    <p style="margin-right: 4">(0.2)</b></font></td>
    <td WIDTH="11%" align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <p style="margin-right: 8">&nbsp;</td>
    <td WIDTH="12%" align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2"><b>
    <p style="margin-right: 4">(0.2)</b></font></td>
  </tr>
  <tr>
    <td WIDTH="33%" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 2">
    <font SIZE="2">Net earnings</font></td>
    <td WIDTH="11%" align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 2">
    <font SIZE="2"><b>
    <p style="margin-right: 8">52.4</b></font></td>
    <td WIDTH="11%" align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 2">
    <font SIZE="2"><b>
    <p style="margin-right: 8">4.6</b></font></td>
    <td WIDTH="11%" align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 2">
    <font SIZE="2"><b>
    <p style="margin-right: 8">57.0</b></font></td>
    <td WIDTH="11%" align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 2">
    <font SIZE="2"><b>
    <p style="margin-right: 8">89.2</b></font></td>
    <td WIDTH="11%" align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 2">
    <font SIZE="2"><b>
    <p style="margin-right: 8">22.3</b></font></td>
    <td WIDTH="12%" align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 2">
    <font SIZE="2"><b>
    <p style="margin-right: 8">111.5</b></font></td>
  </tr>
  <tr>
    <td WIDTH="33%"><font SIZE="2">Basic EPS</font></td>
    <td WIDTH="11%" align="right"><font SIZE="2"><b>
    <p style="margin-right: 8">0.44</b></font></td>
    <td WIDTH="11%" align="right"><font SIZE="2"><b>
    <p style="margin-right: 8">0.04</b></font></td>
    <td WIDTH="11%" align="right"><font SIZE="2"><b>
    <p style="margin-right: 8">0.48</b></font></td>
    <td WIDTH="11%" align="right"><font SIZE="2"><b>
    <p style="margin-right: 8">0.74</b></font></td>
    <td WIDTH="11%" align="right"><font SIZE="2"><b>
    <p style="margin-right: 8">0.18</b></font></td>
    <td WIDTH="12%" align="right"><font SIZE="2"><b>
    <p style="margin-right: 8">0.92</b></font></td>
  </tr>
  <tr>
    <td WIDTH="33%" style="border-bottom: 2px solid #000000"><font SIZE="2">
    Diluted EPS</font></td>
    <td WIDTH="11%" align="right" style="border-bottom: 2px solid #000000">
    <font SIZE="2"><b>
    <p style="margin-right: 8">0.43</b></font></td>
    <td WIDTH="11%" align="right" style="border-bottom: 2px solid #000000">
    <font SIZE="2"><b>
    <p style="margin-right: 8">0.04</b></font></td>
    <td WIDTH="11%" align="right" style="border-bottom: 2px solid #000000">
    <font SIZE="2"><b>
    <p style="margin-right: 8">0.47</b></font></td>
    <td WIDTH="11%" align="right" style="border-bottom: 2px solid #000000">
    <font SIZE="2"><b>
    <p style="margin-right: 8">0.73</b></font></td>
    <td WIDTH="11%" align="right" style="border-bottom: 2px solid #000000">
    <font SIZE="2"><b>
    <p style="margin-right: 8">0.18</b></font></td>
    <td WIDTH="12%" align="right" style="border-bottom: 2px solid #000000">
    <font SIZE="2"><b>
    <p style="margin-right: 8">0.92</b></font></td>
  </tr>
  <tr>
    <td WIDTH="33%">&nbsp;</td>
    <td WIDTH="11%" align="right">
    <p style="margin-right: 8">&nbsp;</td>
    <td WIDTH="11%" align="right">
    <p style="margin-right: 8">&nbsp;</td>
    <td WIDTH="11%" align="right">
    <p style="margin-right: 8">&nbsp;</td>
    <td WIDTH="11%" align="right">
    <p style="margin-right: 8">&nbsp;</td>
    <td WIDTH="11%" align="right">
    <p style="margin-right: 8">&nbsp;</td>
    <td WIDTH="12%" align="right">
    <p style="margin-right: 8">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="33%">&nbsp;</td>
    <td WIDTH="11%" align="right">
    <p style="margin-right: 8">&nbsp;</td>
    <td WIDTH="11%" align="right">
    <p style="margin-right: 8">&nbsp;</td>
    <td WIDTH="11%" align="right">
    <p style="margin-right: 8">&nbsp;</td>
    <td WIDTH="11%" align="right">
    <p style="margin-right: 8">&nbsp;</td>
    <td WIDTH="11%" align="right">
    <p style="margin-right: 8">&nbsp;</td>
    <td WIDTH="12%" align="right">
    <p style="margin-right: 8">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="33%" style="border-bottom: 1px solid #000000"><font SIZE="2"><i>
    (in $ millions, except per share amounts)</i></font></td>
    <td WIDTH="11%" align="right" style="border-bottom: 1px solid #000000" bgcolor="#CCFFFF">
    <p style="margin-right: 8">&nbsp;</td>
    <td WIDTH="11%" align="right" style="border-bottom: 1px solid #000000" bgcolor="#CCFFFF">
    <p style="margin-right: 8">&nbsp;</td>
    <td WIDTH="11%" align="right" style="border-right-style: solid; border-right-width: 1; border-bottom: 1px solid #000000" bgcolor="#CCFFFF">
    <font SIZE="2">
    <p style="margin-right: 8">Q3 2006</font></td>
    <td WIDTH="11%" align="right" style="border-left-style: solid; border-left-width: 1; border-bottom: 1px solid #000000" bgcolor="#CCFFFF">
    <p style="margin-right: 8">&nbsp;</td>
    <td WIDTH="11%" align="right" style="border-bottom: 1px solid #000000" bgcolor="#CCFFFF">
    <p style="margin-right: 8">&nbsp;</td>
    <td WIDTH="12%" align="right" style="border-right-style: solid; border-right-width: 1; border-bottom: 1px solid #000000" bgcolor="#CCFFFF">
