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<SEC-DOCUMENT>0001204459-08-001664.txt : 20080813
<SEC-HEADER>0001204459-08-001664.hdr.sgml : 20080813
<ACCEPTANCE-DATETIME>20080813165642
ACCESSION NUMBER:		0001204459-08-001664
CONFORMED SUBMISSION TYPE:	6-K
PUBLIC DOCUMENT COUNT:		4
CONFORMED PERIOD OF REPORT:	20080813
FILED AS OF DATE:		20080813
DATE AS OF CHANGE:		20080813

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:			0930

	FILING VALUES:
		FORM TYPE:		6-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-14830
		FILM NUMBER:		081014072

	BUSINESS ADDRESS:	
		STREET 1:		600 BOULEVARD DE MAISONNEUVE OUEST
		STREET 2:		33RD FLOOR
		CITY:			MONTREAL
		STATE:			A8
		ZIP:			H3A 3J2
		BUSINESS PHONE:		5147352023

	MAIL ADDRESS:	
		STREET 1:		600 BOULEVARD DE MAISONNEUVE OUEST
		STREET 2:		33RD FLOOR
		CITY:			MONTREAL
		STATE:			A8
		ZIP:			H3A 3J2

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	GILDAN ACTIVEWEAR INC
		DATE OF NAME CHANGE:	19980515
</SEC-HEADER>
<DOCUMENT>
<TYPE>6-K
<SEQUENCE>1
<FILENAME>gildanf6k081308.htm
<DESCRIPTION>FORM 6-K
<TEXT>
<html>

<head>

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

<body>

<font face="Times New Roman" size="5"><b>
<div style="border-top-style: solid; border-top-width: 1; padding-top: 1">
  <hr color="#000000" size="5">
</div>
<p align="center">UNITED STATES<br>
SECURITIES AND EXCHANGE COMMISSION</b> <br>
</font><font face="Times New Roman" size="2"><b>Washington, DC 20549</b> </p>
</font><font face="Times New Roman" size="5"><b>
<p align="center">Form 6-K</b> </p>
</font><font face="Times New Roman" size="2"><b>
<p align="center">Report of Foreign Private Issuer <br>
Pursuant to Rule 13a-16 or 15d-16 of<br>
&nbsp;the Securities Exchange Act of 1934</b> </p>
<div align="center">
  <center>
  <table id="AutoNumber1" style="border-collapse: collapse" borderColor="#111111" cellSpacing="0" cellPadding="0" width="50%" border="0">
    <tr>
      <td width="50%">
      <p align="center"><font face="Times New Roman" size="2">For the month of:
      August 2008&nbsp;&nbsp;&nbsp;&nbsp; </font></td>
      <td width="50%">
      <p align="center"><font face="Times New Roman" size="2">&nbsp;Commission File
      Number: 1-14830 </font></td>
    </tr>
  </table>
  </center>
</div>
<font face="Times New Roman" size="6"><b>
<p align="center">GILDAN ACTIVEWEAR INC.</b> <br>
</font>(<i>Translation of Registrant's name into English</i>) </p>
<b>
<p align="center">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>) </p>
<p 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: </p>
<div align="center">
  <center>
  <table id="AutoNumber1" style="border-collapse: collapse" borderColor="#111111" cellSpacing="0" cellPadding="0" width="50%" border="0">
    <tr>
      <td align="middle" width="50%"><font face="Times New Roman" size="2">Form
      20-F </font><font face="Wingdings 2" size="3">&#163;</font></td>
      <td align="middle" width="50%"><font face="Times New Roman" size="2">Form
      40-F </font><font face="Wingdings 2" size="3">Q</font></td>
    </tr>
  </table>
  </center>
</div>
<p>Indicate by check mark if the registrant is submitting the Form 6-K in paper
as permitted by Regulation S-T Rule 101(b)(1): <font face="Wingdings 2" size="3">
&#163;</font></p>
<p>Indicate by check mark if the registrant is submitting the form 6-K in paper
as permitted by Regulation S-T Rule 101(b)(7): <font face="Wingdings 2" size="3">
&#163;</font></p>
<p>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 12g3-2(b) under the Securities Exchange Act of 1934:
<font face="Wingdings 2" size="3">&#163;</font></p>
<div align="center">
  <center>
  <table id="AutoNumber2" style="border-collapse: collapse" borderColor="#111111" cellSpacing="0" cellPadding="0" width="50%" border="0">
    <tr>
      <td align="middle" width="50%"><font face="Times New Roman" size="2">Yes
      </font><font face="Wingdings 2" size="3">&#163;</font></td>
      <td align="middle" width="50%"><font face="Times New Roman" size="2">No
      </font><font face="Wingdings 2" size="3">Q</font></td>
    </tr>
  </table>
  </center>
</div>
<p>If &quot;Yes&quot; is marked, indicate below the file number assigned to the registrant
in connection with Rule 12g3-2(b): N/A </p>
<hr color="#000000" SIZE="5">
<p style="page-break-before: always"><b></p>
<p align="center">SIGNATURES</b> </p>
<p style="text-indent: 30px" align="justify">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. </p>
<table style="font-size: 10pt; border-collapse: collapse" borderColor="#111111" cellSpacing="0" cellPadding="0" width="100%" border="0">
  <tr>
    <td style="font-size: 10pt" vAlign="top" align="left" width="50%">&nbsp;</td>
    <td style="font-size: 10pt" align="left" colSpan="2"><b>GILDAN ACTIVEWEAR
    INC.</b></td>
  </tr>
  <tr>
    <td style="font-size: 10pt" align="left" width="50%">&nbsp;</td>
    <td style="font-size: 10pt" vAlign="top" width="1%">&nbsp;</td>
    <td style="font-size: 10pt; border-bottom: medium none #000000" align="left" width="49%">
    &nbsp;</td>
  </tr>
  <tr>
    <td style="font-size: 10pt" align="left" width="50%">Date: August 13, 2008</td>
    <td style="font-size: 10pt" vAlign="top" width="1%">By:&nbsp;&nbsp;</td>
    <td style="font-size: 10pt; border-top: medium none; border-bottom: 1px solid #000000" align="left" width="49%">
    /s/ Lindsay Matthews &nbsp;</td>
  </tr>
  <tr>
    <td style="font-size: 10pt" align="left" width="50%">&nbsp;</td>
    <td style="font-size: 10pt" width="1%">&nbsp;</td>
    <td style="font-size: 10pt" vAlign="top" width="49%">
    <p style="margin-top: 0px; margin-bottom: 0px">Name:&nbsp;&nbsp;</p>
    <p style="margin-left: 26pt; margin-top: -11pt; margin-bottom: 0px">
    <font face="Times New Roman" size="2">Lindsay Matthews&nbsp;</font></td>
  </tr>
  <tr>
    <td style="font-size: 10pt" align="left" width="50%">&nbsp;</td>
    <td style="font-size: 10pt" width="1%">&nbsp;</td>
    <td style="font-size: 10pt" vAlign="top" width="49%">
    <p style="margin-top: 0px; margin-bottom: 0px">Title:&nbsp;&nbsp;</p>
    <p style="margin-left: 26pt; margin-top: -11pt; margin-bottom: 0px">
    <font face="Times New Roman" size="2">Director, Legal Services and<br>
    Corporate Secretary&nbsp;</font></td>
  </tr>
</table>
<p>&nbsp;</p>
<hr color="#000000" SIZE="5">
<p style="page-break-before: always"><b></p>
<p align="center">EXHIBIT INDEX</b> </p>
<table style="font-size: 10pt; border-collapse: collapse" borderColor="#111111" cellSpacing="0" cellPadding="0" width="100%" border="0">
  <tr style="font-size: 8pt" vAlign="bottom">
    <td style="border-bottom: 1px solid #000000" noWrap align="left" height="16">
    <b><font face="Times New Roman" size="2">Exhibit</font></b></td>
    <td height="16"><font face="Times New Roman" size="2">&nbsp;</font></td>
    <td style="border-bottom: 1px solid #000000" noWrap align="middle" height="16">
    <p align="left"><b><font face="Times New Roman" size="2">Description of
    Exhibit</font></b></td>
  </tr>
  <tr vAlign="bottom">
    <td vAlign="top" height="1"></td>
    <td vAlign="top" height="1"></td>
    <td vAlign="top" height="1"></td>
  </tr>
  <tr vAlign="bottom">
    <td vAlign="center" height="15"></td>
    <td vAlign="center" height="15"></td>
    <td vAlign="center" height="15"></td>
  </tr>
  <tr vAlign="bottom">
    <td vAlign="center" bgColor="#e9f1f8" height="15">
    <a style="text-decoration: none" href="gildanexh991.htm">99.1</a></td>
    <td vAlign="center" bgColor="#e9f1f8" height="15">&nbsp;</td>
    <td vAlign="center" bgColor="#e9f1f8" height="15">
    <a style="text-decoration: none" href="gildanexh991.htm">Press Release dated
    August 13, 2008</a></td>
  </tr>
</table>
<p>&nbsp;</p>
<hr color="#000000" size="5"></font>

</body>

</html>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.1
<SEQUENCE>2
<FILENAME>gildanexh991.htm
<DESCRIPTION>EXHIBIT 99.1
<TEXT>
<html>

