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<SEC-DOCUMENT>0001204459-09-002342.txt : 20091211
<SEC-HEADER>0001204459-09-002342.hdr.sgml : 20091211
<ACCEPTANCE-DATETIME>20091211172714
ACCESSION NUMBER:		0001204459-09-002342
CONFORMED SUBMISSION TYPE:	40-F/A
PUBLIC DOCUMENT COUNT:		12
CONFORMED PERIOD OF REPORT:	20091004
FILED AS OF DATE:		20091211
DATE AS OF CHANGE:		20091211

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:		40-F/A
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-14830
		FILM NUMBER:		091237049

	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>40-F/A
<SEQUENCE>1
<FILENAME>gildan12100940f.htm
<TEXT>


<HTML>
<HEAD>
   <TITLE>Gildan Activewear Inc.: 40-F - Prepared by TNT Filings Inc.</TITLE>

</HEAD>

<BODY style="font-size:10pt;">

<div style="border-top-style: solid; border-top-width: 1; padding-top: 1">

<b><font FACE="Times New Roman PS" size="5">
<hr color="#000000" size="5">
<p align="center">UNITED STATES<br>
SECURITIES AND EXCHANGE COMMISSION <br>
</font><font FACE="Times New Roman PS" SIZE="2">Washington, D.C. 20549 </p>
</font><font FACE="Times New Roman PS" size="5">
<p align="center">FORM 40-F/A<br>
</font>
                                   <font FACE="Times New Roman PS" size="4">
(Amendment No. 1) </p>
</font>
                                   </b>
<table CELLSPACING="0" BORDER="0" WIDTH="100%" cellpadding="0" style="border-collapse: collapse" bordercolor="#111111">
       <tr>
              <td WIDTH="25%"><font FACE="Wingdings" LANG="JA" SIZE="4">
              <p align="center">&#168;</font></td>
              <td WIDTH="75%"><font FACE="Times New Roman PSMT" SIZE="2">
              Registration statement pursuant to Section 12 of the Securities
              Exchange Act of 1934</font></td>
       </tr>
       <tr>
              <td WIDTH="100%" colspan="2" align="center">
              <font FACE="Times New Roman PSMT" SIZE="2">or</font></td>
       </tr>
       <tr>
              <td WIDTH="25%">
              <p align="center"><font FACE="Wingdings" LANG="JA" SIZE="4">&#254;</font></td>
              <td WIDTH="75%"><font FACE="Times New Roman PSMT" SIZE="2">Annual
              report pursuant to Section 13(a) or 15(d) of the Securities
              Exchange Act of 1934</font></td>
       </tr>
</table>
<table CELLSPACING="0" BORDER="0" WIDTH="100%" cellpadding="0" style="border-collapse: collapse" bordercolor="#111111">
       <tr>
              <td WIDTH="50%">&nbsp;</td>
              <td WIDTH="50%">&nbsp;</td>
       </tr>
       <tr>
              <td WIDTH="50%"><font FACE="Times New Roman PS" SIZE="2"><b>For
              Fiscal year ended: October 4, 2009</b></font></td>
              <td WIDTH="50%"><font FACE="Times New Roman PS" SIZE="2"><b>
              <p align="right">Commission File number: 01-14830</b></font></td>
       </tr>
</table>
<table CELLSPACING="0" BORDER="0" WIDTH="100%" cellpadding="0" style="border-collapse: collapse" bordercolor="#111111">
       <tr>
              <td align="center">&nbsp;</td>
       </tr>
       <tr>
              <td align="center"><font SIZE="6"><b>GILDAN ACTIVEWEAR INC.</b></font></td>
       </tr>
       <tr>
              <td align="center"><font SIZE="2"><i>(Exact name of registrant as
              specified in its charter)</i></font></td>
       </tr>
       <tr>
              <td align="center">&nbsp;</td>
       </tr>
       <tr>
              <td align="center"><font SIZE="2"><b>Canada</b></font></td>
       </tr>
       <tr>
              <td align="center"><font SIZE="2"><i>(Province or other
              jurisdiction of incorporation or organization)</i></font></td>
       </tr>
       <tr>
              <td align="center">&nbsp;</td>
       </tr>
       <tr>
              <td align="center"><font SIZE="2"><b>2200, 2250, 2300</b></font></td>
       </tr>
       <tr>
              <td align="center"><font SIZE="2"><i>(Primary standard industrial
              classification code number, if applicable)</i></font></td>
       </tr>
       <tr>
              <td align="center">&nbsp;</td>
       </tr>
       <tr>
              <td align="center"><font SIZE="2"><b>Not Applicable</b></font></td>
       </tr>
       <tr>
              <td align="center"><font SIZE="2"><i>(I.R.S. employer
              identification number, if applicable)</i></font></td>
       </tr>
       <tr>
              <td align="center">&nbsp;</td>
       </tr>
       <tr>
              <td align="center"><font SIZE="2"><b>600 de Maisonneuve Boulevard
              West, Montreal, Quebec, Canada H3A 3J2, (514) 735-2023 </b></font></td>
       </tr>
       <tr>
              <td align="center"><font SIZE="2"><i>(Address and telephone number
              of registrant's principal executive office)</i></font></td>
       </tr>
       <tr>
              <td align="center">&nbsp;</td>
       </tr>
       <tr>
              <td align="center"><font SIZE="2"><b>Puglisi &amp; Associates, 850
              Library Avenue, Suite 204, P.O. Box 885, Newark, Delaware 19715,
              (302) 738-6680</b></font></td>
       </tr>
       <tr>
              <td align="center"><font SIZE="2">(<i>Name, address and telephone
              number of agent for service in the United States</i>)</font></td>
       </tr>
       <tr>
              <td align="center">&nbsp;</td>
       </tr>
       <tr>
              <td align="center"><font SIZE="2">Securities registered pursuant
              to Section 12(b) of the Act:</font></td>
       </tr>
</table>
<table CELLSPACING="0" BORDER="0" WIDTH="100%" cellpadding="0" style="border-collapse: collapse" bordercolor="#111111">
       <tr>
              <td WIDTH="50%" align="center">&nbsp;</td>
              <td WIDTH="50%" align="center">&nbsp;</td>
       </tr>
       <tr>
              <td WIDTH="50%" align="center">
              <font FACE="Times New Roman PSMT" SIZE="2">Title of each class</font></td>
              <td WIDTH="50%" align="center">
              <font FACE="Times New Roman PSMT" SIZE="2">Name of each exchange
              on which registered</font></td>
       </tr>
       <tr>
              <td WIDTH="50%" align="center">
              <font FACE="Times New Roman PS" SIZE="2"><b>Common Shares</b></font></td>
              <td WIDTH="50%" align="center">
              <font FACE="Times New Roman PS" SIZE="2"><b>New York Stock
              Exchange</b></font></td>
       </tr>
       </table>
<font FACE="Times New Roman PSMT" SIZE="2">
<p align="center">Securities registered or to be registered pursuant to Section
12(g) of the Act:&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</font><font FACE="Times New Roman PS" SIZE="2"><b>None</b></font><font FACE="Times New Roman PSMT" SIZE="2">
<br>
Securities for which there is a reporting obligation pursuant to Section 15(d)
of the Act:</font><font FACE="Times New Roman PS" SIZE="2"><b>&nbsp; None </p>
</b></font><font FACE="Times New Roman PSMT" SIZE="2">
<p align="center">For annual reports, indicate by check mark the information
filed with this form: </p>
<table border="0" cellpadding="0" cellspacing="0" style="border-collapse: collapse" bordercolor="#111111" width="100%">
  <tr>
    <td width="25%" align="center">
              <font FACE="Wingdings" LANG="JA" SIZE="4">&#254;</font></td>
    <td width="25%">
              <font FACE="Times New Roman PSMT" SIZE="2">Annual Information Form</font></td>
    <td width="25%">
              <p align="center">
              <font FACE="Wingdings" LANG="JA" SIZE="4">&#254;</font></td>
    <td width="25%">
              <font FACE="Times New Roman PSMT" SIZE="2">Audited Annual
              Financial Statements</font></td>
  </tr>
</table>
<p align="justify">Indicate the number of outstanding shares of each of the
issuer's classes of capital or common stock as of the close of the period
covered by the annual report: </p>
<b>
<p align="center">Common Shares: <br>
120,963,028 </p>
</b>
<p ALIGN="JUSTIFY">Indicate by check mark whether the registrant: (1) has filed
all reports required to be filed by Section 13 or 15(d) of the Exchange Act
during the preceding 12 months (or for such shorter period that the registrant
was required to file such reports); and (2) has been subject to such filing
requirements for the past 90 days. </p>
</font>
<table CELLSPACING="0" BORDER="0" WIDTH="100%" cellpadding="0" style="border-collapse: collapse" bordercolor="#111111">
       <tr>
              <td WIDTH="50%" align="center">
              <font FACE="Times New Roman PSMT" SIZE="2">Yes
              <font FACE="Wingdings" LANG="JA" SIZE="4">&#254;</font></font></td>
              <td WIDTH="50%" align="center">
              <font FACE="Times New Roman PSMT" SIZE="2">No </font><font FACE="Wingdings" LANG="JA" SIZE="4">
              &#168;</font></td>
       </tr>
</table>

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<P align=center>
<u><b><font size="3">Explanatory Note</font></b></u></P> <font SIZE="2">
<p align="justify">This amendment to the Annual Report on Form 40-F for Gildan
Activewear Inc. is being filed to correct a typographical error in Note 14 to
the audited Consolidated Financial Statements that occurred in the transmission
of the original filing dated December 10, 2009.</font> </p>
<P align=center>
&nbsp;</P>

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<P align=center>
&nbsp;</P>
<P align=center>
<IMG
src="logo.jpg"
border=0 width="340" height="69"></P> <BR>
<P align=center><B>GILDAN ACTIVEWEAR INC. <BR><BR>ANNUAL INFORMATION FORM</B><B>
<BR></B><BR>for the year ended October 4, 2009</P>
<P align=center>&nbsp;</P>
<P align=center>&nbsp;</P>
<P align=center>December 9, 2009</P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
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<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0 height="607">

  <TR vAlign=top>
    <TD align=left height="15" >&nbsp; </TD>
    <TD align=center width="91%" height="15">
    <p style="margin-top: 5"><B>GILDAN ACTIVEWEAR INC.</B> </TD>
    <TD align=left width="5%" height="15" >&nbsp; </TD></TR>
  <TR vAlign=top>
    <TD align=left height="15" >&nbsp; </TD>
    <TD align=center width="91%" height="15">
    <p style="margin-top: 5"><B>2009 ANNUAL INFORMATION FORM</B> </TD>
    <TD align=left width="5%" height="15" >&nbsp; </TD></TR>
  <TR vAlign=top>
    <TD align=left height="15" >&nbsp; </TD>
    <TD align=center width="91%" height="15">
    <p style="margin-top: 5"><B>TABLE OF CONTENTS</B> </TD>
    <TD align=left width="5%" height="15" >&nbsp; </TD></TR>
  <TR vAlign=top>
    <TD align=left height="15" >&nbsp; </TD>
    <TD align=left width="91%" height="15">&nbsp; </TD>
    <TD align=center width="5%" height="15" ><B>Page</B> </TD></TR>
  <TR vAlign=top>
    <TD align=left height="15" > </TD>
    <TD align=left width="91%" height="15"> </TD>
    <TD align=left width="5%" height="15" > </TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff height="15" ><B>1.</B> </TD>
    <TD align=left width="91%" bgColor=#e6efff height="15"><B>CORPORATE STRUCTURE</B> </TD>
    <TD align=left width="5%" bgColor=#e6efff height="15" >&nbsp; </TD></TR>
  <TR vAlign=top>
    <TD align=left height="15" >&nbsp; </TD>
    <TD align=left width="91%" height="15"><B>1.1 Name, Address and Incorporation</B> </TD>
    <TD align=center width="5%" height="15" ><B>1</B> </TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff height="15" >&nbsp; </TD>
    <TD align=left width="91%" bgColor=#e6efff height="15"><B>1.2 Intercorporate
      Relationships</B> </TD>
    <TD align=center width="5%" bgColor=#e6efff height="15" ><B>2</B> </TD></TR>
  <TR vAlign=top>
    <TD align=left height="15" > </TD>
    <TD align=left width="91%" height="15"> </TD>
    <TD align=center width="5%" height="15" > </TD></TR>
  <TR vAlign=top>
    <TD align=left height="15" ><B>2.</B> </TD>
    <TD align=left width="91%" height="15"><B>GENERAL DEVELOPMENT OF THE BUSINESS</B> </TD>
    <TD align=center width="5%" height="15" >&nbsp; </TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff height="14" >&nbsp; </TD>
    <TD align=left width="91%" bgColor=#e6efff height="14"><B>2.1 Recent Developments</B>
    </TD>
    <TD align=center width="5%" bgColor=#e6efff height="14" ><B>2</B> </TD></TR>
  <TR vAlign=top>
    <TD align=left height="15" >&nbsp; </TD>
    <TD align=left width="91%" height="15"><B>2.2 Developments in Fiscal 2009</B> </TD>
    <TD align=center width="5%" height="15" ><B>3</B> </TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff height="15" >&nbsp; </TD>
    <TD align=left width="91%" bgColor=#e6efff height="15"><B>2.3 Developments in Fiscal
      2008</B> </TD>
    <TD align=center width="5%" bgColor=#e6efff height="15" ><B>4</B> </TD></TR>
  <TR vAlign=top>
    <TD align=left height="15" >&nbsp; </TD>
    <TD align=left width="91%" height="15"><B>2.4 Developments in Fiscal 2007</B> </TD>
    <TD align=center width="5%" height="15" ><B>5</B> </TD></TR>
  <TR vAlign=top>
    <TD align=left height="15" > </TD>
    <TD align=left width="91%" height="15"> </TD>
    <TD align=center width="5%" height="15" > </TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff height="15" ><B>3.</B> </TD>
    <TD align=left width="91%" bgColor=#e6efff height="15"><B>DESCRIPTION OF THE
      BUSINESS</B> </TD>
    <TD align=center width="5%" bgColor=#e6efff height="15" >&nbsp; </TD></TR>
  <TR vAlign=top>
    <TD align=left height="15" >&nbsp; </TD>
    <TD align=left width="91%" height="15"><B>3.1 Business Overview</B> </TD>
    <TD align=center width="5%" height="15" ><B>6</B> </TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff height="15" >&nbsp; </TD>
    <TD align=left width="91%" bgColor=#e6efff height="15"><B>3.2 Risk Factors</B> </TD>
    <TD align=center width="5%" bgColor=#e6efff height="15" ><B>13</B> </TD></TR>
  <TR vAlign=top>
    <TD align=left height="15" >&nbsp; </TD>
    <TD align=left width="91%" height="15"><B>3.3 Employees</B> </TD>
    <TD align=center width="5%" height="15" ><B>13</B> </TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff height="15" >&nbsp;</TD>
    <TD align=left width="91%" bgColor=#e6efff height="15">&nbsp;</TD>
    <TD align=center width="5%" bgColor=#e6efff height="15" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff height="15" ><B>4.</B> </TD>
    <TD align=left width="91%" bgColor=#e6efff height="15"><B>DIVIDEND POLICY</B> </TD>
    <TD align=center width="5%" bgColor=#e6efff height="15" ><B>14</B> </TD></TR>
  <TR vAlign=top>
    <TD align=left height="28" >
    <p style="margin-top: 10pt"><B>5.</B> </TD>
    <TD align=left width="91%" height="28">
    <p style="margin-top: 10pt"><B>CAPITAL STRUCTURE</B> </TD>
    <TD align=center width="5%" height="28" >
    <p style="margin-top: 10pt"><B>14</B> </TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff height="28" >
    <p style="margin-top: 10pt"><B>6.</B> </TD>
    <TD align=left width="91%" bgColor=#e6efff height="28">
    <p style="margin-top: 10pt"><B>MARKET FOR SECURITIES</B>
</TD>
    <TD align=center width="5%" bgColor=#e6efff height="28" >
    <p style="margin-top: 10pt"><B>15</B> </TD></TR>
  <TR vAlign=top>
    <TD align=left height="28" >
    <p style="margin-top: 10pt"><B>7.</B> </TD>
    <TD align=left width="91%" height="28">
    <p style="margin-top: 10pt"><B>DIRECTORS AND OFFICERS</B> </TD>
    <TD align=center width="5%" height="28" >
    <p style="margin-top: 10pt"><B>16</B> </TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff height="28" >
    <p style="margin-top: 10pt"><B>8.</B> </TD>
    <TD align=left width="91%" bgColor=#e6efff height="28">
    <p style="margin-top: 10pt"><B>AUDIT COMMITTEE
      DISCLOSURE</B> </TD>
    <TD align=center width="5%" bgColor=#e6efff height="28" >
    <p style="margin-top: 10pt"><B>19</B> </TD></TR>
  <TR vAlign=top>
    <TD align=left height="28" >
    <p style="margin-top: 10pt"><B>9.</B> </TD>
    <TD align=left width="91%" height="28">
    <p style="margin-top: 10pt"><B>LEGAL PROCEEDINGS</B> </TD>
    <TD align=center width="5%" height="28" >
    <p style="margin-top: 10pt"><B>21</B> </TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff height="28" >
    <p style="margin-top: 10pt"><B>10.</B> </TD>
    <TD align=left width="91%" bgColor=#e6efff height="28">
    <p style="margin-top: 10pt"><B>TRANSFER AGENT AND
      REGISTRAR</B> </TD>
    <TD align=center width="5%" bgColor=#e6efff height="28" >
    <p style="margin-top: 10pt"><B>22</B> </TD></TR>
  <TR vAlign=top>
    <TD align=left height="28" >
    <p style="margin-top: 10pt"><B>11.</B> </TD>
    <TD align=left width="91%" height="28">
    <p style="margin-top: 10pt"><B>MATERIAL CONTRACTS</B> </TD>
    <TD align=center width="5%" height="28" >
    <p style="margin-top: 10pt"><B>22</B> </TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff height="28" >
    <p style="margin-top: 10pt"><B>12.</B> </TD>
    <TD align=left width="91%" bgColor=#e6efff height="28">
    <p style="margin-top: 10pt"><B>INTERESTS OF EXPERTS</B> </TD>
    <TD align=center width="5%" bgColor=#e6efff height="28" >
    <p style="margin-top: 10pt"><B>22</B> </TD></TR>
  <TR vAlign=top>
    <TD align=left height="28" >
    <p style="margin-top: 10pt"><B>13.</B> </TD>
    <TD align=left width="91%" height="28">
    <p style="margin-top: 10pt"><B>FORWARD-LOOKING STATEMENTS</B> </TD>
    <TD align=center width="5%" height="28" >
    <p style="margin-top: 10pt"><B>22</B> </TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff height="28" >
    <p style="margin-top: 10pt"><B>14.</B> </TD>
    <TD align=left width="91%" bgColor=#e6efff height="28">
    <p style="margin-top: 10pt"><B>ADDITIONAL INFORMATION</B>
    </TD>
    <TD align=center width="5%" bgColor=#e6efff height="28" >
    <p style="margin-top: 10pt"><B>23</B> </TD></TR>
  <TR vAlign=top>
    <TD align=left colSpan=2 height="28">
    <p style="margin-top: 10pt"><B>APPENDIX A &#150; MANDATE OF THE AUDIT AND FINANCE
      COMMITTEE</B> </TD>
    <TD align=center width="5%" height="28" >
    <p style="margin-top: 10pt"><B>24</B>
</TD></TR></TABLE><BR>
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<P align=justify><I>This Annual Information Form is dated December 9, 2009 and,
except as otherwise indicated, the information contained herein is given as of
December 9, 2009. </I></P>
<P align=justify><I>Unless otherwise indicated, all dollar amounts set forth
herein are expressed in U.S. dollars and all financial information set forth
herein is prepared in accordance with Canadian generally accepted accounting
principles.</I></P>
<P align=justify><I>Unless otherwise indicated, all references to share prices,
trading volumes and per share measures are adjusted, on a retroactive basis, to
reflect all stock splits. </I></P>
<P align=justify><I>In this Annual Information Form, &#147;Gildan&#148;, the &#147;Company&#148; or
the words &#147;we&#148;, &#147;our&#148; and &#147;us&#148; refer, depending on the context, either to Gildan
Activewear Inc. or to Gildan Activewear Inc. together with its subsidiaries and
joint venture. </I></P>
<P align=justify><I>The information appearing in the extracts of the documents
listed below and specifically referred to in this Annual Information Form is
incorporated herein by reference: </I></P>
<UL style="TEXT-ALIGN: justify">
  <LI>
  <p style="margin-bottom: 10"><I>Audited Consolidated Financial Statements as at and for the year ended
  October 4, 2009 (the &#147;2009</I> <I>Financial Statements&#148;);</I>
  <LI>
  <p style="margin-bottom: 10"><I>Management&#146;s Discussion and Analysis for the year ended October 4, 2009
  (the &#147;2009 Annual</I> <I>MD&amp;A&#148;); and</I>
  <LI>
  <p style="margin-bottom: 10"><I>2008 Notice of Annual Meeting of Shareholders and Management Proxy
  Circular (the &#147;Circular&#148;).</I> </LI></UL>
<P align=justify><I>The foregoing documents are available on the SEDAR website
at www.sedar.com, on the EDGAR website at www.sec.gov and on the Company&#146;s
website at www.gildan.com. </I></P>
<P align=justify><I>This Annual Information Form contains certain
forward-looking statements, which are based on Gildan&#146;s current expectations,
estimates, projections and assumptions and were made by Gildan in light of its
experience and its perception of historical trends. Results indicated in
forward-looking statements may differ materially from the actual results. Please
refer to the cautionary statement on pages 22 and 23 of this Annual Information
Form for further explanation.</I></P>
<P align=justify><B>1.  </B></P>
<P align=justify style="margin-left: 45pt; margin-top: -25.5pt"><B>CORPORATE STRUCTURE </B></P>
<P align=justify><BR><B>1.1 </B></P>
<P align=justify style="margin-left: 45pt; margin-top: -25.5pt"><B>Name, Address
and Incorporation</B><BR></P>
<P align=justify>We were incorporated on May 8, 1984 pursuant to the <I>Canada
Business Corporations Act</I> under the name of Textiles Gildan Inc. At our
inception, we focused our activities on the manufacture of textiles and produced
and sold finished fabric as a principal product-line. In 1992, we redefined our
operating strategy and, by 1994, our operations focused exclusively on the
manufacture and sale of activewear in the screenprint channel. In March 1995, we
changed our name to Gildan Activewear Inc./Les V&#234;tements de Sports Gildan Inc.
In 2005, we changed our French name to Les V&#234;tements de Sport Gildan Inc. </P>
<P align=justify>In June 1998, in conjunction with a planned initial public
offering, we filed Articles of Amendment to, among other things, remove the
private company restrictions contained in our charter documents and change the
structure of our authorized share capital. On June 17, 1998, we completed our
initial public offering of an aggregate of 3,000,000 Class A Subordinate Voting
shares at Cdn$10.29 per share, on a pre-split basis, for total gross proceeds of
Cdn$30,880,500.</P>
<P align=justify>On February 2, 2005, we filed Articles of Amendment in order
to, among other things, (i) create a new class of common shares (the &#147;Common
Shares&#148;), (ii) change each of the issued and outstanding Class A Subordinate
Voting shares into one of the newly-created Common Shares, and (iii) remove the
Class B Multiple Voting shares and the Class A Subordinate Voting shares as well
as the rights, privileges, restrictions and conditions attaching thereto.</P>
<P align=justify>Our principal executive offices and registered office are
located at 600 de Maisonneuve Boulevard West, 33<SUP>rd </SUP>Floor, Montreal,
Qu&#233;bec, Canada H3A 3J2, and our telephone number at that address is (514)
735-2023. </P>
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<P align=justify><B>1.2  </B></P>
<P align=justify style="margin-left: 45pt; margin-top: -25.5pt"><B>Intercorporate Relationships</B><BR></P>
<P align=justify>The following table indicates our principal subsidiaries, their
jurisdiction of incorporation and the percentage of voting securities that we
beneficially own or over which we exercise direct or indirect control: </P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD align=left>&nbsp; </TD>
    <TD align=left width="33%">&nbsp; </TD>
    <TD align=center width="33%"><B>Percentage of Voting Securities or</B>
  </TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; </TD>
    <TD align=left width="33%">&nbsp; </TD>
    <TD align=center width="33%"><B>Partnership Interests that Gildan</B>
  </TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;
      &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<B>Subsidiary</B>
    </TD>
    <TD align=center width="33%"><B>Jurisdiction of Incorporation</B> </TD>
    <TD align=center width="33%"><B>held as at</B> </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="33%">&nbsp;
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center
      width="33%"><B>December 9, 2009</B> </TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>
    <p style="margin-top: 10">Gildan Activewear SRL </TD>
    <TD align=center width="33%" bgColor=#e6efff>
    <p style="margin-top: 10">Barbados </TD>
    <TD align=center width="33%" bgColor=#e6efff>
    <p style="margin-top: 10">100% </TD></TR>
  <TR vAlign=top>
    <TD align=left>
    <p style="margin-top: 10">Gildan USA Inc. </TD>
    <TD align=center width="33%">
    <p style="margin-top: 10">Delaware </TD>
    <TD align=center width="33%">
    <p style="margin-top: 10">100% </TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>
    <p style="margin-top: 10">Gildan Choloma Textiles, S. de R.L. </TD>
    <TD align=center width="33%" bgColor=#e6efff>
    <p style="margin-top: 10">Honduras </TD>
    <TD align=center width="33%" bgColor=#e6efff>
    <p style="margin-top: 10">100% </TD></TR>
  <TR vAlign=top>
    <TD align=left>
    <p style="margin-top: 10">Gildan Activewear Dominican Republic Textile Company Inc.
    </TD>
    <TD align=center width="33%">
    <p style="margin-top: 10">Barbados </TD>
    <TD align=center width="33%">
    <p style="margin-top: 10">100% </TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>
    <p style="margin-top: 10">Gildan Activewear Honduras Textiles
      Company, S. de R.L. </TD>
    <TD align=center width="33%" bgColor=#e6efff>
    <p style="margin-top: 10">Honduras </TD>
    <TD align=center width="33%" bgColor=#e6efff>
    <p style="margin-top: 10">100% </TD></TR>
  <TR vAlign=top>
    <TD align=left>
    <p style="margin-top: 10">Gildan Honduras Hosiery Factory, S. de R.L. </TD>
    <TD align=center width="33%">
    <p style="margin-top: 10">Honduras </TD>
    <TD align=center width="33%">
    <p style="margin-top: 10">100% </TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>
    <p style="margin-top: 10">Gildan Activewear Properties (Dominican
      Republic) Inc. </TD>
    <TD align=center width="33%" bgColor=#e6efff>
    <p style="margin-top: 10">Barbados </TD>
    <TD align=center width="33%" bgColor=#e6efff>
    <p style="margin-top: 10">100% </TD></TR>
  <TR vAlign=top>
    <TD align=left>
    <p style="margin-top: 10">Gildan Activewear (Eden) Inc. </TD>
    <TD align=center width="33%">
    <p style="margin-top: 10">North Carolina </TD>
    <TD align=center width="33%">
    <p style="margin-top: 10">100% </TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>
    <p style="margin-top: 10">Gildan Activewear (UK) Limited </TD>
    <TD align=center width="33%" bgColor=#e6efff>
    <p style="margin-top: 10">United Kingdom </TD>
    <TD align=center width="33%" bgColor=#e6efff>
    <p style="margin-top: 10">100% </TD></TR>
  <TR vAlign=top>
    <TD align=left>
    <p style="margin-top: 10">V.I. Prewett &amp; Son, Inc. </TD>
    <TD align=center width="33%">
    <p style="margin-top: 10">Alabama </TD>
    <TD align=center width="33%">
    <p style="margin-top: 10">100% </TD></TR></TABLE>
<P align=justify>The subsidiaries that have been omitted do not represent
individually more than 10% of the consolidated assets and 10% of the
consolidated sales and operating revenues of Gildan, or in the aggregate more
than 20% of the total consolidated assets and the consolidated sales and
operating revenues as at and for the year ended October 4, 2009. </P>
<P align=justify><B>2. </B></P>
<P align=justify style="margin-left: 45pt; margin-top: -25.5pt"><B>GENERAL
DEVELOPMENT OF THE BUSINESS</B></P>
<P align=justify>The following section describes how our business has evolved in
the last three completed financial years and lists key events that have
influenced the development of our business. </P>
<P align=justify><B>2.1 </B></P>
<P align=justify style="margin-left: 45pt; margin-top: -25.5pt"><B>Recent Developments </B></P>
<P align=justify><BR><B>Acquisition of New
Distribution Centre</B><BR></P>
<P align=justify>On November 17, 2009, the Company completed the acquisition of
a state-of-the-art distribution centre and office building in Charleston, South
Carolina, for approximately $20 million. This facility will be utilized to
support the Company&#146;s retail strategy, and is also expected to generate cost
reductions and efficiencies as a result of consolidating existing distribution
capacity.</P>
<P align=justify><B>New Retail Programs for Fiscal 2010</B><BR></P>
<P align=justify>The Company has continued to build on the successful
performance of its private label sock programs and has been awarded a major
strategic underwear program as well as a smaller underwear program and three
further sock programs, which are all expected to begin shipment in the second
quarter of fiscal 2010. The Company is currently in active discussions to secure
further opportunities with mass retailers for new programs during fiscal 2010.
The annualized full year incremental sales revenue from the additional new
mass-market retail programs already obtained by the Company in fiscal 2010 is
currently estimated to be approximately U.S. $70 million. In addition, the
Company is continuing to achieve further penetration with its Gildan branded
products in regional retail chains.</P>
<P align=center>2</P>
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<P align=justify><B>2.2  </B></P>
<P align=justify style="margin-left: 45pt; margin-top: -25.5pt"><B>Developments in Fiscal 2009</B></P>
<P align=justify><B>Economic
Environment </B><BR></P>
<UL style="TEXT-ALIGN: justify">
  <LI>
  <p style="margin-bottom: 10">During fiscal 2009, the severe downturn in the overall economic
  environment resulted in a dramatic curtailment of consumer and corporate
  spending which  negatively impacted demand for our products in the U.S. and other
  international screenprint markets, and also resulted in significant inventory
  destocking at the U.S. distributor level. Weaker demand and customer inventory
  reductions also occurred in the mass-market retail channel.
  <LI>
  <p style="margin-bottom: 10">During fiscal 2009, we took a number of steps in response to the downturn
  in the economy, in order to prudently manage our receivables, inventory levels
  and capital expenditures. We experienced a significantly higher than usual
  build-up of activewear inventories in the first half of fiscal 2009 due to the
  decline in our sales combined with the reduction of inventories at the
  customer level. As a result, we took production downtime at most of our
  production facilities in order to better align our inventory levels with
  projected sales demand. We also achieved significant reductions in our sock
  inventories, as planned, due in part to improved supply chain efficiencies. We
  managed our credit risk cautiously, as we balanced short-term market share
  considerations in relation to increased customer credit exposure, including
  carefully managing our customer accounts and promotional programs, such as our
  decision not to replenish our largest wholesale distributor during the second
  quarter of fiscal 2009 as it underwent a process to restructure its debt
  financing. In addition, we reduced the use of extended payment terms that we
  typically offer for certain seasonal products in the second half of our fiscal
  year. The Company decided to proceed cautiously on capacity expansion projects
  previously announced and delayed the completion of its Rio Nance 4 sock
  facility and deferred the construction of its third activewear facility (Rio
  Nance 5) in Honduras until the economic outlook in support of further major
  capacity expansion became clearer.
  <LI>
  <p style="margin-bottom: 10">The Company is currently planning for fiscal 2010 on the basis of the
  continuation of weak macro economic conditions. </LI></UL>
<P align=justify><B>Growth Strategy</B><BR></P>
<UL style="TEXT-ALIGN: justify">
  <LI>
  <p style="margin-bottom: 10">In spite of the challenging economic environment in fiscal 2009, we
  continued to increase our leading market share in all of the product
  categories in which we compete in the U.S. wholesale distributor channel and
  increased our sales in international and other screenprint markets,
  particularly in Western Europe, the U.K., Asia/Pacific and Mexico.
  <LI>
  <p style="margin-bottom: 10">For the first nine months of calendar 2009, we increased our overall
  market share in the U.S. screenprint channel to 56.6%. In calendar 2008, our
  overall market share in this channel was 51.9%. </LI></UL>
<P align=justify><B>Manufacturing and Distribution Cost Reductions</B><BR></P>
<UL style="TEXT-ALIGN: justify">
  <LI>
  <p style="margin-bottom: 10">During fiscal 2009 we continued to consolidate our manufacturing
  operations in our manufacturing hub in Central America as we transitioned our
  U.S. sock finishing operations, which were purchased as part of the V.I.
  Prewett &amp; Son, Inc. (&#147;Prewett&#148;) acquisition, to a leased sock finishing
  facility in Honduras.
  <LI>
  <p style="margin-bottom: 10">During fiscal 2010 the Company expects to complete its second sock
  manufacturing facility in Honduras, Rio Nance 4, which was delayed during
  fiscal 2009, as a result of the weak economic environment, as discussed under
  the heading &#147;Economic Environment&#148;. The facility is expected to begin
  operations by the end of fiscal 2010. During this fiscal year we started to
  construct a biomass steam generation system in the Dominican Republic which is
  expected to contribute to the reduction of our energy consumption and related
  costs. The facility is expected to be operational by February 2010. </LI></UL>
<P align=center>3</P>
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<UL style="TEXT-ALIGN: justify">
  <LI>In early fiscal 2009 we were granted a business license by the Chinese
  government to operate as Gildan (China) Trading Co., Ltd. This corporation has
  been established to import and sell Gildan products to customers in mainland
  China. In fiscal 2009, we moved our distribution activities from Shenzhen,
  China to a new distribution centre in China near Shanghai to better service
  the initial customer base predominantly located in the Northern provinces of
  China. Gildan is focusing on building its brand in both the retail and
  screenprint channels in China. </LI></UL>
<P align=justify><B>Tax</B><BR></P>
<UL style="TEXT-ALIGN: justify">
  <LI>In the third quarter of fiscal 2009 the Canada Revenue Agency (&#147;CRA&#148;)
  completed its audit of the 2004, 2005 and 2006 taxation years and there were
  no significant adjustments to the Company&#146;s income tax returns. </LI></UL>
<P align=justify><B>2.3  </B></P>
<P align=justify style="margin-left: 45pt; margin-top: -25.5pt"><B>Developments
in Fiscal 2008</B></P>
<P align=justify><B>Acquisition
of U.S. Sock Manufacturer</B><BR></P>
<UL style="TEXT-ALIGN: justify">
  <LI>On October 15, 2007, we acquired 100% of the common shares of Prewett, a
  large U.S. supplier of basic family socks to U.S. mass-market and regional
  retailers. Prewett&#146;s corporate headquarters are located in Fort Payne,
  Alabama. The aggregate purchase price was $128 million, which was comprised of
  cash consideration of $125.3 million, a deferred payment of $1.2 million
  disbursed in fiscal 2009 and transaction costs of $1.5 million. The purchase
  agreement provided for an additional purchase consideration of up to $10
  million contingent on specified future events, which was paid into escrow by
  the Company. The purchase price was paid in cash at closing and was financed
  out of our revolving long-term credit facility. With this acquisition, we are
  now one of the leading suppliers of socks in the U.S. mass-market retail
  channel. </LI></UL>
<P align=justify><B>Growth Strategy</B><BR></P>
<UL style="TEXT-ALIGN: justify">
  <LI>
  <p style="margin-bottom: 10">We continued to achieve market share gains in the U.S. screenprint market.

  <LI>
  <p style="margin-bottom: 10">We also made progress in our plans to penetrate the U.S. mass retail
  market for high-volume, basic, frequently replenished, non-fashion family
  apparel. Our acquisition of Prewett further strengthened our positioning as a
  supplier of socks for the retail channel.
  <LI>
  <p style="margin-bottom: 10">During fiscal 2008, we began shipments under our first underwear program
  with a U.S. national mass-market retailer. </LI></UL>
<P align=justify><B>Tax</B><BR></P>
<UL style="TEXT-ALIGN: justify">
  <LI>The CRA completed its audit of our income tax returns for our 2000, 2001,
  2002 and 2003 fiscal years, the scope of which included a review of transfer
  pricing and the allocation of income between the Company&#146;s Canadian legal
  entity and its foreign subsidiaries. On December 10, 2008, the Company reached
  a final agreement with the CRA which resulted in a tax reassessment related to
  the restructuring of our international wholesale business and the related
  transfer of our assets to our Barbados subsidiary, which occurred in fiscal
  1999. The terms of the agreement were accounted for in the fourth quarter of
  fiscal 2008 through a charge to income tax expense of $26.9 million, including
  a provision for provincial taxes, and a reclassification of $17.3 million of
  future income tax liabilities to income taxes payable. There were no penalties
  assessed as part of the agreement and there were no other significant income
  tax adjustments to reported taxable income for the years under audit. </LI></UL>
<P align=justify><B>Manufacturing Operations</B><BR></P>
<UL style="TEXT-ALIGN: justify">
  <LI>In fiscal 2008, we completed the ramp up of our second activewear facility
  and of our integrated sock manufacturing facility, both located in Rio Nance,
  Honduras. </LI></UL>
<P align=center>4</P>
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<P align=justify><B>Distribution</B></P>
<UL style="TEXT-ALIGN: justify">
  <LI>
  <p style="margin-bottom: 10">In connection with our acquisition of Prewett in fiscal 2008, two Prewett
  facilities, located in Fort Payne, Alabama, were added to our distribution
  network. These two Prewett facilities also service our sock distribution in
  the retail channel.
  <LI>
  <p style="margin-bottom: 10">In May 2008, the Company announced its intention to build a new
  distribution centre in Honduras to support our growth, handle value-added
  labour intensive activities for mass-market retail customers and to support
  direct shipments to some of our markets. </LI></UL>
<P align=justify><B>Corporate Office </B></P>
<UL style="TEXT-ALIGN: justify">
  <LI>In fiscal 2008, we moved our corporate head office to leased premises
  located in Montreal, Qu&#233;bec. </LI></UL>
<P align=justify><B>2.4 </B></P>
<P align=justify style="margin-left: 45pt; margin-top: -25.5pt"><B>Developments
in Fiscal 2007</B></P>
<P align=justify><B>Growth Strategy</B></P>
<UL style="TEXT-ALIGN: justify">
  <LI>
  <p style="margin-bottom: 10">We continued to achieve market share gains in the U.S. screenprint market.

  <LI>
  <p style="margin-bottom: 10">We also made progress in our plans to penetrate the U.S. mass retail
  market for high-volume, basic, frequently replenished, non-fashion family
  apparel. Our acquisition of Kentucky Derby Hosiery Co., Inc. (&#147;Kentucky
  Derby&#148;) in fiscal 2006 provided us with enhanced distribution to major U.S.
  mass-market retailers, and permitted us to achieve our first national branded
  sock program for men&#146;s and boys&#146; socks with a U.S. national retailer.
  <LI>
  <p style="margin-bottom: 10">We began shipments of a major private label sock program to a U.S.
  national mass-market retailer. </LI></UL>
<P align=justify><B>Manufacturing Operations </B></P>
<UL style="TEXT-ALIGN: justify">
  <LI>
  <p style="margin-bottom: 10">We announced the restructuring of our Canadian and U.S. manufacturing
  operations, which included the closure of our two remaining textile facilities
  in Montreal and our cutting facility in Bombay, New York, and announced the
  closure of two sock facilities in Mount Airy, North Carolina. We also
  announced the closure of our two sewing facilities in Mexico, which had been
  supplied with fabric from our Canadian textile operations.
  <LI>
  <p style="margin-bottom: 10">We began production at a new integrated manufacturing facility in Rio
  Nance, Honduras for the large- scale production of socks, and announced plans
  for a second sock facility in Honduras to support our projected continuing
  growth in sales.
  <LI>
  <p style="margin-bottom: 10">We also began production at our second large-scale integrated textile
  manufacturing facility for the production of activewear in Rio Nance,
  Honduras. </LI></UL>
<P align=justify><B>Distribution</B> </P>
<UL style="TEXT-ALIGN: justify">
  <LI>
  <p style="margin-bottom: 10">We completed the consolidation of Kentucky Derby&#146;s distribution facilities
  into our retail distribution centre located in Martinsville, Virginia.
  <LI>
  <p style="margin-bottom: 10">We began operations at a new third-party distribution centre in Shenzhen,
  China. </LI></UL>
<P align=justify><B>Stock Split </B></P>
<UL style="TEXT-ALIGN: justify">
  <LI>Our Board of Directors approved a two-for-one stock split effected in the
  form of a stock dividend. The split was applicable to all shareholders of
  record on May 18, 2007. The Common Shares commenced trading on a post-split
  basis on May 16, 2007 on the Toronto Stock Exchange and on May 28, 2007 on the
  New York Stock Exchange. </LI></UL>
<P align=center>5 <BR></P>
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<P align=justify><B>FLA Accreditation</B><BR></P>
<UL style="TEXT-ALIGN: justify">
  <LI>In June 2007, the Fair Labor Association (the &#147;FLA&#148;), a leading labour
  rights organization, accorded us accreditation status on our labour compliance
  program following an extensive three-year review of our compliance with its
  workplace code of conduct requirements. We became the first
  vertically-integrated manufacturer of basic activewear apparel to receive this
  accreditation, which is the FLA&#146;s most advanced recognition of a company&#146;s
  labour compliance program. </LI></UL>
<P align=justify><B>3. </B></P>
<P align=justify style="margin-left: 45pt; margin-top: -25.5pt"><B>DESCRIPTION
OF THE BUSINESS</B></P>
<P align=justify><B>3.1 </B></P>
<P align=justify style="margin-left: 45pt; margin-top: -25.5pt"><B>Business
Overview</B><BR></P>
<P align=justify>We are a marketer and vertically-integrated globally
cost-competitive manufacturer of basic, non-fashion apparel products for
customers requiring an efficient supply chain and consistent product quality for
high-volume replenishment programs. We sell activewear products to screenprint
markets in North America, Europe and other international markets. Gildan is the
leading supplier of activewear for the screenprint channel in the U.S. and
Canada, and also a leading supplier for this market in Europe and Mexico. We
sell socks and underwear, in addition to our activewear products, to mass market
and regional retailers in North America. In the U.S. mass-market retail channel,
Gildan is one of the leading suppliers of socks. The Company operates in one
business segment, being high-volume, basic, frequently replenished, non-fashion
apparel.</P>
<P align=justify>The Company&#146;s net sales for fiscal 2009 reached $1,038.3
million. </P>
<P align=justify><B>Strategy and Objectives<BR><BR></B>Our growth strategy
comprises the following initiatives:<BR></P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0 BCLLIST>

  <TR>
    <TD vAlign=top width="5%"><B>1.</B> </TD>
    <TD>
      <P align=justify><B>Maximize screenprint market penetration and
      opportunities</B></P></TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD>
      <P align=justify>While we have achieved a leadership position in the
      screenprint channel in the U.S. and in Canada, we believe we can continue
      to further solidify our position in the North American screenprint channel
      and expand our presence in international screenprint markets. In recent
      years, we have further developed our integrated manufacturing hubs in
      Central America and the Caribbean Basin, which we expect will allow us to
      allocate capacity to service product categories and geographical locations
      where our growth was previously constrained by capacity availability. We
      are currently planning to invest further in capacity expansions within our
      existing manufacturing hubs.</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD>
      <P align=justify><B><I>U.S. Screenprint Market</I></B></P></TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD>
      <P align=justify>During fiscal 2009, we further increased our leading
      market share position in the U.S. screenprint channel in all of our
      product categories as reported in the S.T.A.R.S. report produced by
      ACNielsen Market Decisions. Our overall total market share in this channel
      increased to 56.6% for the nine months ended September 30, 2009 compared
      to 51.9% for the same period last year. We intend to continue gaining
      market share in all of the product categories that we serve within the
      U.S. screenprint channel, namely T-shirts, sport shirts and fleece,
      through our continued focus on delivering consistent high quality
      products, reliable customer service and competitive pricing. In addition,
      the introduction of new products such as softer T-shirts and sport shirts
      made of ring-spun cotton and new styles tailored for women, should enable
      us to further increase our market share by serving certain niches of the
      screenprint channel in which we previously did not participate. We also
      intend to grow our private label activewear business to provide
      undecorated products to large branded apparel companies and retailers
      which
      sell imprinted activewear and  are currently not supplied by our
      existing U.S. wholesale distributors.</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD>
      <P align=justify><B><I>International Markets</I></B></P></TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD>
      <P align=justify>We expect to pursue further market penetration primarily
      within our existing screenprint channels in Europe, Mexico and the
      Asia/Pacific region. We continue to seek opportunities for growth in
      Europe, having expanded our product-lines, including the introduction of
      ring-spun cotton activewear products. In Mexico, we intend to grow our
      presence in the screenprint channel by building on the sales and
      distribution infrastructure that we have recently established in the
      country. In addition, in fiscal 2007, we began selling our products in Japan in both the
      screenprint and retail channels and during fiscal 2008, we established a
      sales office in China to position Gildan to service both the screenprint
      and retail channels in that country. The Company is continuing to evaluate
      opportunities to further develop its presence in its target markets in
      China.</P></TD></TR></TABLE>
<P align=center>6</P>
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  <TR>
    <TD vAlign=top width="5%" height="15"><B>2.</B> </TD>
    <TD height="15">
      <P align=justify><B>Leverage our successful business model to further
      penetrate the mass-market retail channel</B></P></TD></TR>
  <TR>
    <TD width="5%" height="75"></TD>
    <TD height="75">
      <P align=justify>The acquisitions of Kentucky Derby in fiscal 2006 and of
      Prewett at the beginning of fiscal 2008, combined with the addition of new
      branded and private label sock programs, have positioned us as a leading
      supplier of basic family socks in the U.S. mass-market retail channel. We
      have begun to build on our significant market position in socks to
      establish a significant presence in the mass-market retail channel with
      our activewear and underwear product lines. We are leveraging our existing
      core competencies, successful business model and competitive strengths.
      Our value proposition in the retail channel as in the screenprint channel
      combines consistent quality, competitive pricing and fast and flexible
      replenishment, due to our geographical proximity to our markets, as well
      as our leadership in corporate social responsibility and environmental
      sustainability. During fiscal 2009, we strengthened our position with
      mass-market retailers by positioning ourselves as a strategic private
      label supplier to mass retailers seeking to consolidate their supply chain
      with fewer, larger manufacturers.</P></TD></TR>
  <TR>
    <TD width="5%" height="15"></TD>
    <TD height="15"></TD></TR>
  <TR>
    <TD width="5%" height="60"></TD>
    <TD height="60">
      <P align=justify>We have continued to build on the successful performance
      of our private label sock programs and have been awarded a major strategic
      underwear program as well as a smaller underwear program and three further
      sock programs, which are all expected to begin shipment in the second
      quarter of fiscal 2010. We are currently in active discussions to secure
      further opportunities with mass retailers for new programs during fiscal
      2010. The annualized full year incremental sales revenue from the
      additional new mass market retail programs already obtained by the Company
      in fiscal 2010 is currently estimated to be approximately $70 million. </P></TD></TR>
  <TR>
    <TD width="5%" height="15"></TD>
    <TD height="15"></TD></TR>
  <TR>
    <TD width="5%" height="30"></TD>
    <TD height="30">
      <P align=justify>We have also pursued a strategy of selling our products
      with the Gildan brand to regional retailers. During fiscal 2009, we
      continued to further penetrate this channel by adding to our customer base
      and expanding Gildan branded products with regional retailer chains. We
      currently sell Gildan branded products in more than 1,700 retail
      stores.</P></TD></TR>
  <TR>
    <TD width="5%" height="15"></TD>
    <TD height="15"></TD></TR>
  <TR>
    <TD vAlign=top width="5%" height="15"><B>3.</B> </TD>
    <TD height="15">
      <P align=justify><B>Continue to generate manufacturing and distribution
      cost reductions</B></P></TD></TR>
  <TR>
    <TD width="5%" height="45"></TD>
    <TD height="45">
      <P align=justify>We seek to continuously improve our manufacturing and
      distribution processes and cost structure by developing and investing in
      cost-reduction initiatives. In addition to our continuing consolidation of
      our manufacturing operations in our Central American and Caribbean Basin
      hubs, we are implementing other cost reduction initiatives which include,
      among others, our plans to install biomass facilities as an alternate
      source of natural renewable energy in order to reduce our reliance on
      high-cost fossil fuels and further reduce our environmental footprint. We
      are also planning to achieve further efficiencies in operating our
      distribution activities.</P></TD></TR>
  <TR>
    <TD width="5%" height="15"></TD>
    <TD height="15"></TD></TR>
  <TR>
    <TD width="5%" height="30"></TD>
    <TD height="30">
      <P align=justify>During fiscal 2009, we continued to consolidate our
      manufacturing operations in our manufacturing hub in Central America as we
      transitioned our U.S. sock finishing operations, which were purchased as
      part of the Prewett acquisition, to sock finishing facilities in Honduras.
      During fiscal 2010, the Company plans to complete the construction of Rio
      Nance 4, its second sock manufacturing facility in Honduras and begin
      operating the facility during fiscal 2010.</P></TD></TR>
  <TR>
    <TD width="5%" height="15"></TD>
    <TD height="15"></TD></TR>
  <TR>
    <TD width="5%" height="45"></TD>
    <TD height="45">
      <P align=justify>During fiscal 2009, we began construction of a biomass
      steam generation system in the Dominican Republic, which is expected to
      contribute to the reduction of our energy consumption and related costs.
      The biomass steam generation system is expected to be operational by
      February 2010. Our current plans for fiscal 2010 also include the
      initiation of similar biomass steam generation projects at our sock
      manufacturing facilities in Honduras. We are also planning to implement
      similar systems for our two textile facilities in Honduras in the
      future.</P></TD></TR>
  <TR>
    <TD width="5%" height="15"></TD>
    <TD height="15"></TD></TR>
  <TR>
    <TD width="5%" height="30"></TD>
    <TD height="30">
      <P align=justify>In November 2009, we completed the acquisition of a
      state-of-the-art distribution centre and office building in Charleston,
      South Carolina. This facility will be utilized to support our retail
      growth strategy and is also expected to generate cost reductions and
      improved efficiencies as a result of consolidating existing distribution capacity.
      Furthermore, we plan to build a new distribution centre in Rio Nance,
      Honduras to handle value-added labour intensive activities for mass-market
      retail customers and to support direct shipments to some of our
      markets.</P></TD></TR></TABLE>
<P align=center>7</P>
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  <TR>
    <TD vAlign=top width="5%"><B>4.</B> </TD>
    <TD>
      <P align=justify><B>Re-invest and/or redistribute cash flow</B></P></TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD>
      <P align=justify>We will evaluate opportunities to reinvest our cash flows
      generated from operations. Our primary use of cash will continue to be to
      finance our working capital and capital expenditure requirements to
      support our organic growth, but at the same time we will be open to
      evaluating complementary strategic acquisition opportunities which meet
      our return on investment criteria, based on our risk- adjusted cost of
      capital.</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD>
      <P align=justify>In addition, we will opportunistically consider share
      repurchases if management and the Board at any time believe that our
      shares are undervalued, and we also intend, as we have done periodically
      in the past, to discuss with our Board the possible introduction of a
      dividend.</P></TD></TR></TABLE>
<P align=justify><B>Our Products and Markets</B><B> <BR></B>We have built our
core business by manufacturing and selling activewear products through wholesale
distributors servicing the screenprint market. Today we sell activewear products
to this channel in North America, Europe and other international markets. In
more recent years we made our entry into the North American retail channel, with
the addition of socks and underwear to our activewear product-line for sale to
large mass-market and regional retailers. In fiscal 2006 we acquired Kentucky
Derby and in the first quarter of fiscal 2008 we acquired Prewett, two
U.S.-based sock manufacturers of basic family socks which provided us with
enhanced distribution to major U.S. mass-market retailers. </P>
<P align=justify>Our activewear products, namely T-shirts, fleece and sport
shirts under the Gildan brand, are sold in large quantities to wholesale
distributors as undecorated &#147;blanks&#148;, which are subsequently sold to
screenprinters and embroiderers who decorate the products with designs and
logos. Screenprinters then sell the imprinted activewear to a highly diversified
range of end-use markets, including educational institutions, athletic dealers,
event merchandisers, promotional product distributors, charity organizations,
entertainment promoters, and travel and tourism venues. Our activewear products
are used in a variety of daily activities by individuals, including work and
school uniforms and athletic team wear, and for various other purposes to convey
individual, group and team identity. We are also growing our private label
activewear business to provide undecorated products to large branded apparel
companies and retailers which sell imprinted activewear and are currently not
supplied by our existing U.S. wholesale distributors. In the North American
mass-market and regional retailer channel, we sell a variety of styles of socks,
and men&#146;s and boys&#146; underwear, in addition to our undecorated activewear
products, under various retailer private labels and under the Gildan brand.</P>
<P align=justify>All of our products are made of 100% cotton or of blends of
cotton and synthetic fibres. Our products are characterized by low-fashion risk
compared to other apparel categories since these products are basic, frequently
replenished, and since logos and designs for the screenprint market are not
imprinted or embroidered by Gildan. Our value proposition combines consistent
quality, competitive pricing and fast and flexible replenishment, due to our
geographical proximity to our markets, as well as our leadership in corporate
social responsibility and environmental sustainability. As a
vertically-integrated manufacturer, Gildan is able to provide premium products
to customers in a broad range of sizes, colours and styles with enhanced product
features, such as pre-shrunk fabrics, and a selection of fabric weights, blends
and construction. Innovations in the manufacturing process of our activewear
products have allowed us to ensure colour/shade consistency and high performance
of the garments. In addition, innovations in the sock manufacturing process,
such as higher needle count machines and seamless toe closing operations have
allowed Gildan to deliver enhanced sock product features at lower prices,
further improving the value proposition of our activewear and sock products to
our customers.</P>
<P align=justify>Activewear and underwear represented 77% of our sales in both
fiscal 2009 and fiscal 2008. Socks represented 23% of our sales in both fiscal
2009 and fiscal 2008. </P>
<P align=justify><B>Competitive Environment</B><B> <BR></B>The apparel market
for our products is highly competitive. Competition is generally based upon
price, with reliable quality and service also being critical requirements for
success. Our competitive strengths include our expertise in building and
operating large-scale, vertically-integrated offshore manufacturing hubs which
allows us to offer competitive pricing, consistent product quality, and a supply
chain which efficiently services replenishment programs with short production/delivery cycle times. Our
investments and commitment to our corporate social responsibility programs are
also increasingly becoming important factors for our customers. We are focused
on providing a more socially and environmentally responsible supply chain for
our customers by employing progressive hiring and employment practices in good
working conditions, minimizing our environmental footprint and contributing to
communities in the countries in which we operate.</P>
<P align=center>8</P>
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<P align=justify>Gildan is the leading supplier of activewear products for the
screenprint channel in the U.S. and Canada, and also a leading supplier for this
market in Europe and Mexico. In the U.S. mass-market retail channel Gildan is
one of the leading suppliers of socks. Our primary competitors in North America
are the major manufacturers for the screenprint and retail channels, such as
Hanesbrands Inc., Berkshire Hathaway Inc. through its subsidiaries Fruit of the
Loom, Inc. and Russell Corporation, and smaller U.S.-based manufacturers,
including Anvil Knitwear Inc. We also compete with Alstyle Apparel, a division
of Ennis Corp., and Delta Apparel Inc. The competition in the European
screenprint channel is similar to that in North America, as we compete primarily
with the European divisions of the major U.S.-based manufacturers mentioned
above. We also face the threat of increasing global competition. In Europe, we
also have large competitors that do not have integrated manufacturing operations
and source products from suppliers in Asia. In addition, many of Gildan&#146;s U.S.
competitors servicing the retail apparel industry currently source products from
Asia.</P>
<P align=justify><B>Customers<BR></B>In fiscal 2009, we sold our products in the
United States, Canada and Europe and other international markets, which
accounted for 91%, 3% and 6% of total sales, respectively. For a breakdown of
our total sales by geographic market for each of the last three financial years,
reference is made to Note 21 to the 2009 Financial Statements, which note is
incorporated herein by reference. Our customer base is composed of a relatively
small number of significant customers. We currently sell our products to
approximately 200<B> </B>customers. In fiscal 2009, our largest customer
accounted for 18.6% of our total sales, and our top ten customers accounted for
67.8% of our total sales in the retail and screenprint channels. </P>
<P align=justify>The large majority of total sales in fiscal 2009 continued to
be made in the screenprint channel through our wholesale distributors. Although
we have long-term ongoing relationships with many of our customers, our
contracts with our customers do not require them to purchase a minimum quantity
of our products. Instead, we assess their projected requirements and then plan
our production and marketing strategy accordingly. </P>
<P align=justify><B>Our Facilities <BR></B><B><I>Textile and Sock Manufacturing
<BR></I></B>To support our sales in the various markets, we have built modern
manufacturing facilities located in Central America and the Caribbean Basin
where we manufacture T-shirts, fleece, sport shirts, socks and underwear. Our
largest manufacturing hub in Central America includes our first
vertically-integrated knitting, bleaching, dyeing, finishing and cutting textile
facility (Rio Nance 1) to produce activewear fabric and, more recently,
underwear fabric. This facility, located in Rio Nance, Honduras, became
operational in fiscal 2002. During fiscal 2007, we expanded our operations in
Rio Nance to include a new integrated textile facility for the production of
activewear fabric (Rio Nance 2) and a new integrated sock manufacturing facility
(Rio Nance 3). We have also established a vertically-integrated Caribbean Basin
manufacturing hub with a textile facility for the production of activewear
fabric in Bella Vista, Dominican Republic, which became operational in fiscal
2005. The Company is also planning further textile capacity expansion in its
existing manufacturing hubs in the Dominican Republic and Central America.</P>
<P align=justify>In addition to our integrated sock manufacturing facility
located in our Central America hub, we operate U.S. sock knitting facilities in
Fort Payne, Alabama, purchased as part of the Prewett acquisition in fiscal
2008. During fiscal 2009, we transitioned our U.S. sock finishing operations,
which were purchased as part of the Prewett acquisition, to leased sock
finishing facilities in Honduras. During fiscal 2010, the Company plans to complete
the construction of a second sock manufacturing facility (Rio Nance 4) in Rio
Nance, which is expected to begin operations by the end of fiscal 2010. Rio
Nance 4 will serve to further consolidate the sock finishing operations and to
support our future sales growth in this product category.<B> </B></P>
<P align=justify><B><I>Sewing Facilities <BR></I></B>Our sewing facilities for
activewear and underwear are strategically located in close proximity to our
textile manufacturing facilities. We operate sewing facilities in Honduras and
Nicaragua to support our textile manufacturing hub in Central America. To support our
vertically-integrated production in the Dominican Republic, we utilize
third-party contractors in Haiti, and we have established a new sewing facility
in the Dominican Republic, which began operating during the second quarter of
fiscal 2009. </P>
<P align=center>9</P>
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<P align=justify><B><I>Yarn-Spinning <BR></I></B>CanAm Yarns, LLC (CanAm), our
joint-venture company with Frontier Spinning Mills, Inc. (Frontier), operates
yarn-spinning facilities in Georgia and North Carolina. CanAm&#146;s yarn-spinning
operations, together with supply agreements currently in place with Frontier and
other third-party yarn providers, serve to meet our yarn requirements. </P>
<P align=justify><B><I>Sales, Marketing and Distribution <BR></I></B>Our global
sales and marketing office, which employs approximately 145 full-time employees,
is located in St. Michael, Barbados and is responsible for customer-related
functions, including sales management, marketing, customer service, credit
management, sales forecasting, and inventory control and logistics. The Company
also employs a sales group in the U.S. to service its retail customers. </P>
<P align=justify>We distribute our activewear products for the screenprint
channel primarily out of our distribution centre in Eden, North Carolina, and
also use third-party warehouses in the western United States, Canada, Mexico,
Europe and Asia to service our customers in these markets. Shipments are also
made directly from our third party contractors in Haiti and from our facilities
in Honduras. To service the mass-market retail channel, we operate a
distribution centre in Martinsville, Virginia. In addition, with our acquisition
of Prewett in fiscal 2008, we have two distribution facilities in Fort Payne,
Alabama. On November 17, 2009, the Company completed the acquisition of a
state-of-the-art distribution centre and office building in Charleston, South
Carolina, for approximately $20 million. This facility will be utilized to
support the Company&#146;s retail strategy, and is also expected to generate cost
reductions and efficiencies as a result of consolidating existing distribution
capacity.</P>
<P align=justify><B>Raw Materials <BR></B>Cotton and polyester fibres are the
main raw materials used in the manufacturing of our products. Cotton is used in
the manufacturing of 100% cotton yarn, while polyester is added in the
manufacturing of cotton-polyester blend yarn. Polyester pricing is negotiated on
an annual basis, while cotton fibre is typically purchased for future delivery
at pre-determined prices under contracts as deemed appropriate by management.
</P>
<P align=justify>During fiscal 2009, most of our yarn requirements for the
production of our product-lines were met by our long-term supply agreements with
third-party suppliers, as well as by our jointly owned CanAm yarn-spinning
facilities in Cedartown, Georgia and Clarkton, North Carolina. We expect that
most of our yarn requirements will continue to be met by these sources. </P>
<P align=justify>The two primary sources of energy consumed in our manufacturing
facilities are electricity, which is used to power production equipment, and
bunker fuel, which is used to generate steam required in the production process.
The electricity requirements at our two main production complexes are provided
by a public utility in Honduras and from a private supplier in the Dominican
Republic. Electricity rates are variable and are in part related to underlying
oil prices. The bunker fuel used in our operations is supplied from local
third-party suppliers, and the pricing is highly dependant on international
market prices for bunker fuel. During this fiscal year we began construction of
a biomass steam generation system in the Dominican Republic, which is expected
to contribute to the reduction of our energy consumption and related costs. The
facility is expected to be operational by February 2010. Our current plans for
fiscal 2010 also include the initiation of similar biomass steam generation
projects at our sock manufacturing facilities in Honduras. We are also planning
to implement similar systems for our two textile facilities in Honduras in the
future. </P>
<P align=justify>We also purchase chemicals, dyestuffs and trims through a
variety of suppliers. These products have historically been available in
sufficient supply. </P>
<P align=justify><B>Management Information Systems<BR></B>Our Enterprise
Resource Planning (&#147;ERP&#148;) system supports the majority of our operations in the
areas of finance, manufacturing and customer service. This system is centralized
and is accessed from all of our locations through secure networks. Our ERP
system is linked to servers supporting both local processes and specialized
applications, including payroll and distribution. We continue to leverage our
existing ERP system by adding new functionality in the areas of supply chain
planning, demand forecasting and business intelligence. Due to our increasing dependence on the availability of our computer
systems to support our operations, we plan to continue, in fiscal 2010, to
implement initiatives to enhance our information technology (&#147;IT&#148;) processes and
infrastructure based on the Information Technology Infrastructure Library, a
framework of best practices approaches intended to facilitate the delivery of
high quality IT services. </P>
<P align=center>10</P>
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<P align=justify><B>Seasonality and Other Factors Affecting the Variability of
Results <BR></B>Our results of operations for interim periods and for full
fiscal years are impacted by the variability of certain factors, including, but
not limited to changes in end-use demand and customer demand, including our
customers&#146; decision to increase or decrease their inventory levels, changes in
our sales mix, and fluctuations in selling prices. While our products are sold
on a year-round basis, our business experiences seasonal changes in demand which
result in quarterly fluctuations in operating results. Typically, demand for our
T-shirts is highest in the third quarter of each fiscal year, when distributors
purchase inventory for the peak summer selling season, and lowest in the first
quarter of each fiscal year. Demand for fleece is typically highest, in advance
of the Fall and Winter seasons, in the third and fourth quarters of each fiscal
year. For our sock products, demand is typically highest in the first and fourth
quarters of each fiscal year, stimulated largely by the cooler weather and the
need to support requirements for the back-to-school period and the holiday
season. Historically, we have operated our mature facilities at full capacity
throughout the year in order to be cost efficient. Consequently, with the
seasonal sales trends of our business, we experience fluctuations in our
inventory levels throughout the year, in particular a buildup of inventory
levels in the first half of the year. In the last three quarters of fiscal 2009,
we took some production downtime in order to align our inventory levels with
sales demand, in the context of the weak economic conditions during the fiscal
year.</P>
<P align=justify>Our results are also impacted by the fluctuations in the price
of raw materials and other input costs. Cotton and polyester fibres are the
primary raw materials used in the manufacture of our products. We also use
chemicals, dyestuffs and trims which we purchase from a variety of suppliers, at
prices that are correlated with the price of cotton and polyester fibres. Cotton
prices, which directly affect the cost of the cotton fibres we purchase, are
affected by weather, consumer demand, speculation on the commodities market, the
relative valuations and fluctuations of the currencies of producer versus
consumer countries and other factors that are generally unpredictable. While we
enter into contracts in advance of delivery to establish firm prices for cotton
and cotton yarn, our realized cotton costs can fluctuate significantly between
interim and annual reporting periods. Our results of operations are also
affected by fluctuations in crude oil and petroleum prices, which can also
influence transportation costs and the cost of related items used in our
business, such as polyester fibres, chemicals, dyestuffs and trims. </P>
<P align=justify>Management decisions to consolidate or reorganize operations,
including closing facilities, may also result in significant restructuring and
other charges in an interim or annual period. In addition, the effect of asset
writedowns, including provisions for bad debts and slow moving inventories, can
affect the variability of our results.</P>
<P align=justify><B>Trade Regulation <BR></B>As a multinational corporation, we
are exposed to international trade legislation and bilateral trade agreements in
the countries in which we operate and source products. Although the textile and
apparel industries of developed countries such as Canada, the United States and
the European communities have historically received a relatively higher degree
of trade protection than other industries, trade liberalization has diminished
this protection in recent years. In order to remain globally competitive, we
have situated our manufacturing facilities in strategic locations to leverage
the benefits of the trade liberalization climate. Furthermore, management
continuously monitors new developments and risks relating to duties, tariffs and
quotas in our approach to global manufacturing and sourcing and makes
adjustments as needed. </P>
<P align=justify>The United States, Canada, and Mexico have implemented several
free trade agreements and trade preference programs to enhance trade with their
trading partners. There exist a number of regional trade agreements and
preference programs, such as the Caribbean Basin Trade Partnership Act, the
Dominican Republic-Central America-United States Free Trade Agreement
(&#147;CAFTA-DR&#148;) and the Haitian Hemispheric Opportunity through Partnership
Encouragement Act (&#147;HOPE&#148;), which allow qualifying textiles and apparel from
participating countries duty-free access to certain developed countries&#146;
markets.</P>
<P align=justify>The United States adopted two of the newest programs, CAFTA-DR
and HOPE (as amended by HOPE II legislation in 2008), to strengthen and develop
U.S. economic relations with Central America, the Dominican Republic and Haiti. Most trade agreements, such as CAFTA-DR,
provide for the application of safeguards in the form of reinstatement of normal
duties if increased imports cause or threaten to cause substantial injury to a
domestic industry. In 2008, the United States imposed such a safeguard under
CAFTA-DR against socks imported from Honduras. The safeguard was in the form of
a 5% duty on socks imported from Honduras from July through December 2008, which
affected our imports of socks from our integrated Honduran sock facility. The
socks safeguard is no longer in effect, and the United States has agreed with
Honduras not to extend or reimpose the socks safeguard beyond 2008. Under the
provisions of the CAFTA-DR agreement, a safeguard, upon expiration, cannot be
renewed.</P>
<P align=center>11</P>
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<P align=justify>Proposed legislation in the U.S. Congress would, if adopted,
extend duty-free treatment to qualifying apparel imported from lesser developed
countries, including Bangladesh and Cambodia, extend duty-free or reduced duty
treatment to certain qualifying apparel imported from the Philippines, and
extend duty-free treatment to certain apparel manufactured in &#147;reconstruction
opportunity zones&#148; in Afghanistan and Pakistan. Any of these proposals could
negatively affect our competitive position in the United States. Furthermore,
U.S. domestic industry groups have threatened to seek &#147;section 337&#148; trade
remedies against apparel imports from China under the terms of the U.S.-China
WTO accession agreement, which could result in higher duty rates or tariff rate
quotas for Chinese apparel and improve our competitive position in affected
product classifications. The likelihood that any of these measures will be
adopted and the extent of their impact on our business cannot be determined with
certainty.</P>
<P align=justify>Imports into the Mexican market may qualify for trade
preferences from various free trade agreements such as the Mexico-Nicaragua Free
Trade Agreement, and the Mexico-Northern Triangle Regional Trade Agreement,
which includes El Salvador, Guatemala and Honduras as member countries. In
addition to free trade arrangements among the individual countries within the
European Union, the European Union also has preferential trade agreements with
other European countries and with countries outside of Europe, such as the free
trade agreement between the European Union and Mexico. Furthermore, the European
Union also enacted a Generalized System of Preferences (&#147;GSP&#148;) and the
Africa-Caribbean-Pacific programs that allow duty-free and quota-free entry into
the European Union of qualifying articles, including apparel, from developing
countries and least developed countries such as Honduras, Nicaragua and Haiti.
However, discussions are ongoing at the European Union level regarding the
reform of certain of the GSP rules of origin. </P>
<P align=justify>U.S. safeguards imposing quotas on annual imports of certain
categories of Chinese originating textiles and apparel expired at the end of
2008, although ordinary import duties remain in effect. </P>
<P align=justify><B>Product Safety Regulation <BR></B>We are subject to consumer
product safety laws and regulations that could affect our business. In the
United States, we are subject to the <I>Consumer Product Safety Act</I>, as
amended by the <I>Consumer Product Safety Improvement Act of 2008</I>, to the
<I>Flammable Fabrics Act</I>, and to the rules and regulations promulgated
pursuant to such statutes. Although enforcement of certain requirements is
currently stayed, these laws and regulations include requirements for testing
and certification for flammability of wearing apparel, for lead content and lead
in surface coatings in children&#146;s products, and for phthalate content in
children&#146;s sleepwear. Such laws provide for substantial penalties for
non-compliance.</P>
<P align=justify>In Canada, we are subject to similar laws and regulations, the
most significant of which is the <I>Hazardous Products Act</I>. In the European
Union, we are also subject to product safety regulations, the most significant
of which are imposed pursuant to the General Product Safety Directive. We are
also subject to similar laws and regulations in the other jurisdictions in which
our products are sold.</P>
<P align=justify>We believe that we are in compliance in all material respects
with applicable product safety laws and regulations in the jurisdictions in
which we operate. </P>
<P align=justify><B>Intellectual Property<BR></B>We own several registered
trademarks including, among others, the &#147;Gildan&#148; trademark in Canada and the
United States and &#147;Gildan Activewear&#148; in Canada and many countries in Europe,
Central America, South America and Asia, as well as in Australia. Applications
for the registration of the &#147;Gildan&#148; trademark are also pending in certain
countries. We have and intend to continue to maintain our trademarks and the
relevant registrations, and will actively pursue the registration of trademarks
in Canada, the United States and abroad. </P>
<P align=center>12</P>
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<P align=justify><B>Environmental Regulation<BR></B>We are subject to various
federal, state and local environmental laws and regulations in the jurisdictions
in which we operate concerning, among other things, wastewater discharges, storm
water flows, and solid waste disposal. Our manufacturing plants generate small
quantities of hazardous waste, which are either recycled or disposed of
off-site. As part of our Corporate Environmental Policy, we monitor, control and
manage environmental issues through policies including, but not limited to, the
recycling and creation of measures for waste prevention, minimization, recovery
and treatment at all stages of the production cycle including the off-site
disposal of any hazardous waste. We believe that we are in compliance in all
material respects with the regulatory requirements of those jurisdictions in
which our facilities are located.</P>
<P align=justify>In line with our commitment to the environment as well as to
the health and safety of our employees we incur capital and other expenditures
each year that are aimed at achieving compliance with current environmental
standards. For fiscal 2009, the requirements with regard to environmental
protection did not have a significant financial or operational impact on the
Company's capital expenditures, earnings and competitive position. Although we
do not expect that the amount of these expenditures in the future will have a
material adverse effect on our operations, financial condition or liquidity,
there can be no assurance that future changes in federal, state, or local
regulations, interpretations of existing regulations or the discovery of
currently unknown problems or conditions will not require substantial additional
environmental remediation expenditures or manufacturing interruption that could
have a material adverse effect on our business. Similarly, the extent of our
liability, if any, for past failures to comply with laws, regulations and
permits applicable to our operations cannot be reasonably determined. </P>
<P align=justify><B>Labour Practices<BR></B>We seek to provide favourable
working conditions for all employees. We have implemented internal and external
monitoring programs that permit us to verify compliance with local labour laws,
as well as with internationally recognized labour standards. In addition to
having our own Code of Conduct, which is available on our website at
www.gildan.com, we have obtained Worldwide Responsible Apparel Production
(&#147;WRAP&#148;) re-certification for all our Gildan-owned sewing facilities, with the
exception of a new facility in San Miguel, Honduras, which is the result of a
consolidation of three previously WRAP certified Gildan-owned facilities that is
now required to obtain a new certification. Three quarters of the facilities of
our sewing contractors located in Haiti are also WRAP certified. All of our
third-party sewing contractors are contractually required to follow prescribed
employment policies as well as our Code of Conduct.</P>
<P align=justify>In November 2003, we joined the FLA as a &#147;Participating
Company&#148;. The FLA is internationally recognized and respected as a non-profit
organization whose goal is to promote adherence to international labour
standards and to improve working conditions for employees worldwide. In fiscal
2007, the FLA accorded accreditation status to our labour compliance program.
</P>
<P align=justify>Until 2007, the majority of our social compliance monitoring
was performed by external third-party auditors. In fiscal 2007, we successfully
began internal monitoring audits that complement these external independent
audits. Independent third party monitors also regularly audit our plants,
announced or unannounced. During fiscal 2008 and 2009, 107 audits were performed
in our facilities and those of our third-party contractors. Over 30% of these
audits were carried out by third-party auditors, half of which were mandated by
our customers. </P>
<P align=justify><B>3.2 </B></P>
<P align=justify style="margin-left: 45pt; margin-top: -25.5pt"><B>Risk Factors</B><BR></P>
<P align=justify>Please see the &#147;Financial Risk Management&#148; and the &#147;Risks and
Uncertainties&#148; sections of our 2009 Annual MD&amp;A beginning on page 21 and
page 32, respectively, which are incorporated herein by reference.</P>
<P align=justify><B>3.3 </B></P>
<P align=justify style="margin-left: 45pt; margin-top: -25.5pt"><B>Employees</B><BR></P>
<P align=justify>As at October 4, 2009, we employed 19,532 full-time employees
worldwide. We consider our relations with our employees to be good and, as of
the date hereof, we have not experienced any work stoppages that have had a
material impact on our operations. </P>
<P align=center>13</P>
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<P align=justify><B>4. </B></P>
<P align=justify style="margin-left: 45pt; margin-top: -25.5pt"><B>DIVIDEND
POLICY</B><BR></P>
<P align=justify>We do not currently, and have not in the past three years, paid
dividends because we have chosen to retain all of our earnings to maximize our
financing capacity to develop and expand our business. The Board of Directors
periodically reviews the Company&#146;s policy towards paying dividends. Although our
revolving term credit facility requires compliance with lending covenants in
order to pay dividends, these covenants are not currently, and are not expected
to be, a constraint to the future payment of dividends. </P>
<P align=justify><B>5.  </B></P>
<P align=justify style="margin-left: 45pt; margin-top: -25.5pt"><B>CAPITAL STRUCTURE</B></P>
<P align=justify><B>First Preferred Shares
<BR></B><BR><I>Issuance in Series </I><BR></P>
<P align=justify>The First Preferred shares are issuable in series and the Board
of Directors has the right, from time to time, to fix the number of, and to
determine the designation, rights, privileges, restrictions and conditions
attaching to, the First Preferred shares of each series subject to the
limitations, if any, set out in the Articles of the Company. </P>
<P align=justify><I>Rank</I><BR></P>
<P align=justify>The First Preferred shares rank senior to the Second Preferred
shares and the Common Shares with respect to the payment of dividends, return of
capital and the distribution of assets in the event of the liquidation,
dissolution or winding-up of Gildan. The First Preferred shares in each series
rank equally with the First Preferred shares of any other series. </P>
<P align=justify><I>Voting Rights</I><BR></P>
<P align=justify>Unless the Articles otherwise provide with respect to any
series of the First Preferred shares, the holders of the First Preferred shares
are not entitled to receive any notice of or attend any meeting of the
shareholders of Gildan and are not entitled to vote at any such meeting. </P>
<P align=justify><B>Second Preferred Shares<BR></B><BR><I>Issuance in Series
</I><BR></P>
<P align=justify>The Second Preferred shares are issuable in series and the
Board of Directors has the right, from time to time, to fix the number of, and
to determine the designation, rights, privileges, restrictions and conditions
attaching to, the Second Preferred shares of each series subject to the
limitations, if any, set out in the Articles of the Company. </P>
<P align=justify><I>Rank</I><BR></P>
<P align=justify>The Second Preferred shares are subject and subordinate to the
rights, privileges, restrictions and conditions attaching to the First Preferred
shares. The Second Preferred shares rank senior to the Common Shares with
respect to payment of dividends, return of capital and distribution of assets in
the event of the liquidation, dissolution or winding-up of Gildan. The Second
Preferred shares in each series rank equally with the Second Preferred shares of
any other series. </P>
<P align=justify><I>Voting Rights</I><BR></P>
<P align=justify>Unless the Articles otherwise provide with respect to any
series of the Second Preferred shares, the holders of the Second Preferred
shares are not entitled to receive any notice of or attend any meeting of the
shareholders of Gildan and are not entitled to vote at any such meeting. </P>
<P align=justify><B>Common Shares</B><BR></P>
<P align=justify>Following the conversion of all of the Company&#146;s Class B
Multiple Voting shares into Class A Subordinate Voting shares, the Company&#146;s
shareholders approved a special resolution on February 2, 2005 to amend the
Company&#146;s Articles in order to change each of the issued and outstanding Class A
Subordinate Voting shares into one newly-created Common Share and to remove the Class B Multiple Voting
shares and the Class A Subordinate Voting shares. </P>
<P align=center>14</P>
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<P align=justify>The Common Shares are subject and subordinate to the rights,
privileges, restrictions and conditions attaching to the First Preferred shares
and the Second Preferred shares. Each holder of Common Shares shall have the
right to receive any dividend declared by the Company and the right to receive
the remaining property and assets of the Company on dissolution. </P>
<P align=justify>Each holder of Common Shares is entitled to receive notice of
and to attend all meetings of shareholders of the Company, except meetings of
which only holders of another particular class or series shall have the right to
vote. Each Common Share entitles the holder thereof to one vote.</P>
<P align=justify><B>6. </B></P>
<P align=justify style="margin-left: 45pt; margin-top: -25.5pt"><B>MARKET FOR
SECURITIES</B><BR></P>
<P align=justify>The Common Shares are listed on the New York Stock Exchange
(the &#147;NYSE&#148;) and the Toronto Stock Exchange (the &#147;TSX&#148;) under the symbol &#147;GIL&#148;.
The Class A Subordinate Voting shares (now the Common Shares), which were issued
at an offering price of $0.88 (Cdn$1.29), on a post-split basis, began trading
on the TSX, the Montreal Exchange (the &#147;ME&#148;) and the American Stock Exchange
(&#147;AMEX&#148;) on June 17, 1998. Prior to that date, there was no public market for
the Class A Subordinate Voting shares. We delisted such shares from AMEX on
August 31, 1999. On September 1, 1999, the Class A Subordinate Voting shares
(now the Common Shares) commenced trading on the NYSE. As a result of a
restructuring of Canada&#146;s stock exchanges, which took effect on December 7,
1999, we are no longer listed on the ME. </P>
<P align=justify>The table below shows the monthly price range per share and the
trading volume of the Common Shares for the fiscal year ended October 4, 2009 on
the TSX (in Cdn$) and on the NYSE (in US$). </P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 8pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" align=center
      colSpan=8>
    <div style="border-top-style: solid; border-top-width: 1">
      <p style="margin-top: 5; margin-bottom: 5"><B>COMMON SHARES</B>&nbsp;&nbsp;&nbsp;
    </div>
    </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" align=center
      colSpan=4>
    <p style="margin-top: 5; margin-bottom: 5"><B>Toronto Stock Exchange (TSX)</B> </TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" align=center width="51%"
    colSpan=4>
    <p style="margin-top: 5; margin-bottom: 5"><B>New York Stock Exchange (NYSE)</B> </TD></TR>
  <TR vAlign=top>
    <TD align=center style="border-left-style: solid; border-left-width: 1; border-right-style: solid; border-right-width: 1">&nbsp; </TD>
    <TD align=center width="10%" style="border-left-style: solid; border-left-width: 1; border-right-style: solid; border-right-width: 1">&nbsp; </TD>
    <TD align=center width="10%" style="border-left-style: solid; border-left-width: 1; border-right-style: solid; border-right-width: 1">&nbsp; </TD>
    <TD align=center width="15%" style="border-left-style: solid; border-left-width: 1; border-right-style: solid; border-right-width: 1"><B>Trading</B> </TD>
    <TD align=center width="16%" style="border-left-style: solid; border-left-width: 1; border-right-style: solid; border-right-width: 1">&nbsp; </TD>
    <TD align=center width="10%" style="border-left-style: solid; border-left-width: 1; border-right-style: solid; border-right-width: 1">&nbsp; </TD>
    <TD align=center width="10%" style="border-left-style: solid; border-left-width: 1; border-right-style: solid; border-right-width: 1">&nbsp; </TD>
    <TD align=center width="15%" style="border-left-style: solid; border-left-width: 1; border-right-style: solid; border-right-width: 1"><B>Trading</B> </TD></TR>
  <TR vAlign=top>
    <TD align=left style="border-left-style: solid; border-left-width: 1; border-right-style: solid; border-right-width: 1">
    <p style="margin-left: 5"><B>Month</B> </TD>
    <TD align=center width="10%" style="border-left-style: solid; border-left-width: 1; border-right-style: solid; border-right-width: 1"><B>High</B> </TD>
    <TD align=center width="10%" style="border-left-style: solid; border-left-width: 1; border-right-style: solid; border-right-width: 1"><B>Low</B> </TD>
    <TD align=center width="15%" style="border-left-style: solid; border-left-width: 1; border-right-style: solid; border-right-width: 1"><STRONG>Volume</STRONG></TD>
    <TD align=left width="16%" style="border-left-style: solid; border-left-width: 1; border-right-style: solid; border-right-width: 1">
    <p style="margin-left: 5"><B>Month</B> </TD>
    <TD align=center width="10%" style="border-left-style: solid; border-left-width: 1; border-right-style: solid; border-right-width: 1"><B>High</B> </TD>
    <TD align=center width="10%" style="border-left-style: solid; border-left-width: 1; border-right-style: solid; border-right-width: 1"><B>Low</B> </TD>
    <TD align=center width="15%" style="border-left-style: solid; border-left-width: 1; border-right-style: solid; border-right-width: 1"><STRONG>Volume</STRONG></TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" align=left width="10%">&nbsp;
    </TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" align=left width="10%">&nbsp;
    </TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" align=left
    width="15%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" align=left width="16%">&nbsp;
    </TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" align=left width="10%">&nbsp;
    </TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" align=left width="10%">&nbsp;
    </TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" align=left
    width="15%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" align=left
      bgColor=#e6efff>
    <p style="margin: 5">October 6 to 31, 2008 </TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" align=right width="10%"
    bgColor=#e6efff>
    <p style="margin: 5">&nbsp;28.45 </TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" align=right width="10%"
    bgColor=#e6efff>
    <p style="margin: 5">21.45 </TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" align=right width="15%"
    bgColor=#e6efff>
    <p style="margin: 5">13,038,700 </TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" align=left width="16%"
    bgColor=#e6efff>
    <p style="margin: 5">October 6 to 31, 2008 </TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" align=right width="10%"
    bgColor=#e6efff>
    <p style="margin: 5">23.65 </TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" align=right width="10%"
    bgColor=#e6efff>
    <p style="margin: 5">17.55 </TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" align=right width="15%"
    bgColor=#e6efff>
    <p style="margin: 5">26,808,100 </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" align=left>
    <p style="margin: 5">November 2008 </TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" align=right
      width="10%">
    <p style="margin: 5">&nbsp;29.55 </TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" align=right width="10%">
    <p style="margin: 5">20.31
    </TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" align=right
      width="15%">
    <p style="margin: 5">14,274,500 </TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" align=left
      width="16%">
    <p style="margin: 5">November 2008 </TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" align=right width="10%">
    <p style="margin: 5">25.70
    </TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" align=right width="10%">
    <p style="margin: 5">15.75
    </TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" align=right
      width="15%">
    <p style="margin: 5">17,658,300 </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" align=left
      bgColor=#e6efff>
    <p style="margin: 5">December 2008 </TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" align=right width="10%"
    bgColor=#e6efff>
    <p style="margin: 5">&nbsp;20.94 </TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" align=right width="10%"
    bgColor=#e6efff>
    <p style="margin: 5">9.51 </TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" align=right width="15%"
    bgColor=#e6efff>
    <p style="margin: 5">23,099,500 </TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" align=left width="16%"
    bgColor=#e6efff>
    <p style="margin: 5">December 2008 </TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" align=right width="10%"
    bgColor=#e6efff>
    <p style="margin: 5">16.99 </TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" align=right width="10%"
    bgColor=#e6efff>
    <p style="margin: 5">7.76 </TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" align=right width="15%"
    bgColor=#e6efff>
    <p style="margin: 5">44,911,500 </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" align=left>
    <p style="margin: 5">January 2009 </TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" align=right
      width="10%">
    <p style="margin: 5">&nbsp;15.39 </TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" align=right width="10%">
    <p style="margin: 5">12.37
    </TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" align=right
      width="15%">
    <p style="margin: 5">8,229,400 </TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" align=left
      width="16%">
    <p style="margin: 5">January 2009 </TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" align=right width="10%">
    <p style="margin: 5">13.00
    </TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" align=right width="10%">
    <p style="margin: 5">9.76
    </TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" align=right
      width="15%">
    <p style="margin: 5">24,132,500 </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" align=left
      bgColor=#e6efff>
    <p style="margin: 5">February 2009 </TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" align=right width="10%"
    bgColor=#e6efff>
    <p style="margin: 5">&nbsp;13.96 </TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" align=right width="10%"
    bgColor=#e6efff>
    <p style="margin: 5">8.29 </TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" align=right width="15%"
    bgColor=#e6efff>
    <p style="margin: 5">13,397,100 </TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" align=left width="16%"
    bgColor=#e6efff>
    <p style="margin: 5">February 2009 </TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" align=right width="10%"
    bgColor=#e6efff>
    <p style="margin: 5">11.17 </TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" align=right width="10%"
    bgColor=#e6efff>
    <p style="margin: 5">6.64 </TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" align=right width="15%"
    bgColor=#e6efff>
    <p style="margin: 5">43,147,700 </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" align=left>
    <p style="margin: 5">March 2009 </TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" align=right
      width="10%">
    <p style="margin: 5">&nbsp;10.71 </TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" align=right width="10%">
    <p style="margin: 5">7.35
    </TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" align=right
      width="15%">
    <p style="margin: 5">14,983,500 </TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" align=left width="16%">
    <p style="margin: 5">March
      2009 </TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" align=right width="10%">
    <p style="margin: 5">8.72
    </TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" align=right width="10%">
    <p style="margin: 5">5.66
    </TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" align=right
      width="15%">
    <p style="margin: 5">30,949,400 </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" align=left
      bgColor=#e6efff>
    <p style="margin: 5">April 2009 </TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" align=right width="10%"
    bgColor=#e6efff>
    <p style="margin: 5">&nbsp;16.82 </TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" align=right width="10%"
    bgColor=#e6efff>
    <p style="margin: 5">10.00 </TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" align=right width="15%"
    bgColor=#e6efff>
    <p style="margin: 5">18,625,200 </TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" align=left width="16%"
    bgColor=#e6efff>
    <p style="margin: 5">April 2009 </TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" align=right width="10%"
    bgColor=#e6efff>
    <p style="margin: 5">13.61 </TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" align=right width="10%"
    bgColor=#e6efff>
    <p style="margin: 5">7.89 </TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" align=right width="15%"
    bgColor=#e6efff>
    <p style="margin: 5">39,019,200 </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" align=left>
    <p style="margin: 5">May 2009 </TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" align=right
      width="10%">
    <p style="margin: 5">&nbsp;19.67 </TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" align=right width="10%">
    <p style="margin: 5">12.01
    </TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" align=right
      width="15%">
    <p style="margin: 5">16,902,800 </TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" align=left width="16%">
    <p style="margin: 5">May
      2009 </TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" align=right width="10%">
    <p style="margin: 5">17.04
    </TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" align=right width="10%">
    <p style="margin: 5">10.36
    </TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" align=right
      width="15%">
    <p style="margin: 5">52,851,200 </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" align=left
      bgColor=#e6efff>
    <p style="margin: 5">June 2009 </TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" align=right width="10%"
    bgColor=#e6efff>
    <p style="margin: 5">&nbsp;19.33 </TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" align=right width="10%"
    bgColor=#e6efff>
    <p style="margin: 5">16.29 </TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" align=right width="15%"
    bgColor=#e6efff>
    <p style="margin: 5">9,262,800 </TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" align=left width="16%"
    bgColor=#e6efff>
    <p style="margin: 5">June 2009 </TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" align=right width="10%"
    bgColor=#e6efff>
    <p style="margin: 5">17.69 </TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" align=right width="10%"
    bgColor=#e6efff>
    <p style="margin: 5">14.09 </TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" align=right width="15%"
    bgColor=#e6efff>
    <p style="margin: 5">26,732,700 </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" align=left>
    <p style="margin: 5">July 2009 </TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" align=right
      width="10%">
    <p style="margin: 5">&nbsp;18.85 </TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" align=right width="10%">
    <p style="margin: 5">15.18
    </TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" align=right
      width="15%">
    <p style="margin: 5">6,405,600 </TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" align=left width="16%">
    <p style="margin: 5">July
      2009 </TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" align=right width="10%">
    <p style="margin: 5">17.28
    </TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" align=right width="10%">
    <p style="margin: 5">13.07
    </TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" align=right
      width="15%">
    <p style="margin: 5">13,808,100 </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" align=left
      bgColor=#e6efff>
    <p style="margin: 5">August 2009 </TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" align=right width="10%"
    bgColor=#e6efff>
    <p style="margin: 5">&nbsp;23.74 </TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" align=right width="10%"
    bgColor=#e6efff>
    <p style="margin: 5">17.78 </TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" align=right width="15%"
    bgColor=#e6efff>
    <p style="margin: 5">9,360,700 </TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" align=left width="16%"
    bgColor=#e6efff>
    <p style="margin: 5">August 2009 </TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" align=right width="10%"
    bgColor=#e6efff>
    <p style="margin: 5">22.10 </TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" align=right width="10%"
    bgColor=#e6efff>
    <p style="margin: 5">16.60 </TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" align=right width="15%"
    bgColor=#e6efff>
    <p style="margin: 5">17,820,100 </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" align=left>
    <p style="margin: 5">September 2009 </TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" align=right
      width="10%">
    <p style="margin: 5">&nbsp;22.94 </TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" align=right width="10%">
    <p style="margin: 5">19.71
    </TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" align=right
      width="15%">
    <p style="margin: 5">14,530,200 </TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" align=left
      width="16%">
    <p style="margin: 5">September 2009 </TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" align=right width="10%">
    <p style="margin: 5">21.00
    </TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" align=right width="10%">
    <p style="margin: 5">18.04
    </TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" align=right
      width="15%">
    <p style="margin: 5">16,787,900 </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" align=left
      bgColor=#e6efff>
    <p style="margin: 5">October 1 to 4, 2009 </TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" align=right width="10%"
    bgColor=#e6efff>
    <p style="margin: 5">&nbsp;21.16 </TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" align=right width="10%"
    bgColor=#e6efff>
    <p style="margin: 5">19.75 </TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" align=right width="15%"
    bgColor=#e6efff>
    <p style="margin: 5">700,100 </TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" align=left width="16%"
    bgColor=#e6efff>
    <p style="margin: 5">October 1 to 4, 2009 </TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" align=right width="10%"
    bgColor=#e6efff>
    <p style="margin: 5">19.74 </TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" align=right width="10%"
    bgColor=#e6efff>
    <p style="margin: 5">18.13 </TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" align=right width="15%"
    bgColor=#e6efff>
    <p style="margin: 5">&nbsp; &nbsp; &nbsp;922,700 </TD></TR></TABLE>
<P align=center>15</P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<!--$$/page=--><A name=page_18></A>
<P align=justify><B>7. DIRECTORS AND OFFICERS</B><BR></P>
<P align=justify>Listed below is certain information about the current directors
of Gildan. The directors have served in their respective capacities since their
election and/or appointment and will continue to serve until the next annual
meeting of shareholders or until a successor is duly elected. </P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0 height="453">

  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left height="16"><B>Name and
      Municipality of Residence</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      width="40%" height="16"><B>Principal Occupation</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      width="20%" height="16"><B>Director Since</B> </TD></TR>
  <TR>
    <TD align=left height="15"></TD>
    <TD align=left width="40%" height="15"></TD>
    <TD align=left width="20%" height="15"></TD></TR>
  <TR vAlign=top>
    <TD align=left bgcolor="#E6EFFF" height="17">Robert M. Baylis <SUP>(2)(3)(4)</SUP> </TD>
    <TD align=left width="40%" bgcolor="#E6EFFF" height="17">&nbsp; </TD>
    <TD align=left width="20%" bgcolor="#E6EFFF" height="17">&nbsp; </TD></TR>
  <TR vAlign=top>
    <TD align=left bgcolor="#E6EFFF" height="15">Darien, Connecticut, United States </TD>
    <TD align=left width="40%" bgcolor="#E6EFFF" height="15">Corporate Director </TD>
    <TD align=left width="20%" bgcolor="#E6EFFF" height="15">February 1999 </TD></TR>
  <TR>
    <TD align=left height="15"></TD>
    <TD align=left width="40%" height="15"></TD>
    <TD align=left width="20%" height="15"></TD></TR>
  <TR vAlign=top>
    <TD align=left bgcolor="#E6EFFF" height="15">Glenn J. Chamandy </TD>
    <TD align=left width="40%" bgcolor="#E6EFFF" height="15">&nbsp; </TD>
    <TD align=left width="20%" bgcolor="#E6EFFF" height="15">&nbsp; </TD></TR>
  <TR vAlign=top>
    <TD align=left bgcolor="#E6EFFF" height="15">Westmount, Qu&#233;bec, Canada </TD>
    <TD align=left width="40%" bgcolor="#E6EFFF" height="15">President and Chief Executive Officer of the
      Company </TD>
    <TD align=left width="20%" bgcolor="#E6EFFF" height="15">May 1984 </TD></TR>
  <TR>
    <TD align=left height="15"></TD>
    <TD align=left width="40%" height="15"></TD>
    <TD align=left width="20%" height="15"></TD></TR>
  <TR vAlign=top>
    <TD align=left bgcolor="#E6EFFF" height="17">William D. Anderson<SUP>(1)(3)</SUP> </TD>
    <TD align=left width="40%" bgcolor="#E6EFFF" height="17">&nbsp; </TD>
    <TD align=left width="20%" bgcolor="#E6EFFF" height="17">&nbsp; </TD></TR>
  <TR vAlign=top>
    <TD align=left bgcolor="#E6EFFF" height="15">Toronto, Ontario, Canada </TD>
    <TD align=left width="40%" bgcolor="#E6EFFF" height="15">Corporate Director </TD>
    <TD align=left width="20%" bgcolor="#E6EFFF" height="15">May 2006 </TD></TR>
  <TR>
    <TD align=left height="15"></TD>
    <TD align=left width="40%" height="15"></TD>
    <TD align=left width="20%" height="15"></TD></TR>
  <TR vAlign=top>
    <TD align=left bgcolor="#E6EFFF" height="17">George Heller<SUP>(1)(3)</SUP> </TD>
    <TD align=left width="40%" bgcolor="#E6EFFF" height="17">&nbsp; </TD>
    <TD align=left width="20%" bgcolor="#E6EFFF" height="17">&nbsp; </TD></TR>
  <TR vAlign=top>
    <TD align=left bgcolor="#E6EFFF" height="15">Toronto, Ontario, Canada </TD>
    <TD align=left width="40%" bgcolor="#E6EFFF" height="15">Corporate Director </TD>
    <TD align=left width="20%" bgcolor="#E6EFFF" height="15">December 2009 </TD></TR>
  <TR>
    <TD align=left height="15"></TD>
    <TD align=left width="40%" height="15"></TD>
    <TD align=left width="20%" height="15"></TD></TR>
  <TR vAlign=top>
    <TD align=left bgcolor="#E6EFFF" height="17">Sheila O&#146;Brien <SUP>(2)(3)</SUP> </TD>
    <TD align=left width="40%" bgcolor="#E6EFFF" height="17">&nbsp; </TD>
    <TD align=left width="20%" bgcolor="#E6EFFF" height="17">&nbsp; </TD></TR>
  <TR vAlign=top>
    <TD align=left bgcolor="#E6EFFF" height="15">Calgary, Alberta, Canada </TD>
    <TD align=left width="40%" bgcolor="#E6EFFF" height="15">Corporate Director and Business Advisor </TD>
    <TD align=left width="20%" bgcolor="#E6EFFF" height="15">June 2005 </TD></TR>
  <TR>
    <TD align=left height="15"></TD>
    <TD align=left width="40%" height="15"></TD>
    <TD align=left width="20%" height="15"></TD></TR>
  <TR vAlign=top>
    <TD align=left bgcolor="#E6EFFF" height="17">Pierre Robitaille<SUP>(1)(2)</SUP> </TD>
    <TD align=left width="40%" bgcolor="#E6EFFF" height="17">&nbsp; </TD>
    <TD align=left width="20%" bgcolor="#E6EFFF" height="17">&nbsp; </TD></TR>
  <TR vAlign=top>
    <TD align=left bgcolor="#E6EFFF" height="15">St-Lambert, Qu&#233;bec, Canada </TD>
    <TD align=left width="40%" bgcolor="#E6EFFF" height="15">Corporate Director and Business Advisor </TD>
    <TD align=left width="20%" bgcolor="#E6EFFF" height="15">February 2003 </TD></TR>
  <TR>
    <TD align=left height="15"></TD>
    <TD align=left width="40%" height="15"></TD>
    <TD align=left width="20%" height="15"></TD></TR>
  <TR vAlign=top>
    <TD align=left bgcolor="#E6EFFF" height="17">James R. Scarborough<SUP>(2)(3)</SUP> </TD>
    <TD align=left width="40%" bgcolor="#E6EFFF" height="17">&nbsp; </TD>
    <TD align=left width="20%" bgcolor="#E6EFFF" height="17">&nbsp; </TD></TR>
  <TR vAlign=top>
    <TD align=left bgcolor="#E6EFFF" height="15">Wolfeboro, New Hampshire, United States </TD>
    <TD align=left width="40%" bgcolor="#E6EFFF" height="15">Chairman of Stage Stores, Inc. </TD>
    <TD align=left width="20%" bgcolor="#E6EFFF" height="15">December 2009 </TD></TR>
  <TR vAlign=top>
    <TD align=left bgcolor="#E6EFFF" height="15">&nbsp; </TD>
    <TD align=left width="40%" bgcolor="#E6EFFF" height="15">(specialty department store retailer) </TD>
    <TD align=left width="20%" bgcolor="#E6EFFF" height="15">&nbsp; </TD></TR>
  <TR vAlign=top>
    <TD align=left height="17"> </TD>
    <TD align=left width="40%" height="17"> </TD>
    <TD align=left width="20%" height="17"> </TD></TR>
  <TR vAlign=top>
    <TD align=left height="17" bgcolor="#E6EFFF">Richard P. Strubel <SUP>(1)(3)</SUP> </TD>
    <TD align=left width="40%" height="17" bgcolor="#E6EFFF">&nbsp; </TD>
    <TD align=left width="20%" height="17" bgcolor="#E6EFFF">&nbsp; </TD></TR>
  <TR vAlign=top>
    <TD align=left height="15" bgcolor="#E6EFFF">Chicago, Illinois, United States </TD>
    <TD align=left width="40%" height="15" bgcolor="#E6EFFF">Corporate Director </TD>
    <TD align=left width="20%" height="15" bgcolor="#E6EFFF">February 1999 </TD></TR>
  <TR>
    <TD align=left height="16"></TD>
    <TD align=left width="40%" height="16"></TD>
    <TD align=left width="20%" height="16"></TD></TR>
  <TR vAlign=top>
    <TD align=left height="17" bgcolor="#E6EFFF">Gonzalo F. Valdes-Fauli<SUP>(1)(2)</SUP> </TD>
    <TD align=left width="40%" height="17" bgcolor="#E6EFFF">&nbsp; </TD>
    <TD align=left width="20%" height="17" bgcolor="#E6EFFF">&nbsp; </TD></TR>
  <TR vAlign=top>
    <TD align=left height="15" bgcolor="#E6EFFF">Key Biscayne, Florida, United States </TD>
    <TD align=left width="40%" height="15" bgcolor="#E6EFFF">Chairman of BroadSpan Capital LLC (investment banking firm)
    </TD>
    <TD align=left width="20%" height="15" bgcolor="#E6EFFF">October 2004 </TD></TR>
  </TABLE>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0 BCLLIST>