    <font SIZE="2">
    <p style="margin-right: 8">YTD 2006</font></td>
  </tr>
  <tr>
    <td WIDTH="33%" style="border-bottom: 1px solid #000000">&nbsp;</td>
    <td WIDTH="11%" align="right" style="border-bottom: 1px solid #000000" bgcolor="#CCFFFF">
    <font SIZE="2">
    <p style="margin-right: 8">Reported</font></td>
    <td WIDTH="11%" align="right" style="border-bottom: 1px solid #000000" bgcolor="#CCFFFF">
    <p style="margin-right: 8">&nbsp;</td>
    <td WIDTH="11%" align="right" style="border-right-style: solid; border-right-width: 1; border-bottom: 1px solid #000000" bgcolor="#CCFFFF">
    <font SIZE="2">
    <p style="margin-right: 8">Adjusted</font></td>
    <td WIDTH="11%" align="right" style="border-left-style: solid; border-left-width: 1; border-bottom: 1px solid #000000" bgcolor="#CCFFFF">
    <font SIZE="2">
    <p style="margin-right: 8">Reported</font></td>
    <td WIDTH="11%" align="right" style="border-bottom: 1px solid #000000" bgcolor="#CCFFFF">
    <p style="margin-right: 8">&nbsp;</td>
    <td WIDTH="12%" align="right" style="border-right-style: solid; border-right-width: 1; border-bottom: 1px solid #000000" bgcolor="#CCFFFF">
    <font SIZE="2">
    <p style="margin-right: 8">Adjusted</font></td>
  </tr>
  <tr>
    <td WIDTH="33%"><font SIZE="2">Sales</font></td>
    <td WIDTH="11%" align="right" bgcolor="#CCFFFF"><font SIZE="2">
    <p style="margin-right: 8">233.9</font></td>
    <td WIDTH="11%" align="right" bgcolor="#CCFFFF">
    <p style="margin-right: 8">&nbsp;</td>
    <td WIDTH="11%" align="right" bgcolor="#CCFFFF"><font SIZE="2">
    <p style="margin-right: 8">233.9</font></td>
    <td WIDTH="11%" align="right" bgcolor="#CCFFFF"><font SIZE="2">
    <p style="margin-right: 8">538.0</font></td>
    <td WIDTH="11%" align="right" bgcolor="#CCFFFF">
    <p style="margin-right: 8">&nbsp;</td>
    <td WIDTH="12%" align="right" bgcolor="#CCFFFF"><font SIZE="2">
    <p style="margin-right: 8">538.0</font></td>
  </tr>
  <tr>
    <td WIDTH="33%" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2">Cost of sales</font></td>
    <td WIDTH="11%" align="right" style="border-bottom-style: solid; border-bottom-width: 1" bgcolor="#CCFFFF">
    <font SIZE="2">
    <p style="margin-right: 8">158.2</font></td>
    <td WIDTH="11%" align="right" style="border-bottom-style: solid; border-bottom-width: 1" bgcolor="#CCFFFF">
    <p style="margin-right: 8">&nbsp;</td>
    <td WIDTH="11%" align="right" style="border-bottom-style: solid; border-bottom-width: 1" bgcolor="#CCFFFF">
    <font SIZE="2">
    <p style="margin-right: 8">158.2</font></td>
    <td WIDTH="11%" align="right" style="border-bottom-style: solid; border-bottom-width: 1" bgcolor="#CCFFFF">
    <font SIZE="2">
    <p style="margin-right: 8">358.0</font></td>
    <td WIDTH="11%" align="right" style="border-bottom-style: solid; border-bottom-width: 1" bgcolor="#CCFFFF">
    <p style="margin-right: 8">&nbsp;</td>
    <td WIDTH="12%" align="right" style="border-bottom-style: solid; border-bottom-width: 1" bgcolor="#CCFFFF">
    <font SIZE="2">
    <p style="margin-right: 8">358.0</font></td>
  </tr>
  <tr>
    <td WIDTH="33%" style="border-top-style: solid; border-top-width: 1">
    <font SIZE="2">Gross profit</font></td>
    <td WIDTH="11%" align="right" style="border-top-style: solid; border-top-width: 1" bgcolor="#CCFFFF">
    <font SIZE="2">
    <p style="margin-right: 8">75.7</font></td>
    <td WIDTH="11%" align="right" style="border-top-style: solid; border-top-width: 1" bgcolor="#CCFFFF">
    <font SIZE="2">
    <p style="margin-right: 8">-</font></td>
    <td WIDTH="11%" align="right" style="border-top-style: solid; border-top-width: 1" bgcolor="#CCFFFF">
    <font SIZE="2">
    <p style="margin-right: 8">75.7</font></td>
    <td WIDTH="11%" align="right" style="border-top-style: solid; border-top-width: 1" bgcolor="#CCFFFF">
    <font SIZE="2">
    <p style="margin-right: 8">180.0</font></td>
    <td WIDTH="11%" align="right" style="border-top-style: solid; border-top-width: 1" bgcolor="#CCFFFF">
    <font SIZE="2">
    <p style="margin-right: 8">-</font></td>
    <td WIDTH="12%" align="right" style="border-top-style: solid; border-top-width: 1" bgcolor="#CCFFFF">
    <font SIZE="2">
    <p style="margin-right: 8">180.0</font></td>
  </tr>
  <tr>
    <td WIDTH="33%"><font SIZE="2">Selling, general and</font></td>
    <td WIDTH="11%" align="right" bgcolor="#CCFFFF">
    <p style="margin-right: 8">&nbsp;</td>
    <td WIDTH="11%" align="right" bgcolor="#CCFFFF">
    <p style="margin-right: 8">&nbsp;</td>
    <td WIDTH="11%" align="right" bgcolor="#CCFFFF">
    <p style="margin-right: 8">&nbsp;</td>
    <td WIDTH="11%" align="right" bgcolor="#CCFFFF">
    <p style="margin-right: 8">&nbsp;</td>
    <td WIDTH="11%" align="right" bgcolor="#CCFFFF">
    <p style="margin-right: 8">&nbsp;</td>
    <td WIDTH="12%" align="right" bgcolor="#CCFFFF">
    <p style="margin-right: 8">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="33%" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2">&nbsp;&nbsp; administrative expenses</font></td>
    <td WIDTH="11%" align="right" style="border-bottom-style: solid; border-bottom-width: 1" bgcolor="#CCFFFF">
    <font SIZE="2">
    <p style="margin-right: 8">22.0</font></td>