<head>

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

<body>

<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="gildan1.jpg" width="265" height="67"></p>
<font FACE="Times New Roman" size="2"><i><b>
<p align="right">For Immediate Release </p>
</b></i>
<p ALIGN="justify">Contact: </p>
<p ALIGN="justify" style="margin-left: 10%; margin-top: -25.5pt">Laurence G.
Sellyn, Executive Vice-President, <br>
Chief Financial and Administrative Officer <br>
Tel: (514) 343-8805 <br>
Email: <u>lsellyn@gildan.com </u></p>
<p ALIGN="justify" style="margin-left: 10%">Sophie Argiriou, Director, <br>
Investor Communications <br>
Tel: (514) 343-8815 <br>
Email: <u>sargiriou@gildan.com</u></p>
</font><font FACE="Times New Roman" size="5"><b>
<p align="center"><u>Gildan Activewear Announces Fiscal 2008 Third Quarter
Results </u></p>
</b></font><font FACE="Times New Roman" size="2">
<p align="center">- </font><b><font SIZE="2" face="Times New Roman">Results and
Full Year Forecast in Line with Most Recent Guidance &#150; </p>
<p ALIGN="JUSTIFY">Montr&#233;al, Wednesday, August 13, 2008</font></b><font FACE="Times New Roman" SIZE="2">
&#150; Gildan Activewear Inc. (GIL; TSX and NYSE) today announced its financial
results for its third fiscal quarter ended July 6, 2008. The Company also
reconfirmed its most recent full year EPS guidance for fiscal 2008, which it had
revised on April 29, 2008. </p>
<p align="justify"><u>Third Quarter Sales and Earnings </u></p>
<p ALIGN="JUSTIFY">Gildan reported net earnings of U.S. $54.0 million and
diluted EPS of U.S. $0.44 for the third quarter of fiscal 2008. Results for the
third quarter include U.S. $2.3 million or U.S. $0.02 per share of restructuring
charges, related to ongoing carrying costs pursuant to the closure of Canadian
and U.S. manufacturing facilities, and a planned consolidation of sewing
operations in Haiti. In the third quarter of fiscal 2007, the Company reported
net earnings of U.S. $52.4 million or U.S. $0.43 per share, including $4.6
million or U.S. $0.04 per share of restructuring charges related to
manufacturing closures. Before reflecting the impact of restructuring charges in
both fiscal years, adjusted net earnings and adjusted diluted EPS were U.S.
$56.3 million and U.S. $0.46 respectively, compared to adjusted net earnings of
U.S. $57.0 million and EPS of U.S. $0.47 in the third quarter of fiscal 2007.
</p>
<p ALIGN="JUSTIFY">The change in adjusted EPS, before restructuring charges, was
due primarily to higher activewear selling prices and unit sales volumes, which
were more than offset by higher cotton and energy costs, more unfavourable
activewear product-mix, higher selling, general and administrative and
depreciation expenses, the non-recurrence of a prior year income tax recovery
which </font><font FACE="Times New Roman PSMT" SIZE="2">positively impacted EPS
by U.S. $0.05 in the third quarter of last year, a provision for a doubtful
receivable account, and charges to write off or dispose of surplus fixed assets. </font>
</p>
<p ALIGN="center"><font FACE="Times New Roman PSMT" SIZE="2">1</p>
<hr color="#000000" size="5"><p Style='page-break-before:always'>
<p ALIGN="JUSTIFY">As reflected in the Company's guidance for the year, the
third quarter of the 2008 fiscal year comprised 14 weeks instead of the normal
13 weeks for a fiscal quarter. The inclusion of an extra week is required in
every fifth or sixth fiscal year to maintain the alignment of the Company's
financial reporting cycle with the calendar year. Consistent with the Company's
prior practice, the extra week is included in the third quarter. </p>
<p ALIGN="JUSTIFY">The Company's results for its third fiscal quarter were in
line with its most recent EPS guidance. More favourable than projected activewear selling prices, unit volumes and product-mix were offset by a
provision for a doubtful receivable account, and charges to write off or dispose
of surplus fixed assets. </p>
<p ALIGN="JUSTIFY">Sales in the third quarter amounted to U.S. $380.8 million,
up 30.6% from U.S. $291.6 million in the third quarter of last year. The
increase in sales revenues was due to an increase of U.S. $43.8 million in sock
sales due to the acquisition of V.I. Prewett &amp; Son in the first quarter of
fiscal 2008, an approximate 6% increase in activewear unit selling prices and a
10.4% increase in unit sales volumes for activewear and underwear.</font><font FACE="Times New Roman PS" SIZE="2"><b>
</b></font><font FACE="Times New Roman PSMT" SIZE="2">Growth in activewear unit
sales was significantly constrained by lack of inventory, as a result of lower
than anticipated production from the Company's Dominican Republic textile
manufacturing facility. The Company has made good progress in improving the
performance of the Dominican Republic facility during the third quarter,
although its inventory levels for activewear continue to be very low. </p>
<p ALIGN="JUSTIFY">The growth in activewear unit sales in the third fiscal
quarter was due to the additional week of shipments and continuing market share
penetration in all product categories in the U.S. wholesale distributor channel.
The table below summarizes data from the S.T.A.R.S. report produced by ACNielsen
Market Decisions, which tracks unit volume shipments from U.S. wholesale
distributors to U.S. screenprinters, for the quarter ended June 30, 2008.</font><font FACE="Arial MT" SIZE="2">
</p>
</font>
<table CELLSPACING="0" BORDER="0" WIDTH="100%" style="border-collapse: collapse" bordercolor="#111111" cellpadding="0">
  <tr>
    <td align="center"><font FACE="Times New Roman PS" SIZE="2"><b><u>Gildan</u></b></font></td>
    <td align="center"><font FACE="Times New Roman PS" SIZE="2"><b><u>Gildan</u></b></font></td>
    <td width="40%" align="center">&nbsp;</td>
    <td align="center"><font FACE="Times New Roman PS" SIZE="2"><b><u>Gildan</u></b></font></td>
    <td align="center"><font FACE="Times New Roman PS" SIZE="2"><b><u>Industry</u></b></font></td>
  </tr>
  <tr>
    <td align="center"><font FACE="Times New Roman PS" SIZE="2"><b><u>Market
    Share</u></b></font></td>
    <td align="center"><font FACE="Times New Roman PS" SIZE="2"><b><u>Market
    Share</u></b></font></td>
    <td width="40%" align="center">&nbsp;</td>
    <td align="center"><font FACE="Times New Roman PS" SIZE="2"><b><u>Unit
    Growth</u></b></font></td>
    <td align="center"><font FACE="Times New Roman PS" SIZE="2"><b><u>Unit
    Growth</u></b></font></td>
  </tr>
  <tr>
    <td align="center"><font FACE="Times New Roman PS" SIZE="2"><b><u>Q3 2008</u></b></font></td>
    <td align="center"><font FACE="Times New Roman PS" SIZE="2"><b><u>Q3 2007</u></b></font></td>
    <td width="40%" align="center">&nbsp;</td>
    <td align="center"><font FACE="Times New Roman PS" SIZE="2"><b><u>Q3 2008
    vs.</u></b></font></td>
    <td align="center"><font FACE="Times New Roman PS" SIZE="2"><b><u>Q3 2008
    vs.</u></b></font></td>
  </tr>
  <tr>
    <td width="15%" align="center">&nbsp;</td>
    <td width="15%" align="center">&nbsp;</td>
    <td width="40%" align="center">&nbsp;</td>
    <td width="15%" align="center"><font FACE="Times New Roman PS" SIZE="2"><b>
    <u>Q3 2007</u></b></font></td>
    <td width="15%" align="center"><font FACE="Times New Roman PS" SIZE="2"><b>
    <u>Q3 2007</u></b></font></td>
  </tr>
  <tr>
    <td align="center"><font FACE="Times New Roman PSMT" SIZE="2">51.9%</font></td>
    <td align="center"><font FACE="Times New Roman PSMT" SIZE="2">47.6%</font></td>
    <td width="40%" align="center"><font FACE="Times New Roman PSMT" SIZE="2">
    All activewear products</font></td>
    <td align="center"><font FACE="Times New Roman PSMT" SIZE="2">5.5%</font></td>
    <td align="center"><font FACE="Times New Roman PSMT" SIZE="2">(3.5)%</font></td>
  </tr>
  <tr>
    <td align="center">&nbsp;</td>
    <td align="center">&nbsp;</td>
    <td width="40%" align="center">&nbsp;</td>
    <td align="center">&nbsp;</td>
    <td align="center">&nbsp;</td>
  </tr>
  <tr>
    <td align="center"><font FACE="Times New Roman PSMT" SIZE="2">52.6%</font></td>
    <td align="center"><font FACE="Times New Roman PSMT" SIZE="2">48.3%</font></td>
    <td width="40%" align="center"><font FACE="Times New Roman PSMT" SIZE="2">
    T-shirts</font></td>
    <td align="center"><font FACE="Times New Roman PSMT" SIZE="2">5.5%</font></td>
    <td align="center"><font FACE="Times New Roman PSMT" SIZE="2">(3.2)%</font></td>
  </tr>
  <tr>
    <td align="center">&nbsp;</td>
    <td align="center">&nbsp;</td>
    <td width="40%" align="center">&nbsp;</td>
    <td align="center">&nbsp;</td>
    <td align="center">&nbsp;</td>
  </tr>
  <tr>
    <td align="center"><font FACE="Times New Roman PSMT" SIZE="2">51.7%</font></td>
    <td align="center"><font FACE="Times New Roman PSMT" SIZE="2">42.2%</font></td>
    <td width="40%" align="center"><font FACE="Times New Roman PSMT" SIZE="2">
    Fleece</font></td>
    <td align="center"><font FACE="Times New Roman PSMT" SIZE="2">23.4%</font></td>
    <td align="center"><font FACE="Times New Roman PSMT" SIZE="2">0.3%</font></td>
  </tr>
  <tr>
    <td align="center">&nbsp;</td>
    <td align="center">&nbsp;</td>
    <td width="40%" align="center">&nbsp;</td>
    <td align="center">&nbsp;</td>
    <td align="center">&nbsp;</td>
  </tr>
  <tr>
    <td align="center"><font FACE="Times New Roman PSMT" SIZE="2">34.6%</font></td>
    <td align="center"><font FACE="Times New Roman PSMT" SIZE="2">34.0%</font></td>
    <td width="40%" align="center"><font FACE="Times New Roman PSMT" SIZE="2">
    Sport shirts</font></td>
    <td align="center"><font FACE="Times New Roman PSMT" SIZE="2">(10.6)%</font></td>
    <td align="center"><font FACE="Times New Roman PSMT" SIZE="2">(12.6)%</font></td>
  </tr>
</table>
<font FACE="Times New Roman PSMT" SIZE="2">
<p align="justify">Although overall industry shipments from distributors to
screenprinters declined by 3.5% during the June quarter, according to the
S.T.A.R.S. report, distributor demand for Gildan products remained very strong.
The Company had a high open order position throughout the quarter, which has
continued into the fourth quarter. Overall inventories in the channel continue
to be in good balance in relation to expected industry demand. </p>
<p align="center">2</p>
<hr color="#000000" size="5"><p Style='page-break-before:always'>
<p ALIGN="JUSTIFY">During the third quarter, the Company began shipment of its
first retail underwear program. The Company is pleased with consumer demand for
its retail products during the third quarter, and with the improvement in its
service levels to mass retailers. Also, the Company has continued to implement
its strategy to rationalize its sock product-mix, in order to focus on basic
higher-volume products and programs which capitalize on Gildan's modern
large-scale manufacturing capacity. </p>
<p ALIGN="JUSTIFY">Gross margins in the third quarter of fiscal 2008 declined
slightly to 31.6%, compared to 32.4% in the third quarter of fiscal 2007. The
positive gross margin impact of higher activewear selling prices and favourable
manufacturing efficiencies arising from the consolidation of textile facilities
in the fourth quarter of fiscal 2007 was more than offset by higher cotton,
energy, chemicals and transportation costs, the impact of production
inefficiencies in the Dominican Republic textile facility, as inventories
produced in the second fiscal quarter were consumed in cost of sales, a lower
proportion of high-valued sport shirt sales, and the impact of the acquisition
of Prewett. Socks manufactured by Gildan in the U.S. have lower gross margins
than activewear and sock products manufactured in the Company's Honduran
manufacturing facilities, and therefore dilute overall gross margins. </p>
<p ALIGN="JUSTIFY">Selling, general and administrative expenses were U.S. $43.9
million, or 11.5% of sales, compared to U.S. $28.4 million, or 9.7% of sales in
the third quarter of fiscal 2007. The increase in selling, general and
administrative expenses was due to the acquisition of Prewett, higher
distribution and transportation expenses, a provision of U.S. $2.6 million for
non-collection of accounts receivable from a U.S. retail customer, which filed
for bankruptcy protection during the third quarter, higher corporate
infrastructure costs, including the impact of the higher-valued Canadian dollar,
a charge for the disposal of surplus fixed assets, and professional fees for
special projects. The increase of U.S. $5.1 million in depreciation and
amortization expenses was primarily due to the ramp-up of major capacity
expansion projects and the acquisition of Prewett, including the amortization of
acquired intangible assets, as well as a charge to write down surplus fixed
assets. </p>
<p align="justify"><u>Year-to-date Sales and Earnings </u></p>
<p ALIGN="JUSTIFY">Sales for the first nine months of fiscal 2008 were U.S.
$925.0 million, up 30.4% compared to the same period last year. The increase in
sales was due to a U.S. $115.6 million increase in sock sales due to the
acquisition of Prewett, a 10.7% increase in unit sales volumes for activewear
and underwear, higher activewear selling prices and a higher valued product-mix
for activewear. </p>
<p ALIGN="JUSTIFY">For the first nine months of fiscal 2008, net earnings
amounted to U.S. $123.2 million, or U.S. $1.01 per share on a diluted basis,
compared to net earnings of U.S. $89.2 million, or U.S. $0.73 per share, for the
same period in fiscal 2007. Before the impact of restructuring and other
charges, adjusted net earnings in the first nine months of fiscal 2008 amounted
to U.S. $127.1 million, or U.S. $1.04 per share on a diluted basis, compared to
adjusted net earnings of U.S. $111.5 million, or U.S. $0.92 per share on a
diluted basis, for the same period last year. The increase in adjusted net
earnings and adjusted diluted EPS in fiscal 2008 was primarily due to growth in
unit sales volumes for activewear and underwear, higher activewear selling
prices, more favourable activewear product-mix and further manufacturing
efficiencies for activewear. These positive factors were partially offset by
increases in cotton, energy, chemicals and transportation costs, production
inefficiencies in the Dominican Republic textile facility, higher selling,
general and administrative and depreciation and amortization expenses, and the
non-recurrence of the income tax recovery in the third quarter of fiscal 2007.
Net earnings and diluted EPS for the first nine months of fiscal 2008 were also
negatively impacted by additional costs to service mass-market retailers in the
second quarter during the integration of retail information systems, a
write-down of inventories of discontinued sock product-lines in the second
quarter, a provision for non-collection of accounts receivable from a U.S.
retail customer in the third quarter, and charges in the third quarter for the
write-down or disposal of surplus assets. </p>
<p ALIGN="center">3</p>
<hr color="#000000" size="5"><p Style='page-break-before:always'>
<p><u>Cash Flow </u></p>
<p ALIGN="JUSTIFY">Net earnings before depreciation and other non-cash items in
the third quarter amounted to U.S. $73.6 million, which, together with increased
accounts payable, was used to finance seasonal increases in accounts receivable,
and capital expenditures amounting to U.S. $19.8 million. Free cash flow in the
third quarter amounted to U.S. $21.5 million. Free cash flow for the first nine
months of fiscal 2008 amounted to U.S. $92.2 million. At the end of the third
quarter, the Company continued to have significant unused financing capacity to
be able to pursue its organic growth plans and to be in a position to implement
selective acquisition opportunities. </p>
<p><u>Outlook </u></p>
<p>The Company continues to be comfortable with its previous guidance of EPS of
U.S. $1.45 &#150; U.S. $1.50 for the full 2008 fiscal year. </p>
<p ALIGN="JUSTIFY">The Company has determined that it is not yet in a position
to provide earnings guidance for fiscal 2009, due to lack of visibility on
certain key external factors impacting the Company's results. The Company
continues to believe that it will generate significant manufacturing
efficiencies in fiscal 2009 from the improved performance of the Dominican
Republic textile facility and the successful ramp-up of the Rio Nance II and III
capacity expansions in Honduras, as well as from the assumed non-recurrence of
acquisition integration issues which negatively impacted results in fiscal 2008.
The Company also expects to benefit from a more favourable product-mix, as a
result of a higher proportion of ring-spun products and fleece, and continuing
to rationalize its sock product-mix. However, even with these positive factors,
further increases in selling prices will be required in order to offset the
impact of projected significant increases in cotton and energy costs, as well as
inflation in other cost inputs such as chemicals, dyestuffs and labour rates.
The Company has yet to purchase a significant portion of its cotton requirements
for fiscal 2009. In this environment, the Company will seek to obtain selling
price increases in both the wholesale and retail channels, and expects to
provide earnings guidance at such time as it has sufficient visibility on all of
the major assumptions impacting its gross margins and EPS. </p>
<p ALIGN="center">4</p>
</font><hr color="#000000" size="5"><p Style='page-break-before:always'><font FACE="Times New Roman PSMT" SIZE="2">
<p align="justify">The Company currently expects to have production capacity for
activewear and underwear combined of approximately 51 million dozens in fiscal
2009, based on its projected product-mix, including a higher than previously
projected proportion of fleece and ring-spun products. A portion of the
Company's activewear capacity in fiscal 2009 is projected to be utilized to
rebuild inventories from current low levels. Capital expenditures for fiscal
2009 are projected at approximately U.S. $160 million, primarily for the Rio
Nance IV and V capacity expansion projects. </p>
<p align="justify"><u>Disclosure of Outstanding Share Data </u></p>
<p align="justify">As of July 31, 2008, there were 120,525,039 common shares
issued and outstanding along with 884,071 stock options and 906,800 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 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.
</p>
<p align="justify"><u>Information for shareholders </u></p>
<p align="justify">This release should be read in conjunction with Gildan's 2008
Third Quarter MD&amp;A dated August 12, 2008 (available at <u><font color="#0000FF">
http://gildan.com/corporate/IR/quarterlyReports.cfm</font></u>) which is
incorporated by reference in this release, filed by Gildan with the Canadian
securities regulatory authorities and with the U.S. Securities and Exchange
Commission. </p>
<p align="justify">Gildan Activewear Inc. will hold a conference call to discuss
these results today at 8:30 AM Eastern Time. The conference call can be accessed
by dialing 800-261-3417</font><font FACE="Times New Roman PS" SIZE="2"><b> </b>
</font><font FACE="Times New Roman PSMT" SIZE="2">(Canada &amp; U.S.) or
617-614-3673 (international) and entering passcode 90911731, or by live sound
webcast on Gildan's Internet site (&quot;Investor Relations&quot; section) at the
following address: www.gildan.com. If you are unable to participate in the
conference call, a replay will be available starting that same day at 10:30 AM
EDT by dialing 888-286-8010 (Canada &amp; U.S.) or 617-801-6888 (international) and
entering passcode 23643734, until Wednesday, August 20, 2008 at midnight, or by
sound web cast on Gildan's Internet site for 30 days. </p>
<p align="justify"><u>Profile </u></p>
<p align="justify">Gildan is a vertically-integrated marketer and manufacturer
of quality branded basic apparel. The Company is the leading supplier of
activewear for the wholesale imprinted sportswear market in the U.S. and Canada,
and also a leading supplier to this market in Europe. The Company sells
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. In addition
to continuing its growth within the wholesale channel, Gildan is implementing a
major growth initiative to sell athletic socks, underwear and activewear to
mass-market retailers in North America. </p>
<p align="center">5</p>
<hr color="#000000" size="5"><p Style='page-break-before:always'></font><font FACE="Times New Roman PS" SIZE="2"><i>
<p align="justify"><u>Forward-Looking Statements </u></p>
<p ALIGN="JUSTIFY">Certain statements included in this press release, in
particular the &quot;Outlook&quot; section, constitute &quot;forward-looking statements&quot; within
the meaning of the U.S. Private Securities Litigation Reform Act of 1995 and
Canadian securities legislation and regulations, and are subject to important
risks, uncertainties and assumptions. This forward-looking information includes
amongst others, information with respect to our objectives and the strategies to
achieve these objectives, as well as information with respect to our beliefs,
plans, expectations, anticipations, estimates and intentions. Forward-looking
statements generally can be identified by the use of conditional or
forward-looking terminology such as &quot;may&quot;, &quot;will&quot;, &quot;expect&quot;, &quot;intend&quot;,
&quot;estimate&quot;, &quot;project&quot;, &quot; assume&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 2007 Annual MD&amp;A, as
subsequently updated in our first, second and third quarter 2008 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 press release,
in particular the &quot;Outlook&quot; section. </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: general economic conditions such as commodity prices,
currency exchange rates, interest rates and other factors over which we have no
control; the impact of economic and business conditions, industry trends and
other external, political and social factors in the countries in which we
operate; the intensity of competitive activity; changes in environmental, tax,
trade, employment and other laws and regulations; our ability to implement our
strategies and plans; our ability to complete and successfully integrate
acquisitions; our reliance on a small number of significant customers; changes
in consumer preferences, customer demand for our products and our ability to
maintain customer relationships and grow our business; our customers do not
commit to minimum quantity purchases; the seasonality of our business; our
ability to attract and retain key personnel; high reliance on computerized
information systems; changes in accounting policies and estimates; and
disruption to manufacturing and distribution activities due to labour
disruptions, bad weather, natural disasters and other unforeseen adverse events.
</p>
<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 non-recurring and other special items can be complex and necessarily depends
on the facts particular to each of them.</p>
</i>
<p ALIGN="center">6</p>
</font><hr color="#000000" size="5"><p Style='page-break-before:always'>
<font FACE="Times New Roman PS" SIZE="2"><i>
<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. The purpose of the forward-looking
statements is to provide the reader with a description of management's
expectations regarding the Company's fiscal 2008 and 2009 financial performance
and may not be appropriate for other purposes. Furthermore, unless otherwise
stated, the forward-looking statements contained in this press release are made
as of the date of this press release, 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 press release are expressly qualified by this cautionary
statement. </p>
<p><u>Non-GAAP Financial Measures </u></p>
<p ALIGN="JUSTIFY">This release includes reference to certain non-GAAP financial
measures such as adjusted net earnings, adjusted diluted earnings per share and
free cash flow. 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. The terms and definitions of the non-GAAP measures used
in this press release and a reconciliation of each non-GAAP measure to the most
directly comparable GAAP measure are provided below. </p>
<p ALIGN="JUSTIFY">Adjusted net earnings and adjusted diluted earnings per share
are calculated as net earnings and earnings per share excluding restructuring
and other charges, as discussed in Note 7 to the unaudited interim consolidated
financial statements. The Company uses and presents these non-GAAP measures to
assess its operating performance from one period to the next without the
variation caused by restructuring and other charges that could potentially
distort the analysis of trends in our business performance. Excluding these
items does not imply they are necessarily nonrecurring. </p>
</i></font>
<table CELLSPACING="0" BORDER="0" WIDTH="100%" style="border-collapse: collapse" bordercolor="#111111" cellpadding="0">
  <tr>
    <td width="40%" style="border-bottom-style: solid; border-bottom-width: 1">
    <font FACE="Times New Roman" SIZE="2"><i>(in US$ millions, except per share
    amounts)</i></font></td>
    <td width="15%" align="right" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td width="15%" align="right" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td width="15%" align="right" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td width="15%" align="right" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
  </tr>
  <tr>
    <td width="40%" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1">
    <font FACE="Times New Roman" SIZE="2"><b>Q3 2008</b></font></td>
    <td align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1">
    <font FACE="Times New Roman" SIZE="2">Q3 2007</font></td>
    <td align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1">
    <font FACE="Times New Roman" SIZE="2"><b>YTD 2008</b></font></td>
    <td align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1">
    <font FACE="Times New Roman" SIZE="2">YTD 2007</font></td>
  </tr>
  <tr>
    <td width="40%" style="border-top-style: solid; border-top-width: 1">
    <font FACE="Times New Roman" SIZE="2">Net earnings</font></td>
    <td align="right" style="border-top-style: solid; border-top-width: 1">
    <font FACE="Times New Roman" SIZE="2"><b>54.0</b></font></td>
    <td align="right" style="border-top-style: solid; border-top-width: 1">
    <font FACE="Times New Roman" SIZE="2">52.4</font></td>
    <td align="right" style="border-top-style: solid; border-top-width: 1">
    <font FACE="Times New Roman" SIZE="2"><b>123.2</b></font></td>
    <td align="right" style="border-top-style: solid; border-top-width: 1">
    <font FACE="Times New Roman" SIZE="2">89.2</font></td>
  </tr>
  <tr>
    <td width="40%"><font FACE="Times New Roman" SIZE="2">Restructuring and
    other charges</font></td>
    <td align="right"><font FACE="Times New Roman" SIZE="2"><b>2.3</b></font></td>
    <td align="right"><font FACE="Times New Roman" SIZE="2">4.6</font></td>
    <td align="right"><font FACE="Times New Roman" SIZE="2"><b>3.9</b></font></td>
    <td align="right"><font FACE="Times New Roman" SIZE="2">22.3</font></td>
  </tr>
  <tr>
    <td width="40%" style="border-bottom-style: solid; border-bottom-width: 1">
    <font FACE="Times New Roman" SIZE="2">Less: income tax effect thereon</font></td>
    <td align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <font FACE="Times New Roman" SIZE="2"><b>-</b></font></td>
    <td align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <font FACE="Times New Roman" SIZE="2">-</font></td>
    <td align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <font FACE="Times New Roman" SIZE="2"><b>-</b></font></td>
    <td align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <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">
    <font FACE="Times New Roman" SIZE="2">Adjusted net earnings</font></td>
    <td 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"><b>56.3</b></font></td>
    <td 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">57.0</font></td>
    <td 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"><b>127.1</b></font></td>
    <td 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">111.5</font></td>
  </tr>
  <tr>
    <td width="40%">&nbsp;</td>
    <td align="right">&nbsp;</td>
    <td align="right">&nbsp;</td>
    <td align="right">&nbsp;</td>
    <td align="right">&nbsp;</td>
  </tr>
  <tr>
    <td width="40%"><font FACE="Times New Roman" SIZE="2">Diluted EPS</font></td>
    <td align="right"><font FACE="Times New Roman" SIZE="2"><b>0.44</b></font></td>
    <td align="right"><font FACE="Times New Roman" SIZE="2">0.43</font></td>
    <td align="right"><font FACE="Times New Roman" SIZE="2"><b>1.01</b></font></td>
    <td align="right"><font FACE="Times New Roman" SIZE="2">0.73</font></td>
  </tr>
  <tr>
    <td width="40%" style="border-bottom-style: solid; border-bottom-width: 1">
    <font FACE="Times New Roman" SIZE="2">Restructuring and other charges, net
    of tax</font></td>
    <td align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <font FACE="Times New Roman" SIZE="2"><b>0.02</b></font></td>
    <td align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <font FACE="Times New Roman" SIZE="2">0.04</font></td>
    <td align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <font FACE="Times New Roman" SIZE="2"><b>0.03</b></font></td>
    <td align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <font FACE="Times New Roman" SIZE="2">0.18</font></td>
  </tr>
  <tr>
    <td width="40%" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1">
    <font FACE="Times New Roman" SIZE="2">Adjusted diluted EPS</font></td>
    <td align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1">
    <font FACE="Times New Roman" SIZE="2"><b>0.46</b></font></td>
    <td align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1">
    <font FACE="Times New Roman" SIZE="2">0.47</font></td>
    <td align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1">
    <font FACE="Times New Roman" SIZE="2"><b>1.04</b></font></td>
    <td align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1">
    <font FACE="Times New Roman" SIZE="2">0.92</font></td>
  </tr>
  <tr>
    <td COLSPAN="5"><font FACE="Times New Roman" SIZE="2"><i>Certain minor
    rounding variances exist between the financial statements and this summary.
    EPS may not add due to rounding.</i></font></td>
  </tr>
  <tr>
    <td COLSPAN="5">&nbsp;</td>
  </tr>
  <tr>
    <td COLSPAN="5">
    <p align="center"><font size="2">7</font></td>
  </tr>
</table>
<hr color="#000000" size="5"><p Style='page-break-before:always'><font FACE="Times New Roman PS" SIZE="2"><i>
<p ALIGN="JUSTIFY">Free cash flow is defined as cash from operating activities
including net changes in non-cash working capital balances, less cash flow used
in investing activities excluding business acquisitions. We consider free cash
flow to be an important indicator of the financial strength and performance of
our business, because it shows how much cash is available after capital
expenditures to repay debt and to reinvest in our business. We believe this
measure is commonly used by investors and analysts when valuing a business and
its underlying assets. </p>
</i></font>
<table CELLSPACING="0" BORDER="0" WIDTH="100%" style="border-collapse: collapse" bordercolor="#111111" cellpadding="0">
  <tr>
    <td><font FACE="Times New Roman" SIZE="2"><i>(in US$ millions)</i></font></td>
    <td width="15%" align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td width="15%" align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td width="15%" align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td width="15%" align="right">
    <p style="margin-right: 4">&nbsp;</td>
  </tr>
  <tr>
    <td style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <font FACE="Times New Roman" SIZE="2"><b>
    <p style="margin-right: 4">Q3 2008</b></font></td>
    <td align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <font FACE="Times New Roman" SIZE="2">
    <p style="margin-right: 4">Q3 2007</font></td>
    <td align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <font FACE="Times New Roman" SIZE="2"><b>
    <p style="margin-right: 4">YTD 2008</b></font></td>
    <td align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <font FACE="Times New Roman" SIZE="2">
    <p style="margin-right: 4">YTD 2007</font></td>
  </tr>
  <tr>
    <td style="border-top-style: solid; border-top-width: 1">
    <font FACE="Times New Roman" SIZE="2">Cash flows from operating activities</font></td>
    <td align="right" style="border-top-style: solid; border-top-width: 1">
    <font FACE="Times New Roman" SIZE="2"><b>
    <p style="margin-right: 4">40.7</b></font></td>
    <td align="right" style="border-top-style: solid; border-top-width: 1">
    <font FACE="Times New Roman" SIZE="2">
    <p style="margin-right: 4">32.3</font></td>
    <td align="right" style="border-top-style: solid; border-top-width: 1">
    <font FACE="Times New Roman" SIZE="2"><b>
    <p style="margin-right: 4">168.4</b></font></td>
    <td align="right" style="border-top-style: solid; border-top-width: 1">
    <font FACE="Times New Roman" SIZE="2">
    <p style="margin-right: 4">72.1</font></td>
  </tr>
  <tr>
    <td><font FACE="Times New Roman" SIZE="2">Cash flows from investing
    activities</font></td>
    <td align="right"><font FACE="Times New Roman" SIZE="2"><b>(19.2)</b></font></td>
    <td align="right"><font FACE="Times New Roman" SIZE="2">(29.2)</font></td>
    <td align="right"><font FACE="Times New Roman" SIZE="2"><b>(213.0)</b></font></td>
    <td align="right"><font FACE="Times New Roman" SIZE="2">(103.7)</font></td>
  </tr>
  <tr>
    <td><font FACE="Times New Roman" SIZE="2">Add back:</font></td>
    <td align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td align="right">
    <p style="margin-right: 4">&nbsp;</td>
  </tr>
  <tr>
    <td><font FACE="Times New Roman" SIZE="2">Acquisition of Prewett</font></td>
    <td align="right"><font FACE="Times New Roman" SIZE="2"><b>
    <p style="margin-right: 4">-</b></font></td>
    <td align="right"><font FACE="Times New Roman" SIZE="2">
    <p style="margin-right: 4">-</font></td>
    <td align="right"><font FACE="Times New Roman" SIZE="2"><b>
    <p style="margin-right: 4">126.8</b></font></td>
    <td align="right"><font FACE="Times New Roman" SIZE="2">
    <p style="margin-right: 4">-</font></td>
  </tr>
  <tr>
    <td style="border-bottom-style: solid; border-bottom-width: 1">
    <font FACE="Times New Roman" SIZE="2">Restricted cash related to acquisition</font></td>
    <td align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <font FACE="Times New Roman" SIZE="2"><b>
    <p style="margin-right: 4">-</b></font></td>
    <td align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <font FACE="Times New Roman" SIZE="2">
    <p style="margin-right: 4">-</font></td>
    <td align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <font FACE="Times New Roman" SIZE="2"><b>
    <p style="margin-right: 4">10.0</b></font></td>
    <td align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <font FACE="Times New Roman" SIZE="2">
    <p style="margin-right: 4">-</font></td>
  </tr>
  <tr>
    <td style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 2">
    <font FACE="Times New Roman" SIZE="2"><b>Free cash flow</b></font></td>
    <td 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"><b>
    <p style="margin-right: 4">21.5</b></font></td>
    <td 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">
    <p style="margin-right: 4">3.1</font></td>
    <td 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"><b>
    <p style="margin-right: 4">92.2</b></font></td>
    <td 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">(31.6)</font></td>
  </tr>
  <tr>
    <td COLSPAN="5"><font FACE="Times New Roman" SIZE="2"><i>Certain minor
    rounding variances exist between the financial statements and this summary.</i></font></td>
  </tr>
</table>
<font FACE="Times New Roman PS" SIZE="2"><i>
<p align="center">- 30 - </p>
</i></font>
<p align="center">&nbsp;</p>
<p align="center"><font size="2">8</font></p>
<hr color="#000000" size="5"><p Style='page-break-before:always'><b>
<p align="center">Gildan Activewear Inc.<font SIZE="2"><br>
Interim Consolidated Balance Sheets</font></b><font SIZE="2"><br>
(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>&nbsp;</td>
    <td align="right" nowrap>&nbsp;</td>
    <td WIDTH="10%" align="right" nowrap><font SIZE="2"><u>July 6, 2008</u></font></td>
    <td COLSPAN="2" align="right" nowrap><font SIZE="2"><u>September 30,
    2007</u></font></td>
    <td align="right" nowrap>&nbsp;</td>
    <td align="right" nowrap><font SIZE="2"><u>July 1, 2007</u></font></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td WIDTH="2%" align="right" nowrap>&nbsp;</td>
    <td WIDTH="10%" align="right" nowrap><font SIZE="2">(unaudited)</font></td>
    <td WIDTH="2%" align="right" nowrap>&nbsp;</td>
    <td WIDTH="10%" align="right" nowrap><font SIZE="2">(audited)</font></td>
    <td WIDTH="2%" align="right" nowrap>&nbsp;</td>
    <td WIDTH="10%" align="right" nowrap><font SIZE="2">(unaudited)</font></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td WIDTH="2%" align="right">&nbsp;</td>
    <td align="right">&nbsp;</td>
    <td WIDTH="2%" align="right">&nbsp;</td>
    <td align="right">&nbsp;</td>
    <td WIDTH="2%" align="right">&nbsp;</td>
    <td align="right">&nbsp;</td>
  </tr>
  <tr>
    <td><font SIZE="2"><b>Assets</b></font></td>
    <td align="right">&nbsp;</td>
    <td align="right">&nbsp;</td>
    <td align="right">&nbsp;</td>
    <td align="right">&nbsp;</td>
    <td align="right">&nbsp;</td>
    <td align="right">&nbsp;</td>
  </tr>
  <tr>
    <td><font SIZE="2">Current assets:</font></td>
    <td align="right">&nbsp;</td>
    <td align="right">&nbsp;</td>
    <td align="right">&nbsp;</td>
    <td align="right">&nbsp;</td>
    <td align="right">&nbsp;</td>
    <td align="right">&nbsp;</td>
  </tr>
  <tr>
    <td><font SIZE="2">
    <p style="margin-left: 15">Cash and cash equivalents</font></td>
    <td align="right"><font SIZE="2">$</font></td>
    <td align="right"><font SIZE="2">13,195</font></td>
    <td align="right"><font SIZE="2">$</font></td>
    <td align="right"><font SIZE="2">9,250</font></td>
    <td align="right"><font SIZE="2">$</font></td>
    <td align="right"><font SIZE="2">7,537</font></td>
  </tr>
  <tr>
    <td><font SIZE="2">
    <p style="margin-left: 15">Accounts receivable</font></td>
    <td align="right">&nbsp;</td>
    <td align="right"><font SIZE="2">254,511</font></td>
    <td align="right">&nbsp;</td>
    <td align="right"><font SIZE="2">206,088</font></td>
    <td align="right">&nbsp;</td>
    <td align="right"><font SIZE="2">183,557</font></td>
  </tr>
  <tr>
    <td><font SIZE="2">
    <p style="margin-left: 15">Inventories</font></td>
    <td align="right">&nbsp;</td>
    <td align="right"><font SIZE="2">290,845</font></td>
    <td align="right">&nbsp;</td>
    <td align="right"><font SIZE="2">239,963</font></td>
    <td align="right">&nbsp;</td>
    <td align="right"><font SIZE="2">231,538</font></td>
  </tr>
  <tr>
    <td><font SIZE="2">
    <p style="margin-left: 15">Prepaid expenses and deposits</font></td>
    <td align="right">&nbsp;</td>
    <td align="right"><font SIZE="2">11,255</font></td>
    <td align="right">&nbsp;</td>
    <td align="right"><font SIZE="2">7,959</font></td>
    <td align="right">&nbsp;</td>
    <td align="right"><font SIZE="2">9,573</font></td>
  </tr>
  <tr>
    <td><font SIZE="2">
    <p style="margin-left: 15">Future income taxes</font></td>
    <td align="right">&nbsp;</td>