  <TR>
    <TD vAlign=top width="5%" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="15%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top width="5%">(1) </TD>
    <TD colSpan=2>
      <P align=justify>Member of the Audit and Finance Committee.</P></TD></TR>
  <TR>
    <TD vAlign=top width="5%">(2) </TD>
    <TD colSpan=2>
      <P align=justify>Member of the Corporate Governance Committee.</P></TD></TR>
  <TR>
    <TD vAlign=top width="5%">(3) </TD>
    <TD colSpan=2>
      <P align=justify>Member of the Human Resources and Compensation
      Committee.</P></TD></TR>
  <TR>
    <TD vAlign=top width="5%">(4) </TD>
    <TD colSpan=2>
      <P align=justify>Chairman of the Board.</P></TD></TR></TABLE>
<P align=justify>Listed below is certain information about the executive
officers of Gildan in office as of the date hereof.</P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left colSpan=3><B>Name
      and Municipality of Residence</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      width="64%"><B>Position Held Within the Company and Principal
      Occupation</B> </TD></TR>
  <TR>
    <TD align=left colSpan=3>&nbsp;</TD>
    <TD align=left width="64%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left colSpan=3 bgcolor="#E6EFFF">Glenn J. Chamandy <SUP>(1)</SUP> </TD>
    <TD align=left width="64%" bgcolor="#E6EFFF">&nbsp; </TD></TR>
  <TR vAlign=top>
    <TD align=left colSpan=3 bgcolor="#E6EFFF">Westmount, Qu&#233;bec, Canada </TD>
    <TD align=left width="64%" bgcolor="#E6EFFF">President, Chief Executive Officer and Director
    </TD></TR>
  <TR>
    <TD align=left colSpan=3>&nbsp;</TD>
    <TD align=left width="64%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left colSpan=3 bgcolor="#E6EFFF">Laurence G. Sellyn <SUP>(1)</SUP> </TD>
    <TD align=left width="64%" bgcolor="#E6EFFF">&nbsp; </TD></TR>
  <TR vAlign=top>
    <TD align=left colSpan=3 bgcolor="#E6EFFF">Beaconsfield, Qu&#233;bec, Canada </TD>
    <TD align=left width="64%" bgcolor="#E6EFFF">Executive Vice-President, Chief Financial and
      Administrative Officer </TD></TR>
  <TR>
    <TD align=left colSpan=3>&nbsp;</TD>
    <TD align=left width="64%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left colSpan=3 bgcolor="#E6EFFF">Michael R. Hoffman </TD>
    <TD align=left width="64%" bgcolor="#E6EFFF">&nbsp; </TD></TR>
  <TR vAlign=top>
    <TD align=left colSpan=3 bgcolor="#E6EFFF">St. James, Barbados </TD>
    <TD align=left width="64%" bgcolor="#E6EFFF">President, Gildan Activewear SRL </TD></TR>
  <TR>
    <TD align=left colSpan=3>&nbsp;</TD>
    <TD align=left width="64%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left colSpan=3 bgcolor="#E6EFFF">Georges Sam Yu Sum <SUP>(1)</SUP> </TD>
    <TD align=left width="64%" bgcolor="#E6EFFF">&nbsp; </TD></TR>
  <TR vAlign=top>
    <TD align=left colSpan=3 bgcolor="#E6EFFF">Hampstead, Qu&#233;bec, Canada </TD>
    <TD align=left width="64%" bgcolor="#E6EFFF">Executive Vice-President, Operations </TD></TR>
  <TR>
    <TD align=left colSpan=3>&nbsp;</TD>
    <TD align=left width="64%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left colSpan=3 bgcolor="#E6EFFF">Benito Masi <SUP>(1)</SUP> </TD>
    <TD align=left width="64%" bgcolor="#E6EFFF">&nbsp; </TD></TR>
  <TR vAlign=top>
    <TD align=left colSpan=3 bgcolor="#E6EFFF">Laval, Qu&#233;bec, Canada </TD>
    <TD align=left width="64%" bgcolor="#E6EFFF">Executive Vice-President, Manufacturing </TD></TR>
  <TR>
    <TD align=left colSpan=3>&nbsp;</TD>
    <TD align=left width="64%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left colSpan=3 bgcolor="#E6EFFF">Eric R. Lehman<SUP>(1)</SUP> </TD>
    <TD align=left width="64%" bgcolor="#E6EFFF">Executive Vice-President, Supply Chain,
      Information Technology and </TD></TR>
  <TR vAlign=top>
    <TD align=left colSpan=3 bgcolor="#E6EFFF">Montreal, Qu&#233;bec, Canada </TD>
    <TD align=left width="64%" bgcolor="#E6EFFF">Operational Excellence </TD></TR>
  <TR>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
    <TD align=left width="21%">&nbsp;</TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=left width="64%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left colSpan=3>(1)&nbsp;&nbsp;&nbsp;&nbsp; Officer of the Company. </TD>
    <TD align=left width="64%">&nbsp; </TD></TR></TABLE>
<P align=center>16</P>
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<P align=justify><I>Glenn J. Chamandy </I>is one of the founders of the Company
and has devoted his business career to leading the development of Gildan into an
industry leader. Prior to February 2004, Mr. Chamandy held the position of
President and Chief Operating Officer. He was then named President and Co-Chief
Executive Officer and, in August 2004, he was appointed to the position of
President and Chief Executive Officer. <I></I></P>
<P align=justify><I>Robert M. Baylis</I>, Chairman of the Board of the Company,
serves as a director of two large corporations, including the New York Life
Insurance Company (life insurance provider) and Host Hotels &amp; Resorts,
Inc<I>. </I>(luxury hotels and resorts) where he is Lead Director. He is also a
trustee and chairman of the executive committee of the Rubin Museum of Art in
New York City, a trustee of the Woods Hole Oceanographic Institution and an
overseer of the University of Pennsylvania Museum. He was formerly a director of
Covance Inc. (drug development), Partner Re Limited (reinsurance), Gryphon
Holdings, Inc. (insurance company) and of the Wharton International Forum, an
executive education program. Mr. Baylis retired from Credit Suisse First Boston
as Vice-Chairman in 1996, after thirty-three years with this investment banking
firm and its associated corporations, including a term as the Chairman and Chief
Executive Officer of Credit Suisse First Boston (Pacific). Mr. Baylis was
educated at Princeton University and Harvard Business School and is a chartered
financial analyst. </P>
<P align=justify><I>William D. Anderson</I> has had a career as a business
leader in Canada spanning over thirty years. Mr. Anderson joined the Bell Canada
organization in 1992, where from 1998 to 2001 he served as Chief Financial
Officer of BCE Inc., Canada&#146;s largest telecommunications company. From 2001 to
2005, Mr. Anderson served as President of BCE Ventures (the strategic investment
unit of BCE Inc.) and he was previously, from 2001 to 2007, the Chairman and
Chief Executive Officer of Bell Canada International Inc. (a subsidiary of BCE
that was formed to invest in telecommunications operations outside Canada).
Prior to joining the Bell Canada organization, Mr. Anderson was in public
practice for nearly twenty years with the accounting firm KPMG, where he was a
partner for eleven years. Mr. Anderson also serves on the boards of directors of
TransAlta Corporation (power generation and energy marketing firm) and MDS Inc.
(global life sciences company). Mr. Anderson was educated at the University of
Western Ontario and is a member of the Institute of Chartered Accountants of
Ontario. </P>
<P align=justify><I>George Heller</I> has had a career as a business leader in
the retail sector that spans over forty years. From 1999 to 2006, Mr. Heller
served as President and Chief Executive Officer of the Hudson&#146;s Bay Company,
Canada&#146;s largest diversified general merchandise retailer, operating more than
600 retail outlets in Canada under four banners: the Bay, Zellers, Home
Outfitters and Fields. Prior to that, Mr. Heller was President and Chief
Executive Officer of Zellers, the mass merchandise retailer of the Hudson&#146;s Bay
Company and a leading Canadian mass merchandise department store. Mr. Heller has
also held a number of other key positions in the retail industry, including as
President and Chief Executive Officer of Kmart Canada (discount department
stores), President, North America &amp; Europe of Bata Industries Ltd.
(international footwear manufacturer) and Executive Vice-President of Woodwards
Department Stores (department store chain). Mr. Heller also served as President
and Chief Executive Officer of the Victoria Commonwealth Games. He currently
serves as President of the Commonwealth Games of Canada Foundation (fundraiser
for amateur athletes) and is a member of its board of directors. Mr. Heller also
serves on the boards of directors of the Asia Pacific Foundation of Canada
(not-for-profit think-tank on Canada&#146;s relations with Asia) and Sport BC
(advocate for amateur sports in British Columbia). Mr. Heller has received
Honorary Doctorates from Ryerson University and University of Victoria.<I>
</I></P>
<P align=justify><I>Sheila O&#146;Brien, </I>CM is President of Belvedere 1
Investments Ltd., a private investment company, and is also a business advisor
and corporate director. She has had a thirty-year career as a senior executive
in the oil and gas and petrochemical sectors in the areas of human resources,
investor relations and public and government relations. Prior to 2004, Ms.
O&#146;Brien was Senior Vice-President, Human Resources, Public Affairs, Investor and
Government Relations at NOVA Chemicals Corporation, a producer of commodity
plastics and chemicals, where she was the architect of a corporate restructuring
practice that was designated a worldwide best practice by Watson Wyatt
Consulting Firm. She has also been active on the boards of directors of over
thirty public sector and not-for-profit organizations and was awarded the Order
of Canada for her community leadership in 1998. Ms. O&#146;Brien also serves on the
boards of directors of MaRS (Medical and Related Sciences) (biotechnology
accelerator), Advantage Energy Income Fund (oil and gas royalty trust) and Skye
Resources Inc. (nickel mining company), which merged with Hudbay Minerals in
August 2008. In addition to her corporate career, she has acted as a special
advisor to the president at the University of Calgary. She is a graduate of the
MTC program at the University of Western Ontario and completed a one-year
sabbatical on creativity and innovation at various U.S. schools in 1990. </P>
<P align=justify><I>Pierre Robitaille</I> is a business advisor and a corporate
director. Mr. Robitaille previously pursued his career at SNC-Lavalin Group
Inc., a global engineering-construction firm, where he was Executive
Vice-President and Chief Financial Officer from 1990 to 1998. Prior to this, Mr. Robitaille was in public practice for more than twenty years with the public
accounting and management consulting firm of Ernst &amp; Whinney, where he held
the positions of Managing Partner of the Montreal office, President of the firm
in Qu&#233;bec, and member of its national board of directors. Mr. Robitaille also
serves on the boards of directors of Nav Canada (civil air navigation services
provider), Swiss Re Holdings (Canada) Inc. and Swiss Re Life &amp; Health Co.
Canada (reinsurance companies). Mr. Robitaille is a Fellow member of the Qu&#233;bec
Order of Chartered Accountants. He was educated at HEC-Montreal and McGill
Business School. </P>
<P align=center>17</P>
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<P align=justify><I>James R. Scarborough</I> is the Chairman of the Board of
Stage Stores, Inc., a U.S.-based specialty department store retailer that
operates over 730 department stores in thirty-eight states under four banners:
Bealls, Palais Royal, Peebles and Stage. Mr. Scarborough has had a career as a
business leader in the retail sector that spans over thirty-five years. Mr.
Scarborough joined Stage Stores in 2000 as President and Chief Executive
Officer, and held this position until his retirement in 2008. Mr. Scarborough
previously held other senior positions in the retail sector, including President
and Chief Executive Officer of Busy Body, Inc. (a fitness equipment distributor)
and Seattle Lighting Fixtures Co. (a supplier of lighting fixtures to the
homebuilder and retail markets) as well as President and Chief Operating Officer
of Enstar Specialty Retail, Inc. (a footwear and women&#146;s apparel retailer) and
its subsidiary AMRET, Inc. Mr. Scarborough also serves on the board of directors
of Charming Charlie, Inc. (a women&#146;s fashion accessories house). Mr. Scarborough
was educated at St. Michael&#146;s College. </P>
<P align=justify><I>Richard P. Strubel</I> is a corporate director. Prior to
2008, he was Vice-Chairman of the Board of Cardean Learning Group (formerly
known as Unext), a provider of advanced education over the Internet, where from
1999 to 2004 he served as President and Chief Operating Officer. From 1990 to
1999, Mr. Strubel was Managing Director of Tandem Partners, Inc., a
privately-held management services firm, and from 1984 to 1994, he served as
President and Chief Executive Officer of Microdot, Inc. Prior to that, Mr.
Strubel served as President of Northwest Industries, then a NYSE-listed company,
which included Fruit of the Loom and BVD among its operating entities. Mr.
Strubel also serves on the boards of directors of the mutual funds of Goldman
Sachs &amp; Co. and Goldman Sachs Hedge Fund Partners, and is Chairman of the
Board of the Mutual Funds of The Northern Trust. Mr. Strubel is also Trustee of
the University of Chicago and Chairman of its Audit Committee. He was educated
at Williams College and Harvard Business School.<B> </B></P>
<P align=justify><I>Gonzalo F. Valdes-Fauli</I> is Chairman of the Board of
BroadSpan Capital LLC, an investment banking firm specializing in financial
advisory services. Mr. Valdes-Fauli retired from Barclays Bank PLC (major
UK-based global bank) in 2001, where he held the position of Vice-Chairman,
Barclays Capital, and Group CEO, Latin America. Mr. Valdes-Fauli also serves on
the board of directors of Blue Cross Shield of Florida (health insurance
provider), where he is Lead Director. Mr. Valdes-Fauli also served as Chairman
of the Board of Republic Bank of Dominican Republic (financial services
provider) until November 2007. He is also Trustee Emeritus of the University of
Miami and Spring Hill College in Mobile, Alabama. Mr. Valdes-Fauli holds a
Master&#146;s Degree in international finance from Thunderbird Graduate School for
International Management. </P>
<P align=justify><I>Laurence G. Sellyn </I>was appointed to the position of
Executive Vice-President, Chief Financial and Administrative Officer of the
Company in November 2005. He joined Gildan as Executive Vice-President, Finance
and Chief Financial Officer of the Company in April 1999. Prior to joining
Gildan, Mr. Sellyn served as Senior Vice-President, Finance and Corporate
Development and Chief Financial Officer of Wajax Limited, an industrial
distribution company, where he was employed from October 1992 to March 1999.
Prior to joining Wajax, he was employed by Domtar Inc., where he held various
positions, including Corporate Controller and Vice-President, Business Planning
and Development. Mr. Sellyn is a Fellow of the Institute of Chartered
Accountants of England and Wales and a graduate of Oxford University. Since June
2008, Mr. Sellyn has been on the advisory board of H&#233;ritage Montr&#233;al. He was the
Chairman of its 2008 Fundraising Campaign and is acting as Co-Chairman of the
Campaign in 2009.</P>
<P align=justify><I>Michael R. Hoffman</I> joined Gildan in October 1997. He
served as Vice-President, Sales and Marketing for the international division
until his appointment as President of Gildan Activewear SRL in February 2001.
Prior to joining Gildan, Mr. Hoffman was employed by Fruit of the Loom, Inc.,
where he last served as Divisional Vice-President of the Activewear Division.
</P>
<P align=justify><I>Georges Sam Yu Sum</I> has been Executive Vice-President,
Operations of the Company since 2000. From 1998 to 2000, he served as
Vice-President, Operations of the Company and from 1995 to 1998, he served as
Director of Operations of the Company. Prior to joining Gildan in 1995, Mr. Sam
Yu Sum spent sixteen years with Dominion Textiles, where he served in various
managerial capacities, from manufacturing to sales. </P>
<P align=center>18</P>
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<P align=justify><I>Benito Masi</I> has been involved in apparel manufacturing
in North America for over twenty-five years. He joined Gildan in 1986, where he
held various positions. He was appointed Vice-President, Apparel Manufacturing
in February 2001 and his title was changed to Vice-President, Corporate Apparel
Operations in September 2003. In August 2004, he was appointed Executive
Vice-President, Apparel Manufacturing and was appointed Executive
Vice-President, Manufacturing in January 2005. </P>
<P align=justify><I>Eric R. Lehman</I> joined the Company in December 2006 as
Executive Vice-President, Supply Chain. In November 2008, Mr. Lehman&#146;s
responsibilities were expanded to include information technology and operational
excellence and his title changed to Executive Vice-President, Supply Chain,
Information Technology and Operational Excellence. He has over twenty years of
experience in the supply chain function with major national apparel brands.
Prior to joining Gildan, Mr. Lehman was employed by Russell Corporation, where
he last served as Vice President of Supply Chain. Prior to that, he held senior
supply chain planning positions at both Fruit of the Loom, Inc. and the Hanes
Division of Sara Lee Corporation. </P>
<P align=justify>As at December 9, 2009, the executive officers and directors of
the Company as a group own 10,505,528 Common Shares, which represents 8.7% of
the voting rights attached to all Common Shares. </P>
<P align=justify><B>8.  </B></P>
<P align=justify style="margin-left: 45pt; margin-top: -25.5pt"><B>AUDIT COMMITTEE DISCLOSURE </B></P>
<P align=justify><B>Mandate of the
Audit and Finance Committee</B><BR></P>
<P align=justify>The mandate of the Audit and Finance Committee is included
herewith as Appendix A.</P>
<P align=justify><B>Composition of the Audit and Finance Committee</B><BR></P>
<P align=justify>The Audit and Finance Committee is composed of five independent
and financially literate directors, as those terms are defined in the rules of
the Canadian Securities Administrators and the U.S. Securities and Exchange
Commission as well as the standards of the NYSE. Their education and experience
that are relevant to the performance of their responsibilities as members of the
Audit and Finance Committee are as follows: </P>
<P align=justify><B><I>William D. Anderson</I></B> &#150; Mr. Anderson, the Chairman
of the Audit and Finance Committee, is a chartered accountant and has had a
business career spanning over thirty years. From 1998 to 2001, he served as
Chief Financial Officer of BCE Inc., Canada&#146;s largest telecommunications
company. Most recently, Mr. Anderson served as President of BCE Ventures (the
strategic investment unit of BCE Inc.) and previously he was the Chairman and
Chief Executive Officer of Bell Canada International Inc. (a subsidiary of BCE
that was formed to invest in telecommunications operations outside Canada).
Prior to joining the Bell Canada organization in 1992, Mr. Anderson was in
public practice for nearly twenty years with the accounting firm KPMG, where he
was a partner for eleven years. Mr. Anderson was educated at the University of
Western Ontario and is a member of the Institute of Chartered Accountants of
Ontario. </P>
<P align=justify><B><I>Pierre Robitaille</I></B> &#150; Mr. Robitaille is a business
advisor and corporate director. He is retired from SNC-Lavalin Group Inc., a
global engineering-construction firm, where he was Executive Vice-President and
Chief Financial Officer from 1990 to 1998. Prior to this, Mr. Robitaille was in
public practice for more than twenty years with the public accounting and
management consulting firm of Ernst &amp; Whinney, where he held the positions
of Managing Partner of the Montreal office, President of the firm in Qu&#233;bec and
member of the firm&#146;s national board of directors. Over the course of his career,
Mr. Robitaille has acquired competence in the audit of major public and private
companies and a familiarity with internal controls and financial reporting
procedures. Mr. Robitaille is a Fellow member of the Qu&#233;bec Order of Chartered
Accountants. He was educated at HEC-University of Montreal and McGill Business
School. </P>
<P align=justify><B><I>Richard P. Strubel</I></B> &#150; Mr. Strubel is a corporate
director. Prior to 2008, he was Vice-Chairman of the Board of Cardean Learning
Group, a provider of advanced education over the Internet, where he previously
served as President and Chief Operating Officer. Prior to that, Mr. Strubel
served as Managing Director of Tandem Partners, Inc., a privately-held
management services firm, and from 1984 to 1994, he served as President and
Chief Executive Officer of Microdot, Inc. and President of Northwest Industries,
then a NYSE-listed company which included Fruit of the Loom and BVD among its
operating entities. Mr. Strubel also serves on the boards of directors of the
mutual funds of Goldman Sachs &amp; Co., and Goldman Sachs Hedge Fund Partners
and is Chairman of the Board of the Mutual Funds of The Northern
Trust. Mr. Strubel is also Trustee of the University of Chicago and Chairman of
its Audit Committee. He was educated at Williams College and Harvard Business
School. </P>
<P align=center>19</P>
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<P align=justify><B><I>Gonzalo F. Valdes-Fauli</I></B> &#150; Mr. Valdes-Fauli is a
retired Vice-Chairman of Barclays Capital, the investment banking division of
Barclays Bank, London, England. Mr. Valdes-Fauli served as a member of the
management committee of Barclays Capital from 1988 to 2001. He was Group CEO of
Barclays Bank Latin America from 1988 to 2001. He is Chairman of BroadSpan
Capital LLC, an investment banking firm, and served as Chairman of the Board of
Republic Bank of Dominican Republic until November 2007. Mr. Valdes-Fauli has
more than thirty years of experience in finance and holds a Master&#146;s Degree in
international finance from Thunderbird Graduate School for International
Management. </P>
<P align=justify><B><I>George Heller</I></B> &#150; Mr. Heller is the retired
President and Chief Executive Officer of the Hudson&#146;s Bay Company, Canada&#146;s
largest diversified general merchandise retailer, a position he held from 1998
to 2006. Mr. Heller&#146;s career in the retail sector spans over forty years and he
has held a number of key executive positions in that industry, including as
President and Chief Executive Officer of Zellers, the mass merchandise retailer
of the Hudson&#146;s Bay Company, President and Chief Executive Officer of Kmart
Canada (discount department stores), President, North America &amp; Europe of
Bata Industries Ltd. (international footwear manufacturer) and Executive
Vice-President of Woodwards Department Stores (department store chain).</P>
<P align=justify><B>Pre-Approval of Non-Audit Services</B><BR></P>
<P align=justify>In accordance with the Code of Ethics of Chartered Accountants
of Quebec&#146;s independence standards for auditors, the <I>Sarbanes-Oxley Act of
2002</I> and rules of the U.S. Securities and Exchange Commission, the Company
is restricted from engaging its external auditor to provide certain non-audit
services to the Company and its subsidiaries, including bookkeeping or other
services related to the accounting records or financial statements, information
technology services, valuation services, actuarial services, internal audit
services, corporate finance services, management functions, human resources
functions, legal services and expert services unrelated to the audit. The
Company does engage its external auditor from time to time to provide certain
non-audit services other than the restricted services. All non-audit services
must be specifically pre-approved by the Audit and Finance Committee. </P>
<P align=justify><B>External Auditor Service Fees</B><BR></P>
<P align=justify>The aggregate fees billed by KPMG LLP (&#147;KPMG&#148;), the Company&#146;s
external auditor, for various audit-related and non-audit services rendered for
the fiscal years 2009 and 2008 were as follows: </P>
<P align=justify><I>Audit Fees </I>&#151; The aggregate audit fees billed by KPMG for
professional services rendered for the annual audit of the Company&#146;s
consolidated financial statements, quarterly reviews of the Company&#146;s financial
statements and services provided in connection with statutory and regulatory
filings or engagements were Cdn$1,373,897 for fiscal 2009 and Cdn$1,289,028 for
fiscal 2008. The audit fees include fees relating to KPMG&#146;s audit of the
effectiveness of the Company&#146;s internal control over financial reporting. </P>
<P align=justify><I>Audit-Related Fees </I>&#151; The aggregate audit-related fees
billed by KPMG were Cdn$118,500 for fiscal 2009 and Cdn$114,400 for fiscal 2008.
These services consisted of miscellaneous assurance services.</P>
<P align=justify><I>Tax Fees</I> &#151; The aggregate tax fees billed by KPMG were
Cdn$261,474.44 for fiscal 2009 and Cdn$484,817 for fiscal 2008. These services
consisted of tax compliance, including the review of tax returns, assistance
regarding income, capital and sales tax audits, the preparation of annual
transfer pricing studies, tax advisory services relating to domestic and
international taxation. </P>
<P align=justify><I>All Other Fees </I>&#151; The aggregate fees billed by KPMG for
all other professional services rendered were nil for fiscal 2009 and nil for
fiscal 2008. </P>
<P align=center>20</P>
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<P align=justify><B>9. </B></P>
<P align=justify style="margin-left: 45pt; margin-top: -25.5pt"><B>LEGAL
PROCEEDINGS</B><BR></P>
<P align=justify>With the exception of the legal proceedings mentioned below,
the Company is only a party to claims and litigation arising in the normal
course of its operations. While we cannot predict the final outcome of the
claims and litigation arising in the normal course of its operations, management
does not currently expect the resolution of these matters to have a material
adverse effect on the consolidated financial position or results of operations
of Gildan.</P>
<P align=justify>As of the date hereof, the claims with respect to which Gildan
was a party to or involved in, for damages in excess of 10% of its current
assets, are the following: </P>
<P align=justify><B>Canadian Class Action Suits</B><BR></P>
<P align=justify>On June 12, 2008, a proposed class action lawsuit on behalf of
persons who acquired Common Shares between August 2, 2007 and April 29, 2008 was
filed in the Ontario Superior Court of Justice alleging negligence and
negligent/reckless misrepresentation in respect of the Company&#146;s prior
statements concerning its financial guidance for the 2008 fiscal year and
comments regarding the scale of production of its Dominican Republic facility.
The claim further proposes to seek leave from the Ontario court to bring
statutory misrepresentation civil liability claims under Ontario&#146;s <I>Securities
Act</I>. A motion, along with affidavit evidence, for leave to pursue such
statutory liability claims and class certification have been filed by the
plaintiff. No date has been set yet for the hearing of that motion. The Ontario
suit claims damages of Cdn$500 million, punitive damages of Cdn$5 million and
other monetary relief.</P>
<P align=justify>A motion has also been filed on June 17, 2008 before the Qu&#233;bec
Superior Court for authorization to commence a class proceeding on behalf of
persons who acquired Common Shares between August 2, 2007 and April 29, 2008. It
makes similar allegations as the Ontario Action and alleges negligence and
negligent/reckless misrepresentation. No date has been set yet for the hearing
of that motion. The Qu&#233;bec motion seeks to proceed with a claim for unspecified
damages and other monetary relief.</P>
<P align=justify>Both Canadian proceedings have yet to be certified as class
actions by their respective courts. 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. </P>
<P align=justify><B>United States Class Action Suits</B><BR></P>
<P align=justify>On June 9, 2008, Gildan and certain of its senior officers were
named as defendants in several proposed class action lawsuits filed in the
United States District Court for the Southern District of New York on behalf of
persons who purchased or otherwise acquired Common Shares between August 2, 2007
and April 29, 2008. The lawsuits allege violations of United States federal
securities laws and assert that the Company issued a series of materially false
and misleading statements concerning the Company&#146;s financial performance and
prospects. These U.S. lawsuits have been consolidated, and a consolidated
amended complaint was filed on November 17, 2008. The claims in the U.S. suit
are for unspecified damages. </P>
<P align=justify>On July 1, 2009, the United States District Court granted the
motion by Gildan and other defendants to dismiss the action in its entirety,
holding that the consolidated amended complaint failed to adequately allege the
essential elements of a claim under the applicable provisions of the United
States federal securities laws, including the existence of a material
misstatement and fraudulent intent. On July 17, 2009, plaintiffs filed a motion
seeking reconsideration of this decision only insofar as it declined to grant
plaintiffs an opportunity to file a second amended complaint. On July 31, 2009,
Gildan and the other defendants filed a response to plaintiffs&#146; motion seeking
reconsideration. On December 4, 2009, plaintiff&#146;s motion seeking reconsideration
was denied. </P>
<P align=justify>The U.S. proceeding has yet to be certified as a class action
by the court. 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. </P>
<P align=center>21</P>
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<P align=justify><B>10. </B></P>
<P align=justify style="margin-left: 45pt; margin-top: -25.5pt"><B>TRANSFER
AGENT AND REGISTRAR</B><BR></P>
<P align=justify>The transfer agent and registrar of the Company is
Computershare Investor Services Inc., having offices in Montreal and Toronto at
which the register of transfer of the Common Shares is held. The co-transfer
agent and co-registrar of the Company is Computershare Trust Company, N.A.,
having an office in Golden, Colorado. </P>
<P align=justify><B>11. </B></P>
<P align=justify style="margin-left: 45pt; margin-top: -25.5pt"><B>MATERIAL
CONTRACTS</B><BR></P>
<P align=justify>Other than the agreements entered into the normal course of
business, the only material agreement entered into in fiscal 2009, or before
fiscal 2009 and which is still in force is the Shareholder Rights Plan Agreement
approved by the Board of Directors on December 1, 2004 and subsequently ratified
by the Company&#146;s shareholders on February 2, 2005. This agreement was filed
through SEDAR on December 2, 2004. </P>
<P align=justify><B>12. </B></P>
<P align=justify style="margin-left: 45pt; margin-top: -25.5pt"><B>INTERESTS OF
EXPERTS</B><BR></P>
<P align=justify>KPMG, the external auditor of the Company, reported on the 2009
Financial Statements, which were filed with the securities regulatory
authorities. We are advised that, as at the date hereof, the members of KPMG are
independent in accordance with the Code of Ethics of the <I>Ordre des Comptables
agr&#233;&#233;s du Qu&#233;bec</I>. These rules are equivalent or similar to Rules of
Professional Conduct applicable to chartered accountants in the other provinces
of Canada.<I> </I></P>
<P align=justify><B>13. </B></P>
<P align=justify style="margin-left: 45pt; margin-top: -25.5pt"><B>FORWARD &#150;
LOOKING STATEMENTS</B><BR></P>
<P align=justify>Certain statements included in this Annual information Form
constitute &#147;forward-looking statements&#148; within the meaning of the U.S.
<I>Private Securities Litigation Reform Act of 1995</I> and Canadian securities
legislation and regulations, and are subject to important risks, uncertainties
and assumptions. This forward-looking information includes, amongst others,
information with respect to our objectives and the strategies to achieve these
objectives, as well as information with respect to our beliefs, plans,
expectations, anticipations, estimates and intentions. Forward-looking
statements generally can be identified by the use of conditional or
forward-looking terminology such as &#147;may&#148;, &#147;will&#148;, &#147;expect&#148;, &#147;intend&#148;,
&#147;estimate&#148;, &#147;project&#148;, &#147;assume&#148;, &#147;anticipate&#148;, &#147;plan&#148;, &#147;foresee&#148;, &#147;believe&#148; or
&#147;continue&#148; or the negatives of these terms or variations of them or similar
terminology. We refer you to the Company&#146;s filings with the Canadian securities
regulatory authorities and the U.S. Securities and Exchange Commission, as well
as the &#147;Financial Risk Management&#148; section beginning on page 21 of the 2009 Annual
MD&amp;A, and the risks described under the section &#147;Risks and Uncertainties&#148;
beginning on
page 32 of the 2009 Annual MD&amp;A for a discussion of the various
factors that may affect the Company&#146;s future results. Material factors and
assumptions that were applied in drawing a conclusion or making a forecast or
projection are also set out throughout this document. </P>
<P align=justify>Forward-looking information is inherently uncertain and the
results or events predicted in such forward-looking information may differ
materially from actual results or events. Material factors, which could cause
actual results or events to differ materially from a conclusion, forecast or
projection in such forward-looking information, include, but are not limited to:
</P>
<UL style="TEXT-ALIGN: justify">
  <LI>our ability to implement our growth strategies and plans, including
  achieving market share gains, implementing cost reduction initiatives and
  completing and successfully integrating acquisitions;
  <LI>the intensity of competitive activity and our ability to compete
  effectively;
  <LI>adverse changes in general economic and financial conditions globally or
  in one or more of the markets we serve;
  <LI>our reliance on a small number of significant customers;
  <LI>the fact that our customers do not commit contractually to minimum
  quantity purchases;
  <LI>our ability to anticipate changes in consumer preferences and trends;
  <LI>our ability to manage inventory levels effectively in relation to changes
  in customer demand;
  <LI>fluctuations and volatility in the price of raw materials used to
  manufacture our products, such as cotton and polyester fibres;
  <LI>our dependence on key suppliers and our ability to maintain an
  uninterrupted supply of raw materials;
  <LI>the impact of climate, political, social and economic risks in the
  countries in which we operate, including the current political instability in
  Honduras; </LI></UL>
<P align=center>22</P>
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<UL style="TEXT-ALIGN: justify">
  <LI>disruption to manufacturing and distribution activities due to labour
  disruptions, political instability, bad weather, natural disasters and other
  unforeseen adverse events;
  <LI>changes to international trade legislation that the Company is currently
  relying on in conducting its manufacturing operations or the application of
  safeguards thereunder;
  <LI>factors or circumstances that could increase our effective income tax
  rate, including the outcome of any tax audits or changes to applicable tax
  laws or treaties;
  <LI>compliance with applicable environmental, tax, trade, employment, health
  and safety, and other laws and regulations in the jurisdictions in which we
  operate;
  <LI>our significant reliance on computerized information systems for our
  business operations;
  <LI>changes in our relationship with our employees or changes to domestic and
  foreign employment laws and regulations;
  <LI>negative publicity as a result of violation of labour laws or unethical
  labour or other business practices by the Company or one of its third-party
  contractors;
  <LI>our dependence on key management and our ability to attract and retain key
  personnel;
  <LI>changes to and failure to comply with consumer product safety laws and
  regulations, including the recently enacted U.S. Consumer Product Safety
  Improvement Act;
  <LI>changes in accounting policies and estimates; and
  <LI>exposure to risks arising from financial instruments, including credit
  risk, liquidity risk, foreign currency risk and interest rate risk. </LI></UL>
<P align=justify>These factors may cause the Company&#146;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, may have on the Company&#146;s business.
For example, they do not include the effect of business dispositions,
acquisitions, other business transactions, asset write-downs 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>
<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&#146;s
expectations regarding the Company&#146;s fiscal 2010 financial performance and may
not be appropriate for other purposes. Furthermore, unless otherwise stated, the
forward-looking statements contained in this Annual Information Form are made as
of the date hereof, 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
Annual Information Form are expressly qualified by this cautionary statement.
</P>
<P align=justify><B>14. </B></P>
<P align=justify style="margin-left: 45pt; margin-top: -25.5pt"><B>ADDITIONAL
INFORMATION</B><BR></P>
<P align=justify>Additional information, including directors&#146; and officers&#146;
remuneration and indebtedness, principal holders of the Company&#146;s securities and
securities authorized for insurance under the Company&#146;s equity compensation
plans is contained in the Circular. Additional financial information is provided
in the 2009 Financial Statements and the 2009 Annual MD&amp;A for its most
recently completed financial year, both of which are incorporated herein by
reference. </P>
<P align=justify>Copies of these documents and additional information relating
to Gildan may be found on the SEDAR website at www.sedar.com and the EDGAR
website at www.sec.gov and may also be obtained upon request to the Secretary of
Gildan at the following address: </P>
<P style="MARGIN-LEFT: 5%" align=justify>600 de Maisonneuve Boulevard West,
33<SUP>rd</SUP> Floor<BR>Montreal, Qu&#233;bec <BR>H3A 3J2 <BR>Telephone: (514)
735-2023 <BR></P>
<P align=justify>The documents mentioned above, as well as Gildan&#146;s news
releases, are also available on the Company&#146;s website at www.gildan.com. </P>
<P align=center>23</P>
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<P align=center><B>APPENDIX A - MANDATE OF THE AUDIT AND FINANCE
COMMITTEE</B></P>
<P align=justify>The following description of the mandate of the Audit and
Finance Committee of the Company complies with applicable Canadian laws and
regulations, such as the rules of the Canadian Securities Administrators, and
with the disclosure and listing requirements of the Toronto Stock Exchange
(collectively, the &#147;<B>Canadian Corporate Governance Standards</B>&#148;), as they
exist on the date hereof. In addition, this mandate complies with applicable
U.S. laws, such as the <I>Sarbanes-Oxley Act of 2002</I>,<I> </I>and rules and
regulations adopted thereunder, and with the New York Stock Exchange&#146;s corporate
governance standards (collectively, the &#147;<B>US Corporate Governance
Standards</B>&#148;), as they exist on the date hereof. The mandate of the Audit and
Finance Committee of the Company (the &#147;<B>Audit Committee</B>&#148;) shall be
reviewed annually by the Board in order to ensure on-going compliance with such
standards. </P>
<P align=justify><B>1. </B></P>
<P align=justify style="margin-left: 30pt; margin-top: -25.5pt"><B>Membership
and Quorum </B><BR></P>
<UL style="TEXT-ALIGN: justify">
  <LI>
  <p style="margin-bottom: 10">a minimum of three directors;
  <LI>
  <p style="margin-bottom: 10">only &#147;independent&#148; (as contemplated by Canadian Corporate Governance
  Standards and US Corporate Governance Standards) directors shall be appointed,
  the whole as determined by the Board; no affiliate of the Company or any of
  its subsidiaries (including any person who, directly or indirectly, controls
  or is controlled by, or is under common control with the Company, or any
  director, executive officer, partner, member, principal or designee of such
  affiliate) may serve on the Audit Committee; a member of the Audit Committee
  shall receive no compensation from the Company or any of its affiliates other
  than compensation as a director and committee member of the Company;
  prohibited compensation includes fees paid, directly or indirectly, for
  services as a consultant or as legal or financial advisor, regardless of the
  amount;
  <LI>
  <p style="margin-bottom: 10">each member must be &#147;financially literate&#148; (as contemplated by Canadian
  Corporate Governance Standards and US Corporate Governance Standards), as
  determined by the Board;
  <LI>
  <p style="margin-bottom: 10">at least one member must be an &#147;audit committee financial expert&#148; (as
  contemplated by US Corporate Governance Standards), as determined by the
  Board;
  <LI>
  <p style="margin-bottom: 10">members of the Audit Committee shall be appointed annually by the Board
  upon recommendation of the Company&#146;s Corporate Governance Committee; such
  members may be removed or replaced, and any vacancies on the Audit Committee
  shall be filled by the Board upon recommendation of the Company&#146;s Corporate
  Governance Committee; membership on the Audit Committee shall automatically
  end at such time the Board determines that a member ceases to be &#147;independent&#148;
  as determined in the manner set forth above;
  <LI>
  <p style="margin-bottom: 10">quorum of majority of members. </LI></UL>
<P align=justify><B>2. </B></P>
<P align=justify style="margin-left: 30pt; margin-top: -25.5pt"><B>Frequency and
Timing of Meetings </B></P>
<UL style="TEXT-ALIGN: justify">
  <LI>
  <p style="margin-bottom: 10">normally contemporaneously with the Company&#146;s Board meetings;
  <LI>
  <p style="margin-bottom: 10">at least four times a year and as necessary. </LI></UL>
<P align=justify><B>3. </B></P>
<P align=justify style="margin-left: 30pt; margin-top: -25.5pt"><B>Mandate </B></P>
<P align=justify>The responsibilities of the Audit Committee include the
following:</P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0 BCLLIST>

  <TR>
    <TD width="5%"  >&nbsp;</TD>
    <TD vAlign=top width="5%"><I>(a)</I> </TD>
    <TD>
      <P align=justify><I>Overseeing financial
reporting</I></P></TD></TR></TABLE>
<UL style="TEXT-ALIGN: justify">
  <LI>
  <p style="margin-left: 10%">monitoring the integrity and quality of the Company&#146;s accounting and
  financial reporting process, disclosure controls and procedures, and systems
  of internal control, through independent discussions with management, the
  external auditors and the internal auditors; </LI></UL>
<P style="MARGIN-LEFT: 20%" align=center>24</P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
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<UL style="TEXT-ALIGN: justify">
  <LI>
  <p style="margin-left: 10%; margin-bottom: 10">reviewing, with management and the external auditors, the annual audited
  statements as well as the report of the auditors thereon to be included in the
  Annual Report of the Company, including the Company&#146;s MD&amp;A disclosure and
  annual earnings press release, prior to their release, filing and
  distribution;
  <LI>
  <p style="margin-left: 10%; margin-bottom: 10">reviewing, with management and the external auditors, quarterly
  consolidated financial statements of the Company and accompanying information,
  including the Company&#146;s MD&amp;A disclosure and quarterly earnings press
  release, prior to their release, filing and distribution;
  <LI>
  <p style="margin-left: 10%; margin-bottom: 10">reviewing, with management and external auditors, the financial
  information contained in prospectuses, offering memoranda, Annual Information
  Forms, Management Proxy Circulars, Forms 6-K (including Supplemental
  Disclosure) and 40-F and any other document required to be disclosed or filed
  by the Company before their public disclosure or filing with regulatory
  authorities in Canada or the United States of America;
  <LI>
  <p style="margin-left: 10%; margin-bottom: 10">reviewing, with management, the level and type of financial information
  (including earnings guidance and other material forward-looking information)
  provided from time to time to analysts, investors, rating agencies and other
  stakeholders;
  <LI>
  <p style="margin-left: 10%; margin-bottom: 10">reviewing, with management, that adequate procedures are in place for the
  review of the Company&#146;s disclosure of financial information extracted or
  derived from the Company&#146;s financial statements, such as annual reports and
  investor presentations, and periodically assessing the adequacy of those
  procedures;
  <LI>
  <p style="margin-left: 10%; margin-bottom: 10">reviewing, with the external auditors and management, the quality,
  appropriateness and disclosure of the Company&#146;s accounting principles and
  policies, underlying assumptions and reporting practices, and any proposed
  changes thereto;
  <LI>
  <p style="margin-left: 10%; margin-bottom: 10">reviewing any analysis or other written communications prepared by
  management, the internal auditors or external auditors setting forth
  significant financial reporting issues and judgments made in connection with
  the preparation of the financial statements, including analyses of the effect
  of alternative generally accepted accounting principles methods;
  <LI>
  <p style="margin-left: 10%; margin-bottom: 10">reviewing the external auditors&#146; quarterly review engagement report;
  <LI>
  <p style="margin-left: 10%; margin-bottom: 10">overseeing the procedures to review management certifications filed with
  applicable securities regulators;
  <LI>
  <p style="margin-left: 10%; margin-bottom: 10">reviewing the potential impact of any litigation, claim or other
  contingency and any regulatory or accounting initiatives that could have a
  material effect upon the financial position or operating results of the
  Company and the appropriateness of the disclosure thereof in the documents
  reviewed by the Audit Committee;
  <LI>
  <p style="margin-left: 10%; margin-bottom: 10">overseeing the procedures to monitor the public disclosure of information
  by the Company;
  <LI>
  <p style="margin-left: 10%; margin-bottom: 10">reviewing at least annually the Company&#146;s disclosure policy;
  <LI>
  <p style="margin-left: 10%; margin-bottom: 10">reviewing the results of the external audit, any significant problems
  encountered in performing the audit, and management's response and/or action
  plan related to any Management Letter issued by the external auditors and any
  significant recommendations contained therein. </LI></UL>
<P align=center>25</P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
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<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0 BCLLIST>

  <TR>
    <TD width="5%"  >&nbsp;</TD>
    <TD vAlign=top width="5%">&nbsp;</TD>
    <TD>
      &nbsp;</TD></TR>

  <TR>
    <TD width="5%"  >&nbsp;</TD>
    <TD vAlign=top width="5%"><I>(b)</I> </TD>
    <TD>
      <P align=justify><I>Monitoring risk management and internal
      controls</I></P></TD></TR></TABLE>
<UL style="TEXT-ALIGN: justify">
  <LI>
  <p style="margin-left: 10%; margin-bottom: 10">receiving periodically management&#146;s report assessing the adequacy and
  effectiveness of the Company&#146;s disclosure controls and procedures and systems
  of internal control over financial reporting; </LI></UL>
<UL style="TEXT-ALIGN: justify">
  <LI>
  <p style="margin-left: 10%; margin-bottom: 10">reviewing insurance coverage (annually and as may otherwise be
  appropriate);
  <LI>
  <p style="margin-left: 10%; margin-bottom: 10">overseeing the processes in place to identify business risks and
  opportunities and overseeing the implementation of processes to manage these
  risks and opportunities;
  <LI>
  <p style="margin-left: 10%; margin-bottom: 10">reviewing policies and their parameters regarding such items as interest
  rate, foreign exchange risks, commodity purchases and any similar transactions
  where the Company enters into derivatives contracts;
  <LI>
  <p style="margin-left: 10%; margin-bottom: 10">assisting the Board with the oversight of the Company&#146;s compliance with,
  and reviewing the Company&#146;s processes for complying with, applicable legal and
  regulatory requirements;
  <LI>
  <p style="margin-left: 10%; margin-bottom: 10">overseeing the confidential, anonymous procedures for the receipt,
  retention and treatment of complaints or concerns received by the Company
  regarding accounting, internal accounting controls or auditing matters or
  employee concerns regarding accounting or auditing matters;
  <LI>
  <p style="margin-left: 10%; margin-bottom: 10">requesting the performance of any specific audit, as required. </LI></UL>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0 BCLLIST>

  <TR>
    <TD width="5%"  >&nbsp;</TD>
    <TD vAlign=top width="5%"><I>(c)</I> </TD>
    <TD>
      <P align=justify><I>Monitoring internal
auditors</I></P></TD></TR></TABLE>
<UL style="TEXT-ALIGN: justify">
  <LI>
  <p style="margin-left: 10%; margin-bottom: 10">ensuring that the head of internal audit has a functional reporting
  relationship with the Audit Committee;
  <LI>
  <p style="margin-left: 10%; margin-bottom: 10">overseeing the access by internal auditors to all levels of management in
  order to carry out their duties;
  <LI>
  <p style="margin-left: 10%; margin-bottom: 10">regularly monitoring the internal audit function&#146;s performance, its
  responsibilities, staffing and budget;
  <LI>
  <p style="margin-left: 10%; margin-bottom: 10">approving the appointment and termination of the Company&#146;s chief internal
  auditor;
  <LI>
  <p style="margin-left: 10%; margin-bottom: 10">ensuring the ongoing accountability of the internal audit function to the
  Audit Committee and to the Board. </LI></UL>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0 BCLLIST>

  <TR>
    <TD width="5%"  >&nbsp;</TD>
    <TD vAlign=top width="5%"><I>(d)</I> </TD>
    <TD>
      <P align=justify><I>Monitoring external
auditors</I></P></TD></TR></TABLE>
<UL style="TEXT-ALIGN: justify">
  <LI>
  <p style="margin-left: 10%; margin-bottom: 10">recommending the retention and, if appropriate, the removal of external
  auditors (both subject to shareholder approval), their compensation, as well
  as evaluating and monitoring their qualifications, performance and
  independence;
  <LI>
  <p style="margin-left: 10%; margin-bottom: 10">overseeing all relationships between the external auditors and the Company
  including, determining which non-audit services the external auditors are
  prohibited from providing, approving, or pre-approving policies defining audit
  and permitted non-audit services provided by the external auditors, overseeing
  the disclosure of all audit and permitted non-audit services provided by the
  external auditors, and reviewing the total amount of fees paid by the Company
  to the external auditors for all audit and non-audit services;
  <LI>
  <p style="margin-left: 10%; margin-bottom: 10">overseeing the direct reporting and accountability of the external
  auditors to the Audit Committee and to the Board;
  <LI>
  <p style="margin-left: 10%; margin-bottom: 10">directly overseeing the external auditors and discussing with them the
  quality and not just the acceptability of the Company&#146;s accounting principles,
  including (i) critical accounting policies and practices used, (ii)
  alternative treatments of financial information that have been discussed with
  management, the ramification of their use and the treatment preferred by the
  external auditors, as well as (iii) other material written communications
  between the Company and the external auditors (including any disagreement with
  management and the resolution thereof); </LI>
  <LI>
  <p style="margin-left: 10%; margin-bottom: 10">reviewing at least annually, representations by the external auditors
  describing their internal quality-control procedures, as well as significant
  results arising from regulatory and professional quality-control examinations;

  <LI>
  <p style="margin-left: 10%; margin-bottom: 10">reviewing at least annually, the external auditors&#146; representations as to
  independence and holding discussions with the external auditors as to any
  relationship or services that may impact their objectivity or independence;
  <LI>
  <p style="margin-left: 10%; margin-bottom: 10">reviewing hiring policies for employees or former employees of the
  Company&#146;s firm of external auditors;
  <LI>
  <p style="margin-left: 10%; margin-bottom: 10">overseeing the rotation of lead, concurring and other audit partners, to
  the extent required by Canadian and U.S. securities law standards. </LI></UL>
<P align=center>26</P>
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noShade SIZE=5>
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<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0 BCLLIST>

  <TR>
    <TD width="5%"  >&nbsp;</TD>
    <TD vAlign=top width="5%"><I>(e)</I> </TD>
    <TD>
      <P align=justify><I>Reviewing financings</I></P></TD></TR></TABLE>
<UL style="TEXT-ALIGN: justify">
  <LI>
  <p style="margin-left: 10%">reviewing the adequacy of the Company&#146;s financing, including terms and
  conditions of all new material financing arrangements. </LI></UL>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0 BCLLIST>

  <TR>
    <TD width="5%"  >&nbsp;</TD>
    <TD vAlign=top width="5%"><I>(f)</I> </TD>
    <TD>
      <P align=justify><I>Evaluating the performance of the Audit
      Committee</I></P></TD></TR></TABLE>
<UL style="TEXT-ALIGN: justify">
  <LI>
  <p style="margin-left: 10%">overseeing the existence of processes to annually evaluate the performance
  of the Audit Committee. </LI></UL>
<P style="MARGIN-LEFT: 5%" align=justify>Because of the Audit Committee&#146;s
demanding role and responsibilities, the Board chair, together with the
Corporate Governance Committee chair, reviews any invitation to Audit Committee
members to join the audit committee of another publicly-listed entity. Where a
member of the Audit Committee simultaneously serves on the audit committee of
more than three public companies, including the Company, the Board determines
whether such simultaneous service impairs the ability of such member to
effectively serve on the Audit Committee and either requires a correction to the
situation or discloses in the Company&#146;s Management Proxy Circular that there is
no such impairment. </P>
<P style="MARGIN-LEFT: 5%" align=justify>As appropriate, the Audit Committee may
obtain advice and assistance from outside legal, accounting or other advisors
and set and pay their compensation, and so advise the Board chair and, if
appropriate, the external auditors; the Audit Committee makes arrangements for
the appropriate funding for payment of the external auditors and any advisors
retained by it. In addition, the Company will provide appropriate funding for
the Audit Committee, including the payment of all outside legal, accounting and
other advisors retained by the Audit Committee. </P>
<P style="MARGIN-LEFT: 5%" align=justify>The internal auditors and the external
auditors will have at all times a direct line of communication with the Audit
Committee. In addition, each meets separately with the Audit Committee, without
management, at least once a quarter, during which the Company&#146;s financial
statements and control environment must be discussed; the Audit Committee also
meets separately with management at least once a quarter, and more frequently as
required. </P>
<P style="MARGIN-LEFT: 5%" align=justify>The Audit Committee reports annually to
the Board on the adequacy of its mandate. In addition, the chair of the Audit
Committee reports regularly to the Board on the business of the Audit Committee.
</P>
<P style="MARGIN-LEFT: 5%" align=justify>Nothing contained in the above mandate
is intended to transfer to the Audit Committee the Board&#146;s responsibility to
ensure the Company&#146;s compliance with applicable laws or regulations or to expand
applicable standards of liability under statutory or regulatory requirements for
the directors or the members of the Audit Committee. Even though the Audit
Committee has a specific mandate and its members may have financial experience,
they do not have the obligation to act as auditors or to perform auditing, or to
determine that the Company&#146;s financial statements are complete and accurate and
are in accordance with generally accepted accounting principles. Such matters
are the responsibility of management, the internal auditors and the external
auditors. Members of the Audit Committee are entitled to rely, absent knowledge
to the contrary, on (i) the integrity of the persons and organizations<a name="page_30">
</a>from whom they receive information,
(ii) the accuracy and completeness of the information provided, and (iii)
representations made by management as to the non-audit services provided to the
Company by the external auditors. The Audit Committee&#146;s oversight
responsibilities are not established to provide an independent basis to
determine that (i) management has maintained appropriate accounting and
financial reporting principles or appropriate internal controls and procedures,
or (ii) the Company&#146;s financial statements have been prepared and, if
applicable, audited in accordance with generally accepted accounting principles. </P>
<P align=center>* * *</P>
<P align=center>27</P>
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<A name="page_3"></A>

<P align="justify" style="margin-left: 30pt">
<B>A. </B>
</P>

<P align="justify" style="margin-left: 60pt; margin-top: -25.5pt">
<B>Undertaking</B><BR>
</P>
<P align="justify" style="text-indent: 60pt">
Gildan Activewear Inc. (the &#147;Registrant&#148;) undertakes to make available, in person or by telephone, representatives to respond to inquiries made by the staff of the Securities and Exchange Commission
(&#147;SEC&#148;), and to furnish promptly, when requested to do so by the SEC staff, information relating to the securities in relation to which the obligation to file an annual report on Form 40-F arises or transactions in said securities. </P>
<P align="justify" style="margin-left: 30pt">
<B>B. </B>
</P>
<P align="justify" style="margin-left: 60pt; margin-top: -25.5pt">
<B>Consent to Service of Process</B><BR>
</P>
<P align="justify" style="text-indent: 60pt">
The Registrant has previously filed with the SEC a written irrevocable consent and power of attorney on Form F-X in connection with the Class A Subordinate Voting Shares (now Common Shares). </P>
<P align="justify" style="margin-left: 30pt">
<B>C. </B>
</P>
<P align="justify" style="margin-left: 60pt; margin-top: -25.5pt">
<B>Evaluation of disclosure controls and procedures</B><BR>
</P>
<P align="justify" style="text-indent: 60pt">
Our disclosure controls and procedures are designed to ensure that information required to be disclosed in our reports filed with the SEC is recorded, processed, summarized and reported within the time periods specified
in the SEC&#146;s rules and forms and is accumulated and communicated to our management, including our principal executive officer and our principal financial officer, as appropriate, to allow timely decisions regarding required disclosure. </P>
<P align="justify" style="text-indent: 60pt">
  An evaluation was carried out under the supervision of, and with the participation of, our management, including our principal executive officer and our principal financial officer, of the effectiveness of our disclosure controls and procedures
(as such term is defined in the Securities Exchange Act of 1934 (the &#147;Exchange Act&#148;), as amended, Rules 13a-15(e) and 15d-15(e)) as of the end of the period covered by this Annual Report on Form 40-F. Based on that evaluation, our
principal executive officer and our principal financial officer concluded that our disclosure controls and procedures were effective as of the end of such period. </P>
<P align="justify" style="margin-left: 30pt">
<B>D. </B></P>
<P align="justify" style="margin-left: 60pt; margin-top: -25.5pt">
<B>Management&#146;s annual report on internal control over financial reporting</B></P>
<P align="justify" style="text-indent: 60pt">
Our management is responsible for establishing and maintaining adequate internal control over financial reporting, as such term is defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act.</P>
<P align="justify" style="text-indent: 60pt">
Our internal control over financial reporting includes those policies and procedures that: (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and
dispositions of our assets; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that our receipts and
expenditures are being made only in accordance with authorizations of our management and directors; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of our assets that
could have a material effect on the financial statements.</P>
<P align="justify" style="text-indent: 60pt">
Under the supervision and with the participation of our principal executive officer and our principal financial officer, management conducted an evaluation of the effectiveness of our internal control over financial
reporting, as of October 4, 2009, based on the framework set forth in<B> </B><I>Internal Control-Integrated Framework</I> issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Based on its evaluation under this
framework, management concluded that our internal control over financial reporting was effective as of that date.</P>
<P align="justify" style="margin-left: 30pt">
<B>E.</B></P>
<P align="justify" style="margin-left: 60pt; margin-top: -25.5pt">
<B>Attestation report of the registered public accounting firm.</B></P>
<P align="justify" style="text-indent: 60pt">
KPMG LLP (&#147;KPMG&#148;), an independent registered public accounting firm, that audited and reported on our financial statements attached as Exhibit 99.2 to this Annual Report on Form 40-F, has issued an attestation
report on the effectiveness of our internal control over financial reporting as of October 4, 2009. The attestation report is included on page 45 of the financial statements attached as Exhibit 99.2 to this Annual Report on Form 40-F. </P>
<P align="justify" style="margin-left: 30pt">
<B>F. </B></P>
<P align="justify" style="margin-left: 60pt; margin-top: -25.5pt">
<B>Changes in internal controls over financial reporting.</B></P>
<P align="justify" style="text-indent: 60pt">
There have been no changes during fiscal year 2009 in our internal control over financial reporting that have materially affected, or are reasonably likely to materially affect, our internal control over financial
reporting. </P>

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<A name="page_4"></A>

<P align="justify">
The design of any system of controls and procedures is based in part upon certain assumptions about the likelihood of certain events. There can be no assurance that any design will succeed in achieving its stated goals
under all potential future conditions, regardless of how remote. </P>
<P align="justify" style="margin-left: 30pt">
<B>G. </B>
</P>
<P align="justify" style="margin-left: 60pt; margin-top: -25.5pt">
<B>Audit Committee Financial Experts</B><BR>
</P>
<P align="justify">
The Registrant&#146;s board of directors has determined that it has at least three (3) audit committee financial experts serving on its audit committee. Mr. Pierre Robitaille, Mr. Gonzalo F. Valdes-Fauli and Mr. William
D. Anderson have been determined to be such audit committee financial experts and are independent, as that term is defined by the New York Stock Exchange&#146;s listing standards applicable to the Registrant. The SEC has indicated that the
designation of Mr. Robitaille, Mr. Valdes-Fauli and Mr. Anderson as audit committee financial experts does not make Mr. Robitaille, Mr. Valdes-Fauli and Mr. Anderson &#147;experts&#148; for any purpose, impose any duties, obligations or liability on
Mr. Robitaille, Mr. Valdes-Fauli and Mr. Anderson that are greater than those imposed on members of the audit committee and board of directors who do not carry this designation or affect the duties, obligations or liability of any other member of
the audit committee.</P>
<P align="justify" style="margin-left: 30pt">
<B>H. </B>
</P>
<P align="justify" style="text-indent: 60pt; margin-top: -25.5pt">
<B>Code of Ethics</B><BR>
</P>
<P align="justify">
The Registrant has adopted a Code of Ethics and Business Conduct (the &#147;Code of Ethics&#148;) that applies to all employees and officers, including its principal executive officer, principal financial officer and
principal accounting
officer. The Code of Ethics is available at the Registrant&#146;s Internet website, <U><FONT color="#0000ff">www.gildan.com/corporate/IR/corporateGovernance.cfm</FONT></U>, and is available, without charge, in print to any shareholder who requests
it. </P>
<P align="justify" style="margin-left: 30pt">
<B> I. </B> </P>
<P align="justify" style="text-indent: 60pt; margin-top: -25.5pt">
<B> Principal Accountant Fees and Services</B> </P>
<P align="justify">
In addition to retaining KPMG to report upon the annual consolidated financial statements of the Registrant, the Registrant retained KPMG to provide various audit-related and non-audit services in fiscal 2009. The
aggregate fees billed for professional services by KPMG for each of the last two (2) fiscal years, were as follows: </P>
<P align="justify" style="margin-left: 30pt">
<I>Audit Fees </I>&#151; The aggregate audit fees billed by KPMG for professional services rendered for the annual audit of the Registrant&#146;s consolidated financial statements, quarterly reviews of the Registrant&#146;s financial statements and
services provided in connection with statutory and regulatory filings or engagements were Cdn&#36;1,373,897 for fiscal 2009 and Cdn&#36;1,289,028 for fiscal 2008. The audit fees include fees relating to KPMG&#146;s audit of the effectiveness of the
Registrant&#146;s internal control over financial reporting. </P>
<P align="justify" style="margin-left: 30pt">
<I>Audit-Related Fees </I>&#151; The aggregate audit-related fees billed by KPMG were Cdn&#36;118,500 for fiscal 2009 and Cdn&#36;114,400 for fiscal 2008. These services consisted of miscellaneous assurance services.</P>
<P align="justify" style="margin-left: 30pt">
<I>Tax Fees</I> &#151; The aggregate tax fees billed by KPMG were Cdn&#36;261,474 for fiscal 2009 and Cdn&#36;484,817 for fiscal 2008. These services consisted of tax compliance, including the review of tax returns, assistance regarding income,
capital and sales tax audits, the preparation of annual transfer pricing studies, tax advisory services relating to domestic and international taxation and customs and duties. </P>
<P align="justify" style="margin-left: 30pt">
<I>All Other Fees </I>&#151; The aggregate fees billed by KPMG for all other professional services rendered were nil for fiscal 2009 and nil for fiscal 2008. </P>
<P align="justify" style="text-indent: 60pt">
All fees billed to the Registrant by KPMG in fiscal 2009 were pre-approved by the Registrant&#146;s Audit and Finance Committee pursuant to the procedures and policies set forth in the Audit and Finance Committee
mandate and pursuant to applicable legislation. The mandate of the Audit and Finance Committee is available on the Registrant&#146;s Internet website at <U><FONT color="#0000ff">www.gildan.com/corporate/IR/corporateGovernance.cfm</FONT></U>.</P>
<P align="justify" style="margin-left: 30pt">
<B>J. </B>
</P>
<P align="justify" style="text-indent: 60pt; margin-top: -25.5pt">
<B>Off-Balance Sheet Arrangements</B><BR>
</P>
<P align="justify" style="text-indent: 60pt">
<I>Operating leases and commitments</I><BR>
</P>
<P align="justify" style="text-indent: 60pt">
The Registrant has no commitments that are not reflected in its balance sheets except for operating leases and other purchase obligations, which are included in the table of contractual obligations on page
20 of its
MD&amp;A (see Exhibit 99.1) . As disclosed in Note 13 to the Registrant&#146;s Consolidated Financial Statements (see Exhibit 99.2), the
Registrant has issued standby letters of credit and corporate guarantees primarily from various servicing agreements amounting to &#36;5.3 million at October 4, 2009. </P>

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<P align="justify" style="text-indent: 60pt">
<I>Derivative Financial Instruments</I><BR>
</P>
<P align="justify" style="text-indent: 60pt">
From time to time, the Registrant uses forward foreign exchange contracts to hedge cash flows related to sales and operating expenses in foreign currencies (non-U.S. dollar). A forward foreign exchange contract
represents an obligation to exchange a foreign currency with a counterparty at a predetermined rate. Credit risk exists in the event of failure by a counterparty to meet its obligations. The Registrant&#146;s exposure to foreign currency
fluctuations is described in more detail in the &#147;Financial Risk Management&#148; section of its MD&amp;A beginning on page 21 (see Exhibit 99.1) . </P>
<P align="justify" style="text-indent: 60pt">
The Registrant does not use derivative financial instruments for speculative purposes. Forward foreign exchange contracts are entered into with maturities not exceeding twenty-four months. </P>
<P align="justify" style="text-indent: 60pt">
For the years ended October 4, 2009 and October 5, 2008, net earnings included a recognized gain of &#36;0.1 million and a recognized loss of &#36;2.1 million, both relating to derivative financial instruments. </P>
<P align="justify" style="text-indent: 60pt">
As at October 4, 2009 the Registrant had no outstanding derivative financial instruments relating to commitments to buy and sell foreign currencies through forward foreign exchange contracts. </P>
<P align="justify" style="text-indent: 60pt">
The fair value of the forward foreign exchange contracts, determined using observable market inputs, was nil as at October 4, 2009 and &#36;0.9 million as at October 5, 2008.</P>
<p style="text-indent: 30pt">
<B>K.</B> </p>
<P align="justify" style="text-indent: 60pt; margin-top: -25.5pt"><B>Tabular Disclosure of Contractual Obligations</B></P>
<P align="justify" style="text-indent: 60pt">See page 20 of Exhibit 99.1.</P>
	<p style="text-indent: 30pt">
<B>L.</B> </p>
<P align="justify" style="text-indent: 60pt; margin-top: -25.5pt"><B>Corporate Governance Guidelines</B></P>
<P align="justify" style="text-indent: 60pt">
The Registrant has adopted Corporate Governance Guidelines as well as mandates for its board of directors and each of its three committees which are available at the Registrant&#146;s Internet website,
<U><FONT color="#0000ff">www.gildan.com/corporate/IR/corporateGovernance.cfm</FONT></U>, and are available in print to any shareholder who requests them.</P>
<P align="justify" style="margin-left: 30pt"><B>M. </B></P>
<P align="justify" style="text-indent: 60pt; margin-top: -25.5pt"><B>
Identification of the Audit Committee</B></P>
<P align="justify" style="text-indent: 60pt">
The Registrant has a standing audit committee established in accordance with Section 3 (a) (58) (A) of the Exchange Act. The members of the Registrant&#146;s audit committee are Pierre Robitaille, William D. Anderson, Richard P. Strubel and
Gonzalo F. Valdez-Fauli. See the Audit Committee Disclosure section of our Annual Information Form included herein for additional information. </P>
<P align="justify" style="margin-left: 30pt">
<B>N. </B></P>
<P align="justify" style="text-indent: 60pt; margin-top: -25.5pt">
<B>Summary of Significant Differences from NYSE Corporate Governance Rules</B></P>
<P align="justify" style="text-indent: 60pt">
The Registrant is committed to adopting and adhering to corporate governance practices that either meet or exceed applicable Canadian and U.S. corporate governance standards. As a Canadian reporting issuer with
securities listed on the Toronto Stock Exchange (TSX) and the New York Stock Exchange (NYSE), the Registrant complies with all applicable rules adopted by the Canadian Securities Administrators as well as the rules of the U.S. Securities and
Exchange Commission giving effect to the provisions of the U.S. Sarbanes-Oxley Act of 2002. </P>
<P align="justify" style="text-indent: 60pt">
Although many of the NYSE Corporate Governance Standards do not apply to the Registrant, it nevertheless voluntarily complies with most of the NYSE Standards. In fact, the Registrant&#146;s corporate governance
practices differ significantly in only one respect from those required of U.S. domestic issuers under the NYSE Standards, which is with respect to the approval of equity compensation plans. The NYSE Standards require shareholder approval of all
equity compensation plans and material revisions to such plans, regardless of whether the securities to be delivered under such plans are newly issued or purchased on the open market, subject to a few limited exceptions. The TSX Rules, however, do
not require a shareholder approval in all those circumstances. Hence, only the creation or material amendments to equity compensation plans that provide for new issuances of securities are subject to shareholder approval. The Registrant has in place
plans which did not require the approval of its shareholders under the TSX Rules but which could have required the approval of its shareholders under the NYSE Standards as applicable to U.S. domestic issuers. </P>

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<A name="page_6"></A>

<P align="center">
<B>SIGNATURES</B><BR>
</P>
<P align="justify" style="text-indent: 30pt">
Pursuant to the requirements of the Exchange Act, the Registrant certifies that it meets all of the requirements for filing on Form 40-F and has duly caused this annual report to be signed on its behalf by the
undersigned, thereto duly authorized. </P>
<P align="justify" style="text-indent: 30pt">
DATED: December 11, 2009<BR>
</P>
<P align="justify" style="margin-left: 50%">
<B>GILDAN ACTIVEWEAR INC.</B><BR>
</P>
<P align="justify" style="margin-left: 50%">
<u>/s/ <I>Lindsay Matthews</I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <BR>
</u>Name: Lindsay Matthews <BR>
Title: Director, Legal Services and Corporate
Secretary <BR>
</P>

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<A name=page_7></A>
<P align=center><B>EXHIBIT INDEX<BR></B><BR></P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0 height="191">

  <TR vAlign=top>
    <TD align=center height="15" ><B><U>Exhibit No.</U></B> </TD>
    <TD align=center width="92%" height="15">
    <p align="left" style="margin-left: 10pt"><B><U>Description</U></B> </TD></TR>
  <TR>
    <TD align=center bgcolor="#E9F1F8" height="15" >&nbsp;</TD>
    <TD align=center width="92%" bgcolor="#E9F1F8" height="15" >
    <p style="margin-left: 10pt">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=center bgcolor="#E9F1F8" height="15" >
    <a href="gildan120809exh991.htm" style="text-decoration: none">99.1 </a> </TD>
    <TD align=left width="92%" bgcolor="#E9F1F8" height="15">
    <p style="margin-left: 10pt">
    <a href="gildan120809exh991.htm" style="text-decoration: none">Management&#146;s
    Discussion and Analysis of the Registrant for the year ended October 4, 2009
    </a> </TD></TR>
  <TR vAlign=top>
    <TD align=center height="15" ></TD>
    <TD align=left width="92%" height="15">
    <p style="margin-left: 10pt"></TD></TR>
  <TR vAlign=top>
    <TD align=center height="11" >
    <a href="gildan120809exh992.htm" style="text-decoration: none">99.2 </a> </TD>
    <TD align=left width="92%" height="11">
    <p style="margin-left: 10pt">
    <a href="gildan120809exh992.htm" style="text-decoration: none">Audited comparative consolidated financial
      statements of the Registrant as at and for the year ended October 4, 2009
    </a>
    </TD></TR>
  <TR vAlign=top>
    <TD align=center bgcolor="#E9F1F8" height="15" >&nbsp;</TD>
    <TD align=left width="92%" bgcolor="#E9F1F8" height="15">
    <p style="margin-left: 10pt">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=center bgcolor="#E9F1F8" height="15" >
    <a href="gildan120909exh993.htm" style="text-decoration: none">99.3 </a> </TD>
    <TD align=left width="92%" bgcolor="#E9F1F8" height="15">
    <p style="margin-left: 10pt">
    <a href="gildan120909exh993.htm" style="text-decoration: none">Consent of KPMG LLP
    </a> </TD></TR>
  <TR vAlign=top>
    <TD align=center height="15" ></TD>
    <TD align=left width="92%" height="15">
    <p style="margin-left: 10pt"></TD></TR>
  <TR vAlign=top>
    <TD align=center height="15" >
    <a href="gildan120809exh994.htm" style="text-decoration: none">99.4 </a> </TD>
    <TD align=left width="92%" height="15">
    <p style="margin-left: 10pt">
    <a href="gildan120809exh994.htm" style="text-decoration: none">Reconciliation to United States GAAP
    </a> </TD></TR>
  <TR vAlign=top>
    <TD align=center bgcolor="#E9F1F8" height="15" >&nbsp;</TD>
    <TD align=left width="92%" bgcolor="#E9F1F8" height="15">
    <p style="margin-left: 10pt">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=center bgcolor="#E9F1F8" height="15" >
    <a href="gildan121009exh995.htm" style="text-decoration: none">99.5 </a> </TD>
    <TD align=left width="92%" bgcolor="#E9F1F8" height="15">
    <p style="margin-left: 10pt">
    <a href="gildan121009exh995.htm" style="text-decoration: none">Officers&#146; Certifications Required by Rule
      13a-14(a) or Rule 15d-14(a) </a> </TD></TR>
  <TR vAlign=top>
    <TD align=center height="15" ></TD>
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    <a href="gildan121009exh996.htm" style="text-decoration: none">99.6 </a> </TD>
    <TD align=left width="92%" height="15">
    <p style="margin-left: 10pt">
    <a href="gildan121009exh996.htm" style="text-decoration: none">Officers&#146; Certifications Required by Rule
      13a-14(b) or Rule 15d-14(b) and Section 1350 of Chapter 63 of Title 18 of
      the United States Code </a> </TD></TR></TABLE>
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<HEAD>
   <TITLE> Gildan Activewear Inc.: Exhibit 99.1 - Prepared by TNT Filings Inc.</TITLE>

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<div style="border-top-style: solid; border-top-width: 1; padding-top: 1">

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<p align="right"><b>Exhibit 99.1</b><A name=page_1></A></p>
<p><img border="0" src="mdaht2.gif" width="252" height="72"> <BR>
</p>
<P align=right style="margin-right: 35pt"><B><FONT style="font-size: 72pt">2009</FONT></B></P>
<P align=right style="margin-right: 35pt"><B><FONT style="font-size: 36pt">REPORT TO</FONT><font style="font-size: 36pt"><BR>
</font><FONT style="font-size: 36pt">SHAREHOLDERS</FONT></B></P>
<P align=right style="margin-right: 35pt"><FONT style="font-size: 18pt">December
9, 2009<BR></FONT><BR></P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD align=right><B>MD&amp;A: </B></TD>
    <TD align=center width="15%">&nbsp; </TD></TR>
  <TR vAlign=top>
    <TD align=right bgcolor="#E6EFFF">OUR BUSINESS </TD>
    <TD align=center width="15%" bgcolor="#E6EFFF">2 </TD></TR>
  <TR vAlign=top>
    <TD align=right>STRATEGY AND OBJECTIVES </TD>
    <TD align=center width="15%">5 </TD></TR>
  <TR vAlign=top>
    <TD align=right bgcolor="#E6EFFF">OPERATING RESULTS </TD>
    <TD align=center width="15%" bgcolor="#E6EFFF">8 </TD></TR>
  <TR vAlign=top>
    <TD align=right>SUMMARY OF QUARTERLY RESULTS </TD>
    <TD align=center width="15%">15 </TD></TR>
  <TR vAlign=top>
    <TD align=right bgcolor="#E6EFFF">FINANCIAL CONDITION </TD>
    <TD align=center width="15%" bgcolor="#E6EFFF">17 </TD></TR>
  <TR vAlign=top>
    <TD align=right>CASH FLOWS </TD>
    <TD align=center width="15%">19 </TD></TR>
  <TR vAlign=top>
    <TD align=right bgcolor="#E6EFFF">LIQUIDITY AND CAPITAL RESOURCES </TD>
    <TD align=center width="15%" bgcolor="#E6EFFF">19 </TD></TR>
  <TR vAlign=top>
    <TD align=right>LEGAL PROCEEDINGS </TD>
    <TD align=center width="15%">21 </TD></TR>
  <TR vAlign=top>
    <TD align=right bgcolor="#E6EFFF">OUTLOOK </TD>
    <TD align=center width="15%" bgcolor="#E6EFFF">21</TD></TR>
  <TR vAlign=top>
    <TD align=right>FINANCIAL RISK MANAGEMENT </TD>
    <TD align=center width="15%">21</TD></TR>
  <TR vAlign=top>
    <TD align=right bgcolor="#E6EFFF">CRITICAL ACCOUNTING ESTIMATES </TD>
    <TD align=center width="15%" bgcolor="#E6EFFF">26</TD></TR>
  <TR vAlign=top>
    <TD align=right>CHANGES IN ACCOUNTING POLICIES AND FUTURE ACCOUNTING
      STANDARDS </TD>
    <TD align=center width="15%">28</TD></TR>
  <TR vAlign=top>
    <TD align=right bgcolor="#E6EFFF">RELATED PARTY TRANSACTIONS </TD>
    <TD align=center width="15%" bgcolor="#E6EFFF">31</TD></TR>
  <TR vAlign=top>
    <TD align=right>DISCLOSURE CONTROLS </TD>
    <TD align=center width="15%">31</TD></TR>
  <TR vAlign=top>
    <TD align=right bgcolor="#E6EFFF">INTERNAL CONTROL OVER FINANCIAL REPORTING </TD>
    <TD align=center width="15%" bgcolor="#E6EFFF">32</TD></TR>
  <TR vAlign=top>
    <TD align=right>RISKS AND UNCERTAINTIES </TD>
    <TD align=center width="15%">32</TD></TR>
  <TR vAlign=top>
    <TD align=right bgcolor="#E6EFFF">DEFINITION AND RECONCILIATION OF NON-GAAP MEASURES </TD>
    <TD align=center width="15%" bgcolor="#E6EFFF">39</TD></TR>
  <TR vAlign=top>
    <TD align=right>FORWARD LOOKING STATEMENTS </TD>
    <TD align=center width="15%">41</TD></TR>
  <TR>
    <TD align=right bgcolor="#E6EFFF">&nbsp; </TD>
    <TD width="15%" bgcolor="#E6EFFF">&nbsp; </TD></TR>
  <TR vAlign=top>
    <TD align=right bgcolor="#E6EFFF">MANAGEMENT&#146;S RESPONSIBILITY FOR FINANCIAL REPORTING </TD>
    <TD align=center width="15%" bgcolor="#E6EFFF">43</TD></TR>
  <TR>
    <TD align=right>&nbsp; </TD>
    <TD width="15%">&nbsp; </TD></TR>
  <TR vAlign=top>
    <TD align=right>AUDITED CONSOLIDATED FINANCIAL STATEMENTS </TD>
    <TD align=center width="15%">44</TD></TR>
  <TR>
    <TD align=right bgcolor="#E6EFFF">&nbsp; </TD>
    <TD width="15%" bgcolor="#E6EFFF">&nbsp; </TD></TR>
  <TR vAlign=top>
    <TD align=right bgcolor="#E6EFFF">NOTES TO AUDITED CONSOLIDATED FINANCIAL STATEMENTS </TD>
    <TD align=center width="15%" bgcolor="#E6EFFF">50</TD></TR></TABLE><BR>
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    <p align="right"><font size="2"><br>
MANAGEMENT&#146;S DISCUSSION AND ANALYSIS</font></td>
  </tr>
</table>
&nbsp;<BR>
<P align="justify">
This Management&#146;s Discussion and Analysis (MD&amp;A) comments on Gildan&#146;s operations, performance and financial condition as at and for the years ended October 4, 2009 and October 5, 2008, compared to the preceding years. For a complete
understanding of our business environment, trends, risks and uncertainties and the effect of accounting estimates on our results of operations and financial condition, this MD&amp;A should be read together with the audited Consolidated Financial
Statements and the related notes. This MD&amp;A is dated December 9, 2009. All amounts in this report are in U.S. dollars, unless otherwise noted.</P>
<P align="justify">
All financial information contained in this MD&amp;A and in the audited Consolidated Financial Statements has been prepared in accordance with Canadian generally accepted accounting principles (GAAP), except for certain information discussed in the
paragraph entitled &#147;Non-GAAP Measures&#148; on page 8 of this MD&amp;A. The audited Consolidated Financial Statements and this MD&amp;A were reviewed by Gildan&#146;s Audit and Finance Committee and were approved by our Board of Directors. </P>
<P align="justify">
Additional information about Gildan, including our 2009 Annual Information Form, is available on our website at www.gildan.com, on the SEDAR website at www.sedar.com, and on the EDGAR section of the U.S. Securities and Exchange Commission website
(which includes the Annual Report on Form 40-F) at www.sec.gov. </P>
<P align="justify">
This document contains forward-looking statements, which are qualified by reference to, and should be read together with, the &#147;Forward-looking Statements&#148; cautionary notice on page 41. </P>
<P align="justify">
In this MD&amp;A, &#147;Gildan&#148;, the &#147;Company&#148;, or the words &#147;we&#148;, &#147;us&#148;, &#147;our&#148; refer, depending on the context, either to Gildan Activewear Inc. or to Gildan Activewear Inc. together with its subsidiaries
and joint venture. </P>
<P align="justify">
<B><U>OUR BUSINESS</U></B><BR>
</P>
<P align="justify">
We are a marketer and vertically-integrated globally cost-competitive manufacturer of basic, non-fashion apparel products for customers requiring an efficient supply chain and consistent product quality for high-volume replenishment programs. We
sell activewear products to screenprint markets in North America, Europe and other international markets. Gildan is the leading supplier of activewear for the screenprint channel in the U.S. and Canada, and also a leading supplier for this market in
Europe and Mexico. We sell socks and underwear, in addition to our activewear products, to mass market and regional retailers in North America. In the U.S. mass-market retail channel, Gildan is one of the leading suppliers of socks. The Company
operates in one business segment, being high-volume, basic, frequently replenished, non-fashion apparel.</P>
<P align="justify">
<B>Our Products and Markets</B><BR>
We have built our core business by manufacturing and selling activewear products through wholesale distributors servicing the screenprint market. Today we sell activewear products to this channel in North America, Europe and other international
markets. In more recent years we made our entry into the North American retail channel, with the addition of socks and underwear to our activewear product-line for sale to large mass-market and regional retailers. In fiscal 2006 we acquired Kentucky
Derby Hosiery Co., Inc. (Kentucky Derby) and in the first quarter of fiscal 2008 we acquired V.I. Prewett &amp; Son, Inc. (Prewett), two U.S.-based sock manufacturers of basic family socks which provided us with enhanced distribution to major U.S.
mass-market retailers.
</P>
<P align="justify">
Our activewear products, namely T-shirts, fleece and sport shirts under the Gildan brand, are sold in large quantities to wholesale distributors as undecorated &#147;blanks&#148;, which are subsequently sold to screenprinters and embroiderers who
decorate the products with designs and logos.  Screenprinters then sell the imprinted activewear to a highly diversified range of end-use markets, including educational institutions, athletic dealers, event merchandisers, promotional product
distributors, charity organizations, entertainment promoters, and travel and tourism venues. Our activewear products are used in a variety of daily activities by individuals, including work and school uniforms and athletic team wear, and for various
other purposes to convey individual, group and team identity. We are also growing our private label
activewear business to provide undecorated products to large branded apparel companies and retailers which sell imprinted activewear and are currently not supplied by our existing U.S. wholesale distributors. In the North American mass-market and
regional retailer channel, we sell a variety of styles of socks, and men&#146;s and boys&#146; underwear, in addition to our undecorated activewear products, under various retailer private labels and under the Gildan brand.</P>
<P align="right">
GILDAN 2009 REPORT TO SHAREHOLDERS P.2</P>

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    <p align="right"><font size="2"><br>
MANAGEMENT&#146;S DISCUSSION AND ANALYSIS</font></td>
  </tr>
</table>
<P align="justify">
All of our products are made of 100% cotton or of blends of cotton and synthetic fibres. Our products are characterized by low-fashion risk compared to other apparel categories since these products are basic, frequently replenished, and since logos
and designs for the screenprint market are not imprinted or embroidered by Gildan. Our value proposition combines consistent quality, competitive pricing and fast and flexible replenishment, due to our geographical proximity to our markets, as well
as our leadership in corporate social responsibility and environmental sustainability. As a vertically-integrated manufacturer, Gildan is able to provide premium products to customers in a broad range of sizes, colours and styles with enhanced
product features, such as pre-shrunk fabrics, and a selection of fabric weights, blends and construction. Innovations in the manufacturing process of our activewear products have allowed us to ensure colour/shade consistency and high performance of
the garments. In addition, innovations in the sock manufacturing process, such as higher needle count machines and seamless toe closing operations have allowed Gildan to deliver enhanced sock product features at lower prices, further improving the
value proposition of our activewear and sock products to our customers.</P>
<P align="justify">
<B>Our Facilities <br>
</B><BR>
<U>Textile and Sock Manufacturing</U><BR>
To support our sales in the various markets, we have built modern manufacturing facilities located in Central America and the Caribbean Basin where we manufacture T-shirts, fleece, sport shirts, socks and underwear. Our largest manufacturing hub in
Central America includes our first vertically-integrated knitting, bleaching, dyeing, finishing and cutting textile facility (Rio Nance 1) to produce activewear fabric and, more recently, underwear fabric. This facility, located in Rio Nance,
Honduras, became operational in fiscal 2002. During fiscal 2007, we expanded our operations in Rio Nance to include a new integrated textile facility for the production of activewear fabric (Rio Nance 2) and a new integrated sock manufacturing
facility (Rio Nance 3). We have also established a vertically-integrated Caribbean Basin manufacturing hub with a textile facility for the production of activewear fabric in Bella Vista, Dominican Republic, which became operational in fiscal 2005.
The Company is also planning further textile capacity expansion in its existing manufacturing hubs in the Dominican Republic and Central America.</P>
<P align="justify">
In addition to our integrated sock manufacturing facility located in our Central America hub, we operate U.S. sock knitting facilities in Fort Payne, Alabama, purchased as part of the Prewett acquisition in fiscal 2008. During fiscal 2009, we
transitioned our U.S. sock finishing operations, which were purchased as part of the Prewett acquisition, to leased sock finishing facilities in Honduras. During fiscal
2010, the Company plans to complete the construction of a second sock manufacturing facility (Rio Nance 4) in Rio Nance, which is expected to begin operations by the end of fiscal 2010. Rio Nance 4 will serve to further consolidate the sock
finishing operations and to support our future sales growth in this product category.<B> </B></P>
<P align="justify">
<U>Sewing Facilities</U><BR>
Our sewing facilities for activewear and underwear are strategically located in close proximity to our textile manufacturing facilities. We operate sewing facilities in Honduras and Nicaragua to support our textile manufacturing hub in Central
America. To support our vertically-integrated production in the Dominican Republic, we utilize third-party contractors in Haiti, and we have established a new sewing facility in the Dominican Republic, which began operating during the second quarter
of fiscal 2009.
</P>
<P align="justify">
<U>Yarn-Spinning</U><BR>
CanAm Yarns, LLC (CanAm), our joint-venture company with Frontier Spinning Mills, Inc. (Frontier), operates yarn-spinning facilities in Georgia and North Carolina. CanAm&#146;s yarn-spinning operations, together with supply agreements currently in
place with Frontier and other third-party yarn providers, serve to meet our yarn requirements.
</P>
<P align="right">
GILDAN 2009 REPORT TO SHAREHOLDERS P.3</P>

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MANAGEMENT&#146;S DISCUSSION AND ANALYSIS</font></td>
  </tr>
</table>
<P align="justify">
<U>Sales, Marketing and Distribution</U><BR>
Our global sales and marketing office, which employs approximately 145 full-time employees, is located in St. Michael, Barbados and is responsible for customer-related functions, including sales management, marketing, customer service, credit
management, sales forecasting, and inventory control and logistics. The Company also employs a sales group in the U.S. to service its retail customers.
</P>
<P align="justify">
We distribute our activewear products for the screenprint channel primarily out of our distribution centre in Eden, North Carolina, and also use third-party warehouses in the western United States, Canada, Mexico, Europe and Asia to service our
customers in these markets. Shipments are also made directly from our third party contractors in Haiti and from our facilities in Honduras. To service the mass-market retail channel, we operate a distribution centre in Martinsville, Virginia. In
addition, with our acquisition of Prewett in fiscal 2008, we have two distribution facilities in Fort Payne, Alabama.  On November 17, 2009, the Company completed the acquisition of a state-of-the-art distribution centre and office building in
Charleston, South Carolina, for approximately &#36;20 million.  This facility will be utilized to support the Company&#146;s retail strategy, and is also expected to generate cost reductions and efficiencies as a result of consolidating existing
distribution capacity.</P>
<P align="justify">
<B>Employees and Corporate Offices</B><BR>
As of the end of fiscal 2009 we employed more than 19,000 full-time employees worldwide. Our corporate head office is located in Montreal, Canada.
</P>
<P align="justify">
<B>Competitive Environment</B><BR>
The apparel market for our products is highly competitive. Competition is generally based upon price, with reliable quality and service also being critical requirements for success. Our competitive strengths include our expertise in building and
operating large-scale, vertically-integrated offshore manufacturing hubs which allows us to offer competitive pricing, consistent product quality, and a supply chain which efficiently services replenishment programs with short production/delivery
cycle times. Our investments and commitment to our corporate social responsibility programs are also increasingly becoming important factors for our customers. We are focused on providing a more socially and environmentally responsible supply chain
for our customers by employing progressive hiring and employment practices in good working conditions, minimizing our environmental footprint and contributing to communities in the countries in which we operate.</P>
<P align="justify">
Gildan is the leading supplier of activewear products for the screenprint channel in the U.S. and Canada, and also a leading supplier for this market in Europe and Mexico. In the U.S. mass-market retail channel Gildan is one of the leading suppliers
of socks. Our primary competitors in North America are the major manufacturers for the screenprint and retail channels, such as Hanesbrands Inc., Berkshire Hathaway Inc. through its subsidiaries Fruit of the Loom, Inc. and Russell Corporation, and
smaller U.S.-based manufacturers, including Anvil Knitwear Inc. We also compete with Alstyle Apparel, a division of Ennis Corp., and Delta Apparel Inc. The competition in the European screenprint channel is similar to that in North America, as we
compete primarily with the European divisions of the major U.S.-based manufacturers mentioned above. We also face the threat of increasing global competition. In Europe, we also have large competitors that do not have integrated manufacturing
operations and source products from suppliers in Asia. In addition, many of Gildan&#146;s U.S. competitors servicing the retail apparel industry currently source products from Asia.</P>
<P align="justify">
<B>Economic Environment</B><BR>
During fiscal 2009, the severe downturn in the overall economic environment resulted in a dramatic curtailment of consumer and corporate spending which negatively impacted demand for our products in the
U. S. and other international screenprint markets, and also resulted in significant inventory destocking at the
U. S. distributor level. Unit shipments from U.S. wholesale distributors to U.S. screenprinters in fiscal 2009
were down approximately 14.7% based on the S.T.A.R.S. report produced by ACNielsen Market Decisions. In the first quarter of fiscal 2009, inventory destocking occurred as distributors reduced inventory levels on hand at the end of fiscal 2008, and
managed their working capital requirements. In the
second quarter of fiscal 2009, as a result of the economic slowdown and the financial market crisis, the Company&#146;s largest wholesale distributor, Broder Bros., Co. (Broder) entered into a process to restructure its debt financing which
curtailed its ability to replenish its inventory. During the third quarter of fiscal 2009, Broder announced that it had successfully completed its financial restructuring and consequently we began normal replenishment of its inventory requirements.
In addition, during fiscal 2009, an unfavourable supply-demand and competitive environment combined with the deflation in cotton and energy prices in the first half of the year resulted in downward pressure on net activewear selling prices. Weaker
demand and customer inventory reductions also occurred in the mass-market retail channel.<B> </B>
</P>
<P align="right">
GILDAN 2009 REPORT TO SHAREHOLDERS P.4</P>

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MANAGEMENT&#146;S DISCUSSION AND ANALYSIS</font></td>
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</table>
<P align="justify">
During fiscal 2009, we took a number of steps in response to the downturn in the economy, in order to prudently manage our receivables, inventory levels and capital expenditures. We experienced a significantly higher than usual build-up of
activewear inventories in the first half of fiscal 2009 due to the decline in our sales combined with the reduction of inventories at the customer level. As a result, we took production downtime at most of our production facilities in order to
better align our inventory levels with projected sales demand. We also achieved significant reductions in our sock inventories, as planned, due in part to improved supply chain efficiencies. We managed our credit risk cautiously, as we balanced
short-term market share considerations in relation to increased customer credit exposure, including carefully managing our customer accounts and promotional programs, such as reducing the use of extended payment terms that we typically offer for
certain seasonal products in the second half of our fiscal year. We decided to proceed cautiously on capacity expansion projects previously announced and delayed the completion of our Rio Nance 4 sock facility and deferred the construction of our
third activewear facility (Rio Nance 5) in Honduras until the economic outlook in support of further major capacity expansion became clearer. At the end of the first quarter of fiscal 2009, we had established a goal to be essentially debt-free by
the end of the fiscal year, and we exceeded this goal by accumulating a cash position of approximately &#36;100 million at October 4, 2009. </P>
<P align="justify">
The Company is currently planning for fiscal 2010 on the basis of the continuation of weak macro economic conditions, although it believes it is in a position to take advantage of any unanticipated improvement in overall industry demand during
fiscal 2010. Please refer to the section entitled &#147;Outlook&#148; on page 21.  </P>
<P align="justify">
<B><U>STRATEGY AND OBJECTIVES</U></B><BR>
Our growth strategy comprises the following initiatives:</P>
<TABLE BCLLIST style="font-size:10pt;border-color:black;border-collapse:collapse;" cellpadding="0" cellspacing="0" width="100%" border="0">
<TR>
	<TD width=5% valign=top>
<B>1.</B> 	</TD>
	<TD>
<P align="justify"><B>Maximize screenprint market penetration and opportunities</B></P>
	</TD>
</TR>
<TR>
<TD width=5%></TD>	<TD>
<P align="justify">While we have achieved a leadership position in the screenprint channel in the U.S. and in Canada, we believe we can continue to further solidify our position in the North American screenprint channel and expand our presence in
international screenprint markets. In recent years, we have further developed our integrated manufacturing hubs in Central America and the Caribbean Basin, which we expect will allow us to allocate capacity to service product categories and
geographical locations where our growth was previously constrained by capacity availability. We are currently planning to invest further in capacity expansions within our existing manufacturing hubs.</P>
	</TD>
</TR>
<TR><TD>&nbsp;</TD><TD>&nbsp;</TD></TR><TR>
<TD width=5%></TD>	<TD>
<P align="justify"><B><I>U.S. Screenprint Market</I></B></P>
	</TD>
</TR>
<TR>
<TD width=5%></TD>	<TD>
<P align="justify">During fiscal 2009, we further increased our leading market share position in the U.S. screenprint channel in all of our product categories as reported in the S.T.A.R.S. report produced by ACNielsen Market Decisions. Our overall
total market share in this channel increased to 56.6% for the nine months ended September 30, 2009 compared to 51.9% for the same period last year. We intend to continue gaining market share in all of the product categories that we serve within the
U.S. screenprint channel, namely T-shirts, sport shirts and fleece, through our continued focus on delivering consistent high quality products, reliable customer service and competitive pricing. In addition, the introduction of new products such as
softer T-shirts and sport shirts made of ring-spun cotton and new styles tailored for women, should enable us to further increase our market share by serving certain niches of the
screenprint channel in which we previously did not participate. We also intend to grow our private label activewear business to provide undecorated products to large branded apparel companies and retailers
which sell imprinted activewear and  are currently not supplied by our existing U.S. wholesale distributors.</P>
	</TD>
</TR>
</TABLE>
<P align="right">
GILDAN 2009 REPORT TO SHAREHOLDERS P.5</P>

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MANAGEMENT&#146;S DISCUSSION AND ANALYSIS</font></td>
  </tr>
</table>
<P align="justify" style="margin-left: 5%">
<B><I>International Markets <br>
</I></B>We expect to pursue further market penetration primarily within our existing screenprint channels in Europe, Mexico and the Asia/Pacific region. We continue to seek opportunities for growth in Europe, having expanded our product-lines, including the
introduction of ring-spun cotton activewear products. In Mexico, we intend to grow our presence in the screenprint channel by building on the sales and distribution infrastructure that we have recently established in the country. In addition, in
fiscal 2007, we began selling our products in Japan in both the screenprint and retail channels and during fiscal 2008, we established a sales office in China to position Gildan to service both the screenprint and retail channels in that country.
The Company is continuing to evaluate opportunities to further develop its presence in its target markets in China.</P>
<TABLE BCLLIST style="font-size:10pt;border-color:black;border-collapse:collapse;" cellpadding="0" cellspacing="0" width="100%" border="0">
<TR>
	<TD width=5% valign=top>
<B>2.</B> 	</TD>
	<TD>
<P align="justify"><B>Leverage our successful business model to further penetrate the mass-market retail channel</B></P>
	</TD>
</TR>
<TR>
<TD width=5%></TD>	<TD>
<P align="justify">The acquisitions of Kentucky Derby in fiscal 2006 and of Prewett at the beginning of fiscal 2008, combined with the addition of new branded and private label sock programs, have positioned us as a leading supplier of basic family
socks in the U.S. mass-market retail channel. We have begun to build on our significant market position in socks to establish a significant presence in the mass-market retail channel with our activewear and underwear product lines. We are leveraging
our existing core competencies, successful business model and competitive strengths. Our value proposition in the retail channel as in the screenprint channel combines consistent quality, competitive pricing and fast and flexible replenishment, due
to our geographical proximity to our markets, as well as our leadership in corporate social responsibility and environmental sustainability. During fiscal 2009, we strengthened our position with mass-market retailers by positioning ourselves as a
strategic private label supplier to mass retailers seeking to consolidate their supply chain with fewer, larger manufacturers.</P>
	</TD>
</TR>
<TR><TD>&nbsp;</TD><TD>&nbsp;</TD></TR><TR>
<TD width=5%></TD>	<TD>
<P align="justify">We have continued to build on the successful performance of our private label sock programs and have been awarded Gildan
a major strategic underwear program as well as a smaller underwear program and
three further sock programs, which are all expected to begin shipment in the
second quarter of fiscal 2010. We are currently in active discussions to secure
further opportunities with mass retailers for new programs during fiscal 2010.
The annualized full year incremental sales revenue from the additional new mass
market retail programs already obtained by the Company in fiscal 2010 is
currently estimated to be approximately $70 million. </P>
	</TD>
</TR>
<TR><TD>&nbsp;</TD><TD>&nbsp;</TD></TR><TR>
<TD width=5%></TD>	<TD>
<P align="justify">We have also pursued a strategy of selling our products with the Gildan brand to regional retailers. During fiscal 2009, we continued to further penetrate this channel by adding to our customer base and expanding Gildan branded
products with regional retailer chains. We currently sell Gildan branded products in more than 1,700 retail stores.</P>
	</TD>
</TR>
<TR><TD>&nbsp;</TD><TD>&nbsp;</TD></TR><TR>
	<TD width=5% valign=top>
<B>3.</B> 	</TD>
	<TD>
<P align="justify"><B>Continue to generate manufacturing and distribution cost reductions</B></P>
	</TD>
</TR>
<TR>
<TD width=5%></TD>	<TD>
<P align="justify">We seek to continuously improve our manufacturing and distribution processes and cost structure by developing and investing in cost-reduction initiatives. In addition to our continuing consolidation of our manufacturing operations
in our Central American and Caribbean Basin hubs, we are implementing other cost reduction initiatives which include, among others, our plans to install biomass facilities as an alternate source of natural renewable energy in order to reduce our
reliance on high-cost fossil fuels and further reduce our environmental footprint. We are also planning to achieve further efficiencies in operating our distribution activities.</P>
	</TD>
</TR>
</TABLE>
<P align="right">
GILDAN 2009 REPORT TO SHAREHOLDERS P.6</P>

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  <tr>
    <td width="50%" valign="bottom">
    <img border="0" src="mdaht1.jpg" width="100" height="33"></td>
    <td width="50%" valign="bottom">
    <p align="right"><font size="2"><br>
MANAGEMENT&#146;S DISCUSSION AND ANALYSIS</font></td>
  </tr>
</table>
<P align="justify" style="margin-left: 5%">
During fiscal 2009, we continued to consolidate our manufacturing operations in our manufacturing hub in Central America as we transitioned our U.S. sock finishing operations, which were purchased as part of the Prewett acquisition, to sock
finishing facilities in Honduras. During fiscal 2010, the Company plans to complete the construction of Rio Nance 4, its second sock manufacturing facility in Honduras and begin operating the facility during fiscal 2010. </P>
<P align="justify" style="margin-left: 5%">
During fiscal 2009, we began construction of a biomass steam generation system in the Dominican Republic, which is expected to contribute to the reduction of our energy consumption and related costs. The biomass steam generation system is expected
to be operational by February 2010. Our current plans for fiscal 2010 also include the initiation of similar biomass steam generation projects at our sock manufacturing facilities in Honduras. We are also planning to implement similar systems for
our two textile facilities in Honduras in the future.</P>
<P align="justify" style="margin-left: 5%">
In November 2009, we completed the acquisition of a state-of-the-art distribution centre and office building in Charleston, South Carolina. This facility will be utilized to support our retail growth strategy and is also expected to generate cost
reductions and improved efficiencies as a result of consolidating existing distribution capacity.  Furthermore, we plan to build a new distribution centre in Rio Nance, Honduras to handle value-added labour intensive activities for mass-market
retail customers and to support direct shipments to some of our markets.</P>
<P align="justify">
<B>4. </B>
</P>
<P align="justify" style="margin-left: 5%; margin-top: -25.5pt">
<B>Re-invest and/or redistribute cash flow</B><BR>
We will evaluate opportunities to reinvest our cash flows generated from operations. Our primary use of cash will continue to be to finance our working capital and capital expenditure requirements to support our organic growth, but at the same time
we will be open to evaluating complementary strategic acquisition opportunities which meet our return on investment criteria, based on our risk-adjusted cost of capital.
</P>
<P align="justify" style="margin-left: 5%">
In addition, we will opportunistically consider share repurchases if management and the Board at any time believe that our shares are undervalued, and we also intend, as we have done periodically in the past, to discuss with our Board the possible
introduction of a dividend. </P>
<P align="justify">
We are subject to a variety of business risks that may affect our ability to maintain our current market share and profitability, as well as our ability to achieve our short and long-term strategic objectives. These risks are described under the
&#147;Financial Risk Management&#148; and &#147;Risks and Uncertainties&#148; sections of this MD&amp;A. </P>
<P align="right">
GILDAN 2009 REPORT TO SHAREHOLDERS P.7</P>

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    <td width="50%" valign="bottom">
    <img border="0" src="mdaht1.jpg" width="100" height="33"></td>
    <td width="50%" valign="bottom">
    <p align="right"><font size="2"><br>
MANAGEMENT&#146;S DISCUSSION AND ANALYSIS</font></td>
  </tr>
</table>
<P align="justify">
<B><U>OPERATING RESULTS</U></B><BR>
</P>
<P align="justify">
<B>OPERATING RESULTS FOR THE YEAR ENDED OCTOBER 4, 2009, COMPARED TO THE YEAR ENDED OCTOBER 5, 2008 </B></P>
<P align="justify">
<U>Statement of Earnings Classifications</U><BR>
Effective the first quarter of fiscal 2009, the Company changed certain classifications of its statement of earnings and comprehensive income with retrospective application to comparative figures presented for prior periods. These new
classifications align the results of operations by function and incorporate presentation requirements under the Canadian Institute of Chartered Accountants (CICA) Handbook Section 3031, <I>Inventories</I>, which has been adopted effective the first
quarter of fiscal 2009. Pursuant to the requirements of Section 3031, depreciation expense related to manufacturing activities is now included in cost of sales. The remaining depreciation and amortization expense has been reclassified to selling,
general and administrative expenses. Depreciation and amortization expense is therefore no longer presented as a separate caption on the statement of earnings and comprehensive income. In addition, the Company reclassified certain other items in its
statement of earnings and comprehensive income. Outbound freight to customers, previously classified within selling, general and administrative expenses, is now reported within cost of sales. Also, a new caption is now presented for financial
expenses and income, which includes interest income and expenses (including mark-to-market adjustments of interest rate swap contracts), foreign exchange gains and losses (including mark-to-market adjustments of forward foreign exchange contracts),
and other financial charges. Interest expense net of interest income was previously reported as a separate caption, while foreign exchange gains and losses were previously included in cost of sales. Other financial charges were previously reflected
in selling, general and administrative expenses. For the year ended October 5, 2008 these changes in classification have resulted in a decrease of &#36;63.8 million (2007 - &#36;47.8 million) and &#36;8.7 million (2007 - &#36;11.1 million) in gross
profit and selling, general and administrative expenses, respectively, compared to the amounts previously reported. The decrease of &#36;63.8 million (2007 -&#36;47.8 million) in gross profit is due to reclassifications of &#36;44.1 million (2007 -
&#36;30.4 million) of depreciation and amortization expense, &#36;20.6 million (2007 - &#36;16.7 million) of outbound freight to customers less &#36;0.9 million (2007 &#150; plus &#36;0.7 million of foreign exchange gain) of foreign exchange loss
and other financial income. There was no impact on net earnings as a result of these changes in classification.
</P>
<P align="justify">
For the fourth quarter of fiscal 2008, these changes in classification have resulted in a decrease in amounts previously reported for gross profit of &#36;16.3 million, and a decrease of &#36;1.7 million in selling, general and administrative
expenses.  The decrease of &#36;16.3 million in gross profit is due to reclassifications of &#36;11.8 million of depreciation and amortization expense, &#36;4.7 million of outbound freight to customers less &#36;0.2 million of foreign exchange loss
and other financial income. </P>
<P align="justify">
<U>Non-GAAP Measures</U><BR>
We use non-GAAP measures to assess our operating performance. Securities regulations require that companies caution readers that earnings and other measures adjusted to a basis other than GAAP do not have standardized meanings and are unlikely to be
comparable to similar measures used by other companies. Accordingly, they should not be considered in isolation. We use non-GAAP measures including adjusted net earnings, adjusted diluted EPS, EBITDA, free cash flow, total indebtedness and cash in
excess of total indebtedness/net indebtedness to measure our performance from one period to the next without the variation caused by certain adjustments that could potentially distort the analysis of trends in our operating performance, and because
we believe such measures provide meaningful information on the Company&#146;s financial condition and operating results.</P>
<P align="justify">
We refer the reader to page 39 for the definition and complete reconciliation of all non-GAAP measures used and presented by the Company to the most directly comparable GAAP measures. </P>
<P align="right">
GILDAN 2009 REPORT TO SHAREHOLDERS P.8</P>