    <td WIDTH="11%" align="right" style="border-bottom-style: solid; border-bottom-width: 1" bgcolor="#CCFFFF">
    <p style="margin-right: 8">&nbsp;</td>
    <td WIDTH="11%" align="right" style="border-bottom-style: solid; border-bottom-width: 1" bgcolor="#CCFFFF">
    <font SIZE="2">
    <p style="margin-right: 8">22.0</font></td>
    <td WIDTH="11%" align="right" style="border-bottom-style: solid; border-bottom-width: 1" bgcolor="#CCFFFF">
    <font SIZE="2">
    <p style="margin-right: 8">60.8</font></td>
    <td WIDTH="11%" align="right" style="border-bottom-style: solid; border-bottom-width: 1" bgcolor="#CCFFFF">
    <p style="margin-right: 8">&nbsp;</td>
    <td WIDTH="12%" align="right" style="border-bottom-style: solid; border-bottom-width: 1" bgcolor="#CCFFFF">
    <font SIZE="2">
    <p style="margin-right: 8">60.8</font></td>
  </tr>
  <tr>
    <td WIDTH="33%" style="border-top-style: solid; border-top-width: 1">&nbsp;</td>
    <td WIDTH="11%" align="right" style="border-top-style: solid; border-top-width: 1" bgcolor="#CCFFFF">
    <font SIZE="2">
    <p style="margin-right: 8">53.7</font></td>
    <td WIDTH="11%" align="right" style="border-top-style: solid; border-top-width: 1" bgcolor="#CCFFFF">
    <font SIZE="2">
    <p style="margin-right: 8">-</font></td>
    <td WIDTH="11%" align="right" style="border-top-style: solid; border-top-width: 1" bgcolor="#CCFFFF">
    <font SIZE="2">
    <p style="margin-right: 8">53.7</font></td>
    <td WIDTH="11%" align="right" style="border-top-style: solid; border-top-width: 1" bgcolor="#CCFFFF">
    <font SIZE="2">
    <p style="margin-right: 8">119.2</font></td>
    <td WIDTH="11%" align="right" style="border-top-style: solid; border-top-width: 1" bgcolor="#CCFFFF">
    <font SIZE="2">
    <p style="margin-right: 8">-</font></td>
    <td WIDTH="12%" align="right" style="border-top-style: solid; border-top-width: 1" bgcolor="#CCFFFF">
    <font SIZE="2">
    <p style="margin-right: 8">119.2</font></td>
  </tr>
  <tr>
    <td WIDTH="33%"><font SIZE="2">Depreciation and amortization</font></td>
    <td WIDTH="11%" align="right" bgcolor="#CCFFFF"><font SIZE="2">
    <p style="margin-right: 8">8.2</font></td>
    <td WIDTH="11%" align="right" bgcolor="#CCFFFF">
    <p style="margin-right: 8">&nbsp;</td>
    <td WIDTH="11%" align="right" bgcolor="#CCFFFF"><font SIZE="2">
    <p style="margin-right: 8">8.2</font></td>
    <td WIDTH="11%" align="right" bgcolor="#CCFFFF"><font SIZE="2">
    <p style="margin-right: 8">23.3</font></td>
    <td WIDTH="11%" align="right" bgcolor="#CCFFFF">
    <p style="margin-right: 8">&nbsp;</td>
    <td WIDTH="12%" align="right" bgcolor="#CCFFFF"><font SIZE="2">
    <p style="margin-right: 8">23.3</font></td>
  </tr>
  <tr>
    <td WIDTH="33%"><font SIZE="2">Interest, net</font></td>
    <td WIDTH="11%" align="right" bgcolor="#CCFFFF"><font SIZE="2">
    <p style="margin-right: 8">0.7</font></td>
    <td WIDTH="11%" align="right" bgcolor="#CCFFFF">
    <p style="margin-right: 8">&nbsp;</td>
    <td WIDTH="11%" align="right" bgcolor="#CCFFFF"><font SIZE="2">
    <p style="margin-right: 8">0.7</font></td>
    <td WIDTH="11%" align="right" bgcolor="#CCFFFF"><font SIZE="2">
    <p style="margin-right: 8">2.0</font></td>
    <td WIDTH="11%" align="right" bgcolor="#CCFFFF">
    <p style="margin-right: 8">&nbsp;</td>
    <td WIDTH="12%" align="right" bgcolor="#CCFFFF"><font SIZE="2">
    <p style="margin-right: 8">2.0</font></td>
  </tr>
  <tr>
    <td WIDTH="33%"><font SIZE="2">Non-controlling interest in income</font></td>
    <td WIDTH="11%" align="right" bgcolor="#CCFFFF">
    <p style="margin-right: 8">&nbsp;</td>
    <td WIDTH="11%" align="right" bgcolor="#CCFFFF">
    <p style="margin-right: 8">&nbsp;</td>
    <td WIDTH="11%" align="right" bgcolor="#CCFFFF">
    <p style="margin-right: 8">&nbsp;</td>
    <td WIDTH="11%" align="right" bgcolor="#CCFFFF">
    <p style="margin-right: 8">&nbsp;</td>
    <td WIDTH="11%" align="right" bgcolor="#CCFFFF">
    <p style="margin-right: 8">&nbsp;</td>
    <td WIDTH="12%" align="right" bgcolor="#CCFFFF">
    <p style="margin-right: 8">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="33%" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2">&nbsp;&nbsp; of consolidated joint venture</font></td>
    <td WIDTH="11%" align="right" style="border-bottom-style: solid; border-bottom-width: 1" bgcolor="#CCFFFF">
    <font SIZE="2">
    <p style="margin-right: 8">0.2</font></td>
    <td WIDTH="11%" align="right" style="border-bottom-style: solid; border-bottom-width: 1" bgcolor="#CCFFFF">
    <p style="margin-right: 8">&nbsp;</td>
    <td WIDTH="11%" align="right" style="border-bottom-style: solid; border-bottom-width: 1" bgcolor="#CCFFFF">
    <font SIZE="2">
    <p style="margin-right: 8">0.2</font></td>
    <td WIDTH="11%" align="right" style="border-bottom-style: solid; border-bottom-width: 1" bgcolor="#CCFFFF">
    <font SIZE="2">
    <p style="margin-right: 8">0.2</font></td>
    <td WIDTH="11%" align="right" style="border-bottom-style: solid; border-bottom-width: 1" bgcolor="#CCFFFF">
    <p style="margin-right: 8">&nbsp;</td>
    <td WIDTH="12%" align="right" style="border-bottom-style: solid; border-bottom-width: 1" bgcolor="#CCFFFF">
    <font SIZE="2">