    <td align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2">3,765</font></td>
    <td align="right">&nbsp;</td>
    <td align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2">2,610</font></td>
    <td align="right">&nbsp;</td>
    <td align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2">4,601</font></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td align="right">&nbsp;</td>
    <td align="right" style="border-top-style: solid; border-top-width: 1">
    <font SIZE="2">573,571</font></td>
    <td align="right">&nbsp;</td>
    <td align="right" style="border-top-style: solid; border-top-width: 1">
    <font SIZE="2">465,870</font></td>
    <td align="right">&nbsp;</td>
    <td align="right" style="border-top-style: solid; border-top-width: 1">
    <font SIZE="2">436,806</font></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td align="right">&nbsp;</td>
    <td align="right">&nbsp;</td>
    <td align="right">&nbsp;</td>
    <td align="right">&nbsp;</td>
    <td align="right">&nbsp;</td>
    <td align="right">&nbsp;</td>
  </tr>
  <tr>
    <td><font SIZE="2">Property, plant and equipment</font></td>
    <td align="right">&nbsp;</td>
    <td align="right"><font SIZE="2">426,781</font></td>
    <td align="right">&nbsp;</td>
    <td align="right"><font SIZE="2">377,617</font></td>
    <td align="right">&nbsp;</td>
    <td align="right"><font SIZE="2">368,477</font></td>
  </tr>
  <tr>
    <td><font SIZE="2">Goodwill and identifiable intangible assets</font></td>
    <td align="right">&nbsp;</td>
    <td align="right"><font SIZE="2">63,910</font></td>
    <td align="right">&nbsp;</td>
    <td align="right"><font SIZE="2">2,024</font></td>
    <td align="right">&nbsp;</td>
    <td align="right"><font SIZE="2">9,030</font></td>
  </tr>
  <tr>
    <td><font SIZE="2">Assets held for sale (note 7)</font></td>
    <td align="right">&nbsp;</td>
    <td align="right"><font SIZE="2">12,603</font></td>
    <td align="right">&nbsp;</td>
    <td align="right"><font SIZE="2">6,610</font></td>
    <td align="right">&nbsp;</td>
    <td align="right"><font SIZE="2">2,434</font></td>
  </tr>
  <tr>
    <td><font SIZE="2">Other assets</font></td>
    <td align="right">&nbsp;</td>
    <td align="right"><font SIZE="2">18,227</font></td>
    <td align="right">&nbsp;</td>
    <td align="right"><font SIZE="2">11,426</font></td>
    <td align="right">&nbsp;</td>
    <td align="right"><font SIZE="2">8,266</font></td>
  </tr>
  <tr>
    <td><font SIZE="2">Future income taxes</font></td>
    <td align="right">&nbsp;</td>
    <td align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2">10,489</font></td>
    <td align="right">&nbsp;</td>
    <td align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2">10,939</font></td>
    <td align="right">&nbsp;</td>
    <td align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2">-</font></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td align="right">&nbsp;</td>
    <td align="right" style="border-top-style: solid; border-top-width: 1">&nbsp;</td>
    <td align="right">&nbsp;</td>
    <td align="right" style="border-top-style: solid; border-top-width: 1">&nbsp;</td>
    <td align="right">&nbsp;</td>
    <td align="right" style="border-top-style: solid; border-top-width: 1">&nbsp;</td>
  </tr>
  <tr>
    <td><font SIZE="2">Total assets</font></td>
    <td align="right"><font SIZE="2">$</font></td>
    <td align="right" style="border-bottom: 2px solid #000000">
    <font SIZE="2">1,105,581</font></td>
    <td align="right"><font SIZE="2">$</font></td>
    <td align="right" style="border-bottom: 2px solid #000000">
    <font SIZE="2">874,486</font></td>
    <td align="right"><font SIZE="2">$</font></td>
    <td align="right" style="border-bottom: 2px solid #000000">
    <font SIZE="2">825,013</font></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td align="right">&nbsp;</td>
    <td align="right">&nbsp;</td>
    <td align="right">&nbsp;</td>
    <td align="right">&nbsp;</td>
    <td align="right">&nbsp;</td>
    <td align="right">&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td align="right">&nbsp;</td>
    <td align="right">&nbsp;</td>
    <td align="right">&nbsp;</td>
    <td align="right">&nbsp;</td>
    <td align="right">&nbsp;</td>
    <td align="right">&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td align="right">&nbsp;</td>
    <td align="right">&nbsp;</td>
    <td align="right">&nbsp;</td>
    <td align="right">&nbsp;</td>
    <td align="right">&nbsp;</td>
    <td align="right">&nbsp;</td>
  </tr>
  <tr>
    <td><font SIZE="2"><b>Liabilities and Shareholders' Equity</b></font></td>
    <td align="right">&nbsp;</td>
    <td align="right">&nbsp;</td>
    <td align="right">&nbsp;</td>
    <td align="right">&nbsp;</td>
    <td align="right">&nbsp;</td>
    <td align="right">&nbsp;</td>
  </tr>
  <tr>
    <td><font SIZE="2">Current liabilities:</font></td>
    <td align="right">&nbsp;</td>
    <td align="right">&nbsp;</td>
    <td align="right">&nbsp;</td>
    <td align="right">&nbsp;</td>
    <td align="right">&nbsp;</td>
    <td align="right">&nbsp;</td>
  </tr>
  <tr>
    <td><font SIZE="2">
    <p style="margin-left: 15">Bank indebtedness</font></td>
    <td align="right"><font SIZE="2">$</font></td>
    <td align="right"><font SIZE="2">-</font></td>
    <td align="right"><font SIZE="2">$</font></td>
    <td align="right"><font SIZE="2">-</font></td>
    <td align="right"><font SIZE="2">$</font></td>
    <td align="right"><font SIZE="2">3,500</font></td>
  </tr>
  <tr>
    <td><font SIZE="2">
    <p style="margin-left: 15">Accounts payable and accrued liabilities</font></td>
    <td align="right">&nbsp;</td>
    <td align="right"><font SIZE="2">149,486</font></td>
    <td align="right">&nbsp;</td>
    <td align="right"><font SIZE="2">116,683</font></td>
    <td align="right">&nbsp;</td>
    <td align="right"><font SIZE="2">120,229</font></td>
  </tr>
  <tr>
    <td><font SIZE="2">
    <p style="margin-left: 15">Income taxes payable</font></td>
    <td align="right">&nbsp;</td>
    <td align="right"><font SIZE="2">9,238</font></td>
    <td align="right">&nbsp;</td>
    <td align="right"><font SIZE="2">2,949</font></td>
    <td align="right">&nbsp;</td>
    <td align="right"><font SIZE="2">2,054</font></td>
  </tr>
  <tr>
    <td><font SIZE="2">
    <p style="margin-left: 15">Current portion of long-term debt</font></td>
    <td align="right">&nbsp;</td>
    <td align="right" style="border-bottom: 2px solid #000000">
    <font SIZE="2">3,762</font></td>
    <td align="right">&nbsp;</td>
    <td align="right" style="border-bottom: 2px solid #000000">
    <font SIZE="2">3,689</font></td>
    <td align="right">&nbsp;</td>
    <td align="right" style="border-bottom: 2px solid #000000">
    <font SIZE="2">3,934</font></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td align="right">&nbsp;</td>
    <td align="right"><font SIZE="2">162,486</font></td>
    <td align="right">&nbsp;</td>
    <td align="right"><font SIZE="2">123,321</font></td>
    <td align="right">&nbsp;</td>
    <td align="right"><font SIZE="2">129,717</font></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td align="right">&nbsp;</td>
    <td align="right">&nbsp;</td>
    <td align="right">&nbsp;</td>
    <td align="right">&nbsp;</td>
    <td align="right">&nbsp;</td>
    <td align="right">&nbsp;</td>
  </tr>
  <tr>
    <td><font SIZE="2">Long-term debt</font></td>
    <td align="right">&nbsp;</td>
    <td align="right"><font SIZE="2">104,677</font></td>
    <td align="right">&nbsp;</td>
    <td align="right"><font SIZE="2">55,971</font></td>
    <td align="right">&nbsp;</td>
    <td align="right"><font SIZE="2">38,979</font></td>
  </tr>
  <tr>
    <td><font SIZE="2">Future income taxes</font></td>
    <td align="right">&nbsp;</td>
    <td align="right"><font SIZE="2">41,265</font></td>
    <td align="right">&nbsp;</td>
    <td align="right"><font SIZE="2">24,612</font></td>
    <td align="right">&nbsp;</td>
    <td align="right"><font SIZE="2">28,221</font></td>
  </tr>
  <tr>
    <td><font SIZE="2">Non-controlling interest in consolidated
    joint venture</font></td>
    <td align="right">&nbsp;</td>
    <td align="right"><font SIZE="2">7,289</font></td>
    <td align="right">&nbsp;</td>
    <td align="right"><font SIZE="2">6,932</font></td>
    <td align="right">&nbsp;</td>
    <td align="right"><font SIZE="2">6,279</font></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td align="right">&nbsp;</td>
    <td align="right">&nbsp;</td>
    <td align="right">&nbsp;</td>
    <td align="right">&nbsp;</td>
    <td align="right">&nbsp;</td>
    <td align="right">&nbsp;</td>
  </tr>
  <tr>
    <td><font SIZE="2">Contingencies (note 13)</font></td>
    <td align="right">&nbsp;</td>
    <td align="right">&nbsp;</td>
    <td align="right">&nbsp;</td>
    <td align="right">&nbsp;</td>
    <td align="right">&nbsp;</td>
    <td align="right">&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td align="right">&nbsp;</td>
    <td align="right">&nbsp;</td>
    <td align="right">&nbsp;</td>
    <td align="right">&nbsp;</td>
    <td align="right">&nbsp;</td>
    <td align="right">&nbsp;</td>
  </tr>
  <tr>
    <td><font SIZE="2">Shareholders' equity:</font></td>
    <td align="right">&nbsp;</td>
    <td align="right">&nbsp;</td>
    <td align="right">&nbsp;</td>
    <td align="right">&nbsp;</td>
    <td align="right">&nbsp;</td>
    <td align="right">&nbsp;</td>
  </tr>
  <tr>
    <td><font SIZE="2">
    <p style="margin-left: 15">Share capital</font></td>
    <td align="right">&nbsp;</td>
    <td align="right"><font SIZE="2">89,147</font></td>
    <td align="right">&nbsp;</td>
    <td align="right"><font SIZE="2">88,061</font></td>
    <td align="right">&nbsp;</td>
    <td align="right"><font SIZE="2">87,686</font></td>
  </tr>
  <tr>
    <td><font SIZE="2">
    <p style="margin-left: 15">Contributed surplus</font></td>
    <td align="right">&nbsp;</td>
    <td align="right"><font SIZE="2">5,910</font></td>
    <td align="right">&nbsp;</td>
    <td align="right"><font SIZE="2">3,953</font></td>
    <td align="right">&nbsp;</td>
    <td align="right"><font SIZE="2">3,361</font></td>
  </tr>
  <tr>
    <td><font SIZE="2">
    <p style="margin-left: 15">Retained earnings</font></td>
    <td align="right">&nbsp;</td>
    <td align="right"><font SIZE="2">668,559</font></td>
    <td align="right">&nbsp;</td>
    <td align="right"><font SIZE="2">545,388</font></td>
    <td align="right">&nbsp;</td>
    <td align="right"><font SIZE="2">504,522</font></td>
  </tr>
  <tr>
    <td><font SIZE="2">
    <p style="margin-left: 15">Accumulated other comprehensive income</font></td>
    <td align="right">&nbsp;</td>
    <td align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2">26,248</font></td>
    <td align="right">&nbsp;</td>
    <td align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2">26,248</font></td>
    <td align="right">&nbsp;</td>
    <td align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2">26,248</font></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td align="right">&nbsp;</td>
    <td align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2">694,807</font></td>
    <td align="right">&nbsp;</td>
    <td align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2">571,636</font></td>
    <td align="right">&nbsp;</td>
    <td align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2">530,770</font></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td align="right">&nbsp;</td>
    <td align="right" style="border-top-style: solid; border-top-width: 1">
    <font SIZE="2">789,864</font></td>
    <td align="right">&nbsp;</td>
    <td align="right" style="border-top-style: solid; border-top-width: 1">
    <font SIZE="2">663,650</font></td>
    <td align="right">&nbsp;</td>
    <td align="right" style="border-top-style: solid; border-top-width: 1">
    <font SIZE="2">621,817</font></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td align="right">&nbsp;</td>
    <td align="right">&nbsp;</td>
    <td align="right">&nbsp;</td>
    <td align="right">&nbsp;</td>
    <td align="right">&nbsp;</td>
    <td align="right">&nbsp;</td>
  </tr>
  <tr>
    <td><font SIZE="2">Total liabilities and shareholders' equity</font></td>
    <td align="right"><font SIZE="2">$</font></td>
    <td align="right" style="border-bottom: 2px solid #000000">
    <font SIZE="2">1,105,581</font></td>
    <td align="right"><font SIZE="2">$</font></td>
    <td align="right" style="border-bottom: 2px solid #000000">
    <font SIZE="2">874,486</font></td>
    <td align="right"><font SIZE="2">$</font></td>
    <td align="right" style="border-bottom: 2px solid #000000">
    <font SIZE="2">825,013</font></td>
  </tr>
</table>
<font FACE="Arial MT" SIZE="2">
<p>See accompanying notes to interim consolidated financial statements.</p>
<p align="center">9</p>
</font><hr color="#000000" SIZE="5"><p Style='page-break-before:always'><b>
<p align="center">Gildan Activewear Inc.<br>
<font SIZE="2">Interim Consolidated Statements of Earnings and Comprehensive
Income</font></b><font SIZE="2"><br>
(In thousands of U.S. dollars, except per share data)</font></p>
<table CELLSPACING="0" BORDER="0" WIDTH="100%" cellpadding="0" style="border-collapse: collapse" bordercolor="#111111">
  <tr>
    <td WIDTH="52%">&nbsp;</td>
    <td align="right" nowrap>&nbsp;</td>
    <td COLSPAN="3" align="right" nowrap>
    <p align="center"><font SIZE="2"><i><b>Three months ended</b></i></font></td>
    <td align="right" nowrap>&nbsp;</td>
    <td COLSPAN="3" align="right" nowrap>
    <p align="center"><font SIZE="2"><i><b>Nine months ended</b></i></font></td>
  </tr>
  <tr>
    <td WIDTH="52%">&nbsp;</td>
    <td WIDTH="2%" align="right" nowrap>&nbsp;</td>
    <td WIDTH="10%" align="center" nowrap><font SIZE="2"><u>July 6, 2008</u></font></td>
    <td WIDTH="2%" align="center" nowrap>&nbsp;</td>
    <td WIDTH="10%" align="center" nowrap><font SIZE="2"><u>July 1, 2007</u></font></td>
    <td WIDTH="2%" align="center" nowrap>&nbsp;</td>
    <td WIDTH="10%" align="center" nowrap><font SIZE="2"><u>July 6, 2008</u></font></td>
    <td WIDTH="2%" align="center" nowrap>&nbsp;</td>
    <td WIDTH="10%" align="center" nowrap><font SIZE="2"><u>July 1, 2007</u></font></td>
  </tr>
  <tr>
    <td WIDTH="52%">&nbsp;</td>
    <td WIDTH="2%" align="right" nowrap>&nbsp;</td>
    <td align="center" nowrap><font SIZE="2">(unaudited)</font></td>
    <td align="center" nowrap>&nbsp;</td>
    <td align="center" nowrap><font SIZE="2">(unaudited)</font></td>
    <td align="center" nowrap>&nbsp;</td>
    <td align="center" nowrap><font SIZE="2">(unaudited)</font></td>
    <td align="center" nowrap>&nbsp;</td>
    <td align="center" nowrap><font SIZE="2">(unaudited)</font></td>
  </tr>
  <tr>
    <td WIDTH="52%">&nbsp;</td>
    <td align="right">
    <p>&nbsp;</td>
    <td align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td align="right">
    <p>&nbsp;</td>
    <td align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td align="right">
    <p>&nbsp;</td>
    <td align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td align="right">
    <p>&nbsp;</td>
    <td align="right">
    <p style="margin-right: 4">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="52%"><font SIZE="2">Sales</font></td>
    <td align="right"><font SIZE="2">
    <p>$</font></td>
    <td align="right"><font SIZE="2">
    <p style="margin-right: 4">380,774</font></td>
    <td align="right"><font SIZE="2">
    <p>$</font></td>
    <td align="right"><font SIZE="2">
    <p style="margin-right: 4">291,610</font></td>
    <td align="right"><font SIZE="2">
    <p>$</font></td>
    <td align="right"><font SIZE="2">
    <p style="margin-right: 4">924,994</font></td>
    <td align="right"><font SIZE="2">
    <p>$</font></td>
    <td align="right"><font SIZE="2">
    <p style="margin-right: 4">709,573</font></td>
  </tr>
  <tr>
    <td WIDTH="52%"><font SIZE="2">Cost of sales</font></td>
    <td align="right">
    <p>&nbsp;</td>
    <td align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2">
    <p style="margin-right: 4">260,418</font></td>
    <td align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <p>&nbsp;</td>
    <td align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2">
    <p style="margin-right: 4">197,221</font></td>
    <td align="right">
    <p>&nbsp;</td>
    <td align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2">
    <p style="margin-right: 4">626,051</font></td>
    <td align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <p>&nbsp;</td>
    <td align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2">
    <p style="margin-right: 4">482,558</font></td>
  </tr>
  <tr>
    <td WIDTH="52%">&nbsp;</td>
    <td align="right">
    <p>&nbsp;</td>
    <td align="right" style="border-top-style: solid; border-top-width: 1">
    <p style="margin-right: 4">&nbsp;</td>
    <td align="right" style="border-top-style: solid; border-top-width: 1">
    <p>&nbsp;</td>
    <td align="right" style="border-top-style: solid; border-top-width: 1">
    <p style="margin-right: 4">&nbsp;</td>
    <td align="right">
    <p>&nbsp;</td>
    <td align="right" style="border-top-style: solid; border-top-width: 1">
    <p style="margin-right: 4">&nbsp;</td>
    <td align="right" style="border-top-style: solid; border-top-width: 1">
    <p>&nbsp;</td>
    <td align="right" style="border-top-style: solid; border-top-width: 1">
    <p style="margin-right: 4">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="52%"><font SIZE="2">Gross profit</font></td>
    <td align="right">
    <p>&nbsp;</td>
    <td align="right"><font SIZE="2">
    <p style="margin-right: 4">120,356</font></td>
    <td align="right">
    <p>&nbsp;</td>
    <td align="right"><font SIZE="2">
    <p style="margin-right: 4">94,389</font></td>
    <td align="right">
    <p>&nbsp;</td>
    <td align="right"><font SIZE="2">
    <p style="margin-right: 4">298,943</font></td>
    <td align="right">
    <p>&nbsp;</td>
    <td align="right"><font SIZE="2">
    <p style="margin-right: 4">227,015</font></td>
  </tr>
  <tr>
    <td WIDTH="52%">&nbsp;</td>
    <td align="right">
    <p>&nbsp;</td>
    <td align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td align="right">
    <p>&nbsp;</td>
    <td align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td align="right">
    <p>&nbsp;</td>
    <td align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td align="right">
    <p>&nbsp;</td>
    <td align="right">
    <p style="margin-right: 4">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="52%"><font SIZE="2">Selling, general and administrative expenses</font></td>
    <td align="right">
    <p>&nbsp;</td>
    <td align="right"><font SIZE="2">
    <p style="margin-right: 4">43,893</font></td>
    <td align="right">
    <p>&nbsp;</td>
    <td align="right"><font SIZE="2">
    <p style="margin-right: 4">28,430</font></td>
    <td align="right">
    <p>&nbsp;</td>
    <td align="right"><font SIZE="2">
    <p style="margin-right: 4">113,096</font></td>
    <td align="right">
    <p>&nbsp;</td>
    <td align="right"><font SIZE="2">
    <p style="margin-right: 4">83,080</font></td>
  </tr>
  <tr>
    <td WIDTH="52%">&nbsp;</td>
    <td align="right">
    <p>&nbsp;</td>
    <td align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td align="right">
    <p>&nbsp;</td>
    <td align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td align="right">
    <p>&nbsp;</td>
    <td align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td align="right">
    <p>&nbsp;</td>
    <td align="right">
    <p style="margin-right: 4">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="52%"><font SIZE="2">Restructuring and other charges (note 7)</font></td>
    <td align="right">
    <p>&nbsp;</td>
    <td align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2">
    <p style="margin-right: 4">2,289</font></td>
    <td align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <p>&nbsp;</td>
    <td align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2">
    <p style="margin-right: 4">4,589</font></td>
    <td align="right">
    <p>&nbsp;</td>
    <td align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2">
    <p style="margin-right: 4">3,929</font></td>
    <td align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <p>&nbsp;</td>
    <td align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2">
    <p style="margin-right: 4">22,339</font></td>
  </tr>
  <tr>
    <td WIDTH="52%">&nbsp;</td>
    <td align="right">
    <p>&nbsp;</td>
    <td align="right" style="border-top-style: solid; border-top-width: 1">
    <p style="margin-right: 4">&nbsp;</td>
    <td align="right" style="border-top-style: solid; border-top-width: 1">
    <p>&nbsp;</td>
    <td align="right" style="border-top-style: solid; border-top-width: 1">
    <p style="margin-right: 4">&nbsp;</td>
    <td align="right">
    <p>&nbsp;</td>
    <td align="right" style="border-top-style: solid; border-top-width: 1">
    <p style="margin-right: 4">&nbsp;</td>
    <td align="right" style="border-top-style: solid; border-top-width: 1">
    <p>&nbsp;</td>
    <td align="right" style="border-top-style: solid; border-top-width: 1">
    <p style="margin-right: 4">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="52%"><font SIZE="2">Earnings before the undernoted items</font></td>
    <td align="right">
    <p>&nbsp;</td>
    <td align="right"><font SIZE="2">
    <p style="margin-right: 4">74,174</font></td>
    <td align="right">
    <p>&nbsp;</td>
    <td align="right"><font SIZE="2">
    <p style="margin-right: 4">61,370</font></td>
    <td align="right">
    <p>&nbsp;</td>
    <td align="right"><font SIZE="2">
    <p style="margin-right: 4">181,918</font></td>
    <td align="right">
    <p>&nbsp;</td>
    <td align="right"><font SIZE="2">
    <p style="margin-right: 4">121,596</font></td>
  </tr>
  <tr>
    <td WIDTH="52%">&nbsp;</td>
    <td align="right">
    <p>&nbsp;</td>
    <td align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td align="right">
    <p>&nbsp;</td>
    <td align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td align="right">
    <p>&nbsp;</td>
    <td align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td align="right">
    <p>&nbsp;</td>
    <td align="right">
    <p style="margin-right: 4">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="52%"><font SIZE="2">Depreciation and amortization (note 9a)</font></td>
    <td align="right">
    <p>&nbsp;</td>
    <td align="right"><font SIZE="2">
    <p style="margin-right: 4">15,326</font></td>
    <td align="right">
    <p>&nbsp;</td>
    <td align="right"><font SIZE="2">
    <p style="margin-right: 4">10,272</font></td>
    <td align="right">
    <p>&nbsp;</td>
    <td align="right"><font SIZE="2">
    <p style="margin-right: 4">43,249</font></td>
    <td align="right">
    <p>&nbsp;</td>
    <td align="right"><font SIZE="2">
    <p style="margin-right: 4">28,521</font></td>
  </tr>
  <tr>
    <td WIDTH="52%"><font SIZE="2">Interest, net (note 10b)</font></td>
    <td align="right">
    <p>&nbsp;</td>
    <td align="right"><font SIZE="2">
    <p style="margin-right: 4">1,204</font></td>
    <td align="right">
    <p>&nbsp;</td>
    <td align="right"><font SIZE="2">
    <p style="margin-right: 4">1,453</font></td>
    <td align="right">
    <p>&nbsp;</td>
    <td align="right"><font SIZE="2">
    <p style="margin-right: 4">6,065</font></td>
    <td align="right">
    <p>&nbsp;</td>
    <td align="right"><font SIZE="2">
    <p style="margin-right: 4">3,501</font></td>
  </tr>
  <tr>
    <td WIDTH="52%"><font SIZE="2">Non-controlling interest of consolidated
    joint venture</font></td>
    <td align="right">
    <p>&nbsp;</td>
    <td align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2">
    <p style="margin-right: 4">185</font></td>
    <td align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <p>&nbsp;</td>
    <td align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2">
    <p style="margin-right: 4">503</font></td>
    <td align="right">
    <p>&nbsp;</td>
    <td align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2">
    <p style="margin-right: 4">357</font></td>
    <td align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <p>&nbsp;</td>
    <td align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2">
    <p style="margin-right: 4">625</font></td>
  </tr>
  <tr>
    <td WIDTH="52%">&nbsp;</td>
    <td align="right">
    <p>&nbsp;</td>
    <td align="right" style="border-top-style: solid; border-top-width: 1">
    <p style="margin-right: 4">&nbsp;</td>
    <td align="right" style="border-top-style: solid; border-top-width: 1">
    <p>&nbsp;</td>
    <td align="right" style="border-top-style: solid; border-top-width: 1">
    <p style="margin-right: 4">&nbsp;</td>
    <td align="right">
    <p>&nbsp;</td>
    <td align="right" style="border-top-style: solid; border-top-width: 1">
    <p style="margin-right: 4">&nbsp;</td>
    <td align="right" style="border-top-style: solid; border-top-width: 1">
    <p>&nbsp;</td>
    <td align="right" style="border-top-style: solid; border-top-width: 1">
    <p style="margin-right: 4">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="52%"><font SIZE="2">Earnings before income taxes</font></td>
    <td align="right">
    <p>&nbsp;</td>
    <td align="right"><font SIZE="2">
    <p style="margin-right: 4">57,459</font></td>
    <td align="right">
    <p>&nbsp;</td>
    <td align="right"><font SIZE="2">
    <p style="margin-right: 4">49,142</font></td>
    <td align="right">
    <p>&nbsp;</td>
    <td align="right"><font SIZE="2">
    <p style="margin-right: 4">132,247</font></td>
    <td align="right">
    <p>&nbsp;</td>
    <td align="right"><font SIZE="2">
    <p style="margin-right: 4">88,949</font></td>
  </tr>
  <tr>
    <td WIDTH="52%">&nbsp;</td>
    <td align="right">
    <p>&nbsp;</td>
    <td align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td align="right">
    <p>&nbsp;</td>
    <td align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td align="right">
    <p>&nbsp;</td>
    <td align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td align="right">
    <p>&nbsp;</td>
    <td align="right">
    <p style="margin-right: 4">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="52%"><font SIZE="2">Income tax expense (recovery) (note 12)</font></td>
    <td align="right">
    <p>&nbsp;</td>
    <td align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2">
    <p style="margin-right: 4">3,448</font></td>
    <td align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <p>&nbsp;</td>
    <td align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2">(3,255)</font></td>
    <td align="right">
    <p>&nbsp;</td>
    <td align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2">
    <p style="margin-right: 4">9,076</font></td>
    <td align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <p>&nbsp;</td>
    <td align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2">(205)</font></td>
  </tr>
  <tr>
    <td WIDTH="52%">&nbsp;</td>
    <td align="right">
    <p>&nbsp;</td>
    <td align="right" style="border-top-style: solid; border-top-width: 1">
    <p style="margin-right: 4">&nbsp;</td>
    <td align="right" style="border-top-style: solid; border-top-width: 1">
    <p>&nbsp;</td>
    <td align="right" style="border-top-style: solid; border-top-width: 1">
    <p style="margin-right: 4">&nbsp;</td>
    <td align="right">
    <p>&nbsp;</td>
    <td align="right" style="border-top-style: solid; border-top-width: 1">
    <p style="margin-right: 4">&nbsp;</td>
    <td align="right" style="border-top-style: solid; border-top-width: 1">
    <p>&nbsp;</td>
    <td align="right" style="border-top-style: solid; border-top-width: 1">
    <p style="margin-right: 4">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="52%"><font SIZE="2">Net earnings and comprehensive income</font></td>
    <td align="right"><font SIZE="2">
    <p>$</font></td>
    <td align="right" style="border-bottom: 2px solid #000000">
    <font SIZE="2">
    <p style="margin-right: 4">54,011</font></td>
    <td align="right" style="border-bottom: 2px solid #000000">
    <font SIZE="2">
    <p>$</font></td>
    <td align="right" style="border-bottom: 2px solid #000000">
    <font SIZE="2">
    <p style="margin-right: 4">52,397</font></td>
    <td align="right"><font SIZE="2">
    <p>$</font></td>
    <td align="right" style="border-bottom: 2px solid #000000">
    <font SIZE="2">
    <p style="margin-right: 4">123,171</font></td>
    <td align="right" style="border-bottom: 2px solid #000000">
    <font SIZE="2">
    <p>$</font></td>
    <td align="right" style="border-bottom: 2px solid #000000">
    <font SIZE="2">
    <p style="margin-right: 4">89,154</font></td>
  </tr>
  <tr>
    <td WIDTH="52%">&nbsp;</td>
    <td align="right">
    <p>&nbsp;</td>
    <td align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td align="right">
    <p>&nbsp;</td>
    <td align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td align="right">
    <p>&nbsp;</td>
    <td align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td align="right">
    <p>&nbsp;</td>
    <td align="right">
    <p style="margin-right: 4">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="52%">&nbsp;</td>
    <td align="right">
    <p>&nbsp;</td>
    <td align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td align="right">
    <p>&nbsp;</td>
    <td align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td align="right">
    <p>&nbsp;</td>
    <td align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td align="right">
    <p>&nbsp;</td>
    <td align="right">
    <p style="margin-right: 4">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="52%"><font SIZE="2">Basic EPS (note 8)</font></td>
    <td align="right"><font SIZE="2">
    <p>$</font></td>
    <td align="right"><font SIZE="2">
    <p style="margin-right: 4">0.45</font></td>
    <td align="right"><font SIZE="2">
    <p>$</font></td>
    <td align="right"><font SIZE="2">
    <p style="margin-right: 4">0.44</font></td>
    <td align="right"><font SIZE="2">
    <p>$</font></td>
    <td align="right"><font SIZE="2">
    <p style="margin-right: 4">1.02</font></td>
    <td align="right"><font SIZE="2">
    <p>$</font></td>
    <td align="right"><font SIZE="2">
    <p style="margin-right: 4">0.74</font></td>
  </tr>
  <tr>
    <td WIDTH="52%">&nbsp;</td>
    <td align="right">
    <p>&nbsp;</td>
    <td align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td align="right">
    <p>&nbsp;</td>
    <td align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td align="right">
    <p>&nbsp;</td>
    <td align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td align="right">
    <p>&nbsp;</td>
    <td align="right">
    <p style="margin-right: 4">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="52%"><font SIZE="2">Diluted EPS (note 8)</font></td>
    <td align="right"><font SIZE="2">
    <p>$</font></td>
    <td align="right"><font SIZE="2">
    <p style="margin-right: 4">0.44</font></td>
    <td align="right"><font SIZE="2">
    <p>$</font></td>
    <td align="right"><font SIZE="2">
    <p style="margin-right: 4">0.43</font></td>
    <td align="right"><font SIZE="2">
    <p>$</font></td>
    <td align="right"><font SIZE="2">
    <p style="margin-right: 4">1.01</font></td>
    <td align="right"><font SIZE="2">
    <p>$</font></td>
    <td align="right"><font SIZE="2">
    <p style="margin-right: 4">0.73</font></td>
  </tr>
</table>
<font FACE="Arial MT" SIZE="2">
<p>See accompanying notes to interim consolidated financial statements.</p>
<p align="center">10</p>
</font><hr color="#000000" SIZE="5"><p Style='page-break-before:always'><b>
<p align="center">Gildan Activewear Inc.<br>
<font SIZE="2">Interim Consolidated Statements of Cash Flows</font></b><font SIZE="2"><br>
(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="52%">&nbsp;</td>
    <td align="right" nowrap>&nbsp;</td>
    <td COLSPAN="3" align="right" nowrap>
    <p align="center"><font SIZE="2"><i><b>Three months ended</b></i></font></td>
    <td align="right" nowrap>&nbsp;</td>
    <td COLSPAN="3" align="right" nowrap>
    <p align="center"><font SIZE="2"><i><b>Nine months ended</b></i></font></td>
  </tr>
  <tr>
    <td WIDTH="52%">&nbsp;</td>
    <td WIDTH="2%" align="right" nowrap>&nbsp;</td>
    <td WIDTH="10%" align="center" nowrap><font SIZE="2"><u>July 6, 2008</u></font></td>
    <td WIDTH="2%" align="center" nowrap>&nbsp;</td>
    <td WIDTH="10%" align="center" nowrap><font SIZE="2"><u>July 1, 2007</u></font></td>
    <td WIDTH="2%" align="center" nowrap>&nbsp;</td>
    <td WIDTH="10%" align="center" nowrap><font SIZE="2"><u>July 6, 2008</u></font></td>
    <td WIDTH="2%" align="center" nowrap>&nbsp;</td>
    <td WIDTH="10%" align="center" nowrap><font SIZE="2"><u>July 1, 2007</u></font></td>
  </tr>
  <tr>
    <td WIDTH="52%">&nbsp;</td>
    <td WIDTH="2%" align="right" nowrap>&nbsp;</td>
    <td WIDTH="10%" align="center" nowrap><font SIZE="2">(unaudited)</font></td>
    <td WIDTH="2%" align="center" nowrap>&nbsp;</td>
    <td align="center" nowrap><font SIZE="2">(unaudited)</font></td>
    <td WIDTH="2%" align="center" nowrap>&nbsp;</td>
    <td align="center" nowrap><font SIZE="2">(unaudited)</font></td>
    <td WIDTH="2%" align="center" nowrap>&nbsp;</td>
    <td align="center" nowrap><font SIZE="2">(unaudited)</font></td>
  </tr>
  <tr>
    <td WIDTH="52%">&nbsp;</td>
    <td align="right">&nbsp;</td>
    <td align="right">&nbsp;</td>
    <td align="right">&nbsp;</td>
    <td align="right">&nbsp;</td>
    <td align="right">&nbsp;</td>
    <td align="right">&nbsp;</td>
    <td align="right">&nbsp;</td>
    <td align="right">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="52%"><font SIZE="2">Cash flows from operating activities:</font></td>
    <td align="right">
    <p>&nbsp;</td>
    <td align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td align="right">
    <p>&nbsp;</td>
    <td align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td align="right">
    <p>&nbsp;</td>
    <td align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td align="right">
    <p>&nbsp;</td>
    <td align="right">
    <p style="margin-right: 4">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="52%"><font SIZE="2">
    <p style="margin-left: 15">Net earnings</font></td>
    <td align="right"><font SIZE="2">
    <p>$</font></td>
    <td align="right"><font SIZE="2">
    <p style="margin-right: 4">54,011</font></td>
    <td align="right"><font SIZE="2">
    <p>$</font></td>
    <td align="right"><font SIZE="2">
    <p style="margin-right: 4">52,397</font></td>
    <td align="right"><font SIZE="2">
    <p>$</font></td>
    <td align="right"><font SIZE="2">
    <p style="margin-right: 4">123,171</font></td>
    <td align="right"><font SIZE="2">
    <p>$</font></td>
    <td align="right"><font SIZE="2">
    <p style="margin-right: 4">89,154</font></td>
  </tr>
  <tr>
    <td WIDTH="52%"><font SIZE="2">
    <p style="margin-left: 15">Adjustments for:</font></td>
    <td align="right">
    <p>&nbsp;</td>
    <td align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td align="right">
    <p>&nbsp;</td>
    <td align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td align="right">
    <p>&nbsp;</td>
    <td align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td align="right">
    <p>&nbsp;</td>
    <td align="right">
    <p style="margin-right: 4">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="52%"><font SIZE="2">
    <p style="margin-left: 30">Restructuring charges related to assets held for
    sale</font></td>
    <td align="right">
    <p>&nbsp;</td>
    <td align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td align="right">
    <p>&nbsp;</td>
    <td align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td align="right">
    <p>&nbsp;</td>
    <td align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td align="right">
    <p>&nbsp;</td>
    <td align="right">
    <p style="margin-right: 4">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="52%"><font SIZE="2">
    <p style="margin-left: 30">&nbsp;&nbsp;&nbsp; and property, plant and
    equipment (note 7)</font></td>
    <td align="right">
    <p>&nbsp;</td>
    <td align="right"><font SIZE="2">
    <p style="margin-right: 4">1,662</font></td>
    <td align="right">
    <p>&nbsp;</td>
    <td align="right"><font SIZE="2">
    <p style="margin-right: 4">708</font></td>
    <td align="right">
    <p>&nbsp;</td>
    <td align="right"><font SIZE="2">
    <p style="margin-right: 4">1,334</font></td>
    <td align="right">
    <p>&nbsp;</td>
    <td align="right"><font SIZE="2">
    <p style="margin-right: 4">4,616</font></td>
  </tr>
  <tr>
    <td WIDTH="52%"><font SIZE="2">
    <p style="margin-left: 30">Depreciation and amortization (note 9a)</font></td>
    <td align="right">
    <p>&nbsp;</td>
    <td align="right"><font SIZE="2">
    <p style="margin-right: 4">15,326</font></td>
    <td align="right">
    <p>&nbsp;</td>
    <td align="right"><font SIZE="2">
    <p style="margin-right: 4">10,272</font></td>
    <td align="right">
    <p>&nbsp;</td>
    <td align="right"><font SIZE="2">
    <p style="margin-right: 4">43,249</font></td>
    <td align="right">
    <p>&nbsp;</td>
    <td align="right"><font SIZE="2">
    <p style="margin-right: 4">28,521</font></td>
  </tr>
  <tr>
    <td WIDTH="52%"><font SIZE="2">
    <p style="margin-left: 30">Loss (gain) on disposal of assets held for sale
    and</font></td>
    <td align="right">
    <p>&nbsp;</td>
    <td align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td align="right">
    <p>&nbsp;</td>
    <td align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td align="right">
    <p>&nbsp;</td>
    <td align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td align="right">
    <p>&nbsp;</td>
    <td align="right">
    <p style="margin-right: 4">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="52%"><font SIZE="2">
    <p style="margin-left: 30">&nbsp;&nbsp;&nbsp; property, plant and equipment</font></td>
    <td align="right">
    <p>&nbsp;</td>
    <td align="right"><font SIZE="2">
    <p style="margin-right: 4">861</font></td>
    <td align="right">
    <p>&nbsp;</td>
    <td align="right"><font SIZE="2">(60)</font></td>
    <td align="right">
    <p>&nbsp;</td>
    <td align="right"><font SIZE="2">
    <p style="margin-right: 4">987</font></td>
    <td align="right">
    <p>&nbsp;</td>
    <td align="right"><font SIZE="2">(20)</font></td>
  </tr>
  <tr>
    <td WIDTH="52%"><font SIZE="2">
    <p style="margin-left: 30">Stock-based compensation costs</font></td>
    <td align="right">
    <p>&nbsp;</td>
    <td align="right"><font SIZE="2">
    <p style="margin-right: 4">599</font></td>
    <td align="right">
    <p>&nbsp;</td>
    <td align="right"><font SIZE="2">
    <p style="margin-right: 4">371</font></td>
    <td align="right">
    <p>&nbsp;</td>
    <td align="right"><font SIZE="2">
    <p style="margin-right: 4">2,083</font></td>
    <td align="right">
    <p>&nbsp;</td>
    <td align="right"><font SIZE="2">
    <p style="margin-right: 4">1,149</font></td>
  </tr>
  <tr>
    <td WIDTH="52%"><font SIZE="2">
    <p style="margin-left: 30">Future income taxes</font></td>
    <td align="right">
    <p>&nbsp;</td>
    <td align="right"><font SIZE="2">
    <p style="margin-right: 4">1,718</font></td>
    <td align="right">
    <p>&nbsp;</td>
    <td align="right"><font SIZE="2">(4,689)</font></td>
    <td align="right">
    <p>&nbsp;</td>
    <td align="right"><font SIZE="2">
    <p style="margin-right: 4">203</font></td>
    <td align="right">
