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<SEC-DOCUMENT>0000950123-10-111175.txt : 20101206
<SEC-HEADER>0000950123-10-111175.hdr.sgml : 20101206
<ACCEPTANCE-DATETIME>20101206163441
ACCESSION NUMBER:		0000950123-10-111175
CONFORMED SUBMISSION TYPE:	40-F
PUBLIC DOCUMENT COUNT:		15
CONFORMED PERIOD OF REPORT:	20101206
FILED AS OF DATE:		20101206
DATE AS OF CHANGE:		20101206

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
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-14830
		FILM NUMBER:		101234579

	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
<SEQUENCE>1
<FILENAME>n66662e40vf.htm
<DESCRIPTION>40-F
<TEXT>
<HTML>
<HEAD>
<TITLE>e40vf</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
<!-- PAGEBREAK -->
<DIV style="font-family: Helvetica,Arial,sans-serif">


<DIV style="width: 100%; border-bottom: 2pt solid black; font-size: 1pt">&nbsp;</DIV>
<DIV style="width: 100%; border-bottom: 1pt solid black; font-size: 1pt">&nbsp;</DIV>




<DIV align="center" style="font-size: 14pt; margin-top: 12pt"><B>SECURITIES AND EXCHANGE COMMISSION</B>
</DIV>

<DIV align="center" style="font-size: 12pt"><B>Washington, D.C. 20549</B>
</DIV>

<DIV align="center" style="font-size: 18pt; margin-top: 12pt"><B>FORM 40-F</B>
</DIV>

<DIV align="center">
<TABLE cellspacing="0" border="0" cellpadding="0" width="100%" style="font-size: 12pt">
<TR style="font-size: 6pt">
    <TD width="7%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="88%">&nbsp;</TD>
</TR>
<TR valign="top">
    <TD align="center"><FONT face="Wingdings">&#111;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><B>Registration statement pursuant to Section&nbsp;12 of the Securities Exchange Act of 1934</B></TD>
</TR>
</TABLE>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 12pt"><B>or</B></DIV>

<DIV align="center">
<TABLE cellspacing="0" border="0" cellpadding="0" width="100%" style="font-size: 12pt">
<TR style="font-size: 6pt">
    <TD width="7%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="88%">&nbsp;</TD>
</TR>
<TR valign="top">
    <TD align="center"><FONT face="Wingdings">&#254;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><B>Annual report pursuant to Section&nbsp;13(a) or 15(d) of the Securities Exchange Act of 1934</B></TD>
</TR>
</TABLE>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="40%"></TD>
    <TD width="5%"></TD>
    <TD width="20%"></TD>
    <TD width="5%"></TD>
    <TD width="30%"></TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom"><!-- Blank Space -->
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top"><!-- xbrl,dc --><B>For Fiscal year ended: October&nbsp;3, 2010</B>
<!-- /xbrl,dc --></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;
</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top"><B>Commission File number: 01-14830</B></TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="center" style="font-size: 24pt; margin-top: 12pt"><B>GILDAN ACTIVEWEAR INC.</B>
</DIV>

<DIV align="center" style="font-size: 10pt"><I>(Exact name of registrant as specified in its charter)</I></DIV>



<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>Canada</B><BR>
<I>(Province or other jurisdiction of incorporation or organization)</I>
</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>2200, 2250, 2300</B><BR>
<I>(Primary standard industrial classification code number, if applicable)</I>
</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>Not Applicable</B><BR>
<I>(I.R.S. employer identification number, if applicable)</I>
</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>600 de Maisonneuve Boulevard West, Montreal, Quebec, Canada H3A 3J2, (514)&nbsp;735-2023</B><BR>
<I>(Address and telephone number of registrant&#146;s principal executive office)</I>
</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>Puglisi &#038; Associates, 850 Library Avenue, Suite&nbsp;204, P.O. Box 885, Newark, Delaware 19715, (302)&nbsp;738-6680</B><BR>
(<I>Name, address and telephone number of agent for service in the United States</I>)
</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt">Securities registered pursuant to Section 12(b) of the Act:
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="47%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="47%">&nbsp;</TD>
</TR>
<TR></TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="font-size: 8pt">
    <TD align="center" valign="top">Title of each class
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">Name of each exchange on which registered</TD>
</TR>
<TR style="font-size: 1px">
    <TD align="center" valign="top" style="border-top: 1px solid #000000">&nbsp;
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top"><B>Common Shares</B>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><B>New York Stock Exchange</B></TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt">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;<B>None</B><BR>
Securities for which there is a reporting obligation pursuant to Section 15(d) of the Act:&nbsp;&nbsp;&nbsp;&nbsp;<B>None</B>
</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt">For annual reports, indicate by check mark the information filed with this form:
</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><FONT style="font-family: Wingdings">&#254;</FONT> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Annual Information Form &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT style="font-family: Wingdings">&#254;</FONT> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Audited Annual Financial Statements
</DIV>
<DIV align="center" style="font-size: 10pt; margin-top: 12pt">Indicate the number of outstanding shares of each of the issuer&#146;s classes of capital or common stock as of the close of the period covered by the annual report:</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 12pt"><B>Common Shares:<BR>
121, 351, 998</B></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Indicate by check mark whether the Registrant by filing the information contained in this Form is
also thereby furnishing the information to the Commission pursuant to Rule&nbsp;12g3-2(b) under the
Securities Exchange Act of 1934 (the &#147;Exchange Act&#148;). If &#147;Yes&#148; is marked, indicate the file number
assigned to the Registrant in connection with such Rule.
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 12pt">Yes <FONT style="font-family: Wingdings">&#111;</FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;No <FONT style="font-family: Wingdings">&#254;</FONT></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Indicate by check mark whether the Registrant: (1)&nbsp;has filed all reports required to be filed by
Section&nbsp;13 or 15(d) of the Exchange Act during the preceding 12&nbsp;months (or for such shorter period
that the registrant was required to file such reports); and (2)&nbsp;has been subject to such filing
requirements for the past 90&nbsp;days.
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 12pt">Yes <FONT style="font-family: Wingdings">&#254;</FONT> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;No <FONT style="font-family: Wingdings">&#111;</FONT></DIV>



<DIV style="width: 100%; border-bottom: 1pt solid black; margin-top: 10pt; font-size: 1pt">&nbsp;</DIV>
<DIV style="width: 100%; border-bottom: 2pt solid black; font-size: 1pt">&nbsp;</DIV>





<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>
<DIV style="font-family: Helvetica,Arial,sans-serif">


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><IMG src="n66662n6666201.gif" alt="(GILDAN LOGO)">
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>GILDAN ACTIVEWEAR INC.</B>
</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>ANNUAL INFORMATION FORM</B>
</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt">for the year ended October&nbsp;3, 2010
</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt">December&nbsp;6, 2010
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: Helvetica,Arial,sans-serif">

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>GILDAN ACTIVEWEAR INC.</B>
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>2010 ANNUAL INFORMATION FORM</B>
</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>TABLE OF CONTENTS</B>
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="3%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="84%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Page</B></TD>

</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>1.</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>CORPORATE STRUCTURE</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>1.1 Name, Address and Incorporation</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>1</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>1.2 Intercorporate Relationships</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>2</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>2.</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>GENERAL DEVELOPMENT OF THE BUSINESS</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>2.1 Recent Developments</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>2</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>2.2 Developments in Fiscal 2010</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>3</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>2.3 Developments in Fiscal 2009</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>4</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>2.4 Developments in Fiscal 2008</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>5</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>3.</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>DESCRIPTION OF THE BUSINESS</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>3.1 Business Overview</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>6</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>3.2 Risk Factors</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>15</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>3.3 Employees</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>15</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>4.</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>DIVIDEND POLICY</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>15</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>5.</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>CAPITAL STRUCTURE</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>15</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>6.</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>MARKET FOR SECURITIES</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>17</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>7.</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>DIRECTORS AND OFFICERS</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>18</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>8.</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>AUDIT COMMITTEE DISCLOSURE</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>21</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>9.</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>LEGAL PROCEEDINGS</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>23</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>10.</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>TRANSFER AGENT AND REGISTRAR</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>24</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>11.</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>MATERIAL CONTRACTS</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>25</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>12.</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>INTERESTS OF EXPERTS</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>25</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>13.</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>FORWARD-LOOKING STATEMENTS</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>25</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>14.</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>ADDITIONAL INFORMATION</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>26</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD colspan="3" align="left"><B>APPENDIX A &#151; MANDATE OF THE AUDIT AND FINANCE COMMITTEE</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>27</B></TD>
    <TD>&nbsp;</TD>
</TR>
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</TABLE>
</DIV>



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<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><I>This Annual Information Form is dated December&nbsp;6, 2010 and, except as otherwise indicated, the
information contained herein is given as of December&nbsp;6, 2010.</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><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>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><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>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><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>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><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>
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><I>Audited Consolidated Financial Statements as at and for the year ended October
3, 2010 (the &#147;2010 Financial Statements&#148;);</I></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><I>Management&#146;s Discussion and Analysis for the year ended October&nbsp;3, 2010 (the
&#147;2010 Annual MD&#038;A&#148;); and</I></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><I>2009 Notice of Annual Meeting of Shareholders and Management Proxy Circular
(the &#147;Circular&#148;).</I></TD>
</TR>

</TABLE>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><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/corporate.</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><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 25 and 26 of this Annual Information Form for further
explanation.</I>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>1. CORPORATE STRUCTURE</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>1.1 Name, Address and Incorporation</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">We were incorporated on May&nbsp;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&nbsp;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.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">In June&nbsp;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&nbsp;17, 1998, we completed our
initial public offering of an aggregate of 3,000,000 Class&nbsp;A Subordinate Voting shares at Cdn$10.29
per share, on a pre-split basis, for total gross proceeds of Cdn$30,880,500.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">On February&nbsp;2, 2005, we filed Articles of Amendment in order to, among other things, (i)&nbsp;create a
new class of common shares (the &#147;Common Shares&#148;), (ii)&nbsp;change each of the issued and outstanding
Class&nbsp;A Subordinate Voting shares into one of the newly-created Common Shares, and (iii)&nbsp;remove the
Class&nbsp;B Multiple Voting shares and the Class&nbsp;A Subordinate Voting shares as well as the rights,
privileges, restrictions and conditions attaching thereto.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Our principal executive offices and registered office are located at 600 de Maisonneuve Boulevard
West, 33<SUP style="FONT-size: 85%; vertical-align: text-top">rd</SUP> Floor, Montreal, Qu&#233;bec, Canada H3A 3J2, and our telephone number at that
address is (514)&nbsp;735-2023.
</DIV>






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<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>1.2 Intercorporate Relationships</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">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:
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="76%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Percentage of Voting Securities or</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Partnership Interests that Gildan</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>held as at</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center"><B>Subsidiary</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Jurisdiction of Incorporation</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>December 6, 2010</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Gildan Activewear SRL</DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center">Barbados</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">100</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Gildan USA Inc.</DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" nowrap align="center">Delaware</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">100</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Gildan Choloma Textiles, S. de R.L.</DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" nowrap align="center">Honduras</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">100</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Gildan Activewear Dominican Republic Textile Company Inc.</DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" nowrap align="center">Barbados</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">100</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Gildan Activewear Honduras Textiles Company, S. de R.L.</DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" nowrap align="center">Honduras</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">100</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Gildan Honduras Hosiery Factory, S. de R.L.</DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" nowrap align="center">Honduras</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">100</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Gildan Activewear Properties (Dominican Republic) Inc.</DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" nowrap align="center">Barbados</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">100</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Gildan Activewear (Eden) Inc.</DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" nowrap align="center">North Carolina</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">100</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Gildan Activewear (UK)&nbsp;Limited</DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" nowrap align="center">United Kingdom</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">100</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">V.I. Prewett &#038; Son, Inc.</DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" nowrap align="center">Alabama</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">100</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Gildan Hosiery Rio Nance, S. de R.L.</DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" nowrap align="center">Honduras</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">100</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Gildan Charleston Inc.</DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" nowrap align="center">Delaware</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">100</TD>
    <TD nowrap>%</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">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&nbsp;3, 2010.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>2. GENERAL DEVELOPMENT OF THE BUSINESS</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">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.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>2.1 Recent Developments</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Declaration of Dividend and Initiation of Normal Course Issuer Bid</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">On December&nbsp;2, 2010, the Company announced that its Board of Directors had approved the
introduction of a quarterly cash dividend. The initial quarterly
dividend of U.S. $0.075 per
share will be paid on all issued and outstanding Common Shares of the Company listed on the New
York Stock Exchange (the &#147;NYSE&#148;) and the equivalent amount in Canadian dollars (using the Bank of
Canada&#146;s latest noon conversion rate at the time of payment)
will be paid for Common Shares listed on the
Toronto Stock Exchange (the &#147;TSX&#148;). The initial dividend
will be paid on March&nbsp;18, 2011,
rateably and proportionately to the holders of record on February&nbsp;23, 2011, being the record
date. The dividend policy will be reviewed annually by the Board of Directors.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Company also announced the reinstatement of a normal course issuer bid to repurchase up to one
million outstanding Common Shares of the Company on the TSX and the NYSE (the &#147;NCIB&#148;). The Company
is authorized to make purchases under the NCIB during the period from December&nbsp;6, 2010 to December
5, 2011 or until such time as the NCIB is completed or terminated at the Company&#146;s option. The
price to be paid will be the
</DIV>




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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">market
price of the Common Shares on the stock exchange on which the shares are purchased at the time of
acquisition. Common shares purchased under the NCIB will be cancelled.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>2.2 Developments in Fiscal 2010</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Economic Environment</B>
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Following the severe economic downturn in 2009, we began to experience a recovery in demand
in our target screenprint markets in the second quarter of fiscal 2010. This recovery
contributed in part to the Company&#146;s significant sales growth in fiscal 2010.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The recessionary conditions from the severe economic downturn in fiscal 2009 followed by
the recent economic recovery has created challenging conditions for the apparel marketplace,
including global yarn shortages and freight distribution shortages, compounded by volatility
in cotton prices. Towards the latter part of fiscal 2010, we began to see a significant
appreciation in cotton prices which continued to increase in fiscal 2011. Consequently,
apparel suppliers have begun to initiate selling price increases in response to rising
cotton and other input costs.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Progress on Strategic Initiatives</B>
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>For the first nine months of calendar 2010, we grew our overall total market share in the U.S. screenprint channel
to 64.1% compared to 56.6% for the same period last year. In addition, we realized
significant sales growth in our international and other screenprint markets.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>During fiscal 2010, we further developed our integrated manufacturing hubs in Central
America and the Caribbean Basin to support our projected growth, including the start of the
ramp-up of production at our new sock manufacturing facility in Honduras, Rio Nance 4. The
Company&#146;s capital expenditure plans for fiscal 2011 will include the construction of a new
textile facility in Honduras, Rio Nance 5, which was deferred during the economic downturn in
fiscal 2009.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>As an initial step towards the establishment of a
manufacturing hub  to support our growth in target markets in Asia and Europe,

 on March&nbsp;31, 2010, we acquired a vertically-integrated manufacturing facility for the
production of activewear in Bangladesh. </TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>During fiscal 2010, we shipped our first major men&#146;s underwear program for Walmart under
the Starter brand and a new underwear program for another mass-market retailer announced at
the end of fiscal 2009. We secured additional shelf-space for existing sock programs and
significant participation in back-to-school programs at major mass-market retailers. We also
obtained new retail programs in activewear, including the family fleece program at a major
national discount retailer, were awarded new activewear programs for three other retailers
and secured new activewear programs for the retail channel for fiscal 2011. We continued to
expand our regional retailer customer base as well as Gildan branded product programs with
retail chains.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>During fiscal 2010, we completed the construction of a biomass steam generation system in
the Dominican Republic which became operational during the year. We
also initiated similar biomass
steam generation projects at our sock manufacturing facilities in
Honduras, which are expected
to become operational in fiscal 2011. These projects are expected to contribute to the
reduction of our energy consumption and related costs.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Acquisition of New Sales Offices and Distribution Facility</B>
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>On November&nbsp;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. During fiscal 2010, the Company began to consolidate all of its retail sales,
marketing and distribution activities at this location, resulting in the closure of its
distribution centres at Martinsville, Virginia and Fort Payne, Alabama.</TD>
</TR>




</TABLE>
</DIV>
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    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>During fiscal 2010, the Company acquired a new office building in Barbados for
approximately $20&nbsp;million, and will be moving its sales and marketing functions servicing the
screenprint channel from its existing office building in Barbados to this location.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Impact of Haiti Earthquake</B>
</DIV>


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    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>On January&nbsp;12, 2010, Haiti was devastated by a massive
earthquake which had an impact
on Gildan&#146;s third-party contractor operations in Haiti which are used to sew the majority of
the fabric produced at our Dominican Republic textile facility. While Gildan immediately established a program for
humanitarian aid efforts, we also took steps to minimize the impact of the disruption of
contractor production in Haiti, including the temporary addition of overtime sewing shifts at Gildan&#146;s Central American sewing operations and the use of additional third-party contractors.
Contractor operations in Haiti began to resume
operations shortly after the earthquake and by the end of the second quarter of fiscal 2010,
contractor operations had returned to production levels substantially similar to those prior
to the impact of the earthquake. The impact on the Company&#146;s operations included a temporary
loss of production primarily during the second quarter, which subsequently resulted in lost
sales opportunities as well as supply chain inefficiencies during the balance of the fiscal year. During the fourth quarter of fiscal 2010, the Company received insurance proceeds of $8.0 million, reflecting the maximum insurance recovery receivable under its insurance policy related to the earthquake in Haiti, which have been recorded as a reduction of cost of sales in the consolidated statement of earnings.
</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>2.3 Developments in Fiscal 2009</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Economic Environment</B>
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

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    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>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 which 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.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>During fiscal 2009, in response to the downturn in the
economy, we took a number of steps 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 by delaying the completion of its Rio Nance 4 sock facility
during fiscal 2009, and deferring 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.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Progress on Strategic Initiatives</B>
</DIV>


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    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>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.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>For the first nine months of calendar 2010, 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%.</TD>
</TR>




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    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>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 &#038; Son, Inc. (&#147;Prewett&#148;) acquisition, to a
leased sock finishing facility in Honduras.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>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.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>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.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Canadian Revenue Agency Tax Audit</B>
</DIV>


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    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>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.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>2.4 Developments in Fiscal 2008</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Acquisition of U.S. Sock Manufacturer</B>
</DIV>


<DIV style="margin-top: 6pt">
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    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>On October&nbsp;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&nbsp;million, a deferred payment of
$1.2&nbsp;million disbursed in fiscal 2009 and transaction costs of $1.5&nbsp;million. The purchase
agreement provided for an additional purchase consideration of up to $10&nbsp;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.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Growth Strategy</B>
</DIV>


<DIV style="margin-top: 6pt">
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    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>We continued to achieve market share gains in the U.S. screenprint market.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>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.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>During fiscal 2008, we began shipments under our first underwear program with a U.S.
national mass-market retailer.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Tax</B>
</DIV>


<DIV style="margin-top: 6pt">
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    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>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&nbsp;million, including a provision for provincial taxes, and
a reclassification of $17.3&nbsp;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.</TD>
</TR>




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<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Manufacturing Operations</B>
</DIV>


<DIV style="margin-top: 6pt">
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<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>In fiscal 2008, we completed the ramp-up of our second activewear facility, Rio Nance 2, and of our
integrated sock manufacturing facility, Rio Nance 3, both located in Rio Nance, Honduras.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Distribution</B>
</DIV>


<DIV style="margin-top: 6pt">
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<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>In connection with our acquisition of Prewett in fiscal 2008, two Prewett facilities,
located in Fort Payne, Alabama were added to our distribution network to service our sock distribution in the retail channel.</TD>
</TR>


</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Corporate Office</B>
</DIV>


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    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>In fiscal 2008, we moved our corporate head office to leased premises located in Montreal,
Qu&#233;bec.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>3. DESCRIPTION OF THE BUSINESS</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>3.1 Business Overview</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">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.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Company&#146;s net sales for fiscal 2010 reached $1,311.5&nbsp;million.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>STRATEGY AND OBJECTIVES</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Our growth strategy comprises the following initiatives:
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>1.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Maximize screenprint market penetration and opportunities</B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>While we have achieved a leadership position in the screenprint distributor channel in the U.S.
and in Canada, we continue to pursue further growth opportunities in the North American and
international screenprint markets.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B><I>U.S. Screenprint Distributor Market</I></B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>During fiscal 2010, our overall total market share in this channel increased to 64.1% for the
nine months ended September&nbsp;30, 2010 compared to 56.6% for the same period last year. We intend
to continue to pursue further penetration in the U.S. distributor screenprint channel in all of
the product categories that we serve, 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 and new styles tailored
for women could enable us to further increase our market share by serving certain niches of the
screenprint channel in which we previously did not participate. Although the global economic
downturn which began in the latter part of 2008 and continued throughout 2009 negatively
impacted demand in the U.S. distributor market, Gildan continued to increase its leading share
position during that period. Consequently, the commencement of a recovery in demand in the distributor channel
during fiscal 2010, combined with our continued market share penetration, translated into strong
sales growth for Gildan. We expect to leverage our increase in market share in the U.S.
distributor channel as the U.S. screenprint market continues to recover to levels prior to the
economic downturn.</TD>
</TR>




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<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B><I>International and Other Screenprint Markets</I></B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>As the Company adds more production capacity, we intend to continue to expand our presence in
international screenprint markets, specifically Europe, Mexico and the Asia/Pacific region, and we
also plan to continue to grow our sales to large branded apparel companies and retailers which sell
imprinted activewear and are currently not serviced by our existing U.S. wholesale distributors. We
are continuing to expand our integrated manufacturing hubs in Central America and the Caribbean
Basin to support our projected growth, including allocating capacity to service product categories and
geographical locations where our growth was previously constrained by capacity availability. In
addition, the acquisition of our first vertically-integrated facility for the manufacture of ring-spun
T-shirts in Bangladesh during fiscal 2010, combined with the development over time of a vertically-
integrated manufacturing hub is intended to support our strategy to grow our international business in
Asia and Europe. During fiscal 2010, our unit sales to international and other screenprint markets
increased 58.5% compared to fiscal 2009.
</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>2.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Leverage our successful business model to further penetrate the mass-market retail channel</B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>We are leveraging our existing core competencies, including our large scale capital-intensive
manufacturing, successful business model and competitive strengths into the U.S. mass-market
retail channel. 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. As a leading supplier of basic family socks in
the U.S. mass-market retail channel, we intend to continue to build and leverage our market
share position in socks to establish an increased presence in the mass-market retail channel
with our activewear and underwear product lines. Our marketing strategy comprises a
three-pronged branding approach. First, within the mass-market retail channel, we are
positioning ourselves as a strategic supplier of selective national retailers&#146; exclusive brand
licenses or private label brands for socks, activewear and underwear to large retailers seeking
to consolidate their supply chain with fewer, larger manufacturers. Secondly, we are pursuing
the steady development of a Gildan brand strategy selling products with the Gildan label to
retailers using supplier brands to differentiate their product offering. Thirdly, we will also
evaluate alternatives to acquire or license selective brands for additional channels of
distribution.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Although sock sales in fiscal 2010 were down year-over-year largely as a result of the
discontinuance of unprofitable sock programs and the elimination of certain programs that did
not fit with our business model, during fiscal 2010 we secured additional shelf-space for
existing sock programs and significant participation in Back-to-School programs at major
mass-market retailers. We shipped our first major men&#146;s underwear program for Walmart under the
Starter brand and a new underwear program for another mass-market retailer announced at the end
of fiscal 2009. During fiscal 2010, we obtained new retail programs in activewear, including the
family fleece program at a major national discount retailer and were awarded new activewear
programs for three other retailers. In addition, we secured new activewear programs for the
retail channel for fiscal 2011. During fiscal 2010, we continued to expand our regional retailer
customer base as well as Gildan branded product programs with retail chains. </TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>3.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Continue to generate manufacturing and distribution cost reductions</B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>We seek to continuously improve our manufacturing and distribution processes and cost structure
by developing and investing in cost-reduction initiatives. In addition to the continuing
consolidation of our manufacturing operations to our Central American and Caribbean Basin hubs,
we are implementing other cost-reduction initiatives. These include, among others, our plans to
reduce our reliance on high-cost fossil fuels and further reduce our impact on the environment
by installing additional biomass facilities as an alternate source of natural renewable energy,
and other initiatives to increase the efficiency of our energy-intensive equipment and
processes, which reflect the Company&#146;s commitment to sustainability. We are also planning to
achieve further efficiencies in operating our distribution activities from the consolidation of
our retail distribution centres to a single location in Charleston, South Carolina and further
expansion and automation of our wholesale distribution centre in Eden, North Carolina.</TD>
</TR>



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<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>During fiscal 2010, we continued to consolidate our manufacturing operations in our
manufacturing hub in Central America as we transferred the remaining wet processing sock
operations and a portion of our knitting capacity in the U.S. to our Honduran sock manufacturing
facilities. In April&nbsp;2010, we began the ramp-up of production at our second sock manufacturing
facility, Rio Nance 4, in Honduras. We also completed the construction of a biomass steam
generation system in the Dominican Republic, which is expected to
result in a reduction of our fossil
fuel consumption and related costs associated with the textile production in the Dominican
Republic. In addition, during the year we initiated similar biomass steam generation projects
for our sock manufacturing in Honduras. The biomass facility for Rio Nance 3 became operational
at the end of fiscal 2010 and the second biomass facility for Rio Nance 4 became operational
during the first quarter of fiscal 2011. We are also planning to implement similar systems for
our textile manufacturing facilities in Honduras.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>4.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Re-invest and/or redistribute cash flow</B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>We will continue to 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.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>On December&nbsp;2, 2010, the Company announced the introduction of its first quarterly cash dividend.
In addition, the Company also announced that it is reinstating a normal course issuer bid to
repurchase outstanding Common Shares of the Company in the open market. The Company believes that its
balance sheet and free cash flow generation provide it with significant financing capacity and
flexibility to be able to continue to pursue its growth strategy, at the same time as
introducing a dividend to provide yield and further enhance total returns to its shareholders.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Our Products and Markets</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">In the screenprint channel, we sell activewear products, namely T-shirts, fleece and sport shirts
in undecorated &#147;blank&#148; form under the Gildan brand in large quantities to wholesale distributors,
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 providing 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 the
Gildan brand and under various retailer exclusively licensed and private label brands.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">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. The majority of our product styles continue from year
to year and any variations to products are usually limited to colour assortment, fabric weight,
blends and enhancements, with limited design changes.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Our value proposition is based on providing consistent high quality, competitive pricing and fast
and flexible replenishment combined with 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.
Our vertical integration has allowed us to reduce costs and ensure consistency of quality as we
control essentially all aspects of our manufacturing. Continued innovations in our manufacturing
process have allowed us to ensure colour/shade consistency and high performance of our activewear
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. These
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">innovations have resulted in further improving the value proposition of our activewear and sock
products to our customers.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Activewear and underwear represented 83% of our sales in fiscal 2010 whereas they represented 77%
in fiscal 2009. Socks represented 17% of our sales in fiscal 2010 whereas they represented 23% in
fiscal 2009.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Competitive Environment</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The 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 combined with our commitment to leading
environmental and social responsibility practices are also increasingly becoming important factors
for our customers.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">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., Alstyle Apparel, a division of Ennis Corp., and Delta Apparel Inc. The competitive landscape
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. 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.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Customers</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">In fiscal 2010, we sold our products in the United States, Canada and Europe and other
international markets, which accounted for 88%, 4% and 8% 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 22 to the 2010 Consolidated 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 300 customers. In fiscal
2010, our largest customer accounted for 21.0% of our total sales, and our top ten customers
accounted for 66.4% of our total sales in the retail and screenprint channels.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The large majority of total sales in fiscal 2010 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.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Our Facilities</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Textile and Sock Manufacturing</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">To support our sales in the various markets, we have developed two main manufacturing hubs located
in Central America and the Caribbean Basin where we have built our own modern manufacturing
facilities which include textile manufacturing facilities for the
production of activewear and underwear fabric and
sock manufacturing facilities. We also operate sewing facilities which support the fabric production
from our textile facilities. Our Central American and Caribbean Basin manufacturing hubs service
the North American and international markets in which we compete. As an initial step towards the
establishment of a third manufacturing hub  to support our growth in targeted markets in
Asia and Europe, during fiscal 2010, we acquired a vertically-integrated manufacturing facility for
the production of activewear in Bangladesh.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><U>Central American manufacturing hub</U>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Our largest manufacturing hub is based in Central America.
Manufacturing operations include two vertically-integrated knitting, bleaching, dyeing, finishing
and cutting textile facilities (Rio Nance 1 and Rio Nance 2) which produce activewear and underwear
fabric located in Rio Nance, Honduras. We
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">currently intend to begin the construction of a third textile facility (Rio Nance 5) for the
production of activewear and underwear fabric at the same location. We operate sewing facilities in
Honduras and Nicaragua which sew the textiles produced at Rio Nance 1 and Rio Nance 2. We have also
constructed and operate two integrated sock manufacturing facilities in Rio Nance (Rio Nance 3 and
4). The construction of Rio Nance 4 was essentially completed during fiscal 2010 and the ramp-up of
production began in April&nbsp;2010. Rio Nance 4 is expected to further support future sales growth in
the sock category and position us to continue to reduce our sock manufacturing costs. In addition
to our integrated sock manufacturing operations located in our Central American hub, we operate
U.S. sock knitting facilities in Fort Payne, Alabama which were purchased as part of a sock
manufacturing acquisition in fiscal 2008.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><U>Caribbean Basin manufacturing hub</U>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Our Caribbean Basin manufacturing hub includes a vertically-integrated textile facility for the
production of activewear fabric in Bella Vista, Dominican Republic. Textiles produced at our
manufacturing facility in the Dominican Republic are sewn at third-party contractor operations in
Haiti and at our sewing facility in the Dominican Republic.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">On January&nbsp;12, 2010, Haiti was devastated by a massive earthquake which  had a major impact on
Gildan&#146;s third-party contractor operations in Haiti which are used to sew the majority of the
fabric produced at our Dominican Republic textile facility. While
Gildan immediately established a program for  humanitarian aid
efforts, we also  took steps  to minimize the impact of the disruption of contractor production in
Haiti, including the addition of overtime sewing shifts at
Gildan&#146;s Central American sewing operations  and  the use
of additional third-party contractors. Contractor operations in Haiti began to resume operations shortly after the earthquake
and by the end of the second quarter of fiscal 2010, contractor operations had returned to
production levels substantially similar to those prior to the impact of the earthquake. The impact
on the Company&#146;s operations included a temporary loss of production primarily during the second
quarter, which subsequently resulted in lost sales opportunities as well as supply chain
inefficiencies during the balance of the fiscal year. During the fourth quarter of fiscal 2010, the Company
received insurance proceeds of $8.0&nbsp;million, reflecting the maximum insurance recovery available
under its insurance policy related to the earthquake in Haiti, which have been recorded as a
reduction of cost of sales in the consolidated statement of earnings.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Yarn-Spinning</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">CanAm Yarns, LLC (CanAm), our joint-venture company with Frontier Spinning Mills, Inc. (Frontier),
operates yarn-spinning facilities in Georgia and North Carolina. We source our yarn requirements
from CanAm, as well as from Frontier and other third-party yarn providers, with whom we have supply
agreements.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Sales, Marketing and Distribution</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Our sales and marketing office which services our global screenprint markets is located in St.
Michael, Barbados. During fiscal 2010 we also began to consolidate all of our retail sales and
marketing activities at a single location at our office in Charleston, South Carolina. These
offices are responsible for customer-related functions, including sales management, marketing,
customer service, credit management, sales forecasting, and inventory control and logistics for
each of their respective markets.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">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. The Company has begun an
expansion and further automation of the Eden, North Carolina distribution centre to service demand
in the U.S. screenprint  channel and further reduce distribution costs.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">All distribution activities related to servicing retail customers are now in the process of being
consolidated at our distribution centre in Charleston, South Carolina which was acquired in the
first quarter of fiscal 2010, resulting in the closure of our distribution centres located in
Martinsville, Virginia and Fort Payne, Alabama.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Raw Materials</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">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. Cotton fibre is typically purchased for future
delivery at pre-determined prices under contracts as deemed
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">appropriate by management, while polyester pricing is negotiated on an annual basis subject to the
price variability of certain polyester components.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">During fiscal 2010, 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.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The three primary sources of energy consumed in our manufacturing facilities are bunker fuel and
biomass, which are used to generate steam required in the production process and electricity, which
is used to power production equipment. The bunker fuel used in our operations is supplied from
local third-party suppliers, and the pricing is highly dependent on international market prices for
bunker fuel. During fiscal 2009 we began construction of a biomass steam generation system in the
Dominican Republic, which began operating as of March&nbsp;2010 and
is expected to contribute to the reduction of
our energy consumption and related costs associated with the textile production in the Dominican
Republic. In addition, during the year, we initiated similar biomass steam generation projects for
our sock manufacturing facilities in Honduras. The biomass facility for Rio Nance 3 became
operational at the end of fiscal 2010 and the second biomass facility for Rio Nance 4 became
operational during the first quarter of fiscal 2011. We are also planning to implement similar
systems for our textile facilities in Honduras in fiscal 2011. 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.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">We also purchase chemicals, dyestuffs and trims through a variety of suppliers. These products have
historically been available in sufficient supply.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Management Information Systems</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">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
2011, 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.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Gildan
JD Edwards ERP system has been in place since 1999. In fiscal 2010,
we initiated a process to upgrade to the current release,
Enterprise One. The upgrade will facilitate the strategic objective of improving and modernizing
system functionality and business agility. We expect to implement the
first phase of the upgrade in fiscal 2012.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Seasonality and Other Factors Affecting the Variability of Results and Financial Condition</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">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, our customers&#146; decision to increase or decrease their inventory levels, changes in
our sales mix, and fluctuations in selling prices and raw material costs. 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.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">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.
</DIV>





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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Our results are also impacted by 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,
and we also use chemicals, dyestuffs and trims which we purchase from a variety of suppliers.
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. Energy costs in 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.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Management decisions to consolidate or reorganize operations, including the closure of facilities,
may also result in significant restructuring and other charges in an interim or annual period. In
addition, the effect of asset write-downs, including provisions for bad debts and slow moving
inventories, can affect the variability of our results.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Our reported amounts for sales, selling, general and administrative expenses, and financial expense
(income)&nbsp;are impacted by fluctuations in the U.S. dollar versus certain other currencies as
described in the &#147;Financial Risk Management&#148; section of the 2010 Annual MD&#038;A. The Company may
periodically use derivative financial instruments to manage risks related to fluctuations in
foreign exchange rates.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Trade Regulation</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">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 Union
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.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">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.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The United States adopted two of the newest programs, CAFTA-DR and HOPE (as amended by HOPE II
legislation in 2008 and by the Haitian Economic Lift Program (&#147;HELP&#148;) legislation in 2010), 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&nbsp;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.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">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. In addition, the United States has completed
negotiations for three new free trade agreements (&#147;FTA&#148;) with South Korea, Colombia and Panama.
These agreements are pending approval of the U.S. Congress. The United States also launched free
trade negotiations with a group of countries under the umbrella of the Trans-Pacific Partnership
(&#147;TPP&#148;). Countries participating in the TPP negotiations at this time are Australia, Brunei,
Chile, Malaysia, New Zealand,
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Peru, Singapore and Vietnam. Any of these proposals or agreements may negatively affect our
competitive position in the United States.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Furthermore, U.S. domestic industry groups have threatened to seek various trade remedies,
including &#147;section 421&#148;, under the terms of the U.S.-China World Trade Organization (&#147;WTO&#148;)
accession agreement, against apparel imports from China which could result in higher duty rates or
tariff rate quotas for Chinese apparel and improve our competitive position in affected product
classifications. Since the expiration of U.S. safeguard actions that imposed quotas on annual
imports of certain categories of Chinese originating textiles and apparel at the end of 2008,
ordinary import duties have been in effect. The likelihood that any of these measures will be
adopted and the extent of their impact on our business cannot be determined with certainty.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">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.
Furthermore, the import tariff rates on textile and apparel articles imported into Mexico will
gradually be reduced by 2013. Special safeguard measures (&#147;Mevidas Transitorias&#148;) in Mexico which
are currently in effect on China originating apparel will be gradually eliminated by the end of
December&nbsp;2011.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">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. The European Union also enacted a Generalized System of Preferences
(&#147;GSP&#148;) and the Africa-Caribbean-Pacific (&#147;ACP&#148;) programs that allow duty-free and quota-free entry
into the European Union of qualifying articles, including apparel, from developing countries such
as Honduras and Nicaragua and least developed countries including Haiti. Recent amendments
regarding the reform of certain of the GSP provisions including the rules of origin are scheduled
to become effective in 2011. The new provisions will further enhance
duty-free access to the European Union of
qualifying apparel articles. However, discussions are ongoing at the European Union level regarding
the establishment of a Economic Partnership Agreement (&#147;EPA&#148;) with Central American countries such
as Honduras and Nicaragua. The EPA, once enacted, would supersede the eligibility to the GSP trade
preference of the signatory Central America countries. The impact of the enactment of the European
Union &#151; Central America EPA on our operations cannot be ascertained at this time.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Proposed legislation in the European Union would, if adopted, extend duty-free treatment to
qualifying apparel imported from Pakistan. Such a proposal could negatively affect our competitive
position in the European Union.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">As of July&nbsp;2010, The People&#146;s Republic of China extended the duty-free trade benefits awarded to
Bangladesh under the Asia-Pacific Trade Agreement (&#147;APTA&#148;) to include certain chief-weight cotton
apparel articles made in Bangladesh.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Product Safety Regulation</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">We are subject to consumer product safety laws and regulations that could affect our business. In
the United States, we are subject to the Consumer Product Safety Act,
as amended by the Consumer
Product Safety Improvement Act of 2008, to the Flammable Fabrics Act, and to the rules and
regulations promulgated pursuant to such statutes. Such laws provide for substantial penalties for
non-compliance. Although enforcement of certain requirements is currently stayed, these statutes
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. Most recently, the Consumer Product Safety Commission announced
implementation of third party testing and certification requirements for flammability of children&#146;s
apparel manufactured on or after November&nbsp;16, 2010.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">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. We are also
subject to similar laws and regulations in the other jurisdictions in which our products are sold.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">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.
</DIV>