    <p style="margin-right: 8">0.2</font></td>
  </tr>
  <tr>
    <td WIDTH="33%" style="border-top-style: solid; border-top-width: 1">
    <font SIZE="2">Earnings before income taxes</font></td>
    <td WIDTH="11%" align="right" style="border-top-style: solid; border-top-width: 1" bgcolor="#CCFFFF">
    <font SIZE="2">
    <p style="margin-right: 8">44.6</font></td>
    <td WIDTH="11%" align="right" style="border-top-style: solid; border-top-width: 1" bgcolor="#CCFFFF">
    <font SIZE="2">
    <p style="margin-right: 8">-</font></td>
    <td WIDTH="11%" align="right" style="border-top-style: solid; border-top-width: 1" bgcolor="#CCFFFF">
    <font SIZE="2">
    <p style="margin-right: 8">44.6</font></td>
    <td WIDTH="11%" align="right" style="border-top-style: solid; border-top-width: 1" bgcolor="#CCFFFF">
    <font SIZE="2">
    <p style="margin-right: 8">93.7</font></td>
    <td WIDTH="11%" align="right" style="border-top-style: solid; border-top-width: 1" bgcolor="#CCFFFF">
    <font SIZE="2">
    <p style="margin-right: 8">-</font></td>
    <td WIDTH="12%" align="right" style="border-top-style: solid; border-top-width: 1" bgcolor="#CCFFFF">
    <font SIZE="2">
    <p style="margin-right: 8">93.7</font></td>
  </tr>
  <tr>
    <td WIDTH="33%" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2">Income taxes</font></td>
    <td WIDTH="11%" align="right" style="border-bottom-style: solid; border-bottom-width: 1" bgcolor="#CCFFFF">
    <font SIZE="2">
    <p style="margin-right: 8">1.8</font></td>
    <td WIDTH="11%" align="right" style="border-bottom-style: solid; border-bottom-width: 1" bgcolor="#CCFFFF">
    <p style="margin-right: 8">&nbsp;</td>
    <td WIDTH="11%" align="right" style="border-bottom-style: solid; border-bottom-width: 1" bgcolor="#CCFFFF">
    <font SIZE="2">
    <p style="margin-right: 8">1.8</font></td>
    <td WIDTH="11%" align="right" style="border-bottom-style: solid; border-bottom-width: 1" bgcolor="#CCFFFF">
    <font SIZE="2">
    <p style="margin-right: 8">3.7</font></td>
    <td WIDTH="11%" align="right" style="border-bottom-style: solid; border-bottom-width: 1" bgcolor="#CCFFFF">
    <p style="margin-right: 8">&nbsp;</td>
    <td WIDTH="12%" align="right" style="border-bottom-style: solid; border-bottom-width: 1" bgcolor="#CCFFFF">
    <font SIZE="2">
    <p style="margin-right: 8">3.7</font></td>
  </tr>
  <tr>
    <td WIDTH="33%" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 2">
    <font SIZE="2">Net earnings</font></td>
    <td WIDTH="11%" align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 2" bgcolor="#CCFFFF">
    <font SIZE="2">
    <p style="margin-right: 8">42.8</font></td>
    <td WIDTH="11%" align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 2" bgcolor="#CCFFFF">
    <font SIZE="2">
    <p style="margin-right: 8">-</font></td>
    <td WIDTH="11%" align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 2" bgcolor="#CCFFFF">
    <font SIZE="2">
    <p style="margin-right: 8">42.8</font></td>
    <td WIDTH="11%" align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 2" bgcolor="#CCFFFF">
    <font SIZE="2">
    <p style="margin-right: 8">90.0</font></td>
    <td WIDTH="11%" align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 2" bgcolor="#CCFFFF">
    <font SIZE="2">
    <p style="margin-right: 8">-</font></td>
    <td WIDTH="12%" align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 2" bgcolor="#CCFFFF">
    <font SIZE="2">
    <p style="margin-right: 8">90.0</font></td>
  </tr>
  <tr>
    <td WIDTH="33%"><font SIZE="2">Basic EPS</font></td>
    <td WIDTH="11%" align="right" bgcolor="#CCFFFF"><font SIZE="2">
    <p style="margin-right: 8">0.36</font></td>
    <td WIDTH="11%" align="right" bgcolor="#CCFFFF"><font SIZE="2">
    <p style="margin-right: 8">-</font></td>
    <td WIDTH="11%" align="right" bgcolor="#CCFFFF"><font SIZE="2">
    <p style="margin-right: 8">0.36</font></td>
    <td WIDTH="11%" align="right" bgcolor="#CCFFFF"><font SIZE="2">
    <p style="margin-right: 8">0.75</font></td>
    <td WIDTH="11%" align="right" bgcolor="#CCFFFF"><font SIZE="2">
    <p style="margin-right: 8">-</font></td>
    <td WIDTH="12%" align="right" bgcolor="#CCFFFF"><font SIZE="2">
    <p style="margin-right: 8">0.75</font></td>
  </tr>
  <tr>
    <td WIDTH="33%" style="border-bottom: 2px solid #000000"><font SIZE="2">
    Diluted EPS</font></td>
    <td WIDTH="11%" align="right" style="border-bottom: 2px solid #000000" bgcolor="#CCFFFF">
    <font SIZE="2">
    <p style="margin-right: 8">0.35</font></td>
    <td WIDTH="11%" align="right" style="border-bottom: 2px solid #000000" bgcolor="#CCFFFF">
    <font SIZE="2">
    <p style="margin-right: 8">-</font></td>
    <td WIDTH="11%" align="right" style="border-bottom: 2px solid #000000" bgcolor="#CCFFFF">
    <font SIZE="2">
    <p style="margin-right: 8">0.35</font></td>
    <td WIDTH="11%" align="right" style="border-bottom: 2px solid #000000" bgcolor="#CCFFFF">
    <font SIZE="2">
    <p style="margin-right: 8">0.74</font></td>
    <td WIDTH="11%" align="right" style="border-bottom: 2px solid #000000" bgcolor="#CCFFFF">
    <font SIZE="2">
    <p style="margin-right: 8">-</font></td>
    <td WIDTH="12%" align="right" style="border-bottom: 2px solid #000000" bgcolor="#CCFFFF">