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  <tr>
    <td width="50%" valign="bottom">
    <img border="0" src="mdaht1.jpg" width="100" height="33"></td>
    <td width="50%" valign="bottom">
    <p align="right"><font size="2"><br>
MANAGEMENT&#146;S DISCUSSION AND ANALYSIS</font></td>
  </tr>
</table>
<P align=justify><U>Business Acquisition</U><BR>On October 15, 2007, we acquired 100% of the capital stock of
Prewett, a U.S. supplier of basic family socks to U.S. mass-market retailers,
based in Fort Payne, Alabama. The aggregate purchase price of $128.0 million was
comprised of cash consideration of $125.3 million, a deferred payment of $1.2
million, which was disbursed in the fourth quarter of fiscal 2009, and
transaction costs of $1.5 million. We accounted for this acquisition using the
purchase method and, our results of operations for fiscal 2008 include the
operations of Prewett from the date of acquisition. The purchase agreement also
provides for an additional purchase consideration of up to $10.0 million
contingent on specified future events less amounts reimbursed to Gildan. This
amount was paid into escrow by Gildan on October 15, 2007, but events occurring
subsequent to the acquisition have resulted in a reduction of the contingent
purchase price and escrow balance to $6.0 million as at October 4, 2009. The
escrow deposit of $6.0 million (October 5, 2008 - $10.0 million) is included in
other assets on the consolidated balance sheet. The remaining contingent
purchase price may be subject to further reductions during fiscal 2010 and 2011.
The amounts of contingent purchase price ultimately disbursed from the escrow
account will be accounted for as additional goodwill. Please refer to Note 2 to
the audited Consolidated Financial Statements for a summary of the estimated
fair value of the assets acquired and liabilities assumed at the date of
acquisition. </P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD align=left>SELECTED ANNUAL INFORMATION </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%"><B>2009</B> </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%">2008 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%">2007 </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left><I>(in $ millions,
      except per share amounts)</I> </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="10%">&nbsp;
    </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right
      width="10%">Recast<SUP>(1)</SUP></TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right
      width="10%">Recast<SUP>(1)</SUP></TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Net Sales </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff><B>1,038.3</B> </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>1,249.7 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>964.4 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>Cost of sales </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="10%"><B>808.0</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="10%">911.2
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="10%">705.5
    </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Gross profit </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff><B>230.3</B> </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>338.5 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>258.9 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>Selling, general and administrative expenses </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%"><B>134.8</B> </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%">142.8 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%">99.9 </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      bgColor=#e6efff>Restructuring and other charges </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="10%"
    bgColor=#e6efff><B>6.2</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="10%"
    bgColor=#e6efff>5.5 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="10%"
    bgColor=#e6efff>28.0 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>Operating income </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%"><B>89.3</B> </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%">190.2 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%">131.0 </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Financial expense (income), net </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff><B>(0.3</B></TD>
    <TD align=left width="2%"  bgColor=#e6efff><B>)</B> </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>9.2 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>5.4 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>Non-controlling
      interest in consolidated joint venture </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="10%"><B>0.1</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="10%">0.2
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="10%">1.3
    </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Earnings before income taxes </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff><B>89.5</B> </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>180.8 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>124.3 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>Income taxes </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="10%"><B>(5.8</B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    ><B>)</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="10%">34.4
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
    width="10%">(4.8</TD>
    <TD align=left width="2%" >) </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      bgColor=#e6efff>Net earnings and comprehensive income </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="10%"
    bgColor=#e6efff><B>95.3</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="10%"
    bgColor=#e6efff>146.4 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="10%"
    bgColor=#e6efff>129.1 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR>
    <TD bgColor=#ffffff>&nbsp; </TD>
    <TD width="1%"  bgColor=#ffffff>&nbsp;</TD>
    <TD width="10%" bgColor=#ffffff>&nbsp; </TD>
    <TD width="2%"  bgColor=#ffffff>&nbsp;</TD>
    <TD width="1%"  bgColor=#ffffff>&nbsp;</TD>
    <TD width="10%" bgColor=#ffffff>&nbsp; </TD>
    <TD width="2%"  bgColor=#ffffff>&nbsp;</TD>
    <TD width="1%"  bgColor=#ffffff>&nbsp;</TD>
    <TD width="10%" bgColor=#ffffff>&nbsp; </TD>
    <TD width="2%"  bgColor=#ffffff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#ffffff>Basic EPS<SUP>(2)</SUP> </TD>
    <TD align=left width="1%"  bgColor=#ffffff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#ffffff><B>0.79</B> </TD>
    <TD align=left width="2%"  bgColor=#ffffff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#ffffff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#ffffff>1.21 </TD>
    <TD align=left width="2%"  bgColor=#ffffff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#ffffff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#ffffff>1.07 </TD>
    <TD align=left width="2%"  bgColor=#ffffff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#E6EFFF>Diluted EPS<SUP>(2)</SUP> </TD>
    <TD align=left width="1%"  bgColor=#E6EFFF>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#E6EFFF><B>0.79</B> </TD>
    <TD align=left width="2%"  bgColor=#E6EFFF>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#E6EFFF>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#E6EFFF>1.20 </TD>
    <TD align=left width="2%"  bgColor=#E6EFFF>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#E6EFFF>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#E6EFFF>1.06 </TD>
    <TD align=left width="2%"  bgColor=#E6EFFF>&nbsp;</TD></TR>
  <TR>
    <TD bgColor=#ffffff>&nbsp; </TD>
    <TD width="1%"  bgColor=#ffffff>&nbsp;</TD>
    <TD width="10%" bgColor=#ffffff>&nbsp; </TD>
    <TD width="2%"  bgColor=#ffffff>&nbsp;</TD>
    <TD width="1%"  bgColor=#ffffff>&nbsp;</TD>
    <TD width="10%" bgColor=#ffffff>&nbsp; </TD>
    <TD width="2%"  bgColor=#ffffff>&nbsp;</TD>
    <TD width="1%"  bgColor=#ffffff>&nbsp;</TD>
    <TD width="10%" bgColor=#ffffff>&nbsp; </TD>
    <TD width="2%"  bgColor=#ffffff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#ffffff>Total assets </TD>
    <TD align=left width="1%"  bgColor=#ffffff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#ffffff><B>1,082.4</B> </TD>
    <TD align=left width="2%"  bgColor=#ffffff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#ffffff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#ffffff>1,095.0 </TD>
    <TD align=left width="2%"  bgColor=#ffffff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#ffffff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#ffffff>867.7 </TD>
    <TD align=left width="2%"  bgColor=#ffffff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      bgColor=#E6EFFF>Total long-term financial liabilities<SUP>(3)</SUP> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#E6EFFF>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="10%"
    bgColor=#E6EFFF><B>4.4</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#E6EFFF>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#E6EFFF>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="10%"
    bgColor=#E6EFFF>53.0 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#E6EFFF>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#E6EFFF>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="10%"
    bgColor=#E6EFFF>59.7 </TD>
    <TD align=left width="2%"  bgColor=#E6EFFF>&nbsp;</TD></TR>
  <TR>
    <TD bgColor=#ffffff>&nbsp; </TD>
    <TD width="1%"  bgColor=#ffffff>&nbsp;</TD>
    <TD width="10%" bgColor=#ffffff>&nbsp; </TD>
    <TD width="2%"  bgColor=#ffffff>&nbsp;</TD>
    <TD width="1%"  bgColor=#ffffff>&nbsp;</TD>
    <TD width="10%" bgColor=#ffffff>&nbsp; </TD>
    <TD width="2%"  bgColor=#ffffff>&nbsp;</TD>
    <TD width="1%"  bgColor=#ffffff>&nbsp;</TD>
    <TD width="10%" bgColor=#ffffff>&nbsp; </TD>
    <TD width="2%"  bgColor=#ffffff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#ffffff colSpan=3>Certain minor rounding variances
      exist between the financial statements and this summary. </TD>
    <TD align=left width="2%"  bgColor=#ffffff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#ffffff>&nbsp;</TD>
    <TD align=left width="10%" bgColor=#ffffff>&nbsp; </TD>
    <TD align=left width="2%"  bgColor=#ffffff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#ffffff>&nbsp;</TD>
    <TD align=left width="10%" bgColor=#ffffff>&nbsp; </TD>
    <TD align=left width="2%"  bgColor=#ffffff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#ffffff colSpan=10><FONT style="font-size: 9pt"><I>(1) Reflects the
      impact of the change in accounting policy as described in Note 1(b) to the
      audited Consolidated Financial Statements</I> <EM>and the changes to
      classifications in the statement of earnings and comprehensive income as
      discussed on page 8.</EM> </FONT>&nbsp; </TD>
    </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#ffffff><FONT style="font-size: 9pt"><I>(2) All earnings per share
      data reflect the effect of the stock split as described on page 21.</I>
      </FONT></TD>
    <TD align=left width="1%"  bgColor=#ffffff><FONT style="font-size: 9pt">&nbsp;</FONT></TD>
    <TD align=left width="10%" bgColor=#ffffff><FONT style="font-size: 9pt">&nbsp; </FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff><FONT style="font-size: 9pt">&nbsp;</FONT></TD>
    <TD align=left width="1%"  bgColor=#ffffff><FONT style="font-size: 9pt">&nbsp;</FONT></TD>
    <TD align=left width="10%" bgColor=#ffffff><FONT style="font-size: 9pt">&nbsp; </FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#ffffff>&nbsp;</TD>
    <TD align=left width="10%" bgColor=#ffffff>&nbsp; </TD>
    <TD align=left width="2%"  bgColor=#ffffff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#ffffff><FONT style="font-size: 9pt"><I>(3) Includes current
      portion of long-term debt.</I> </FONT></TD>
    <TD align=left width="1%"  bgColor=#ffffff><FONT style="font-size: 9pt">&nbsp;</FONT></TD>
    <TD align=left width="10%" bgColor=#ffffff><FONT style="font-size: 9pt">&nbsp; </FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff><FONT style="font-size: 9pt">&nbsp;</FONT></TD>
    <TD align=left width="1%"  bgColor=#ffffff><FONT style="font-size: 9pt">&nbsp;</FONT></TD>
    <TD align=left width="10%" bgColor=#ffffff><FONT style="font-size: 9pt">&nbsp; </FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#ffffff>&nbsp;</TD>
    <TD align=left width="10%" bgColor=#ffffff>&nbsp; </TD>
    <TD align=left width="2%"
  bgColor=#ffffff>&nbsp;</TD></TR></TABLE>
<P align=justify><U>Net Sales</U><BR>Net sales in fiscal 2009 totaled $1,038.3 million, down 16.9%,
from $1,249.7 million in fiscal 2008. Sales of activewear and underwear in
fiscal 2009 were $795.5 million, down 16.9% from $957.1 million last year, and
sales of socks were $242.8 million, down 17.0% from $292.7 million in fiscal
2008.</P>
<P align=justify>The activewear and underwear sales decline in fiscal 2009 of
16.9% was mainly due to a 9.3% decline in unit sales volumes, unfavourable
activewear product-mix as a result of a lower proportion of sales of
higher-valued fleece and long-sleeve T-shirts, a 2.9% decrease in net selling
prices due to increased promotional activity, and the negative impact of the
stronger U.S. dollar on Canadian and international sales for activewear.<B>
</B></P>
<P align=right>GILDAN 2009 REPORT TO SHAREHOLDERS P.9</P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<table border="0" cellpadding="0" cellspacing="0" style="border-collapse: collapse" bordercolor="#111111" width="100%" id="AutoNumber1">
  <tr>
    <td width="50%" valign="bottom">
    <img border="0" src="mdaht1.jpg" width="100" height="33"></td>
    <td width="50%" valign="bottom">
    <p align="right"><font size="2"><br>
MANAGEMENT&#146;S DISCUSSION AND ANALYSIS</font></td>
  </tr>
</table>
<P align=justify>Demand in the U.S. wholesale distributor channel in fiscal 2009
was negatively impacted by the global economic downturn as overall industry
shipments from U.S. distributors to screenprinters declined by 15.4% for the
nine months ended September 30, 2009. Gildan&#146;s market share gains partially
mitigated the market decline as unit shipments for Gildan products sold by U.S.
distributors to U.S. screenprinters declined by 7.2% during the nine months
ended September 30, 2009. The unit volume decline in activewear was mainly
attributable to the decline in overall industry unit shipments and the
significant impact of inventory reductions during the year by U.S. wholesale
distributors, particularly in the first half of fiscal 2009. These negative
factors more than offset the benefit of Gildan&#146;s increased market share
penetration in the U.S. screenprint channel and increased shipments to imprinted
private label customers and international markets.</P>
<P align=justify>Market growth and share data presented for the U.S. wholesale
distributor channel is based on the S.T.A.R.S. report produced by ACNielsen
Market Decisions. The table below summarizes the S.T.A.R.S. data for the nine
months ended September 30, 2009: </P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 8pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD align=left><FONT size=2>&nbsp; </FONT></TD>
    <TD align=center width="26%" colSpan=2><FONT size=2><B>Nine months
      ended</B> </FONT></TD>
    <TD align=center width="26%" colSpan=2><FONT size=2><B>Nine months
      ended</B> </FONT></TD></TR>
  <TR vAlign=top>
    <TD align=left><FONT size=2>&nbsp; </FONT></TD>
    <TD align=center width="26%" colSpan=2><FONT size=2><B>September 30,</B>
      </FONT></TD>
    <TD align=center width="26%" colSpan=2><FONT size=2><B>September 30,</B>
      </FONT></TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left><FONT
      size=2>&nbsp; </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="26%"
    colSpan=2><FONT size=2><B>2009</B> </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center
      width="13%"><FONT size=2><B>2009</B> </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center
      width="13%"><FONT size=2><B>2008</B> </FONT></TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left><FONT
      size=2>&nbsp; </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="26%"
    colSpan=2><FONT size=2><B>Unit Growth</B> </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="26%"
    colSpan=2><FONT size=2><B>Market Share</B> </FONT></TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left><FONT
      size=2>&nbsp; </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center
      width="13%"><FONT size=2><B>Gildan</B> </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center
      width="13%"><FONT size=2><B>Industry</B> </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="26%"
    colSpan=2><FONT size=2><B>Gildan</B> </FONT></TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff><FONT size=2>All products </FONT></TD>
    <TD align=center width="13%" bgColor=#e6efff><FONT size=2><B>(7.2)%</B>
      </FONT></TD>
    <TD align=center width="13%" bgColor=#e6efff><FONT size=2>(15.4)%
    </FONT></TD>
    <TD align=center width="13%" bgColor=#e6efff><FONT size=2><B>56.6%</B>
      </FONT></TD>
    <TD align=center width="13%" bgColor=#e6efff><FONT size=2>51.9%
  </FONT></TD></TR>
  <TR vAlign=top>
    <TD align=left><FONT size=2>T-shirts </FONT></TD>
    <TD align=center width="13%"><FONT size=2><B>(7.3)%</B> </FONT></TD>
    <TD align=center width="13%"><FONT size=2>(15.3)% </FONT></TD>
    <TD align=center width="13%"><FONT size=2><B>57.3%</B> </FONT></TD>
    <TD align=center width="13%"><FONT size=2>52.7% </FONT></TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff><FONT size=2>Fleece </FONT></TD>
    <TD align=center width="13%" bgColor=#e6efff><FONT size=2><B>(2.3)%</B>
      </FONT></TD>
    <TD align=center width="13%" bgColor=#e6efff><FONT size=2>(12.5)%
    </FONT></TD>
    <TD align=center width="13%" bgColor=#e6efff><FONT size=2><B>55.6%</B>
      </FONT></TD>
    <TD align=center width="13%" bgColor=#e6efff><FONT size=2>50.0%
  </FONT></TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left><FONT size=2>Sport
      shirts </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center
      width="13%"><FONT size=2><B>(12.4)%</B> </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center
      width="13%"><FONT size=2>(22.7)% </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center
      width="13%"><FONT size=2><B>40.6%</B> </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center
      width="13%"><FONT size=2>36.0% </FONT></TD></TR></TABLE>
<P align=justify>During the nine months ended September 30, 2009, Gildan
achieved market share gains in all of its product categories and increased its
overall market share in the U.S. screenprint channel to 56.6%, up 4.7 percentage
points compared to the same period last year. We increased our leading share by
4.6 percentage points in each of the T-shirt and sport shirts product categories
and increased our leading market share in fleece products by 5.6 percentage
points.</P>
<P align=justify>Net sales in Canada and our international markets in fiscal
2009 declined 37.7% and 5.8%, respectively compared to fiscal 2008. Demand in
both the Canadian and the international screenprint markets in which we compete
was negatively impacted by similar global economic and market conditions as in
the U.S. screenprint channel. The decrease in sales from Canada was due to a
16.2% decline in unit volumes combined with inventory reductions by distributors
and the negative impact of the decline in the Canadian dollar on sales. The
decrease in international sales for the year reflected the negative impact of
the decline in the value of local currencies compared to the U.S. dollar and
lower unit volume sales in Eastern Europe, partially offset by unit volume gains
in Western Europe, the U.K. and Mexico. Although sales in Mexico represent a
small portion of our total international business, unit sales volumes more than
doubled compared to fiscal 2008, reflecting the benefit from the improved sales
and distribution infrastructure that has been implemented. </P>
<P align=justify>The decrease in sales of socks for fiscal 2009 was mainly
attributable to lower unit volumes primarily due to the elimination of
unprofitable sock product-lines and a reduction in inventories carried by
retailers, partially offset by the performance of continuing programs. New
mass-retailer private label sock brands, which were introduced during fiscal
2009 performed strongly and gained market share.</P>
<P align=justify><U>Gross Profit</U><BR>Effective the first quarter of fiscal 2009, we changed the
classification of our statement of earnings and comprehensive income which
affected reported gross profit as described on page 8. Gross profit is the
result of our net sales less cost of sales. Gross margin reflects gross profit
as a percentage of sales. Our cost of sales includes all raw material costs,
manufacturing conversion costs, including manufacturing depreciation expense,
sourcing costs, transportation costs incurred until the receipt of finished
goods at our distribution facilities and outbound freight to customers. Cost
of sales also includes costs relating to purchasing, receiving and inspection
activities, manufacturing administration, third-party manufacturing services,
insurance, internal transfer of inventories, and customs and duties. Our
reporting of gross margins may not be comparable to this metric as reported by
other companies, since some entities exclude depreciation expense and the cost
of shipping goods to customers from cost of sales.</P>
<P align=right>GILDAN 2009 REPORT TO SHAREHOLDERS P.10</P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<table border="0" cellpadding="0" cellspacing="0" style="border-collapse: collapse" bordercolor="#111111" width="100%" id="AutoNumber1">
  <tr>
    <td width="50%" valign="bottom">
    <img border="0" src="mdaht1.jpg" width="100" height="33"></td>
    <td width="50%" valign="bottom">
    <p align="right"><font size="2"><br>
MANAGEMENT&#146;S DISCUSSION AND ANALYSIS</font></td>
  </tr>
</table>
<P align=justify>Gross profit for fiscal 2009 was $230.3 million, or 22.2% of
net sales, compared to $338.5 million, or 27.1% of net sales during fiscal 2008.
The decline in gross margins in fiscal 2009 was mainly attributable to lower net
selling prices for activewear due to increased promotional discounting, the
significant impact of higher cotton costs, the negative effect of currency
fluctuations and a more unfavourable activewear product-mix. Also contributing
to the decline were the impacts of production downtime taken during fiscal 2009
in order to align our inventory requirements with demand, inefficiencies related
to the transition in sock private label brands for Gildan&#146;s largest retail
customer, and higher depreciation expense. These negative factors were partially
offset by lower manufacturing and energy costs and the non-recurrence of
manufacturing inefficiencies in fiscal 2008 related to production constraints.
</P>
<P align=justify><U>Selling, General and Administrative Expenses</U><BR>Effective the first quarter of fiscal 2009, we changed the
classification of our statement of earnings and comprehensive income which
affected reported selling, general and administrative expenses as described on
page 8. Selling, general and administrative (SG&amp;A) include warehousing and
handling costs, selling and administrative personnel costs, advertising and
marketing expenses, costs of leased facilities and equipment, professional fees,
non-manufacturing depreciation expense, and other general and administrative
expenses. SG&amp;A expenses also include amortization of customer-related
intangible assets and bad debt expense.</P>
<P align=justify>Selling, general and administrative (SG&amp;A) expenses were
$134.8 million, or 13.0% of net sales in fiscal 2009, compared to $142.8
million, or 11.4% of net sales, in fiscal 2008. The decrease in SG&amp;A
expenses was primarily due to efficiencies in the management of distribution
expenses, as well as reductions due to lower volumes, and the positive impact of
the lower-valued Canadian dollar on corporate administrative expenses, partially
offset by an increase in variable compensation expense, higher depreciation and
amortization expense resulting from capital expenditures related to the
relocation of our new corporate head office last year, and higher professional
fees.</P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD align=left><U>Restructuring and Other Charges</U> </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="10%">&nbsp; </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="10%">&nbsp; </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="10%">&nbsp; </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR>
    <TD style="BORDER-BOTTOM: #000000 2px solid">&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" width="10%">&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" width="10%">&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" width="10%">&nbsp; </TD>
    <TD width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left><I>(in $
      millions)</I> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="10%"><B>2009</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="10%">2008
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="10%">2007
    </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="10%">&nbsp; </TD>
    <TD width="2%" >&nbsp;</TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="10%">&nbsp; </TD>
    <TD width="2%" >&nbsp;</TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="10%">&nbsp; </TD>
    <TD width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Gain on disposal of assets held for sale
</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>(0.6</TD>
    <TD align=left width="2%"  bgColor=#e6efff>) </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>(0.5</TD>
    <TD align=left width="2%"  bgColor=#e6efff>) </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>(1.5</TD>
    <TD align=left width="2%"  bgColor=#e6efff>) </TD></TR>
  <TR vAlign=top>
    <TD align=left>Accelerated depreciation </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%">- </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%">- </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%">3.5 </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Asset impairment loss and write-down of
      assets held for sale </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>1.6 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>2.7 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>3.6 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>Employee termination and other benefits </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%">2.2 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%">0.4 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%">13.6 </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Carrying and dismantling costs associated
      with assets held for sale </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>3.1 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>3.5 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>8.8 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left style="border-bottom-style: solid; border-bottom-width: 1">Adjustment for employment contract </TD>
    <TD align=left width="1%" style="border-bottom-style: solid; border-bottom-width: 1" >&nbsp;</TD>
    <TD align=right width="10%" style="border-bottom-style: solid; border-bottom-width: 1">(0.1</TD>
    <TD align=left width="2%" style="border-bottom-style: solid; border-bottom-width: 1" >) </TD>
    <TD align=left width="1%" style="border-bottom-style: solid; border-bottom-width: 1" >&nbsp;</TD>
    <TD align=right width="10%" style="border-bottom-style: solid; border-bottom-width: 1">(0.6</TD>
    <TD align=left width="2%" style="border-bottom-style: solid; border-bottom-width: 1" >) </TD>
    <TD align=left width="1%" style="border-bottom-style: solid; border-bottom-width: 1" >&nbsp;</TD>
    <TD align=right width="10%" style="border-bottom-style: solid; border-bottom-width: 1">- </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-top-style:solid; border-top-width:1" align=left
      bgColor=#e6efff>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-top-style:solid; border-top-width:1" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-top-style:solid; border-top-width:1" align=right width="10%"
    bgColor=#e6efff>6.2 </TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-top-style:solid; border-top-width:1" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-top-style:solid; border-top-width:1" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-top-style:solid; border-top-width:1" align=right width="10%"
    bgColor=#e6efff>5.5 </TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-top-style:solid; border-top-width:1" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-top-style:solid; border-top-width:1" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-top-style:solid; border-top-width:1" align=right width="10%"
    bgColor=#e6efff>28.0 </TD>
    <TD align=left width="2%"
  bgColor=#e6efff>&nbsp;</TD></TR></TABLE>
<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. In fiscal 2008, the Company announced the consolidation of its Haiti
sewing operation, which was finalized in the first half of fiscal 2009, and the
planned phase out of sock finishing operations in the U.S., which was finalized
in the third quarter of fiscal 2009. The costs incurred in connection with these
initiatives have been recorded as restructuring and other charges. </P>
<P align=justify>For fiscal 2009, restructuring and other charges totalled $6.2
million which included $3.7 million for the closure of the Company's U.S. sock
finishing operations in the third quarter, and $3.2 million primarily
related to facility closures that occurred in previous fiscal years, including carrying costs and asset write-downs relating to assets held for sale, net of a gain of &#36;0.6 million on the disposal of equipment. </P>
<P align=right>GILDAN 2009 REPORT TO SHAREHOLDERS P.11</P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
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    <td width="50%" valign="bottom">
    <p align="right"><font size="2"><br>
MANAGEMENT&#146;S DISCUSSION AND ANALYSIS</font></td>
  </tr>
</table>
<P align="justify">
Restructuring charges of &#36;5.5 million in fiscal 2008 included &#36;2.1 million relating to the consolidation of the Company's Haiti sewing operation, and &#36;4.5 million relating to facility closures which occurred in previous fiscal years,
primarily for carrying and dismantling costs associated with assets held for sale, net of a gain on disposal of assets held for sale of &#36;0.5 million. The Company also had a recovery of &#36;0.6 million from the obligations accrued for the
employment contract with the former Chairman and Co-Chief Executive Officer of the Company. </P>
<P align="justify">
The &#36;28.0 million of restructuring charges incurred in fiscal 2007 relate primarily to the closures of the Company&#146;s textile facilities in Canada and the United States and its sewing facilities in Mexico as well as the relocation of its
corporate office, resulting in employee termination costs of &#36;13.6 million, an asset impairment of &#36;3.6 million, an accelerated depreciation charge of &#36;3.5 million, a gain on disposal of assets held for sale of &#36;1.5 million, and
other exit costs of &#36;8.8 million. </P>
<P align="justify">
The Company expects to incur additional carrying costs relating to the closed facilities, which will be accounted for as restructuring charges as incurred and until all property, plant and equipment related to the closures are disposed of. Any gains
or losses on the disposal of the assets held for sale will also be accounted for as restructuring charges as incurred. </P>
<P align="justify">
<U>Financial Expense / Income, net</U><BR>
Net financial expense/income includes interest expense, net of interest income, and foreign exchange gains and losses. Net financial income amounted to &#36;0.3 million in fiscal 2009, compared to net financial expense of &#36;9.2 million in fiscal
2008. The decrease of &#36;9.5 million in net financial expense in fiscal 2009 resulted primarily from a decrease in interest expense of &#36;5.4 million and a &#36;4.2 million increase in foreign exchange gains. The decrease in interest expense was
due to lower average borrowings and lower average interest rates during fiscal 2009 compared to last year.</P>
<P align="justify">
<U>Income Taxes</U><BR>
The income tax recovery for fiscal 2009 was &#36;5.8 million, compared to an income tax expense of &#36;34.4 million for fiscal 2008. The total income tax recovery for fiscal 2009 include recoveries of &#36;6.1 million relating to the recognition of
previously unrecorded tax positions of prior years and &#36;1.8 million related to the impact of restructuring and other charges. The income tax expense for fiscal 2008 included a charge of &#36;26.9 million related to the settlement of the Canada
Revenue Agency (CRA) audit, as discussed below. Excluding the income tax recoveries in the current year as well as the impact of restructuring and other charges in both years, and the impact of the CRA audit settlement in fiscal 2008, the effective
income tax rate for fiscal 2009 was 2.2%, compared to an effective income tax rate of 4.4% for fiscal 2008.  The reduction in the effective income tax rate compared to the prior year reflected a lower proportion of profits earned in higher tax rate
jurisdictions.</P>
<P align="justify">
In the fourth quarter of fiscal 2008, the CRA concluded the audit of our income tax returns for our 2000, 2001, 2002 and 2003 fiscal years, which resulted in a tax reassessment of &#36;26.9 million and a reclassification of &#36;17.3 million of
future income tax liabilities to income taxes payable. For a more detailed discussion of the tax reassessment, please refer to the &#147;Operating Results for the Year Ended October 5, 2008 Compared to the Year Ended September 30, 2007&#148;
section, under the heading &#147;Income Taxes&#148; on page 14. In the third quarter of fiscal 2009 the CRA completed its audit of the 2004, 2005 and 2006 taxation years and there were no significant adjustments to the Company&#146;s income tax
returns. </P>
<P align="right">
GILDAN 2009 REPORT TO SHAREHOLDERS P.12</P>

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    <p align="right"><font size="2"><br>
MANAGEMENT&#146;S DISCUSSION AND ANALYSIS</font></td>
  </tr>
</table>
<P align="justify">
<U>Net Earnings</U><BR>
Net earnings for fiscal 2009 were &#36;95.3 million, or &#36;0.79 per share on a diluted basis, down 34.9% and 34.2%, respectively compared with net earnings of &#36;146.4 million, or &#36;1.20 per share on a diluted basis in fiscal 2008. Net
earnings included after-tax restructuring and other charges of &#36;4.4 million in fiscal 2009 and &#36;4.9 million in fiscal 2008. Excluding the impact of restructuring charges, adjusted net earnings and adjusted diluted EPS for fiscal 2009 totaled
&#36;99.7 million and &#36;0.82 per share compared with adjusted net earnings of &#36;151.3 million, or &#36;1.24 per share for the prior year. The reduction in adjusted net earnings and EPS was primarily due to significantly lower unit sales
volumes and gross margins, partially offset by lower SG&amp;A and financial expenses and the non-recurrence of an income tax charge of &#36;26.9 million, or &#36;0.22 per share taken in the fourth quarter of fiscal 2008.
</P>
<P align="justify">
<B>OPERATING RESULTS FOR THE YEAR ENDED OCTOBER 5, 2008 COMPARED TO THE YEAR ENDED SEPTEMBER 30, 2007 </B></P>
<P align="justify">
<U>Net Sales</U><BR>
Net Sales for fiscal 2008 reached &#36;1,249.7 million, up 29.6% from &#36;964.4 million in fiscal 2007.  The increase in net sales was due to a &#36;154.5 million increase of sock sales primarily due to the acquisition of Prewett, an increase of
approximately 6.7% in activewear selling prices and a 10.2% increase in unit sales volumes for activewear and underwear.</P>
<P align="justify">
The increase in activewear unit sales was primarily due to continuing market share penetration in all of our product categories in the U.S. distributor channel, as sales of Gildan products from U.S. distributors to screenprinters increased 4.6% for
the nine months ended September 30, 2008 according to the S.T.A.R.S. report,
while overall industry shipments declined 3.8%. Gildan&#146;s overall leading market share increased to 51.9% for the nine months ended September 30, 2008, compared to
47.8% in the same period last year. Growth in activewear unit volumes and the sale of higher-end products were constrained by lower than anticipated production at our textile facility in the Dominican Republic, including delays in the introduction
of new high-value ring-spun T-shirt and sport shirt products. The introduction of more complex product-lines contributed to the shortfall in production output, which also resulted in cost inefficiencies. Despite an improvement in production levels
by the end of the year, the lower than anticipated production in the Dominican Republic prevented us from capitalizing on demand for our products, in particular during the peak selling periods in the third and fourth fiscal quarters of the year.</P>
<P align="justify">
Unit shipments to Canada, Europe, Asia and Mexico in fiscal 2008 increased by 2.5%. Growth in these markets was also constrained, particularly in the second half of the year due to the lack of product availability and the delay of new product
introductions attributable to the production shortfall noted above. </P>
<P align="justify">
The increase in sock sales was partially offset by the impact of exiting less profitable sock product-lines, which did not fit with Gildan&#146;s strategy to focus primarily on high-volume basic sock programs in the U.S. mass-market retail channel
which capitalize on Gildan&#146;s modern large-scale manufacturing capacity.  In addition, average selling prices for socks were reduced, as selling prices for new sock programs were based on the projected cost structure of Gildan&#146;s new sock
facility in Honduras, which was ramping up to full capacity during fiscal 2008.</P>
<P align="justify">
During fiscal 2008, we continued to make progress within the mass-market retail channel. Although we had some challenges earlier in the year, in completing our systems integration of the operations of a U.S. sock manufacturer acquired in fiscal
2006, the transition was essentially complete by the end of fiscal 2008 and we were pleased with the improvement in our service levels to mass retailers. We continued to implement our strategy to rationalize our sock product-mix, in order to focus
on basic higher-volume products and programs which capitalize on Gildan&#146;s modern large-scale manufacturing.</P>
<P align="justify">
<U>Gross Profit</U><BR>
Gross profit for fiscal 2008 and 2007 reflects the impact of the change in statement of earnings classification as described on page 8, and the change in accounting policy as described in Note 1(b) to the audited Consolidated Financial
Statements.
</P>
<P align="justify">
Gross profit for fiscal 2008 was $338.5 million, or 27.1% of net sales, compared to &#36;258.9 million, or 26.8% of net sales during fiscal 2007. Gross margins for fiscal 2008 were positively impacted by higher activewear selling prices and lower
promotional discounts, together with favourable manufacturing efficiencies resulting from the consolidation of our textile facilities. These positive factors were offset by higher cotton prices, increased freight and energy costs, higher
depreciation and amortization, production inefficiencies in our Dominican Republic facility, the impact of inventory write-downs related to the liquidation of discontinued sock product-lines, and the impact of the lower gross margins generated from
our Prewett acquisition which generated lower margins than our activewear products.  The production inefficiencies affecting our Dominican Republic facility were essentially resolved by the end of the fourth quarter of fiscal 2008.
</P>
<P align="right">
GILDAN 2009 REPORT TO SHAREHOLDERS P.13</P>

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    <td width="50%" valign="bottom">
    <p align="right"><font size="2"><br>
MANAGEMENT&#146;S DISCUSSION AND ANALYSIS</font></td>
  </tr>
</table>
<P align="justify">
<U>Selling, General and Administrative Expenses</U><BR>
Selling, General and Administrative Expenses for fiscal 2008 and 2007 reflect the impact of the change in statement of earnings classification as described on page 8.
</P>
<P align="justify">
SG&amp;A expenses were &#36;142.8 million, or 11.4% of net sales in fiscal 2008, compared to &#36;99.9 million, or 10.4% of net sales in fiscal 2007. The increase in SG&amp;A expenses in fiscal 2008 was due to the acquisition of Prewett, higher
distribution and transportation expenses driven by volume increases and higher fuel costs, higher depreciation and amortization, higher bad debt expense, higher corporate costs, including the impact of the higher-valued Canadian dollar during the
year, a charge for the disposal of surplus fixed assets, and professional fees for special projects. </P>
<P align="justify">
<U>Financial Expense / Income, net</U><BR>
Net financial expense amounted to &#36;9.2 million during fiscal 2008, up from &#36;5.4 million in fiscal 2007. The increase in net financial expense was due mainly to an increase in net interest expense, resulting from lower investment income and
higher borrowings during fiscal 2008, mainly due to the use of funds for the acquisition of Prewett.
</P>
<P align="justify">
<U>Income Taxes</U><BR>
The CRA conducted an audit of our income tax returns for our 2000, 2001, 2002 and 2003 fiscal years, the scope of which included a review of transfer pricing and the allocation of income between the Company&#146;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 our foreign
subsidiaries where the majority of our taxable income is earned. On December 10, 2008, the Company reached a final agreement with the CRA and concluded the audit for the 2000, 2001, 2002 and 2003 fiscal years. In connection with the terms of the
agreement, we agreed to a tax reassessment related to the restructuring of our international wholesale business and the related transfer of our assets to our Barbados subsidiary, which occurred in fiscal 1999. The terms of the agreement were
accounted for in the fourth quarter of fiscal 2008 through a charge to income tax expense of &#36;26.9 million and a reclassification of &#36;17.3 million of future income tax liabilities to income taxes payable. There were no penalties assessed as
part of the agreement and there were no other significant income tax adjustments to reported taxable income for the years under audit.
</P>
<P align="justify">
The Company recorded an income tax expense of &#36;34.4 million in fiscal 2008 compared to an income tax recovery of &#36;4.8 million in fiscal 2007. The income tax expense in fiscal 2008 included a charge of &#36;26.9 million related to the
settlement of the CRA audit, as described above. The income tax recovery in fiscal 2007 included the recognition of previously unrecognized tax positions in the amount of &#36;7.6 million relating to a prior taxation year, which became
statute-barred during fiscal 2007. Excluding the impact of the CRA audit settlement in fiscal 2008, the impact of restructuring and other charges in both years and the income tax recovery of &#36;7.6 million related to previously unrecognized tax
positions of a prior taxation year in fiscal 2007, the effective income tax rate for the year ended October 5, 2008 was 4.4%, compared to an effective income tax rate for fiscal 2007 of 2.3%. The increase in the effective income tax rate in fiscal
2008 compared to fiscal 2007 was mainly due to an income tax recovery of &#36;3.1 million relating to the fiscal 2007 operating losses of Kentucky Derby and an increase in profits generated in higher tax jurisdictions.</P>
<P align="right">
GILDAN 2009 REPORT TO SHAREHOLDERS P.14</P>

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    <td width="50%" valign="bottom">
    <p align="right"><font size="2"><br>
MANAGEMENT&#146;S DISCUSSION AND ANALYSIS</font></td>
  </tr>
</table>
<P align=justify><U>Net Earnings</U><BR>Net earnings for fiscal 2008 were $146.4 million, or $1.20 per
share on a diluted basis, up respectively 13.4% and 13.2% compared to net
earnings of $129.1 million, or $1.06 per share on a diluted basis in fiscal
2007. Net earnings for fiscal 2008 included after-tax restructuring and other
charges of $4.9 million or $0.04 per share. Net earnings for fiscal 2007
included restructuring and other charges of $27.3 million after tax, or $0.23
per share. Excluding the impact of these restructuring and other charges,
adjusted net earnings of $151.3 million, or $1.24 per share on a diluted basis
in fiscal 2008, decreased 3.3% and 3.9%, respectively, compared to adjusted net
earnings of $156.4 million, or $1.29 per share in fiscal 2007. The decrease in
adjusted net earnings and adjusted diluted EPS was due to the one-time income
tax charge of $26.9 million, or $0.22 per share related to the settlement of the
CRA audit, higher cotton and energy costs, production inefficiencies in the
Dominican Republic facility, increased SG&amp;A, depreciation and interest
expenses, and the non-recurrence of income tax benefits totaling $7.6 million
relating to a prior taxation year which became statute barred in fiscal 2007.
These factors more than offset the favourable impact of higher activewear unit
sales volumes, increased net selling prices and manufacturing efficiencies
resulting from the consolidation of our textile facilities. </P>
<P align=justify><B><U>SUMMARY OF QUARTERLY RESULTS</U></B><BR></P>
<P align=justify>The table below sets forth certain summarized unaudited
quarterly financial data for the eight most recently completed quarters. This
quarterly information is unaudited and has been prepared on the same basis as
the annual audited Consolidated Financial Statements. The operating results for
any quarter are not necessarily indicative of the results to be expected for any
period. </P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 8pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left><I>(in $ millions,
      except per share amounts) </I><I><SUP>(1)</SUP></I> </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="7%">&nbsp;
    </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="7%">&nbsp;
    </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="7%">&nbsp;
    </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right width="7%">2009
    </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="7%">&nbsp;
    </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="7%">&nbsp;
    </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="7%">&nbsp;
    </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right width="7%">2008
    </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="7%"><B>Q4</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="7%">Q3 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="7%">Q2 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="7%">Q1 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="7%">Q4 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="7%">Q3 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="7%">Q2 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="7%">Q1 </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Net Sales </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="7%" bgColor=#e6efff><B>301.7</B> </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="7%" bgColor=#e6efff>307.8 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="7%" bgColor=#e6efff>244.8 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="7%" bgColor=#e6efff>184.0 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="7%" bgColor=#e6efff>324.7 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="7%" bgColor=#e6efff>380.8 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="7%" bgColor=#e6efff>293.8 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="7%" bgColor=#e6efff>250.5 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>Net earnings <SUP>(2)</SUP> </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="7%"><B>42.4</B> </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="7%">41.5 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="7%">7.1 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="7%">4.3 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="7%">21.8 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="7%">54.5 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="7%">42.1 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="7%">27.9 </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Net earnings per share <SUP>(2)</SUP> </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="7%" bgColor=#e6efff>&nbsp; </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="7%" bgColor=#e6efff>&nbsp; </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="7%" bgColor=#e6efff>&nbsp; </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="7%" bgColor=#e6efff>&nbsp; </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="7%" bgColor=#e6efff>&nbsp; </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="7%" bgColor=#e6efff>&nbsp; </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="7%" bgColor=#e6efff>&nbsp; </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="7%" bgColor=#e6efff>&nbsp; </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;Basic
      EPS<SUP>(3)</SUP> </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="7%"><B>0.35</B> </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="7%">0.34 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="7%">0.06 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="7%">0.04 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="7%">0.18 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="7%">0.45 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="7%">0.35 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="7%">0.23 </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;
      &nbsp;Diluted EPS<SUP>(3)</SUP> </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="7%" bgColor=#e6efff><B>0.35</B> </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="7%" bgColor=#e6efff>0.34 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="7%" bgColor=#e6efff>0.06 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="7%" bgColor=#e6efff>0.04 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="7%" bgColor=#e6efff>0.18 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="7%" bgColor=#e6efff>0.45 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="7%" bgColor=#e6efff>0.35 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="7%" bgColor=#e6efff>0.23 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>Total assets <SUP>(2)</SUP> </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="7%"><B>1,082.4</B> </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="7%">1,126.3 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="7%">1,109.1 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="7%">1,037.4 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="7%">1,095.0 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="7%">1,098.6 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="7%">1,052.7 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="7%">988.9 </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Total long-term financial liabilities </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="7%" bgColor=#e6efff><B>4.4</B> </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="7%" bgColor=#e6efff>92.9 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="7%" bgColor=#e6efff>121.5 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="7%" bgColor=#e6efff>51.2 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="7%" bgColor=#e6efff>53.0 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="7%" bgColor=#e6efff>108.4 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="7%" bgColor=#e6efff>146.3 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="7%" bgColor=#e6efff>130.8 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>Weighted average number of shares outstanding (in &#145;000s)
</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="7%"></TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="7%"></TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="7%"></TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="7%"></TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="7%"></TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="7%"></TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="7%"></TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="7%"></TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;
      &nbsp;Basic </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="7%" bgColor=#e6efff><B>120,959</B> </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="7%" bgColor=#e6efff>120,911 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="7%" bgColor=#e6efff>120,799 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="7%" bgColor=#e6efff>120,573 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="7%" bgColor=#e6efff>120,531 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="7%" bgColor=#e6efff>120,492 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="7%" bgColor=#e6efff>120,464 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="7%" bgColor=#e6efff>120,428 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left>&nbsp; &nbsp;
      &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;Diluted </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right
      width="7%"><B>121,668</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right
      width="7%">121,483 </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right
      width="7%">121,178 </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right
      width="7%">121,408 </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right
      width="7%">121,558 </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right
      width="7%">121,622 </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right
      width="7%">121,649 </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right
      width="7%">121,656 </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR></TABLE><BR>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0 BCLLIST>

  <TR>
    <TD vAlign=top width="2%"><sup><FONT style="font-size: 9pt"><I>(1)</I> </FONT>
    </sup></TD>
    <TD><FONT style="font-size: 9pt">
      <P align=justify><I>Quarterly results reflect the acquisition of Prewett
      on October 15, 2007 (Q1 2008) from the date of
    acquisition.</I></P></FONT></TD></TR>
  <TR>
    <TD vAlign=top width="2%"><sup><FONT style="font-size: 9pt"><I>(2)</I> </FONT>
    </sup></TD>
    <TD><FONT style="font-size: 9pt">
      <P align=justify><I>Net earnings, Net earnings per share and Total assets
      reflect the impact of the change in accounting policy as described in Note
      1(b) to the audited Consolidated Financial
Statements.</I></P></FONT></TD></TR>
  <TR>
    <TD vAlign=top width="2%"><sup><FONT style="font-size: 9pt"><I>(3)</I> </FONT>
    </sup></TD>
    <TD><FONT style="font-size: 9pt">
      <P align=justify><I>Quarterly EPS may not add to year-to-date EPS due to
      rounding.</I></P></FONT></TD></TR></TABLE>
<P align=justify><U>Seasonality and Other Factors Affecting the Variability of
Results</U>
<br>
Our results of operations for interim periods and for full
fiscal years are impacted by the variability of certain factors, including, but
not limited to changes in end-use demand and customer demand, including our
customers&#146; decision to increase or decrease their inventory levels, changes in
our sales mix, and fluctuations in selling prices. While our products are sold
on a year-round basis, our business experiences seasonal changes in demand which
result in quarterly fluctuations in operating results. Typically, demand for our
T-shirts is highest in the third quarter of each fiscal year, when distributors
purchase inventory for the peak summer selling season, and lowest in the first
quarter of each fiscal year. Demand for fleece is typically highest, in advance
of the Fall and Winter seasons, in the third and fourth quarters of each fiscal
year. For our sock products, demand is typically highest in the first and fourth
quarters of each fiscal year, stimulated largely by the cooler weather and the
need to support requirements for the back-to-school period and the holiday
season. Historically, we have operated our mature facilities at full capacity
throughout the year in order to be cost efficient. Consequently, with the
seasonal sales trends of our business, we experience fluctuations in our
inventory levels throughout the year, in particular a build-up of
inventory levels in the first half of the year. In the last three quarters of fiscal 2009, we took some production downtime in order to align our inventory levels with sales demand, in the context of the weak economic conditions during the fiscal
year.</P>
<P align=right>GILDAN 2009 REPORT TO SHAREHOLDERS P.15</P>
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    <td width="50%" valign="bottom">
    <img border="0" src="mdaht1.jpg" width="100" height="33"></td>
    <td width="50%" valign="bottom">
    <p align="right"><font size="2"><br>
MANAGEMENT&#146;S DISCUSSION AND ANALYSIS</font></td>
  </tr>
</table>
<P align="justify">
Our results are also impacted by the fluctuations in the price of raw materials and other input costs. Cotton and polyester fibres are the primary raw materials used in the manufacture of our products. We also use chemicals, dyestuffs and trims
which we purchase from a variety of suppliers, at prices that are correlated with the price of cotton and polyester fibres. Cotton prices, which directly affect the cost of the cotton fibres we purchase, are affected by weather, consumer demand,
speculation on the commodities market, the relative valuations and fluctuations of the currencies of producer versus consumer countries and other factors that are generally unpredictable. While we enter into contracts in advance of delivery to
establish firm prices for cotton and cotton yarn, our realized cotton costs can fluctuate significantly between interim and annual reporting periods. Our results of operations are also affected by fluctuations in crude oil and petroleum prices,
which can also influence transportation costs and the cost of related items used in our business, such as polyester fibres, chemicals, dyestuffs and trims. </P>
<P align="justify">
Management decisions to consolidate or reorganize operations, including closing facilities, may also result in significant restructuring and other charges in an interim or annual period. In addition, the effect of asset writedowns, including
provisions for bad debts and slow moving inventories, can affect the variability of our results.</P>
<P align="justify">
As noted under the section entitled &#147;Our Business&#148; on page 2, the severe downturn in the overall economic environment in fiscal 2009 impacted our business and resulted in lower net sales reflecting lower sales volumes and net selling
prices compared with the prior year. In the first half of fiscal 2009 our results, including our gross margins, were significantly impacted by higher cotton and energy costs compared to the first half of fiscal 2008, although our costs improved
sequentially by quarter in the second half of fiscal 2009. We had entered into contracts to fix our cotton requirements for the first half of fiscal 2009 at significantly higher price levels than the same period last year. Although cotton prices
started to decline in the latter part of 2008, we did not fully benefit from the decline in commodity costs as we had previously committed ourselves to cotton purchases at higher cotton prices. In fiscal 2009, inventories consumed in cost of sales
in the first half of the fiscal year reflected energy purchases at close to the peak of the commodity cycle in fiscal 2008. Results for the fourth quarter of fiscal 2009 included the negative impact of a special discount granted to distributors as
discussed in the &#147;Net Sales&#148; section on page 9. </P>
<P align="justify">
During the fourth quarter of fiscal 2008 we recorded a one-time income tax charge of &#36;26.9 million, or &#36;0.22 per share, related to the settlement of the CRA audit.</P>
<P align="justify">
<U>Fourth Quarter Results<br>
</U>Net sales in the fourth quarter of fiscal 2009 amounted to &#36;301.7 million, down 7.1% from &#36;324.7 million in the fourth quarter of last year. Sales of activewear and underwear were &#36;240.8 million, down 4.8% from &#36;253.0 million last
year, and sales of socks were &#36;60.9 million, down 15.1% from &#36;71.7 million last year.</P>
<P align="justify">
The decrease in sales of activewear and underwear was due to lower unit selling prices and a 1.3% reduction in unit sales volumes, as a result of weaker economic conditions, as well as the impact of a special distributor devaluation discount, as
described more fully below, and currency changes, partially offset by more favourable activewear product-mix.</P>
<P align="justify">
Early in the first quarter of fiscal 2010, the Company reduced gross selling prices for its activewear products in the U.S. wholesale distributor channel, and applied the benefit of the selling price reduction to inventories held by distributors
through a special inventory devaluation discount of &#36;8.9 million. Net sales in the fourth quarter of fiscal 2009 reflected both the significant negative impact of short-term promotions in the fourth quarter as well as the impact of the special
discount, which is accounted for as an adjustment to sales in the fourth quarter of fiscal 2009. The Company believes that the approach it has taken to pricing is enhancing the ability of its wholesale distributors to plan their business and helping
to stimulate screenprinter demand for Gildan products.</P>
<P align="right">
GILDAN 2009 REPORT TO SHAREHOLDERS P.16</P>

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    <td width="50%" valign="bottom">
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    <td width="50%" valign="bottom">
    <p align="right"><font size="2"><br>
MANAGEMENT&#146;S DISCUSSION AND ANALYSIS</font></td>
  </tr>
</table>
<P align="justify">
The reduction in unit sales volumes of activewear and underwear in the fourth quarter of fiscal 2009 was due to a 12.3% decline in overall industry unit shipments from U.S. distributors to U.S. screenprinters, largely offset by increased market
share in all product categories, as well as increased shipments to international and other
screenprint markets.<BR>
</P>
<P align="justify">
The reduction in sales of socks in the fourth quarter compared to a year ago was due to the discontinuance of unprofitable sock programs and inventory fluctuations at the retailer level.  The impact of these factors was largely offset by
double-digit increases in the sell-through to consumers of continuing programs with major mass retailer customers. New mass-retailer private label sock brands which have been introduced during fiscal 2009 performed strongly in the fourth quarter and
gained market share.</P>
<P align="justify">
Gross margins in the fourth quarter were 25.7% compared to 26.8% in the fourth quarter of fiscal 2008. The decrease in gross margins compared with last year was due to significantly increased promotional discounts for activewear in the U.S.
distributor channel as well as the special discount discussed above. Gross margins in the fourth quarter of fiscal 2009 were also negatively impacted by production downtime, which reduced margins by approximately 1.6%. These negative factors more
than offset the benefits of increased manufacturing efficiencies, including lower cotton and energy costs, and more favourable activewear product-mix.</P>
<P align="justify">
SG&amp;A expenses in the fourth quarter were &#36;34.1 million, or 11.3% of net sales, compared to &#36;36.7 million, or 11.3% of net sales in the fourth quarter of fiscal 2008. The reduction in SG&amp;A expenses was primarily due to efficiencies
and savings achieved in the management of distribution expenses, as well as the impact of the lower-valued Canadian dollar on corporate administrative expenses, partially offset by higher depreciation expenses and an increase in provisions for
doubtful accounts receivable exposures.</P>
<P align="justify">
We recorded an income tax recovery of &#36;0.7 million in the fourth quarter of fiscal 2009, compared to an income tax expense of &#36;25.3 million in the fourth quarter of fiscal 2008. The current year recovery included recoveries of &#36;0.8
million related to restructuring and other charges and &#36;0.5 million related to the recognition of previously unrecorded tax benefits. Excluding the impact of restructuring and other charges and the impact of previously unrecorded tax benefits,
income tax expense for the fourth quarter of fiscal 2009 was &#36;0.6 million. Income tax expense for the fourth quarter of fiscal 2008 included a one-time income tax charge of &#36;26.9 million, or &#36;0.22 per share, related to the settlement of
the CRA audit described on page 14, under the heading &#147;Income Taxes&#148;.</P>
<P align="justify">
Gildan reported net earnings of &#36;42.4 million and diluted EPS of &#36;0.35 for its fourth fiscal quarter ended October 4, 2009 compared to net earnings of &#36;21.8 million, or &#36;0.18 per share on a diluted basis in the fourth quarter of
fiscal 2008. Before reflecting the impact of after tax restructuring and other charges in both years, adjusted net earnings in the fourth quarter of fiscal 2009 were &#36;42.4 million, or &#36;0.35 per share compared to adjusted net earnings of &#36;22.8
million, or &#36;0.19 per share in the fourth quarter of fiscal 2008. The restructuring and other charges in both years related to the restructuring and ongoing carrying costs pursuant to the closure of Canadian and U.S. manufacturing facilities. The increase in adjusted net earnings in the fourth quarter of fiscal 2009 was mainly attributable to the non-recurrence of a one-time income tax charge of &#36;26.9 million, or &#36;0.22 per share related to the settlement of the CRA
audit in the fourth quarter of fiscal 2008, increased manufacturing efficiencies, favourable product-mix and lower SG&amp;A expenses. These positive factors were essentially offset by lower net selling prices for activewear, lower unit sales, the
special distributor inventory devaluation discount granted to distributors in the fourth quarter of fiscal 2009, and the impact of planned production downtime taken in the fourth quarter of fiscal 2009.</P>
<P align="justify">
<B><U>FINANCIAL CONDITION</U></B><BR>
</P>
<P align="justify">
Accounts receivable of &#36;166.8 million as at October 4, 2009 decreased by &#36;49.0 million, compared to accounts receivable of &#36;215.8 million at the end of fiscal 2008.  The decrease was mainly due to the impact of lower sales in the fourth
quarter of fiscal 2009 compared to last year, combined with a decrease in days&#146; sales outstanding (DSO). Typically, our DSO increase during the second half of the fiscal year and
reach their highest level in the fourth quarter as a result of seasonal programs for fleece and long-sleeve T-shirts shipped in the third and fourth quarters with extended payment terms. The lower DSO at October 4, 2009 compared to the end of fiscal
2008 was due to a lower proportion of sales with extended payment terms in the second half of fiscal 2009 compared to last year, which was in line with our objective to limit our exposure to credit risk in the context of the current economic
environment.</P>
<P align="right">
GILDAN 2009 REPORT TO SHAREHOLDERS P.17</P>

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MANAGEMENT&#146;S DISCUSSION AND ANALYSIS</font></td>
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<P align="justify">
Inventories of &#36;301.9 million were down &#36;14.3 million, or 4.5% from &#36;316.2 million at the end of fiscal 2008. The decrease in inventories was primarily attributable to a decrease in raw material and work-in-process inventories, lower
sock inventory volume levels, a reduction in average unit costs for activewear and socks, largely offset by an increase in activewear inventory volumes. The decrease in raw materials and work-in-process inventory levels at the end of fiscal 2009
when compared to last year was mainly due to supply chain efficiencies, and lower cotton costs. The decrease in sock inventory volumes was due to the impact of supply chain efficiencies implemented during the year, while the lower average unit costs
for socks resulted from lower cotton and energy costs and a higher proportion of socks being produced at our Honduras sock facilities, following the transition of our sock finishing operations in the U.S. to our Honduran facilities at the end of the
third quarter. Lower average unit cost for activewear were attributable to lower cotton and energy costs, and improved manufacturing efficiencies. The year-over-year increase in activewear inventory units reflects lower sales and also lower than
optimal levels of inventory on hand at the end of fiscal 2008, when inventory levels were affected by production constraints. The Company believes its current levels of finished goods inventories are appropriate, in the context of current market
conditions, and is not currently planning production downtime in the first quarter of fiscal 2010, other than the normal holiday shutdown over the Christmas period.</P>
<P align="justify">
Property, plant and equipment, which are net of accumulated depreciation, including asset impairment losses, amounted to &#36;414.5 million at October 4, 2009, compared to &#36;436.5 million at October 5, 2008. The decrease of &#36;22.0 million is
mainly due to depreciation expense exceeding capital expenditures. Depreciation of property, plant and equipment was &#36;62.0 million, while capital additions were &#36;43.8 million, primarily for the biomass combustion energy project in the
Dominican Republic, capital expenditures for the transition of the finishing process of our sock manufacturing operations in Honduras, and other capacity expansion projects. The remaining decrease is due to a reclassification of property, plant and
equipment to assets held for sale and the write-off of certain assets related to closed facilities.</P>
<P align="justify">
Intangible assets amounted to &#36;56.8 million as at October 4, 2009 compared to &#36;60.0 million at the end of fiscal 2008. The decrease is related to the amortization of intangible assets for fiscal 2009. Goodwill of &#36;6.7 million at the end
of fiscal 2009 related to the acquisition of Prewett in the first quarter of fiscal 2008. Management performed its annual review for impairment of goodwill and concluded that there has been no impairment in the value of goodwill as at October 4,
2009. </P>
<P align="justify">
Assets held for sale of &#36;6.5 million as at October 4, 2009 (October 5, 2008 - &#36;10.5 million) include property, plant and equipment relating to closed facilities. The decrease in assets held for sale is due mainly to the sale of the
Company&#146;s previous Canadian corporate head office location.</P>
<P align="justify">
Total assets were &#36;1,082.4 million as at October 4, 2009, compared to &#36;1,095.0 million at the end of the previous year. Working capital was &#36;441.0 million as at October 4, 2009 compared to &#36;355.2 million as at October 5, 2008. The
current ratio at the end of fiscal 2009 was 4.2 compared to 2.8 at the end of fiscal 2008. </P>
<P align="justify">
Accounts payable and accrued liabilities amounted to &#36;124.4 million at October 4, 2009, compared to &#36;149.3 million at the end of fiscal 2008. The decrease of &#36;24.9 million was primarily due to lower raw materials when compared to last
year, as noted above.</P>
<P align="justify">
Income taxes payable were &#36;11.8 million at October 4, 2009 compared to &#36;46.6 million at October 5, 2008. The decrease in income taxes payable was mainly due to payments of &#36;24.8 million during fiscal 2009 related to the settlement of the
CRA audit as announced in December 2008 and as described under the heading &#147;Income Taxes&#148; on page 14. The remaining decrease is due primarily to a reclassification between
current income taxes payable and future income taxes and the foreign exchange impact of the stronger U.S. dollar. </P>
<P align="right">
GILDAN 2009 REPORT TO SHAREHOLDERS P.18</P>

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MANAGEMENT&#146;S DISCUSSION AND ANALYSIS</font></td>
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<P align="justify">
<B><U>CASH FLOWS</U></B><BR>
</P>
<P align="justify">
Cash inflows from operating activities in fiscal 2009 were &#36;169.2 million compared to cash inflows of &#36;238.9 million for the previous year. The decrease in cash flow was primarily due to lower cash operating earnings, a decrease in accounts
payable and accrued liabilities compared to an increase in fiscal 2008, and income tax payments in fiscal 2009 related to prior fiscal years, partially offset by favorable changes in accounts receivable and inventories compared to last year.</P>
<P align="justify">
Cash flows used in investing activities were &#36;34.2 million in fiscal 2009, compared to &#36;227.3 million in fiscal 2008. The decrease of &#36;193.1 million in fiscal 2009 was primarily attributable to the acquisition of Prewett in fiscal 2008
for a purchase price of &#36;126.8 million and a &#36;52.1 million decline in capital spending over last year, as a result of the deferral of capacity expansion plans in the current economic environment, and proceeds from the disposal of assets held
for sale. Net capital expenditures amounted to &#36;44.9 million for fiscal 2009 compared to our previous forecast of &#36;60 to &#36;70 million.  The lower than projected capital expenditures was due to timing delays in finalizing the purchase of
our new office building in Barbados. We now expect that the purchase will be completed in the first quarter of fiscal 2010. </P>
<P align="justify">
We generated free cash flow of &#36;132.2 million in fiscal 2009 compared to &#36;148.4 million for the same period in fiscal 2008. The decrease of &#36;16.2 million was attributable to lower cash flows from operating activities partially offset by
lower capital spending compared to last year. Free cash flow is comprised of cash flows from operating activities, including net changes in non-cash working capital balances, less cash used in investing activities, excluding business acquisitions.
See page 40. </P>
<P align="justify">
Cash flows used in financing activities in fiscal 2009 amounted to &#36;47.7 million compared to cash outflows of &#36;8.3 million in fiscal 2008. In fiscal 2009 cash flows used in financing activities consisted primarily of repayments of &#36;45.0
million on our revolving long-term credit facility. </P>
<P align="justify">
<B><U>LIQUIDITY AND CAPITAL RESOURCES</U></B><BR>
</P>
<P align="justify">
In recent years, we have funded our operations and capital requirements with cash generated from operations. A revolving credit facility has been periodically utilized to finance seasonal peak working capital requirements and business acquisitions.
Our primary uses of funds on an ongoing basis are for capital expenditures for new manufacturing facilities, incremental expansion, working capital requirements, and business acquisitions. In fiscal 2009, we also used funds for the payment of income
taxes pursuant to the Company&#146;s settlement of its audit with the CRA as described under the heading &#147;Income Taxes&#148; on page
12. </P>
<P align="justify">
We have a committed revolving long-term credit facility of up to &#36;400 million, on an unsecured basis, which matures in June 2013. Total indebtedness as at October 4, 2009 amounted to &#36;4.4 million compared to &#36;53.0 million at the end of
fiscal 2008. Total indebtedness is comprised of bank indebtedness and long-term debt (including the current portion) as described on page 40.  At October 4, 2009, there were no amounts drawn on our revolving long-term credit facility. An amount of
&#36;0.2 million has been committed against this facility to cover various letters of credits.</P>
<P align="justify">
At the beginning of fiscal 2009, we had net indebtedness<SUP> </SUP>of &#36;40.6 million, including &#36;45.0 million drawn on our revolving long-term credit facility, and &#36;12.4 of cash and cash equivalents.  Net indebtedness is calculated as
total indebtedness net of cash and cash equivalents as described on page 40. During fiscal 2009, our operating cash flows allowed us to fund net capital expenditures of &#36;44.9 million, repay all amounts owing under our revolving long-term credit
facility, and accumulate a substantial cash balance at the end of fiscal 2009 of &#36;99.7 million. At October 4, 2009 we continue to have ample liquidity and significant financing capacity and flexibility under our revolving long-term credit
facility.</P>
<P align="right">
GILDAN 2009 REPORT TO SHAREHOLDERS P.19</P>

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MANAGEMENT&#146;S DISCUSSION AND ANALYSIS</font></td>
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<P align="justify">
Gildan is projecting capital expenditures of approximately &#36;130 million for fiscal 2010, compared to approximately &#36;45 million in fiscal 2009. The projected capital expenditures for fiscal 2010 include the acquisition of the new distribution
centre and office building in Charleston, South Carolina for approximately &#36;20 million and planned expenditures for the completion of the Rio Nance 4 sock facility, further textile expansion and energy cost reduction projects, and the purchase
of our new office building in Barbados which was not finalized during the fourth quarter of fiscal 2009. </P>
<P align="justify">
We believe that our fiscal 2010 cash flow from operating activities, together with our accumulated cash balances from fiscal 2009 and our credit facility, will provide us with sufficient liquidity and capital resources in fiscal 2010 to fund our
anticipated working capital and capital expenditure requirements, as well as any acquisition opportunities that the Company may decide to pursue.</P>
<P align="justify">
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. We do not currently pay a
dividend. However, the Company&#146;s Board of Directors periodically evaluates the merits of introducing a dividend. </P>
<P align=justify><B>Off-Balance Sheet Arrangements and Contractual Obligations
<br>
</B>We have no commitments that are not reflected in our balance
sheets except for operating leases and other purchase obligations, which are
included in the table of contractual obligations below. As disclosed in Note 13
to our audited Consolidated Financial Statements, we have granted corporate
guarantees, irrevocable standby letters of credit and surety bonds to third
parties to indemnify them in the event the Company and some of its subsidiaries
do not perform its contractual obligations. As at October 4, 2009, the maximum
potential liability under these guarantees was $10.0 million, of which $4.7
million was for surety bonds and $5.3 million was for corporate guarantees and
standby letters of credit. </P>
<P align=justify>In the normal course of business, we enter into contractual
obligations that will require us to disburse cash over future periods. The
following table sets forth our contractual obligations by period, excluding
interest on long-term debt, for the following items as at October 4, 2009: </P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 8pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD align=left><FONT size=2>&nbsp; </FONT></TD>
    <TD align=left width="1%"><FONT size=2>&nbsp;</FONT></TD>
    <TD align=left width="7%"><FONT size=2>&nbsp; </FONT></TD>
    <TD align=left width="2%"><FONT size=2>&nbsp;</FONT></TD>
    <TD align=left width="1%"><FONT size=2>&nbsp;</FONT></TD>
    <TD align=right width="7%"><FONT size=2><B>Less than 1</B> </FONT></TD>
    <TD align=left width="2%"><FONT size=2>&nbsp;</FONT></TD>
    <TD align=left width="1%"><FONT size=2>&nbsp;</FONT></TD>
    <TD align=right width="7%"><FONT size=2><B>1 to 3</B> </FONT></TD>
    <TD align=left width="2%"><FONT size=2>&nbsp;</FONT></TD>
    <TD align=left width="1%"><FONT size=2>&nbsp;</FONT></TD>
    <TD align=right width="7%"><FONT size=2><B>4 to 5</B> </FONT></TD>
    <TD align=left width="2%"><FONT size=2>&nbsp;</FONT></TD>
    <TD align=left width="1%"><FONT size=2>&nbsp;</FONT></TD>
    <TD align=right width="7%"><FONT size=2><B>More than 5</B> </FONT></TD>
    <TD align=left width="2%"><FONT size=2>&nbsp;</FONT></TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left><FONT
      size=2><I>(in $ millions)</I> </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"><FONT
      size=2>&nbsp;</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right width="7%"><FONT
      size=2><B>Total</B> </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="2%"><FONT
      size=2>&nbsp;</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"><FONT
      size=2>&nbsp;</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right width="7%"><FONT
      size=2><B>fiscal year</B> </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="2%"><FONT
      size=2>&nbsp;</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"><FONT
      size=2>&nbsp;</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right width="7%"><FONT
      size=2><B>fiscal years</B> </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="2%"><FONT
      size=2>&nbsp;</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"><FONT
      size=2>&nbsp;</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right width="7%"><FONT
      size=2><B>fiscal years</B> </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="2%"><FONT
      size=2>&nbsp;</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"><FONT
      size=2>&nbsp;</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right width="7%"><FONT
      size=2><B>fiscal years</B> </FONT></TD>
    <TD align=left width="2%"><FONT size=2>&nbsp;</FONT></TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff><FONT size=2>Long-term debt </FONT></TD>
    <TD align=left width="1%" bgColor=#e6efff><FONT size=2>&nbsp;</FONT></TD>
    <TD align=right width="7%" bgColor=#e6efff><FONT size=2><B>4.4</B>
    </FONT></TD>
    <TD align=left width="2%" bgColor=#e6efff><FONT size=2>&nbsp;</FONT></TD>
    <TD align=left width="1%" bgColor=#e6efff><FONT size=2>&nbsp;</FONT></TD>
    <TD align=right width="7%" bgColor=#e6efff><FONT size=2>2.8 </FONT></TD>
    <TD align=left width="2%" bgColor=#e6efff><FONT size=2>&nbsp;</FONT></TD>
    <TD align=left width="1%" bgColor=#e6efff><FONT size=2>&nbsp;</FONT></TD>
    <TD align=right width="7%" bgColor=#e6efff><FONT size=2>1.6 </FONT></TD>
    <TD align=left width="2%" bgColor=#e6efff><FONT size=2>&nbsp;</FONT></TD>
    <TD align=left width="1%" bgColor=#e6efff><FONT size=2>&nbsp;</FONT></TD>
    <TD align=right width="7%" bgColor=#e6efff><FONT size=2>- </FONT></TD>
    <TD align=left width="2%" bgColor=#e6efff><FONT size=2>&nbsp;</FONT></TD>
    <TD align=left width="1%" bgColor=#e6efff><FONT size=2>&nbsp;</FONT></TD>
    <TD align=right width="7%" bgColor=#e6efff><FONT size=2>- </FONT></TD>
    <TD align=left width="2%" bgColor=#e6efff><FONT size=2>&nbsp;</FONT></TD></TR>
  <TR vAlign=top>
    <TD align=left><FONT size=2>Operating leases </FONT></TD>
    <TD align=left width="1%"><FONT size=2>&nbsp;</FONT></TD>
    <TD align=right width="7%"><FONT size=2><B>39.9</B> </FONT></TD>
    <TD align=left width="2%"><FONT size=2>&nbsp;</FONT></TD>
    <TD align=left width="1%"><FONT size=2>&nbsp;</FONT></TD>
    <TD align=right width="7%"><FONT size=2>8.0 </FONT></TD>
    <TD align=left width="2%"><FONT size=2>&nbsp;</FONT></TD>
    <TD align=left width="1%"><FONT size=2>&nbsp;</FONT></TD>
    <TD align=right width="7%"><FONT size=2>16.5 </FONT></TD>
    <TD align=left width="2%"><FONT size=2>&nbsp;</FONT></TD>
    <TD align=left width="1%"><FONT size=2>&nbsp;</FONT></TD>
    <TD align=right width="7%"><FONT size=2>7.8 </FONT></TD>
    <TD align=left width="2%"><FONT size=2>&nbsp;</FONT></TD>
    <TD align=left width="1%"><FONT size=2>&nbsp;</FONT></TD>
    <TD align=right width="7%"><FONT size=2>7.6 </FONT></TD>
    <TD align=left width="2%"><FONT size=2>&nbsp;</FONT></TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      bgColor=#e6efff><FONT size=2>Purchase obligations </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    bgColor=#e6efff><FONT size=2>&nbsp;</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="7%"
    bgColor=#e6efff><FONT size=2><B>133.1</B> </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    bgColor=#e6efff><FONT size=2>&nbsp;</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    bgColor=#e6efff><FONT size=2>&nbsp;</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="7%"
    bgColor=#e6efff><FONT size=2>133.1 </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    bgColor=#e6efff><FONT size=2>&nbsp;</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    bgColor=#e6efff><FONT size=2>&nbsp;</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="7%"
    bgColor=#e6efff><FONT size=2>- </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    bgColor=#e6efff><FONT size=2>&nbsp;</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    bgColor=#e6efff><FONT size=2>&nbsp;</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="7%"
    bgColor=#e6efff><FONT size=2>- </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    bgColor=#e6efff><FONT size=2>&nbsp;</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    bgColor=#e6efff><FONT size=2>&nbsp;</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="7%"
    bgColor=#e6efff><FONT size=2>- </FONT></TD>
    <TD align=left width="2%" bgColor=#e6efff><FONT size=2>&nbsp;</FONT></TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left><FONT
      size=2><B>Total Contractual Obligations</B> </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"><FONT
      size=2>&nbsp;</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right width="7%"><FONT
      size=2><B>177.4</B> </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="2%"><FONT
      size=2>&nbsp;</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"><FONT
      size=2>&nbsp;</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right width="7%"><FONT
      size=2>143.9 </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="2%"><FONT
      size=2>&nbsp;</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"><FONT
      size=2>&nbsp;</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right width="7%"><FONT
      size=2>18.1 </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="2%"><FONT
      size=2>&nbsp;</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"><FONT
      size=2>&nbsp;</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right width="7%"><FONT
      size=2>7.8 </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="2%"><FONT
      size=2>&nbsp;</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"><FONT
      size=2>&nbsp;</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right width="7%"><FONT
      size=2>7.6 </FONT></TD>
    <TD align=left width="2%"><FONT size=2>&nbsp;</FONT></TD></TR></TABLE>
<P align=justify>We expect that cash flows from our operating earnings and our
unutilized bank facilities will be sufficient to meet our obligations for the
foreseeable future. </P>
<P align=justify><B>Outstanding Share Data</B><BR>Our common shares are listed on the New York Stock Exchange and
the Toronto Stock Exchange (GIL). As at November 30, 2009 there were 120,970,339
common shares issued and outstanding along with 1,503,514 stock options and
951,403 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 predetermined option price. Each Treasury RSU entitles the
holder to receive one common share from treasury at the end of the vesting
period, without any monetary consideration being paid to the Company. However,
the vesting of 50% of the Treasury RSU grant is dependent upon the financial
performance of the Company relative to a benchmark group of Canadian
publicly-listed companies. </P>
<P align=justify>On May 2, 2007, our Board of Directors approved a two-for-one
stock split effected in the form of a stock dividend. The split was applicable
to all shareholders of record on May 18, 2007. The Company&#146;s shares commenced
trading on a post-split basis on May 16, 2007 on the Toronto Stock Exchange
(TSX), and on May 28, 2007 on the New York Stock Exchange (NYSE), in accordance
with the respective requirements of these exchanges. </P>
<P align=justify>All share and per share data in this MD&amp;A are stated after
the above-noted stock split. </P>
<P align="right">
GILDAN 2009 REPORT TO SHAREHOLDERS P.20</P>

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    <td width="50%" valign="bottom">
    <img border="0" src="mdaht1.jpg" width="100" height="33"></td>
    <td width="50%" valign="bottom">
    <p align="right"><font size="2"><br>
MANAGEMENT&#146;S DISCUSSION AND ANALYSIS</font></td>
  </tr>
</table>
<P align=justify><B><U>LEGAL PROCEEDINGS<BR></U></B><BR><B>Securities Class
Actions</B><BR>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. 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&#146;s common
shares between August 2, 2007 and April 29, 2008 and allege, among other things,
that the defendants misrepresented the Company&#146;s financial condition and its
financial prospects in its financial guidance concerning the 2008 fiscal year,
which was subsequently revised on April 29, 2008. </P>
<P align="justify">
The U.S. lawsuits have been consolidated, and a consolidated amended complaint was filed alleging claims under the U.S. securities laws. On July 1, 2009, the District Court granted the motion by Gildan and other defendants to dismiss the U.S. action
in its entirety, holding that the consolidated amended complaint failed to adequately allege the essential elements of a claim under the applicable provisions of the U.S. securities laws, including the existence of a material misstatement and
fraudulent intent. On July 17, 2009, plaintiffs filed a motion seeking reconsideration of this decision only insofar as it declined to grant plaintiffs an opportunity to file a second amended complaint. On July 31, 2009, the Company and the other
defendants filed a response to plaintiffs&#146; motion seeking reconsideration. On December 4, 2009, the plaintiffs&#146; motion seeking reconsideration was denied. </P>
<P align="justify">
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&#146;s Securities Act. A motion, along with affidavit
evidence, for leave to pursue such statutory liability claims and class certification have been filed by the plaintiff. No date has been set yet for the hearing of that motion. </P>
<P align="justify">
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 consolidated financial statements. </P>
<P align="justify">
<B><U>OUTLOOK</U></B><BR>
</P>
<P align="justify">
A discussion of management&#146;s expectations as to our outlook for fiscal 2010 is contained in our fourth quarter earnings results press release dated December 10, 2009 under the section entitled &#147;Fiscal 2010 Outlook and Business Plans&#148;.
The press release is available on the SEDAR website at www.sedar.com, on the EDGAR website at <U>www.sec.gov</U> and on our website at <U>www.gildan.com</U>. </P>
<P align="justify">
<B><U>FINANCIAL RISK MANAGEMENT</U></B><BR>
</P>
<P align="justify">
This section of the MD&amp;A provides disclosures relating to the nature and extent of the Company&#146;s exposure to risks arising from financial instruments, including credit risk, liquidity risk, foreign currency risk and interest rate risk, and
how the Company manages those risks. The disclosures under this section, in conjunction with the information in Note 19 to the audited Consolidated Financial Statements (&#147;Financial Instruments&#148;), are designed to meet the requirements of
the Canadian Institute of Chartered Accountants Handbook Section 3862, <I>Financial Instruments-Disclosures</I>, and are therefore incorporated into, and are an integral part of, the audited consolidated financial statements.</P>
<P align="justify">
The Company may periodically use derivative financial instruments to manage risks related to fluctuations in exchange rates, commodity prices and interest rates. Derivative financial instruments are not used for trading purposes. </P>
<P align=right>GILDAN 2009 REPORT TO SHAREHOLDERS P.21</P>
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    <p align="right"><font size="2"><br>
MANAGEMENT&#146;S DISCUSSION AND ANALYSIS</font></td>
  </tr>
</table>
<P align="justify">
<B>Credit risk</B><BR>
Credit risk is the risk of an unexpected loss if a customer or counterparty to a financial instrument fails to meet its contractual obligations, and arises primarily from the Company&#146;s trade receivables. The Company may also have credit risk
relating to cash and cash equivalents, forward foreign exchange contracts and interest rate swaps, which it manages by dealing only with highly-rated North American and European financial institutions. Our trade receivables and credit exposure
fluctuate throughout the year based on the seasonality of our sales and other factors. The Company&#146;s average trade receivables and credit exposure during an interim reporting period may be significantly higher than the balance at the end of
that reporting period.
</P>
<P align="justify">
The Company&#146;s credit risk for trade receivables is concentrated, as the majority of its sales are to a relatively small group of wholesale distributors and mass-market retailers. As at October 4, 2009, the Company&#146;s ten largest trade
debtors accounted for 64% of trade accounts receivable, of which one wholesale customer accounted for 10% and one retailer accounted
for 10%. Of the Company&#146;s top ten trade debtors, eight are wholesale
distributors, and all are located in the United States. The remaining trade
receivable balances are dispersed among a larger number of debtors across many
geographic areas including the United States, Canada, Europe, Mexico and
Australia.</P>
<P align=justify>Most sales are invoiced with payment terms of between 30 to 60
days. In accordance with industry practice, sales to wholesale distributors of
certain seasonal products, primarily in the second half of the fiscal year, are
invoiced with extended payment terms, generally not exceeding six months. From
time-to-time, the Company may initiate other special incentive programs with
extended payment terms. </P>
<P align=justify>The Company&#146;s customers have generally been transacting with
the Company or its subsidiaries for over five years. Many distributors are
highly-leveraged with significant reliance on trade credit terms provided by a
few major vendors, including the Company, and third-party debt financing,
including bank debt secured with accounts receivable and inventory pledged as
collateral. The financial leverage of certain of our wholesale distributor
customers may limit or prevent their ability to refinance existing indebtedness
or to obtain additional financing, and could affect their ability to comply with
restrictive debt covenants and meet other obligations. The profile and credit
quality of the Company&#146;s retail customers varies significantly. Adverse changes
in a customer&#146;s financial position could cause us to limit or discontinue
business with that customer, require us to assume more credit risk relating to
that customer&#146;s future purchases or result in uncollectible accounts receivable
from that customer. Future credit losses relating to any one of our top ten
customers could be material and could result in a material charge to earnings.
The likelihood of such losses occurring has increased given the current economic
downturn.</P>
<P align=justify>The Company&#146;s extension of credit to customers involves
considerable judgment and is based on an evaluation of each customer&#146;s financial
condition and payment history. The Company has established various internal
controls designed to mitigate credit risk, including a dedicated credit function
which recommends customer credit limits and payment terms that are reviewed and
approved on a quarterly basis by senior management at the Company&#146;s
international sales office in Barbados. Where available, the Company&#146;s credit
department periodically reviews external ratings and customer financial
statements, and in some cases obtains bank and other references. New customers
are subject to a specific vetting and pre-approval process. From time to time,
the Company will temporarily transact with customers on a prepayment basis where
circumstances warrant. While the Company&#146;s credit controls and processes have
been effective in mitigating credit risk, these controls cannot eliminate credit
risk and there can be no assurance that these controls will continue to be
effective, or that the Company&#146;s low credit loss experience will continue.</P>
<P align="right">
GILDAN 2009 REPORT TO SHAREHOLDERS P.22</P>

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  <tr>
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    <p align="right"><font size="2"><br>
MANAGEMENT&#146;S DISCUSSION AND ANALYSIS</font></td>
  </tr>
</table>
<P align=justify>The Company&#146;s exposure to credit risk for trade receivables by
geographic area and type of customer was as follows as at October 4, 2009 and
October 5, 2008: </P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left><I>(in $
      millions)</I> </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right
      width="12%"><B>October 4, 2009</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right
      width="12%">October 5, 2008 </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>United States </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff><B>135.4</B> </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff>176.0 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>Europe </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%"><B>12.2</B> </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%">11.9 </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Canada </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff><B>7.5</B> </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff>14.2 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      bgColor=#ffffff>Other regions </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#ffffff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="12%"
    bgColor=#ffffff><B>4.5</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#ffffff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#ffffff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="12%"
    bgColor=#ffffff>4.2 </TD>
    <TD align=left width="2%"  bgColor=#ffffff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left
      bgColor=#e6efff>Total trade receivables </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right width="12%"
    bgColor=#e6efff><B>159.6</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right width="12%"
    bgColor=#e6efff>206.3 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR>
    <TD bgColor=#ffffff>&nbsp; </TD>
    <TD width="1%"  bgColor=#ffffff>&nbsp;</TD>
    <TD width="12%" bgColor=#ffffff>&nbsp; </TD>
    <TD width="2%"  bgColor=#ffffff>&nbsp;</TD>
    <TD width="1%"  bgColor=#ffffff>&nbsp;</TD>
    <TD width="12%" bgColor=#ffffff>&nbsp; </TD>
    <TD width="2%"  bgColor=#ffffff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left
      bgColor=#ffffff><I>(in $ millions)</I> </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
     bgColor=#ffffff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right width="12%"
    bgColor=#ffffff><B>October 4, 2009</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="2%"
     bgColor=#ffffff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
     bgColor=#ffffff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right width="12%"
    bgColor=#ffffff>October 5, 2008 </TD>
    <TD align=left width="2%"  bgColor=#ffffff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Distributors and screenprinters </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff><B>127.7</B> </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff>166.2 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      bgColor=#ffffff>Mass-market and regional retailers </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#ffffff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="12%"
    bgColor=#ffffff><B>31.9</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#ffffff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#ffffff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="12%"
    bgColor=#ffffff>40.1 </TD>
    <TD align=left width="2%"  bgColor=#ffffff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left
      bgColor=#e6efff>Total trade receivables </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right width="12%"
    bgColor=#e6efff><B>159.6</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right width="12%"
    bgColor=#e6efff>206.3 </TD>
    <TD align=left width="2%"
  bgColor=#e6efff>&nbsp;</TD></TR></TABLE>
<p><BR>
</p>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD align=left>The aging of trade receivable balances was as follows as
      at: </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="12%">&nbsp; </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="12%">&nbsp; </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="12%">&nbsp; </TD>
    <TD width="2%" >&nbsp;</TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="12%">&nbsp; </TD>
    <TD width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left><I>(in $
      millions)</I> </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right
      width="12%"><B>October 4, 2009</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right
      width="12%">October 5, 2008 </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="12%">&nbsp; </TD>
    <TD width="2%" >&nbsp;</TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="12%">&nbsp; </TD>
    <TD width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Not past due </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff><B>144.5</B> </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff>186.0 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>Past due 0-30 days </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%"><B>14.9</B> </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%">15.7 </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Past due 31-60 days </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff><B>3.5</B> </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff>3.2 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>Past due 61-120 days </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%"><B>1.2</B> </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%">1.9 </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      bgColor=#e6efff>Past due over 121 days </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="12%"
    bgColor=#e6efff><B>1.5</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="12%"
    bgColor=#e6efff>2.3 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>Trade receivables </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%"><B>165.6</B> </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%">209.1 </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      bgColor=#e6efff>Less allowance for doubtful accounts </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="12%"
    bgColor=#e6efff><B>(6.0</B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff><B>)</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="12%"
    bgColor=#e6efff>(2.8</TD>
    <TD align=left width="2%"  bgColor=#e6efff>) </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left>Total trade
      receivables </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right
      width="12%"><B>159.6</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right width="12%">206.3
    </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR></TABLE>
<P align=justify>The movement in the allowance for doubtful accounts in respect
of trade receivables was as follows:</P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left><I>(in $
      millions)</I> </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right
      width="12%"><B>October 4, 2009</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right
      width="12%">October 5, 2008 </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Balance, beginning of year </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff><B>2.8</B> </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff>2.0 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>Bad debt expense </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%"><B>6.0</B> </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%">4.5 </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Write-off of accounts receivable </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff><B>(2.8</B></TD>
    <TD align=left width="2%"  bgColor=#e6efff><B>)</B> </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff>(4.0</TD>
    <TD align=left width="2%"  bgColor=#e6efff>) </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>Increase due to
      acquisition of Prewett </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="12%"><B>-</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="12%">0.3
    </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left
      bgColor=#e6efff>Balance, end of year </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right width="12%"
    bgColor=#e6efff><B>6.0</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right width="12%"
    bgColor=#e6efff>2.8 </TD>
    <TD align=left width="2%"
  bgColor=#e6efff>&nbsp;</TD></TR></TABLE>
<P align=justify><B>Liquidity Risk<br>
</B>Liquidity risk is the risk that the Company will not be able to
meet its financial obligations as they fall due. We require continued access to
capital markets to support our operations as well as to achieve our strategic
plans. We rely on cash resources, debt and cash flows generated from operations
to satisfy our financing requirements. Any impediments to our ability to
continue to meet the covenants and conditions contained in our revolving credit
facility as well as our ability to access capital markets, or the failure of a
financial institution participating in our credit facility, or an adverse
perception in capital markets of our financial condition or prospects, could
have a material impact on our financing capability. In addition, our access to
financing at reasonable interest rates could become influenced by the economic
and credit market environment.</P>
<P align=right>GILDAN 2009 REPORT TO SHAREHOLDERS P.23</P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<A name=page_24></A>
<table border="0" cellpadding="0" cellspacing="0" style="border-collapse: collapse" bordercolor="#111111" width="100%" id="AutoNumber1">
  <tr>
    <td width="50%" valign="bottom">
    <img border="0" src="mdaht1.jpg" width="100" height="33"></td>
    <td width="50%" valign="bottom">
    <p align="right"><font size="2"><br>
MANAGEMENT&#146;S DISCUSSION AND ANALYSIS</font></td>
  </tr>
</table>
<P align=justify>We manage liquidity risk through the management of our capital
structure and financial leverage, as outlined in Note 20 to the 2009 audited
Consolidated Financial Statements (&#147;Capital Disclosures&#148;). In addition, we
manage liquidity risk by continuously monitoring actual and projected cash
flows, taking into account the seasonality of our sales and receipts. We also
monitor the impact of credit market conditions in the current environment. The
Board of Directors reviews and approves the Company&#146;s operating and capital
budgets, as well as any material transactions out of the ordinary course of
business, including proposals on mergers, acquisitions or other major
investments or divestitures. </P>
<P align=justify>The Company has a committed revolving credit facility for a
maximum of $400 million which expires in June 2013. The Company&#146;s revolving
credit facility is subject to various financial covenants. The Company was in
compliance with all covenants as at October 4, 2009. This facility is unsecured
and amounts drawn bear interest at LIBOR rates or U.S. base rate plus an
applicable margin. As at October 4, 2009, there were no amounts drawn under this
facility. As at October 5, 2008, $45.0 million was drawn under this facility,
bearing an effective interest rate of 4.75%. </P>
<P align=justify>The Company had no derivative financial instruments outstanding
as at October 4, 2009, but had derivative financial instruments outstanding at
the end of fiscal 2008, which consisted of forward foreign exchange contracts
for which notional amounts, maturities, carrying and fair values and other
information are disclosed in Note 19 to the audited Consolidated Financial
Statements. </P>
<P align=justify>The following are the contractual maturities of financial
liabilities by period, excluding future interest payments but including accrued
interest to October 4, 2009. </P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 8pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left><FONT
      size=2>&nbsp; </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="10%"><FONT
      size=2><B>Carrying</B> </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="10%"><FONT
      size=2><B>0 to 12</B> </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="10%"><FONT
      size=2><B>1 to 2</B> </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="10%"><FONT
      size=2><B>2 to 5</B> </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="10%"><FONT
      size=2><B>More than 5</B> </FONT></TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left><FONT
      size=2><I>(in $ millions)</I> </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right width="10%"><FONT
      size=2><B>amount</B> </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right width="10%"><FONT
      size=2><B>months</B> </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right width="10%"><FONT
      size=2><B>years</B> </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right width="10%"><FONT
      size=2><B>years</B> </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right width="10%"><FONT
      size=2><B>years</B> </FONT></TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff><FONT size=2>Other long-term debt
</FONT></TD>
    <TD align=right width="10%" bgColor=#e6efff><FONT size=2><B>4.4</B>
    </FONT></TD>
    <TD align=right width="10%" bgColor=#e6efff><FONT size=2>2.8 </FONT></TD>
    <TD align=right width="10%" bgColor=#e6efff><FONT size=2>1.6 </FONT></TD>
    <TD align=right width="10%" bgColor=#e6efff><FONT size=2>- </FONT></TD>
    <TD align=right width="10%" bgColor=#e6efff><FONT size=2>- </FONT></TD></TR>
  <TR vAlign=top>
    <TD align=left style="border-bottom-style: solid; border-bottom-width: 1"><FONT size=2>Accounts payable and accrued liabilities
      </FONT></TD>
    <TD align=right width="10%" style="border-bottom-style: solid; border-bottom-width: 1"><FONT size=2><B>124.4</B> </FONT></TD>
    <TD align=right width="10%" style="border-bottom-style: solid; border-bottom-width: 1"><FONT size=2>124.4 </FONT></TD>
    <TD align=right width="10%" style="border-bottom-style: solid; border-bottom-width: 1"><FONT size=2>- </FONT></TD>
    <TD align=right width="10%" style="border-bottom-style: solid; border-bottom-width: 1"><FONT size=2>- </FONT></TD>
    <TD align=right width="10%" style="border-bottom-style: solid; border-bottom-width: 1"><FONT size=2>- </FONT></TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-top-style:solid; border-top-width:1" align=left
      bgColor=#e6efff><FONT size=2><B>Total</B> </FONT></TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-top-style:solid; border-top-width:1" align=right width="10%"
    bgColor=#e6efff><FONT size=2><B>128.8</B> </FONT></TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-top-style:solid; border-top-width:1" align=right width="10%"
    bgColor=#e6efff><FONT size=2>127.2 </FONT></TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-top-style:solid; border-top-width:1" align=right width="10%"
    bgColor=#e6efff><FONT size=2>1.6 </FONT></TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-top-style:solid; border-top-width:1" align=right width="10%"
    bgColor=#e6efff><FONT size=2>- </FONT></TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-top-style:solid; border-top-width:1" align=right width="10%"
    bgColor=#e6efff><FONT size=2>- </FONT></TD></TR></TABLE>
<P align=justify><B>Foreign Currency Risk</B><BR>The majority of the Company&#146;s cash flows and financial assets
and liabilities are denominated in U.S. dollars, which is the Company&#146;s
functional and reporting currency. Foreign currency risk is limited to the
portion of the Company&#146;s business transactions denominated in currencies other
than U.S. dollars, primarily for sales and distribution expenses for customers
outside of the United States, and head office expenses in Canada. The Company&#146;s
exposure relates primarily to changes in the U.S. dollar versus the Canadian
dollar, the British pound, the Euro, and the Mexican peso exchange rates. For
the Company&#146;s foreign currency transactions, fluctuations in the respective
exchange rates relative to the U.S. dollar will create volatility in the
Company&#146;s cash flows and the reported amounts for sales and SG&amp;A expenses in
its consolidated statement of earnings, both on a period-to-period basis and
compared with operating budgets and forecasts. Additional earnings variability
arises from the translation of monetary assets and liabilities denominated in
currencies other than the U.S. dollar at the rates of exchange at each balance
sheet date, the impact of which is reported as a foreign exchange gain or loss
in the statement of earnings.</P>
<P align=justify>The Company also incurs a portion of its manufacturing costs in
foreign currencies, primarily payroll costs paid in Honduran Lempiras. The
Lempira to U.S. dollar exchange rate has not fluctuated significantly in recent
years. However, should there be a change in the Lempira to U.S. dollar exchange
rate in the future, such change may have an impact on our operating results.
</P>
<P align=justify>The Company&#146;s objective in managing its foreign currency risk
is to minimize its net exposures to foreign currency cash flows, by transacting
with third parties in U.S. dollars to the maximum extent possible and practical,
and holding cash and cash equivalents and incurring borrowings in U.S. dollars.
The Company monitors and forecasts the values of net foreign currency cash flows
and balance sheet exposures, and from time-to-time will authorize the use of
derivative financial instruments such as forward foreign exchange contracts to
economically hedge a portion of foreign currency cash flows, with maturities of
up to two years. The Company does not use forward foreign exchange contracts for
speculative purposes. As at October 4, 2009, the Company had no derivative
foreign exchange contracts outstanding, although several forward foreign
exchange contracts matured during fiscal 2009, which were reported on a
mark-to-market basis and the gains and losses were included in financial
(income) expense. The Company elected not to apply hedge accounting for these
derivatives.</P>
<P align=right>GILDAN 2009 REPORT TO SHAREHOLDERS P.24</P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<A name=page_25></A>
<table border="0" cellpadding="0" cellspacing="0" style="border-collapse: collapse" bordercolor="#111111" width="100%" id="AutoNumber1">
  <tr>
    <td width="50%" valign="bottom">
    <img border="0" src="mdaht1.jpg" width="100" height="33"></td>
    <td width="50%" valign="bottom">
    <p align="right"><font size="2"><br>
MANAGEMENT&#146;S DISCUSSION AND ANALYSIS</font></td>
  </tr>
</table>
<A name=page_26></A>
<P align=justify>The following tables provide an indication of the Company&#146;s
significant foreign currency exposures during the year ended October 4, 2009,
including the year end balances of financial assets and liabilities denominated
in foreign currencies, as well as the amount of sales and operating expenses
during the year that were denominated in foreign currencies, but before
considering the effect of forward foreign exchange contracts. </P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD align=left>&nbsp; </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="10%">&nbsp; </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="10%">&nbsp; </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="23%" colSpan=4><B>October 4, 2009</B> </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left><I>(in U.S. $
      millions)</I> </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right
      width="10%"><B>CAD</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right
      width="10%"><B>EUR</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right
      width="10%"><B>GBP</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right
      width="10%"><B>MXN</B> </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Cash and cash equivalents </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>3.0 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>1.1 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>1.8 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>0.4 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>Accounts receivable </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%">7.5 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%">4.4 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%">4.9 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%">5.2 </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      bgColor=#e6efff>Accounts payable and accrued liabilities </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="10%"
    bgColor=#e6efff>(19.8</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff>) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="10%"
    bgColor=#e6efff>(1.7</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff>) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="10%"
    bgColor=#e6efff>0.1 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="10%"
    bgColor=#e6efff>(0.3</TD>
    <TD align=left width="2%"  bgColor=#e6efff>) </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left>Balance sheet
      exposure excluding financial derivatives </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right
    width="10%">(9.3</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="2%"
    >) </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right width="10%">3.8
    </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right width="10%">6.8
    </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right width="10%">5.3
    </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#ffffff>&nbsp; </TD>
    <TD align=left width="1%"  bgColor=#ffffff>&nbsp;</TD>
    <TD align=left width="10%" bgColor=#ffffff>&nbsp; </TD>
    <TD align=left width="2%"  bgColor=#ffffff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#ffffff>&nbsp;</TD>
    <TD align=right width="36%" bgColor=#ffffff colSpan=7><B>For the year
      ended October 4, 2009</B> </TD>
    <TD align=left width="2%"  bgColor=#ffffff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left
      bgColor=#ffffff><I>(in U.S. $ millions)</I> </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
     bgColor=#ffffff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right width="10%"
    bgColor=#ffffff><B>CAD</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="2%"
     bgColor=#ffffff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
     bgColor=#ffffff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right width="10%"
    bgColor=#ffffff><B>EUR</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="2%"
     bgColor=#ffffff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
     bgColor=#ffffff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right width="10%"
    bgColor=#ffffff><B>GBP</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="2%"
     bgColor=#ffffff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
     bgColor=#ffffff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right width="10%"
    bgColor=#ffffff><B>MXN</B> </TD>
    <TD align=left width="2%"  bgColor=#ffffff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Sales </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>33.6 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>21.1 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>22.7 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>13.2 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      bgColor=#ffffff>Operating expenses </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#ffffff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="10%"
    bgColor=#ffffff>(52.8</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#ffffff>) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#ffffff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="10%"
    bgColor=#ffffff>(5.0</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#ffffff>) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#ffffff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="10%"
    bgColor=#ffffff>(2.2</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#ffffff>) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#ffffff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="10%"
    bgColor=#ffffff>(2.4</TD>
    <TD align=left width="2%"  bgColor=#ffffff>) </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left
      bgColor=#e6efff>Net exposure </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right width="10%"
    bgColor=#e6efff>(19.2</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="2%"
     bgColor=#e6efff>) </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right width="10%"
    bgColor=#e6efff>16.1 </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right width="10%"
    bgColor=#e6efff>20.5 </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right width="10%"
    bgColor=#e6efff>10.8 </TD>
    <TD align=left width="2%"
  bgColor=#e6efff>&nbsp;</TD></TR></TABLE>
<P align=justify>The following table reflects the exchange rates applied during
the reporting period for the year ended October 4, 2009. </P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD align=left>&nbsp; </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%"><B>Year-to-date</B> </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%"><B>Reporting</B> </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right
      width="12%"><B>average rate</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right
      width="12%"><B>date rate</B> </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>CAD to USD </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff>0.8542 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff>0.9228 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>EUR to USD </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%">1.3531 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%">1.4529 </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>GBP to USD </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff>1.5625 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff>1.5926 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left>MXN to USD </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right
      width="12%">0.0751 </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right
      width="12%">0.0727 </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR></TABLE>
<P align=justify>Based on the Company&#146;s foreign currency exposures noted above,
varying the above foreign exchange rates to reflect a 5 percent strengthening of
the U.S. dollar would have increased (decreased) net earnings as follows,
assuming that all other variables remained constant: </P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD align=left>&nbsp; </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="10%">&nbsp; </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="36%" colSpan=7><B>For the year ended, October 4,
      2009</B> </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left><I>(in U.S. $
      millions)</I> </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right
      width="10%"><B>CAD</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right
      width="10%"><B>EUR</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right
      width="10%"><B>GBP</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right
      width="10%"><B>MXN</B> </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Source of net earnings variability from
      changes in foreign exchange rates: </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="10%" bgColor=#e6efff></TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="10%" bgColor=#e6efff></TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="10%" bgColor=#e6efff></TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="10%" bgColor=#e6efff></TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; &nbsp; &nbsp;Financial instruments, including
      forward foreign exchange contracts </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%">0.5 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%">(0.2</TD>
    <TD align=left width="2%" >) </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%">(0.3</TD>
    <TD align=left width="2%" >) </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%">(0.3</TD>
    <TD align=left width="2%" >) </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      bgColor=#e6efff>&nbsp; &nbsp; &nbsp;Sales and operating expenses </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="10%"
    bgColor=#e6efff>1.0 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="10%"
    bgColor=#e6efff>(0.8</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff>) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="10%"
    bgColor=#e6efff>(1.0</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff>) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="10%"
    bgColor=#e6efff>(0.5</TD>
    <TD align=left width="2%"  bgColor=#e6efff>) </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left>Increase
      (decrease) in net earnings </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right width="10%">1.5
    </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right
    width="10%">(1.0</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="2%"
    >) </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right
    width="10%">(1.3</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="2%"
    >) </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right
    width="10%">(0.8</TD>
    <TD align=left width="2%" >) </TD></TR></TABLE>
<P align=justify>An assumed 5 percent weakening of the U.S. dollar during the
year ended October 4, 2009 would have had an equal but opposite effect on the
above currencies to the amounts shown above, on the basis that all other
variables remain constant. </P>
<P align=justify><B>Interest Rate Risk</B><BR>The Company&#146;s interest rate risk is primarily related to the
Company&#146;s revolving long-term credit facility, for which amounts drawn are
primarily subject to LIBOR rates in effect at the time of borrowing, plus a
margin. Although LIBOR-based borrowings under the credit facility can be fixed
for periods of up to six months, the Company generally fixes rates for periods
of one to three months. The interest rates on amounts drawn on this facility and
on any future borrowings will vary and are unpredictable. Increases in short
term interest rates and increases in interest rates on new debt issues may
result in a material increase in interest charges. </P>
<P align=right>GILDAN 2009 REPORT TO SHAREHOLDERS P.25</P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>



<table border="0" cellpadding="0" cellspacing="0" style="border-collapse: collapse" bordercolor="#111111" width="100%" id="AutoNumber1">
  <tr>
    <td width="50%" valign="bottom">
    <img border="0" src="mdaht1.jpg" width="100" height="33"></td>
    <td width="50%" valign="bottom">
    <p align="right"><font size="2"><br>
MANAGEMENT&#146;S DISCUSSION AND ANALYSIS</font></td>
  </tr>
</table>
<P align="justify">
The Company has the ability to enter into derivative financial instruments that would effectively fix its cost of current and future borrowings for an extended period of time. At the end of fiscal 2009 and 2008, the Company had no derivative
financial instruments outstanding, but during fiscal 2009, the Company entered into two interest rate swap contracts totaling &#36;50.0 million which matured in the third and fourth quarters, respectively.</P>
<P align="justify">
<B><U>CRITICAL ACCOUNTING ESTIMATES</U></B><BR>
</P>
<P align="justify">
Our significant accounting policies are described in Note 1 to our 2009 audited annual Consolidated Financial Statements. The preparation of financial statements in conformity with Canadian GAAP requires estimates and assumptions that affect our
results of operations and financial position. By their nature, these judgments are subject to an inherent degree of uncertainty and are based upon historical experience, trends in the industry and information available from outside sources. On an
ongoing basis, management reviews its estimates and actual results could differ materially from those estimates. </P>
<P align="justify">
Management believes that the following accounting estimates require assumptions to be made about matters that are highly uncertain: </P>
<P align="justify">
<B>Allowance for Doubtful Accounts</B><BR>
Trade accounts receivable consists of amounts due from our normal business activities. We maintain an allowance for doubtful accounts to reflect expected credit losses. We provide for bad debts based on collection history and specific risks
identified on a customer-by-customer basis. A considerable amount of judgment is required to assess the ultimate realization of accounts receivable and the credit-worthiness of each customer. Furthermore, these judgments must be continuously
evaluated and updated. Uncollected accounts are written off through the allowance for doubtful accounts. We are not able to predict changes in the financial condition of our customers, and if circumstances related to our customers&#146; financial
condition deteriorate, our estimates of the recoverability of our trade receivables could be materially affected and we may be required to record additional allowances. Alternatively, if we provide more allowances than we need, we may reverse a
portion of such provisions in future periods based on our actual collection experience.
</P>
<P align="justify">
<B>Inventory Valuation</B><BR>
Our inventory is carried at the lower of First-In-First-Out cost and net realizable value. We regularly review inventory quantities on hand and record a provision for those inventories no longer deemed to be fully recoverable. The cost of
inventories may no longer be recoverable if those inventories are slow moving, damaged, if they have become obsolete, or if their selling prices or estimated forecast of product demand decline. If actual market conditions are less favorable than
previously projected, or if liquidation of the inventory no longer deemed to be fully recoverable is more difficult than anticipated, additional provisions may be required.
</P>
<P align="justify">
<B>Sales Promotional Programs</B><BR>
In the normal course of business, certain incentives are granted to our customers including discounts and rebates. At the time of sale, estimates are made for customer price discounts and rebates based on the terms of existing programs. Accruals
required for new programs, which relate to prior sales, are recorded at the time the new program is introduced. Sales are recorded net of these program costs and a provision for estimated sales returns, which is based on historical experience,
current trends and other known factors. If actual price discounts, rebates or returns differ from estimates, significant adjustments to net sales could be required in future periods.
</P>
<P align="right">
GILDAN 2009 REPORT TO SHAREHOLDERS P.26</P>

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  <tr>
    <td width="50%" valign="bottom">
    <img border="0" src="mdaht1.jpg" width="100" height="33"></td>
    <td width="50%" valign="bottom">
    <p align="right"><font size="2"><br>
MANAGEMENT&#146;S DISCUSSION AND ANALYSIS</font></td>
  </tr>
</table>
<P align="justify">
<B>Recoverability of Long-Lived Assets</B><BR>
Our long-lived assets are comprised of property, plant and equipment and identifiable intangible assets, which are recorded at cost less accumulated amortization, including asset impairment losses. Amortization is calculated using the straight-line
method over the estimated useful lives of the assets.
</P>
<P align="justify">
On a regular basis, we review the estimated useful lives of our long-lived assets. Assessing the reasonableness of the estimated useful lives of long-lived assets requires judgment and is based on currently available information, including actual
utilization experience and expected future business plans. We also review long-lived assets for potential impairment whenever events or changes in circumstances indicate that the carrying amounts of such assets may not be recoverable. Impairment
losses are recognized when the estimated undiscounted future cash flows expected to result from the use of an asset and its eventual disposition are less than its carrying amount. The amount of impairment loss recognized is measured as the amount by
which the carrying value of an asset exceeds its fair value, with fair value being determined based upon discounted cash flows or appraised values, depending on the nature of the asset. In estimating future cash flows, the Company uses its best
estimates based on internal plans, which incorporate management&#146;s judgments as to the remaining service potential of the long-lived assets. Changes in circumstances, such as technological advances and changes to our business strategy can result
in actual useful lives and future cash flows differing significantly from our estimates resulting in increased charges for amortization or impairment. Such charges would not result in cash outflows and would not affect the Company&#146;s liquidity.
Revisions to the estimated useful lives of long-lived assets or future cash flows constitute a change in accounting estimate and are applied prospectively. </P>
<P align="justify">
<B>Income Taxes</B><BR>
We utilize the asset and liability method for accounting for income taxes which requires the establishment of future tax assets and liabilities, measured at substantively enacted tax rates, for all temporary differences caused when the tax bases of
assets and liabilities differ from those reported in our audited Consolidated Financial Statements.
</P>
<P align="justify">
We recognize future income tax assets only to the extent that, in management&#146;s opinion, it is more likely than not that the future income tax assets will be realized, based on estimates of future taxable income in applicable jurisdictions and
other assumptions. To the extent that it is determined that it is no longer more likely than not that the asset will be realized, a valuation allowance is provided. </P>
<P align="justify">
The Company&#146;s income tax provisions and income tax assets and liabilities are based on interpretations of applicable tax laws, including income tax treaties between various countries in which the Company operates as well as underlying rules and
regulations with respect to transfer pricing. These interpretations involve judgments and estimates and may be challenged through government taxation audits that the Company is regularly subject to. The Company recognizes the benefits of uncertain
tax filing positions in its financial statements when it is considered likely that the tax position will be sustained upon examination by tax authorities, including resolution of any related appeals or litigation processes, based on the technical
merits of the position. The tax benefits recognized from such positions are measured at the best estimate of the amounts expected to be realized upon ultimate resolution. The Company periodically reviews and adjusts its estimates and assumptions of
income tax assets and liabilities as circumstances warrant, such as changes to tax laws, administrative guidance, change in management&#146;s assessment of the technical merits of its position due to new information, and the resolution of
uncertainties through either the conclusion of tax audits or expiration of prescribed time limits within relevant statutes. Previously recognized tax benefits relating to uncertain tax filing positions are derecognized if it becomes likely that the
tax position will no longer be upheld. Actual results, including the resolution of government tax audits and other events may vary materially compared to estimates and assumptions used by management in determining the provision for income taxes and
in valuing income tax assets and liabilities, and in such eventualities the Company may be required to reduce or increase the value of income tax assets and liabilities resulting in a material income tax expense or recovery in future periods. </P>
<P align="right">
GILDAN 2009 REPORT TO SHAREHOLDERS P.27</P>

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  <tr>
    <td width="50%" valign="bottom">
    <img border="0" src="mdaht1.jpg" width="100" height="33"></td>
    <td width="50%" valign="bottom">
    <p align="right"><font size="2"><br>
MANAGEMENT&#146;S DISCUSSION AND ANALYSIS</font></td>
  </tr>
</table>
<P align="justify">
<B>Business Acquisitions</B><BR>
We account for business acquisitions using the purchase method. Accordingly, the purchase price of a business acquisition is allocated to its identifiable net assets including identifiable intangible assets, on the basis of estimated fair values as
at the date of purchase, with any excess being assigned to goodwill. We estimate the fair value of assets and liabilities acquired, including goodwill, at the date of acquisition using a projected discounted cash flow method and other valuation
methods. Goodwill is assessed for impairment annually and sometimes more frequently if a change in circumstances indicates that the asset
might be impaired by comparing the fair value of the reporting unit to its carrying value. If the carrying value of the reporting unit exceeds its fair value, a more detailed goodwill impairment assessment must be undertaken. We use a number of
significant estimates and assumptions when calculating fair value. These estimates and assumptions include projected future cash flows, the number of years used, the discount rate and other items. We believe that our estimates and valuation methods
are reasonable, consistent with our internal planning and reflect our best estimates, but they have inherent uncertainties that management may not be able to control. If the future was to adversely differ from management&#146;s best estimate of key
economic assumptions, and if associated cash flows were to materially decrease, the Company may be required to record impairment charges related to its goodwill.  Such charges would not result in cash outflows and would not affect the Company&#146;s
liquidity.
</P>
<P align="justify">
<B><U>CHANGES IN ACCOUNTING POLICIES AND FUTURE ACCOUNTING STANDARDS</U></B><B> </B></P>
<P align="justify">
<B>CHANGES IN ACCOUNTING POLICIES </B></P>
<P align="justify">
<B><I> Inventories: <br>
</I></B>Effective the commencement of its 2009 fiscal year, the Company adopted CICA Handbook Section 3031, <I>Inventories</I>, which replaced Section 3030, <I>Inventories,</I> and harmonized the Canadian standards related to inventories with International
Financial Reporting Standards (IFRS). This Section, which was issued in June 2007, provides changes to the measurement of, and more extensive guidance on, the determination of cost, including allocation of overhead; narrows the permitted cost
formulas; requires impairment testing; clarifies that major spare parts not in use should be included in property, plant and equipment; and expands the disclosure requirements to increase transparency. The Company compared the requirements of this
new Section with its current measurement and determination of costs and concluded that the new Section did not have a significant impact on the results of operations. The Company previously included and will continue to include the amount of
depreciation related to manufacturing activities as a component of the cost of inventories. However, the new Section requires depreciation expense related to inventories which have been sold to be presented in cost of sales. As a result, effective
the first quarter of fiscal 2009, depreciation expense related to manufacturing activities was reclassified to cost of sales. </P>
<P align="justify">
See the section, Statement of earnings classification, in Note 1(a) and Note 3 to the audited Consolidated Financial Statements for a description of the impact of adopting Section 3031. </P>
<P align="justify">
<B><I>General Standards of Financial Statement Presentation: <br>
</I></B>Effective the commencement of its 2009 fiscal year, the Company adopted the amendment of CICA Handbook Section 1400, <I>General Standards of Financial Statement Presentation</I>, which is effective for fiscal year&#146;s beginning on or after
October 1, 2008 and which includes requirements to assess and disclose the Company&#146;s ability to continue as a going concern. The adoption of the amended Section did not have an impact on the consolidated financial statements of the Company. </P>
<P align="justify">
<B><I>Goodwill and intangible assets: <br>
</I></B>In February 2008, Canada&#146;s Accounting Standard&#146;s Board (AcSB) issued CICA Handbook Section 3064, <I>Goodwill and Intangible Assets</I>, replacing Section 3062, <I>Goodwill and Other Intangible Assets</I>, and Section 3450, <I>Research and
Development Costs</I>. Section 3064 establishes revised standards for the recognition, measurement, presentation and disclosure of goodwill and intangible assets. The new Section also provides guidance for the treatment of preproduction and start-up
costs and requires that these costs be expensed as incurred. This Section applies to annual financial statements relating to the Company&#146;s fiscal year beginning on October 6, 2008 and has been adopted on a retrospective basis effective from the
first quarter of fiscal 2009.</P>
<P align="justify">
Prior to the adoption of Section 3064, the Company deferred and amortized plant start-up costs on a straight-line basis over two years. The impact of adopting this Section, on a retrospective basis, was an increase of &#36;1.8 million in net
earnings for fiscal 2008 (increase of &#36;0.01 in basic and diluted earnings per share), and a decrease in net earnings of &#36;1.0 million for fiscal 2007 (decrease of &#36;0.01 in basic and diluted earnings per share). The adoption of this
Section also resulted in a decrease of
&#36;0.8 million in other assets as at October 5, 2008 and a decrease of &#36;1.6 million in shareholders&#146; equity as at October 1, 2006. </P>
<P align="right">
GILDAN 2009 REPORT TO SHAREHOLDERS P.28</P>