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<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Intellectual Property</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">We own several registered trademarks including, among others, the &#147;Gildan&#148; trademark in Canada, the
United States and in the European Community as well as in many countries in Central America, South
America and Asia/Pacific, including 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.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Environmental Regulation</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">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.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">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 2010, the requirements with regard to environmental
protection did not have a significant financial or operational impact on the Company&#146;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
result in a disruption to our supply chain 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.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Labour Practices</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">We provide favourable working conditions for all our 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;) certification for all our Gildan-owned mature sewing facilities. Two facilities
of our sewing contractors located in Haiti are also WRAP certified
and the others are  expected to be
certified by the end of the fiscal year. All of our third-party sewing contractors are
contractually required to follow prescribed employment policies as well as our Code of Conduct.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">In
November&nbsp;2003, we joined the Fair Labour Association (&#147;FLA&#148;)
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.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">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.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">During fiscal 2008, 57 audits were performed in our facilities and those of our third-party
contractors. Over 25% of these audits were carried out by third-party auditors, half of which were
mandated by our customers.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">During fiscal 2009, 50 audits were performed in our facilities and those of our third-party
contractors. Over 13% of these audits were carried out by third-party auditors, with 46% of which
were mandated by our customers.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">During fiscal 2010, 73 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, with 44% of which
were mandated by our customers.
</DIV>







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<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>3.2 Risk Factors</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Please see the &#147;Financial Risk Management&#148; and the &#147;Risks and Uncertainties&#148; sections of our 2010
Annual MD&#038;A beginning on page 22 and page 36, respectively, which are incorporated herein
by reference.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>3.3 Employees</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">As at October&nbsp;3, 2010, we employed more than 28,000 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. A union membership drive at our
textile manufacturing facility in the Dominican Republic led to the execution of a three year
collective bargaining agreement which outlines terms of employment for approximately 1,000
employees.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>4. DIVIDEND POLICY</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">While the Board of Directors of the Company has not in the last three years declared a dividend in
order to retain the Company&#146;s earnings to take advantage of opportunities to develop and expand its
business, the Board of Directors recently adopted a dividend policy which aims to declare and pay
cash dividends on a quarterly basis beginning in fiscal 2011. The Board of Directors will consider
several factors when deciding to declare quarterly cash dividends, including the Company&#146;s present
and future earnings, cash flows, capital requirements and future regulatory restrictions, while
complying with laws governing the Company. 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 payment of dividends under our dividend policy. There
can be no assurance as to the declaration of future quarterly cash dividends. Please see the
heading &#147;Declaration of Dividend and Initiation of Normal Course Issuer Bid&#148; in section 2.1
entitled &#147;Recent Developments&#148; for further information on the Company&#146;s introduction of a quarterly
cash dividend.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>5. CAPITAL STRUCTURE</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>First Preferred Shares</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><I>Issuance in Series</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">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.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><I>Rank</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">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.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><I>Voting Rights</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">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.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Second Preferred Shares</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><I>Issuance in Series</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">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.
</DIV>





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<DIV style="font-family: Helvetica,Arial,sans-serif">




<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><I>Rank</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">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.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><I>Voting Rights</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">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.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Common Shares</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Following the conversion of all of the Company&#146;s Class&nbsp;B Multiple Voting shares into Class&nbsp;A
Subordinate Voting shares, the Company&#146;s shareholders approved a special resolution on February&nbsp;2,
2005 to amend the Company&#146;s Articles in order to change each of the issued and outstanding Class&nbsp;A
Subordinate Voting shares into one newly-created Common Share and to remove the Class&nbsp;B Multiple
Voting shares and the Class&nbsp;A Subordinate Voting shares.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">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.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">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.
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">








</TABLE>
</DIV>
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</DIV>

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<DIV style="font-family: Helvetica,Arial,sans-serif">


<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">



</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>6. MARKET FOR SECURITIES</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Common Shares are listed on the NYSE and the TSX under the symbol &#147;GIL&#148;. The Class&nbsp;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&nbsp;17, 1998. Prior to that date, there was no public
market for the Class&nbsp;A Subordinate Voting shares. We delisted such shares from AMEX on August&nbsp;31,
1999. On September&nbsp;1, 1999, the Class&nbsp;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&nbsp;7, 1999, we are no longer listed on the ME.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The table below shows the monthly price range per share and the trading volume of the Common Shares
for the fiscal year ended October&nbsp;3, 2010 on the TSX (in Cdn$) and on the NYSE (in US$).
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="25%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="24%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center" colspan="26" style="border-bottom: 1px solid #000000"><B>COMMON SHARES</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center" colspan="12" style="border-bottom: 1px solid #000000"><B>Toronto Stock Exchange (TSX)</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="12" style="border-bottom: 1px solid #000000"><B>New York Stock Exchange (NYSE)</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Trading</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Trading</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #000000"><B>Month</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>High</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Low</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Volume</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left" style="border-bottom: 1px solid #000000"><B>Month</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>High</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Low</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Volume</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">October 5 to 31, 2009</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">21.19</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">17.86</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7,803,400</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">October 5 to 31, 2009</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">20.34</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">16.53</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10,099,600</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">November&nbsp;2009</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">20.80</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">18.88</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,516,200</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">November 2009</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">19.92</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">17.63</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8,614,800</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">December&nbsp;2009</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">26.61</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">20.46</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10,699,700</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">December 2009</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">25.33</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">19.58</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12,653,300</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">January&nbsp;2010</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">25.98</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">22.57</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,098,800</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">January 2010</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">24.98</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">21.40</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,552,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">February&nbsp;2010</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">26.26</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">22.90</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10,188,100</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">February 2010</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">25.15</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">21.44</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12,554,500</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">March&nbsp;2010</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">27.25</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">24.77</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7,829,800</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">March 2010</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">26.95</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">23.70</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10,956,200</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">April&nbsp;2010</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">30.37</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">26.59</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10,897,400</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">April 2010</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">30.15</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">26.31</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10,603,600</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">May&nbsp;2010</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">32.10</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">26.51</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9,266,900</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">May 2010</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">31.67</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">24.50</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">17,616,500</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">June&nbsp;2010</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">33.26</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">30.45</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10,049,200</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">June 2010</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">32.73</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">28.60</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">20,593,500</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">July&nbsp;2010</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">31.90</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">28.34</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,738,500</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">July 2010</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">30.99</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">26.68</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8,376,700</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">August&nbsp;2010</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">33.13</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">28.40</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,392,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">August 2010</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">32.10</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">26.67</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7,976,300</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">September&nbsp;2010</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">30.90</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">27.42</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9,061,800</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">September 2010</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">29.89</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">26.53</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7,893,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">October&nbsp;1, 2010</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">29.30</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">28.50</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">613,500</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">October 1, 2010</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">28.55</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">27.81</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">322,900</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->17<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: Helvetica,Arial,sans-serif">


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>7. DIRECTORS AND OFFICERS</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">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.
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="40%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="40%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="14%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left"><B>Name and Municipality of Residence</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>Principal Occupation</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>Director Since</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="5" valign="top" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Robert M. Baylis <SUP style="FONT-size: 85%; vertical-align: text-top"> (2)(3)(4)</SUP><br>
Darien, Connecticut, United States
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Corporate Director
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">February&nbsp;1999</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Glenn J. Chamandy<br>
Westmount, Qu&#233;bec, Canada
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">President and Chief Executive Officer of the Company
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">May&nbsp;1984</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">William D. Anderson<SUP style="FONT-size: 85%; vertical-align: text-top">(1)(3)</SUP><br>
Toronto, Ontario, Canada
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Corporate Director
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">May&nbsp;2006</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">George Heller<SUP style="FONT-size: 85%; vertical-align: text-top">(1)(3)</SUP><br>
Toronto, Ontario, Canada
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Corporate Director
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">December&nbsp;2009</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Sheila O&#146;Brien<SUP style="FONT-size: 85%; vertical-align: text-top"> (2)(3)</SUP><br>
Calgary, Alberta, Canada
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Corporate Director and Business Advisor<BR>
President of Belvedere 1 Investments Ltd. (private<br>
investment company)
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">June&nbsp;2005</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Pierre Robitaille<SUP style="FONT-size: 85%; vertical-align: text-top">(1)(2)</SUP><br>
St-Lambert, Qu&#233;bec, Canada
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Corporate Director and Business Advisor
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">February&nbsp;2003</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">James R. Scarborough<SUP style="font-size: 85%; vertical-align: text-top">(2)(3)</SUP><br>
Wolfeboro, New Hampshire, United States
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Corporate Director
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">December&nbsp;2009</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Richard P. Strubel <SUP style="FONT-size: 85%; vertical-align: text-top">(1)(3)</SUP><br>
Chicago, Illinois, United States
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Corporate Director
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">February&nbsp;1999</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Gonzalo F. Valdes-Fauli<SUP style="FONT-size: 85%; vertical-align: text-top">(1)(2)</SUP><br>
Key Biscayne, Florida, United States
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Corporate Director<BR>
Chairman of BroadSpan Capital LLC (investment banking firm)
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">October&nbsp;2004</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Russell Goodman<SUP style="font-size: 85%; vertical-align: text-top">(2)</SUP><BR>
Mont-Tremblant, Qu&#233;bec, Canada
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">

Partner, PricewaterhouseCoopers LLP (professional services firm)
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">December&nbsp;2010</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left">(1)</TD>
    <TD>&nbsp;</TD>
    <TD>Member of the Audit and Finance Committee.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(2)</TD>
    <TD>&nbsp;</TD>
    <TD>Member of the Corporate Governance Committee.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(3)</TD>
    <TD>&nbsp;</TD>
    <TD>Member of the Compensation and Human Resources Committee.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(4)</TD>
    <TD>&nbsp;</TD>
    <TD>Chairman of the Board.</TD>
</TR>

</TABLE>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Listed below is certain information about the executive officers of Gildan in office as of the
date hereof.
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="35%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="62%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #000000"><B>Name and Municipality of Residence</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Position Held Within the Company and Principal Occupation</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Glenn J. Chamandy <SUP style="FONT-size: 85%; vertical-align: text-top">(1) </SUP><br>
Westmount, Qu&#233;bec, Canada
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">President, Chief Executive Officer and Director</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Laurence G. Sellyn <SUP style="FONT-size: 85%; vertical-align: text-top">(1) </SUP><br>
Beaconsfield, Qu&#233;bec, Canada
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Executive Vice-President, Chief Financial and Administrative Officer</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Michael R. Hoffman<SUP style="FONT-size: 85%; vertical-align: text-top"> </SUP><br>
St. James, Barbados
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">President, Gildan Activewear SRL</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Georges Sam Yu Sum <SUP style="FONT-size: 85%; vertical-align: text-top">(1) </SUP><br>
Hampstead, Qu&#233;bec, Canada
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Executive Vice-President, Operations</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Benito Masi<SUP style="FONT-size: 85%; vertical-align: text-top"> (1) </SUP><br>
Laval, Qu&#233;bec, Canada
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Executive Vice-President, Manufacturing</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->18<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: Helvetica,Arial,sans-serif">

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="35%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="62%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #000000"><B>Name and Municipality of Residence</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Position Held Within the Company and Principal Occupation</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Eric R. Lehman<SUP style="FONT-size: 85%; vertical-align: text-top">(1) </SUP><br>
Verdun, Qu&#233;bec, Canada
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Executive Vice-President, Supply Chain, Information
Technology and Operational Excellence</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Richard Petersen <SUP style="FONT-size: 85%; vertical-align: text-top">(1)</SUP><br>
Mansonville, Qu&#233;bec, Canada
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Executive Vice-President, Corporate Citizenship</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left">(1)</TD>
    <TD>&nbsp;</TD>
    <TD>Officer of the Company.</TD>
</TR>

</TABLE>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><I>Glenn J. Chamandy </I>is one of the founders of the Company and has devoted his entire career to
building Gildan into an industry leader. Prior to February&nbsp;2004, Mr.&nbsp;Chamandy held the position of
President and Chief Operating Officer. He was then named President and Co-Chief Executive Officer
and, in August&nbsp;2004, he was appointed to the position of President and Chief Executive Officer.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><I>Robert M. Baylis</I>, Chairman of the Board of the Company, serves as a director of two large
corporations, the New York Life Insurance Company (life insurance provider), where he is Chairman
of the Investment Committee, and Host Hotels &#038; 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 and a Trustee and Chairman of the Audit Committee of the Woods Hole
Oceanographic Institution. 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.&nbsp;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.&nbsp;Baylis was educated at Princeton University and Harvard Business
School and is a chartered financial analyst.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><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.&nbsp;Anderson was in public
practice for nearly twenty years with the accounting firm KPMG, where he was a partner for eleven
years. Mr.&nbsp;Anderson is also Chairman of the Board of Nordion Inc., formerly known as MDS Inc.
(global life sciences company) and serves on the boards of directors of TransAlta Corporation
(power generation and energy marketing firm), where he is also Chairman of the Audit and Risk
Committee, as well as on the board of directors of  Sun Life Financial Inc. (international financial services organization). Mr.
Anderson was educated at the University of Western Ontario and is a member of the Institute of
Chartered Accountants of Ontario.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><I>Russell Goodman</I> is a senior partner of PricewaterhouseCoopers, where he has served successively as
Managing Partner of Project Finance and Privatization for the Americas, Managing Partner of the Montreal
office, and Canadian Managing Partner of the Transactions Advisory Services group during the past twelve
years. Prior to the formation of PricewaterhouseCoopers in 1998, Mr. Goodman served for twenty-one years
with Price Waterhouse, including 11 as a partner.  Mr. Goodman is a member of the board of directors of
Whistler Blackcomb Holdings Inc. (ski resorts), where he is also a member of the Audit Committee, and
serves on a number of advisory and not-for-profit boards. He is the past-president of the Canadian Club of
Montreal. He is a Fellow of the Order of Chartered Accountants of Quebec, is certified by the Institute of
Corporate Directors and is a Certified Fraud Examiner.  Mr. Goodman was educated at McGill University.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><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.&nbsp;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.&nbsp;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.&nbsp;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 &#038; Europe of Bata Industries Ltd. (international footwear manufacturer) and Executive
Vice-President of Woodwards Department Stores (department store chain). Mr.&nbsp;Heller also served as
President and Chief Executive Officer of the Victoria Commonwealth Games. Mr.&nbsp;Heller 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.&nbsp;Heller also serves as Chairman of the
Board of the Asia Pacific Foundation of Canada (not-for-profit think-tank on Canada&#146;s relations
with Asia) and sits on the board of directors of Sport BC (advocate for amateur sports in British
Columbia). Mr.&nbsp;Heller has received Honorary Doctorates from Ryerson University and the University
of Victoria. Mr.&nbsp;Heller has acted as Honorary Consul General of Thailand since 2008 and Honorary
Trade Advisor to the Government of Thailand since 2000.
</DIV>





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<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><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, Mrs.&nbsp;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. Mrs.&nbsp;O&#146;Brien also serves on the boards of directors of MaRS (Medical and Related Sciences)
(biotechnology accelerator), where she is Chair of the Human Resources Committee and Advantage
Energy Income Fund (oil and gas royalty trust). In addition to her corporate career, she has acted
as a special advisor to the president at the University of Calgary. Mrs.&nbsp;O&#146;Brien is the co-author
of the book &#147;<I>An Extraordinary West &#151; A Narrative Exploration of Western Canada&#146;s Future</I>&#148; published
in November&nbsp;2010. 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.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><I>Pierre Robitaille </I>is a business advisor and a corporate director. Mr.&nbsp;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 &#038; 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.&nbsp;Robitaille also serves on the board of directors of Nav Canada (civil air navigation
services provider). Mr.&nbsp;Robitaille is a Fellow member of the Qu&#233;bec Order of Chartered Accountants.
He was educated at HEC-Montreal and McGill Business School.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><I>James R. Scarborough </I>has had a career as a business leader in the retail industry that spans over
thirty-eight years. Mr.&nbsp;Scarborough retired in June&nbsp;2010 as Chairman of the Board of Stage Stores,
Inc., a U.S. based specialty department store retailer that operates over 780 department stores in
thirty-nine states under five banners: Bealls, Goody&#146;s, Palais Royal, Peebles, and Stage. Mr.
Scarborough joined Stage Stores in 2000 as its President and Chief Executive Officer, and held this
position until his retirement in 2008. Mr.&nbsp;Scarborough previously held other senior positions in
the retail sector, including President and Chief Executive Officer of Busy Body, Inc. (a specialty
retailer of premium fitness equipment) and Seattle Lighting, Inc. (a supplier of lighting fixtures
to the homebuilder, commercial 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.&nbsp;Scarborough began his retail career in 1972, at Filene&#146;s of Boston, a
division of Federated Department Stores. Mr.&nbsp;Scarborough also serves on the board of directors of
Charming Charlie, Inc. (a women&#146;s fashion accessories house). Mr.&nbsp;Scarborough was educated at St.
Michael&#146;s College.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><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.&nbsp;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.&nbsp;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 &#038; Co. and is
Chairman of the Board of the Mutual Funds of The Northern Trust. Mr.&nbsp;Strubel is also Trustee of
the University of Chicago. Mr Srubel was educated at Williams College and Harvard Business School.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><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.&nbsp;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.&nbsp;Valdes-Fauli also serves on the board of directors of
Blue Cross Shield of Florida (health insurance provider). Mr.&nbsp;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.&nbsp;Valdes-Fauli holds a Master&#146;s Degree in international finance from Thunderbird
Graduate School for International Management.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><I>Laurence G. Sellyn </I>was appointed to the position of Executive Vice-President, Chief Financial and
Administrative Officer of the Company in November&nbsp;2005. He joined Gildan as Executive
Vice-President, Finance and Chief
</DIV>




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<DIV style="font-family: Helvetica,Arial,sans-serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Financial Officer of the Company in April&nbsp;1999. Prior to joining Gildan, Mr.&nbsp;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&nbsp;1992 to March&nbsp;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.&nbsp;Sellyn is a Fellow
of the Institute of Chartered Accountants of England and Wales and a graduate of Oxford University.
Mr.&nbsp;Sellyn is on the Advisory Board of H&#233;ritage Montr&#233;al, and acts as Co-Chairman of their
campaigns.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><I>Michael R. Hoffman </I>joined Gildan in October&nbsp;1997. He served as Vice-President, Sales and Marketing
for the international division until his appointment as President of Gildan Activewear SRL in
February&nbsp;2001. Prior to joining Gildan, Mr.&nbsp;Hoffman was employed by Fruit of the Loom, Inc., where
he last served as Divisional Vice-President of the Activewear Division.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><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.&nbsp;Sam Yu Sum
spent sixteen years with Dominion Textiles, where he served in various managerial capacities, from
manufacturing to sales.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><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&nbsp;2001 and his title was changed to Vice-President, Corporate Apparel
Operations in September&nbsp;2003. In August&nbsp;2004, he was appointed Executive Vice-President, Apparel
Manufacturing and was appointed Executive Vice-President, Manufacturing in January&nbsp;2005.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><I>Eric R. Lehman </I>joined Gildan in December&nbsp;2006 as Executive Vice-President, Supply Chain. In
November&nbsp;2008, Mr.&nbsp;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.&nbsp;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.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><I>Richard Petersen </I>joined Gildan in May&nbsp;2010 as Executive Vice-President, Corporate Citizenship.
Prior to joining Gildan, Mr.&nbsp;Petersen established a corporate responsibility practice at NATIONAL
Public Relations, a practice ranked among the Top 10 in the world for communications firms by
Corporate Responsibility Officer magazine. In 2009, Mr.&nbsp;Petersen was recognized as one of Quebec&#146;s
10 Environmental Leaders by Les Affaires newspaper.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">As at December&nbsp;6, 2010, the executive officers and directors of the Company as a group own
10,274,692 Common Shares, which represents 8.5% of the voting rights attached to all Common
Shares.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>8. AUDIT COMMITTEE DISCLOSURE</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Mandate of the Audit and Finance Committee</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The mandate of the Audit and Finance Committee is included herewith as Appendix&nbsp;A.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Composition of the Audit and Finance Committee</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">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:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>William D. Anderson </I></B>&#151; Mr.&nbsp;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.
From 2001 to 2005, Mr.&nbsp;Anderson served as President of BCE Ventures (the strategic investment unit of BCE
Inc.) and he was previously the Chairman and
</DIV>




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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">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.&nbsp;Anderson was in public practice for nearly twenty years with the
accounting firm KPMG, where he was a partner for eleven years. Mr.&nbsp;Anderson was educated at the
University of Western Ontario and is a member of the Institute of Chartered Accountants of Ontario.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>George Heller </I></B>&#151; Mr.&nbsp;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
1999 to 2006. Mr.&nbsp;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 &#038; Europe
of Bata Industries Ltd. (international footwear manufacturer) and Executive Vice-President of
Woodwards Department Stores (department store chain).
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Pierre Robitaille </I></B>&#151; Mr.&nbsp;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.&nbsp;Robitaille was in
public practice for more than twenty years with the public accounting and management consulting
firm of Ernst &#038; 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.&nbsp;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.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Richard P. Strubel </I></B>&#151; Mr.&nbsp;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.&nbsp;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.&nbsp;Strubel also serves on the boards of directors of the mutual funds of
Goldman Sachs &#038; Co., and is Chairman of the Board of the
Mutual Funds of The Northern Trust. Mr.&nbsp;Strubel is also Trustee of the University of Chicago.
He was educated at Williams College and Harvard Business School.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Gonzalo F. Valdes-Fauli </I></B>&#151; Mr.&nbsp;Valdes-Fauli is a retired Vice-Chairman of Barclays Capital, the
investment banking division of Barclays Bank, London, England. Mr.&nbsp;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&nbsp;2007. Mr.&nbsp;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.
</DIV>




<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Pre-Approval of Non-Audit Services</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">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.
</DIV>





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<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>External Auditor Service Fees</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">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 2010 and 2009 were as follows:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><I>Audit Fees </I>&#151; The aggregate audit fees billed by KPMG were Cdn$1,500,608 for fiscal 2010 and
Cdn$1,373,897 for fiscal 2009. These services consisted of professional services rendered for the
annual audit of the Company&#146;s consolidated financial statements and the quarterly reviews of the
Company&#146;s interim financial statements, consultation concerning financial reporting and accounting
standards, including assistance in preparing the Company for compliance with the requirements of International Financial
Reporting Standards, and services provided in connection with statutory and regulatory filings or
engagements. The fees for the annual audit of the Company&#146;s consolidated financial statements
include fees relating to KPMG&#146;s audit of the effectiveness of the Company&#146;s internal control over
financial reporting.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><I>Audit-Related Fees </I>&#151; The aggregate audit-related fees billed by KPMG were Cdn$786,003 for fiscal
2010 and Cdn$118,500 for fiscal 2009. These services consisted of due diligence services relating
to actual and potential acquisitions totalling Cdn$650,376 for fiscal 2010 (nil for fiscal 2009),
and translation services in both years. Such due diligence services related primarily to financial
accounting and internal control issues.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><I>Tax Fees </I>&#151; The aggregate tax fees billed by KPMG were Cdn$416,780 for fiscal 2010 and Cdn$261,474
for fiscal 2009. 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, and tax advisory services relating to domestic and international taxation.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><I>All Other Fees </I>&#151; The aggregate fees billed by KPMG for all other professional services rendered
were nil for fiscal 2010 and nil for fiscal 2009.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>9. LEGAL PROCEEDINGS</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">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.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">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:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Canadian Class&nbsp;Action Suits</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">On June&nbsp;12, 2008, Gildan and certain of its senior officers were named defendants in a proposed
class action lawsuit filed in the Ontario Superior Court of Justice on behalf of persons who
acquired Common Shares between August&nbsp;2, 2007 and April&nbsp;29, 2008, 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&nbsp;million, punitive damages of Cdn$5&nbsp;million and
other monetary relief.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">A motion has also been filed on June&nbsp;17, 2008 against the same defendants before the Qu&#233;bec
Superior Court for authorization to commence a class proceeding on behalf of persons who acquired
Common Shares between August&nbsp;2, 2007 and April&nbsp;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. A motion requesting permission to amend the petition
was filed on April&nbsp;6, 2010 to align allegations in said petition with those pleaded in the Ontario
action. A case management judge has been appointed but no date has been set yet for the case
conference.
</DIV>





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<DIV style="font-family: Helvetica,Arial,sans-serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">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.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>United States Class&nbsp;Action Suits</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">On June&nbsp;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&nbsp;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&nbsp;17, 2008. The claims in
the U.S. suit are for unspecified damages.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">On July&nbsp;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&nbsp;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&nbsp;31, 2009, Gildan and the other defendants filed a response to plaintiffs&#146; motion seeking
reconsideration. On December&nbsp;4, 2009, plaintiff&#146;s motion seeking reconsideration was denied. The
plaintiffs have appealed the decision on the motion for reconsideration and the motion to dismiss,
but no date has been set yet for the appeal.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">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.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Proposed settlement agreement</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">On August&nbsp;3, 2010, the Company announced it had entered into an agreement to settle all claims
raised in these proposed class action lawsuits in both Canada and the United States, subject to
final approval from the courts. In consideration of the dismissal of the proposed class actions
currently pending before all three courts and releases from the proposed class members of the
claims against the Company and certain of its senior executives, the settlement agreement provides
for a total amount of $22.5&nbsp;million to be paid into an escrow account for distribution to the
proposed class members. The settlement is conditional on the court&#146;s approval and subject to the
Company&#146;s option to terminate the settlement in the event valid opt-outs by the proposed class
members exceed a pre-agreed confidential opt-out threshold. Under the agreement, the Company would
have no financial obligation as the settlement would be entirely funded by the Company&#146;s insurers,
and therefore no provision has been recorded in the 2010 Financial Statements.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">In the event the Company were to elect to terminate the settlement agreement because valid opt-outs
by proposed class members exceed the pre-agreed opt-out threshold, or if the courts do not provide
final approval of the settlement, the parties would revert to their litigation position immediately
prior to the execution of the settlement agreement. If such event were to occur, the Company would
continue to strongly contest the basis upon which these actions are predicated and would vigorously
defend its position. Under this scenario, due to the inherent uncertainties of litigation, it would
not be possible to predict the final outcome of these lawsuits or determine the amount of any
potential losses, if any.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>10. TRANSFER AGENT AND REGISTRAR</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">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.
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">








</TABLE>
</DIV>
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</DIV>

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<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">



</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>11. MATERIAL CONTRACTS</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Other than the agreements entered into the normal course of business, the only material agreement
entered into in fiscal 2010, or before fiscal 2010 and which is still in force is the Shareholder
Rights Plan Agreement approved by the Board of Directors on December&nbsp;1, 2010 and which will be
subsequently submitted to the Company&#146;s shareholders for ratification at the annual shareholders&#146;
meeting on February&nbsp;9, 2011. This agreement was filed through SEDAR on December&nbsp;3, 2010.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>12. INTERESTS OF EXPERTS</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">KPMG<FONT style="FONT-variant: SMALL-CAPS">, </FONT>the external auditor of the Company, reported on the 2010 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.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>13. FORWARD-LOOKING STATEMENTS</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">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, including, without
 limitation, our expectation with regards to unit volume growth, sales revenue, cost reductions and
efficiencies, gross margins, selling, general and administrative expenses, capital expenditures and the impact of non-recurring items.
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 22 of the 2010 Annual MD&#038;A, and the
risks described under the section &#147;Risks and Uncertainties&#148; beginning on page 36 of the 2010
Annual MD&#038;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.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">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:
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>our ability to implement our growth strategies and plans, including achieving market
share gains, implementing cost reduction initiatives and completing and successfully
integrating acquisitions;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the intensity of competitive activity and our ability to compete effectively;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>adverse changes in general economic and financial conditions globally or in one or more
of the markets we serve;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>our reliance on a small number of significant customers;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the fact that our customers do not commit contractually to minimum quantity purchases;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>our ability to anticipate changes in consumer preferences and trends;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>our ability to manage production and inventory levels effectively in relation to changes
in customer demand;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>fluctuations and volatility in the price of raw materials used to manufacture our
products, such as cotton and polyester fibres;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>our dependence on key suppliers and our ability to maintain an uninterrupted supply of
raw materials;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the impact of climate, political, social and economic risks in the countries in which we
operate;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>disruption to manufacturing and distribution activities due to labour disruptions,
political instability, bad weather, natural disasters, pandemics and other unforeseen
adverse events;</TD>
</TR>


</TABLE>
</DIV>
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<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">



</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>changes to international trade legislation that the Company is currently relying on in
conducting its manufacturing operations or the application of safeguards thereunder;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>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;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>compliance with applicable environmental, tax, trade, employment, health and safety, and
other laws and regulations in the jurisdictions in which we operate;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>our significant reliance on computerized information systems for our business
operations;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>changes in our relationship with our employees or changes to domestic and foreign
employment laws and regulations;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>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;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>our dependence on key management and our ability to attract and retain key personnel;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>changes to and failure to comply with consumer product safety laws and regulations;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>changes in accounting policies and estimates; and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>exposure to risks arising from financial instruments, including credit risk, liquidity
risk, foreign currency risk and interest rate risk, as well as risks arising from commodity
prices.</TD>
</TR>

</TABLE>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">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.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">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 2011 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.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>14. ADDITIONAL INFORMATION</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">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 2010 Financial Statements and the 2010 Annual MD&#038;A for its most recently completed
financial year, both of which are incorporated herein by reference.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">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:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-left: 6%; margin-top: 6pt">600 de Maisonneuve Boulevard West, 33<SUP style="FONT-size: 85%; vertical-align: text-top">rd</SUP> Floor<BR>
Montreal, Qu&#233;bec<BR>
H3A 3J2<BR>
Telephone: (514)&nbsp;735-2023
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">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.
</DIV>







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<DIV style="font-family: Helvetica,Arial,sans-serif">




<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>APPENDIX A &#151; MANDATE OF THE AUDIT AND FINANCE COMMITTEE</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">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>,
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.
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>1.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Membership and Quorum</B></TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>a minimum of three directors;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>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;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>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;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>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;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>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;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the chair of the Compensation and Human Resources committee of the Corporation is a
member of the Audit Committee;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>quorum of majority of members.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>2.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Frequency and Timing of Meetings</B></TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>normally contemporaneously with the Company&#146;s Board meetings;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>at least four times a year and as necessary.</TD>
</TR>




</TABLE>
</DIV>
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</DIV>

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</TABLE>
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<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>3.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Mandate</B></TD>
</TR>

</TABLE>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The responsibilities of the Audit Committee include the following:
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><I>(a)</I></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><I>Overseeing financial reporting</I></TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>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;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>reviewing, with management and the external auditors, the annual audited
consolidated financial statements of the Corporation and accompanying information,
including the report of the auditors thereon to be included in the Annual Report
of the Corporation, the Corporation&#146;s MD&#038;A disclosure and annual earnings press
release, prior to their release, filing and distribution;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>reviewing, with management and the external auditors, quarterly consolidated
financial statements of the Company and accompanying information, including the
Company&#146;s MD&#038;A disclosure and quarterly earnings press release, prior to their
release, filing and distribution;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>reviewing, with management and, where appropriate the 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;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>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 and other stakeholders;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>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;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>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;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>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;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>reviewing the external auditors&#146; quarterly review engagement report;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>overseeing the procedures to review management certifications filed with
applicable securities regulators;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>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;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>overseeing the procedures to monitor the public disclosure of information by the
Company;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>reviewing at least annually the Company&#146;s disclosure policy;</TD>
</TR>



</TABLE>
</DIV>
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</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>reviewing the results of the external audit, any significant problems
encountered in performing the audit, and management&#146;s response and/or action plan
related to any Management Letter issued by the external auditors and any
significant recommendations contained therein.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><I>(b)</I></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><I>Monitoring risk management and internal controls</I></TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>receiving periodically management&#146;s report assessing the adequacy and
effectiveness of the Company&#146;s disclosure controls and procedures;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>receiving periodically management&#146;s reports assessing the adequacy and
effectiveness of the Corporation&#146;s systems of internal control over financial
reporting; and reviewing the report of the auditors thereon;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>reviewing insurance coverage (annually and as may otherwise be appropriate);</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>overseeing the processes in place to identify business risks and opportunities
and overseeing the implementation of processes to manage these risks and
opportunities;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>reviewing the Corporation&#146;s policies and parameters regarding hedging activity
and derivatives contracts entered into by management in order to address risks
associated with foreign exchange fluctuations, commodity prices, interest rates
and any other risks where the Corporation enters into derivatives contracts;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>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;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>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;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>requesting the performance of any specific audit, as required.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><I>(c)</I></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><I>Monitoring internal auditors</I></TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>ensuring that the head of internal audit has a functional reporting relationship
with the Audit Committee;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>overseeing the access by internal auditors to all levels of management in order
to carry out their duties;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>regularly monitoring the internal audit function&#146;s performance, its
responsibilities, staffing and budget;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>approving the appointment and termination of the Company&#146;s chief internal
auditor;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>ensuring the ongoing accountability of the internal audit function to the Audit
Committee and to the Board.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><I>(d)</I></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><I>Monitoring external auditors</I></TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>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;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>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</TD>
</TR>

</TABLE>
</DIV>
<P align="center" style="font-size: 10pt"><!-- Folio -->29<!-- /Folio -->
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<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #textcolor#; background: #bgcolor#">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>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;</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>overseeing the direct reporting and accountability of the external auditors to
the Audit Committee and to the Board;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>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)&nbsp;critical accounting policies and practices used, (ii)&nbsp;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);</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>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;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>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;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>reviewing hiring policies for employees or former employees of the Company&#146;s
firm of external auditors;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>overseeing the rotation of lead, concurring and other audit partners, to the
extent required by Canadian and U.S. securities law standards.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><I>(e)</I></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><I>Reviewing financings</I></TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>reviewing the adequacy of the Company&#146;s financing, including terms and
conditions of all new material financing arrangements.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><I>(f)</I></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><I>Evaluating the performance of the Audit Committee</I></TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>overseeing the existence of processes to annually evaluate the performance of
the Audit Committee.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>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.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>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.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>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 Corporation&#146;s
financial statements and control environment must be discussed. In addition, at least once a
quarter, and more frequently as required, the Audit Committee</TD>
</TR>

</TABLE>
</DIV>
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<DIV style="font-family: Helvetica,Arial,sans-serif">


<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #textcolor#; background: #bgcolor#">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>meets separately with management and also without management or any non-independent
directors present.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>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.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>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 from whom they receive information, (ii)
the accuracy and completeness of the information provided, and (iii)&nbsp;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)&nbsp;management has maintained
appropriate accounting and financial reporting principles or appropriate internal
controls and procedures, or (ii)&nbsp;the Company&#146;s financial statements have been prepared
and, if applicable, audited in accordance with generally accepted accounting
principles.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt">* * *
</DIV>