    <font SIZE="2">
    <p style="margin-right: 8">0.74</font></td>
  </tr>
</table>
<font style="font-size: 9pt"><i>
<p>Certain minor rounding variances exist between the financial statements and
this summary <sup><br>
(1) </sup>Adjustment to remove restructuring and other charges. See page 7. <br>
EPS amounts may not add due to rounding</p>
</i></font><font SIZE="2"></font>
<table CELLSPACING="0" BORDER="0" WIDTH="100%" cellpadding="0" style="border-collapse: collapse" bordercolor="#111111">
  <tr>
    <td><font FACE="Times New Roman PS" SIZE="2"><i>
    <p align="right">GILDAN QUARTERLY REPORT &#150; Q3 2007 p.15</i></font></td>
  </tr>
</table>
<hr color="#000000" size="5"><p Style='page-break-before:always'>
<table CELLSPACING="0" BORDER="0" WIDTH="100%" cellpadding="0" style="border-collapse: collapse" bordercolor="#111111">
  <tr>
    <td width="475">
    <img border="0" src="gildansmlogo.jpg" width="88" height="20"></td>
    <td width="483" align="right"><font FACE="Times New Roman PS" SIZE="2"><i>
    MANAGEMENT'S DISCUSSION AND ANALYSIS</i></font></td>
  </tr>
</table>
<font SIZE="2"><b>
<p>EBITDA </p>
</b>
<p ALIGN="JUSTIFY">EBITDA is calculated as earnings before interest, taxes,
depreciation and amortization, and non-controlling interest in income of the
consolidated joint venture, and excludes the impact of restructuring and other
charges. We use EBITDA, among other measures, to assess the operating
performance of our business. We also believe this measure is commonly used by
investors and analysts to measure a company's ability to service debt and to
meet other payment obligations, or as a common valuation measurement. We exclude
depreciation and amortization expenses, which are non-cash in nature and can
vary significantly depending upon accounting methods or non-operating factors
such as historical cost. Excluding these items does not imply they are
necessarily non-recurring. </p>
</font>
<table CELLSPACING="0" BORDER="0" WIDTH="100%" cellpadding="0" style="border-collapse: collapse" bordercolor="#111111">
  <tr>
    <td WIDTH="35%" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2"><i>(in $ millions)</i></font></td>
    <td WIDTH="16%" align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2"><b>
    <p style="margin-right: 8">Q3 2007</b></font></td>
    <td WIDTH="16%" align="right" style="border-bottom-style: solid; border-bottom-width: 1" bgcolor="#CCFFFF">
    <font SIZE="2">
    <p style="margin-right: 8">Q3 2006</font></td>
    <td WIDTH="16%" align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2"><b>
    <p style="margin-right: 8">YTD 2007</b></font></td>
    <td WIDTH="17%" align="right" style="border-bottom-style: solid; border-bottom-width: 1" bgcolor="#CCFFFF">
    <font SIZE="2">
    <p style="margin-right: 8">YTD 2006</font></td>
  </tr>
  <tr>
    <td WIDTH="35%" style="border-top-style: solid; border-top-width: 1">
    <font SIZE="2">Net earnings</font></td>
    <td WIDTH="16%" align="right" style="border-top-style: solid; border-top-width: 1">
    <font SIZE="2"><b>
    <p style="margin-right: 8">52.4</b></font></td>
    <td WIDTH="16%" align="right" style="border-top-style: solid; border-top-width: 1" bgcolor="#CCFFFF">
    <font SIZE="2">
    <p style="margin-right: 8">42.8</font></td>
    <td WIDTH="16%" align="right" style="border-top-style: solid; border-top-width: 1">
    <font SIZE="2"><b>
    <p style="margin-right: 8">89.2</b></font></td>
    <td WIDTH="17%" align="right" style="border-top-style: solid; border-top-width: 1" bgcolor="#CCFFFF">
    <font SIZE="2">
    <p style="margin-right: 8">90.0</font></td>
  </tr>
  <tr>
    <td WIDTH="35%"><font SIZE="2">Restructuring and other charges <sup>(1)</sup></font></td>
    <td WIDTH="16%" align="right"><font SIZE="2"><b>
    <p style="margin-right: 8">4.6</b></font></td>
    <td WIDTH="16%" align="right" bgcolor="#CCFFFF"><font SIZE="2">
    <p style="margin-right: 8">-</font></td>
    <td WIDTH="16%" align="right"><font SIZE="2"><b>
    <p style="margin-right: 8">22.3</b></font></td>
    <td WIDTH="17%" align="right" bgcolor="#CCFFFF"><font SIZE="2">
    <p style="margin-right: 8">-</font></td>
  </tr>
  <tr>
    <td WIDTH="35%"><font SIZE="2">Depreciation and amortization</font></td>
    <td WIDTH="16%" align="right"><font SIZE="2"><b>
    <p style="margin-right: 8">10.3</b></font></td>
    <td WIDTH="16%" align="right" bgcolor="#CCFFFF"><font SIZE="2">
    <p style="margin-right: 8">8.2</font></td>
    <td WIDTH="16%" align="right"><font SIZE="2"><b>
    <p style="margin-right: 8">28.5</b></font></td>
    <td WIDTH="17%" align="right" bgcolor="#CCFFFF"><font SIZE="2">
    <p style="margin-right: 8">23.3</font></td>
  </tr>
  <tr>
    <td WIDTH="35%"><font SIZE="2">Interest, net</font></td>
    <td WIDTH="16%" align="right"><font SIZE="2"><b>
    <p style="margin-right: 8">1.5</b></font></td>
    <td WIDTH="16%" align="right" bgcolor="#CCFFFF"><font SIZE="2">
    <p style="margin-right: 8">0.7</font></td>
    <td WIDTH="16%" align="right"><font SIZE="2"><b>
    <p style="margin-right: 8">3.5</b></font></td>
    <td WIDTH="17%" align="right" bgcolor="#CCFFFF"><font SIZE="2">
    <p style="margin-right: 8">2.0</font></td>
  </tr>
  <tr>