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MANAGEMENT&#146;S DISCUSSION AND ANALYSIS</font></td>
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<P align="justify">
The impact of adopting this Section, on a retrospective basis, was an increase of &#36;0.5 million in net earnings for the three months ended October 5, 2008 with no change in the reported basic or diluted earnings per share.</P>
<P align="justify">
<B><I>Credit risk and the fair value of financial assets and financial liabilities:
<br>
</I></B>On January 20, 2009, the Emerging Issues Committee (EIC) of the AcSB issued EIC Abstract 173,<I> Credit Risk and Fair Value of Financial Assets and Financial Liabilities</I>, which establishes that an entity&#146;s own credit risk and the credit risk of the counterparty should be taken into account in determining the fair value of financial
assets and financial liabilities, including derivative instruments. EIC 173 should be applied retrospectively without restatement of prior years to all financial assets and liabilities measured at fair value in interim and annual financial
statements for periods ending on or after January 20, 2009 and was applicable to the Company for its second quarter of fiscal 2009 with retrospective application, if any, to the beginning of its current fiscal year. The adoption of EIC 173 did not
have an impact on the consolidated financial statements of the Company. </P>
<P align="justify">
<B><I>Financial Instruments &#150; Disclosures: <br>
</I></B>In June 2009, the AcSB issued amendments to CICA Handbook Section 3862, <I>Financial Instruments &#150;Disclosures</I> in order to align with International Financial Reporting Standard IFRS 7, <I>Financial Instruments: Disclosures</I>.  This Section
has been amended to include additional disclosure requirements about fair value measurements of financial instruments and to enhance liquidity risk disclosure. The amendments establish a three-tier fair value hierarchy, which prioritizes the inputs
used in measuring fair value. These tiers include: Level 1, defined as observable inputs such as quoted prices in active markets; Level 2, defined as inputs other than quoted prices in active markets that are either directly or indirectly
observable; and Level 3, defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions.  The amendments apply to annual financial statements relating to fiscal years ended after
September 30, 2009 and are applicable to the Company as at October 4, 2009.  The amended Section relates to disclosure only and did not impact the financial results of the Company. As at October 4, 2009, the Company held no assets or liabilities
required to be measured at fair value except for cash and cash equivalents which was measured using Level 2 inputs in the fair value hierarchy. </P>
<P align="right">
GILDAN 2009 REPORT TO SHAREHOLDERS P.29</P>

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MANAGEMENT&#146;S DISCUSSION AND ANALYSIS</font></td>
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<P align="justify">
<B>FUTURE ACCOUNTING STANDARDS </B></P>
<P align="justify">
<B><I>International Financial Reporting Standards (IFRS)</I></B> <br>
In February 2008, the AcSB confirmed that IFRS, as issued by the International Accounting Standards Board, will replace Canadian GAAP for publicly accountable enterprises effective for fiscal years beginning on or after January 1, 2011. As a result,
the changeover to IFRS will be required for our fiscal 2012 interim and annual financial statements beginning October 3, 2011 (the &#147;changeover date&#148;) with comparative information presented for fiscal 2011.</P>
<P align="justify">
In preparation for the changeover to IFRS, we have developed an IFRS transition plan consisting of three phases - 1) Scoping and Diagnostic Phase, 2) Impact Analysis and Design Phase, and 3) Implementation and Review Phase. Transition issues
identified in each of these phases will be analyzed and addressed according to the level of impact they will have on the key elements of the transition plan. These key elements include:</P>
<UL style="text-align:justify;">
<LI>
<p style="margin-top: 0; margin-bottom: 5">Accounting policies, including choices among policies permitted under IFRS;</LI>
<LI>
<p style="margin-top: 0; margin-bottom: 5">Information technology and data systems;</LI>
<LI>
<p style="margin-top: 0; margin-bottom: 5">Internal control over financial reporting;</LI>
<LI>
<p style="margin-top: 0; margin-bottom: 5">Disclosure controls and procedures, including investor relations and external communications plans; and</LI>
<LI>
<p style="margin-top: 0; margin-bottom: 5">Business activities, including the impact on operating agreements and key performance indicators.</LI>
</UL>
<P align="justify">
<B><I><U>Progress towards Completion of our IFRS Changeover Plan</U> <br>
</I></B>The following information is presented to comply with Canadian Securities Administrators Staff Notice 52-320, <I>Disclosure of Expected Changes in Accounting Policies Relating to Changeover to International Financial Reporting Standards</I>. This
information is provided to allow investors and others to obtain a better understanding of our IFRS changeover plan and the possible effects on our operations.  Readers are cautioned, however, that it may not be appropriate to use such information
for any other purpose. This information also reflects our most recent assumptions, and circumstances may arise, such as changes in IFRS standards or economic conditions, which could change these assumptions or the progress of our IFRS changeover
plan.</P>
<P align="justify">
We have completed the first phase, comprised of a scoping and diagnostic process, which involved a comparison of the Company&#146;s current accounting policies under Canadian GAAP with currently issued IFRS. A number of differences have been
identified with respect to the recognition and measurement of certain balance sheet items, and while our key analyses are progressing well, preliminary conclusions have not yet been reached and as such, they have not been reported at this time.</P>
<P align="justify">
IFRS 1, <I>First Time Adoption of International Financial Reporting Standards</I>, requires that first-time adopters select accounting policies that are in compliance with each IFRS effective at the end of a company&#146;s first annual IFRS
reporting period (September 30, 2012 for Gildan), and apply those policies to all periods presented in their first IFRS financial statements including the comparative periods. Therefore, the starting point for our accounting in accordance with IFRS
will be fiscal 2011, beginning on October 4, 2010 (the &#147;transition date&#148;) although the interim and annual financial statements for fiscal 2011 will only be published in accordance with IFRS in fiscal 2012 as comparative information. The
general requirement of IFRS 1 is full retrospective application of all accounting standards effective at an entity&#146;s reporting date but recorded against retained earnings as of the transition date. However, IFRS 1 provides first-time adopters
certain optional exemptions and mandatory exceptions from full retrospective application. We have identified the optional exemptions applicable to our operations, and will select the exemptions which are considered to be the most appropriate for the
Company.</P>
<P align="justify">
The second phase of our IFRS changeover plan is now underway and as our IFRS changeover plan progresses, we will continue to report on the status of the plan, significant findings, the impact on the key elements indicated above, and provide more
detailed information on preliminary conclusions reached. </P>
<P align="right">
GILDAN 2009 REPORT TO SHAREHOLDERS P.30</P>

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MANAGEMENT&#146;S DISCUSSION AND ANALYSIS</font></td>
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<P align="justify">
<B><I> Business combinations:</I> <br>
</B>In January 2009, the AcSB issued CICA Handbook Section 1582, <I>Business Combinations</I>, which replaces Section 1581, <I>Business Combinations</I>, and provides the equivalent to IFRS 3, <I>Business Combinations</I> (January 2008). The new Section
expands the definition of a business subject to an acquisition and establishes significant new guidance on the measurement of consideration given, and the recognition and measurement of assets acquired and liabilities assumed in a business
combination. The new Section requires that all business acquisitions be measured at the full fair value of the acquired entity at the acquisition date even if the business combination is achieved in stages, or if less than 100 percent of the equity
interest in the acquiree is owned at the acquisition date. The measurement of equity consideration given in a business combination will no longer be based on the average of the fair value of the shares a few days before and after the day the terms
and conditions have been agreed to and the acquisition announced, but rather at the acquisition date. Subsequent changes in fair value of contingent consideration classified as a liability will be recognized in earnings and not as an adjustment to
the purchase price. Restructuring and other direct costs of a business combination are no longer considered part of the acquisition accounting. Instead, such costs will be expensed as incurred, unless they constitute the costs associated with
issuing debt or equity securities. The Section applies prospectively to business combinations for which the acquisition date is on or after the beginning of the first annual reporting period beginning on or after January 1, 2011. Earlier adoption is
permitted. This new Section will only have an impact on our consolidated financial statements for future acquisitions that will be made in periods subsequent to the date of adoption. The Company is currently considering early adoption of Section
1582. </P>
<P align="justify">
<B><I>Consolidated financial statements and non-controlling interests:</I></B><B>
<br>
</B>In January 2009, the AcSB issued CICA Handbook Section 1601, <I>Consolidated Financial Statements</I>, and Handbook Section 1602, <I>Non-Controlling Interests</I>, which together replace Section 1600, <I>Consolidated Financial Statements</I>. These
two Sections are the equivalent to the corresponding provisions of International Accounting Standard 27, <I>Consolidated and Separate Financial Statements </I>(January 2008) under IFRS. Section 1602 applies to the accounting for non-controlling
interests and transactions with non-controlling interest holders in consolidated financial statements. The new Sections require that, for each business combination, the acquirer measure any non-controlling interest in the acquiree either at fair
value or at the non-controlling interest's proportionate share of the acquiree's identifiable net assets. The new Sections also require non-controlling interest to be presented as a separate component of shareholders' equity. Under Section 1602,
non-controlling interest in income is not deducted in arriving at consolidated net income or other comprehensive income. Rather, net income and each component of other comprehensive income are allocated to the controlling and non-controlling
interests based on relative ownership interests. These Sections apply to interim and annual consolidated financial statements relating to fiscal years beginning on or after January 1, 2011, and should be adopted concurrently with Section 1582.
Earlier adoption is permitted which would be effective as of the beginning of the fiscal year of adoption. The Company is currently considering early adoption of Section 1582, which would result in the reclassification of the non-controlling
interest in consolidated joint venture from a separate item on the consolidated balance sheet to a separate component of shareholders&#146; equity for all periods presented. </P>
<P align="justify">
<B><U>RELATED PARTY TRANSACTIONS</U></B><BR>
</P>
<P align="justify">
We have transactions with Frontier, which manages the operations of CanAm. These transactions are in the normal course of operations and are measured at the exchange amount, which is the amount of consideration established and agreed to by the
related parties. Total purchases of yarn from Frontier were &#36;149.8 million (2008 - &#36;138.6 million), along with &#36;0.8 million (2008 - &#36;0.8 million) relating to management fees for the
year ended October 4, 2009. As at October
4, 2009, we had an outstanding payable to Frontier of &#36;22.1 million (2008 - &#36;32.4 million). </P>
<P align="justify">
<B><U>DISCLOSURE CONTROLS</U></B><BR>
</P>
<P align="justify">
Our disclosure controls and procedures are designed to ensure that information required to be disclosed in our reports filed with securities regulatory authorities is recorded, processed, summarized, and reported within prescribed time periods and
is accumulated and communicated to our management, including our Chief Executive Officer and our Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosure. </P>
<P align="right">
GILDAN 2009 REPORT TO SHAREHOLDERS P.31</P>

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MANAGEMENT&#146;S DISCUSSION AND ANALYSIS</font></td>
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<P align="justify">
An evaluation was carried out under the supervision of, and with the participation of, our management, including our Chief Executive Officer and our Chief Financial Officer, of the effectiveness of our disclosure controls and procedures as at
October 4, 2009. Based on that evaluation, our Chief Executive Officer and our Chief Financial Officer concluded that our disclosure controls and procedures were effective as of the end of such period. </P>
<P align="justify">
<B><U>INTERNAL CONTROL OVER FINANCIAL REPORTING</U> </B></P>
<P align="justify">
<U>Management&#146;s Annual Report on Internal Control Over Financial Reporting</U> </P>
<P align="justify">
Our management is responsible for establishing and maintaining adequate internal control over financial reporting, as such term is defined in Rules 13(a)-15(f) and 15(d)-15(f) under the U.S. Securities Exchange Act of 1934. </P>
<P align="justify">
Our internal control over financial reporting includes those policies and procedures that: (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of our assets; (2)
provide reasonable assurance that transactions are recorded as necessary
to permit preparation of financial statements in accordance with generally accepted accounting principles, and that our receipts and expenditures are being made only in accordance with authorization of our management and directors; and (3) provide
reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of our assets that could have a material effect on the financial statements. </P>
<P align="justify">
Under the supervision and with the participation of our Chief Executive Officer and our Chief Financial Officer, management conducted an evaluation of the effectiveness of our internal control over financial reporting, as at October 4, 2009, based
on the framework set forth in Internal Control-Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Based on its evaluation under this framework, management concluded that our internal control
over financial reporting was effective as of that date. </P>
<P align="justify">
<U>Attestation Report of Independent Registered Public Accounting Firm</U> <br>
KPMG LLP, an independent registered public accounting firm, which audited and reported on our financial statements in this Report to Shareholders, has issued an unqualified attestation report on the effectiveness of our internal control over
financial reporting as at October 4, 2009. </P>
<P align="justify">
<U>Changes in Internal Controls Over Financial Reporting</U> <br>
There have been no changes during fiscal 2009 in our internal control over financial reporting that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting. </P>
<P align="justify">
The design of any system of controls and procedures is based in part upon certain assumptions about the likelihood of certain events. There can be no assurance that any design will succeed in achieving its stated goals under all potential future
conditions, regardless of how remote. </P>
<P align="justify">
<B><U>RISKS AND UNCERTAINTIES</U></B><BR>
</P>
<P align="justify">
In addition to the risks previously described under the section &#147;Financial Risk Management&#148;<I> </I>and those described elsewhere in this MD&amp;A, this section describes the principal risks that could have a material and adverse effect on
our financial condition, results of operations, cash flows or the trading price of our common stock, as well as cause actual results to differ materially from our expectations expressed in or implied by our forward-looking statements. The risks
described below are not the only risks that could affect the Company. Additional risks and uncertainties not currently known to us or that we currently deem to be immaterial may also materially and adversely affect our financial condition, results
of operations, cash flows or business.</P>
<P align="right">
GILDAN 2009 REPORT TO SHAREHOLDERS P.32</P>

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MANAGEMENT&#146;S DISCUSSION AND ANALYSIS</font></td>
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<P align="justify">
<B><I>Our ability to implement our strategies and plans <br>
</I></B>We continue to focus on the execution of our key strategic initiatives, specifically to maximize screenprint market share penetration, leverage our successful business model to further penetrate the mass-market retail, generate manufacturing and
distribution cost reductions, and  evaluate opportunities to re-invest and/or repatriate cash flow to our shareholders. We may not be able to successfully implement our growth strategy in the future. In spite of our core competencies and historical
success in achieving market share penetration and sales growth, we may not succeed in growing our market share in the U.S. screenprint channels, in further penetrating the mass-market retail channel and in achieving further market penetration within
our international markets or in pursuing other international market expansion opportunities. Success factors and economic returns may be different in new market channels and new geographical markets which the Company enters. Also, there can be no
assurance that we will be successful in optimizing our manufacturing and distribution cost reduction initiatives. In addition, our ability to generate cash flows from operations will depend on the success we have in executing our key strategic
initiatives, which in turn will ultimately impact our ability to reinvest and repatriate or distribute cash flow to our shareholders. We may be unable to identify acquisition targets, successfully integrate a newly acquired business, or achieve
expected synergies from such integration. </P>
<P align="justify">
<B><I>Our ability to compete effectively</I></B><BR>
The apparel market for our products is highly competitive. Competition is generally based upon price, with reliable quality and service also being key requirements for success. Our primary competitors are described more fully in the
business
description contained in this MD&amp;A under the heading &#147;Competitive Environment&#148; on page 4.
</P>
<P align="justify">
Our ability to remain competitive in the areas of price, quality, service, marketing, manufacturing and distribution will, in large part, determine our future success. Increased competition may result in the loss of customers to competitors,
reduction in customer orders or shelf space, lower prices, the need for customer price incentives and other forms of marketing support to our customers, all of which could have an adverse effect on our profitability if we are unable to offset such
negative impact with new business or cost reductions.  There can be no assurance that we will be able to maintain or improve our competitive position.</P>
<P align="justify">
<B><I>Adverse changes in general economic conditions </I></B>Although we manufacture basic, non-fashion, frequent-replenishment products used by consumers in a wide variety of applications, general economic and financial conditions, globally or in one or more of the markets we serve, may adversely affect our
business. If there is a decline in economic growth and in consumer and commercial activity, and/or if adverse financial conditions exist in the credit markets, as in the case of the global credit crisis that began in the latter part of 2008, this
may lead to lower demand for our products resulting in sale volume reductions and lower selling prices, and may cause us to operate at levels below our optimal production capacity, which would result in higher unit production costs, all of which
could adversely affect our profitability and reduce cash flows from operations. Weak economic and financial conditions could also negatively affect the financial condition of our customers, which could result in lower sales volumes and increased
credit risk. The nature and extent of the Company&#146;s credit risks are described under the section &#147;Financial Risk Management&#148;.</P>
<P align="right">
GILDAN 2009 REPORT TO SHAREHOLDERS P.33</P>

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MANAGEMENT&#146;S DISCUSSION AND ANALYSIS</font></td>
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<P align="justify">
<B><I>Our reliance on a small number of significant customers <br>
</I></B>We rely on a small number of customers for a significant portion of our total sales. In fiscal 2009 our largest and second largest customers accounted for 18.6% and 15.5% (2008 &#150; 23.1% and 13.6%) of total sales respectively, and our top ten
customers accounted for 67.8% (2008 &#150; 67.9%) of total sales. We expect that these customers will continue to represent a significant portion of our sales in the future.</P>
<P align="justify">
Future sales volumes and profitability could be adversely affected should one or more of the following events occur: </P>
<UL style="text-align:justify;">
<LI>
<p style="margin-top: 0; margin-bottom: 5">a significant customer substantially reduces its purchases or ceases to buy from us and we cannot replace that business with sales to other customers on similar terms;</LI>
<LI>
<p style="margin-top: 0; margin-bottom: 5">a large customer exercises its purchasing power to negotiate lower prices or to require Gildan to incur additional service and other costs;</LI>
<LI>
<p style="margin-top: 0; margin-bottom: 5">further industry consolidation leads to greater customer concentration; and</LI>
<LI>
<p style="margin-top: 0; margin-bottom: 5">a large customer encounters financial difficulties and is unable to meet its financial obligations.</LI>
</UL>
<P align="justify">
<B><I>Our customers do not commit to purchase minimum quantities<br>
</I></B>Our contracts with our customers do not require them to purchase a minimum quantity of our products. If any of our customers experience a significant business downturn or fail to remain committed to our products, they may reduce or discontinue
purchases from us.  Although we have maintained long-term relationships with many of our wholesale distributor and retail customers, there can be no assurance that historic levels of business from any of our customers will continue in the
future.</P>
<P align="justify">
<B><I>Our ability to anticipate evolving consumer preferences and trends <br>
</I></B>While we currently focus on basic, non-fashion products, the apparel industry, particularly within the retail channel, is subject to evolving consumer preferences and trends. Our success may be negatively impacted by changes in consumer preferences
which do not fit with Gildan&#146;s core competency of marketing and large-scale manufacturing of basic, non-fashion apparel products. If we are unable to successfully anticipate, identify or react to changing styles or trends or misjudge the market
for our products, our sales could be negatively impacted and we may be faced with unsold inventory which could adversely impact our profitability.</P>
<P align="justify">
<B><I>Our production volume may differ from market demand<br>
</I></B>Demand for our products may vary from year to year. We aim to appropriately balance our production and inventory with our ability to meet market demand. Based on discussions with our customers and internally generated projections reflecting our
analysis of factors impacting industry demand, we produce and carry finished goods inventory to meet the expected demand for delivery of specific product categories. If, after producing and carrying inventory in anticipation of deliveries, demand is
significantly less than expected, we may have to carry inventory for extended periods of time, or sell excess inventory at reduced prices. In either case, our profits would be reduced. Excess inventory could also result in lower production levels,
resulting in lower plant and equipment utilization and lower absorption of fixed operating costs. </P>
<P align="justify">
Alternatively we are also exposed to loss of sales opportunities and market share, if we produce insufficient inventory to satisfy our customers&#146; demand for specific product categories as a result of underestimating market demand or not meeting
production targets. Customers could seek to fulfill their product needs from competitors and reduce the amount of business they do with us.</P>
<P align="justify">
There are inherent uncertainties related to the valuation of inventory, and it is possible that market factors and other conditions underlying the valuation of inventory may change in the future and result in further reserve requirements which could
have an adverse effect on our profitability.</P>
<P align="right">
GILDAN 2009 REPORT TO SHAREHOLDERS P.34</P>

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<P align="justify">
<B><I>Fluctuations and volatility in the price of raw materials used to manufacture our products
<br>
</I></B>Cotton and polyester fibers are the primary raw materials used in the manufacture of our products. We also use chemicals, dyestuffs and trims which we purchase from a variety of suppliers. The Company purchases cotton and polyester fibers through
its yarn-spinning joint venture, and also purchases processed cotton yarn and blended yarn from outside vendors, at prices that are correlated with the price of cotton and polyester fibers. The price of cotton fluctuates and is affected by weather,
consumer demand, speculation on the commodities market, the relative valuations and fluctuations of the currencies of producer versus consumer countries and other factors that are generally unpredictable and beyond our control. In addition,
fluctuations in crude oil or petroleum prices affect our energy consumption costs and can also influence transportation costs and the cost of related items used in our business, such as polyester fibers, chemicals, dyestuffs and trims. The Company
enters into contracts in advance of delivery to establish firm prices for cotton and cotton yarn for which it will ultimately take delivery in order to mitigate the effect of price fluctuations. For future deliveries where such fixed price contracts
have been entered into, the Company will not be able to benefit from price decreases but will be protected against price increases. Conversely, in the event that we have not entered into sufficient fixed priced contracts or made other arrangements
to lock in the price of cotton yarn in advance of delivery, we will not be protected against price increases, but will be in a position to benefit from any price decreases. </P>
<P align="justify">
Without taking into account the impact of fixed price contracts, a change of &#36;0.01 per pound in cotton prices would affect the Company&#146;s annual raw material costs by approximately &#36;3.7 million, at estimated current production levels.
The ultimate effect of this change on the Company&#146;s earnings cannot be quantified, as the relationship between movements in cotton prices and movements in apparel selling prices cannot be predicted with any certainty. However, a dramatic
increase in the price of cotton could have a material adverse effect on our business, results of operations and financial condition if the increase or part of the increase could not be mitigated through higher industry selling prices. </P>
<P align="justify">
<B><I>Our dependence on key suppliers</I></B><BR>
Our ability to meet our customers&#146; needs depends on our ability to maintain an uninterrupted supply of raw materials. More specifically, we source cotton and polycotton yarns primarily from the United States from our joint venture and from a
limited number of outside suppliers. Our business, our financial condition or results of operations could be adversely affected if any of our principal yarn suppliers had difficulty sourcing cotton fibers, experience production problems,
transportation disruptions or encounter financial difficulties.
</P>
<P align="justify">
<B><I>Climate, political, social and economic risks in the countries in which we operate<br>
</I></B>The majority of our products are now manufactured in Central America, primarily in Honduras, and the Caribbean Basin. Some of the countries in which we operate have experienced political, social and economic instability in the past, and we cannot be
certain of their future stability. Recently, there has been political instability in Honduras following the removal of the President of the country on June 28, 2009. Elections, which were conducted under the observation of a number of international
parties, were held on November 29, 2009 and a new President was elected by the people of Honduras. The new President will be sworn into office in January 2010. The United States and Canada have indicated that they will recognize the results of the
November election. </P>
<P align="justify" style="margin-top: 0; margin-bottom: 5">
The following conditions or events could disrupt our supply chain, interrupt production at our facilities, increase our cost of sales or result in capital expenditures: </P>
<UL style="text-align:justify;">
<LI>
<p style="margin-top: 0; margin-bottom: 5">fire or natural disasters, such as hurricanes, floods and earthquakes;</LI>
<LI>
<p style="margin-top: 0; margin-bottom: 5">political instability, labour unrest, war or terrorism;</LI>
<LI>
<p style="margin-top: 0; margin-bottom: 5">disruptions in shipping and freight forwarding services;</LI>
<LI>
<p style="margin-top: 0; margin-bottom: 5">interruptions in the availability of basic services and infrastructure, including power and water shortages.</LI>
</UL>
<P align="justify">
<B><I>Changes to international trade regulation</I></B><BR>
There exist a number of regional trade agreements and programs, such as the Caribbean Basin Trade Partnership Act (CBTPA), the Dominican Republic-Central America-United States Free Trade Agreement (CAFTA-DR) and the Haitian Hemispheric Opportunity
through Partnership Encouragement Act (HOPE) which allow qualifying textiles and apparel from participating countries duty-free access to developed countries&#146; markets. Two of the newest programs, CAFTA-DR and HOPE, were adopted to strengthen
and develop economic relations among countries which are party to the agreement. The above-mentioned international trade legislation contains provisions that may impose tariffs, quotas and/or safeguards, as necessary. We have situated our
manufacturing facilities in strategic locations to take advantage of these trade liberalization measures, which are intended to position us to be globally competitive.</P>
<P align="right">
GILDAN 2009 REPORT TO SHAREHOLDERS P.35</P>

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    <td width="50%" valign="bottom">
    <img border="0" src="mdaht1.jpg" width="100" height="33"></td>
    <td width="50%" valign="bottom">
    <p align="right"><font size="2"><br>
MANAGEMENT&#146;S DISCUSSION AND ANALYSIS</font></td>
  </tr>
</table>
<P align="justify">
CAFTA-DR provides for the application of safeguards in the form of reinstatement of normal duties if increased imports cause or threaten to cause substantial injury to a domestic industry. Under the current legislation, a safeguard under CAFTA
&#150; DR in the form of reinstatement of normal duties may be imposed for a period of up to three years and may not extend beyond March 31, 2011. The United States implemented such a safeguard against socks imported from Honduras during the period
July 1, 2008 to December 31, 2008 inclusive, with an applicable duty rate of 5%. Under the provisions of the CAFTA-DR agreement, a safeguard, upon expiration, cannot be renewed. There can be no assurance that any changes to existing international
trade legislation, which the Company is currently relying on in conducting its manufacturing operations, other safeguards under CAFTA-DR or any other trade agreements or other developments in trade legislation would not adversely impact our
business. </P>
<P align="justify">
There also exist a number of trade agreements or trade preferences involving various countries engaged in textile manufacturing activities in which the Company currently does not have any operations. Any changes to such agreements or any new trade
agreements or legislation, which would allow duty-free and/or quota free access of apparel into developed countries, may also negatively impact our operations by enabling the Company&#146;s competitors to improve their cost structure. </P>
<P align="justify">
The textile and apparel industries of developed countries such as Canada, the United States and the European community, have historically received a relatively higher degree of trade protection than other
industries. However, since January 2005, quotas on imports of textiles and apparel from member countries of the World Trade Organization (WTO) have been eliminated, including China whose quotas on textile and apparel exports were eliminated at the
end of the 2008 calendar year. </P>
<P align="justify">
Proposed legislation in the U.S. Congress would, if adopted, extend duty-free treatment to qualifying apparel imported from lesser developed countries, including Bangladesh and Cambodia, extend duty-free or reduced duty treatment to certain
qualifying apparel imported from the Philippines, and extend duty-free treatment to certain apparel manufactured in &#147;reconstruction opportunity zones&#148; in Afghanistan and Pakistan.  Any of these proposals could negatively affect our
competitive position in the United States. U.S. domestic industry groups have threatened to seek &#147;section 337&#148; trade remedies against apparel imports from China under the terms of the U.S.-China WTO accession agreement, which could result
in higher duty rates or tariff rate quotas for Chinese apparel and improve our competitive position in affected product classifications. The likelihood that any of these measures will be adopted and the extent of their impact on our business cannot
be determined with certainty.</P>
<P align="justify">
In addition, the Company is subject to customs audits in the various countries in which it operates. Although we believe that our customs compliance programs are effective, we cannot predict the outcome of any governmental audit. </P>
<P align="justify">
<B><I>Factors or circumstances that could increase our effective income tax rate<br>
</I></B>The Company benefits from a low overall effective corporate tax rate due to the majority of its global sales, marketing, and manufacturing operations being carried out in low tax rate jurisdictions in Central America and the Caribbean Basin. The
Company&#146;s income tax filing positions and income tax provisions are based on interpretations of applicable tax laws, including income tax treaties between various countries in which the Company operates as well as underlying rules and
regulations with respect to transfer pricing. These interpretations involve judgments and estimates and may be challenged through government taxation audits that the Company is regularly subject to. Although the Company believes its tax filing
positions are sustainable, we cannot predict with certainty the outcome of any audit undertaken by taxation authorities in any jurisdictions which we operate, and the final result may vary compared to the estimates and assumptions used by management
in determining the Company&#146;s consolidated income tax provision and in valuing its income tax assets and liabilities. Depending on the ultimate outcome of any such audit, there may be a material adverse impact on the Company&#146;s financial
position, results of operations and cash flows. In addition, if the Company were to receive a tax reassessment by a taxation authority prior to the ultimate resolution of an audit, the Company could be required to submit an advance deposit on the
amount reassessed. </P>
<P align="right">
GILDAN 2009 REPORT TO SHAREHOLDERS P.36</P>

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    <td width="50%" valign="bottom">
    <p align="right"><font size="2"><br>
MANAGEMENT&#146;S DISCUSSION AND ANALYSIS</font></td>
  </tr>
</table>
<P align="justify">
The Company&#146;s overall effective income tax rate may also be adversely affected by the following: unanticipated changes to current domestic laws in the countries in which the Company operates; changes to the income tax treaties the Company
currently relies on; changes in the location of the Company&#146;s operations that would result in a higher proportion of taxable income being reported in higher tax rate jurisdictions; an increase in income tax rates; and, changes to free trade and
export processing zone rules in certain countries where the Company is currently not subject to income tax. </P>
<P align="justify">
<B><I>Compliance with environmental, health and safety regulations <br>
</I></B>We are subject to various federal, state and local environmental and occupational health and safety laws and regulations in the jurisdictions in which we operate concerning, among other things, wastewater discharges, storm water flows, and solid
waste disposal. Our manufacturing plants generate small quantities of hazardous waste, which are either recycled or disposed of off-site. As part of our Corporate Environmental Policy, we monitor, control and manage environmental issues through
policies including, but not limited to, the recycling and creation of measures for waste prevention, minimization, recovery and treatment at all stages of the production cycle including the off-site disposal of any hazardous waste. We believe that
we are in compliance in all material respects with the regulatory requirements of those jurisdictions in which our facilities are located.</P>
<P align="justify">
In line with our commitment to the environment as well as to the health and safety of our employees we incur capital and other expenditures each year that are aimed at achieving compliance with current
environmental standards. For fiscal 2009, the requirements with regard to environmental protection did not have a significant financial or operational impact on the Company's capital expenditures, earnings and competitive position. Although we do
not expect that the amount of these expenditures in the future will have a material adverse effect on our operations, financial condition or liquidity, there can be no assurance that future changes in federal, state, or local regulations,
interpretations of existing regulations or the discovery of currently unknown problems or conditions will not require substantial additional environmental remediation expenditures or manufacturing interruption that could have a material adverse
effect on our business. Similarly, the extent of our liability, if any, for past failures to comply with laws, regulations and permits applicable to our operations cannot be reasonably determined. </P>
<P align="justify">
<B><I>Our significant reliance on our information systems for our business operations
<br>
</I></B>We depend on information systems to purchase raw materials and supplies, schedule and manage production, process transactions, respond to customer inquiries, manage inventories and ship goods on a timely basis to our customers. There can be no
assurance that we will not experience operational problems with our information systems as a result of system failures, viruses, security breaches, disasters or other causes. In addition, there can be no assurance that we will be able to timely
modify or adapt our systems to meet evolving requirements for our business. Any material disruption or slowdown of our systems could cause operational delays. </P>
<P align="justify">
<B><I>Changes in our relationship with our employees or changes to domestic and foreign employment regulations
<br>
</I></B>We employ more than 19,000 employees worldwide. As a result, changes in domestic and foreign laws governing our relationships with our employees, including wage and human resources laws and regulations, fair labour standards, overtime pay,
unemployment tax rates, workers&#146; compensation rates and payroll taxes, would likely have a direct impact on our operating costs. The majority of our employees are employed outside of Canada and the United States. A significant increase in wage
rates in the countries in which we operate could have a material impact on our operating costs. <B> </B></P>
<P align="right">
GILDAN 2009 REPORT TO SHAREHOLDERS P.37</P>

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    <td width="50%" valign="bottom">
    <img border="0" src="mdaht1.jpg" width="100" height="33"></td>
    <td width="50%" valign="bottom">
    <p align="right"><font size="2"><br>
MANAGEMENT&#146;S DISCUSSION AND ANALYSIS</font></td>
  </tr>
</table>
<P align="justify">
The Company has historically been able to operate in a productive manner in all of its manufacturing facilities without experiencing labour disruptions, such as strikes or work stoppages. If labour relations were to change or deteriorate at any of
our facilities, this could adversely affect the productivity and cost structure of the Company&#146;s manufacturing operations. Our employees are currently not party to any collective bargaining agreement. There is  currently a union membership
drive underway at our Dominican Republic facility. </P>
<P align="justify">
<B><I>Negative publicity as a result of violation in labour laws or unethical labour and other business practices<br>
</I></B>We are committed to ensuring that all of our manufacturing facilities comply with our strict internal Code of Conduct, local and international laws, and the codes and principles to which we subscribe, including those of Worldwide Responsible
Accredited Production (WRAP) and the Fair Labor Association (FLA). While the majority of our manufacturing operations are conducted through company-owned facilities, we also utilize third-party contractors to complement our vertically-integrated
production. If one of our own manufacturing operations or one of our third-party contractors violates or is accused of violating local or international labour laws or other applicable regulations, or engages in labour or other practices that would
be viewed, in any market in which our products are sold, as unethical, we could suffer negative publicity which could impact our reputation and result in a loss of sales. </P>
<P align="justify">
<B><I>Our dependence on key management and our ability to attract and/or retain key personnel
<br>
</I></B>Our success depends upon the continued contributions of our key management, some of whom have unique talents and experience and would be difficult to replace in short order. The loss or interruption of the services of a key executive could have a
material adverse effect on our business during the transitional period that would be required to restructure the organization or for a successor to assume the responsibilities of the key management position. Our future success will also depend on
our ability to attract and retain key managers, sales people and others. We may not be able to attract or retain these employees, which could adversely affect our business. </P>
<P align="justify">
<B><I>Changes to and failure to comply with consumer product safety laws<br>
</I></B>Certain of our products sold in the U.S. are subject to the requirements imposed by the recently enacted Consumer Product Safety Improvement Act (CPSIA). Recent amendments to the CPSIA require independent testing and general conformity certification
for levels of lead and other harmful content in products intended for children 12 and under, and also require the placement of tracking labels on such products. We believe that we are currently in compliance with the new product safety requirements
regarding harmful content in products as well as tracking label requirements as set forth in the CPSIA. In Canada, we are subject to similar laws and regulations, the most significant of which is the Hazardous Products Act.  In the European Union,
we are also subject to product safety regulations, the most significant of which are imposed pursuant to the General Product Safety Directive.</P>
<P align="justify">
Compliance with existing and future product safety laws and regulations and enforcement policies may require that we incur capital and other costs, which may be significant, and non-compliance with applicable product safety laws and regulations may
result in fines and penalties. Our customers may also require us to meet existing and additional consumer safety requirements, which may result in our inability to provide the products in the manner required. The extent of our liability, if any, for
past failure to comply with the requirements set forth in any consumer product safety laws applicable to our operations, which are not known at this time, cannot be reasonably determined. </P>
<P align="right">
GILDAN 2009 REPORT TO SHAREHOLDERS P.38</P>

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    <td width="50%" valign="bottom">
    <img border="0" src="mdaht1.jpg" width="100" height="33"></td>
    <td width="50%" valign="bottom">
    <p align="right"><font size="2"><br>
MANAGEMENT&#146;S DISCUSSION AND ANALYSIS</font></td>
  </tr>
</table>
<P align=justify><B><U>DEFINITION AND RECONCILIATION OF NON-GAAP
MEASURES</U></B><B> </B></P>
<P align=justify>We use non-GAAP measures to assess our operating performance
and financial condition. The terms and definitions of the non-GAAP measures used
in this report and a reconciliation of each non-GAAP measure to the most
directly comparable GAAP measure are provided below. The non-GAAP measures are
presented on a consistent basis for all periods presented in this MD&amp;A.
These non-GAAP measures do not have any standardized meanings prescribed by
Canadian GAAP and are therefore unlikely to be comparable to similar measures
presented by other companies. Accordingly, they should not be considered in
isolation.</P>
<P align=justify><B>Adjusted Net Earnings and Adjusted Diluted EPS <br>
</B>To measure our performance from one period to the next, without
the variations caused by the impacts of restructuring and other charges as
discussed on page 11, management uses adjusted net earnings and adjusted diluted
earnings per share, which are calculated as net earnings and earnings per share
excluding these items. We exclude these items because they affect the
comparability of our financial results and could potentially distort the
analysis of trends in our business performance. Excluding these items does not
imply they are necessarily non-recurring. </P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD align=left>&nbsp; </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%">2009 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%">2008 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%">2007 </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="10%">&nbsp; </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%">Recast<SUP>(1</SUP></TD>
    <TD align=left width="2%" ><SUP>)</SUP> </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%">Recast<SUP>(1</SUP></TD>
    <TD align=left width="2%" ><SUP>)</SUP> </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left><I>(in $ millions,
      except per share amounts)</I> </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="10%">&nbsp;
    </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="10%">&nbsp;
    </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="10%">&nbsp;
    </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Net sales </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>1,038.3 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>1,249.7 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>964.4 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>Cost of sales </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="10%">808.0
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="10%">911.2
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="10%">705.5
    </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Gross profit </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>230.3 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>338.5 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>258.9 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>Selling, general and administrative expenses </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%">134.8 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%">142.8 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%">99.9 </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      bgColor=#e6efff>Restructuring and other charges </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="10%"
    bgColor=#e6efff>6.2 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="10%"
    bgColor=#e6efff>5.5 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="10%"
    bgColor=#e6efff>28.0 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>Operating income </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%">89.3 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%">190.2 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%">131.0 </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Financial (income) expense, net </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>(0.3</TD>
    <TD align=left width="2%"  bgColor=#e6efff>) </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>9.2 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>5.4 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>Non-controlling
      interest in consolidated joint venture </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="10%">0.1
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="10%">0.2
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="10%">1.3
    </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Earnings before income taxes </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>89.5 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>180.8 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>124.3 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>Income taxes </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
    width="10%">(5.8</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="10%">34.4
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
    width="10%">(4.8</TD>
    <TD align=left width="2%" >) </TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Net earnings and comprehensive income </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>95.3 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>146.4 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>129.1 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>Adjustments for: </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="10%">&nbsp; </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="10%">&nbsp; </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="10%">&nbsp; </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Restructuring and other charges
      <SUP>(2)</SUP> </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>6.2 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>5.5 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>28.0 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>Income tax
      recovery on restructuring and other charges <SUP>(2)</SUP> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
    width="10%">(1.8</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
    width="10%">(0.6</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
    width="10%">(0.7</TD>
    <TD align=left width="2%" >) </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left
      bgColor=#e6efff>Adjusted net earnings </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right width="10%"
    bgColor=#e6efff>99.7 </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right width="10%"
    bgColor=#e6efff>151.3 </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right width="10%"
    bgColor=#e6efff>156.4 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>Basic EPS </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%">0.79 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%">1.21 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%">1.07 </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Diluted EPS </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>0.79 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>1.20 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>1.06 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left>Adjusted diluted
      EPS </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right width="10%">0.82
    </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right width="10%">1.24
    </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right width="10%">1.29
    </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR>
    <TD align=left  bgColor=#ffffff>&nbsp;</TD>
    <TD align=right width="1%"  bgColor=#ffffff>&nbsp;</TD>
    <TD align=right width="10%"  bgColor=#ffffff>&nbsp;</TD>
    <TD align=right width="2%"  bgColor=#ffffff>&nbsp;</TD>
    <TD align=right width="1%"  bgColor=#ffffff>&nbsp;</TD>
    <TD align=right width="10%"  bgColor=#ffffff>&nbsp;</TD>
    <TD align=right width="2%"  bgColor=#ffffff>&nbsp;</TD>
    <TD align=right width="1%"  bgColor=#ffffff>&nbsp;</TD>
    <TD align=right width="10%"  bgColor=#ffffff>&nbsp;</TD>
    <TD align=right width="2%"  bgColor=#ffffff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#ffffff><I>Certain minor rounding variances exist
      between the financial statements and this summary.</I> </TD>
    <TD align=left width="1%"  bgColor=#ffffff>&nbsp;</TD>
    <TD align=left width="10%" bgColor=#ffffff>&nbsp; </TD>
    <TD align=left width="2%"  bgColor=#ffffff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#ffffff>&nbsp;</TD>
    <TD align=left width="10%" bgColor=#ffffff>&nbsp; </TD>
    <TD align=left width="2%"  bgColor=#ffffff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#ffffff>&nbsp;</TD>
    <TD align=left width="10%" bgColor=#ffffff>&nbsp; </TD>
    <TD align=left width="2%"  bgColor=#ffffff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#ffffff colSpan=10><FONT style="font-size: 9pt"><I>(1) Reflects the
      impact of the change in accounting policy as described in Note 1(b) to the
      audited Consolidated Financial Statements</I> <EM>and the changes to
      classifications in the statement of earnings and comprehensive income as
      discussed on page 8.</EM> </FONT><font style="font-size: 9pt">&nbsp;
    </font></TD>
    </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#ffffff colSpan=3><FONT style="font-size: 9pt"><I>(2) Adjustment to
      remove restructuring and other charges and the income tax effect thereon.
      See page 11.</I> </FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#ffffff>&nbsp;</TD>
    <TD align=left width="10%" bgColor=#ffffff><FONT style="font-size: 9pt">&nbsp; </FONT></TD>
    <TD align=left width="2%"  bgColor=#ffffff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#ffffff>&nbsp;</TD>
    <TD align=left width="10%" bgColor=#ffffff><font style="font-size: 9pt">&nbsp;
    </font> </TD>
    <TD align=left width="2%"
  bgColor=#ffffff>&nbsp;</TD></TR></TABLE>
<P align=justify><B>EBITDA</B><BR>EBITDA is calculated as earnings before interest, taxes and
depreciation and amortization and excludes the impact of restructuring and other
charges as discussed on page 11, as well as the non-controlling interest in
consolidated joint venture. We use EBITDA, among other measures, to assess the
operating performance of our business. We also believe this measure is commonly
used by investors and analysts to measure a company&#146;s ability to service debt
and to meet other payment obligations, or as a common valuation measurement. We
exclude depreciation and amortization expenses, which are non-cash in nature and can vary significantly depending upon accounting
methods or non-operating factors such as historical cost. Excluding these items
does not imply they are necessarily non-recurring. </P>
<P align=right>GILDAN 2009 REPORT TO SHAREHOLDERS P.39</P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>

<table border="0" cellpadding="0" cellspacing="0" style="border-collapse: collapse" bordercolor="#111111" width="100%" id="AutoNumber1">
  <tr>
    <td width="50%" valign="bottom">
    <img border="0" src="mdaht1.jpg" width="100" height="33"></td>
    <td width="50%" valign="bottom">
    <p align="right"><font size="2"><br>
MANAGEMENT&#146;S DISCUSSION AND ANALYSIS</font></td>
  </tr>
</table>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD align=left>&nbsp;</TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="10%">&nbsp;</TD>
    <TD align=left width="2%">&nbsp;</TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="10%">&nbsp;</TD>
    <TD align=left width="2%">&nbsp;</TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="10%">&nbsp;</TD>
    <TD align=left width="2%">&nbsp;</TD></TR>

  <TR vAlign=top>
    <TD align=left>&nbsp; </TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="10%">2009 </TD>
    <TD align=left width="2%">&nbsp;</TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="10%">2008 </TD>
    <TD align=left width="2%">&nbsp;</TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="10%">2007 </TD>
    <TD align=left width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; </TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=left width="10%">&nbsp; </TD>
    <TD align=left width="2%">&nbsp;</TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="10%">Recast<SUP>(1</SUP></TD>
    <TD align=left width="2%"><SUP>)</SUP> </TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="10%">Recast<SUP>(1</SUP></TD>
    <TD align=left width="2%"><SUP>)</SUP> </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left><I>(in $
      millions)</I> </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="10%">&nbsp;
    </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left
    width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="10%">&nbsp;
    </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left
    width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="10%">&nbsp;
    </TD>
    <TD align=left width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Net earnings </TD>
    <TD align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>95.3 </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>146.4 </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>129.1 </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>Restructuring and other charges <SUP>(2)</SUP> </TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="10%">6.2 </TD>
    <TD align=left width="2%">&nbsp;</TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="10%">5.5 </TD>
    <TD align=left width="2%">&nbsp;</TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="10%">28.0 </TD>
    <TD align=left width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Depreciation and amortization </TD>
    <TD align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>65.4 </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>57.1 </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>37.3 </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>Variation of depreciation included in inventories </TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="10%">(2.4</TD>
    <TD align=left width="2%">) </TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="10%">(1.0</TD>
    <TD align=left width="2%">) </TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="10%">(1.8</TD>
    <TD align=left width="2%">) </TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Interest, net </TD>
    <TD align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>1.8 </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>7.2 </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>4.9 </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>Income taxes </TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="10%">(5.8</TD>
    <TD align=left width="2%">) </TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="10%">34.4 </TD>
    <TD align=left width="2%">&nbsp;</TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="10%">(4.8</TD>
    <TD align=left width="2%">) </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      bgColor=#e6efff>Non-controlling interest of consolidated joint venture </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="10%"
    bgColor=#e6efff>0.1 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="10%"
    bgColor=#e6efff>0.2 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="10%"
    bgColor=#e6efff>1.3 </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left>EBITDA </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right width="10%">160.6
    </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left
    width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right width="10%">249.8
    </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left
    width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right width="10%">194.0
    </TD>
    <TD align=left width="2%">&nbsp;</TD></TR></TABLE>
<P align=justify style="margin-bottom: 0"><I>Certain minor rounding variances exist between the financial
statements and this summary.</I></P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0 BCLLIST>

  <TR>
    <TD vAlign=top width="5%">
    <p style="margin-top: 0"><FONT style="font-size: 9pt"><I>(1)</I> <I>Reflects the impact of the change in accounting policy
      as described in Note 1(b) to the audited Consolidated Financial
      Statements.</I></FONT></TD>
    </TR>
  <TR>
    <TD vAlign=top width="5%"><FONT style="font-size: 9pt"><I>(2)</I> <I>See page 11.</I></FONT></TD>
    </TR></TABLE>
<P align=justify><B>Free Cash Flow<br>
</B>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>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left><I>(in $
      millions)</I> </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right width="10%">2009
    </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left
    width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right width="10%">2008
    </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left
    width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right width="10%">2007
    </TD>
    <TD align=left width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Cash flows from operating activities </TD>
    <TD align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>169.2 </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>238.9 </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>88.7 </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>Cash flows used in investing activities </TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="10%">(34.2</TD>
    <TD align=left width="2%">) </TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="10%">(227.3</TD>
    <TD align=left width="2%">) </TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="10%">(132.2</TD>
    <TD align=left width="2%">) </TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Adjustments for: </TD>
    <TD align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="10%" bgColor=#e6efff>&nbsp; </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="10%" bgColor=#e6efff>&nbsp; </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="10%" bgColor=#e6efff>&nbsp; </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>Business acquisitions </TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="10%">1.2 </TD>
    <TD align=left width="2%">&nbsp;</TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="10%">126.8 </TD>
    <TD align=left width="2%">&nbsp;</TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="10%">- </TD>
    <TD align=left width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      bgColor=#e6efff>Restricted cash (reimbursed) paid related to acquisition
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="10%"
    bgColor=#e6efff>(4.0</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    bgColor=#e6efff>) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="10%"
    bgColor=#e6efff>10.0 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="10%"
    bgColor=#e6efff>- </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left>Free cash flow </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right width="10%">132.2
    </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left
    width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right width="10%">148.4
    </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left
    width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right
    width="10%">(43.5</TD>
    <TD align=left width="2%">) </TD></TR>
  <TR>
    <TD align=left >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%" >&nbsp;</TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%" >&nbsp;</TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%" >&nbsp;</TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#ffffff><I>Certain minor rounding variances exist
      between the financial statements and this summary.</I> </TD>
    <TD align=left width="1%" bgColor=#ffffff>&nbsp;</TD>
    <TD align=left width="10%" bgColor=#ffffff>&nbsp; </TD>
    <TD align=left width="2%" bgColor=#ffffff>&nbsp;</TD>
    <TD align=left width="1%" bgColor=#ffffff>&nbsp;</TD>
    <TD align=left width="10%" bgColor=#ffffff>&nbsp; </TD>
    <TD align=left width="2%" bgColor=#ffffff>&nbsp;</TD>
    <TD align=left width="1%" bgColor=#ffffff>&nbsp;</TD>
    <TD align=left width="10%" bgColor=#ffffff>&nbsp; </TD>
    <TD align=left width="2%" bgColor=#ffffff>&nbsp;</TD></TR></TABLE>
<P align=justify><B>Total Indebtedness and Cash in Excess of Total
Indebtedness/Net Indebtedness<br>
</B>We consider total indebtedness and (cash in excess of total
indebtedness) net indebtedness to be important indicators of the financial
leverage of the Company. </P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left><I>(in $
      millions)</I> </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right width="10%">2009
    </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left
    width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right width="10%">2008
    </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left
    width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right width="10%">2007
    </TD>
    <TD align=left width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgcolor="#E6EFFF">Current portion of long-term debt </TD>
    <TD align=left width="1%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD align=right width="10%" bgcolor="#E6EFFF">2.8 </TD>
    <TD align=left width="2%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD align=left width="1%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD align=right width="10%" bgcolor="#E6EFFF">3.6 </TD>
    <TD align=left width="2%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD align=left width="1%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD align=right width="10%" bgcolor="#E6EFFF">3.7 </TD>
    <TD align=left width="2%" bgcolor="#E6EFFF">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>Long-term debt </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="10%">1.6
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="10%">49.4
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="10%">56.0
    </TD>
    <TD align=left width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgcolor="#E6EFFF"><B>Total indebtedness</B> </TD>
    <TD align=left width="1%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD align=right width="10%" bgcolor="#E6EFFF">4.4 </TD>
    <TD align=left width="2%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD align=left width="1%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD align=right width="10%" bgcolor="#E6EFFF">53.0 </TD>
    <TD align=left width="2%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD align=left width="1%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD align=right width="10%" bgcolor="#E6EFFF">59.7 </TD>
    <TD align=left width="2%" bgcolor="#E6EFFF">&nbsp;</TD></TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="10%">&nbsp; </TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="10%">&nbsp; </TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="10%">&nbsp; </TD>
    <TD width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>Cash and cash
      equivalents </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
    width="10%">(99.7</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%">) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
    width="10%">(12.4</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%">) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
    width="10%">(9.3</TD>
    <TD align=left width="2%">) </TD></TR>
  <TR>
    <TD bgcolor="#E6EFFF">&nbsp; </TD>
    <TD width="1%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="10%" bgcolor="#E6EFFF">&nbsp; </TD>
    <TD width="2%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="1%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="10%" bgcolor="#E6EFFF">&nbsp; </TD>
    <TD width="2%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="1%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="10%" bgcolor="#E6EFFF">&nbsp; </TD>
    <TD width="2%" bgcolor="#E6EFFF">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left bgcolor="#E6EFFF"><B>(Cash in excess
      of total indebtedness) Net indebtedness</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left
    width="1%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right
    width="10%" bgcolor="#E6EFFF">(95.3</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="2%" bgcolor="#E6EFFF">) </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left
    width="1%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right width="10%" bgcolor="#E6EFFF">40.6
    </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left
    width="2%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left
    width="1%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right width="10%" bgcolor="#E6EFFF">50.4
    </TD>
    <TD align=left width="2%" bgcolor="#E6EFFF">&nbsp;</TD></TR>
  <TR>
    <TD align=left >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%" >&nbsp;</TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%" >&nbsp;</TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%" >&nbsp;</TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left><I>Certain minor rounding variances exist between the
      financial statements and this summary.</I> </TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=left width="10%">&nbsp; </TD>
    <TD align=left width="2%">&nbsp;</TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=left width="10%">&nbsp; </TD>
    <TD align=left width="2%">&nbsp;</TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=left width="10%">&nbsp; </TD>
    <TD align=left width="2%">&nbsp;</TD></TR></TABLE>
<P align=right>GILDAN 2009 REPORT TO SHAREHOLDERS P.40</P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>



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  <tr>
    <td width="50%" valign="bottom">
    <img border="0" src="mdaht1.jpg" width="100" height="33"></td>
    <td width="50%" valign="bottom">
    <p align="right"><font size="2"><br>
MANAGEMENT&#146;S DISCUSSION AND ANALYSIS</font></td>
  </tr>
</table>
<P align="justify">
<B><U>FORWARD-LOOKING STATEMENTS</U></B><BR>
</P>
<P align="justify">
Certain statements included in this MD&amp;A constitute &#147;forward-looking statements&#148; within the meaning of the U.S. <I>Private Securities Litigation Reform Act of 1995</I> and Canadian securities legislation and regulations, and are
subject to important risks, uncertainties and assumptions. This forward-looking information includes, amongst others, information with respect to our objectives and the strategies to achieve these objectives, as well as information with respect to
our beliefs, plans, expectations, anticipations, estimates and intentions. Forward-looking statements generally can be identified by the use of conditional or forward-looking terminology such as &#147;may&#148;, &#147;will&#148;, &#147;expect&#148;,
&#147;intend&#148;, &#147;estimate&#148;, &#147;project&#148;, &#147;assume&#148;, &#147;anticipate&#148;, &#147;plan&#148;, &#147;foresee&#148;, &#147;believe&#148; or &#147;continue&#148; or the negatives of these terms or variations of them or
similar terminology. We refer you to the Company&#146;s filings with the Canadian securities regulatory authorities and the U.S. Securities and Exchange Commission, as well as the &#147;Financial Risk Management&#148; section in this MD&amp;A
beginning on page 21, and the risks described under the section &#147;Risks and Uncertainties&#148; in this MD&amp;A beginning on page 32 for a discussion of the various factors that may affect the Company&#146;s future results. Material factors and
assumptions that were applied in drawing a conclusion or making a forecast or projection are also set out throughout this document.</P>
<P align="justify">
Forward-looking information is inherently uncertain and the results or events predicted in such forward-looking information may differ materially from actual results or events. Material factors, which could cause actual results or events to differ
materially from a conclusion, forecast or projection in such forward-looking information, include, but are not limited to: </P>
<UL style="text-align:justify;">
<LI>
<p style="margin-top: 0; margin-bottom: 5">our ability to implement our growth strategies and plans, including achieving market share gains, implementing cost reduction initiatives and completing and successfully integrating acquisitions;</LI>
<LI>
<p style="margin-top: 0; margin-bottom: 5">the intensity of competitive activity and our ability to compete effectively;</LI>
<LI>
<p style="margin-top: 0; margin-bottom: 5">adverse changes in general economic and financial conditions globally or in one or more of the markets we serve;</LI>
<LI>
<p style="margin-top: 0; margin-bottom: 5">our reliance on a small number of significant customers;</LI>
<LI>
<p style="margin-top: 0; margin-bottom: 5">the fact that our customers do not commit contractually to minimum quantity purchases;</LI>
<LI>
<p style="margin-top: 0; margin-bottom: 5">our ability to anticipate changes in consumer preferences and trends;</LI>
<LI>
<p style="margin-top: 0; margin-bottom: 5">our ability to manage inventory levels effectively in relation to changes in customer demand;</LI>
<LI>
<p style="margin-top: 0; margin-bottom: 5">fluctuations and volatility in the price of raw materials used to manufacture our products, such as cotton and polyester fibres;</LI>
<LI>
<p style="margin-top: 0; margin-bottom: 5">our dependence on key suppliers and our ability to maintain an uninterrupted supply of raw materials;</LI>
<LI>
<p style="margin-top: 0; margin-bottom: 5">the impact of climate, political, social and economic risks in the countries in which we operate, including the current political instability in Honduras;</LI>
<LI>
<p style="margin-top: 0; margin-bottom: 5">disruption to manufacturing and distribution activities due to labour disruptions, political instability, bad weather, natural disasters and other unforeseen adverse events;</LI>
<LI>
<p style="margin-top: 0; margin-bottom: 5">changes to international trade legislation that the Company is currently relying on in conducting its manufacturing operations or the application of safeguards thereunder;</LI>
<LI>
<p style="margin-top: 0; margin-bottom: 5">factors or circumstances that could increase our effective income tax rate, including the outcome of any tax audits or changes to applicable tax laws or treaties;</LI>
<LI>
<p style="margin-top: 0; margin-bottom: 5">compliance with applicable environmental, tax, trade, employment, health and safety, and other laws and regulations in the jurisdictions in which we operate;</LI>
<LI>
<p style="margin-top: 0; margin-bottom: 5">our significant reliance on computerized information systems for our business operations;</LI>
<LI>
<p style="margin-top: 0; margin-bottom: 5">changes in our relationship with our employees or changes to domestic and foreign employment laws and regulations;</LI>
<LI>
<p style="margin-top: 0; margin-bottom: 5">negative publicity as a result of violation of labour laws or unethical labour or other business practices by the Company or one of its third-party contractors;</LI>
<LI>
<p style="margin-top: 0; margin-bottom: 5">our dependence on key management and our ability to attract and retain key personnel;</LI>
<LI>
<p style="margin-top: 0; margin-bottom: 5">changes to and failure to comply with consumer product safety laws and regulations, including the recently enacted U.S. Consumer Product Safety Improvement Act;</LI>
<LI>
<p style="margin-top: 0; margin-bottom: 5">changes in accounting policies and estimates; and</LI>
<LI>
<p style="margin-top: 0; margin-bottom: 5">exposure to risks arising from financial instruments, including credit risk, liquidity risk, foreign currency risk and interest rate risk.</LI>
</UL>
<P align="right">
GILDAN 2009 REPORT TO SHAREHOLDERS P.41</P>

<HR noshade align="center" width="100%" size=5 color="black" style="page-break-after:always;">




<table border="0" cellpadding="0" cellspacing="0" style="border-collapse: collapse" bordercolor="#111111" width="100%" id="AutoNumber1">
  <tr>
    <td width="50%" valign="bottom">
    <img border="0" src="mdaht1.jpg" width="100" height="33"></td>
    <td width="50%" valign="bottom">
    <p align="right"><font size="2"><br>
MANAGEMENT&#146;S DISCUSSION AND ANALYSIS</font></td>
  </tr>
</table>
<P align="justify">
These factors may cause the Company&#146;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, may have on the Company&#146;s business. For example, they do not include
the effect of business dispositions, acquisitions, other business transactions, asset write-downs 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>
<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&#146;s expectations regarding the Company&#146;s fiscal 2010 financial performance and may not be appropriate for other purposes. Furthermore, unless otherwise stated, the forward-looking statements contained in this
report are made as of the date hereof, and we do not undertake any obligation to update publicly or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise unless required by
applicable legislation or regulation. The forward-looking statements contained in this report are expressly qualified by this cautionary statement. </P>
<P align="justify">
December 9, 2009<BR>
</P>
<P align="right">
GILDAN 2009 REPORT TO SHAREHOLDERS P.42</P>

<hr noshade size="5" color="black">


</BODY>

</HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.2
<SEQUENCE>3
<FILENAME>gildan120809exh992.htm
<TEXT>
<html>

<head>
<title>Gildan Activewear Inc.: Exhibit 99.2 - Prepared by TNT Filings Inc.</title>
</head>
<BODY style="font-size:10pt;">

<body>

<div style="border-top-style: solid; border-top-width: 1; padding-top: 1">
  <hr color="#000000" size="5">
  <p align="right"><b>Exhibit 99.2<br>
&nbsp;</b></div>




<table border="0" cellpadding="0" cellspacing="0" style="border-collapse: collapse" bordercolor="#111111" width="100%" id="AutoNumber2">
  <tr>
    <td width="50%" valign="bottom">
    <img border="0" src="gildan1.jpg" width="92" height="30"></td>
    <td width="50%" valign="bottom">
    <p align="right"><font size="2">CONSOLIDATED FINANCIAL STATEMENTS</font></td>
  </tr>
</table>
<P align=justify><B><font size="3"><br>
MANAGEMENT&#146;S RESPONSIBILITY FOR FINANCIAL REPORTING
</font> </B></P>
<P align=justify>The accompanying Consolidated Financial Statements have been
prepared by management and approved by the Board of Directors of the Company.
The Consolidated Financial Statements were prepared in accordance with Canadian
generally accepted accounting principles and, where appropriate, reflect
management&#146;s best estimates and judgments. Where alternative accounting methods
exist, management has chosen those methods deemed most appropriate in the
circumstances. Management is responsible for the accuracy, integrity and
objectivity of the Consolidated Financial Statements within reasonable limits of
materiality, and for maintaining a system of internal controls over financial
reporting as described in &#147;Management&#146;s Annual Report on Internal Control Over
Financial Reporting&#148; on page 32 of the 2009 Annual Management&#146;s Discussion and
Analysis. Management is also responsible for the preparation and presentation of
other financial information included in the 2009 Annual Report and its
consistency with the Consolidated Financial Statements. </P>
<P align=justify>The Audit and Finance Committee, which is appointed annually by
the Board of Directors and comprised exclusively of independent directors, meets
with management as well as with the independent auditors and internal auditors
to satisfy itself that management is properly discharging its financial
reporting responsibilities and to review the Consolidated Financial Statements
and the independent auditors&#146; report. The Audit and Finance Committee reports
its findings to the Board of Directors for consideration in approving the
Consolidated Financial Statements for presentation to the shareholders. The
Audit and Finance Committee considers, for review by the Board of Directors and
approval by the shareholders, the engagement or reappointment of the independent
auditors. </P>
<P align=justify>The Consolidated Financial Statements have been independently
audited by KPMG LLP, Chartered Accountants, on behalf of the shareholders, in
accordance with Canadian generally accepted auditing standards and the standards
of the Public Company Accounting Oversight Board (United States). Their report
outlines the nature of their audit and expresses their opinion on the
Consolidated Financial Statements of the Company. In addition, our auditors have
issued an attestation report on the Company&#146;s internal controls over financial
reporting as at October 4, 2009. KPMG LLP has direct access to the Audit and
Finance Committee of the Board of Directors. </P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD align=left>(Signed: Glenn J. Chamandy) </TD>
    <TD align=left width="50%">(Signed: Laurence G. Sellyn) </TD></TR>
  <TR>
    <TD align=left>&nbsp; </TD>
    <TD align=left width="50%">&nbsp; </TD></TR>
  <TR vAlign=top>
    <TD align=left>Glenn J. Chamandy </TD>
    <TD align=left width="50%">Laurence G. Sellyn </TD></TR>
  <TR vAlign=top>
    <TD align=left>President and Chief Executive Officer </TD>
    <TD align=left width="50%">Executive Vice-President, </TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; </TD>
    <TD align=left width="50%">Chief Financial and Administrative Officer
  </TD></TR>
  <TR>
    <TD align=left>&nbsp; </TD>
    <TD align=left width="50%">&nbsp; </TD></TR>
  <TR vAlign=top>
    <TD align=left>December 9, 2009 </TD>
    <TD align=left width="50%">&nbsp; </TD></TR></TABLE>
<P align=right>GILDAN 2009 REPORT TO SHAREHOLDERS P.43<BR></P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<A name=page_2></A>
<P align=right>CONSOLIDATED FINANCIAL STATEMENTS<BR></P>
<P align=justify><B><font size="3">REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
</font>
</B></P>
<P align=justify>To the Shareholders and Board of Directors of Gildan Activewear
Inc. </P>
<P align=justify>We have audited the accompanying consolidated balance sheets of
Gildan Activewear Inc. (the "Company") and subsidiaries as at October 4, 2009
and October 5, 2008 and the related consolidated statements of earnings and
comprehensive income, shareholders&#146; equity and cash flows for the years ended
October 4, 2009, October 5, 2008 and September 30, 2007. These consolidated
financial statements are the responsibility of the Company's management. Our
responsibility is to express an opinion on these consolidated financial
statements based on our audits. </P>
<P align=justify>We conducted our audits in accordance with Canadian generally
accepted auditing standards and the standards of the Public Company Accounting
Oversight Board (United States). Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audits provide a
reasonable basis for our opinion.</P>
<P align=justify>In our opinion, the consolidated financial statements referred
to above present fairly, in all material respects, the financial position of the
Company and subsidiaries as at October 4, 2009 and October 5, 2008, and the
results of their operations and their cash flows for the years ended October 4,
2009, October 5, 2008 and September 30, 2007, in conformity with Canadian
generally accepted accounting principles.</P>
<P align=justify>We have also audited, in accordance with the standards of the
Public Company Accounting Oversight Board (United States), the Company's
internal control over financial reporting as at October 4, 2009, based on
criteria established in<I> Internal Control - Integrated Framework issued by the</I>
<I>Committee of Sponsoring Organizations of the Treadway Commission</I>
(<I>COSO</I>), and our report dated December 8, 2009 expressed an unqualified
opinion on the effectiveness of the Company's internal control over financial
reporting. </P>
<P align=justify><u><br>
/s/ KPMG LLP&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<br>
<br>
</u><font FACE="Times New Roman" SIZE="2">Chartered Accountants <br>
Montr&#233;al, Canada <br>
December 8, 2009 </font>&nbsp;<br>
&nbsp;</P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0 BCLLIST>

  <TR>
    <TD vAlign=top width="1%"><FONT style="font-size: 9pt">* </FONT></TD>
    <TD><FONT style="font-size: 9pt">
      <P align=justify>CA Auditor permit no 20408</P></FONT></TD></TR>
  <TR>
    <TD width="1%"></TD>
    <TD><FONT style="font-size: 9pt">
      <P align=justify>KPMG LLP is a Canadian limited liability partnership and
      a member firm of the KPMG network of independent member firms affiliated
      with KPMG International, a Swiss cooperative. KPMG Canada provides
      services to KPMG LLP.</P></FONT></TD></TR></TABLE>
<P align=right><br>
GILDAN 2009 REPORT TO SHAREHOLDERS P.44</P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>



<A name="page_3"></A>

<P align="right">
CONSOLIDATED FINANCIAL STATEMENTS<BR>
</P>
<P align="justify">
<B>REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM </B></P>
<P align="justify">
To the Shareholders and Board of Directors of Gildan Activewear Inc. </P>
<P align="justify">
We have audited Gildan Activewear Inc.'s (the "Company") internal control over financial reporting as at October 4, 2009, based on the criteria established in <I>Internal Control - Integrated Framework</I> <I>issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO).</I> The Company's management is responsible for maintaining effective internal control over financial reporting and for its assessment of the effectiveness of internal control over financial reporting
as presented in the section entitled &#147;Management&#146;s Annual Report on Internal Control over Financial Reporting&#148; included in Management&#146;s Discussion and Analysis. Our responsibility is to express an opinion on the Company's
internal control over financial reporting based on our audit. </P>
<P align="justify">
We conducted our audit in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether effective internal
control over the financial reporting was maintained in all material respects. Our audit included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating
the design and operating effectiveness of internal control based on the assessed risk. Our audit also included performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis
for our opinion. </P>
<P align="justify">
A company's internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with
generally accepted accounting principles. A company's internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the
transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and
that receipts and expenditures of the Company are being made only in accordance with authorizations of management and directors of the Company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized
acquisition, use, or disposition of the Company's assets that could have a material effect on the financial statements. </P>
<P align="justify">
Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become
inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate. </P>
<P align="justify">
In our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as at October 4, 2009, based on criteria established in <I>Internal Control - Integrated Framework</I> <I>issued by the Committee
of Sponsoring Organizations of the Treadway Commission (COSO). </I></P>
<P align="justify">
We also have conducted our audits on the consolidated financial statements in accordance with Canadian generally accepted auditing standards and the standards of the Public Company Accounting Oversight Board (United States). Our report dated
December 8, 2009 expressed an unqualified opinion on those consolidated financial statements. </P>
<p>
<u>/s/ KPMG LLP&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<br>
</u><font FACE="Times New Roman" SIZE="2"><br>
Chartered Accountants <br>
Montr&#233;al, Canada <br>
December 8, 2009 </font>&nbsp;<br>
<br>
&nbsp;<BR>
</p>
<TABLE BCLLIST style="font-size:10pt;border-color:black;border-collapse:collapse;" cellpadding="0" cellspacing="0" width="100%" border="0">
<TR>
	<TD width="1%" valign=top>
<font style="font-size: 9pt">* 	</TD>
	<TD>
<P align="justify">CA Auditor permit no 20408</font></P>
	</TD>
</TR>
<TR>
<TD width="1%"></TD>	<TD>
<P align="justify"><font style="font-size: 9pt">KPMG LLP is a Canadian limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International, a Swiss cooperative. KPMG Canada provides services to KPMG LLP.</font></P>
	</TD>
</TR>
</TABLE>

<P align="right">
<br>
GILDAN 2009 REPORT TO SHAREHOLDERS P.45</P>

<HR noshade align="center" width="100%" size=5 color="black" style="page-break-after:always;">