    <p>&nbsp;</td>
    <td align="right"><font SIZE="2">(3,210)</font></td>
  </tr>
  <tr>
    <td WIDTH="52%"><font SIZE="2">
    <p style="margin-left: 30">Non-controlling interest</font></td>
    <td align="right">
    <p>&nbsp;</td>
    <td align="right"><font SIZE="2">
    <p style="margin-right: 4">185</font></td>
    <td align="right">
    <p>&nbsp;</td>
    <td align="right"><font SIZE="2">
    <p style="margin-right: 4">503</font></td>
    <td align="right">
    <p>&nbsp;</td>
    <td align="right"><font SIZE="2">
    <p style="margin-right: 4">357</font></td>
    <td align="right">
    <p>&nbsp;</td>
    <td align="right"><font SIZE="2">
    <p style="margin-right: 4">625</font></td>
  </tr>
  <tr>
    <td WIDTH="52%"><font SIZE="2">
    <p style="margin-left: 30">Unrealized foreign exchange (gain) loss</font></td>
    <td align="right">
    <p>&nbsp;</td>
    <td align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2">(762)</font></td>
    <td align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <p>&nbsp;</td>
    <td align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2">
    <p style="margin-right: 4">3,029</font></td>
    <td align="right">
    <p>&nbsp;</td>
    <td align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2">
    <p style="margin-right: 4">253</font></td>
    <td align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <p>&nbsp;</td>
    <td align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2">
    <p style="margin-right: 4">1,441</font></td>
  </tr>
  <tr>
    <td WIDTH="52%">&nbsp;</td>
    <td align="right">
    <p>&nbsp;</td>
    <td align="right" style="border-top-style: solid; border-top-width: 1">
    <font SIZE="2">
    <p style="margin-right: 4">73,600</font></td>
    <td align="right" style="border-top-style: solid; border-top-width: 1">
    <p>&nbsp;</td>
    <td align="right" style="border-top-style: solid; border-top-width: 1">
    <font SIZE="2">
    <p style="margin-right: 4">62,531</font></td>
    <td align="right">
    <p>&nbsp;</td>
    <td align="right" style="border-top-style: solid; border-top-width: 1">
    <font SIZE="2">
    <p style="margin-right: 4">171,637</font></td>
    <td align="right" style="border-top-style: solid; border-top-width: 1">
    <p>&nbsp;</td>
    <td align="right" style="border-top-style: solid; border-top-width: 1">
    <font SIZE="2">
    <p style="margin-right: 4">122,276</font></td>
  </tr>
  <tr>
    <td WIDTH="52%"><font SIZE="2">
    <p style="margin-left: 15">Changes in non-cash working capital balances:</font></td>
    <td align="right">
    <p>&nbsp;</td>
    <td align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td align="right">
    <p>&nbsp;</td>
    <td align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td align="right">
    <p>&nbsp;</td>
    <td align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td align="right">
    <p>&nbsp;</td>
    <td align="right">
    <p style="margin-right: 4">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="52%"><font SIZE="2">
    <p style="margin-left: 30">Accounts receivable</font></td>
    <td align="right">
    <p>&nbsp;</td>
    <td align="right"><font SIZE="2">(68,707)</font></td>
    <td align="right">
    <p>&nbsp;</td>
    <td align="right"><font SIZE="2">(45,712)</font></td>
    <td align="right">
    <p>&nbsp;</td>
    <td align="right"><font SIZE="2">(18,837)</font></td>
    <td align="right">
    <p>&nbsp;</td>
    <td align="right"><font SIZE="2">(16,266)</font></td>
  </tr>
  <tr>
    <td WIDTH="52%"><font SIZE="2">
    <p style="margin-left: 30">Inventories</font></td>
    <td align="right">
    <p>&nbsp;</td>
    <td align="right"><font SIZE="2">
    <p style="margin-right: 4">9,212</font></td>
    <td align="right">
    <p>&nbsp;</td>
    <td align="right"><font SIZE="2">
    <p style="margin-right: 4">11,051</font></td>
    <td align="right">
    <p>&nbsp;</td>
    <td align="right"><font SIZE="2">(7,459)</font></td>
    <td align="right">
    <p>&nbsp;</td>
    <td align="right"><font SIZE="2">(30,885)</font></td>
  </tr>
  <tr>
    <td WIDTH="52%"><font SIZE="2">
    <p style="margin-left: 30">Prepaid expenses and deposits</font></td>
    <td align="right">
    <p>&nbsp;</td>
    <td align="right"><font SIZE="2">(2,266)</font></td>
    <td align="right">
    <p>&nbsp;</td>
    <td align="right"><font SIZE="2">(2,499)</font></td>
    <td align="right">
    <p>&nbsp;</td>
    <td align="right"><font SIZE="2">(1,926)</font></td>
    <td align="right">
    <p>&nbsp;</td>
    <td align="right"><font SIZE="2">(3,816)</font></td>
  </tr>
  <tr>
    <td WIDTH="52%"><font SIZE="2">
    <p style="margin-left: 30">Accounts payable and accrued liabilities</font></td>
    <td align="right">
    <p>&nbsp;</td>
    <td align="right"><font SIZE="2">
    <p style="margin-right: 4">27,741</font></td>
    <td align="right">
    <p>&nbsp;</td>
    <td align="right"><font SIZE="2">
    <p style="margin-right: 4">5,354</font></td>
    <td align="right">
    <p>&nbsp;</td>
    <td align="right"><font SIZE="2">
    <p style="margin-right: 4">18,822</font></td>
    <td align="right">
    <p>&nbsp;</td>
    <td align="right"><font SIZE="2">
    <p style="margin-right: 4">1,119</font></td>
  </tr>
  <tr>
    <td WIDTH="52%"><font SIZE="2">
    <p style="margin-left: 30">Income taxes payable</font></td>
    <td align="right">
    <p>&nbsp;</td>
    <td align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2">
    <p style="margin-right: 4">1,081</font></td>
    <td align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <p>&nbsp;</td>
    <td align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2">
    <p style="margin-right: 4">1,607</font></td>
    <td align="right">
    <p>&nbsp;</td>
    <td align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2">
    <p style="margin-right: 4">6,156</font></td>
    <td align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <p>&nbsp;</td>
    <td align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2">(338)</font></td>
  </tr>
  <tr>
    <td WIDTH="52%">&nbsp;</td>
    <td align="right">
    <p>&nbsp;</td>
    <td align="right" style="border-top-style: solid; border-top-width: 1">
    <font SIZE="2">
    <p style="margin-right: 4">40,661</font></td>
    <td align="right" style="border-top-style: solid; border-top-width: 1">
    <p>&nbsp;</td>
    <td align="right" style="border-top-style: solid; border-top-width: 1">
    <font SIZE="2">
    <p style="margin-right: 4">32,332</font></td>
    <td align="right">
    <p>&nbsp;</td>
    <td align="right" style="border-top-style: solid; border-top-width: 1">
    <font SIZE="2">
    <p style="margin-right: 4">168,393</font></td>
    <td align="right" style="border-top-style: solid; border-top-width: 1">
    <p>&nbsp;</td>
    <td align="right" style="border-top-style: solid; border-top-width: 1">
    <font SIZE="2">
    <p style="margin-right: 4">72,090</font></td>
  </tr>
  <tr>
    <td WIDTH="52%">&nbsp;</td>
    <td align="right">
    <p>&nbsp;</td>
    <td align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td align="right">
    <p>&nbsp;</td>
    <td align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td align="right">
    <p>&nbsp;</td>
    <td align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td align="right">
    <p>&nbsp;</td>
    <td align="right">
    <p style="margin-right: 4">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="52%"><font SIZE="2">Cash flows (used in) from financing
    activities:</font></td>
    <td align="right">
    <p>&nbsp;</td>
    <td align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td align="right">
    <p>&nbsp;</td>
    <td align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td align="right">
    <p>&nbsp;</td>
    <td align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td align="right">
    <p>&nbsp;</td>
    <td align="right">
    <p style="margin-right: 4">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="52%"><font SIZE="2">
    <p style="margin-left: 15">(Decrease) increase in amounts drawn under
    revolving long-term</font></td>
    <td align="right">
    <p>&nbsp;</td>
    <td align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td align="right">
    <p>&nbsp;</td>
    <td align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td align="right">
    <p>&nbsp;</td>
    <td align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td align="right">
    <p>&nbsp;</td>
    <td align="right">
    <p style="margin-right: 4">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="52%"><font SIZE="2">
    <p style="margin-left: 15">&nbsp;&nbsp; credit facility</font></td>
    <td align="right">
    <p>&nbsp;</td>
    <td align="right"><font SIZE="2">(37,000)</font></td>
    <td align="right">
    <p>&nbsp;</td>
    <td align="right"><font SIZE="2">(13,000)</font></td>
    <td align="right">
    <p>&nbsp;</td>
    <td align="right"><font SIZE="2">
    <p style="margin-right: 4">51,000</font></td>
    <td align="right">
    <p>&nbsp;</td>
    <td align="right"><font SIZE="2">
    <p style="margin-right: 4">30,000</font></td>
  </tr>
  <tr>
    <td WIDTH="52%"><font SIZE="2">
    <p style="margin-left: 15">Decrease in bank indebtedness</font></td>
    <td align="right">
    <p>&nbsp;</td>
    <td align="right"><font SIZE="2">
    <p style="margin-right: 4">-</font></td>
    <td align="right">
    <p>&nbsp;</td>
    <td align="right"><font SIZE="2">
    <p style="margin-right: 4">-</font></td>
    <td align="right">
    <p>&nbsp;</td>
    <td align="right"><font SIZE="2">(1,261)</font></td>
    <td align="right">
    <p>&nbsp;</td>
    <td align="right"><font SIZE="2">
    <p style="margin-right: 4">-</font></td>
  </tr>
  <tr>
    <td WIDTH="52%"><font SIZE="2">
    <p style="margin-left: 15">Net decrease in other long-term debt</font></td>
    <td align="right">
    <p>&nbsp;</td>
    <td align="right"><font SIZE="2">(896)</font></td>
    <td align="right">
    <p>&nbsp;</td>
    <td align="right"><font SIZE="2">(18,266)</font></td>
    <td align="right">
    <p>&nbsp;</td>
    <td align="right"><font SIZE="2">(2,221)</font></td>
    <td align="right">
    <p>&nbsp;</td>
    <td align="right"><font SIZE="2">(20,948)</font></td>
  </tr>
  <tr>
    <td WIDTH="52%"><font SIZE="2">
    <p style="margin-left: 15">Proceeds from the issuance of shares</font></td>
    <td align="right">
    <p>&nbsp;</td>
    <td align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2">
    <p style="margin-right: 4">351</font></td>
    <td align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <p>&nbsp;</td>
    <td align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2">
    <p style="margin-right: 4">180</font></td>
    <td align="right">
    <p>&nbsp;</td>
    <td align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2">
    <p style="margin-right: 4">960</font></td>
    <td align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <p>&nbsp;</td>
    <td align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2">
    <p style="margin-right: 4">949</font></td>
  </tr>
  <tr>
    <td WIDTH="52%">&nbsp;</td>
    <td align="right">
    <p>&nbsp;</td>
    <td align="right" style="border-top-style: solid; border-top-width: 1">
    <font SIZE="2">(37,545)</font></td>
    <td align="right" style="border-top-style: solid; border-top-width: 1">
    <p>&nbsp;</td>
    <td align="right" style="border-top-style: solid; border-top-width: 1">
    <font SIZE="2">
    <p style="margin-right: 4">(31,086)</font></td>
    <td align="right">
    <p>&nbsp;</td>
    <td align="right" style="border-top-style: solid; border-top-width: 1">
    <font SIZE="2">
    <p style="margin-right: 4">48,478</font></td>
    <td align="right" style="border-top-style: solid; border-top-width: 1">
    <p>&nbsp;</td>
    <td align="right" style="border-top-style: solid; border-top-width: 1">
    <font SIZE="2">
    <p style="margin-right: 4">10,001</font></td>
  </tr>
  <tr>
    <td WIDTH="52%">&nbsp;</td>
    <td align="right">
    <p>&nbsp;</td>
    <td align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td align="right">
    <p>&nbsp;</td>
    <td align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td align="right">
    <p>&nbsp;</td>
    <td align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td align="right">
    <p>&nbsp;</td>
    <td align="right">
    <p style="margin-right: 4">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="52%"><font SIZE="2">Cash flows used in investing activities:</font></td>
    <td align="right">
    <p>&nbsp;</td>
    <td align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td align="right">
    <p>&nbsp;</td>
    <td align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td align="right">
    <p>&nbsp;</td>
    <td align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td align="right">
    <p>&nbsp;</td>
    <td align="right">
    <p style="margin-right: 4">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="52%"><font SIZE="2">
    <p style="margin-left: 15">Purchase of property, plant and equipment</font></td>
    <td align="right">
    <p>&nbsp;</td>
    <td align="right"><font SIZE="2">(19,773)</font></td>
    <td align="right">
    <p>&nbsp;</td>
    <td align="right"><font SIZE="2">(32,864)</font></td>
    <td align="right">
    <p>&nbsp;</td>
    <td align="right"><font SIZE="2">(79,791)</font></td>
    <td align="right">
    <p>&nbsp;</td>
    <td align="right"><font SIZE="2">(108,315)</font></td>
  </tr>
  <tr>
    <td WIDTH="52%"><font SIZE="2">
    <p style="margin-left: 15">Acquisition of V.I. Prewett &amp; Son, Inc. (note 4)</font></td>
    <td align="right">
    <p>&nbsp;</td>
    <td align="right"><font SIZE="2">
    <p style="margin-right: 4">-</font></td>
    <td align="right">
    <p>&nbsp;</td>
    <td align="right"><font SIZE="2">
    <p style="margin-right: 4">-</font></td>
    <td align="right">
    <p>&nbsp;</td>
    <td align="right"><font SIZE="2">(126,819)</font></td>
    <td align="right">
    <p>&nbsp;</td>
    <td align="right"><font SIZE="2">
    <p style="margin-right: 4">-</font></td>
  </tr>
  <tr>
    <td WIDTH="52%"><font SIZE="2">
    <p style="margin-left: 15">Restricted cash related to acquistion (note 4)</font></td>
    <td align="right">
    <p>&nbsp;</td>
    <td align="right"><font SIZE="2">
    <p style="margin-right: 4">-</font></td>
    <td align="right">
    <p>&nbsp;</td>
    <td align="right"><font SIZE="2">
    <p style="margin-right: 4">-</font></td>
    <td align="right">
    <p>&nbsp;</td>
    <td align="right"><font SIZE="2">(10,000)</font></td>
    <td align="right">
    <p>&nbsp;</td>
    <td align="right"><font SIZE="2">
    <p style="margin-right: 4">-</font></td>
  </tr>
  <tr>
    <td WIDTH="52%"><font SIZE="2">
    <p style="margin-left: 15">Proceeds on disposal of assets held for sale</font></td>
    <td align="right">
    <p>&nbsp;</td>
    <td align="right"><font SIZE="2">
    <p style="margin-right: 4">10</font></td>
    <td align="right">
    <p>&nbsp;</td>
    <td align="right"><font SIZE="2">
    <p style="margin-right: 4">4,429</font></td>
    <td align="right">
    <p>&nbsp;</td>
    <td align="right"><font SIZE="2">
    <p style="margin-right: 4">1,124</font></td>
    <td align="right">
    <p>&nbsp;</td>
    <td align="right"><font SIZE="2">
    <p style="margin-right: 4">6,424</font></td>
  </tr>
  <tr>
    <td WIDTH="52%"><font SIZE="2">
    <p style="margin-left: 15">Net decrease (increase) in other assets</font></td>
    <td align="right">
    <p>&nbsp;</td>
    <td align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2">
    <p style="margin-right: 4">565</font></td>
    <td align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <p>&nbsp;</td>
    <td align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2">(778)</font></td>
    <td align="right">
    <p>&nbsp;</td>
    <td align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2">
    <p style="margin-right: 4">2,532</font></td>
    <td align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <p>&nbsp;</td>
    <td align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2">(1,786)</font></td>
  </tr>
  <tr>
    <td WIDTH="52%">&nbsp;</td>
    <td align="right">
    <p>&nbsp;</td>
    <td align="right" style="border-top-style: solid; border-top-width: 1">
    <font SIZE="2">(19,198)</font></td>
    <td align="right" style="border-top-style: solid; border-top-width: 1">
    <p>&nbsp;</td>
    <td align="right" style="border-top-style: solid; border-top-width: 1">
    <font SIZE="2">(29,213)</font></td>
    <td align="right">
    <p>&nbsp;</td>
    <td align="right" style="border-top-style: solid; border-top-width: 1">
    <font SIZE="2">(212,954)</font></td>
    <td align="right" style="border-top-style: solid; border-top-width: 1">
    <p>&nbsp;</td>
    <td align="right" style="border-top-style: solid; border-top-width: 1">
    <font SIZE="2">(103,677)</font></td>
  </tr>
  <tr>
    <td WIDTH="52%">&nbsp;</td>
    <td align="right">
    <p>&nbsp;</td>
    <td align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td align="right">
    <p>&nbsp;</td>
    <td align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td align="right">
    <p>&nbsp;</td>
    <td align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td align="right">
    <p>&nbsp;</td>
    <td align="right">
    <p style="margin-right: 4">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="52%"><font SIZE="2">Effect of exchange rate changes on cash and</font></td>
    <td align="right">
    <p>&nbsp;</td>
    <td align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td align="right">
    <p>&nbsp;</td>
    <td align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td align="right">
    <p>&nbsp;</td>
    <td align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td align="right">
    <p>&nbsp;</td>
    <td align="right">
    <p style="margin-right: 4">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="52%"><font SIZE="2">&nbsp;&nbsp; cash equivalents denominated in
    foreign currencies</font></td>
    <td align="right">
    <p>&nbsp;</td>
    <td align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2">(34)</font></td>
    <td align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <p>&nbsp;</td>
    <td align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2">
    <p style="margin-right: 4">23</font></td>
    <td align="right">
    <p>&nbsp;</td>
    <td align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2">
    <p style="margin-right: 4">28</font></td>
    <td align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <p>&nbsp;</td>
    <td align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2">
    <p style="margin-right: 4">116</font></td>
  </tr>
  <tr>
    <td WIDTH="52%">&nbsp;</td>
    <td align="right">
    <p>&nbsp;</td>
    <td align="right" style="border-top-style: solid; border-top-width: 1">
    <p style="margin-right: 4">&nbsp;</td>
    <td align="right" style="border-top-style: solid; border-top-width: 1">
    <p>&nbsp;</td>
    <td align="right" style="border-top-style: solid; border-top-width: 1">
    <p style="margin-right: 4">&nbsp;</td>
    <td align="right">
    <p>&nbsp;</td>
    <td align="right" style="border-top-style: solid; border-top-width: 1">
    <p style="margin-right: 4">&nbsp;</td>
    <td align="right" style="border-top-style: solid; border-top-width: 1">
    <p>&nbsp;</td>
    <td align="right" style="border-top-style: solid; border-top-width: 1">
    <p style="margin-right: 4">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="52%"><font SIZE="2">Net (decrease) increase in cash and cash
    equivalents</font></td>
    <td align="right">
    <p>&nbsp;</td>
    <td align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td align="right">
    <p>&nbsp;</td>
    <td align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td align="right">
    <p>&nbsp;</td>
    <td align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td align="right">
    <p>&nbsp;</td>
    <td align="right">
    <p style="margin-right: 4">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="52%"><font SIZE="2">&nbsp;&nbsp; during the period</font></td>
    <td align="right">
    <p>&nbsp;</td>
    <td align="right"><font SIZE="2">(16,116)</font></td>
    <td align="right">
    <p>&nbsp;</td>
    <td align="right"><font SIZE="2">(27,944)</font></td>
    <td align="right">
    <p>&nbsp;</td>
    <td align="right"><font SIZE="2">
    <p style="margin-right: 4">3,945</font></td>
    <td align="right">
    <p>&nbsp;</td>
    <td align="right"><font SIZE="2">(21,470)</font></td>
  </tr>
  <tr>
    <td WIDTH="52%">&nbsp;</td>
    <td align="right">
    <p>&nbsp;</td>
    <td align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td align="right">
    <p>&nbsp;</td>
    <td align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td align="right">
    <p>&nbsp;</td>
    <td align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td align="right">
    <p>&nbsp;</td>
    <td align="right">
    <p style="margin-right: 4">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="52%"><font SIZE="2">Cash and cash equivalents, beginning of
    period</font></td>
    <td align="right">
    <p>&nbsp;</td>
    <td align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2">
    <p style="margin-right: 4">29,311</font></td>
    <td align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <p>&nbsp;</td>
    <td align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2">
    <p style="margin-right: 4">35,481</font></td>
    <td align="right">
    <p>&nbsp;</td>
    <td align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2">
    <p style="margin-right: 4">9,250</font></td>
    <td align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <p>&nbsp;</td>
    <td align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2">
    <p style="margin-right: 4">29,007</font></td>
  </tr>
  <tr>
    <td WIDTH="52%">&nbsp;</td>
    <td align="right">
    <p>&nbsp;</td>
    <td align="right" style="border-top-style: solid; border-top-width: 1">
    <p style="margin-right: 4">&nbsp;</td>
    <td align="right" style="border-top-style: solid; border-top-width: 1">
    <p>&nbsp;</td>
    <td align="right" style="border-top-style: solid; border-top-width: 1">
    <p style="margin-right: 4">&nbsp;</td>
    <td align="right">
    <p>&nbsp;</td>
    <td align="right" style="border-top-style: solid; border-top-width: 1">
    <p style="margin-right: 4">&nbsp;</td>
    <td align="right" style="border-top-style: solid; border-top-width: 1">
    <p>&nbsp;</td>
    <td align="right" style="border-top-style: solid; border-top-width: 1">
    <p style="margin-right: 4">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="52%"><font SIZE="2">Cash and cash equivalents, end of period</font></td>
    <td align="right"><font SIZE="2">
    <p>$</font></td>
    <td align="right" style="border-bottom: 2px solid #000000">
    <font SIZE="2">
    <p style="margin-right: 4">13,195</font></td>
    <td align="right" style="border-bottom: 2px solid #000000">
    <font SIZE="2">
    <p>$</font></td>
    <td align="right" style="border-bottom: 2px solid #000000">
    <font SIZE="2">
    <p style="margin-right: 4">7,537</font></td>
    <td align="right"><font SIZE="2">
    <p>$</font></td>
    <td align="right" style="border-bottom: 2px solid #000000">
    <font SIZE="2">
    <p style="margin-right: 4">13,195</font></td>
    <td align="right" style="border-bottom: 2px solid #000000">
    <font SIZE="2">
    <p>$</font></td>
    <td align="right" style="border-bottom: 2px solid #000000">
    <font SIZE="2">
    <p style="margin-right: 4">7,537</font></td>
  </tr>
</table>
<font FACE="Arial MT" SIZE="2">
<p>See accompanying notes to interim consolidated financial statements.</p>
<p>Supplemental disclosure of cash flow information (note 9)</p>
<p align="center">11</p>
</font><hr color="#000000" SIZE="5"><p Style='page-break-before:always'><b>
<p align="center">Gildan Activewear Inc.<br>
<font SIZE="2">Interim Consolidated Statement of Shareholders' Equity and
Comprehensive Income <br>
Nine months ended July 6, 2008 and July 1, 2007</font></b><font SIZE="2"><br>
(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="40%">&nbsp;</td>
    <td align="center" nowrap>&nbsp;</td>
    <td align="center" nowrap>&nbsp;</td>
    <td align="center" nowrap>&nbsp;</td>
    <td align="center" nowrap>&nbsp;</td>
    <td align="center" nowrap>&nbsp;</td>
    <td COLSPAN="2" align="center" nowrap><font SIZE="2">Accumulated</font></td>
    <td align="center" nowrap>&nbsp;</td>
    <td align="center" nowrap>&nbsp;</td>
    <td align="center" nowrap>&nbsp;</td>
    <td align="center" nowrap>&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="40%">&nbsp;</td>
    <td COLSPAN="3" align="center" style="border-bottom-style: solid; border-bottom-width: 1" nowrap>
    <font SIZE="2">
    <p align="center">Share Capital</font></td>
    <td align="center" nowrap>&nbsp;</td>
    <td align="center" nowrap>&nbsp;</td>
    <td align="center" nowrap colspan="2"><font SIZE="2">other</font></td>
    <td align="center" nowrap>&nbsp;</td>
    <td align="center" nowrap>&nbsp;</td>
    <td align="center" nowrap colspan="2"><font SIZE="2">Total</font></td>
  </tr>
  <tr>
    <td WIDTH="40%">&nbsp;</td>
    <td align="center" style="border-top-style: solid; border-top-width: 1" nowrap>&nbsp;</td>
    <td align="center" style="border-top-style: solid; border-top-width: 1" nowrap>&nbsp;</td>
    <td align="center" style="border-top-style: solid; border-top-width: 1" nowrap>&nbsp;</td>
    <td COLSPAN="2" align="center" nowrap><font SIZE="2">Contributed</font></td>
    <td COLSPAN="2" align="center" nowrap><font SIZE="2">comprehensive</font></td>
    <td align="center" nowrap>&nbsp;</td>
    <td align="center" nowrap><font SIZE="2">Retained</font></td>
    <td COLSPAN="2" align="center" nowrap><font SIZE="2">shareholders'</font></td>
  </tr>
  <tr>
    <td WIDTH="40%">&nbsp;</td>
    <td align="center" style="border-bottom-style: solid; border-bottom-width: 1" nowrap>
    <font SIZE="2">Number</font></td>
    <td COLSPAN="2" align="center" style="border-bottom-style: solid; border-bottom-width: 1" nowrap>
    <font SIZE="2">Amount</font></td>
    <td COLSPAN="2" align="center" style="border-bottom-style: solid; border-bottom-width: 1" nowrap>
    <font SIZE="2">surplus</font></td>
    <td align="center" style="border-bottom-style: solid; border-bottom-width: 1" nowrap colspan="2">
    <font SIZE="2">income</font></td>
    <td align="center" style="border-bottom-style: solid; border-bottom-width: 1" nowrap>&nbsp;</td>
    <td align="center" style="border-bottom-style: solid; border-bottom-width: 1" nowrap>
    <font SIZE="2">earnings</font></td>
    <td align="center" style="border-bottom-style: solid; border-bottom-width: 1" nowrap colspan="2">
    <font SIZE="2">equity</font></td>
  </tr>
  <tr>
    <td WIDTH="40%">&nbsp;</td>
    <td align="right" style="border-top-style: solid; border-top-width: 1">&nbsp;</td>
    <td align="right" style="border-top-style: solid; border-top-width: 1">&nbsp;</td>
    <td align="right" style="border-top-style: solid; border-top-width: 1">&nbsp;</td>
    <td align="right" style="border-top-style: solid; border-top-width: 1">&nbsp;</td>
    <td align="right" style="border-top-style: solid; border-top-width: 1">&nbsp;</td>
    <td align="right" style="border-top-style: solid; border-top-width: 1">&nbsp;</td>
    <td align="right" style="border-top-style: solid; border-top-width: 1">&nbsp;</td>
    <td align="right" style="border-top-style: solid; border-top-width: 1">&nbsp;</td>
    <td align="right" style="border-top-style: solid; border-top-width: 1">&nbsp;</td>
    <td align="right" style="border-top-style: solid; border-top-width: 1">&nbsp;</td>
    <td align="right" style="border-top-style: solid; border-top-width: 1">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="40%"><font SIZE="2">Balance, September 30, 2007</font></td>
    <td align="right"><font SIZE="2">
    <p style="margin-right: 4">120,419</font></td>
    <td align="right"><font SIZE="2">
    <p style="margin-right: 4">$</font></td>
    <td align="right"><font SIZE="2">
    <p style="margin-right: 4">88,061</font></td>
    <td align="right"><font SIZE="2">
    <p style="margin-right: 4">$</font></td>
    <td align="right"><font SIZE="2">
    <p style="margin-right: 4">3,953</font></td>
    <td align="right"><font SIZE="2">
    <p style="margin-right: 4">$</font></td>
    <td align="right"><font SIZE="2">
    <p style="margin-right: 4">26,248</font></td>
    <td align="right">
    <p style="margin-right: 4"><font SIZE="2">$</font></td>
    <td align="right"><font SIZE="2">
    <p style="margin-right: 4">&nbsp;545,388</font></td>
    <td align="right"><font SIZE="2">
    <p style="margin-right: 4">$</font></td>
    <td align="right"><font SIZE="2">
    <p style="margin-right: 4">663,650</font></td>
  </tr>
  <tr>
    <td WIDTH="40%"><font SIZE="2">Stock-based compensation related to</font></td>
    <td WIDTH="8%" align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="2%" align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="8%" align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="2%" align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="8%" align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="2%" align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="8%" align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="2%" align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="8%" align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="2%" align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="8%" align="right">
    <p style="margin-right: 4">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="40%"><font SIZE="2">&nbsp;&nbsp;&nbsp; stock options and Treasury</font></td>
    <td WIDTH="8%" align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td WIDTH="2%" align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td align="right">
    <p style="margin-right: 4">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="40%"><font SIZE="2">&nbsp;&nbsp;&nbsp; restricted share units</font></td>
    <td align="right"><font SIZE="2">
    <p style="margin-right: 4">-</font></td>
    <td align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td align="right"><font SIZE="2">
    <p style="margin-right: 4">-</font></td>
    <td align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td align="right"><font SIZE="2">
    <p style="margin-right: 4">2,083</font></td>
    <td align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td align="right"><font SIZE="2">
    <p style="margin-right: 4">-</font></td>
    <td align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td align="right"><font SIZE="2">
    <p style="margin-right: 4">-</font></td>
    <td align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td align="right"><font SIZE="2">
    <p style="margin-right: 4">2,083</font></td>
  </tr>
  <tr>
    <td WIDTH="40%"><font SIZE="2">Shares issued under employee share</font></td>
    <td align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td align="right">
    <p style="margin-right: 4">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="40%"><font SIZE="2">&nbsp;&nbsp;&nbsp; purchase plan</font></td>
    <td align="right"><font SIZE="2">
    <p style="margin-right: 4">16</font></td>
    <td align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td align="right"><font SIZE="2">
    <p style="margin-right: 4">543</font></td>
    <td align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td align="right"><font SIZE="2">
    <p style="margin-right: 4">-</font></td>
    <td align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td align="right"><font SIZE="2">
    <p style="margin-right: 4">-</font></td>
    <td align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td align="right"><font SIZE="2">
    <p style="margin-right: 4">-</font></td>
    <td align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td align="right"><font SIZE="2">
    <p style="margin-right: 4">543</font></td>
  </tr>
  <tr>
    <td WIDTH="40%"><font SIZE="2">Shares issued pursuant to exercise of</font></td>
    <td align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td align="right">
    <p style="margin-right: 4">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="40%"><font SIZE="2">&nbsp;&nbsp;&nbsp; stock options</font></td>
    <td align="right"><font SIZE="2">
    <p style="margin-right: 4">81</font></td>
    <td align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td align="right"><font SIZE="2">
    <p style="margin-right: 4">417</font></td>
    <td align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td align="right"><font SIZE="2">
    <p style="margin-right: 4">-</font></td>
    <td align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td align="right"><font SIZE="2">
    <p style="margin-right: 4">-</font></td>
    <td align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td align="right"><font SIZE="2">
    <p style="margin-right: 4">-</font></td>
    <td align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td align="right"><font SIZE="2">
    <p style="margin-right: 4">417</font></td>
  </tr>
  <tr>
    <td WIDTH="40%"><font SIZE="2">Shares issued pursuant to the</font></td>
    <td align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td align="right">
    <p style="margin-right: 4">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="40%"><font SIZE="2">&nbsp;&nbsp;&nbsp; settlement of Treasury
    restricted</font></td>
    <td align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td align="right">
    <p style="margin-right: 4">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="40%"><font SIZE="2">&nbsp;&nbsp;&nbsp; share units</font></td>
    <td align="right"><font SIZE="2">
    <p style="margin-right: 4">8</font></td>
    <td align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td align="right"><font SIZE="2">
    <p style="margin-right: 4">126</font></td>
    <td align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td align="right"><font SIZE="2">
    <p style="margin-right: 4">(126)</font></td>
    <td align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td align="right"><font SIZE="2">
    <p style="margin-right: 4">-</font></td>
    <td align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td align="right"><font SIZE="2">
    <p style="margin-right: 4">-</font></td>
    <td align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td align="right"><font SIZE="2">
    <p style="margin-right: 4">-</font></td>
  </tr>
  <tr>
    <td WIDTH="40%"><font SIZE="2">Net earnings</font></td>
    <td align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2">
    <p style="margin-right: 4">-</font></td>
    <td align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2">
    <p style="margin-right: 4">-</font></td>
    <td align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2">
    <p style="margin-right: 4">-</font></td>
    <td align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2">
    <p style="margin-right: 4">-</font></td>
    <td align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2">
    <p style="margin-right: 4">123,171</font></td>
    <td align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2">
    <p style="margin-right: 4">123,171</font></td>
  </tr>
  <tr>
    <td WIDTH="40%"><font SIZE="2">Balance, July 6, 2008 (unaudited)</font></td>
    <td align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: double; border-bottom-width: 3">
    <font SIZE="2">
    <p style="margin-right: 4">120,524</font></td>
    <td align="right"><font SIZE="2">
    <p style="margin-right: 4">$</font></td>
    <td align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: double; border-bottom-width: 3">
    <font SIZE="2">
    <p style="margin-right: 4">89,147</font></td>
    <td align="right"><font SIZE="2">
    <p style="margin-right: 4">$</font></td>
    <td align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: double; border-bottom-width: 3">
    <font SIZE="2">
    <p style="margin-right: 4">5,910</font></td>
    <td align="right"><font SIZE="2">
    <p style="margin-right: 4">$</font></td>
    <td align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: double; border-bottom-width: 3">
    <font SIZE="2">
    <p style="margin-right: 4">26,248</font></td>
    <td align="right">
    <p style="margin-right: 4"><font SIZE="2">$</font></td>
    <td align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: double; border-bottom-width: 3">
    <font SIZE="2">
    <p style="margin-right: 4">&nbsp;668,559</font></td>
    <td align="right"><font SIZE="2">
    <p style="margin-right: 4">$</font></td>
    <td align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: double; border-bottom-width: 3">
    <font SIZE="2">
    <p style="margin-right: 4">789,864</font></td>
  </tr>
  <tr>
    <td WIDTH="40%">&nbsp;</td>
    <td align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td align="right">
    <p style="margin-right: 4">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="40%">&nbsp;</td>
    <td align="right">&nbsp;</td>
    <td align="right">&nbsp;</td>
    <td align="right">&nbsp;</td>
    <td align="right">&nbsp;</td>
    <td align="right">&nbsp;</td>
    <td align="right">&nbsp;</td>
    <td align="right">&nbsp;</td>
    <td align="right">&nbsp;</td>
    <td align="right">&nbsp;</td>
    <td align="right">&nbsp;</td>
    <td align="right">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="40%">&nbsp;</td>
    <td align="right">&nbsp;</td>
    <td align="right">&nbsp;</td>
    <td align="right">&nbsp;</td>
    <td align="center">&nbsp;</td>
    <td align="center">&nbsp;</td>
    <td COLSPAN="2" align="center"><font SIZE="2">Accumulated</font></td>
    <td align="center">&nbsp;</td>
    <td align="center">&nbsp;</td>
    <td align="center">&nbsp;</td>
    <td align="center">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="40%">&nbsp;</td>
    <td COLSPAN="3" align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2">
    <p align="center">Share Capital</font></td>
    <td align="center">&nbsp;</td>
    <td align="center">&nbsp;</td>
    <td align="center" colspan="2"><font SIZE="2">other</font></td>
    <td align="center">&nbsp;</td>
    <td align="center">&nbsp;</td>
    <td align="center" colspan="2"><font SIZE="2">Total</font></td>
  </tr>
  <tr>
    <td WIDTH="40%">&nbsp;</td>
    <td align="right" style="border-top-style: solid; border-top-width: 1">&nbsp;</td>
    <td align="right" style="border-top-style: solid; border-top-width: 1">&nbsp;</td>
    <td align="right" style="border-top-style: solid; border-top-width: 1">&nbsp;</td>
    <td COLSPAN="2" align="center"><font SIZE="2">Contributed</font></td>
    <td COLSPAN="2" align="center"><font SIZE="2">comprehensive</font></td>
    <td align="center">&nbsp;</td>
    <td align="center"><font SIZE="2">Retained</font></td>
    <td COLSPAN="2" align="center"><font SIZE="2">shareholders'</font></td>
  </tr>
  <tr>
    <td WIDTH="40%">&nbsp;</td>
    <td align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2">Number</font></td>
    <td COLSPAN="2" align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2">Amount</font></td>
    <td COLSPAN="2" align="center" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2">surplus</font></td>
    <td align="center" style="border-bottom-style: solid; border-bottom-width: 1" colspan="2">
    <font SIZE="2">income</font></td>
    <td align="center" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td align="center" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2">earnings</font></td>