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<DIV align="left" style="font-size: 10pt; margin-top: 12pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>A. Undertaking</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>B. Consent to Service of Process</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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&nbsp;A Subordinate Voting Shares (now Common Shares).
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>C. Evaluation of disclosure controls and procedures</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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&nbsp;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.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>D. Management&#146;s annual report on internal control over financial reporting</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our management is responsible for establishing and maintaining adequate internal control over
financial reporting, as such term is defined in Rules&nbsp;13a-15(f) and 15d-15(f) under the Exchange
Act.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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)&nbsp;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)&nbsp;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.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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&nbsp;3, 2010, based on the framework set forth
in <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.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>E. Attestation report of the registered public accounting firm.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;KPMG LLP (&#147;KPMG&#148;), an independent registered public accounting firm, that audited and reported
on our financial statements attached as Exhibit&nbsp;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&nbsp;3, 2010. The attestation report is included on page 48 of the financial statements attached
as Exhibit&nbsp;99.2 to this Annual Report on Form 40-F.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>F. Changes in internal controls over financial reporting.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;There have been no changes during fiscal year 2010 in our internal control over financial
reporting that have materially affected, or are reasonably likely to materially affect, our
internal control over financial reporting.
</DIV>



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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>G. Audit Committee Financial Experts</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Registrant&#146;s board of directors has determined that it has at least three (3)&nbsp;audit
committee financial experts serving on its audit committee. Mr.&nbsp;Pierre Robitaille, Mr.&nbsp;Gonzalo F.
Valdes-Fauli and Mr.&nbsp;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.&nbsp;Valdes-Fauli and Mr.&nbsp;Anderson as audit committee financial experts does not make
Mr.&nbsp;Robitaille, Mr.&nbsp;Valdes-Fauli and Mr.&nbsp;Anderson &#147;experts&#148; for any purpose, impose any duties,
obligations or liability on Mr.&nbsp;Robitaille, Mr.&nbsp;Valdes-Fauli and Mr.&nbsp;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.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>H. Code of Ethics</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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>www.gildan.com/corporate/IR/corporateGovernance.cfm</u>, and is
available, without charge, in print to any shareholder who requests it.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>I. Principal Accountant Fees and Services</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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 2010. The aggregate fees billed for professional services by KPMG for each of
the last two (2)&nbsp;fiscal years, were as follows:
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%"><I>Audit Fees </I>&#151; The aggregate audit fees billed by KPMG were Cdn$1,500,608 for fiscal 2010 and
Cdn$1,373,897 for fiscal 2009. These services consisted of professional services rendered
for the annual audit of the Company&#146;s consolidated financial statements and the quarterly
reviews of the Company&#146;s interim financial statements, consultation concerning financial
reporting and accounting standards, including assistance in preparing the Company for
compliance with the requirements of International Financial Reporting Standards, and
services provided in connection with statutory and regulatory filings or engagements. The
fees for the annual audit of the Company&#146;s consolidated financial statements include fees
relating to KPMG&#146;s audit of the effectiveness of the Company&#146;s internal control over
financial reporting.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%"><I>Audit-Related Fees </I>&#151; The aggregate audit-related fees billed by KPMG were Cdn$786,003 for
fiscal 2010 and Cdn$118,500 for fiscal 2009. These services consisted of due diligence
services relating to actual and potential acquisitions totalling Cdn$650,376 for fiscal 2010
(nil for fiscal 2009), and translation services in both years. Such due diligence services
related primarily to financial accounting and internal control issues.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%"><I>Tax Fees </I>&#151; The aggregate tax fees billed by KPMG were Cdn$416,780 for fiscal 2010 and
Cdn$261,474 for fiscal 2009. 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, and tax advisory services relating to
domestic and international taxation.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%"><I>All Other Fees </I>&#151; The aggregate fees billed by KPMG for all other professional services
rendered were nil for fiscal 2010 and nil for fiscal 2009.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All fees billed to the Registrant by KPMG in fiscal 2010 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>www.gildan.com/corporate/IR/corporateGovernance.cfm</u>.
</DIV>





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<DIV align="left" style="font-size: 10pt; margin-top: 12pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>J. Off-Balance Sheet Arrangements</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Operating leases and commitments</I>

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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&#038;A (see Exhibit&nbsp;99.1). As disclosed in Note 13 to the Registrant&#146;s
Consolidated Financial Statements (see Exhibit&nbsp;99.2), the Registrant has issued standby letters of
credit and corporate guarantees primarily from various servicing agreements amounting to $21.8
million at October&nbsp;3, 2010.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Derivative Financial Instruments</I>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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&#038;A beginning on page 22 (see Exhibit&nbsp;99.1).
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For the years ended October&nbsp;3, 2010 and October&nbsp;4, 2009, net earnings included a recognized
gain of $3.8&nbsp;million and a recognized loss of $0.1&nbsp;million, respectively, both relating to
derivative financial instruments.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As disclosed in Note 20 to the Registrant&#146;s Consolidated Financial Statements (see exhibit
99.2), at October&nbsp;3, 2010 the Registrant had outstanding derivative financial instruments relating
to commitments to buy and sell foreign currencies through forward foreign exchange contracts. The
fair value of the forward foreign exchange contracts, determined using observable market inputs,
was a net liability of $2.0&nbsp;million as at October&nbsp;3, 2010 and nil as at October&nbsp;4, 2009.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>K. Tabular Disclosure of Contractual Obligations</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;See page 20 of Exhibit&nbsp;99.1.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>L. Corporate Governance Guidelines</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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>www.gildan.com/corporate/IR/corporateGovernance.cfm</u>, and are available in print to any
shareholder who requests them.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>M. Identification of the Audit Committee</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Registrant has a standing audit committee established in accordance with Section&nbsp;3 (a)
(58) (A)&nbsp;of the Exchange Act. The members of the Registrant&#146;s audit committee are Pierre
Robitaille, William D. Anderson, Richard P. Strubel, Gonzalo F. Valdez-Fauli and George Heller, who
joined the audit committee in December&nbsp;2009. See the Audit Committee Disclosure section of our
Annual Information Form included herein for additional information.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>N. Summary of Significant Differences from NYSE Corporate Governance Rules</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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)&nbsp;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.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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,
</DIV>



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<DIV style="font-family: Helvetica,Arial,sans-serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">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.
</DIV>



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<DIV style="font-family: Helvetica,Arial,sans-serif">




<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>SIGNATURES</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;DATED: December&nbsp;6, 2010
</DIV>

<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="48%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left"><B>GILDAN ACTIVEWEAR INC.</B><BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD colspan="3" style="border-bottom: 1px solid #000000" align="left">/s/ <I>Lindsay Matthews</I>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD valign="top">Name:&nbsp;&nbsp;</TD>
    <TD colspan="2" align="left">Lindsay Matthews&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD valign="top">Title:&nbsp;&nbsp;</TD>
    <TD colspan="2" align="left">Director, Legal Services and Corporate<br>
Secretary&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="48%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>

</TABLE>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>EXHIBIT INDEX</B>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
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<TR valign="bottom">
    <TD width="8%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="90%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Exhibit No.</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Description</B></TD>
</TR>

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<TR valign="bottom"><!-- Blank Space -->
    <TD align="center"><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="center"><DIV style="margin-left:15px; text-indent:-15px">99.1</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">Management&#146;s Discussion and Analysis of the Registrant for the year ended October 3, 2010</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD align="center"><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top"><DIV style="margin-left:15px; text-indent:-15px">99.2</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">Audited comparative consolidated financial statements of the Registrant as at and for the year ended October 3, 2010</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD align="center"><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="center"><DIV style="margin-left:15px; text-indent:-15px">99.3</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">Consent of KPMG LLP</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD align="center"><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="center"><DIV style="margin-left:15px; text-indent:-15px">99.4</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">Reconciliation to United States GAAP</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD align="center"><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="center"><DIV style="margin-left:15px; text-indent:-15px">99.5</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">Officers&#146; Certifications Required by Rule 13a-14(a) or Rule 15d-14(a)</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD align="center"><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top"><DIV style="margin-left:15px; text-indent:-15px">99.6</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">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</TD>
</TR>
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<TYPE>EX-99.1
<SEQUENCE>2
<FILENAME>n66662exv99w1.htm
<DESCRIPTION>EX-99.1
<TEXT>
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<HEAD>
<TITLE>exv99w1</TITLE>
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<BODY bgcolor="#FFFFFF">
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<DIV style="font-family: Helvetica,Arial,sans-serif">


<DIV align="right" style="font-size: 10pt; margin-top: 12pt"><B>Exhibit&nbsp;99.1</B>
</DIV>


<DIV align="right" style="font-size: 10pt; margin-top: 12pt"><IMG src="n66662n6666206.gif" alt="(GILDAN LOGO)">
</DIV>


<DIV align="right" style="font-size: 10pt; margin-top: 6pt"><FONT style="font-size:16pt">2010</FONT><BR>
<FONT style="font-size:16pt">REPORT TO</FONT><BR>
<FONT style="font-size:16pt">SHAREHOLDERS</FONT><BR><BR>
<FONT style="font-size:10pt">December&nbsp;6, 2010</font>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="88%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR></TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>MD&#038;A:</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">OUR BUSINESS</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">STRATEGY AND OBJECTIVES</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">OPERATING RESULTS</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">SUMMARY OF QUARTERLY RESULTS</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">15</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">FINANCIAL CONDITION</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">17</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">CASH FLOWS</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">18</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">LIQUIDITY AND CAPITAL RESOURCES</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">19</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">LEGAL PROCEEDINGS</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">21</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">OUTLOOK</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">22</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">FINANCIAL RISK MANAGEMENT</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">22</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">CRITICAL ACCOUNTING ESTIMATES</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">27</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">ACCOUNTING POLICIES AND FUTURE ACCOUNTING STANDARDS</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">29</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">RELATED PARTY TRANSACTIONS</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">35</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">DISCLOSURE CONTROLS</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">35</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">INTERNAL CONTROL OVER FINANCIAL REPORTING</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">35</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">RISKS AND UNCERTAINTIES</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">36</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">DEFINITION AND RECONCILIATION OF NON-GAAP MEASURES</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">42</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">FORWARD LOOKING STATEMENTS</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">44</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">MANAGEMENT&#146;S RESPONSIBILITY FOR FINANCIAL REPORTING</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">46</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">AUDITED CONSOLIDATED FINANCIAL STATEMENTS</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">47</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">NOTES TO AUDITED CONSOLIDATED FINANCIAL STATEMENTS</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">53</TD>
    <TD>&nbsp;</TD>
</TR>
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</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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<DIV style="font-family: Helvetica,Arial,sans-serif">

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="47%"></TD>
    <TD width="5%"></TD>
    <TD width="47%"></TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD align="left" valign="top"><IMG src="n66662n6666203.gif" alt="(GILDAN LOGO)">
</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">MANAGEMENT&#146;S DISCUSSION AND ANALYSIS</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">This Management&#146;s Discussion and Analysis (MD&#038;A) comments on Gildan&#146;s operations, performance
and financial condition as at and for the years ended October&nbsp;3, 2010 and October&nbsp;4, 2009, 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&#038;A should be read together with the 2010 audited Consolidated Financial
Statements and the related notes. This MD&#038;A is dated December&nbsp;6, 2010. All amounts in this report
are in U.S. dollars, unless otherwise noted.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">All financial information contained in this MD&#038;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; in
this MD&#038;A. The audited Consolidated Financial Statements and this MD&#038;A were reviewed by Gildan&#146;s
Audit and Finance Committee and were approved by our Board of Directors.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Additional information about Gildan, including our 2010 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.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">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 44.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">In this MD&#038;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.
</DIV>


<DIV align="left" style="font-size: 12pt; margin-top: 12pt"><B>OUR BUSINESS</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><FONT style="FONT-variant: SMALL-CAPS"><B>Our Products and Markets</B></FONT>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">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.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">In the screenprint channel, we sell activewear products, namely T-shirts, fleece and
sport shirts in undecorated &#147;blank&#148; form under the Gildan brand in large quantities to wholesale
distributors, 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 providing 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 the Gildan brand and under various retailer exclusively licensed and private label
brands.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">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,
</DIV>


<DIV align="right" style="font-size: 10pt; margin-top: 12pt">GILDAN 2010 REPORT TO SHAREHOLDERS P.2
</DIV>



<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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<DIV style="font-family: Helvetica,Arial,sans-serif">



<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="47%"></TD>
    <TD width="5%"></TD>
    <TD width="47%"></TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD align="left" valign="top"><IMG src="n66662n6666203.gif" alt="(GILDAN LOGO)">
</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">MANAGEMENT&#146;S DISCUSSION AND ANALYSIS</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">frequently replenished, and since logos and designs for the screenprint market are not imprinted or
embroidered by Gildan. The majority of our product styles continue from year to year and any
variations to products are usually limited to colour assortment, fabric weight, blends and
enhancements, with limited design changes.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Our value proposition is based on providing consistent high quality, competitive pricing and fast
and flexible replenishment combined with 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.
Our vertical integration has allowed us to reduce costs and ensure consistency of quality as we
control essentially all aspects of our manufacturing. Continued innovations in our manufacturing
process have allowed us to ensure colour/shade consistency and high performance of our activewear
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. These innovations have resulted in further improving the value
proposition of our activewear and sock products to our customers.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><FONT style="FONT-variant: SMALL-CAPS"><B>Our Facilities</B></FONT>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Textile and Sock Manufacturing</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">To support our sales in the various markets, we have developed two main manufacturing hubs
located in Central America and the Caribbean Basin where we have built our own modern manufacturing
facilities which include textile manufacturing facilities for the production of activewear and underwear fabric
and sock manufacturing facilities. We also operate sewing facilities which support the fabric
production from our textile facilities. Our Central American and Caribbean Basin manufacturing hubs
service the North American and international markets in which we compete. As an initial step
towards the establishment of a third manufacturing hub  to support our growth in targeted
markets in Asia and Europe, during fiscal 2010, we acquired a vertically-integrated manufacturing
facility for the production of activewear in Bangladesh.</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><U>Central American manufacturing hub</U>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Our largest manufacturing hub is based in Central America.
Manufacturing operations include two vertically-integrated knitting, bleaching, dyeing, finishing
and cutting textile facilities (Rio Nance 1 and Rio Nance 2) which produce activewear and underwear
fabric located in Rio Nance, Honduras. We currently intend to begin the construction of a third
textile facility (Rio Nance 5) for the production of activewear and underwear fabric at the same
location. We operate sewing facilities in Honduras and Nicaragua which sew the textiles produced at
Rio Nance 1 and Rio Nance 2. We have also constructed and operate two integrated sock manufacturing
facilities in Rio Nance (Rio Nance 3 and 4). The construction of Rio Nance 4 was essentially
completed during fiscal 2010 and the ramp-up of production began in April&nbsp;2010. Rio Nance 4 is
expected to further support future sales growth in the sock category and position us to continue to
reduce our sock manufacturing costs. In addition to our integrated sock manufacturing operations
located in our Central American hub, we operate U.S. sock knitting facilities in Fort Payne,
Alabama which were purchased as part of a sock manufacturing acquisition in fiscal 2008.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><U>Caribbean Basin manufacturing hub</U>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Our Caribbean Basin manufacturing hub includes a vertically-integrated textile facility for
the production of activewear fabric in Bella Vista, Dominican Republic. Textiles produced at our
manufacturing facility in the Dominican Republic are sewn at third-party contractor operations in
Haiti and at our sewing facility in the Dominican Republic.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">On January&nbsp;12, 2010, Haiti was devastated by a massive earthquake which had a major impact on
Gildan&#146;s third-party contractor operations in Haiti which are used to sew the majority of the
fabric produced
</DIV>


<DIV align="right" style="font-size: 10pt; margin-top: 12pt">GILDAN 2010 REPORT TO SHAREHOLDERS P.3
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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<DIV style="font-family: Helvetica,Arial,sans-serif">



<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="47%"></TD>
    <TD width="5%"></TD>
    <TD width="47%"></TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD align="left" valign="top"><IMG src="n66662n6666203.gif" alt="(GILDAN LOGO)">
</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">MANAGEMENT&#146;S DISCUSSION AND ANALYSIS</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">at our Dominican Republic textile facility. While Gildan immediately established a program for
humanitarian aid efforts, we also took
steps to minimize the impact of the disruption of contractor production in Haiti, including the temporary addition of
overtime sewing shifts at Gildan&#146;s Central American sewing operations and the use of additional third-party contractors. Contractor operations in
Haiti began to resume operations shortly after the earthquake and by the end of the second quarter
of fiscal 2010, contractor operations had returned to production levels substantially similar to
those prior to the impact of the earthquake. The impact on the Company&#146;s operations included a
temporary loss of production primarily during the second quarter, which subsequently resulted in
lost sales opportunities as well as supply chain inefficiencies during the balance of the  fiscal year. During
the fourth quarter of fiscal 2010, the Company received insurance proceeds of $8.0&nbsp;million,
reflecting the maximum insurance recovery available under its insurance policy related to the
earthquake in Haiti, which have been recorded as a reduction of cost of sales in the consolidated
statement of earnings.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Yarn-Spinning</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">CanAm Yarns, LLC (CanAm), our joint-venture company with Frontier Spinning Mills, Inc.
(Frontier), operates yarn-spinning facilities in Georgia and North Carolina. We source our yarn
requirements from CanAm, as well as from Frontier and other third-party yarn providers, with whom
we have supply agreements.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Sales, Marketing and Distribution</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Our sales and marketing office which services our global screenprint markets is located in St.
Michael, Barbados. During fiscal 2010 we also began to consolidate all of our retail sales and
marketing activities at a single location at our office in Charleston, South Carolina. These
offices are responsible for customer-related functions, including sales management, marketing,
customer service, credit management, sales forecasting, and inventory control and logistics for
each of their respective markets.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">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. The Company has begun an
expansion and further automation of the Eden, North Carolina distribution centre to service demand
in the U.S. screenprint channel and further reduce distribution costs.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">All distribution activities related to servicing retail customers are now in the process of being
consolidated at our distribution centre in Charleston, South Carolina which was acquired in the
first quarter of fiscal 2010, resulting in the closure of our distribution centres located in
Martinsville, Virginia and Fort Payne, Alabama.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Employees and Corporate Offices</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">As of the end of fiscal 2010 we employed more than 28,000 full-time employees worldwide. Our
corporate head office is located in Montreal, Canada.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><FONT style="FONT-variant: SMALL-CAPS"><B>Competitive Environment</B></FONT>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The 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 combined with our commitment to leading
environmental and social responsibility practices are also increasingly becoming important factors
for our customers.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">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., Alstyle Apparel, a division of Ennis Corp., and Delta Apparel Inc. The competitive landscape
in the European screenprint channel is similar to that in North America, as we compete primarily
with the European
</DIV>


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</DIV>



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</TR>
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    <TD align="left" valign="top"><IMG src="n66662n6666203.gif" alt="(GILDAN LOGO)">
</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">MANAGEMENT&#146;S DISCUSSION AND ANALYSIS</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">divisions of the major U.S.-based manufacturers mentioned above. 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.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><FONT style="FONT-variant: SMALL-CAPS"><B>Economic Environment </B></FONT>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">During fiscal 2009, the severe downturn in the economic environment negatively impacted demand
for our products and also resulted in inventory destocking in the U.S. and other international
screenprint markets. 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. Similarly, weaker demand and customer inventory reductions also occurred in the
mass market retail channel.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Starting in the second quarter of fiscal 2010, we began to experience a recovery in demand in our
target screenprint markets. The second fiscal quarter marked the first quarter of growth in unit
shipments from U.S. wholesale distributors to U.S. screenprinters, following eight consecutive
quarters of overall industry demand declines. Unit shipments from U.S. wholesale distributors to
U.S. screenprinters were up 2.7% during fiscal 2010 and 5.8% for the last nine months of fiscal
2010. Gildan continued to gain share in the screenprint channel throughout fiscal 2010. As a
result, unit shipments of Gildan products from U.S. distributors to U.S. screenprinters increased
16.7% compared to fiscal 2009, significantly outpacing overall industry growth of 2.7% for the
fiscal year.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">During fiscal 2010, the apparel marketplace has been facing the challenges of global yarn shortages
and limited freight capacities as a result of the recessionary conditions over the past two years,
further compounded by volatility in cotton prices. Towards the latter part of fiscal 2010, we began
to see dramatic appreciation in cotton prices which continued to increase early in fiscal 2011.
Reports of a tightening global supply of cotton, adverse weather-related impacts on cotton
producing countries, export restrictions, a weaker U.S. dollar, and the rise in speculative trading
in the cotton market are some of the factors contributing to the significant surge in cotton prices
to record levels. Consequently, apparel suppliers have begun to initiate selling price increases in
response to rising cotton and other input costs. Although Gildan is implementing cost-reduction
initiatives and selling price increases in the markets in which it competes, continued uncertainty
about cotton prices and the effect of selling price increases on consumer demand are potential risks to the current outlook for our
business. We refer the reader to the &#147;Risks and Uncertainties&#148; section of this MD&#038;A.
</DIV>


<DIV align="left" style="font-size: 12pt; margin-top: 12pt"><B>STRATEGY AND OBJECTIVES</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Our growth strategy comprises the following initiatives:
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left"><B>1.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Maximize screenprint market penetration and opportunities</B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>While we have achieved a leadership position in the screenprint distributor channel in the
U.S. and in Canada, we continue to pursue further growth opportunities in the North American and
international screenprint markets.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B><I>U.S. Screenprint Distributor Market</I></B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>During fiscal 2010, our overall total market share in this channel increased to 64.1% for the
nine months ended September&nbsp;30, 2010 compared to 56.6% for the same period last year. We intend
to continue to pursue further penetration in the U.S. distributor screenprint channel in all of
the product categories that we serve, 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 and new styles tailored
for women could enable us to further increase our market share by serving certain niches of the
screenprint channel in which we previously did not participate. Although the global economic
downturn which began in the latter part of 2008 and</TD>
</TR>

</TABLE>
</DIV>

<DIV align="right" style="font-size: 10pt; margin-top: 12pt">GILDAN 2010 REPORT TO SHAREHOLDERS P.5
</DIV>


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<DIV align="center">
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<TR valign="bottom">
    <TD align="left" valign="top"><IMG src="n66662n6666203.gif" alt="(GILDAN LOGO)">
</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">MANAGEMENT&#146;S DISCUSSION AND ANALYSIS</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>continued throughout 2009 negatively impacted demand in the U.S. distributor market, Gildan
continued to increase its leading share position during that period. Consequently, the
commencement of a recovery in demand in the distributor channel during fiscal 2010, combined
with our continued market share penetration, translated into strong sales growth for Gildan. We
expect to leverage our increase in market share in the U.S. distributor channel as the U.S.
screenprint market continues to recover to levels prior to the economic downturn.</TD>
</TR>

</TABLE>
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B><I>International and Other Screenprint Markets</I></B></TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>We believe we can continue to expand our presence in international and other screenprint markets. As the Company adds more production capacity, we intend to continue to expand our presence in
international screenprint markets, specifically Europe, Mexico and the Asia/Pacific region, and we
also plan to continue to grow our sales to large branded apparel companies and retailers which sell
imprinted activewear and are currently not serviced by our existing U.S. wholesale distributors. We
are continuing to expand our integrated manufacturing hubs in Central America and the Caribbean
Basin to support our projected growth, including allocating capacity to service product categories and
geographical locations where our growth was previously constrained by capacity availability. In
addition, the acquisition of our first vertically-integrated facility for the manufacture of ring-spun T-
shirts in Bangladesh during fiscal 2010, combined with the development over time of a vertically-
integrated manufacturing hub is intended to support our strategy to grow our international business in
Asia and Europe. During fiscal 2010, our unit sales to international and other screenprint markets
increased 58.5% compared to fiscal 2009.
</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left"><B>2.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Leverage our successful business model to further penetrate the mass-market retail channel</B></TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>We are leveraging our existing core competencies, including our large scale
capital-intensive manufacturing, successful business model and competitive strengths into the
U.S. mass-market retail channel. 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. As a leading supplier of basic
family socks in the U.S. mass-market retail channel, we intend to continue to build and leverage
our market share position in socks to establish an increased presence in the mass-market retail
channel with our activewear and underwear product lines. Our marketing strategy comprises a
three-pronged branding approach. First, within the mass-market retail channel, we are
positioning ourselves as a strategic supplier of selective national retailers&#146; exclusive brand
licenses or private label brands for socks, activewear and underwear to large retailers seeking
to consolidate their supply chain with fewer, larger manufacturers. Secondly, we are pursuing
the steady development of a Gildan brand strategy selling products with the Gildan label to
retailers using supplier brands to differentiate their product offering. Thirdly, we will also
evaluate alternatives to acquire or license selective brands for additional channels of
distribution.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Although sock sales in fiscal 2010 were down year-over-year largely as a result of the
discontinuance of unprofitable sock programs and the elimination of certain programs that did
not fit with our business model, during fiscal 2010 we secured additional shelf-space for
existing sock programs and significant participation in Back-to-School programs at major
mass-market retailers. We shipped our first major men&#146;s underwear program for Walmart under the
Starter brand and a new underwear program for another mass-market retailer announced at the end
of fiscal 2009. During fiscal 2010, we obtained new retail programs in activewear, including the
family fleece program at a major national discount retailer and were awarded new activewear
programs for three other retailers. In addition, we secured new activewear programs for the
retail channel for fiscal 2011. During fiscal 2010, we continued to expand our regional retailer
customer base as well as Gildan branded product programs with retail chains.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="right" style="font-size: 10pt; margin-top: 12pt">GILDAN 2010 REPORT TO SHAREHOLDERS P.6
</DIV>


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<DIV align="center">
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    <TD width="47%"></TD>
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    <TD width="47%"></TD>
</TR>
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</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">MANAGEMENT&#146;S DISCUSSION AND ANALYSIS</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV style="margin-top: 12pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left"><B>3.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Continue to generate manufacturing and distribution cost reductions</B></TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>We seek to continuously improve our manufacturing and distribution processes and cost
structure by developing and investing in cost-reduction initiatives. In addition to the
continuing consolidation of our manufacturing operations to our Central American and Caribbean
Basin hubs, we are implementing other cost-reduction initiatives. These include, among others,
our plans to reduce our reliance on high-cost fossil fuels and further reduce our impact on the
environment by installing additional biomass facilities as an alternate source of natural
renewable energy, and other initiatives to increase the efficiency of our energy-intensive
equipment and processes, which reflect the Company&#146;s commitment to sustainability. We are also
planning to achieve further efficiencies in operating our distribution activities from the
consolidation of our retail distribution centres to a single location in Charleston, South
Carolina and further expansion and automation of our wholesale distribution centre in Eden,
North Carolina.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>During fiscal 2010, we continued to consolidate our manufacturing operations in our
manufacturing hub in Central America as we transferred the remaining wet processing sock
operations and a portion of our knitting capacity in the U.S. to our Honduran sock manufacturing
facilities. In April&nbsp;2010, we began the ramp-up of production at our second sock manufacturing
facility, Rio Nance 4, in Honduras. We also completed the construction of a biomass steam
generation system in the Dominican Republic, which is expected to result in a reduction of our
fossil fuel consumption and related costs associated with the textile production in the
Dominican Republic. In addition, during the year we initiated similar biomass steam generation
projects for our sock manufacturing in Honduras. The biomass facility for Rio Nance 3 became
operational at the end of fiscal 2010 and the second biomass facility for Rio Nance 4 became
operational during the first quarter of fiscal 2011. We are also planning to implement similar
systems for our textile manufacturing facilities in Honduras.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left"><B>4.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Re-invest and/or redistribute cash flow</B></TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>We will continue to 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.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>On December&nbsp;2, 2010, the Company announced the introduction of its first quarterly cash
dividend. In addition, the Company also announced that it is reinstating a normal course issuer
bid to repurchase outstanding Common Shares of the Company in the open market. The Company believes
that its balance sheet and free cash flow generation provide it with significant financing
capacity and flexibility to be able to continue to pursue its growth strategy, at the same time
as introducing a dividend to provide yield and further enhance total returns to its
shareholders.</TD>
</TR>

</TABLE>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">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&#038;A.
</DIV>


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</DIV>






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<DIV align="center">
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    <TD align="right" valign="top">MANAGEMENT&#146;S DISCUSSION AND ANALYSIS</TD>
</TR>
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</DIV>


<DIV align="left" style="font-size: 12pt; margin-top: 12pt"><B>OPERATING RESULTS</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>OPERATING RESULTS FOR THE YEAR ENDED OCTOBER 3, 2010, COMPARED TO THE YEAR ENDED OCTOBER 4, 2009</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><FONT style="FONT-variant: SMALL-CAPS"><B>Non-GAAP Measures</B></FONT>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">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.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">We refer the reader to the section entitled &#147;Definition and Reconciliation of Non-GAAP Measures&#148; in
this MD&#038;A for the definition and complete reconciliation of all non-GAAP measures used and
presented by the Company to the most directly comparable GAAP measures.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><FONT style="FONT-variant: SMALL-CAPS"><B>Business Acquisition</B></FONT>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Effective March&nbsp;31, 2010, the Company acquired 100% of the common shares of Shahriyar Fabric
Industries Limited (&#147;Shahriyar&#148;), a vertically-integrated knitting, dyeing, finishing, cutting and
sewing facility for the manufacture of high-quality ring-spun T-shirts near Dhaka, Bangladesh, for
a total consideration of $15.9&nbsp;million. The purpose of the acquisition was to begin the development
over time of a vertically-integrated manufacturing hub in Asia, to position the Company to pursue
geographic markets in Asia and Europe.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Company accounted for this acquisition using the purchase method and the results of Shahriyar
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 value and taking into
account all relevant information available at that time.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Please refer to Note 2 to the 2010 audited Consolidated Financial Statements for a summary of the
estimated fair value of the assets acquired and liabilities assumed at the date of acquisition.
</DIV>


<DIV align="right" style="font-size: 10pt; margin-top: 12pt">GILDAN 2010 REPORT TO SHAREHOLDERS P.8
</DIV>



<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: Helvetica,Arial,sans-serif">



<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="47%"></TD>
    <TD width="5%"></TD>
    <TD width="47%"></TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD align="left" valign="top"><IMG src="n66662n6666203.gif" alt="(GILDAN LOGO)">
</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">MANAGEMENT&#146;S DISCUSSION AND ANALYSIS</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><FONT style="FONT-variant: SMALL-CAPS"><B>Selected Annual Information</B></FONT>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="64%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left"><I>(in $ millions, except per share amounts)</I></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>2010</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">2009</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">2008</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Net Sales</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>1,311.5</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,038.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,249.7</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Cost of sales</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>947.2</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">808.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">911.2</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Gross profit</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>364.3</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">230.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">338.5</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Selling, general and administrative expenses</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>154.7</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">134.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">142.8</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Restructuring and other charges</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>8.7</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5.5</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Operating income</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>200.9</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">89.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">190.2</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Financial expense (income), net</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>0.8</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(0.3</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9.2</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Non-controlling interest in consolidated joint venture</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>3.8</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.2</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Earnings before income taxes</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>196.3</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">89.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">180.8</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Income taxes</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right"><B>(1.9</B></TD>
    <TD nowrap><B>)</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(5.8</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">34.4</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Net earnings</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>198.2</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">95.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">146.4</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Basic EPS</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>1.64</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.79</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.21</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Diluted EPS</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>1.63</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.79</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.20</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Total assets</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>1,321.2</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,074.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,085.7</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Total long-term financial liabilities<SUP style="FONT-size: 85%; vertical-align: text-top">(1)</SUP></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>&#151;</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">53.0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Certain minor rounding variances exist between the financial statements and this summary.
</DIV>



<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left"><I>(1)</I></TD>
    <TD>&nbsp;</TD>
    <TD><I>Includes current portion of long-term debt.</I></TD>
</TR>

</TABLE>



<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Net Sales</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Net sales in fiscal 2010 totaled $1,311.5&nbsp;million, up 26.3%, from $1,038.3&nbsp;million in fiscal
2009. Sales of activewear and underwear in fiscal 2010 were $1,085.0&nbsp;million, up 36.4% from $795.5
million last year, and sales of socks were $226.5&nbsp;million, down 6.7% from $242.8&nbsp;million in fiscal
2009. Net sales for fiscal 2010 were slightly above the outlook provided by the Company on August
12, 2010 due to higher than anticipated unit sales volumes of activewear and underwear, partially
offset by lower than expected sales of socks.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The increase in activewear and underwear sales in fiscal 2010 compared to fiscal 2009 was primarily
due to a 31.2% increase in unit sales volumes, more favourable activewear product-mix as a result
of a higher proportion of sales of higher-valued fleece and long-sleeve T-shirts and an increase in
net selling prices due to reduced promotional activity. The unit volume increase in sales of
activewear was mainly attributable to our continued market share penetration in all product
categories in the U.S. distributor channel and a 5.8% increase in overall industry unit shipments
from U.S. distributors to U.S screenprinters in the last nine months ended September&nbsp;30, 2010,
combined with strong growth in international and other screenprint markets, and increased shipments
of underwear and activewear to retail customers. During fiscal 2010, the Company was constrained
from fully capitalizing on stronger than anticipated demand for its activewear products in the
second half of the year due in part to the impact of the Haiti earthquake which had resulted in
lost production.
</DIV>


<DIV align="right" style="font-size: 10pt; margin-top: 12pt">GILDAN 2010 REPORT TO SHAREHOLDERS P.9
</DIV>



<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>



<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: Helvetica,Arial,sans-serif">

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="47%"></TD>
    <TD width="5%"></TD>
    <TD width="47%"></TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD align="left" valign="top"><IMG src="n66662n6666203.gif" alt="(GILDAN LOGO)">
</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">MANAGEMENT&#146;S DISCUSSION AND ANALYSIS</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">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&nbsp;30, 2010:
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="52%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="7"><B>Nine months ended</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="7"><B>Nine months ended</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="7" style="border-bottom: 0px solid #000000"><B>September 30,</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="7" style="border-bottom: 0px solid #000000"><B>September 30,</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="7" style="border-bottom: 1px solid #000000"><B>2010</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>2010</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>2009</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="7" style="border-bottom: 1px solid #000000"><B>Unit Growth</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="7" style="border-bottom: 1px solid #000000"><B>Market Share</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Gildan</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Industry</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="7"><B>Gildan</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="17" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">All products</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right"><B>19.7</B></TD>
    <TD nowrap><B>%</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">5.8</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right"><B>64.1</B></TD>
    <TD nowrap><B>%</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">56.6</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">T-shirts</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right"><B>20.0</B></TD>
    <TD nowrap><B>%</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">6.1</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right"><B>64.7</B></TD>
    <TD nowrap><B>%</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">57.3</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Fleece</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right"><B>13.6</B></TD>
    <TD nowrap><B>%</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">2.5</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right"><B>61.6</B></TD>
    <TD nowrap><B>%</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">55.6</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Sport shirts</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right"><B>22.1</B></TD>
    <TD nowrap><B>%</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">1.6</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right"><B>48.8</B></TD>
    <TD nowrap><B>%</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">40.6</TD>
    <TD nowrap>%</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="17" align="left" style="border-top: 0px double #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">During the nine months ended September&nbsp;30, 2010, Gildan achieved market share gains in all of
its product categories and increased its overall market share in the U.S. screenprint channel to
64.1%, up 7.5&nbsp;percentage points compared to the same period last year. The improvement in our
overall market share in this channel reflected increases of 7.4&nbsp;percentage points in our share of
the T-shirt category, a 6.0&nbsp;percentage point gain in the fleece category and an increase of 8.2
percentage points in the sport shirts product category. While unit shipments from U.S. distributors
to U.S. screenprinters for the nine months ended September&nbsp;30, 2010 were up 5.8% compared to the
same period last year, our continued market share penetration resulted in a 19.7% increase in unit
shipments of Gildan products from U.S. distributors to U.S. screenprinters, which significantly
outpaced overall market demand.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">We also saw a recovery in demand and significantly increased market penetration by Gildan in the
Canadian and international markets which contributed to our sales increase in activewear for the
year. Canadian sales totaled $54.2&nbsp;million in fiscal 2010, up 54.4% compared to sales of $35.1
million in fiscal 2009 due to the turnaround in demand and the higher value of the Canadian dollar
compared to fiscal 2009. Net sales of $102.5&nbsp;million from our international markets increased
61.4% in fiscal 2010 compared to last year. The increase in sales was due to strong unit volume
growth in essentially all international markets that we serve.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The decrease in sales of socks for fiscal 2010 was mainly attributable to lower unit sales volumes
and a decline in average net selling prices compared to last year largely due to a shift towards a more
basic product-mix. The unit volume decline was primarily due to the discontinuance of unprofitable
sock programs and the elimination of baby apparel and layette programs under licensed brands, as
well as servicing issues resulting from the ramp-up of our new retail distribution centre and the
ramp-up of production at the new sock manufacturing facility in Honduras.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Gross Profit</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">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, inventory write-downs, 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.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Gross profit for fiscal 2010 was $364.3&nbsp;million, or 27.8% of net sales, slightly above the
Company&#146;s outlook of approximately 27.5% provided on August&nbsp;12, 2010, and higher than gross profit
of $230.3&nbsp;million, or 22.2% of net sales during fiscal 2009. The increase in gross margins in
fiscal 2010 compared to last year was primarily due to lower promotional discounting in the U.S.
distributor channel, more favourable activewear product-
</DIV>