<A name=page_4></A>
<table border="0" cellpadding="0" cellspacing="0" style="border-collapse: collapse" bordercolor="#111111" width="100%" id="AutoNumber3">
  <tr>
    <td width="50%" valign="bottom">
    <img border="0" src="gildan1.jpg" width="92" height="30"></td>
    <td width="50%" valign="bottom">
    <p align="right"><font size="2">CONSOLIDATED FINANCIAL STATEMENTS </font>
    </td>
  </tr>
</table>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR>
    <TD align=center colSpan=7><br>
    <BR><B>GILDAN ACTIVEWEAR INC.</B>
      <BR><B>CONSOLIDATED BALANCE SHEETS</B> <BR><B>As at October 4, 2009 and
      October 5, 2008</B> <BR><B>(in thousands of U.S. dollars)</B> </TD></TR>
  <tr>
    <TD valign="bottom">&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="1%" valign="bottom">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%" valign="bottom">&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="2%" valign="bottom">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="1%" valign="bottom">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%" valign="bottom">&nbsp; </TD>
    <TD width="2%" valign="bottom">&nbsp;</TD>
  </tr>
  <tr>
    <TD align=left valign="bottom">&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="1%" valign="bottom">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="12%" valign="bottom">2009
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="2%" valign="bottom">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="1%" valign="bottom">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="12%" valign="bottom">2008
    </TD>
    <TD align=left width="2%" valign="bottom">&nbsp;</TD>
  </tr>
  <tr>
    <TD align=left valign="bottom">&nbsp; </TD>
    <TD align=left width="1%" valign="bottom">&nbsp;</TD>
    <TD align=left width="12%" valign="bottom">&nbsp; </TD>
    <TD align=left width="2%" valign="bottom">&nbsp;</TD>
    <TD align=left width="1%" valign="bottom">&nbsp;</TD>
    <TD align=right width="12%" valign="bottom"><I>(recast-note 1(b))</I></TD>
    <TD align=left width="2%" valign="bottom">&nbsp;</TD>
  </tr>
  <tr>
    <TD valign="bottom">
    <p style="text-indent: -15pt; margin-left: 15pt">&nbsp; </TD>
    <TD width="1%" valign="bottom">&nbsp;</TD>
    <TD width="12%" valign="bottom">&nbsp; </TD>
    <TD width="2%" valign="bottom">&nbsp;</TD>
    <TD width="1%" valign="bottom">&nbsp;</TD>
    <TD width="12%" valign="bottom">&nbsp; </TD>
    <TD width="2%" valign="bottom">&nbsp;</TD>
  </tr>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff valign="bottom">
    <p style="text-indent: -15pt; margin-left: 15pt">Current assets: </TD>
    <TD align=left width="1%" bgColor=#e6efff valign="bottom">&nbsp;</TD>
    <TD align=left width="12%" bgColor=#e6efff valign="bottom">&nbsp; </TD>
    <TD align=left width="2%" bgColor=#e6efff valign="bottom">&nbsp;</TD>
    <TD align=left width="1%" bgColor=#e6efff valign="bottom">&nbsp;</TD>
    <TD align=left width="12%" bgColor=#e6efff valign="bottom">&nbsp; </TD>
    <TD align=left width="2%" bgColor=#e6efff valign="bottom">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left valign="bottom">
    <p style="text-indent: -15pt; margin-left: 15pt">&nbsp; &nbsp;Cash and cash equivalents </TD>
    <TD align=left width="1%" valign="bottom">$</TD>
    <TD align=right width="12%" valign="bottom">&nbsp;99,732 </TD>
    <TD align=left width="2%" valign="bottom">&nbsp;</TD>
    <TD align=left width="1%" valign="bottom">$</TD>
    <TD align=right width="12%" valign="bottom">&nbsp;12,357 </TD>
    <TD align=left width="2%" valign="bottom">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff valign="bottom">
    <p style="text-indent: -15pt; margin-left: 15pt">&nbsp; &nbsp;Accounts receivable </TD>
    <TD align=left width="1%" bgColor=#e6efff valign="bottom">&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff valign="bottom">166,762 </TD>
    <TD align=left width="2%" bgColor=#e6efff valign="bottom">&nbsp;</TD>
    <TD align=left width="1%" bgColor=#e6efff valign="bottom">&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff valign="bottom">215,833 </TD>
    <TD align=left width="2%" bgColor=#e6efff valign="bottom">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left valign="bottom">
    <p style="text-indent: -15pt; margin-left: 15pt">&nbsp; &nbsp;Inventories (note 3) </TD>
    <TD align=left width="1%" valign="bottom">&nbsp;</TD>
    <TD align=right width="12%" valign="bottom">301,867 </TD>
    <TD align=left width="2%" valign="bottom">&nbsp;</TD>
    <TD align=left width="1%" valign="bottom">&nbsp;</TD>
    <TD align=right width="12%" valign="bottom">316,172 </TD>
    <TD align=left width="2%" valign="bottom">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff valign="bottom">
    <p style="text-indent: -15pt; margin-left: 15pt">&nbsp; &nbsp;Prepaid expenses and deposits
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    bgColor=#e6efff valign="bottom">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="12%"
    bgColor=#e6efff valign="bottom">11,604 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    bgColor=#e6efff valign="bottom">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    bgColor=#e6efff valign="bottom">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="12%"
    bgColor=#e6efff valign="bottom">10,413 </TD>
    <TD align=left width="2%" bgColor=#e6efff valign="bottom">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left valign="bottom">
    <p style="text-indent: -15pt; margin-left: 15pt">&nbsp; </TD>
    <TD align=left width="1%" valign="bottom">&nbsp;</TD>
    <TD align=right width="12%" valign="bottom">579,965 </TD>
    <TD align=left width="2%" valign="bottom">&nbsp;</TD>
    <TD align=left width="1%" valign="bottom">&nbsp;</TD>
    <TD align=right width="12%" valign="bottom">554,775 </TD>
    <TD align=left width="2%" valign="bottom">&nbsp;</TD></TR>
  <TR>
    <TD bgColor=#e6efff valign="bottom">
    <p style="text-indent: -15pt; margin-left: 15pt">&nbsp; </TD>
    <TD width="1%" bgColor=#e6efff valign="bottom">&nbsp;</TD>
    <TD width="12%" bgColor=#e6efff valign="bottom">&nbsp; </TD>
    <TD width="2%" bgColor=#e6efff valign="bottom">&nbsp;</TD>
    <TD width="1%" bgColor=#e6efff valign="bottom">&nbsp;</TD>
    <TD width="12%" bgColor=#e6efff valign="bottom">&nbsp; </TD>
    <TD width="2%" bgColor=#e6efff valign="bottom">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left valign="bottom">
    <p style="text-indent: -15pt; margin-left: 15pt">Property, plant and equipment (note 4) </TD>
    <TD align=left width="1%" valign="bottom">&nbsp;</TD>
    <TD align=right width="12%" valign="bottom">414,538 </TD>
    <TD align=left width="2%" valign="bottom">&nbsp;</TD>
    <TD align=left width="1%" valign="bottom">&nbsp;</TD>
    <TD align=right width="12%" valign="bottom">436,516 </TD>
    <TD align=left width="2%" valign="bottom">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff valign="bottom">
    <p style="text-indent: -15pt; margin-left: 15pt">Intangible assets (note 5) </TD>
    <TD align=left width="1%" bgColor=#e6efff valign="bottom">&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff valign="bottom">56,757 </TD>
    <TD align=left width="2%" bgColor=#e6efff valign="bottom">&nbsp;</TD>
    <TD align=left width="1%" bgColor=#e6efff valign="bottom">&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff valign="bottom">59,954 </TD>
    <TD align=left width="2%" bgColor=#e6efff valign="bottom">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left valign="bottom">
    <p style="text-indent: -15pt; margin-left: 15pt">Other assets (note 6) </TD>
    <TD align=left width="1%" valign="bottom">&nbsp;</TD>
    <TD align=right width="12%" valign="bottom">9,985 </TD>
    <TD align=left width="2%" valign="bottom">&nbsp;</TD>
    <TD align=left width="1%" valign="bottom">&nbsp;</TD>
    <TD align=right width="12%" valign="bottom">17,277 </TD>
    <TD align=left width="2%" valign="bottom">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff valign="bottom">
    <p style="text-indent: -15pt; margin-left: 15pt">Assets held for sale (note 16) </TD>
    <TD align=left width="1%" bgColor=#e6efff valign="bottom">&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff valign="bottom">6,544 </TD>
    <TD align=left width="2%" bgColor=#e6efff valign="bottom">&nbsp;</TD>
    <TD align=left width="1%" bgColor=#e6efff valign="bottom">&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff valign="bottom">10,497 </TD>
    <TD align=left width="2%" bgColor=#e6efff valign="bottom">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left valign="bottom">
    <p style="text-indent: -15pt; margin-left: 15pt">Goodwill (note 2) </TD>
    <TD align=left width="1%" valign="bottom">&nbsp;</TD>
    <TD align=right width="12%" valign="bottom">6,709 </TD>
    <TD align=left width="2%" valign="bottom">&nbsp;</TD>
    <TD align=left width="1%" valign="bottom">&nbsp;</TD>
    <TD align=right width="12%" valign="bottom">6,709 </TD>
    <TD align=left width="2%" valign="bottom">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff valign="bottom">
    <p style="text-indent: -15pt; margin-left: 15pt">Future income taxes (note 14) </TD>
    <TD style="border-bottom-color:#000000" align=left width="1%"
    bgColor=#e6efff valign="bottom">&nbsp;</TD>
    <TD style="border-bottom-color:#000000" align=right width="12%"
    bgColor=#e6efff valign="bottom">7,910 </TD>
    <TD style="border-bottom-color:#000000" align=left width="2%"
    bgColor=#e6efff valign="bottom">&nbsp;</TD>
    <TD style="border-bottom-color:#000000" align=left width="1%"
    bgColor=#e6efff valign="bottom">&nbsp;</TD>
    <TD style="border-bottom-color:#000000" align=right width="12%"
    bgColor=#e6efff valign="bottom">9,283 </TD>
    <TD align=left width="2%" bgColor=#e6efff valign="bottom" style="border-bottom-style: none; border-bottom-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" style="border-right-style: none; border-right-width: medium">
    &nbsp;</TD>
    <TD style="BORDER-BOTTOM: medium none #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:solid; border-top-width:1" align=left width="1%" valign="bottom">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: medium none #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:solid; border-top-width:1" align=right
      width="12%" valign="bottom">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: medium none #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:solid; border-top-width:1" align=left
    width="2%" valign="bottom">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: medium none #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:solid; border-top-width:1" align=left width="1%" valign="bottom">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: medium none #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:solid; border-top-width:1" align=right
      width="12%" valign="bottom">&nbsp;</TD>
    <TD align=left width="2%" valign="bottom" style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left valign="bottom">
    <p style="text-indent: -15pt; margin-left: 15pt">Total assets </TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-top-style:none; border-top-width:medium" align=left width="1%" valign="bottom">$</TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-top-style:none; border-top-width:medium" align=right
      width="12%" valign="bottom">&nbsp;1,082,408 </TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-top-style:none; border-top-width:medium" align=left
    width="2%" valign="bottom">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-top-style:none; border-top-width:medium" align=left width="1%" valign="bottom">$</TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-top-style:none; border-top-width:medium" align=right
      width="12%" valign="bottom">&nbsp;1,095,011 </TD>
    <TD align=left width="2%" valign="bottom" style="border-top-style: none; border-top-width: medium">&nbsp;</TD></TR>
  <TR>
    <TD bgColor=#e6efff valign="bottom">
    <p style="text-indent: -15pt; margin-left: 15pt">&nbsp; </TD>
    <TD width="1%" bgColor=#e6efff valign="bottom">&nbsp;</TD>
    <TD width="12%" bgColor=#e6efff valign="bottom">&nbsp; </TD>
    <TD width="2%" bgColor=#e6efff valign="bottom">&nbsp;</TD>
    <TD width="1%" bgColor=#e6efff valign="bottom">&nbsp;</TD>
    <TD width="12%" bgColor=#e6efff valign="bottom">&nbsp; </TD>
    <TD width="2%" bgColor=#e6efff valign="bottom">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left valign="bottom">
    <p style="text-indent: -15pt; margin-left: 15pt">Current liabilities: </TD>
    <TD align=left width="1%" valign="bottom">&nbsp;</TD>
    <TD align=left width="12%" valign="bottom">&nbsp; </TD>
    <TD align=left width="2%" valign="bottom">&nbsp;</TD>
    <TD align=left width="1%" valign="bottom">&nbsp;</TD>
    <TD align=left width="12%" valign="bottom">&nbsp; </TD>
    <TD align=left width="2%" valign="bottom">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff valign="bottom">
    <p style="text-indent: -15pt; margin-left: 15pt">&nbsp; &nbsp;Accounts payable and accrued
      liabilities </TD>
    <TD align=left width="1%" bgColor=#e6efff valign="bottom">$</TD>
    <TD align=right width="12%" bgColor=#e6efff valign="bottom">&nbsp;124,378 </TD>
    <TD align=left width="2%" bgColor=#e6efff valign="bottom">&nbsp;</TD>
    <TD align=left width="1%" bgColor=#e6efff valign="bottom">$</TD>
    <TD align=right width="12%" bgColor=#e6efff valign="bottom">&nbsp;149,344 </TD>
    <TD align=left width="2%" bgColor=#e6efff valign="bottom">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left valign="bottom">
    <p style="text-indent: -15pt; margin-left: 15pt">&nbsp; &nbsp;Income taxes payable </TD>
    <TD align=left width="1%" valign="bottom">&nbsp;</TD>
    <TD align=right width="12%" valign="bottom">11,822 </TD>
    <TD align=left width="2%" valign="bottom">&nbsp;</TD>
    <TD align=left width="1%" valign="bottom">&nbsp;</TD>
    <TD align=right width="12%" valign="bottom">46,627 </TD>
    <TD align=left width="2%" valign="bottom">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff valign="bottom">
    <p style="text-indent: -15pt; margin-left: 15pt">&nbsp; &nbsp;Current portion of long-term
      debt (note 8) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    bgColor=#e6efff valign="bottom">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="12%"
    bgColor=#e6efff valign="bottom">2,803 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    bgColor=#e6efff valign="bottom">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    bgColor=#e6efff valign="bottom">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="12%"
    bgColor=#e6efff valign="bottom">3,556 </TD>
    <TD align=left width="2%" bgColor=#e6efff valign="bottom">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left valign="bottom">
    <p style="text-indent: -15pt; margin-left: 15pt">&nbsp; </TD>
    <TD align=left width="1%" valign="bottom">&nbsp;</TD>
    <TD align=right width="12%" valign="bottom">139,003 </TD>
    <TD align=left width="2%" valign="bottom">&nbsp;</TD>
    <TD align=left width="1%" valign="bottom">&nbsp;</TD>
    <TD align=right width="12%" valign="bottom">199,527 </TD>
    <TD align=left width="2%" valign="bottom">&nbsp;</TD></TR>
  <TR>
    <TD bgColor=#e6efff valign="bottom">
    <p style="text-indent: -15pt; margin-left: 15pt">&nbsp; </TD>
    <TD width="1%" bgColor=#e6efff valign="bottom">&nbsp;</TD>
    <TD width="12%" bgColor=#e6efff valign="bottom">&nbsp; </TD>
    <TD width="2%" bgColor=#e6efff valign="bottom">&nbsp;</TD>
    <TD width="1%" bgColor=#e6efff valign="bottom">&nbsp;</TD>
    <TD width="12%" bgColor=#e6efff valign="bottom">&nbsp; </TD>
    <TD width="2%" bgColor=#e6efff valign="bottom">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left valign="bottom">
    <p style="text-indent: -15pt; margin-left: 15pt">Long-term debt (note 8) </TD>
    <TD align=left width="1%" valign="bottom">&nbsp;</TD>
    <TD align=right width="12%" valign="bottom">1,584 </TD>
    <TD align=left width="2%" valign="bottom">&nbsp;</TD>
    <TD align=left width="1%" valign="bottom">&nbsp;</TD>
    <TD align=right width="12%" valign="bottom">49,448 </TD>
    <TD align=left width="2%" valign="bottom">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff valign="bottom">
    <p style="text-indent: -15pt; margin-left: 15pt">Future income taxes (note 14) </TD>
    <TD align=left width="1%" bgColor=#e6efff valign="bottom">&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff valign="bottom">23,764 </TD>
    <TD align=left width="2%" bgColor=#e6efff valign="bottom">&nbsp;</TD>
    <TD align=left width="1%" bgColor=#e6efff valign="bottom">&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff valign="bottom">27,331 </TD>
    <TD align=left width="2%" bgColor=#e6efff valign="bottom">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left valign="bottom">
    <p style="text-indent: -15pt; margin-left: 15pt">Non-controlling interest in consolidated joint venture </TD>
    <TD align=left width="1%" valign="bottom">&nbsp;</TD>
    <TD align=right width="12%" valign="bottom">7,272 </TD>
    <TD align=left width="2%" valign="bottom">&nbsp;</TD>
    <TD align=left width="1%" valign="bottom">&nbsp;</TD>
    <TD align=right width="12%" valign="bottom">7,162 </TD>
    <TD align=left width="2%" valign="bottom">&nbsp;</TD></TR>
  <TR>
    <TD bgColor=#e6efff valign="bottom">
    <p style="text-indent: -15pt; margin-left: 15pt">&nbsp; </TD>
    <TD width="1%" bgColor=#e6efff valign="bottom">&nbsp;</TD>
    <TD width="12%" bgColor=#e6efff valign="bottom">&nbsp; </TD>
    <TD width="2%" bgColor=#e6efff valign="bottom">&nbsp;</TD>
    <TD width="1%" bgColor=#e6efff valign="bottom">&nbsp;</TD>
    <TD width="12%" bgColor=#e6efff valign="bottom">&nbsp; </TD>
    <TD width="2%" bgColor=#e6efff valign="bottom">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left valign="bottom">
    <p style="text-indent: -15pt; margin-left: 15pt">Commitments and contingencies (note 12) </TD>
    <TD align=left width="1%" valign="bottom">&nbsp;</TD>
    <TD align=left width="12%" valign="bottom">&nbsp; </TD>
    <TD align=left width="2%" valign="bottom">&nbsp;</TD>
    <TD align=left width="1%" valign="bottom">&nbsp;</TD>
    <TD align=left width="12%" valign="bottom">&nbsp; </TD>
    <TD align=left width="2%" valign="bottom">&nbsp;</TD></TR>
  <TR>
    <TD bgColor=#e6efff valign="bottom">
    <p style="text-indent: -15pt; margin-left: 15pt">&nbsp; </TD>
    <TD width="1%" bgColor=#e6efff valign="bottom">&nbsp;</TD>
    <TD width="12%" bgColor=#e6efff valign="bottom">&nbsp; </TD>
    <TD width="2%" bgColor=#e6efff valign="bottom">&nbsp;</TD>
    <TD width="1%" bgColor=#e6efff valign="bottom">&nbsp;</TD>
    <TD width="12%" bgColor=#e6efff valign="bottom">&nbsp; </TD>
    <TD width="2%" bgColor=#e6efff valign="bottom">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left valign="bottom">
    <p style="text-indent: -15pt; margin-left: 15pt">Shareholders' equity (note 9): </TD>
    <TD align=left width="1%" valign="bottom">&nbsp;</TD>
    <TD align=left width="12%" valign="bottom">&nbsp; </TD>
    <TD align=left width="2%" valign="bottom">&nbsp;</TD>
    <TD align=left width="1%" valign="bottom">&nbsp;</TD>
    <TD align=left width="12%" valign="bottom">&nbsp; </TD>
    <TD align=left width="2%" valign="bottom">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff valign="bottom">
    <p style="text-indent: -15pt; margin-left: 15pt">&nbsp; &nbsp;Share capital </TD>
    <TD align=left width="1%" bgColor=#e6efff valign="bottom">&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff valign="bottom">93,042 </TD>
    <TD align=left width="2%" bgColor=#e6efff valign="bottom">&nbsp;</TD>
    <TD align=left width="1%" bgColor=#e6efff valign="bottom">&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff valign="bottom">89,377 </TD>
    <TD align=left width="2%" bgColor=#e6efff valign="bottom">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left valign="bottom">
    <p style="text-indent: -15pt; margin-left: 15pt">&nbsp; &nbsp;Contributed surplus </TD>
    <TD align=left width="1%" valign="bottom">&nbsp;</TD>
    <TD align=right width="12%" valign="bottom">6,976 </TD>
    <TD align=left width="2%" valign="bottom">&nbsp;</TD>
    <TD align=left width="1%" valign="bottom">&nbsp;</TD>
    <TD align=right width="12%" valign="bottom">6,728 </TD>
    <TD align=left width="2%" valign="bottom">&nbsp;</TD></TR>
  <TR>
    <TD bgColor=#e6efff valign="bottom">
    <p style="text-indent: -15pt; margin-left: 15pt">&nbsp; </TD>
    <TD width="1%" bgColor=#e6efff valign="bottom">&nbsp;</TD>
    <TD width="12%" bgColor=#e6efff valign="bottom">&nbsp; </TD>
    <TD width="2%" bgColor=#e6efff valign="bottom">&nbsp;</TD>
    <TD width="1%" bgColor=#e6efff valign="bottom">&nbsp;</TD>
    <TD width="12%" bgColor=#e6efff valign="bottom">&nbsp; </TD>
    <TD width="2%" bgColor=#e6efff valign="bottom">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left valign="bottom">
    <p style="text-indent: -15pt; margin-left: 15pt">&nbsp; &nbsp;Retained earnings </TD>
    <TD align=left width="1%" valign="bottom">&nbsp;</TD>
    <TD align=right width="12%" valign="bottom">784,519 </TD>
    <TD align=left width="2%" valign="bottom">&nbsp;</TD>
    <TD align=left width="1%" valign="bottom">&nbsp;</TD>
    <TD align=right width="12%" valign="bottom">689,190 </TD>
    <TD align=left width="2%" valign="bottom">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff valign="bottom">
    <p style="text-indent: -15pt; margin-left: 15pt">&nbsp; &nbsp;Accumulated other
      comprehensive income </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    bgColor=#e6efff valign="bottom">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="12%"
    bgColor=#e6efff valign="bottom">26,248 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    bgColor=#e6efff valign="bottom">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    bgColor=#e6efff valign="bottom">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="12%"
    bgColor=#e6efff valign="bottom">26,248 </TD>
    <TD align=left width="2%" bgColor=#e6efff valign="bottom">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left valign="bottom">
    <p style="text-indent: -15pt; margin-left: 15pt">&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="1%" valign="bottom">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="12%" valign="bottom">810,767 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="2%" valign="bottom">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="1%" valign="bottom">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="12%" valign="bottom">715,438 </TD>
    <TD align=left width="2%" valign="bottom">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff valign="bottom">
    <p style="text-indent: -15pt; margin-left: 15pt">&nbsp; </TD>
    <TD align=left width="1%" bgColor=#e6efff valign="bottom">&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff valign="bottom">910,785 </TD>
    <TD align=left width="2%" bgColor=#e6efff valign="bottom">&nbsp;</TD>
    <TD align=left width="1%" bgColor=#e6efff valign="bottom">&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff valign="bottom">811,543 </TD>
    <TD align=left width="2%" bgColor=#e6efff valign="bottom">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: medium none #000000; " align=left width="1%" valign="bottom">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: medium none #000000; " align=right
      width="12%" valign="bottom">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: medium none #000000; " align=left
    width="2%" valign="bottom">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: medium none #000000; " align=left width="1%" valign="bottom">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: medium none #000000; " align=right
      width="12%" valign="bottom">&nbsp;</TD>
    <TD align=left width="2%" valign="bottom">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left valign="bottom">Total liabilities and shareholders' equity </TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-top-style:none; border-top-width:medium" align=left width="1%" valign="bottom">$</TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-top-style:none; border-top-width:medium" align=right
      width="12%" valign="bottom">&nbsp;1,082,408 </TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-top-style:none; border-top-width:medium" align=left
    width="2%" valign="bottom">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-top-style:none; border-top-width:medium" align=left width="1%" valign="bottom">$</TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-top-style:none; border-top-width:medium" align=right
      width="12%" valign="bottom">&nbsp;1,095,011 </TD>
    <TD align=left width="2%" valign="bottom">&nbsp;</TD></TR></TABLE>
<p><BR>
</p>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD align=left>See accompanying notes to consolidated financial
      statements. </TD>
    <TD align=left width="50%">&nbsp; </TD></TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD width="50%">&nbsp; </TD></TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD width="50%">&nbsp; </TD></TR>
  <TR vAlign=top>
    <TD align=left>On behalf of the Board of Directors: </TD>
    <TD align=left width="50%">&nbsp; </TD></TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD width="50%">&nbsp; </TD></TR>
  <TR vAlign=top>
    <TD align=left>(Signed: Glenn J. Chamandy) </TD>
    <TD align=left width="50%">(Signed: William D. Anderson) </TD></TR>
  <TR vAlign=top>
    <TD align=left>Director </TD>
    <TD align=left width="50%">Director </TD></TR>
  <TR vAlign=top>
    <TD align=left><B>Glenn J. Chamandy</B> </TD>
    <TD align=left width="50%"><B>William D. Anderson</B> </TD></TR></TABLE>
<P align=right>GILDAN 2009 REPORT TO SHAREHOLDERS P.46</P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<table border="0" cellpadding="0" cellspacing="0" style="border-collapse: collapse" bordercolor="#111111" width="100%" id="AutoNumber4">
  <tr>
    <td width="50%" valign="bottom">
    <img border="0" src="gildan1.jpg" width="92" height="30"></td>
    <td width="50%" valign="bottom">
    <p align="right"><font size="2">CONSOLIDATED FINANCIAL STATEMENTS </font>
    </td>
  </tr>
</table>
<P align=center><B>GILDAN ACTIVEWEAR INC. <BR>CONSOLIDATED STATEMENTS OF
EARNINGS AND COMPREHENSIVE INCOME<BR>Years ended October 4, 2009, October
5, 2008 and September 30, 2007 <BR>(in thousands of U.S. dollars, except per
share data) <BR></B></P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD align=left valign="bottom">&nbsp; </TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-top-style:solid; border-top-width:1" align=left
    width="1%" valign="bottom">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-top-style:solid; border-top-width:1" align=right width="10%" valign="bottom">2009
    </TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-top-style:solid; border-top-width:1" align=left
    width="2%" valign="bottom">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-top-style:solid; border-top-width:1" align=left
    width="1%" valign="bottom">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-top-style:solid; border-top-width:1" align=right width="10%" valign="bottom">2008
    </TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-top-style:solid; border-top-width:1" align=left
    width="2%" valign="bottom">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-top-style:solid; border-top-width:1" align=left
    width="1%" valign="bottom">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-top-style:solid; border-top-width:1" align=right width="10%" valign="bottom">2007
    </TD>
    <TD align=left width="2%" valign="bottom">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left valign="bottom">&nbsp; </TD>
    <TD align=left width="1%" valign="bottom">&nbsp;</TD>
    <TD align=left width="10%" valign="bottom">&nbsp; </TD>
    <TD align=left width="2%" valign="bottom">&nbsp;</TD>
    <TD align=left width="1%" valign="bottom">&nbsp;</TD>
    <TD align=right width="10%" valign="bottom"><EM>(recast-note 1)</EM> </TD>
    <TD align=left width="2%" valign="bottom"></TD>
    <TD align=left width="1%" valign="bottom">&nbsp;</TD>
    <TD align=right width="10%" valign="bottom"><EM>(recast-note 1)</EM> </TD>
    <TD align=left width="2%" valign="bottom"></TD></TR>
  <TR>
    <TD align=left bgcolor="#E6EFFF" valign="bottom">
    <p style="text-indent: -15pt; margin-left: 15pt">&nbsp;</TD>
    <TD align=left width="1%" bgcolor="#E6EFFF" valign="bottom">&nbsp;</TD>
    <TD align=left width="10%" bgcolor="#E6EFFF" valign="bottom">&nbsp;</TD>
    <TD align=left width="2%" bgcolor="#E6EFFF" valign="bottom">&nbsp;</TD>
    <TD align=left width="1%" bgcolor="#E6EFFF" valign="bottom">&nbsp;</TD>
    <TD align=right width="10%" bgcolor="#E6EFFF" valign="bottom">&nbsp;</TD>
    <TD align=left width="2%" bgcolor="#E6EFFF" valign="bottom">&nbsp;</TD>
    <TD align=left width="1%" bgcolor="#E6EFFF" valign="bottom">&nbsp;</TD>
    <TD align=right width="10%" bgcolor="#E6EFFF" valign="bottom">&nbsp;</TD>
    <TD align=left width="2%" bgcolor="#E6EFFF" valign="bottom">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgcolor="#E6EFFF" valign="bottom">
    <p style="text-indent: -15pt; margin-left: 15pt">Net sales </TD>
    <TD align=left width="1%" bgcolor="#E6EFFF" valign="bottom">$</TD>
    <TD align=right width="10%" bgcolor="#E6EFFF" valign="bottom">&nbsp;1,038,319 </TD>
    <TD align=left width="2%" bgcolor="#E6EFFF" valign="bottom">&nbsp;</TD>
    <TD align=left width="1%" bgcolor="#E6EFFF" valign="bottom">$</TD>
    <TD align=right width="10%" bgcolor="#E6EFFF" valign="bottom">&nbsp;1,249,711 </TD>
    <TD align=left width="2%" bgcolor="#E6EFFF" valign="bottom">&nbsp;</TD>
    <TD align=left width="1%" bgcolor="#E6EFFF" valign="bottom">$</TD>
    <TD align=right width="10%" bgcolor="#E6EFFF" valign="bottom">&nbsp;964,429 </TD>
    <TD align=left width="2%" bgcolor="#E6EFFF" valign="bottom">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left valign="bottom">
    <p style="text-indent: -15pt; margin-left: 15pt">Cost of sales </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="1%" valign="bottom">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="10%" valign="bottom">807,986 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="2%" valign="bottom">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="1%" valign="bottom">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="10%" valign="bottom">911,242 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="2%" valign="bottom">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="1%" valign="bottom">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="10%" valign="bottom">705,546 </TD>
    <TD align=left width="2%" valign="bottom">&nbsp;</TD></TR>
  <TR>
    <TD align=left bgcolor="#E6EFFF" valign="bottom">
    <p style="text-indent: -15pt; margin-left: 15pt">&nbsp;</TD>
    <TD align=left width="1%" bgcolor="#E6EFFF" valign="bottom">&nbsp;</TD>
    <TD align=right width="10%" bgcolor="#E6EFFF" valign="bottom">&nbsp;</TD>
    <TD align=left width="2%" bgcolor="#E6EFFF" valign="bottom">&nbsp;</TD>
    <TD align=left width="1%" bgcolor="#E6EFFF" valign="bottom">&nbsp;</TD>
    <TD align=right width="10%" bgcolor="#E6EFFF" valign="bottom">&nbsp;</TD>
    <TD align=left width="2%" bgcolor="#E6EFFF" valign="bottom">&nbsp;</TD>
    <TD align=left width="1%" bgcolor="#E6EFFF" valign="bottom">&nbsp;</TD>
    <TD align=right width="10%" bgcolor="#E6EFFF" valign="bottom">&nbsp;</TD>
    <TD align=left width="2%" bgcolor="#E6EFFF" valign="bottom">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgcolor="#E6EFFF" valign="bottom">
    <p style="text-indent: -15pt; margin-left: 15pt">Gross profit </TD>
    <TD align=left width="1%" bgcolor="#E6EFFF" valign="bottom">&nbsp;</TD>
    <TD align=right width="10%" bgcolor="#E6EFFF" valign="bottom">230,333 </TD>
    <TD align=left width="2%" bgcolor="#E6EFFF" valign="bottom">&nbsp;</TD>
    <TD align=left width="1%" bgcolor="#E6EFFF" valign="bottom">&nbsp;</TD>
    <TD align=right width="10%" bgcolor="#E6EFFF" valign="bottom">338,469 </TD>
    <TD align=left width="2%" bgcolor="#E6EFFF" valign="bottom">&nbsp;</TD>
    <TD align=left width="1%" bgcolor="#E6EFFF" valign="bottom">&nbsp;</TD>
    <TD align=right width="10%" bgcolor="#E6EFFF" valign="bottom">258,883 </TD>
    <TD align=left width="2%" bgcolor="#E6EFFF" valign="bottom">&nbsp;</TD></TR>
  <TR>
    <TD align=left valign="bottom">
    <p style="text-indent: -15pt; margin-left: 15pt">&nbsp;</TD>
    <TD align=left width="1%" valign="bottom">&nbsp;</TD>
    <TD align=right width="10%" valign="bottom">&nbsp;</TD>
    <TD align=left width="2%" valign="bottom">&nbsp;</TD>
    <TD align=left width="1%" valign="bottom">&nbsp;</TD>
    <TD align=right width="10%" valign="bottom">&nbsp;</TD>
    <TD align=left width="2%" valign="bottom">&nbsp;</TD>
    <TD align=left width="1%" valign="bottom">&nbsp;</TD>
    <TD align=right width="10%" valign="bottom">&nbsp;</TD>
    <TD align=left width="2%" valign="bottom">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left valign="bottom">
    <p style="text-indent: -15pt; margin-left: 15pt">Selling, general and administrative expenses </TD>
    <TD align=left width="1%" valign="bottom">&nbsp;</TD>
    <TD align=right width="10%" valign="bottom">134,785 </TD>
    <TD align=left width="2%" valign="bottom">&nbsp;</TD>
    <TD align=left width="1%" valign="bottom">&nbsp;</TD>
    <TD align=right width="10%" valign="bottom">142,760 </TD>
    <TD align=left width="2%" valign="bottom">&nbsp;</TD>
    <TD align=left width="1%" valign="bottom">&nbsp;</TD>
    <TD align=right width="10%" valign="bottom">99,926 </TD>
    <TD align=left width="2%" valign="bottom">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgcolor="#E6EFFF" valign="bottom">
    <p style="text-indent: -15pt; margin-left: 15pt">Restructuring and other charges (note 16) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="1%" bgcolor="#E6EFFF" valign="bottom">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="10%" bgcolor="#E6EFFF" valign="bottom">6,199
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="2%" bgcolor="#E6EFFF" valign="bottom">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="1%" bgcolor="#E6EFFF" valign="bottom">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="10%" bgcolor="#E6EFFF" valign="bottom">5,489
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="2%" bgcolor="#E6EFFF" valign="bottom">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="1%" bgcolor="#E6EFFF" valign="bottom">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="10%" bgcolor="#E6EFFF" valign="bottom">28,012 </TD>
    <TD align=left width="2%" bgcolor="#E6EFFF" valign="bottom">&nbsp;</TD></TR>
  <TR>
    <TD align=left valign="bottom">
    <p style="text-indent: -15pt; margin-left: 15pt">&nbsp;</TD>
    <TD align=left width="1%" valign="bottom">&nbsp;</TD>
    <TD align=right width="10%" valign="bottom">&nbsp;</TD>
    <TD align=left width="2%" valign="bottom">&nbsp;</TD>
    <TD align=left width="1%" valign="bottom">&nbsp;</TD>
    <TD align=right width="10%" valign="bottom">&nbsp;</TD>
    <TD align=left width="2%" valign="bottom">&nbsp;</TD>
    <TD align=left width="1%" valign="bottom">&nbsp;</TD>
    <TD align=right width="10%" valign="bottom">&nbsp;</TD>
    <TD align=left width="2%" valign="bottom">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left valign="bottom">
    <p style="text-indent: -15pt; margin-left: 15pt">Operating income </TD>
    <TD align=left width="1%" valign="bottom">&nbsp;</TD>
    <TD align=right width="10%" valign="bottom">89,349 </TD>
    <TD align=left width="2%" valign="bottom">&nbsp;</TD>
    <TD align=left width="1%" valign="bottom">&nbsp;</TD>
    <TD align=right width="10%" valign="bottom">190,220 </TD>
    <TD align=left width="2%" valign="bottom">&nbsp;</TD>
    <TD align=left width="1%" valign="bottom">&nbsp;</TD>
    <TD align=right width="10%" valign="bottom">130,945 </TD>
    <TD align=left width="2%" valign="bottom">&nbsp;</TD></TR>
  <TR>
    <TD align=left bgcolor="#E6EFFF" valign="bottom">
    <p style="text-indent: -15pt; margin-left: 15pt">&nbsp;</TD>
    <TD align=left width="1%" bgcolor="#E6EFFF" valign="bottom">&nbsp;</TD>
    <TD align=right width="10%" bgcolor="#E6EFFF" valign="bottom">&nbsp;</TD>
    <TD align=left width="2%" bgcolor="#E6EFFF" valign="bottom">&nbsp;</TD>
    <TD align=left width="1%" bgcolor="#E6EFFF" valign="bottom">&nbsp;</TD>
    <TD align=right width="10%" bgcolor="#E6EFFF" valign="bottom">&nbsp;</TD>
    <TD align=left width="2%" bgcolor="#E6EFFF" valign="bottom">&nbsp;</TD>
    <TD align=left width="1%" bgcolor="#E6EFFF" valign="bottom">&nbsp;</TD>
    <TD align=right width="10%" bgcolor="#E6EFFF" valign="bottom">&nbsp;</TD>
    <TD align=left width="2%" bgcolor="#E6EFFF" valign="bottom">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgcolor="#E6EFFF" valign="bottom">
    <p style="text-indent: -15pt; margin-left: 15pt">Financial (income) expense, net (note 19(b)) </TD>
    <TD align=left width="1%" bgcolor="#E6EFFF" valign="bottom">&nbsp;</TD>
    <TD align=right width="10%" bgcolor="#E6EFFF" valign="bottom">(304</TD>
    <TD align=left width="2%" bgcolor="#E6EFFF" valign="bottom">) </TD>
    <TD align=left width="1%" bgcolor="#E6EFFF" valign="bottom">&nbsp;</TD>
    <TD align=right width="10%" bgcolor="#E6EFFF" valign="bottom">9,240 </TD>
    <TD align=left width="2%" bgcolor="#E6EFFF" valign="bottom">&nbsp;</TD>
    <TD align=left width="1%" bgcolor="#E6EFFF" valign="bottom">&nbsp;</TD>
    <TD align=right width="10%" bgcolor="#E6EFFF" valign="bottom">5,420 </TD>
    <TD align=left width="2%" bgcolor="#E6EFFF" valign="bottom">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left valign="bottom">
    <p style="text-indent: -15pt; margin-left: 15pt">Non-controlling interest in consolidated joint venture </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="1%" valign="bottom">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="10%" valign="bottom">110
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="2%" valign="bottom">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="1%" valign="bottom">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="10%" valign="bottom">230
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="2%" valign="bottom">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="1%" valign="bottom">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="10%" valign="bottom">1,278
    </TD>
    <TD align=left width="2%" valign="bottom">&nbsp;</TD></TR>
  <TR>
    <TD align=left bgcolor="#E6EFFF" valign="bottom">
    <p style="text-indent: -15pt; margin-left: 15pt">&nbsp;</TD>
    <TD align=left width="1%" bgcolor="#E6EFFF" valign="bottom">&nbsp;</TD>
    <TD align=right width="10%" bgcolor="#E6EFFF" valign="bottom">&nbsp;</TD>
    <TD align=left width="2%" bgcolor="#E6EFFF" valign="bottom">&nbsp;</TD>
    <TD align=left width="1%" bgcolor="#E6EFFF" valign="bottom">&nbsp;</TD>
    <TD align=right width="10%" bgcolor="#E6EFFF" valign="bottom">&nbsp;</TD>
    <TD align=left width="2%" bgcolor="#E6EFFF" valign="bottom">&nbsp;</TD>
    <TD align=left width="1%" bgcolor="#E6EFFF" valign="bottom">&nbsp;</TD>
    <TD align=right width="10%" bgcolor="#E6EFFF" valign="bottom">&nbsp;</TD>
    <TD align=left width="2%" bgcolor="#E6EFFF" valign="bottom">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgcolor="#E6EFFF" valign="bottom">
    <p style="text-indent: -15pt; margin-left: 15pt">Earnings before income taxes </TD>
    <TD align=left width="1%" bgcolor="#E6EFFF" valign="bottom">&nbsp;</TD>
    <TD align=right width="10%" bgcolor="#E6EFFF" valign="bottom">89,543 </TD>
    <TD align=left width="2%" bgcolor="#E6EFFF" valign="bottom">&nbsp;</TD>
    <TD align=left width="1%" bgcolor="#E6EFFF" valign="bottom">&nbsp;</TD>
    <TD align=right width="10%" bgcolor="#E6EFFF" valign="bottom">180,750 </TD>
    <TD align=left width="2%" bgcolor="#E6EFFF" valign="bottom">&nbsp;</TD>
    <TD align=left width="1%" bgcolor="#E6EFFF" valign="bottom">&nbsp;</TD>
    <TD align=right width="10%" bgcolor="#E6EFFF" valign="bottom">124,247 </TD>
    <TD align=left width="2%" bgcolor="#E6EFFF" valign="bottom">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left valign="bottom">
    <p style="text-indent: -15pt; margin-left: 15pt">Income taxes (note 14) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="1%" valign="bottom">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
    width="10%" valign="bottom">(5,786</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%" valign="bottom">) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="1%" valign="bottom">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="10%" valign="bottom">34,400 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="2%" valign="bottom">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="1%" valign="bottom">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
    width="10%" valign="bottom">(4,815</TD>
    <TD align=left width="2%" valign="bottom">) </TD></TR>
  <TR>
    <TD align=left bgcolor="#E6EFFF" valign="bottom">
    <p style="text-indent: -15pt; margin-left: 15pt">&nbsp;</TD>
    <TD align=left width="1%" bgcolor="#E6EFFF" valign="bottom">&nbsp;</TD>
    <TD align=right width="10%" bgcolor="#E6EFFF" valign="bottom">&nbsp;</TD>
    <TD align=left width="2%" bgcolor="#E6EFFF" valign="bottom">&nbsp;</TD>
    <TD align=left width="1%" bgcolor="#E6EFFF" valign="bottom">&nbsp;</TD>
    <TD align=right width="10%" bgcolor="#E6EFFF" valign="bottom">&nbsp;</TD>
    <TD align=left width="2%" bgcolor="#E6EFFF" valign="bottom">&nbsp;</TD>
    <TD align=left width="1%" bgcolor="#E6EFFF" valign="bottom">&nbsp;</TD>
    <TD align=right width="10%" bgcolor="#E6EFFF" valign="bottom">&nbsp;</TD>
    <TD align=left width="2%" bgcolor="#E6EFFF" valign="bottom">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgcolor="#E6EFFF" valign="bottom">
    <p style="text-indent: -15pt; margin-left: 15pt">Net earnings and comprehensive income </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%" bgcolor="#E6EFFF" valign="bottom">$</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right
      width="10%" bgcolor="#E6EFFF" valign="bottom">&nbsp;95,329 </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left
    width="2%" bgcolor="#E6EFFF" valign="bottom">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%" bgcolor="#E6EFFF" valign="bottom">$</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right
      width="10%" bgcolor="#E6EFFF" valign="bottom">&nbsp;146,350 </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left
    width="2%" bgcolor="#E6EFFF" valign="bottom">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%" bgcolor="#E6EFFF" valign="bottom">$</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right
      width="10%" bgcolor="#E6EFFF" valign="bottom">&nbsp;129,062 </TD>
    <TD align=left width="2%" bgcolor="#E6EFFF" valign="bottom">&nbsp;</TD></TR>
  <TR>
    <TD valign="bottom">
    <p style="text-indent: -15pt; margin-left: 15pt">&nbsp; </TD>
    <TD width="1%" valign="bottom">&nbsp;</TD>
    <TD width="10%" valign="bottom">&nbsp; </TD>
    <TD width="2%" valign="bottom">&nbsp;</TD>
    <TD width="1%" valign="bottom">&nbsp;</TD>
    <TD width="10%" valign="bottom">&nbsp; </TD>
    <TD width="2%" valign="bottom">&nbsp;</TD>
    <TD width="1%" valign="bottom">&nbsp;</TD>
    <TD width="10%" valign="bottom">&nbsp; </TD>
    <TD width="2%" valign="bottom">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left valign="bottom">
    <p style="text-indent: -15pt; margin-left: 15pt">Earnings per share (note 15): </TD>
    <TD align=left width="1%" valign="bottom">&nbsp;</TD>
    <TD align=left width="10%" valign="bottom">&nbsp; </TD>
    <TD align=left width="2%" valign="bottom">&nbsp;</TD>
    <TD align=left width="1%" valign="bottom">&nbsp;</TD>
    <TD align=left width="10%" valign="bottom">&nbsp; </TD>
    <TD align=left width="2%" valign="bottom">&nbsp;</TD>
    <TD align=left width="1%" valign="bottom">&nbsp;</TD>
    <TD align=left width="10%" valign="bottom">&nbsp; </TD>
    <TD align=left width="2%" valign="bottom">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgcolor="#E6EFFF" valign="bottom">
    <p style="text-indent: -15pt; margin-left: 15pt">&nbsp; &nbsp; &nbsp; &nbsp;Basic EPS </TD>
    <TD align=left width="1%" bgcolor="#E6EFFF" valign="bottom">$</TD>
    <TD align=right width="10%" bgcolor="#E6EFFF" valign="bottom">&nbsp;0.79 </TD>
    <TD align=left width="2%" bgcolor="#E6EFFF" valign="bottom">&nbsp;</TD>
    <TD align=left width="1%" bgcolor="#E6EFFF" valign="bottom">$</TD>
    <TD align=right width="10%" bgcolor="#E6EFFF" valign="bottom">&nbsp;1.21 </TD>
    <TD align=left width="2%" bgcolor="#E6EFFF" valign="bottom">&nbsp;</TD>
    <TD align=left width="1%" bgcolor="#E6EFFF" valign="bottom">$</TD>
    <TD align=right width="10%" bgcolor="#E6EFFF" valign="bottom">&nbsp;1.07 </TD>
    <TD align=left width="2%" bgcolor="#E6EFFF" valign="bottom">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left valign="bottom">
    <p style="text-indent: -15pt; margin-left: 15pt">&nbsp; &nbsp; &nbsp; &nbsp;Diluted EPS </TD>
    <TD align=left width="1%" valign="bottom">&nbsp;</TD>
    <TD align=right width="10%" valign="bottom">0.79 </TD>
    <TD align=left width="2%" valign="bottom">&nbsp;</TD>
    <TD align=left width="1%" valign="bottom">&nbsp;</TD>
    <TD align=right width="10%" valign="bottom">1.20 </TD>
    <TD align=left width="2%" valign="bottom">&nbsp;</TD>
    <TD align=left width="1%" valign="bottom">&nbsp;</TD>
    <TD align=right width="10%" valign="bottom">1.06 </TD>
    <TD align=left width="2%" valign="bottom">&nbsp;</TD></TR>
  <TR>
    <TD valign="bottom">
    <p style="text-indent: -15pt; margin-left: 15pt">&nbsp; </TD>
    <TD width="1%" valign="bottom">&nbsp;</TD>
    <TD width="10%" valign="bottom">&nbsp; </TD>
    <TD width="2%" valign="bottom">&nbsp;</TD>
    <TD width="1%" valign="bottom">&nbsp;</TD>
    <TD width="10%" valign="bottom">&nbsp; </TD>
    <TD width="2%" valign="bottom">&nbsp;</TD>
    <TD width="1%" valign="bottom">&nbsp;</TD>
    <TD width="10%" valign="bottom">&nbsp; </TD>
    <TD width="2%" valign="bottom">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left colSpan=3 valign="bottom">See accompanying notes to consolidated financial
      statements. </TD>
    <TD align=left width="2%" valign="bottom">&nbsp;</TD>
    <TD align=left width="1%" valign="bottom">&nbsp;</TD>
    <TD align=left width="10%" valign="bottom">&nbsp; </TD>
    <TD align=left width="2%" valign="bottom">&nbsp;</TD>
    <TD align=left width="1%" valign="bottom">&nbsp;</TD>
    <TD align=left width="10%" valign="bottom">&nbsp; </TD>
    <TD align=left width="2%" valign="bottom">&nbsp;</TD></TR></TABLE>
<P align=right>GILDAN 2009 REPORT TO SHAREHOLDERS P.47</P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<table border="0" cellpadding="0" cellspacing="0" style="border-collapse: collapse" bordercolor="#111111" width="100%" id="AutoNumber5">
  <tr>
    <td width="50%" valign="bottom">
    <img border="0" src="gildan1.jpg" width="92" height="30"></td>
    <td width="50%" valign="bottom">
    <p align="right"><font size="2">CONSOLIDATED FINANCIAL STATEMENTS </font>
    </td>
  </tr>
</table>
<p>
<BR>
</p>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 8pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR>
    <TD>&nbsp; </TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="7%">&nbsp; </TD>
    <TD width="2%" >&nbsp;</TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="7%">&nbsp; </TD>
    <TD width="2%" >&nbsp;</TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="7%">&nbsp; </TD>
    <TD width="2%" >&nbsp;</TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="7%">&nbsp; </TD>
    <TD width="2%" >&nbsp;</TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="7%">&nbsp; </TD>
    <TD width="2%" >&nbsp;</TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="7%">&nbsp; </TD>
    <TD width="2%" >&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD align=center colSpan=19><FONT size=2><B>GILDAN ACTIVEWEAR
      INC. </B></FONT><BR><FONT size=2><B>CONSOLIDATED STATEMENTS OF
      SHAREHOLDERS&#146; EQUITY </B></FONT><BR><FONT size=2><B>Years ended October 4,
      2009, October 5, 2008 and September 30, 2007 </B></FONT><BR><FONT
      size=2><B>(in thousands or thousands of U.S. dollars) </B></FONT></TD></TR>
  <TR>
    <TD vAlign=bottom>&nbsp; </TD>
    <TD vAlign=bottom width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=center width="7%">&nbsp; </TD>
    <TD vAlign=bottom align=center width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=center width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=center width="7%">&nbsp; </TD>
    <TD vAlign=bottom align=center width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=center width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=center width="7%">&nbsp; </TD>
    <TD vAlign=bottom align=center width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=center width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=center width="7%">&nbsp; </TD>
    <TD vAlign=bottom align=center width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=center width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=center width="7%">&nbsp; </TD>
    <TD vAlign=bottom align=center width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=center width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=center width="7%">&nbsp; </TD>
    <TD vAlign=bottom align=center width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD vAlign=bottom align=left>&nbsp; </TD>
    <TD vAlign=bottom align=center width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=center width="7%">&nbsp; </TD>
    <TD vAlign=bottom align=center width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=center width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=center width="7%">&nbsp; </TD>
    <TD vAlign=bottom align=center width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=center width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=center width="7%">&nbsp; </TD>
    <TD vAlign=bottom align=center width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=center width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=center width="7%">Accumulated </TD>
    <TD vAlign=bottom align=center width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=center width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=center width="7%">&nbsp; </TD>
    <TD vAlign=bottom align=center width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=center width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=center width="7%">&nbsp; </TD>
    <TD vAlign=bottom align=center width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD vAlign=bottom align=left>&nbsp; </TD>
    <TD vAlign=bottom align=center width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=center width="7%">&nbsp; </TD>
    <TD vAlign=bottom align=center width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=center width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=center width="7%">&nbsp; </TD>
    <TD vAlign=bottom align=center width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=center width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=center width="7%">&nbsp; </TD>
    <TD vAlign=bottom align=center width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=center width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=center width="7%">other </TD>
    <TD vAlign=bottom align=center width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=center width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=center width="7%">&nbsp; </TD>
    <TD vAlign=bottom align=center width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=center width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=center width="7%">Total </TD>
    <TD vAlign=bottom align=center width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD vAlign=bottom align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=center
    width="20%"  colSpan=6>Share capital </TD>
    <TD vAlign=bottom align=center width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=center width="7%">Contributed&nbsp; </TD>
    <TD vAlign=bottom align=center width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=center width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=center width="7%"
      >comprehensive&nbsp;&nbsp;</TD>
    <TD vAlign=bottom align=center width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=center width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=center width="7%"
    >Retained&nbsp;&nbsp;</TD>
    <TD vAlign=bottom align=center width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=center width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=center width="7%"
    >shareholders'&nbsp;</TD>
    <TD vAlign=bottom align=center width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD vAlign=bottom align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=center
    width="7%">Number </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=center
    width="2%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=center
    width="1%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=center
    width="7%">Amount </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=center
    width="2%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=center
    width="1%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=center
    width="7%">surplus </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=center
    width="2%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=center
    width="1%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=center
    width="7%">income </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=center
    width="2%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=center
    width="1%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=center
    width="7%">earnings </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=center
    width="2%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=center
    width="1%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=center
    width="7%">equity </TD>
    <TD vAlign=bottom align=center width="2%" >&nbsp;</TD></TR>
  <TR>
    <TD vAlign=bottom align=left bgcolor="#E6EFFF" >
    <p style="text-indent: -15pt; margin-left: 15pt">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgcolor="#E6EFFF" >&nbsp;</TD>
    <TD vAlign=bottom align=center width="7%" bgcolor="#E6EFFF" >&nbsp;</TD>
    <TD vAlign=bottom align=center width="2%" bgcolor="#E6EFFF" >&nbsp;</TD>
    <TD vAlign=bottom align=center width="1%" bgcolor="#E6EFFF" >&nbsp;</TD>
    <TD vAlign=bottom align=center width="7%" bgcolor="#E6EFFF" >&nbsp;</TD>
    <TD vAlign=bottom align=center width="2%" bgcolor="#E6EFFF" >&nbsp;</TD>
    <TD vAlign=bottom align=center width="1%" bgcolor="#E6EFFF" >&nbsp;</TD>
    <TD vAlign=bottom align=center width="7%" bgcolor="#E6EFFF" >&nbsp;</TD>
    <TD vAlign=bottom align=center width="2%" bgcolor="#E6EFFF" >&nbsp;</TD>
    <TD vAlign=bottom align=center width="1%" bgcolor="#E6EFFF" >&nbsp;</TD>
    <TD vAlign=bottom align=center width="7%" bgcolor="#E6EFFF" >&nbsp;</TD>
    <TD vAlign=bottom align=center width="2%" bgcolor="#E6EFFF" >&nbsp;</TD>
    <TD vAlign=bottom align=center width="1%" bgcolor="#E6EFFF" >&nbsp;</TD>
    <TD vAlign=bottom align=center width="7%" bgcolor="#E6EFFF" >&nbsp;</TD>
    <TD vAlign=bottom align=center width="2%" bgcolor="#E6EFFF" >&nbsp;</TD>
    <TD vAlign=bottom align=center width="1%" bgcolor="#E6EFFF" >&nbsp;</TD>
    <TD vAlign=bottom align=center width="7%" bgcolor="#E6EFFF" >&nbsp;</TD>
    <TD vAlign=bottom align=center width="2%" bgcolor="#E6EFFF" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD vAlign=bottom align=left bgcolor="#E6EFFF">
    <p style="text-indent: -15pt; margin-left: 15pt">Balance, October 1, 2006, as previously
      reported </TD>
    <TD vAlign=bottom align=left width="1%" bgcolor="#E6EFFF" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="7%" bgcolor="#E6EFFF">120,228 </TD>
    <TD vAlign=bottom align=left width="2%" bgcolor="#E6EFFF" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgcolor="#E6EFFF" >$</TD>
    <TD vAlign=bottom align=right width="7%" bgcolor="#E6EFFF">&nbsp;86,584 </TD>
    <TD vAlign=bottom align=left width="2%" bgcolor="#E6EFFF" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgcolor="#E6EFFF" >$</TD>
    <TD vAlign=bottom align=right width="7%" bgcolor="#E6EFFF">&nbsp;2,365 </TD>
    <TD vAlign=bottom align=left width="2%" bgcolor="#E6EFFF" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgcolor="#E6EFFF" >$</TD>
    <TD vAlign=bottom align=right width="7%" bgcolor="#E6EFFF">&nbsp;26,248 </TD>
    <TD vAlign=bottom align=left width="2%" bgcolor="#E6EFFF" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgcolor="#E6EFFF" >$</TD>
    <TD vAlign=bottom align=right width="7%" bgcolor="#E6EFFF">&nbsp;415,368 </TD>
    <TD vAlign=bottom align=left width="2%" bgcolor="#E6EFFF" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgcolor="#E6EFFF" >$</TD>
    <TD vAlign=bottom align=right width="7%" bgcolor="#E6EFFF">&nbsp;530,565 </TD>
    <TD vAlign=bottom align=left width="2%" bgcolor="#E6EFFF" >&nbsp;</TD></TR>
  <TR>
    <TD vAlign=bottom>
    <p style="text-indent: -15pt; margin-left: 15pt">&nbsp; </TD>
    <TD vAlign=bottom align=right width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="7%">&nbsp; </TD>
    <TD vAlign=bottom align=right width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="7%">&nbsp; </TD>
    <TD vAlign=bottom align=right width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="7%">&nbsp; </TD>
    <TD vAlign=bottom align=right width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="7%">&nbsp; </TD>
    <TD vAlign=bottom align=right width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="7%">&nbsp; </TD>
    <TD vAlign=bottom align=right width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="7%">&nbsp; </TD>
    <TD vAlign=bottom align=right width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD vAlign=bottom align=left>
    <p style="text-indent: -15pt; margin-left: 15pt">Cumulative effect of adopting a new
      accounting policy (note 1(b)) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="7%">- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="7%">- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="7%">- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="7%">- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="7%">(1,590</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%" >) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="7%">(1,590</TD>
    <TD vAlign=bottom align=left width="2%" >) </TD></TR>
  <TR>
    <TD vAlign=bottom bgcolor="#E6EFFF">
    <p style="text-indent: -15pt; margin-left: 15pt">&nbsp; </TD>
    <TD vAlign=bottom align=right width="1%" bgcolor="#E6EFFF" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="7%" bgcolor="#E6EFFF">&nbsp; </TD>
    <TD vAlign=bottom align=right width="2%" bgcolor="#E6EFFF" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="1%" bgcolor="#E6EFFF" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="7%" bgcolor="#E6EFFF">&nbsp; </TD>
    <TD vAlign=bottom align=right width="2%" bgcolor="#E6EFFF" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="1%" bgcolor="#E6EFFF" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="7%" bgcolor="#E6EFFF">&nbsp; </TD>
    <TD vAlign=bottom align=right width="2%" bgcolor="#E6EFFF" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="1%" bgcolor="#E6EFFF" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="7%" bgcolor="#E6EFFF">&nbsp; </TD>
    <TD vAlign=bottom align=right width="2%" bgcolor="#E6EFFF" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="1%" bgcolor="#E6EFFF" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="7%" bgcolor="#E6EFFF">&nbsp; </TD>
    <TD vAlign=bottom align=right width="2%" bgcolor="#E6EFFF" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="1%" bgcolor="#E6EFFF" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="7%" bgcolor="#E6EFFF">&nbsp; </TD>
    <TD vAlign=bottom align=right width="2%" bgcolor="#E6EFFF" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD vAlign=bottom align=left bgcolor="#E6EFFF">
    <p style="text-indent: -15pt; margin-left: 15pt">Balance, October 1, 2006, as recast </TD>
    <TD vAlign=bottom align=left width="1%" bgcolor="#E6EFFF" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="7%" bgcolor="#E6EFFF">120,228 </TD>
    <TD vAlign=bottom align=left width="2%" bgcolor="#E6EFFF" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgcolor="#E6EFFF" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="7%" bgcolor="#E6EFFF">86,584 </TD>
    <TD vAlign=bottom align=left width="2%" bgcolor="#E6EFFF" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgcolor="#E6EFFF" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="7%" bgcolor="#E6EFFF">2,365 </TD>
    <TD vAlign=bottom align=left width="2%" bgcolor="#E6EFFF" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgcolor="#E6EFFF" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="7%" bgcolor="#E6EFFF">26,248 </TD>
    <TD vAlign=bottom align=left width="2%" bgcolor="#E6EFFF" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgcolor="#E6EFFF" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="7%" bgcolor="#E6EFFF">413,778 </TD>
    <TD vAlign=bottom align=left width="2%" bgcolor="#E6EFFF" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgcolor="#E6EFFF" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="7%" bgcolor="#E6EFFF">528,975 </TD>
    <TD vAlign=bottom align=left width="2%" bgcolor="#E6EFFF" >&nbsp;</TD></TR>
  <TR>
    <TD vAlign=bottom>
    <p style="text-indent: -15pt; margin-left: 15pt">&nbsp; </TD>
    <TD vAlign=bottom align=right width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="7%">&nbsp; </TD>
    <TD vAlign=bottom align=right width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="7%">&nbsp; </TD>
    <TD vAlign=bottom align=right width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="7%">&nbsp; </TD>
    <TD vAlign=bottom align=right width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="7%">&nbsp; </TD>
    <TD vAlign=bottom align=right width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="7%">&nbsp; </TD>
    <TD vAlign=bottom align=right width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="7%">&nbsp; </TD>
    <TD vAlign=bottom align=right width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD vAlign=bottom align=left>
    <p style="text-indent: -15pt; margin-left: 15pt">Stock-based compensation related to stock
      options and Treasury restricted share units </TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="7%">- </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="7%">- </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="7%">1,814 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="7%">- </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="7%">- </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="7%">1,814 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD vAlign=bottom align=left bgcolor="#E6EFFF">
    <p style="text-indent: -15pt; margin-left: 15pt">Shares issued under employee share purchase
      plan </TD>
    <TD vAlign=bottom align=left width="1%" bgcolor="#E6EFFF" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="7%" bgcolor="#E6EFFF">18 </TD>
    <TD vAlign=bottom align=left width="2%" bgcolor="#E6EFFF" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgcolor="#E6EFFF" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="7%" bgcolor="#E6EFFF">530 </TD>
    <TD vAlign=bottom align=left width="2%" bgcolor="#E6EFFF" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgcolor="#E6EFFF" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="7%" bgcolor="#E6EFFF">- </TD>
    <TD vAlign=bottom align=left width="2%" bgcolor="#E6EFFF" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgcolor="#E6EFFF" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="7%" bgcolor="#E6EFFF">- </TD>
    <TD vAlign=bottom align=left width="2%" bgcolor="#E6EFFF" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgcolor="#E6EFFF" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="7%" bgcolor="#E6EFFF">- </TD>
    <TD vAlign=bottom align=left width="2%" bgcolor="#E6EFFF" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgcolor="#E6EFFF" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="7%" bgcolor="#E6EFFF">530 </TD>
    <TD vAlign=bottom align=left width="2%" bgcolor="#E6EFFF" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD vAlign=bottom align=left>
    <p style="text-indent: -15pt; margin-left: 15pt">Shares issued pursuant to exercise of stock
      options </TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="7%">149 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="7%">786 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="7%">- </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="7%">- </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="7%">- </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="7%">786 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD vAlign=bottom align=left bgcolor="#E6EFFF">
    <p style="text-indent: -15pt; margin-left: 15pt">Shares issued pursuant to vesting of Treasury
      restricted share units </TD>
    <TD vAlign=bottom align=left width="1%" bgcolor="#E6EFFF" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="7%" bgcolor="#E6EFFF">27 </TD>
    <TD vAlign=bottom align=left width="2%" bgcolor="#E6EFFF" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgcolor="#E6EFFF" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="7%" bgcolor="#E6EFFF">226 </TD>
    <TD vAlign=bottom align=left width="2%" bgcolor="#E6EFFF" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgcolor="#E6EFFF" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="7%" bgcolor="#E6EFFF">(226</TD>
    <TD vAlign=bottom align=left width="2%" bgcolor="#E6EFFF" >) </TD>
    <TD vAlign=bottom align=left width="1%" bgcolor="#E6EFFF" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="7%" bgcolor="#E6EFFF">- </TD>
    <TD vAlign=bottom align=left width="2%" bgcolor="#E6EFFF" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgcolor="#E6EFFF" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="7%" bgcolor="#E6EFFF">- </TD>
    <TD vAlign=bottom align=left width="2%" bgcolor="#E6EFFF" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgcolor="#E6EFFF" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="7%" bgcolor="#E6EFFF">- </TD>
    <TD vAlign=bottom align=left width="2%" bgcolor="#E6EFFF" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD vAlign=bottom align=left>
    <p style="text-indent: -15pt; margin-left: 15pt">Share repurchases </TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="7%">(3</TD>
    <TD vAlign=bottom align=left width="2%" >) </TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="7%">(65</TD>
    <TD vAlign=bottom align=left width="2%" >) </TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="7%">- </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="7%">- </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="7%">- </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="7%">(65</TD>
    <TD vAlign=bottom align=left width="2%" >) </TD></TR>
  <TR vAlign=top>
    <TD vAlign=bottom align=left bgcolor="#E6EFFF">
    <p style="text-indent: -15pt; margin-left: 15pt">Net earnings, recast (note 1(b)) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" bgcolor="#E6EFFF" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="7%" bgcolor="#E6EFFF">- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%" bgcolor="#E6EFFF" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" bgcolor="#E6EFFF" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="7%" bgcolor="#E6EFFF">- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%" bgcolor="#E6EFFF" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" bgcolor="#E6EFFF" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="7%" bgcolor="#E6EFFF">- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%" bgcolor="#E6EFFF" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" bgcolor="#E6EFFF" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="7%" bgcolor="#E6EFFF">- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%" bgcolor="#E6EFFF" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" bgcolor="#E6EFFF" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="7%" bgcolor="#E6EFFF">129,062 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%" bgcolor="#E6EFFF" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" bgcolor="#E6EFFF" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="7%" bgcolor="#E6EFFF">129,062 </TD>
    <TD vAlign=bottom align=left width="2%" bgcolor="#E6EFFF" >&nbsp;</TD></TR>
  <TR>
    <TD vAlign=bottom>
    <p style="text-indent: -15pt; margin-left: 15pt">&nbsp; </TD>
    <TD vAlign=bottom align=right width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="7%">&nbsp; </TD>
    <TD vAlign=bottom align=right width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="7%">&nbsp; </TD>
    <TD vAlign=bottom align=right width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="7%">&nbsp; </TD>
    <TD vAlign=bottom align=right width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="7%">&nbsp; </TD>
    <TD vAlign=bottom align=right width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="7%">&nbsp; </TD>
    <TD vAlign=bottom align=right width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="7%">&nbsp; </TD>
    <TD vAlign=bottom align=right width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD vAlign=bottom align=left>
    <p style="text-indent: -15pt; margin-left: 15pt">Balance, September 30, 2007, as recast </TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="7%">120,419 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >$</TD>
    <TD vAlign=bottom align=right width="7%">&nbsp;88,061 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >$</TD>
    <TD vAlign=bottom align=right width="7%">&nbsp;3,953 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >$</TD>
    <TD vAlign=bottom align=right width="7%">&nbsp;26,248 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >$</TD>
    <TD vAlign=bottom align=right width="7%">&nbsp;542,840 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >$</TD>
    <TD vAlign=bottom align=right width="7%">&nbsp;661,102 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD></TR>
  <TR>
    <TD vAlign=bottom bgcolor="#E6EFFF">
    <p style="text-indent: -15pt; margin-left: 15pt">&nbsp; </TD>
    <TD vAlign=bottom align=right width="1%" bgcolor="#E6EFFF" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="7%" bgcolor="#E6EFFF">&nbsp; </TD>
    <TD vAlign=bottom align=right width="2%" bgcolor="#E6EFFF" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="1%" bgcolor="#E6EFFF" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="7%" bgcolor="#E6EFFF">&nbsp; </TD>
    <TD vAlign=bottom align=right width="2%" bgcolor="#E6EFFF" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="1%" bgcolor="#E6EFFF" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="7%" bgcolor="#E6EFFF">&nbsp; </TD>
    <TD vAlign=bottom align=right width="2%" bgcolor="#E6EFFF" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="1%" bgcolor="#E6EFFF" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="7%" bgcolor="#E6EFFF">&nbsp; </TD>
    <TD vAlign=bottom align=right width="2%" bgcolor="#E6EFFF" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="1%" bgcolor="#E6EFFF" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="7%" bgcolor="#E6EFFF">&nbsp; </TD>
    <TD vAlign=bottom align=right width="2%" bgcolor="#E6EFFF" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="1%" bgcolor="#E6EFFF" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="7%" bgcolor="#E6EFFF">&nbsp; </TD>
    <TD vAlign=bottom align=right width="2%" bgcolor="#E6EFFF" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD vAlign=bottom align=left bgcolor="#E6EFFF">
    <p style="text-indent: -15pt; margin-left: 15pt">Stock-based compensation related to stock
      options and Treasury restricted share units </TD>
    <TD vAlign=bottom align=left width="1%" bgcolor="#E6EFFF" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="7%" bgcolor="#E6EFFF">- </TD>
    <TD vAlign=bottom align=left width="2%" bgcolor="#E6EFFF" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgcolor="#E6EFFF" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="7%" bgcolor="#E6EFFF">- </TD>
    <TD vAlign=bottom align=left width="2%" bgcolor="#E6EFFF" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgcolor="#E6EFFF" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="7%" bgcolor="#E6EFFF">2,965 </TD>
    <TD vAlign=bottom align=left width="2%" bgcolor="#E6EFFF" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgcolor="#E6EFFF" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="7%" bgcolor="#E6EFFF">- </TD>
    <TD vAlign=bottom align=left width="2%" bgcolor="#E6EFFF" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgcolor="#E6EFFF" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="7%" bgcolor="#E6EFFF">- </TD>
    <TD vAlign=bottom align=left width="2%" bgcolor="#E6EFFF" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgcolor="#E6EFFF" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="7%" bgcolor="#E6EFFF">2,965 </TD>
    <TD vAlign=bottom align=left width="2%" bgcolor="#E6EFFF" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD vAlign=bottom align=left>
    <p style="text-indent: -15pt; margin-left: 15pt">Shares issued under employee share purchase
      plan </TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="7%">21 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="7%">720 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="7%">- </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="7%">- </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="7%">- </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="7%">720 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD vAlign=bottom align=left bgcolor="#E6EFFF">
    <p style="text-indent: -15pt; margin-left: 15pt">Shares issued pursuant to exercise of stock
      options </TD>
    <TD vAlign=bottom align=left width="1%" bgcolor="#E6EFFF" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="7%" bgcolor="#E6EFFF">81 </TD>
    <TD vAlign=bottom align=left width="2%" bgcolor="#E6EFFF" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgcolor="#E6EFFF" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="7%" bgcolor="#E6EFFF">418 </TD>
    <TD vAlign=bottom align=left width="2%" bgcolor="#E6EFFF" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgcolor="#E6EFFF" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="7%" bgcolor="#E6EFFF">- </TD>
    <TD vAlign=bottom align=left width="2%" bgcolor="#E6EFFF" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgcolor="#E6EFFF" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="7%" bgcolor="#E6EFFF">- </TD>
    <TD vAlign=bottom align=left width="2%" bgcolor="#E6EFFF" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgcolor="#E6EFFF" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="7%" bgcolor="#E6EFFF">- </TD>
    <TD vAlign=bottom align=left width="2%" bgcolor="#E6EFFF" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgcolor="#E6EFFF" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="7%" bgcolor="#E6EFFF">418 </TD>
    <TD vAlign=bottom align=left width="2%" bgcolor="#E6EFFF" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD vAlign=bottom align=left>
    <p style="text-indent: -15pt; margin-left: 15pt">Shares issued pursuant to vesting of Treasury
      restricted share units </TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="7%">15 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="7%">190 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="7%">(190</TD>
    <TD vAlign=bottom align=left width="2%" >) </TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="7%">- </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="7%">- </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="7%">- </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD vAlign=bottom align=left bgcolor="#E6EFFF">
    <p style="text-indent: -15pt; margin-left: 15pt">Share repurchases </TD>
    <TD vAlign=bottom align=left width="1%" bgcolor="#E6EFFF" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="7%" bgcolor="#E6EFFF">- </TD>
    <TD vAlign=bottom align=left width="2%" bgcolor="#E6EFFF" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgcolor="#E6EFFF" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="7%" bgcolor="#E6EFFF">(12</TD>
    <TD vAlign=bottom align=left width="2%" bgcolor="#E6EFFF" >) </TD>
    <TD vAlign=bottom align=left width="1%" bgcolor="#E6EFFF" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="7%" bgcolor="#E6EFFF">- </TD>
    <TD vAlign=bottom align=left width="2%" bgcolor="#E6EFFF" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgcolor="#E6EFFF" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="7%" bgcolor="#E6EFFF">- </TD>
    <TD vAlign=bottom align=left width="2%" bgcolor="#E6EFFF" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgcolor="#E6EFFF" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="7%" bgcolor="#E6EFFF">- </TD>
    <TD vAlign=bottom align=left width="2%" bgcolor="#E6EFFF" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgcolor="#E6EFFF" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="7%" bgcolor="#E6EFFF">(12</TD>
    <TD vAlign=bottom align=left width="2%" bgcolor="#E6EFFF" >) </TD></TR>
  <TR vAlign=top>
    <TD vAlign=bottom align=left>
    <p style="text-indent: -15pt; margin-left: 15pt">Net earnings, recast (note 1(b)) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="7%">- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="7%">- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="7%">- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="7%">- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="7%">146,350 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="7%">146,350 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD></TR>
  <TR>
    <TD vAlign=bottom bgcolor="#E6EFFF">
    <p style="text-indent: -15pt; margin-left: 15pt">&nbsp; </TD>
    <TD vAlign=bottom align=right width="1%" bgcolor="#E6EFFF" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="7%" bgcolor="#E6EFFF">&nbsp; </TD>
    <TD vAlign=bottom align=right width="2%" bgcolor="#E6EFFF" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="1%" bgcolor="#E6EFFF" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="7%" bgcolor="#E6EFFF">&nbsp; </TD>
    <TD vAlign=bottom align=right width="2%" bgcolor="#E6EFFF" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="1%" bgcolor="#E6EFFF" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="7%" bgcolor="#E6EFFF">&nbsp; </TD>
    <TD vAlign=bottom align=right width="2%" bgcolor="#E6EFFF" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="1%" bgcolor="#E6EFFF" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="7%" bgcolor="#E6EFFF">&nbsp; </TD>
    <TD vAlign=bottom align=right width="2%" bgcolor="#E6EFFF" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="1%" bgcolor="#E6EFFF" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="7%" bgcolor="#E6EFFF">&nbsp; </TD>
    <TD vAlign=bottom align=right width="2%" bgcolor="#E6EFFF" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="1%" bgcolor="#E6EFFF" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="7%" bgcolor="#E6EFFF">&nbsp; </TD>
    <TD vAlign=bottom align=right width="2%" bgcolor="#E6EFFF" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD vAlign=bottom align=left bgcolor="#E6EFFF">
    <p style="text-indent: -15pt; margin-left: 15pt">Balance, October 5, 2008, as recast </TD>
    <TD vAlign=bottom align=left width="1%" bgcolor="#E6EFFF" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="7%" bgcolor="#E6EFFF">120,536 </TD>
    <TD vAlign=bottom align=left width="2%" bgcolor="#E6EFFF" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgcolor="#E6EFFF" >$</TD>
    <TD vAlign=bottom align=right width="7%" bgcolor="#E6EFFF">&nbsp;89,377 </TD>
    <TD vAlign=bottom align=left width="2%" bgcolor="#E6EFFF" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgcolor="#E6EFFF" >$</TD>
    <TD vAlign=bottom align=right width="7%" bgcolor="#E6EFFF">&nbsp;6,728 </TD>
    <TD vAlign=bottom align=left width="2%" bgcolor="#E6EFFF" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgcolor="#E6EFFF" >$</TD>
    <TD vAlign=bottom align=right width="7%" bgcolor="#E6EFFF">&nbsp;26,248 </TD>
    <TD vAlign=bottom align=left width="2%" bgcolor="#E6EFFF" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgcolor="#E6EFFF" >$</TD>
    <TD vAlign=bottom align=right width="7%" bgcolor="#E6EFFF">&nbsp;689,190 </TD>
    <TD vAlign=bottom align=left width="2%" bgcolor="#E6EFFF" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgcolor="#E6EFFF" >$</TD>
    <TD vAlign=bottom align=right width="7%" bgcolor="#E6EFFF">&nbsp;811,543 </TD>
    <TD vAlign=bottom align=left width="2%" bgcolor="#E6EFFF" >&nbsp;</TD></TR>
  <TR>
    <TD vAlign=bottom>
    <p style="text-indent: -15pt; margin-left: 15pt">&nbsp; </TD>
    <TD vAlign=bottom align=right width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="7%">&nbsp; </TD>
    <TD vAlign=bottom align=right width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="7%">&nbsp; </TD>
    <TD vAlign=bottom align=right width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="7%">&nbsp; </TD>
    <TD vAlign=bottom align=right width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="7%">&nbsp; </TD>
    <TD vAlign=bottom align=right width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="7%">&nbsp; </TD>
    <TD vAlign=bottom align=right width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="7%">&nbsp; </TD>
    <TD vAlign=bottom align=right width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD vAlign=bottom align=left>
    <p style="text-indent: -15pt; margin-left: 15pt">Stock-based compensation related to stock
      options and Treasury restricted share units </TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="7%">- </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="7%">- </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="7%">3,007 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="7%">- </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="7%">- </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="7%">3,007 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD vAlign=bottom align=left bgcolor="#E6EFFF">
    <p style="text-indent: -15pt; margin-left: 15pt">Shares issued under employee share purchase
      plan </TD>
    <TD vAlign=bottom align=left width="1%" bgcolor="#E6EFFF" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="7%" bgcolor="#E6EFFF">58 </TD>
    <TD vAlign=bottom align=left width="2%" bgcolor="#E6EFFF" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgcolor="#E6EFFF" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="7%" bgcolor="#E6EFFF">781 </TD>
    <TD vAlign=bottom align=left width="2%" bgcolor="#E6EFFF" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgcolor="#E6EFFF" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="7%" bgcolor="#E6EFFF">- </TD>
    <TD vAlign=bottom align=left width="2%" bgcolor="#E6EFFF" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgcolor="#E6EFFF" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="7%" bgcolor="#E6EFFF">- </TD>
    <TD vAlign=bottom align=left width="2%" bgcolor="#E6EFFF" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgcolor="#E6EFFF" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="7%" bgcolor="#E6EFFF">- </TD>
    <TD vAlign=bottom align=left width="2%" bgcolor="#E6EFFF" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgcolor="#E6EFFF" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="7%" bgcolor="#E6EFFF">781 </TD>
    <TD vAlign=bottom align=left width="2%" bgcolor="#E6EFFF" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD vAlign=bottom align=left>
    <p style="text-indent: -15pt; margin-left: 15pt">Shares issued pursuant to exercise of stock
      options </TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="7%">54 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="7%">125 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="7%">- </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="7%">- </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="7%">- </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="7%">125 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD vAlign=bottom align=left bgcolor="#E6EFFF">
    <p style="text-indent: -15pt; margin-left: 15pt">Shares issued pursuant to vesting of Treasury
      restricted share units </TD>
    <TD vAlign=bottom align=left width="1%" bgcolor="#E6EFFF" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="7%" bgcolor="#E6EFFF">315 </TD>
    <TD vAlign=bottom align=left width="2%" bgcolor="#E6EFFF" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgcolor="#E6EFFF" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="7%" bgcolor="#E6EFFF">2,759 </TD>
    <TD vAlign=bottom align=left width="2%" bgcolor="#E6EFFF" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgcolor="#E6EFFF" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="7%" bgcolor="#E6EFFF">(2,759</TD>
    <TD vAlign=bottom align=left width="2%" bgcolor="#E6EFFF" >) </TD>
    <TD vAlign=bottom align=left width="1%" bgcolor="#E6EFFF" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="7%" bgcolor="#E6EFFF">- </TD>
    <TD vAlign=bottom align=left width="2%" bgcolor="#E6EFFF" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgcolor="#E6EFFF" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="7%" bgcolor="#E6EFFF">- </TD>
    <TD vAlign=bottom align=left width="2%" bgcolor="#E6EFFF" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgcolor="#E6EFFF" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="7%" bgcolor="#E6EFFF">- </TD>
    <TD vAlign=bottom align=left width="2%" bgcolor="#E6EFFF" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD vAlign=bottom align=left>
    <p style="text-indent: -15pt; margin-left: 15pt">Net earnings </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="7%">- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="7%">- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="7%">- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="7%">- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="7%">95,329 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="7%">95,329 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD></TR>
  <TR>
    <TD vAlign=bottom bgcolor="#E6EFFF">
    <p style="text-indent: -15pt; margin-left: 15pt">&nbsp; </TD>
    <TD vAlign=bottom align=right width="1%" bgcolor="#E6EFFF" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="7%" bgcolor="#E6EFFF">&nbsp; </TD>
    <TD vAlign=bottom align=right width="2%" bgcolor="#E6EFFF" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="1%" bgcolor="#E6EFFF" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="7%" bgcolor="#E6EFFF">&nbsp; </TD>
    <TD vAlign=bottom align=right width="2%" bgcolor="#E6EFFF" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="1%" bgcolor="#E6EFFF" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="7%" bgcolor="#E6EFFF">&nbsp; </TD>
    <TD vAlign=bottom align=right width="2%" bgcolor="#E6EFFF" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="1%" bgcolor="#E6EFFF" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="7%" bgcolor="#E6EFFF">&nbsp; </TD>
    <TD vAlign=bottom align=right width="2%" bgcolor="#E6EFFF" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="1%" bgcolor="#E6EFFF" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="7%" bgcolor="#E6EFFF">&nbsp; </TD>
    <TD vAlign=bottom align=right width="2%" bgcolor="#E6EFFF" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="1%" bgcolor="#E6EFFF" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="7%" bgcolor="#E6EFFF">&nbsp; </TD>
    <TD vAlign=bottom align=right width="2%" bgcolor="#E6EFFF" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD vAlign=bottom align=left bgcolor="#E6EFFF">
    <p style="text-indent: -15pt; margin-left: 15pt">Balance, October 4, 2009 </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="1%" bgcolor="#E6EFFF" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=right
    width="7%" bgcolor="#E6EFFF">120,963 </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="2%" bgcolor="#E6EFFF" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="1%" bgcolor="#E6EFFF" >$</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=right
    width="7%" bgcolor="#E6EFFF">&nbsp;93,042 </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="2%" bgcolor="#E6EFFF" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="1%" bgcolor="#E6EFFF" >$</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=right
    width="7%" bgcolor="#E6EFFF">&nbsp;6,976 </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="2%" bgcolor="#E6EFFF" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="1%" bgcolor="#E6EFFF" >$</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=right
    width="7%" bgcolor="#E6EFFF">&nbsp;26,248 </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="2%" bgcolor="#E6EFFF" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="1%" bgcolor="#E6EFFF" >$</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=right
    width="7%" bgcolor="#E6EFFF">&nbsp;784,519 </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="2%" bgcolor="#E6EFFF" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="1%" bgcolor="#E6EFFF" >$</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=right
    width="7%" bgcolor="#E6EFFF">&nbsp;910,785 </TD>
    <TD vAlign=bottom align=left width="2%" bgcolor="#E6EFFF" >&nbsp;</TD></TR>
  <TR>
    <TD vAlign=bottom>
    <p style="text-indent: -15pt; margin-left: 15pt">&nbsp; </TD>
    <TD vAlign=bottom align=right width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="7%">&nbsp; </TD>
    <TD vAlign=bottom align=right width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="7%">&nbsp; </TD>
    <TD vAlign=bottom align=right width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="7%">&nbsp; </TD>
    <TD vAlign=bottom align=right width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="7%">&nbsp; </TD>
    <TD vAlign=bottom align=right width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="7%">&nbsp; </TD>
    <TD vAlign=bottom align=right width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="7%">&nbsp; </TD>
    <TD vAlign=bottom align=right width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD vAlign=bottom align=left colSpan=3><FONT size=2>See accompanying notes
      to consolidated financial statements. </FONT></TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="7%">&nbsp; </TD>
    <TD vAlign=bottom align=right width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="7%">&nbsp; </TD>
    <TD vAlign=bottom align=right width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="7%">&nbsp; </TD>
    <TD vAlign=bottom align=right width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="7%">&nbsp; </TD>
    <TD vAlign=bottom align=right width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="7%">&nbsp; </TD>
    <TD vAlign=bottom align=right width="2%"
>&nbsp;</TD></TR></TABLE>
<P align=right>GILDAN 2009 REPORT TO SHAREHOLDERS P.48</P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<table border="0" cellpadding="0" cellspacing="0" style="border-collapse: collapse" bordercolor="#111111" width="100%" id="AutoNumber6">
  <tr>
    <td width="50%" valign="bottom">
    <img border="0" src="gildan1.jpg" width="92" height="30"></td>
    <td width="50%" valign="bottom">
    <p align="right"><font size="2">CONSOLIDATED FINANCIAL STATEMENTS </font>
    </td>
  </tr>
</table>
<p>
<BR>
</p>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0 height="817">

  <TR>
    <TD height="15">&nbsp; </TD>
    <TD width="1%" height="15" ></TD>
    <TD width="10%" height="15">&nbsp; </TD>
    <TD width="2%" height="15" ></TD>
    <TD width="1%" height="15" ></TD>
    <TD width="10%" height="15">&nbsp; </TD>
    <TD width="2%" height="15" ></TD>
    <TD width="1%" height="15" ></TD>
    <TD width="10%" height="15">&nbsp; </TD>
    <TD width="2%" height="15" ></TD></TR>
  <TR vAlign=bottom>
    <TD align=center colSpan=10 height="60"><B>GILDAN ACTIVEWEAR INC.</B>
      <BR><B>CONSOLIDATED STATEMENTS OF CASH FLOWS</B> <BR><B>Years ended
      October 4, 2009, October 5, 2008 and September 30, 2007</B> <BR><B>(in
      thousands of U.S. dollars)</B> </TD></TR>
  <TR>
    <TD height="16">&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="1%" height="16"
    ></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="10%" height="16">&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="2%" height="16"
    ></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="1%" height="16"
    ></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="10%" height="16">&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="2%" height="16"
    ></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="1%" height="16"
    ></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="10%" height="16">&nbsp; </TD>
    <TD width="2%" height="16" ></TD></TR>
  <TR vAlign=top>
    <TD align=left height="16" valign="bottom">&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%" height="16" valign="bottom"
    ></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="10%" height="16" valign="bottom">2009
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%" height="16" valign="bottom"
    ></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%" height="16" valign="bottom"
    ></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="10%" height="16" valign="bottom">2008
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%" height="16" valign="bottom"
    ></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%" height="16" valign="bottom"
    ></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="10%" height="16" valign="bottom">2007
    </TD>
    <TD align=left width="2%" height="16" valign="bottom" ></TD></TR>
  <TR vAlign=top>
    <TD align=left height="15" valign="bottom">
    <p style="text-indent: -15pt; margin-left: 15pt">&nbsp; </TD>
    <TD align=left width="1%" height="15" valign="bottom" ></TD>
    <TD align=left width="10%" height="15" valign="bottom">&nbsp; </TD>
    <TD align=left width="2%" height="15" valign="bottom" ></TD>
    <TD align=left width="1%" height="15" valign="bottom" ></TD>
    <TD align=right width="10%" height="15" valign="bottom"><EM>(recast-note 1(b))</EM> </TD>
    <TD align=left width="2%" height="15" valign="bottom" ></TD>
    <TD align=left width="1%" height="15" valign="bottom" ></TD>
    <TD align=right width="10%" height="15" valign="bottom"><EM>(recast-note 1(b))</EM> </TD>
    <TD align=left width="2%" height="15" valign="bottom" ></TD></TR>
  <TR vAlign=top>
    <TD align=left height="15" bgcolor="#E6EFFF" valign="bottom">
    <p style="text-indent: -15pt; margin-left: 15pt">Cash flows from (used in) operating activities: </TD>
    <TD align=left width="1%" height="15" bgcolor="#E6EFFF" valign="bottom" >&nbsp;</TD>
    <TD align=left width="10%" height="15" bgcolor="#E6EFFF" valign="bottom">&nbsp; </TD>
    <TD align=left width="2%" height="15" bgcolor="#E6EFFF" valign="bottom" >&nbsp;</TD>
    <TD align=left width="1%" height="15" bgcolor="#E6EFFF" valign="bottom" >&nbsp;</TD>
    <TD align=left width="10%" height="15" bgcolor="#E6EFFF" valign="bottom">&nbsp; </TD>
    <TD align=left width="2%" height="15" bgcolor="#E6EFFF" valign="bottom" >&nbsp;</TD>
    <TD align=left width="1%" height="15" bgcolor="#E6EFFF" valign="bottom" >&nbsp;</TD>
    <TD align=left width="10%" height="15" bgcolor="#E6EFFF" valign="bottom">&nbsp; </TD>
    <TD align=left width="2%" height="15" bgcolor="#E6EFFF" valign="bottom" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left height="15" valign="bottom">
    <p style="text-indent: -15pt; margin-left: 15pt">&nbsp;Net earnings </TD>
    <TD align=left width="1%" height="15" valign="bottom" >$</TD>
    <TD align=right width="10%" height="15" valign="bottom">&nbsp;95,329 </TD>
    <TD align=left width="2%" height="15" valign="bottom" ></TD>
    <TD align=left width="1%" height="15" valign="bottom" >$</TD>
    <TD align=right width="10%" height="15" valign="bottom">&nbsp;146,350 </TD>
    <TD align=left width="2%" height="15" valign="bottom" ></TD>
    <TD align=left width="1%" height="15" valign="bottom" >$</TD>
    <TD align=right width="10%" height="15" valign="bottom">&nbsp;129,062 </TD>
    <TD align=left width="2%" height="15" valign="bottom" ></TD></TR>
  <TR vAlign=top>
    <TD align=left height="15" bgcolor="#E6EFFF" valign="bottom">
    <p style="text-indent: -15pt; margin-left: 15pt">&nbsp;Adjustments for: </TD>
    <TD align=left width="1%" height="15" bgcolor="#E6EFFF" valign="bottom" >&nbsp;</TD>
    <TD align=left width="10%" height="15" bgcolor="#E6EFFF" valign="bottom">&nbsp; </TD>
    <TD align=left width="2%" height="15" bgcolor="#E6EFFF" valign="bottom" >&nbsp;</TD>
    <TD align=left width="1%" height="15" bgcolor="#E6EFFF" valign="bottom" >&nbsp;</TD>
    <TD align=left width="10%" height="15" bgcolor="#E6EFFF" valign="bottom">&nbsp; </TD>
    <TD align=left width="2%" height="15" bgcolor="#E6EFFF" valign="bottom" >&nbsp;</TD>
    <TD align=left width="1%" height="15" bgcolor="#E6EFFF" valign="bottom" >&nbsp;</TD>
    <TD align=left width="10%" height="15" bgcolor="#E6EFFF" valign="bottom">&nbsp; </TD>
    <TD align=left width="2%" height="15" bgcolor="#E6EFFF" valign="bottom" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left height="12" valign="bottom">
    <p style="text-indent: -15pt; margin-left: 15pt">&nbsp; &nbsp;Depreciation and amortization (note 17(b)) </TD>
    <TD align=left width="1%" height="12" valign="bottom" ></TD>
    <TD align=right width="10%" height="12" valign="bottom">65,407 </TD>
    <TD align=left width="2%" height="12" valign="bottom" ></TD>
    <TD align=left width="1%" height="12" valign="bottom" ></TD>
    <TD align=right width="10%" height="12" valign="bottom">57,135 </TD>
    <TD align=left width="2%" height="12" valign="bottom" ></TD>
    <TD align=left width="1%" height="12" valign="bottom" ></TD>
    <TD align=right width="10%" height="12" valign="bottom">37,268 </TD>
    <TD align=left width="2%" height="12" valign="bottom" ></TD></TR>
  <TR vAlign=top>
    <TD align=left height="15" bgcolor="#E6EFFF" valign="bottom">
    <p style="text-indent: -15pt; margin-left: 15pt">&nbsp; &nbsp;Variation of depreciation included in
      inventories (note 17(b)) </TD>
    <TD align=left width="1%" height="15" bgcolor="#E6EFFF" valign="bottom" >&nbsp;</TD>
    <TD align=right width="10%" height="15" bgcolor="#E6EFFF" valign="bottom">(2,437</TD>
    <TD align=left width="2%" height="15" bgcolor="#E6EFFF" valign="bottom" >) </TD>
    <TD align=left width="1%" height="15" bgcolor="#E6EFFF" valign="bottom" >&nbsp;</TD>
    <TD align=right width="10%" height="15" bgcolor="#E6EFFF" valign="bottom">(957</TD>
    <TD align=left width="2%" height="15" bgcolor="#E6EFFF" valign="bottom" >) </TD>
    <TD align=left width="1%" height="15" bgcolor="#E6EFFF" valign="bottom" >&nbsp;</TD>
    <TD align=right width="10%" height="15" bgcolor="#E6EFFF" valign="bottom">(1,837</TD>
    <TD align=left width="2%" height="15" bgcolor="#E6EFFF" valign="bottom" >) </TD></TR>
  <TR vAlign=top>
    <TD align=left height="15" valign="bottom">
    <p style="text-indent: -15pt; margin-left: 15pt">&nbsp;&nbsp; Restructuring charges related to assets held
      for sale and property, plant and equipment (note 16) </TD>
    <TD align=left width="1%" height="15" valign="bottom" ></TD>
    <TD align=right width="10%" height="15" valign="bottom">976 </TD>
    <TD align=left width="2%" height="15" valign="bottom" ></TD>
    <TD align=left width="1%" height="15" valign="bottom" ></TD>
    <TD align=right width="10%" height="15" valign="bottom">2,174 </TD>
    <TD align=left width="2%" height="15" valign="bottom" ></TD>
    <TD align=left width="1%" height="15" valign="bottom" ></TD>
    <TD align=right width="10%" height="15" valign="bottom">5,523 </TD>
    <TD align=left width="2%" height="15" valign="bottom" ></TD></TR>
  <TR vAlign=top>
    <TD align=left height="15" bgcolor="#E6EFFF" valign="bottom">
    <p style="text-indent: -15pt; margin-left: 15pt">&nbsp; &nbsp;Loss on disposal of property, plant and
      equipment </TD>
    <TD align=left width="1%" height="15" bgcolor="#E6EFFF" valign="bottom" >&nbsp;</TD>
    <TD align=right width="10%" height="15" bgcolor="#E6EFFF" valign="bottom">561 </TD>
    <TD align=left width="2%" height="15" bgcolor="#E6EFFF" valign="bottom" >&nbsp;</TD>
    <TD align=left width="1%" height="15" bgcolor="#E6EFFF" valign="bottom" >&nbsp;</TD>
    <TD align=right width="10%" height="15" bgcolor="#E6EFFF" valign="bottom">1,369 </TD>
    <TD align=left width="2%" height="15" bgcolor="#E6EFFF" valign="bottom" >&nbsp;</TD>
    <TD align=left width="1%" height="15" bgcolor="#E6EFFF" valign="bottom" >&nbsp;</TD>
    <TD align=right width="10%" height="15" bgcolor="#E6EFFF" valign="bottom">332 </TD>
    <TD align=left width="2%" height="15" bgcolor="#E6EFFF" valign="bottom" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left height="15" valign="bottom">
    <p style="text-indent: -15pt; margin-left: 15pt">&nbsp; &nbsp;Stock-based compensation costs </TD>
    <TD align=left width="1%" height="15" valign="bottom" ></TD>
    <TD align=right width="10%" height="15" valign="bottom">3,007 </TD>
    <TD align=left width="2%" height="15" valign="bottom" ></TD>
    <TD align=left width="1%" height="15" valign="bottom" ></TD>
    <TD align=right width="10%" height="15" valign="bottom">2,965 </TD>
    <TD align=left width="2%" height="15" valign="bottom" ></TD>
    <TD align=left width="1%" height="15" valign="bottom" ></TD>
    <TD align=right width="10%" height="15" valign="bottom">1,814 </TD>
    <TD align=left width="2%" height="15" valign="bottom" ></TD></TR>
  <TR vAlign=top>
    <TD align=left height="15" bgcolor="#E6EFFF" valign="bottom">
    <p style="text-indent: -15pt; margin-left: 15pt">&nbsp; &nbsp;Future income taxes (note 14) </TD>
    <TD align=left width="1%" height="15" bgcolor="#E6EFFF" valign="bottom" >&nbsp;</TD>
    <TD align=right width="10%" height="15" bgcolor="#E6EFFF" valign="bottom">(2,434</TD>
    <TD align=left width="2%" height="15" bgcolor="#E6EFFF" valign="bottom" >) </TD>
    <TD align=left width="1%" height="15" bgcolor="#E6EFFF" valign="bottom" >&nbsp;</TD>
    <TD align=right width="10%" height="15" bgcolor="#E6EFFF" valign="bottom">(15,885</TD>
    <TD align=left width="2%" height="15" bgcolor="#E6EFFF" valign="bottom" >) </TD>
    <TD align=left width="1%" height="15" bgcolor="#E6EFFF" valign="bottom" >&nbsp;</TD>
    <TD align=right width="10%" height="15" bgcolor="#E6EFFF" valign="bottom">(8,919</TD>
    <TD align=left width="2%" height="15" bgcolor="#E6EFFF" valign="bottom" >) </TD></TR>
  <TR vAlign=top>
    <TD align=left height="15" valign="bottom">
    <p style="text-indent: -15pt; margin-left: 15pt">&nbsp; &nbsp;Non-controlling interest </TD>
    <TD align=left width="1%" height="15" valign="bottom" ></TD>
    <TD align=right width="10%" height="15" valign="bottom">110 </TD>
    <TD align=left width="2%" height="15" valign="bottom" ></TD>
    <TD align=left width="1%" height="15" valign="bottom" ></TD>
    <TD align=right width="10%" height="15" valign="bottom">230 </TD>
    <TD align=left width="2%" height="15" valign="bottom" ></TD>
    <TD align=left width="1%" height="15" valign="bottom" ></TD>
    <TD align=right width="10%" height="15" valign="bottom">1,278 </TD>
    <TD align=left width="2%" height="15" valign="bottom" ></TD></TR>
  <TR vAlign=top>
    <TD align=left height="16" bgcolor="#E6EFFF" valign="bottom">
    <p style="text-indent: -15pt; margin-left: 15pt">Unrealized net (gain) loss on foreign exchange and
      financial derivatives </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%" height="16" bgcolor="#E6EFFF" valign="bottom"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
    width="10%" height="16" bgcolor="#E6EFFF" valign="bottom">(1,012</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%" height="16" bgcolor="#E6EFFF" valign="bottom"
    >) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%" height="16" bgcolor="#E6EFFF" valign="bottom"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
    width="10%" height="16" bgcolor="#E6EFFF" valign="bottom">(2,222</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%" height="16" bgcolor="#E6EFFF" valign="bottom"
    >) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%" height="16" bgcolor="#E6EFFF" valign="bottom"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="10%" height="16" bgcolor="#E6EFFF" valign="bottom">3,226
    </TD>
    <TD align=left width="2%" height="16" bgcolor="#E6EFFF" valign="bottom" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left height="15" valign="bottom">
    <p style="text-indent: -15pt; margin-left: 15pt">&nbsp; </TD>
    <TD align=left width="1%" height="15" valign="bottom" ></TD>
    <TD align=right width="10%" height="15" valign="bottom">159,507 </TD>
    <TD align=left width="2%" height="15" valign="bottom" ></TD>
    <TD align=left width="1%" height="15" valign="bottom" ></TD>
    <TD align=right width="10%" height="15" valign="bottom">191,159 </TD>
    <TD align=left width="2%" height="15" valign="bottom" ></TD>
    <TD align=left width="1%" height="15" valign="bottom" ></TD>
    <TD align=right width="10%" height="15" valign="bottom">167,747 </TD>
    <TD align=left width="2%" height="15" valign="bottom" ></TD></TR>
  <TR vAlign=top>
    <TD align=left height="15" bgcolor="#E6EFFF" valign="bottom">
    <p style="text-indent: -15pt; margin-left: 15pt">&nbsp;Changes in non-cash working capital balances: </TD>
    <TD align=left width="1%" height="15" bgcolor="#E6EFFF" valign="bottom" >&nbsp;</TD>
    <TD align=left width="10%" height="15" bgcolor="#E6EFFF" valign="bottom">&nbsp; </TD>
    <TD align=left width="2%" height="15" bgcolor="#E6EFFF" valign="bottom" >&nbsp;</TD>
    <TD align=left width="1%" height="15" bgcolor="#E6EFFF" valign="bottom" >&nbsp;</TD>
    <TD align=left width="10%" height="15" bgcolor="#E6EFFF" valign="bottom">&nbsp; </TD>
    <TD align=left width="2%" height="15" bgcolor="#E6EFFF" valign="bottom" >&nbsp;</TD>
    <TD align=left width="1%" height="15" bgcolor="#E6EFFF" valign="bottom" >&nbsp;</TD>
    <TD align=left width="10%" height="15" bgcolor="#E6EFFF" valign="bottom">&nbsp; </TD>
    <TD align=left width="2%" height="15" bgcolor="#E6EFFF" valign="bottom" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left height="15" valign="bottom">
    <p style="text-indent: -15pt; margin-left: 15pt">&nbsp; &nbsp;Accounts receivable </TD>
    <TD align=left width="1%" height="15" valign="bottom" ></TD>
    <TD align=right width="10%" height="15" valign="bottom">48,351 </TD>
    <TD align=left width="2%" height="15" valign="bottom" ></TD>
    <TD align=left width="1%" height="15" valign="bottom" ></TD>
    <TD align=right width="10%" height="15" valign="bottom">10,263 </TD>
    <TD align=left width="2%" height="15" valign="bottom" ></TD>
    <TD align=left width="1%" height="15" valign="bottom" ></TD>
    <TD align=right width="10%" height="15" valign="bottom">(34,919</TD>
    <TD align=left width="2%" height="15" valign="bottom" >) </TD></TR>
  <TR vAlign=top>
    <TD align=left height="15" bgcolor="#E6EFFF" valign="bottom">
    <p style="text-indent: -15pt; margin-left: 15pt">&nbsp; &nbsp;Inventories </TD>
    <TD align=left width="1%" height="15" bgcolor="#E6EFFF" valign="bottom" >&nbsp;</TD>
    <TD align=right width="10%" height="15" bgcolor="#E6EFFF" valign="bottom">16,742 </TD>
    <TD align=left width="2%" height="15" bgcolor="#E6EFFF" valign="bottom" >&nbsp;</TD>
    <TD align=left width="1%" height="15" bgcolor="#E6EFFF" valign="bottom" >&nbsp;</TD>
    <TD align=right width="10%" height="15" bgcolor="#E6EFFF" valign="bottom">(31,178</TD>
    <TD align=left width="2%" height="15" bgcolor="#E6EFFF" valign="bottom" >) </TD>
    <TD align=left width="1%" height="15" bgcolor="#E6EFFF" valign="bottom" >&nbsp;</TD>
    <TD align=right width="10%" height="15" bgcolor="#E6EFFF" valign="bottom">(37,473</TD>
    <TD align=left width="2%" height="15" bgcolor="#E6EFFF" valign="bottom" >) </TD></TR>
  <TR vAlign=top>
    <TD align=left height="15" valign="bottom">
    <p style="text-indent: -15pt; margin-left: 15pt">&nbsp; &nbsp;Prepaid expenses and deposits </TD>
    <TD align=left width="1%" height="15" valign="bottom" ></TD>
    <TD align=right width="10%" height="15" valign="bottom">(1,191</TD>
    <TD align=left width="2%" height="15" valign="bottom" >) </TD>
    <TD align=left width="1%" height="15" valign="bottom" ></TD>
    <TD align=right width="10%" height="15" valign="bottom">(881</TD>
    <TD align=left width="2%" height="15" valign="bottom" >) </TD>
    <TD align=left width="1%" height="15" valign="bottom" ></TD>
    <TD align=right width="10%" height="15" valign="bottom">(2,202</TD>
    <TD align=left width="2%" height="15" valign="bottom" >) </TD></TR>
  <TR vAlign=top>
    <TD align=left height="15" bgcolor="#E6EFFF" valign="bottom">
    <p style="text-indent: -15pt; margin-left: 15pt">&nbsp; &nbsp;Accounts payable and accrued liabilities </TD>
    <TD align=left width="1%" height="15" bgcolor="#E6EFFF" valign="bottom" >&nbsp;</TD>
    <TD align=right width="10%" height="15" bgcolor="#E6EFFF" valign="bottom">(22,731</TD>
    <TD align=left width="2%" height="15" bgcolor="#E6EFFF" valign="bottom" >) </TD>
    <TD align=left width="1%" height="15" bgcolor="#E6EFFF" valign="bottom" >&nbsp;</TD>
    <TD align=right width="10%" height="15" bgcolor="#E6EFFF" valign="bottom">25,700 </TD>
    <TD align=left width="2%" height="15" bgcolor="#E6EFFF" valign="bottom" >&nbsp;</TD>
    <TD align=left width="1%" height="15" bgcolor="#E6EFFF" valign="bottom" >&nbsp;</TD>
    <TD align=right width="10%" height="15" bgcolor="#E6EFFF" valign="bottom">(4,800</TD>
    <TD align=left width="2%" height="15" bgcolor="#E6EFFF" valign="bottom" >) </TD></TR>
  <TR vAlign=top>
    <TD align=left height="16" valign="bottom">
    <p style="text-indent: -15pt; margin-left: 15pt">&nbsp; &nbsp;Income taxes payable </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%" height="16" valign="bottom"
    ></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="10%" height="16" valign="bottom">(31,499</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%" height="16" valign="bottom"
    >) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%" height="16" valign="bottom"
    ></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="10%" height="16" valign="bottom">43,802 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%" height="16" valign="bottom"
    ></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%" height="16" valign="bottom"
    ></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="10%" height="16" valign="bottom">343
    </TD>
    <TD align=left width="2%" height="16" valign="bottom" ></TD></TR>
  <TR vAlign=top>
    <TD align=left height="15" bgcolor="#E6EFFF" valign="bottom">
    <p style="text-indent: -15pt; margin-left: 15pt">&nbsp; </TD>
    <TD align=left width="1%" height="15" bgcolor="#E6EFFF" valign="bottom" >&nbsp;</TD>
    <TD align=right width="10%" height="15" bgcolor="#E6EFFF" valign="bottom">169,179 </TD>
    <TD align=left width="2%" height="15" bgcolor="#E6EFFF" valign="bottom" >&nbsp;</TD>
    <TD align=left width="1%" height="15" bgcolor="#E6EFFF" valign="bottom" >&nbsp;</TD>
    <TD align=right width="10%" height="15" bgcolor="#E6EFFF" valign="bottom">238,865 </TD>
    <TD align=left width="2%" height="15" bgcolor="#E6EFFF" valign="bottom" >&nbsp;</TD>
    <TD align=left width="1%" height="15" bgcolor="#E6EFFF" valign="bottom" >&nbsp;</TD>
    <TD align=right width="10%" height="15" bgcolor="#E6EFFF" valign="bottom">88,696 </TD>
    <TD align=left width="2%" height="15" bgcolor="#E6EFFF" valign="bottom" >&nbsp;</TD></TR>
  <TR>
    <TD height="15" valign="bottom">
    <p style="text-indent: -15pt; margin-left: 15pt">&nbsp; </TD>
    <TD width="1%" height="15" valign="bottom" ></TD>
    <TD width="10%" height="15" valign="bottom">&nbsp; </TD>
    <TD width="2%" height="15" valign="bottom" ></TD>
    <TD width="1%" height="15" valign="bottom" ></TD>
    <TD width="10%" height="15" valign="bottom">&nbsp; </TD>
    <TD width="2%" height="15" valign="bottom" ></TD>
    <TD width="1%" height="15" valign="bottom" ></TD>
    <TD width="10%" height="15" valign="bottom">&nbsp; </TD>
    <TD width="2%" height="15" valign="bottom" ></TD></TR>
  <TR vAlign=top>
    <TD align=left height="15" valign="bottom">
    <p style="text-indent: -15pt; margin-left: 15pt">Cash flows from (used in) financing activities: </TD>
    <TD align=left width="1%" height="15" valign="bottom" ></TD>
    <TD align=left width="10%" height="15" valign="bottom">&nbsp; </TD>
    <TD align=left width="2%" height="15" valign="bottom" ></TD>
    <TD align=left width="1%" height="15" valign="bottom" ></TD>
    <TD align=left width="10%" height="15" valign="bottom">&nbsp; </TD>
    <TD align=left width="2%" height="15" valign="bottom" ></TD>
    <TD align=left width="1%" height="15" valign="bottom" ></TD>
    <TD align=left width="10%" height="15" valign="bottom">&nbsp; </TD>
    <TD align=left width="2%" height="15" valign="bottom" ></TD></TR>
  <TR vAlign=top>
    <TD align=left height="15" bgcolor="#E6EFFF" valign="bottom">
    <p style="text-indent: -15pt; margin-left: 15pt">&nbsp;(Decrease) increase in amounts drawn under revolving
      long-term credit facility </TD>
    <TD align=left width="1%" height="15" bgcolor="#E6EFFF" valign="bottom" >&nbsp;</TD>
    <TD align=right width="10%" height="15" bgcolor="#E6EFFF" valign="bottom">(45,000</TD>
    <TD align=left width="2%" height="15" bgcolor="#E6EFFF" valign="bottom" >) </TD>
    <TD align=left width="1%" height="15" bgcolor="#E6EFFF" valign="bottom" >&nbsp;</TD>
    <TD align=right width="10%" height="15" bgcolor="#E6EFFF" valign="bottom">(4,000</TD>
    <TD align=left width="2%" height="15" bgcolor="#E6EFFF" valign="bottom" >) </TD>
    <TD align=left width="1%" height="15" bgcolor="#E6EFFF" valign="bottom" >&nbsp;</TD>
    <TD align=right width="10%" height="15" bgcolor="#E6EFFF" valign="bottom">49,000 </TD>
    <TD align=left width="2%" height="15" bgcolor="#E6EFFF" valign="bottom" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left height="15" valign="bottom">
    <p style="text-indent: -15pt; margin-left: 15pt">&nbsp;Decrease in bank indebtedness </TD>
    <TD align=left width="1%" height="15" valign="bottom" ></TD>
    <TD align=right width="10%" height="15" valign="bottom">- </TD>
    <TD align=left width="2%" height="15" valign="bottom" ></TD>
    <TD align=left width="1%" height="15" valign="bottom" ></TD>
    <TD align=right width="10%" height="15" valign="bottom">(2,739</TD>
    <TD align=left width="2%" height="15" valign="bottom" >) </TD>
    <TD align=left width="1%" height="15" valign="bottom" ></TD>
    <TD align=right width="10%" height="15" valign="bottom">(3,500</TD>
    <TD align=left width="2%" height="15" valign="bottom" >) </TD></TR>
  <TR vAlign=top>
    <TD align=left height="15" bgcolor="#E6EFFF" valign="bottom">
    <p style="text-indent: -15pt; margin-left: 15pt">&nbsp;Increase in other long-term debt </TD>
    <TD align=left width="1%" height="15" bgcolor="#E6EFFF" valign="bottom" >&nbsp;</TD>
    <TD align=right width="10%" height="15" bgcolor="#E6EFFF" valign="bottom">44 </TD>
    <TD align=left width="2%" height="15" bgcolor="#E6EFFF" valign="bottom" >&nbsp;</TD>
    <TD align=left width="1%" height="15" bgcolor="#E6EFFF" valign="bottom" >&nbsp;</TD>
    <TD align=right width="10%" height="15" bgcolor="#E6EFFF" valign="bottom">2,805 </TD>
    <TD align=left width="2%" height="15" bgcolor="#E6EFFF" valign="bottom" >&nbsp;</TD>
    <TD align=left width="1%" height="15" bgcolor="#E6EFFF" valign="bottom" >&nbsp;</TD>
    <TD align=right width="10%" height="15" bgcolor="#E6EFFF" valign="bottom">- </TD>
    <TD align=left width="2%" height="15" bgcolor="#E6EFFF" valign="bottom" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left height="15" valign="bottom">
    <p style="text-indent: -15pt; margin-left: 15pt">&nbsp;Repayment of other long-term debt </TD>
    <TD align=left width="1%" height="15" valign="bottom" ></TD>
    <TD align=right width="10%" height="15" valign="bottom">(3,661</TD>
    <TD align=left width="2%" height="15" valign="bottom" >) </TD>
    <TD align=left width="1%" height="15" valign="bottom" ></TD>
    <TD align=right width="10%" height="15" valign="bottom">(5,461</TD>
    <TD align=left width="2%" height="15" valign="bottom" >) </TD>
    <TD align=left width="1%" height="15" valign="bottom" ></TD>
    <TD align=right width="10%" height="15" valign="bottom">(23,201</TD>
    <TD align=left width="2%" height="15" valign="bottom" >) </TD></TR>
  <TR vAlign=top>
    <TD align=left height="15" bgcolor="#E6EFFF" valign="bottom">
    <p style="text-indent: -15pt; margin-left: 15pt">&nbsp;Proceeds from the issuance of shares </TD>
    <TD align=left width="1%" height="15" bgcolor="#E6EFFF" valign="bottom" >&nbsp;</TD>
    <TD align=right width="10%" height="15" bgcolor="#E6EFFF" valign="bottom">906 </TD>
    <TD align=left width="2%" height="15" bgcolor="#E6EFFF" valign="bottom" >&nbsp;</TD>
    <TD align=left width="1%" height="15" bgcolor="#E6EFFF" valign="bottom" >&nbsp;</TD>
    <TD align=right width="10%" height="15" bgcolor="#E6EFFF" valign="bottom">1,138 </TD>
    <TD align=left width="2%" height="15" bgcolor="#E6EFFF" valign="bottom" >&nbsp;</TD>
    <TD align=left width="1%" height="15" bgcolor="#E6EFFF" valign="bottom" >&nbsp;</TD>
    <TD align=right width="10%" height="15" bgcolor="#E6EFFF" valign="bottom">1,316 </TD>
    <TD align=left width="2%" height="15" bgcolor="#E6EFFF" valign="bottom" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left height="16" valign="bottom">
    <p style="text-indent: -15pt; margin-left: 15pt">&nbsp;Repurchase of shares </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%" height="16" valign="bottom"
    ></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="10%" height="16" valign="bottom">- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%" height="16" valign="bottom"
    ></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%" height="16" valign="bottom"
    ></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
width="10%" height="16" valign="bottom">(12</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%" height="16" valign="bottom"
    >) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%" height="16" valign="bottom"
    ></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
width="10%" height="16" valign="bottom">(65</TD>
    <TD align=left width="2%" height="16" valign="bottom" >) </TD></TR>
  <TR vAlign=top>
    <TD align=left height="15" bgcolor="#E6EFFF" valign="bottom">
    <p style="text-indent: -15pt; margin-left: 15pt">&nbsp; </TD>
    <TD align=left width="1%" height="15" bgcolor="#E6EFFF" valign="bottom" >&nbsp;</TD>
    <TD align=right width="10%" height="15" bgcolor="#E6EFFF" valign="bottom">(47,711</TD>
    <TD align=left width="2%" height="15" bgcolor="#E6EFFF" valign="bottom" >) </TD>
    <TD align=left width="1%" height="15" bgcolor="#E6EFFF" valign="bottom" >&nbsp;</TD>
    <TD align=right width="10%" height="15" bgcolor="#E6EFFF" valign="bottom">(8,269</TD>
    <TD align=left width="2%" height="15" bgcolor="#E6EFFF" valign="bottom" >) </TD>
    <TD align=left width="1%" height="15" bgcolor="#E6EFFF" valign="bottom" >&nbsp;</TD>
    <TD align=right width="10%" height="15" bgcolor="#E6EFFF" valign="bottom">23,550 </TD>
    <TD align=left width="2%" height="15" bgcolor="#E6EFFF" valign="bottom" >&nbsp;</TD></TR>
  <TR>
    <TD height="15" valign="bottom">
    <p style="text-indent: -15pt; margin-left: 15pt">&nbsp; </TD>
    <TD width="1%" height="15" valign="bottom" ></TD>
    <TD width="10%" height="15" valign="bottom">&nbsp; </TD>
    <TD width="2%" height="15" valign="bottom" ></TD>
    <TD width="1%" height="15" valign="bottom" ></TD>
    <TD width="10%" height="15" valign="bottom">&nbsp; </TD>
    <TD width="2%" height="15" valign="bottom" ></TD>
    <TD width="1%" height="15" valign="bottom" ></TD>
    <TD width="10%" height="15" valign="bottom">&nbsp; </TD>
    <TD width="2%" height="15" valign="bottom" ></TD></TR>
  <TR vAlign=top>
    <TD align=left height="15" valign="bottom">
    <p style="text-indent: -15pt; margin-left: 15pt">Cash flows from (used in) investing activities: </TD>
    <TD align=left width="1%" height="15" valign="bottom" ></TD>
    <TD align=left width="10%" height="15" valign="bottom">&nbsp; </TD>
    <TD align=left width="2%" height="15" valign="bottom" ></TD>
    <TD align=left width="1%" height="15" valign="bottom" ></TD>
    <TD align=left width="10%" height="15" valign="bottom">&nbsp; </TD>
    <TD align=left width="2%" height="15" valign="bottom" ></TD>
    <TD align=left width="1%" height="15" valign="bottom" ></TD>
    <TD align=left width="10%" height="15" valign="bottom">&nbsp; </TD>
    <TD align=left width="2%" height="15" valign="bottom" ></TD></TR>
  <TR vAlign=top>
    <TD align=left height="15" bgcolor="#E6EFFF" valign="bottom">
    <p style="text-indent: -15pt; margin-left: 15pt">&nbsp;Purchase of property, plant and equipment </TD>
    <TD align=left width="1%" height="15" bgcolor="#E6EFFF" valign="bottom" >&nbsp;</TD>
    <TD align=right width="10%" height="15" bgcolor="#E6EFFF" valign="bottom">(44,938</TD>
    <TD align=left width="2%" height="15" bgcolor="#E6EFFF" valign="bottom" >) </TD>
    <TD align=left width="1%" height="15" bgcolor="#E6EFFF" valign="bottom" >&nbsp;</TD>
    <TD align=right width="10%" height="15" bgcolor="#E6EFFF" valign="bottom">(97,030</TD>
    <TD align=left width="2%" height="15" bgcolor="#E6EFFF" valign="bottom" >) </TD>
    <TD align=left width="1%" height="15" bgcolor="#E6EFFF" valign="bottom" >&nbsp;</TD>
    <TD align=right width="10%" height="15" bgcolor="#E6EFFF" valign="bottom">(134,282</TD>
    <TD align=left width="2%" height="15" bgcolor="#E6EFFF" valign="bottom" >) </TD></TR>
  <TR vAlign=top>
    <TD align=left height="15" valign="bottom">
    <p style="text-indent: -15pt; margin-left: 15pt">&nbsp;Business acquisition (note 2) </TD>
    <TD align=left width="1%" height="15" valign="bottom" ></TD>
    <TD align=right width="10%" height="15" valign="bottom">(1,196</TD>
    <TD align=left width="2%" height="15" valign="bottom" >) </TD>
    <TD align=left width="1%" height="15" valign="bottom" ></TD>
    <TD align=right width="10%" height="15" valign="bottom">(126,819</TD>
    <TD align=left width="2%" height="15" valign="bottom" >) </TD>
    <TD align=left width="1%" height="15" valign="bottom" ></TD>
    <TD align=right width="10%" height="15" valign="bottom">- </TD>
    <TD align=left width="2%" height="15" valign="bottom" ></TD></TR>
  <TR vAlign=top>
    <TD align=left height="15" bgcolor="#E6EFFF" valign="bottom">
    <p style="text-indent: -15pt; margin-left: 15pt">&nbsp;Restricted cash related to business acquisition (note
      2) </TD>
    <TD align=left width="1%" height="15" bgcolor="#E6EFFF" valign="bottom" >&nbsp;</TD>
    <TD align=right width="10%" height="15" bgcolor="#E6EFFF" valign="bottom">3,958 </TD>
    <TD align=left width="2%" height="15" bgcolor="#E6EFFF" valign="bottom" >&nbsp;</TD>
    <TD align=left width="1%" height="15" bgcolor="#E6EFFF" valign="bottom" >&nbsp;</TD>
    <TD align=right width="10%" height="15" bgcolor="#E6EFFF" valign="bottom">(10,000</TD>
    <TD align=left width="2%" height="15" bgcolor="#E6EFFF" valign="bottom" >) </TD>
    <TD align=left width="1%" height="15" bgcolor="#E6EFFF" valign="bottom" >&nbsp;</TD>
    <TD align=right width="10%" height="15" bgcolor="#E6EFFF" valign="bottom">- </TD>
    <TD align=left width="2%" height="15" bgcolor="#E6EFFF" valign="bottom" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left height="15" valign="bottom">
    <p style="text-indent: -15pt; margin-left: 15pt">&nbsp;Proceeds on disposal of assets held for sale </TD>
    <TD align=left width="1%" height="15" valign="bottom" ></TD>
    <TD align=right width="10%" height="15" valign="bottom">6,349 </TD>
    <TD align=left width="2%" height="15" valign="bottom" ></TD>
    <TD align=left width="1%" height="15" valign="bottom" ></TD>
    <TD align=right width="10%" height="15" valign="bottom">3,736 </TD>
    <TD align=left width="2%" height="15" valign="bottom" ></TD>
    <TD align=left width="1%" height="15" valign="bottom" ></TD>
    <TD align=right width="10%" height="15" valign="bottom">6,668 </TD>
    <TD align=left width="2%" height="15" valign="bottom" ></TD></TR>
  <TR vAlign=top>
    <TD align=left height="16" bgcolor="#E6EFFF" valign="bottom">
    <p style="text-indent: -15pt; margin-left: 15pt">&nbsp;Net decrease (increase) in other assets </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%" height="16" bgcolor="#E6EFFF" valign="bottom"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="10%" height="16" bgcolor="#E6EFFF" valign="bottom">1,629
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%" height="16" bgcolor="#E6EFFF" valign="bottom"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%" height="16" bgcolor="#E6EFFF" valign="bottom"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="10%" height="16" bgcolor="#E6EFFF" valign="bottom">2,826
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%" height="16" bgcolor="#E6EFFF" valign="bottom"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%" height="16" bgcolor="#E6EFFF" valign="bottom"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
    width="10%" height="16" bgcolor="#E6EFFF" valign="bottom">(4,608</TD>
    <TD align=left width="2%" height="16" bgcolor="#E6EFFF" valign="bottom" >) </TD></TR>
  <TR vAlign=top>
    <TD align=left height="15" valign="bottom">
    <p style="text-indent: -15pt; margin-left: 15pt">&nbsp; </TD>
    <TD align=left width="1%" height="15" valign="bottom" ></TD>
    <TD align=right width="10%" height="15" valign="bottom">(34,198</TD>
    <TD align=left width="2%" height="15" valign="bottom" >) </TD>
    <TD align=left width="1%" height="15" valign="bottom" ></TD>
    <TD align=right width="10%" height="15" valign="bottom">(227,287</TD>
    <TD align=left width="2%" height="15" valign="bottom" >) </TD>
    <TD align=left width="1%" height="15" valign="bottom" ></TD>
    <TD align=right width="10%" height="15" valign="bottom">(132,222</TD>
    <TD align=left width="2%" height="15" valign="bottom" >) </TD></TR>
  <TR>
    <TD height="15" bgcolor="#E6EFFF" valign="bottom">
    <p style="text-indent: -15pt; margin-left: 15pt">&nbsp; </TD>
    <TD width="1%" height="15" bgcolor="#E6EFFF" valign="bottom" >&nbsp;</TD>
    <TD width="10%" height="15" bgcolor="#E6EFFF" valign="bottom">&nbsp; </TD>
    <TD width="2%" height="15" bgcolor="#E6EFFF" valign="bottom" >&nbsp;</TD>
    <TD width="1%" height="15" bgcolor="#E6EFFF" valign="bottom" >&nbsp;</TD>
    <TD width="10%" height="15" bgcolor="#E6EFFF" valign="bottom">&nbsp; </TD>
    <TD width="2%" height="15" bgcolor="#E6EFFF" valign="bottom" >&nbsp;</TD>
    <TD width="1%" height="15" bgcolor="#E6EFFF" valign="bottom" >&nbsp;</TD>
    <TD width="10%" height="15" bgcolor="#E6EFFF" valign="bottom">&nbsp; </TD>
    <TD width="2%" height="15" bgcolor="#E6EFFF" valign="bottom" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left height="16" bgcolor="#E6EFFF" valign="bottom">
    <p style="text-indent: -15pt; margin-left: 15pt">Effect of exchange rate changes on cash and cash
      equivalents denominated in foreign currencies </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%" height="16" bgcolor="#E6EFFF" valign="bottom"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="10%" height="16" bgcolor="#E6EFFF" valign="bottom">105
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%" height="16" bgcolor="#E6EFFF" valign="bottom"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%" height="16" bgcolor="#E6EFFF" valign="bottom"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
    width="10%" height="16" bgcolor="#E6EFFF" valign="bottom">(202</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%" height="16" bgcolor="#E6EFFF" valign="bottom"
    >) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%" height="16" bgcolor="#E6EFFF" valign="bottom"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="10%" height="16" bgcolor="#E6EFFF" valign="bottom">219
    </TD>
    <TD align=left width="2%" height="16" bgcolor="#E6EFFF" valign="bottom" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left height="15" valign="bottom">
    <p style="text-indent: -15pt; margin-left: 15pt">Net increase (decrease) in cash and cash equivalents during
      the year </TD>
    <TD align=left width="1%" height="15" valign="bottom" ></TD>
    <TD align=right width="10%" height="15" valign="bottom">87,375 </TD>
    <TD align=left width="2%" height="15" valign="bottom" ></TD>
    <TD align=left width="1%" height="15" valign="bottom" ></TD>
    <TD align=right width="10%" height="15" valign="bottom">3,107 </TD>
    <TD align=left width="2%" height="15" valign="bottom" ></TD>
    <TD align=left width="1%" height="15" valign="bottom" ></TD>
    <TD align=right width="10%" height="15" valign="bottom">(19,757</TD>
    <TD align=left width="2%" height="15" valign="bottom" >) </TD></TR>
  <TR>
    <TD height="15" bgcolor="#E6EFFF" valign="bottom">
    <p style="text-indent: -15pt; margin-left: 15pt">&nbsp; </TD>
    <TD width="1%" height="15" bgcolor="#E6EFFF" valign="bottom" >&nbsp;</TD>
    <TD width="10%" height="15" bgcolor="#E6EFFF" valign="bottom">&nbsp; </TD>
    <TD width="2%" height="15" bgcolor="#E6EFFF" valign="bottom" >&nbsp;</TD>
    <TD width="1%" height="15" bgcolor="#E6EFFF" valign="bottom" >&nbsp;</TD>
    <TD width="10%" height="15" bgcolor="#E6EFFF" valign="bottom">&nbsp; </TD>
    <TD width="2%" height="15" bgcolor="#E6EFFF" valign="bottom" >&nbsp;</TD>
    <TD width="1%" height="15" bgcolor="#E6EFFF" valign="bottom" >&nbsp;</TD>
    <TD width="10%" height="15" bgcolor="#E6EFFF" valign="bottom">&nbsp; </TD>
    <TD width="2%" height="15" bgcolor="#E6EFFF" valign="bottom" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left height="16" bgcolor="#E6EFFF" valign="bottom">
    <p style="text-indent: -15pt; margin-left: 15pt">Cash and cash equivalents, beginning of year </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%" height="16" bgcolor="#E6EFFF" valign="bottom"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="10%" height="16" bgcolor="#E6EFFF" valign="bottom">12,357 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%" height="16" bgcolor="#E6EFFF" valign="bottom"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%" height="16" bgcolor="#E6EFFF" valign="bottom"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="10%" height="16" bgcolor="#E6EFFF" valign="bottom">9,250
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%" height="16" bgcolor="#E6EFFF" valign="bottom"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%" height="16" bgcolor="#E6EFFF" valign="bottom"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="10%" height="16" bgcolor="#E6EFFF" valign="bottom">29,007 </TD>
    <TD align=left width="2%" height="16" bgcolor="#E6EFFF" valign="bottom" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left height="16" valign="bottom">
    <p style="text-indent: -15pt; margin-left: 15pt">Cash and cash equivalents, end of year </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%" height="17" valign="bottom"
    >$</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right
      width="10%" height="17" valign="bottom">&nbsp;99,732 </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="2%" height="17" valign="bottom"
    ></TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%" height="17" valign="bottom"
    >$</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right
      width="10%" height="17" valign="bottom">&nbsp;12,357 </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="2%" height="17" valign="bottom"
    ></TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%" height="17" valign="bottom"
    >$</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right
      width="10%" height="17" valign="bottom">&nbsp;9,250 </TD>
    <TD align=left width="2%" height="16" valign="bottom" ></TD></TR>
  <TR>
    <TD height="16" valign="bottom">
    <p style="text-indent: -15pt; margin-left: 15pt">&nbsp; </TD>
    <TD width="1%" height="15" valign="bottom" ></TD>
    <TD width="10%" height="15" valign="bottom">&nbsp; </TD>
    <TD width="2%" height="15" valign="bottom" ></TD>
    <TD width="1%" height="15" valign="bottom" ></TD>
    <TD width="10%" height="15" valign="bottom">&nbsp; </TD>
    <TD width="2%" height="15" valign="bottom" ></TD>
    <TD width="1%" height="15" valign="bottom" ></TD>
    <TD width="10%" height="15" valign="bottom">&nbsp; </TD>
    <TD width="2%" height="16" valign="bottom" ></TD></TR>
  <TR vAlign=top>
    <TD align=left height="15" valign="bottom">
    <p style="text-indent: -15pt; margin-left: 15pt">Supplemental disclosure of cash flow information (note
      17(a)) </TD>
    <TD align=left width="1%" height="15" valign="bottom" ></TD>
    <TD align=left width="10%" height="15" valign="bottom">&nbsp; </TD>
    <TD align=left width="2%" height="15" valign="bottom" ></TD>
    <TD align=left width="1%" height="15" valign="bottom" ></TD>
    <TD align=left width="10%" height="15" valign="bottom">&nbsp; </TD>
    <TD align=left width="2%" height="15" valign="bottom" ></TD>
    <TD align=left width="1%" height="15" valign="bottom" ></TD>
    <TD align=left width="10%" height="15" valign="bottom">&nbsp; </TD>
    <TD align=left width="2%" height="15" valign="bottom" ></TD></TR>
  <TR>
    <TD height="15">&nbsp; </TD>
    <TD width="1%" height="15" ></TD>
    <TD width="10%" height="15">&nbsp; </TD>
    <TD width="2%" height="15" ></TD>
    <TD width="1%" height="15" ></TD>
    <TD width="10%" height="15">&nbsp; </TD>
    <TD width="2%" height="15" ></TD>
    <TD width="1%" height="15" ></TD>
    <TD width="10%" height="15">&nbsp; </TD>
    <TD width="2%" height="15" ></TD></TR>
  <TR vAlign=top>
    <TD align=left height="15">See accompanying notes to consolidated financial
      statements. </TD>
    <TD align=left width="1%" height="15" ></TD>
    <TD align=left width="10%" height="15">&nbsp; </TD>
    <TD align=left width="2%" height="15" ></TD>
    <TD align=left width="1%" height="15" ></TD>
    <TD align=left width="10%" height="15">&nbsp; </TD>
    <TD align=left width="2%" height="15" ></TD>
    <TD align=left width="1%" height="15" ></TD>
    <TD align=left width="10%" height="15">&nbsp; </TD>
    <TD align=left width="2%" height="15" ></TD></TR></TABLE>
<P align=right>GILDAN 2009 REPORT TO SHAREHOLDERS P.49</P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>



<table border="0" cellpadding="0" cellspacing="0" style="border-collapse: collapse" bordercolor="#111111" width="100%" id="AutoNumber7">
  <tr>
    <td width="50%" valign="bottom">
    <img border="0" src="gildan1.jpg" width="92" height="30"></td>
    <td width="50%" valign="bottom">
    <p align="right"><font size="2">NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</font></td>
  </tr>
</table>
<p>
<BR>
</p>
<P align="justify">
<B>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS </B></P>
<P align="justify">
<B>Years ended October 4, 2009, October 5, 2008 and September 30, 2007 <br>
(Tabular amounts in thousands or thousands of U.S. dollars except per share data, unless otherwise indicated) </B></P>
<P align="justify">
Gildan Activewear Inc. (the "Company") is incorporated under the Canada Business Corporations Act. Its principal business activity is the manufacture and sale of activewear, socks and underwear. The Company&#146;s fiscal year ends on the first
Sunday following September 28. All references to 2009, 2008 and 2007 represent the fiscal years ended October 4, 2009, October 5, 2008 and September 30, 2007, respectively. </P>
<P align="justify">
<B>1. SIGNIFICANT ACCOUNTING POLICIES:</B><BR>
</P>
<P align="justify">
The consolidated financial statements are expressed in U.S. dollars and have been prepared in accordance with Canadian generally accepted accounting principles. The Company&#146;s functional currency is the U.S. dollar. The principal accounting
policies of the Company are summarized as follows: </P>
<P align="justify">
<B>(a) </B>
</P>
<P align="justify" style="margin-left: 5%; margin-top: -25.5pt">
<B>Basis of presentation:</B><BR>
</P>
<P align="justify" style="margin-left: 5%">
The accompanying consolidated financial statements include the accounts of the Company and its subsidiaries. The consolidated financial statements also include the accounts of a yarn spinning joint venture with Frontier Spinning Mills, Inc., CanAm
Yarns LLC (&#147;CanAm&#148;), as the Company is considered the primary beneficiary of this entity. All significant intercompany balances and transactions have been eliminated on consolidation. </P>
<P align="justify" style="margin-left: 5%">
<B><I>Statement of earnings classification:</I></B> </P>
<P align="justify" style="margin-left: 5%">
Effective the first quarter of fiscal 2009, the Company changed certain classifications of its statement of earnings and comprehensive income with retrospective application to comparative figures presented for prior periods. These new
classifications align the results of operations by function and incorporate presentation requirements under the Canadian Institute of Chartered Accountants (CICA) Handbook Section 3031, <I>Inventories</I>, which has been adopted effective the first
quarter of fiscal 2009. Pursuant to the requirements of Section 3031, depreciation expense related to manufacturing activities is now included in cost of sales. The remaining depreciation and amortization expense has been reclassified to selling,
general and administrative expenses. Depreciation and amortization expense is therefore no longer presented as a separate caption on the statement of earnings and comprehensive income. In addition, the Company reclassified certain other items in its
statement of earnings and comprehensive income. Outbound freight to customers, previously classified within selling, general and administrative expenses, is now reported within cost of sales. Also, a new caption is now presented for financial
expenses and income, which includes interest income and expenses (including mark-to-market adjustments of interest rate swap contracts), foreign exchange gains and losses (including mark-to-market adjustments of forward foreign exchange contracts),
and other financial charges. Interest expense net of interest income was previously reported as a separate caption, while foreign exchange gains and losses were previously included in cost of sales. Other financial charges were previously reflected
in selling, general and administrative expenses. For the year ended October 5, 2008 these changes in classification have resulted in a decrease of &#36;63.8 million (2007 - &#36;47.8 million) and &#36;8.7 million (2007 - &#36;11.1 million) in gross
profit and selling, general and administrative expenses, respectively, compared to the amounts previously reported. The decrease of &#36;63.8 million (2007 - &#36;47.8 million) in gross profit is due to reclassifications of &#36;44.1 million (2007 -
&#36;30.4 million) of depreciation and amortization expense, &#36;20.6 million (2007 - &#36;16.7 million) of outbound freight to customers less &#36;0.9 million (2007 &#150; plus &#36;0.7 million of foreign exchange gain) of foreign exchange loss
and other financial income. There was no impact on net earnings as a result of these changes in classification. </P>
<P align="right">
GILDAN 2009 REPORT TO SHAREHOLDERS P.50</P>

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<table border="0" cellpadding="0" cellspacing="0" style="border-collapse: collapse" bordercolor="#111111" width="100%" id="AutoNumber8">
  <tr>
    <td width="50%" valign="bottom">
    <img border="0" src="gildan1.jpg" width="92" height="30"></td>
    <td width="50%" valign="bottom">
    <p align="right"><font size="2">NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</font></td>
  </tr>
</table>
<P align="justify">
<BR>
</P>
<P align="justify">
<B>1. SIGNIFICANT ACCOUNTING POLICIES (continued):</B></P>
<P align="justify">
<B>(b) </B>
</P>
<P align="justify" style="margin-left: 5%; margin-top: -25.5pt">
<B>Adoption of new accounting standards: </B><BR>
</P>
<P align="justify" style="margin-left: 5%">
<B><I>Inventories: </I></B></P>
<P align="justify" style="margin-left: 5%">
Effective the commencement of its 2009 fiscal year, the Company adopted CICA Handbook Section 3031, <I>Inventories</I>, which replaced Section 3030, <I>Inventories,</I> and harmonized the Canadian standards related to inventories with International
Financial Reporting Standards (IFRS). This Section, which was issued in June 2007, provides changes to the measurement of, and more extensive guidance on, the determination of cost, including allocation of overhead; narrows the permitted cost
formulas; requires impairment testing; clarifies that major spare parts not in use should be included in property, plant and equipment; and expands the disclosure requirements to increase transparency. The Company compared the requirements of this
new Section with its current measurement and determination of costs and concluded that the new Section did not have a significant impact on the results of operations. The Company previously included and will continue to include the amount of
depreciation related to manufacturing activities as a component of the cost of inventories. However, the new Section requires depreciation expense related to inventories which have been sold to be presented in cost of sales. As a result, effective
the first quarter of fiscal 2009, depreciation expense related to manufacturing activities was reclassified to cost of sales. </P>
<P align="justify" style="margin-left: 5%">
See the section, Statement of earnings classification, in note 1(a) above and note 3 for the new disclosure requirements related to the adoption of Section 3031. </P>
<P align="justify" style="margin-left: 5%">
<B><I>General Standards of Financial Statement Presentation: </I></B></P>
<P align="justify" style="margin-left: 5%">
Effective the commencement of its 2009 fiscal year, the Company adopted the amendment of CICA Handbook Section 1400, <I>General Standards of Financial Statement Presentation</I>, which is effective for fiscal year&#146;s beginning on or after
October 1, 2008 and which includes requirements to assess and disclose the Company&#146;s ability to continue as a going concern. The adoption of the amended Section did not have an impact on the consolidated financial statements of the Company.
</P>
<P align="justify" style="margin-left: 5%">
<B><I>Goodwill and intangible assets: </I></B></P>
<P align="justify" style="margin-left: 5%">
In February 2008, Canada&#146;s Accounting Standard&#146;s Board (AcSB) issued CICA Handbook Section 3064, <I>Goodwill and Intangible Assets</I>, replacing Section 3062, <I>Goodwill and Other Intangible Assets</I>, and Section 3450, <I>Research and
Development Costs</I>. Section 3064 establishes revised standards for the recognition, measurement, presentation and disclosure of goodwill and intangible assets. The new Section also provides guidance for the treatment of preproduction and start-up
costs and requires that these costs be expensed as incurred. This Section applies to annual financial statements relating to the Company&#146;s fiscal year beginning on October 6, 2008 and has been adopted on a retrospective basis effective from the
first quarter of fiscal 2009.</P>
<P align="justify" style="margin-left: 5%">
Prior to the adoption of Section 3064, the Company deferred and amortized plant start-up costs on a straight-line basis over two years. The impact of adopting this Section, on a retrospective basis, was an increase of &#36;1.8 million in net
earnings for fiscal 2008 (increase of &#36;0.01 in basic and diluted earnings per share), and a decrease in net earnings of &#36;1.0 million for fiscal 2007 (decrease of &#36;0.01 in basic and diluted earnings per share). The adoption of this
Section also resulted in a decrease of &#36;0.8 million in other assets as at October 5, 2008 and a decrease of &#36;1.6 million in shareholders&#146; equity as at October 1, 2006. </P>
<P align="justify" style="margin-left: 5%">
<B><I>Credit risk and the fair value of financial assets and financial liabilities: </I></B></P>
<P align="justify" style="margin-left: 5%">
On January 20, 2009, the Emerging Issues Committee (EIC) of the AcSB issued EIC Abstract 173, <I>Credit Risk and Fair Value of Financial Assets and Financial Liabilities</I>, which establishes that an entity&#146;s own credit risk and the credit
risk of the counterparty should be taken into account in determining the fair value of financial assets and financial liabilities, including derivative instruments. EIC 173 should be applied retrospectively without restatement of prior years to all
financial assets and liabilities measured at fair value in interim and annual financial statements for periods ending on or after January 20, 2009 and was applicable to the Company for its second quarter of fiscal 2009 with retrospective
application, if any, to the beginning of its current fiscal year. The adoption of EIC 173 did not have an impact on the consolidated financial statements of the Company. </P>
<P align="right">
GILDAN 2009 REPORT TO SHAREHOLDERS P.51</P>

<HR noshade align="center" width="100%" size=5 color="black" style="page-break-after:always;">




<table border="0" cellpadding="0" cellspacing="0" style="border-collapse: collapse" bordercolor="#111111" width="100%" id="AutoNumber9">
  <tr>
    <td width="50%" valign="bottom">
    <img border="0" src="gildan1.jpg" width="92" height="30"></td>
    <td width="50%" valign="bottom">
    <p align="right"><font size="2">NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</font></td>
  </tr>
</table>
<P align="justify">
<BR>
</P>
<P align="justify">
<B>1. SIGNIFICANT ACCOUNTING POLICIES (continued):</B><BR>
</P>
<TABLE BCLLIST style="font-size:10pt;border-color:black;border-collapse:collapse;" cellpadding="0" cellspacing="0" width="100%" border="0">
<TR>
	<TD width=5% valign=top>
<B>(b)</B> 	</TD>
	<TD>
<P align="justify"><B>Adoption of new accounting standards (continued):</B></P>
	</TD>
</TR>
<TR><TD>&nbsp;</TD><TD>&nbsp;</TD></TR><TR>
<TD width=5%></TD>	<TD>
<P align="justify"><B><I>Financial Instruments &#150; Disclosures:</I></B></P>
	</TD>
</TR>
<TR><TD>&nbsp;</TD><TD>&nbsp;</TD></TR><TR>
<TD width=5%></TD>	<TD>
<P align="justify">In June 2009, the AcSB issued amendments to CICA Handbook Section 3862, <I>Financial Instruments &#150; Disclosures </I>in order to align with International Financial Reporting Standard IFRS 7, <I>Financial Instruments:
Disclosures</I>. This Section has been amended to include additional disclosure requirements about fair value measurements of financial instruments and to enhance liquidity risk disclosure. The amendments establish a three-tier fair value hierarchy,
which prioritizes the inputs used in measuring fair value. These tiers include: Level 1, defined as observable inputs such as quoted prices in active markets; Level 2, defined as inputs other than quoted prices in active markets that are either
directly or indirectly observable; and Level 3, defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions. The amendments apply to annual financial statements relating to
fiscal years ended after September 30, 2009 and are applicable to the Company as at October 4, 2009. The amended Section relates to disclosure only and did not impact the financial results of the Company. As at October 4, 2009, the Company held no
assets or liabilities required to be measured at fair value except for cash and cash equivalents which was measured using Level 2 inputs in the fair value hierarchy.</P>
	</TD>
</TR>
<TR><TD>&nbsp;</TD><TD>&nbsp;</TD></TR><TR>
	<TD width=5% valign=top>
<B>(c)</B> 	</TD>
	<TD>
<P align="justify"><B>Future accounting standards:</B></P>
	</TD>
</TR>
<TR><TD>&nbsp;</TD><TD>&nbsp;</TD></TR><TR>
<TD width=5%></TD>	<TD>
<P align="justify"><B><I>Business combinations:</I></B></P>
	</TD>
</TR>
<TR><TD>&nbsp;</TD><TD>&nbsp;</TD></TR><TR>
<TD width=5%></TD>	<TD>
<P align="justify">In January 2009, the AcSB issued CICA Handbook Section 1582, <I>Business Combinations</I>, which replaces Section 1581, <I>Business Combinations</I>, and provides the equivalent to IFRS 3, <I>Business Combinations </I>(January
2008). The new Section expands the definition of a business subject to an acquisition and establishes significant new guidance on the measurement of consideration given, and the recognition and measurement of assets acquired and liabilities assumed
in a business combination. The new Section requires that all business acquisitions be measured at the full fair value of the acquired entity at the acquisition date even if the business combination is achieved in stages, or if less than 100 percent
of the equity interest in the acquiree is owned at the acquisition date. The measurement of equity consideration given in a business combination will no longer be based on the average of the fair value of the shares a few days before and after the
day the terms and conditions have been agreed to and the acquisition announced, but rather at the acquisition date. Subsequent changes in fair value of contingent consideration classified as a liability will be recognized in earnings and not as an
adjustment to the purchase price. Restructuring and other direct costs of a business combination are no longer considered part of the acquisition accounting. Instead, such costs will be expensed as incurred, unless they constitute the costs
associated with issuing debt or equity securities. The Section applies prospectively to business combinations for which the acquisition date is on or after the beginning of the first annual reporting period beginning on or after January 1, 2011.
Earlier adoption is permitted. This new Section will only have an impact on our consolidated financial statements for future acquisitions that will be made in periods subsequent to the date of adoption. The Company is currently considering early
adoption of Section 1582.</P>
	</TD>
</TR>
<TR><TD>&nbsp;</TD><TD>&nbsp;</TD></TR><TR>
<TD width=5%></TD>	<TD>
<P align="justify"><B><I>Consolidated financial statements and non-controlling interests:</I></B></P>
	</TD>
</TR>
<TR><TD>&nbsp;</TD><TD>&nbsp;</TD></TR><TR>
<TD width=5%></TD>	<TD>
<P align="justify">In January 2009, the AcSB issued CICA Handbook Section 1601, <I>Consolidated Financial Statements</I>, and Handbook Section 1602, <I>Non-Controlling Interests</I>, which together replace Section 1600, <I>Consolidated Financial
Statements</I>. These two Sections are the equivalent to the corresponding provisions of International Accounting Standard 27, <I>Consolidated and Separate Financial Statements </I>(January 2008) under IFRS. Section 1602 applies to the accounting
for non-controlling interests and transactions with non-controlling interest holders in consolidated financial statements. The new Sections require that, for each business combination, the acquirer measure any non-controlling interest in the
acquiree either at fair value or at the non-controlling interest's proportionate share of the acquiree's identifiable net assets. The new Sections also require non-controlling interest to be presented as a separate component of shareholders' equity.
Under Section 1602, non-controlling interest in income is not deducted in arriving at consolidated net income or other comprehensive income. Rather, net income and each component of other comprehensive income are allocated to the controlling and
non-controlling interests based on relative ownership interests. These Sections apply to interim and annual consolidated financial statements relating to fiscal years beginning on or after January 1, 2011, and should be adopted concurrently with
Section 1582. Earlier adoption is permitted which would be effective as of the beginning of the fiscal year of adoption. The Company is currently considering early adoption of Section 1582, which would result in the reclassification of the
non-controlling interest in consolidated joint venture from a separate item on the consolidated balance sheet to a separate component of shareholders&#146; equity for all periods presented.</P>
	</TD>
</TR>
</TABLE>
<P align="right">
GILDAN 2009 REPORT TO SHAREHOLDERS P.52</P>