    <td align="center" style="border-bottom-style: solid; border-bottom-width: 1" colspan="2">
    <font SIZE="2">equity</font></td>
  </tr>
  <tr>
    <td WIDTH="40%">&nbsp;</td>
    <td align="right" style="border-top-style: solid; border-top-width: 1">
    <p style="margin-right: 4">&nbsp;</td>
    <td align="right" style="border-top-style: solid; border-top-width: 1">
    <p style="margin-right: 4">&nbsp;</td>
    <td align="right" style="border-top-style: solid; border-top-width: 1">
    <p style="margin-right: 4">&nbsp;</td>
    <td align="right" style="border-top-style: solid; border-top-width: 1">
    <p style="margin-right: 4">&nbsp;</td>
    <td align="right" style="border-top-style: solid; border-top-width: 1">
    <p style="margin-right: 4">&nbsp;</td>
    <td align="right" style="border-top-style: solid; border-top-width: 1">
    <p style="margin-right: 4">&nbsp;</td>
    <td align="right" style="border-top-style: solid; border-top-width: 1">
    <p style="margin-right: 4">&nbsp;</td>
    <td align="right" style="border-top-style: solid; border-top-width: 1">
    <p style="margin-right: 4">&nbsp;</td>
    <td align="right" style="border-top-style: solid; border-top-width: 1">
    <p style="margin-right: 4">&nbsp;</td>
    <td align="right" style="border-top-style: solid; border-top-width: 1">
    <p style="margin-right: 4">&nbsp;</td>
    <td align="right" style="border-top-style: solid; border-top-width: 1">
    <p style="margin-right: 4">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="40%"><font SIZE="2">Balance, October 1, 2006</font></td>
    <td align="right"><font SIZE="2">
    <p style="margin-right: 4">120,228</font></td>
    <td align="right"><font SIZE="2">
    <p style="margin-right: 4">$</font></td>
    <td align="right"><font SIZE="2">
    <p style="margin-right: 4">86,584</font></td>
    <td align="right"><font SIZE="2">
    <p style="margin-right: 4">$</font></td>
    <td align="right"><font SIZE="2">
    <p style="margin-right: 4">2,365</font></td>
    <td align="right"><font SIZE="2">
    <p style="margin-right: 4">$</font></td>
    <td align="right"><font SIZE="2">
    <p style="margin-right: 4">26,248</font></td>
    <td align="right">
    <p style="margin-right: 4"><font SIZE="2">$</font></td>
    <td align="right"><font SIZE="2">
    <p style="margin-right: 4">415,368</font></td>
    <td align="right"><font SIZE="2">
    <p style="margin-right: 4">$</font></td>
    <td align="right"><font SIZE="2">
    <p style="margin-right: 4">530,565</font></td>
  </tr>
  <tr>
    <td WIDTH="40%"><font SIZE="2">Stock-based compensation related to</font></td>
    <td align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td align="right">
    <p style="margin-right: 4">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="40%"><font SIZE="2">&nbsp;&nbsp;&nbsp; stock options and Treasury</font></td>
    <td align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td align="right">
    <p style="margin-right: 4">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="40%"><font SIZE="2">&nbsp;&nbsp;&nbsp; restricted share units</font></td>
    <td align="right"><font SIZE="2">
    <p style="margin-right: 4">-</font></td>
    <td align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td align="right"><font SIZE="2">
    <p style="margin-right: 4">-</font></td>
    <td align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td align="right"><font SIZE="2">
    <p style="margin-right: 4">1,149</font></td>
    <td align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td align="right"><font SIZE="2">
    <p style="margin-right: 4">-</font></td>
    <td align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td align="right"><font SIZE="2">
    <p style="margin-right: 4">-</font></td>
    <td align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td align="right"><font SIZE="2">
    <p style="margin-right: 4">1,149</font></td>
  </tr>
  <tr>
    <td WIDTH="40%"><font SIZE="2">Shares issued under employee share</font></td>
    <td align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td align="right">
    <p style="margin-right: 4">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="40%"><font SIZE="2">&nbsp;&nbsp;&nbsp; purchase plan</font></td>
    <td align="right"><font SIZE="2">
    <p style="margin-right: 4">13</font></td>
    <td align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td align="right"><font SIZE="2">
    <p style="margin-right: 4">378</font></td>
    <td align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td align="right"><font SIZE="2">
    <p style="margin-right: 4">-</font></td>
    <td align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td align="right"><font SIZE="2">
    <p style="margin-right: 4">-</font></td>
    <td align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td align="right"><font SIZE="2">
    <p style="margin-right: 4">-</font></td>
    <td align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td align="right"><font SIZE="2">
    <p style="margin-right: 4">378</font></td>
  </tr>
  <tr>
    <td WIDTH="40%"><font SIZE="2">Shares issued pursuant to exercise of</font></td>
    <td align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td align="right">
    <p style="margin-right: 4">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="40%"><font SIZE="2">&nbsp;&nbsp;&nbsp; stock options</font></td>
    <td align="right"><font SIZE="2">
    <p style="margin-right: 4">117</font></td>
    <td align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td align="right"><font SIZE="2">
    <p style="margin-right: 4">571</font></td>
    <td align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td align="right"><font SIZE="2">
    <p style="margin-right: 4">-</font></td>
    <td align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td align="right"><font SIZE="2">
    <p style="margin-right: 4">-</font></td>
    <td align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td align="right"><font SIZE="2">
    <p style="margin-right: 4">-</font></td>
    <td align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td align="right"><font SIZE="2">
    <p style="margin-right: 4">571</font></td>
  </tr>
  <tr>
    <td WIDTH="40%"><font SIZE="2">Shares issued pursuant to the</font></td>
    <td align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td align="right">
    <p style="margin-right: 4">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="40%"><font SIZE="2">&nbsp;&nbsp;&nbsp; settlement of Treasury
    restricted</font></td>
    <td align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td align="right">
    <p style="margin-right: 4">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="40%"><font SIZE="2">&nbsp;&nbsp;&nbsp; share units</font></td>
    <td align="right"><font SIZE="2">
    <p style="margin-right: 4">18</font></td>
    <td align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td align="right"><font SIZE="2">
    <p style="margin-right: 4">153</font></td>
    <td align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td align="right"><font SIZE="2">(153)</font></td>
    <td align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td align="right"><font SIZE="2">
    <p style="margin-right: 4">-</font></td>
    <td align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td align="right"><font SIZE="2">
    <p style="margin-right: 4">-</font></td>
    <td align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td align="right"><font SIZE="2">
    <p style="margin-right: 4">-</font></td>
  </tr>
  <tr>
    <td WIDTH="40%"><font SIZE="2">Net earnings</font></td>
    <td align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2">
    <p style="margin-right: 4">-</font></td>
    <td align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2">
    <p style="margin-right: 4">-</font></td>
    <td align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2">
    <p style="margin-right: 4">-</font></td>
    <td align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2">
    <p style="margin-right: 4">-</font></td>
    <td align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2">
    <p style="margin-right: 4">89,154</font></td>
    <td align="right">
    <p style="margin-right: 4">&nbsp;</td>
    <td align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2">
    <p style="margin-right: 4">89,154</font></td>
  </tr>
  <tr>
    <td WIDTH="40%"><font SIZE="2">Balance, July 1, 2007 (unaudited)</font></td>
    <td align="right" style="border-top-style: solid; border-top-width: 1; border-bottom: 3px double #000000">
    <font SIZE="2">
    <p style="margin-right: 4">120,376</font></td>
    <td align="right"><font SIZE="2">
    <p style="margin-right: 4">$</font></td>
    <td align="right" style="border-top-style: solid; border-top-width: 1; border-bottom: 3px double #000000">
    <font SIZE="2">
    <p style="margin-right: 4">87,686</font></td>
    <td align="right"><font SIZE="2">
    <p style="margin-right: 4">$</font></td>
    <td align="right" style="border-top-style: solid; border-top-width: 1; border-bottom: 3px double #000000">
    <font SIZE="2">
    <p style="margin-right: 4">3,361</font></td>
    <td align="right"><font SIZE="2">
    <p style="margin-right: 4">$</font></td>
    <td align="right" style="border-top-style: solid; border-top-width: 1; border-bottom: 3px double #000000">
    <font SIZE="2">
    <p style="margin-right: 4">26,248</font></td>
    <td align="right">
    <p style="margin-right: 4"><font SIZE="2">$</font></td>
    <td align="right" style="border-top-style: solid; border-top-width: 1; border-bottom: 3px double #000000">
    <font SIZE="2">
    <p style="margin-right: 4">504,522</font></td>
    <td align="right"><font SIZE="2">
    <p style="margin-right: 4">$</font></td>
    <td align="right" style="border-top-style: solid; border-top-width: 1; border-bottom: 3px double #000000">
    <font SIZE="2">
    <p style="margin-right: 4">621,817</font></td>
  </tr>
</table>
<p align="center"><font face="Arial MT" size="2">12</font></p>
<hr color="#000000" SIZE="5"><p Style='page-break-before:always'><font SIZE="2"><b>
<p><u>NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS <br>
</u>(For the period ended July 6, 2008) <br>
(Tabular amounts in thousands or thousands of U.S. dollars, except per share
data or unless otherwise noted) <br>
(unaudited) </p>
<p>1. Basis of presentation:</p>
</b>
<p ALIGN="JUSTIFY">The accompanying unaudited interim consolidated financial
statements have been prepared in accordance with Canadian generally accepted
accounting principles for interim financial information and include all normal
and recurring entries that are necessary for a fair presentation of the
financial statements. Accordingly, they do not include all of the information
and footnotes required by Canadian generally accepted accounting principles for
annual financial statements, and should be read in conjunction with the
Company's most recently prepared annual consolidated financial statements for
the year ended September 30, 2007. </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>Certain comparative figures have been reclassified in order to conform with
the current period's presentation. </p>
<p>All amounts in the attached notes are unaudited unless specifically
identified. </p>
<b>
<p>2. Significant accounting policies: </p>
</b>
<p ALIGN="JUSTIFY">Except for the adoption of the new accounting standards
described in Note 3, the Company applied the same accounting policies in the
preparation of the interim consolidated financial statements, as disclosed in
Note 1(a) and Note 2 of its audited consolidated financial statements in the
Company's annual report for the year ended September 30, 2007. </p>
<b>
<p>3. Adoption of new accounting standards: </p>
</b>
<p ALIGN="JUSTIFY">Effective the commencement of its 2008 fiscal year, the
Company has adopted the Canadian Institute of Chartered Accountants (&quot;CICA&quot;)
Handbook Section 1535, Capital Disclosures, CICA Handbook Section 3862,
Financial Instruments - Disclosure, and CICA Handbook Section 3863, Financial
Instruments - Presentation. These new Handbook Sections apply to fiscal years
beginning on or after October 1, 2007. These Sections relate to disclosure and
presentation only and did not have an impact on our financial results. See Notes
10 and 11. </p>
<b>
<p>4. Business acquisition: </p>
</b>
<p ALIGN="JUSTIFY">On October 15, 2007, the Company acquired 100% of the capital
stock of V.I.Prewett &amp; Son, Inc. (&quot;Prewett&quot;), a U.S. supplier of basic family
socks primarily to U.S. mass-market retailers. Prewett's corporate headquarters
are located in Fort Payne, Alabama. The acquisition is intended to enhance
further the Company's position as a full-product supplier of socks, activewear
and underwear for the retail channel. </p>
<p ALIGN="JUSTIFY">The aggregate purchase price of $126.8 million (including
transaction costs of $1.5 million) paid in cash on closing is subject to
adjustments based on working capital balances as at the date of acquisition,
which have not yet been finalized. In addition, the purchase agreement provides
for an additional purchase consideration of $10 million contingent on specified
future events. This amount was paid into escrow by the Company and is included
in &quot;Other assets&quot; on the consolidated balance sheet. Any further purchase price
consideration paid by the Company will be accounted for as additional goodwill.
</p>
<p align="justify">The Company accounted for this acquisition using the purchase
method and the results of Prewett have been consolidated with those of the
Company from the date of acquisition. </p>
<p ALIGN="JUSTIFY">The Company has allocated the purchase price on a preliminary
basis to the assets acquired and the liabilities assumed based on management's
best estimate of their fair values and taking into account all relevant
information available at that time. Since the Company is still in the process of
finalizing the independent valuation of certain intangible assets and other
assets acquired and liabilities assumed at the date of acquisition, the
allocation of the purchase price is subject to change. The Company expects to
finalize the purchase price by the end of fiscal 2008. </p>
<p align="center">13</p>
</font><hr color="#000000" SIZE="5"><p Style='page-break-before:always'>
<table border="0" cellpadding="0" cellspacing="0" style="border-collapse: collapse" bordercolor="#111111" width="100%" height="45">
  <tr>
    <td width="50%" height="26"><font size="2">
    <img border="0" src="gildan2.jpg" width="84" height="26"></font></td>
    <td width="50%" height="26">&nbsp;</td>
  </tr>
  <tr>
    <td width="50%" height="19">&nbsp;</td>
    <td width="50%" height="19"><font SIZE="2" color="#808080">
    <p align="right"><b>NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS</b></font></td>
  </tr>
</table>
<font SIZE="2"><b>
<p>4. Business acquisition (continued): </p>
</b>
<p>The following table summarizes the estimated fair value of assets acquired
and liabilities assumed at the date of acquisition: </p>
</font>
<table CELLSPACING="0" BORDER="0" WIDTH="100%" cellpadding="0" style="border-collapse: collapse" bordercolor="#111111">
  <tr>
    <td style="border-top-style: solid; border-top-width: 1">
    <font SIZE="2">
    <p style="margin-left: 30">Assets acquired:</font></td>
    <td WIDTH="3%" align="right" 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: 30">&nbsp;</td>
  </tr>
  <tr>
    <td><font SIZE="2">
    <p style="margin-left: 45">Accounts receivable</font></td>
    <td WIDTH="3%" align="right"><font SIZE="2">$</font></td>
    <td WIDTH="12%" align="right"><font SIZE="2">
    <p style="margin-right: 30">28,805</font></td>
  </tr>
  <tr>
    <td><font SIZE="2">
    <p style="margin-left: 45">Inventories</font></td>
    <td WIDTH="3%" align="right">&nbsp;</td>
    <td WIDTH="12%" align="right"><font SIZE="2">
    <p style="margin-right: 30">43,423</font></td>
  </tr>
  <tr>
    <td><font SIZE="2">
    <p style="margin-left: 45">Prepaid expenses</font></td>
    <td WIDTH="3%" align="right">&nbsp;</td>
    <td WIDTH="12%" align="right"><font SIZE="2">
    <p style="margin-right: 30">1,370</font></td>
  </tr>
  <tr>
    <td><font SIZE="2">
    <p style="margin-left: 45">Property, plant and equipement</font></td>
    <td WIDTH="3%" align="right">&nbsp;</td>
    <td WIDTH="12%" align="right"><font SIZE="2">
    <p style="margin-right: 30">20,202</font></td>
  </tr>
  <tr>
    <td><font SIZE="2">
    <p style="margin-left: 45">Goodwill and identifiable intangible assets</font></td>
    <td WIDTH="3%" align="right">&nbsp;</td>
    <td WIDTH="12%" align="right"><font SIZE="2">
    <p style="margin-right: 30">64,376</font></td>
  </tr>
  <tr>
    <td><font SIZE="2">
    <p style="margin-left: 45">Other assets</font></td>
    <td WIDTH="3%" align="right">&nbsp;</td>
    <td WIDTH="12%" align="right"><font SIZE="2">
    <p style="margin-right: 30">176</font></td>
  </tr>
  <tr>
    <td>
    <p style="margin-left: 30">&nbsp;</td>
    <td WIDTH="3%" align="right">&nbsp;</td>
    <td WIDTH="12%" align="right">
    <p style="margin-right: 30">&nbsp;</td>
  </tr>
  <tr>
    <td><font SIZE="2">
    <p style="margin-left: 30">Liabilities assumed:</font></td>
    <td WIDTH="3%" align="right">&nbsp;</td>
    <td WIDTH="12%" align="right">
    <p style="margin-right: 30">&nbsp;</td>
  </tr>
  <tr>
    <td><font SIZE="2">
    <p style="margin-left: 45">Bank indebtedness</font></td>
    <td WIDTH="3%" align="right"><font SIZE="2">$</font></td>
    <td WIDTH="12%" align="right"><font SIZE="2">
    <p style="margin-right: 26">(1,261)</font></td>
  </tr>
  <tr>
    <td><font SIZE="2">
    <p style="margin-left: 45">Accounts payable and accrued liabilities</font></td>
    <td WIDTH="3%" align="right">&nbsp;</td>
    <td WIDTH="12%" align="right"><font SIZE="2">
    <p style="margin-right: 26">(14,178)</font></td>
  </tr>
  <tr>
    <td style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2">
    <p style="margin-left: 45">Future income taxes</font></td>
    <td WIDTH="3%" align="right" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="12%" align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2">
    <p style="margin-right: 26">(16,094)</font></td>
  </tr>
  <tr>
    <td style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 2">
    <font SIZE="2">
    <p style="margin-left: 30">Net assets acquired</font></td>
    <td WIDTH="3%" align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 2">
    <font SIZE="2">$</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: 30">126,819</font></td>
  </tr>
  <tr>
    <td>
    <p style="margin-left: 30">&nbsp;</td>
    <td WIDTH="3%" align="right">&nbsp;</td>
    <td WIDTH="12%" align="right">
    <p style="margin-right: 30">&nbsp;</td>
  </tr>
  <tr>
    <td><font SIZE="2">
    <p style="margin-left: 30">Consideration:</font></td>
    <td WIDTH="3%" align="right">&nbsp;</td>
    <td WIDTH="12%" align="right">
    <p style="margin-right: 30">&nbsp;</td>
  </tr>
  <tr>
    <td><font SIZE="2">
    <p style="margin-left: 45">Cash</font></td>
    <td WIDTH="3%" align="right"><font SIZE="2">$</font></td>
    <td WIDTH="12%" align="right"><font SIZE="2">
    <p style="margin-right: 30">125,294</font></td>
  </tr>
  <tr>
    <td style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2">
    <p style="margin-left: 45">Transaction costs</font></td>
    <td WIDTH="3%" align="right" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="12%" align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2">
    <p style="margin-right: 30">1,525</font></td>
  </tr>
  <tr>
    <td style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 2">
    <font SIZE="2">
    <p style="margin-left: 30">Purchase price</font></td>
    <td WIDTH="3%" align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 2">
    <font SIZE="2">$</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: 30">126,819</font></td>
  </tr>
</table>
<font SIZE="2">
<p align="justify">Goodwill recorded in connection with this acquisition is not
deductible for tax purposes. Identifiable intangible assets consists primarily
of customer contracts and customer relationships and are currently being
amortized on a straight-line basis over a period of 15 years based on
preliminary estimates of the useful life of these assets. </p>
<p align="justify">Goodwill represents the excess of the purchase price over the
fair value of net assets acquired. Goodwill is not amortized and is tested for
impairment annually, or more frequently if events or changes in circumstances
indicate that the asset might be impaired. When the carrying amount of a
reporting unit exceeds the estimated fair value of the reporting unit, an
impairment loss is recognized in an amount equal to the excess of the carrying
value over the fair value of the goodwill, if any. </p>
<b>
<p align="justify">5. 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">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="70%" style="border-top-style: solid; border-top-width: 1">&nbsp;</td>
    <td WIDTH="15%" align="right" style="border-top-style: solid; border-top-width: 1" nowrap>&nbsp;</td>
    <td WIDTH="15%" align="right" style="border-top-style: solid; border-top-width: 1" nowrap>
    <font SIZE="2">Weighted average</font></td>
  </tr>
  <tr>
    <td WIDTH="70%" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="15%" align="right" style="border-bottom-style: solid; border-bottom-width: 1" nowrap>
    <font SIZE="2">Number</font></td>
    <td WIDTH="15%" align="right" style="border-bottom-style: solid; border-bottom-width: 1" nowrap>
    <font SIZE="2">exercise price</font></td>
  </tr>
  <tr>
    <td WIDTH="70%" style="border-top-style: solid; border-top-width: 1">&nbsp;</td>
    <td WIDTH="15%" align="right" style="border-top-style: solid; border-top-width: 1" nowrap>&nbsp;</td>
    <td WIDTH="15%" align="right" style="border-top-style: solid; border-top-width: 1" nowrap>
    <font SIZE="2">(in Canadian dollars)</font></td>
  </tr>
  <tr>
    <td WIDTH="70%"><font SIZE="2">Options outstanding, September 30, 2007</font></td>
    <td WIDTH="15%" align="right"><font SIZE="2">
    <p style="margin-right: 4">853</font></td>
    <td WIDTH="15%" align="right"><font SIZE="2">10.08</font></td>
  </tr>
  <tr>
    <td WIDTH="70%"><font SIZE="2">Granted</font></td>
    <td WIDTH="15%" align="right"><font SIZE="2">
    <p style="margin-right: 4">127</font></td>
    <td WIDTH="15%" align="right"><font SIZE="2">39.37</font></td>
  </tr>
  <tr>
    <td WIDTH="70%"><font SIZE="2">Exercised</font></td>
    <td WIDTH="15%" align="right"><font SIZE="2">(81)</font></td>
    <td WIDTH="15%" align="right"><font SIZE="2">5.32</font></td>
  </tr>
  <tr>
    <td WIDTH="70%" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2">Forfeited</font></td>
    <td WIDTH="15%" align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2">(13)</font></td>
    <td WIDTH="15%" align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2">32.41</font></td>
  </tr>
  <tr>
    <td WIDTH="70%" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 2">
    <font SIZE="2">Options outstanding, July 6, 2008</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">
    <p style="margin-right: 4">886</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">14.42</font></td>
  </tr>
</table>
<font size="2">
<p ALIGN="JUSTIFY">As at July 6, 2008, 625,200 of the outstanding options were
exercisable at the weighted average price of CA$6.67. Based on the Black-Scholes
option pricing model, the grant date weighted average fair value of the options
granted during the nine months ended July 6, 2008 was CA$12.98. </p>
<p align="center">14</p>
</font>
<hr color="#000000" SIZE="5"><p Style='page-break-before:always'>
<table border="0" cellpadding="0" cellspacing="0" style="border-collapse: collapse" bordercolor="#111111" width="100%" height="45">
  <tr>
    <td width="50%" height="26"><font size="2">
    <img border="0" src="gildan2.jpg" width="84" height="26"></font></td>
    <td width="50%" height="26">&nbsp;</td>
  </tr>
  <tr>
    <td width="50%" height="19">&nbsp;</td>
    <td width="50%" height="19"><font SIZE="2" color="#808080">
    <p align="right"><b>NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS</b></font></td>
  </tr>
</table>
<font SIZE="2"><b>
<p>5. Stock-based compensation (continued):</b> </p>
<p>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="70%" style="border-top-style: solid; border-top-width: 1">&nbsp;</td>
    <td WIDTH="15%" align="right" style="border-top-style: solid; border-top-width: 1" nowrap>&nbsp;</td>
    <td WIDTH="15%" align="right" style="border-top-style: solid; border-top-width: 1" nowrap>
    <font SIZE="2">Weighted average</font></td>
  </tr>
  <tr>
    <td WIDTH="70%" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="15%" align="right" style="border-bottom-style: solid; border-bottom-width: 1" nowrap>
    <font SIZE="2">Number</font></td>
    <td WIDTH="15%" align="right" style="border-bottom-style: solid; border-bottom-width: 1" nowrap>
    <font SIZE="2">fair value per unit</font></td>
  </tr>
  <tr>
    <td WIDTH="70%" style="border-top-style: solid; border-top-width: 1">&nbsp;</td>
    <td WIDTH="15%" align="right" style="border-top-style: solid; border-top-width: 1" nowrap>&nbsp;</td>
    <td WIDTH="15%" align="right" style="border-top-style: solid; border-top-width: 1" nowrap>
    <font SIZE="2">(in Canadian dollars)</font></td>
  </tr>
  <tr>
    <td WIDTH="70%"><font SIZE="2">Treasury RSUs outstanding, September 30, 2007</font></td>
    <td WIDTH="15%" align="right"><font SIZE="2">
    <p style="margin-right: 4">941</font></td>
    <td WIDTH="15%" align="right"><font SIZE="2">18.83</font></td>
  </tr>
  <tr>
    <td WIDTH="70%"><font SIZE="2">Granted</font></td>
    <td WIDTH="15%" align="right"><font SIZE="2">
    <p style="margin-right: 4">43</font></td>
    <td WIDTH="15%" align="right"><font SIZE="2">36.47</font></td>
  </tr>
  <tr>
    <td WIDTH="70%"><font SIZE="2">Settled through the issuance of common shares</font></td>
    <td WIDTH="15%" align="right"><font SIZE="2">(8)</font></td>
    <td WIDTH="15%" align="right"><font SIZE="2">17.89</font></td>
  </tr>
  <tr>
    <td WIDTH="70%" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2">Forfeited</font></td>
    <td WIDTH="15%" align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2">(69)</font></td>
    <td WIDTH="15%" align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2">27.85</font></td>
  </tr>
  <tr>
    <td WIDTH="70%" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 2">
    <font SIZE="2">Treasury RSUs outstanding, July 6, 2008</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">
    <p style="margin-right: 4">907</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">18.99</font></td>
  </tr>
</table>
<font SIZE="2">
<p>As at July 6, 2008, none of the awarded and outstanding Treasury RSUs were
vested. </p>
<p ALIGN="JUSTIFY">The compensation expense recorded for the three-month periods
ended July 6, 2008 and July 1, 2007, respectively, was $0.6 million and $0.4
million, in respect of the Treasury RSUs and stock options. The compensation
expense recorded for the nine-month periods ended July 6, 2008 and July 1, 2007,
respectively, was $2.1 million and $1.2 million, in respect of the Treasury RSUs
and stock options. The counterpart has been recorded as contributed surplus.
When the common shares are issued to the employees, the amounts previously
credited to contributed surplus are reclassified to share capital. </p>
<p>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="50%" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td WIDTH="50%" align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2">Number</font></td>
  </tr>
  <tr>
    <td WIDTH="50%" style="border-top-style: solid; border-top-width: 1">
    <font SIZE="2">Non-Treasury RSUs outstanding, September 30, 2007</font></td>
    <td WIDTH="50%" align="right" style="border-top-style: solid; border-top-width: 1">
    <font SIZE="2">
    <p style="margin-right: 4">56</font></td>
  </tr>
  <tr>
    <td WIDTH="50%"><font SIZE="2">Granted</font></td>
    <td WIDTH="50%" align="right"><font SIZE="2">
    <p style="margin-right: 4">50</font></td>
  </tr>
  <tr>
    <td WIDTH="50%" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2">Forfeited</font></td>
    <td WIDTH="50%" align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2">(4)</font></td>
  </tr>
  <tr>
    <td WIDTH="50%" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 2">
    <font SIZE="2">Non-Treasury RSUs outstanding, July 6, 2008</font></td>
    <td WIDTH="50%" 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">102</font></td>
  </tr>
</table>
<font SIZE="2">
<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 6, 2008, the
weighted average fair value per non-Treasury RSU was CA$24.36. No common shares
are issued from treasury under such awards and they are therefore non-dilutive.
As of July 6, 2008, none of the awarded and outstanding non-Treasury RSUs were
vested. </p>
<p ALIGN="JUSTIFY">The compensation (recovery) expense recorded for the
three-month periods ended July 6, 2008 and July 1, 2007, respectively, was
$(0.1) million and $0.1 million, in respect of the non-Treasury RSUs. The
compensation expense recorded for the nine-month periods ended July 6, 2008 and
July 1, 2007, respectively, was $0.4 million and $0.4 million, in respect of the
non-Treasury RSUs. The counterpart has been recorded in accounts payable and
accrued liabilities. </p>
<b>
<p>6. Guarantees: </p>
</b>
<p align="justify">The Company, and certain of its subsidiaries, have granted
corporate guarantees, irrevocable standby letters of credit and surety bonds to
third parties to indemnify them in the event the Company and certain of its
subsidiaries do not perform their contractual obligations. As at July 6, 2008,
the maximum potential liability under these guarantees was $17.4 million, of
which $5.2 million was for surety bonds and $12.2 million was for corporate
guarantees and standby letters of credit. The standby letters of credit mature
at various dates during 2008, the surety bonds are automatically renewed on an
annual basis and the corporate guarantees mature at various dates up to fiscal
2010. </p>
<p align="justify">As at July 6, 2008, the Company has recorded no liability
with respect to these guarantees, as the Company does not expect to make any
payments for the aforementioned items. Management has determined 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>
<p align="center">15</p>
</font>
<hr color="#000000" SIZE="5"><p Style='page-break-before:always'>
<table border="0" cellpadding="0" cellspacing="0" style="border-collapse: collapse" bordercolor="#111111" width="100%" height="45">
  <tr>
    <td width="50%" height="26"><font size="2">
    <img border="0" src="gildan2.jpg" width="84" height="26"></font></td>
    <td width="50%" height="26">&nbsp;</td>
  </tr>
  <tr>
    <td width="50%" height="19">&nbsp;</td>
    <td width="50%" height="19"><font SIZE="2" color="#808080">
    <p align="right"><b>NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS</b></font></td>
  </tr>
</table>
<font SIZE="2"><b>
<p>7. Restructuring and other charges, and assets held for sale: </p>
</b>
<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>&nbsp;</td>
    <td align="right" nowrap>&nbsp;</td>
    <td COLSPAN="3" align="center" nowrap><font SIZE="2"><b>Three months ended</b></font></td>
    <td align="center" nowrap>&nbsp;</td>
    <td COLSPAN="3" align="center" nowrap><font SIZE="2"><b>Nine months ended</b></font></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td align="right" nowrap width="6%">&nbsp;</td>
    <td align="center" nowrap width="6%">
    <p align="right"><font SIZE="2">July 6,</font></td>
    <td align="center" nowrap width="6%">&nbsp;</td>
    <td align="center" nowrap width="6%">
    <p align="right"><font SIZE="2">July 1,</font></td>
    <td align="center" nowrap width="6%">&nbsp;</td>
    <td align="center" nowrap width="6%">
    <p align="right"><font SIZE="2">July 6,</font></td>
    <td align="center" nowrap width="6%">&nbsp;</td>
    <td align="center" nowrap width="6%">
    <p align="right"><font SIZE="2">July 1,</font></td>
  </tr>
  <tr>
    <td style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td align="right" style="border-bottom-style: solid; border-bottom-width: 1" nowrap>&nbsp;</td>
    <td align="center" style="border-bottom-style: solid; border-bottom-width: 1" nowrap>
    <p align="right">
    <font SIZE="2">2008</font></td>
    <td align="center" style="border-bottom-style: solid; border-bottom-width: 1" nowrap>&nbsp;</td>
    <td align="center" style="border-bottom-style: solid; border-bottom-width: 1" nowrap>
    <p align="right">
    <font SIZE="2">2007</font></td>
    <td align="center" style="border-bottom-style: solid; border-bottom-width: 1" nowrap>&nbsp;</td>
    <td align="center" style="border-bottom-style: solid; border-bottom-width: 1" nowrap>
    <p align="right">
    <font SIZE="2">2008</font></td>
    <td align="center" style="border-bottom-style: solid; border-bottom-width: 1" nowrap>&nbsp;</td>
    <td align="center" style="border-bottom-style: solid; border-bottom-width: 1" nowrap>
    <p align="right">
    <font SIZE="2">2007</font></td>
  </tr>
  <tr>
    <td style="border-top-style: solid; border-top-width: 1">
    <font SIZE="2">Accelerated depreciation</font></td>
    <td align="right" style="border-top-style: solid; border-top-width: 1">
    <font SIZE="2">
    <p>$</font></td>
    <td align="right" style="border-top-style: solid; border-top-width: 1">
    <font SIZE="2">
    <p style="margin-right: 4">-</font></td>
    <td align="right" style="border-top-style: solid; border-top-width: 1">
    <font SIZE="2">
    <p>$</font></td>
    <td align="right" style="border-top-style: solid; border-top-width: 1">
    <font SIZE="2">
    <p style="margin-right: 4">766</font></td>
    <td align="right" style="border-top-style: solid; border-top-width: 1">
    <font SIZE="2">
    <p>$</font></td>
    <td align="right" style="border-top-style: solid; border-top-width: 1">
    <font SIZE="2">
    <p style="margin-right: 4">-</font></td>
    <td align="right" style="border-top-style: solid; border-top-width: 1">
    <font SIZE="2">
    <p>$</font></td>
    <td align="right" style="border-top-style: solid; border-top-width: 1">
    <font SIZE="2">
    <p style="margin-right: 4">2,892</font></td>
  </tr>
  <tr>
    <td><font SIZE="2">Gain on disposal of long-lived assets</font></td>
    <td align="right">
    <p>&nbsp;</td>
    <td align="right"><font SIZE="2">(38)</font></td>
    <td align="right">
    <p>&nbsp;</td>
    <td align="right"><font SIZE="2">(58)</font></td>
    <td align="right">
    <p>&nbsp;</td>
    <td align="right"><font SIZE="2">(366)</font></td>
    <td align="right">
    <p>&nbsp;</td>
    <td align="right"><font SIZE="2">(1,836)</font></td>
  </tr>
  <tr>
    <td><font SIZE="2">Asset impairment loss</font></td>
    <td align="right">
    <p>&nbsp;</td>
    <td align="right"><font SIZE="2">
    <p style="margin-right: 4">1,700</font></td>
    <td align="right">
    <p>&nbsp;</td>
    <td align="right"><font SIZE="2">
    <p style="margin-right: 4">-</font></td>
    <td align="right">
    <p>&nbsp;</td>
    <td align="right"><font SIZE="2">
    <p style="margin-right: 4">1,700</font></td>
    <td align="right">
    <p>&nbsp;</td>
    <td align="right"><font SIZE="2">
    <p style="margin-right: 4">3,560</font></td>
  </tr>
  <tr>
    <td><font SIZE="2">Severance</font></td>
    <td align="right">
    <p>&nbsp;</td>
    <td align="right"><font SIZE="2">
    <p style="margin-right: 4">400</font></td>
    <td align="right">
    <p>&nbsp;</td>
    <td align="right"><font SIZE="2">
    <p style="margin-right: 4">1,234</font></td>
    <td align="right">
    <p>&nbsp;</td>
    <td align="right"><font SIZE="2">
    <p style="margin-right: 4">400</font></td>
    <td align="right">
    <p>&nbsp;</td>
    <td align="right"><font SIZE="2">
    <p style="margin-right: 4">13,296</font></td>
  </tr>
  <tr>
    <td style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2">Other</font></td>
    <td align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <p>&nbsp;</td>
    <td align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2">
    <p style="margin-right: 4">227</font></td>
    <td align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <p>&nbsp;</td>
    <td align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2">
    <p style="margin-right: 4">2,647</font></td>
    <td align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <p>&nbsp;</td>
    <td align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2">
    <p style="margin-right: 4">2,195</font></td>
    <td align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <p>&nbsp;</td>
    <td align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2">
    <p style="margin-right: 4">4,427</font></td>
  </tr>
  <tr>
    <td style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 2">&nbsp;</td>
    <td align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 2">
    <font SIZE="2">
    <p>$</font></td>
    <td 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">2,289</font></td>
    <td align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 2">
    <font SIZE="2">
    <p>$</font></td>
    <td align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 2">
    <font SIZE="2">
    <p style="margin-right: 4">4,589</font></td>
    <td align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 2">
    <font SIZE="2">
    <p>$</font></td>
    <td 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">3,929</font></td>
    <td align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 2">
    <font SIZE="2">
    <p>$</font></td>
    <td 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">22,339</font></td>
  </tr>
</table>
<font SIZE="2">
<p ALIGN="JUSTIFY">In fiscal 2006 and 2007, the Company announced the closure,
relocation and consolidation of manufacturing and distribution facilities in
Canada, the United States and Mexico, as well as the relocation of its corporate
office. The costs incurred in connection with these announcements have been
recorded as restructuring and other charges, and included severance and other
costs, asset impairment losses and accelerated depreciation resulting from the
reduction in the estimated remaining economic lives of property, plant and
equipment at these facilities. Other costs relate primarily to exit costs
incurred in connection with the closures noted above, including carrying and
dismantling costs associated with assets held for sale. During the third quarter
of fiscal 2008, the Company recorded an impairment loss on property, plant and
equipment of $1.7 million resulting from a planned consolidation of its sewing
operations in Haiti. </p>
<p ALIGN="JUSTIFY">Assets held for sale of $12.6 million as at July 6, 2008
(September 30, 2007 - $6.6 million; July 1, 2007 - $2.4 million) primarily
related to closed facilities at these various locations and are recorded at the
lower of their carrying value or fair value less costs to sell. Additional
carrying costs related to these closed facilities and any gains or losses on the
disposition of the assets held for sale will be accounted for as restructuring
charges as incurred. </p>
<b>
<p>8. Earnings per share: </p>
</b>
<p>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>&nbsp;</td>
    <td align="center" nowrap>&nbsp;</td>
    <td COLSPAN="3" align="center" nowrap><font SIZE="2"><b>Three months ended</b></font></td>