<DIV align="right" style="font-size: 10pt; margin-top: 12pt">GILDAN 2010 REPORT TO SHAREHOLDERS P.10
</DIV>



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<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
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<TR valign="bottom">
    <TD width="47%"></TD>
    <TD width="5%"></TD>
    <TD width="47%"></TD>
</TR>
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<TR valign="bottom">
    <TD align="left" valign="top"><IMG src="n66662n6666203.gif" alt="(GILDAN LOGO)">
</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">MANAGEMENT&#146;S DISCUSSION AND ANALYSIS</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">mix and increased manufacturing efficiencies, partially offset by inefficiencies related to the
initial ramp-up of new retail underwear and activewear programs. Gross profit for fiscal 2010 also
included the benefit of a $6&nbsp;million cotton subsidy in our yarn-spinning joint venture, CanAm, which
was recognized as a reduction of cost of sales in the fourth quarter of fiscal 2010. The net after-tax benefit for the Company of the recognition of the subsidy, after reflecting Frontier&#146;s 50% interest that is included in non-controlling interest in our consolidated statement of earnings, was approximately $1.9 million.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">As discussed in the section entitled &#147;Economic Environment&#148;, toward the latter part of fiscal 2010,
we began to see a dramatic appreciation in cotton prices which continued to increase early in
fiscal 2011. Consequently, apparel suppliers, including Gildan, are implementing successive selling
price increases in response to projected higher cotton costs for fiscal 2011.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Selling, General and Administrative Expenses</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Selling, general and administrative (SG&#038;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 and amortization
expense, and other general and administrative expenses. SG&#038;A expenses also include amortization of
customer-related intangible assets and bad debt expense.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Selling, general and administrative (SG&#038;A) expenses were $154.7&nbsp;million in fiscal 2010, compared to
$134.8&nbsp;million in fiscal 2009. SG&#038;A expenses as a percent of net sales for fiscal
2010 decreased to 11.8% compared to 13.0% of net sales in fiscal 2009 and was more in line with the
level of 11.4% achieved in fiscal 2008. The increase in SG&#038;A expenses was primarily due to an
increase in volume-driven distribution expenses, increased administrative and distribution
infrastructure to support the development of the Company&#146;s retail initiatives, higher variable
compensation expense and the impact of the higher-valued Canadian dollar on corporate
administrative expenses. The increase in SG&#038;A was partially offset by lower bad debt expense, as
well as lower legal and professional fees.
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="64%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 0px solid #000000"><B>Restructuring and Other Charges</B></TD>
    <TD style="border-bottom: 0px solid #000000">&nbsp;</TD>
    <TD nowrap align="right" colspan="2" style="border-bottom: 0px solid #000000">&nbsp;</TD>
    <TD style="border-bottom: 0px solid #000000">&nbsp;</TD>
    <TD style="border-bottom: 0px solid #000000">&nbsp;</TD>
    <TD nowrap align="right" colspan="2"  style="border-bottom: 0px solid #000000">&nbsp;</TD>
    <TD style="border-bottom: 0px solid #000000">&nbsp;</TD>
    <TD style="border-bottom: 0px solid #000000">&nbsp;</TD>
    <TD nowrap align="right" colspan="2" style="border-bottom: 0px solid #000000">&nbsp;</TD>
    <TD style="border-bottom: 0px solid #000000">&nbsp;</TD>
    <TD style="border-bottom: 0px solid #000000">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left"><I>(in $ millions)</I></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>2010</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">2009</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">2008</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
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<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Loss (gain)&nbsp;on disposal of assets held for sale</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>0.1</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(0.6</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(0.5</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Accelerated depreciation</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>2.5</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Asset impairment loss and write-down of assets held for sale</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>1.8</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2.7</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Employee termination and other benefits</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>0.7</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.4</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Other exit costs</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>3.7</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3.5</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Adjustment for employment contract</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right"><B>(0.1</B></TD>
    <TD nowrap><B>)</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(0.1</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(0.6</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>8.7</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5.5</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt"><I>Certain minor rounding variances exist between the financial statements and this summary.</I></div>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">During the first quarter of fiscal 2010, the Company announced plans to consolidate its
existing distribution centres servicing retail customers at a new retail distribution centre in
Charleston, South Carolina. These plans have resulted in the closure of its leased retail
distribution facility in Martinsville, Virginia and its retail distribution
facility in Fort Payne, Alabama. The costs incurred in connection with this initiative
have been recorded as restructuring and other charges, including accelerated depreciation resulting
from a change in estimate for the remaining economic lives of certain distribution long-lived
assets. The Company has also recorded restructuring charges in fiscal 2010 and 2009 relating to
manufacturing facilities that were closed in fiscal 2009 and in previous years.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">For fiscal 2010, restructuring and other charges totalled $8.7&nbsp;million, mainly relating to the
consolidation of retail distribution facilities mentioned above, including $2.5&nbsp;million of
accelerated depreciation, an asset impairment loss of $1.8&nbsp;million, and $0.7&nbsp;million of employee
termination costs. The Company also incurred other exit costs of $3.7&nbsp;million for fiscal 2010
including inventory transfer costs, carrying and dismantling costs, and lease termination costs.
</DIV>


<DIV align="right" style="font-size: 10pt; margin-top: 12pt">GILDAN 2010 REPORT TO SHAREHOLDERS P.11
</DIV>





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<DIV style="font-family: Helvetica,Arial,sans-serif">


<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
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    <TD width="47%"></TD>
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</TR>
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<TR valign="bottom">
    <TD align="left" valign="top"><IMG src="n66662n6666203.gif" alt="(GILDAN LOGO)">
</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">MANAGEMENT&#146;S DISCUSSION AND ANALYSIS</TD>
</TR>
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</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">For fiscal 2009, restructuring and other charges totalled $6.2&nbsp;million which included $3.7
million for the closure of the Company&#146;s U.S. sock finishing operations, and $3.1&nbsp;million primarily
related to facility closures that occurred in previous fiscal years, including carrying costs and
asset write-downs, net of a gain of $0.6&nbsp;million relating to assets held for sale.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Restructuring charges of $5.5&nbsp;million in fiscal 2008 included $2.1&nbsp;million relating to the
consolidation of the Company&#146;s Haiti sewing operation, and $4.5&nbsp;million relating to
facility closures which occurred in previous fiscal years, primarily for carrying and dismantling
costs associated with assets held for sale, partially offset by a gain on disposal of assets held
for sale of $0.5&nbsp;million. The Company also had a recovery of $0.6&nbsp;million from the obligations
accrued for an employment contract with a former executive of the Company.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">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 fair value adjustments and gains or losses
on the disposal of the assets held for sale will also be accounted for as restructuring charges as
incurred.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Financial Expense / Income, net</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Net financial expense/income includes interest expense, net of interest income, and foreign
exchange gains and losses. Net financial expense amounted to $0.8&nbsp;million in fiscal 2010, compared
to net financial income of $0.3&nbsp;million in fiscal 2009. The increase of $1.1&nbsp;million in net
financial expense in fiscal 2010 resulted primarily from a decrease in foreign exchange gains of
$2.1&nbsp;million, and an increase in bank charges of $0.4&nbsp;million, partially offset by a decrease in
interest expense of $1.4&nbsp;million. The decrease in interest expense was due to lower borrowings
during fiscal 2010 compared to last year.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Non-Controling Interest in Consolidated Joint Venture</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Non-controlling interest in consolidated joint venture increased $3.8&nbsp;million in fiscal 2010
primarily due to the recognition of the 50% non-controlling interest of a cotton subsidy received
by our yarn-spinning joint venture, CanAm, totaling $6&nbsp;million as described under the heading
&#147;Gross Profit&#148; in the &#147;Operating Results&#148; section of this MD&#038;A.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Income Taxes</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The income tax recovery for fiscal 2010 was $1.9&nbsp;million, compared to an income tax recovery
of $5.8&nbsp;million for fiscal 2009. The total income tax recovery for fiscal 2010 included recoveries
of $3.3&nbsp;million related to the impact of restructuring and other charges. The income tax recovery
for fiscal 2009 included recoveries of $6.1&nbsp;million relating to the recognition of previously
unrecorded tax positions of prior years and $1.8&nbsp;million related to the impact of restructuring and
other charges. Excluding the impact of restructuring and other charges in both years and the impact
in 2009 of the income tax recovery related to prior years, the effective income tax rate for fiscal
2010 was approximately 1%, compared to an effective income tax rate of 2.2% for fiscal 2009. The
year over year decline in the effective income tax rate was mainly due to a higher proportion of
profits earned in lower tax jurisdictions combined with the tax recovery in fiscal 2010 related to the
benefit of tax losses incurred in higher tax jurisdictions.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Net Earnings</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Net earnings for fiscal 2010 of $198.2&nbsp;million, or $1.63 per share on a diluted basis, were up
108.0% and 106.3%, respectively compared with net earnings of $95.3&nbsp;million, or $0.79 per share on
a diluted basis in fiscal 2009. Net earnings included after-tax restructuring and other charges of
$5.4&nbsp;million in fiscal 2010 and $4.4&nbsp;million in fiscal 2009. Excluding the impact of restructuring
and other charges, adjusted net earnings and adjusted diluted EPS for fiscal 2010 totaled $203.6
million and $1.67 per share compared with adjusted net earnings of $99.7&nbsp;million, or $0.82 per
share for the prior year. The increase in adjusted net earnings and EPS was due to strong sales
growth and significantly higher gross margins, partially offset by higher SG&#038;A expenses.
</DIV>


<DIV align="right" style="font-size: 10pt; margin-top: 12pt">GILDAN 2010 REPORT TO SHAREHOLDERS P.12
</DIV>



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<DIV style="font-family: Helvetica,Arial,sans-serif">


<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="47%"></TD>
    <TD width="5%"></TD>
    <TD width="47%"></TD>
</TR>
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<TR valign="bottom">
    <TD align="left" valign="top"><IMG src="n66662n6666203.gif" alt="(GILDAN LOGO)">
</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">MANAGEMENT&#146;S DISCUSSION AND ANALYSIS</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>OPERATING RESULTS FOR THE YEAR ENDED OCTOBER 4, 2009 COMPARED TO THE YEAR ENDED OCTOBER 5, 2008</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Net Sales</B>

</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Net sales in fiscal 2009 totaled $1,038.3&nbsp;million, down 16.9%, from $1,249.7&nbsp;million in fiscal
2008. Sales of activewear and underwear in fiscal 2009 were $795.5&nbsp;million, down 16.9% from $957.1
million last year, and sales of socks were $242.8&nbsp;million, down 17.0% from $292.7&nbsp;million in fiscal
2008.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">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.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">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&nbsp;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&nbsp;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.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">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.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">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.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Gross Profit</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Gross profit for fiscal 2009 was $230.3&nbsp;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.
</DIV>


<DIV align="right" style="font-size: 10pt; margin-top: 12pt">GILDAN 2010 REPORT TO SHAREHOLDERS P.13
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: Helvetica,Arial,sans-serif">

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="47%"></TD>
    <TD width="5%"></TD>
    <TD width="47%"></TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD align="left" valign="top"><IMG src="n66662n6666203.gif" alt="(GILDAN LOGO)">
</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">MANAGEMENT&#146;S DISCUSSION AND ANALYSIS</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Selling, General and Administrative Expenses</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Selling, general and administrative (SG&#038;A) expenses were $134.8&nbsp;million, or 13.0% of net sales
in fiscal 2009, compared to $142.8&nbsp;million, or 11.4% of net sales, in fiscal 2008. The decrease in
SG&#038;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.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Financial Expense / Income, net</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Net financial expense/income includes interest expense, net of interest income, and foreign
exchange gains and losses. Net financial income amounted to $0.3&nbsp;million in fiscal 2009, compared
to net financial expense of $9.2&nbsp;million in fiscal 2008. The decrease of $9.5&nbsp;million in net
financial expense in fiscal 2009 resulted primarily from a decrease in interest expense of $5.4
million and a $4.2&nbsp;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.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Income Taxes</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The income tax recovery for fiscal 2009 was $5.8&nbsp;million, compared to an income tax expense of
$34.4&nbsp;million for fiscal 2008. The total income tax recovery for fiscal 2009 include recoveries of
$6.1&nbsp;million relating to the recognition of previously unrecorded tax positions of prior years and
$1.8&nbsp;million related to the impact of restructuring and other charges. The income tax expense for
fiscal 2008 included a charge of $26.9&nbsp;million related to the settlement of the Canada Revenue
Agency (CRA)&nbsp;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.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">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 an income tax charge of $26.9&nbsp;million,
including a charge of $13.4&nbsp;million related to the provincial tax component, and a reclassification
of $17.3&nbsp;million of future income tax liabilities to income taxes payable. 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.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Net Earnings</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Net earnings for fiscal 2009 were $95.3&nbsp;million, or $0.79 per share on a diluted basis, down
34.9% and 34.2%, respectively compared with net earnings of $146.4&nbsp;million, or $1.20 per share on a
diluted basis in fiscal 2008. Net earnings included after-tax restructuring and other charges of
$4.4&nbsp;million in fiscal 2009 and $4.9&nbsp;million in fiscal 2008. Excluding the impact of restructuring
charges, adjusted net earnings and adjusted diluted EPS for fiscal 2009 totaled $99.7&nbsp;million and
$0.82 per share compared with adjusted net earnings of $151.3&nbsp;million, or $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&#038;A and financial expenses and the
non-recurrence of an income tax charge of $26.9&nbsp;million, or $0.22 per share taken in the fourth
quarter of fiscal 2008.
</DIV>


<DIV align="right" style="font-size: 10pt; margin-top: 12pt">GILDAN 2010 REPORT TO SHAREHOLDERS P.14
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: Helvetica,Arial,sans-serif">



<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="47%"></TD>
    <TD width="5%"></TD>
    <TD width="47%"></TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD align="left" valign="top"><IMG src="n66662n6666203.gif" alt="(GILDAN LOGO)">
</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">MANAGEMENT&#146;S DISCUSSION AND ANALYSIS</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 12pt; margin-top: 12pt"><B>SUMMARY OF QUARTERLY RESULTS</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">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.
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="20%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #000000"><I>(in $ millions, except per share amounts)</I></TD>
    <TD nowrap align="right" colspan="15" style="border-bottom: 1px solid #000000">2010</TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="right" colspan="15" style="border-bottom: 1px solid #000000">2009</TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>Q4</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">Q3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">Q2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">Q1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">Q4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">Q3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">Q2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">Q1</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="33" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Net Sales<SUP style="FONT-size: 85%; vertical-align: text-top"> </SUP></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>368.9</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">395.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">326.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">220.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">301.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">307.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">244.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">184.0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Net earnings <SUP style="FONT-size: 85%; vertical-align: text-top"> </SUP></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>56.8</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">64.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">48.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">28.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">42.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">41.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4.3</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Net earnings per share <SUP style="FONT-size: 85%; vertical-align: text-top"> </SUP></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Basic EPS<SUP style="FONT-size: 85%; vertical-align: text-top">(1)</SUP></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>0.47</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.53</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.40</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.23</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.35</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.34</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.06</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.04</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Diluted EPS<SUP style="FONT-size: 85%; vertical-align: text-top">(1)</SUP></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>0.47</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.53</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.40</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.23</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.35</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.34</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.06</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.04</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Total assets <SUP style="FONT-size: 85%; vertical-align: text-top"> </SUP></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>1,321.2</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,265.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,169.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,092.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,074.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,118.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,100.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,028.7</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Total long-term financial liabilities<SUP style="FONT-size: 85%; vertical-align: text-top"> </SUP></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>&#151;</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">92.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">121.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">51.2</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Weighted average number of shares outstanding (in &#145;000s)<SUP style="FONT-size: 85%; vertical-align: text-top"> </SUP></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Basic<SUP style="FONT-size: 85%; vertical-align: text-top"> </SUP></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>121,334</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">121,264</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">121,061</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">120,977</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">120,959</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">120,911</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">120,799</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">120,573</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Diluted<SUP style="FONT-size: 85%; vertical-align: text-top"> </SUP></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>122,141</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">122,098</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">121,919</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">121,762</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">121,668</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">121,483</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">121,178</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">121,408</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="33" align="left" style="border-top: 0px solid #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>


<DIV style="margin-top: 3pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>
<TR valign="top">
    <TD nowrap align="left"><I>(1)</I></TD>
    <TD>&nbsp;</TD>
    <TD><I>Quarterly EPS may not add to year-to-date EPS due to rounding.</I></TD>
</TR>

</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Seasonality and Other Factors Affecting the Variability of Results and Financial Condition</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">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, our customers&#146; decision to increase or decrease their inventory levels, changes in
our sales mix, and fluctuations in selling prices and raw material costs. 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.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">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.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Our results are also impacted by 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,
and we also use chemicals, dyestuffs and trims which we purchase from a variety of suppliers.
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. Energy costs in 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.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Management decisions to consolidate or reorganize operations, including the closure of facilities,
may also result in significant restructuring and other charges in an interim or annual period. In
addition, the effect of asset write-downs, including provisions for bad debts and slow moving
inventories, can affect the variability of our results.
</DIV>


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</DIV>


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<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Our reported amounts for sales, selling, general and administrative expenses, and financial expense
(income)&nbsp;are impacted by fluctuations in the U.S. dollar versus certain other currencies as
described in the &#147;Financial Risk Management&#148; section of this MD&#038;A. The Company may periodically
use derivative financial instruments to manage risks related to fluctuations in foreign exchange
rates.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">During fiscal 2009, the severe downturn in the overall economic environment negatively impacted our
sales and operating results for the year, including the need to take production downtime in the
second, third and fourth quarters of fiscal 2009, in order to align our inventory levels with the
weaker demand. Starting in the second quarter of fiscal 2010, we began to see a recovery in demand
for our products, which was particularly strong in our screenprint markets. During fiscal 2010,
Haiti was struck by a massive earthquake which impacted our sewing contractors&#146; operations
resulting in a temporary loss of production which prevented the Company from rebuilding inventories
and fully capitalizing on the recovery in demand for its activewear products. This situation also
resulted in manufacturing and supply chain inefficiencies in the second, third and fourth quarters
of the fiscal year. The lost sales combined with the additional costs incurred from the
manufacturing and supply chain inefficiencies were only partly offset by insurance proceeds of $8
million, or $0.07 per share received in the fourth quarter of fiscal 2010.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Restructuring and other charges totaled $8.7&nbsp;million, or $0.07 per share during fiscal 2010 mainly
relating to the consolidation of retail distribution facilities. Restructuring and other charges
for fiscal 2009 totalled $6.2&nbsp;million, or $0.05 per share primarily related to the closure of our
U.S. sock finishing operations.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Results for the fourth quarter of fiscal 2009 included $0.07 per share negative impact of a special
discount granted to distributors.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Fourth Quarter Results</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Net sales in the fourth quarter of fiscal 2010 amounted to $368.9&nbsp;million, up 22.3% from net
sales of $301.7&nbsp;million in the fourth quarter of fiscal 2009. Sales of activewear and underwear
for the fourth quarter in fiscal 2010 amounted to $307.5&nbsp;million, up 27.7% from fiscal 2009, and
sales of socks were $61.5&nbsp;million, up 1.0% from the fourth quarter last year.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The growth in sales of activewear and underwear compared to the fourth quarter of fiscal 2009 was
primarily due to a 21.3% increase in unit volume shipments as a result of increased market share in
the U.S. distributor channel, a 2.7% increase in overall industry shipments from U.S. distributors
to U.S. screenprinters, strong growth in international markets, in particular in Europe, and
significantly increased shipments of underwear and activewear to mass-market retailers, partially
offset by a larger reduction of distributor inventory levels during the fourth quarter compared to
the fourth quarter of fiscal 2009. The increase in sales of socks compared to the fourth quarter of
fiscal 2009 was due to the approximate 9% increase in unit shipments of socks, which was largely
offset by a lower-valued more basic product-mix and lower selling prices for certain sock programs,
including the impact of significantly increased participation in back-to-school promotions.
Sell-through of socks provided by Gildan from retailers to consumers was strong during the fourth
quarter in the men&#146;s and boys&#146; categories.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Gross profit for the fourth quarter of fiscal 2010 totaled $100.7&nbsp;million, or 27.3% of sales, up
from gross profit of $77.7&nbsp;million, or 25.7% of sales in the fourth quarter of fiscal 2009. The
increase in gross margins was due to the non-recurrence of the special distributor inventory
devaluation discount a year ago, the proceeds from the Haiti insurance claim, which reflected the
maximum benefit of $8&nbsp;million receivable by Gildan under the coverage in its insurance policy, and
the impact of a cotton subsidy in the Company&#146;s yarn-spinning joint venture as previously discussed
in our full year gross profit analysis. Higher year-over-year cotton costs negatively impacted
gross margins by approximately 380 basis points in the fourth quarter, of which only approximately
150 basis points was recovered in increased selling prices. Although selling price increases have
been implemented in the U.S. wholesale distributor channel since July in response to inflation in
cotton and other input costs, these price increases were not applied to back orders already placed
at the time of implementing the increases, and therefore only partially offset the impact of the
significant cotton cost increases in the quarter. Gross margins in the fourth quarter of fiscal
2010 were
</DIV>


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</DIV>


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<DIV align="left" style="font-size: 10pt; margin-top: 12pt">also negatively impacted by start-up inefficiencies in underwear manufacturing and additional costs
incurred to mitigate the loss of production due to the Haiti earthquake.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">SG&#038;A expenses in the fourth quarter were $42.0&nbsp;million, or 11.4% of sales, compared to $34.1
million, or 11.3% of sales in the fourth quarter of fiscal 2009. The increase in SG&#038;A expenses was
primarily due to higher volume-driven distribution expenses, higher performance-driven variable
compensation expenses, increased administrative and distribution infrastructure to support the
development of the Company&#146;s retail initiatives, and the impact of the higher-valued Canadian
dollar on corporate administrative expenses. SG&#038;A expenses in the fourth quarter of fiscal 2010
included $1.9&nbsp;million for provisions for doubtful accounts receivable, compared with $3.0&nbsp;million
in the fourth quarter of last year.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">We recorded an income tax recovery of $2.5&nbsp;million in the fourth quarter of fiscal 2010 compared to
an income tax recovery of $0.7&nbsp;million in the fourth quarter of fiscal 2009. The current year
income tax recovery included a recovery of $1.3&nbsp;million related to restructuring and other charges.
The income tax recovery in the fourth quarter last year included a recovery of $0.8&nbsp;million related
to restructuring and other charges. Excluding the impact of restructuring and other charges in both
years, we recorded an income tax recovery of $1.2&nbsp;million in the fourth quarter of fiscal 2010
compared to an income tax expense of $0.1&nbsp;million in the fourth quarter of 2009. The year over year
decline in income tax expense was mainly due to a higher proportion of profits earned in lower tax
jurisdictions combined with the tax recovery in fiscal 2010 related to the benefit of tax losses
incurred in higher tax jurisdictions.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Net earnings for the fourth fiscal quarter ended October&nbsp;3, 2010 were $56.8&nbsp;million or $0.47 per
share on a diluted basis, after reflecting a restructuring charge of $0.01 per share related to the
consolidation of U.S. distribution activities announced on December&nbsp;10, 2009. Before restructuring
and other charges, adjusted net earnings for the fourth quarter amounted to $58.3&nbsp;million, or $0.48
per share, up 37.5% and 37.1% respectively, compared to $42.4&nbsp;million, or $0.35 per share in the
fourth quarter of fiscal 2009. The growth in net earnings compared to last year was primarily due
to strong unit sales growth in the U.S. distributor channel, which was achieved in spite of low
activewear finished goods inventory levels, lower promotional activity in
the channel, including the non-recurrence of a special devaluation discount which was recorded in the fourth quarter of last year, and the proceeds
from the  insurance claim related to the  Haiti earthquake. These positive
factors more than offset the unfavourable impact of significantly higher cotton costs compared to
the fourth quarter of last year, additional costs incurred related to
the Haiti earthquake and higher SG&#038;A expenses.
</DIV>


<DIV align="left" style="font-size: 12pt; margin-top: 12pt"><B>FINANCIAL CONDITION</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Trade accounts receivable of $145.7&nbsp;million as at October&nbsp;3, 2010 decreased by $13.9&nbsp;million,
compared to accounts receivable of $159.6&nbsp;million at the end of fiscal 2009. The decrease in trade
accounts receivable from the end of fiscal 2009, which occurred in spite of a 22.3% increase in net
year-over-year fourth quarter sales, was due primarily to a decrease in the number of days&#146; sales
outstanding (DSO). The lower DSO was due to a reduction in the extended payment terms on seasonal
fleece sales programs shipped in the third quarter of fiscal 2010 when compared to last year.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Inventories of $332.5&nbsp;million were up $30.6&nbsp;million, or 10.1% from $301.9&nbsp;million at the end of
fiscal 2009. Despite significantly lower T-shirt inventory levels, overall inventories increased
from the end of fiscal 2009 due primarily to significantly higher average unit costs resulting from
rising cotton and energy costs and  a higher valued product mix, as well as higher raw material and
work in process inventory volumes to support increases in production. Underwear inventories
increased when compared to last year in order to service new underwear programs in the retail
channel. During the second quarter of fiscal 2010, T-shirt inventory levels decreased
significantly from the first quarter to sub-optimal levels due to an unexpected recovery in demand
for our activewear products combined with the impact of the temporary disruption of our sewing production
following the Haiti earthquake. While our sewing production in Haiti has returned to levels substantially
similar to those prior to the earthquake, T-shirt inventories at the end of the fourth quarter
continue to be at sub-optimal levels.
</DIV>


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</DIV>


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</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Property, plant and equipment, which are net of accumulated depreciation, including asset
impairment losses, amounted to $479.3&nbsp;million at October&nbsp;3, 2010, compared to $402.2&nbsp;million at
October&nbsp;4, 2009. The increase of $77.1&nbsp;million primarily reflected capital additions of
approximately $128.3&nbsp;million, the inclusion of approximately $12.2&nbsp;million of property, plant and
equipment from the acquisition of Shahriyar, offset by depreciation of $61.9&nbsp;million. The
remaining decrease is due to a reclassification of property, plant and equipment to assets held for
sale and the disposal of certain assets related to closed facilities. Capital additions consisted
primarily of the acquisition of our distribution centre in Charleston, South Carolina, and of our
new office building in Barbados, as well as capital expenditures related to our capacity expansion
projects in Honduras, our biomass energy projects in the Dominican Republic and Honduras, and the
expansion of our distribution center servicing wholesale customers.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Intangible assets are comprised of customer contracts and relationships, and computer software, and
amounted to $61.3&nbsp;million as at October&nbsp;3, 2010 compared to $69.1&nbsp;million at the end of fiscal
2009. The decrease is related to amortization of $8.8&nbsp;million, partially offset by $1.0&nbsp;million
related to the acquisition of computer software.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Goodwill of $10.2&nbsp;million as at October&nbsp;3, 2010 increased by $3.5&nbsp;million since October&nbsp;4, 2009 due
to the acquisition of Shahriyar. 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&nbsp;3, 2010.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Assets held for sale of $3.2&nbsp;million as at October&nbsp;3, 2010 and $6.5&nbsp;million as at October&nbsp;4, 2009
include property, plant and equipment relating to closed facilities. The decrease in assets held
for sale in fiscal 2010 is due mainly to the sale of facilities relating to previously announced
closures.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Total assets were $1,321.2&nbsp;million as at October&nbsp;3, 2010 compared to $1,074.5&nbsp;million at the end of
the previous year. Working capital was $564.1&nbsp;million as at October&nbsp;3, 2010 compared to $441.0
million as at October&nbsp;4, 2009. The current ratio at the end of fiscal 2010 was 3.9 compared to 4.2
at the end of fiscal 2009.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Accounts payable and accrued liabilities amounted to $186.2&nbsp;million as at October&nbsp;3, 2010 compared
to $124.4&nbsp;million at the end of fiscal 2009. The increase of $61.8&nbsp;million was primarily due to
higher raw material purchase volumes resulting from higher production levels compared to last year,
and higher cotton costs.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Income taxes payable were $5.0&nbsp;million at October&nbsp;3, 2010 compared to $11.8&nbsp;million at October&nbsp;4,
2009. The current income tax provision of $9.5&nbsp;million was more than offset by current year tax
installments, as well as payments of $13.4&nbsp;million made during fiscal 2010 related to the
provincial component of the income tax settlement with the CRA as announced in December&nbsp;2008 and as
described under the heading &#147;Income Taxes&#148; in the section entitled &#147;Operating Results for the Year
Ended October&nbsp;4, 2009 Compared to the Year ended October&nbsp;5, 2008&#148; in this MD&#038;A, resulting in a net
decrease in income taxes payable when compared to last year.
</DIV>


<DIV align="left" style="font-size: 12pt; margin-top: 12pt"><B>CASH FLOWS</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Cash inflows from operating activities in fiscal 2010 were $301.6&nbsp;million compared to cash
inflows of $169.2&nbsp;million for the previous year. The increase in cash flow was primarily due to
significantly higher cash operating earnings combined with a more favourable impact of changes in
non-cash working capital when compared to last year. We reduced the level of our net non-cash
working capital in fiscal 2010 in spite of higher sales volumes, due mainly to lower than optimal
T-shirt inventory levels and an improvement in DSO, as noted above in the section entitled
&#147;Financial Condition&#148;. In fiscal 2009, the favourable change in non-cash working capital was
primarily as a result of a decrease in working capital balances due to lower sales and other
factors related to the economic downturn, largely offset by income tax payments made during the
year as part of a tax settlement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Cash flows used in investing activities were $141.2&nbsp;million in fiscal 2010, compared to $34.2
million in fiscal 2009. The increase of $107.0&nbsp;million in fiscal 2010 was primarily attributable to
an increase of $83.0&nbsp;million
</DIV>


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<DIV align="left" style="font-size: 10pt; margin-top: 12pt">in capital spending over last year, and the acquisition of Shahriyar in fiscal 2010 for a purchase
price of $15.9&nbsp;million. Capital expenditures in fiscal 2009 were exceptionally low as we took
steps to proceed cautiously with capacity expansion projects in response to the downturn in the
economy. Net capital expenditures amounted to $127.9&nbsp;million for fiscal 2010 compared to our
previous forecast of approximately $130&nbsp;million.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">We generated free cash flow of $175.9&nbsp;million in fiscal 2010 compared to $132.2&nbsp;million for the
same period in fiscal 2009. The increase of $43.7&nbsp;million was attributable to significantly higher
cash flows from operating activities, partially offset by higher 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 the heading entitled &#147;Free Cash Flow&#148; under the section entitled &#147;Definition and
Reconciliation of Non-GAAP Measures&#148; in this MD&#038;A.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Cash flows used in financing activities in fiscal 2010 amounted to $1.4&nbsp;million compared to cash
outflows of $47.7&nbsp;million in fiscal 2009. In fiscal 2009, cash flows used in financing activities
consisted primarily of repayments of $45.0&nbsp;million on our revolving long-term credit facility.
</DIV>


<DIV align="left" style="font-size: 12pt; margin-top: 12pt"><B>LIQUIDITY AND CAPITAL RESOURCES</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">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
of existing facilities, working capital requirements, and business acquisitions.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">We have a committed revolving long-term credit facility of up to $400&nbsp;million, on an unsecured
basis, which matures in June&nbsp;2013. Total indebtedness as at October&nbsp;3, 2010 was nil compared to
$4.4&nbsp;million at the end of fiscal 2009. Total indebtedness is comprised of bank indebtedness and
long-term debt (including the current portion) as described under the section entitled &#147;Definition
and Reconciliation of Non-GAAP measures&#148; in this MD&#038;A. At October&nbsp;3, 2010 and October&nbsp;4, 2009,
there were no amounts drawn on our revolving long-term credit facility. An amount of $12.7&nbsp;million
has been committed against this facility to cover various letters of credits as at October&nbsp;3, 2010.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">At the beginning of fiscal 2010, we had cash in excess of total indebtedness<SUP style="FONT-size: 85%; vertical-align: text-top"> </SUP>of $95.3
million, with no amounts drawn on our revolving long-term credit facility, and $99.7&nbsp;million of
cash and cash equivalents. Cash in excess of total indebtedness is calculated as cash and cash
equivalents net of total indebtedness as described under the section entitled &#147;Definition and
Reconciliation of Non-GAAP measures&#148; in this MD&#038;A. During fiscal 2010, our operating cash flows
allowed us to fund net capital expenditures of $127.9&nbsp;million, and increase our cash balance at the
end of fiscal 2010 to $258.4&nbsp;million from $99.7&nbsp;million at the end of last year. At October&nbsp;3, 2010,
we continue to have ample liquidity and significant financing capacity and flexibility under our
revolving long-term credit facility.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Gildan is currently projecting capital expenditures in excess of $150&nbsp;million for fiscal 2011,
to implement its further capacity expansion plans for production of activewear and underwear in
Honduras, the Dominican Republic and Bangladesh, to complete the ramp-up of its second sock
manufacturing facility in Honduras, as well as to finance its ongoing cost reduction initiatives
including the completion of its biomass alternative energy projects in Honduras. In addition, the
Company plans to invest in new technology in its U.S. yarn-spinning joint venture. The Company
also expects to use cash in fiscal 2011 to finance a planned increase in activewear finished
goods inventories and higher carrying costs of inventories due to higher cotton and other purchased
cost inputs.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">We expect that cash flows from operating activities, together with our accumulated cash balances
and our unutilized credit facility will provide us with sufficient liquidity and capital resources
in the short term and long term to fund our anticipated working capital and capital expenditure
requirements, as well as any acquisition opportunities that the Company may decide to pursue.
</DIV>


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<DIV align="left" style="font-size: 10pt; margin-top: 12pt">The Company, upon approval from its Board of Directors, may issue or repay long-term debt,
issue shares, initiate share repurchase programs, pay dividends or undertake other activities as deemed appropriate
under the specific circumstances. On December&nbsp;2, 2010, the Company announced the introduction of a
quarterly cash dividend and the reinstatement of a normal course issuer bid as described below
under the heading &#147;Declaration of Dividend and Initiation of Normal Course Issuer Bid&#148;.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><FONT style="FONT-variant: SMALL-CAPS"><B>Off-Balance Sheet Arrangements and Contractual Obligations</B></FONT>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">All commitments have been reflected in our balance sheets except for operating leases and
other purchase obligations, which are included in the table of contractual obligations that
follows. As disclosed in Note 13 to our 2010 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
their contractual obligations. As at October&nbsp;3, 2010, the maximum potential liability under these
guarantees was $21.8&nbsp;million, of which $5.1&nbsp;million was for surety bonds and $16.7&nbsp;million was for
corporate guarantees and standby letters of credit.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">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 for the following items as at October&nbsp;3, 2010:
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="40%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">Less than 1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">1 to 3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">4 to 5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">More than 5</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left"><I>(in $ millions)</I></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>Total</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">fiscal year</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">fiscal years</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">fiscal years</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">fiscal years</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="21" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Operating leases</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>46.2</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">16.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12.2</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Purchase obligations</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>144.2</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">144.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="21" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Total Contractual Obligations</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>190.4</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">153.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">16.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12.2</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="21" align="left" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><FONT style="FONT-variant: SMALL-CAPS"><B>Derivative Instruments </B></FONT>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">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 speculative purposes. During fiscal 2010, the Company entered into
forward foreign exchange contracts in order to minimize the exposure of forecasted cash inflows and
outflows in currencies other than the U.S. dollar, and to a lesser extent, fuel oil forward
contracts in order to reduce the exposure of forecasted cash outflows related to some of its energy
consumption needs. These derivative financial instruments were designated as cash flow hedges and
qualified for hedge accounting. Please refer to Note 20 to the 2010 audited Consolidated Financial
Statements for a description of the maturities, carrying values and fair values of the derivative
financial instruments outstanding as at October&nbsp;3, 2010.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><FONT style="FONT-variant: SMALL-CAPS"><B>Outstanding Share Data </B></FONT>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Our common shares are listed on the New York Stock Exchange and the Toronto Stock Exchange
(GIL). As at November&nbsp;30, 2010 there were 121,357,204 common shares issued and outstanding along
with 1,365,464 stock options and 747,714 dilutive restricted share units (Treasury RSUs)
outstanding. Each stock option entitles the holder to purchase one common share at the end of the
vesting period at a pre-determined option price. Each Treasury RSU entitles the holder to receive
one common share from treasury at the end of the vesting period, without any monetary consideration
being paid to the Company. However, the vesting of at least 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.
</DIV>