    <td WIDTH="35%"><font SIZE="2">Income taxes</font></td>
    <td WIDTH="16%" align="right"><font SIZE="2"><b>
    <p style="margin-right: 4">(3.3)</b></font></td>
    <td WIDTH="16%" align="right" bgcolor="#CCFFFF"><font SIZE="2">
    <p style="margin-right: 8">1.8</font></td>
    <td WIDTH="16%" align="right"><font SIZE="2"><b>
    <p style="margin-right: 4">(0.2)</b></font></td>
    <td WIDTH="17%" align="right" bgcolor="#CCFFFF"><font SIZE="2">
    <p style="margin-right: 8">3.7</font></td>
  </tr>
  <tr>
    <td WIDTH="35%"><font SIZE="2">Non-controlling interest in income of</font></td>
    <td WIDTH="16%" align="right">
    <p style="margin-right: 8">&nbsp;</td>
    <td WIDTH="16%" align="right" bgcolor="#CCFFFF">
    <p style="margin-right: 8">&nbsp;</td>
    <td WIDTH="16%" align="right">
    <p style="margin-right: 8">&nbsp;</td>
    <td WIDTH="17%" align="right" bgcolor="#CCFFFF">
    <p style="margin-right: 8">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="35%" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2">&nbsp;&nbsp; consolidated joint venture</font></td>
    <td WIDTH="16%" align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2"><b>
    <p style="margin-right: 8">0.5</b></font></td>
    <td WIDTH="16%" align="right" style="border-bottom-style: solid; border-bottom-width: 1" bgcolor="#CCFFFF">
    <font SIZE="2">
    <p style="margin-right: 8">0.2</font></td>
    <td WIDTH="16%" align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2"><b>
    <p style="margin-right: 8">0.6</b></font></td>
    <td WIDTH="17%" align="right" style="border-bottom-style: solid; border-bottom-width: 1" bgcolor="#CCFFFF">
    <font SIZE="2">
    <p style="margin-right: 8">0.2</font></td>
  </tr>
  <tr>
    <td WIDTH="35%" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 2">
    <font SIZE="2">EBITDA</font></td>
    <td WIDTH="16%" align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 2">
    <font SIZE="2"><b>
    <p style="margin-right: 8">66.0</b></font></td>
    <td WIDTH="16%" align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 2" bgcolor="#CCFFFF">
    <font SIZE="2">
    <p style="margin-right: 8">53.7</font></td>
    <td WIDTH="16%" align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 2">
    <font SIZE="2"><b>
    <p style="margin-right: 8">143.9</b></font></td>
    <td WIDTH="17%" align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 2" bgcolor="#CCFFFF">
    <font SIZE="2">
    <p style="margin-right: 8">119.2</font></td>
  </tr>
</table>
<font style="font-size: 9pt"><i>
<p>Certain minor rounding variances exist between the financial statements and
this summary. <sup><br>
(1)</sup> See page 7. </p>
</i></font><font SIZE="2"><b>
<p>Total Indebtedness and Net Indebtedness </p>
</b>
<p>We consider total indebtedness and net indebtedness to be important
indicators of the financial leverage of the Company. </p>
</font>
<table CELLSPACING="0" BORDER="0" WIDTH="100%" cellpadding="0" style="border-collapse: collapse" bordercolor="#111111">
  <tr>
    <td WIDTH="42%"><font SIZE="2"><i>(in $ millions)</i></font></td>
    <td WIDTH="19%" align="right">
    <p style="margin-right: 8">&nbsp;</td>
    <td WIDTH="19%" align="right">
    <p style="margin-right: 8">&nbsp;</td>
    <td WIDTH="20%" align="right">
    <p style="margin-right: 8">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="42%" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="19%" align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <p style="margin-right: 8">
    <font SIZE="2"><b>Q3 2007</b></font></td>
    <td WIDTH="19%" align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <p style="margin-right: 8">
    <font SIZE="2">Q4 2006</font></td>
    <td WIDTH="20%" align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <p style="margin-right: 8">
    <font SIZE="2">Q3 2006</font></td>
  </tr>
  <tr>
    <td WIDTH="42%" style="border-top-style: solid; border-top-width: 1">
    <font SIZE="2">Bank indebtedness</font></td>
    <td WIDTH="19%" align="right" style="border-top-style: solid; border-top-width: 1">
    <p style="margin-right: 4">
    <font SIZE="2"><b>(3.5)</b></font></td>
    <td WIDTH="19%" align="right" style="border-top-style: solid; border-top-width: 1">
    <p style="margin-right: 4">
    <font SIZE="2">(3.5)</font></td>
    <td WIDTH="20%" align="right" style="border-top-style: solid; border-top-width: 1">
    <p style="margin-right: 4">
    <font SIZE="2">(4.0)</font></td>
  </tr>
  <tr>
    <td WIDTH="42%"><font SIZE="2">Current portion of long-term debt</font></td>
    <td WIDTH="19%" align="right">
    <p style="margin-right: 4"><font SIZE="2"><b>(3.9)</b></font></td>
    <td WIDTH="19%" align="right">
    <p style="margin-right: 4"><font SIZE="2">(21.8)</font></td>
    <td WIDTH="20%" align="right">
    <p style="margin-right: 4"><font SIZE="2">(19.6)</font></td>
  </tr>
  <tr>
    <td WIDTH="42%" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2">Long-term debt</font></td>
    <td WIDTH="19%" align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <p style="margin-right: 4">
    <font SIZE="2"><b>(39.0)</b></font></td>
    <td WIDTH="19%" align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <p style="margin-right: 4">
    <font SIZE="2">(12.0)</font></td>