    <td align="center" nowrap>&nbsp;</td>
    <td COLSPAN="3" align="center" nowrap><font SIZE="2"><b>Nine months ended</b></font></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td align="center" nowrap>&nbsp;</td>
    <td align="center" nowrap>
    <p align="right"><font SIZE="2">July 6,</font></td>
    <td align="center" nowrap>&nbsp;</td>
    <td align="center" nowrap>
    <p align="right"><font SIZE="2">July 1,</font></td>
    <td align="center" nowrap>&nbsp;</td>
    <td align="center" nowrap>
    <p align="right"><font SIZE="2">July 6,</font></td>
    <td align="center" nowrap>&nbsp;</td>
    <td align="center" nowrap>
    <p align="right"><font SIZE="2">July 1,</font></td>
  </tr>
  <tr>
    <td style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td align="center" style="border-bottom-style: solid; border-bottom-width: 1" nowrap>&nbsp;</td>
    <td align="center" style="border-bottom-style: solid; border-bottom-width: 1" nowrap>
    <p align="right">
    <font SIZE="2">2008</font></td>
    <td align="center" style="border-bottom-style: solid; border-bottom-width: 1" nowrap>&nbsp;</td>
    <td align="center" style="border-bottom-style: solid; border-bottom-width: 1" nowrap>
    <p align="right">
    <font SIZE="2">2007</font></td>
    <td align="center" style="border-bottom-style: solid; border-bottom-width: 1" nowrap>&nbsp;</td>
    <td align="center" style="border-bottom-style: solid; border-bottom-width: 1" nowrap>
    <p align="right">
    <font SIZE="2">2008</font></td>
    <td align="center" style="border-bottom-style: solid; border-bottom-width: 1" nowrap>&nbsp;</td>
    <td align="center" style="border-bottom-style: solid; border-bottom-width: 1" nowrap>
    <p align="right">
    <font SIZE="2">2007</font></td>
  </tr>
  <tr>
    <td style="border-top-style: solid; border-top-width: 1">
    <font SIZE="2">Basic earnings per share:</font></td>
    <td align="right" style="border-top-style: solid; border-top-width: 1">&nbsp;</td>
    <td align="right" style="border-top-style: solid; border-top-width: 1">&nbsp;</td>
    <td align="right" style="border-top-style: solid; border-top-width: 1">&nbsp;</td>
    <td align="right" style="border-top-style: solid; border-top-width: 1">&nbsp;</td>
    <td align="right" style="border-top-style: solid; border-top-width: 1">&nbsp;</td>
    <td align="right" style="border-top-style: solid; border-top-width: 1">&nbsp;</td>
    <td align="right" style="border-top-style: solid; border-top-width: 1">&nbsp;</td>
    <td align="right" style="border-top-style: solid; border-top-width: 1">&nbsp;</td>
  </tr>
  <tr>
    <td><font SIZE="2">
    <p style="margin-left: 15">Basic weighted average number of common shares</font></td>
    <td align="right" nowrap width="6%">&nbsp;</td>
    <td align="right" nowrap width="6%">&nbsp;</td>
    <td align="right" nowrap width="6%">&nbsp;</td>
    <td align="right" nowrap width="6%">&nbsp;</td>
    <td align="right" nowrap width="6%">&nbsp;</td>
    <td align="right" nowrap width="6%">&nbsp;</td>
    <td align="right" nowrap width="6%">&nbsp;</td>
    <td align="right" nowrap width="6%">&nbsp;</td>
  </tr>
  <tr>
    <td style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2">
    <p style="margin-left: 15">&nbsp;&nbsp; outstanding</font></td>
    <td COLSPAN="2" align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2">120,492</font></td>
    <td COLSPAN="2" align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2">120,359</font></td>
    <td COLSPAN="2" align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2">120,462</font></td>
    <td align="right" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2">120,319</font></td>
  </tr>
  <tr>
    <td style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 2">
    <font SIZE="2">
    <p style="margin-left: 15">Basic earnings per share</font></td>
    <td align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 2">
    <font SIZE="2">$</font></td>
    <td align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 2">
    <font SIZE="2">0.45</font></td>
    <td align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 2">
    <font SIZE="2">$</font></td>
    <td align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 2">
    <font SIZE="2">0.44</font></td>
    <td align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 2">
    <font SIZE="2">$</font></td>
    <td align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 2">
    <font SIZE="2">1.02</font></td>
    <td align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 2">
    <font SIZE="2">$</font></td>
    <td align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 2">
    <font SIZE="2">0.74</font></td>
  </tr>
  <tr>
    <td><font SIZE="2">Diluted earnings per share:</font></td>
    <td align="right">&nbsp;</td>
    <td align="right">&nbsp;</td>
    <td align="right">&nbsp;</td>
    <td align="right">&nbsp;</td>
    <td align="right">&nbsp;</td>
    <td align="right">&nbsp;</td>
    <td align="right">&nbsp;</td>
    <td align="right">&nbsp;</td>
  </tr>
  <tr>
    <td><font SIZE="2">
    <p style="margin-left: 15">Basic weighted average number or common shares</font></td>
    <td align="right">&nbsp;</td>
    <td align="right">&nbsp;</td>
    <td align="right">&nbsp;</td>
    <td align="right">&nbsp;</td>
    <td align="right">&nbsp;</td>
    <td align="right">&nbsp;</td>
    <td align="right">&nbsp;</td>
    <td align="right">&nbsp;</td>
  </tr>
  <tr>
    <td><font SIZE="2">
    <p style="margin-left: 15">&nbsp;&nbsp; outstanding</font></td>
    <td COLSPAN="2" align="right"><font SIZE="2">120,492</font></td>
    <td COLSPAN="2" align="right"><font SIZE="2">120,359</font></td>
    <td COLSPAN="2" align="right"><font SIZE="2">120,462</font></td>
    <td align="right">&nbsp;</td>
    <td align="right"><font SIZE="2">120,319</font></td>
  </tr>
  <tr>
    <td style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2">
    <p style="margin-left: 15">Plus impact of stock options and Treasury RSUs</font></td>
    <td align="right" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2">1,130</font></td>
    <td align="right" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2">1,240</font></td>
    <td align="right" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2">1,181</font></td>
    <td align="right" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2">1,206</font></td>
  </tr>
  <tr>
    <td style="border-top-style: solid; border-top-width: 1">
    <font SIZE="2">
    <p style="margin-left: 15">Diluted weighted average number of common shares</font></td>
    <td align="right" style="border-top-style: solid; border-top-width: 1">&nbsp;</td>
    <td align="right" style="border-top-style: solid; border-top-width: 1">&nbsp;</td>
    <td align="right" style="border-top-style: solid; border-top-width: 1">&nbsp;</td>
    <td align="right" style="border-top-style: solid; border-top-width: 1">&nbsp;</td>
    <td align="right" style="border-top-style: solid; border-top-width: 1">&nbsp;</td>
    <td align="right" style="border-top-style: solid; border-top-width: 1">&nbsp;</td>
    <td align="right" style="border-top-style: solid; border-top-width: 1">&nbsp;</td>
    <td align="right" style="border-top-style: solid; border-top-width: 1">&nbsp;</td>
  </tr>
  <tr>
    <td style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2">
    <p style="margin-left: 15">&nbsp;&nbsp; outstanding</font></td>
    <td COLSPAN="2" align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2">121,622</font></td>
    <td COLSPAN="2" align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2">121,599</font></td>
    <td COLSPAN="2" align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2">121,643</font></td>
    <td align="right" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2">121,525</font></td>
  </tr>
  <tr>
    <td style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 2">
    <font SIZE="2">
    <p style="margin-left: 15">Diluted earnings per share</font></td>
    <td align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 2">
    <font SIZE="2">$</font></td>
    <td align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 2">
    <font SIZE="2">0.44</font></td>
    <td align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 2">
    <font SIZE="2">$</font></td>
    <td align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 2">
    <font SIZE="2">0.43</font></td>
    <td align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 2">
    <font SIZE="2">$</font></td>
    <td align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 2">
    <font SIZE="2">1.01</font></td>
    <td align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 2">
    <font SIZE="2">$</font></td>
    <td align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 2">
    <font SIZE="2">0.73</font></td>
  </tr>
</table>
<font SIZE="2">
<p ALIGN="JUSTIFY">Excluded from the above calculation for the three months
ended July 6, 2008 are 123,565 stock options, which were deemed to be
anti-dilutive because the exercise prices were greater than the average market
price of the common shares for the period. Excluded from the above calculation
for the nine months ended July 6, 2008 are 81,968 stock options, which were
deemed to be anti-dilutive because the exercise prices were greater than the
average market price of the common shares for the period. All stock options
outstanding for the three months ended December 30, 2007 and for fiscal 2007
were dilutive. </p>
<p align="center">16</p>
</font>
<hr color="#000000" SIZE="5"><p Style='page-break-before:always'>
<table border="0" cellpadding="0" cellspacing="0" style="border-collapse: collapse" bordercolor="#111111" width="100%" height="45">
  <tr>
    <td width="50%" height="26"><font size="2">
    <img border="0" src="gildan2.jpg" width="84" height="26"></font></td>
    <td width="50%" height="26">&nbsp;</td>
  </tr>
  <tr>
    <td width="50%" height="19">&nbsp;</td>
    <td width="50%" height="19"><font SIZE="2" color="#808080">
    <p align="right"><b>NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS</b></font></td>
  </tr>
</table>
<font SIZE="2"><b>
<p>9. Other information:</b> </p>
</font>
<table CELLSPACING="0" BORDER="0" WIDTH="100%" cellpadding="0" style="border-collapse: collapse" bordercolor="#111111">
  <tr>
    <td>&nbsp;</td>
    <td align="right" nowrap width="6%">&nbsp;</td>
    <td COLSPAN="3" align="center" nowrap width="6%"><font SIZE="2"><b>Three months
    ended</b></font></td>
    <td align="center" nowrap width="6%">&nbsp;</td>
    <td COLSPAN="3" align="center" nowrap width="6%"><font SIZE="2"><b>Nine months
    ended</b></font></td>
  </tr>
  <tr>
    <td><font SIZE="2">(a) The following items were included in
    depreciation</font></td>
    <td WIDTH="6%" align="right" nowrap>&nbsp;</td>
    <td WIDTH="6%" align="center" nowrap>
    <p align="right"><font SIZE="2">July 6,</font></td>
    <td WIDTH="6%" align="center" nowrap>&nbsp;</td>
    <td WIDTH="6%" align="center" nowrap>
    <p align="right"><font SIZE="2">July 1,</font></td>
    <td WIDTH="6%" align="center" nowrap>&nbsp;</td>
    <td WIDTH="6%" align="center" nowrap>
    <p align="right"><font SIZE="2">July 6,</font></td>
    <td WIDTH="6%" align="center" nowrap>&nbsp;</td>
    <td WIDTH="6%" align="center" nowrap>
    <p align="right"><font SIZE="2">July 1,</font></td>
  </tr>
  <tr>
    <td style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp; and amortization:</font></td>
    <td WIDTH="6%" align="right" style="border-bottom-style: solid; border-bottom-width: 1" nowrap>&nbsp;</td>
    <td WIDTH="6%" align="center" style="border-bottom-style: solid; border-bottom-width: 1" nowrap>
    <p align="right">
    <font SIZE="2">2008</font></td>
    <td align="center" style="border-bottom-style: solid; border-bottom-width: 1" nowrap width="6%">&nbsp;</td>
    <td align="center" style="border-bottom-style: solid; border-bottom-width: 1" nowrap width="6%">
    <p align="right">
    <font SIZE="2">2007</font></td>
    <td align="center" style="border-bottom-style: solid; border-bottom-width: 1" nowrap width="6%">&nbsp;</td>
    <td align="center" style="border-bottom-style: solid; border-bottom-width: 1" nowrap width="6%">
    <p align="right">
    <font SIZE="2">2008</font></td>
    <td align="center" style="border-bottom-style: solid; border-bottom-width: 1" nowrap width="6%">&nbsp;</td>
    <td align="center" style="border-bottom-style: solid; border-bottom-width: 1" nowrap width="6%">
    <p align="right">
    <font SIZE="2">2007</font></td>
  </tr>
  <tr>
    <td style="border-top-style: solid; border-top-width: 1">
    <font SIZE="2">Depreciation of property, plant and equipment</font></td>
    <td align="right" style="border-top-style: solid; border-top-width: 1" width="6%">
    <font SIZE="2">$</font></td>
    <td align="right" style="border-top-style: solid; border-top-width: 1" width="6%">
    <font SIZE="2">13,155</font></td>
    <td align="right" style="border-top-style: solid; border-top-width: 1" width="6%">
    <font SIZE="2">$</font></td>
    <td align="right" style="border-top-style: solid; border-top-width: 1" width="6%">
    <font SIZE="2">9,612</font></td>
    <td align="right" style="border-top-style: solid; border-top-width: 1" width="6%">
    <font SIZE="2">$</font></td>
    <td align="right" style="border-top-style: solid; border-top-width: 1" width="6%">
    <font SIZE="2">38,673</font></td>
    <td align="right" style="border-top-style: solid; border-top-width: 1" width="6%">
    <font SIZE="2">$</font></td>
    <td align="right" style="border-top-style: solid; border-top-width: 1" width="6%">
    <font SIZE="2">26,791</font></td>
  </tr>
  <tr>
    <td><font SIZE="2">Impairment loss and writedown of property,
    plant</font></td>
    <td align="right" width="6%">&nbsp;</td>
    <td align="right" width="6%">&nbsp;</td>
    <td align="right" width="6%">&nbsp;</td>
    <td align="right" width="6%">&nbsp;</td>
    <td align="right" width="6%">&nbsp;</td>
    <td align="right" width="6%">&nbsp;</td>
    <td align="right" width="6%">&nbsp;</td>
    <td align="right" width="6%">&nbsp;</td>
  </tr>
  <tr>
    <td><font SIZE="2">&nbsp;&nbsp; and equipment</font></td>
    <td align="right" width="6%">&nbsp;</td>
    <td align="right" width="6%"><font SIZE="2">700</font></td>
    <td align="right" width="6%">&nbsp;</td>
    <td align="right" width="6%"><font SIZE="2">-</font></td>
    <td align="right" width="6%">&nbsp;</td>
    <td align="right" width="6%"><font SIZE="2">700</font></td>
    <td align="right" width="6%">&nbsp;</td>
    <td align="right" width="6%"><font SIZE="2">-</font></td>
  </tr>
  <tr>
    <td><font SIZE="2">Amortization expense of deferred start-up
    costs and other</font></td>
    <td align="right" width="6%">&nbsp;</td>
    <td align="right" width="6%"><font SIZE="2">454</font></td>
    <td align="right" width="6%">&nbsp;</td>
    <td align="right" width="6%"><font SIZE="2">499</font></td>
    <td align="right" width="6%">&nbsp;</td>
    <td align="right" width="6%"><font SIZE="2">1,385</font></td>
    <td align="right" width="6%">&nbsp;</td>
    <td align="right" width="6%"><font SIZE="2">1,247</font></td>
  </tr>
  <tr>
    <td style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2">Amortization expense of intangible assets</font></td>
    <td align="right" style="border-bottom-style: solid; border-bottom-width: 1" width="6%">&nbsp;</td>
    <td align="right" style="border-bottom-style: solid; border-bottom-width: 1" width="6%">
    <font SIZE="2">1,017</font></td>
    <td align="right" style="border-bottom-style: solid; border-bottom-width: 1" width="6%">&nbsp;</td>
    <td align="right" style="border-bottom-style: solid; border-bottom-width: 1" width="6%">
    <font SIZE="2">161</font></td>
    <td align="right" style="border-bottom-style: solid; border-bottom-width: 1" width="6%">&nbsp;</td>
    <td align="right" style="border-bottom-style: solid; border-bottom-width: 1" width="6%">
    <font SIZE="2">2,491</font></td>
    <td align="right" style="border-bottom-style: solid; border-bottom-width: 1" width="6%">&nbsp;</td>
    <td align="right" style="border-bottom-style: solid; border-bottom-width: 1" width="6%">
    <font SIZE="2">483</font></td>
  </tr>
  <tr>
    <td style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 2">&nbsp;</td>
    <td align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 2" width="6%">
    <font SIZE="2">$</font></td>
    <td align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 2" width="6%">
    <font SIZE="2">15,326</font></td>
    <td align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 2" width="6%">
    <font SIZE="2">$</font></td>
    <td align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 2" width="6%">
    <font SIZE="2">10,272</font></td>
    <td align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 2" width="6%">
    <font SIZE="2">$</font></td>
    <td align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 2" width="6%">
    <font SIZE="2">43,249</font></td>
    <td align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 2" width="6%">
    <font SIZE="2">$</font></td>
    <td align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 2" width="6%">
    <font SIZE="2">28,521</font></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td align="right" width="6%">&nbsp;</td>
    <td align="right" width="6%">&nbsp;</td>
    <td align="right" width="6%">&nbsp;</td>
    <td align="right" width="6%">&nbsp;</td>
    <td align="right" width="6%">&nbsp;</td>
    <td align="right" width="6%">&nbsp;</td>
    <td align="right" width="6%">&nbsp;</td>
    <td align="right" width="6%">&nbsp;</td>
  </tr>
  <tr>
    <td style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2">(b) Cash paid during the period for:</font></td>
    <td align="right" style="border-bottom-style: solid; border-bottom-width: 1" width="6%">&nbsp;</td>
    <td align="right" style="border-bottom-style: solid; border-bottom-width: 1" width="6%">&nbsp;</td>
    <td align="right" style="border-bottom-style: solid; border-bottom-width: 1" width="6%">&nbsp;</td>
    <td align="right" style="border-bottom-style: solid; border-bottom-width: 1" width="6%">&nbsp;</td>
    <td align="right" style="border-bottom-style: solid; border-bottom-width: 1" width="6%">&nbsp;</td>
    <td align="right" style="border-bottom-style: solid; border-bottom-width: 1" width="6%">&nbsp;</td>
    <td align="right" style="border-bottom-style: solid; border-bottom-width: 1" width="6%">&nbsp;</td>
    <td align="right" style="border-bottom-style: solid; border-bottom-width: 1" width="6%">&nbsp;</td>
  </tr>
  <tr>
    <td style="border-top-style: solid; border-top-width: 1">
    <font SIZE="2">Interest</font></td>
    <td align="right" style="border-top-style: solid; border-top-width: 1" width="6%">
    <font SIZE="2">$</font></td>
    <td align="right" style="border-top-style: solid; border-top-width: 1" width="6%">
    <font SIZE="2">1,459</font></td>
    <td align="right" style="border-top-style: solid; border-top-width: 1" width="6%">
    <font SIZE="2">$</font></td>
    <td align="right" style="border-top-style: solid; border-top-width: 1" width="6%">
    <font SIZE="2">1,842</font></td>
    <td align="right" style="border-top-style: solid; border-top-width: 1" width="6%">
    <font SIZE="2">$</font></td>
    <td align="right" style="border-top-style: solid; border-top-width: 1" width="6%">
    <font SIZE="2">6,515</font></td>
    <td align="right" style="border-top-style: solid; border-top-width: 1" width="6%">
    <font SIZE="2">$</font></td>
    <td align="right" style="border-top-style: solid; border-top-width: 1" width="6%">
    <font SIZE="2">4,065</font></td>
  </tr>
  <tr>
    <td style="border-bottom: 2px solid #000000"><font SIZE="2">
    Income taxes</font></td>
    <td align="right" style="border-bottom: 2px solid #000000" width="6%">&nbsp;</td>
    <td align="right" style="border-bottom: 2px solid #000000" width="6%">
    <font SIZE="2">461</font></td>
    <td align="right" style="border-bottom: 2px solid #000000" width="6%">&nbsp;</td>
    <td align="right" style="border-bottom: 2px solid #000000" width="6%">
    <font SIZE="2">482</font></td>
    <td align="right" style="border-bottom: 2px solid #000000" width="6%">&nbsp;</td>
    <td align="right" style="border-bottom: 2px solid #000000" width="6%">
    <font SIZE="2">2,799</font></td>
    <td align="right" style="border-bottom: 2px solid #000000" width="6%">&nbsp;</td>
    <td align="right" style="border-bottom: 2px solid #000000" width="6%">
    <font SIZE="2">3,798</font></td>
  </tr>
</table>
<p>&nbsp;</p>
<table CELLSPACING="0" BORDER="0" WIDTH="100%" cellpadding="0" style="border-collapse: collapse" bordercolor="#111111">
  <tr>
    <td>&nbsp;</td>
    <td align="center" nowrap width="6%">&nbsp;</td>
    <td align="center" nowrap width="6%">
    <p align="right"><font SIZE="2"><u>July 6, 2008</u></font></td>
    <td COLSPAN="2" align="center" nowrap width="6%">
    <p style="margin-left: 15" align="right"><font SIZE="2"><u>September 30,
    2007</u></font></td>
    <td align="center" nowrap width="6%">&nbsp;</td>
    <td align="center" nowrap width="6%">
    <p align="right"><font SIZE="2"><u>July 1, 2007</u></font></td>
  </tr>
  <tr>
    <td style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2">(c) Non-cash transactions as at:</font></td>
    <td align="center" style="border-bottom-style: solid; border-bottom-width: 1" nowrap width="6%">&nbsp;</td>
    <td align="center" style="border-bottom-style: solid; border-bottom-width: 1" nowrap width="6%">&nbsp;</td>
    <td align="center" style="border-bottom-style: solid; border-bottom-width: 1" nowrap width="6%">&nbsp;</td>
    <td align="center" style="border-bottom-style: solid; border-bottom-width: 1" nowrap width="6%">
    <p align="right">
    <font SIZE="2">(audited)</font></td>
    <td align="center" style="border-bottom-style: solid; border-bottom-width: 1" nowrap width="6%">&nbsp;</td>
    <td align="center" style="border-bottom-style: solid; border-bottom-width: 1" nowrap width="6%">&nbsp;</td>
  </tr>
  <tr>
    <td style="border-top-style: solid; border-top-width: 1">
    <font SIZE="2">Additions to property, plant and equipment</font></td>
    <td align="right" style="border-top-style: solid; border-top-width: 1" width="6%">&nbsp;</td>
    <td align="right" style="border-top-style: solid; border-top-width: 1" width="6%">&nbsp;</td>
    <td align="right" style="border-top-style: solid; border-top-width: 1" width="6%">&nbsp;</td>
    <td align="right" style="border-top-style: solid; border-top-width: 1" width="6%">&nbsp;</td>
    <td align="right" style="border-top-style: solid; border-top-width: 1" width="6%">&nbsp;</td>
    <td align="right" style="border-top-style: solid; border-top-width: 1" width="6%">&nbsp;</td>
  </tr>
  <tr>
    <td><font SIZE="2">&nbsp;&nbsp; included in accounts payable and
    accrued liabilities</font></td>
    <td align="right" width="6%"><font SIZE="2">$</font></td>
    <td align="right" width="6%"><font SIZE="2">500</font></td>
    <td align="right" width="6%"><font SIZE="2">$</font></td>
    <td align="right" width="6%"><font SIZE="2">2,566</font></td>
    <td align="right" width="6%"><font SIZE="2">$</font></td>
    <td align="right" width="6%"><font SIZE="2">2,652</font></td>
  </tr>
  <tr>
    <td><font SIZE="2">Ascribed value credited to share capital from</font></td>
    <td WIDTH="6%" align="right">&nbsp;</td>
    <td WIDTH="6%" align="right">&nbsp;</td>
    <td WIDTH="6%" align="right">&nbsp;</td>
    <td WIDTH="6%" align="right">&nbsp;</td>
    <td WIDTH="6%" align="right">&nbsp;</td>
    <td WIDTH="6%" align="right">&nbsp;</td>
  </tr>
  <tr>
    <td><font SIZE="2">&nbsp;&nbsp; issuance of Treasury RSUs</font></td>
    <td WIDTH="6%" align="right">&nbsp;</td>
    <td WIDTH="6%" align="right"><font SIZE="2">126</font></td>
    <td align="right" width="6%">&nbsp;</td>
    <td align="right" width="6%"><font SIZE="2">226</font></td>
    <td align="right" width="6%">&nbsp;</td>
    <td align="right" width="6%"><font SIZE="2">153</font></td>
  </tr>
  <tr>
    <td><font SIZE="2">Reversal of valuation allowance on acquired</font></td>
    <td align="right" width="6%">&nbsp;</td>
    <td align="right" width="6%">&nbsp;</td>
    <td align="right" width="6%">&nbsp;</td>
    <td align="right" width="6%">&nbsp;</td>
    <td align="right" width="6%">&nbsp;</td>
    <td align="right" width="6%">&nbsp;</td>
  </tr>
  <tr>
    <td><font SIZE="2">&nbsp;&nbsp; future income tax assets
    credited to intangible</font></td>
    <td align="right" width="6%">&nbsp;</td>
    <td align="right" width="6%">&nbsp;</td>
    <td align="right" width="6%">&nbsp;</td>
    <td align="right" width="6%">&nbsp;</td>
    <td align="right" width="6%">&nbsp;</td>
    <td align="right" width="6%">&nbsp;</td>
  </tr>
  <tr>
    <td><font SIZE="2">&nbsp;&nbsp; assets</font></td>
    <td align="right" width="6%">&nbsp;</td>
    <td align="right" width="6%"><font SIZE="2">-</font></td>
    <td align="right" width="6%">&nbsp;</td>
    <td align="right" width="6%"><font SIZE="2">7,340</font></td>
    <td align="right" width="6%">&nbsp;</td>
    <td align="right" width="6%"><font SIZE="2">-</font></td>
  </tr>
  <tr>
    <td><font SIZE="2">Proceeds on disposal of long-lived assets in</font></td>
    <td align="right" width="6%">&nbsp;</td>
    <td align="right" width="6%">&nbsp;</td>
    <td align="right" width="6%">&nbsp;</td>
    <td align="right" width="6%">&nbsp;</td>
    <td align="right" width="6%">&nbsp;</td>
    <td align="right" width="6%">&nbsp;</td>
  </tr>
  <tr>
    <td><font SIZE="2">&nbsp;&nbsp; other assets</font></td>
    <td align="right" width="6%">&nbsp;</td>
    <td align="right" width="6%"><font SIZE="2">1,477</font></td>
    <td align="right" width="6%">&nbsp;</td>
    <td align="right" width="6%"><font SIZE="2">1,855</font></td>
    <td align="right" width="6%">&nbsp;</td>
    <td align="right" width="6%"><font SIZE="2">1,943</font></td>
  </tr>
  <tr>
    <td><font SIZE="2">Proceeds on disposal of long-lived assets in
    accounts</font></td>
    <td align="right" width="6%">&nbsp;</td>
    <td align="right" width="6%">&nbsp;</td>
    <td align="right" width="6%">&nbsp;</td>
    <td align="right" width="6%">&nbsp;</td>
    <td align="right" width="6%">&nbsp;</td>
    <td align="right" width="6%">&nbsp;</td>
  </tr>
  <tr>
    <td style="border-bottom: 2px solid #000000"><font SIZE="2">&nbsp;&nbsp;
    receivable</font></td>
    <td align="right" style="border-bottom: 2px solid #000000" width="6%">&nbsp;</td>
    <td align="right" style="border-bottom: 2px solid #000000" width="6%">
    <font SIZE="2">1,380</font></td>
    <td align="right" style="border-bottom: 2px solid #000000" width="6%">&nbsp;</td>
    <td align="right" style="border-bottom: 2px solid #000000" width="6%">
    <font SIZE="2">1,050</font></td>
    <td align="right" style="border-bottom: 2px solid #000000" width="6%">&nbsp;</td>
    <td align="right" style="border-bottom: 2px solid #000000" width="6%">
    <font SIZE="2">-</font></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td align="right" width="6%">&nbsp;</td>
    <td align="right" width="6%">&nbsp;</td>
    <td align="right" width="6%">&nbsp;</td>
    <td align="right" width="6%">&nbsp;</td>
    <td align="right" width="6%">&nbsp;</td>
    <td align="right" width="6%">&nbsp;</td>
  </tr>
  <tr>
    <td style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2">(d) Cash and cash equivalents consist of:</font></td>
    <td align="right" style="border-bottom-style: solid; border-bottom-width: 1" width="6%">&nbsp;</td>
    <td align="right" style="border-bottom-style: solid; border-bottom-width: 1" width="6%">&nbsp;</td>
    <td align="right" style="border-bottom-style: solid; border-bottom-width: 1" width="6%">&nbsp;</td>
    <td align="right" style="border-bottom-style: solid; border-bottom-width: 1" width="6%">&nbsp;</td>
    <td align="right" style="border-bottom-style: solid; border-bottom-width: 1" width="6%">&nbsp;</td>
    <td align="right" style="border-bottom-style: solid; border-bottom-width: 1" width="6%">&nbsp;</td>
  </tr>
  <tr>
    <td style="border-top-style: solid; border-top-width: 1">
    <font SIZE="2">Cash balances with banks</font></td>
    <td align="right" style="border-top-style: solid; border-top-width: 1" width="6%">
    <font SIZE="2">$</font></td>
    <td align="right" style="border-top-style: solid; border-top-width: 1" width="6%">
    <font SIZE="2">10,237</font></td>
    <td align="right" style="border-top-style: solid; border-top-width: 1" width="6%">
    <font SIZE="2">$</font></td>
    <td align="right" style="border-top-style: solid; border-top-width: 1" width="6%">
    <font SIZE="2">9,250</font></td>
    <td align="right" style="border-top-style: solid; border-top-width: 1" width="6%">
    <font SIZE="2">$</font></td>
    <td align="right" style="border-top-style: solid; border-top-width: 1" width="6%">
    <font SIZE="2">7,537</font></td>
  </tr>
  <tr>
    <td style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2">Short-term investments</font></td>
    <td align="right" style="border-bottom-style: solid; border-bottom-width: 1" width="6%">&nbsp;</td>
    <td align="right" style="border-bottom-style: solid; border-bottom-width: 1" width="6%">
    <font SIZE="2">2,958</font></td>
    <td align="right" style="border-bottom-style: solid; border-bottom-width: 1" width="6%">&nbsp;</td>
    <td align="right" style="border-bottom-style: solid; border-bottom-width: 1" width="6%">
    <font SIZE="2">-</font></td>
    <td align="right" style="border-bottom-style: solid; border-bottom-width: 1" width="6%">&nbsp;</td>
    <td align="right" style="border-bottom-style: solid; border-bottom-width: 1" width="6%">
    <font SIZE="2">-</font></td>
  </tr>
  <tr>
    <td style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1" width="6%">
    <font SIZE="2">$</font></td>
    <td align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1" width="6%">
    <font SIZE="2">13,195</font></td>
    <td align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1" width="6%">
    <font SIZE="2">$</font></td>
    <td align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1" width="6%">
    <font SIZE="2">9,250</font></td>
    <td align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1" width="6%">
    <font SIZE="2">$</font></td>
    <td align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1" width="6%">
    <font SIZE="2">7,537</font></td>
  </tr>
</table>
<font size="2"><b>
<p>10. Financial instruments: </p>
</b></font>
<p ALIGN="JUSTIFY"><font size="2">In the first quarter of fiscal 2008, the
Company adopted the requirements of the CICA Handbook Section 3862, &quot;Financial
Instruments Disclosures&quot;, which apply to fiscal years beginning on or after
October 1, 2007. This new Handbook Section requires disclosures to enable users
to evaluate the significance of financial instruments for the entity's financial
position and performance, and the nature and extent of an entity's exposure to
risks arising from financial instruments, including how the entity manages those
risks. </font></p>
<p ALIGN="JUSTIFY"><font size="2">Disclosures relating to exposure to risks, in
particular credit risk, liquidity risk, foreign currency risk and interest rate
risk, are included in the section entitled &quot;Financial Risk Management&quot; of the
Management's Discussion and Analysis of the Company's operations, performance
and financial condition as at and for the three months and nine months ended
July 6, 2008, which is included in the <i>Gildan Q3 2008 Quarterly Report to
Shareholders </i>along with these interim consolidated financial statements.
Accordingly, these disclosures are incorporated into these interim consolidated
financial statements by cross-reference. </font></p>
<p align="center"><font size="2">17</font></p>
<hr color="#000000" SIZE="5"><p Style='page-break-before:always'>
<table border="0" cellpadding="0" cellspacing="0" style="border-collapse: collapse" bordercolor="#111111" width="100%" height="45">
  <tr>
    <td width="50%" height="26"><font size="2">
    <img border="0" src="gildan2.jpg" width="84" height="26"></font></td>
    <td width="50%" height="26">&nbsp;</td>
  </tr>
  <tr>
    <td width="50%" height="19">&nbsp;</td>
    <td width="50%" height="19"><font SIZE="2" color="#808080">
    <p align="right"><b>NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS</b></font></td>
  </tr>
</table>
<font SIZE="2"><b>
<p>10. Financial instruments (continued): </p>
</b>
<p>(a) Financial instruments &#150; carrying values and fair values: </p>
<p>The fair values of financial assets and liabilities, together with the
carrying amounts included in the consolidated balance sheets, are as follows:
</p>
</font>
<table CELLSPACING="0" BORDER="0" WIDTH="100%" cellpadding="0" style="border-collapse: collapse" bordercolor="#111111">
  <tr>
    <td>&nbsp;</td>
    <td align="right" nowrap width="6%">&nbsp;</td>
    <td align="center" colspan="3" nowrap width="6%"><font SIZE="2"><u>July 6, 2008</u></font></td>
    <td align="center" nowrap width="6%">&nbsp;</td>
    <td COLSPAN="3" align="center" nowrap width="6%"><font SIZE="2"><u>September 30,
    2007</u></font></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td align="right" nowrap width="6%">&nbsp;</td>
    <td align="center" nowrap width="6%">
    <p align="right"><font SIZE="2">Carrying</font></td>
    <td align="center" nowrap width="6%">&nbsp;</td>
    <td align="center" nowrap width="6%">
    <p align="right"><font SIZE="2">Fair</font></td>
    <td COLSPAN="2" align="center" nowrap width="6%">
    <p align="right"><font SIZE="2">Carrying</font></td>
    <td align="center" nowrap width="6%">&nbsp;</td>
    <td align="center" nowrap width="6%">
    <p align="right"><font SIZE="2">Fair</font></td>
  </tr>
  <tr>
    <td style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td align="right" style="border-bottom-style: solid; border-bottom-width: 1" nowrap width="6%">&nbsp;</td>
    <td align="center" style="border-bottom-style: solid; border-bottom-width: 1" nowrap width="6%">
    <p align="right">
    <font SIZE="2">amount</font></td>
    <td align="center" style="border-bottom-style: solid; border-bottom-width: 1" nowrap width="6%">&nbsp;</td>
    <td align="center" style="border-bottom-style: solid; border-bottom-width: 1" nowrap width="6%">
    <p align="right">
    <font SIZE="2">value</font></td>
    <td COLSPAN="2" align="center" style="border-bottom-style: solid; border-bottom-width: 1" nowrap width="6%">
    <p align="right">
    <font SIZE="2">amount</font></td>
    <td align="center" style="border-bottom-style: solid; border-bottom-width: 1" nowrap width="6%">&nbsp;</td>
    <td align="center" style="border-bottom-style: solid; border-bottom-width: 1" nowrap width="6%">
    <p align="right">
    <font SIZE="2">value</font></td>
  </tr>
  <tr>
    <td style="border-top-style: solid; border-top-width: 1">
    <font SIZE="2"><u>Financial assets</u></font></td>
    <td align="right" style="border-top-style: solid; border-top-width: 1" width="6%">&nbsp;</td>
    <td align="right" style="border-top-style: solid; border-top-width: 1" width="6%">&nbsp;</td>
    <td align="right" style="border-top-style: solid; border-top-width: 1" width="6%">&nbsp;</td>
    <td align="right" style="border-top-style: solid; border-top-width: 1" width="6%">&nbsp;</td>
    <td align="right" style="border-top-style: solid; border-top-width: 1" width="6%">&nbsp;</td>
    <td align="right" style="border-top-style: solid; border-top-width: 1" width="6%">&nbsp;</td>
    <td align="right" style="border-top-style: solid; border-top-width: 1" width="6%">&nbsp;</td>
    <td align="right" style="border-top-style: solid; border-top-width: 1" width="6%">&nbsp;</td>
  </tr>
  <tr>
    <td><font SIZE="2">Available-for-sale financial assets:</font></td>
    <td WIDTH="6%" align="right">&nbsp;</td>
    <td WIDTH="6%" align="right">&nbsp;</td>
    <td WIDTH="6%" align="right">&nbsp;</td>
    <td WIDTH="6%" align="right">&nbsp;</td>
    <td WIDTH="6%" align="right">&nbsp;</td>
    <td WIDTH="6%" align="right">&nbsp;</td>
    <td WIDTH="6%" align="right">&nbsp;</td>
    <td WIDTH="6%" align="right">&nbsp;</td>
  </tr>
  <tr>
    <td><font SIZE="2">
    <p style="margin-left: 15">Cash and cash equivalents</font></td>
    <td WIDTH="6%" align="right"><font SIZE="2">$</font></td>
    <td WIDTH="6%" align="right"><font SIZE="2">&nbsp;13,195</font></td>
    <td align="right" width="6%"><font SIZE="2">$</font></td>
    <td align="right" width="6%"><font SIZE="2">&nbsp;13,195</font></td>
    <td align="right" width="6%"><font SIZE="2">$</font></td>
    <td align="right" width="6%"><font SIZE="2">9,250</font></td>
    <td align="right" width="6%"><font SIZE="2">$</font></td>
    <td align="right" width="6%"><font SIZE="2">9,250</font></td>
  </tr>
  <tr>
    <td><font SIZE="2">Loans and receivables:</font></td>
    <td align="right" width="6%">&nbsp;</td>
    <td align="right" width="6%">&nbsp;</td>
    <td align="right" width="6%">&nbsp;</td>
    <td align="right" width="6%">&nbsp;</td>
    <td align="right" width="6%">&nbsp;</td>
    <td align="right" width="6%">&nbsp;</td>
    <td align="right" width="6%">&nbsp;</td>
    <td align="right" width="6%">&nbsp;</td>
  </tr>
  <tr>
    <td><font SIZE="2">
    <p style="margin-left: 15">Accounts receivable - trade</font></td>
    <td align="right" width="6%">&nbsp;</td>
    <td align="right" width="6%"><font SIZE="2">236,912</font></td>
    <td align="right" width="6%">&nbsp;</td>
    <td align="right" width="6%"><font SIZE="2">236,912</font></td>
    <td COLSPAN="2" align="right" width="6%"><font SIZE="2">189,070</font></td>
    <td align="right" width="6%">&nbsp;</td>
    <td align="right" width="6%"><font SIZE="2">189,070</font></td>
  </tr>
  <tr>
    <td><font SIZE="2">
    <p style="margin-left: 15">Accounts receivable - other</font></td>
    <td align="right" width="6%">&nbsp;</td>
    <td align="right" width="6%"><font SIZE="2">17,599</font></td>
    <td align="right" width="6%">&nbsp;</td>
    <td align="right" width="6%"><font SIZE="2">17,599</font></td>
    <td align="right" width="6%">&nbsp;</td>
    <td align="right" width="6%"><font SIZE="2">17,018</font></td>
    <td align="right" width="6%">&nbsp;</td>
    <td align="right" width="6%"><font SIZE="2">17,018</font></td>
  </tr>
  <tr>
    <td><font SIZE="2">
    <p style="margin-left: 15">Long-term receivable included in other assets</font></td>
    <td align="right" width="6%">&nbsp;</td>
    <td align="right" width="6%"><font SIZE="2">1,477</font></td>
    <td align="right" width="6%">&nbsp;</td>
    <td align="right" width="6%"><font SIZE="2">1,477</font></td>
    <td align="right" width="6%">&nbsp;</td>
    <td align="right" width="6%"><font SIZE="2">1,855</font></td>
    <td align="right" width="6%">&nbsp;</td>
    <td align="right" width="6%"><font SIZE="2">1,855</font></td>
  </tr>
  <tr>
    <td><font SIZE="2">
    <p style="margin-left: 15">Restricted cash related to Prewett acquisition</font></td>
    <td align="right" width="6%">&nbsp;</td>
    <td align="right" width="6%">&nbsp;</td>
    <td align="right" width="6%">&nbsp;</td>
    <td align="right" width="6%">&nbsp;</td>
    <td align="right" width="6%">&nbsp;</td>
    <td align="right" width="6%">&nbsp;</td>
    <td align="right" width="6%">&nbsp;</td>
    <td align="right" width="6%">&nbsp;</td>
  </tr>
  <tr>
    <td><font SIZE="2">
    <p style="margin-left: 15">&nbsp;&nbsp; included in other assets</font></td>
    <td align="right" width="6%">&nbsp;</td>