<DIV align="right" style="font-size: 10pt; margin-top: 12pt">GILDAN 2010 REPORT TO SHAREHOLDERS P.20
</DIV>



<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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<DIV style="font-family: Helvetica,Arial,sans-serif">



<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="47%"></TD>
    <TD width="5%"></TD>
    <TD width="47%"></TD>
</TR>
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<TR valign="bottom"><!-- Blank Space -->
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top"><IMG src="n66662n6666203.gif" alt="(GILDAN LOGO)">
</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">MANAGEMENT&#146;S DISCUSSION AND ANALYSIS</TD>
</TR>

<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Review of Historical Stock Option Grants</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">As previously disclosed, an internal review of all stock option grants made by the Company
since its initial public offering in 1998 was conducted by a special committee of independent
directors of the Board. As a result of this review, the Company determined that certain stock
options granted to employees, officers and directors during fiscal years 1999 to 2003 had been
awarded at prices which were inconsistent with the terms of the Company&#146;s Long-Term Incentive Plan
(LTIP)&nbsp;in effect at the time, as well as with certain requirements of the Toronto Stock Exchange.
The special committee of the Board concluded that there had been no intention of wrongdoing on the
part of any current or former director or senior officer in the granting of stock options during
the aforesaid period. However, current directors and senior executive officers who inadvertently
benefitted from more favourable pricing of stock options have voluntarily reimbursed the Company
for any excess gains and have agreed to the repricing of unexercised options. In addition, the
Company has pursued all reasonable avenues for recoveries from other parties. The steps taken by
the Company resulted in: (i)&nbsp;the Company increasing the exercise price of 261,440 unexercised
vested stock options during the second quarter, resulting in a $0.2&nbsp;million increase in the
aggregate exercise value of the unexercised stock options, or representing an increase to the
weighted average exercise price for these stock options of $0.77 (from $6.18 to $6.95), and also
resulting in an increase of $0.10 to the weighted average exercise price of all options outstanding
as at April&nbsp;4, 2010 (from $18.76 to $18.86), and; (ii)&nbsp;the Company recovering $2.2&nbsp;million in cash,
including $1.1&nbsp;million from current senior officers during the second quarter relating to stock
options that were previously exercised, and $1.1&nbsp;million from other parties during the first
quarter. Amounts recovered in cash from current senior officers have been recorded as a credit to
contributed surplus. No adjustment is required to prior year financial statements under either
Canadian or U.S. GAAP.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><FONT style="FONT-variant: SMALL-CAPS"><B>Declaration of Dividend and Initiation of Normal Course Issuer Bid</B></FONT>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">On December&nbsp;2, 2010, the Company announced that its Board of Directors had approved the
introduction of a quarterly cash dividend. The initial quarterly dividend of U.S. $0.075 per share
will be paid on all issued and outstanding Common Shares of the Company listed on the New York
Stock Exchange (the &#147;NYSE&#148;) and the equivalent amount in Canadian dollars (using the Bank of
Canada&#146;s latest noon conversion rate at the time of payment) will be paid for Common Shares listed
on the Toronto Stock Exchange (the &#147;TSX&#148;). The initial dividend will be paid on March&nbsp;18, 2011,
rateably and proportionately to the holders of record on February&nbsp;23, 2011, being the record date.
The dividend policy will be reviewed annually by the Board of Directors.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Company also announced the reinstatement of a normal course issuer bid to repurchase up to one
million outstanding Common Shares of the Company on the TSX and the NYSE (the &#147;NCIB&#148;). The Company
is authorized to make purchases under the NCIB during the period from December&nbsp;6, 2010 to December
5, 2011 or until such time as the NCIB is completed or terminated at the Company&#146;s option. The
price to be paid will be the market price of the Common Shares on the stock exchange on which the
shares are purchased at the time of acquisition. Common Shares purchased under the NCIB will be
cancelled.
</DIV>


<DIV align="left" style="font-size: 12pt; margin-top: 12pt"><B>LEGAL PROCEEDINGS</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><FONT style="FONT-variant: SMALL-CAPS"><B>Securities Class&nbsp;Actions</B></FONT>

</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">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&nbsp;2, 2007 and April&nbsp;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&nbsp;29, 2008.
</DIV>

<DIV align="right" style="font-size: 10pt; margin-top: 12pt">GILDAN 2010 REPORT TO SHAREHOLDERS P.21
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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<DIV style="font-family: Helvetica,Arial,sans-serif">

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="47%"></TD>
    <TD width="5%"></TD>
    <TD width="47%"></TD>
</TR>
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<TR valign="bottom"><!-- Blank Space -->
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top"><IMG src="n66662n6666203.gif" alt="(GILDAN LOGO)">
</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">MANAGEMENT&#146;S DISCUSSION AND ANALYSIS</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">The U.S. lawsuits have been consolidated, and a consolidated amended complaint was filed
alleging claims under the U.S. securities laws. On July&nbsp;1, 2009, the District Court
granted the motion by the Company 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&nbsp;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&nbsp;31, 2009, the Company and the other defendants filed a
response to plaintiffs&#146; motion seeking reconsideration. On December&nbsp;4, 2009, the plaintiffs&#146; motion
seeking reconsideration was denied. The Plaintiff&#146;s have appealed the decisions on the motion for
reconsideration and the motion to dismiss, but no date has been set yet for the appeal.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">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. In the Quebec action, a motion requesting
permission to amend the petition was filed on April&nbsp;6, 2010, to align the allegations in said
petition with those pleaded in the Ontario action. A case management judge has been
appointed but no date has been set yet for the case conference.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">On August&nbsp;3, 2010, the Company announced it had entered into an agreement to settle all claims
raised in these proposed class action lawsuits, subject to final approval from the courts. In
consideration of the dismissal of the proposed class actions currently pending before all three
courts and releases from the proposed class members of the claims against the Company and certain
of its senior executives, the settlement agreement provides for a total amount of $22.5&nbsp;million to
be paid into an escrow account for distribution to the proposed class members. The settlement is
conditional on the courts&#146; approval and subject to the Company&#146;s option to terminate the settlement
in the event valid opt-outs by the proposed class members exceed a pre-agreed confidential opt-out
threshold. Under this agreement, the Company would have no financial obligation as the settlement
would be entirely funded by the Company&#146;s insurers, and therefore no provision has been recorded in
the Consolidated Financial Statements.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">In the event the Company would elect to terminate the settlement agreement because valid opt-outs
by proposed class members exceed the pre-agreed opt-out threshold, or if the courts would not
provide final approval of the settlement, the parties would revert to their litigation positions
immediately prior to the execution of the settlement agreement. If such event would occur, the
Company would continue to strongly contest the basis upon which these actions are predicated and
would vigorously defend its position. Under this scenario, due to the inherent uncertainties of
litigation, it would not be possible to predict the final outcome of these lawsuits or determine
the amount of any potential losses, if any.
</DIV>


<DIV align="left" style="font-size: 12pt; margin-top: 12pt"><B>OUTLOOK</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">A discussion of management&#146;s expectations as to our outlook for fiscal 2011 is contained in
our fourth quarter earnings results press release dated December&nbsp;2, 2010 under the section entitled
&#147;Fiscal 2011 Outlook and Business Plans&#148;. The press release is available on the SEDAR website at
<U>www.sedar.com</U>, on the EDGAR website at <U>www.sec.gov</U> and on our website at
<U>www.gildan.com</U>.
</DIV>


<DIV align="left" style="font-size: 12pt; margin-top: 12pt"><B>FINANCIAL RISK MANAGEMENT</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">This section of the MD&#038;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, as well as risks arising from commodity prices,
and how the Company manages those risks. The disclosures under this section, in conjunction with
the information in Note 20 to the 2010 audited Consolidated Financial Statements
(&#147;Financial Instruments&#148;), are designed to meet the requirements of the Canadian Institute of
Chartered Accountants Handbook Section&nbsp;3862, <I>Financial</I>
</DIV>


<DIV align="right" style="font-size: 10pt; margin-top: 12pt">GILDAN 2010 REPORT TO SHAREHOLDERS P.22
</DIV>



<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
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<DIV style="font-family: Helvetica,Arial,sans-serif">



<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
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    <TD width="47%"></TD>
    <TD width="5%"></TD>
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</TR>
<TR valign="bottom">
    <TD align="left" valign="top"><IMG src="n66662n6666203.gif" alt="(GILDAN LOGO)">
</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">MANAGEMENT&#146;S DISCUSSION AND ANALYSIS</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><I>Instruments-Disclosures</I>, and are therefore incorporated into, and are an integral part of, the
audited consolidated financial statements.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">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.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><FONT style="FONT-variant: SMALL-CAPS"><B>Credit risk</B></FONT>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">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 forward fuel oil contracts, 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.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">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&nbsp;3,
2010, the Company&#146;s ten largest trade debtors accounted for 61% of trade accounts receivable, of
which one wholesale customer accounted for 10% and two mass-market retailers accounted for 27%. Of
the Company&#146;s top ten trade debtors, eight are wholesale distributors, two are mass-market
retailers and nine 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 the Asia/Pacific region.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Most sales are invoiced with payment terms of between 30 to 60&nbsp;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.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Company&#146;s customers have generally been transacting with the Company or its subsidiaries for
over five years. Many distributors and other customers in the screenprint channel 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 these 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.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">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 sales offices in Barbados and Charleston,
South Carolina. Where available, the Company&#146;s credit departments periodically review external
ratings and customer financial statements, and in some cases obtain 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.
</DIV>


<DIV align="right" style="font-size: 10pt; margin-top: 12pt">GILDAN 2010 REPORT TO SHAREHOLDERS P.23
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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<DIV style="font-family: Helvetica,Arial,sans-serif">



<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
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    <TD width="47%"></TD>
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</TR>
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    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top"><IMG src="n66662n6666203.gif" alt="(GILDAN LOGO)">
</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">MANAGEMENT&#146;S DISCUSSION AND ANALYSIS</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">The Company&#146;s exposure to credit risk for trade receivables by geographic area and type of customer
was as follows as at October&nbsp;3, 2010 and October&nbsp;4, 2009:
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="76%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left"><I>(in $ millions)</I></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>October 3, 2010</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">October 4, 2009</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">United States</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>118.4</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">135.4</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Europe</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>13.4</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12.2</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Canada</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>6.4</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7.5</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Other regions</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>7.5</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4.5</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Total trade receivables</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>145.7</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">159.6</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="76%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left"><I>(in $ millions)</I></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>October 3, 2010</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">October 4, 2009</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Distributors and other customers in the screenprint channel</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>96.3</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">127.7</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Mass-market and regional retailers</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>49.4</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">31.9</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Total trade receivables</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>145.7</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">159.6</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The aging of trade receivable balances was as follows as at:
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="76%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left"><I>(in $ millions)</I></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>October 3, 2010</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">October 4, 2009</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Not past due</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>129.1</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">144.5</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Past due 0-30&nbsp;days</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>17.5</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">14.9</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Past due 31-60&nbsp;days</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>3.5</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3.5</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Past due 61-120&nbsp;days</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>1.2</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.2</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Past due over 121&nbsp;days</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>1.4</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.5</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Trade receivables</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>152.7</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">165.6</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Less allowance for doubtful accounts</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right"><B>(7.0</B></TD>
    <TD nowrap><B>)</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(6.0</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Total trade receivables</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>145.7</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">159.6</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The movement in the allowance for doubtful accounts in respect of trade
receivables was as follows:
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="76%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left"><I>(in $ millions)</I></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>October 3, 2010</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">October 4, 2009</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Balance, beginning of year</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>6.0</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2.8</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Bad debt expense</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>2.4</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6.0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Write-off of accounts receivable</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right"><B>(1.4</B></TD>
    <TD nowrap><B>)</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(2.8</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Balance, end of year</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>7.0</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6.0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><FONT style="FONT-variant: SMALL-CAPS"><B>Liquidity Risk </B></FONT>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">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.
</DIV>


<DIV align="right" style="font-size: 10pt; margin-top: 12pt">GILDAN 2010 REPORT TO SHAREHOLDERS P.24
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: Helvetica,Arial,sans-serif">



<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="47%"></TD>
    <TD width="5%"></TD>
    <TD width="47%"></TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom"><!-- Blank Space -->
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top"><IMG src="n66662n6666203.gif" alt="(GILDAN LOGO)">
</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">MANAGEMENT&#146;S DISCUSSION AND ANALYSIS</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">We manage liquidity risk through the management of our capital structure and financial leverage, as
outlined in Note 21 to the 2010 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 transactions such as  the declaration of dividends, the initiation of share repurchase programs,
mergers, acquisitions and other major investments or divestitures.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Company has a committed revolving credit facility for a maximum of $400&nbsp;million which expires
in June&nbsp;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&nbsp;3, 2010. This facility is unsecured
and amounts drawn bear interest at LIBOR or U.S. base rates plus an applicable margin. As at
October&nbsp;3, 2010 and October&nbsp;4, 2009, there were no amounts drawn under this facility.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><FONT style="FONT-variant: SMALL-CAPS"><B>Foreign Currency Risk </B></FONT>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">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, the Australian dollar 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&#038;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 and included in financial
expense (income)&nbsp;in the statement of earnings.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">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.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">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. During fiscal 2010, the Company entered into forward
foreign exchange contracts in order to minimize the exposure of forecasted cash inflows and
outflows in currencies other than the U.S. dollar. The Company had forward foreign exchange
contracts outstanding as at October&nbsp;3, 2010 consisting primarily of contracts to sell or buy Euros,
Australian dollars, Canadian dollars, and Mexican pesos in exchange for U.S. dollars. These
outstanding contracts and other forward foreign exchange contracts that were settled during fiscal
2010 were designated as cash flow hedges and qualified for hedge accounting. We refer the reader
to Note 16 and Note 20 to the 2010 audited Consolidated Financial Statements for details of these
forward foreign exchange contracts and the impact of applying hedge accounting.
</DIV>

<DIV align="right" style="font-size: 10pt; margin-top: 12pt">GILDAN 2010 REPORT TO SHAREHOLDERS P.25
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: Helvetica,Arial,sans-serif">

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="47%"></TD>
    <TD width="5%"></TD>
    <TD width="47%"></TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom"><!-- Blank Space -->
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top"><IMG src="n66662n6666203.gif" alt="(GILDAN LOGO)">
</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">MANAGEMENT&#146;S DISCUSSION AND ANALYSIS</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">The following tables provide an indication of the Company&#146;s significant foreign currency exposures
on the consolidated balance sheet as at October&nbsp;3, 2010 arising from financial instruments.
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="40%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="6" style="border-bottom: 0px solid #000000"><B>October 3, 2010</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left"><I>(in U.S. $ millions)</I></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>CAD</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>EUR</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>GBP</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>MXN</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>AUD</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="21" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Cash and cash equivalents</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.4</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Accounts receivable</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3.8</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Foreign exchange contracts (derivative asset)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Accounts payable and accrued liabilities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(22.7</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(5.1</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(0.3</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.1</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Foreign exchange contracts (derivative liability)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(2.0</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(0.5</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(0.6</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="21" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>

<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Based on the Company&#146;s foreign currency exposures arising from financial instruments noted
above, varying the foreign exchange rates to reflect a 5&nbsp;percent strengthening of the U.S. dollar
would have increased (decreased)&nbsp;net earnings and Other comprehensive income as follows, assuming
that all other variables remained constant:
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="40%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="14" style="border-bottom: 0px solid #000000"><B>For the year ended October 3, 2010</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left"><I>(in U.S. $ millions)</I></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>CAD</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>EUR</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>GBP</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>MXN</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>AUD</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="21" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Impact on net earnings before income taxes</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(0.5</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(0.3</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(0.2</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Impact on other comprehensive income before income taxes</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">(0.2</TD>
    <TD>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">1.6</TD>
    <TD nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">1.2</TD>
    <TD nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">0.4</TD>
    <TD nowrap>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="21" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>

<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">An assumed 5&nbsp;percent weakening of the U.S. dollar during the year ended October&nbsp;3, 2010 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.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><FONT style="FONT-variant: SMALL-CAPS"><B>Commodity Risk for Cotton</B></FONT>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Company is subject to the commodity risk of cotton prices and cotton price movements, as
all of its products are made of 100% cotton or blends of cotton and synthetic fibres. The Company&#146;s
yarn-spinning joint venture (CanAm Yarns, whose accounts are included in the Company&#146;s consolidated
financial statements) purchases cotton for the production of yarn, and the Company consumes all of
CanAm&#146;s yarn production in the manufacture of its apparel products. In addition, the Company
purchases cotton-based yarn from third party yarn manufacturers and the Company assumes the risk of
cotton price fluctuations for these yarn purchases. The Company enters into contracts, up to
eighteen months in advance of future delivery dates, to establish fixed prices for its cotton and
cotton yarn purchases in order to reduce the effects of fluctuations in the cost of cotton used in
the manufacture of its products. These contracts are not used for trading purposes, and are not
considered to be financial instruments that would need to be accounted for at fair value in the
Company&#146;s consolidated financial statements. Without taking into account the impact of fixed price
contracts, a change of $0.01 per pound in cotton prices would affect the Company&#146;s annual raw
material costs by approximately $4&nbsp;million, based on current production levels.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Company has the ability to enter into derivative financial instruments, including market-traded
cotton futures and option contracts, to manage its exposure to movements in commodity prices. Such
contracts would be accounted for at fair value in the consolidated financial statements in
accordance with the accounting standards applicable to financial instruments. At the end of fiscal
2010 and 2009, the Company had no cotton related derivative financial instruments outstanding.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><FONT style="FONT-variant: SMALL-CAPS"><B>Interest Rate Risk </B></FONT>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">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
</DIV>


<DIV align="right" style="font-size: 10pt; margin-top: 12pt">GILDAN 2010 REPORT TO SHAREHOLDERS P.26
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: Helvetica,Arial,sans-serif">



<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="47%"></TD>
    <TD width="5%"></TD>
    <TD width="47%"></TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom"><!-- Blank Space -->
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top"><IMG src="n66662n6666203.gif" alt="(GILDAN LOGO)">
</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">MANAGEMENT&#146;S DISCUSSION AND ANALYSIS</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">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.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">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
2010 and 2009, the Company had no derivative financial instruments outstanding, but during fiscal
2009, the Company entered into two interest rate swap contracts totaling $50.0&nbsp;million which
matured in the third and fourth quarters, respectively.
</DIV>


<DIV align="left" style="font-size: 12pt; margin-top: 12pt"><B>CRITICAL ACCOUNTING ESTIMATES</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Our significant accounting policies are described in Note 1 to our 2010 audited
Consolidated Financial Statements. The preparation of financial statements in conformity with
Canadian GAAP requires estimates and assumptions that affect our results of operations and
financial position. By their nature, these 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.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Management believes that the following accounting estimates require assumptions to be made about
matters that are highly uncertain:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Allowance for Doubtful Accounts</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">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.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Inventory Valuation</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">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.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Sales Promotional Programs</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">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.
</DIV>


<DIV align="right" style="font-size: 10pt; margin-top: 12pt">GILDAN 2010 REPORT TO SHAREHOLDERS P.27
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: Helvetica,Arial,sans-serif">



<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="47%"></TD>
    <TD width="5%"></TD>
    <TD width="47%"></TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom"><!-- Blank Space -->
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top"><IMG src="n66662n6666203.gif" alt="(GILDAN LOGO)">
</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">MANAGEMENT&#146;S DISCUSSION AND ANALYSIS</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Recoverability of Long-Lived Assets</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">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.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">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.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Income Taxes</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">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.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">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.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">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.
</DIV>


<DIV align="right" style="font-size: 10pt; margin-top: 12pt">GILDAN 2010 REPORT TO SHAREHOLDERS P.28
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: Helvetica,Arial,sans-serif">



<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="47%"></TD>
    <TD width="5%"></TD>
    <TD width="47%"></TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom"><!-- Blank Space -->
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top"><IMG src="n66662n6666203.gif" alt="(GILDAN LOGO)">
</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">MANAGEMENT&#146;S DISCUSSION AND ANALYSIS</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Business Acquisitions and Goodwill</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">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.
</DIV>


<DIV align="left" style="font-size: 12pt; margin-top: 12pt"><B>ACCOUNTING POLICIES AND FUTURE ACCOUNTING STANDARDS</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><FONT style="FONT-variant: SMALL-CAPS"><B>Accounting Policies</B></FONT>

</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Company applied the same accounting policies in the preparation of its 2010 audited
Consolidated Financial Statements as those applied in the preparation of its 2009 audited
Consolidated Financial Statements.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><FONT style="FONT-variant: SMALL-CAPS"><B>Future Accounting Standards</B></FONT>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><FONT style="FONT-variant: SMALL-CAPS"><B>International Financial Reporting Standards (IFRS)</B></FONT>

</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">In February&nbsp;2008, the AcSB confirmed that IFRS, as issued by the International Accounting
Standards Board (IASB), will replace Canadian GAAP for publicly accountable enterprises effective
for fiscal years beginning on or after January&nbsp;1, 2011. As a result, the changeover to IFRS will be
required for our fiscal 2012 interim and annual financial statements beginning October&nbsp;3, 2011 (the
&#147;changeover date&#148;) with comparative information presented for fiscal 2011.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">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&nbsp;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&nbsp;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.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">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 reflects assumptions based on information available as at
the date of this report, and circumstances may arise, such as changes in IFRS standards or economic
conditions, which could materially change these assumptions as well as the progress of our IFRS
changeover plan, and may cause the Company to select different accounting policies and/or IFRS 1
exemptions than the preliminary conclusions reached to date. In addition, the IASB has a number of
on-going projects on its agenda, and IFRS standards and interpretations are continuously subject to
change. Our summary of key expected changes has been completed with the expectation that we will
apply IFRS in effect as at the date of this
</DIV>

<DIV align="right" style="font-size: 10pt; margin-top: 12pt">GILDAN 2010 REPORT TO SHAREHOLDERS P.29
</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 12pt">report. However we will only make final decisions regarding early adoption of any new standards as
they are issued by the IASB. We continuously review all developments issued by the IASB, the AcSB,
and the Canadian Securities Administrators (CSA), and assess the impact of any new developments on
our IFRS transition plan and make any necessary changes accordingly.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Progress towards Completion of our IFRS Changeover Plan</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">In preparation for the changeover to IFRS, we have developed an IFRS transition plan
consisting of three phases &#151; 1) Scoping and Diagnostic Phase, 2) Detailed Impact Analysis and
Design Phase, and 3) Implementation and Review Phase. As at October&nbsp;3, 2010, we have completed the
first phase of our IFRS transition plan, the second phase is substantially complete, and the
implementation and review phase is currently underway which will continue until our first complete
annual financial reporting under IFRS is released at the end of fiscal 2012.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Our IFRS transition is on schedule and there have been no significant changes to our plan than what
was previously reported in our 2009 annual MD&#038;A, as subsequently updated in our 2010 interim
MD&#038;A&#146;s. We will continue to report on the status of our plan, significant findings, and provide
more detailed information on preliminary conclusions reached as our IFRS changeover plan
progresses. The key elements and status of our changeover plan are as follows:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><U>Information technology and data systems</U>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Systems and processes are currently in place to collect the information required under IFRS.
Although new reports will likely be required to capture new information required for presentation
and disclosure under IFRS, we currently do not expect the transition to IFRS to require significant
changes to our information technology systems and reports. We also expect our systems to be
reliable for purposes of generating the comparative fiscal 2011 information that needs to be
provided in accordance with IFRS during fiscal 2012, as well as the information required in the
opening balance sheet as at the transition date.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><U>Internal controls over financial reporting</U>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Internal control processes and procedures will be put into place in order to address the key
accounting differences resulting from the changeover to IFRS. Internal controls applicable to our
reporting process under Canadian GAAP are expected to be substantially the same as those required
in our IFRS reporting environment.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><U>Disclosure controls and procedures, including investor relations and external communications
plans</U>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Disclosure controls and procedures will be updated to include all data required for additional
financial statement disclosures under IFRS. Our disclosure controls and procedures will also be
updated as our changeover to IFRS continues to ensure that information is appropriately
communicated in our external communications and other periodic published reports.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><U>Financial expertise including training requirements</U>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The project to transition to IFRS is being led by the Corporate Accounting group in Montreal. The
Corporate Accounting group has the appropriate resources and skills to effectively complete the
changeover to IFRS on a timely basis, and internal communication and education is being rolled out
in phases throughout the Company as the key elements are addressed. Periodic meetings are held
with management and the Audit and Finance Committee in order to keep them informed of the progress
of our transition plan. External advisors are also being consulted on an as needed basis to review
our transition work plan and business impact analysis, and advise us on issues as they arise.
</DIV>

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</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><U>Business contracts, including the impact on operating agreements and key performance
indicators</U>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Business contracts which are affected by financial results such as financial covenants and
long-term incentive plans are being reviewed to assess the impact from the changeover to IFRS. The
changeover to IFRS is not expected to have a significant impact on our business contracts.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><U>Accounting policies, including choices among policies permitted under IFRS</U>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">We have made considerable progress in identifying accounting differences and accounting policy
alternatives under IFRS as compared to Canadian GAAP, and the potential impact of such differences
on the Company&#146;s accounting at the transition date and on an ongoing basis. Based on the results
of our detailed analysis to date, no material impacts are expected at the transition date, in part
because Canadian accounting standards are substantially aligned with IFRS requirements for certain
key areas. However, we have identified a number of areas where we expect there to be some impact
on the recognition and measurement of certain balance sheet and statement of earnings items. We are
currently finalizing the validation of certain results of our detailed impact analysis and
therefore our conclusions are still preliminary at this stage. We are currently not able to
reliably quantify all of the impacts expected on our consolidated financial statements for these
differences. Final conclusions may have a material impact on our financial statements upon
transition to IFRS. We expect to be in a position to disclose the quantitative impact of all our
significant accounting differences progressively throughout fiscal 2011 as we complete our
analysis.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The following are some of the significant differences between Canadian GAAP and IFRS that have been
identified to date and which are currently being evaluated:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Investment in consolidated joint venture</B>: Our consolidated financial statements currently include
the accounts of our yarn spinning joint venture CanAm Yarns LLC (&#147;CanAm&#148;), as we are considered the
primary beneficiary of this entity under Canadian GAAP, in part because we consume all of CanAm&#146;s
production. Our partner&#146;s share of the net assets and net earnings of CanAm are reflected as a
non-controlling interest adjustment in our consolidated balance sheet and statement of earnings.
Under IFRS, CanAm is considered a jointly controlled entity and we are not deemed to exercise
control. Consequently, we expect that we will no longer be permitted to consolidate CanAm, in
which case we intend to account for this investment using the equity method. Under the equity
method, which is effectively a &#147;one-line consolidation method&#148;, our net investment in CanAm would
be presented as a long-term asset on one line in our consolidated balance sheet, for an amount
equal to our initial investment and our cumulative share of undistributed earnings. We would apply
this change to the opening IFRS balance sheet, but no material adjustment to opening retained
earnings is expected, as the long-term asset to be reported would be essentially the same as the
amount of net assets and non-controlling interest that would be removed from our balance sheet.
Post transition, net earnings are not expected to be affected by this change, but there would be
non-material changes to the components of our net earnings, as our share of CanAm&#146;s net earnings
would be presented in a separate caption in the statement of earnings, appearing below the gross
profit subtotal. In addition, the Company&#146;s consolidated statement of cash flows will no longer
include the cash flows of CanAm, and in particular, the cash flows  related to CanAm&#146;s capital
expenditures and borrowings will no longer be included in the Company&#146;s cash flows relating to investing activities and financing activities. However, any additional investments in CanAm will be presented as part of cash flows relating to investing activities. Any transactions between
the Company and CanAm post transition will no longer be eliminated upon consolidation, but will
instead be recorded, measured and disclosed as a related party transaction in the Company&#146;s
consolidated financial statements.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Business combinations &#151; Transaction costs and restructuring costs: </B>Under IFRS, transaction costs
and restructuring costs are generally charged to earnings as incurred. Under Canadian GAAP,
transaction costs and certain anticipated post-acquisition restructuring costs are included in the
cost of the purchase (which usually results in such costs being added to goodwill). As noted
below, we expect to use an optional exemption that will allow us to apply IFRS guidance only for
business combinations that occur after the transition date, and accordingly we do not expect to
record adjustments to the opening IFRS balance sheet for these accounting policy differences.
</DIV>


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</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Business combinations &#151; Contingent consideration: </B>Under Canadian GAAP, contingent consideration is
recognized at the date of acquisition of a business when the amount can be reasonably estimated and
the outcome is determinable beyond reasonable doubt. Otherwise, contingent consideration is
recognized when resolved. When there are revisions to the amount of contingent consideration, the
fair value of the consideration issued is recognized as an additional cost of the purchase (which
usually results in such costs being added to goodwill). Under IFRS, contingent consideration is
recognized at the date of acquisition at fair value, generally as a liability. The impact of
changes in the subsequent re-measurement of contingent consideration, when recognized as a
liability, is recorded in net earnings. This difference will result in the recognition of a
liability of approximately $5.8&nbsp;million at the transition date with a corresponding decrease to
retained earnings, related to contingent consideration as part of a previous business combination,
which has not been recognized under Canadian GAAP prior to the transition date. This adjustment is
charged to retained earnings rather than goodwill because IFRS does not permit transition date
adjustments to be made to goodwill.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">For future business combinations, the above differences could have a significant and possibly
material impact on our financial position and results of operations, although the impact will
depend on the scale and frequency of future business acquisition activity. We also note that
during fiscal 2011, we expect to early adopt the new Canadian GAAP accounting standards for
business combinations and consolidated financial statements and non-controlling interests (CICA
Handbook Sections&nbsp;1582, 1601 and 1602), which are substantially equivalent to the respective
current standards under IFRS. By early adopting these standards, any business combinations
occurring in fiscal 2011 will generally not need to be restated when our fiscal 2011 financial
statements are presented as comparative financial statements in accordance with IFRS in fiscal
2012.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Borrowing costs: </B>Under IFRS, borrowing costs incurred during the period in which an asset is being
constructed must be capitalized as part of the cost of the asset. Under the Company&#146;s current
accounting policy, all borrowing costs are charged to earnings and included in financial expense
(income). As the Company has a history of constructing its manufacturing facilities, it is
reasonable to expect that a portion of the Company&#146;s borrowing costs incurred in periods subsequent
to the adoption of IFRS will be capitalized, although the amount of capitalized costs will depend
on the scale of future construction activity and the level of interest-bearing indebtedness, if
any, outstanding during the period of construction. As noted below, we expect to use an optional
exemption that will allow us to capitalize borrowing costs only for assets for which the
commencement date for capitalization is on or after the transition date. Accordingly, the Company
does not expect to record an opening IFRS balance sheet adjustment for borrowing costs incurred
prior to the transition date.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Income taxes &#151; Assets transferred between entities within the consolidated group</B>: Under Canadian
GAAP, deferred income tax assets and liabilities are not recognized for temporary differences
arising from assets transferred between entities within the consolidated group, although any income
tax expense/recovery incurred by the selling entity is deferred on the balance sheet as a non-tax
asset/liability. Under IFRS, the tax expense/recovery incurred by the selling entity is not
deferred, but a deferred income tax asset/liability is recorded for the temporary difference
resulting from the internal transfer (essentially the change in the tax basis), valued at the
buying entity&#146;s tax rate. We currently expect that this difference will result in the recognition
of a non-material deferred income tax asset at the transition date for the tax effect of temporary
differences for certain inventories which have been transferred between group entities.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Income taxes &#151; Deferred tax assets in a business combination recognized subsequent to the
measurement period</B>: Under Canadian GAAP, additional deferred tax assets of the acquiree that are
not initially recognized within the measurement period, but are recognized subsequent to the
measurement period are recognized first as a reduction of goodwill, then as a reduction of
intangible assets before any adjustment is recognized in net earnings. Under IFRS, additional
deferred tax assets of the acquiree can only be recognized as a reduction of goodwill, and if not
recognized within the measurement period, the adjustment is recognized in net earnings. This
difference will result in an opening IFRS balance sheet adjustment of approximately $6&nbsp;million at
the transition date as an increase to our intangible assets, with a corresponding increase to
retained earnings, in order to reverse a reduction of intangible assets recorded
</DIV>

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</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">under Canadian GAAP related to deferred tax assets recognized subsequent to the measurement period
(related to a previous business combination).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Significant separable components of property, plant and equipment: </B>Under Canadian GAAP, the cost of
an item of property, plant and equipment made up of significant separable component parts are
allocated to the component parts when practicable and when estimates can be made of the lives of
the separate components. Under IFRS, each part of an item of property, plant and equipment with a
cost that is significant in relation to the total cost of the item shall be depreciated separately.
No significant impact is expected to our opening IFRS balance sheet at the transition date, and we
do not expect any significant modification to the groupings of our major capital assets.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Impairment of long-lived assets: </B>Under Canadian GAAP, the impairment test for long-lived
depreciable assets or asset groups is a two-step process. The first step involves comparing an
asset or asset group&#146;s carrying value to its undiscounted future cash flows. If an asset or asset
group&#146;s undiscounted cash flows are below its carrying value, the second step is required whereby
an impairment charge is measured by the difference between the asset or asset group&#146;s discounted
future cash flows and its carrying amount. IFRS only requires a one-step impairment test for
identifying and measuring impairment in which the carrying value of an asset or asset group
(referred to as a Cash Generating Unit) is compared to its recoverable amount (i.e. higher of fair
value less costs to sell and value-in-use, which normally involves discounted future cash flows)
and an impairment charge is recorded if the carrying value is lower than the recoverable amount.
Unlike Canadian GAAP, IFRS requires impairment charges (except goodwill impairment charges) to be
reversed when circumstances indicate that the impairment no longer exists. No impact is expected
to our IFRS opening balance sheet at the transition date. However, in future periods, impairment
rules under IFRS may result in more frequent write-downs due to the one-step impairment test, and
volatility in the Company&#146;s financial position and results of operations may arise due to possible
reversals of previously recorded impairment charges.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Leases: </B>Under Canadian GAAP, quantitative thresholds are provided to assist in determining whether
a lease should be classified as a financing/capital lease or an operating lease. Under IFRS, there
are no specific quantitative thresholds, and additional qualitative indicators are provided to
assist in determining lease classification. The findings of our review to date indicate that the
existing lease of our corporate aircraft which is currently accounted for as an operating lease
under Canadian GAAP would meet the criteria for a financing lease under IFRS. This difference is
due primarily to the fact that we have given notice to exercise an early purchase option on our
existing corporate aircraft, which will result in an opening IFRS balance sheet adjustment of an
increase to our non-current assets with a corresponding increase in current liabilities at the
transition date. Depreciation and interest expense from the financing lease under IFRS would
replace the lease expense previously charged to net earnings under Canadian GAAP, and any payments
would be recognized as repayments of principal and interest. Our intention is to dispose of the
existing aircraft once we complete the process of leasing a new aircraft. We expect the new
corporate aircraft to be classified as an operating lease under IFRS.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Key accounting policies not expected to be significantly impacted</B>: The Company has also assessed
other relevant standards, including but not limited to revenue recognition, inventories, share
based payments, and employee benefits, and expects that these standards are likely to have less
significance for the Company&#146;s changeover to IFRS.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><U>Financial statement note disclosure</U>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Compared to Canadian GAAP, IFRS requires significant additional disclosures, primarily in the notes
to the annual financial statements. There are also a number of special transitional disclosures
that will be required during fiscal 2012. We have identified the key additional disclosure
requirements and we are currently working on collecting the data and designing the reports required
for the additional disclosure. We expect to be in a position to provide the required disclosures
when we begin reporting in IFRS during fiscal 2012.
</DIV>


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<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><U>IFRS 1 Optional Exemptions</U>