    <td WIDTH="20%" align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <p style="margin-right: 4">
    <font SIZE="2">(9.0)</font></td>
  </tr>
  <tr>
    <td WIDTH="42%" style="border-top-style: solid; border-top-width: 1">
    <font SIZE="2"><b>Total indebtedness</b></font></td>
    <td WIDTH="19%" align="right" style="border-top-style: solid; border-top-width: 1">
    <p style="margin-right: 4">
    <font SIZE="2"><b>(46.4)</b></font></td>
    <td WIDTH="19%" align="right" style="border-top-style: solid; border-top-width: 1">
    <p style="margin-right: 4">
    <font SIZE="2">(37.3)</font></td>
    <td WIDTH="20%" align="right" style="border-top-style: solid; border-top-width: 1">
    <p style="margin-right: 4">
    <font SIZE="2">(32.6)</font></td>
  </tr>
  <tr>
    <td WIDTH="42%">&nbsp;</td>
    <td WIDTH="19%" align="right">
    <p style="margin-right: 8">&nbsp;</td>
    <td WIDTH="19%" align="right">
    <p style="margin-right: 8">&nbsp;</td>
    <td WIDTH="20%" align="right">
    <p style="margin-right: 4">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="42%" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2">Cash and cash equivalents</font></td>
    <td WIDTH="19%" align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <p style="margin-right: 8">
    <font SIZE="2"><b>7.5</b></font></td>
    <td WIDTH="19%" align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <p style="margin-right: 8">
    <font SIZE="2">29.0</font></td>
    <td WIDTH="20%" align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <p style="margin-right: 8">
    <font SIZE="2">63.9</font></td>
  </tr>
  <tr>
    <td WIDTH="42%" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 2">
    <font SIZE="2"><b>(Net indebtedness) cash in excess of debt</b></font></td>
    <td WIDTH="19%" align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 2">
    <p style="margin-right: 4">
    <font SIZE="2"><b>(38.9)</b></font></td>
    <td WIDTH="19%" align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 2">
    <p style="margin-right: 4">
    <font SIZE="2">(8.3)</font></td>
    <td WIDTH="20%" align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 2">
    <p style="margin-right: 4">
    <font SIZE="2">31.3</font></td>
  </tr>
</table>
<font style="font-size: 9pt"><i>
<p>Certain minor rounding variances exist between the financial statements and
this summary. </p>
</i></font><font SIZE="2">
<table CELLSPACING="0" BORDER="0" WIDTH="100%" cellpadding="0" style="border-collapse: collapse" bordercolor="#111111" height="17">
  <tr>
    <td style="border-bottom-style: solid; border-bottom-width: 1" height="17">
    <font FACE="Arial MT" SIZE="3" color="#3988C1">Risks and Uncertainties</font></td>
  </tr>
</table>
<p ALIGN="JUSTIFY">The Company is subject to a variety of business risks. The
risks listed below are risks that could materially affect our business,
financial condition and results of operations, but are not necessarily the only
ones facing the Company. Additional risks that are not currently known to us or
that we currently deem immaterial could also materially and adversely affect our
business. The most significant risks we face are as follows: </p>
</font><font FACE="Wingdings" LANG="JA" SIZE="2">
<ul>
  <li></font><font SIZE="2">Our ability to implement our strategies and plans;
  </font></li>
  <li><font SIZE="2">Our industry is competitive; </font></li>
  <li><font SIZE="2">Our industry is subject to pricing pressures; </li>
  </font><font FACE="Wingdings" LANG="JA" SIZE="2">
  <li></font><font SIZE="2">Our success depends on our ability to anticipate
  evolving consumer preferences and trends; </font></li>
  <li><font SIZE="2">Our operations are subject to environmental regulation;
  </font></li>
  <li><font SIZE="2">We rely on a relatively small number of significant
  customers; </font></li>
  <li><font SIZE="2">Our customers do not commit to purchase minimum quantities;
  </li>
</ul>
</font><font style="font-size: 9pt"><i></i></font>
<table CELLSPACING="0" BORDER="0" WIDTH="100%" cellpadding="0" style="border-collapse: collapse" bordercolor="#111111">
  <tr>
    <td><font FACE="Times New Roman PS" SIZE="2"><i>
    <p align="right">GILDAN QUARTERLY REPORT &#150; Q3 2007 p.16</i></font></td>
  </tr>
</table>
<hr color="#000000" size="5"><p Style='page-break-before:always'>
<table CELLSPACING="0" BORDER="0" WIDTH="100%" cellpadding="0" style="border-collapse: collapse" bordercolor="#111111">
  <tr>
    <td width="475">
    <img border="0" src="gildansmlogo.jpg" width="88" height="20"></td>
    <td width="483" align="right"><font FACE="Times New Roman PS" SIZE="2"><i>
    MANAGEMENT'S DISCUSSION AND ANALYSIS</i></font></td>
  </tr>
</table>
<font FACE="Wingdings" LANG="JA" SIZE="2">
<ul>
  <li></font><font SIZE="2">We are exposed to concentrations of credit risk;
  </li>
  </font><font FACE="Wingdings" LANG="JA" SIZE="2">
  <li></font><font SIZE="2">Our business is affected by changes in international
  trade legislation; </li>
  </font><font FACE="Wingdings" LANG="JA" SIZE="2">
  <li>
  <p ALIGN="justify"></font><font SIZE="2">We currently pay income tax at a
  comparatively low effective rate, which could change in the future; </font>
  </li>
  <li>