    <td align="right" width="6%"><font SIZE="2">10,000</font></td>
    <td align="right" width="6%">&nbsp;</td>
    <td align="right" width="6%"><font SIZE="2">10,000</font></td>
    <td align="right" width="6%">&nbsp;</td>
    <td align="right" width="6%"><font SIZE="2">-</font></td>
    <td align="right" width="6%">&nbsp;</td>
    <td align="right" width="6%"><font SIZE="2">-</font></td>
  </tr>
  <tr>
    <td><font SIZE="2">Forward foreign exchange contracts</font></td>
    <td align="right" width="6%">&nbsp;</td>
    <td align="right" width="6%"><font SIZE="2">123</font></td>
    <td align="right" width="6%">&nbsp;</td>
    <td align="right" width="6%"><font SIZE="2">123</font></td>
    <td align="right" width="6%">&nbsp;</td>
    <td align="right" width="6%"><font SIZE="2">293</font></td>
    <td align="right" width="6%">&nbsp;</td>
    <td align="right" width="6%"><font SIZE="2">293</font></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td align="right" width="6%">&nbsp;</td>
    <td align="right" width="6%">&nbsp;</td>
    <td align="right" width="6%">&nbsp;</td>
    <td align="right" width="6%">&nbsp;</td>
    <td align="right" width="6%">&nbsp;</td>
    <td align="right" width="6%">&nbsp;</td>
    <td align="right" width="6%">&nbsp;</td>
    <td align="right" width="6%">&nbsp;</td>
  </tr>
  <tr>
    <td><font SIZE="2"><u>Financial liabilities</u></font></td>
    <td align="right" width="6%">&nbsp;</td>
    <td align="right" width="6%">&nbsp;</td>
    <td align="right" width="6%">&nbsp;</td>
    <td align="right" width="6%">&nbsp;</td>
    <td align="right" width="6%">&nbsp;</td>
    <td align="right" width="6%">&nbsp;</td>
    <td align="right" width="6%">&nbsp;</td>
    <td align="right" width="6%">&nbsp;</td>
  </tr>
  <tr>
    <td><font SIZE="2">Other financial liabilities:</font></td>
    <td align="right" width="6%">&nbsp;</td>
    <td align="right" width="6%">&nbsp;</td>
    <td align="right" width="6%">&nbsp;</td>
    <td align="right" width="6%">&nbsp;</td>
    <td align="right" width="6%">&nbsp;</td>
    <td align="right" width="6%">&nbsp;</td>
    <td align="right" width="6%">&nbsp;</td>
    <td align="right" width="6%">&nbsp;</td>
  </tr>
  <tr>
    <td><font SIZE="2">
    <p style="margin-left: 15">Accounts payable and accrued liabilities</font></td>
    <td align="right" width="6%">&nbsp;</td>
    <td align="right" width="6%"><font SIZE="2">147,428</font></td>
    <td align="right" width="6%">&nbsp;</td>
    <td align="right" width="6%"><font SIZE="2">147,428</font></td>
    <td COLSPAN="2" align="right" width="6%"><font SIZE="2">115,596</font></td>
    <td align="right" width="6%">&nbsp;</td>
    <td align="right" width="6%"><font SIZE="2">115,596</font></td>
  </tr>
  <tr>
    <td><font SIZE="2">
    <p style="margin-left: 15">Long-term debt - bearing interest at variable
    rates:</font></td>
    <td align="right" width="6%">&nbsp;</td>
    <td align="right" width="6%">&nbsp;</td>
    <td align="right" width="6%">&nbsp;</td>
    <td align="right" width="6%">&nbsp;</td>
    <td align="right" width="6%">&nbsp;</td>
    <td align="right" width="6%">&nbsp;</td>
    <td align="right" width="6%">&nbsp;</td>
    <td align="right" width="6%">&nbsp;</td>
  </tr>
  <tr>
    <td><font SIZE="2">
    <p style="margin-left: 30">Revolving long-term credit facility</font></td>
    <td align="right" width="6%">&nbsp;</td>
    <td align="right" width="6%"><font SIZE="2">100,000</font></td>
    <td align="right" width="6%">&nbsp;</td>
    <td align="right" width="6%"><font SIZE="2">100,000</font></td>
    <td align="right" width="6%">&nbsp;</td>
    <td align="right" width="6%"><font SIZE="2">49,000</font></td>
    <td align="right" width="6%">&nbsp;</td>
    <td align="right" width="6%"><font SIZE="2">49,000</font></td>
  </tr>
  <tr>
    <td><font SIZE="2">
    <p style="margin-left: 30">Other long-term debt</font></td>
    <td align="right" width="6%">&nbsp;</td>
    <td align="right" width="6%"><font SIZE="2">6,727</font></td>
    <td align="right" width="6%">&nbsp;</td>
    <td align="right" width="6%"><font SIZE="2">6,727</font></td>
    <td align="right" width="6%">&nbsp;</td>
    <td align="right" width="6%"><font SIZE="2">8,803</font></td>
    <td align="right" width="6%">&nbsp;</td>
    <td align="right" width="6%"><font SIZE="2">8,803</font></td>
  </tr>
  <tr>
    <td><font SIZE="2">
    <p style="margin-left: 15">Long-term debt - bearing interest at fixed rates</font></td>
    <td align="right" width="6%">&nbsp;</td>
    <td align="right" width="6%"><font SIZE="2">1,712</font></td>
    <td align="right" width="6%">&nbsp;</td>
    <td align="right" width="6%"><font SIZE="2">1,712</font></td>
    <td align="right" width="6%">&nbsp;</td>
    <td align="right" width="6%"><font SIZE="2">1,857</font></td>
    <td align="right" width="6%">&nbsp;</td>
    <td align="right" width="6%"><font SIZE="2">1,857</font></td>
  </tr>
  <tr>
    <td style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2">Forward foreign exchange contracts</font></td>
    <td align="right" style="border-bottom-style: solid; border-bottom-width: 1" width="6%">&nbsp;</td>
    <td align="right" style="border-bottom-style: solid; border-bottom-width: 1" width="6%">
    <font SIZE="2">2,058</font></td>
    <td align="right" style="border-bottom-style: solid; border-bottom-width: 1" width="6%">&nbsp;</td>
    <td align="right" style="border-bottom-style: solid; border-bottom-width: 1" width="6%">
    <font SIZE="2">2,058</font></td>
    <td align="right" style="border-bottom-style: solid; border-bottom-width: 1" width="6%">&nbsp;</td>
    <td align="right" style="border-bottom-style: solid; border-bottom-width: 1" width="6%">
    <font SIZE="2">1,087</font></td>
    <td align="right" style="border-bottom-style: solid; border-bottom-width: 1" width="6%">&nbsp;</td>
    <td align="right" style="border-bottom-style: solid; border-bottom-width: 1" width="6%">
    <font SIZE="2">1,087</font></td>
  </tr>
</table>
<font SIZE="2">
<p ALIGN="JUSTIFY">The Company has determined that the fair value of its
short-term financial assets and liabilities approximates their respective
carrying amounts as at the balance sheet dates because of the short-term
maturity of those instruments. The fair values of the long-term receivable and
the restricted cash related to the acquisition of Prewett, and the Company's
interest-bearing financial liabilities also approximate their respective
carrying amounts. The fair value of forward foreign exchange contracts was
determined using quoted market values. </p>
<p>(b) Financial income and expense: </p>
<p>The following components of income and expense relating to financial
instruments are included in the consolidated statement of earnings: </p>
<p>(i) Interest income and expense: </p>
</font>
<table CELLSPACING="0" BORDER="0" WIDTH="100%" cellpadding="0" style="border-collapse: collapse" bordercolor="#111111">
  <tr>
    <td>&nbsp;</td>
    <td align="center" nowrap width="2%">&nbsp;</td>
    <td COLSPAN="3" align="center" nowrap width="4%"><font SIZE="2"><b>Three months ended</b></font></td>
    <td align="center" nowrap width="6%">&nbsp;</td>
    <td COLSPAN="3" align="center" nowrap width="6%"><font SIZE="2"><b>Nine months ended</b></font></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td align="center" nowrap width="6%">&nbsp;</td>
    <td align="center" nowrap width="6%">
    <p align="right"><font SIZE="2">July 6,</font></td>
    <td align="center" nowrap width="6%">&nbsp;</td>
    <td align="center" nowrap width="6%">
    <p align="right"><font SIZE="2">July 1,</font></td>
    <td align="center" nowrap width="6%">&nbsp;</td>
    <td align="center" nowrap width="6%">
    <p align="right"><font SIZE="2">July 6,</font></td>
    <td align="center" nowrap width="6%">&nbsp;</td>
    <td align="center" nowrap width="6%">
    <p align="right"><font SIZE="2">July 1,</font></td>
  </tr>
  <tr>
    <td style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td align="center" style="border-bottom-style: solid; border-bottom-width: 1" nowrap width="6%">&nbsp;</td>
    <td align="center" style="border-bottom-style: solid; border-bottom-width: 1" nowrap width="6%">
    <p align="right">
    <font SIZE="2">2008</font></td>
    <td align="center" style="border-bottom-style: solid; border-bottom-width: 1" nowrap width="6%">&nbsp;</td>
    <td align="center" style="border-bottom-style: solid; border-bottom-width: 1" nowrap width="6%">
    <p align="right">
    <font SIZE="2">2007</font></td>
    <td align="center" style="border-bottom-style: solid; border-bottom-width: 1" nowrap width="6%">&nbsp;</td>
    <td align="center" style="border-bottom-style: solid; border-bottom-width: 1" nowrap width="6%">
    <p align="right">
    <font SIZE="2">2008</font></td>
    <td align="center" style="border-bottom-style: solid; border-bottom-width: 1" nowrap width="6%">&nbsp;</td>
    <td align="center" style="border-bottom-style: solid; border-bottom-width: 1" nowrap width="6%">
    <p align="right">
    <font SIZE="2">2007</font></td>
  </tr>
  <tr>
    <td style="border-top-style: solid; border-top-width: 1">
    <font SIZE="2">Interest expense on long-term indebtedness</font></td>
    <td WIDTH="6%" align="right" style="border-top-style: solid; border-top-width: 1">
    <font SIZE="2">
    <p>$</font></td>
    <td WIDTH="6%" align="right" style="border-top-style: solid; border-top-width: 1">
    <font SIZE="2">
    <p style="margin-right: 4">1,294</font></td>
    <td WIDTH="6%" align="right" style="border-top-style: solid; border-top-width: 1">
    <font SIZE="2">
    <p>$</font></td>
    <td WIDTH="6%" align="right" style="border-top-style: solid; border-top-width: 1">
    <font SIZE="2">
    <p style="margin-right: 4">1,393</font></td>
    <td WIDTH="6%" align="right" style="border-top-style: solid; border-top-width: 1">
    <font SIZE="2">
    <p>$</font></td>
    <td WIDTH="6%" align="right" style="border-top-style: solid; border-top-width: 1">
    <font SIZE="2">
    <p style="margin-right: 4">6,357</font></td>
    <td WIDTH="6%" align="right" style="border-top-style: solid; border-top-width: 1">
    <font SIZE="2">
    <p>$</font></td>
    <td WIDTH="6%" align="right" style="border-top-style: solid; border-top-width: 1">
    <font SIZE="2">
    <p style="margin-right: 4">3,578</font></td>
  </tr>
  <tr>
    <td><font SIZE="2">Interest expense on short-term indebtedness</font></td>
    <td WIDTH="6%" align="right">
    <p>&nbsp;</td>
    <td WIDTH="6%" align="right"><font SIZE="2">
    <p style="margin-right: 4">4</font></td>
    <td WIDTH="6%" align="right">
    <p>&nbsp;</td>
    <td align="right" width="6%"><font SIZE="2">
    <p style="margin-right: 4">79</font></td>
    <td WIDTH="6%" align="right">
    <p>&nbsp;</td>
    <td align="right" width="6%"><font SIZE="2">
    <p style="margin-right: 4">38</font></td>
    <td WIDTH="6%" align="right">
    <p>&nbsp;</td>
    <td align="right" width="6%"><font SIZE="2">
    <p style="margin-right: 4">219</font></td>
  </tr>
  <tr>
    <td><font SIZE="2">Interest income on available-for-sale
    financial assets</font></td>
    <td align="right" width="6%">
    <p>&nbsp;</td>
    <td align="right" width="6%"><font SIZE="2">(106)</font></td>
    <td align="right" width="6%">
    <p>&nbsp;</td>
    <td align="right" width="6%"><font SIZE="2">(85)</font></td>
    <td align="right" width="6%">
    <p>&nbsp;</td>
    <td align="right" width="6%"><font SIZE="2">(349)</font></td>
    <td align="right" width="6%">
    <p>&nbsp;</td>
    <td align="right" width="6%"><font SIZE="2">(400)</font></td>
  </tr>
  <tr>
    <td><font SIZE="2">Interest income on loans and receivables</font></td>
    <td align="right" width="6%">
    <p>&nbsp;</td>
    <td align="right" width="6%"><font SIZE="2">(20)</font></td>
    <td align="right" width="6%">
    <p>&nbsp;</td>
    <td align="right" width="6%"><font SIZE="2">
    <p style="margin-right: 4">-</font></td>
    <td align="right" width="6%">
    <p>&nbsp;</td>
    <td align="right" width="6%"><font SIZE="2">(60)</font></td>
    <td align="right" width="6%">
    <p>&nbsp;</td>
    <td align="right" width="6%"><font SIZE="2">
    <p style="margin-right: 4">-</font></td>
  </tr>
  <tr>
    <td style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2">Other interest</font></td>
    <td align="right" style="border-bottom-style: solid; border-bottom-width: 1" width="6%">
    <p>&nbsp;</td>
    <td align="right" style="border-bottom-style: solid; border-bottom-width: 1" width="6%">
    <font SIZE="2">
    <p style="margin-right: 4">32</font></td>
    <td align="right" style="border-bottom-style: solid; border-bottom-width: 1" width="6%">
    <p>&nbsp;</td>
    <td align="right" style="border-bottom-style: solid; border-bottom-width: 1" width="6%">
    <font SIZE="2">
    <p style="margin-right: 4">66</font></td>
    <td align="right" style="border-bottom-style: solid; border-bottom-width: 1" width="6%">
    <p>&nbsp;</td>
    <td align="right" style="border-bottom-style: solid; border-bottom-width: 1" width="6%">
    <font SIZE="2">
    <p style="margin-right: 4">79</font></td>
    <td align="right" style="border-bottom-style: solid; border-bottom-width: 1" width="6%">
    <p>&nbsp;</td>
    <td align="right" style="border-bottom-style: solid; border-bottom-width: 1" width="6%">
    <font SIZE="2">
    <p style="margin-right: 4">104</font></td>
  </tr>
  <tr>
    <td style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 2">
    <font SIZE="2">Interest expense - net</font></td>
    <td align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 2" width="6%">
    <font SIZE="2">
    <p>$</font></td>
    <td align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 2" width="6%">
    <font SIZE="2">
    <p style="margin-right: 4">1,204</font></td>
    <td align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 2" width="6%">
    <font SIZE="2">
    <p>$</font></td>
    <td align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 2" width="6%">
    <font SIZE="2">
    <p style="margin-right: 4">1,453</font></td>
    <td align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 2" width="6%">
    <font SIZE="2">
    <p>$</font></td>
    <td align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 2" width="6%">
    <font SIZE="2">
    <p style="margin-right: 4">6,065</font></td>
    <td align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 2" width="6%">
    <font SIZE="2">
    <p>$</font></td>
    <td align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 2" width="6%">
    <font SIZE="2">
    <p style="margin-right: 4">3,501</font></td>
  </tr>
</table>
<font size="2">
<p ALIGN="JUSTIFY">Interest income on available-for-sale financial assets
consists of interest earned from cash and cash equivalents invested in
short-term deposits. Interest income on loans and receivables relates to
interest earned on the Company's long-term receivable included in other assets.
</p>
<p align="center">18</p>
</font>
<hr color="#000000" SIZE="5"><p Style='page-break-before:always'>
<table border="0" cellpadding="0" cellspacing="0" style="border-collapse: collapse" bordercolor="#111111" width="100%" height="45">
  <tr>
    <td width="50%" height="26"><font size="2">
    <img border="0" src="gildan2.jpg" width="84" height="26"></font></td>
    <td width="50%" height="26">&nbsp;</td>
  </tr>
  <tr>
    <td width="50%" height="19">&nbsp;</td>
    <td width="50%" height="19"><font SIZE="2" color="#808080">
    <p align="right"><b>NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS</b></font></td>
  </tr>
</table>
<font SIZE="2"><b>
<p>10. Financial instruments (continued): </p>
</b>
<p>(ii) Foreign exchange gain (loss): </p>
</font>
<table CELLSPACING="0" BORDER="0" WIDTH="100%" cellpadding="0" style="border-collapse: collapse" bordercolor="#111111">
  <tr>
    <td nowrap>&nbsp;</td>
    <td align="center" nowrap width="2%">&nbsp;</td>
    <td COLSPAN="3" align="center" nowrap width="4%"><font SIZE="2"><b>Three months
    ended</b></font></td>
    <td align="center" nowrap width="6%">&nbsp;</td>
    <td COLSPAN="3" align="center" nowrap width="6%"><font SIZE="2"><b>Nine months
    ended</b></font></td>
  </tr>
  <tr>
    <td nowrap>&nbsp;</td>
    <td WIDTH="6%" align="center" nowrap>&nbsp;</td>
    <td WIDTH="6%" align="center" nowrap>
    <p align="right"><font SIZE="2">July 6,</font></td>
    <td WIDTH="6%" align="center" nowrap>&nbsp;</td>
    <td WIDTH="6%" align="center" nowrap>
    <p align="right"><font SIZE="2">July 1,</font></td>
    <td WIDTH="6%" align="center" nowrap>&nbsp;</td>
    <td WIDTH="6%" align="center" nowrap>
    <p align="right"><font SIZE="2">July 6,</font></td>
    <td WIDTH="6%" align="center" nowrap>&nbsp;</td>
    <td WIDTH="6%" align="center" nowrap>
    <p align="right"><font SIZE="2">July 1,</font></td>
  </tr>
  <tr>
    <td style="border-bottom-style: solid; border-bottom-width: 1" nowrap>&nbsp;</td>
    <td WIDTH="6%" align="center" style="border-bottom-style: solid; border-bottom-width: 1" nowrap>&nbsp;</td>
    <td WIDTH="6%" align="center" style="border-bottom-style: solid; border-bottom-width: 1" nowrap>
    <p align="right">
    <font SIZE="2">2008</font></td>
    <td align="center" style="border-bottom-style: solid; border-bottom-width: 1" nowrap width="6%">&nbsp;</td>
    <td align="center" style="border-bottom-style: solid; border-bottom-width: 1" nowrap width="6%">
    <p align="right">
    <font SIZE="2">2007</font></td>
    <td align="center" style="border-bottom-style: solid; border-bottom-width: 1" nowrap width="6%">&nbsp;</td>
    <td align="center" style="border-bottom-style: solid; border-bottom-width: 1" nowrap width="6%">
    <p align="right">
    <font SIZE="2">2008</font></td>
    <td align="center" style="border-bottom-style: solid; border-bottom-width: 1" nowrap width="6%">&nbsp;</td>
    <td align="center" style="border-bottom-style: solid; border-bottom-width: 1" nowrap width="6%">
    <p align="right">
    <font SIZE="2">2007</font></td>
  </tr>
  <tr>
    <td style="border-top-style: solid; border-top-width: 1" nowrap>
    <font SIZE="2">Gain (loss) relating to financial assets and liabilities,</font></td>
    <td align="right" style="border-top-style: solid; border-top-width: 1" nowrap width="6%">
    <p style="margin-right: 4">&nbsp;</td>
    <td align="right" style="border-top-style: solid; border-top-width: 1" nowrap width="6%">
    <p style="margin-right: 4">&nbsp;</td>
    <td align="right" style="border-top-style: solid; border-top-width: 1" nowrap width="6%">
    <p>&nbsp;</td>
    <td align="right" style="border-top-style: solid; border-top-width: 1" nowrap width="6%">
    <p style="margin-right: 4">&nbsp;</td>
    <td align="right" style="border-top-style: solid; border-top-width: 1" nowrap width="6%">
    <p>&nbsp;</td>
    <td align="right" style="border-top-style: solid; border-top-width: 1" nowrap width="6%">
    <p style="margin-right: 4">&nbsp;</td>
    <td align="right" style="border-top-style: solid; border-top-width: 1" nowrap width="6%">
    <p>&nbsp;</td>
    <td align="right" style="border-top-style: solid; border-top-width: 1" nowrap width="6%">
    <p style="margin-right: 4">&nbsp;</td>
  </tr>
  <tr>
    <td nowrap><font SIZE="2">&nbsp;&nbsp;&nbsp; excluding forward foreign
    exchange contracts</font></td>
    <td align="right" nowrap width="6%"><font SIZE="2">
    <p>$</font></td>
    <td align="right" nowrap width="6%"><font SIZE="2">
    <p style="margin-right: 4">120</font></td>
    <td align="right" nowrap width="6%"><font SIZE="2">
    <p>$</font></td>
    <td align="right" nowrap width="6%"><font SIZE="2">(759)</font></td>
    <td align="right" nowrap width="6%"><font SIZE="2">
    <p>$</font></td>
    <td align="right" nowrap width="6%"><font SIZE="2">
    <p style="margin-right: 4">1,321</font></td>
    <td align="right" nowrap width="6%"><font SIZE="2">
    <p>$</font></td>
    <td align="right" nowrap width="6%"><font SIZE="2">
    <p style="margin-right: 4">344</font></td>
  </tr>
  <tr>
    <td nowrap><font SIZE="2">Gain (loss) relating to forward exchange
    contracts,</font></td>
    <td align="right" nowrap width="6%">
    <p>&nbsp;</td>
    <td align="right" nowrap width="6%">
    <p style="margin-right: 4">&nbsp;</td>
    <td align="right" nowrap width="6%">
    <p>&nbsp;</td>
    <td align="right" nowrap width="6%">
    <p style="margin-right: 4">&nbsp;</td>
    <td align="right" nowrap width="6%">
    <p>&nbsp;</td>
    <td align="right" nowrap width="6%">
    <p style="margin-right: 4">&nbsp;</td>
    <td align="right" nowrap width="6%">
    <p>&nbsp;</td>
    <td align="right" nowrap width="6%">
    <p style="margin-right: 4">&nbsp;</td>
  </tr>
  <tr>
    <td nowrap><font SIZE="2">&nbsp;&nbsp;&nbsp; including amounts realized
    on contract maturity</font></td>
    <td align="right" nowrap width="6%">
    <p>&nbsp;</td>
    <td align="right" nowrap width="6%">
    <p style="margin-right: 4">&nbsp;</td>
    <td align="right" nowrap width="6%">
    <p>&nbsp;</td>
    <td align="right" nowrap width="6%">
    <p style="margin-right: 4">&nbsp;</td>
    <td align="right" nowrap width="6%">
    <p>&nbsp;</td>
    <td align="right" nowrap width="6%">
    <p style="margin-right: 4">&nbsp;</td>
    <td align="right" nowrap width="6%">
    <p>&nbsp;</td>
    <td align="right" nowrap width="6%">
    <p style="margin-right: 4">&nbsp;</td>
  </tr>
  <tr>
    <td style="border-bottom-style: solid; border-bottom-width: 1" nowrap>
    <font SIZE="2">&nbsp;&nbsp;&nbsp; and changes in fair value of open
    positions</font></td>
    <td align="right" style="border-bottom-style: solid; border-bottom-width: 1" nowrap width="6%">
    <p>&nbsp;</td>
    <td align="right" style="border-bottom-style: solid; border-bottom-width: 1" nowrap width="6%">
    <font SIZE="2">
    <p style="margin-right: 4">185</font></td>
    <td align="right" style="border-bottom-style: solid; border-bottom-width: 1" nowrap width="6%">
    <p>&nbsp;</td>
    <td align="right" style="border-bottom-style: solid; border-bottom-width: 1" nowrap width="6%">
    <font SIZE="2">
    <p style="margin-right: 4">2,333</font></td>
    <td align="right" style="border-bottom-style: solid; border-bottom-width: 1" nowrap width="6%">
    <p>&nbsp;</td>
    <td align="right" style="border-bottom-style: solid; border-bottom-width: 1" nowrap width="6%">
    <font SIZE="2">(2,189)</font></td>
    <td align="right" style="border-bottom-style: solid; border-bottom-width: 1" nowrap width="6%">
    <p>&nbsp;</td>
    <td align="right" style="border-bottom-style: solid; border-bottom-width: 1" nowrap width="6%">
    <font SIZE="2">
    <p style="margin-right: 4">2,659</font></td>
  </tr>
  <tr>
    <td style="border-top-style: solid; border-top-width: 1" nowrap>
    <font SIZE="2">Foreign exchange gain (loss) relating</font></td>
    <td align="right" style="border-top-style: solid; border-top-width: 1" nowrap width="6%">
    <p>&nbsp;</td>
    <td align="right" style="border-top-style: solid; border-top-width: 1" nowrap width="6%">
    <p style="margin-right: 4">&nbsp;</td>
    <td align="right" style="border-top-style: solid; border-top-width: 1" nowrap width="6%">
    <p>&nbsp;</td>
    <td align="right" style="border-top-style: solid; border-top-width: 1" nowrap width="6%">
    <p style="margin-right: 4">&nbsp;</td>
    <td align="right" style="border-top-style: solid; border-top-width: 1" nowrap width="6%">
    <p>&nbsp;</td>
    <td align="right" style="border-top-style: solid; border-top-width: 1" nowrap width="6%">
    <p style="margin-right: 4">&nbsp;</td>
    <td align="right" style="border-top-style: solid; border-top-width: 1" nowrap width="6%">
    <p>&nbsp;</td>
    <td align="right" style="border-top-style: solid; border-top-width: 1" nowrap width="6%">
    <p style="margin-right: 4">&nbsp;</td>
  </tr>
  <tr>
    <td nowrap><font SIZE="2">&nbsp;&nbsp;&nbsp; to financial instruments</font></td>
    <td align="right" nowrap width="6%">
    <p>&nbsp;</td>
    <td align="right" nowrap width="6%"><font SIZE="2">
    <p style="margin-right: 4">305</font></td>
    <td align="right" nowrap width="6%">
    <p>&nbsp;</td>
    <td align="right" nowrap width="6%"><font SIZE="2">
    <p style="margin-right: 4">1,574</font></td>
    <td align="right" nowrap width="6%">
    <p>&nbsp;</td>
    <td align="right" nowrap width="6%"><font SIZE="2">(868)</font></td>
    <td align="right" nowrap width="6%">
    <p>&nbsp;</td>
    <td align="right" nowrap width="6%"><font SIZE="2">
    <p style="margin-right: 4">3,003</font></td>
  </tr>
  <tr>
    <td style="border-bottom-style: solid; border-bottom-width: 1" nowrap>
    <font SIZE="2">Other foreign exchange gain (loss)</font></td>
    <td align="right" style="border-bottom-style: solid; border-bottom-width: 1" nowrap width="6%">
    <p>&nbsp;</td>
    <td align="right" style="border-bottom-style: solid; border-bottom-width: 1" nowrap width="6%">
    <font SIZE="2">
    <p style="margin-right: 4">26</font></td>
    <td align="right" style="border-bottom-style: solid; border-bottom-width: 1" nowrap width="6%">
    <p>&nbsp;</td>
    <td align="right" style="border-bottom-style: solid; border-bottom-width: 1" nowrap width="6%">
    <font SIZE="2">(2,282)</font></td>
    <td align="right" style="border-bottom-style: solid; border-bottom-width: 1" nowrap width="6%">
    <p>&nbsp;</td>
    <td align="right" style="border-bottom-style: solid; border-bottom-width: 1" nowrap width="6%">
    <font SIZE="2">
    <p style="margin-right: 4">222</font></td>
    <td align="right" style="border-bottom-style: solid; border-bottom-width: 1" nowrap width="6%">
    <p>&nbsp;</td>
    <td align="right" style="border-bottom-style: solid; border-bottom-width: 1" nowrap width="6%">
    <font SIZE="2">(1,319)</font></td>
  </tr>
  <tr>
    <td style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 2" nowrap>
    <font SIZE="2">Foreign exchange gain (loss)</font></td>
    <td align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 2" nowrap width="6%">
    <font SIZE="2">
    <p>$</font></td>
    <td align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 2" nowrap width="6%">
    <font SIZE="2">
    <p style="margin-right: 4">331</font></td>
    <td align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 2" nowrap width="6%">
    <font SIZE="2">
    <p>$</font></td>
    <td align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 2" nowrap width="6%">
    <font SIZE="2">(708)</font></td>
    <td align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 2" nowrap width="6%">
    <font SIZE="2">
    <p>$</font></td>
    <td align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 2" nowrap width="6%">
    <font SIZE="2">(646)</font></td>
    <td align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 2" nowrap width="6%">
    <font SIZE="2">
    <p>$</font></td>
    <td align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 2" nowrap width="6%">
    <font SIZE="2">
    <p style="margin-right: 4">1,684</font></td>
  </tr>
</table>
<font SIZE="2">
<p>(iii) Impairment losses recognized on trade receivables: </p>
<p ALIGN="JUSTIFY">The Company recorded bad debt expense (recovery) of $2.5
million (2007 - $(0.2) million) for the three month period ended July 6, 2008
and $2.6 million (2007 - $0.1 million) for the nine month period ended July 6,
2008. Bad debt expense is included in &quot;Selling, general and administrative
expenses&quot; in the interim consolidated statements of earnings and comprehensive
income. </p>
<p>(c) Forward foreign exchange contracts: </p>
<p>The following table summarizes the Company's derivative financial instruments
relating to commitments to buy and sell foreign currencies through forward
foreign exchange contracts as at July 6, 2008 and September 30, 2007: </p>
</font>
<table CELLSPACING="0" BORDER="0" WIDTH="100%" cellpadding="0" style="border-collapse: collapse" bordercolor="#111111">
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align="right"><font SIZE="2"><b>Notional foreign</b></font></td>
    <td align="right"><font SIZE="2"><b>Average</b></font></td>
    <td COLSPAN="2" align="right"><font SIZE="2"><b>Notional USD</b></font></td>
    <td COLSPAN="4" align="right"><u><font SIZE="2"><b>Carrying &amp; fair
    value</b></font></u></td>
  </tr>
  <tr>
    <td style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2"><b>July 6, 2008</b></font></td>
    <td style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2"><b>Maturity</b></font></td>
    <td align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2"><b>currency amount</b></font></td>
    <td align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2"><b>exchange rate</b></font></td>
    <td COLSPAN="2" align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2"><b>equivalent</b></font></td>
    <td COLSPAN="2" align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2"><b>Asset</b></font></td>
    <td COLSPAN="2" align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2"><b>Liability</b></font></td>
  </tr>
  <tr>
    <td style="border-top-style: solid; border-top-width: 1">&nbsp;</td>
    <td style="border-top-style: solid; border-top-width: 1">&nbsp;</td>
    <td align="right" style="border-top-style: solid; border-top-width: 1">&nbsp;</td>
    <td align="right" style="border-top-style: solid; border-top-width: 1">&nbsp;</td>
    <td align="right" style="border-top-style: solid; border-top-width: 1">&nbsp;</td>
    <td align="right" style="border-top-style: solid; border-top-width: 1">&nbsp;</td>
    <td align="right" style="border-top-style: solid; border-top-width: 1">&nbsp;</td>
    <td align="right" style="border-top-style: solid; border-top-width: 1">&nbsp;</td>
    <td align="right" style="border-top-style: solid; border-top-width: 1">&nbsp;</td>
    <td align="right" style="border-top-style: solid; border-top-width: 1">&nbsp;</td>
  </tr>
  <tr>
    <td><font SIZE="2">Buy CAD/Sell USD</font></td>
    <td><font SIZE="2">0-6 months</font></td>
    <td align="right"><font SIZE="2">35,500</font></td>
    <td align="right"><font SIZE="2">0.9923</font></td>
    <td align="right"><font SIZE="2">$</font></td>
    <td WIDTH="8%" align="right"><font SIZE="2">35,225</font></td>
    <td align="right"><font SIZE="2">$</font></td>
    <td WIDTH="8%" align="right"><font SIZE="2">-</font></td>
    <td align="right"><font SIZE="2">$</font></td>
    <td WIDTH="8%" align="right"><font SIZE="2">(457)</font></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align="right">&nbsp;</td>
    <td align="right">&nbsp;</td>
    <td align="right">&nbsp;</td>
    <td WIDTH="8%" align="right">&nbsp;</td>
    <td align="right">&nbsp;</td>
    <td align="right">&nbsp;</td>
    <td align="right">&nbsp;</td>
    <td align="right">&nbsp;</td>
  </tr>
  <tr>
    <td><font SIZE="2">Sell EUR/Buy USD</font></td>
    <td><font SIZE="2">0-6 months</font></td>
    <td align="right"><font SIZE="2">8,485</font></td>
    <td align="right"><font SIZE="2">1.3963</font></td>
    <td align="right">&nbsp;</td>
    <td align="right"><font SIZE="2">11,848</font></td>
    <td align="right">&nbsp;</td>
    <td align="right"><font SIZE="2">-</font></td>
    <td align="right">&nbsp;</td>
    <td align="right"><font SIZE="2">(1,404)</font></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td><font SIZE="2">6-12 months</font></td>
    <td align="right"><font SIZE="2">2,650</font></td>
    <td align="right"><font SIZE="2">1.4743</font></td>
    <td align="right">&nbsp;</td>
    <td align="right"><font SIZE="2">3,907</font></td>
    <td align="right">&nbsp;</td>
    <td align="right"><font SIZE="2">-</font></td>
    <td align="right">&nbsp;</td>
    <td align="right"><font SIZE="2">(197)</font></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align="right">&nbsp;</td>
    <td align="right">&nbsp;</td>
    <td align="right">&nbsp;</td>
    <td align="right">&nbsp;</td>
    <td align="right">&nbsp;</td>
    <td align="right">&nbsp;</td>
    <td align="right">&nbsp;</td>
    <td align="right">&nbsp;</td>
  </tr>
  <tr>
    <td style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2">Sell GBP/Buy USD</font></td>
    <td style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2">0-6 months</font></td>
    <td align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2">5,172</font></td>
    <td align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2">1.9952</font></td>
    <td align="right" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2">10,319</font></td>
    <td align="right" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2">123</font></td>
    <td align="right" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2">-</font></td>
  </tr>
  <tr>
    <td style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 2">&nbsp;</td>
    <td style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 2">&nbsp;</td>
    <td align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 2">&nbsp;</td>
    <td align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 2">&nbsp;</td>
    <td align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 2">
    <font SIZE="2">$</font></td>
    <td align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 2">
    <font SIZE="2">61,299</font></td>
    <td align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 2">
    <font SIZE="2">$</font></td>
    <td align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 2">
    <font SIZE="2">123</font></td>
    <td align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 2">
    <font SIZE="2">$</font></td>
    <td align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 2">
    <font SIZE="2">(2,058)</font></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align="right">&nbsp;</td>
    <td align="right">&nbsp;</td>
    <td align="right">&nbsp;</td>
    <td align="right">&nbsp;</td>
    <td align="right">&nbsp;</td>
    <td align="right">&nbsp;</td>
    <td align="right">&nbsp;</td>
    <td align="right">&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align="right">&nbsp;</td>
    <td align="right">&nbsp;</td>
    <td align="right">&nbsp;</td>
    <td align="right">&nbsp;</td>
    <td align="right">&nbsp;</td>
    <td align="right">&nbsp;</td>
    <td align="right">&nbsp;</td>
    <td align="right">&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align="right"><font SIZE="2"><b>Notional foreign</b></font></td>
    <td align="right"><font SIZE="2"><b>Average</b></font></td>
    <td COLSPAN="2" align="right"><font SIZE="2"><b>Notional USD</b></font></td>
    <td COLSPAN="4" align="right"><u><font SIZE="2"><b>Carrying &amp; fair
    value</b></font></u></td>
  </tr>
  <tr>
    <td style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2"><b>September 30, 2007</b></font></td>
    <td style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2"><b>Maturity</b></font></td>
    <td align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2"><b>currency amount</b></font></td>
    <td align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2"><b>exchange rate</b></font></td>
    <td COLSPAN="2" align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2"><b>equivalent</b></font></td>
    <td COLSPAN="2" align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2"><b>Asset</b></font></td>
    <td COLSPAN="2" align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2"><b>Liability</b></font></td>
  </tr>
  <tr>
    <td style="border-top-style: solid; border-top-width: 1">&nbsp;</td>
    <td style="border-top-style: solid; border-top-width: 1">&nbsp;</td>
    <td align="right" style="border-top-style: solid; border-top-width: 1">&nbsp;</td>
    <td align="right" style="border-top-style: solid; border-top-width: 1">&nbsp;</td>
    <td align="right" style="border-top-style: solid; border-top-width: 1">&nbsp;</td>
    <td align="right" style="border-top-style: solid; border-top-width: 1">&nbsp;</td>
    <td align="right" style="border-top-style: solid; border-top-width: 1">&nbsp;</td>
    <td align="right" style="border-top-style: solid; border-top-width: 1">&nbsp;</td>
    <td align="right" style="border-top-style: solid; border-top-width: 1">&nbsp;</td>
    <td align="right" style="border-top-style: solid; border-top-width: 1">&nbsp;</td>
  </tr>
  <tr>
    <td><font SIZE="2">Buy EUR/Sell USD</font></td>
    <td><font SIZE="2">0-6 months</font></td>
    <td align="right"><font SIZE="2">4,425</font></td>
    <td align="right"><font SIZE="2">1.3616</font></td>
    <td align="right"><font SIZE="2">$</font></td>
    <td align="right"><font SIZE="2">6,025</font></td>
    <td align="right"><font SIZE="2">$</font></td>
    <td align="right"><font SIZE="2">293</font></td>
    <td align="right"><font SIZE="2">$</font></td>
    <td align="right"><font SIZE="2">-</font></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align="right">&nbsp;</td>
    <td align="right">&nbsp;</td>
    <td align="right">&nbsp;</td>
    <td align="right">&nbsp;</td>
    <td align="right">&nbsp;</td>
    <td align="right">&nbsp;</td>
    <td align="right">&nbsp;</td>
    <td align="right">&nbsp;</td>
  </tr>
  <tr>
    <td><font SIZE="2">Sell EUR/Buy USD</font></td>
    <td><font SIZE="2">0-6 months</font></td>
    <td align="right"><font SIZE="2">4,899</font></td>
    <td align="right"><font SIZE="2">1.3626</font></td>
    <td align="right">&nbsp;</td>
    <td align="right"><font SIZE="2">6,675</font></td>
    <td align="right">&nbsp;</td>
    <td align="right"><font SIZE="2">-</font></td>
    <td align="right">&nbsp;</td>
    <td align="right"><font SIZE="2">(278)</font></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td><font SIZE="2">6-12 months</font></td>
    <td align="right"><font SIZE="2">9,081</font></td>
    <td align="right"><font SIZE="2">1.3677</font></td>
    <td align="right">&nbsp;</td>
    <td align="right"><font SIZE="2">12,421</font></td>
    <td align="right">&nbsp;</td>
    <td align="right"><font SIZE="2">-</font></td>
    <td align="right">&nbsp;</td>
    <td align="right"><font SIZE="2">(467)</font></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align="right">&nbsp;</td>
    <td align="right">&nbsp;</td>
    <td align="right">&nbsp;</td>
    <td align="right">&nbsp;</td>
    <td align="right">&nbsp;</td>
    <td align="right">&nbsp;</td>
    <td align="right">&nbsp;</td>
    <td align="right">&nbsp;</td>
  </tr>
  <tr>
    <td><font SIZE="2">Sell GBP/Buy USD</font></td>
    <td><font SIZE="2">0-6 months</font></td>
    <td align="right"><font SIZE="2">4,781</font></td>
    <td align="right"><font SIZE="2">1.9988</font></td>
    <td align="right">&nbsp;</td>
    <td align="right"><font SIZE="2">9,558</font></td>
    <td align="right">&nbsp;</td>
    <td align="right"><font SIZE="2">-</font></td>
    <td align="right">&nbsp;</td>
    <td align="right"><font SIZE="2">(146)</font></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td><font SIZE="2">6-12 months</font></td>
    <td align="right"><font SIZE="2">6,019</font></td>
    <td align="right"><font SIZE="2">1.9841</font></td>
    <td align="right">&nbsp;</td>
    <td align="right"><font SIZE="2">11,942</font></td>
    <td align="right">&nbsp;</td>
    <td align="right"><font SIZE="2">-</font></td>
    <td align="right">&nbsp;</td>
    <td align="right"><font SIZE="2">(196)</font></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align="right">&nbsp;</td>
    <td align="right">&nbsp;</td>
    <td align="right">&nbsp;</td>
    <td align="right">&nbsp;</td>
    <td align="right">&nbsp;</td>
    <td align="right">&nbsp;</td>
    <td align="right">&nbsp;</td>
    <td align="right">&nbsp;</td>
  </tr>
  <tr>
    <td style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2">Sell CAD/Buy USD</font></td>