</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The general requirement of IFRS 1 is full retrospective application of all accounting standards
effective at an entity&#146;s first annual reporting date with any resulting adjustments generally
recorded against retained earnings as of the transition date. IFRS 1 provides first-time adopters
certain optional exemptions and mandatory exceptions from full retrospective application. The
following table outlines the optional exemptions that the Company currently expects to use at the
transition date:
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="30%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="65%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #000000"><B>Accounting Policy</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Optional Exemption</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Foreign exchange cumulative
translation
differences
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">The exemption permits the balance of any cumulative
translation
adjustment (CTA)&nbsp;to be eliminated by an adjustment to opening
retained earnings at the transition date. As a result, the
Company will eliminate its CTA balance of $26.2&nbsp;million
currently included in accumulated other comprehensive income
through an adjustment to retained earnings at the transition
date.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Business combinations
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">The exemption permits the Company not to apply IFRS 3,
Business Combinations, to business combinations
occurring prior to the transition date.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Share based payment transactions
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">The exemption permits the Company to apply IFRS 2, Share-based Payment, only to equity instruments that were granted
after November&nbsp;7, 2002 which have not yet vested at the
transition date.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Borrowing costs
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">The exemption permits the capitalization of borrowing costs to
be limited to qualifying assets for which commencement date
for
capitalization is on or after the date of transition.</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><FONT style="FONT-variant: SMALL-CAPS"><B>Business Combinations</B></FONT>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">In January&nbsp;2009, the Accounting Standards Board (&#147;AcSB&#148;) issued CICA Handbook Section&nbsp;1582,
<I>Business Combinations</I>, which replaces Section&nbsp;1581, <I>Business Combinations</I>, and is generally
equivalent to IFRS 3, <I>Business Combinations </I>(January&nbsp;2008). The new Section expands the definition
of a business subject to an acquisition and establishes significant new guidance on the measurement
of consideration transferred, and the recognition and measurement of assets acquired and
liabilities assumed in a business combination. The new Section requires that all business
combinations 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&nbsp;percent of the equity
interest in the acquiree is owned 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 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&nbsp;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 expects to early adopt Section&nbsp;1582 in fiscal 2011.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><FONT style="FONT-variant: SMALL-CAPS"><B>Consolidated Financial Statements and Non-Controlling Interests</B></FONT>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">In January&nbsp;2009, the AcSB issued Canadian Institute of Chartered Accountants (&#147;CICA&#148;) Handbook
Section&nbsp;1601, <I>Consolidated Financial Statements</I>, and Handbook Section&nbsp;1602, <I>Non-Controlling
Interests</I>, which together replace Section&nbsp;1600, <I>Consolidated Financial Statements</I>. These two
Sections are the
</DIV>

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<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
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    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top"><IMG src="n66662n6666203.gif" alt="(GILDAN LOGO)">
</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">MANAGEMENT&#146;S DISCUSSION AND ANALYSIS</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 12pt">equivalent to the corresponding provisions of International Accounting Standard 27, <I>Consolidated
and Separate Financial Statements </I>(January&nbsp;2008) under IFRS. Section&nbsp;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&#146;s proportionate share of the acquiree&#146;s identifiable net assets. The new
Sections also require non-controlling interest to be presented as a separate component of
shareholders&#146; equity. Under Section&nbsp;1602, non-controlling interest in income is not deducted in
arriving at consolidated net income or other comprehensive income. Instead, 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&nbsp;1, 2011,
and should be adopted concurrently with Section&nbsp;1582. Earlier adoption is permitted which would be
effective as of the beginning of the fiscal year of adoption. The Company expects to early adopt
these Sections in fiscal 2011, 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.
</DIV>


<DIV align="left" style="font-size: 12pt; margin-top: 12pt"><B>RELATED PARTY TRANSACTIONS</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">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 $156.8&nbsp;million (2009 &#151; $149.8&nbsp;million), along with $0.8&nbsp;million (2009 &#151; $0.8&nbsp;million)
relating to management fees for the year ended October&nbsp;3, 2010. As at October&nbsp;3, 2010, we had an
outstanding payable to Frontier of $30.0&nbsp;million (October&nbsp;4, 2009 &#151; $22.1&nbsp;million).
</DIV>


<DIV align="left" style="font-size: 12pt; margin-top: 12pt"><B>DISCLOSURE CONTROLS</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">As stated in the Ontario Securities Commission National Instrument 52-109, <I>Certification of
Disclosure in Issuers&#146; Annual and Interim Filings</I>, disclosure controls and procedures means
controls and other procedures of an issuer that are designed to provide reasonable assurance that
information required to be disclosed by the issuer in its annual filings, interim filings or other
reports filed or submitted by it under securities legislation is recorded, processed, summarized
and reported within the time periods specified in the securities legislation and include controls
and procedures designed to ensure that information required to be disclosed by an issuer in its
annual filings, interim filings or other reports filed or submitted under securities legislation is
accumulated and communicated to the issuer&#146;s management, including its certifying officers, as
appropriate to allow timely decisions regarding required disclosure.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">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&nbsp;3, 2010. 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.
</DIV>


<DIV align="left" style="font-size: 12pt; margin-top: 12pt"><B>INTERNAL CONTROL OVER FINANCIAL REPORTING</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Management&#146;s Annual Report on Internal Control Over Financial Reporting</B>

</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Our management is responsible for establishing and maintaining adequate internal control over
financial reporting, as such term is defined in Rules&nbsp;13(a)-15(f) and 15(d)-15(f) under the U.S.
Securities Exchange Act of 1934.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">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)&nbsp;provide reasonable assurance that transactions are
recorded as necessary to permit preparation of financial statements in accordance with generally
accepted accounting principles,
</DIV>


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<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="47%"></TD>
    <TD width="5%"></TD>
    <TD width="47%"></TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom"><!-- Blank Space -->
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top"><IMG src="n66662n6666203.gif" alt="(GILDAN LOGO)">
</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">MANAGEMENT&#146;S DISCUSSION AND ANALYSIS</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">and that our receipts and expenditures are being made only in accordance with authorization of our
management and directors; and (3)&nbsp;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.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">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&nbsp;3, 2010, 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.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Attestation Report of Independent Registered Public Accounting Firm</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">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&nbsp;3, 2010.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Changes in Internal Controls Over Financial Reporting</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">There have been no changes during fiscal 2010 in our internal control over financial reporting
that have materially affected, or are reasonably likely to materially affect, our internal control
over financial reporting.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">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.
</DIV>


<DIV align="left" style="font-size: 12pt; margin-top: 12pt"><B>RISKS AND UNCERTAINTIES</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">In addition to the risks previously described under the section &#147;Financial Risk Management&#148;
and those described elsewhere in this MD&#038;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.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Our ability to implement our strategies and plans</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The growth of our business depends on the successful 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 channel, 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 may be different and economic returns may be lower
in new market channels and new geographical markets which the Company enters. Also, there can be no
assurance that we do not encounter operational issues that may affect or disrupt our production or
supply chain or that 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.
</DIV>


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<DIV style="font-family: Helvetica,Arial,sans-serif">


<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="47%"></TD>
    <TD width="5%"></TD>
    <TD width="47%"></TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom"><!-- Blank Space -->
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top"><IMG src="n66662n6666203.gif" alt="(GILDAN LOGO)">
</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">MANAGEMENT&#146;S DISCUSSION AND ANALYSIS</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Our ability to compete effectively</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">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&#038;A under the
heading &#147;Competitive Environment&#148; in the section entitled &#147;Our Business&#148; in this MD&#038;A.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">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.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Adverse changes in general economic conditions</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">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 in 2008 and 2009, 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;.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Our reliance on a small number of significant customers</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">We rely on a small number of customers for a significant portion of our total sales. In fiscal
2010 our largest and second largest customers accounted for 21.0% and 14.3% (2009 &#151; 18.6% and
15.5%) of total sales respectively, and our top ten customers accounted for 66.4% (2009 &#151; 67.8%)
of total sales. We expect that these customers will continue to represent a significant portion of
our sales in the future.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Future sales volumes and profitability could be adversely affected should one or more of the
following events occur:
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>a significant customer substantially reduces its purchases or ceases to buy from us, or
Gildan elects to reduce its volume of business with or cease to sell to a significant
customer, and we cannot replace that business with sales to other customers on similar
terms;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>a large customer exercises its purchasing power to negotiate lower prices or to require
Gildan to incur additional service and other costs;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>further industry consolidation leads to greater customer concentration; and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>a large customer encounters financial difficulties and is unable to meet its financial
obligations.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Our customers do not commit to purchase minimum quantities</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Our contracts with our customers do not require them to purchase a minimum quantity of our
products or commit to minimum shelf space allocation for 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.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Our ability to anticipate evolving consumer preferences and trends</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">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
</DIV>


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<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
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<TR valign="bottom">
    <TD width="47%"></TD>
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    <TD width="47%"></TD>
</TR>
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<TR valign="bottom"><!-- Blank Space -->
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top"><IMG src="n66662n6666203.gif" alt="(GILDAN LOGO)">
</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">MANAGEMENT&#146;S DISCUSSION AND ANALYSIS</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">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.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Our ability to manage production and inventory levels effectively in relation to changes in
customer demand</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">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. 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.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">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.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Fluctuations and volatility in the price of raw materials used to manufacture our products</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">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 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. As discussed under the heading entitled
&#147;Commodity Risk&#148; in the &#147;Financial Risk Management&#148; section of this MD&#038;A, 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 Company may enter into contracts up to eighteen months in advance
of future delivery dates to establish fixed prices for cotton and cotton yarn purchases and reduce
the effect of price fluctuations in the cost of cotton used in the manufacture of its products. For
future delivery periods where such fixed price contracts have been entered into, the Company will
be protected against cotton price increases but would not be able to benefit from cotton price
decreases. Conversely, in the event that we have not entered into sufficient fixed priced contracts
for cotton or have not made other arrangements to lock in the price of cotton yarn in advance of
delivery, we will not be protected against cotton price increases, but will be in a position to
benefit from any cotton price decreases. A significant increase in raw material costs, particularly
cotton costs, could have a material adverse effect on our business, results of operations and
financial condition, if the increase or part of the increase is not mitigated through additional
manufacturing and distribution cost reductions and/or higher selling prices, or if resulting
selling price increases adversely impact demand for the Company&#146;s products. In addition, when the
Company fixes its cotton costs for future delivery periods and the cost of cotton subsequently
decreases significantly for that delivery period, the Company may need to reduce selling prices in
response to competitive pricing pressures which could adversely impact the Company&#146;s results of
operations.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Our dependence on key suppliers</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">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
</DIV>

<DIV align="right" style="font-size: 10pt; margin-top: 12pt">GILDAN 2010 REPORT TO SHAREHOLDERS P.38
</DIV>




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</TR>
<TR valign="bottom">
    <TD align="left" valign="top"><IMG src="n66662n6666203.gif" alt="(GILDAN LOGO)">
</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">MANAGEMENT&#146;S DISCUSSION AND ANALYSIS</TD>
</TR>
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</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">our joint venture and from a limited number of outside suppliers. Our business, financial condition
or results of operations could be adversely affected if any of our principal yarn suppliers has
difficulty sourcing cotton fibers, experience production disruptions, transportation disruptions or
encounter financial difficulties.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Climate, political, social and economic risks in the countries in which we operate</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">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. In
addition, most of our facilities are located in geographic regions that are exposed to the risk of,
and have experienced in the past, hurricanes, floods and earthquakes, and any such events in the
future could have a material adverse impact on our business.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">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:
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>fires, pandemics or natural disasters, such as hurricanes, floods and earthquakes;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>political instability, labour unrest, war or terrorism;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>disruptions in shipping and freight forwarding services;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>interruptions in the availability of basic services and infrastructure, including power
and water shortages.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Changes to international trade regulation</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">As a multinational corporation, we are affected by international trade legislation, bilateral
trade agreements and trade preference programs in the countries in which we operate and source
products. We have strategically positioned our manufacturing facilities to take advantage of a
number of trade liberalization measures providing us duty free access to many of our markets. The
Company relies on a number of trade agreements which provide duty free access to markets including
the Caribbean Basin Trade Partnership Act and the Dominican Republic &#151; Central America &#151; United
States Free Trade Agreement. Any changes to these agreements may negatively impact our competitive
position in the countries in which we operate.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Most trade agreements 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. The likelihood that a safeguard will be adopted and the extent of its impact on our
business cannot be determined with certainty.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">As trade liberalization continues, it is possible that new legislation or trade agreements may be
enacted in the future either in the countries in which we operate, the markets in which we
distribute our product or in countries in which our competition has operations. Any new
legislation, trade agreements or trade measures introduced may negatively impact our competitive
position in the countries in which we operate.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">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.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Factors or circumstances that could increase our effective income tax rate</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">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 in 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
</DIV>


<DIV align="right" style="font-size: 10pt; margin-top: 12pt">GILDAN 2010 REPORT TO SHAREHOLDERS P.39
</DIV>



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<TR valign="bottom"><!-- Blank Space -->
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top"><IMG src="n66662n6666203.gif" alt="(GILDAN LOGO)">
</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">MANAGEMENT&#146;S DISCUSSION AND ANALYSIS</TD>
</TR>
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">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.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">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.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Compliance with environmental, health and safety regulations</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">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.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">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 2010, the requirements with regard to environmental
protection did not have a significant financial or operational impact on the Company&#146;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
result in a disruption to our supply chain 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.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Our significant reliance on our information systems for our business operations</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">We place significant reliance on our information systems, including our JD Edwards
Enterprise Resource Planning (ERP)&nbsp;system. We are preparing to upgrade our ERP system to the
current release, Enterprise One, the first phase of which is expected to be implemented during
fiscal 2012. We depend on our information systems to purchase raw materials and supplies, schedule
and manage production, process transactions, summarize results, 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
and other impacts that could have a material adverse effect on our business.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Changes in our relationship with our employees or changes to domestic and foreign employment
regulations</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">We employ more than 28,000 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 vast
majority of our employees
</DIV>


<DIV align="right" style="font-size: 10pt; margin-top: 12pt">GILDAN 2010 REPORT TO SHAREHOLDERS P.40
</DIV>



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<DIV align="center">
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<TR valign="bottom"><!-- Blank Space -->
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    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top"><IMG src="n66662n6666203.gif" alt="(GILDAN LOGO)">
</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">MANAGEMENT&#146;S DISCUSSION AND ANALYSIS</TD>
</TR>
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</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">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. Our employees
are currently not party to any collective bargaining agreement, except for approximately 900
employees at our Dominican Republic textile facility which are party to a three year collective
bargaining agreement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Company has historically been able to operate in a productive manner in all of its
manufacturing facilities without experiencing significant labour disruptions, such as strikes or
work stoppages. If labour relations were to change or deteriorate at any of our major facilities,
this could adversely affect the productivity and cost structure of the Company&#146;s manufacturing
operations.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Negative publicity as a result of violation in labour laws or unethical labour and other
business practices</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">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)&nbsp;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.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Our dependence on key management and our ability to attract and/or retain key personnel</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">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.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Changes to and failure to comply with consumer product safety laws</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">We are subject to consumer product safety laws and regulations that could affect our business.
In the United States, we are subject to the Consumer Product Safety Act, as amended by the Consumer
Product Safety Improvement Act of 2008, to the Flammable Fabrics Act, and to the rules and
regulations promulgated pursuant to such statutes. Such laws provide for substantial penalties for
non-compliance. Although enforcement of certain requirements is currently stayed, these statutes
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. Most recently, the Consumer Product Safety Commission announced
implementation of third party testing and certification requirements for flammability of children&#146;s
apparel manufactured on or after November&nbsp;16, 2010.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">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. We are
also subject to similar laws and regulations in the other jurisdictions in which our products are
sold.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">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 substantial 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. Although 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, the extent of our liability, if any, for past
failure to comply with the requirements set forth in any
</DIV>


<DIV align="right" style="font-size: 10pt; margin-top: 12pt">GILDAN 2010 REPORT TO SHAREHOLDERS P.41
</DIV>



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<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="47%"></TD>
    <TD width="5%"></TD>
    <TD width="47%"></TD>
</TR>
<!-- End Table Head -->
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<TR valign="bottom"><!-- Blank Space -->
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top"><IMG src="n66662n6666203.gif" alt="(GILDAN LOGO)">
</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">MANAGEMENT&#146;S DISCUSSION AND ANALYSIS</TD>
</TR>
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</TABLE>
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">consumer product safety laws applicable to our operations, which are not known at this time, cannot
be reasonably determined.
</DIV>


<DIV align="left" style="font-size: 12pt; margin-top: 12pt"><B>DEFINITION AND RECONCILIATION OF NON-GAAP MEASURES</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">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&#038;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.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Adjusted Net Earnings and Adjusted Diluted EPS</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">To measure our performance from one period to the next, without the variations caused by the
impacts of restructuring and other charges net of income tax recovery, management uses adjusted net
earnings and adjusted diluted earnings per share, which are calculated as net earnings and diluted
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.
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="64%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left"><I>(in $ millions, except per share amounts)</I></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">2010</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">2009</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">2008</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Net sales</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,311.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,038.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,249.7</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Cost of sales</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">947.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">808.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">911.2</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Gross profit</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">364.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">230.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">338.5</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Selling, general and administrative expenses</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">154.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">134.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">142.8</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Restructuring and other charges</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5.5</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Operating income</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">200.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">89.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">190.2</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Financial expense (income), net</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(0.3</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9.2</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Non-controlling interest in consolidated joint venture</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.2</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Earnings before income taxes</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">196.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">89.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">180.8</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Income taxes</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(1.9</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(5.8</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">34.4</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Net earnings</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">198.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">95.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">146.4</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Adjustments for:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Restructuring and other charges</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5.5</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Income tax recovery on restructuring and other charges</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(3.3</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(1.8</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(0.6</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Adjusted net earnings</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">203.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">99.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">151.3</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Basic EPS</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.64</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.79</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.21</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Diluted EPS</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.63</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.79</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.20</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Adjusted diluted EPS</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.67</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.82</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.24</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Certain minor rounding variances exist between the financial statements and this summary.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>EBITDA</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">EBITDA is calculated as earnings before interest, taxes and depreciation and amortization and
excludes the impact of restructuring and other charges as well as the non-controlling interest in
the 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.
</DIV>

<DIV align="right" style="font-size: 10pt; margin-top: 12pt">GILDAN 2010 REPORT TO SHAREHOLDERS P.42
</DIV>



<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: Helvetica,Arial,sans-serif">

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="47%"></TD>
    <TD width="5%"></TD>
    <TD width="47%"></TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom"><!-- Blank Space -->
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top"><IMG src="n66662n6666203.gif" alt="(GILDAN LOGO)">
</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">MANAGEMENT&#146;S DISCUSSION AND ANALYSIS</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="64%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left"><I>(in $ millions)</I></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">2010</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">2009</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">2008</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Net earnings</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">198.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">95.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">146.4</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Restructuring and other charges</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5.5</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Depreciation and amortization</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">66.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">65.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">57.1</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Variation of depreciation included in inventories</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(2.4</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(1.0</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Interest, net</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7.2</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Income taxes</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(1.9</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(5.8</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">34.4</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Non-controlling interest of consolidated joint venture</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.2</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">EBITDA</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">278.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">160.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">249.8</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Certain minor rounding variances exist between the financial statements and this summary.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Free Cash Flow</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">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, and/or to redistribute to our shareholders. We
believe this measure is commonly used by investors and analysts when valuing a business and its
underlying assets.
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="64%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left"><I>(in $ millions)</I></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">2010</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">2009</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">2008</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Cash flows from operating activities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">301.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">169.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">238.9</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Cash flows used in investing activities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(141.2</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(34.2</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(227.3</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Adjustments for:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Business acquisition</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">15.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">126.8</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Restricted cash (reimbursed)&nbsp;paid related to a business
acquisition</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(0.3</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(4.0</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10.0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Free cash flow</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">175.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">132.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">148.4</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Certain minor rounding variances exist between the financial statements and this summary.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Total Indebtedness and Cash in Excess of Total Indebtedness/Net Indebtedness</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">We consider total indebtedness and cash in excess of total indebtedness / (net indebtedness)
to be important indicators of the financial leverage of the Company.
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="64%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left"><I>(in $ millions)</I></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">2010</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">2009</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">2008</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Current portion of long-term debt</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(2.8</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(3.6</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Long-term debt</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(1.6</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(49.4</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Total indebtedness</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(4.4</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(53.0</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Cash and cash equivalents</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">258.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">99.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12.4</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Cash in excess of total indebtedness (Net indebtedness)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">258.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">95.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(40.6</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Certain minor rounding variances exist between the financial statements and this summary.
</DIV>





<DIV align="right" style="font-size: 10pt; margin-top: 12pt">GILDAN 2010 REPORT TO SHAREHOLDERS P.43
</DIV>




<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: Helvetica,Arial,sans-serif">

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="47%"></TD>
    <TD width="5%"></TD>
    <TD width="47%"></TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom"><!-- Blank Space -->
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top"><IMG src="n66662n6666203.gif" alt="(GILDAN LOGO)">
</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">MANAGEMENT&#146;S DISCUSSION AND ANALYSIS</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>




<DIV align="left" style="font-size: 12pt; margin-top: 12pt"><B>FORWARD-LOOKING STATEMENTS</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Certain statements included in this MD&#038;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, including, without
limitation, our expectation with regards to unit volume growth, sales revenue, cost reductions and
efficiencies, gross margins, selling, general and administrative expenses, capital expenditures and
the impact of non-recurring items. 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;Risks and Uncertainties&#148; section and the risks described under
the section &#147;Financial Risk Management&#148; of this MD&#038;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.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">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:
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>our ability to implement our growth strategies and plans, including achieving market
share gains, implementing cost reduction initiatives and completing and successfully
integrating acquisitions;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the intensity of competitive activity and our ability to compete effectively;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>adverse changes in general economic and financial conditions globally or in one or more
of the markets we serve;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>our reliance on a small number of significant customers;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the fact that our customers do not commit contractually to minimum quantity purchases;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>our ability to anticipate changes in consumer preferences and trends;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>our ability to manage production and inventory levels effectively in relation to changes
in customer demand;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>fluctuations and volatility in the price of raw materials used to manufacture our
products, such as cotton and polyester fibres;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>our dependence on key suppliers and our ability to maintain an uninterrupted supply of
raw materials;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the impact of climate, political, social and economic risks in the countries in which we
operate;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>disruption to manufacturing and distribution activities due to labour disruptions,
political instability, bad weather, natural disasters, pandemics and other unforeseen
adverse events;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>changes to international trade legislation that the Company is currently relying on in
conducting its manufacturing operations or the application of safeguards thereunder;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>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;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>compliance with applicable environmental, tax, trade, employment, health and safety, and
other laws and regulations in the jurisdictions in which we operate;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>our significant reliance on computerized information systems for our business
operations;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>changes in our relationship with our employees or changes to domestic and foreign
employment laws and regulations;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>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;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>our dependence on key management and our ability to attract and retain key personnel;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>changes to and failure to comply with consumer product safety laws and regulations;</TD>
</TR>

</TABLE>
</DIV>

<DIV align="right" style="font-size: 10pt; margin-top: 12pt">GILDAN 2010 REPORT TO SHAREHOLDERS P.44
</DIV>



<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: Helvetica,Arial,sans-serif">

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="47%"></TD>
    <TD width="5%"></TD>
    <TD width="47%"></TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom"><!-- Blank Space -->
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top"><IMG src="n66662n6666203.gif" alt="(GILDAN LOGO)">
</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">MANAGEMENT&#146;S DISCUSSION AND ANALYSIS</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">


<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>changes in accounting policies and estimates; and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>exposure to risks arising from financial instruments, including credit risk, liquidity
risk, foreign currency risk and interest rate risk, as well as risks arising from commodity
prices.</TD>
</TR>

</TABLE>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">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.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">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 2011 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.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">December&nbsp;6, 2010
</DIV>


<DIV align="right" style="font-size: 10pt; margin-top: 12pt">GILDAN 2010 REPORT TO SHAREHOLDERS P.45
</DIV>



<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>



</BODY>
</HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.2
<SEQUENCE>3
<FILENAME>n66662exv99w2.htm
<DESCRIPTION>EX-99.2
<TEXT>
<HTML>
<HEAD>
<TITLE>exv99w2</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
<!-- PAGEBREAK -->
<DIV style="font-family: Helvetica,Arial,sans-serif">


<DIV align="right" style="font-size: 10pt; margin-top: 12pt"><B>Exhibit&nbsp;99.2</B>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="47%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="47%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD align="left" valign="top"><IMG src="n66662n6666203.gif" alt="(GILDAN LOGO)">
</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">CONSOLIDATED FINANCIAL STATEMENTS</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>MANAGEMENT&#146;S RESPONSIBILITY FOR FINANCIAL REPORTING</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">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 35 of the 2010 Annual Management&#146;s Discussion and Analysis.
Management is also responsible for the preparation and presentation of other financial information
included in the 2010 Annual Report and its consistency with the Consolidated Financial Statements.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">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.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">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&nbsp;3, 2010. KPMG LLP has direct
access to the Audit and Finance Committee of the Board of Directors.
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="25%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="13%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="45%">&nbsp;</TD>
</TR>
<TR></TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">(Signed: Glenn J. Chamandy)
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">(Signed: Laurence G. Sellyn)</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Glenn J. Chamandy
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Laurence G. Sellyn</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">President and Chief Executive Officer
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Executive Vice-President,</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Chief Financial and Administrative Officer</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">December&nbsp;6, 2010
</DIV>


<DIV align="right" style="font-size: 10pt; margin-top: 12pt">GILDAN 2010 REPORT TO SHAREHOLDERS P.46
</DIV>



<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: Helvetica,Arial,sans-serif">


<DIV align="right" style="font-size: 10pt; margin-top: 12pt">CONSOLIDATED FINANCIAL STATEMENTS
</DIV>


<DIV align="left" style="font-size: 12pt; margin-top: 12pt"><B>REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">To the Shareholders and Board of Directors of Gildan Activewear Inc.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">We have audited the accompanying consolidated balance sheets of Gildan Activewear Inc. (the
&#147;Company&#148;) and subsidiaries as at October&nbsp;3, 2010 and October&nbsp;4, 2009 and the related consolidated
statements of earnings and comprehensive income, shareholders&#146; equity and cash flows for the years
ended October&nbsp;3, 2010, October&nbsp;4, 2009 and October&nbsp;5, 2008. These consolidated financial statements
are the responsibility of the Company&#146;s management. Our responsibility is to express an opinion on
these consolidated financial statements based on our audits.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">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.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">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&nbsp;3, 2010 and
October&nbsp;4, 2009, and the results of their operations and their cash flows for the years ended
October&nbsp;3, 2010, October&nbsp;4, 2009 and October&nbsp;5, 2008, in conformity with Canadian generally
accepted accounting principles.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">We have also audited, in accordance with the standards of the Public Company Accounting Oversight
Board (United States), the Company&#146;s internal control over financial reporting as at October&nbsp;3,
2010, based on criteria established in <I>Internal Control &#151; Integrated Framework issued by the
Committee of Sponsoring Organizations of the Treadway Commission </I>(<I>COSO</I>), and our report dated
December&nbsp;6, 2010 expressed an unqualified opinion on the effectiveness of the Company&#146;s internal
control over financial reporting.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><IMG src="n66662n6666207.gif" alt="-s- KPMG LLP">
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Chartered Accountants<BR>
Montr&#233;al, Canada<BR>
December&nbsp;6, 2010

</DIV>

<DIV align="left" style="margin-top: 12pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; background: transparent; color: #000000">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD></TD>
</TR>
<TR valign="top">
    <TD nowrap align="left">*&nbsp;&nbsp;&nbsp;CA Auditor permit no 20408</TD>
    <TD>&nbsp;</TD>
    <TD>KPMG LLP is a Canadian limited liability partnership and a member firm of the KPMG network of
independent member firms affiliated with KPMG International Cooperative (&#147;KPMG International&#148;), a Swiss entity.
KPMG Canada provides services to KPMG LLP.</TD>
</TR>
</TABLE>
</DIV>

<DIV align="right" style="font-size: 10pt; margin-top: 12pt">GILDAN 2010 REPORT TO SHAREHOLDERS P.47
</DIV>



<P align="center" style="font-size: 10pt"><!-- Folio --><!-- /Folio -->
</DIV>



<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: Helvetica,Arial,sans-serif">




<DIV align="right" style="font-size: 10pt; margin-top: 12pt">CONSOLIDATED FINANCIAL STATEMENTS
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">To the Shareholders and Board of Directors of Gildan Activewear Inc.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">We have audited Gildan Activewear Inc.&#146;s (the &#147;Company&#148;) internal control over financial reporting
as at October&nbsp;3, 2010, based on the criteria established in <I>Internal Control &#151; Integrated Framework
issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). </I>The
Company&#146;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&#146;s internal control over financial reporting based on our audit.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">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.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">A company&#146;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&#146;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)&nbsp;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)&nbsp;provide reasonable assurance regarding prevention or timely detection of unauthorized
acquisition, use, or disposition of the Company&#146;s assets that could have a material effect on the
financial statements.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">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.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">In our opinion, the Company maintained, in all material respects, effective internal control over
financial reporting as at October&nbsp;3, 2010, based on criteria established in <I>Internal Control &#151;
Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission
(COSO).</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">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&nbsp;6, 2010 expressed an unqualified
opinion on those consolidated financial statements.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><IMG src="n66662n6666207.gif" alt="(KPMG LLP)">
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Chartered Accountants<br>Montr&#233;al, Canada<BR>
December&nbsp;6, 2010

</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="25%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="70%">&nbsp;</TD>
</TR>
<TR></TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">* CA Auditor permit no 20408
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">KPMG LLP is a Canadian limited liability partnership and a member firm of the KPMG network of
independent member firms affiliated with KPMG International Cooperative (&#147;KPMG International&#148;), a Swiss entity.
KPMG Canada provides services to KPMG LLP.</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="right" style="font-size: 10pt; margin-top: 12pt">GILDAN 2010 REPORT TO SHAREHOLDERS P.48
</DIV>



<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: Helvetica,Arial,sans-serif">


<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="47%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="47%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD align="left" valign="top"><IMG src="n66662n6666203.gif" alt="(GILDAN LOGO)">
</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">CONSOLIDATED FINANCIAL STATEMENTS</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>GILDAN ACTIVEWEAR INC.<BR>
CONSOLIDATED BALANCE SHEETS<BR>
As at October&nbsp;3, 2010 and October&nbsp;4, 2009<BR>
(in thousands of U.S. dollars)</B>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="76%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">2010</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">2009</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="7" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Current assets:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Cash and cash equivalents</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">258,442</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">99,732</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Trade accounts receivable</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">145,684</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">159,645</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Inventories (note 3)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">332,542</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">301,867</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Prepaid expenses and deposits</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9,584</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11,604</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Other current assets</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9,079</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7,117</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="7" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">755,331</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">579,965</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Property, plant and equipment (note 4)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">479,292</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">402,203</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Assets held for sale (note 15)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,246</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,544</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Intangible assets (note 5)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">61,321</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">69,092</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Goodwill (note 2)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10,197</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,709</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Other assets (note 6)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11,805</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9,985</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="7" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Total assets</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1,321,192</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1,074,498</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="7" align="left" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Current liabilities:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Accounts payable and accrued liabilities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">186,205</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">124,378</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Income taxes payable</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,024</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11,822</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Current portion of long-term debt (note 8)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,803</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="7" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">191,229</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">139,003</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="top"><TD>&nbsp;</TD></TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Long-term debt (note 8)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,584</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Future income taxes (note 14)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,476</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">15,854</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Non-controlling interest in consolidated joint venture</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11,058</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7,272</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Commitments and contingencies (note 12)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Shareholders&#146; equity (note 9):</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Share capital</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">97,036</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">93,042</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Contributed surplus</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10,091</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,976</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Retained earnings</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">982,764</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">784,519</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Accumulated other comprehensive income</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">24,538</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">26,248</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="7" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,007,302</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">810,767</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="7" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,114,429</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">910,785</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="7" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Total liabilities and shareholders&#146; equity</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1,321,192</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1,074,498</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="7" align="left" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">See accompanying notes to consolidated financial statements.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">On behalf of the Board of Directors:
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="45%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="50%">&nbsp;</TD>
</TR>
<TR></TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">(Signed: Glenn J. Chamandy)
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">(Signed: William D. Anderson)</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Director
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Director</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>Glenn J. Chamandy</B>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>William D. Anderson</B></TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="right" style="font-size: 10pt; margin-top: 12pt">GILDAN 2010 REPORT TO SHAREHOLDERS P.49
</DIV>




<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: Helvetica,Arial,sans-serif">

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="47%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="47%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD align="left" valign="top"><IMG src="n66662n6666203.gif" alt="(GILDAN LOGO)">
</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">CONSOLIDATED FINANCIAL STATEMENTS</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>GILDAN ACTIVEWEAR INC.<BR>
CONSOLIDATED STATEMENTS OF EARNINGS AND COMPREHENSIVE INCOME<BR>
Years ended October&nbsp;3, 2010, October&nbsp;4, 2009 and October&nbsp;5, 2008<BR>
(in thousands of U.S. dollars, except per share data)</B>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="64%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">2010</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">2009</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">2008</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="11" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Net sales</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1,311,463</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1,038,319</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1,249,711</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Cost of sales (note 18(e))</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">947,206</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">807,986</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">911,242</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="11" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Gross profit</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">364,257</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">230,333</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">338,469</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Selling, general and administrative expenses</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">154,674</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">134,785</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">142,760</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Restructuring and other charges (note 15)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8,705</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,199</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,489</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="11" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Operating income</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">200,878</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">89,349</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">190,220</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Financial expense (income), net (note 20(b))</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">751</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(304</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9,240</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Non-controlling interest in consolidated joint venture</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,786</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">110</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">230</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="11" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Earnings before income taxes</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">196,341</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">89,543</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">180,750</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Income taxes (note 14)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(1,904</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(5,786</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">34,400</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="11" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Net earnings</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">198,245</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">95,329</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">146,350</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Other comprehensive loss, net of related
income taxes (note 16)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(1,710</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="11" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Comprehensive income</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">196,535</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">95,329</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">146,350</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="11" align="left" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Earnings per share:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Basic EPS (note 17)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1.64</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">0.79</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1.21</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Diluted EPS (note 17)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1.63</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">0.79</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1.20</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">See accompanying notes to consolidated financial statements.
</DIV>


<DIV align="right" style="font-size: 10pt; margin-top: 12pt">GILDAN 2010 REPORT TO SHAREHOLDERS P.50
</DIV>



<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>



<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>
<DIV style="font-family: Helvetica,Arial,sans-serif">

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="47%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="47%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD align="left" valign="top"><IMG src="n66662n6666203.gif" alt="(GILDAN LOGO)">
</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">CONSOLIDATED FINANCIAL STATEMENTS</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>GILDAN ACTIVEWEAR INC.<BR>
CONSOLIDATED STATEMENTS OF SHAREHOLDERS&#146; EQUITY<BR>
Years ended October&nbsp;3, 2010, October&nbsp;4, 2009 and October&nbsp;5, 2008<BR>
(in thousands or thousands of U.S. dollars)</B>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="28%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">Accumulated</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">other</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">Total</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 1px solid #000000">Share capital</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">Contributed</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">comprehensive</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">Retained</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">shareholders&#146;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">Number</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">Amount</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">surplus</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">income</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">earnings</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">equity</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="23" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Balance, September&nbsp;30, 2007</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">120,419</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">88,061</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">3,953</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">26,248</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">542,840</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">661,102</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Stock-based compensation related to
stock
options and Treasury restricted share
units</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,965</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,965</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Shares issued under employee share
purchase plan</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">21</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">720</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">720</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Shares issued pursuant to exercise of
stock
options</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">81</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">418</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">418</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Shares issued pursuant to vesting of
Treasury restricted share units</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">15</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">190</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(190</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Share repurchases</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(12</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(12</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Net earnings</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">146,350</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">146,350</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="23" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Balance, October&nbsp;5, 2008</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">120,536</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">89,377</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">6,728</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">26,248</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">689,190</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">811,543</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Stock-based compensation related to
stock
options and Treasury restricted share
units</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,007</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,007</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Shares issued under employee share
purchase plan</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">58</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">781</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">781</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Shares issued pursuant to exercise of
stock
options</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">54</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">125</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">125</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Shares issued pursuant to vesting of
Treasury restricted share units</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">315</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,759</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(2,759</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Net earnings</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">95,329</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">95,329</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="23" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Balance, October&nbsp;4, 2009</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">120,963</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">93,042</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">6,976</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">26,248</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">784,519</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">910,785</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Stock-based compensation related to
stock
options and Treasury restricted share
units</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,081</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,081</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Recovery related to repricing of stock
options previously exercised
(note 10(b))</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,159</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,159</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Shares issued under employee share
purchase plan</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">24</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">628</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">628</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Shares issued pursuant to exercise of
stock
options</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">183</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,251</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(10</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,241</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Shares issued pursuant to vesting of
Treasury restricted share units</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">182</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,115</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(2,115</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Other comprehensive loss (note 16)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(1,710</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(1,710</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Net earnings</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">198,245</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">198,245</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="23" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Balance, October&nbsp;3, 2010</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">121,352</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">97,036</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">10,091</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">24,538</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">982,764</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1,114,429</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="23" align="left" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">See accompanying notes to consolidated financial statements.
</DIV>