  <p ALIGN="justify"><font SIZE="2">The price of the raw materials we buy is
  prone to significant fluctuations and volatility; </font></li>
  <li>
  <p ALIGN="justify"><font SIZE="2">Our operations are subject to political,
  social and economic risks; </font></li>
  <li>
  <p ALIGN="justify"><font SIZE="2">Our industry is subject to fluctuations in
  sales demand; </font></li>
  <li>
  <p ALIGN="justify"><font SIZE="2">Our business operations significantly rely
  on our information systems; </font></li>
  <li>
  <p ALIGN="justify"><font SIZE="2">We are subject to foreign currency risk;
  </font></li>
  <li>
  <p ALIGN="justify"><font SIZE="2">Our operations could be affected by changes
  in our relationships with our employees or changes to domestic and foreign
  employment regulations; </font></li>
  <li>
  <p ALIGN="justify"><font SIZE="2">We may suffer negative publicity if we, or
  our third-party contractors, violate labour laws or engage in practices that
  are viewed as unethical; and </font></li>
  <li>
  <p ALIGN="justify"><font SIZE="2">We depend on key management. </li>
</ul>
<p ALIGN="JUSTIFY">For a more detailed discussion of these potential business
risks, readers should review the &quot;Risks and Uncertainties&quot; section of the 2006
Annual 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>
</font>
<table CELLSPACING="0" BORDER="0" WIDTH="100%" cellpadding="0" style="border-collapse: collapse" bordercolor="#111111">
  <tr>
    <td style="border-bottom-style: solid; border-bottom-width: 1">
    <font FACE="Arial MT" SIZE="3" color="#3988C1">Forward-Looking Statements</font></td>
  </tr>
</table>
<font SIZE="2">
<p ALIGN="JUSTIFY">Certain statements included in this MD&amp;A may constitute
&quot;forward-looking statements&quot; within the meaning of the U.S. <i>Private
Securities Litigation Reform Act of 1995</i> 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 and Uncertainties&quot; section of the 2006 Annual
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 in this MD&amp;A describes our
expectations as at August 1, 2007. </p>
<p ALIGN="JUSTIFY">The results or events predicted in such forward-looking
information may differ materially from actual results or events. Material
factors, which could cause actual results or events to differ materially from a
conclusion, forecast or projection in such forward-looking information, include,
but are not limited to: </p>
<ul>
  <li>
  <p ALIGN="justify">general economic conditions such as currency exchange
  rates, commodity prices and other factors over which we have no control; </li>
  <li>
  <p ALIGN="justify">the impact of economic and business conditions, industry
  trends and other external and political factors in the countries in which we
  operate; </li>
  <li>
  <p ALIGN="justify">the intensity of competitive activity; </li>
  <li>
  <p ALIGN="justify">changes in environmental, tax, trade and other laws and
  regulations; </li>
  <li>
  <p ALIGN="justify">our ability to implement our strategies and plans; </li>
  <li>
  <p ALIGN="justify">our ability to complete and successfully integrate
  acquisitions; </li>
  <li>
  <p ALIGN="justify">changes in customer demand for our products and our ability
  to maintain customer relationships and grow our business; </li>
  <li>
  <p ALIGN="justify">the seasonality of our business; </li>
  <li>
  <p ALIGN="justify">our ability to attract and retain key personnel; </li>
  <li>
  <p ALIGN="justify">changes in accounting policies and estimates; and </li>
</ul>
</font>
<table CELLSPACING="0" BORDER="0" WIDTH="100%" cellpadding="0" style="border-collapse: collapse" bordercolor="#111111">
  <tr>
    <td><font FACE="Times New Roman PS" SIZE="2"><i>
    <p align="right">GILDAN QUARTERLY REPORT &#150; Q3 2007 p.17</i></font></td>
  </tr>
</table>
<hr color="#000000" size="5"><p Style='page-break-before:always'>
<table CELLSPACING="0" BORDER="0" WIDTH="100%" cellpadding="0" style="border-collapse: collapse" bordercolor="#111111">
  <tr>
    <td width="475">
    <img border="0" src="gildansmlogo.jpg" width="88" height="20"></td>
    <td width="483" align="right"><font FACE="Times New Roman PS" SIZE="2"><i>
    MANAGEMENT'S DISCUSSION AND ANALYSIS</i></font></td>
  </tr>
</table>
<font SIZE="2">
<ul>
  <li>disruption to manufacturing and distribution activities due to the impact
  of weather, natural disasters and other unforeseen adverse events. </li>
</ul>
<p ALIGN="JUSTIFY">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 business dispositions, acquisitions, other business
transactions, asset writedowns or other charges announced or occurring after
forward-looking statements are made. The financial impact of such transactions
and nonrecurring and other special items can be complex and necessarily depends
on the facts particular to each of them. </p>
<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>August 1, 2007 </p>
</font>
<table CELLSPACING="0" BORDER="0" WIDTH="100%" cellpadding="0" style="border-collapse: collapse" bordercolor="#111111">
  <tr>
    <td><font FACE="Times New Roman PS" SIZE="2"><i>
    <p align="right">GILDAN QUARTERLY REPORT &#150; Q3 2007 p.18</i></font></td>
  </tr>
</table>
<hr color="#000000" size="5">

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