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<table border="0" cellpadding="0" cellspacing="0" style="border-collapse: collapse" bordercolor="#111111" width="100%" id="AutoNumber10">
  <tr>
    <td width="50%" valign="bottom">
    <img border="0" src="gildan1.jpg" width="92" height="30"></td>
    <td width="50%" valign="bottom">
    <p align="right"><font size="2">NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</font></td>
  </tr>
</table>
<P align=justify><BR></P>
<P align=justify><B>1. SIGNIFICANT ACCOUNTING POLICIES (continued):</B><BR></P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0 BCLLIST>

  <TR>
    <TD vAlign=top width="5%"><B>(c)</B> </TD>
    <TD>
      <P align=justify><B>Future accounting standards (continued):</B></P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD>
      <P align=justify><B><I>International Financial Reporting
      Standards</I></B></P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD>
      <P align=justify>In February 2008, the AcSB confirmed that IFRS, as issued
      by the International Accounting Standards Board, will replace Canadian
      generally accepted accounting principles for publicly accountable
      enterprises effective for fiscal years beginning on or after January 1,
      2011. As a result, the Company will be required to change over to IFRS for
      its fiscal 2012 interim and annual financial statements with comparative
      information for fiscal 2011.</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD>
      <P align=justify>In preparation for the changeover to IFRS, the Company
      has developed an IFRS transition plan. The Company has completed its
      initial phase, comprised of a diagnostic process, which involved a
      comparison of the Company&#146;s current accounting policies under Canadian
      generally accepted accounting principles with currently issued IFRS. The
      identified differences are being analyzed and will be addressed according
      to the level of impact they will have on the key elements of the
      transition plan. These key elements include: accounting policies,
      including choices among policies permitted under IFRS; information
      technology and data systems; internal control over financial reporting;
      disclosure controls and procedures, including investor relations and
      external communications plans; and business activities.</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD>
      <P align=justify>As the IFRS transition plan progresses, the Company will
      continue to report on the status of the transition plan and provide more
      detailed information of the impact on the key elements indicated
    above.</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top width="5%"><B>(d)</B> </TD>
    <TD>
      <P align=justify><B>Cash and cash equivalents:</B></P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD>
      <P align=justify>The Company considers all liquid investments with
      maturities of three months or less when acquired to be cash
      equivalents.</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top width="5%"><B>(e)</B> </TD>
    <TD>
      <P align=justify><B>Inventories:</B></P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD>
      <P align=justify>Inventories are stated at the lower of First-In First-Out
      cost and net realizable value. Inventory costs include the purchase price
      and other costs directly related to the acquisition of materials.
      Inventory costs also include the costs directly related to the conversion
      of materials to finished goods, such as direct labour, and a systematic
      allocation of fixed and variable production overhead, including
      manufacturing depreciation expense. The allocation of fixed production
      overhead to the cost of inventories is based on the normal capacity of
      the production facilities. Normal capacity is the average production
      expected to be achieved over a number of periods under normal
      circumstances.</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top width="5%"><B>(f)</B> </TD>
    <TD>
      <P align=justify><B>Property, plant and equipment:</B></P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD>
      <P align=justify>Property, plant and equipment are recorded at cost.
      Depreciation and amortization are recorded on a straight-line basis over
      the estimated useful lives of the assets at the following annual
    rates:</P></TD></TR></TABLE>
<p><BR>
</p>
<div align="right">
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="95%" border=0>

  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>Asset </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="50%">
    <p style="margin-right: 20pt">Rate
    </TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Buildings and improvements </TD>
    <TD align=right width="50%" bgColor=#e6efff>
    <p style="margin-right: 20pt">2 1/2% to 20% </TD></TR>
  <TR vAlign=top>
    <TD align=left>Equipment </TD>
    <TD align=right width="50%">
    <p style="margin-right: 20pt">10% to 25% </TD></TR></TABLE>
</div>
<P align=justify style="margin-left: 5%">Assets not in service include expenditures incurred to date for
plant expansions which are still in process and equipment not yet in service as
at the balance sheet date. Depreciation on these assets commences when the
assets are put into service. </P>
<P align=justify style="margin-left: 5%">The cost of information technology projects including
internally developed software is capitalized and included in equipment
commencing at the point at which conceptual formulation, design and testing of
possible software project alternatives are complete and management authorizes
and commits to funding the project. The Company does not capitalize pilot
projects where it believes that future economic benefits are less than probable.
The costs of information technology projects that are capitalized include the
cost of software tools and licenses used in the development of the projects as
well as direct payroll and consulting costs.</P>
<P align=right>GILDAN 2009 REPORT TO SHAREHOLDERS P.53</P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>



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  <tr>
    <td width="50%" valign="bottom">
    <img border="0" src="gildan1.jpg" width="92" height="30"></td>
    <td width="50%" valign="bottom">
    <p align="right"><font size="2">NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</font></td>
  </tr>
</table>
<P align="justify">
<BR>
</P>
<P align="justify">
<B>1. SIGNIFICANT ACCOUNTING POLICIES (continued):</B><BR>
</P>
<TABLE BCLLIST style="font-size:10pt;border-color:black;border-collapse:collapse;" cellpadding="0" cellspacing="0" width="100%" border="0">
<TR>
	<TD width=5% valign=top>
<B>(g)</B> 	</TD>
	<TD>
<P align="justify"><B>Assets held for sale:</B></P>
	</TD>
</TR>
<TR><TD>&nbsp;</TD><TD>&nbsp;</TD></TR><TR>
<TD width=5%></TD>	<TD>
<P align="justify">Long-lived assets are classified as held for sale when certain criteria are met, which include: the Company&#146;s commitment to a plan to sell the assets; the assets are available for immediate sale in their present condition; an
active program to locate buyers and other actions to sell the assets have been initiated; the sale of the assets is probable and their transfer is expected to qualify for recognition as a completed sale within one year; the assets are being actively
marketed at reasonable prices in relation to their fair value; and it is unlikely that significant changes will be made to the plan to sell the assets or that the plan will be withdrawn.</P>
	</TD>
</TR>
<TR><TD>&nbsp;</TD><TD>&nbsp;</TD></TR><TR>
<TD width=5%></TD>	<TD>
<P align="justify">The Company measures assets held for sale at the lower of carrying amount or fair value less cost to sell. These assets are not depreciated.</P>
	</TD>
</TR>
<TR><TD>&nbsp;</TD><TD>&nbsp;</TD></TR><TR>
	<TD width=5% valign=top>
<B>(h)</B> 	</TD>
	<TD>
<P align="justify"><B>Intangible assets:</B></P>
	</TD>
</TR>
<TR><TD>&nbsp;</TD><TD>&nbsp;</TD></TR><TR>
<TD width=5%></TD>	<TD>
<P align="justify">Intangible assets, which consist of acquired customer contracts and customer relationships, are being amortized on a straight-line basis over a period of twenty years.</P>
	</TD>
</TR>
<TR><TD>&nbsp;</TD><TD>&nbsp;</TD></TR><TR>
	<TD width=5% valign=top>
<B>(i)</B> 	</TD>
	<TD>
<P align="justify"><B>Goodwill:</B></P>
	</TD>
</TR>
<TR><TD>&nbsp;</TD><TD>&nbsp;</TD></TR><TR>
<TD width=5%></TD>	<TD>
<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>
	</TD>
</TR>
<TR><TD>&nbsp;</TD><TD>&nbsp;</TD></TR><TR>
	<TD width=5% valign=top>
<B>(j)</B> 	</TD>
	<TD>
<P align="justify"><B>Impairment of long-lived assets:</B></P>
	</TD>
</TR>
<TR><TD>&nbsp;</TD><TD>&nbsp;</TD></TR><TR>
<TD width=5%></TD>	<TD>
<P align="justify">Long-lived assets, consisting of property, plant and equipment and intangible assets with finite lives, are reviewed for potential impairment whenever events or changes in circumstances indicate that the carrying amounts of such
assets may not be recoverable. An impairment loss would be recognized when the estimated undiscounted future cash flows expected to result from the use of an asset and its eventual disposition are less than its carrying amount. The amount of the
impairment loss recognized is measured as the amount by which the carrying value for an asset exceeds the fair value of the asset, with fair value being determined based upon discounted cash flows or appraised values, depending on the nature of the
asset.</P>
	</TD>
</TR>
<TR><TD>&nbsp;</TD><TD>&nbsp;</TD></TR><TR>
	<TD width=5% valign=top>
<B>(k)</B> 	</TD>
	<TD>
<P align="justify"><B>Foreign currency translation:</B></P>
	</TD>
</TR>
<TR><TD>&nbsp;</TD><TD>&nbsp;</TD></TR><TR>
<TD width=5%></TD>	<TD>
<P align="justify">Monetary assets and liabilities of the Canadian and foreign operations denominated in currencies other than U.S. dollars are translated at the rates of exchange at the balance sheet date. Other balance sheet items, denominated in
currencies other than U.S. dollars, are translated at the rates prevailing at the respective transaction dates. Income and expenses, denominated in currencies other than U.S. dollars, are translated at average rates prevailing during the year. Gains
or losses on foreign exchange are recorded in the consolidated statements of earnings.</P>
	</TD>
</TR>
<TR><TD>&nbsp;</TD><TD>&nbsp;</TD></TR><TR>
<TD width=5%></TD>	<TD>
<P align="justify">The foreign subsidiaries are considered to be integrated foreign operations, and their accounts have been translated using the temporal method with translation gains and losses included in the consolidated statements of earnings.
The Company does not currently have any self-sustaining foreign subsidiaries.</P>
	</TD>
</TR>
<TR><TD>&nbsp;</TD><TD>&nbsp;</TD></TR><TR>
	<TD width=5% valign=top>
<B>(l)</B> 	</TD>
	<TD>
<P align="justify"><B>Revenue recognition:</B></P>
	</TD>
</TR>
<TR><TD>&nbsp;</TD><TD>&nbsp;</TD></TR><TR>
<TD width=5%></TD>	<TD>
<P align="justify">Revenue is recognized upon shipment of products to customers, since title passes upon shipment, and when the selling price is fixed or determinable. At the time of sale, estimates are made for customer price discounts and volume
rebates based on the terms of existing programs. Accruals required for new programs, which relate to prior sales, are recorded at the time the new program is introduced. Sales are recorded net of these program costs and a provision for estimated
sales returns, which is based on historical experience, current trends and other known factors, and exclude sales taxes.</P>
	</TD>
</TR>
<TR><TD>&nbsp;</TD><TD>&nbsp;</TD></TR><TR>
	<TD width=5% valign=top>
<B>(m)</B> 	</TD>
	<TD>
<P align="justify"><B>Trade accounts receivable:</B></P>
	</TD>
</TR>
<TR><TD>&nbsp;</TD><TD>&nbsp;</TD></TR><TR>
<TD width=5%></TD>	<TD>
<P align="justify">Trade accounts receivable consist of amounts due from our normal business activities. We maintain an allowance for doubtful accounts to reflect expected credit losses. We provide for bad debts based on collection history and
specific risks identified on a customer-by-customer basis. Uncollected accounts are written off through the allowance for doubtful accounts.</P>
	</TD>
</TR>
</TABLE>
<P align="right">
GILDAN 2009 REPORT TO SHAREHOLDERS P.54</P>

<HR noshade align="center" width="100%" size=5 color="black" style="page-break-after:always;">




<table border="0" cellpadding="0" cellspacing="0" style="border-collapse: collapse" bordercolor="#111111" width="100%" id="AutoNumber12">
  <tr>
    <td width="50%" valign="bottom">
    <img border="0" src="gildan1.jpg" width="92" height="30"></td>
    <td width="50%" valign="bottom">
    <p align="right"><font size="2">NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</font></td>
  </tr>
</table>
<P align="justify">
<BR>
</P>
<P align="justify">
<B>1. SIGNIFICANT ACCOUNTING POLICIES (continued):</B><BR>
</P>
<TABLE BCLLIST style="font-size:10pt;border-color:black;border-collapse:collapse;" cellpadding="0" cellspacing="0" width="100%" border="0">
<TR>
	<TD width=5% valign=top>
<B>(n)</B> 	</TD>
	<TD>
<P align="justify"><B>Cost of sales and gross profit:</B></P>
	</TD>
</TR>
<TR><TD>&nbsp;</TD><TD>&nbsp;</TD></TR><TR>
<TD width=5%></TD>	<TD>
<P align="justify">Cost of sales includes all raw material costs, manufacturing conversion costs, including manufacturing depreciation expense, sourcing costs, transportation costs incurred until the receipt of finished goods at the Company&#146;s
distribution facilities, and outbound freight to customers. Cost of sales also includes costs relating to purchasing, receiving and inspection activities, manufacturing administration, third-party manufacturing services, insurance, internal
transfer of inventories and customs and duties.</P>
	</TD>
</TR>
<TR><TD>&nbsp;</TD><TD>&nbsp;</TD></TR><TR>
<TD width=5%></TD>	<TD>
<P align="justify">Gross profit is the result of sales less cost of sales. The Company&#146;s gross profit may not be comparable to this metric as reported by other companies, since some entities exclude depreciation expense and outbound freight to
customers from cost of sales.</P>
	</TD>
</TR>
<TR><TD>&nbsp;</TD><TD>&nbsp;</TD></TR><TR>
	<TD width=5% valign=top>
<B>(o)</B> 	</TD>
	<TD>
<P align="justify"><B>Selling, general and administrative expenses:</B></P>
	</TD>
</TR>
<TR><TD>&nbsp;</TD><TD>&nbsp;</TD></TR><TR>
<TD width=5%></TD>	<TD>
<P align="justify">Selling, general and administrative (SG&amp;A) expenses include warehousing and handling costs, selling and administrative personnel costs, advertising and marketing expenses, costs of leased facilities and equipment, professional
fees, non-manufacturing depreciation expense, and other general and administrative expenses. SG&amp;A expenses also include amortization of customer-related intangible assets and bad debt expense.</P>
	</TD>
</TR>
<TR><TD>&nbsp;</TD><TD>&nbsp;</TD></TR><TR>
	<TD width=5% valign=top>
<B>(p)</B> 	</TD>
	<TD>
<P align="justify"><B>Advertising and product introduction expenditures:</B></P>
	</TD>
</TR>
<TR><TD>&nbsp;</TD><TD>&nbsp;</TD></TR><TR>
<TD width=5%></TD>	<TD>
<P align="justify">Advertising and co-op advertising expenses are expensed as incurred in selling, general and administrative expenses. Product introduction expenditures are one-time fees paid to retailers to allow the Company&#146;s products to be
placed on store shelves. These fees are recognized as a reduction in revenue when incurred unless the Company receives a benefit over a period of time and certain other criteria are met, such as recoverability and enforceability. In this case, these
fees are recorded as an asset and are amortized as a reduction of revenue over the term of the arrangement. The Company evaluates the recoverability of these assets on a quarterly basis.</P>
	</TD>
</TR>
<TR><TD>&nbsp;</TD><TD>&nbsp;</TD></TR><TR>
	<TD width=5% valign=top>
<B>(q)</B> 	</TD>
	<TD>
<P align="justify"><B>Cotton and yarn procurements:</B></P>
	</TD>
</TR>
<TR><TD>&nbsp;</TD><TD>&nbsp;</TD></TR><TR>
<TD width=5%></TD>	<TD>
<P align="justify">The Company contracts to buy cotton and yarn with future delivery dates at fixed prices in order to reduce the effects of fluctuations in the prices of cotton used in the manufacture of its products. These contracts are not used
for trading purposes. The Company commits to fixed prices on a percentage of its cotton and yarn requirements up to eighteen months in the future. If the cost of committed prices for cotton and yarn plus estimated costs to complete production exceed
current selling prices, a loss is recognized for the excess as a charge to cost of sales.</P>
	</TD>
</TR>
<TR><TD>&nbsp;</TD><TD>&nbsp;</TD></TR><TR>
	<TD width=5% valign=top>
<B>(r)</B> 	</TD>
	<TD>
<P align="justify"><B>Financial instruments and hedging relationships:</B></P>
	</TD>
</TR>
<TR><TD>&nbsp;</TD><TD>&nbsp;</TD></TR><TR>
<TD width=5%></TD>	<TD>
<P align="justify">All financial instruments are classified into one of the following five categories: held-for-trading, held-to-maturity investments, loans and receivables, available-for-sale financial assets or other financial liabilities. All
financial instruments, including derivatives, are included on the consolidated balance sheet and are measured at fair market value with the exception of loans and receivables, held-to-maturity investments and other financial liabilities, which are
measured at amortized cost. Subsequent measurement and recognition of changes in fair value of financial instruments depend on their initial classification. Held-for-trading financial investments are measured at fair value and all gains and losses
are included in net earnings in the period in which they arise. Available-for-sale financial instruments are measured at fair value with revaluation gains and losses included in other comprehensive income until the asset is removed from the balance
sheet.</P>
	</TD>
</TR>
</TABLE>
<P align="right">
GILDAN 2009 REPORT TO SHAREHOLDERS P.55</P>

<HR noshade align="center" width="100%" size=5 color="black" style="page-break-after:always;">




<table border="0" cellpadding="0" cellspacing="0" style="border-collapse: collapse" bordercolor="#111111" width="100%" id="AutoNumber13">
  <tr>
    <td width="50%" valign="bottom">
    <img border="0" src="gildan1.jpg" width="92" height="30"></td>
    <td width="50%" valign="bottom">
    <p align="right"><font size="2">NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</font></td>
  </tr>
</table>
<P align="justify">
<BR>
</P>
<P align="justify">
<B>1. SIGNIFICANT ACCOUNTING POLICIES (continued):</B><BR>
</P>
<TABLE BCLLIST style="font-size:10pt;border-color:black;border-collapse:collapse;" cellpadding="0" cellspacing="0" width="100%" border="0">
<TR>
	<TD width=5% valign=top>
<B>(r)</B> 	</TD>
	<TD>
<P align="justify"><B>Financial instruments and hedging relationships (continued):</B></P>
	</TD>
</TR>
<TR><TD>&nbsp;</TD><TD>&nbsp;</TD></TR><TR>
<TD width=5%></TD>	<TD>
<P align="justify">Derivative instruments are recorded as either assets or liabilities measured at their fair value unless exempted from derivative treatment as a normal purchase and sale. Certain derivatives embedded in other contracts must also be
measured at fair value. All changes in the fair value of derivatives are recognized in net earnings unless specific hedge criteria are met, which requires that a company must formally document, designate and assess the effectiveness of transactions
that receive hedge accounting. Derivatives that qualify as hedging instruments must be designated as either a &#147;cash flow hedge,&#148; when the hedged item is a future cash flow, or a &#147;fair value hedge,&#148; when the hedged item is a
recognized asset or liability. The effective portion of unrealized gains and losses related to a cash flow hedge are included in other comprehensive income. For a cash flow hedge, when hedging instruments become ineffective before their maturity or
the hedging relationship is terminated, any gains, losses, revenues or expenses associated with the hedging item that had previously been recognized in other comprehensive income as a result of applying hedge accounting are carried forward to be
recognized in net earnings in the same period as the hedged item affects net earnings to the extent that it is probable that the forecasted cash flows will occur. For a fair value hedge, both the derivative and the hedged item are recorded at fair
value in the consolidated balance sheet and the unrealized gains and losses from both items are included in net earnings. Any derivative instrument that does not qualify for hedge accounting is marked-to-market at each reporting date and the gains
or losses are included in net earnings.</P>
	</TD>
</TR>
<TR><TD>&nbsp;</TD><TD>&nbsp;</TD></TR><TR>
<TD width=5%></TD>	<TD>
<P align="justify">The Company has classified cash equivalents as held-for-trading. The Company has also classified accounts receivable as loans and receivables, and accounts payable and long-term debt as other financial liabilities, all of which
are measured at amortized cost.</P>
	</TD>
</TR>
<TR><TD>&nbsp;</TD><TD>&nbsp;</TD></TR><TR>
<TD width=5%></TD>	<TD>
<P align="justify">The Company may periodically use derivative financial instruments to manage risks related to fluctuations in exchange rates, commodity prices and interest rates. Derivative financial instruments are not used for trading purposes.
Forward foreign exchange contracts are entered into with maturities not exceeding twenty-four months.</P>
	</TD>
</TR>
<TR><TD>&nbsp;</TD><TD>&nbsp;</TD></TR><TR>
<TD width=5%></TD>	<TD>
<P align="justify">When the Company utilizes derivatives in hedge accounting relationships, the Company formally documents all relationships between hedging instruments and hedged items, as well as its risk management objective and strategy for
undertaking various hedge transactions. This process includes linking all derivatives to specific assets and liabilities on the balance sheet or to specific firm commitments or anticipated transactions. The Company also formally assesses, both at
the hedge&#146;s inception and on an ongoing basis, whether the derivatives that are used in hedging transactions are effective in offsetting cash flows of hedged items.</P>
	</TD>
</TR>
<TR><TD>&nbsp;</TD><TD>&nbsp;</TD></TR><TR>
<TD width=5%></TD>	<TD>
<P align="justify">As at October 4, 2009, there were no derivative financial instruments outstanding. As at October 5, 2008, all forward foreign exchange contracts were reported on a mark-to-market basis, and the gains or losses were included in net
earnings. The Company elected not to apply hedge accounting for these derivatives.</P>
	</TD>
</TR>
<TR><TD>&nbsp;</TD><TD>&nbsp;</TD></TR><TR>
	<TD width=5% valign=top>
<B>(s)</B> 	</TD>
	<TD>
<P align="justify"><B>Comprehensive income:</B></P>
	</TD>
</TR>
<TR><TD>&nbsp;</TD><TD>&nbsp;</TD></TR><TR>
<TD width=5%></TD>	<TD>
<P align="justify">Comprehensive income, which consists of net earnings and other comprehensive income, is defined as the change in shareholders&#146; equity from transactions and other events from non-owner sources. Other comprehensive income
refers to items recognized in comprehensive income but that are excluded from net earnings calculated in accordance with generally accepted accounting principles and includes unrealized gains and losses on financial assets classified as available
for sale, unrealized foreign currency translation gains and losses arising from self- sustaining foreign subsidiaries and changes in the fair value of the effective portion of qualifying cash flow hedging instruments.</P>
	</TD>
</TR>
<TR><TD>&nbsp;</TD><TD>&nbsp;</TD></TR><TR>
	<TD width=5% valign=top>
<B>(t)</B> 	</TD>
	<TD>
<P align="justify"><B>Income taxes:</B></P>
	</TD>
</TR>
<TR><TD>&nbsp;</TD><TD>&nbsp;</TD></TR><TR>
<TD width=5%></TD>	<TD>
<P align="justify">The Company utilizes the asset and liability method for accounting for income taxes which requires the establishment of future tax assets and liabilities, measured at substantively enacted tax rates, for all temporary differences
caused when the tax bases of assets and liabilities differ from those reported in the financial statements. Future income tax assets are evaluated and a valuation allowance is provided to the extent that it is determined that it is no longer more
likely than not that the asset will be realized.</P>
	</TD>
</TR>
</TABLE>
<P align="right">
GILDAN 2009 REPORT TO SHAREHOLDERS P.56</P>

<HR noshade align="center" width="100%" size=5 color="black" style="page-break-after:always;">




<table border="0" cellpadding="0" cellspacing="0" style="border-collapse: collapse" bordercolor="#111111" width="100%" id="AutoNumber14">
  <tr>
    <td width="50%" valign="bottom">
    <img border="0" src="gildan1.jpg" width="92" height="30"></td>
    <td width="50%" valign="bottom">
    <p align="right"><font size="2">NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</font></td>
  </tr>
</table>
<P align="justify">
<BR>
</P>
<P align="justify">
<B>1. SIGNIFICANT ACCOUNTING POLICIES (continued):</B><BR>
</P>
<TABLE BCLLIST style="font-size:10pt;border-color:black;border-collapse:collapse;" cellpadding="0" cellspacing="0" width="100%" border="0">
<TR>
	<TD width=5% valign=top>
<B>(t)</B> 	</TD>
	<TD>
<P align="justify"><B>Income taxes (continued):</B></P>
	</TD>
</TR>
<TR><TD>&nbsp;</TD><TD>&nbsp;</TD></TR><TR>
<TD width=5%></TD>	<TD>
<P align="justify">The Company&#146;s income tax provision is based on interpretations of applicable tax laws, including income tax treaties between various countries in which the Company operates as well as underlying rules and regulations with
respect to transfer pricing. These interpretations involve judgments and estimates and may be challenged through government taxation audits that the Company is regularly subject to. The Company recognizes the benefits of uncertain tax filing
positions in its financial statements when it is considered likely that the tax position will be sustained upon examination by tax authorities, including the resolution of any related appeals or litigation processes, based on the technical merits of
the position. The tax benefits recognized from such positions are measured at the best estimate of the amounts expected to be realized upon ultimate resolution. The Company periodically reviews and adjusts its estimates and assumptions of income tax
assets and liabilities as circumstances warrant, such as changes to tax laws, administrative guidance, change in management&#146;s assessment of the technical merits of its positions due to new information, and the resolution of uncertainties
through either the conclusion of tax audits or expiration of prescribed time limits within relevant statutes. Previously recognized tax benefits relating to uncertain tax filing positions are derecognized if it becomes likely that the Company&#146;s
tax position will no longer be upheld.</P>
	</TD>
</TR>
<TR><TD>&nbsp;</TD><TD>&nbsp;</TD></TR><TR>
	<TD width=5% valign=top>
<B>(u)</B> 	</TD>
	<TD>
<P align="justify"><B>Stock-based compensation and other stock-based payments:</B></P>
	</TD>
</TR>
<TR><TD>&nbsp;</TD><TD>&nbsp;</TD></TR><TR>
<TD width=5%></TD>	<TD>
<P align="justify">The Company follows the fair value-based method to account for all transactions where services are received in exchange for stock-based compensation and other stock-based payments. For stock options and Treasury restricted share
units, compensation cost is measured at the fair value at the date of grant, net of estimated forfeitures, and is expensed over the award's vesting period. For non-Treasury restricted share units, the compensation cost is ultimately measured based
on the market price of the Company's shares at the vesting date, net of estimated forfeitures, and is recognized by amortizing the cost over the vesting period. The offsetting liability is marked to the underlying market price until the vesting date
with any changes in the market value of the Company's shares resulting in a change in the measure of compensation cost for these awards until vested, which is recorded in the periods in which these changes occur.</P>
	</TD>
</TR>
<TR><TD>&nbsp;</TD><TD>&nbsp;</TD></TR><TR>
<TD width=5%></TD>	<TD>
<P align="justify">For employee share purchase plans, the Company's contribution, on the employee's behalf, is recognized as compensation expense with an offset to share capital, and consideration paid by employees on purchase of stock is also
recorded as an increase to share capital.</P>
	</TD>
</TR>
<TR><TD>&nbsp;</TD><TD>&nbsp;</TD></TR><TR>
	<TD width=5% valign=top>
<B>(v)</B> 	</TD>
	<TD>
<P align="justify"><B>Employee future benefits:</B></P>
	</TD>
</TR>
<TR><TD>&nbsp;</TD><TD>&nbsp;</TD></TR><TR>
<TD width=5%></TD>	<TD>
<P align="justify">The Company offers group defined contribution plans to eligible employees whereby the Company matches employees' contributions up to a fixed percentage of the employee's salary. Contributions by the Company to trustee-managed
investment portfolios or employee associations are expensed as incurred.</P>
	</TD>
</TR>
<TR><TD>&nbsp;</TD><TD>&nbsp;</TD></TR><TR>
<TD width=5%></TD>	<TD>
<P align="justify">The Company maintains a liability for statutory severance and pre-notice benefit obligations for active employees located in the Caribbean Basin and Central America which is payable to the employees in a lump sum upon termination
of employment. The liability is based on management&#146;s best estimates of the ultimate costs to be incurred to settle the liability and is based on a number of assumptions and factors, including historical trends, actuarial assumptions and
economic conditions.</P>
	</TD>
</TR>
<TR><TD>&nbsp;</TD><TD>&nbsp;</TD></TR><TR>
	<TD width=5% valign=top>
<B>(w)</B> 	</TD>
	<TD>
<P align="justify"><B>Earnings per share:</B></P>
	</TD>
</TR>
<TR><TD>&nbsp;</TD><TD>&nbsp;</TD></TR><TR>
<TD width=5%></TD>	<TD>
<P align="justify">Basic earnings per share are computed by dividing net earnings by the weighted average number of common shares outstanding for the year. Diluted earnings per share are computed using the treasury stock method. Under the treasury
stock method, the weighted average number of common shares outstanding for the period is increased to include additional shares from the assumed exercise of options and the issuance of Treasury restricted share units, if dilutive.</P>
	</TD>
</TR>
<TR><TD>&nbsp;</TD><TD>&nbsp;</TD></TR><TR>
<TD width=5%></TD>	<TD>
<P align="justify">The number of additional shares is calculated by assuming that all outstanding options are exercised and all outstanding Treasury restricted share units have vested, and that the proceeds from such exercises, as well as the amount
of unrecognized stock-based compensation which is considered to be assumed proceeds under the treasury stock method, are used to repurchase common shares at the average share price for the period. For Treasury restricted share units, only the
unrecognized stock-based compensation is considered assumed proceeds since there is no exercise price paid by the holder.</P>
	</TD>
</TR>
</TABLE>
<P align="right">
GILDAN 2009 REPORT TO SHAREHOLDERS P.57</P>

<HR noshade align="center" width="100%" size=5 color="black" style="page-break-after:always;">




<table border="0" cellpadding="0" cellspacing="0" style="border-collapse: collapse" bordercolor="#111111" width="100%" id="AutoNumber15">
  <tr>
    <td width="50%" valign="bottom">
    <img border="0" src="gildan1.jpg" width="92" height="30"></td>
    <td width="50%" valign="bottom">
    <p align="right"><font size="2">NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</font></td>
  </tr>
</table>
<P align="justify">
<B>1. SIGNIFICANT ACCOUNTING POLICIES (continued):</B><BR>
</P>
<TABLE BCLLIST style="font-size:10pt;border-color:black;border-collapse:collapse;" cellpadding="0" cellspacing="0" width="100%" border="0">
<TR>
	<TD width=5% valign=top>
<B>(x)</B> 	</TD>
	<TD>
<P align="justify"><B>Environmental expenditures:</B></P>
	</TD>
</TR>
<TR><TD>&nbsp;</TD><TD>&nbsp;</TD></TR><TR>
<TD width=5%></TD>	<TD>
<P align="justify">Environmental expenditures that relate to current operations are expensed or capitalized as appropriate. Expenditures that extend the life of the related property or mitigate or prevent future environmental contamination are
capitalized in property, plant and equipment and are generally amortized over the remaining useful life of the underlying asset. Expenditures that relate to an existing condition caused by past operations and which are not expected to contribute to
current or future operations are expensed. Liabilities are recorded when environmental assessments and/or remedial efforts are likely, and when the costs, based on a specific plan of action in terms of the technology to be used and the extent of the
corrective action required, can be reasonably estimated.</P>
	</TD>
</TR>
<TR><TD>&nbsp;</TD><TD>&nbsp;</TD></TR><TR>
<TD width=5%></TD>	<TD>
<P align="justify">The Company may be obliged to incur certain costs should it decide to discontinue some of its activities. There were no liabilities recorded for such costs in the consolidated balance sheets because the Company plans to continue
its activities for an indefinite period, and the information available is insufficient to reasonably estimate a schedule for future asset retirement. Where there is a legal obligation associated with the retirement of property, plant and equipment,
a liability is initially recognized at its estimated fair value and a corresponding asset retirement cost is added to the carrying value of the related asset and amortized over the remaining life of the underlying asset. The Company had no asset
retirement obligations as at October 4, 2009 and October 5, 2008.</P>
	</TD>
</TR>
<TR><TD>&nbsp;</TD><TD>&nbsp;</TD></TR><TR>
	<TD width=5% valign=top>
<B>(y)</B> 	</TD>
	<TD>
<P align="justify"><B>Business acquisitions:</B></P>
	</TD>
</TR>
<TR><TD>&nbsp;</TD><TD>&nbsp;</TD></TR><TR>
<TD width=5%></TD>	<TD>
<P align="justify">The Company accounts for business acquisitions using the purchase method. Accordingly, the purchase price of a business acquisition is allocated to its identifiable net assets including identifiable intangible assets, on the basis
of estimated fair values as at the date of purchase, with any excess being assigned to goodwill. When the amounts assigned to identifiable net assets exceed the cost of the purchase, resulting in negative goodwill, the excess is applied, to the
extent possible, to certain non-current assets, with the balance recorded as an extraordinary gain.</P>
	</TD>
</TR>
<TR><TD>&nbsp;</TD><TD>&nbsp;</TD></TR><TR>
	<TD width=5% valign=top>
<B>(z)</B> 	</TD>
	<TD>
<P align="justify"><B>Use of estimates:</B></P>
	</TD>
</TR>
<TR><TD>&nbsp;</TD><TD>&nbsp;</TD></TR><TR>
<TD width=5%></TD>	<TD>
<P align="justify">The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of
contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Financial results as determined by actual events could differ materially from those
estimates.</P>
	</TD>
</TR>
<TR><TD>&nbsp;</TD><TD>&nbsp;</TD></TR><TR>
<TD width=5%></TD>	<TD>
<P align="justify">Significant areas requiring the use of management estimates and assumptions include the allowance for doubtful accounts, inventory valuation, income tax assets and liabilities, accruals for sales promotional programs, the fair
value of identifiable tangible and intangible assets acquired in a business combination, impairment of assets and the recoverability of long-lived assets.</P>
	</TD>
</TR>
</TABLE>
<P align="justify">
<B>2. BUSINESS ACQUISITION:</B><BR>
</P>
<P align="justify">
On October 15, 2007, the Company acquired 100% of the capital stock of V.I. Prewett &amp; Son, Inc. (&#147;Prewett&#148;), a U.S. supplier of basic family socks primarily to U.S. mass-market retailers. The acquisition is intended to enhance further
the Company&#146;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 &#36;128.0 million was comprised of cash consideration of &#36;125.3 million, a deferred payment of &#36;1.2 million, which was disbursed in the fourth quarter of fiscal 2009, and transaction costs of &#36;1.5
million. The purchase agreement provides for an additional purchase consideration of up to &#36;10.0 million contingent on specified future events. This amount was paid into escrow by the Company, but events occurring subsequent to the acquisition
have resulted in a reduction of the contingent purchase price and escrow balance to &#36;6.0 million as at October 4, 2009. The escrow deposit of &#36;6.0 million (October 5, 2008 - &#36;10.0 million) is included in other assets on the consolidated
balance sheet. The remaining contingent purchase price may be subject to further reductions during fiscal 2010 and 2011. 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. The Company has allocated the purchase price to the assets acquired based
on their fair values and taking into account all relevant information available at that time. </P>
<P align="right">
GILDAN 2009 REPORT TO SHAREHOLDERS P.58</P>

<HR noshade align="center" width="100%" size=5 color="black" style="page-break-after:always;">

<table border="0" cellpadding="0" cellspacing="0" style="border-collapse: collapse" bordercolor="#111111" width="100%" id="AutoNumber16">
  <tr>
    <td width="50%" valign="bottom">
    <img border="0" src="gildan1.jpg" width="92" height="30"></td>
    <td width="50%" valign="bottom">
    <p align="right"><font size="2">NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</font></td>
  </tr>
</table>
<P align=justify><B>2. BUSINESS ACQUISITION (continued):</B><BR></P>
<P align=justify>The following table summarizes the estimated fair value of
assets acquired and liabilities assumed at the date of acquisition: </P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD align=left bgColor=#e6efff style="border-top-style: solid; border-top-width: 2">Assets acquired: </TD>
    <TD align=left width="1%" bgColor=#e6efff style="border-top-style: solid; border-top-width: 2">&nbsp;</TD>
    <TD align=left width="12%" bgColor=#e6efff style="border-top-style: solid; border-top-width: 2">&nbsp; </TD>
    <TD align=left width="2%" bgColor=#e6efff style="border-top-style: none; border-top-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp;Accounts receivable </TD>
    <TD align=left width="1%">$</TD>
    <TD align=right width="12%">&nbsp;28,228 </TD>
    <TD align=left width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>&nbsp;Inventories </TD>
    <TD align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff>44,074 </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp;Prepaid expenses </TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="12%">1,573 </TD>
    <TD align=left width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>&nbsp;Property, plant and equipment </TD>
    <TD align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff>26,202 </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp;Customer contracts and customer relationships </TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="12%">61,000 </TD>
    <TD align=left width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      bgColor=#e6efff>&nbsp;Other assets </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="12%"
    bgColor=#e6efff>196 </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; </TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="12%">161,273 </TD>
    <TD align=left width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Liabilities assumed: </TD>
    <TD align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="12%" bgColor=#e6efff>&nbsp; </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp;Bank indebtedness </TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="12%">(2,739</TD>
    <TD align=left width="2%">) </TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>&nbsp;Accounts payable and accrued
      liabilities </TD>
    <TD align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff>(12,800</TD>
    <TD align=left width="2%" bgColor=#e6efff>) </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;Future
      income taxes </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="12%">(24,428</TD>
    <TD align=left width="2%">) </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      bgColor=#e6efff>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="12%"
    bgColor=#e6efff>(39,967</TD>
    <TD align=left width="2%" bgColor=#e6efff>) </TD></TR>
  <TR vAlign=top>
    <TD align=left>Net identifiable assets acquired </TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="12%">121,306 </TD>
    <TD align=left width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      bgColor=#e6efff>Goodwill </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="12%"
    bgColor=#e6efff>6,709 </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>Purchase price </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%">$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="12%">&nbsp;128,015 </TD>
    <TD align=left width="2%">&nbsp;</TD></TR>
  <TR>
    <TD bgColor=#e6efff>&nbsp; </TD>
    <TD width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD width="12%" bgColor=#e6efff>&nbsp; </TD>
    <TD width="2%" bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>Consideration: </TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=left width="12%">&nbsp; </TD>
    <TD align=left width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>&nbsp;Cash </TD>
    <TD align=left width="1%" bgColor=#e6efff>$</TD>
    <TD align=right width="12%" bgColor=#e6efff>&nbsp;125,294 </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp;Transaction costs </TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="12%">1,525 </TD>
    <TD align=left width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      bgColor=#e6efff>&nbsp;Deferred payment disbursed in fiscal 2009 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="12%"
    bgColor=#e6efff>1,196 </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%">$</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right
      width="12%">&nbsp;128,015 </TD>
    <TD style="BORDER-BOTTOM: medium none #000000; " align=left
    width="2%">&nbsp;</TD></TR></TABLE>
<P align=justify>Immediately following the acquisition, the Company repaid the
entire amount of bank indebtedness assumed at the date of acquisition. Goodwill
recorded in connection with this acquisition is not deductible for tax purposes.
</P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD align=left><B>3. INVENTORIES:</B> </TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=left width="12%">&nbsp; </TD>
    <TD align=left width="2%">&nbsp;</TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=left width="12%">&nbsp; </TD>
    <TD align=left width="2%">&nbsp;</TD></TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%">&nbsp; </TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%">&nbsp; </TD>
    <TD width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>Inventories were comprised of the following: </TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=left width="12%">&nbsp; </TD>
    <TD align=left width="2%">&nbsp;</TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=left width="12%">&nbsp; </TD>
    <TD align=left width="2%">&nbsp;</TD></TR>
  <TR>
    <TD style="BORDER-BOTTOM: #000000 2px solid">&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" width="12%">&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" width="12%">&nbsp; </TD>
    <TD width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="12%">2009
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="12%">2008
    </TD>
    <TD align=left width="2%">&nbsp;</TD></TR>
  <TR>
    <TD bgcolor="#E6EFFF">&nbsp; </TD>
    <TD width="1%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="12%" bgcolor="#E6EFFF">&nbsp; </TD>
    <TD width="2%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="1%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD width="12%" bgcolor="#E6EFFF">&nbsp; </TD>
    <TD width="2%" bgcolor="#E6EFFF">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgcolor="#E6EFFF">Raw materials and spare parts inventories </TD>
    <TD align=left width="1%" bgcolor="#E6EFFF">$</TD>
    <TD align=right width="12%" bgcolor="#E6EFFF">&nbsp;43,078 </TD>
    <TD align=left width="2%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD align=left width="1%" bgcolor="#E6EFFF">$</TD>
    <TD align=right width="12%" bgcolor="#E6EFFF">&nbsp;59,742 </TD>
    <TD align=left width="2%" bgcolor="#E6EFFF">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>Work in process </TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="12%">24,576 </TD>
    <TD align=left width="2%">&nbsp;</TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="12%">29,086 </TD>
    <TD align=left width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left bgcolor="#E6EFFF">Finished goods </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="1%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="12%" bgcolor="#E6EFFF">234,213 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="2%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="1%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="12%" bgcolor="#E6EFFF">227,344 </TD>
    <TD align=left width="2%" bgcolor="#E6EFFF">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%">$</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right
      width="12%">&nbsp;301,867 </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left
    width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%">$</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right
      width="12%">&nbsp;316,172 </TD>
    <TD align=left width="2%">&nbsp;</TD></TR></TABLE>
<P align=justify>The amount of inventory recognized as an expense and included
in cost of sales was $795.0 million (2008 - $890.6 million), which included an
expense of $8.1 million (2008 - $9.4 million), related to the write-down of
slow-moving or obsolete inventory. </P>
<P align=right>GILDAN 2009 REPORT TO SHAREHOLDERS P.59</P>
<HR noshade align="center" width="100%" size=5 color="black" style="page-break-after:always;">
<!--$$/page=-->

<table border="0" cellpadding="0" cellspacing="0" style="border-collapse: collapse" bordercolor="#111111" width="100%" id="AutoNumber17">
  <tr>
    <td width="50%" valign="bottom">
    <img border="0" src="gildan1.jpg" width="92" height="30"></td>
    <td width="50%" valign="bottom">
    <p align="right"><font size="2">NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</font></td>
  </tr>
</table>
<p><BR>
</p>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD vAlign=bottom align=left><FONT size=2><B>4. PROPERTY, PLANT AND
      EQUIPMENT:</B> </FONT></TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="10%"><FONT size=2>&nbsp; </FONT></TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="10%"><FONT size=2>&nbsp; </FONT></TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="10%" style="border-right-style: none; border-right-width: medium"><FONT size=2>&nbsp; </FONT></TD>
    <TD vAlign=bottom align=left width="2%" style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="10%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="10%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-right-style:none; border-right-width:medium" vAlign=bottom align=left
    width="10%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: medium none #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" vAlign=bottom align=left
    width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD vAlign=bottom align=left><FONT size=2>&nbsp; </FONT></TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="10%"><FONT size=2>&nbsp; </FONT></TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%"><FONT size=2>Accumulated
    </FONT></TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%" style="border-right-style: none; border-right-width: medium"><FONT size=2>Net book </FONT></TD>
    <TD vAlign=bottom align=left width="2%" style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom
      align=left><FONT size=2>2009 </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="10%"><FONT size=2>Cost </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="10%"><FONT size=2>depreciation </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-right-style:none; border-right-width:medium" vAlign=bottom align=right
    width="10%"><FONT size=2>value </FONT></TD>
    <TD style="BORDER-BOTTOM: medium none #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" vAlign=bottom align=left
    width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD vAlign=bottom align=left>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%" style="border-right-style: none; border-right-width: medium">&nbsp;</TD>
    <TD vAlign=bottom align=left width="2%" style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD vAlign=bottom align=left bgColor=#e6efff><FONT size=2>Land </FONT></TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff><FONT
      size=2>$</FONT></TD>
    <TD vAlign=bottom align=right width="10%" bgColor=#e6efff><FONT
      size=2>&nbsp;17,152 </FONT></TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff><FONT
      size=2>$</FONT></TD>
    <TD vAlign=bottom align=right width="10%" bgColor=#e6efff><FONT
      size=2>&nbsp;- </FONT></TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff><FONT
      size=2>$</FONT></TD>
    <TD vAlign=bottom align=right width="10%" bgColor=#e6efff style="border-right-style: none; border-right-width: medium"><FONT
      size=2>&nbsp;17,152 </FONT></TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD vAlign=bottom align=left><FONT size=2>Buildings and improvements
      </FONT></TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%"><FONT size=2>146,823 </FONT></TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%"><FONT size=2>34,798 </FONT></TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%" style="border-right-style: none; border-right-width: medium"><FONT size=2>112,025 </FONT></TD>
    <TD vAlign=bottom align=left width="2%" style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD vAlign=bottom align=left bgColor=#e6efff><FONT size=2>Equipment
    </FONT></TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%" bgColor=#e6efff><FONT
      size=2>460,616 </FONT></TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%" bgColor=#e6efff><FONT
      size=2>200,438 </FONT></TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%" bgColor=#e6efff style="border-right-style: none; border-right-width: medium"><FONT
      size=2>260,178 </FONT></TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom
      align=left><FONT size=2>Assets not in service </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="10%"><FONT size=2>25,183 </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="10%"><FONT size=2>- </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-right-style:none; border-right-width:medium" vAlign=bottom align=right
    width="10%"><FONT size=2>25,183 </FONT></TD>
    <TD style="BORDER-BOTTOM: medium none #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" vAlign=bottom align=left
    width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    bgColor=#e6efff><FONT size=2>&nbsp; </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="1%" bgColor=#e6efff><FONT size=2>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=right
    width="10%" bgColor=#e6efff><FONT size=2>&nbsp;649,774 </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="1%" bgColor=#e6efff><FONT size=2>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=right
    width="10%" bgColor=#e6efff><FONT size=2>&nbsp;235,236 </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="1%" bgColor=#e6efff><FONT size=2>$</FONT></TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-right-style:none; border-right-width:medium" vAlign=bottom align=right
    width="10%" bgColor=#e6efff><FONT size=2>&nbsp;414,538 </FONT></TD>
    <TD style="BORDER-BOTTOM: medium none #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" vAlign=bottom align=left
    width="2%" bgColor=#e6efff>&nbsp;</TD></TR>
  <TR>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=right
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=right
    width="10%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=right
    width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=right
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=right
    width="10%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=right
    width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=right
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-right-style:none; border-right-width:medium" vAlign=bottom align=right
    width="10%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: medium none #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" vAlign=bottom align=right
    width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD vAlign=bottom align=left bgColor=#ffffff><FONT size=2>&nbsp;
</FONT></TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="10%" bgColor=#ffffff><FONT
      size=2>&nbsp; </FONT></TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%" bgColor=#ffffff><FONT
      size=2>Accumulated </FONT></TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%" bgColor=#ffffff style="border-right-style: none; border-right-width: medium"><FONT size=2>Net
      book </FONT></TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#ffffff style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    bgColor=#ffffff><FONT size=2>2008 </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" bgColor=#ffffff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="10%" bgColor=#ffffff><FONT size=2>Cost </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%" bgColor=#ffffff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" bgColor=#ffffff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="10%" bgColor=#ffffff><FONT size=2>depreciation </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%" bgColor=#ffffff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" bgColor=#ffffff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-right-style:none; border-right-width:medium" vAlign=bottom align=right
    width="10%" bgColor=#ffffff><FONT size=2>value </FONT></TD>
    <TD style="BORDER-BOTTOM: medium none #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" vAlign=bottom align=left
    width="2%" bgColor=#ffffff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD vAlign=bottom align=left>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%" style="border-right-style: none; border-right-width: medium">&nbsp;</TD>
    <TD vAlign=bottom align=left width="2%" style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD vAlign=bottom align=left bgColor=#e6efff><FONT size=2>Land </FONT></TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff><FONT
      size=2>$</FONT></TD>
    <TD vAlign=bottom align=right width="10%" bgColor=#e6efff><FONT
      size=2>&nbsp;19,110 </FONT></TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff><FONT
      size=2>$</FONT></TD>
    <TD vAlign=bottom align=right width="10%" bgColor=#e6efff><FONT
      size=2>&nbsp;- </FONT></TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff><FONT
      size=2>$</FONT></TD>
    <TD vAlign=bottom align=right width="10%" bgColor=#e6efff style="border-right-style: none; border-right-width: medium"><FONT
      size=2>&nbsp;19,110 </FONT></TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD vAlign=bottom align=left><FONT size=2>Buildings and improvements
      </FONT></TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%"><FONT size=2>151,989 </FONT></TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%"><FONT size=2>35,066 </FONT></TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%" style="border-right-style: none; border-right-width: medium"><FONT size=2>116,923 </FONT></TD>
    <TD vAlign=bottom align=left width="2%" style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD vAlign=bottom align=left bgColor=#e6efff><FONT size=2>Equipment
    </FONT></TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%" bgColor=#e6efff><FONT
      size=2>420,893 </FONT></TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%" bgColor=#e6efff><FONT
      size=2>141,960 </FONT></TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%" bgColor=#e6efff style="border-right-style: none; border-right-width: medium"><FONT
      size=2>278,933 </FONT></TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom
      align=left><FONT size=2>Assets not in service </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="10%"><FONT size=2>21,550 </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="10%"><FONT size=2>- </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-right-style:none; border-right-width:medium" vAlign=bottom align=right
    width="10%"><FONT size=2>21,550 </FONT></TD>
    <TD style="BORDER-BOTTOM: medium none #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" vAlign=bottom align=left
    width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    bgColor=#e6efff><FONT size=2>&nbsp; </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="1%" bgColor=#e6efff><FONT size=2>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=right
    width="10%" bgColor=#e6efff><FONT size=2>&nbsp;613,542 </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="1%" bgColor=#e6efff><FONT size=2>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=right
    width="10%" bgColor=#e6efff><FONT size=2>&nbsp;177,026 </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="1%" bgColor=#e6efff><FONT size=2>$</FONT></TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-right-style:none; border-right-width:medium" vAlign=bottom align=right
    width="10%" bgColor=#e6efff><FONT size=2>&nbsp;436,516 </FONT></TD>
    <TD style="BORDER-BOTTOM: medium none #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" vAlign=bottom align=left
    width="2%" bgColor=#e6efff>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=bottom align=left bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="1%" bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%" bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="2%" bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="1%" bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%" bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="2%" bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="1%" bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%" bgColor=#ffffff style="border-right-style: none; border-right-width: medium">&nbsp;</TD>
    <TD vAlign=bottom align=right width="2%" bgColor=#ffffff style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD vAlign=bottom align=left bgColor=#ffffff colSpan=9 style="border-right-style: none; border-right-width: medium"><FONT size=2>Assets
      not in service include expenditures incurred to date for plant expansions
      which are still in process and equipment not yet in
      service as at the balance sheet date. </FONT></TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#ffffff style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR>
    <TD vAlign=bottom align=left bgColor=#ffffff colSpan=9 style="border-right-style: none; border-right-width: medium">&nbsp;</TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#ffffff style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD vAlign=bottom align=left bgColor=#ffffff><FONT size=2><B>5. INTANGIBLE
      ASSETS:</B> </FONT></TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="10%" bgColor=#ffffff><FONT
      size=2>&nbsp; </FONT></TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="10%" bgColor=#ffffff><FONT
      size=2>&nbsp; </FONT></TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="10%" bgColor=#ffffff style="border-right-style: none; border-right-width: medium"><FONT
      size=2>&nbsp; </FONT></TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#ffffff style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    bgColor=#ffffff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="1%" bgColor=#ffffff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="10%" bgColor=#ffffff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="2%" bgColor=#ffffff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="1%" bgColor=#ffffff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="10%" bgColor=#ffffff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="2%" bgColor=#ffffff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="1%" bgColor=#ffffff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-right-style:none; border-right-width:medium" vAlign=bottom align=left
    width="10%" bgColor=#ffffff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: medium none #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" vAlign=bottom align=left
    width="2%" bgColor=#ffffff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD vAlign=bottom align=left style="border-bottom-style: solid; border-bottom-width: 1"><FONT size=2>&nbsp; </FONT></TD>
    <TD vAlign=bottom align=left width="1%" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</TD>
    <TD vAlign=bottom align=left width="10%" style="border-bottom-style: solid; border-bottom-width: 1"><FONT size=2>&nbsp; </FONT></TD>
    <TD vAlign=bottom align=left width="2%" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%" style="border-bottom-style: solid; border-bottom-width: 1"><FONT size=2>2009 </FONT></TD>
    <TD vAlign=bottom align=left width="2%" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%" style="border-right-style: none; border-right-width: medium; border-bottom-style:solid; border-bottom-width:1"><FONT size=2>2008 </FONT></TD>
    <TD vAlign=bottom align=left width="2%" style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD vAlign=bottom align=left style="border-top-style: solid; border-top-width: 1">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" style="border-top-style: solid; border-top-width: 1">&nbsp;</TD>
    <TD vAlign=bottom align=left width="10%" style="border-top-style: solid; border-top-width: 1">&nbsp;</TD>
    <TD vAlign=bottom align=left width="2%" style="border-top-style: solid; border-top-width: 1">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" style="border-top-style: solid; border-top-width: 1">&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%" style="border-top-style: solid; border-top-width: 1">&nbsp;</TD>
    <TD vAlign=bottom align=left width="2%" style="border-top-style: solid; border-top-width: 1">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" style="border-top-style: solid; border-top-width: 1">&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%" style="border-right-style: none; border-right-width: medium; border-top-style:solid; border-top-width:1">&nbsp;</TD>
    <TD vAlign=bottom align=left width="2%" style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD vAlign=bottom align=left bgColor=#e6efff><FONT size=2>Customer
      contracts and customer relationships </FONT></TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="10%" bgColor=#e6efff><FONT
      size=2>&nbsp; </FONT></TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff><FONT
      size=2>$</FONT></TD>
    <TD vAlign=bottom align=right width="10%" bgColor=#e6efff><FONT
      size=2>&nbsp;63,526 </FONT></TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff><FONT
      size=2>$</FONT></TD>
    <TD vAlign=bottom align=right width="10%" bgColor=#e6efff style="border-right-style: none; border-right-width: medium"><FONT
      size=2>&nbsp;63,526 </FONT></TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD vAlign=bottom align=left style="border-bottom-style: solid; border-bottom-width: 1"><FONT size=2>Accumulated amortization
    </FONT></TD>
    <TD vAlign=bottom align=left width="1%" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</TD>
    <TD vAlign=bottom align=left width="10%" style="border-bottom-style: solid; border-bottom-width: 1"><FONT size=2>&nbsp; </FONT></TD>
    <TD vAlign=bottom align=left width="2%" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%" style="border-bottom-style: solid; border-bottom-width: 1"><FONT size=2>(6,769</FONT></TD>
    <TD vAlign=bottom align=left width="2%" style="border-bottom-style: solid; border-bottom-width: 1">) </TD>
    <TD vAlign=bottom align=left width="1%" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%" style="border-right-style: none; border-right-width: medium; border-bottom-style:solid; border-bottom-width:1"><FONT size=2>(3,572</FONT></TD>
    <TD vAlign=bottom align=left width="2%" style="border-style: none; border-width: medium">) </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-top-style:solid; border-top-width:1" vAlign=bottom align=left
    bgColor=#e6efff><FONT size=2>&nbsp; </FONT></TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-top-style:solid; border-top-width:1" vAlign=bottom align=left
    width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-top-style:solid; border-top-width:1" vAlign=bottom align=left
    width="10%" bgColor=#e6efff><FONT size=2>&nbsp; </FONT></TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-top-style:solid; border-top-width:1" vAlign=bottom align=left
    width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-top-style:solid; border-top-width:1" vAlign=bottom align=left
    width="1%" bgColor=#e6efff><FONT size=2>$</FONT></TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-top-style:solid; border-top-width:1" vAlign=bottom align=right
    width="10%" bgColor=#e6efff><FONT size=2>&nbsp;56,757 </FONT></TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-top-style:solid; border-top-width:1" vAlign=bottom align=left
    width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-top-style:solid; border-top-width:1" vAlign=bottom align=left
    width="1%" bgColor=#e6efff><FONT size=2>$</FONT></TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-right-style:none; border-right-width:medium; border-top-style:solid; border-top-width:1" vAlign=bottom align=right
    width="10%" bgColor=#e6efff><FONT size=2>&nbsp;59,954 </FONT></TD>
    <TD style="BORDER-BOTTOM: medium none #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" vAlign=bottom align=left
    width="2%" bgColor=#e6efff>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=bottom align=left bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="10%" bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="1%" bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%" bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="2%" bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="1%" bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%" bgColor=#ffffff style="border-right-style: none; border-right-width: medium">&nbsp;</TD>
    <TD vAlign=bottom align=right width="2%" bgColor=#ffffff style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD vAlign=bottom align=left bgColor=#ffffff><FONT size=2><B>6. OTHER
      ASSETS:</B> </FONT></TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="10%" bgColor=#ffffff><FONT
      size=2>&nbsp; </FONT></TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="10%" bgColor=#ffffff><FONT
      size=2>&nbsp; </FONT></TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="10%" bgColor=#ffffff style="border-right-style: none; border-right-width: medium"><FONT
      size=2>&nbsp; </FONT></TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#ffffff style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    bgColor=#ffffff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="1%" bgColor=#ffffff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="10%" bgColor=#ffffff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="2%" bgColor=#ffffff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="1%" bgColor=#ffffff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="10%" bgColor=#ffffff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="2%" bgColor=#ffffff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="1%" bgColor=#ffffff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-right-style:none; border-right-width:medium" vAlign=bottom align=left
    width="10%" bgColor=#ffffff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: medium none #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" vAlign=bottom align=left
    width="2%" bgColor=#ffffff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom
      align=left><FONT size=2>&nbsp; </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="10%"><FONT size=2>&nbsp; </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="10%"><FONT size=2>2009 </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-right-style:none; border-right-width:medium" vAlign=bottom align=right
    width="10%"><FONT size=2>2008 </FONT></TD>
    <TD style="BORDER-BOTTOM: medium none #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" vAlign=bottom align=left
    width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD vAlign=bottom align=left>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="10%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%" style="border-right-style: none; border-right-width: medium">&nbsp;</TD>
    <TD vAlign=bottom align=left width="2%" style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD vAlign=bottom align=left bgColor=#e6efff><FONT size=2>Long-term
      prepaid expenses and other </FONT></TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="10%" bgColor=#e6efff><FONT
      size=2>&nbsp; </FONT></TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff><FONT
      size=2>$</FONT></TD>
    <TD vAlign=bottom align=right width="10%" bgColor=#e6efff><FONT
      size=2>&nbsp;2,689 </FONT></TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff><FONT
      size=2>$</FONT></TD>
    <TD vAlign=bottom align=right width="10%" bgColor=#e6efff style="border-right-style: none; border-right-width: medium"><FONT
      size=2>&nbsp;5,529 </FONT></TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD vAlign=bottom align=left><FONT size=2>Long-term non-trade receivable
      </FONT></TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="10%"><FONT size=2>&nbsp; </FONT></TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%"><FONT size=2>1,254 </FONT></TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%" style="border-right-style: none; border-right-width: medium"><FONT size=2>1,748 </FONT></TD>
    <TD vAlign=bottom align=left width="2%" style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    bgColor=#e6efff><FONT size=2>Restricted cash related to the acquisition of
      Prewett (note 2) </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="10%" bgColor=#e6efff><FONT size=2>&nbsp; </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="10%" bgColor=#e6efff><FONT size=2>6,042 </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-right-style:none; border-right-width:medium" vAlign=bottom align=right
    width="10%" bgColor=#e6efff><FONT size=2>10,000 </FONT></TD>
    <TD style="BORDER-BOTTOM: medium none #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" vAlign=bottom align=left
    width="2%" bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom
      align=left><FONT size=2>&nbsp; </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="10%"><FONT size=2>&nbsp; </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="1%"><FONT size=2>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=right
    width="10%"><FONT size=2>&nbsp;9,985 </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="1%"><FONT size=2>$</FONT></TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-right-style:none; border-right-width:medium" vAlign=bottom align=right
    width="10%"><FONT size=2>&nbsp;17,277 </FONT></TD>
    <TD style="BORDER-BOTTOM: medium none #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" vAlign=bottom align=left
    width="2%">&nbsp;</TD></TR></TABLE>
<P align=justify><B>7. REVOLVING LINE OF CREDIT: </B></P>
<P align=justify>The Company's joint venture, CanAm, has a revolving line of
credit in the amount of $4.0 million. The borrowings are due on demand and bear
interest at 30-day LIBOR plus 2.0% (2.26% at October 4, 2009; 4.49% at October
5, 2008). The line of credit is secured by a first ranking security interest on
the assets of CanAm. There were no amounts drawn under the line of credit at
October 4, 2009 (2008 &#150; nil). </P>
<P align=right>GILDAN 2009 REPORT TO SHAREHOLDERS P.60</P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<!--$$/page=-->
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD align=left valign="bottom">
    <img border="0" src="gildan1.jpg" width="92" height="30"></TD>
    <TD align=right width="50%" valign="bottom">NOTES TO CONSOLIDATED FINANCIAL
    STATEMENTS
  </TD></TR></TABLE>
<p><BR>
</p>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD vAlign=bottom align=left><FONT size=2><B>8. LONG-TERM DEBT:</B>
    </FONT></TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="12%"><FONT size=2>&nbsp; </FONT></TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="12%" style="border-right-style: none; border-right-width: medium"><FONT size=2>&nbsp; </FONT></TD>
    <TD vAlign=bottom align=left width="2%" style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom
      align=left><FONT size=2>&nbsp;</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="12%"><FONT size=2>&nbsp;</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-right-style:none; border-right-width:medium" vAlign=bottom align=left
    width="12%"><FONT size=2>&nbsp;</FONT></TD>
    <TD style="BORDER-BOTTOM: medium none #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" vAlign=bottom align=left
    width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom
      align=left><FONT size=2>&nbsp; </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="12%"><FONT size=2>2009 </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-right-style:none; border-right-width:medium" vAlign=bottom align=right
    width="12%"><FONT size=2>2008 </FONT></TD>
    <TD style="BORDER-BOTTOM: medium none #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" vAlign=bottom align=left
    width="2%">&nbsp;</TD></TR>
  <TR>
    <TD vAlign=bottom align=left bgcolor="#E6EFFF">&nbsp;</TD>
    <TD vAlign=bottom align=right width="1%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD vAlign=bottom align=right width="2%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD vAlign=bottom align=right width="1%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%" bgcolor="#E6EFFF" style="border-right-style: none; border-right-width: medium">&nbsp;</TD>
    <TD vAlign=bottom align=right width="2%" bgcolor="#E6EFFF" style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD vAlign=bottom align=left bgColor=#e6efff><FONT size=2><B>Secured:</B>
      </FONT></TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="12%" bgColor=#e6efff><FONT
      size=2>&nbsp; </FONT></TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="12%" bgColor=#e6efff style="border-right-style: none; border-right-width: medium"><FONT
      size=2>&nbsp; </FONT></TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD vAlign=bottom align=left>
    &nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%" style="border-right-style: none; border-right-width: medium">&nbsp;</TD>
    <TD vAlign=bottom align=left width="2%" style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD vAlign=bottom align=left>
    <p style="text-indent: -15pt; margin-left: 30pt"><FONT
      size=2>Term loan, repayable in monthly instalments, bearing interest at 30-day LIBOR plus
      2.50% (2.76% at October 4, 2009; 4.99% at October 5, 2008) maturing in September 2012; secured by assets (b) </FONT></TD>
    <TD vAlign=bottom align=left width="1%"><FONT size=2>$</FONT></TD>
    <TD vAlign=bottom align=right width="12%"><FONT size=2>&nbsp;3,162
    </FONT></TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"><FONT size=2>$</FONT></TD>
    <TD vAlign=bottom align=right width="12%" style="border-right-style: none; border-right-width: medium"><FONT size=2>&nbsp;4,889
    </FONT></TD>
    <TD vAlign=bottom align=left width="2%" style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR>
    <TD vAlign=bottom align=left bgcolor="#E6EFFF">
    <p style="text-indent: -15pt; margin-left: 30pt">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD vAlign=bottom align=left width="2%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%" bgcolor="#E6EFFF" style="border-right-style: none; border-right-width: medium">&nbsp;</TD>
    <TD vAlign=bottom align=left width="2%" bgcolor="#E6EFFF" style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <tr>
    <TD vAlign=bottom align=left bgColor=#E6EFFF>
    <p style="text-indent: -15pt; margin-left: 30pt"><FONT
      size=2>Municipal bonds, repayable in
      annual instalments, bearing interest at variable rates
      (3.05% at October 4, 2009; 2.60% at October 5, 2008) maturing in January 2010; secured by building and equipment (c) </FONT></TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#E6EFFF>&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%" bgColor=#E6EFFF><FONT size=2>714 </FONT></TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#E6EFFF>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#E6EFFF>&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%" bgColor=#E6EFFF style="border-right-style: none; border-right-width: medium"><FONT size=2>1,429 </FONT></TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#E6EFFF style="border-style: none; border-width: medium">&nbsp;</TD>
  </tr>
  <TR>
    <TD vAlign=bottom align=left>
    <p style="text-indent: -15pt; margin-left: 30pt">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%" style="border-right-style: none; border-right-width: medium">&nbsp;</TD>
    <TD vAlign=bottom align=left width="2%" style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom
      align=left>
    <p style="text-indent: -15pt; margin-left: 30pt"><FONT size=2>Other term loans and
      notes payable to bank which matured during the year </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="12%"><FONT size=2>- </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-right-style:none; border-right-width:medium" vAlign=bottom align=right
    width="12%"><FONT size=2>478 </FONT></TD>
    <TD style="BORDER-BOTTOM: medium none #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" vAlign=bottom align=left
    width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD vAlign=bottom align=left bgColor=#e6efff style="border-bottom-style: none; border-bottom-width: medium"><FONT size=2>&nbsp;
</FONT></TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff style="border-bottom-style: none; border-bottom-width: medium">&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%" bgColor=#e6efff style="border-bottom-style: none; border-bottom-width: medium"><FONT
      size=2>3,876 </FONT></TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff style="border-bottom-style: none; border-bottom-width: medium">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff style="border-bottom-style: none; border-bottom-width: medium">&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%" bgColor=#e6efff style="border-right-style: none; border-right-width: medium; border-bottom-style:none; border-bottom-width:medium"><FONT
      size=2>6,796 </FONT></TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: medium none #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" vAlign=bottom
      align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: medium none #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" vAlign=bottom align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: medium none #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" vAlign=bottom align=right
    width="12%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: medium none #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" vAlign=bottom align=left
    width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: medium none #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" vAlign=bottom align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: medium none #000000; ; border-right-style:none; border-right-width:medium; border-left-style:none; border-left-width:medium; border-top-style:none; border-top-width:medium" vAlign=bottom align=right
    width="12%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: medium none #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" vAlign=bottom align=left
    width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-top-style:none; border-top-width:medium" vAlign=bottom
      align=left><FONT size=2>Current portion of secured debt </FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-top-style:none; border-top-width:medium" vAlign=bottom align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-top-style:none; border-top-width:medium" vAlign=bottom align=right
    width="12%"><FONT size=2>2,348 </FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-top-style:none; border-top-width:medium" vAlign=bottom align=left
    width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-top-style:none; border-top-width:medium" vAlign=bottom align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" vAlign=bottom align=right
    width="12%"><FONT size=2>2,827 </FONT></TD>
    <TD style="BORDER-BOTTOM: medium none #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" vAlign=bottom align=left
    width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    bgColor=#e6efff><FONT size=2>&nbsp; </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="1%" bgColor=#e6efff><FONT size=2>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=right
    width="12%" bgColor=#e6efff><FONT size=2>&nbsp;1,528 </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="1%" bgColor=#e6efff><FONT size=2>$</FONT></TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-right-style:none; border-right-width:medium" vAlign=bottom align=right
    width="12%" bgColor=#e6efff><FONT size=2>&nbsp;3,969 </FONT></TD>
    <TD style="BORDER-BOTTOM: medium none #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" vAlign=bottom align=left
    width="2%" bgColor=#e6efff>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=bottom align=left>&nbsp;</TD>
    <TD vAlign=bottom align=right width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%" style="border-right-style: none; border-right-width: medium">&nbsp;</TD>
    <TD vAlign=bottom align=right width="2%" style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD vAlign=bottom align=left><FONT
      size=2><B>Unsecured:</B> </FONT></TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="12%"><FONT
      size=2>&nbsp; </FONT></TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="12%" style="border-right-style: none; border-right-width: medium"><FONT
      size=2>&nbsp; </FONT></TD>
    <TD vAlign=bottom align=left width="2%" style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD vAlign=bottom align=left bgcolor="#E6EFFF"><FONT size=2>&nbsp; &nbsp; &nbsp;
      &nbsp;Revolving term credit facility (a) </FONT></TD>
    <TD vAlign=bottom align=left width="1%" bgcolor="#E6EFFF"><FONT size=2>$</FONT></TD>
    <TD vAlign=bottom align=right width="12%" bgcolor="#E6EFFF"><FONT size=2>&nbsp;- </FONT></TD>
    <TD vAlign=bottom align=left width="2%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgcolor="#E6EFFF"><FONT size=2>$</FONT></TD>
    <TD vAlign=bottom align=right width="12%" bgcolor="#E6EFFF" style="border-right-style: none; border-right-width: medium"><FONT size=2>&nbsp;45,000
    </FONT></TD>
    <TD vAlign=bottom align=left width="2%" bgcolor="#E6EFFF" style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left>
    <p style="text-indent: -15pt; margin-left: 30pt"><FONT size=2>Term
      loans, bearing interest at rates up to 4% per annum, maturing at various dates through 2011
      </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="12%"><FONT size=2>511
</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-right-style:none; border-right-width:medium" vAlign=bottom align=right
    width="12%"><FONT size=2>1,208
    </FONT></TD>
    <TD style="BORDER-BOTTOM: medium none #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" vAlign=bottom align=left
    width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD vAlign=bottom align=left bgcolor="#E6EFFF"><FONT size=2>&nbsp; </FONT></TD>
    <TD vAlign=bottom align=left width="1%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%" bgcolor="#E6EFFF"><FONT size=2>511 </FONT></TD>
    <TD vAlign=bottom align=left width="2%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%" bgcolor="#E6EFFF" style="border-right-style: none; border-right-width: medium"><FONT size=2>46,208 </FONT></TD>
    <TD vAlign=bottom align=left width="2%" bgcolor="#E6EFFF" style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR>
    <TD vAlign=bottom align=left>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%" style="border-right-style: none; border-right-width: medium">&nbsp;</TD>
    <TD vAlign=bottom align=left width="2%" style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left><FONT size=2>Current portion of unsecured debt </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="12%"><FONT size=2>455 </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-right-style:none; border-right-width:medium" vAlign=bottom align=right
    width="12%"><FONT size=2>729 </FONT></TD>
    <TD style="BORDER-BOTTOM: medium none #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" vAlign=bottom align=left
    width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom
      align=left bgcolor="#E6EFFF"><FONT size=2>&nbsp; </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="1%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=right
    width="12%" bgcolor="#E6EFFF"><FONT size=2>56 </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="2%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="1%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-right-style:none; border-right-width:medium" vAlign=bottom align=right
    width="12%" bgcolor="#E6EFFF"><FONT size=2>45,479 </FONT></TD>
    <TD style="BORDER-BOTTOM: medium none #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" vAlign=bottom align=left
    width="2%" bgcolor="#E6EFFF">&nbsp;</TD></TR>
  <TR>
    <TD vAlign=bottom align=left>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%" style="border-right-style: none; border-right-width: medium">&nbsp;</TD>
    <TD vAlign=bottom align=left width="2%" style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left>Total secured and unsecured long-term debt</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=right
    width="1%">$</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=right
    width="12%">&nbsp;1,584</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=right
    width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=right
    width="1%">$</TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-right-style:none; border-right-width:medium" vAlign=bottom align=right
    width="12%">49,448</TD>
    <TD style="BORDER-BOTTOM: medium none #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" vAlign=bottom align=right
    width="2%">&nbsp;</TD></TR></TABLE>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0 BCLLIST height="118">

  <TR>
    <TD vAlign=top width="5%" height="15"> </TD>
    <TD valign="bottom" height="15">
      </TD></TR>

  <TR>
    <TD vAlign=top width="5%" height="28">(a) </TD>
    <TD valign="bottom" height="28">
      <P align=justify>The Company has a committed revolving term credit
      facility for a maximum of $400.0 million, which matures in June 2013. The
      facility is unsecured. There were no amounts drawn under this facility at
      October 4, 2009 (2008 - $45.0 million). In addition, an amount of $0.2
      million (2008 - $3.6 million) has been committed against this facility to
      cover various letters of credit as described in note 13.</P></TD></TR>
  <TR>
    <TD width="5%" valign="top" height="15"></TD>
    <TD valign="bottom" height="15"></TD></TR>
  <TR>
    <TD vAlign=top width="5%" height="15">(b) </TD>
    <TD valign="bottom" height="15">
      <P align=justify>The term loan has been entered into by CanAm. The
      property, plant and equipment of CanAm serve as collateral for the
      long-term borrowings of CanAm. Other creditors of CanAm do not have any
      recourse to the general credit of the Company.</P></TD></TR>
  <TR>
    <TD width="5%" valign="top" height="15"></TD>
    <TD valign="bottom" height="15"></TD></TR>
  <TR>
    <TD vAlign=top width="5%" height="30">(c) </TD>
    <TD valign="bottom" height="30">
      <P align=justify>As a result of the acquisition of Kentucky Derby Hosiery
      Co., Inc. (&#147;Kentucky Derby&#148;) in fiscal 2006, the Company assumed the
      obligations entered into by Kentucky Derby. The property, plant and
      equipment of Kentucky Derby serve as collateral for the long-term
      borrowings of Kentucky Derby.</P></TD></TR></TABLE>
<P align=justify>Under various financing arrangements with its bankers and other
long-term lenders, the Company is required to meet certain financial covenants.
The Company was in compliance with all of these financial covenants as at
October 4, 2009 and October 5, 2008. </P>
<P align=right>GILDAN 2009 REPORT TO SHAREHOLDERS P.61</P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<!--$$/page=-->
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD align=left valign="bottom">
    <img border="0" src="gildan1.jpg" width="92" height="30"></TD>
    <TD align=right width="50%" valign="bottom">NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
  </TD></TR></TABLE>
<p><BR>
</p>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD align=left valign="bottom"><FONT size=2><B>8. LONG-TERM DEBT (continued):</B>
    </FONT></TD>
    <TD align=left width="1%" valign="bottom">&nbsp;</TD>
    <TD align=left width="12%" valign="bottom"><FONT size=2>&nbsp; </FONT></TD>
    <TD align=left width="2%" valign="bottom">&nbsp;</TD></TR>
  <TR>
    <TD align=left valign="bottom"><FONT size=2>&nbsp;</FONT></TD>
    <TD align=left width="1%" valign="bottom">&nbsp;</TD>
    <TD align=left width="12%" valign="bottom"><FONT size=2>&nbsp;</FONT></TD>
    <TD align=left width="2%" valign="bottom" style="border-bottom-style: none; border-bottom-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left valign="bottom"><FONT size=2>Principal payments due on long-term debt as at
      October 4, 2009 are as follows: </FONT></TD>
    <TD align=left width="1%" valign="bottom">&nbsp;</TD>
    <TD align=left width="12%" valign="bottom" style="border-right-style: none; border-right-width: medium"><FONT size=2>&nbsp; </FONT></TD>
    <TD align=left width="2%" valign="bottom" style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left valign="bottom"><FONT
      size=2>&nbsp;</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left
    width="1%" valign="bottom">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-right-style:none; border-right-width:medium" align=left width="12%" valign="bottom"><FONT
      size=2>&nbsp;</FONT></TD>
    <TD style="BORDER-BOTTOM: medium none #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" align=left
    width="2%" valign="bottom">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left style="border-bottom-style: solid; border-bottom-width: 1" valign="bottom"><FONT size=2>Fiscal year </FONT></TD>
    <TD align=left width="1%" style="border-bottom-style: solid; border-bottom-width: 1" valign="bottom">&nbsp;</TD>
    <TD align=left width="12%" style="border-bottom-style: solid; border-bottom-width: 1; border-right-style:none; border-right-width:medium" valign="bottom"><FONT size=2>&nbsp; </FONT></TD>
    <TD align=left width="2%" style="border-style:none; border-width:medium; " valign="bottom">&nbsp;</TD></TR>
  <TR>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=left width="1%" valign="bottom">&nbsp;</TD>
    <TD align=left width="12%" valign="bottom" style="border-right-style: none; border-right-width: medium">&nbsp;</TD>
    <TD align=left width="2%" valign="bottom" style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff valign="bottom"><FONT size=2>2010 </FONT></TD>
    <TD align=left width="1%" bgColor=#e6efff valign="bottom"><FONT size=2>$</FONT></TD>
    <TD align=right width="12%" bgColor=#e6efff valign="bottom" style="border-right-style: none; border-right-width: medium"><FONT size=2>&nbsp;2,803
      </FONT></TD>
    <TD align=left width="2%" bgColor=#e6efff valign="bottom" style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left style="border-bottom-style: solid; border-bottom-width: 1" valign="bottom"><FONT size=2>2011 </FONT></TD>
    <TD align=left width="1%" style="border-bottom-style: solid; border-bottom-width: 1" valign="bottom">&nbsp;</TD>
    <TD align=right width="12%" style="border-bottom-style: solid; border-bottom-width: 1; border-right-style:none; border-right-width:medium" valign="bottom"><FONT size=2>&nbsp; &nbsp; &nbsp; &nbsp;
      &nbsp; &nbsp; &nbsp;1,584 </FONT></TD>
    <TD align=left width="2%" style="border-style:none; border-width:medium; " valign="bottom">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left
      bgColor=#e6efff valign="bottom"><FONT size=2>&nbsp; </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
    bgColor=#e6efff valign="bottom"><FONT size=2>$</FONT></TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-right-style:none; border-right-width:medium" align=right width="12%"
    bgColor=#e6efff valign="bottom"><FONT size=2>&nbsp;4,387 </FONT></TD>
    <TD style="BORDER-BOTTOM: medium none #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" align=left width="2%"
    bgColor=#e6efff valign="bottom">&nbsp;</TD></TR></TABLE>
<P align=justify><B>9. SHAREHOLDERS&#146; EQUITY: </B></P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0 BCLLIST>

  <TR>
    <TD vAlign=top width="5%">(a) </TD>
    <TD valign="bottom">
      <P align=justify>The Company has a shareholder rights plan which provides
      the Board of Directors and the shareholders with additional time to assess
      any unsolicited take-over bid for the Company and, where appropriate,
      pursue other alternatives for maximizing shareholder value.</P></TD></TR>
  <TR>
    <TD width="5%" valign="top">&nbsp;</TD>
    <TD valign="bottom">&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top width="5%">(b) </TD>
    <TD valign="bottom">
      <P align=justify>On May 2, 2007, the Board of Directors of the Company
      declared a two-for-one stock split, effected in the form of a stock
      dividend, applicable to all of its issued and outstanding common shares,
      to shareholders of record on May 18, 2007. All share and per share data in
      these consolidated financial statements reflect the effect of the stock
      split on a retroactive basis.</P></TD></TR>
  <TR>
    <TD width="5%" valign="top">&nbsp;</TD>
    <TD valign="bottom">&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top width="5%">(c) </TD>
    <TD valign="bottom">
      <P align=justify>Accumulated other comprehensive income:</P></TD></TR>
  <TR>
    <TD width="5%" valign="top">&nbsp;</TD>
    <TD valign="bottom">&nbsp;</TD></TR>
  <TR>
    <TD width="5%" valign="top"></TD>
    <TD valign="bottom">
      <P align=justify>At the commencement of fiscal 2004, the Company adopted
      the U.S. dollar as its functional and reporting currency. The change in
      the functional currency for the prior periods resulted in a currency
      translation adjustment of $26.2 million, which is reflected in the
      accumulated other comprehensive income.</P></TD></TR>
  <TR>
    <TD width="5%" valign="top">&nbsp;</TD>
    <TD valign="bottom">&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top width="5%">(d) </TD>
    <TD valign="bottom">
      <P align=justify>Share capital:</P></TD></TR>
  <TR>
    <TD width="5%" valign="top">&nbsp;</TD>
    <TD valign="bottom">&nbsp;</TD></TR>
  <TR>
    <TD width="5%" valign="top"></TD>
    <TD valign="bottom">
      <P align=justify>Authorized:</P></TD></TR>
  <TR>
    <TD width="5%" valign="top"></TD>
    <TD valign="bottom">
      <P align=justify>First preferred shares, without limit as to number and
      without par value, issuable in series and non-voting. Second preferred
      shares, without limit as to number and without par value, issuable in
      series and non-voting. As at October 4, 2009 and October 5, 2008 none of
      the first and second preferred shares were issued. Common shares,
      authorized without limit as to number and without par value.</P></TD></TR>
  <TR>
    <TD width="5%" valign="top">&nbsp;</TD>
    <TD valign="bottom">&nbsp;</TD></TR>
  <TR>
    <TD width="5%" valign="top"></TD>
    <TD valign="bottom">
      <P align=justify>Issued:</P></TD></TR>
  <TR>
    <TD width="5%" valign="top"></TD>
    <TD valign="bottom">
      <P align=justify>As at October 4, 2009 there were 120,963,028 (2008 -
      120,536,501) common shares issued and outstanding.</P></TD></TR></TABLE>
<P align=justify><B>10. STOCK-BASED COMPENSATION:</B> </P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0 BCLLIST>

  <TR>
    <TD vAlign=bottom width="5%"><B>(a)</B> </TD>
    <TD valign="bottom">
      <P align=justify><B>Employee share purchase plans:</B></P></TD></TR>
  <TR>
    <TD width="5%" valign="bottom">&nbsp;</TD>
    <TD valign="bottom">&nbsp;</TD></TR>
  <TR>
    <TD width="5%" valign="bottom"></TD>
    <TD valign="bottom">
      <P align=justify>The Company has employee share purchase plans which allow
      eligible employees to authorize payroll deductions of up to 10% of their
      salary to purchase from Treasury, common shares of the Company at a price
      of 90% of the then current stock price as defined in the plans. Shares
      purchased under the plans prior to January 1, 2008 must be held for a
      minimum of one year. Employees purchasing shares under the plans
      subsequent to January 1, 2008 must hold the shares for a minimum of two
      years. The Company has reserved 2,800,000 common shares for issuance under
      the plans. As at October 4, 2009, a total of 219,353 (2008 - 161,746)
      shares were issued under these plans. Included as compensation costs in
      selling, general and administrative expenses is $0.1 million (2008 - $0.1
      million; 2007 - $0.1 million) relating to the employee share purchase
      plans.</P></TD></TR></TABLE>
<P align=right>GILDAN 2009 REPORT TO SHAREHOLDERS P.62</P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<!--$$/page=-->
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD align=left valign="bottom">
    <img border="0" src="gildan1.jpg" width="92" height="30"></TD>
    <TD align=right width="50%" valign="bottom">NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
  </TD></TR></TABLE>
<P align=justify><B>10. STOCK-BASED COMPENSATION (continued):</B> </P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0 BCLLIST>

  <TR>
    <TD vAlign=bottom width="5%"><B>(b)</B> </TD>
    <TD valign="bottom">
      <P align=justify><B>Stock options and restricted share
units:</B></P></TD></TR>
  <TR>
    <TD width="5%" valign="bottom">&nbsp;</TD>
    <TD valign="bottom">&nbsp;</TD></TR>
  <TR>
    <TD width="5%" valign="bottom"></TD>
    <TD valign="bottom">
      <P align=justify>The Company&#146;s Long Term Incentive Plan (the "LTIP")
      includes stock options and restricted share units. The LTIP allows the
      Board of Directors to grant stock options, dilutive restricted share units
      ("Treasury RSUs") and non- dilutive restricted share units ("non-Treasury
      RSUs") to officers and other key employees of the Company and its
      subsidiaries. On February 2, 2006, the shareholders of the Company
      approved an amendment to the LTIP to fix at 6,000,316 the number of common
      shares that are issuable pursuant to the exercise of stock options and the
      vesting of Treasury RSUs. As at October 4, 2009, 3,404,045 common shares
      remained authorized for future issuance under this
plan.</P></TD></TR></TABLE>
<P style="MARGIN-LEFT: 5%" align=justify>The exercise price payable for each
common share covered by a stock option is determined by the Board of Directors
at the date of the grant, but may not be less than the closing price of the
common shares of the Company on the trading day immediately preceding the
effective date of the grant. Stock options vest equally beginning on and after
the second, third, fourth and fifth anniversary of the grant date and expire no
more than seven or ten years after the date of the grant. </P>
<P style="MARGIN-LEFT: 5%; margin-bottom:0" align=justify>Changes in outstanding stock options
were as follows: </P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR>
    <TD width="5%" valign="bottom"  >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom
      align=left><FONT size=2>&nbsp;</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="10%"><FONT size=2>&nbsp;</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=right
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-right-style:none; border-right-width:medium" vAlign=bottom align=right
    width="23%" colSpan=4><FONT size=2>&nbsp;</FONT></TD>
    <TD style="BORDER-BOTTOM: medium none #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" vAlign=bottom align=right
    width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" valign="bottom" >&nbsp;</TD>
    <TD vAlign=bottom align=left><FONT size=2>&nbsp; </FONT></TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="10%"><FONT size=2>&nbsp; </FONT></TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="23%" colSpan=4 style="border-right-style: none; border-right-width: medium"><FONT size=2>Weighted
      average </FONT></TD>
    <TD vAlign=bottom align=left width="2%" style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" valign="bottom" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom
      align=left><FONT size=2>&nbsp; </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="10%"><FONT size=2>&nbsp; </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="10%"><FONT size=2>Number </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-right-style:none; border-right-width:medium" vAlign=bottom align=right
    width="10%"><FONT size=2>exercise price </FONT></TD>
    <TD style="BORDER-BOTTOM: medium none #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" vAlign=bottom align=left
    width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" valign="bottom" >&nbsp;</TD>
    <TD vAlign=bottom align=left><FONT size=2>&nbsp; </FONT></TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="10%"><FONT size=2>&nbsp; </FONT></TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="23%" colSpan=4 style="border-right-style: none; border-right-width: medium"><FONT size=2>(in
      Canadian dollars) </FONT></TD>
    <TD vAlign=bottom align=left width="2%" style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" valign="bottom" >&nbsp;</TD>
    <TD vAlign=bottom align=left bgColor=#FFFFFF>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#FFFFFF>&nbsp;</TD>
    <TD vAlign=bottom align=left width="10%" bgColor=#FFFFFF>&nbsp;</TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#FFFFFF>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#FFFFFF>&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%" bgColor=#FFFFFF>&nbsp;</TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#FFFFFF>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#FFFFFF>&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%" bgColor=#FFFFFF style="border-right-style: none; border-right-width: medium">&nbsp;</TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#FFFFFF style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" valign="bottom" >&nbsp;</TD>
    <TD vAlign=bottom align=left bgColor=#e6efff><FONT size=2>Options
      outstanding, September 30, 2007 </FONT></TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="10%" bgColor=#e6efff><FONT
      size=2>&nbsp; </FONT></TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%" bgColor=#e6efff><FONT
      size=2>&nbsp; &nbsp; &nbsp; &nbsp;852 </FONT></TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff><FONT
      size=2>$</FONT></TD>
    <TD vAlign=bottom align=right width="10%" bgColor=#e6efff style="border-right-style: none; border-right-width: medium"><FONT
      size=2>&nbsp;10.08 </FONT></TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" valign="bottom" >&nbsp;</TD>
    <TD vAlign=bottom align=left><FONT size=2>Granted </FONT></TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="10%"><FONT size=2>&nbsp; </FONT></TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%"><FONT size=2>&nbsp; &nbsp;
      &nbsp; &nbsp;128 </FONT></TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%" style="border-right-style: none; border-right-width: medium"><FONT size=2>39.37 </FONT></TD>
    <TD vAlign=bottom align=left width="2%" style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" valign="bottom" >&nbsp;</TD>
    <TD vAlign=bottom align=left bgColor=#e6efff><FONT size=2>Exercised
    </FONT></TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="10%" bgColor=#e6efff><FONT
      size=2>&nbsp; </FONT></TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%" bgColor=#e6efff><FONT
      size=2>&nbsp; &nbsp; &nbsp; &nbsp;(81</FONT></TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>) </TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%" bgColor=#e6efff style="border-right-style: none; border-right-width: medium"><FONT
      size=2>5.32 </FONT></TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" valign="bottom" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom
      align=left><FONT size=2>Forfeited </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="10%"><FONT size=2>&nbsp; </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="10%"><FONT size=2>&nbsp; &nbsp; &nbsp; &nbsp;(21</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%">) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-right-style:none; border-right-width:medium" vAlign=bottom align=right
    width="10%"><FONT size=2>32.85 </FONT></TD>
    <TD style="BORDER-BOTTOM: medium none #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" vAlign=bottom align=left
    width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" valign="bottom" >&nbsp;</TD>
    <TD vAlign=bottom align=left bgColor=#e6efff><FONT size=2>Options
      outstanding, October 5, 2008 </FONT></TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="10%" bgColor=#e6efff><FONT
      size=2>&nbsp; </FONT></TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%" bgColor=#e6efff><FONT
      size=2>&nbsp; &nbsp; &nbsp; &nbsp;878 </FONT></TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%" bgColor=#e6efff style="border-right-style: none; border-right-width: medium"><FONT
      size=2>14.23 </FONT></TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" valign="bottom" >&nbsp;</TD>
    <TD vAlign=bottom align=left><FONT size=2>Granted </FONT></TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="10%"><FONT size=2>&nbsp; </FONT></TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%"><FONT size=2>&nbsp; &nbsp;
      &nbsp; &nbsp;233 </FONT></TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%" style="border-right-style: none; border-right-width: medium"><FONT size=2>23.48 </FONT></TD>
    <TD vAlign=bottom align=left width="2%" style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" valign="bottom" >&nbsp;</TD>
    <TD vAlign=bottom align=left bgColor=#e6efff><FONT size=2>Exercised
    </FONT></TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="10%" bgColor=#e6efff><FONT
      size=2>&nbsp; </FONT></TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%" bgColor=#e6efff><FONT
      size=2>&nbsp; &nbsp; &nbsp; &nbsp;(54</FONT></TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>) </TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%" bgColor=#e6efff style="border-right-style: none; border-right-width: medium"><FONT
      size=2>2.58 </FONT></TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" valign="bottom" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom
      align=left><FONT size=2>Forfeited </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="10%"><FONT size=2>&nbsp; </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="10%"><FONT size=2>&nbsp; &nbsp; &nbsp; &nbsp;(47</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%">) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-right-style:none; border-right-width:medium" vAlign=bottom align=right
    width="10%"><FONT size=2>30.75 </FONT></TD>
    <TD style="BORDER-BOTTOM: medium none #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" vAlign=bottom align=left
    width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" valign="bottom" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    bgColor=#e6efff><FONT size=2>Options outstanding, October 4, 2009
    </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="10%" bgColor=#e6efff><FONT size=2>&nbsp; </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=right
    width="10%" bgColor=#e6efff><FONT size=2>1,010 </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="1%" bgColor=#e6efff><FONT size=2>$</FONT></TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-right-style:none; border-right-width:medium" vAlign=bottom align=right
    width="10%" bgColor=#e6efff><FONT size=2>&nbsp;16.21 </FONT></TD>
    <TD style="BORDER-BOTTOM: medium none #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" vAlign=bottom align=left
    width="2%" bgColor=#e6efff>&nbsp;</TD></TR>
  <TR>
    <TD width="5%" valign="bottom" >&nbsp;</TD>
    <TD vAlign=bottom align=left bgColor=#ffffff><FONT size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="10%" bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="1%" bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%" bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right width="2%" bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="1%" bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%" bgColor=#ffffff><FONT
      size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right width="2%" bgColor=#ffffff style="border-top-style: none; border-top-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" valign="bottom" ></TD>
    <TD vAlign=bottom align=left bgColor=#ffffff colSpan=10><FONT
      size=2>The weighted average fair value of each option granted in fiscal
      2009 was estimated on the date of grant using the Black-Scholes pricing model with the following weighted average
      assumptions: </FONT></TD></TR>
  <TR>
    <TD width="5%" valign="bottom" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    bgColor=#ffffff colSpan=3><FONT size=2>&nbsp;</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="2%" bgColor=#ffffff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="1%" bgColor=#ffffff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="10%" bgColor=#ffffff><FONT size=2>&nbsp;</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="2%" bgColor=#ffffff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="1%" bgColor=#ffffff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-right-style:none; border-right-width:medium" vAlign=bottom align=left
    width="10%" bgColor=#ffffff><FONT size=2>&nbsp;</FONT></TD>
    <TD style="BORDER-BOTTOM: medium none #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" vAlign=bottom align=left
    width="2%" bgColor=#ffffff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" valign="bottom" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom
      align=left><FONT size=2>&nbsp; </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="10%"><FONT size=2>2009 </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="10%"><FONT size=2>2008 </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-right-style:none; border-right-width:medium" vAlign=bottom align=right
    width="10%"><FONT size=2>2007 </FONT></TD>
    <TD style="BORDER-BOTTOM: medium none #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" vAlign=bottom align=left
    width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" valign="bottom" >&nbsp;</TD>
    <TD vAlign=bottom align=left bgColor=#FFFFFF>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#FFFFFF>&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%" bgColor=#FFFFFF>&nbsp;</TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#FFFFFF>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#FFFFFF>&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%" bgColor=#FFFFFF>&nbsp;</TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#FFFFFF>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#FFFFFF>&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%" bgColor=#FFFFFF style="border-right-style: none; border-right-width: medium">&nbsp;</TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#FFFFFF style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" valign="bottom" >&nbsp;</TD>
    <TD vAlign=bottom align=left bgColor=#e6efff><FONT size=2>Risk-free
      interest rate </FONT></TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%" bgColor=#e6efff><FONT
      size=2>3.06% </FONT></TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%" bgColor=#e6efff><FONT
      size=2>4.17% </FONT></TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%" bgColor=#e6efff style="border-right-style: none; border-right-width: medium"><FONT
      size=2>3.90% </FONT></TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" valign="bottom" >&nbsp;</TD>
    <TD vAlign=bottom align=left><FONT size=2>Expected volatility </FONT></TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%"><FONT size=2>34.98% </FONT></TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%"><FONT size=2>&nbsp; &nbsp;
      &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;30.73% </FONT></TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%" style="border-right-style: none; border-right-width: medium"><FONT size=2>29.00% </FONT></TD>
    <TD vAlign=bottom align=left width="2%" style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" valign="bottom" >&nbsp;</TD>
    <TD vAlign=bottom align=left bgColor=#e6efff><FONT size=2>Expected life
      </FONT></TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%" bgColor=#e6efff><FONT
      size=2>5.25 years </FONT></TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%" bgColor=#e6efff><FONT
      size=2>&nbsp; &nbsp; &nbsp; &nbsp;4.68 years </FONT></TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%" bgColor=#e6efff style="border-right-style: none; border-right-width: medium"><FONT
      size=2>4.66 years </FONT></TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" valign="bottom" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom
      align=left><FONT size=2>Expected dividend yield </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=right
    width="10%"><FONT size=2>- </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=right
    width="10%"><FONT size=2>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;
      &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;- </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-right-style:none; border-right-width:medium" vAlign=bottom align=right
    width="10%"><FONT size=2>- </FONT></TD>
    <TD style="BORDER-BOTTOM: medium none #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" vAlign=bottom align=left
    width="2%">&nbsp;</TD></TR>
  <TR>
    <TD width="5%" valign="bottom" >&nbsp;</TD>
    <TD vAlign=bottom align=left bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="1%" bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%" bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="2%" bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="10%" bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="1%" bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%" bgColor=#ffffff style="border-right-style: none; border-right-width: medium">&nbsp;</TD>
    <TD vAlign=bottom align=right width="2%" bgColor=#ffffff style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" valign="bottom" >&nbsp;</TD>
    <TD vAlign=bottom align=left bgColor=#ffffff colSpan=9><FONT size=2>The
      grant date weighted average fair value of options granted in fiscal 2009
      was $9.24 (2008 &#150; $13.02; 2007 &#150; $7.70). </FONT></TD>
    <TD vAlign=bottom align=left width="2%"
  bgColor=#ffffff style="border-top-style: none; border-top-width: medium">&nbsp;</TD></TR></TABLE>
<P align=right>GILDAN 2009 REPORT TO SHAREHOLDERS P.63</P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<!--$$/page=-->
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD align=left width="50%" valign="bottom">
    <img border="0" src="gildan1.jpg" width="92" height="30"></TD>
    <TD align=left width="50%" valign="bottom">
    <p align="right">NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
</TD></TR></TABLE>
<P align=justify><B>10. STOCK-BASED COMPENSATION (continued): </B></P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0 BCLLIST>