<DIV align="right" style="font-size: 10pt; margin-top: 12pt">GILDAN 2010 REPORT TO SHAREHOLDERS P.51
</DIV>





<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: Helvetica,Arial,sans-serif">

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="47%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="47%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD align="left" valign="top"><IMG src="n66662n6666203.gif" alt="(GILDAN LOGO)">
</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">CONSOLIDATED FINANCIAL STATEMENTS</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>GILDAN ACTIVEWEAR INC.<BR>
CONSOLIDATED STATEMENTS OF CASH FLOWS<BR>
Years ended October&nbsp;3, 2010, October&nbsp;4, 2009 and October&nbsp;5, 2008<BR>
(in thousands of U.S. dollars)</B>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="64%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">2010</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">2009</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">2008</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="11" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Cash flows from (used in) operating activities:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Net earnings</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">198,245</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">95,329</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">146,350</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Adjustments for:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Depreciation and amortization (note 18(b))</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">66,472</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">65,407</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">57,135</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Variation of depreciation included in inventories (note 18(b))</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,725</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(2,437</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(957</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Restructuring charges related to assets held for sale and property, plant
and equipment (note 15)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,351</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">976</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,174</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Loss on disposal of property, plant and equipment</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">842</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">561</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,369</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Stock-based compensation costs</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,081</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,007</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,965</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Future income taxes (note 14)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(11,427</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(2,434</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(15,885</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Non-controlling interest</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,786</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">110</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">230</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Unrealized net loss (gain)&nbsp;on foreign exchange and financial derivatives
not designated as cash flow hedges</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">846</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(1,012</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(2,222</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Realized gain on financial derivatives included in other comprehensive
income, net of amounts reclassified to net earnings</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">684</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="11" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">270,605</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">159,507</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">191,159</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Changes in non-cash working capital balances:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Trade accounts receivable</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">16,018</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">45,608</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8,622</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Inventories</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(32,280</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">16,742</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(31,178</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Prepaid expenses and deposits</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,020</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(1,191</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(881</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Other current assets</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(168</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,743</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,641</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Accounts payable and accrued liabilities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">52,127</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(22,731</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">25,700</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Income taxes payable</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(6,771</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(31,499</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">43,802</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="11" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">301,551</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">169,179</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">238,865</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Cash flows from (used in) financing activities:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Decrease in amounts drawn under revolving long-term credit facility</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(45,000</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(4,000</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Decrease in bank indebtedness</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(2,739</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Increase in other long-term debt</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">43</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">44</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,805</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Repayment of other long-term debt</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(4,430</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(3,661</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(5,461</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Proceeds from the issuance of shares</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,869</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">906</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,138</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Repurchase of shares</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(12</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Recovery related to repricing of stock options previously exercised (note
10(b))</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,159</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="11" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(1,359</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(47,711</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(8,269</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Cash flows from (used in) investing activities:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Purchase of property, plant and equipment</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(126,855</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(43,877</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(85,440</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Purchase of intangible assets</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(1,026</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(1,061</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(11,590</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Business acquisition (note 2)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(15,850</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(1,196</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(126,819</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Restricted cash related to a business acquisition (note 2)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">254</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,958</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(10,000</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Proceeds on disposal of assets held for sale</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,708</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,349</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,736</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Net (increase)&nbsp;decrease in other assets</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(2,477</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,629</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,826</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="11" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(141,246</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(34,198</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(227,287</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Effect of exchange rate changes on cash and cash equivalents denominated in
foreign currencies</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(236</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">105</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(202</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="11" nowrap align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Net increase in cash and cash equivalents during the year</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">158,710</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">87,375</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,107</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Cash and cash equivalents, beginning of year</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">99,732</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12,357</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9,250</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="11" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Cash and cash equivalents, end of year</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">258,442</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">99,732</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">12,357</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="11" align="left" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Supplemental disclosure of cash flow information (note 18(a))
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">See accompanying notes to consolidated financial statements.
</DIV>


<DIV align="right" style="font-size: 10pt; margin-top: 12pt">GILDAN 2010 REPORT TO SHAREHOLDERS P.52
</DIV>



<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>



<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>
<DIV style="font-family: Helvetica,Arial,sans-serif">


<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="47%"></TD>
    <TD width="5%"></TD>
    <TD width="47%"></TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom"><!-- Blank Space -->
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top"><IMG src="n66662n6666203.gif" alt="(GILDAN LOGO)">
</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Years ended October&nbsp;3, 2010, October&nbsp;4, 2009 and October&nbsp;5, 2008</B>

</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 0pt"><B>(Tabular amounts in thousands or thousands of U.S. dollars except per share data, unless otherwise
indicated)</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Gildan Activewear Inc. (the &#147;Company&#148;) is incorporated under the <I>Canada Business Corporations
Act</I>. 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&nbsp;28. All
references to 2010, 2009 and 2008 represent the fiscal years ended October&nbsp;3, 2010, October&nbsp;4, 2009
and October&nbsp;5, 2008, respectively.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>1. SIGNIFICANT ACCOUNTING POLICIES:</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">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:
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left"><B>(a)</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Basis of presentation:</B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>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.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left"><B>(b)</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Future accounting standards:</B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B><I>Business combinations:</I></B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>In January&nbsp;2009, the Accounting Standards Board (&#147;AcSB&#148;) issued CICA Handbook Section&nbsp;1582,
<I>Business Combinations</I>, which replaces Section&nbsp;1581, <I>Business Combinations</I>, and is generally
equivalent to IFRS 3, <I>Business Combinations </I>(January&nbsp;2008). The new Section expands the definition
of a business subject to an acquisition and establishes significant new guidance on the measurement
of consideration transferred, and the recognition and measurement of assets acquired and
liabilities assumed in a business combination. The new Section requires that all business
combinations 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&nbsp;percent of the equity
interest in the acquiree is owned 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 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&nbsp;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 expects to early adopt Section&nbsp;1582 in fiscal 2011.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="right" style="font-size: 10pt; margin-top: 12pt">GILDAN 2010 REPORT TO SHAREHOLDERS P.53
</DIV>



<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: Helvetica,Arial,sans-serif">




<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="47%"></TD>
    <TD width="5%"></TD>
    <TD width="47%"></TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom"><!-- Blank Space -->
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top"><IMG src="n66662n6666203.gif" alt="(GILDAN LOGO)">
</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>1. SIGNIFICANT ACCOUNTING POLICIES (continued):</B>
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left"><B>(b)</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Future accounting standards (continued):</B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B><I>Consolidated financial statements and non-controlling interests:</I></B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>In January&nbsp;2009, the AcSB issued Canadian Institute of Chartered Accountants (&#147;CICA&#148;) Handbook
Section&nbsp;1601, <I>Consolidated Financial Statements</I>, and Handbook Section&nbsp;1602, <I>Non-Controlling
Interests</I>, which together replace Section&nbsp;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&nbsp;2008) under IFRS. Section&nbsp;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&#146;s proportionate share of the acquiree&#146;s identifiable net assets.
The new Sections also require non-controlling interest to be presented as a separate component of
shareholders&#146; equity. Under Section&nbsp;1602, non-controlling interest in income is not deducted in
arriving at consolidated net income or other comprehensive income. Instead, 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&nbsp;1, 2011,
and should be adopted concurrently with Section&nbsp;1582. Earlier adoption is permitted which would be
effective as of the beginning of the fiscal year of adoption. The Company expects to early adopt
these Sections in fiscal 2011, 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.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B><I>International Financial Reporting Standards (&#147;IFRS&#148;):</I></B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>In February&nbsp;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&nbsp;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.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>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 second phase of the transition plan, which
involved a detailed impact analysis of the identified differences, is substantially complete, and
the final implementation phase is currently underway. As the IFRS transition plan progresses, the
Company will continue to report on the status of its transition plan in its Management&#146;s Discussion and Analysis.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left"><B>(c)</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Cash and cash equivalents:</B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Company considers all liquid investments with maturities of three months or less when
acquired to be cash equivalents.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left"><B>(d)</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Trade accounts receivable:</B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>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.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left"><B>(e)</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Inventories:</B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>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 overheads 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.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="right" style="font-size: 10pt; margin-top: 12pt">GILDAN 2010 REPORT TO SHAREHOLDERS P.54
</DIV>



<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>
<DIV style="font-family: Helvetica,Arial,sans-serif">

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="47%"></TD>
    <TD width="5%"></TD>
    <TD width="47%"></TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom"><!-- Blank Space -->
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top"><IMG src="n66662n6666203.gif" alt="(GILDAN LOGO)">
</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>1. SIGNIFICANT ACCOUNTING POLICIES (continued):</B></DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>(f)</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Property, plant and equipment:</B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>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:</TD>
</TR>
</TABLE>
</DIV>

<DIV align="right">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="96%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="83%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="10%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD nowrap align="left">Asset</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="3">Rate</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="5" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Buildings and improvements</DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="right">2 1/2% to 20%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Manufacturing Equipment</DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="right">10% to 33%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Other Equipment</DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="right">10% to 50%</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>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.</TD>
</TR>
</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>(g)</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Assets held for sale:</B></TD>
</TR>
</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>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.</TD>
</TR>
</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>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.</TD>
</TR>
</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>(h)</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Intangible assets:</B></TD>
</TR>
</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Intangible assets consist of computer software recorded at cost and acquired customer contracts
and customer relationships. Depreciation and amortization are recorded on a straight-line basis
over the estimated useful lives of the assets at the following annual rates:</TD>
</TR>
</TABLE>
</DIV>

<DIV align="right">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="96%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="88%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD nowrap align="left">Asset</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="3">Rate</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="5" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Customer contracts and customer relationships</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">5</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Computer software</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">25</TD>
    <TD nowrap>%</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The costs of information technology projects including internally developed computer software
are capitalized and included in intangible assets commencing at the point at which the following
criteria are met: the technical feasibility of completing the projects have been achieved so
that the software will be available for use; the Company intends to complete the information
technology projects and is capable of using the software internally; the software will generate
probable future economic benefits; the Company has adequate technical, financial and other
resources to complete development of the projects; and the Company has the ability to reliably
measure the expenditures attributable to the information technology projects during development.
The Company does not capitalize pilot projects where it believes that future economic benefits
are less than probable or projects that do not meet the above criteria. 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.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>(i)</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Goodwill:</B></TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Goodwill recorded in connection with business combinations 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.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="right" style="font-size: 10pt; margin-top: 12pt">GILDAN 2010 REPORT TO SHAREHOLDERS P.55
</DIV>



<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: Helvetica,Arial,sans-serif">




<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="47%"></TD>
    <TD width="5%"></TD>
    <TD width="47%"></TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom"><!-- Blank Space -->
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top"><IMG src="n66662n6666203.gif" alt="(GILDAN LOGO)">
</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>1. SIGNIFICANT ACCOUNTING POLICIES (continued):</B>
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>(j)</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Impairment of long-lived assets:</B></TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>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.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>(k)</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Foreign currency translation:</B></TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>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.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>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.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>(l)</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Revenue recognition:</B></TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>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.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>(m)</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Cost of sales and gross profit:</B></TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>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, inventory write-downs, and customs and duties.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>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.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>(n)</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Selling, general and administrative expenses:</B></TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Selling, general and administrative (SG&#038;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 and amortization
expense, and other general and administrative expenses. SG&#038;A expenses also include amortization
of customer-related intangible assets and bad debt expense.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>(o)</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Advertising and product introduction expenditures:</B></TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>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 identifiable contractual rights which are
enforceable and recoverable. 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.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="right" style="font-size: 10pt; margin-top: 12pt">GILDAN 2010 REPORT TO SHAREHOLDERS P.56
</DIV>




<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: Helvetica,Arial,sans-serif">




<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="47%"></TD>
    <TD width="5%"></TD>
    <TD width="47%"></TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom"><!-- Blank Space -->
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top"><IMG src="n66662n6666203.gif" alt="(GILDAN LOGO)">
</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>1. SIGNIFICANT ACCOUNTING POLICIES (continued):</B>
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>(p)</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Cotton and yarn procurements:</B></TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>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 and are not considered to be
financial instruments. 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.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>(q)</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Financial instruments and hedging relationships:</B></TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>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. Financial assets
and liabilities measured at fair value use a fair value hierarchy to prioritize the inputs used
in measuring fair value. 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.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>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.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>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.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>(r)</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Comprehensive income:</B></TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>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.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="right" style="font-size: 10pt; margin-top: 12pt">GILDAN 2010 REPORT TO SHAREHOLDERS P.57
</DIV>



<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: Helvetica,Arial,sans-serif">


<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="47%"></TD>
    <TD width="5%"></TD>
    <TD width="47%"></TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom"><!-- Blank Space -->
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top"><IMG src="n66662n6666203.gif" alt="(GILDAN LOGO)">
</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>1. SIGNIFICANT ACCOUNTING POLICIES (continued):</B>
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>(s)</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Income taxes:</B></TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>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. Future income tax assets and
future income tax liabilities are offset if they relate to the same taxable entity and the same
taxation authority.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>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.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>(t)</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Stock-based compensation and other stock-based payments:</B></TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>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&#146;s vesting
period. The fair value of stock options granted is estimated on the date of grant using the
Black-Scholes pricing model, and the fair value of Treasury restricted share units granted is
equal to the market price of the common shares of the Company on the date of grant. For
non-Treasury restricted share units, the compensation cost is ultimately measured based on the
market price of the Company&#146;s shares at the vesting date, net of estimated forfeitures, and is
expensed over the award&#146;s 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&#146;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.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>For employee share purchase plans, the Company&#146;s contribution, on the employee&#146;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.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>(u)</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Employee future benefits:</B></TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Company offers group defined contribution plans to eligible employees whereby the Company
matches employees&#146; contributions up to a fixed percentage of the employee&#146;s salary.
Contributions by the Company to trustee-managed investment portfolios or employee associations
are expensed as incurred.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>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.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="right" style="font-size: 10pt; margin-top: 12pt">GILDAN 2010 REPORT TO SHAREHOLDERS P.58
</DIV>



<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: Helvetica,Arial,sans-serif">




<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="47%"></TD>
    <TD width="5%"></TD>
    <TD width="47%"></TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom"><!-- Blank Space -->
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top"><IMG src="n66662n6666203.gif" alt="(GILDAN LOGO)">
</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>1. SIGNIFICANT ACCOUNTING POLICIES (continued):</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>(v)&nbsp;&nbsp;&nbsp;&nbsp;Earnings per share:</B>
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>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. 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.</TD>
</TR>

</TABLE>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>(w)&nbsp;&nbsp;&nbsp;Environmental expenditures:</B>
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>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.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Company may be obliged to incur certain future removal and site restoration costs should it
decide to discontinue some of its activities. Where there is a legal obligation associated with
the retirement of property, plant and equipment, and the fair value of the obligation can be
reasonably estimated, 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 recognized asset
retirement obligations as at October&nbsp;3, 2010 and October&nbsp;4, 2009 as the Company plans to
continue its activities for an indeterminate period and the range of possible methods of
restoration are not conclusive at this time. As such, the information available to the Company
is insufficient to reasonably estimate the fair value of a conditional asset retirement
obligation.</TD>
</TR>

</TABLE>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>(x)&nbsp;&nbsp;&nbsp;&nbsp;Business acquisitions:</B>
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>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.</TD>
</TR>

</TABLE>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>(y)&nbsp;&nbsp;&nbsp;&nbsp;Use of estimates:</B>
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>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.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Significant areas requiring the use of management estimates and assumptions include the
allowance for doubtful accounts, sales promotional programs, inventory valuation, recoverability
of long-lived assets, income tax assets and liabilities, and business acquisitions and goodwill.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="right" style="font-size: 10pt; margin-top: 12pt">GILDAN 2010 REPORT TO SHAREHOLDERS P.59
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: Helvetica,Arial,sans-serif">




<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="47%"></TD>
    <TD width="5%"></TD>
    <TD width="47%"></TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom"><!-- Blank Space -->
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top"><IMG src="n66662n6666203.gif" alt="(GILDAN LOGO)">
</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>2. BUSINESS ACQUISITIONS:</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Shahriyar Fabric Industries Limited</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Effective March&nbsp;31, 2010, the Company acquired 100% of the common shares of Shahriyar Fabric
Industries Limited (&#147;Shahriyar&#148;), a vertically-integrated knitting, dyeing, finishing, cutting and
sewing facility for the manufacture of high-quality ring-spun T-shirts near Dhaka, Bangladesh, for
a total consideration of $15.9&nbsp;million. The purpose of the acquisition was to begin the development
over time of a vertically-integrated manufacturing hub in Asia, to position the Company to pursue
geographic markets in Asia and Europe.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Company accounted for this acquisition using the purchase method and the results of Shahriyar
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 value and taking into
account all relevant information available at that time.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The following table summarizes the estimated fair value of assets acquired and liabilities assumed
at the date of acquisition:
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="88%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR></TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Assets acquired:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Trade accounts receivable</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1,392</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Inventories</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,120</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Other current assets</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,383</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Property, plant and equipment</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12,181</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="5" align="left" style="border-top: 1px solid #000000">&nbsp;
</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">16,076</TD>
    <TD>&nbsp;</TD>
</TR>


<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Liabilities assumed:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Accounts payable and accrued liabilities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(3,714</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="5" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR><TD>&nbsp;</TD></TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Net identifiable assets acquired</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12,362</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Goodwill</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,488</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="5" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Purchase price</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">15,850</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="5" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR><TD>&nbsp;</TD></TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Consideration:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Payment to shareholders</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">3,250</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Repayment of debt on behalf of the selling shareholders at closing</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Transaction costs</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">600</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="5" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">15,850</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="5" align="left" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Company&#146;s repayment of the debt on behalf of the selling shareholders at closing was funded
through a new short term banking facility of $12&nbsp;million. This facility bears interest at 9.5% per
annum, and is secured by a restricted cash deposit. As at October&nbsp;3, 2010, the amount drawn under
the short-term banking facility amounted to $9.9&nbsp;million and the corresponding balance of the
restricted cash deposit amounted to $9.9&nbsp;million. The Company has offset the amounts owing under
the short term banking facility against the collateral deposit in the consolidated balance sheet
since the Company has the legal right of offset and intends to use the collateral deposit to repay
the bank facility in 2011.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Goodwill recorded in connection with this acquisition is not deductible for tax purposes.
</DIV>


<DIV align="right" style="font-size: 10pt; margin-top: 12pt">GILDAN 2010 REPORT TO SHAREHOLDERS P.60
</DIV>



<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: Helvetica,Arial,sans-serif">




<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="47%"></TD>
    <TD width="5%"></TD>
    <TD width="47%"></TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom"><!-- Blank Space -->
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top"><IMG src="n66662n6666203.gif" alt="(GILDAN LOGO)">
</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>2. BUSINESS ACQUISITIONS (continued):</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>V.I. Prewett &#038; Son, Inc.</B>

</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">On October&nbsp;15, 2007, the Company acquired 100% of the capital stock of V.I. Prewett &#038; 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.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The aggregate purchase price of $128.0&nbsp;million was comprised of cash consideration of $125.3
million, a deferred payment of $1.2&nbsp;million, which was disbursed in the fourth quarter of fiscal
2009, and transaction costs of $1.5&nbsp;million. The purchase agreement provides for an additional
purchase consideration of up to $10.0&nbsp;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 $5.8&nbsp;million as at
October&nbsp;3, 2010. The escrow deposit of $5.8&nbsp;million (October&nbsp;4, 2009 &#151; $6.0&nbsp;million) is included in
other assets on the consolidated balance sheet. The remaining contingent purchase price may be
subject to further reductions during fiscal 2011. Any further purchase price consideration paid by
the Company will be accounted for as additional goodwill.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">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.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The following table summarizes the estimated fair value of assets acquired and liabilities assumed
at the date of acquisition:
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="88%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR></TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Assets acquired:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Trade accounts receivable</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">28,228</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Inventories</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">44,074</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Prepaid expenses</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,573</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Property, plant and equipment</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">26,202</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Customer contracts and customer relationships</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">61,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Other assets</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">196</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="5" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">161,273</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Liabilities assumed:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Bank indebtedness</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(2,739</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Accounts payable and accrued liabilities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(12,800</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Future income taxes</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(24,428</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="5" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(39,967</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="5" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Net identifiable assets acquired</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">121,306</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Goodwill</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,709</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="5" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Purchase price</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">128,015</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="5" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR><TD>&nbsp;</TD></TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Consideration:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Cash</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">125,294</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Transaction costs</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,525</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Deferred payment disbursed in fiscal 2009</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,196</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="5" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">128,015</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="5" align="left" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">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.
</DIV>


<DIV align="right" style="font-size: 10pt; margin-top: 12pt">GILDAN 2010 REPORT TO SHAREHOLDERS P.61
</DIV>





<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: Helvetica,Arial,sans-serif">




<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="47%"></TD>
    <TD width="5%"></TD>
    <TD width="47%"></TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom"><!-- Blank Space -->
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top"><IMG src="n66662n6666203.gif" alt="(GILDAN LOGO)">
</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>3. INVENTORIES:</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Inventories were comprised of the following:
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="76%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">2010</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">2009</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR><TD>&nbsp;</TD></TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Raw materials and spare parts inventories</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">54,353</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">43,078</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Work in process</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">37,305</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">24,576</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Finished goods</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">240,884</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">234,213</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">332,542</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">301,867</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The amount of inventory recognized as an expense and included in cost of sales was $928.9&nbsp;million
(2009 &#151; $795.0&nbsp;million), which included an expense of $7.1&nbsp;million (2009 &#151; $8.1&nbsp;million) related to
the write-down of inventory to net realizable value.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>4. PROPERTY, PLANT AND EQUIPMENT:</B>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="64%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">Accumulated</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">Net book</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD nowrap align="left">2010</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">Cost</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">depreciation</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">value</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR><TD>&nbsp;</TD></TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Land</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">28,993</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">28,993</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Buildings and improvements</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">175,908</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">42,010</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">133,898</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Manufacturing equipment</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">413,287</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">176,686</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">236,601</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Other equipment</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">73,486</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">38,005</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">35,481</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Assets not in service</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">44,319</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">44,319</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">735,993</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">256,701</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">479,292</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="64%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">Accumulated</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">Net book</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD nowrap align="left">2009</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">Cost</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">depreciation</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">value</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR><TD>&nbsp;</TD></TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Land</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">17,152</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">17,152</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Buildings and improvements</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">146,823</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">34,798</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">112,025</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Manufacturing equipment</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">363,672</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">172,471</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">191,201</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Other equipment</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">71,517</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">14,875</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">56,642</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Assets not in service</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">25,183</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">25,183</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">624,347</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">222,144</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">402,203</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">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.
</DIV>


<DIV align="right" style="font-size: 10pt; margin-top: 12pt">GILDAN 2010 REPORT TO SHAREHOLDERS P.62
</DIV>






<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: Helvetica,Arial,sans-serif">




<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="47%"></TD>
    <TD width="5%"></TD>
    <TD width="47%"></TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom"><!-- Blank Space -->
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top"><IMG src="n66662n6666203.gif" alt="(GILDAN LOGO)">
</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>5. INTANGIBLE ASSETS:</B>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="64%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">Accumulated</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">Net book</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD nowrap align="left">2010</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">Cost</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">amortization</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">value</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR><TD>&nbsp;</TD></TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Customer contracts and customer relationships</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">63,526</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">9,966</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">53,560</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Computer software</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">26,453</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">18,692</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7,761</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">89,979</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">28,658</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">61,321</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="64%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">Accumulated</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">Net book</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD nowrap align="left">2009</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">Cost</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">amortization</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">value</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR><TD>&nbsp;</TD></TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Customer contracts and customer relationships</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">63,526</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">6,769</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">56,757</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Computer software</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">25,427</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">13,092</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12,335</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">88,953</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">19,861</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">69,092</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>6. OTHER ASSETS:</B>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="76%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">2010</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">2009</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR><TD>&nbsp;</TD></TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Restricted cash related to the acquisition of Prewett (note 2)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">5,788</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">6,042</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Long-term prepaid expenses and other</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,064</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,689</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Long-term non-trade receivable</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">953</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,254</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">11,805</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">9,985</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>7. REVOLVING LINE OF CREDIT:</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Company&#146;s joint venture, CanAm, has a revolving line of credit in the amount of $4.0&nbsp;million.
Borrowings are due on demand and bear interest at 30-day LIBOR plus 2.0% (2.29% at October&nbsp;3, 2010;
2.26% at October&nbsp;4, 2009). 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&nbsp;3, 2010 and
October&nbsp;4, 2009.
</DIV>


<DIV align="right" style="font-size: 10pt; margin-top: 12pt">GILDAN 2010 REPORT TO SHAREHOLDERS P.63
</DIV>



<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>



<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: Helvetica,Arial,sans-serif">

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="47%"></TD>
    <TD width="5%"></TD>
    <TD width="47%"></TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom"><!-- Blank Space -->
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top"><IMG src="n66662n6666203.gif" alt="(GILDAN LOGO)">
</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>8. LONG-TERM DEBT:</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">As at October&nbsp;3, 2010, the Company had no long-term debt outstanding. The balance of long-term
debt outstanding as at October&nbsp;4, 2009, which was repaid in its entirety during fiscal 2010, was as
follows:
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="88%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">2009</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="5" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Secured:</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Term loan, repayable in monthly instalments, bearing interest at 30-day LIBOR
plus 2.50% (2.76% at October&nbsp;4, 2009), secured by assets (a)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">3,162</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Municipal bonds, repayable in annual instalments, bearing interest at variable
rates (3.05% at October&nbsp;4, 2009), secured by building and equipment (b)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">714</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="5" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,876</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Current portion of secured debt</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,348</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="5" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1,528</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="5" align="left" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Unsecured:</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Term loans, bearing interest at rates up to 4% per annum</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">511</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Current portion of unsecured debt</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">455</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="5" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">56</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="5" align="left" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Total secured and unsecured long-term debt</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1,584</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="5" align="left" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>




<DIV style="margin-top: 3pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>
<TR valign="top">
    <TD nowrap align="left">(a)</TD>
    <TD>&nbsp;</TD>
    <TD>The term loan had been entered into by CanAm. The property, plant and equipment of CanAm
served as collateral for the long-term borrowings of CanAm. Other creditors of CanAm did not
have any recourse to the general credit of the Company.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(b)</TD>
    <TD>&nbsp;</TD>
    <TD>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 served as collateral for the long-term borrowings of
Kentucky Derby.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Company has a committed revolving term credit facility for a maximum of $400.0&nbsp;million, which
matures in June&nbsp;2013. The facility is unsecured. There were no amounts drawn under this facility
at October&nbsp;3, 2010 and October&nbsp;4, 2009. In addition, an amount of $12.7&nbsp;million (October&nbsp;4, 2009 -
$0.2&nbsp;million) has been committed against this facility to cover various letters of credit as
described in note 13.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Under various financing arrangements with its bankers and other long-term lenders, including the
revolving term credit facility, the Company is required to meet certain financial covenants. The
Company was in compliance with all of these financial covenants as at October&nbsp;3, 2010 and October
4, 2009.
</DIV>


<DIV align="right" style="font-size: 10pt; margin-top: 12pt">GILDAN 2010 REPORT TO SHAREHOLDERS P.64
</DIV>




<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: Helvetica,Arial,sans-serif">




<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="47%"></TD>
    <TD width="5%"></TD>
    <TD width="47%"></TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom"><!-- Blank Space -->
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top"><IMG src="n66662n6666203.gif" alt="(GILDAN LOGO)">
</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>9. SHAREHOLDERS&#146; EQUITY:</B>
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">(a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Board of Directors has approved a shareholder rights plan to replace the previous plan that expired on December 1, 2010, 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. It will be submitted for ratification by shareholders at the Company&#146;s
annual and special meeting of shareholders to be held on February&nbsp;9, 2011.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">(b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Accumulated other comprehensive income:</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>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&nbsp;million, which is reflected in the accumulated other
comprehensive income. In addition, accumulated other comprehensive income includes the changes in the fair value of the effective portion of qualifying cash flow hedging instruments outstanding at the end of the period.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">(c)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Share capital:</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Authorized:</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>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&nbsp;3, 2010 and October&nbsp;4, 2009 none of the first and second
preferred shares were issued. Common shares, authorized without limit as to number and without
par value.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Issued:</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>As at October&nbsp;3, 2010, there were 121,351,998 common shares (October&nbsp;4, 2009 &#151; 120,963,028)
issued and outstanding.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>10. STOCK-BASED COMPENSATION:</B>
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left"><B>(a)</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Employee share purchase plans:</B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>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&nbsp;1, 2008 must be held for a minimum of one year.
Employees purchasing shares under the plans subsequent to January&nbsp;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&nbsp;3, 2010, a total of 243,702 shares (2009 &#151; 219,353) were issued under
these plans. Included as compensation costs in selling, general and administrative expenses is
$0.1&nbsp;million (2009 &#151; $0.1&nbsp;million; 2008 &#151; $0.1&nbsp;million) relating to the employee share purchase
plans.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left"><B>(b)</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Stock options and restricted share units:</B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Company&#146;s Long Term Incentive Plan (the &#147;LTIP&#148;) includes stock options and restricted share
units. The LTIP allows the Board of Directors to grant stock options, dilutive restricted share
units (&#147;Treasury RSUs&#148;) and non-dilutive restricted share units (&#147;non-Treasury RSUs&#148;) to
officers and other key employees of the Company and its subsidiaries. On February&nbsp;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&nbsp;3, 2010, 2,760,661 common shares remained authorized for future
issuance under this plan.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>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 granted since fiscal 2007 vest equally beginning on the second, third, fourth and fifth
anniversary of the grant date, with the exception of a special one-time award of 409,711 options which cliff vest on the fifth anniversary of the grant date, and expire no more than seven or ten years after the date of the
grant. All options granted prior to fiscal 2007 have fully vested.</TD>
</TR>
</TABLE>
</DIV>

<DIV align="right" style="font-size: 10pt; margin-top: 12pt">GILDAN 2010 REPORT TO SHAREHOLDERS P.65</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>
<DIV style="font-family: Helvetica,Arial,sans-serif">

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="47%"></TD>
    <TD width="5%"></TD>
    <TD width="47%"></TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom"><!-- Blank Space -->
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top"><IMG src="n66662n6666203.gif" alt="(GILDAN LOGO)">
</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>10. STOCK-BASED COMPENSATION (continued):</B></DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left"><B>(b)</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Stock options and restricted share units (continued):</B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>As previously disclosed, an internal review of all stock option grants made by the Company since
its initial public offering in 1998 was conducted by a special committee of independent
directors of the Board. As a result of this review, the Company determined that certain stock
options granted to employees, officers and directors during fiscal years 1999 to 2003 had been
awarded at prices which were inconsistent with the terms of the Company&#146;s LTIP in effect at the
time, as well as with certain requirements of the Toronto Stock Exchange. The special committee
of the Board concluded that there had been no intention of wrongdoing on the part of any current
or former director or senior officer in the granting of stock options during the aforesaid
period. However, current directors and senior executive officers who inadvertently benefitted
from more favourable pricing of stock options have voluntarily reimbursed the Company for any
excess gains and have agreed to the repricing of unexercised options. In addition, the Company
has pursued all reasonable avenues for recoveries from other parties. The steps taken by the
Company resulted in: (i)&nbsp;the Company increasing the exercise price of 261,440 unexercised vested
stock options during the second quarter, resulting in a $0.2&nbsp;million increase in the aggregate
exercise value of the unexercised stock options, or representing an increase to the weighted
average exercise price for these stock options of $0.77 (from $6.18 to $6.95), and also
resulting in an increase of $0.10 to the weighted average exercise price of all options
outstanding as at April&nbsp;4, 2010 (from $18.76 to $18.86), and; (ii)&nbsp;the Company recovering $2.2
million in cash, including $1.1&nbsp;million from current senior officers during the second quarter
relating to stock options that were previously exercised, and $1.1&nbsp;million from other parties
during the first quarter. Amounts recovered in cash from current senior officers have been
recorded as a credit to contributed surplus. No adjustment is required to prior year financial
statements under either Canadian or U.S. GAAP.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Changes in outstanding stock options were as follows:</TD>
</TR>
</TABLE>
</DIV>

<DIV align="right">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="97%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="76%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">Weighted average</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2" style="border-bottom: 1px solid #000000">Number</TD>
    <TD nowrap align="right" colspan="2" style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="right" colspan="2" style="border-bottom: 1px solid #000000">exercise price</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="6">(in Canadian dollars)</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Options outstanding, October&nbsp;5, 2008</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">878</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">14.23</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Granted</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">233</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">23.48</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Exercised</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(54</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2.58</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Forfeited</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(47</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">30.75</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Options outstanding, October&nbsp;4, 2009</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,010</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">16.21</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Granted</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">498</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">21.77</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Exercised</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(183</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7.06</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Forfeited</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(26</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">26.87</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Options outstanding, October&nbsp;3, 2010</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,299</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">19.57</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 3%">The weighted average fair value of each option granted was estimated on the date of grant using
the Black-Scholes pricing model with the following weighted average assumptions:</DIV>

<DIV align="right">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="97%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="64%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">2010</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">2009</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">2008</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Risk-free interest rate</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">2.69</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">3.06</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">4.17</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Expected volatility</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">42.48</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">34.98</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">30.73</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Expected life</DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" nowrap align="center">7.1 years</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" nowrap align="center">5.25 years</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" nowrap align="center">4.68 years</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Expected dividend yield</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD>The grant date weighted average fair value of options granted in fiscal 2010 was $8.51 (2009 &#151;
$9.24; 2008 &#151; $13.02).</TD>
</TR>
</TABLE>
</DIV>

<DIV align="right" style="font-size: 10pt; margin-top: 12pt">GILDAN 2010 REPORT TO SHAREHOLDERS P.66</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>
<DIV style="font-family: Helvetica,Arial,sans-serif">

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="47%"></TD>
    <TD width="5%"></TD>
    <TD width="47%"></TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom"><!-- Blank Space -->
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top"><IMG src="n66662n6666203.gif" alt="(GILDAN LOGO)">
</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>10. STOCK-BASED COMPENSATION (continued):</B>
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left"><B>(b)</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Stock options and restricted share units (continued):</B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The following table summarizes information about stock options outstanding and exercisable at
October&nbsp;3, 2010:</TD>
</TR>
</TABLE>
</DIV>

<DIV align="right">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="97%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="40%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="10" style="border-bottom: 1px solid #000000">Options outstanding</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="6" style="border-bottom: 1px solid #000000">Options exercisable</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">Weighted</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD nowrap align="left">Range of exercise</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">Weighted average</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">average remaining</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">Weighted average</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #000000">prices</TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="right" colspan="2" style="border-bottom: 1px solid #000000">Number</TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="right" colspan="2" style="border-bottom: 1px solid #000000">exercise price</TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="right" colspan="2" style="border-bottom: 1px solid #000000">contractual life (yrs)</TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="right" colspan="2" style="border-bottom: 1px solid #000000">Number</TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD style="border-bottom: 1px solid #000000" nowrap align="right" colspan="2">exercise price</TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD nowrap align="left">(in Canadian dollars)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">(in Canadian dollars)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">(in Canadian dollars)</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">$5.00 - $5.72</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">51</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">5.33</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.09</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">51</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">5.33</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">$6.88 - $7.55</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">125</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6.89</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.37</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">125</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6.89</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">$8.64 - $8.72</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">214</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8.65</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.34</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">214</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8.65</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">$20.12 - $23.49</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">696</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">22.26</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7.49</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">$27.17 - $39.39</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">213</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">32.64</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3.44</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">136</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">31.46</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="21" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,299</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">19.57</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">526</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">13.79</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="21" align="left" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>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 at least 50% of
the Treasury RSUs are dependent upon the fiscal performance of the Company relative to a
benchmark group of Canadian publicly listed companies, or as determined by the Board of Directors.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Changes in outstanding Treasury RSUs were as follows:</TD>
</TR>
</TABLE>
</DIV>

<DIV align="right">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="97%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="76%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">Weighted</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">average fair</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">Number</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">value per unit</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Treasury RSUs outstanding, October&nbsp;5, 2008</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">978</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">17.43</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Granted</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">181</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11.11</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Settled through the issuance of common shares</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(315</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8.75</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Forfeited</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(86</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">26.75</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Treasury RSUs outstanding, October&nbsp;4, 2009</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">758</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">18.48</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Granted</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">202</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">18.57</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Settled through the issuance of common shares</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(182</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11.64</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Forfeited</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(30</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">24.17</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Treasury RSUs outstanding, October&nbsp;3, 2010</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">748</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">19.93</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>As at October&nbsp;3, 2010, none (2009 &#151; 20,000) of the outstanding Treasury RSUs were vested for
which shares were issued subsequent to year-end. The compensation expense included in selling,
general and administrative expenses and cost of sales, in respect of the options and Treasury
RSUs, was $4.1&nbsp;million (2009 &#151; $3.0&nbsp;million; 2008 &#151; $3.0&nbsp;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.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="right" style="font-size: 10pt; margin-top: 12pt">GILDAN 2010 REPORT TO SHAREHOLDERS P.67
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: Helvetica,Arial,sans-serif">