    <td style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2">0-6 months</font></td>
    <td align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2">3,800</font></td>
    <td align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2">1.0055</font></td>
    <td align="right" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2">3,821</font></td>
    <td align="right" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2">-</font></td>
    <td align="right" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2">-</font></td>
  </tr>
  <tr>
    <td style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 2">&nbsp;</td>
    <td style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 2">&nbsp;</td>
    <td align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 2">&nbsp;</td>
    <td align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 2">&nbsp;</td>
    <td align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 2">
    <font SIZE="2">$</font></td>
    <td align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 2">
    <font SIZE="2">50,442</font></td>
    <td align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 2">
    <font SIZE="2">$</font></td>
    <td align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 2">
    <font SIZE="2">293</font></td>
    <td align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 2">
    <font SIZE="2">$</font></td>
    <td align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 2">
    <font SIZE="2">(1,087)</font></td>
  </tr>
</table>
<font size="2">
<p align="justify">The forward exchange contracts are reported on a
mark-to-market basis and the gains or losses are included in earnings as the
Company has elected not to follow hedge accounting for these derivatives. </p>
<p align="center">19</p>
</font>
<hr color="#000000" SIZE="5"><p Style='page-break-before:always'>
<table border="0" cellpadding="0" cellspacing="0" style="border-collapse: collapse" bordercolor="#111111" width="100%" height="45">
  <tr>
    <td width="50%" height="26"><font size="2">
    <img border="0" src="gildan2.jpg" width="84" height="26"></font></td>
    <td width="50%" height="26">&nbsp;</td>
  </tr>
  <tr>
    <td width="50%" height="19">&nbsp;</td>
    <td width="50%" height="19"><font SIZE="2" color="#808080">
    <p align="right"><b>NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS</b></font></td>
  </tr>
</table>
<font SIZE="2"><b>
<p>11. Capital disclosures: </p>
</b>
<p ALIGN="JUSTIFY">The Company's objective in managing capital is to ensure
sufficient liquidity to pursue its organic growth strategy and undertake
selective acquisitions, while at the same time taking a conservative approach
towards financial leverage and management of financial risk. </p>
<p ALIGN="JUSTIFY">The Company's capital is composed of net debt and
shareholders' equity. Net debt consists of interest-bearing debt less cash and
cash equivalents. The Company's primary uses of capital are to finance increases
in non-cash working capital and capital expenditures for capacity expansion as
well as acquisitions. The Company currently funds these requirements out of its
internally-generated cash flows and the periodic use of its revolving long-term
bank credit facility. </p>
<p ALIGN="JUSTIFY">The primary measure used by the Company to monitor its
financial leverage is its ratio of net debt to earnings before interest, taxes,
depreciation and amortization, non-controlling interest, and restructuring and
other charges (&quot;EBITDA&quot;), which it aims to maintain at less than 3.0:1. Net debt
is computed as at the most recent quarterly balance sheet date. EBITDA is based
on the last four quarters ending on the same date as the balance sheet date used
to compute net debt. The net debt to EBITDA ratio as at July 6, 2008, September
30, 2007 and July 1, 2007 was as follows: </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">&nbsp;</td>
    <td align="right" style="border-bottom-style: solid; border-bottom-width: 1" nowrap width="6%">&nbsp;</td>
    <td align="center" style="border-bottom-style: solid; border-bottom-width: 1" nowrap width="6%">
    <p align="right">
    <font SIZE="2">July 6, 2008</font></td>
    <td COLSPAN="2" align="center" style="border-bottom-style: solid; border-bottom-width: 1" nowrap width="6%">
    <p align="right" style="margin-left: 20">
    <font SIZE="2">September 30, 2007</font></td>
    <td align="center" style="border-bottom-style: solid; border-bottom-width: 1" nowrap width="6%">&nbsp;</td>
    <td align="center" style="border-bottom-style: solid; border-bottom-width: 1" nowrap width="6%">
    <p align="right">
    <font SIZE="2">July 1, 2007</font></td>
  </tr>
  <tr>
    <td style="border-top-style: solid; border-top-width: 1">
    <font SIZE="2">Bank indebtedness</font></td>
    <td align="right" style="border-top-style: solid; border-top-width: 1" width="6%">
    <font SIZE="2">
    <p>$</font></td>
    <td align="right" style="border-top-style: solid; border-top-width: 1" width="6%">
    <font SIZE="2">
    <p style="margin-right: 4">-</font></td>
    <td align="right" style="border-top-style: solid; border-top-width: 1" width="6%">
    <font SIZE="2">
    <p>$</font></td>
    <td align="right" style="border-top-style: solid; border-top-width: 1" width="6%">
    <font SIZE="2">
    <p style="margin-right: 4">-</font></td>
    <td align="right" style="border-top-style: solid; border-top-width: 1" width="6%">
    <font SIZE="2">
    <p>$</font></td>
    <td align="right" style="border-top-style: solid; border-top-width: 1" width="6%">
    <font SIZE="2">
    <p style="margin-right: 4">3,500</font></td>
  </tr>
  <tr>
    <td><font SIZE="2">Current portion of long-term debt</font></td>
    <td align="right" width="6%">
    <p>&nbsp;</td>
    <td align="right" width="6%"><font SIZE="2">
    <p style="margin-right: 4">3,762</font></td>
    <td align="right" width="6%">
    <p>&nbsp;</td>
    <td align="right" width="6%"><font SIZE="2">
    <p style="margin-right: 4">3,689</font></td>
    <td align="right" width="6%">
    <p>&nbsp;</td>
    <td align="right" width="6%"><font SIZE="2">
    <p style="margin-right: 4">3,934</font></td>
  </tr>
  <tr>
    <td><font SIZE="2">Long-term debt</font></td>
    <td WIDTH="6%" align="right">
    <p>&nbsp;</td>
    <td WIDTH="6%" align="right"><font SIZE="2">
    <p style="margin-right: 4">104,677</font></td>
    <td WIDTH="6%" align="right">
    <p>&nbsp;</td>
    <td WIDTH="6%" align="right"><font SIZE="2">
    <p style="margin-right: 4">55,971</font></td>
    <td WIDTH="6%" align="right">
    <p>&nbsp;</td>
    <td WIDTH="6%" align="right"><font SIZE="2">
    <p style="margin-right: 4">38,979</font></td>
  </tr>
  <tr>
    <td style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2">Less: cash and cash equivalents</font></td>
    <td WIDTH="6%" align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <p>&nbsp;</td>
    <td align="right" style="border-bottom-style: solid; border-bottom-width: 1" width="6%">
    <font SIZE="2">(13,195)</font></td>
    <td align="right" style="border-bottom-style: solid; border-bottom-width: 1" width="6%">
    <p>&nbsp;</td>
    <td WIDTH="6%" align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2">(9,250)</font></td>
    <td align="right" style="border-bottom-style: solid; border-bottom-width: 1" width="6%">
    <p>&nbsp;</td>
    <td align="right" style="border-bottom-style: solid; border-bottom-width: 1" width="6%">
    <font SIZE="2">(7,537)</font></td>
  </tr>
  <tr>
    <td style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 2">
    <font SIZE="2">Net debt</font></td>
    <td align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 2" width="6%">
    <font SIZE="2">
    <p>$</font></td>
    <td align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 2" width="6%">
    <font SIZE="2">
    <p style="margin-right: 4">95,244</font></td>
    <td align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 2" width="6%">
    <font SIZE="2">
    <p>$</font></td>
    <td align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 2" width="6%">
    <font SIZE="2">
    <p style="margin-right: 4">50,410</font></td>
    <td align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 2" width="6%">
    <font SIZE="2">
    <p>$</font></td>
    <td align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 2" width="6%">
    <font SIZE="2">
    <p style="margin-right: 4">38,876</font></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td align="right" width="6%">&nbsp;</td>
    <td align="right" width="6%">&nbsp;</td>
    <td align="right" width="6%">&nbsp;</td>
    <td align="right" width="6%">&nbsp;</td>
    <td align="right" width="6%">&nbsp;</td>
    <td align="right" width="6%">&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td align="right" width="6%">&nbsp;</td>
    <td align="right" width="6%">&nbsp;</td>
    <td align="right" width="6%">&nbsp;</td>
    <td align="right" width="6%">&nbsp;</td>
    <td align="right" width="6%">&nbsp;</td>
    <td align="right" width="6%">&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td align="center" colspan="6" width="6%"><font SIZE="2"><i>For the last
    four quarters ending on</i></font></td>
  </tr>
  <tr>
    <td style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td align="right" style="border-bottom-style: solid; border-bottom-width: 1" width="6%">&nbsp;</td>
    <td align="center" style="border-bottom-style: solid; border-bottom-width: 1" width="6%">
    <p align="right">
    <font SIZE="2">July 6, 2008</font></td>
    <td COLSPAN="2" align="center" style="border-bottom-style: solid; border-bottom-width: 1" width="6%">
    <p align="right" style="margin-left: 20">
    <font SIZE="2">September 30, 2007</font></td>
    <td align="center" style="border-bottom-style: solid; border-bottom-width: 1" width="6%">&nbsp;</td>
    <td align="center" style="border-bottom-style: solid; border-bottom-width: 1" width="6%">
    <p align="right">
    <font SIZE="2">July 1, 2007</font></td>
  </tr>
  <tr>
    <td style="border-top-style: solid; border-top-width: 1">
    <font SIZE="2">Net earnings</font></td>
    <td align="right" style="border-top-style: solid; border-top-width: 1" width="6%">
    <font SIZE="2">
    <p>$</font></td>
    <td align="right" style="border-top-style: solid; border-top-width: 1" width="6%">
    <font SIZE="2">
    <p style="margin-right: 4">164,037</font></td>
    <td align="right" style="border-top-style: solid; border-top-width: 1" width="6%">
    <font SIZE="2">
    <p>$</font></td>
    <td align="right" style="border-top-style: solid; border-top-width: 1" width="6%">
    <font SIZE="2">
    <p style="margin-right: 4">130,020</font></td>
    <td align="right" style="border-top-style: solid; border-top-width: 1" width="6%">
    <font SIZE="2">
    <p>$</font></td>
    <td align="right" style="border-top-style: solid; border-top-width: 1" width="6%">
    <font SIZE="2">
    <p style="margin-right: 4">105,942</font></td>
  </tr>
  <tr>
    <td><font SIZE="2">Restructuring and other charges</font></td>
    <td align="right" width="6%">
    <p>&nbsp;</td>
    <td align="right" width="6%"><font SIZE="2">
    <p style="margin-right: 4">9,602</font></td>
    <td align="right" width="6%">
    <p>&nbsp;</td>
    <td align="right" width="6%"><font SIZE="2">
    <p style="margin-right: 4">28,012</font></td>
    <td align="right" width="6%">
    <p>&nbsp;</td>
    <td align="right" width="6%"><font SIZE="2">
    <p style="margin-right: 4">42,725</font></td>
  </tr>
  <tr>
    <td><font SIZE="2">Depreciation and amortization</font></td>
    <td align="right" width="6%">
    <p>&nbsp;</td>
    <td align="right" width="6%"><font SIZE="2">
    <p style="margin-right: 4">53,505</font></td>
    <td align="right" width="6%">
    <p>&nbsp;</td>
    <td align="right" width="6%"><font SIZE="2">
    <p style="margin-right: 4">38,777</font></td>
    <td align="right" width="6%">
    <p>&nbsp;</td>
    <td align="right" width="6%"><font SIZE="2">
    <p style="margin-right: 4">37,593</font></td>
  </tr>
  <tr>
    <td><font SIZE="2">Interest, net</font></td>
    <td align="right" width="6%">
    <p>&nbsp;</td>
    <td align="right" width="6%"><font SIZE="2">
    <p style="margin-right: 4">7,462</font></td>
    <td align="right" width="6%">
    <p>&nbsp;</td>
    <td align="right" width="6%"><font SIZE="2">
    <p style="margin-right: 4">4,898</font></td>
    <td align="right" width="6%">
    <p>&nbsp;</td>
    <td align="right" width="6%"><font SIZE="2">
    <p style="margin-right: 4">4,540</font></td>
  </tr>
  <tr>
    <td><font SIZE="2">Income tax expense (recovery)</font></td>
    <td align="right" width="6%">
    <p>&nbsp;</td>
    <td align="right" width="6%"><font SIZE="2">
    <p style="margin-right: 4">4,466</font></td>
    <td align="right" width="6%">
    <p>&nbsp;</td>
    <td align="right" width="6%"><font SIZE="2">(4,815)</font></td>
    <td align="right" width="6%">
    <p>&nbsp;</td>
    <td align="right" width="6%"><font SIZE="2">
    <p style="margin-right: 4">917</font></td>
  </tr>
  <tr>
    <td style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2">Non-controlling interest in income of consolidated joint
    venture</font></td>
    <td align="right" style="border-bottom-style: solid; border-bottom-width: 1" width="6%">
    <p>&nbsp;</td>
    <td align="right" style="border-bottom-style: solid; border-bottom-width: 1" width="6%">
    <font SIZE="2">
    <p style="margin-right: 4">1,010</font></td>
    <td align="right" style="border-bottom-style: solid; border-bottom-width: 1" width="6%">
    <p>&nbsp;</td>
    <td align="right" style="border-bottom-style: solid; border-bottom-width: 1" width="6%">
    <font SIZE="2">
    <p style="margin-right: 4">1,278</font></td>
    <td align="right" style="border-bottom-style: solid; border-bottom-width: 1" width="6%">
    <p>&nbsp;</td>
    <td align="right" style="border-bottom-style: solid; border-bottom-width: 1" width="6%">
    <font SIZE="2">
    <p style="margin-right: 4">645</font></td>
  </tr>
  <tr>
    <td style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 2">
    <font SIZE="2">EBITDA</font></td>
    <td align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 2" width="6%">
    <font SIZE="2">
    <p>$</font></td>
    <td align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 2" width="6%">
    <font SIZE="2">
    <p style="margin-right: 4">240,082</font></td>
    <td align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 2" width="6%">
    <font SIZE="2">
    <p>$</font></td>
    <td align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 2" width="6%">
    <font SIZE="2">
    <p style="margin-right: 4">198,170</font></td>
    <td align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 2" width="6%">
    <font SIZE="2">
    <p>$</font></td>
    <td align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 2" width="6%">
    <font SIZE="2">
    <p style="margin-right: 4">192,362</font></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td align="right" width="6%">
    <p style="margin-right: 4">&nbsp;</td>
    <td align="right" width="6%">
    <p style="margin-right: 4">&nbsp;</td>
    <td align="right" width="6%">
    <p style="margin-right: 4">&nbsp;</td>
    <td align="right" width="6%">
    <p style="margin-right: 4">&nbsp;</td>
    <td align="right" width="6%">
    <p>&nbsp;</td>
    <td align="right" width="6%">
    <p style="margin-right: 4">&nbsp;</td>
  </tr>
  <tr>
    <td style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2">Net debt to EBITDA ratio</font></td>
    <td align="right" style="border-bottom-style: solid; border-bottom-width: 1" width="6%">
    <p style="margin-right: 4">&nbsp;</td>
    <td align="right" style="border-bottom-style: solid; border-bottom-width: 1" width="6%">
    <font SIZE="2">
    <p style="margin-right: 4">0.4:1</font></td>
    <td align="right" style="border-bottom-style: solid; border-bottom-width: 1" width="6%">
    <p style="margin-right: 4">&nbsp;</td>
    <td align="right" style="border-bottom-style: solid; border-bottom-width: 1" width="6%">
    <font SIZE="2">
    <p style="margin-right: 4">0.3:1</font></td>
    <td align="right" style="border-bottom-style: solid; border-bottom-width: 1" width="6%">
    <p style="margin-right: 4">&nbsp;</td>
    <td align="right" style="border-bottom-style: solid; border-bottom-width: 1" width="6%">
    <font SIZE="2">
    <p style="margin-right: 4">0.2:1</font></td>
  </tr>
</table>
<font SIZE="2">
<p align="justify">The terms of the revolving credit facility require the
Company to maintain a net debt to EBITDA ratio below 3.0:1, although this limit
may be exceeded under certain circumstances. The Company used its revolving
credit facility to finance the acquisition of Prewett, which closed on October
15, 2007. The financing of the acquisition resulted in debt leverage, which is
well below the Company's maximum net debt to EBITDA ratio. The Company does not
currently plan to refinance its revolving credit facility, or a portion thereof,
with debt of longer maturities or to raise additional equity capital. </p>
<p align="justify">In order to maintain or adjust its capital structure, the
Company, upon approval from its Board of Directors, may issue or repay long-term
debt, issue shares, repurchase shares, pay dividends or undertake other
activities as deemed appropriate under the specific circumstances. The Company
does not currently pay a dividend. However, the Company's Board of Directors
periodically evaluates the merits of introducing a dividend. </p>
<p align="justify">The Company is not subject to any capital requirements
imposed by a regulator. </p>
<p align="center">20</p>
</font>
<hr color="#000000" SIZE="5"><p Style='page-break-before:always'>
<table border="0" cellpadding="0" cellspacing="0" style="border-collapse: collapse" bordercolor="#111111" width="100%" height="45">
  <tr>
    <td width="50%" height="26"><font size="2">
    <img border="0" src="gildan2.jpg" width="84" height="26"></font></td>
    <td width="50%" height="26">&nbsp;</td>
  </tr>
  <tr>
    <td width="50%" height="19">&nbsp;</td>
    <td width="50%" height="19"><font SIZE="2" color="#808080">
    <p align="right"><b>NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS</b></font></td>
  </tr>
</table>
<font SIZE="2"><b>
<p>12. Income taxes: </p>
</b>
<p ALIGN="JUSTIFY">The Canada Revenue Agency (&quot;CRA&quot;) is currently conducting an
audit of the Company's income tax returns for its 2000, 2001, 2002 and 2003
fiscal years, the scope of which includes a review of transfer pricing and the
allocation of income between the Company's Canadian legal entity and its foreign
subsidiaries. In the third quarter of fiscal 2008, management met with the CRA
for the first time to discuss preliminary transfer pricing audit issues and, in
particular, explain the roles and responsibilities performed in the Company's
foreign subsidiaries where the majority of its taxable income is earned. The
Company is continuing its discussion with the CRA and is confident that the
merits of its transfer pricing methodology<i>, </i>which is supported by annual
transfer pricing studies conducted by external experts, and the economic
substance of its legal and operating structure support its tax filings. While
the outcome of the audit cannot be predicted with certainty, the Company
believes that its tax filing positions will be sustained and that the final
resolution of this matter will not materially affect the Company's results of
operations or financial position. </p>
<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>
<b>
<p>13. Contingencies: </p>
</b>
<p ALIGN="JUSTIFY">The Company and certain of its senior officers have been
named as defendants in a number of proposed class action lawsuits filed in the
United States District Court for the Southern District of New York. These U.S.
lawsuits will likely be consolidated into one proposed class action with a lead
plaintiff. A proposed class action has also been filed in the Ontario Superior
Court of Justice and a petition for authorization to commence a class action has
been filed in the Quebec Superior Court. Each of these U.S. and Canadian
lawsuits, which have yet to be certified as a class action by the respective
courts at this stage, seek to represent a class comprised of persons who
acquired the Company's common shares between August 2, 2007 and April 29, 2008
and allege, among other things, that the defendants misrepresented the Company's
financial prospects in its financial guidance concerning the 2008 fiscal year,
subsequently revised on April 29, 2008. The U.S. lawsuits are based on United
States federal securities laws. In addition to pursuing common law claims, the
Ontario action proposes to seek leave from the Ontario court to also bring
statutory misrepresentation civil liability claims under Ontario's <i>Securities
Act</i>. The Company strongly contests the basis upon which these actions are
predicated and intends to vigorously defend its position. However, due to the
inherent uncertainties of litigation, it is not possible to predict the final
outcome of these lawsuits or determine the amount of any potential losses, if
any. No provision for contingent loss has been recorded in the interim
consolidated financial statements. </p>
<b>
<p>14. 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>
</font>
<table CELLSPACING="0" BORDER="0" WIDTH="100%" cellpadding="0" style="border-collapse: collapse" bordercolor="#111111">
  <tr>
    <td>&nbsp;</td>
    <td COLSPAN="2" align="center" nowrap width="8%"><font SIZE="2"><b>Three months
    ended</b></font></td>
    <td align="center" colspan="2" nowrap width="8%"><font SIZE="2"><b>Nine months
    ended</b></font></td>
  </tr>
  <tr>
    <td><font SIZE="2">The company has two customers accounting for
    at</font></td>
    <td WIDTH="8%" align="center" nowrap>
    <p align="right"><font SIZE="2">July 6,</font></td>
    <td WIDTH="8%" align="center" nowrap>
    <p align="right"><font SIZE="2">July 1,</font></td>
    <td WIDTH="8%" align="center" nowrap>
    <p align="right"><font SIZE="2">July 6,</font></td>
    <td WIDTH="8%" align="center" nowrap>
    <p align="right"><font SIZE="2">July 1,</font></td>
  </tr>
  <tr>
    <td style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2">&nbsp;&nbsp; least 10% of total sales:</font></td>
    <td WIDTH="8%" align="center" style="border-bottom-style: solid; border-bottom-width: 1" nowrap>
    <p align="right">
    <font SIZE="2">2008</font></td>
    <td WIDTH="8%" align="center" style="border-bottom-style: solid; border-bottom-width: 1" nowrap>
    <p align="right">
    <font SIZE="2">2007</font></td>
    <td WIDTH="8%" align="center" style="border-bottom-style: solid; border-bottom-width: 1" nowrap>
    <p align="right">
    <font SIZE="2">2008</font></td>
    <td WIDTH="8%" align="center" style="border-bottom-style: solid; border-bottom-width: 1" nowrap>
    <p align="right">
    <font SIZE="2">2007</font></td>
  </tr>
  <tr>
    <td style="border-top-style: solid; border-top-width: 1">
    <font SIZE="2">Company A</font></td>
    <td WIDTH="8%" align="right" style="border-top-style: solid; border-top-width: 1">
    <font SIZE="2">25.1%</font></td>
    <td WIDTH="8%" align="right" style="border-top-style: solid; border-top-width: 1">
    <font SIZE="2">22.2%</font></td>
    <td WIDTH="8%" align="right" style="border-top-style: solid; border-top-width: 1">
    <font SIZE="2">23.2%</font></td>
    <td WIDTH="8%" align="right" style="border-top-style: solid; border-top-width: 1">
    <font SIZE="2">22.2%</font></td>
  </tr>
  <tr>
    <td style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2">Company B</font></td>
    <td WIDTH="8%" align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2">11.7%</font></td>
    <td WIDTH="8%" align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2">2.6%</font></td>
    <td WIDTH="8%" align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2">15.5%</font></td>
    <td WIDTH="8%" align="right" style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2">5.5%</font></td>
  </tr>
  <tr>
    <td style="border-top-style: solid; border-top-width: 1">&nbsp;</td>
    <td align="right" style="border-top-style: solid; border-top-width: 1" width="8%">&nbsp;</td>
    <td align="right" style="border-top-style: solid; border-top-width: 1" width="8%">&nbsp;</td>
    <td align="right" style="border-top-style: solid; border-top-width: 1" width="8%">&nbsp;</td>
    <td align="right" style="border-top-style: solid; border-top-width: 1" width="8%">&nbsp;</td>
  </tr>
  <tr>
    <td><font SIZE="2">Sales were derived from customers located in
    the</font></td>
    <td align="right" width="8%">&nbsp;</td>
    <td align="right" width="8%">&nbsp;</td>
    <td align="right" width="8%">&nbsp;</td>
    <td align="right" width="8%">&nbsp;</td>
  </tr>
  <tr>
    <td style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2">&nbsp;&nbsp; following geographic areas:</font></td>
    <td align="right" style="border-bottom-style: solid; border-bottom-width: 1" width="8%">&nbsp;</td>
    <td align="right" style="border-bottom-style: solid; border-bottom-width: 1" width="8%">&nbsp;</td>
    <td align="right" style="border-bottom-style: solid; border-bottom-width: 1" width="8%">&nbsp;</td>
    <td align="right" style="border-bottom-style: solid; border-bottom-width: 1" width="8%">&nbsp;</td>
  </tr>
  <tr>
    <td style="border-top-style: solid; border-top-width: 1">
    <font SIZE="2">United States</font></td>
    <td align="right" style="border-top-style: solid; border-top-width: 1" width="8%">
    <font SIZE="2">$ 338,130</font></td>
    <td align="right" style="border-top-style: solid; border-top-width: 1" width="8%">
    <font SIZE="2">$ 255,281</font></td>
    <td align="right" style="border-top-style: solid; border-top-width: 1" width="8%">
    <font SIZE="2">$ 833,230</font></td>
    <td align="right" style="border-top-style: solid; border-top-width: 1" width="8%">
    <font SIZE="2">$ 627,758</font></td>
  </tr>
  <tr>
    <td><font SIZE="2">Canada</font></td>
    <td align="right" width="8%"><font SIZE="2">19,604</font></td>
    <td align="right" width="8%"><font SIZE="2">16,456</font></td>
    <td align="right" width="8%"><font SIZE="2">42,217</font></td>
    <td align="right" width="8%"><font SIZE="2">39,021</font></td>
  </tr>
  <tr>
    <td style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2">Europe and other</font></td>
    <td align="right" style="border-bottom-style: solid; border-bottom-width: 1" width="8%">
    <font SIZE="2">23,040</font></td>
    <td align="right" style="border-bottom-style: solid; border-bottom-width: 1" width="8%">
    <font SIZE="2">19,873</font></td>
    <td align="right" style="border-bottom-style: solid; border-bottom-width: 1" width="8%">
    <font SIZE="2">49,547</font></td>
    <td align="right" style="border-bottom-style: solid; border-bottom-width: 1" width="8%">
    <font SIZE="2">42,794</font></td>
  </tr>
  <tr>
    <td style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 2">&nbsp;</td>
    <td align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 2" width="8%">
    <font SIZE="2">$ 380,774</font></td>
    <td align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 2" width="8%">
    <font SIZE="2">$ 291,610</font></td>
    <td align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 2" width="8%">
    <font SIZE="2">$ 924,994</font></td>
    <td align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 2" width="8%">
    <font SIZE="2">$ 709,573</font></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td align="right" width="8%">&nbsp;</td>
    <td align="right" width="8%">&nbsp;</td>
    <td align="right" width="8%">&nbsp;</td>
    <td align="right" width="8%">&nbsp;</td>
  </tr>
  <tr>
    <td style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2">Sales by major product group:</font></td>
    <td align="right" style="border-bottom-style: solid; border-bottom-width: 1" width="8%">&nbsp;</td>
    <td align="right" style="border-bottom-style: solid; border-bottom-width: 1" width="8%">&nbsp;</td>
    <td align="right" style="border-bottom-style: solid; border-bottom-width: 1" width="8%">&nbsp;</td>
    <td align="right" style="border-bottom-style: solid; border-bottom-width: 1" width="8%">&nbsp;</td>
  </tr>
  <tr>
    <td style="border-top-style: solid; border-top-width: 1">
    <font SIZE="2">Activewear and underwear</font></td>
    <td align="right" style="border-top-style: solid; border-top-width: 1" width="8%">
    <font SIZE="2">$ 306,407</font></td>
    <td align="right" style="border-top-style: solid; border-top-width: 1" width="8%">
    <font SIZE="2">$ 261,087</font></td>
    <td align="right" style="border-top-style: solid; border-top-width: 1" width="8%">
    <font SIZE="2">$ 703,457</font></td>
    <td align="right" style="border-top-style: solid; border-top-width: 1" width="8%">
    <font SIZE="2">$ 603,646</font></td>
  </tr>
  <tr>
    <td style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2">Socks</font></td>
    <td align="right" style="border-bottom-style: solid; border-bottom-width: 1" width="8%">
    <font SIZE="2">74,367</font></td>
    <td align="right" style="border-bottom-style: solid; border-bottom-width: 1" width="8%">
    <font SIZE="2">30,523</font></td>
    <td align="right" style="border-bottom-style: solid; border-bottom-width: 1" width="8%">
    <font SIZE="2">221,537</font></td>
    <td align="right" style="border-bottom-style: solid; border-bottom-width: 1" width="8%">
    <font SIZE="2">105,927</font></td>
  </tr>
  <tr>
    <td style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 2">&nbsp;</td>
    <td align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 2" width="8%">
    <font SIZE="2">$ 380,774</font></td>
    <td align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 2" width="8%">
    <font SIZE="2">$ 291,610</font></td>
    <td align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 2" width="8%">
    <font SIZE="2">$ 924,994</font></td>
    <td align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 2" width="8%">
    <font SIZE="2">$ 709,573</font></td>
  </tr>
</table>
<p align="center"><font size="2">21</font></p>
<hr color="#000000" SIZE="5"><p Style='page-break-before:always'>
<table border="0" cellpadding="0" cellspacing="0" style="border-collapse: collapse" bordercolor="#111111" width="100%" height="45">
  <tr>
    <td width="50%" height="26"><font size="2">
    <img border="0" src="gildan2.jpg" width="84" height="26"></font></td>
    <td width="50%" height="26">&nbsp;</td>
  </tr>
  <tr>
    <td width="50%" height="19">&nbsp;</td>
    <td width="50%" height="19"><font SIZE="2" color="#808080">
    <p align="right"><b>NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS</b></font></td>
  </tr>
</table>
<font SIZE="2"><b>
<p>14. Segmented information (continued): </p>
</b></font>
<table CELLSPACING="0" BORDER="0" WIDTH="100%" cellpadding="0" style="border-collapse: collapse" bordercolor="#111111">
  <tr>
    <td>&nbsp;</td>
    <td align="center" nowrap width="12%" colspan="2">
    <p align="right"><font SIZE="2"><u>July 6, 2008</u></font></td>
    <td COLSPAN="2" align="center" nowrap width="6%">
    <p align="right" style="margin-left: 15"><font SIZE="2"><u>September 30,
    2007</u></font></td>
    <td COLSPAN="2" align="center" nowrap width="6%">
    <p align="right"><font SIZE="2"><u>July 1, 2007</u></font></td>
  </tr>
  <tr>
    <td style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2">Property, plant and equipment by geographic areas are as
    follows:</font></td>
    <td align="center" style="border-bottom-style: solid; border-bottom-width: 1" nowrap width="6%">&nbsp;</td>
    <td align="center" style="border-bottom-style: solid; border-bottom-width: 1" nowrap width="6%">&nbsp;</td>
    <td align="center" style="border-bottom-style: solid; border-bottom-width: 1" nowrap width="6%">&nbsp;</td>
    <td align="center" style="border-bottom-style: solid; border-bottom-width: 1" nowrap width="6%">
    <p align="right">
    <font SIZE="2">(audited)</font></td>
    <td align="center" style="border-bottom-style: solid; border-bottom-width: 1" nowrap width="6%">&nbsp;</td>
    <td align="center" style="border-bottom-style: solid; border-bottom-width: 1" nowrap width="6%">&nbsp;</td>
  </tr>
  <tr>
    <td style="border-top-style: solid; border-top-width: 1">
    <font SIZE="2">Caribbean Basin and Central America</font></td>
    <td align="right" style="border-top-style: solid; border-top-width: 1" width="6%">
    <font SIZE="2">$</font></td>
    <td WIDTH="6%" align="right" style="border-top-style: solid; border-top-width: 1">
    <font SIZE="2">321,613</font></td>
    <td align="right" style="border-top-style: solid; border-top-width: 1" width="6%">
    <font SIZE="2">$</font></td>
    <td WIDTH="6%" align="right" style="border-top-style: solid; border-top-width: 1">
    <font SIZE="2">294,063</font></td>
    <td align="right" style="border-top-style: solid; border-top-width: 1" width="6%">
    <font SIZE="2">$</font></td>
    <td WIDTH="6%" align="right" style="border-top-style: solid; border-top-width: 1">
    <font SIZE="2">276,000</font></td>
  </tr>
  <tr>
    <td><font SIZE="2">United States</font></td>
    <td WIDTH="6%" align="right">&nbsp;</td>
    <td WIDTH="6%" align="right"><font SIZE="2">80,486</font></td>
    <td WIDTH="6%" align="right">&nbsp;</td>
    <td align="right" width="6%"><font SIZE="2">65,399</font></td>
    <td WIDTH="6%" align="right">&nbsp;</td>
    <td align="right" width="6%"><font SIZE="2">69,163</font></td>
  </tr>
  <tr>
    <td style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2">Canada and other</font></td>
    <td WIDTH="6%" align="right" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
    <td align="right" style="border-bottom-style: solid; border-bottom-width: 1" width="6%">
    <font SIZE="2">24,682</font></td>
    <td align="right" style="border-bottom-style: solid; border-bottom-width: 1" width="6%">&nbsp;</td>
    <td align="right" style="border-bottom-style: solid; border-bottom-width: 1" width="6%">
    <font SIZE="2">18,155</font></td>
    <td align="right" style="border-bottom-style: solid; border-bottom-width: 1" width="6%">&nbsp;</td>
    <td align="right" style="border-bottom-style: solid; border-bottom-width: 1" width="6%">
    <font SIZE="2">23,314</font></td>
  </tr>
  <tr>
    <td style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 2">&nbsp;</td>
    <td align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 2" width="6%">
    <font SIZE="2">$</font></td>
    <td align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 2" width="6%">
    <font SIZE="2">426,781</font></td>
    <td align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 2" width="6%">
    <font SIZE="2">$</font></td>
    <td align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 2" width="6%">
    <font SIZE="2">377,617</font></td>
    <td align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 2" width="6%">
    <font SIZE="2">$</font></td>
    <td align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 2" width="6%">
    <font SIZE="2">368,477</font></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td align="right" width="6%">&nbsp;</td>
    <td align="right" width="6%">&nbsp;</td>
    <td align="right" width="6%">&nbsp;</td>
    <td align="right" width="6%">&nbsp;</td>
    <td align="right" width="6%">&nbsp;</td>
    <td align="right" width="6%">&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td align="center" nowrap width="12%" colspan="2">
    <p align="right"><font SIZE="2"><u>July 6, 2008</u></font></td>
    <td COLSPAN="2" align="center" nowrap width="6%">
    <p align="right" style="margin-left: 15"><font SIZE="2"><u>September 30,
    2007</u></font></td>
    <td COLSPAN="2" align="center" nowrap width="6%">
    <p align="right"><font SIZE="2"><u>July 1, 2007</u></font></td>
  </tr>
  <tr>
    <td style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2">Assets held for sale by geographic areas are as follows:</font></td>
    <td align="center" style="border-bottom-style: solid; border-bottom-width: 1" nowrap width="6%">&nbsp;</td>
    <td align="center" style="border-bottom-style: solid; border-bottom-width: 1" nowrap width="6%">&nbsp;</td>
    <td align="center" style="border-bottom-style: solid; border-bottom-width: 1" nowrap width="6%">&nbsp;</td>
    <td align="center" style="border-bottom-style: solid; border-bottom-width: 1" nowrap width="6%">
    <p align="right">
    <font SIZE="2">(audited)</font></td>
    <td align="center" style="border-bottom-style: solid; border-bottom-width: 1" nowrap width="6%">&nbsp;</td>
    <td align="center" style="border-bottom-style: solid; border-bottom-width: 1" nowrap width="6%">&nbsp;</td>
  </tr>
  <tr>
    <td style="border-top-style: solid; border-top-width: 1">
    <font SIZE="2">United States</font></td>
    <td align="right" style="border-top-style: solid; border-top-width: 1" width="6%">
    <font SIZE="2">$</font></td>
    <td align="right" style="border-top-style: solid; border-top-width: 1" width="6%">
    <font SIZE="2">2,200</font></td>
    <td align="right" style="border-top-style: solid; border-top-width: 1" width="6%">
    <font SIZE="2">$</font></td>
    <td align="right" style="border-top-style: solid; border-top-width: 1" width="6%">
    <font SIZE="2">2,278</font></td>
    <td align="right" style="border-top-style: solid; border-top-width: 1" width="6%">
    <font SIZE="2">$</font></td>
    <td align="right" style="border-top-style: solid; border-top-width: 1" width="6%">
    <font SIZE="2">1,934</font></td>
  </tr>
  <tr>
    <td style="border-bottom-style: solid; border-bottom-width: 1">
    <font SIZE="2">Canada and other</font></td>
    <td align="right" style="border-bottom-style: solid; border-bottom-width: 1" width="6%">&nbsp;</td>
    <td align="right" style="border-bottom-style: solid; border-bottom-width: 1" width="6%">
    <font SIZE="2">10,403</font></td>
    <td align="right" style="border-bottom-style: solid; border-bottom-width: 1" width="6%">&nbsp;</td>
    <td align="right" style="border-bottom-style: solid; border-bottom-width: 1" width="6%">
    <font SIZE="2">4,332</font></td>
    <td align="right" style="border-bottom-style: solid; border-bottom-width: 1" width="6%">&nbsp;</td>
    <td align="right" style="border-bottom-style: solid; border-bottom-width: 1" width="6%">
    <font SIZE="2">500</font></td>
  </tr>
  <tr>
    <td style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 2">&nbsp;</td>
    <td align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 2" width="6%">
    <font SIZE="2">$</font></td>
    <td align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 2" width="6%">
    <font SIZE="2">12,603</font></td>
    <td align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 2" width="6%">
    <font SIZE="2">$</font></td>
    <td align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 2" width="6%">
    <font SIZE="2">6,610</font></td>
    <td align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 2" width="6%">
    <font SIZE="2">$</font></td>
    <td align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 2" width="6%">
    <font SIZE="2">2,434</font></td>
  </tr>
</table>
<font FACE="Arial MT" SIZE="2">
<p>Goodwill and intangible assets relate to acquisitions located in the United
States. </p>
</font>
<font SIZE="2">
<p align="center">22</p>
</font>
<hr color="#000000" SIZE="5">

</body>

</html>
</TEXT>
</DOCUMENT>
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<SEQUENCE>3
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