  <TR>
    <TD vAlign=bottom width="5%"><B>(b)</B> </TD>
    <TD valign="bottom">
      <P align=justify><B>Stock options and restricted share units
      (continued):</B></P></TD></TR>
  <TR>
    <TD width="5%" valign="bottom">&nbsp;</TD>
    <TD valign="bottom">&nbsp;</TD></TR>
  <TR>
    <TD width="5%" valign="bottom"></TD>
    <TD valign="bottom">
      <P align=justify>The following table summarizes information about stock
      options outstanding and exercisable at October 4,
2009:</P></TD></TR></TABLE>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 8pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR>
    <TD width="5%" valign="bottom" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="9%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="9%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=right
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=right
    width="9%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=right
    width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="9%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=right
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-right-style:none; border-right-width:medium" vAlign=bottom align=right
    width="9%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: medium none #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" vAlign=bottom align=right
    width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" valign="bottom">&nbsp;</TD>
    <TD vAlign=bottom align=left nowrap><FONT size=2>&nbsp; </FONT></TD>
    <TD vAlign=bottom align=left width="1%" nowrap>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="9%" nowrap><FONT size=2>&nbsp; </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%" nowrap>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" nowrap>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="9%" nowrap><FONT size=2>&nbsp; </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%" nowrap>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" nowrap>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="9%" nowrap><FONT size=2>Options outstanding </FONT></TD>
    <TD vAlign=bottom align=left width="2%" nowrap>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" nowrap>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="9%" nowrap><FONT size=2>&nbsp; </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%" nowrap>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" nowrap>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-right-style:none; border-right-width:medium" vAlign=bottom align=right
    width="9%" nowrap><FONT size=2>Options exercisable </FONT></TD>
    <TD vAlign=bottom align=left width="2%" style="border-style: none; border-width: medium" nowrap>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" valign="bottom">&nbsp;</TD>
    <TD vAlign=bottom align=left nowrap><FONT size=2>&nbsp; </FONT></TD>
    <TD vAlign=bottom align=left width="1%" nowrap>&nbsp;</TD>
    <TD vAlign=bottom align=left width="9%" nowrap><FONT size=2>&nbsp; </FONT></TD>
    <TD vAlign=bottom align=left width="2%" nowrap>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" nowrap>&nbsp;</TD>
    <TD vAlign=bottom align=left width="9%" nowrap><FONT size=2>&nbsp; </FONT></TD>
    <TD vAlign=bottom align=left width="2%" nowrap>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" nowrap>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" nowrap><FONT size=2>Weighted </FONT></TD>
    <TD vAlign=bottom align=left width="2%" nowrap>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" nowrap>&nbsp;</TD>
    <TD vAlign=bottom align=left width="9%" nowrap><FONT size=2>&nbsp; </FONT></TD>
    <TD vAlign=bottom align=left width="2%" nowrap>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" nowrap>&nbsp;</TD>
    <TD vAlign=bottom align=left width="9%" style="border-right-style: none; border-right-width: medium" nowrap><FONT size=2>&nbsp; </FONT></TD>
    <TD vAlign=bottom align=left width="2%" style="border-style: none; border-width: medium" nowrap>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" valign="bottom">&nbsp;</TD>
    <TD vAlign=bottom align=left nowrap><FONT size=2>Range of exercise </FONT></TD>
    <TD vAlign=bottom align=left width="1%" nowrap>&nbsp;</TD>
    <TD vAlign=bottom align=left width="9%" nowrap><FONT size=2>&nbsp; </FONT></TD>
    <TD vAlign=bottom align=left width="2%" nowrap>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" nowrap>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" nowrap><FONT size=2>Weighted average
      </FONT></TD>
    <TD vAlign=bottom align=left width="2%" nowrap>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" nowrap>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" nowrap><FONT size=2>average remaining
      </FONT></TD>
    <TD vAlign=bottom align=left width="2%" nowrap>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" nowrap>&nbsp;</TD>
    <TD vAlign=bottom align=left width="9%" nowrap><FONT size=2>&nbsp; </FONT></TD>
    <TD vAlign=bottom align=left width="2%" nowrap>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" nowrap>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" style="border-right-style: none; border-right-width: medium" nowrap><FONT size=2>Weighted average
      </FONT></TD>
    <TD vAlign=bottom align=left width="2%" style="border-style: none; border-width: medium" nowrap>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" valign="bottom">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom
      align=left nowrap><FONT size=2>prices </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" nowrap>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="9%" nowrap><FONT size=2>Number </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%" nowrap>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" nowrap>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="9%" nowrap><FONT size=2>exercise price </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%" nowrap>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" nowrap>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="9%" nowrap><FONT size=2>contractual life (yrs) </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%" nowrap>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" nowrap>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="9%" nowrap><FONT size=2>Number </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%" nowrap>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" nowrap>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-right-style:none; border-right-width:medium" vAlign=bottom align=right
    width="9%" nowrap><FONT size=2>exercise price </FONT></TD>
    <TD style="BORDER-BOTTOM: medium none #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" vAlign=bottom align=left
    width="2%" nowrap>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" valign="bottom">&nbsp;</TD>
    <TD vAlign=bottom align=left nowrap><FONT size=2>(in Canadian dollars) </FONT></TD>
    <TD vAlign=bottom align=left width="1%" nowrap>&nbsp;</TD>
    <TD vAlign=bottom align=left width="9%" nowrap><FONT size=2>&nbsp; </FONT></TD>
    <TD vAlign=bottom align=left width="2%" nowrap>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" nowrap>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" nowrap><FONT size=2>(in Canadian
      dollars) </FONT></TD>
    <TD vAlign=bottom align=left width="2%" nowrap>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" nowrap>&nbsp;</TD>
    <TD vAlign=bottom align=left width="9%" nowrap><FONT size=2>&nbsp; </FONT></TD>
    <TD vAlign=bottom align=left width="2%" nowrap>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" nowrap>&nbsp;</TD>
    <TD vAlign=bottom align=left width="9%" nowrap><FONT size=2>&nbsp; </FONT></TD>
    <TD vAlign=bottom align=left width="2%" nowrap>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" nowrap>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" style="border-right-style: none; border-right-width: medium" nowrap><FONT size=2>(in Canadian
      dollars) </FONT></TD>
    <TD vAlign=bottom align=left width="2%" style="border-style: none; border-width: medium" nowrap>&nbsp;</TD></TR>
  <TR>
    <TD width="5%" valign="bottom">&nbsp;</TD>
    <TD vAlign=bottom align=left>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="9%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="9%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="9%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" style="border-right-style: none; border-right-width: medium">&nbsp;</TD>
    <TD vAlign=bottom align=left width="2%" style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" valign="bottom">&nbsp;</TD>
    <TD vAlign=bottom align=left bgColor=#e6efff><FONT size=2>$ 5.00 - $ 5.39
      </FONT></TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#e6efff><FONT size=2>63
      </FONT></TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff><FONT
      size=2>$</FONT></TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#e6efff><FONT
      size=2>&nbsp;5.25 </FONT></TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#e6efff><FONT size=2>2.09
      </FONT></TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#e6efff><FONT size=2>63
      </FONT></TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff><FONT
      size=2>$</FONT></TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#e6efff style="border-right-style: none; border-right-width: medium"><FONT
      size=2>&nbsp;5.25 </FONT></TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" valign="bottom">&nbsp;</TD>
    <TD vAlign=bottom align=left><FONT size=2>$ 6.06 - $ 6.88 </FONT></TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%"><FONT size=2>301 </FONT></TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%"><FONT size=2>6.34 </FONT></TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%"><FONT size=2>0.98 </FONT></TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%"><FONT size=2>301 </FONT></TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" style="border-right-style: none; border-right-width: medium"><FONT size=2>6.34 </FONT></TD>
    <TD vAlign=bottom align=left width="2%" style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" valign="bottom">&nbsp;</TD>
    <TD vAlign=bottom align=left bgColor=#e6efff><FONT size=2>$ 8.64 - $ 8.70
      </FONT></TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#e6efff><FONT size=2>208
      </FONT></TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#e6efff><FONT size=2>8.64
      </FONT></TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#e6efff><FONT size=2>1.37
      </FONT></TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#e6efff><FONT size=2>208
      </FONT></TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#e6efff style="border-right-style: none; border-right-width: medium"><FONT size=2>8.64
      </FONT></TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" valign="bottom">&nbsp;</TD>
    <TD vAlign=bottom align=left><FONT size=2>$11.41 - $23.49 </FONT></TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%"><FONT size=2>214 </FONT></TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%"><FONT size=2>23.48 </FONT></TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%"><FONT size=2>6.01 </FONT></TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%"><FONT size=2>- </FONT></TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" style="border-right-style: none; border-right-width: medium"><FONT size=2>- </FONT></TD>
    <TD vAlign=bottom align=left width="2%" style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" valign="bottom">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    bgColor=#e6efff><FONT size=2>$27.17 - $39.39 </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="9%" bgColor=#e6efff><FONT size=2>224 </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="9%" bgColor=#e6efff><FONT size=2>32.61 </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="9%" bgColor=#e6efff><FONT size=2>4.44 </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="9%" bgColor=#e6efff><FONT size=2>87 </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-right-style:none; border-right-width:medium" vAlign=bottom align=right
    width="9%" bgColor=#e6efff><FONT size=2>30.69 </FONT></TD>
    <TD style="BORDER-BOTTOM: medium none #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" vAlign=bottom align=left
    width="2%" bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" valign="bottom">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom
      align=left><FONT size=2>&nbsp; </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=right
    width="9%"><FONT size=2>1,010 </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="1%"><FONT size=2>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=right
    width="9%"><FONT size=2>&nbsp;16.21 </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="9%"><FONT size=2>&nbsp; </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=right
    width="9%"><FONT size=2>659 </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="1%"><FONT size=2>$</FONT></TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-right-style:none; border-right-width:medium" vAlign=bottom align=right
    width="9%"><FONT size=2>&nbsp;10.17 </FONT></TD>
    <TD style="BORDER-BOTTOM: medium none #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" vAlign=bottom align=left
    width="2%">&nbsp;</TD></TR></TABLE>
<P style="MARGIN-LEFT: 5%" align=justify>A Treasury RSU represents the right of
an individual to receive one common share on the vesting date without any
monetary consideration being paid to the Company. With the exception of a
special, one-time award, which vests at the end of an eight-year period, all
other Treasury RSUs awarded to date vest at the end of a five-year vesting
period. The vesting of 50% of the Treasury RSUs are dependent upon the fiscal
performance of the Company relative to a benchmark group of Canadian publicly
listed companies. Compensation expense relating to the Treasury RSUs is
recognized in the financial statements over the vesting period based on the fair
value of the Treasury RSUs on the date of the grant and estimates relating to
forfeitures and the probability of the performance objectives being met. The
fair value of the Treasury RSUs granted is equal to the market price of the
common shares of the Company at the time of grant. </P>
<P style="MARGIN-LEFT: 5%; margin-bottom:0" align=justify>Changes in outstanding Treasury RSUs
were as follows: </P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR>
    <TD width="5%" valign="bottom"  >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="9%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=right
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-right-style:none; border-right-width:medium" vAlign=bottom align=right
    width="9%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: medium none #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" vAlign=bottom align=right
    width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" valign="bottom" >&nbsp;</TD>
    <TD vAlign=bottom align=left nowrap><FONT size=2>&nbsp; </FONT></TD>
    <TD vAlign=bottom align=left width="1%" nowrap>&nbsp;</TD>
    <TD vAlign=bottom align=left width="9%" nowrap><FONT size=2>&nbsp; </FONT></TD>
    <TD vAlign=bottom align=left width="2%" nowrap>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" nowrap>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" style="border-right-style: none; border-right-width: medium" nowrap><FONT size=2>Weighted </FONT></TD>
    <TD vAlign=bottom align=left width="2%" style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" valign="bottom" >&nbsp;</TD>
    <TD vAlign=bottom align=left nowrap><FONT size=2>&nbsp; </FONT></TD>
    <TD vAlign=bottom align=left width="1%" nowrap>&nbsp;</TD>
    <TD vAlign=bottom align=left width="9%" nowrap><FONT size=2>&nbsp; </FONT></TD>
    <TD vAlign=bottom align=left width="2%" nowrap>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" nowrap>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" style="border-right-style: none; border-right-width: medium" nowrap><FONT size=2>average fair
    </FONT></TD>
    <TD vAlign=bottom align=left width="2%" style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" valign="bottom" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom
      align=left nowrap><FONT size=2>&nbsp; </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" nowrap>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="9%" nowrap><FONT size=2>Number </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%" nowrap>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" nowrap>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-right-style:none; border-right-width:medium" vAlign=bottom align=right
    width="9%" nowrap><FONT size=2>value per unit </FONT></TD>
    <TD style="BORDER-BOTTOM: medium none #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" vAlign=bottom align=left
    width="2%">&nbsp;</TD></TR>
  <TR>
    <TD width="5%" valign="bottom" >&nbsp;</TD>
    <TD vAlign=bottom align=left>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" style="border-right-style: none; border-right-width: medium">&nbsp;</TD>
    <TD vAlign=bottom align=left width="2%" style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" valign="bottom" >&nbsp;</TD>
    <TD vAlign=bottom align=left bgColor=#e6efff><FONT size=2>Treasury RSUs
      outstanding, September 30, 2007 </FONT></TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#e6efff><FONT
      size=2>&nbsp; &nbsp; &nbsp; &nbsp;941 </FONT></TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff><FONT
      size=2>$</FONT></TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#e6efff style="border-right-style: none; border-right-width: medium"><FONT
      size=2>&nbsp;16.13 </FONT></TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" valign="bottom" >&nbsp;</TD>
    <TD vAlign=bottom align=left><FONT size=2>Granted </FONT></TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%"><FONT size=2>&nbsp; &nbsp; &nbsp;
      &nbsp;133 </FONT></TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" style="border-right-style: none; border-right-width: medium"><FONT size=2>29.35 </FONT></TD>
    <TD vAlign=bottom align=left width="2%" style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" valign="bottom" >&nbsp;</TD>
    <TD vAlign=bottom align=left bgColor=#e6efff><FONT size=2>Settled through
      the issuance of common shares </FONT></TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#e6efff><FONT
      size=2>&nbsp; &nbsp; &nbsp; &nbsp;(15</FONT></TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>) </TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#e6efff style="border-right-style: none; border-right-width: medium"><FONT
      size=2>12.87 </FONT></TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" valign="bottom" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom
      align=left><FONT size=2>Forfeited </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="9%"><FONT size=2>&nbsp; &nbsp; &nbsp; &nbsp;(81</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%">) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-right-style:none; border-right-width:medium" vAlign=bottom align=right
    width="9%"><FONT size=2>22.69 </FONT></TD>
    <TD style="BORDER-BOTTOM: medium none #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" vAlign=bottom align=left
    width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" valign="bottom" >&nbsp;</TD>
    <TD vAlign=bottom align=left bgColor=#e6efff><FONT size=2>Treasury RSUs
      outstanding, October 5, 2008 </FONT></TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#e6efff><FONT
      size=2>&nbsp; &nbsp; &nbsp; &nbsp;978 </FONT></TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#e6efff style="border-right-style: none; border-right-width: medium"><FONT
      size=2>17.43 </FONT></TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" valign="bottom" >&nbsp;</TD>
    <TD vAlign=bottom align=left><FONT size=2>Granted </FONT></TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%"><FONT size=2>&nbsp; &nbsp; &nbsp;
      &nbsp;181 </FONT></TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" style="border-right-style: none; border-right-width: medium"><FONT size=2>11.11 </FONT></TD>
    <TD vAlign=bottom align=left width="2%" style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" valign="bottom" >&nbsp;</TD>
    <TD vAlign=bottom align=left bgColor=#e6efff><FONT size=2>Settled through
      the issuance of common shares </FONT></TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#e6efff><FONT
      size=2>(315</FONT></TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>) </TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="9%" bgColor=#e6efff style="border-right-style: none; border-right-width: medium"><FONT size=2>8.75
      </FONT></TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" valign="bottom" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom
      align=left><FONT size=2>Forfeited </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="9%"><FONT size=2>&nbsp; &nbsp; &nbsp; &nbsp;(86</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%">) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-right-style:none; border-right-width:medium" vAlign=bottom align=right
    width="9%"><FONT size=2>26.75 </FONT></TD>
    <TD style="BORDER-BOTTOM: medium none #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" vAlign=bottom align=left
    width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" valign="bottom" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    bgColor=#e6efff><FONT size=2>Treasury RSUs outstanding, October 4, 2009
      </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=right
    width="9%" bgColor=#e6efff><FONT size=2>&nbsp; &nbsp; &nbsp; &nbsp;758
      </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="1%" bgColor=#e6efff><FONT size=2>$</FONT></TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-right-style:none; border-right-width:medium" vAlign=bottom align=right
    width="9%" bgColor=#e6efff><FONT size=2>&nbsp;18.48 </FONT></TD>
    <TD style="BORDER-BOTTOM: medium none #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" vAlign=bottom align=left
    width="2%" bgColor=#e6efff>&nbsp;</TD></TR></TABLE>
<P style="MARGIN-LEFT: 5%" align=justify>As at October 4, 2009, 20,000 (2008 &#150;
nil) of the outstanding Treasury RSUs were vested for which shares will be
issued in December 2009. The compensation expense included in selling, general
and administrative expenses and cost of sales, in respect of the options and
Treasury RSUs, was $3.0 million (2008 - $3.0 million; 2007 - $1.8 million). The
counterpart has been recorded as contributed surplus. When the shares are issued
to the employees, the amounts previously credited to contributed surplus are
transferred to share capital. </P>
<P align=right>GILDAN 2009 REPORT TO SHAREHOLDERS P.64</P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<!--$$/page=-->
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD align=left valign="bottom" >
    <img border="0" src="gildan1.jpg" width="92" height="30"></TD>
    <TD align=right width="50%" valign="bottom">NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
  </TD></TR></TABLE>
<P align=justify><B>10. STOCK-BASED COMPENSATION (continued): </B></P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0 BCLLIST>

  <TR>
    <TD vAlign=bottom width="5%"><B>(b)</B> </TD>
    <TD valign="bottom">
      <P align=justify><B>Stock options and restricted share units
      (continued):</B></P></TD></TR>
  <TR>
    <TD width="5%" valign="bottom">&nbsp;</TD>
    <TD valign="bottom">&nbsp;</TD></TR>
  <TR>
    <TD width="5%" valign="bottom"></TD>
    <TD valign="bottom">
      <P align=justify>Changes in outstanding non-Treasury RSUs were as
      follows:</P></TD></TR></TABLE>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR>
    <TD width="5%" valign="bottom"  >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=right
    width="1%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-right-style:none; border-right-width:medium" vAlign=bottom align=right
    width="12%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: medium none #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" vAlign=bottom align=right
    width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" valign="bottom" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom
      align=left><FONT size=2>&nbsp; </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-right-style:none; border-right-width:medium" vAlign=bottom align=right
    width="12%"><FONT size=2>Number </FONT></TD>
    <TD style="BORDER-BOTTOM: medium none #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" vAlign=bottom align=left
    width="2%" >&nbsp;</TD></TR>
  <TR>
    <TD width="5%" valign="bottom" >&nbsp;</TD>
    <TD vAlign=bottom align=left >&nbsp;</TD>
    <TD vAlign=bottom align=right width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%" style="border-right-style: none; border-right-width: medium" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="2%" style="border-style: none; border-width: medium" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" valign="bottom" >&nbsp;</TD>
    <TD vAlign=bottom align=left bgColor=#e6efff><FONT size=2>Non-Treasury
      RSUs outstanding, September 30, 2007 </FONT></TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%" bgColor=#e6efff style="border-right-style: none; border-right-width: medium"><FONT size=2>56
      </FONT></TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" valign="bottom" >&nbsp;</TD>
    <TD vAlign=bottom align=left><FONT size=2>Granted </FONT></TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%" style="border-right-style: none; border-right-width: medium"><FONT size=2>50 </FONT></TD>
    <TD vAlign=bottom align=left width="2%" style="border-style: none; border-width: medium" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" valign="bottom" >&nbsp;</TD>
    <TD vAlign=bottom align=left bgColor=#e6efff><FONT size=2>Settled
    </FONT></TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%" bgColor=#e6efff style="border-right-style: none; border-right-width: medium"><FONT
      size=2>(1</FONT></TD>
    <TD vAlign=bottom align=left width="2%"  bgColor=#e6efff style="border-style: none; border-width: medium">)
  </TD></TR>
  <TR vAlign=top>
    <TD width="5%" valign="bottom" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom
      align=left><FONT size=2>Forfeited </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-right-style:none; border-right-width:medium" vAlign=bottom align=right
    width="12%"><FONT size=2>(6</FONT></TD>
    <TD style="BORDER-BOTTOM: medium none #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" vAlign=bottom align=left
    width="2%" >) </TD></TR>
  <TR vAlign=top>
    <TD width="5%" valign="bottom" >&nbsp;</TD>
    <TD vAlign=bottom align=left bgColor=#e6efff><FONT size=2>Non-Treasury
      RSUs outstanding, October 5, 2008 </FONT></TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%" bgColor=#e6efff style="border-right-style: none; border-right-width: medium"><FONT size=2>99
      </FONT></TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" valign="bottom" >&nbsp;</TD>
    <TD vAlign=bottom align=left><FONT size=2>Granted </FONT></TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%" style="border-right-style: none; border-right-width: medium"><FONT size=2>106 </FONT></TD>
    <TD vAlign=bottom align=left width="2%" style="border-style: none; border-width: medium" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" valign="bottom" >&nbsp;</TD>
    <TD vAlign=bottom align=left bgColor=#e6efff><FONT size=2>Settled
    </FONT></TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%" bgColor=#e6efff style="border-right-style: none; border-right-width: medium"><FONT
      size=2>(3</FONT></TD>
    <TD vAlign=bottom align=left width="2%"  bgColor=#e6efff style="border-style: none; border-width: medium">)
  </TD></TR>
  <TR vAlign=top>
    <TD width="5%" valign="bottom" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom
      align=left><FONT size=2>Forfeited </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-right-style:none; border-right-width:medium" vAlign=bottom align=right
    width="12%"><FONT size=2>(17</FONT></TD>
    <TD style="BORDER-BOTTOM: medium none #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" vAlign=bottom align=left
    width="2%" >) </TD></TR>
  <TR vAlign=top>
    <TD width="5%" valign="bottom" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    bgColor=#e6efff><FONT size=2>Non-Treasury RSUs outstanding, October 4,
      2009 </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-right-style:none; border-right-width:medium" vAlign=bottom align=right
    width="12%" bgColor=#e6efff><FONT size=2>185 </FONT></TD>
    <TD style="BORDER-BOTTOM: medium none #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" vAlign=bottom align=left
    width="2%"  bgColor=#e6efff>&nbsp;</TD></TR></TABLE>
<P style="MARGIN-LEFT: 5%" 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 October 4, 2009, the weighted average fair value per non-Treasury RSU was
$18.55. No common shares are issued from treasury under such awards and they
are, therefore, non-dilutive. As at October 4, 2009, 47,170 (2008 &#150; nil) of the
outstanding non-Treasury RSUs were vested, which were settled in cash subsequent
to year-end. </P>
<P style="MARGIN-LEFT: 5%" align=justify>The compensation expense included in
selling, general and administrative expenses and cost of sales, in respect of
the non-Treasury RSUs, was $0.8 million (2008 - $0.3 million; 2007 - $0.4
million). The total obligation under this plan as at October 4, 2009, is $1.7
million (2008 - $0.8 million) and is recorded in accounts payable and accrued
liabilities. </P>
<P align=justify><B>11. DEFERRED SHARE UNIT PLAN:</B> </P>
<P align=justify>The Company has a deferred share unit plan for independent
members of the Company&#146;s Board of Directors who must receive 50% of their annual
board retainers in the form of deferred share units ("DSUs"). The value of these
DSUs is the market price of the Company&#146;s common shares at the time of payment
of the retainers or fees. DSUs granted under the plan will be redeemable and the
value thereof payable in cash only after the director ceases to act as a
director of the Company. As at October 4, 2009, there were 36,086 (2008 -
19,499) DSUs outstanding at a value of $0.7 million (2008 - $0.4 million). This
amount is included in accounts payable and accrued liabilities. The DSU
obligation is adjusted each quarter based on the market value of the Company&#146;s
common shares. The Company includes the cost of the DSU plan in selling, general
and administrative expenses. </P>
<P align=justify style="margin-bottom: 0">Changes in outstanding DSUs were as follows: </P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=right
    width="1%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-right-style:none; border-right-width:medium" vAlign=bottom align=right
    width="12%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: medium none #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" vAlign=bottom align=right
    width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom
      align=left><FONT size=2>&nbsp; </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-right-style:none; border-right-width:medium" vAlign=bottom align=right
    width="12%"><FONT size=2>Number </FONT></TD>
    <TD style="BORDER-BOTTOM: medium none #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" vAlign=bottom align=left
    width="2%" >&nbsp;</TD></TR>
  <TR>
    <TD vAlign=bottom align=left >&nbsp;</TD>
    <TD vAlign=bottom align=right width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%" style="border-right-style: none; border-right-width: medium" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="2%" style="border-style: none; border-width: medium" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD vAlign=bottom align=left bgColor=#e6efff><FONT size=2>DSUs
      outstanding, September 30, 2007 </FONT></TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%" bgColor=#e6efff style="border-right-style: none; border-right-width: medium"><FONT size=2>11
      </FONT></TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom
      align=left><FONT size=2>Granted </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-right-style:none; border-right-width:medium" vAlign=bottom align=right
    width="12%"><FONT size=2>8 </FONT></TD>
    <TD style="BORDER-BOTTOM: medium none #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" vAlign=bottom align=left
    width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD vAlign=bottom align=left bgColor=#e6efff><FONT size=2>DSUs
      outstanding, October 5, 2008 </FONT></TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%" bgColor=#e6efff style="border-right-style: none; border-right-width: medium"><FONT size=2>19
      </FONT></TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom
      align=left><FONT size=2>Granted </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-right-style:none; border-right-width:medium" vAlign=bottom align=right
    width="12%"><FONT size=2>17 </FONT></TD>
    <TD style="BORDER-BOTTOM: medium none #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" vAlign=bottom align=left
    width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    bgColor=#e6efff><FONT size=2>DSUs outstanding, October 4, 2009 </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-right-style:none; border-right-width:medium" vAlign=bottom align=right
    width="12%" bgColor=#e6efff><FONT size=2>36 </FONT></TD>
    <TD style="BORDER-BOTTOM: medium none #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" vAlign=bottom align=left
    width="2%"  bgColor=#e6efff>&nbsp;</TD></TR></TABLE>
<P align=right>GILDAN 2009 REPORT TO SHAREHOLDERS P.65</P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<!--$$/page=-->
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD align=left valign="bottom" >
    <img border="0" src="gildan1.jpg" width="92" height="30"></TD>
    <TD align=right width="50%" valign="bottom">NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
  </TD></TR></TABLE>
<P align=justify><B>12. COMMITMENTS AND CONTINGENCIES: </B></P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0 BCLLIST>

  <TR>
    <TD vAlign=bottom width="5%">(a) </TD>
    <TD valign="bottom">
      <P align=justify>The minimum annual lease payments under operating leases
      for premises, equipment and aircraft are approximately as
  follows:</P></TD></TR></TABLE>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR>
    <TD width="5%" valign="bottom"  >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="1%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="12%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: medium none #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" vAlign=bottom align=left
    width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" valign="bottom" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom
      align=left><FONT size=2>Fiscal year </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="12%"><FONT size=2>&nbsp; </FONT></TD>
    <TD style="BORDER-BOTTOM: medium none #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" vAlign=bottom align=left
    width="2%" >&nbsp;</TD></TR>
  <TR>
    <TD width="5%" valign="bottom" >&nbsp;</TD>
    <TD vAlign=bottom align=left >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="12%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="2%" style="border-style: none; border-width: medium" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" valign="bottom" >&nbsp;</TD>
    <TD vAlign=bottom align=left bgColor=#e6efff><FONT size=2>2010 </FONT></TD>
    <TD vAlign=bottom align=left width="1%"
      bgColor=#e6efff><FONT size=2>$</FONT></TD>
    <TD vAlign=bottom align=right width="12%" bgColor=#e6efff><FONT
      size=2>&nbsp;7,976 </FONT></TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" valign="bottom" >&nbsp;</TD>
    <TD vAlign=bottom align=left><FONT size=2>2011 </FONT></TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%"><FONT size=2>6,760 </FONT></TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" valign="bottom" >&nbsp;</TD>
    <TD vAlign=bottom align=left bgColor=#e6efff><FONT size=2>2012 </FONT></TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%" bgColor=#e6efff><FONT
      size=2>5,058 </FONT></TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" valign="bottom" >&nbsp;</TD>
    <TD vAlign=bottom align=left><FONT size=2>2013 </FONT></TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%"><FONT size=2>4,696 </FONT></TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" valign="bottom" >&nbsp;</TD>
    <TD vAlign=bottom align=left bgColor=#e6efff><FONT size=2>2014 </FONT></TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%" bgColor=#e6efff><FONT
      size=2>3,954 </FONT></TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" valign="bottom" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom
      align=left><FONT size=2>Thereafter </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="12%"><FONT size=2>11,398 </FONT></TD>
    <TD style="BORDER-BOTTOM: medium none #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" vAlign=bottom align=left
    width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" valign="bottom" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    bgColor=#e6efff><FONT size=2>&nbsp; </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="1%"  bgColor=#e6efff><FONT size=2>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=right
    width="12%" bgColor=#e6efff><FONT size=2>&nbsp;39,842 </FONT></TD>
    <TD style="BORDER-BOTTOM: medium none #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" vAlign=bottom align=left
    width="2%"  bgColor=#e6efff>&nbsp;</TD></TR></TABLE>
<p style="margin-top: 0; margin-bottom: 0"><BR>
</p>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0 BCLLIST>

  <TR>
    <TD vAlign=top width="5%">(b) </TD>
    <TD valign="bottom">
      <P align=justify>As at October 4, 2009, there were contractual obligations
      outstanding of approximately $60.0 million for the acquisition of
      property, plant and equipment (2008 - $14.1 million).</P></TD></TR>
  <TR>
    <TD width="5%" valign="bottom">&nbsp;</TD>
    <TD valign="bottom">&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top width="5%">(c) </TD>
    <TD valign="bottom">
      <P align=justify>During fiscal 2009, the United States Department of
      Agriculture advanced $4.3 million to CanAm in connection with a new
      subsidy program aimed at subsidizing qualifying capital expenditures.
      Amounts received under this program are initially based on U.S. cotton
      consumption. The assistance provided is not repayable, provided that the
      amounts received under the program are used to finance eligible capital
      expenditures over a certain period of time. As at October 4, 2009, the
      balance of financial assistance received in the amount of $4.1 million,
      which is to be disbursed no later than February 2011 to finance eligible
      capital expenditures, is included in accounts payable and accrued
      liabilities. Once the eligible capital expenditures are made, the balance
      included in accounts payable and accrued liabilities will be recognized as
      a reduction of the cost of the eligible capital expenditures.</P></TD></TR>
  <TR>
    <TD width="5%" valign="bottom">&nbsp;</TD>
    <TD valign="bottom">&nbsp;</TD></TR>
  <TR>
    <TD vAlign=bottom width="5%">(d) </TD>
    <TD valign="bottom">
      <P align=justify>Securities Class Actions:</P></TD></TR>
  <TR>
    <TD width="5%" valign="bottom">&nbsp;</TD>
    <TD valign="bottom">&nbsp;</TD></TR>
  <TR>
    <TD width="5%" valign="bottom"></TD>
    <TD valign="bottom">
      <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. 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&#146;s common shares between August 2, 2007
      and April 29, 2008 and allege, among other things, that the defendants
      misrepresented the Company&#146;s financial condition and its financial
      prospects in its financial guidance concerning the 2008 fiscal year, which
      was subsequently revised on April 29, 2008.</P></TD></TR>
  <TR>
    <TD width="5%" valign="bottom">&nbsp;</TD>
    <TD valign="bottom">&nbsp;</TD></TR>
  <TR>
    <TD width="5%" valign="bottom"></TD>
    <TD valign="bottom">
      <P align=justify>The U.S. lawsuits have been consolidated, and a
      consolidated amended complaint was filed alleging claims under the U.S.
      securities laws. On July 1, 2009, the District Court granted the motion by
      Gildan and other defendants to dismiss the U.S. action in its entirety,
      holding that the consolidated amended complaint failed to adequately
      allege the essential elements of a claim under the applicable provisions
      of the U.S. securities laws, including the existence of a material
      misstatement and fraudulent intent. On July 17, 2009, plaintiffs filed a
      motion seeking reconsideration of this decision only insofar as it
      declined to grant plaintiffs an opportunity to file a second amended
      complaint. On July 31, 2009, the Company and the other defendants filed a
      response to plaintiffs&#146; motion seeking reconsideration. On December 4,
      2009, the plaintiffs&#146; motion seeking reconsideration was denied.</P></TD></TR>
  <TR>
    <TD width="5%" valign="bottom">&nbsp;</TD>
    <TD valign="bottom">&nbsp;</TD></TR>
  <TR>
    <TD width="5%" valign="bottom"></TD>
    <TD valign="bottom">
      <P align=justify>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&#146;s
      Securities Act. A motion, along with affidavit evidence, for leave to
      pursue such statutory liability claims and class certification have been
      filed by the plaintiff. No date has been set yet for the hearing of that
      motion.</P></TD></TR>
  <TR>
    <TD width="5%" valign="bottom">&nbsp;</TD>
    <TD valign="bottom">&nbsp;</TD></TR>
  <TR>
    <TD width="5%" valign="bottom"></TD>
    <TD valign="bottom">
      <P align=justify>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 consolidated financial
  statements.</P></TD></TR></TABLE>
<P align=right>GILDAN 2009 REPORT TO SHAREHOLDERS P.66</P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<!--$$/page=-->
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD align=left valign="bottom">
    <img border="0" src="gildan1.jpg" width="92" height="30"></TD>
    <TD align=right width="50%" valign="bottom">NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
  </TD></TR></TABLE>
<P align=justify><B>12. COMMITMENTS AND CONTINGENCIES (continued):</B> </P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0 BCLLIST>

  <TR>
    <TD vAlign=top width="5%">(e) </TD>
    <TD valign="bottom">
      <P align=justify>The Company is a party to other claims and litigation
      arising in the normal course of operations. The Company does not expect
      the resolution of these matters to have a materially adverse effect on the
      financial position or results of operations of the
  Company.</P></TD></TR></TABLE>
<P align=justify><B>13. GUARANTEES:</B> </P>
<P align=justify>The Company, and some 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 some of its
subsidiaries do not perform their contractual obligations. As at October 4,
2009, the maximum potential liability under these guarantees was $10.0 million
(2008 - $14.1 million), of which $4.7 million (2008 - $4.5 million) was for
surety bonds and $5.3 million (2008 - $9.6 million) was for corporate guarantees
and standby letters of credit. The standby letters of credit mature at various
dates up to fiscal 2010, 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 October 4, 2009, 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=justify><B>14. INCOME TAXES: </B></P>
<P align=justify>The income tax provision differs from the amount computed by
applying the combined Canadian federal and provincial tax rates to earnings
before income taxes. The reasons for the difference and the related tax effects
are as follows: </P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=right
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=right
    width="10%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=right
    width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=right
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=right
    width="10%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=right
    width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=right
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-right-style:none; border-right-width:medium" vAlign=bottom align=right
    width="10%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: medium none #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" vAlign=bottom align=right
    width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom
      align=left><FONT size=2>&nbsp; </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="10%"><FONT size=2>2009 </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="10%"><FONT size=2>2008 </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-right-style:none; border-right-width:medium" vAlign=bottom align=right
    width="10%"><FONT size=2>2007 </FONT></TD>
    <TD style="BORDER-BOTTOM: medium none #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" vAlign=bottom align=left
    width="2%">&nbsp;</TD></TR>
  <TR>
    <TD vAlign=bottom align=left>&nbsp;</TD>
    <TD vAlign=bottom align=right width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%" style="border-right-style: none; border-right-width: medium">&nbsp;</TD>
    <TD vAlign=bottom align=right width="2%" style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD vAlign=bottom align=left bgColor=#e6efff><FONT size=2>Combined basic
      Canadian federal and provincial income taxes </FONT></TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff><FONT
      size=2>$</FONT></TD>
    <TD vAlign=bottom align=right width="10%" bgColor=#e6efff><FONT
      size=2>&nbsp;27,884 </FONT></TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff><FONT
      size=2>$</FONT></TD>
    <TD vAlign=bottom align=right width="10%" bgColor=#e6efff><FONT
      size=2>&nbsp;56,114 </FONT></TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff><FONT
      size=2>$</FONT></TD>
    <TD vAlign=bottom align=right width="10%" bgColor=#e6efff style="border-right-style: none; border-right-width: medium"><FONT
      size=2>&nbsp;40,291 </FONT></TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR>
    <TD vAlign=bottom align=left bgColor=#FFFFFF>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#FFFFFF>&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%" bgColor=#FFFFFF>&nbsp;</TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#FFFFFF>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#FFFFFF>&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%" bgColor=#FFFFFF>&nbsp;</TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#FFFFFF>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#FFFFFF>&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%" bgColor=#FFFFFF style="border-right-style: none; border-right-width: medium">&nbsp;</TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#FFFFFF style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD vAlign=bottom align=left bgcolor="#FFFFFF"><FONT size=2>(Decrease)
    increase in income taxes resulting from: </FONT></TD>
    <TD vAlign=bottom align=left width="1%" bgcolor="#FFFFFF">&nbsp;</TD>
    <TD vAlign=bottom align=left width="10%" bgcolor="#FFFFFF"><FONT size=2>&nbsp; </FONT></TD>
    <TD vAlign=bottom align=left width="2%" bgcolor="#FFFFFF">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgcolor="#FFFFFF">&nbsp;</TD>
    <TD vAlign=bottom align=left width="10%" bgcolor="#FFFFFF"><FONT size=2>&nbsp; </FONT></TD>
    <TD vAlign=bottom align=left width="2%" bgcolor="#FFFFFF">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgcolor="#FFFFFF">&nbsp;</TD>
    <TD vAlign=bottom align=left width="10%" bgcolor="#FFFFFF" style="border-right-style: none; border-right-width: medium"><FONT size=2>&nbsp; </FONT></TD>
    <TD vAlign=bottom align=left width="2%" bgcolor="#FFFFFF" style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD vAlign=bottom align=left bgColor=#e6efff><FONT size=2>&nbsp; &nbsp;
      &nbsp;Effect of different tax rates on earnings of foreign subsidiaries
      </FONT></TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%" bgColor=#e6efff><FONT
      size=2>(32,181</FONT></TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>) </TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%" bgColor=#e6efff><FONT
      size=2>(51,292</FONT></TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>) </TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%" bgColor=#e6efff style="border-right-style: none; border-right-width: medium"><FONT
      size=2>(38,288</FONT></TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff style="border-style: none; border-width: medium">) </TD></TR>
  <TR vAlign=top>
    <TD vAlign=bottom align=left><FONT size=2>&nbsp; &nbsp; &nbsp;Income tax
      (recovery) charge&nbsp; for prior taxation years </FONT></TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%"><FONT size=2>(6,085</FONT></TD>
    <TD vAlign=bottom align=left width="2%">) </TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%"><FONT size=2>26,906 </FONT></TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%" style="border-right-style: none; border-right-width: medium"><FONT size=2>(7,601</FONT></TD>
    <TD vAlign=bottom align=left width="2%" style="border-style: none; border-width: medium">) </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    bgColor=#e6efff><FONT size=2>&nbsp; &nbsp; &nbsp;Effect of non-deductible
      expenses and other </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="10%" bgColor=#e6efff><FONT size=2>4,596</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="10%" bgColor=#e6efff><FONT size=2>2,672 </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-right-style:none; border-right-width:medium" vAlign=bottom align=right
    width="10%" bgColor=#e6efff><FONT size=2>783 </FONT></TD>
    <TD style="BORDER-BOTTOM: medium none #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" vAlign=bottom align=left
    width="2%" bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom
      align=left><FONT size=2>&nbsp; </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="1%"><FONT size=2>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=right
    width="10%"><FONT size=2>&nbsp;(5,786</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="2%">) </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="1%"><FONT size=2>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=right
    width="10%"><FONT size=2>&nbsp;34,400 </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="1%"><FONT size=2>$</FONT></TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-right-style:none; border-right-width:medium" vAlign=bottom align=right
    width="10%"><FONT size=2>&nbsp;(4,815</FONT></TD>
    <TD style="BORDER-BOTTOM: medium none #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" vAlign=bottom align=left
    width="2%">) </TD></TR></TABLE>
<P align=justify>For fiscal 2009 and 2007, the income tax recoveries of $6.1
million and $7.6 million, respectively, relate to previously unrecognized tax
positions of prior taxation years. </P>
<P align=justify>In the third quarter of fiscal 2009, the Canada Revenue Agency
(CRA) completed its audit of the 2004, 2005 and 2006 taxation years and there
were no significant adjustments to the Company&#146;s income tax returns. In fiscal
2008, the CRA completed an audit of the Company&#146;s income tax returns for the
2000, 2001, 2002 and 2003 fiscal years, the scope of which included a review of
the Company&#146;s transfer pricing and the allocation of income between the
Company&#146;s Canadian legal entity and its foreign subsidiaries. On December
10, 2008, the Company reached an agreement with CRA, which resulted in a tax reassessment related to the restructuring of
its international wholesale business and the related transfer of the Company&#146;s
assets to its Barbados subsidiary, which occurred in fiscal 1999. The terms of
the agreement were accounted for in fiscal 2008 through a charge to income tax
expense of $26.9 million, including a provision for provincial taxes, and a
reclassification of $17.3 million of future income tax liabilities to income
taxes payable. There were no penalties assessed as part of the agreement, and
there were no other significant income tax adjustments to reported taxable
income for the years under audit. During fiscal 2009, the Company made payments
of $24.8 million to the CRA and a provincial tax authority, as part of this
agreement. </P>
<P align=right>GILDAN 2009 REPORT TO SHAREHOLDERS P.67</P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<!--$$/page=-->
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD align=left valign="bottom">
    <img border="0" src="gildan1.jpg" width="92" height="30"></TD>
    <TD align=right width="50%" valign="bottom">NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
  </TD></TR></TABLE>
<P align=justify><B>14. INCOME TAXES (continued): </B></P>
<P align=justify style="margin-bottom: 0">The components of income tax (recovery) expense are as follows:
</P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom
      align=left><FONT size=2>&nbsp;</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=right
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=right
    width="10%"><FONT size=2>&nbsp;</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=right
    width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=right
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-right-style:none; border-right-width:medium" vAlign=bottom align=right
    width="10%"><FONT size=2>&nbsp;</FONT></TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; " vAlign=bottom align=right
    width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-left-style:none; border-left-width:medium" vAlign=bottom align=right
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-right-style:none; border-right-width:medium" vAlign=bottom align=right
    width="10%"><FONT size=2>&nbsp;</FONT></TD>
    <TD style="BORDER-BOTTOM: medium none #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" vAlign=bottom align=right
    width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom
      align=left><FONT size=2>&nbsp; </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="10%"><FONT size=2>2009 </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-right-style:none; border-right-width:medium" vAlign=bottom align=right
    width="10%"><FONT size=2>2008 </FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; " vAlign=bottom align=left
    width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:none; border-left-width:medium" vAlign=bottom align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-right-style:none; border-right-width:medium" vAlign=bottom align=right
    width="10%"><FONT size=2>2007 </FONT></TD>
    <TD style="BORDER-BOTTOM: medium none #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" vAlign=bottom align=left
    width="2%">&nbsp;</TD></TR>
  <TR>
    <TD vAlign=bottom align=left><FONT size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%"><FONT size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%" style="border-right-style: none; border-right-width: medium"><FONT size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right width="2%" style="border-bottom-style: none; border-bottom-width: medium">&nbsp;</TD>
    <TD vAlign=bottom align=right width="1%" style="border-left-style: none; border-left-width: medium">&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%" style="border-right-style: none; border-right-width: medium"><FONT size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right width="2%" style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD vAlign=bottom align=left bgColor=#e6efff><FONT size=2>Current income
      taxes </FONT></TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff><FONT
      size=2>$</FONT></TD>
    <TD vAlign=bottom align=right width="10%" bgColor=#e6efff><FONT
      size=2>&nbsp;(3,352</FONT></TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>) </TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff><FONT
      size=2>$</FONT></TD>
    <TD vAlign=bottom align=right width="10%" bgColor=#e6efff style="border-right-style: none; border-right-width: medium"><FONT
      size=2>&nbsp;50,285 </FONT></TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff style="border-top-style: none; border-top-width: medium; border-bottom-style: none; border-bottom-width: medium">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff style="border-left-style: none; border-left-width: medium"><FONT
      size=2>$</FONT></TD>
    <TD vAlign=bottom align=right width="10%" bgColor=#e6efff style="border-right-style: none; border-right-width: medium"><FONT
      size=2>&nbsp;4,104 </FONT></TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom
      align=left><FONT size=2>Future income taxes </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="10%"><FONT size=2>(2,434</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%">) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-right-style:none; border-right-width:medium" vAlign=bottom align=right
    width="10%"><FONT size=2>(15,885</FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-top-style:none; border-top-width:medium" vAlign=bottom align=left
    width="2%">) </TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:none; border-left-width:medium" vAlign=bottom align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-right-style:none; border-right-width:medium" vAlign=bottom align=right
    width="10%"><FONT size=2>(8,919</FONT></TD>
    <TD style="BORDER-BOTTOM: medium none #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" vAlign=bottom align=left
    width="2%">) </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    bgColor=#e6efff><FONT size=2>&nbsp; </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="1%" bgColor=#e6efff><FONT size=2>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=right
    width="10%" bgColor=#e6efff><FONT size=2>&nbsp;(5,786</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="2%" bgColor=#e6efff>) </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="1%" bgColor=#e6efff><FONT size=2>$</FONT></TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-right-style:none; border-right-width:medium" vAlign=bottom align=right
    width="10%" bgColor=#e6efff><FONT size=2>&nbsp;34,400 </FONT></TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; " vAlign=bottom align=left
    width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-left-style:none; border-left-width:medium" vAlign=bottom align=left
    width="1%" bgColor=#e6efff><FONT size=2>$</FONT></TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-right-style:none; border-right-width:medium" vAlign=bottom align=right
    width="10%" bgColor=#e6efff><FONT size=2>&nbsp;(4,815</FONT></TD>
    <TD style="BORDER-BOTTOM: medium none #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" vAlign=bottom align=left
    width="2%" bgColor=#e6efff>) </TD></TR></TABLE>
<P align=justify>As at October 4, 2009, the Company has non-capital loss
carryforwards available to reduce future taxable income for Canadian, and US tax
purposes of approximately CAD$9.8 million and $20.3 million, respectively,
expiring between 2022 and 2029.</P>
<P align=justify>The Company has not recognized a future income tax liability
for the undistributed earnings of its subsidiaries in the current or prior years
because the Company currently does not expect to sell those investments, and for
those undistributed earnings that would become taxable, there is no intention to
repatriate the earnings. </P>
<P align=justify style="margin-bottom: 0">Significant components of the Company&#146;s future income tax
assets and liabilities are as follows: </P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left valign="bottom">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right
    width="1%" valign="bottom">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right
    width="12%" valign="bottom">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right
    width="2%" valign="bottom">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right
    width="1%" valign="bottom">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right
    width="12%" valign="bottom">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: medium none #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" align=right
    width="2%" valign="bottom">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left valign="bottom"><FONT
      size=2>&nbsp; </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="1%" valign="bottom">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="12%" valign="bottom"><FONT
      size=2>2009 </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="2%" valign="bottom">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="1%" valign="bottom">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="12%" valign="bottom"><FONT
      size=2>2008 </FONT></TD>
    <TD style="BORDER-BOTTOM: medium none #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" align=left
    width="2%" valign="bottom">&nbsp;</TD></TR>
  <TR>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=right width="1%" valign="bottom">&nbsp;</TD>
    <TD align=right width="12%" valign="bottom">&nbsp;</TD>
    <TD align=right width="2%" valign="bottom">&nbsp;</TD>
    <TD align=right width="1%" valign="bottom">&nbsp;</TD>
    <TD align=right width="12%" valign="bottom">&nbsp;</TD>
    <TD align=right width="2%" valign="bottom" style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff valign="bottom"><FONT size=2>Future income tax assets
      (liabilities) </FONT></TD>
    <TD align=left width="1%" bgColor=#e6efff valign="bottom">&nbsp;</TD>
    <TD align=left width="12%" bgColor=#e6efff valign="bottom"><FONT size=2>&nbsp; </FONT></TD>
    <TD align=left width="2%" bgColor=#e6efff valign="bottom">&nbsp;</TD>
    <TD align=left width="1%" bgColor=#e6efff valign="bottom">&nbsp;</TD>
    <TD align=left width="12%" bgColor=#e6efff valign="bottom"><FONT size=2>&nbsp; </FONT></TD>
    <TD align=left width="2%" bgColor=#e6efff valign="bottom" style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left valign="bottom"><FONT size=2>&nbsp; &nbsp; &nbsp;Non-capital losses
    </FONT></TD>
    <TD align=left width="1%" valign="bottom"><FONT size=2>$</FONT></TD>
    <TD align=right width="12%" valign="bottom"><FONT size=2>&nbsp;9,261 </FONT></TD>
    <TD align=left width="2%" valign="bottom">&nbsp;</TD>
    <TD align=left width="1%" valign="bottom"><FONT size=2>$</FONT></TD>
    <TD align=right width="12%" valign="bottom"><FONT size=2>&nbsp;9,442 </FONT></TD>
    <TD align=left width="2%" valign="bottom" style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff valign="bottom"><FONT size=2>&nbsp; &nbsp; &nbsp;Reserves
      and accruals </FONT></TD>
    <TD align=left width="1%" bgColor=#e6efff valign="bottom">&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff valign="bottom"><FONT size=2>5,094 </FONT></TD>
    <TD align=left width="2%" bgColor=#e6efff valign="bottom">&nbsp;</TD>
    <TD align=left width="1%" bgColor=#e6efff valign="bottom">&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff valign="bottom"><FONT size=2>5,690 </FONT></TD>
    <TD align=left width="2%" bgColor=#e6efff valign="bottom" style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left valign="bottom"><FONT
      size=2>&nbsp; &nbsp; &nbsp;Other </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="1%" valign="bottom">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="12%" valign="bottom"><FONT
      size=2>2,653 </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="2%" valign="bottom">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="1%" valign="bottom">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="12%" valign="bottom"><FONT
      size=2>1,910 </FONT></TD>
    <TD style="BORDER-BOTTOM: medium none #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" align=left
    width="2%" valign="bottom">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff valign="bottom"><FONT size=2>&nbsp; </FONT></TD>
    <TD align=left width="1%" bgColor=#e6efff valign="bottom">&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff valign="bottom"><FONT size=2>17,008 </FONT></TD>
    <TD align=left width="2%" bgColor=#e6efff valign="bottom">&nbsp;</TD>
    <TD align=left width="1%" bgColor=#e6efff valign="bottom">&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff valign="bottom"><FONT size=2>17,042 </FONT></TD>
    <TD align=left width="2%" bgColor=#e6efff valign="bottom" style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left valign="bottom"><FONT
      size=2>&nbsp; &nbsp; &nbsp;Valuation allowance </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="1%" valign="bottom">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="12%" valign="bottom"><FONT
      size=2>(2,579</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%" valign="bottom">) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="1%" valign="bottom">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="12%" valign="bottom"><FONT
      size=2>(907</FONT></TD>
    <TD style="BORDER-BOTTOM: medium none #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" align=left width="2%" valign="bottom">)
</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff valign="bottom"><FONT size=2>&nbsp; </FONT></TD>
    <TD align=left width="1%" bgColor=#e6efff valign="bottom">&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff valign="bottom"><FONT size=2>14,429 </FONT></TD>
    <TD align=left width="2%" bgColor=#e6efff valign="bottom">&nbsp;</TD>
    <TD align=left width="1%" bgColor=#e6efff valign="bottom">&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff valign="bottom"><FONT size=2>16,135 </FONT></TD>
    <TD align=left width="2%" bgColor=#e6efff valign="bottom" style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left valign="bottom"><FONT
      size=2>&nbsp; &nbsp; &nbsp;Property, plant and equipment, intangible
      assets, and other </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="1%" valign="bottom">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="12%" valign="bottom"><FONT
      size=2>(30,283</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%" valign="bottom">) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="1%" valign="bottom">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="12%" valign="bottom"><FONT
      size=2>(34,183</FONT></TD>
    <TD style="BORDER-BOTTOM: medium none #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" align=left width="2%" valign="bottom">)
</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left
      bgColor=#e6efff valign="bottom"><FONT size=2>Net future income tax liability </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
    bgColor=#e6efff valign="bottom"><FONT size=2>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right width="12%"
    bgColor=#e6efff valign="bottom"><FONT size=2>&nbsp;(15,854</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="2%"
    bgColor=#e6efff valign="bottom">) </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
    bgColor=#e6efff valign="bottom"><FONT size=2>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right width="12%"
    bgColor=#e6efff valign="bottom"><FONT size=2>&nbsp;(18,048</FONT></TD>
    <TD style="BORDER-BOTTOM: medium none #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" align=left width="2%"
    bgColor=#e6efff valign="bottom">) </TD></TR>
  <TR>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=left width="1%" valign="bottom">&nbsp;</TD>
    <TD align=right width="12%" valign="bottom">&nbsp;</TD>
    <TD align=left width="2%" valign="bottom">&nbsp;</TD>
    <TD align=left width="1%" valign="bottom">&nbsp;</TD>
    <TD align=right width="12%" valign="bottom">&nbsp;</TD>
    <TD align=left width="2%" valign="bottom" style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff valign="bottom"><FONT size=2>Presented as: </FONT></TD>
    <TD align=left width="1%" bgColor=#e6efff valign="bottom">&nbsp;</TD>
    <TD align=left width="12%" bgColor=#e6efff valign="bottom"><FONT size=2>&nbsp; </FONT></TD>
    <TD align=left width="2%" bgColor=#e6efff valign="bottom">&nbsp;</TD>
    <TD align=left width="1%" bgColor=#e6efff valign="bottom">&nbsp;</TD>
    <TD align=left width="12%" bgColor=#e6efff valign="bottom"><FONT size=2>&nbsp; </FONT></TD>
    <TD align=left width="2%" bgColor=#e6efff valign="bottom" style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left valign="bottom"><FONT size=2>&nbsp; &nbsp; &nbsp;Long-term assets
</FONT></TD>
    <TD align=left width="1%" valign="bottom"><FONT size=2>$</FONT></TD>
    <TD align=right width="12%" valign="bottom"><FONT size=2>&nbsp;7,910 </FONT></TD>
    <TD align=left width="2%" valign="bottom">&nbsp;</TD>
    <TD align=left width="1%" valign="bottom"><FONT size=2>$</FONT></TD>
    <TD align=right width="12%" valign="bottom"><FONT size=2>&nbsp;9,283 </FONT></TD>
    <TD align=left width="2%" valign="bottom" style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      bgColor=#e6efff valign="bottom"><FONT size=2>&nbsp; &nbsp; &nbsp;Long-term liabilities
      </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    bgColor=#e6efff valign="bottom">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="12%"
    bgColor=#e6efff valign="bottom"><FONT size=2>(23,764</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    bgColor=#e6efff valign="bottom">) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    bgColor=#e6efff valign="bottom">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="12%"
    bgColor=#e6efff valign="bottom"><FONT size=2>(27,331</FONT></TD>
    <TD style="BORDER-BOTTOM: medium none #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" align=left width="2%"
    bgColor=#e6efff valign="bottom">) </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left valign="bottom"><FONT
      size=2>&nbsp; </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%" valign="bottom"><FONT
      size=2>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right width="12%" valign="bottom"><FONT
      size=2>&nbsp;(15,854</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="2%" valign="bottom">) </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%" valign="bottom"><FONT
      size=2>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right width="12%" valign="bottom"><FONT
      size=2>&nbsp;(18,048</FONT></TD>
    <TD style="BORDER-BOTTOM: medium none #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" align=left width="2%" valign="bottom">)
  </TD></TR></TABLE>
<P align=right>GILDAN 2009 REPORT TO SHAREHOLDERS P.68<BR></P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<!--$$/page=-->
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD align=left valign="bottom" >
    <img border="0" src="gildan1.jpg" width="92" height="30"></TD>
    <TD align=right width="50%" valign="bottom">NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
  </TD></TR></TABLE>
<P align=justify><B>15. EARNINGS PER SHARE:</B> </P>
<P align=justify style="margin-bottom: 0">A reconciliation between basic and diluted earnings per share
is as follows: </P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=right
    width="1%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=right
    width="10%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=right
    width="2%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=right
    width="1%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=right
    width="10%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=right
    width="2%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=right
    width="1%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-right-style:none; border-right-width:medium" vAlign=bottom align=right
    width="10%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: medium none #000000; " vAlign=bottom align=right
    width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom
      align=left><FONT size=2>&nbsp; </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="10%"><FONT size=2>2009 </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="10%"><FONT size=2>2008 </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-right-style:none; border-right-width:medium" vAlign=bottom align=right
    width="10%"><FONT size=2>2007 </FONT></TD>
    <TD style="BORDER-BOTTOM: medium none #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" vAlign=bottom align=left
    width="2%" >&nbsp;</TD></TR>
  <TR>
    <TD vAlign=bottom align=left >&nbsp;</TD>
    <TD vAlign=bottom align=right width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%" style="border-right-style: none; border-right-width: medium" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="2%" style="border-style: none; border-width: medium" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD vAlign=bottom align=left bgColor=#e6efff><FONT size=2>Basic earnings
      per share: </FONT></TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="10%" bgColor=#e6efff><FONT
      size=2>&nbsp; </FONT></TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="10%" bgColor=#e6efff><FONT
      size=2>&nbsp; </FONT></TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="10%" bgColor=#e6efff style="border-right-style: none; border-right-width: medium"><FONT
      size=2>&nbsp; </FONT></TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom
      align=left><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp; Basic weighted average
      number of common shares outstanding </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="10%"><FONT size=2>120,811 </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="10%"><FONT size=2>120,479 </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-right-style:none; border-right-width:medium" vAlign=bottom align=right
    width="10%"><FONT size=2>120,340 </FONT></TD>
    <TD style="BORDER-BOTTOM: medium none #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" vAlign=bottom align=left
    width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    bgColor=#e6efff><FONT size=2>&nbsp; &nbsp; &nbsp;Basic earnings per share
      </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="1%"  bgColor=#e6efff><FONT size=2>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=right
    width="10%" bgColor=#e6efff><FONT size=2>&nbsp;0.79 </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="1%"  bgColor=#e6efff><FONT size=2>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=right
    width="10%" bgColor=#e6efff><FONT size=2>&nbsp;1.21 </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="1%"  bgColor=#e6efff><FONT size=2>$</FONT></TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-right-style:none; border-right-width:medium" vAlign=bottom align=right
    width="10%" bgColor=#e6efff><FONT size=2>&nbsp;1.07 </FONT></TD>
    <TD style="BORDER-BOTTOM: medium none #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" vAlign=bottom align=left
    width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=bottom align=left  bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%"
    bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%"
    bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%"
    bgColor=#ffffff style="border-right-style: none; border-right-width: medium">&nbsp;</TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#ffffff style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD vAlign=bottom align=left bgColor=#ffffff><FONT size=2>Diluted earnings
      per share: </FONT></TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="10%" bgColor=#ffffff><FONT
      size=2>&nbsp; </FONT></TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="10%" bgColor=#ffffff><FONT
      size=2>&nbsp; </FONT></TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="10%" bgColor=#ffffff style="border-right-style: none; border-right-width: medium"><FONT
      size=2>&nbsp; </FONT></TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#ffffff style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD vAlign=bottom align=left bgColor=#e6efff><FONT
      size=2>&nbsp;&nbsp;&nbsp;&nbsp; Basic weighted average number of common
      shares outstanding </FONT></TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%" bgColor=#e6efff><FONT size=2>120,811 </FONT></TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%" bgColor=#e6efff><FONT size=2>120,479 </FONT></TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%" bgColor=#e6efff style="border-right-style: none; border-right-width: medium"><FONT size=2>120,340 </FONT></TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom
      align=left><FONT size=2>&nbsp; &nbsp; &nbsp;Plus dilutive impact of stock
      options and Treasury RSUs </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="10%"><FONT size=2>624 </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="10%"><FONT size=2>1,143 </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-right-style:none; border-right-width:medium" vAlign=bottom align=right
    width="10%"><FONT size=2>1,198 </FONT></TD>
    <TD style="BORDER-BOTTOM: medium none #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" vAlign=bottom align=left
    width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    bgColor=#e6efff><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp; Diluted weighted
      average number of common shares outstanding </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="10%" bgColor=#e6efff><FONT size=2>121,435
      </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="10%" bgColor=#e6efff><FONT size=2>121,622
      </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-right-style:none; border-right-width:medium" vAlign=bottom align=right
    width="10%" bgColor=#e6efff><FONT size=2>121,538
      </FONT></TD>
    <TD style="BORDER-BOTTOM: medium none #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" vAlign=bottom align=left
    width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom
      align=left><FONT size=2>&nbsp; &nbsp; &nbsp;Diluted earnings per share
      </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="1%" ><FONT size=2>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=right
    width="10%"><FONT size=2>&nbsp;0.79 </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="2%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="1%" ><FONT size=2>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=right
    width="10%"><FONT size=2>&nbsp;1.20 </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="2%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="1%" ><FONT size=2>$</FONT></TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-right-style:none; border-right-width:medium" vAlign=bottom align=right
    width="10%"><FONT size=2>&nbsp;1.06 </FONT></TD>
    <TD style="BORDER-BOTTOM: medium none #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" vAlign=bottom align=left
    width="2%" >&nbsp;</TD></TR></TABLE>
<P align=justify>Excluded from the above calculation for the year ended October
4, 2009 are 452,093 (2008 &#150; 125,208) stock options and 236,934 (2008 &#150; 25,575)
Treasury RSUs which were deemed to be anti-dilutive. All the stock options and
Treasury RSUs outstanding for fiscal 2007 were dilutive. </P>
<P align=justify><B>16. RESTRUCTURING AND OTHER CHARGES, AND ASSETS HELD FOR
SALE:</B> </P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=right
    width="1%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=right
    width="10%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=right
    width="2%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=right
    width="1%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=right
    width="10%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=right
    width="2%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=right
    width="1%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=right
    width="10%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: medium none #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" vAlign=bottom align=right
    width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom
      align=left><FONT size=2>&nbsp; </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="10%"><FONT size=2>2009 </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="10%"><FONT size=2>2008 </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="10%"><FONT size=2>2007 </FONT></TD>
    <TD style="BORDER-BOTTOM: medium none #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" vAlign=bottom align=left
    width="2%" >&nbsp;</TD></TR>
  <TR>
    <TD vAlign=bottom align=left >&nbsp;</TD>
    <TD vAlign=bottom align=right width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="2%" style="border-style: none; border-width: medium" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD vAlign=bottom align=left bgColor=#e6efff><FONT size=2>Gain on disposal
      of assets held for sale </FONT></TD>
    <TD vAlign=bottom align=left width="1%"
      bgColor=#e6efff><FONT size=2>$</FONT></TD>
    <TD vAlign=bottom align=right width="10%" bgColor=#e6efff><FONT
      size=2>&nbsp;(619</FONT></TD>
    <TD vAlign=bottom align=left width="2%"  bgColor=#e6efff>)
</TD>
    <TD vAlign=bottom align=left width="1%"
      bgColor=#e6efff><FONT size=2>$</FONT></TD>
    <TD vAlign=bottom align=right width="10%" bgColor=#e6efff><FONT
      size=2>&nbsp;(526</FONT></TD>
    <TD vAlign=bottom align=left width="2%"  bgColor=#e6efff>)
</TD>
    <TD vAlign=bottom align=left width="1%"
      bgColor=#e6efff><FONT size=2>$</FONT></TD>
    <TD vAlign=bottom align=right width="10%" bgColor=#e6efff><FONT
      size=2>&nbsp;(1,530</FONT></TD>
    <TD vAlign=bottom align=left width="2%"  bgColor=#e6efff style="border-style: none; border-width: medium">)
  </TD></TR>
  <TR vAlign=top>
    <TD vAlign=bottom align=left><FONT size=2>Accelerated depreciation
    </FONT></TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%"><FONT size=2>- </FONT></TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%"><FONT size=2>- </FONT></TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%"><FONT size=2>3,493 </FONT></TD>
    <TD vAlign=bottom align=left width="2%" style="border-style: none; border-width: medium" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD vAlign=bottom align=left bgColor=#e6efff><FONT size=2>Asset impairment
      loss and write-down of assets held for sale </FONT></TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%" bgColor=#e6efff><FONT
      size=2>1,595 </FONT></TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%" bgColor=#e6efff><FONT
      size=2>2,700 </FONT></TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%" bgColor=#e6efff><FONT
      size=2>3,560 </FONT></TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD vAlign=bottom align=left><FONT size=2>Employee termination costs and
      other benefits </FONT></TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%"><FONT size=2>2,180 </FONT></TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%"><FONT size=2>400 </FONT></TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%"><FONT size=2>13,619 </FONT></TD>
    <TD vAlign=bottom align=left width="2%" style="border-style: none; border-width: medium" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD vAlign=bottom align=left bgColor=#e6efff><FONT size=2>Carrying and
      dismantling costs associated with assets held for sale </FONT></TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%" bgColor=#e6efff><FONT
      size=2>3,120 </FONT></TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%" bgColor=#e6efff><FONT
      size=2>3,470 </FONT></TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%" bgColor=#e6efff><FONT
      size=2>8,870 </FONT></TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom
      align=left><FONT size=2>Adjustment for employment contract </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="10%"><FONT size=2>(77</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%" >) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="10%"><FONT size=2>(555</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%" >) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="10%"><FONT size=2>- </FONT></TD>
    <TD style="BORDER-BOTTOM: medium none #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" vAlign=bottom align=left
    width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    bgColor=#e6efff><FONT size=2>&nbsp; </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="1%"  bgColor=#e6efff><FONT size=2>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=right
    width="10%" bgColor=#e6efff><FONT size=2>&nbsp;6,199 </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="1%"  bgColor=#e6efff><FONT size=2>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=right
    width="10%" bgColor=#e6efff><FONT size=2>&nbsp;5,489 </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="1%"  bgColor=#e6efff><FONT size=2>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=right
    width="10%" bgColor=#e6efff><FONT size=2>&nbsp;28,012 </FONT></TD>
    <TD style="BORDER-BOTTOM: medium none #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" vAlign=bottom align=left
    width="2%"  bgColor=#e6efff>&nbsp;</TD></TR></TABLE>
<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. In fiscal 2008, the Company announced the consolidation of its Haiti
sewing operation, which was finalized in the first half of fiscal 2009, and the
planned phase out of sock finishing operations in the U.S., which was finalized
in the third quarter of fiscal 2009. The costs incurred in connection with these
initiatives have been recorded as restructuring and other charges. </P>
<P align=justify>For fiscal 2009, restructuring and other charges totalled $6.2
million which included $3.7 million for the closure of the Company's U.S. sock
finishing operations in the third quarter, and $3.2 million primarily related to
facility closures that occurred in previous fiscal years, including carrying
costs and asset write-downs relating to assets held for sale, net of a gain of
$0.6 million on the disposal of equipment. </P>
<P align=justify>Restructuring charges of $5.5 million in fiscal 2008 included
$2.1 million relating to the consolidation of the Company's Haiti sewing
operation, and $4.5 million relating to facility closures which occurred in
previous fiscal years, primarily for carrying and dismantling costs associated
with assets held for sale, net of a gain on disposal of assets held for sale of
$0.5 million. The Company also had a recovery of $0.6 million from the
obligations accrued for the employment contract with the former Chairman and
Co-Chief Executive Officer of the Company. </P>
<P align=right>GILDAN 2009 REPORT TO SHAREHOLDERS P.69</P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<!--$$/page=-->
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD align=left valign="bottom">
    <img border="0" src="gildan1.jpg" width="92" height="30"></TD>
    <TD align=right width="50%" valign="bottom">NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
  </TD></TR></TABLE>
<P align=justify><B>16. RESTRUCTURING AND OTHER CHARGES, AND ASSETS HELD FOR SALE
(continued):</B> </P>
<P align=justify>The $28.0 million of restructuring charges incurred in fiscal
2007 relate primarily to the closures of the Company&#146;s textile facilities in
Canada and the United States and its sewing facilities in Mexico as well as the
relocation of its corporate office, resulting in employee termination costs of
$13.6 million, an asset impairment of $3.6 million, an accelerated depreciation
charge of $3.5 million, a gain on disposal of assets held for sale of $1.5
million, and other exit costs of $8.8 million. </P>
<P align=justify>Assets held for sale of $6.5 million as at October 4, 2009
(October 5, 2008 - $10.5 million) include property, plant and equipment relating
to the closed facilities. The Company expects to incur additional carrying costs
relating to the closed facilities, which will be accounted for as restructuring
charges as incurred and until all property, plant and equipment related to the
closures are disposed of. Any gains or losses on the disposal of the assets held
for sale will also be accounted for as restructuring charges as incurred. </P>
<P align=justify style="margin-bottom: 0">Accounts payable and accrued liabilities include amounts
relating to restructuring activities and charges to comply with an employment
contract, as follows: </P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=right
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-right-style:none; border-right-width:medium" vAlign=bottom align=right
    width="10%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: medium none #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" vAlign=bottom align=right
    width="2%">&nbsp;</TD></TR>
  <TR>
    <TD vAlign=bottom align=left>&nbsp;</TD>
    <TD vAlign=bottom align=right width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%" style="border-right-style: none; border-right-width: medium">&nbsp;</TD>
    <TD vAlign=bottom align=right width="2%" style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD vAlign=bottom align=left bgColor=#e6efff><FONT size=2>Balance,
      September 30, 2007 </FONT></TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff><FONT
      size=2>$</FONT></TD>
    <TD vAlign=bottom align=right width="10%" bgColor=#e6efff style="border-right-style: none; border-right-width: medium"><FONT
      size=2>&nbsp;4,248 </FONT></TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD vAlign=bottom align=left><FONT size=2>Employee termination and other
      benefits </FONT></TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%" style="border-right-style: none; border-right-width: medium"><FONT size=2>400 </FONT></TD>
    <TD vAlign=bottom align=left width="2%" style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD vAlign=bottom align=left bgColor=#e6efff><FONT size=2>Adjustment for
      employment contract </FONT></TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%" bgColor=#e6efff style="border-right-style: none; border-right-width: medium"><FONT
      size=2>(555</FONT></TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff style="border-style: none; border-width: medium">) </TD></TR>
  <TR vAlign=top>
    <TD vAlign=bottom align=left><FONT size=2>Foreign exchange adjustment
      </FONT></TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%" style="border-right-style: none; border-right-width: medium"><FONT size=2>(95</FONT></TD>
    <TD vAlign=bottom align=left width="2%" style="border-style: none; border-width: medium">) </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    bgColor=#e6efff><FONT size=2>Payments </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-right-style:none; border-right-width:medium" vAlign=bottom align=right
    width="10%" bgColor=#e6efff><FONT size=2>(2,005</FONT></TD>
    <TD style="BORDER-BOTTOM: medium none #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" vAlign=bottom align=left
    width="2%" bgColor=#e6efff>) </TD></TR>
  <TR vAlign=top>
    <TD vAlign=bottom align=left><FONT size=2>Balance, October 5, 2008
    </FONT></TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%" style="border-right-style: none; border-right-width: medium"><FONT size=2>1,993 </FONT></TD>
    <TD vAlign=bottom align=left width="2%" style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD vAlign=bottom align=left bgColor=#e6efff><FONT size=2>Employee
      termination and other benefits </FONT></TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%" bgColor=#e6efff style="border-right-style: none; border-right-width: medium"><FONT
      size=2>2,180 </FONT></TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD vAlign=bottom align=left><FONT size=2>Adjustment for employment
      contract </FONT></TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%" style="border-right-style: none; border-right-width: medium"><FONT size=2>(77</FONT></TD>
    <TD vAlign=bottom align=left width="2%" style="border-style: none; border-width: medium">) </TD></TR>
  <TR vAlign=top>
    <TD vAlign=bottom align=left bgColor=#e6efff><FONT size=2>Foreign exchange
      adjustment </FONT></TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%" bgColor=#e6efff style="border-right-style: none; border-right-width: medium"><FONT
      size=2>(25</FONT></TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff style="border-style: none; border-width: medium">) </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom
      align=left><FONT size=2>Payments </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-right-style:none; border-right-width:medium" vAlign=bottom align=right
    width="10%"><FONT size=2>(2,385</FONT></TD>
    <TD style="BORDER-BOTTOM: medium none #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" vAlign=bottom align=left
    width="2%">) </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    bgColor=#e6efff><FONT size=2>Balance, October 4, 2009 </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="1%" bgColor=#e6efff><FONT size=2>$</FONT></TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-right-style:none; border-right-width:medium" vAlign=bottom align=right
    width="10%" bgColor=#e6efff><FONT size=2>&nbsp;1,686 </FONT></TD>
    <TD style="BORDER-BOTTOM: medium none #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" vAlign=bottom align=left
    width="2%" bgColor=#e6efff>&nbsp;</TD></TR></TABLE>
<P align=justify><B>17. OTHER INFORMATION:</B> </P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0 BCLLIST>

  <TR>
    <TD vAlign=bottom width="5%">(a) </TD>
    <TD valign="bottom">
      <P align=justify>Supplemental cash flow
disclosure:</P></TD></TR></TABLE>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR>
    <TD width="5%" valign="bottom"  >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left valign="bottom">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right
    width="1%" valign="bottom">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right
    width="10%" valign="bottom">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right
    width="2%" valign="bottom">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right
    width="1%" valign="bottom">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right
    width="10%" valign="bottom">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right
    width="2%" valign="bottom">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right
    width="1%" valign="bottom">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-right-style:none; border-right-width:medium" align=right
    width="10%" valign="bottom">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: medium none #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" align=right
    width="2%" valign="bottom">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" valign="bottom" >&nbsp;</TD>
    <TD align=left valign="bottom" style="border-bottom-style: solid; border-bottom-width: 1"><FONT size=2>&nbsp; </FONT></TD>
    <TD align=left width="1%" valign="bottom" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</TD>
    <TD align=right width="10%" valign="bottom" style="border-bottom-style: solid; border-bottom-width: 1"><FONT size=2>2009 </FONT></TD>
    <TD align=left width="2%" valign="bottom" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</TD>
    <TD align=left width="1%" valign="bottom" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</TD>
    <TD align=right width="10%" valign="bottom" style="border-bottom-style: solid; border-bottom-width: 1"><FONT size=2>2008 </FONT></TD>
    <TD align=left width="2%" valign="bottom" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</TD>
    <TD align=left width="1%" valign="bottom" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</TD>
    <TD align=right width="10%" valign="bottom" style="border-right-style: none; border-right-width: medium; border-bottom-style:solid; border-bottom-width:1"><FONT size=2>2007 </FONT></TD>
    <TD align=left width="2%" valign="bottom" style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR>
    <TD width="5%" valign="bottom" >&nbsp;</TD>
    <TD align=left valign="bottom" style="border-top-style: solid; border-top-width: 1">&nbsp;</TD>
    <TD align=right width="1%" valign="bottom" style="border-top-style: solid; border-top-width: 1">&nbsp;</TD>
    <TD align=right width="10%" valign="bottom" style="border-top-style: solid; border-top-width: 1">&nbsp;</TD>
    <TD align=right width="2%" valign="bottom" style="border-top-style: solid; border-top-width: 1">&nbsp;</TD>
    <TD align=right width="1%" valign="bottom" style="border-top-style: solid; border-top-width: 1">&nbsp;</TD>
    <TD align=right width="10%" valign="bottom" style="border-top-style: solid; border-top-width: 1">&nbsp;</TD>
    <TD align=right width="2%" valign="bottom" style="border-top-style: solid; border-top-width: 1">&nbsp;</TD>
    <TD align=right width="1%" valign="bottom" style="border-top-style: solid; border-top-width: 1">&nbsp;</TD>
    <TD align=right width="10%" valign="bottom" style="border-right-style: none; border-right-width: medium; border-top-style:solid; border-top-width:1">&nbsp;</TD>
    <TD align=right width="2%" valign="bottom" style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" valign="bottom" >&nbsp;</TD>
    <TD align=left bgColor=#e6efff valign="bottom"><FONT size=2>Cash paid during the year for:
      </FONT></TD>
    <TD align=left width="1%" bgColor=#e6efff valign="bottom">&nbsp;</TD>
    <TD align=left width="10%" bgColor=#e6efff valign="bottom"><FONT size=2>&nbsp; </FONT></TD>
    <TD align=left width="2%" bgColor=#e6efff valign="bottom">&nbsp;</TD>
    <TD align=left width="1%" bgColor=#e6efff valign="bottom">&nbsp;</TD>
    <TD align=left width="10%" bgColor=#e6efff valign="bottom"><FONT size=2>&nbsp; </FONT></TD>
    <TD align=left width="2%" bgColor=#e6efff valign="bottom">&nbsp;</TD>
    <TD align=left width="1%" bgColor=#e6efff valign="bottom">&nbsp;</TD>
    <TD align=left width="10%" bgColor=#e6efff valign="bottom" style="border-right-style: none; border-right-width: medium"><FONT size=2>&nbsp; </FONT></TD>
    <TD align=left width="2%" bgColor=#e6efff valign="bottom" style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" valign="bottom" >&nbsp;</TD>
    <TD align=left valign="bottom">
    <p style="margin-left: 15pt"><FONT size=2>Interest </FONT></TD>
    <TD align=left width="1%" valign="bottom"><FONT size=2>$</FONT></TD>
    <TD align=right width="10%" valign="bottom"><FONT size=2>&nbsp;2,028 </FONT></TD>
    <TD align=left width="2%" valign="bottom">&nbsp;</TD>
    <TD align=left width="1%" valign="bottom"><FONT size=2>$</FONT></TD>
    <TD align=right width="10%" valign="bottom"><FONT size=2>&nbsp;7,866 </FONT></TD>
    <TD align=left width="2%" valign="bottom">&nbsp;</TD>
    <TD align=left width="1%" valign="bottom"><FONT size=2>$</FONT></TD>
    <TD align=right width="10%" valign="bottom" style="border-right-style: none; border-right-width: medium"><FONT size=2>&nbsp;5,447 </FONT></TD>
    <TD align=left width="2%" valign="bottom" style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" valign="bottom" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      bgColor=#e6efff valign="bottom">
    <p style="margin-left: 15pt">I<FONT size=2>ncome taxes </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    bgColor=#e6efff valign="bottom">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="10%"
    bgColor=#e6efff valign="bottom"><FONT size=2>30,419 </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    bgColor=#e6efff valign="bottom">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    bgColor=#e6efff valign="bottom">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="10%"
    bgColor=#e6efff valign="bottom"><FONT size=2>5,867 </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    bgColor=#e6efff valign="bottom">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    bgColor=#e6efff valign="bottom">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-right-style:none; border-right-width:medium" align=right width="10%"
    bgColor=#e6efff valign="bottom"><FONT size=2>4,780 </FONT></TD>
    <TD style="BORDER-BOTTOM: medium none #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" align=left width="2%"
    bgColor=#e6efff valign="bottom">&nbsp;</TD></TR>
  <TR>
    <TD width="5%" valign="bottom" >&nbsp;</TD>
    <TD align=left bgColor=#ffffff valign="bottom">&nbsp;</TD>
    <TD align=left width="1%" bgColor=#ffffff valign="bottom">&nbsp;</TD>
    <TD align=right width="10%" bgColor=#ffffff valign="bottom">&nbsp;</TD>
    <TD align=left width="2%" bgColor=#ffffff valign="bottom">&nbsp;</TD>
    <TD align=left width="1%" bgColor=#ffffff valign="bottom">&nbsp;</TD>
    <TD align=right width="10%" bgColor=#ffffff valign="bottom">&nbsp;</TD>
    <TD align=left width="2%" bgColor=#ffffff valign="bottom">&nbsp;</TD>
    <TD align=left width="1%" bgColor=#ffffff valign="bottom">&nbsp;</TD>
    <TD align=right width="10%" bgColor=#ffffff valign="bottom" style="border-right-style: none; border-right-width: medium">&nbsp;</TD>
    <TD align=left width="2%" bgColor=#ffffff valign="bottom" style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" valign="bottom" >&nbsp;</TD>
    <TD align=left valign="bottom"><FONT size=2>Balance of non-cash transactions: </FONT></TD>
    <TD align=left width="1%" valign="bottom">&nbsp;</TD>
    <TD align=left width="10%" valign="bottom"><FONT size=2>&nbsp; </FONT></TD>
    <TD align=left width="2%" valign="bottom">&nbsp;</TD>
    <TD align=left width="1%" valign="bottom">&nbsp;</TD>
    <TD align=left width="10%" valign="bottom"><FONT size=2>&nbsp; </FONT></TD>
    <TD align=left width="2%" valign="bottom">&nbsp;</TD>
    <TD align=left width="1%" valign="bottom">&nbsp;</TD>
    <TD align=left width="10%" valign="bottom" style="border-right-style: none; border-right-width: medium"><FONT size=2>&nbsp; </FONT></TD>
    <TD align=left width="2%" valign="bottom" style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" valign="bottom" >&nbsp;</TD>
    <TD align=left bgColor=#e6efff valign="bottom">
    <p style="text-indent: -15pt; margin-left: 30pt"><FONT size=2>Additions to
      property, plant and equipment included in accounts
      payable and accrued liabilities </FONT></TD>
    <TD align=left width="1%" bgColor=#e6efff valign="bottom">&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff valign="bottom"><FONT
      size=2>627 </FONT></TD>
    <TD align=left width="2%" bgColor=#e6efff valign="bottom">&nbsp;</TD>
    <TD align=left width="1%" bgColor=#e6efff valign="bottom">&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff valign="bottom"><FONT
      size=2>1,720 </FONT></TD>
    <TD align=left width="2%" bgColor=#e6efff valign="bottom">&nbsp;</TD>
    <TD align=left width="1%" bgColor=#e6efff valign="bottom">&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff valign="bottom" style="border-right-style: none; border-right-width: medium"><FONT
      size=2>2,566 </FONT></TD>
    <TD align=left width="2%" bgColor=#e6efff valign="bottom" style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" valign="bottom" >&nbsp;</TD>
    <TD align=left valign="bottom">
    <p style="text-indent: -15pt; margin-left: 30pt"><FONT size=2>Proceeds on
    disposal of long-lived assets in other assets </FONT></TD>
    <TD align=left width="1%" valign="bottom">&nbsp;</TD>
    <TD align=right width="10%" valign="bottom"><FONT size=2>808 </FONT></TD>
    <TD align=left width="2%" valign="bottom">&nbsp;</TD>
    <TD align=left width="1%" valign="bottom">&nbsp;</TD>
    <TD align=right width="10%" valign="bottom"><FONT size=2>1,382 </FONT></TD>
    <TD align=left width="2%" valign="bottom">&nbsp;</TD>
    <TD align=left width="1%" valign="bottom">&nbsp;</TD>
    <TD align=right width="10%" valign="bottom" style="border-right-style: none; border-right-width: medium"><FONT size=2>1,855 </FONT></TD>
    <TD align=left width="2%" valign="bottom" style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" valign="bottom" >&nbsp;</TD>
    <TD align=left bgColor=#e6efff valign="bottom">
    <p style="text-indent: -15pt; margin-left: 30pt"><FONT size=2>Proceeds on
      disposal of long-lived assets in accounts receivable </FONT></TD>
    <TD align=left width="1%" bgColor=#e6efff valign="bottom">&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff valign="bottom"><FONT
      size=2>456 </FONT></TD>
    <TD align=left width="2%" bgColor=#e6efff valign="bottom">&nbsp;</TD>
    <TD align=left width="1%" bgColor=#e6efff valign="bottom">&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff valign="bottom"><FONT
      size=2>- </FONT></TD>
    <TD align=left width="2%" bgColor=#e6efff valign="bottom">&nbsp;</TD>
    <TD align=left width="1%" bgColor=#e6efff valign="bottom">&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff valign="bottom" style="border-right-style: none; border-right-width: medium"><FONT
      size=2>1,050 </FONT></TD>
    <TD align=left width="2%" bgColor=#e6efff valign="bottom" style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" valign="bottom" >&nbsp;</TD>
    <TD align=left valign="bottom">
    <p style="text-indent: -15pt; margin-left: 30pt"><FONT size=2>Business acquisition in accounts
      payable and accrued liabilities </FONT></TD>
    <TD align=left width="1%" valign="bottom">&nbsp;</TD>
    <TD align=right width="10%" valign="bottom"><FONT size=2>- </FONT></TD>
    <TD align=left width="2%" valign="bottom">&nbsp;</TD>
    <TD align=left width="1%" valign="bottom">&nbsp;</TD>
    <TD align=right width="10%" valign="bottom"><FONT size=2>1,196
    </FONT></TD>
    <TD align=left width="2%" valign="bottom">&nbsp;</TD>
    <TD align=left width="1%" valign="bottom">&nbsp;</TD>
    <TD align=right width="10%" valign="bottom" style="border-right-style: none; border-right-width: medium"><FONT size=2>- </FONT></TD>
    <TD align=left width="2%" valign="bottom" style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" valign="bottom" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left
      bgColor=#e6efff valign="bottom">
    <p style="text-indent: -15pt; margin-left: 30pt"><FONT size=2>Reversal of valuation allowance
      on acquired future tax assets </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
    bgColor=#e6efff valign="bottom">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right width="10%"
    bgColor=#e6efff valign="bottom"><FONT size=2>- </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="2%"
    bgColor=#e6efff valign="bottom">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
    bgColor=#e6efff valign="bottom">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right width="10%"
    bgColor=#e6efff valign="bottom"><FONT size=2>- </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="2%"
    bgColor=#e6efff valign="bottom">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
    bgColor=#e6efff valign="bottom">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-right-style:none; border-right-width:medium" align=right width="10%"
    bgColor=#e6efff valign="bottom"><FONT size=2>7,340 </FONT></TD>
    <TD style="BORDER-BOTTOM: medium none #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" align=left width="2%"
    bgColor=#e6efff valign="bottom">&nbsp;</TD></TR></TABLE>
<P align=right>GILDAN 2009 REPORT TO SHAREHOLDERS P.70</P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<!--$$/page=-->
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD align=left valign="bottom">
    <img border="0" src="gildan1.jpg" width="92" height="30"></TD>
    <TD align=right width="50%" valign="bottom">NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
  </TD></TR></TABLE>
<P align=justify><B>17. OTHER INFORMATION (continued): </B></P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0 BCLLIST>

  <TR>
    <TD vAlign=bottom width="5%">(a) </TD>
    <TD valign="bottom">
      <P align=justify>Supplemental cash flow disclosure
  (continued):</P></TD></TR></TABLE>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR>
    <TD width="5%" valign="bottom" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=right
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=right
    width="10%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=right
    width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=right
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=right
    width="10%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=right
    width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=right
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-right-style:none; border-right-width:medium" vAlign=bottom align=right
    width="10%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: medium none #000000; " vAlign=bottom align=right
    width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" valign="bottom">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom
      align=left><FONT size=2>&nbsp; </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="10%"><FONT size=2>2009 </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="10%"><FONT size=2>2008 </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-right-style:none; border-right-width:medium" vAlign=bottom align=right
    width="10%"><FONT size=2>2007 </FONT></TD>
    <TD style="BORDER-BOTTOM: medium none #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" vAlign=bottom align=left
    width="2%">&nbsp;</TD></TR>
  <TR>
    <TD width="5%" valign="bottom">&nbsp;</TD>
    <TD vAlign=bottom align=left>&nbsp;</TD>
    <TD vAlign=bottom align=right width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%" style="border-right-style: none; border-right-width: medium">&nbsp;</TD>
    <TD vAlign=bottom align=right width="2%" style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" valign="bottom">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    bgColor=#e6efff>
    <p style="text-indent: -15pt; margin-left: 15pt"><FONT size=2>Non-cash ascribed value credited to share
      capital from issuance of Treasury RSUs </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="10%" bgColor=#e6efff><FONT size=2>2,759
    </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="10%" bgColor=#e6efff><FONT size=2>190
</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-right-style:none; border-right-width:medium" vAlign=bottom align=right
    width="10%" bgColor=#e6efff><FONT size=2>226
</FONT></TD>
    <TD style="BORDER-BOTTOM: medium none #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" vAlign=bottom align=left
    width="2%" bgColor=#e6efff>&nbsp;</TD></TR>
  <TR>
    <TD width="5%" valign="bottom">&nbsp;</TD>
    <TD vAlign=bottom align=left bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%" bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%" bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%" bgColor=#ffffff style="border-right-style: none; border-right-width: medium">&nbsp;</TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#ffffff style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" valign="bottom">&nbsp;</TD>
    <TD vAlign=bottom align=left bgColor=#ffffff><FONT size=2>Cash and cash
      equivalents consist of: </FONT></TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="10%" bgColor=#ffffff><FONT
      size=2>&nbsp; </FONT></TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="10%" bgColor=#ffffff><FONT
      size=2>&nbsp; </FONT></TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="10%" bgColor=#ffffff style="border-right-style: none; border-right-width: medium"><FONT
      size=2>&nbsp; </FONT></TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#ffffff style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" valign="bottom">&nbsp;</TD>
    <TD vAlign=bottom align=left bgColor=#e6efff>
    <p style="text-indent: -15pt; margin-left: 30pt"><FONT size=2>Cash balances with banks </FONT></TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff><FONT
      size=2>$</FONT></TD>
    <TD vAlign=bottom align=right width="10%" bgColor=#e6efff><FONT
      size=2>&nbsp;92,608 </FONT></TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff><FONT
      size=2>$</FONT></TD>
    <TD vAlign=bottom align=right width="10%" bgColor=#e6efff><FONT
      size=2>&nbsp;8,068 </FONT></TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff><FONT
      size=2>$</FONT></TD>
    <TD vAlign=bottom align=right width="10%" bgColor=#e6efff style="border-right-style: none; border-right-width: medium"><FONT
      size=2>&nbsp;9,250 </FONT></TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" valign="bottom">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom
      align=left>
    <p style="text-indent: -15pt; margin-left: 30pt"><FONT size=2>Short-term investments, bearing
      interest at rates up to 0.12% at October 4, 2009 and
      up to 2.22% at October 5, 2008 </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="10%"><FONT size=2>7,124
      </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="10%"><FONT size=2>4,289
      </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-right-style:none; border-right-width:medium" vAlign=bottom align=right
    width="10%"><FONT size=2>-
    </FONT></TD>
    <TD style="BORDER-BOTTOM: medium none #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" vAlign=bottom align=left
    width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" valign="bottom">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    bgColor=#e6efff><FONT size=2>&nbsp; </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="1%" bgColor=#e6efff><FONT size=2>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=right
    width="10%" bgColor=#e6efff><FONT size=2>&nbsp;99,732 </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="1%" bgColor=#e6efff><FONT size=2>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=right
    width="10%" bgColor=#e6efff><FONT size=2>&nbsp;12,357 </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="1%" bgColor=#e6efff><FONT size=2>$</FONT></TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-right-style:none; border-right-width:medium" vAlign=bottom align=right
    width="10%" bgColor=#e6efff><FONT size=2>&nbsp;9,250 </FONT></TD>
    <TD style="BORDER-BOTTOM: medium none #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" vAlign=bottom align=left
    width="2%" bgColor=#e6efff>&nbsp;</TD></TR></TABLE>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0 BCLLIST>

  <TR>
    <TD vAlign=bottom width="5%">&nbsp;</TD>
    <TD valign="bottom">
      &nbsp;</TD></TR>

  <TR>
    <TD vAlign=bottom width="5%">(b) </TD>
    <TD valign="bottom">
      <P align=justify>Depreciation and
amortization:</P></TD></TR></TABLE>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR>
    <TD width="5%" valign="bottom"  >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=right
    width="1%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=right
    width="10%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=right
    width="2%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=right
    width="1%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=right
    width="10%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=right
    width="2%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=right
    width="1%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-right-style:none; border-right-width:medium" vAlign=bottom align=right
    width="10%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: medium none #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" vAlign=bottom align=right
    width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" valign="bottom" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom
      align=left><FONT size=2>&nbsp; </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="10%"><FONT size=2>2009 </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="10%"><FONT size=2>2008 </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-right-style:none; border-right-width:medium" vAlign=bottom align=right
    width="10%"><FONT size=2>2007 </FONT></TD>
    <TD style="BORDER-BOTTOM: medium none #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" vAlign=bottom align=left
    width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" valign="bottom" >&nbsp;</TD>
    <TD vAlign=bottom align=left>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="10%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%"><FONT size=2>(recast note 1(b)</FONT></TD>
    <TD vAlign=bottom align=left width="2%" >)</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%" style="border-right-style: none; border-right-width: medium"><FONT size=2>(recast note 1(b)</FONT></TD>
    <TD vAlign=bottom align=left width="2%" style="border-style: none; border-width: medium" >)</TD></TR>
  <TR>
    <TD width="5%" valign="bottom" >&nbsp;</TD>
    <TD vAlign=bottom align=left >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="10%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="2%" style="border-style: none; border-width: medium" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" valign="bottom" >&nbsp;</TD>
    <TD vAlign=bottom align=left bgColor=#e6efff>
    <p style="text-indent: -15pt; margin-left: 15pt"><FONT size=2>Depreciation and
      amortization of property, plant and equipment and
      intangible assets </FONT></TD>
    <TD vAlign=bottom align=left width="1%"
      bgColor=#e6efff><FONT size=2>$</FONT></TD>
    <TD vAlign=bottom align=right width="10%" bgColor=#e6efff><FONT
      size=2>&nbsp;65,407 </FONT></TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
      bgColor=#e6efff><FONT size=2>$</FONT></TD>
    <TD vAlign=bottom align=right width="10%" bgColor=#e6efff><FONT
      size=2>&nbsp;57,135 </FONT></TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
      bgColor=#e6efff><FONT size=2>$</FONT></TD>
    <TD vAlign=bottom align=right width="10%" bgColor=#e6efff><FONT
      size=2>&nbsp;37,268 </FONT></TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" valign="bottom" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom
      align=left>
    <p style="text-indent: -15pt; margin-left: 15pt"><FONT size=2>Adjustment for the variation of depreciation of
      property, plant and equipment included in inventories
      at the beginning and end of the period </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="10%"><FONT
      size=2>(2,437</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%" >) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="10%"><FONT
      size=2>(957</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%" >) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="10%"><FONT
      size=2>(1,837</FONT></TD>
    <TD style="BORDER-BOTTOM: medium none #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" vAlign=bottom align=left
    width="2%" >) </TD></TR>
  <TR vAlign=top>
    <TD width="5%" valign="bottom" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    bgColor=#e6efff>
    <p style="text-indent: -15pt; margin-left: 15pt"><FONT size=2>Depreciation and amortization included in the
      consolidated statements of earnings and comprehensive
      income </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%"  bgColor=#e6efff><FONT size=2>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="10%" bgColor=#e6efff><FONT size=2>&nbsp;62,970 </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%"  bgColor=#e6efff><FONT size=2>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="10%" bgColor=#e6efff><FONT size=2>&nbsp;56,178 </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%"  bgColor=#e6efff><FONT size=2>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="10%" bgColor=#e6efff><FONT size=2>&nbsp;35,431 </FONT></TD>
    <TD style="BORDER-BOTTOM: medium none #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" vAlign=bottom align=left
    width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR>
    <TD width="5%" valign="bottom" >&nbsp;</TD>
    <TD vAlign=bottom align=left  bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%"
    bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%"
    bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%"
    bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#ffffff style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" valign="bottom" >&nbsp;</TD>
    <TD vAlign=bottom align=left bgColor=#ffffff><FONT size=2>Consists of:
      </FONT></TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="10%" bgColor=#ffffff><FONT
      size=2>&nbsp; </FONT></TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="10%" bgColor=#ffffff><FONT
      size=2>&nbsp; </FONT></TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="10%" bgColor=#ffffff><FONT
      size=2>&nbsp; </FONT></TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#ffffff style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" valign="bottom" >&nbsp;</TD>
    <TD vAlign=bottom align=left bgColor=#e6efff>
    <p style="margin-left: 15pt"><FONT size=2>Depreciation of property, plant and equipment </FONT></TD>
    <TD vAlign=bottom align=left width="1%"
      bgColor=#e6efff><FONT size=2>$</FONT></TD>
    <TD vAlign=bottom align=right width="10%" bgColor=#e6efff><FONT
      size=2>&nbsp;59,571 </FONT></TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
      bgColor=#e6efff><FONT size=2>$</FONT></TD>
    <TD vAlign=bottom align=right width="10%" bgColor=#e6efff><FONT
      size=2>&nbsp;52,887 </FONT></TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
      bgColor=#e6efff><FONT size=2>$</FONT></TD>
    <TD vAlign=bottom align=right width="10%" bgColor=#e6efff><FONT
      size=2>&nbsp;35,053 </FONT></TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" valign="bottom" >&nbsp;</TD>
    <TD vAlign=bottom align=left>
    <p style="margin-left: 15pt"><FONT size=2>Amortization of intangible assets </FONT></TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%"><FONT size=2>3,197 </FONT></TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%"><FONT size=2>3,070 </FONT></TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%"><FONT size=2>150 </FONT></TD>
    <TD vAlign=bottom align=left width="2%" style="border-style: none; border-width: medium" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" valign="bottom" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    bgColor=#e6efff>
    <p style="margin-left: 15pt"><FONT size=2>Amortization of deferred financing
    costs and other </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="10%" bgColor=#e6efff><FONT size=2>202 </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="10%" bgColor=#e6efff><FONT size=2>221 </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="10%" bgColor=#e6efff><FONT size=2>228 </FONT></TD>
    <TD style="BORDER-BOTTOM: medium none #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" vAlign=bottom align=left
    width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" valign="bottom" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom
      align=left>
    <p style="text-indent: -15pt; margin-left: 15pt"><FONT size=2>Depreciation and amortization included in the
      consolidated statements of earnings and comprehensive
      income </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="1%" ><FONT size=2>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=right
    width="10%"><FONT size=2>&nbsp;62,970 </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="2%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="1%" ><FONT size=2>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=right
    width="10%"><FONT size=2>&nbsp;56,178 </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="2%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="1%" ><FONT size=2>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=right
    width="10%"><FONT size=2>&nbsp;35,431 </FONT></TD>
    <TD style="BORDER-BOTTOM: medium none #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" vAlign=bottom align=left
    width="2%" >&nbsp;</TD></TR></TABLE>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0 BCLLIST>

  <TR>
    <TD vAlign=bottom width="5%">&nbsp;</TD>
    <TD valign="bottom">
      &nbsp;</TD></TR>

  <TR>
    <TD vAlign=bottom width="5%">(c) </TD>
    <TD valign="bottom">
      <P align=justify>The following items were included in the determination of
      the Company&#146;s net earnings:</P></TD></TR></TABLE>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR>
    <TD width="5%" valign="bottom"  >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=right
    width="1%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=right
    width="10%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=right
    width="2%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=right
    width="1%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=right
    width="10%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=right
    width="2%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="1%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="10%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: medium none #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" vAlign=bottom align=left
    width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" valign="bottom" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom
      align=left><FONT size=2>&nbsp; </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="10%"><FONT size=2>2009 </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="10%"><FONT size=2>2008 </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="10%"><FONT size=2>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;
      &nbsp;2007 </FONT></TD>
    <TD style="BORDER-BOTTOM: medium none #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" vAlign=bottom align=left
    width="2%" >&nbsp;</TD></TR>
  <TR>
    <TD width="5%" valign="bottom" >&nbsp;</TD>
    <TD vAlign=bottom align=left >&nbsp;</TD>
    <TD vAlign=bottom align=right width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="10%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="2%" style="border-style: none; border-width: medium" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" valign="bottom" >&nbsp;</TD>
    <TD vAlign=bottom align=left bgColor=#e6efff><FONT size=2>Defined
      contribution expense </FONT></TD>
    <TD vAlign=bottom align=left width="1%"
      bgColor=#e6efff><FONT size=2>$</FONT></TD>
    <TD vAlign=bottom align=right width="10%" bgColor=#e6efff><FONT
      size=2>&nbsp;1,447 </FONT></TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
      bgColor=#e6efff><FONT size=2>$</FONT></TD>
    <TD vAlign=bottom align=right width="10%" bgColor=#e6efff><FONT
      size=2>&nbsp;1,827 </FONT></TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
      bgColor=#e6efff><FONT size=2>$</FONT></TD>
    <TD vAlign=bottom align=right width="10%" bgColor=#e6efff><FONT
      size=2>&nbsp;1,360 </FONT></TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" valign="bottom" >&nbsp;</TD>
    <TD vAlign=bottom align=left><FONT size=2>Research and development tax
      credits </FONT></TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%"><FONT size=2>- </FONT></TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%"><FONT size=2>- </FONT></TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%"><FONT size=2>(646</FONT></TD>
    <TD vAlign=bottom align=left width="2%" style="border-style: none; border-width: medium" >) </TD></TR>
  <TR vAlign=top>
    <TD width="5%" valign="bottom" >&nbsp;</TD>
    <TD vAlign=bottom align=left bgColor=#e6efff><FONT size=2>Bad debt expense
      (recovery) </FONT></TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%" bgColor=#e6efff>5,995</TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%" bgColor=#e6efff><FONT
      size=2>4,543 </FONT></TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%" bgColor=#e6efff><FONT
      size=2>(1,300</FONT></TD>
    <TD vAlign=bottom align=left width="2%"  bgColor=#e6efff style="border-style: none; border-width: medium">)
  </TD></TR>
  <TR>
    <TD width="5%" valign="bottom" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=right
    width="1%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=right
    width="10%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=right
    width="2%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=right
    width="1%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=right
    width="10%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=right
    width="2%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=right
    width="1%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=right
    width="10%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: medium none #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" vAlign=bottom align=right
    width="2%" >&nbsp;</TD></TR></TABLE>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0 BCLLIST>

  <TR>
    <TD vAlign=top width="5%">&nbsp;</TD>
    <TD valign="bottom">
      &nbsp;</TD></TR>

  <TR>
    <TD vAlign=top width="5%">(d) </TD>
    <TD valign="bottom">
      <P align=justify>During fiscal 2009, the Company expensed $7.1 million
      (2008 - $6.1 million; 2007 - $4.7 million) in cost of sales, representing
      management&#146;s best estimate of the cost of statutory severance and
      pre-notice benefit obligations accrued for active employees located in the
      Caribbean Basin and Central America. As at October 4, 2009, an amount of
      $9.5 million (2008 - $6.9 million) has been included in accounts payable
      and accrued liabilities.</P></TD></TR></TABLE>
<P align=right>GILDAN 2009 REPORT TO SHAREHOLDERS P.71</P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<!--$$/page=--><A name=page_13></A>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0 height="45">

  <TR vAlign=top>
    <TD align=left height="30" valign="bottom">
    <img border="0" src="gildan1.jpg" width="92" height="30"></TD>
    <TD align=right width="50%" height="30" valign="bottom">NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
  </TD></TR></TABLE>
<P align=justify><B>18. RELATED PARTY TRANSACTIONS:</B> </P>
<P align=justify style="margin-bottom: 0">The Company has transactions with Frontier Spinning Mills,
Inc., which manages the operations of CanAm. These transactions are in the
normal course of operations and are measured at the exchange amount, which is
the amount of consideration established and agreed to by the related parties.
The following is a summary of the related party transactions and balances owed:
</P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=right
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=right
    width="10%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=right
    width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=right
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=right
    width="10%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=right
    width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=right
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=right
    width="10%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: medium none #000000; " vAlign=bottom align=right
    width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom
      align=left><FONT size=2>&nbsp; </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="10%"><FONT size=2>2009 </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="10%"><FONT size=2>2008 </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-right-style:none; border-right-width:medium" vAlign=bottom align=right
    width="10%"><FONT size=2>2007 </FONT></TD>
    <TD style="BORDER-BOTTOM: medium none #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" vAlign=bottom align=left
    width="2%">&nbsp;</TD></TR>
  <TR>
    <TD vAlign=bottom align=left>&nbsp;</TD>
    <TD vAlign=bottom align=right width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%" style="border-right-style: none; border-right-width: medium">&nbsp;</TD>
    <TD vAlign=bottom align=right width="2%" style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD vAlign=bottom align=left bgColor=#e6efff><FONT size=2>Transactions:
      </FONT></TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="10%" bgColor=#e6efff><FONT
      size=2>&nbsp; </FONT></TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="10%" bgColor=#e6efff><FONT
      size=2>&nbsp; </FONT></TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="10%" bgColor=#e6efff style="border-right-style: none; border-right-width: medium"><FONT
      size=2>&nbsp; </FONT></TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD vAlign=bottom align=left><FONT size=2>&nbsp; &nbsp; &nbsp;Yarn
      purchases </FONT></TD>
    <TD vAlign=bottom align=left width="1%"><FONT size=2>$</FONT></TD>
    <TD vAlign=bottom align=right width="10%"><FONT size=2>&nbsp;149,754
      </FONT></TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"><FONT size=2>$</FONT></TD>
    <TD vAlign=bottom align=right width="10%"><FONT size=2>&nbsp;138,642
      </FONT></TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"><FONT size=2>$</FONT></TD>
    <TD vAlign=bottom align=right width="10%" style="border-right-style: none; border-right-width: medium"><FONT size=2>&nbsp;103,902
      </FONT></TD>
    <TD vAlign=bottom align=left width="2%" style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD vAlign=bottom align=left bgColor=#e6efff><FONT size=2>&nbsp; &nbsp;
      &nbsp;Management fee expense </FONT></TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%" bgColor=#e6efff><FONT size=2>750
      </FONT></TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%" bgColor=#e6efff><FONT size=2>750
      </FONT></TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%" bgColor=#e6efff style="border-right-style: none; border-right-width: medium"><FONT size=2>750
      </FONT></TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR>
    <TD vAlign=bottom align=left bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%" bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%" bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%" bgColor=#ffffff style="border-right-style: none; border-right-width: medium">&nbsp;</TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#ffffff style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD vAlign=bottom align=left bgColor=#ffffff><FONT size=2>Balances
      outstanding: </FONT></TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="10%" bgColor=#ffffff><FONT
      size=2>&nbsp; </FONT></TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="10%" bgColor=#ffffff><FONT
      size=2>&nbsp; </FONT></TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="10%" bgColor=#ffffff style="border-right-style: none; border-right-width: medium"><FONT
      size=2>&nbsp; </FONT></TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#ffffff style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    bgColor=#e6efff><FONT size=2>&nbsp; &nbsp; &nbsp;Accounts payable and
      accrued liabilities </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=right
    width="10%" bgColor=#e6efff><FONT size=2>22,129 </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=right
    width="10%" bgColor=#e6efff><FONT size=2>32,445 </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-right-style:none; border-right-width:medium" vAlign=bottom align=right
    width="10%" bgColor=#e6efff><FONT size=2>20,130 </FONT></TD>
    <TD style="BORDER-BOTTOM: medium none #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" vAlign=bottom align=left
    width="2%" bgColor=#e6efff>&nbsp;</TD></TR></TABLE>
<P align=justify><B>19. FINANCIAL INSTRUMENTS:</B> </P>
<P align=justify>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 &#147;Financial Risk Management&#148; of the Management&#146;s
Discussion and Analysis of the Company&#146;s operations, performance and financial
condition as at October 4, 2009, which is included in the Report to Shareholders
along with these consolidated financial statements. Accordingly, these
disclosures are incorporated into these consolidated financial statements by
cross-reference. </P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0 BCLLIST>

  <TR>
    <TD vAlign=bottom width="5%">(a) </TD>
    <TD valign="bottom">
      <P align=justify>Financial instruments &#150; carrying values and fair
      values:</P></TD></TR>
  <TR>
    <TD width="5%" valign="bottom">&nbsp;</TD>
    <TD valign="bottom">&nbsp;</TD></TR>
  <TR>
    <TD width="5%" valign="bottom"></TD>
    <TD valign="bottom">
      <P align=justify>The fair values of financial assets and liabilities,
      together with the carrying amounts included in the consolidated balance
      sheets, are as follows:</P></TD></TR></TABLE>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR>
    <TD width="5%" valign="bottom"  >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="1%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="10%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="2%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=right
    width="1%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=right
    width="10%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=right
    width="2%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="1%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="10%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: medium none #000000; " vAlign=bottom align=left
    width="2%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=right
    width="1%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-right-style:none; border-right-width:medium" vAlign=bottom align=right
    width="10%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: medium none #000000; " vAlign=bottom align=right
    width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" valign="bottom" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom
      align=left><FONT size=2>&nbsp; </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="10%"><FONT size=2>&nbsp; </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="10%"><FONT size=2>2009 </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-right-style:none; border-right-width:medium" vAlign=bottom align=left
    width="10%"><FONT size=2>&nbsp; </FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-top-style:solid; border-top-width:2" vAlign=bottom align=left
    width="2%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:none; border-left-width:medium" vAlign=bottom align=left
    width="1%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-right-style:none; border-right-width:medium" vAlign=bottom align=right
    width="10%"><FONT size=2>2008 </FONT></TD>
    <TD style="BORDER-BOTTOM: medium none #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" vAlign=bottom align=left
    width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" valign="bottom" >&nbsp;</TD>
    <TD vAlign=bottom align=left><FONT size=2>&nbsp; </FONT></TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%"><FONT size=2>Carrying </FONT></TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="10%"><FONT size=2>&nbsp; </FONT></TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%" style="border-right-style: none; border-right-width: medium"><FONT size=2>Carrying </FONT></TD>
    <TD vAlign=bottom align=left width="2%" style="border-top-style: none; border-top-width: medium; border-bottom-style: none; border-bottom-width: medium" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" style="border-left-style: none; border-left-width: medium" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="10%" style="border-right-style: none; border-right-width: medium"><FONT size=2>&nbsp; </FONT></TD>
    <TD vAlign=bottom align=left width="2%" style="border-style: none; border-width: medium" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" valign="bottom" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom
      align=left><FONT size=2>&nbsp; </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="10%"><FONT size=2>amount </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="10%"><FONT size=2>Fair value </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-right-style:none; border-right-width:medium" vAlign=bottom align=right
    width="10%"><FONT size=2>amount </FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-top-style:none; border-top-width:medium" vAlign=bottom align=left
    width="2%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:none; border-left-width:medium" vAlign=bottom align=left
    width="1%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-right-style:none; border-right-width:medium" vAlign=bottom align=right
    width="10%"><FONT size=2>Fair value </FONT></TD>
    <TD style="BORDER-BOTTOM: medium none #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" vAlign=bottom align=left
    width="2%" >&nbsp;</TD></TR>
  <TR>
    <TD width="5%" valign="bottom" >&nbsp;</TD>
    <TD vAlign=bottom align=left >&nbsp;</TD>
    <TD vAlign=bottom align=right width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%" style="border-right-style: none; border-right-width: medium" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="2%" style="border-bottom-style: none; border-bottom-width: medium" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="1%" style="border-left-style: none; border-left-width: medium" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%" style="border-right-style: none; border-right-width: medium" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="2%" style="border-style: none; border-width: medium" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" valign="bottom" >&nbsp;</TD>
    <TD vAlign=bottom align=left bgColor=#e6efff><FONT size=2><B>Financial
      assets</B> </FONT></TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="10%" bgColor=#e6efff><FONT
      size=2>&nbsp; </FONT></TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="10%" bgColor=#e6efff><FONT
      size=2>&nbsp; </FONT></TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="10%" bgColor=#e6efff style="border-right-style: none; border-right-width: medium"><FONT
      size=2>&nbsp; </FONT></TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff style="border-top-style: none; border-top-width: medium; border-bottom-style: none; border-bottom-width: medium">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff style="border-left-style: none; border-left-width: medium">&nbsp;</TD>
    <TD vAlign=bottom align=left width="10%" bgColor=#e6efff style="border-right-style: none; border-right-width: medium"><FONT
      size=2>&nbsp; </FONT></TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" valign="bottom" >&nbsp;</TD>
    <TD vAlign=bottom align=left>
    <p style="text-indent: -15pt; margin-left: 15pt"><FONT size=2>Held-for-trading financial
      assets: </FONT></TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="10%"><FONT size=2>&nbsp; </FONT></TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="10%"><FONT size=2>&nbsp; </FONT></TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="10%" style="border-right-style: none; border-right-width: medium"><FONT size=2>&nbsp; </FONT></TD>
    <TD vAlign=bottom align=left width="2%" style="border-top-style: none; border-top-width: medium; border-bottom-style: none; border-bottom-width: medium" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" style="border-left-style: none; border-left-width: medium" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="10%" style="border-right-style: none; border-right-width: medium"><FONT size=2>&nbsp; </FONT></TD>
    <TD vAlign=bottom align=left width="2%" style="border-style: none; border-width: medium" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" valign="bottom" >&nbsp;</TD>
    <TD vAlign=bottom align=left bgColor=#e6efff>
    <p style="text-indent: -15pt; margin-left: 30pt"><FONT size=2>Cash and cash equivalents </FONT></TD>
    <TD vAlign=bottom align=left width="1%"
      bgColor=#e6efff><FONT size=2>$</FONT></TD>
    <TD vAlign=bottom align=right width="10%" bgColor=#e6efff><FONT
      size=2>&nbsp;99,732 </FONT></TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
      bgColor=#e6efff><FONT size=2>$</FONT></TD>
    <TD vAlign=bottom align=right width="10%" bgColor=#e6efff><FONT
      size=2>&nbsp;99,732 </FONT></TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
      bgColor=#e6efff><FONT size=2>$</FONT></TD>
    <TD vAlign=bottom align=right width="10%" bgColor=#e6efff style="border-right-style: none; border-right-width: medium"><FONT
      size=2>&nbsp;12,357 </FONT></TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff style="border-top-style: none; border-top-width: medium; border-bottom-style: none; border-bottom-width: medium">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
      bgColor=#e6efff style="border-left-style: none; border-left-width: medium"><FONT size=2>$</FONT></TD>
    <TD vAlign=bottom align=right width="10%" bgColor=#e6efff style="border-right-style: none; border-right-width: medium"><FONT
      size=2>&nbsp;12,357 </FONT></TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" valign="bottom" >&nbsp;</TD>
    <TD vAlign=bottom align=left>
    <p style="text-indent: -15pt; margin-left: 15pt"><FONT size=2>Loans and receivables:
</FONT></TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="10%"><FONT size=2>&nbsp; </FONT></TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="10%"><FONT size=2>&nbsp; </FONT></TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="10%" style="border-right-style: none; border-right-width: medium"><FONT size=2>&nbsp; </FONT></TD>
    <TD vAlign=bottom align=left width="2%" style="border-top-style: none; border-top-width: medium" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" style="border-left-style: none; border-left-width: medium" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="10%" style="border-right-style: none; border-right-width: medium"><FONT size=2>&nbsp; </FONT></TD>
    <TD vAlign=bottom align=left width="2%" style="border-style: none; border-width: medium" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" valign="bottom" >&nbsp;</TD>
    <TD vAlign=bottom align=left bgColor=#e6efff>
    <p style="text-indent: -15pt; margin-left: 30pt"><FONT size=2>Accounts
    receivable - trade </FONT></TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%" bgColor=#e6efff><FONT
      size=2>159,645 </FONT></TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%" bgColor=#e6efff><FONT
      size=2>159,645 </FONT></TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%" bgColor=#e6efff><FONT
      size=2>206,276 </FONT></TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff style="border-top-style: none; border-top-width: medium">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%" bgColor=#e6efff style="border-right-style: none; border-right-width: medium"><FONT
      size=2>206,276 </FONT></TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" valign="bottom" >&nbsp;</TD>
    <TD vAlign=bottom align=left>
    <p style="text-indent: -15pt; margin-left: 30pt"><FONT size=2>Accounts
    receivable - other </FONT></TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%"><FONT size=2>7,117 </FONT></TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%"><FONT size=2>7,117 </FONT></TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%"><FONT size=2>9,557 </FONT></TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%" style="border-right-style: none; border-right-width: medium"><FONT size=2>9,557 </FONT></TD>
    <TD vAlign=bottom align=left width="2%" style="border-style: none; border-width: medium" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" valign="bottom" >&nbsp;</TD>
    <TD vAlign=bottom align=left bgColor=#e6efff>
    <p style="text-indent: -15pt; margin-left: 30pt"><FONT size=2>Long-term non-trade receivable included in other
      assets </FONT></TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%" bgColor=#e6efff><FONT size=2>1,254 </FONT></TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%" bgColor=#e6efff><FONT size=2>1,254 </FONT></TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%" bgColor=#e6efff><FONT size=2>1,748 </FONT></TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%" bgColor=#e6efff style="border-right-style: none; border-right-width: medium"><FONT size=2>1,748 </FONT></TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" valign="bottom" >&nbsp;</TD>
    <TD vAlign=bottom align=left>
    <p style="text-indent: -15pt; margin-left: 30pt"><FONT size=2>Restricted cash
      related to Prewett acquisition included in other
      assets </FONT></TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%"><FONT
      size=2>6,042 </FONT></TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%"><FONT
      size=2>6,042 </FONT></TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%"><FONT
      size=2>10,000 </FONT></TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%" style="border-right-style: none; border-right-width: medium"><FONT
      size=2>10,000 </FONT></TD>
    <TD vAlign=bottom align=left width="2%" style="border-style: none; border-width: medium" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" valign="bottom" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    bgColor=#e6efff>
    <p style="text-indent: -15pt; margin-left: 15pt"><FONT size=2>Forward foreign exchange contracts included in other assets
      </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=right
    width="10%" bgColor=#e6efff><FONT size=2>- </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=right
    width="10%" bgColor=#e6efff><FONT size=2>- </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=right
    width="10%" bgColor=#e6efff><FONT size=2>929
</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-right-style:none; border-right-width:medium" vAlign=bottom align=right
    width="10%" bgColor=#e6efff><FONT size=2>929
</FONT></TD>
    <TD style="BORDER-BOTTOM: medium none #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" vAlign=bottom align=left
    width="2%"  bgColor=#e6efff>&nbsp;</TD></TR></TABLE>
<P align=right>GILDAN 2009 REPORT TO SHAREHOLDERS P.72</P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<!--$$/page=-->
<DIV align=left>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD align=left valign="bottom">
    <img border="0" src="gildan1.jpg" width="92" height="30"></TD>
    <TD align=right width="50%" valign="bottom">NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
  </TD></TR></TABLE></DIV>
<P align=justify><B>19. FINANCIAL INSTRUMENTS (continued): </B></P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0 BCLLIST>

  <TR>
    <TD vAlign=bottom width="5%">(a) </TD>
    <TD valign="bottom">
      <P align=justify>Financial instruments &#150; carrying values and fair values
      (continued):</P></TD></TR></TABLE>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR>
    <TD width="5%" valign="bottom" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="10%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=right
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=right
    width="10%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=right
    width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="10%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=right
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=right
    width="10%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: medium none #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" vAlign=bottom align=right
    width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" valign="bottom">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom
      align=left><FONT size=2>&nbsp; </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="10%"><FONT size=2>&nbsp; </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="10%"><FONT size=2>2009 </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="10%"><FONT size=2>&nbsp; </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="10%"><FONT size=2>2008 </FONT></TD>
    <TD style="BORDER-BOTTOM: medium none #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" vAlign=bottom align=left
    width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" valign="bottom">&nbsp;</TD>
    <TD vAlign=bottom align=left><FONT size=2>&nbsp; </FONT></TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%"><FONT size=2>Carrying </FONT></TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="10%"><FONT size=2>&nbsp; </FONT></TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%"><FONT size=2>Carrying </FONT></TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="10%"><FONT size=2>&nbsp; </FONT></TD>
    <TD vAlign=bottom align=left width="2%" style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" valign="bottom">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom
      align=left><FONT size=2>&nbsp; </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="10%"><FONT size=2>amount </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="10%"><FONT size=2>Fair value </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="10%"><FONT size=2>amount </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="10%"><FONT size=2>Fair value </FONT></TD>
    <TD style="BORDER-BOTTOM: medium none #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" vAlign=bottom align=left
    width="2%">&nbsp;</TD></TR>
  <TR>
    <TD width="5%" valign="bottom">&nbsp;</TD>
    <TD vAlign=bottom align=left>&nbsp;</TD>
    <TD vAlign=bottom align=right width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="2%" style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" valign="bottom">&nbsp;</TD>
    <TD vAlign=bottom align=left bgColor=#e6efff><FONT size=2><B>Financial
      liabilities</B> </FONT></TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="10%" bgColor=#e6efff><FONT
      size=2>&nbsp; </FONT></TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="10%" bgColor=#e6efff><FONT
      size=2>&nbsp; </FONT></TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="10%" bgColor=#e6efff><FONT
      size=2>&nbsp; </FONT></TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="10%" bgColor=#e6efff><FONT
      size=2>&nbsp; </FONT></TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" valign="bottom">&nbsp;</TD>
    <TD vAlign=bottom align=left><FONT size=2>Other financial liabilities:
      </FONT></TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="10%"><FONT size=2>&nbsp; </FONT></TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="10%"><FONT size=2>&nbsp; </FONT></TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="10%"><FONT size=2>&nbsp; </FONT></TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="10%"><FONT size=2>&nbsp; </FONT></TD>
    <TD vAlign=bottom align=left width="2%" style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" valign="bottom">&nbsp;</TD>
    <TD vAlign=bottom align=left bgColor=#e6efff><FONT size=2>&nbsp;
      &nbsp;Accounts payable and accrued liabilities </FONT></TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff><FONT
      size=2>$</FONT></TD>
    <TD vAlign=bottom align=right width="10%" bgColor=#e6efff><FONT
      size=2>&nbsp;124,378 </FONT></TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff><FONT
      size=2>$</FONT></TD>
    <TD vAlign=bottom align=right width="10%" bgColor=#e6efff><FONT
      size=2>&nbsp;124,378 </FONT></TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff><FONT
      size=2>$</FONT></TD>
    <TD vAlign=bottom align=right width="10%" bgColor=#e6efff><FONT
      size=2>&nbsp;149,344 </FONT></TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff><FONT
      size=2>$</FONT></TD>
    <TD vAlign=bottom align=right width="10%" bgColor=#e6efff><FONT
      size=2>&nbsp;149,344 </FONT></TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" valign="bottom">&nbsp;</TD>
    <TD vAlign=bottom align=left><FONT size=2>&nbsp;&nbsp; Long-term debt -
      bearing interest at variable rates: </FONT></TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="10%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="10%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="10%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="10%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="2%" style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" valign="bottom">&nbsp;</TD>
    <TD vAlign=bottom align=left bgColor=#e6efff><FONT size=2>&nbsp; &nbsp;
      &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;Revolving long-term credit facility
      </FONT></TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%" bgColor=#e6efff><FONT size=2>-
      </FONT></TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%" bgColor=#e6efff><FONT size=2>-
      </FONT></TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%" bgColor=#e6efff><FONT
      size=2>45,000 </FONT></TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%" bgColor=#e6efff><FONT
      size=2>45,000 </FONT></TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" valign="bottom">&nbsp;</TD>
    <TD vAlign=bottom align=left><FONT size=2>&nbsp; &nbsp; &nbsp; &nbsp;
      &nbsp; &nbsp; &nbsp;Other long-term debt </FONT></TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%"><FONT size=2>3,876 </FONT></TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%"><FONT size=2>3,876 </FONT></TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%"><FONT size=2>6,318 </FONT></TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%"><FONT size=2>6,318 </FONT></TD>
    <TD vAlign=bottom align=left width="2%" style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" valign="bottom">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    bgColor=#e6efff><FONT size=2>&nbsp; &nbsp;Long-term debt - bearing
      interest at fixed rates </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=right
    width="10%" bgColor=#e6efff><FONT size=2>511 </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=right
    width="10%" bgColor=#e6efff><FONT size=2>511 </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=right
    width="10%" bgColor=#e6efff><FONT size=2>1,686 </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=right
    width="10%" bgColor=#e6efff><FONT size=2>1,686 </FONT></TD>
    <TD style="BORDER-BOTTOM: medium none #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" vAlign=bottom align=left
    width="2%" bgColor=#e6efff>&nbsp;</TD></TR></TABLE>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0 BCLLIST>

  <TR>
    <TD width="5%" valign="bottom">&nbsp;</TD>
    <TD valign="bottom">
      &nbsp;</TD></TR>

  <TR>
    <TD width="5%" valign="bottom"></TD>
    <TD valign="bottom">
      <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, the restricted cash related to the acquisition of Prewett, and
      the Company&#146;s interest-bearing financial liabilities also approximate
      their respective carrying amounts. The fair values of cash and cash
      equivalents and forward foreign contracts were measured using Level 2 and
      Level 1 inputs, respectively, in the fair value hierarchy.</P></TD></TR>
  <TR>
    <TD width="5%" valign="bottom">&nbsp;</TD>
    <TD valign="bottom">&nbsp;</TD></TR>
  <TR>
    <TD vAlign=bottom width="5%">(b) </TD>
    <TD valign="bottom">
      <P align=justify>Financial (income) expense,
net:</P></TD></TR></TABLE>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR>
    <TD width="5%" valign="bottom" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-top-style:none; border-top-width:medium" vAlign=bottom
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-top-style:none; border-top-width:medium" vAlign=bottom align=right
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-top-style:none; border-top-width:medium" vAlign=bottom align=right
    width="10%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-top-style:none; border-top-width:medium" vAlign=bottom align=right
    width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-top-style:none; border-top-width:medium" vAlign=bottom align=right
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-top-style:none; border-top-width:medium" vAlign=bottom align=right
    width="10%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-top-style:none; border-top-width:medium" vAlign=bottom align=right
    width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-top-style:none; border-top-width:medium" vAlign=bottom align=right
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" vAlign=bottom align=right
    width="10%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: medium none #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" vAlign=bottom align=right
    width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" valign="bottom">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom
      align=left><FONT size=2>&nbsp; </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="10%"><FONT size=2>2009 </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="10%"><FONT size=2>2008 </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-right-style:none; border-right-width:medium" vAlign=bottom align=right
    width="10%"><FONT size=2>2007 </FONT></TD>
    <TD style="BORDER-BOTTOM: medium none #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" vAlign=bottom align=left
    width="2%">&nbsp;</TD></TR>
  <TR>
    <TD width="5%" valign="bottom">&nbsp;</TD>
    <TD vAlign=bottom align=left>&nbsp;</TD>
    <TD vAlign=bottom align=right width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%" style="border-right-style: none; border-right-width: medium">&nbsp;</TD>
    <TD vAlign=bottom align=right width="2%" style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" valign="bottom">&nbsp;</TD>
    <TD vAlign=bottom align=left bgColor=#e6efff><FONT size=2>Interest expense
      (i) </FONT></TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff><FONT
      size=2>$</FONT></TD>
    <TD vAlign=bottom align=right width="10%" bgColor=#e6efff><FONT
      size=2>&nbsp;1,824 </FONT></TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff><FONT
      size=2>$</FONT></TD>
    <TD vAlign=bottom align=right width="10%" bgColor=#e6efff><FONT
      size=2>&nbsp;7,223 </FONT></TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff><FONT
      size=2>$</FONT></TD>
    <TD vAlign=bottom align=right width="10%" bgColor=#e6efff style="border-right-style: none; border-right-width: medium"><FONT
      size=2>&nbsp;4,898 </FONT></TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" valign="bottom">&nbsp;</TD>
    <TD vAlign=bottom align=left><FONT size=2>Bank and other financial charges
      </FONT></TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%"><FONT size=2>1,039 </FONT></TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%"><FONT size=2>946 </FONT></TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%"><FONT size=2>1,239 </FONT></TD>
    <TD vAlign=bottom align=left width="2%" style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" valign="bottom">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    bgColor=#e6efff><FONT size=2>Foreign exchange (gain) loss (ii) </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="10%" bgColor=#e6efff><FONT size=2>(3,167</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%" bgColor=#e6efff>) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="10%" bgColor=#e6efff><FONT size=2>1,071 </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="10%" bgColor=#e6efff><FONT size=2>(717</FONT></TD>
    <TD style="BORDER-BOTTOM: medium none #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" vAlign=bottom align=left
    width="2%" bgColor=#e6efff>) </TD></TR>
  <TR vAlign=top>
    <TD width="5%" valign="bottom">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom
      align=left><FONT size=2>&nbsp; </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="1%"><FONT size=2>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=right
    width="10%"><FONT size=2>&nbsp;(304</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="2%">) </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="1%"><FONT size=2>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=right
    width="10%"><FONT size=2>&nbsp;9,240 </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="1%"><FONT size=2>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=right
    width="10%"><FONT size=2>&nbsp;5,420 </FONT></TD>
    <TD style="BORDER-BOTTOM: medium none #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" vAlign=bottom align=left
    width="2%">&nbsp;</TD></TR></TABLE>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0 BCLLIST>

  <TR>
    <TD width="5%" valign="bottom"  >&nbsp;</TD>
    <TD vAlign=bottom width="5%">&nbsp;</TD>
    <TD valign="bottom">
      &nbsp;</TD></TR>

  <TR>
    <TD width="5%" valign="bottom"  >&nbsp;</TD>
    <TD vAlign=bottom width="5%">(i) </TD>
    <TD valign="bottom">
      <P align=justify>Interest expense:</P></TD></TR></TABLE>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR>
    <TD width="10%" valign="bottom"  >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=right
    width="1%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=right
    width="10%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=right
    width="2%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=right
    width="1%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=right
    width="10%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=right
    width="2%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=right
    width="1%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-right-style:none; border-right-width:medium" vAlign=bottom align=right
    width="10%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: medium none #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" vAlign=bottom align=right
    width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="10%" valign="bottom" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom
      align=left><FONT size=2>&nbsp; </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="10%"><FONT size=2>2009 </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="10%"><FONT size=2>2008 </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-right-style:none; border-right-width:medium" vAlign=bottom align=right
    width="10%"><FONT size=2>2007 </FONT></TD>
    <TD style="BORDER-BOTTOM: medium none #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" vAlign=bottom align=left
    width="2%" >&nbsp;</TD></TR>
  <TR>
    <TD width="10%" valign="bottom" >&nbsp;</TD>
    <TD vAlign=bottom align=left >&nbsp;</TD>
    <TD vAlign=bottom align=right width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%" style="border-right-style: none; border-right-width: medium" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="2%" style="border-style: none; border-width: medium" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="10%" valign="bottom" >&nbsp;</TD>
    <TD vAlign=bottom align=left bgColor=#e6efff><FONT size=2>Interest expense
      on long-term debt </FONT></TD>
    <TD vAlign=bottom align=left width="1%"
      bgColor=#e6efff><FONT size=2>$</FONT></TD>
    <TD vAlign=bottom align=right width="10%" bgColor=#e6efff><FONT
      size=2>&nbsp;1,800 </FONT></TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
      bgColor=#e6efff><FONT size=2>$</FONT></TD>
    <TD vAlign=bottom align=right width="10%" bgColor=#e6efff><FONT
      size=2>&nbsp;7,422 </FONT></TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
      bgColor=#e6efff><FONT size=2>$</FONT></TD>
    <TD vAlign=bottom align=right width="10%" bgColor=#e6efff style="border-right-style: none; border-right-width: medium"><FONT
      size=2>&nbsp;4,997 </FONT></TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="10%" valign="bottom" >&nbsp;</TD>
    <TD vAlign=bottom align=left><FONT size=2>Interest expense on short-term
      indebtedness </FONT></TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%"><FONT size=2>142 </FONT></TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%"><FONT size=2>191 </FONT></TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%"><FONT size=2>233 </FONT></TD>
    <TD vAlign=bottom align=left width="2%" style="border-style: none; border-width: medium" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="10%" valign="bottom" >&nbsp;</TD>
    <TD vAlign=bottom align=left bgColor=#e6efff><FONT size=2>Interest income
      on held-for-trading financial assets </FONT></TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%" bgColor=#e6efff><FONT
      size=2>(103</FONT></TD>
    <TD vAlign=bottom align=left width="2%"  bgColor=#e6efff>)
</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%" bgColor=#e6efff><FONT
      size=2>(413</FONT></TD>
    <TD vAlign=bottom align=left width="2%"  bgColor=#e6efff>)
</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%" bgColor=#e6efff><FONT
      size=2>(460</FONT></TD>
    <TD vAlign=bottom align=left width="2%"  bgColor=#e6efff style="border-style: none; border-width: medium">)
  </TD></TR>
  <TR vAlign=top>
    <TD width="10%" valign="bottom" >&nbsp;</TD>
    <TD vAlign=bottom align=left><FONT size=2>Interest income on loans and
      receivables </FONT></TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%"><FONT size=2>(80</FONT></TD>
    <TD vAlign=bottom align=left width="2%" >) </TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%"><FONT size=2>(80</FONT></TD>
    <TD vAlign=bottom align=left width="2%" >) </TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%"><FONT size=2>- </FONT></TD>
    <TD vAlign=bottom align=left width="2%" style="border-style: none; border-width: medium" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="10%" valign="bottom" >&nbsp;</TD>
    <TD vAlign=bottom align=left bgColor=#e6efff style="border-bottom-style: solid; border-bottom-width: 1"><FONT size=2>Other interest
      expense </FONT></TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%" bgColor=#e6efff style="border-bottom-style: solid; border-bottom-width: 1"><FONT size=2>65
      </FONT></TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%" bgColor=#e6efff style="border-bottom-style: solid; border-bottom-width: 1"><FONT size=2>103
      </FONT></TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%" bgColor=#e6efff style="border-bottom-style: solid; border-bottom-width: 1"><FONT size=2>128
      </FONT></TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="10%" valign="bottom" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-top-style:solid; border-top-width:1" vAlign=bottom
      align=left><FONT size=2>&nbsp; </FONT></TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-top-style:solid; border-top-width:1" vAlign=bottom align=left
    width="1%" ><FONT size=2>$</FONT></TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-top-style:solid; border-top-width:1" vAlign=bottom align=right
    width="10%"><FONT size=2>&nbsp;1,824 </FONT></TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-top-style:solid; border-top-width:1" vAlign=bottom align=left
    width="2%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-top-style:solid; border-top-width:1" vAlign=bottom align=left
    width="1%" ><FONT size=2>$</FONT></TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-top-style:solid; border-top-width:1" vAlign=bottom align=right
    width="10%"><FONT size=2>&nbsp;7,223 </FONT></TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-top-style:solid; border-top-width:1" vAlign=bottom align=left
    width="2%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-top-style:solid; border-top-width:1" vAlign=bottom align=left
    width="1%" ><FONT size=2>$</FONT></TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-top-style:solid; border-top-width:1" vAlign=bottom align=right
    width="10%"><FONT size=2>&nbsp;4,898 </FONT></TD>
    <TD style="BORDER-BOTTOM: medium none #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" vAlign=bottom align=left
    width="2%" >&nbsp;</TD></TR></TABLE>
<P style="MARGIN-LEFT: 10%" align=justify>Interest income on held-for-trading
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&#146;s long-term receivable included in
other assets. </P>
<P align=right>GILDAN 2009 REPORT TO SHAREHOLDERS P.73</P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<!--$$/page=-->
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD align=left valign="bottom">
    <img border="0" src="gildan1.jpg" width="92" height="30"></TD>
    <TD align=right width="50%" valign="bottom">NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
  </TD></TR></TABLE>
<P align=justify><B>19. FINANCIAL INSTRUMENTS (continued):</B> </P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0 BCLLIST>

  <TR>
    <TD vAlign=bottom width="5%">(b) </TD>
    <TD valign="bottom">
      <P align=justify>Financial (income) expense, net
  (continued):</P></TD></TR></TABLE>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0 BCLLIST>

  <TR>
    <TD width="5%" valign="bottom" >&nbsp;</TD>
    <TD vAlign=bottom width="5%">&nbsp;</TD>
    <TD valign="bottom">
      &nbsp;</TD></TR>

  <TR>
    <TD width="5%" valign="bottom" >&nbsp;</TD>
    <TD vAlign=bottom width="5%">(ii) </TD>
    <TD valign="bottom">
      <P align=justify>Foreign exchange (gain) loss:</P></TD></TR></TABLE>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR>
    <TD width="10%" valign="bottom" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=right
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=right
    width="10%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=right
    width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=right
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=right
    width="10%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=right
    width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=right
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-right-style:none; border-right-width:medium" vAlign=bottom align=right
    width="10%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: medium none #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" vAlign=bottom align=right
    width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="10%" valign="bottom">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom
      align=left><FONT size=2>&nbsp; </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="10%"><FONT size=2>2009 </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="10%"><FONT size=2>2008 </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-right-style:none; border-right-width:medium" vAlign=bottom align=right
    width="10%"><FONT size=2>2007 </FONT></TD>
    <TD style="BORDER-BOTTOM: medium none #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" vAlign=bottom align=left
    width="2%">&nbsp;</TD></TR>
  <TR>
    <TD width="10%" valign="bottom">&nbsp;</TD>
    <TD vAlign=bottom align=left>&nbsp;</TD>
    <TD vAlign=bottom align=right width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%" style="border-right-style: none; border-right-width: medium">&nbsp;</TD>
    <TD vAlign=bottom align=right width="2%" style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="10%" valign="bottom">&nbsp;</TD>
    <TD vAlign=bottom align=left bgColor=#e6efff>
    <p style="text-indent: -15pt; margin-left: 15pt"><FONT size=2>(Gain) loss
      relating to financial assets and liabilities, excluding forward foreign exchange contracts </FONT></TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff><FONT
      size=2>$</FONT></TD>
    <TD vAlign=bottom align=right width="10%" bgColor=#e6efff><FONT
      size=2>&nbsp;(220</FONT></TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>) </TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff><FONT
      size=2>$</FONT></TD>
    <TD vAlign=bottom align=right width="10%" bgColor=#e6efff><FONT
      size=2>&nbsp;674 </FONT></TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff><FONT
      size=2>$</FONT></TD>
    <TD vAlign=bottom align=right width="10%" bgColor=#e6efff style="border-right-style: none; border-right-width: medium"><FONT
      size=2>&nbsp;(1,486</FONT></TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff style="border-style: none; border-width: medium">) </TD></TR>
  <TR vAlign=top>
    <TD width="10%" valign="bottom">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom
      align=left>
    <p style="text-indent: -15pt; margin-left: 15pt"><FONT size=2>(Gain) loss relating to forward foreign exchange
      contracts, including amounts realized on contract
      maturity and changes in fair value of open positions </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="10%"><FONT
    size=2>(82</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%">) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="10%"><FONT size=2>2,084
      </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-right-style:none; border-right-width:medium" vAlign=bottom align=right
    width="10%"><FONT
      size=2>(1,945</FONT></TD>
    <TD style="BORDER-BOTTOM: medium none #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" vAlign=bottom align=left
    width="2%">) </TD></TR>
  <TR vAlign=top>
    <TD width="10%" valign="bottom">&nbsp;</TD>
    <TD vAlign=bottom align=left bgColor=#e6efff>
    <p style="text-indent: -15pt; margin-left: 15pt"><FONT size=2>Foreign exchange
      (gain) loss relating to financial instruments </FONT></TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%" bgColor=#e6efff><FONT
      size=2>(302</FONT></TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>) </TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%" bgColor=#e6efff><FONT
      size=2>2,758 </FONT></TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%" bgColor=#e6efff style="border-right-style: none; border-right-width: medium"><FONT
      size=2>(3,431</FONT></TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff style="border-style: none; border-width: medium">) </TD></TR>
  <TR vAlign=top>
    <TD width="10%" valign="bottom">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom
      align=left>
    <p style="text-indent: -15pt; margin-left: 15pt"><FONT size=2>Other foreign exchange (gain) loss </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="10%"><FONT size=2>(2,865</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%">) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="10%"><FONT size=2>(1,687</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%">) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-right-style:none; border-right-width:medium" vAlign=bottom align=right
    width="10%"><FONT size=2>2,714 </FONT></TD>
    <TD style="BORDER-BOTTOM: medium none #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" vAlign=bottom align=left
    width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="10%" valign="bottom">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    bgColor=#e6efff><FONT size=2>&nbsp; </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="1%" bgColor=#e6efff><FONT size=2>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=right
    width="10%" bgColor=#e6efff><FONT size=2>&nbsp;(3,167</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="2%" bgColor=#e6efff>) </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="1%" bgColor=#e6efff><FONT size=2>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=right
    width="10%" bgColor=#e6efff><FONT size=2>&nbsp;1,071 </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="1%" bgColor=#e6efff><FONT size=2>$</FONT></TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-right-style:none; border-right-width:medium" vAlign=bottom align=right
    width="10%" bgColor=#e6efff><FONT size=2>&nbsp;(717</FONT></TD>
    <TD style="BORDER-BOTTOM: medium none #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" vAlign=bottom align=left
    width="2%" bgColor=#e6efff>) </TD></TR></TABLE>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0 BCLLIST>

  <TR>
    <TD vAlign=bottom width="5%">&nbsp;</TD>
    <TD valign="bottom">
      &nbsp;</TD></TR>

  <TR>
    <TD vAlign=bottom width="5%">(c) </TD>
    <TD valign="bottom">
      <P align=justify>Forward foreign exchange contracts:</P></TD></TR>
  <TR>
    <TD width="5%" valign="bottom">&nbsp;</TD>
    <TD valign="bottom">&nbsp;</TD></TR>
  <TR>
    <TD width="5%" valign="bottom"></TD>
    <TD valign="bottom">
      <P align=justify>As at October 4, 2009 the Company had no outstanding
      derivative financial instruments relating to commitments to buy and sell
      foreign currencies through forward foreign exchange contracts.</P></TD></TR>
  <TR>
    <TD width="5%" valign="bottom">&nbsp;</TD>
    <TD valign="bottom">&nbsp;</TD></TR>
  <TR>
    <TD width="5%" valign="bottom"></TD>
    <TD valign="bottom">
      <P align=justify>The following table summarizes the Company&#146;s derivative
      financial instruments at October 5, 2008:</P></TD></TR></TABLE>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 8pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR>
    <TD width="5%" valign="bottom" style="border-top-style: none; border-top-width: medium"  >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-top-style:none; border-top-width:medium" vAlign=bottom
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-top-style:none; border-top-width:medium" vAlign=bottom align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-top-style:none; border-top-width:medium" vAlign=bottom align=left
    width="7%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-top-style:none; border-top-width:medium" vAlign=bottom align=left
    width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-top-style:none; border-top-width:medium" vAlign=bottom align=right
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-top-style:none; border-top-width:medium" vAlign=bottom align=right
    width="7%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-top-style:none; border-top-width:medium" vAlign=bottom align=right
    width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-top-style:none; border-top-width:medium" vAlign=bottom align=center
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-top-style:none; border-top-width:medium" vAlign=bottom align=center
    width="7%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-top-style:none; border-top-width:medium" vAlign=bottom align=center
    width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-top-style:none; border-top-width:medium" vAlign=bottom align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-top-style:none; border-top-width:medium" vAlign=bottom align=left
    width="7%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-top-style:none; border-top-width:medium" vAlign=bottom align=left
    width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-top-style:none; border-top-width:medium" vAlign=bottom align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-top-style:none; border-top-width:medium" vAlign=bottom align=left
    width="7%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-top-style:none; border-top-width:medium" vAlign=bottom align=left
    width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-top-style:none; border-top-width:medium" vAlign=bottom align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-top-style:none; border-top-width:medium" vAlign=bottom align=left
    width="7%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: medium none #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" vAlign=bottom align=left
    width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" valign="bottom" >&nbsp;</TD>
    <TD vAlign=bottom align=left nowrap><FONT size=2>&nbsp; </FONT></TD>
    <TD vAlign=bottom align=left width="1%" nowrap>&nbsp;</TD>
    <TD vAlign=bottom align=left width="7%" nowrap><FONT size=2>&nbsp; </FONT></TD>
    <TD vAlign=bottom align=left width="2%" nowrap>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" nowrap>&nbsp;</TD>
    <TD vAlign=bottom align=right width="7%" nowrap><FONT size=2>Notional foreign
      </FONT></TD>
    <TD vAlign=bottom align=left width="2%" nowrap>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" nowrap>&nbsp;</TD>
    <TD vAlign=bottom align=right width="7%" nowrap><FONT size=2>Average </FONT></TD>
    <TD vAlign=bottom align=left width="2%" nowrap>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" nowrap>&nbsp;</TD>
    <TD vAlign=bottom align=left width="7%" nowrap><FONT size=2>&nbsp; </FONT></TD>
    <TD vAlign=bottom align=left width="2%" nowrap>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" nowrap>&nbsp;</TD>
    <TD vAlign=bottom align=left width="7%" nowrap><FONT size=2>&nbsp; </FONT></TD>
    <TD vAlign=bottom align=left width="2%" nowrap>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" nowrap>&nbsp;</TD>
    <TD vAlign=bottom align=left width="7%" nowrap><FONT size=2>&nbsp; </FONT></TD>
    <TD vAlign=bottom align=left width="2%" style="border-style: none; border-width: medium" nowrap>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" valign="bottom" >&nbsp;</TD>
    <TD vAlign=bottom align=left nowrap><FONT size=2>&nbsp; </FONT></TD>
    <TD vAlign=bottom align=left width="1%" nowrap>&nbsp;</TD>
    <TD vAlign=bottom align=left width="7%" nowrap><FONT size=2>&nbsp; </FONT></TD>
    <TD vAlign=bottom align=left width="2%" nowrap>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" nowrap>&nbsp;</TD>
    <TD vAlign=bottom align=right width="7%" nowrap><FONT size=2>currency </FONT></TD>
    <TD vAlign=bottom align=left width="2%" nowrap>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" nowrap>&nbsp;</TD>
    <TD vAlign=bottom align=right width="7%" nowrap><FONT size=2>exchange </FONT></TD>
    <TD vAlign=bottom align=left width="2%" nowrap>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" nowrap>&nbsp;</TD>
    <TD vAlign=bottom align=right width="7%" nowrap><FONT size=2>Notional U.S.
    </FONT></TD>
    <TD vAlign=bottom align=left width="2%" nowrap>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" nowrap>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=center
    width="17%" colSpan=4 nowrap><FONT size=2>Carrying and fair value </FONT></TD>
    <TD style="BORDER-BOTTOM: medium none #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" vAlign=bottom align=left
    width="2%" nowrap>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" valign="bottom" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom
      align=left nowrap><FONT size=2>October 5, 2008 </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" nowrap>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="7%" nowrap><FONT size=2>Maturity </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%" nowrap>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" nowrap>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="7%" nowrap><FONT size=2>amount </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%" nowrap>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" nowrap>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="7%" nowrap><FONT size=2>rate </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%" nowrap>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" nowrap>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="7%" nowrap><FONT size=2>equivalent </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%" nowrap>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" nowrap>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="7%" nowrap><FONT size=2>Asset </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%" nowrap>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" nowrap>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="7%" nowrap><FONT size=2>Liability </FONT></TD>
    <TD style="BORDER-BOTTOM: medium none #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" vAlign=bottom align=left
    width="2%" nowrap>&nbsp;</TD></TR>
  <TR>
    <TD width="5%" valign="bottom" >&nbsp;</TD>
    <TD vAlign=bottom align=left>&nbsp;</TD>
    <TD vAlign=bottom align=right width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="7%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="7%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="7%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="7%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="7%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="7%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="2%" style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" valign="bottom" >&nbsp;</TD>
    <TD vAlign=bottom align=left bgColor=#e6efff><FONT size=2>Buy CAD/Sell USD
      </FONT></TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="7%" bgColor=#e6efff><FONT size=2>0-6
      months </FONT></TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="7%" bgColor=#e6efff><FONT
      size=2>5,483 </FONT></TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="7%" bgColor=#e6efff><FONT
      size=2>0.9302 </FONT></TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff><FONT
      size=2>$</FONT></TD>
    <TD vAlign=bottom align=right width="7%" bgColor=#e6efff><FONT
      size=2>&nbsp;5,100 </FONT></TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff><FONT
      size=2>$</FONT></TD>
    <TD vAlign=bottom align=right width="7%" bgColor=#e6efff><FONT
      size=2>&nbsp;- </FONT></TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff><FONT
      size=2>$</FONT></TD>
    <TD vAlign=bottom align=right width="7%" bgColor=#e6efff><FONT
      size=2>&nbsp;- </FONT></TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" valign="bottom" >&nbsp;</TD>
    <TD vAlign=bottom align=left><FONT size=2>Buy EUR/Sell GBP </FONT></TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="7%"><FONT size=2>0-6 months
</FONT></TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="7%"><FONT size=2>962 </FONT></TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="7%"><FONT size=2>1.3740 </FONT></TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="7%"><FONT size=2>1,322 </FONT></TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="7%"><FONT size=2>- </FONT></TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="7%"><FONT size=2>- </FONT></TD>
    <TD vAlign=bottom align=left width="2%" style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" valign="bottom" >&nbsp;</TD>
    <TD vAlign=bottom align=left bgColor=#e6efff><FONT size=2>Sell EUR/Buy USD
      </FONT></TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="7%" bgColor=#e6efff><FONT size=2>0-6
      months </FONT></TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="7%" bgColor=#e6efff><FONT
      size=2>5,650 </FONT></TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="7%" bgColor=#e6efff><FONT
      size=2>1.4591 </FONT></TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="7%" bgColor=#e6efff><FONT
      size=2>8,244 </FONT></TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="7%" bgColor=#e6efff><FONT size=2>472
      </FONT></TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="7%" bgColor=#e6efff><FONT size=2>-
      </FONT></TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" valign="bottom" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom
      align=left><FONT size=2>Sell GBP/Buy USD </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="7%"><FONT size=2>0-6 months </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="7%"><FONT size=2>2,951 </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="7%"><FONT size=2>1.9177 </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="7%"><FONT size=2>5,659 </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="7%"><FONT size=2>457 </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="7%"><FONT size=2>- </FONT></TD>
    <TD style="BORDER-BOTTOM: medium none #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" vAlign=bottom align=left
    width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" valign="bottom" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    bgColor=#e6efff><FONT size=2>&nbsp; </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="7%" bgColor=#e6efff><FONT size=2>&nbsp; </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="7%" bgColor=#e6efff><FONT size=2>&nbsp; </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="7%" bgColor=#e6efff><FONT size=2>&nbsp; </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="1%" bgColor=#e6efff><FONT size=2>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=right
    width="7%" bgColor=#e6efff><FONT size=2>&nbsp;20,325 </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="1%" bgColor=#e6efff><FONT size=2>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=right
    width="7%" bgColor=#e6efff><FONT size=2>&nbsp;929 </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="1%" bgColor=#e6efff><FONT size=2>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=right
    width="7%" bgColor=#e6efff><FONT size=2>&nbsp;- </FONT></TD>
    <TD style="BORDER-BOTTOM: medium none #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" vAlign=bottom align=left
    width="2%" bgColor=#e6efff>&nbsp;</TD></TR></TABLE>
<P align=justify><B>20. CAPITAL DISCLOSURES: </B></P>
<P align=justify>The Company&#146;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&#146;s capital is composed of net debt and shareholders&#146;
equity. Net debt consists of interest-bearing debt less cash and cash
equivalents. The Company&#146;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=right>GILDAN 2009 REPORT TO SHAREHOLDERS P.74</P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<!--$$/page=-->
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD align=left valign="bottom">
    <img border="0" src="gildan1.jpg" width="92" height="30"></TD>
    <TD align=right width="50%" valign="bottom">NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
  </TD></TR></TABLE>
<P align=justify><B>20. CAPITAL DISCLOSURES (continued): </B></P>
<P align=justify style="margin-bottom: 0">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 (&#147;EBITDA&#148;), 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 computation of net debt (cash in excess of total
indebtedness) and EBITDA as at October 4, 2009, October 5, 2008 and September
30, 2007 were as follows: </P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=right
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=right
    width="10%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=right
    width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=right
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=right
    width="10%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=right
    width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=right
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=right
    width="10%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: medium none #000000; " vAlign=bottom align=right
    width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom
      align=left><FONT size=2>&nbsp; </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="10%"><FONT size=2>2009 </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="10%"><FONT size=2>2008 </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-right-style:none; border-right-width:medium" vAlign=bottom align=right
    width="10%"><FONT size=2>2007 </FONT></TD>
    <TD style="BORDER-BOTTOM: medium none #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" vAlign=bottom align=left
    width="2%">&nbsp;</TD></TR>
  <TR>
    <TD vAlign=bottom align=left>&nbsp;</TD>
    <TD vAlign=bottom align=right width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%" style="border-right-style: none; border-right-width: medium">&nbsp;</TD>
    <TD vAlign=bottom align=right width="2%" style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD vAlign=bottom align=left bgColor=#e6efff><FONT size=2>Current portion
      of long-term debt </FONT></TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff><FONT
      size=2>$</FONT></TD>
    <TD vAlign=bottom align=right width="10%" bgColor=#e6efff><FONT
      size=2>&nbsp;2,803 </FONT></TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff><FONT
      size=2>$</FONT></TD>
    <TD vAlign=bottom align=right width="10%" bgColor=#e6efff><FONT
      size=2>&nbsp;3,556 </FONT></TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff><FONT
      size=2>$</FONT></TD>
    <TD vAlign=bottom align=right width="10%" bgColor=#e6efff style="border-right-style: none; border-right-width: medium"><FONT
      size=2>&nbsp;3,689 </FONT></TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD vAlign=bottom align=left><FONT size=2>Long-term debt </FONT></TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%"><FONT size=2>1,584 </FONT></TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%"><FONT size=2>49,448 </FONT></TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%" style="border-right-style: none; border-right-width: medium"><FONT size=2>55,971 </FONT></TD>
    <TD vAlign=bottom align=left width="2%" style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    bgColor=#e6efff><FONT size=2>Less: cash and cash equivalents </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="10%" bgColor=#e6efff><FONT size=2>(99,732</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%" bgColor=#e6efff>) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="10%" bgColor=#e6efff><FONT size=2>(12,357</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%" bgColor=#e6efff>) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-right-style:none; border-right-width:medium" vAlign=bottom align=right
    width="10%" bgColor=#e6efff><FONT size=2>(9,250</FONT></TD>
    <TD style="BORDER-BOTTOM: medium none #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" vAlign=bottom align=left
    width="2%" bgColor=#e6efff>) </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom
      align=left><FONT size=2>(Cash in excess of total indebtedness) net debt
      </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="1%"><FONT size=2>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=right
    width="10%"><FONT size=2>&nbsp;(95,345</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="2%">) </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="1%"><FONT size=2>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=right
    width="10%"><FONT size=2>&nbsp;40,647 </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="1%"><FONT size=2>$</FONT></TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-right-style:none; border-right-width:medium" vAlign=bottom align=right
    width="10%"><FONT size=2>&nbsp;50,410 </FONT></TD>
    <TD style="BORDER-BOTTOM: medium none #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" vAlign=bottom align=left
    width="2%">&nbsp;</TD></TR>
  <TR>
    <TD vAlign=bottom align=left bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="1%" bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%" bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="2%" bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="1%" bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%" bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="2%" bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="1%" bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%" bgColor=#ffffff style="border-right-style: none; border-right-width: medium">&nbsp;</TD>
    <TD vAlign=bottom align=right width="2%" bgColor=#ffffff style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR>
    <TD vAlign=bottom align=left bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="1%" bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%" bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="2%" bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="1%" bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%" bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="2%" bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="1%" bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%" bgColor=#ffffff style="border-right-style: none; border-right-width: medium">&nbsp;</TD>
    <TD vAlign=bottom align=right width="2%" bgColor=#ffffff style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    bgColor=#ffffff><FONT size=2>&nbsp; </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" bgColor=#ffffff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-right-style:none; border-right-width:medium" vAlign=bottom align=right
    width="36%" bgColor=#ffffff colSpan=7><FONT size=2>For the last four
      quarters ended on </FONT></TD>
    <TD style="BORDER-BOTTOM: medium none #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" vAlign=bottom align=left
    width="2%" bgColor=#ffffff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD vAlign=bottom align=left bgColor=#ffffff><FONT size=2>&nbsp;
</FONT></TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%" bgColor=#ffffff><FONT
      size=2>October 4, </FONT></TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%" bgColor=#ffffff><FONT
      size=2>October 5, </FONT></TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%" bgColor=#ffffff style="border-right-style: none; border-right-width: medium"><FONT
      size=2>September </FONT></TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#ffffff style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    bgColor=#ffffff><FONT size=2>&nbsp; </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" bgColor=#ffffff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="10%" bgColor=#ffffff><FONT size=2>2009 </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%" bgColor=#ffffff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" bgColor=#ffffff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="10%" bgColor=#ffffff><FONT size=2>2008 </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%" bgColor=#ffffff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" bgColor=#ffffff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-right-style:none; border-right-width:medium" vAlign=bottom align=right
    width="10%" bgColor=#ffffff><FONT size=2>30, 2007 </FONT></TD>
    <TD style="BORDER-BOTTOM: medium none #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" vAlign=bottom align=left
    width="2%" bgColor=#ffffff>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=bottom align=left>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%" style="border-right-style: none; border-right-width: medium">&nbsp;</TD>
    <TD vAlign=bottom align=left width="2%" style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD vAlign=bottom align=left bgColor=#e6efff><FONT size=2>Net earnings
      </FONT></TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff><FONT
      size=2>$</FONT></TD>
    <TD vAlign=bottom align=right width="10%" bgColor=#e6efff><FONT
      size=2>&nbsp;95,329 </FONT></TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff><FONT
      size=2>$</FONT></TD>
    <TD vAlign=bottom align=right width="10%" bgColor=#e6efff><FONT
      size=2>&nbsp;146,350 </FONT></TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff><FONT
      size=2>$</FONT></TD>
    <TD vAlign=bottom align=right width="10%" bgColor=#e6efff style="border-right-style: none; border-right-width: medium"><FONT
      size=2>&nbsp;129,062 </FONT></TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD vAlign=bottom align=left><FONT size=2>Restructuring and other charges
      </FONT></TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%"><FONT size=2>6,199 </FONT></TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%"><FONT size=2>5,489 </FONT></TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%" style="border-right-style: none; border-right-width: medium"><FONT size=2>28,012 </FONT></TD>
    <TD vAlign=bottom align=left width="2%" style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD vAlign=bottom align=left bgColor=#e6efff><FONT size=2>Depreciation and
      amortization </FONT></TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%" bgColor=#e6efff><FONT
      size=2>65,407 </FONT></TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%" bgColor=#e6efff><FONT
      size=2>57,135 </FONT></TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%" bgColor=#e6efff style="border-right-style: none; border-right-width: medium"><FONT
      size=2>37,268 </FONT></TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD vAlign=bottom align=left><FONT size=2>Variation of depreciation
      included in inventories </FONT></TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%"><FONT size=2>(2,437</FONT></TD>
    <TD vAlign=bottom align=left width="2%">) </TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%"><FONT size=2>(957</FONT></TD>
    <TD vAlign=bottom align=left width="2%">) </TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%" style="border-right-style: none; border-right-width: medium"><FONT size=2>(1,837</FONT></TD>
    <TD vAlign=bottom align=left width="2%" style="border-style: none; border-width: medium">) </TD></TR>
  <TR vAlign=top>
    <TD vAlign=bottom align=left bgColor=#e6efff><FONT size=2>Interest, net
      </FONT></TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%" bgColor=#e6efff><FONT
      size=2>1,824 </FONT></TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%" bgColor=#e6efff><FONT
      size=2>7,223 </FONT></TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%" bgColor=#e6efff style="border-right-style: none; border-right-width: medium"><FONT
      size=2>4,898 </FONT></TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD vAlign=bottom align=left><FONT size=2>Income tax (recovery) expense
      </FONT></TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%"><FONT size=2>(5,786</FONT></TD>
    <TD vAlign=bottom align=left width="2%">) </TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%"><FONT size=2>34,400 </FONT></TD>
    <TD vAlign=bottom align=left width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%" style="border-right-style: none; border-right-width: medium"><FONT size=2>(4,815</FONT></TD>
    <TD vAlign=bottom align=left width="2%" style="border-style: none; border-width: medium">) </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    bgColor=#e6efff><FONT size=2>Non-controlling interest in consolidated
      joint venture </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="10%" bgColor=#e6efff><FONT size=2>110 </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="10%" bgColor=#e6efff><FONT size=2>230 </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-right-style:none; border-right-width:medium" vAlign=bottom align=right
    width="10%" bgColor=#e6efff><FONT size=2>1,278 </FONT></TD>
    <TD style="BORDER-BOTTOM: medium none #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" vAlign=bottom align=left
    width="2%" bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: 1px solid #000000; " vAlign=bottom
      align=left><FONT size=2>EBITDA </FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; " vAlign=bottom align=left
    width="1%"><FONT size=2>$</FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; " vAlign=bottom align=right
    width="10%"><FONT size=2>&nbsp;160,646 </FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; " vAlign=bottom align=left
    width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; " vAlign=bottom align=left
    width="1%"><FONT size=2>$</FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; " vAlign=bottom align=right
    width="10%"><FONT size=2>&nbsp;249,870 </FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; " vAlign=bottom align=left
    width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; " vAlign=bottom align=left
    width="1%"><FONT size=2>$</FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; border-right-style:none; border-right-width:medium" vAlign=bottom align=right
    width="10%"><FONT size=2>&nbsp;193,866 </FONT></TD>
    <TD style="BORDER-BOTTOM: medium none #000000; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" vAlign=bottom align=left
    width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: medium none #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; " vAlign=bottom align=left
    bgColor=#E6EFFF>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: medium none #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; " vAlign=bottom align=left
    width="1%" bgColor=#E6EFFF>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: medium none #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; " vAlign=bottom align=right
    width="10%" bgColor=#E6EFFF>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: medium none #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; " vAlign=bottom align=left
    width="2%" bgColor=#E6EFFF>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: medium none #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; " vAlign=bottom align=left
    width="1%" bgColor=#E6EFFF>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: medium none #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; " vAlign=bottom align=right
    width="10%" bgColor=#E6EFFF>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: medium none #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; " vAlign=bottom align=left
    width="2%" bgColor=#E6EFFF>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: medium none #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; " vAlign=bottom align=left
    width="1%" bgColor=#E6EFFF>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: medium none #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; " vAlign=bottom align=right
    width="10%" bgColor=#E6EFFF>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: medium none #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" vAlign=bottom align=left
    width="2%" bgColor=#E6EFFF>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-top-style:none; border-top-width:medium" vAlign=bottom align=left
    bgColor=#e6efff><FONT size=2>Net debt to EBITDA ratio </FONT></TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-top-style:none; border-top-width:medium" vAlign=bottom align=left
    width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-top-style:none; border-top-width:medium" vAlign=bottom align=right
    width="10%" bgColor=#e6efff><FONT size=2>&nbsp; &nbsp; &nbsp; &nbsp;
      &nbsp; &nbsp;n/a </FONT></TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-top-style:none; border-top-width:medium" vAlign=bottom align=left
    width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-top-style:none; border-top-width:medium" vAlign=bottom align=left
    width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-top-style:none; border-top-width:medium" vAlign=bottom align=right
    width="10%" bgColor=#e6efff><FONT size=2>0.2:1 </FONT></TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-top-style:none; border-top-width:medium" vAlign=bottom align=left
    width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-top-style:none; border-top-width:medium" vAlign=bottom align=left
    width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-top-style:none; border-top-width:medium; border-right-style:none; border-right-width:medium" vAlign=bottom align=right
    width="10%" bgColor=#e6efff><FONT size=2>0.3:1 </FONT></TD>
    <TD style="BORDER-BOTTOM: medium none #000000; ; border-top-style:none; border-top-width:medium; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium" vAlign=bottom align=left
    width="2%" bgColor=#e6efff>&nbsp;</TD></TR></TABLE>
<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 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. In the first quarter of
fiscal 2008, the Company used its revolving credit facility to finance the
acquisition of Prewett. </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&#146;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=right>GILDAN 2009 REPORT TO SHAREHOLDERS P.75</P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<!--$$/page=-->
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD align=left valign="bottom">
    <img border="0" src="gildan1.jpg" width="92" height="30"></TD>
    <TD align=right width="50%" valign="bottom">NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
  </TD></TR></TABLE>
<P align=justify><B>21. SEGMENTED INFORMATION:</B> </P>
<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>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0 BCLLIST>

  <TR>
    <TD vAlign=bottom width="5%">(a) </TD>
    <TD valign="bottom">
      <P align=justify>Net sales by major product
group:</P></TD></TR></TABLE>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR>
    <TD width="5%" valign="bottom" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=right
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=right
    width="10%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=right
    width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=right
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=right
    width="10%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=right
    width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=right
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=right
    width="10%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: medium none #000000; " vAlign=bottom align=right
    width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" valign="bottom">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom
      align=left><FONT size=2>&nbsp; </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="10%"><FONT size=2>2009 </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="10%"><FONT size=2>2008 </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-right-style:none; border-right-width:medium" vAlign=bottom align=right
    width="10%"><FONT size=2>2007 </FONT></TD>
    <TD style="BORDER-BOTTOM: medium none #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" vAlign=bottom align=left
    width="2%">&nbsp;</TD></TR>
  <TR>
    <TD width="5%" valign="bottom">&nbsp;</TD>
    <TD vAlign=bottom align=left>&nbsp;</TD>
    <TD vAlign=bottom align=right width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="2%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="1%">&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%" style="border-right-style: none; border-right-width: medium">&nbsp;</TD>
    <TD vAlign=bottom align=right width="2%" style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" valign="bottom">&nbsp;</TD>
    <TD vAlign=bottom align=left bgColor=#e6efff><FONT size=2>Activewear and
      underwear </FONT></TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff><FONT
      size=2>$</FONT></TD>
    <TD vAlign=bottom align=right width="10%" bgColor=#e6efff><FONT
      size=2>&nbsp;795,535 </FONT></TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff><FONT
      size=2>$</FONT></TD>
    <TD vAlign=bottom align=right width="10%" bgColor=#e6efff><FONT
      size=2>&nbsp;957,061 </FONT></TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" bgColor=#e6efff><FONT
      size=2>$</FONT></TD>
    <TD vAlign=bottom align=right width="10%" bgColor=#e6efff style="border-right-style: none; border-right-width: medium"><FONT
      size=2>&nbsp;826,252 </FONT></TD>
    <TD vAlign=bottom align=left width="2%" bgColor=#e6efff style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" valign="bottom">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom
      align=left><FONT size=2>Socks </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="10%"><FONT size=2>242,784 </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="10%"><FONT size=2>292,650 </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-right-style:none; border-right-width:medium" vAlign=bottom align=right
    width="10%"><FONT size=2>138,177 </FONT></TD>
    <TD style="BORDER-BOTTOM: medium none #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" vAlign=bottom align=left
    width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" valign="bottom">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    bgColor=#e6efff><FONT size=2>&nbsp; </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="1%" bgColor=#e6efff><FONT size=2>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=right
    width="10%" bgColor=#e6efff><FONT size=2>&nbsp;1,038,319 </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="1%" bgColor=#e6efff><FONT size=2>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=right
    width="10%" bgColor=#e6efff><FONT size=2>&nbsp;1,249,711 </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="1%" bgColor=#e6efff><FONT size=2>$</FONT></TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-right-style:none; border-right-width:medium" vAlign=bottom align=right
    width="10%" bgColor=#e6efff><FONT size=2>&nbsp;964,429 </FONT></TD>
    <TD style="BORDER-BOTTOM: medium none #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" vAlign=bottom align=left
    width="2%" bgColor=#e6efff>&nbsp;</TD></TR></TABLE>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0 BCLLIST>

  <TR>
    <TD vAlign=bottom width="5%">&nbsp;</TD>
    <TD valign="bottom">
      &nbsp;</TD></TR>

  <TR>
    <TD vAlign=bottom width="5%">(b) </TD>
    <TD valign="bottom">
      <P align=justify>Major customers and revenues by geographic
  area:</P></TD></TR></TABLE>
<P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR>
    <TD width="5%" valign="bottom" >&nbsp;</TD>
    <TD align=left valign="bottom">(i) </TD>
    <TD align=left width="90%" valign="bottom">The Company has two customers accounting for at
      least 10% of total net sales:</TD></TR></TABLE>
<p></p>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD width="10%" valign="bottom">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-top-style:solid; border-top-width:2px" align=left valign="bottom"><FONT
      size=2>&nbsp; </FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-top-style:solid; border-top-width:2px" align=left
    width="1%" valign="bottom">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-top-style:solid; border-top-width:2px" align=right width="10%" valign="bottom"><FONT
      size=2>2009 </FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-top-style:solid; border-top-width:2px" align=left
    width="2%" valign="bottom">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-top-style:solid; border-top-width:2px" align=left
    width="1%" valign="bottom">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-top-style:solid; border-top-width:2px" align=right width="10%" valign="bottom"><FONT
      size=2>2008 </FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-top-style:solid; border-top-width:2px" align=left
    width="2%" valign="bottom">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-top-style:solid; border-top-width:2px" align=left
    width="1%" valign="bottom">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-right-style:none; border-right-width:medium; border-top-style:solid; border-top-width:2px" align=right width="10%" valign="bottom"><FONT
      size=2>2007 </FONT></TD>
    <TD style="BORDER-BOTTOM: medium none #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" align=left
    width="2%" valign="bottom">&nbsp;</TD></TR>
  <TR>
    <TD width="10%" valign="bottom">&nbsp;</TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=center width="1%" valign="bottom">&nbsp;</TD>
    <TD align=center width="10%" valign="bottom">&nbsp;</TD>
    <TD align=center width="2%" valign="bottom">&nbsp;</TD>
    <TD align=center width="1%" valign="bottom">&nbsp;</TD>
    <TD align=center width="10%" valign="bottom">&nbsp;</TD>
    <TD align=center width="2%" valign="bottom">&nbsp;</TD>
    <TD align=left width="1%" valign="bottom">&nbsp;</TD>
    <TD align=left width="10%" valign="bottom" style="border-right-style: none; border-right-width: medium">&nbsp;</TD>
    <TD align=left width="2%" valign="bottom" style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="10%" valign="bottom">&nbsp;</TD>
    <TD align=left bgColor=#e6efff valign="bottom"><FONT size=2>Company A </FONT></TD>
    <TD align=left width="1%" bgColor=#e6efff valign="bottom">&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff valign="bottom"><FONT size=2>18.6% </FONT></TD>
    <TD align=left width="2%" bgColor=#e6efff valign="bottom">&nbsp;</TD>
    <TD align=left width="1%" bgColor=#e6efff valign="bottom">&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff valign="bottom"><FONT size=2>23.1% </FONT></TD>
    <TD align=left width="2%" bgColor=#e6efff valign="bottom">&nbsp;</TD>
    <TD align=left width="1%" bgColor=#e6efff valign="bottom">&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff valign="bottom" style="border-right-style: none; border-right-width: medium"><FONT size=2>23.1% </FONT></TD>
    <TD align=left width="2%" bgColor=#e6efff valign="bottom" style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="10%" valign="bottom">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left valign="bottom"><FONT
      size=2>Company B </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left
    width="1%" valign="bottom">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right width="10%" valign="bottom"><FONT
      size=2>15.5% </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left
    width="2%" valign="bottom">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left
    width="1%" valign="bottom">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right width="10%" valign="bottom"><FONT
      size=2>13.6% </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left
    width="2%" valign="bottom">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left
    width="1%" valign="bottom">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-right-style:none; border-right-width:medium" align=right width="10%" valign="bottom"><FONT
      size=2>5.3% </FONT></TD>
    <TD style="BORDER-BOTTOM: medium none #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" align=left
    width="2%" valign="bottom">&nbsp;</TD></TR></TABLE>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0 BCLLIST>

  <TR>
    <TD width="5%" valign="bottom" >&nbsp;</TD>
    <TD vAlign=bottom width="5%">&nbsp;</TD>
    <TD valign="bottom">
      &nbsp;</TD></TR>

  <TR>
    <TD width="5%" valign="bottom" >&nbsp;</TD>
    <TD vAlign=bottom width="5%">(ii) </TD>
    <TD valign="bottom">
      <P align=justify>Net sales were derived from customers located in the
      following geographic areas:</P></TD></TR></TABLE>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR>
    <TD width="10%" valign="bottom"  >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=right
    width="1%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=right
    width="10%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=right
    width="2%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=right
    width="1%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=right
    width="10%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=right
    width="2%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=right
    width="1%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-right-style:none; border-right-width:medium" vAlign=bottom align=right
    width="10%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: medium none #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" vAlign=bottom align=right
    width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="10%" valign="bottom" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom
      align=left><FONT size=2>&nbsp; </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="10%"><FONT size=2>2009 </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="10%"><FONT size=2>2008 </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-right-style:none; border-right-width:medium" vAlign=bottom align=right
    width="10%"><FONT size=2>2007 </FONT></TD>
    <TD style="BORDER-BOTTOM: medium none #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" vAlign=bottom align=left
    width="2%" >&nbsp;</TD></TR>
  <TR>
    <TD width="10%" valign="bottom" >&nbsp;</TD>
    <TD vAlign=bottom align=left >&nbsp;</TD>
    <TD vAlign=bottom align=right width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%" style="border-right-style: none; border-right-width: medium" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="2%" style="border-style: none; border-width: medium" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="10%" valign="bottom" >&nbsp;</TD>
    <TD vAlign=bottom align=left bgColor=#e6efff><FONT size=2>United States
      </FONT></TD>
    <TD vAlign=bottom align=left width="1%"
      bgColor=#e6efff><FONT size=2>$</FONT></TD>
    <TD vAlign=bottom align=right width="10%" bgColor=#e6efff><FONT
      size=2>&nbsp;939,717 </FONT></TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
      bgColor=#e6efff><FONT size=2>$</FONT></TD>
    <TD vAlign=bottom align=right width="10%" bgColor=#e6efff><FONT
      size=2>&nbsp;1,125,961 </FONT></TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
      bgColor=#e6efff><FONT size=2>$</FONT></TD>
    <TD vAlign=bottom align=right width="10%" bgColor=#e6efff style="border-right-style: none; border-right-width: medium"><FONT
      size=2>&nbsp;852,522 </FONT></TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="10%" valign="bottom" >&nbsp;</TD>
    <TD vAlign=bottom align=left><FONT size=2>Canada </FONT></TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%"><FONT size=2>35,134 </FONT></TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%"><FONT size=2>56,353 </FONT></TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%" style="border-right-style: none; border-right-width: medium"><FONT size=2>53,336 </FONT></TD>
    <TD vAlign=bottom align=left width="2%" style="border-style: none; border-width: medium" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="10%" valign="bottom" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    bgColor=#e6efff><FONT size=2>Europe and other </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="10%" bgColor=#e6efff><FONT size=2>63,468 </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="10%" bgColor=#e6efff><FONT size=2>67,397 </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-right-style:none; border-right-width:medium" vAlign=bottom align=right
    width="10%" bgColor=#e6efff><FONT size=2>58,571 </FONT></TD>
    <TD style="BORDER-BOTTOM: medium none #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" vAlign=bottom align=left
    width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="10%" valign="bottom" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom
      align=left><FONT size=2>&nbsp; </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="1%" ><FONT size=2>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=right
    width="10%"><FONT size=2>&nbsp;1,038,319 </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="2%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="1%" ><FONT size=2>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=right
    width="10%"><FONT size=2>&nbsp;1,249,711 </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="2%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="1%" ><FONT size=2>$</FONT></TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-right-style:none; border-right-width:medium" vAlign=bottom align=right
    width="10%"><FONT size=2>&nbsp;964,429 </FONT></TD>
    <TD style="BORDER-BOTTOM: medium none #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" vAlign=bottom align=left
    width="2%" >&nbsp;</TD></TR></TABLE>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0 BCLLIST>

  <TR>
    <TD vAlign=bottom width="5%">&nbsp;</TD>
    <TD valign="bottom">
      &nbsp;</TD></TR>

  <TR>
    <TD vAlign=bottom width="5%">(c) </TD>
    <TD valign="bottom">
      <P align=justify>Property, plant and equipment by geographic area are as
      follows:</P></TD></TR></TABLE>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR>
    <TD width="5%" valign="bottom"  >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=right
    width="1%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=right
    width="12%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=right
    width="2%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=right
    width="1%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-right-style:none; border-right-width:medium" vAlign=bottom align=right
    width="12%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: medium none #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" vAlign=bottom align=right
    width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" valign="bottom" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom
      align=left><FONT size=2>&nbsp; </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="12%"><FONT size=2>October 4, 2009 </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-right-style:none; border-right-width:medium" vAlign=bottom align=right
    width="12%"><FONT size=2>October 5, 2008 </FONT></TD>
    <TD style="BORDER-BOTTOM: medium none #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" vAlign=bottom align=left
    width="2%" >&nbsp;</TD></TR>
  <TR>
    <TD width="5%" valign="bottom" >&nbsp;</TD>
    <TD vAlign=bottom align=left >&nbsp;</TD>
    <TD vAlign=bottom align=right width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%" style="border-right-style: none; border-right-width: medium" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="2%" style="border-style: none; border-width: medium" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" valign="bottom" >&nbsp;</TD>
    <TD vAlign=bottom align=left bgColor=#e6efff><FONT size=2>Caribbean Basin
      and Central America </FONT></TD>
    <TD vAlign=bottom align=left width="1%"
      bgColor=#e6efff><FONT size=2>$</FONT></TD>
    <TD vAlign=bottom align=right width="12%" bgColor=#e6efff><FONT
      size=2>&nbsp;324,430 </FONT></TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
      bgColor=#e6efff><FONT size=2>$</FONT></TD>
    <TD vAlign=bottom align=right width="12%" bgColor=#e6efff style="border-right-style: none; border-right-width: medium"><FONT
      size=2>&nbsp;325,670 </FONT></TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" valign="bottom" >&nbsp;</TD>
    <TD vAlign=bottom align=left><FONT size=2>United States </FONT></TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%"><FONT size=2>67,491 </FONT></TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%" style="border-right-style: none; border-right-width: medium"><FONT size=2>83,264 </FONT></TD>
    <TD vAlign=bottom align=left width="2%" style="border-style: none; border-width: medium" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" valign="bottom" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    bgColor=#e6efff><FONT size=2>Canada and other </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="12%" bgColor=#e6efff><FONT size=2>22,617 </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-right-style:none; border-right-width:medium" vAlign=bottom align=right
    width="12%" bgColor=#e6efff><FONT size=2>27,582 </FONT></TD>
    <TD style="BORDER-BOTTOM: medium none #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" vAlign=bottom align=left
    width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" valign="bottom" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom
      align=left><FONT size=2>&nbsp; </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="1%" ><FONT size=2>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=right
    width="12%"><FONT size=2>&nbsp;414,538 </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="2%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="1%" ><FONT size=2>$</FONT></TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-right-style:none; border-right-width:medium" vAlign=bottom align=right
    width="12%"><FONT size=2>&nbsp;436,516 </FONT></TD>
    <TD style="BORDER-BOTTOM: medium none #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" vAlign=bottom align=left
    width="2%" >&nbsp;</TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD vAlign=bottom align=left  bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="1%"
    bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%"
    bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="2%"
    bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="1%"
    bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%"
    bgColor=#ffffff style="border-right-style: none; border-right-width: medium">&nbsp;</TD>
    <TD vAlign=bottom align=right width="2%"
    bgColor=#ffffff style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD vAlign=bottom align=left bgColor=#ffffff colSpan=3><FONT
      size=2>Goodwill and intangible assets relate to acquisitions located in
      the United States. </FONT></TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="12%" bgColor=#ffffff style="border-right-style: none; border-right-width: medium"><FONT
      size=2>&nbsp; </FONT></TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#ffffff style="border-style: none; border-width: medium">&nbsp;</TD></TR></TABLE>
<P align=justify><B>22. COMPARATIVE FIGURES:</B> </P>
<P align=justify>Certain comparative figures in the statement of earnings and
comprehensive income have been reclassified as described in note 1(a). In
addition, certain other comparative figures have been adjusted to conform to the
current year&#146;s presentation including the reclassification of a non-trade
accounts receivable balance of $6.3 million as at October 5, 2008 against
accounts payable and accrued liabilities for which the Company has the legal
right of offset and intends to settle on a net basis. </P>
<P align=right>GILDAN 2009 REPORT TO SHAREHOLDERS P.76</P>
<hr color="#000000" size="5">

</body>

</html>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.3
<SEQUENCE>4
<FILENAME>gildan120909exh993.htm
<TEXT>



<HTML>
<HEAD>
   <TITLE>Gildan Activewear Inc.: Exhibit 99.3 - Prepared by TNT Filings Inc.</TITLE>

</HEAD>

<BODY style="font-size:10pt;">

<div style="border-top-style: solid; border-top-width: 1; padding-top: 1">

<HR noshade size=5 color="black">
</div>
<!--$$/page=-->
<p align="right"><b>Exhibit 99.3</b><A name=page_1></A></p>
<p>
<IMG
src="gildan2.jpg" border=0 width="94" height="39"> </p>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD align=left >&nbsp;</TD>
    <TD align=left width="46%" nowrap><B>KPMG LLP</B> </TD>
    <TD width="17%" nowrap>
    <p style="margin-left: 65pt">Telephone </TD>
    <TD align=left width="17%" nowrap>(514) 840-2100 </TD></TR>
  <TR vAlign=top>
    <TD align=left >&nbsp;</TD>
    <TD align=left width="46%" nowrap><B>Chartered Accountants</B> </TD>
    <TD width="17%" nowrap>
    <p style="margin-left: 65pt">Fax </TD>
    <TD align=left width="17%" nowrap>(514) 840-2187 </TD></TR>
  <TR vAlign=top>
    <TD align=left >&nbsp;</TD>
    <TD align=left width="46%" nowrap>600 de Maisonneuve Blvd. West </TD>
    <TD width="17%" nowrap>
    <p style="margin-left: 65pt">Internet </TD>
    <TD align=left width="17%" nowrap>www.kpmg.ca </TD></TR>
  <TR vAlign=top>
    <TD align=left >&nbsp;</TD>
    <TD align=left width="46%" nowrap>Suite 1500 </TD>
    <TD align=left width="17%" nowrap>
    <p style="margin-left: 65pt">&nbsp; </TD>
    <TD align=left width="17%" nowrap>&nbsp; </TD></TR>
  <TR vAlign=top>
    <TD align=left >&nbsp;</TD>
    <TD align=left width="46%" nowrap>Montr&#233;al Qu&#233;bec H3A 0A3 </TD>
    <TD align=left width="17%">
    <p style="margin-left: 65pt">&nbsp; </TD>
    <TD align=left width="17%">&nbsp; </TD></TR></TABLE>
<P align=justify><B><font size="5">CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
</font>
</B></P>
<P align=justify>To the Board of Directors of<BR>Gildan Activewear Inc. <BR></P>
<P align=justify>We consent to the inclusion in this annual report on Form 40-F
of:</P>
<UL style="TEXT-ALIGN: justify">
  <LI>
  <p style="margin-top: 0; margin-bottom: 10">our Report of Independent Registered Public Accounting Firm dated December
  8, 2009 on the consolidated balance sheets of Gildan Activewear Inc. as at
  October 4, 2009 and October 5, 2008 and the consolidated statements of
  earnings and comprehensive income, shareholders&#146; equity and cash flows for the
  years ended October 4, 2009, October 5, 2008 and September 30, 2007
  <LI>
  <p style="margin-top: 0; margin-bottom: 10">our Report of Independent Registered Public Accounting Firm dated December
  8, 2009 on the Reconciliation to United States Generally Accepted Accounting
  Principles
  <LI>
  <p style="margin-top: 0; margin-bottom: 10">our Report of Independent Registered Public Accounting Firm dated December
  8, 2009 on the Company&#146;s internal control over financial reporting as of
  October 4, 2009 </LI></UL>
<P align=justify>each of which is contained in this annual report on Form 40-F
of Gildan Activewear Inc. for the fiscal year ended October 4, 2009. </P>
<font FACE="Times New Roman" SIZE="2"><u>/s/ KPMG LLP</u></font><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</u> <BR>
<P align=justify>Chartered Accountants </P>
<P align=justify>Montr&#233;al, Canada<BR> December 8, 2009 </P>
<P style="MARGIN-LEFT: 15%" align=justify><font size="1">KPMG LLP is a Canadian limited
liability partnership and a member firm of the KPMG network <BR>of independent
member firms affiliated with KPMG International, a Swiss cooperative. <BR>KPMG
Canada provides services to KPMG LLP.</font></P>
<hr noshade size="5" color="black">

</BODY>

</HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.4
<SEQUENCE>5
<FILENAME>gildan120809exh994.htm
<TEXT>



<HTML>
<HEAD>
   <TITLE>Gildan Activewear Inc.: Exhibit 99.4 - Prepared by TNT Filings Inc.</TITLE>

</HEAD>

<BODY style="font-size:10pt;">

<div style="border-top-style: solid; border-top-width: 1; padding-top: 1">

<HR noshade size=5 color="black">
</div>
<!--$$/page=--><A name=page_1></A>
<P style="MARGIN-LEFT: 10%" align=right><b>Exhibit 99.4</b></P>
<P style="MARGIN-LEFT: 10%" align=left>Supplementary Information of</P>
<P style="MARGIN-LEFT: 10%" align=left><B><font size="5">GILDAN ACTIVEWEAR INC.</font></B></P>
<P style="MARGIN-LEFT: 10%" align=left>Three years ended October 4, 2009</P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<!--$$/page=--><A name=page_2></A>
<IMG
src="gildan2.jpg" border=0 width="94" height="39"> <BR>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD align=left >&nbsp;</TD>
    <TD align=left width="46%"><B>KPMG LLP</B> </TD>
    <TD align=left width="17%">
    <p style="margin-left: 85pt">Telephone </TD>
    <TD align=left width="17%">(514) 840-2100 </TD></TR>
  <TR vAlign=top>
    <TD align=left >&nbsp;</TD>
    <TD align=left width="46%"><B>Chartered Accountants</B> </TD>
    <TD align=left width="17%">
    <p style="margin-left: 85pt">Fax </TD>
    <TD align=left width="17%">(514) 840-2187 </TD></TR>
  <TR vAlign=top>
    <TD align=left >&nbsp;</TD>
    <TD align=left width="46%">600 de Maisonneuve Blvd. West </TD>
    <TD align=left width="17%">
    <p style="margin-left: 85pt">Internet </TD>
    <TD align=left width="17%">www.kpmg.ca </TD></TR>
  <TR vAlign=top>
    <TD align=left >&nbsp;</TD>
    <TD align=left width="46%">Suite 1500 </TD>
    <TD align=left width="17%">
    <p style="margin-left: 65pt">&nbsp; </TD>
    <TD align=left width="17%">&nbsp; </TD></TR>
  <TR vAlign=top>
    <TD align=left >&nbsp;</TD>
    <TD align=left width="46%">Montr&#233;al Qu&#233;bec H3A 0A3 </TD>
    <TD align=left width="17%">
    <p style="margin-left: 65pt">&nbsp; </TD>
    <TD align=left width="17%">&nbsp; </TD></TR></TABLE>
<P align=left><B><font size="5"><br>
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING <BR>FIRM ON
RECONCILIATION TO UNITED STATES GAAP</font></B></P>
<P align=justify>To the Board of Directors of Gildan Activewear Inc.<BR></P>
<P align=justify>On December 8, 2009, we reported on the consolidated balance
sheets of Gildan Activewear Inc. (the "Company") as at October 4, 2009 and
October 5, 2008 and the consolidated statements of earnings and comprehensive
income, shareholders&#146; equity and cash flows for the years ended October 4, 2009,
October 5, 2008 and September 30, 2007, which are included in the annual report
on Form 40-F. In connection with our audits of the aforementioned consolidated
financial statements, we also have audited the related supplemental note
entitled "Reconciliation to United States GAAP" included in the Form 40-F. This
supplemental note is the responsibility of the Company's management. Our
responsibility is to express an opinion on this supplemental note based on our
audits.</P>
<P align=justify>In our opinion, such supplemental note, when considered in
relation to the basic consolidated financial statements taken as a whole,
presents fairly, in all material respects, the information set forth
therein.</P>
<font FACE="Times New Roman" SIZE="2">/<u>s/ KPMG LLP</u></font><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</u> <BR>
<P align=justify>Chartered Accountants<BR>Montr&#233;al, Canada<BR>December 8, 2009
<BR></P>
<P style="MARGIN-LEFT: 15%" align=justify><font style="font-size: 8pt">KPMG LLP is a Canadian limited
liability partnership and a member firm of the KPMG network <BR>of independent
member firms affiliated with KPMG International, a Swiss cooperative. <BR>KPMG
Canada provides services to KPMG LLP. </font> </P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<!--$$/page=--><A name=page_3></A>
<table border="0" cellpadding="0" cellspacing="0" style="border-collapse: collapse" bordercolor="#111111" width="100%">
  <tr>
    <td width="100%">&nbsp;</td>
  </tr>
  <tr>
    <td width="100%"><B><font size="5">GILDAN ACTIVEWEAR INC.</font></B></td>
  </tr>
  <tr>
    <td width="100%"><font size="2">Reconciliation to United
States GAAP</font></td>
  </tr>
  <tr>
    <td width="100%">&nbsp;</td>
  </tr>
  <tr>
    <td width="100%"><font size="2">Years ended October 4, 2009, October 5, 2008 and September 30,
2007 </font></td>
  </tr>
  <tr>
    <td width="100%">
    <div style="border-bottom-style: solid; border-bottom-width: 1">
      <font size="2">(Tabular amounts in thousands or thousands of US dollars, except per
share amounts)</font></div>
    </td>
  </tr>
</table>
<P align=justify><br>
The consolidated financial statements of the Company are
expressed in US dollars and are prepared in accordance with Canadian generally
accepted accounting principles ("GAAP"), which conform, in all material
respects, with those generally accepted in the United States, except as
described below: </P>
<P align=justify>(a) Consolidated statements of earnings: </P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR>
    <TD style="BORDER-BOTTOM: medium none #000000; " align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right
    width="10%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right
    width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right
    width="10%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right
    width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right
    width="10%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right
    width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: medium none #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" align=left width="5%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:none; border-left-width:medium" align=left><FONT
      size=2>&nbsp; </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="10%"><FONT
      size=2>2009 </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="10%"><FONT
      size=2>2008 </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="10%"><FONT
      size=2>2007 </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left width="5%" style="border-style: none; border-width: medium">&nbsp;</TD>
    <TD align=left style="border-left-style: none; border-left-width: medium"><FONT size=2>&nbsp; </FONT></TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=left width="10%"><FONT size=2>&nbsp; </FONT></TD>
    <TD align=left width="2%">&nbsp;</TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="10%"><FONT size=2>(recast (i)) </FONT></TD>
    <TD align=left width="2%">&nbsp;</TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="10%"><FONT size=2>(recast (i)) </FONT></TD>
    <TD align=left width="2%">&nbsp;</TD></TR>
  <TR>
    <TD align=left width="5%" style="border-style: none; border-width: medium">&nbsp;</TD>
    <TD align=left style="border-left-style: none; border-left-width: medium">&nbsp;</TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=left width="10%">&nbsp;</TD>
    <TD align=left width="2%">&nbsp;</TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="10%">&nbsp;</TD>
    <TD align=left width="2%">&nbsp;</TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="10%">&nbsp;</TD>
    <TD align=left width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left width="5%" style="border-style: none; border-width: medium">&nbsp;</TD>
    <TD align=left bgColor=#e6efff style="border-left-style: none; border-left-width: medium"><FONT size=2>Net earnings and comprehensive
      income as per Canadian GAAP </FONT></TD>
    <TD align=left width="1%" bgColor=#e6efff><FONT size=2>$</FONT></TD>
    <TD align=right width="10%" bgColor=#e6efff><FONT size=2>&nbsp;95,329
      </FONT></TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%" bgColor=#e6efff><FONT size=2>$</FONT></TD>
    <TD align=right width="10%" bgColor=#e6efff><FONT size=2>&nbsp;146,350
      </FONT></TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%" bgColor=#e6efff><FONT size=2>$</FONT></TD>
    <TD align=right width="10%" bgColor=#e6efff><FONT size=2>&nbsp;129,062
      </FONT></TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD></TR>
  <TR>
    <TD align=left width="5%" style="border-style: none; border-width: medium">&nbsp;</TD>
    <TD align=left bgColor=#ffffff style="border-left-style: none; border-left-width: medium">&nbsp;</TD>
    <TD align=left width="1%" bgColor=#ffffff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#ffffff>&nbsp;</TD>
    <TD align=left width="2%" bgColor=#ffffff>&nbsp;</TD>
    <TD align=left width="1%" bgColor=#ffffff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#ffffff>&nbsp;</TD>
    <TD align=left width="2%" bgColor=#ffffff>&nbsp;</TD>
    <TD align=left width="1%" bgColor=#ffffff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#ffffff>&nbsp;</TD>
    <TD align=left width="2%" bgColor=#ffffff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left width="5%" style="border-style: none; border-width: medium">&nbsp;</TD>
    <TD align=left style="border-left-style: none; border-left-width: medium"><FONT size=2>Adjustments: </FONT></TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=left width="10%"><FONT size=2>&nbsp; </FONT></TD>
    <TD align=left width="2%">&nbsp;</TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=left width="10%"><FONT size=2>&nbsp; </FONT></TD>
    <TD align=left width="2%">&nbsp;</TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=left width="10%"><FONT size=2>&nbsp; </FONT></TD>
    <TD align=left width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left width="5%" style="border-style: none; border-width: medium">&nbsp;</TD>
    <TD align=left bgColor=#e6efff style="border-left-style: none; border-left-width: medium"><FONT size=2>&nbsp; &nbsp; &nbsp; &nbsp;
      &nbsp; &nbsp; &nbsp;Swap revenue (ii) </FONT></TD>
    <TD align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff><FONT size=2>- </FONT></TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff><FONT size=2>- </FONT></TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff><FONT size=2>(29</FONT></TD>
    <TD align=left width="2%" bgColor=#e6efff>) </TD></TR>
  <TR vAlign=top>
    <TD align=left width="5%" style="border-style: none; border-width: medium">&nbsp;</TD>
    <TD align=left style="border-left-style: none; border-left-width: medium"><FONT size=2>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;
      &nbsp;Tax effect of above adjusments </FONT></TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="10%"><FONT size=2>- </FONT></TD>
    <TD align=left width="2%">&nbsp;</TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="10%"><FONT size=2>- </FONT></TD>
    <TD align=left width="2%">&nbsp;</TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="10%"><FONT size=2>9 </FONT></TD>
    <TD align=left width="2%">&nbsp;</TD></TR>
  <TR>
    <TD style="BORDER-BOTTOM: medium none #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" align=left width="5%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:none; border-left-width:medium" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
    width="10%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
    width="10%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
    width="10%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: medium none #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" align=left width="5%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-left-style:none; border-left-width:medium" align=left
      bgColor=#e6efff><FONT size=2>Net earnings and comprehensive income as per United States GAAP
      </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
    bgColor=#e6efff><FONT size=2>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right width="10%"
    bgColor=#e6efff><FONT size=2>&nbsp;95,329 </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
    bgColor=#e6efff><FONT size=2>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right width="10%"
    bgColor=#e6efff><FONT size=2>&nbsp;146,350 </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
    bgColor=#e6efff><FONT size=2>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right width="10%"
    bgColor=#e6efff><FONT size=2>&nbsp;129,042 </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD></TR>
  <TR>
    <TD align=left width="5%" style="border-style: none; border-width: medium">&nbsp;</TD>
    <TD align=left bgColor=#ffffff style="border-left-style: none; border-left-width: medium">&nbsp;</TD>
    <TD align=left width="1%" bgColor=#ffffff>&nbsp;</TD>
    <TD align=left width="10%" bgColor=#ffffff>&nbsp;</TD>
    <TD align=left width="2%" bgColor=#ffffff>&nbsp;</TD>
    <TD align=left width="1%" bgColor=#ffffff>&nbsp;</TD>
    <TD align=left width="10%" bgColor=#ffffff>&nbsp;</TD>
    <TD align=left width="2%" bgColor=#ffffff>&nbsp;</TD>
    <TD align=left width="1%" bgColor=#ffffff>&nbsp;</TD>
    <TD align=left width="10%" bgColor=#ffffff>&nbsp;</TD>
    <TD align=left width="2%" bgColor=#ffffff>&nbsp;</TD></TR>
  <TR>
    <TD style="BORDER-BOTTOM: medium none #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" align=left width="5%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-left-style:none; border-left-width:medium" align=left
    bgColor=#ffffff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
    bgColor=#ffffff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="10%"
    bgColor=#ffffff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="2%"
    bgColor=#ffffff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
    bgColor=#ffffff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="10%"
    bgColor=#ffffff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="2%"
    bgColor=#ffffff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
    bgColor=#ffffff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="10%"
    bgColor=#ffffff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="2%"
    bgColor=#ffffff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: medium none #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" align=left width="5%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:none; border-left-width:medium" align=left
      bgColor=#ffffff><FONT size=2>&nbsp; </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    bgColor=#ffffff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="10%"
    bgColor=#ffffff><FONT size=2>2009 </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    bgColor=#ffffff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    bgColor=#ffffff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="10%"
    bgColor=#ffffff><FONT size=2>2008 </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    bgColor=#ffffff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    bgColor=#ffffff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="10%"
    bgColor=#ffffff><FONT size=2>2007 </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    bgColor=#ffffff>&nbsp;</TD></TR>
  <TR>
    <TD align=left width="5%" style="border-style: none; border-width: medium">&nbsp;</TD>
    <TD align=left bgColor=#ffffff style="border-left-style: none; border-left-width: medium">&nbsp;</TD>
    <TD align=left width="1%" bgColor=#ffffff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#ffffff>&nbsp;</TD>
    <TD align=left width="2%" bgColor=#ffffff>&nbsp;</TD>
    <TD align=left width="1%" bgColor=#ffffff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#ffffff>&nbsp;</TD>
    <TD align=left width="2%" bgColor=#ffffff>&nbsp;</TD>
    <TD align=left width="1%" bgColor=#ffffff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#ffffff>&nbsp;</TD>
    <TD align=left width="2%" bgColor=#ffffff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left width="5%" style="border-style: none; border-width: medium">&nbsp;</TD>
    <TD align=left bgColor=#e6efff style="border-left-style: none; border-left-width: medium"><FONT size=2>Earnings per share as per
      United States GAAP: </FONT></TD>
    <TD align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="10%" bgColor=#e6efff><FONT size=2>&nbsp; </FONT></TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="10%" bgColor=#e6efff><FONT size=2>&nbsp; </FONT></TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="10%" bgColor=#e6efff><FONT size=2>&nbsp; </FONT></TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left width="5%" style="border-style: none; border-width: medium">&nbsp;</TD>
    <TD align=left style="border-left-style: none; border-left-width: medium"><FONT size=2>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;
      &nbsp;Basic </FONT></TD>
    <TD align=left width="1%"><FONT size=2>$</FONT></TD>
    <TD align=right width="10%"><FONT size=2>&nbsp;0.79 </FONT></TD>
    <TD align=left width="2%">&nbsp;</TD>
    <TD align=left width="1%"><FONT size=2>$</FONT></TD>
    <TD align=right width="10%"><FONT size=2>&nbsp;1.21 </FONT></TD>
    <TD align=left width="2%">&nbsp;</TD>
    <TD align=left width="1%"><FONT size=2>$</FONT></TD>
    <TD align=right width="10%"><FONT size=2>&nbsp;1.07 </FONT></TD>
    <TD align=left width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left width="5%" style="border-style: none; border-width: medium">&nbsp;</TD>
    <TD align=left bgColor=#e6efff style="border-left-style: none; border-left-width: medium"><FONT size=2>&nbsp; &nbsp; &nbsp; &nbsp;
      &nbsp; &nbsp; &nbsp;Diluted </FONT></TD>
    <TD align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff><FONT size=2>0.79 </FONT></TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff><FONT size=2>1.20 </FONT></TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff><FONT size=2>1.06 </FONT></TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD></TR>
  <TR>
    <TD align=left width="5%" style="border-style: none; border-width: medium">&nbsp;</TD>
    <TD align=left bgColor=#ffffff style="border-left-style: none; border-left-width: medium">&nbsp;</TD>
    <TD align=left width="1%" bgColor=#ffffff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#ffffff>&nbsp;</TD>
    <TD align=left width="2%" bgColor=#ffffff>&nbsp;</TD>
    <TD align=left width="1%" bgColor=#ffffff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#ffffff>&nbsp;</TD>
    <TD align=left width="2%" bgColor=#ffffff>&nbsp;</TD>
    <TD align=left width="1%" bgColor=#ffffff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#ffffff>&nbsp;</TD>
    <TD align=left width="2%" bgColor=#ffffff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left width="5%" style="border-style: none; border-width: medium">&nbsp;</TD>
    <TD align=left style="border-left-style: none; border-left-width: medium"><FONT size=2>Weighted average number of common shares outstanding
      </FONT></TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=left width="10%">&nbsp;</TD>
    <TD align=left width="2%">&nbsp;</TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=left width="10%">&nbsp;</TD>
    <TD align=left width="2%">&nbsp;</TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=left width="10%">&nbsp;</TD>
    <TD align=left width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left width="5%" style="border-style: none; border-width: medium">&nbsp;</TD>
    <TD align=left bgColor=#e6efff style="border-left-style: none; border-left-width: medium"><FONT size=2>&nbsp; &nbsp; &nbsp; &nbsp;
      &nbsp; &nbsp; &nbsp;Basic </FONT></TD>
    <TD align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff><FONT size=2>120,811
</FONT></TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff><FONT size=2>120,479
</FONT></TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff><FONT size=2>120,340
</FONT></TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left width="5%" style="border-style: none; border-width: medium">&nbsp;</TD>
    <TD align=left style="border-left-style: none; border-left-width: medium"><FONT size=2>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;
      &nbsp;Diluted </FONT></TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="10%"><FONT size=2>121,435 </FONT></TD>
    <TD align=left width="2%">&nbsp;</TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="10%"><FONT size=2>121,622 </FONT></TD>
    <TD align=left width="2%">&nbsp;</TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="10%"><FONT size=2>121,538 </FONT></TD>
    <TD align=left width="2%">&nbsp;</TD></TR>
  <TR>
    <TD style="BORDER-BOTTOM: medium none #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" align=left width="5%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-left-style:none; border-left-width:medium" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right
    width="10%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left
    width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right
    width="10%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left
    width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right
    width="10%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left
    width="2%">&nbsp;</TD></TR></TABLE>
<P align=center>P.1</P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
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<table border="0" cellpadding="0" cellspacing="0" style="border-collapse: collapse" bordercolor="#111111" width="100%">
  <tr>
    <td width="100%">&nbsp;</td>
  </tr>
  <tr>
    <td width="100%"><B><font size="5">GILDAN ACTIVEWEAR INC.</font></B></td>
  </tr>
  <tr>
    <td width="100%"><font size="2">Reconciliation to United
States GAAP</font></td>
  </tr>
  <tr>
    <td width="100%">&nbsp;</td>
  </tr>
  <tr>
    <td width="100%"><font size="2">Years ended October 4, 2009, October 5, 2008 and September 30,
2007 </font></td>
  </tr>
  <tr>
    <td width="100%">
    <div style="border-bottom-style: solid; border-bottom-width: 1">
      <font size="2">(Tabular amounts in thousands or thousands of US dollars, except per
share amounts)</font></div>
    </td>
  </tr>
</table>
</A>
<p align="justify">&nbsp;</p>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0 BCLLIST>

  <TR>
    <TD vAlign=top width="5%">(a) </TD>
    <TD colSpan=2>
      <P align=justify>Consolidated statements of earnings
(continued):</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD vAlign=top width="5%">(i) </TD>
    <TD>
      <P align=justify>Adoption of CICA Handbook Section 3064</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD width="5%"></TD>
    <TD>
      <P align=justify>In February 2008, Canada&#146;s Accounting Standards Board
      (AcSB) issued Canadian Institute of Chartered Accountants (CICA) issued
      Handbook Section 3064, <I>Goodwill and Intangible Assets</I>, replacing
      Section 3062, <I>Goodwill and Other Intangible Assets</I>, and Section
      3450, <I>Research and Development Costs</I>. Section 3064 establishes
      revised standards for the recognition, measurement, presentation and
      disclosure of goodwill and intangible assets. The new Section also
      provides guidance for the treatment of preproduction and start-up costs
      and requires that these costs be expensed as incurred. Prior to the
      adoption of Section 3064, the Company deferred and amortized plant
      start-up costs on a straight-line basis over two years under Canadian
      GAAP. This Section applies to annual financial statements relating to the
      Company&#146;s fiscal year beginning on October 6, 2008 and has been adopted on
      a retrospective basis effective from the first quarter of fiscal 2009. The
      impact of adopting this Section, on a retrospective basis, was an increase
      of $1.8 million (increase of $0.01 per share on a basic and diluted basis)
      and a decrease of $1.0 million (decrease of $0.01 per share on a basic and
      diluted basis) in net earnings under Canadian GAAP for the years ended
      October 5, 2008 and September 30, 2007, respectively. The adoption of this
      Section also resulted in a decrease of $2.5 million in shareholders&#146;
      equity at October 1, 2007 under Canadian GAAP. United States GAAP requires
      preproduction and start-up costs to be expensed as incurred. The adoption
      of this Section on a retroactive basis eliminates the difference that
      existed for the accounting of start-up costs between Canadian GAAP and
      United States GAAP.</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD vAlign=top width="5%">(ii) </TD>
    <TD>
      <P align=justify>Swap revenue</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD width="5%"></TD>
    <TD>
      <P align=justify>Under Canadian GAAP, the Company was using hedge
      accounting for certain derivative instruments. The gain realized on
      cancellation of a cross-currency interest rate swap arrangement was
      deferred, and was being amortized over the term of the related debt. Under
      United States GAAP, the Company had not designated the derivative
      instrument in a hedging relationship and, consequently, upon cancellation
      of the instrument, the Company recognized the gain immediately into
      earnings.</P></TD></TR></TABLE>
<P align=center>P.2</P>
<hr color="#000000" size="5">

</BODY>

</HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.5
<SEQUENCE>6
<FILENAME>gildan121009exh995.htm
<TEXT>
<html>

<head>

<title>Gildan Activewear Inc.: Exhibit 99.5 - 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="right">
<B><font size="2">Exhibit 99.5</font></B></P>

<P align="center">
<B><font size="2">CERTIFICATION </font></B><font size="2"><BR>
<B>REQUIRED BY RULE 13a-14(a)</B><BR>
<B>OR RULE 15d-14(a) </B></font>
</P>

<P align="justify">
<font size="2">I, Glenn J. Chamandy, certify that:</font></P>
<TABLE BCLLIST style="font-size:10pt;border-color:black;border-collapse:collapse;" cellpadding="0" cellspacing="0" width="100%" border="0">
<TR>
	<TD width=5% valign=top>
1. 	</TD>
	<TD colspan=2>
<P align="justify">I have reviewed this annual report on Form 40-F/A of Gildan Activewear Inc.;</P>
	</TD>
</TR>
<TR><TD>&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD></TR><TR>
	<TD width=5% valign=top>
2. 	</TD>
	<TD colspan=2>
<P align="justify">Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were
made, not misleading with respect to the period covered by this report;</P>
	</TD>
</TR>
<TR><TD>&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD></TR><TR>
	<TD width=5% valign=top>
3. 	</TD>
	<TD colspan=2>
<P align="justify">Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the issuer as of,
and for, the periods presented in this report;</P>
	</TD>
</TR>
<TR><TD>&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD></TR><TR>
	<TD width=5% valign=top>
4. 	</TD>
	<TD colspan=2>
<P align="justify">The issuer&#146;s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial
reporting (as defined in Exchange Act Rules 13(a) &#150; 15(f) and 15(d) &#150; 15(f)) for the issuer and have:</P>
	</TD>
</TR>
<TR><TD>&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD></TR><TR>
<TD width=5%></TD>	<TD width=5% valign=top>
(a) 	</TD>
	<TD>
<P align="justify">Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the issuer, including its consolidated
subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;</P>
	</TD>
</TR>
<TR><TD>&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD></TR><TR>
<TD width=5%></TD>	<TD width=5% valign=top>
(b) 	</TD>
	<TD>
<P align="justify">Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial
reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;</P>
	</TD>
</TR>
<TR><TD>&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD></TR><TR>
<TD width=5%></TD>	<TD width=5% valign=top>
(c) 	</TD>
	<TD>
<P align="justify">Evaluated the effectiveness of the issuer&#146;s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period
covered by this report based on such evaluation; and</P>
	</TD>
</TR>
<TR><TD>&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD></TR><TR>
<TD width=5%></TD>	<TD width=5% valign=top>
(d) 	</TD>
	<TD>
<P align="justify">Disclosed in this report any change in the issuer&#146;s internal control over financial reporting that occurred during the period covered by the annual report that has materially affected, or is reasonably likely to materially
affect, the issuer&#146;s internal control over financial reporting; and</P>
	</TD>
</TR>
<TD>&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD><TR>
	<TD width=5% valign=top>
5. 	</TD>
	<TD colspan=2>
<P align="justify">The issuer&#146;s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the issuer&#146;s auditors and the audit committee of the issuer&#146;s board of
directors (or persons performing the equivalent functions):</P>
	</TD>
</TR>
<TR><TD>&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD></TR><TR>
<TD width=5%></TD>	<TD width=5% valign=top>
(a) 	</TD>
	<TD>
<P align="justify">All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the issuer&#146;s ability to record, process, summarize
and report financial information; and</P>
	</TD>
</TR>
<TR><TD>&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD></TR><TR>
<TD width=5%></TD>	<TD width=5% valign=top>
(b) 	</TD>
	<TD>
<P align="justify">Any fraud, whether or not material, that involves management or other employees who have a significant role in the issuer&#146;s internal control over financial reporting.</P>
	</TD>
</TR>
</TABLE>
<P align="justify">
<font size="2">Date: December 11, 2009</font></P>
<TABLE style="font-size:10pt;border-color:black;border-collapse:collapse;" cellpadding="0" cellspacing="0" width="100%" border="0"><TR valign="top">
	<TD align=left width="700">
&nbsp;</TD>
	<TD width=701 align=left>
<u><font size="2">/s/ <I>Glenn J. Chamandy</I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</font></u><BR>
	</TD>
</TR>
  <TR valign="top">
	<TD align=left width="700">
Name:
	</TD>
	<TD width=701 align=left>
Glenn J. Chamandy
	</TD>
</TR>
<TR valign="top">
	<TD align=left width="700">
Title:
	</TD>
	<TD width=701 align=left>
President and Chief Executive Officer
	</TD>
</TR>
</TABLE>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black noShade SIZE=5>

<P align="center">
<B><font size="2">CERTIFICATION </font> </B><font size="2"><BR>
<B>REQUIRED BY RULE 13a-14(a)</B><BR>
<B>OR RULE 15d-14(a) </B></font>
</P>

<P align="justify">
<font size="2">I, Laurence G. Sellyn, certify that:</font><BR>
</P>
<TABLE BCLLIST style="font-size:10pt;border-color:black;border-collapse:collapse;" cellpadding="0" cellspacing="0" width="100%" border="0">
<TR>
	<TD width=5% valign=top>
1. 	</TD>
	<TD colspan=2>
<P align="justify">I have reviewed this annual report on Form 40-F/A of Gildan Activewear Inc.;</P>
	</TD>
</TR>
<TR><TD>&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD></TR><TR>
	<TD width=5% valign=top>
2. 	</TD>
	<TD colspan=2>
<P align="justify">Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were
made, not misleading with respect to the period covered by this report;</P>
	</TD>
</TR>
<TR><TD>&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD></TR><TR>
	<TD width=5% valign=top>
3. 	</TD>
	<TD colspan=2>
<P align="justify">Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the issuer as of,
and for, the periods presented in this report;</P>
	</TD>
</TR>
<TR><TD>&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD></TR><TR>
	<TD width=5% valign=top>
4. 	</TD>
	<TD colspan=2>
<P align="justify">The issuer&#146;s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial
reporting (as defined in Exchange Act Rules 13(a) &#150; 15(f) and 15(d) &#150; 15(f)) for the issuer and have:</P>
	</TD>
</TR>
<TR><TD>&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD></TR><TR>
<TD width=5%></TD>	<TD width=5% valign=top>
(a) 	</TD>
	<TD>
<P align="justify">Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the issuer, including its consolidated
subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;</P>
	</TD>
</TR>
<TR><TD>&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD></TR><TR>
<TD width=5%></TD>	<TD width=5% valign=top>
(b) 	</TD>
	<TD>
<P align="justify">Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial
reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;</P>
	</TD>
</TR>
<TR><TD>&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD></TR><TR>
<TD width=5%></TD>	<TD width=5% valign=top>
(c) 	</TD>
	<TD>
<P align="justify">Evaluated the effectiveness of the issuer&#146;s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period
covered by this report based on such evaluation; and</P>
	</TD>
</TR>
<TR><TD>&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD></TR><TR>
<TD width=5%></TD>	<TD width=5% valign=top>
(d) 	</TD>
	<TD>
<P align="justify">Disclosed in this report any change in the issuer&#146;s internal control over financial reporting that occurred during the period covered by the annual report that has materially affected, or is reasonably likely to materially
affect, the issuer&#146;s internal control over financial reporting; and</P>
	</TD>
</TR>
<TD>&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD><TR>
	<TD width=5% valign=top>
5. 	</TD>
	<TD colspan=2>
<P align="justify">The issuer&#146;s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the issuer&#146;s auditors and the audit committee of the issuer&#146;s board of
directors (or persons performing the equivalent functions):</P>
	</TD>
</TR>
<TR><TD>&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD></TR><TR>
<TD width=5%></TD>	<TD width=5% valign=top>
(a) 	</TD>
	<TD>
<P align="justify">All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the issuer&#146;s ability to record, process, summarize
and report financial information; and</P>
	</TD>
</TR>
<TR><TD>&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD></TR><TR>
<TD width=5%></TD>	<TD width=5% valign=top>
(b) 	</TD>
	<TD>
<P align="justify">Any fraud, whether or not material, that involves management or other employees who have a significant role in the issuer&#146;s internal control over financial reporting.</P>
	</TD>
</TR>
</TABLE>
<P align="justify">
<font size="2">Date: December 11, 2009</font></P>
<P align="justify" style="margin-left: 50%">
<font size="2"><u>/s/ <I>Laurence G. Sellyn&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </I></u><BR>
Name: Laurence G. Sellyn <BR>
Title: Executive Vice-President, Chief Financial and<BR>
Administrative Officer </font>
</P>
<hr color="#000000" size="5">

</body>

</html>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.6
<SEQUENCE>7
<FILENAME>gildan121009exh996.htm
<TEXT>
<html>

<head>

<title>Gildan Activewear Inc.: Exhibit 99.6 - 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=right><B><font size="2">Exhibit 99.6</font></B></P>
<P align=center><B><font size="2">CERTIFICATION <br>
REQUIRED BY RULE 13a-14(b) OR RULE 15d-14(b) AND <br>
SECTION
1350 OF CHAPTER 63 OF TITLE 18 <br>
OF THE UNITED STATES CODE </font> </B></P>
<P align=justify><font size="2">Gildan Activewear Inc. (the &#147;Corporation&#148;) is filing its annual
report on Form 40-F/A for the fiscal year ended October 4, 2009 (the &#147;Report&#148;)
with the United States Securities and Exchange Commission. </font> </P>
<P align=justify><font size="2">I, Glenn J. Chamandy, President and Chief Executive Officer of
the Corporation, certify, pursuant to 18 U.S.C. section 1350, as enacted
pursuant to section 906 of the Sarbanes-Oxley Act of 2002, that, to the best of
my knowledge: </font> </P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD align=left width="5%" >1. </TD>
    <TD align=left width="96%">The
      Report fully complies with the requirements of Section 13(a) or 15(d) of
      the U.S. Securities Exchange Act of 1934; and </TD></TR>
  <TR vAlign=top>
    <TD align=left width="5%" >&nbsp;</TD>
    <TD align=left width="96%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left width="5%" >2. </TD>
    <TD align=left width="96%">The
      information contained in the Report fairly presents, in all material
      respects, the financial condition and results of operations of the
      Corporation. </TD></TR>
  <TR vAlign=top>
    <TD align=left width="5%" >&nbsp; </TD>
    <TD align=left width="96%"></TD></TR>
  </TABLE>
<p><font size="2">Dated: December 11, 2009</font></p>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: medium none #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" align=left width="96%">
    <p style="margin-left: 50%"><u>/s/ <I>Glenn J. Chamandy</I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    </u> </TD></TR>
  <TR vAlign=top>
    <TD align=left width="48%" style="border-style: none; border-width: medium">
    <p style="margin-left: 50%">Name: Glenn J. Chamandy </TD>
    </TR>
  <TR vAlign=top>
    <TD align=left width="48%" style="border-top-style: none; border-top-width: medium">
    <p style="margin-left: 50%">Title: President and Chief Executive
      Officer </TD>
    </TR></TABLE>
<p><BR>
</p>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>



<A name="page_19"></A>

<P align="center">
<B><font size="2">CERTIFICATION <br>
REQUIRED BY RULE 13a-14(b) OR RULE 15d-14(b) AND <br>
SECTION 1350 OF CHAPTER 63 OF TITLE 18 <br>
OF THE UNITED STATES CODE </font> </B></P>
<P align="justify">
<font size="2">Gildan Activewear Inc. (the &#147;Corporation&#148;) is filing its annual report on Form 40-F/A for the fiscal year ended October 4, 2009 (the &#147;Report&#148;) with the United States Securities and Exchange Commission.
</font> </P>
<P align="justify">
<font size="2">I, Laurence G. Sellyn, Executive Vice-President, Finance and Chief Financial Officer of the Corporation, certify, pursuant to 18 U.S.C. section 1350, as enacted pursuant to section 906 of the Sarbanes-Oxley Act of 2002, that, to the best of my
knowledge: </font> </P>
<TABLE BCLLIST style="font-size:10pt;border-color:black;border-collapse:collapse;" cellpadding="0" cellspacing="0" width="100%" border="0">
<TR>
	<TD width=5% valign=top>
1. 	</TD>
	<TD>
<P align="justify">The Report fully complies with the requirements of Section 13(a) or 15(d) of the U.S. Securities Exchange Act of 1934; and</P>
	</TD>
</TR>
<TR><TD>&nbsp;</TD><TD>&nbsp;</TD></TR><TR>
	<TD width=5% valign=top>
2. 	</TD>
	<TD>
<P align="justify">The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Corporation.</P>
	</TD>
</TR>
</TABLE>
<P align="justify">
<font size="2">Dated: December 11, 2009</font></P>
<P align="left" style="margin-left: 50%">
<font size="2"><u>/s/ <I>Laurence G. Sellyn</I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;   <BR>
</u>Name: Laurence G. Sellyn <BR>
Title: Executive Vice-President, Chief Financial and
Administrative Officer <BR>
</font>
</P>

<hr color="#000000" size="5">

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</html>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>GRAPHIC
<SEQUENCE>8
<FILENAME>logo.jpg
<TEXT>
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`
end
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
-----END PRIVACY-ENHANCED MESSAGE-----