<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="47%"></TD>
    <TD width="5%"></TD>
    <TD width="47%"></TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom"><!-- Blank Space -->
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top"><IMG src="n66662n6666203.gif" alt="(GILDAN LOGO)">
</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>10. STOCK-BASED COMPENSATION (continued):</B>
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left"><B>(b)</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Stock options and restricted share units (continued):</B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Changes in outstanding non-Treasury RSUs were as follows:</TD>
</TR>
</TABLE>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="88%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">Number</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="5" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Non-Treasury RSUs outstanding, October&nbsp;5, 2008</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">99</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Granted</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">106</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Settled</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(3</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Forfeited</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(17</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="5" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Non-Treasury RSUs outstanding, October&nbsp;4, 2009</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">185</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Granted</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">214</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Settled</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(70</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Forfeited</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(16</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="5" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Non-Treasury RSUs outstanding, October&nbsp;3, 2010</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">313</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="5" align="left" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Non-Treasury RSUs have the same features as Treasury RSUs, except that their vesting period is a
maximum of three years and they are expected to be settled in cash at the end of the vesting
period. The settlement amount is based on the Company&#146;s stock price at the vesting date.
Beginning in fiscal 2010, 100% of Non-Treasury RSUs awarded to executive officers are dependent
upon the financial performance of the Company relative to a benchmark group of Canadian publicly
listed companies. In addition, up to two times the actual number of Non-Treasury RSUs awarded to
executive officers can vest if exceptional financial performance is achieved. As of October&nbsp;3,
2010, the weighted average fair value per non-Treasury RSU was $28.04. Non-Treasury RSUs that
are expected to be settled in cash are non-dilutive as no common shares are issued from
treasury. As at October&nbsp;3, 2010, 18,911 (2009 &#151; 47,170) of the outstanding non-Treasury RSUs were vested.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The compensation expense included in selling, general and administrative expenses and cost of
sales, in respect of the non-Treasury RSUs, was $2.9&nbsp;million (2009 &#151; $0.8&nbsp;million; 2008 &#151; $0.3
million). The total obligation under this plan as at October&nbsp;3, 2010, is $3.1&nbsp;million (October
4, 2009 &#151; $1.7&nbsp;million) and is recorded in accounts payable and accrued liabilities.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>11. DEFERRED SHARE UNIT PLAN:</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Company has a deferred share unit plan for independent members of the Company&#146;s Board of
Directors who must receive at least 50% of their annual board retainers in the form of deferred
share units (&#147;DSUs&#148;). 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&nbsp;3, 2010, there were 53,602 (2009 &#151; 36,086) DSUs outstanding at a value of
$1.5&nbsp;million (2009 &#151; $0.7&nbsp;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.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Changes in outstanding DSUs were as follows:
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="88%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">Number</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="5" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">DSUs outstanding, October&nbsp;5, 2008</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">19</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Granted</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">17</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="5" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">DSUs outstanding, October&nbsp;4, 2009</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">36</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Granted</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">18</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="5" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">DSUs outstanding, October&nbsp;3, 2010</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">54</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="5" align="left" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="right" style="font-size: 10pt; margin-top: 12pt">GILDAN 2010 REPORT TO SHAREHOLDERS P.68
</DIV>



<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>
<DIV style="font-family: Helvetica,Arial,sans-serif">

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="47%"></TD>
    <TD width="5%"></TD>
    <TD width="47%"></TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom"><!-- Blank Space -->
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top"><IMG src="n66662n6666203.gif" alt="(GILDAN LOGO)">
</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>12. COMMITMENTS AND CONTINGENCIES:</B></DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">(a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The minimum annual lease payments under operating leases for premises, equipment and aircraft
are approximately as follows:</TD>
</TR>
</TABLE>
</DIV>

<DIV align="right">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="97%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="88%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD nowrap align="left">Fiscal year</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="5" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">2011</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">9,190</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">2012</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,447</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">2013</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,889</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">2014</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,561</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">2015</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,028</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Thereafter</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">16,114</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="5" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">46,229</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="5" align="left" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">(b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>As at October&nbsp;3, 2010, there were contractual obligations outstanding of approximately $76.1
million for the acquisition of property, plant and equipment (2009 &#151; $60.0&nbsp;million).</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">(c)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>During fiscal 2010, the United States Department of Agriculture advanced $3.1&nbsp;million
(October&nbsp;4, 2009 &#151; $4.3&nbsp;million) to CanAm in connection with a subsidy program with the intent
of assisting domestic spinning and textile manufacturers. Amounts received under this program
are based on U.S. cotton consumption. The assistance provided is not repayable, provided that
eligible capital investments are incurred over a certain period of time for amounts equivalent
to the assistance received. All amounts received are recorded as deferred income and are
included in accounts payable and accrued liabilities until there is reasonable assurance that
eligible capital investments will be incurred. Once reasonable assurance is obtained, the
amounts recorded in deferred income are recognized and proportionately allocated as a
reduction of cost of goods sold and property, plant and equipment, using the intent of the
subsidy program as a basis for the allocation. During fiscal 2010, the Company recognized
$6.0&nbsp;million of the subsidies received to date as a reduction of cost of goods sold, partially offset by a charge of $3.0
million to non-controlling interest in the Company&#146;s consolidated statement of earnings to
reflect the 50% non-controlling interest of the amount recognized. In addition, the Company
recorded $0.7&nbsp;million as a reduction of capital expenditures, and $0.7&nbsp;million as a reduction
of inventories as at October&nbsp;3, 2010. As at October&nbsp;3, 2010, financial assistance received in
the amount of $3.1&nbsp;million, $3.9&nbsp;million, and $0.4&nbsp;million is to be disbursed by CanAm no
later than February&nbsp;2011, February&nbsp;2012 and February&nbsp;2013, respectively, to finance eligible
capital expenditures.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">(d)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Securities Class&nbsp;Actions:</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>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&nbsp;2, 2007 and April&nbsp;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&nbsp;29, 2008.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The U.S. lawsuits have been consolidated, and a consolidated amended complaint was filed alleging
claims under the U.S. securities laws. On July&nbsp;1, 2009, the District Court granted the motion by
the Company 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&nbsp;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&nbsp;31, 2009, the Company and the other defendants filed a response to
plaintiffs&#146; motion seeking reconsideration. On December&nbsp;4, 2009, the plaintiffs&#146; motion seeking
reconsideration was denied. The Plaintiff&#146;s have appealed the decisions on the motion for
reconsideration and the motion to dismiss, but no date has been set yet for the appeal.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="right" style="font-size: 10pt; margin-top: 12pt">GILDAN 2010 REPORT TO SHAREHOLDERS P.69
</DIV>



<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: Helvetica,Arial,sans-serif">

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="47%"></TD>
    <TD width="5%"></TD>
    <TD width="47%"></TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom"><!-- Blank Space -->
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top"><IMG src="n66662n6666203.gif" alt="(GILDAN LOGO)">
</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>12. COMMITMENTS AND CONTINGENCIES (continued):</B>
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">(d)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Securities Class&nbsp;Actions (continued):</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>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. In the Quebec action, a motion requesting permission to amend the
petition was filed on April&nbsp;6, 2010, to align the allegations in said petition with those pleaded
in the Ontario action. A case management judge has been appointed but no date has been set yet for
the case conference.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>On August&nbsp;3, 2010, the Company announced it had entered into an agreement to settle all claims
raised in these proposed class action lawsuits, subject to final approval from the courts. In
consideration of the dismissal of the proposed class actions currently pending before all three
courts and releases from the proposed class members of the claims against the Company and certain
of its senior executives, the settlement agreement provides for a total amount of $22.5&nbsp;million to
be paid into an escrow account for distribution to the proposed class members. The settlement is
conditional on the courts&#146; approval and subject to the Company&#146;s option to terminate the settlement
in the event valid opt-outs by the proposed class members exceed a pre-agreed confidential opt-out
threshold. Under this agreement, the Company would have no financial obligation as the settlement
would be entirely funded by the Company&#146;s insurers, and therefore no provision has been recorded in
the Consolidated Financial Statements.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>In the event the Company would elect to terminate the settlement agreement because valid opt-outs
by proposed class members exceed the pre-agreed opt-out threshold, or if the courts would not
provide final approval of the settlement, the parties would revert to their litigation positions
immediately prior to the execution of the settlement agreement. If such event would occur, the
Company would continue to strongly contest the basis upon which these actions are predicated and
would vigorously defend its position. Under this scenario, due to the inherent uncertainties of
litigation, it would not be possible to predict the final outcome of these lawsuits or determine
the amount of any potential losses, if any.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">(e)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>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.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>13. GUARANTEES:</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">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&nbsp;3, 2010, the
maximum potential liability under these guarantees was $21.8&nbsp;million (2009 &#151; $10.0&nbsp;million), of
which $5.1&nbsp;million (2009 &#151; $4.7&nbsp;million) was for surety bonds and $16.7&nbsp;million (2009 &#151; $5.3
million) was for corporate guarantees and standby letters of credit. The surety bonds are
automatically renewed on an annual basis, the corporate guarantees and standby letters of credit
mature at various dates in fiscal 2011.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">As at October&nbsp;3, 2010, 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.
</DIV>


<DIV align="right" style="font-size: 10pt; margin-top: 12pt">GILDAN 2010 REPORT TO SHAREHOLDERS P.70
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: Helvetica,Arial,sans-serif">



<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="47%"></TD>
    <TD width="5%"></TD>
    <TD width="47%"></TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom"><!-- Blank Space -->
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top"><IMG src="n66662n6666203.gif" alt="(GILDAN LOGO)">
</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>14. INCOME TAXES:</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">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:
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="64%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">2010</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">2009</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">2008</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Combined basic Canadian federal and provincial income taxes</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">59,533</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">27,884</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">56,114</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">(Decrease) increase in income taxes resulting from:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Effect of different tax rates on earnings of foreign subsidiaries</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(70,105</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(32,181</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(51,292</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Income tax charge (recovery)&nbsp;for prior taxation years</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,322</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(6,085</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">26,906</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Effect of non-deductible expenses and other</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,346</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,596</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,672</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">(1,904</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">(5,786</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">34,400</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The income tax recovery of $6.1&nbsp;million in fiscal 2009, relates to previously unrecognized tax
positions of prior taxation years.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">In fiscal 2009, the Canada Revenue Agency (CRA)&nbsp;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&nbsp;10, 2008, the Company reached an agreement with the 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&nbsp;million, including a provision for provincial taxes, and a reclassification of
$17.3&nbsp;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&nbsp;million to the CRA and a provincial tax authority, as part of this agreement. In the first
quarter of fiscal 2010, the Company made payments of $13.4&nbsp;million for the provincial component of
the agreement described above.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The components of income tax (recovery)&nbsp;expense are as follows:
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="64%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">2010</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">2009</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">2008</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Current income taxes</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">9,523</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">(3,352</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">50,285</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Future income taxes</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(11,427</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(2,434</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(15,885</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">(1,904</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">(5,786</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">34,400</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="right" style="font-size: 10pt; margin-top: 12pt">GILDAN 2010 REPORT TO SHAREHOLDERS P.71
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: Helvetica,Arial,sans-serif">


<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="47%"></TD>
    <TD width="5%"></TD>
    <TD width="47%"></TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom"><!-- Blank Space -->
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top"><IMG src="n66662n6666203.gif" alt="(GILDAN LOGO)">
</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>14. INCOME TAXES (continued):</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Significant components of the Company&#146;s future income tax assets and liabilities are as follows:
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="76%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">2010</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">2009</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Future income tax assets (liabilities)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Non-capital losses</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">12,778</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">3,817</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Taxable temporary differences related to:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Reserves and accruals</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,340</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,634</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Property, plant and equipment and intangible assets</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(25,614</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(26,699</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Other</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,020</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">394</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Net future income tax liability (presented as long-term liabilities)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">(4,476</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">(15,854</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">As at October&nbsp;3, 2010, the Company has non-capital loss carryforwards available to reduce future
taxable income for Canadian, and U.S. tax purposes of approximately CAD$11.4&nbsp;million and $11.1
million, respectively, expiring between 2022 and 2030, for which no future tax asset has been
recognized.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">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.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>15. RESTRUCTURING AND OTHER CHARGES, AND ASSETS HELD FOR SALE:</B>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="64%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">2010</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">2009</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">2008</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Loss (gain)&nbsp;on disposal of assets held for sale</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">37</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">(619</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">(526</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Accelerated depreciation</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,488</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Asset impairment loss and write-down of assets held for sale</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,826</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,595</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,700</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Employee termination costs and other benefits</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">744</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,180</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">400</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Other exit costs</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,705</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,120</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,470</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Adjustment for employment contract</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(95</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(77</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(555</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">8,705</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">6,199</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">5,489</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">During the first quarter of fiscal 2010, the Company announced plans to consolidate its existing
distribution centres servicing retail customers at a new retail distribution centre in Charleston,
South Carolina. These plans have resulted in the closure of its leased retail distribution facility
in Martinsville, Virginia and its retail distribution facility in Fort Payne, Alabama. The costs
incurred in connection with this initiative have been recorded as restructuring and other charges,
including accelerated depreciation resulting from a change in estimate for the remaining economic
lives of certain distribution long-lived assets. The Company has also recorded restructuring
charges in fiscal 2010 and 2009 relating to manufacturing facilities that were closed in fiscal
2009 and in previous years.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">For fiscal 2010, restructuring and other charges totalled $8.7&nbsp;million, mainly relating to the
consolidation of retail distribution facilities mentioned above, including $2.5&nbsp;million of
accelerated depreciation, an asset impairment loss of $1.8&nbsp;million, and $0.7&nbsp;million of employee
termination costs. The Company also incurred other exit costs of $3.7&nbsp;million for fiscal 2010
including inventory transfer costs, carrying and dismantling costs, and lease termination costs.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">For fiscal 2009, restructuring and other charges totalled $6.2&nbsp;million which included $3.7&nbsp;million
for the closure of the Company&#146;s U.S. sock finishing operations, and $3.1&nbsp;million primarily related
to facility closures that occurred in previous fiscal years, including carrying costs and asset
write-downs, net of a gain of $0.6&nbsp;million relating to assets held for sale.
</DIV>


<DIV align="right" style="font-size: 10pt; margin-top: 12pt">GILDAN 2010 REPORT TO SHAREHOLDERS P.72
</DIV>



<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: Helvetica,Arial,sans-serif">


<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="47%"></TD>
    <TD width="5%"></TD>
    <TD width="47%"></TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom"><!-- Blank Space -->
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top"><IMG src="n66662n6666203.gif" alt="(GILDAN LOGO)">
</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>15. RESTRUCTURING AND OTHER CHARGES, AND ASSETS HELD FOR SALE (continued):</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Restructuring charges of $5.5&nbsp;million in fiscal 2008 included $2.1&nbsp;million relating to the
consolidation of the Company&#146;s Haiti sewing operation, and $4.5&nbsp;million relating to facility
closures which occurred in previous fiscal years, primarily for carrying and dismantling costs
associated with assets held for sale, partially offset by a gain on disposal of assets held for
sale of $0.5&nbsp;million. The Company also had a recovery of $0.6&nbsp;million from the obligations accrued
for an employment contract with a former executive of the Company.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Assets held for sale of $3.2&nbsp;million as at October&nbsp;3, 2010 (October&nbsp;4, 2009 &#151; $6.5&nbsp;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 fair value adjustments and gains or losses on the disposal of the
assets held for sale will also be accounted for as restructuring charges as incurred.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Accounts payable and accrued liabilities include amounts relating to restructuring activities and
charges to comply with an employment contract, as follows:
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="88%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Balance, October&nbsp;5, 2008</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1,993</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Employee termination and other benefits</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,180</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Adjustment for employment contract</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(77</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Foreign exchange adjustment</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(25</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Payments</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(2,385</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="5" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Balance, October&nbsp;4, 2009</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,686</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Employee termination and other benefits</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">744</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Adjustment for employment contract</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(95</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Foreign exchange adjustment</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">34</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Payments</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(915</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="5" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Balance, October&nbsp;3, 2010</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1,454</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="5" align="left" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>16. OTHER COMPREHENSIVE INCOME (LOSS):</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Other comprehensive income (loss)&nbsp;was comprised of the following:

</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="64%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">2010</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">2009</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">2008</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Net gain on derivatives designated as cash flow hedges (net of
income tax of $22)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">2,129</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Amounts reclassified from other comprehensive income to net
earnings, and included in:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Net sales (net of income tax of $27)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(2,661</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Selling, general and administrative expenses (net of income
tax of $7)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(694</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Financial income, net (net of income tax of $5)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(484</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Other comprehensive loss</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">(1,710</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">As at October&nbsp;3, 2010, approximately $2.4&nbsp;million of net losses presented in accumulated other
comprehensive income are expected to be reclassified to net earnings within the next 12&nbsp;months.
</DIV>


<DIV align="right" style="font-size: 10pt; margin-top: 12pt">GILDAN 2010 REPORT TO SHAREHOLDERS P.73
</DIV>



<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>




<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>
<DIV style="font-family: Helvetica,Arial,sans-serif">

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="47%"></TD>
    <TD width="5%"></TD>
    <TD width="47%"></TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->

<TR valign="bottom"><!-- Blank Space -->
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top"><IMG src="n66662n6666203.gif" alt="(GILDAN LOGO)"></TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>17. EARNINGS PER SHARE:</B></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">A reconciliation between basic and diluted earnings per share is as follows:</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="64%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">2010</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">2009</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">2008</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Basic earnings per share:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Basic weighted average number of common shares
outstanding</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">121,159</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">120,811</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">120,479</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Basic earnings per share</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1.64</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">0.79</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1.21</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>
<TR>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Diluted earnings per share:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Basic weighted average number of common shares
outstanding</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">121,159</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">120,811</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">120,479</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Plus dilutive impact of stock options and Treasury RSUs</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">821</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">624</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,143</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Diluted weighted average number of common shares
outstanding</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">121,980</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">121,435</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">121,622</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Diluted earnings per share</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1.63</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">0.79</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1.20</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Excluded from the above calculation for the year ended October&nbsp;3, 2010 are 612,144 stock options
(2009 &#151; 452,093; 2008 &#151; 125,208) and 16,375 Treasury RSUs (2009 &#151; 236,934; 2008 &#151; 25,575) which
were deemed to be anti-dilutive.</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>18. OTHER INFORMATION:</B></DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">(a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Supplemental cash flow disclosure:</TD>
</TR>
</TABLE>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="64%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">2010</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">2009</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">2008</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Cash paid during the year for:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Interest</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">638</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">2,028</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">7,866</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Income taxes</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">16,443</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">30,419</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,867</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR><TD>&nbsp;</TD></TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Balance of non-cash transactions:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Additions to property, plant and equipment included in
accounts payable and accrued liabilities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,099</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">627</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,720</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Proceeds on disposal of long-lived assets in other assets</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">427</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">808</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,382</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Proceeds on disposal of long-lived assets in other
current assets</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">456</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Business acquisition in accounts payable and accrued
liabilities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,196</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Non-cash ascribed value credited to share capital from
shares issued pursuant to vesting of Treasury RSUs and
exercise of stock options</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,125</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,759</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">190</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="right" style="font-size: 10pt; margin-top: 12pt">GILDAN 2010 REPORT TO SHAREHOLDERS P.74</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: Helvetica,Arial,sans-serif">


<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="47%"></TD>
    <TD width="5%"></TD>
    <TD width="47%"></TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom"><!-- Blank Space -->
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top"><IMG src="n66662n6666203.gif" alt="(GILDAN LOGO)">
</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>18. OTHER INFORMATION (continued):</B>
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">(a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Supplemental cash flow disclosure (continued):</TD>
</TR>

</TABLE>
</DIV>
<DIV align="right">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="97%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="64%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">2010</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">2009</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">2008</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Cash and cash equivalents consist of:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Cash balances with banks</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">196,279</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">92,608</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">8,068</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Short-term investments, bearing interest at rates up to
0.25% at October&nbsp;3, 2010, up to 0.12% at
October&nbsp;4, 2009 and up to 2.22% at October&nbsp;5, 2008</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">62,163</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7,124</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,289</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">258,442</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">99,732</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">12,357</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">(b)&nbsp;Depreciation and amortization:
</DIV>

<DIV align="right">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="97%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="64%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">2010</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">2009</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">2008</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Depreciation and amortization of property, plant and
equipment and intangible assets</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">66,472</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">65,407</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">57,135</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Adjustment for the variation of depreciation of property,
plant and equipment and intangible assets included in
inventories at the beginning and end of the period</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,725</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(2,437</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(957</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Depreciation and amortization included in the consolidated
statements of earnings and comprehensive income</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">69,197</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">62,970</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">56,178</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Consists of:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Depreciation of property, plant and equipment</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">60,378</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">53,925</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">48,809</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Amortization of intangible assets</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8,797</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8,843</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7,148</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Amortization of deferred financing costs and other</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">22</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">202</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">221</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Depreciation and amortization included in the consolidated
statements of earnings and comprehensive income</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">69,197</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">62,970</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">56,178</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">(c)&nbsp;The following items were included in the determination of the Company&#146;s net earnings:
</DIV>

<DIV align="right">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="97%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="64%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">2010</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">2009</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">2008</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Defined contribution expense</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1,380</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1,447</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1,827</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Bad debt expense</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,430</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,995</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,543</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">(d)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>During fiscal 2010, the Company expensed $9.1&nbsp;million (2009 &#151; $7.1&nbsp;million; 2008 &#151; $6.1
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&nbsp;3, 2010, an amount of $10.2&nbsp;million
(October&nbsp;4, 2009 &#151; $9.5&nbsp;million) has been included in accounts payable and accrued
liabilities.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">(e)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>During the fourth quarter of fiscal 2010, the Company received business interruption
insurance proceeds of $8.0&nbsp;million, reflecting the maximum insurance recovery available under
its insurance policy related to the earthquake which struck Haiti on January&nbsp;12, 2010. The
earthquake impacted the Company&#146;s third-party contractor operations used to sew the majority
of the fabric produced at its Dominican Republic textile facility, which resulted in lost
sales opportunities due to a temporary loss of production, as well as incremental costs
related to supply chain inefficiencies. Business interruption proceeds have been recorded as a
reduction of cost of sales in the statement of earnings.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="right" style="font-size: 10pt; margin-top: 12pt">GILDAN 2010 REPORT TO SHAREHOLDERS P.75
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: Helvetica,Arial,sans-serif">

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="47%"></TD>
    <TD width="5%"></TD>
    <TD width="47%"></TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom"><!-- Blank Space -->
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top"><IMG src="n66662n6666203.gif" alt="(GILDAN LOGO)">
</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>19. RELATED PARTY TRANSACTIONS:</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">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:
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="64%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">2010</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">2009</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">2008</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Transactions:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Yarn purchases</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">156,761</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">149,754</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">138,642</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Management fee expense</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">750</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">750</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">750</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Balances outstanding:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Accounts payable and accrued liabilities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">30,050</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">22,129</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">32,445</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="17" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>20. FINANCIAL INSTRUMENTS:</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">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&nbsp;3, 2010, 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.
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">(a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Financial instruments &#151; carrying values and fair values:</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD>The fair values of financial assets and liabilities, together with the carrying amounts included
in the consolidated balance sheets, are as follows:</TD>
</TR>

</TABLE>
</DIV>
<DIV align="right">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="97%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="52%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="right" colspan="2" style="border-bottom: 1px solid #000000">2010</TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="right" colspan="2" style="border-bottom: 1px solid #000000">2009</TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">Carrying</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">Carrying</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">amount</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">Fair value</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">amount</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">Fair value</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="17" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Financial assets</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Held-for-trading financial assets:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Cash and cash equivalents</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">258,442</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">258,442</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">99,732</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">99,732</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Loans and receivables:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Trade accounts receivable</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">145,684</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">145,684</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">159,645</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">159,645</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Other current assets</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7,980</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7,980</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7,117</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7,117</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Long-term non-trade receivable included
in other assets</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">953</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">953</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,254</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,254</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Restricted cash related to the acquisition of
Prewett included in other assets</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,788</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,788</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,042</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,042</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Derivative assets</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,099</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,099</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="17" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="right" style="font-size: 10pt; margin-top: 12pt">GILDAN 2010 REPORT TO SHAREHOLDERS P.76
</DIV>



<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>



<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>
<DIV style="font-family: Helvetica,Arial,sans-serif">


<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="47%"></TD>
    <TD width="5%"></TD>
    <TD width="47%"></TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom"><!-- Blank Space -->
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top"><IMG src="n66662n6666203.gif" alt="(GILDAN LOGO)">
</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>20. FINANCIAL INSTRUMENTS (continued):</B>
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">(a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Financial instruments &#151; carrying values and fair values (continued):</TD>
</TR>

</TABLE>
</DIV>
<DIV align="right">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="97%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="52%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="right" colspan="6" style="border-bottom: 1px solid #000000">2010</TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="right" colspan="6" style="border-bottom: 1px solid #000000">2009</TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">Carrying</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">Carrying</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">amount</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">Fair value</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">amount</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">Fair value</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="17" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Financial liabilities</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Other financial liabilities:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Accounts payable and accrued liabilities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">183,117</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">183,117</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">124,378</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">124,378</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Long-term debt &#151; bearing interest at variable
rates</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,876</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,876</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Long-term debt &#151; bearing interest at fixed
rates</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">511</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">511</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Derivative liabilities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,088</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,088</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="17" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Derivative assets and derivative liabilities consist of the fair values of forward foreign
exchange contracts outstanding at October&nbsp;3, 2010 and are included in other current assets, and
accounts payable and accrued liabilities, respectively. The Company has determined that the fair
value of its short-term financial assets and liabilities approximates their respective carrying
amounts as at the balance sheet dates because of the short-term maturity of those instruments.
The fair values of the long-term receivable and the restricted cash included in other assets,
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 exchange
contracts were measured using Level 2 inputs in the fair value hierarchy. In determining the
fair value of financial assets and financial liabilities, including derivative financial
instruments, the Company takes into account its own credit risk and the credit risk of the
counterparty.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">(b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Financial expense (income), net:</TD>
</TR>

</TABLE>
</DIV>
<DIV align="right">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="97%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="64%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">2010</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">2009</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">2008</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>


<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Interest expense (i)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">436</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1,824</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">7,223</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Bank and other financial charges</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,392</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,039</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">946</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Foreign exchange (gain)&nbsp;loss (ii)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(1,077</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(3,167</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,071</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">751</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">(304</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">9,240</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(i)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Interest expense (income):</TD>
</TR>

</TABLE>
</DIV>
<DIV align="right">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="94%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="64%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">2010</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">2009</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">2008</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Interest expense on long-term debt</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">88</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1,800</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">7,422</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Interest expense on short-term indebtedness</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">463</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">142</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">191</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Interest income on held-for-trading financial assets</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(132</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(103</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(413</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Interest income on loans and receivables</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(80</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(80</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(80</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Other interest expense</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">97</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">65</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">103</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">436</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1,824</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">7,223</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>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.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="right" style="font-size: 10pt; margin-top: 12pt">GILDAN 2010 REPORT TO SHAREHOLDERS P.77
</DIV>



<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: Helvetica,Arial,sans-serif">

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="47%"></TD>
    <TD width="5%"></TD>
    <TD width="47%"></TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom"><!-- Blank Space -->
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top"><IMG src="n66662n6666203.gif" alt="(GILDAN LOGO)">
</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>20. FINANCIAL INSTRUMENTS (continued):</B>
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">(b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Financial expense (income), net (continued):</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(ii)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Foreign exchange (gain)&nbsp;loss:</TD>
</TR>

</TABLE>
</DIV>
<DIV align="right">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="94%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="64%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">2010</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">2009</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">2008</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">(Gain) loss relating to financial assets and liabilities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">(1,154</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">(220</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">674</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Loss (gain)&nbsp;relating to financial derivatives not
designated as cash flow hedges, including
amounts realized on contract maturity and
changes in fair value of open positions</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(82</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,084</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Foreign exchange (gain)&nbsp;loss relating to financial
instruments</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(1,147</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(302</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,758</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Other foreign exchange loss (gain)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">70</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(2,865</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(1,687</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">(1,077</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">(3,167</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1,071</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">(c)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Derivative instruments:</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Company has entered into forward foreign exchange contracts in order to reduce the exposure
of forecasted cash flows in currencies other than the U.S. dollar. The forward foreign exchange
contracts were designated as cash flow hedges and qualified for hedge accounting. As such, the
effective portion of unrealized gains and losses related to the fair value of the cash flow
hedges are included in other comprehensive income, and are recognized in net earnings in the
same period in which the foreign exchange impact of the forecasted cash flow affects net
earnings. The forward foreign exchange contracts outstanding as at October&nbsp;3, 2010 consisted
primarily of contracts to sell or buy Euros, Australian dollars, Canadian dollars, and Pounds
sterling in exchange for U.S. dollars.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Company has also entered into forward fuel oil contracts in order to reduce the exposure of
forecasted cash outflows that are affected by oil prices. The forward fuel oil contracts were
designated as cash flow hedges and qualified for hedge accounting. As such, the effective
portion of unrealized gains and losses related to the fair value of the cash flow hedges are
included in other comprehensive income, and are recognized in net earnings in the same period as
the hedged fuel oil affects net earnings. As at October&nbsp;3, 2010 and October&nbsp;4, 2009, there were
no forward fuel oil contracts outstanding.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>As at October&nbsp;3, 2010, the derivatives designated as cash flow hedges were considered to be
fully effective with no resulting portions being designated as ineffective.</TD>
</TR>

</TABLE>
</DIV>
<DIV align="right">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="97%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="23%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="6" style="border-bottom: 1px solid #000000">Carrying and fair value</TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="right" colspan="2" style="border-bottom: 1px solid #000000">Maturity</TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">Notional</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">Accounts</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">foreign</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">payable</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">currency</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">Average</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">Notional</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">Other</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">and</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">amount</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">exchange</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">U.S. $</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">current</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">accrued</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">0 to 6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">7 to 12</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD nowrap align="left">October 3, 2010</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">equivalent</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">rate</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">equivalent</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">assets</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">liabilities</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">months</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">months</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="29" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD colspan="29" align="left">Forward foreign exchange contracts designated as cash flow hedges:</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Sell AUD/Buy USD</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7,908</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.8704</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">6,883</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">(570</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">(334</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">(236</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Sell GBP/Buy USD</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">24,900</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.5443</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">38,454</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(511</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(210</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(301</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Sell EUR/Buy USD</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">33,150</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.2964</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">42,977</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(2,007</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(813</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(1,194</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Sell CAD/Buy USD</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">16,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.9938</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">15,900</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">393</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">393</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Buy CAD/Sell USD</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">21,222</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.9330</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">19,800</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">706</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">368</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">338</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="29" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">124,014</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1,099</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">(3,088</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">(596</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">(1,393</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="29" align="left" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>As at October&nbsp;4, 2009 the Company had no outstanding derivative financial instruments relating
to commitments to buy or sell foreign currencies through forward foreign exchange contracts.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="right" style="font-size: 10pt; margin-top: 12pt">GILDAN 2010 REPORT TO SHAREHOLDERS P.78
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: Helvetica,Arial,sans-serif">

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="47%"></TD>
    <TD width="5%"></TD>
    <TD width="47%"></TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom"><!-- Blank Space -->
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top"><IMG src="n66662n6666203.gif" alt="(GILDAN LOGO)">
</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>21. CAPITAL DISCLOSURES:</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">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.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">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.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">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
computations of net debt, cash in excess of total indebtedness and EBITDA as at October&nbsp;3, 2010,
October&nbsp;4, 2009 and October&nbsp;5, 2008 were as follows:
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="64%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">2010</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">2009</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">2008</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Current portion of long-term debt</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">2,803</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">3,556</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Long-term debt</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,584</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">49,448</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Less: cash and cash equivalents</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(258,442</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(99,732</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(12,357</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">(Cash in excess of total indebtedness) net debt</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">(258,442</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">(95,345</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">40,647</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="64%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="right" colspan="10" style="border-bottom: 1px solid #000000">For the last four quarters ended on</TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">October 3,<BR>2010</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">October 4,<BR>2009</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">October 5,<BR>2008</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Net earnings</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">198,245</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">95,329</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">146,350</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Restructuring and other charges</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8,705</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,199</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,489</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Depreciation and amortization</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">66,472</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">65,407</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">57,135</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Variation of depreciation included in inventories</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,725</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(2,437</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(957</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Interest, net</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">436</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,824</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7,223</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Income tax (recovery)&nbsp;expense</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(1,904</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(5,786</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">34,400</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Non-controlling interest in consolidated joint venture</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,786</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">110</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">230</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">EBITDA</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">278,465</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">160,646</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">249,870</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Net debt to EBITDA ratio</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">n/a</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">n/a</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.2:1</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">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.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">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.
</DIV>


<DIV align="right" style="font-size: 10pt; margin-top: 12pt">GILDAN 2010 REPORT TO SHAREHOLDERS P.79
</DIV>



<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>



<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: Helvetica,Arial,sans-serif">


<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="47%"></TD>
    <TD width="5%"></TD>
    <TD width="47%"></TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom"><!-- Blank Space -->
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top"><IMG src="n66662n6666203.gif" alt="(GILDAN LOGO)">
</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>21. CAPITAL DISCLOSURES (continued):</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">On December&nbsp;2, 2010, the Company announced that its Board of Directors had approved the
introduction of a quarterly cash dividend. The initial quarterly dividend of U.S. $0.075 per
share will be paid on all issued and outstanding Common Shares of the Company listed on the New
York Stock Exchange (the &#147;NYSE&#148;) and the equivalent amount in Canadian dollars (using the Bank of
Canada&#146;s latest noon conversion rate at the time of payment)
will be paid for Common Shares listed on the
Toronto Stock Exchange (the &#147;TSX&#148;). The initial dividend
will be paid on March&nbsp;18, 2011, rateably and proportionately to
the holders of record on February&nbsp;23, 2011, being the record
date. The dividend policy will be reviewed annually by the Board of Directors.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Company also announced the reinstatement of a normal course issuer bid to repurchase up to one
million outstanding Common Shares of the Company on the TSX and the NYSE (the &#147;NCIB&#148;). The Company
is authorized to make purchases under the NCIB during the period from December&nbsp;6, 2010 to December
5, 2011 or until such time as the NCIB is completed or terminated at the Company&#146;s option. The
price to be paid will be the market price of the Common  Shares on the stock
exchange on which the  shares are
purchased at the time of acquisition. Common Shares purchased under the NCIB will be cancelled.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Company is not subject to any capital requirements imposed by a regulator.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>22. SEGMENTED INFORMATION:</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">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.
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">(a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Net sales by major product group:</TD>
</TR>

</TABLE>
</DIV>
<DIV align="right">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="97%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="64%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">2010</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">2009</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">2008</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Activewear and underwear</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1,084,953</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">795,535</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">957,061</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Socks</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">226,510</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">242,784</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">292,650</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1,311,463</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1,038,319</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1,249,711</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">(b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Major customers and revenues by geographic area:</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(i)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Company has two customers accounting for at least 10% of total net sales:</TD>
</TR>

</TABLE>
</DIV>
<DIV align="right">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="94%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="64%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">2010</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">2009</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">2008</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Company A</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">21.0</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">18.6</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">23.1</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Company B</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">14.3</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">15.5</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">13.6</TD>
    <TD nowrap>%</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(ii)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Net sales were derived from customers located in the following geographic areas:</TD>
</TR>

</TABLE>
</DIV>
<DIV align="right">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="94%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="64%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">2010</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">2009</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">2008</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">United States</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1,154,776</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">939,717</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1,125,961</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Canada</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">54,160</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">35,134</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">56,353</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Europe and other</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">102,527</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">63,468</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">67,397</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1,311,463</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1,038,319</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1,249,711</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="right" style="font-size: 10pt; margin-top: 12pt">GILDAN 2010 REPORT TO SHAREHOLDERS P.80
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: Helvetica,Arial,sans-serif">


<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="47%"></TD>
    <TD width="5%"></TD>
    <TD width="47%"></TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom"><!-- Blank Space -->
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top"><IMG src="n66662n6666203.gif" alt="(GILDAN LOGO)">
</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>22. SEGMENTED INFORMATION (continued):</B>
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">(c)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Property, plant and equipment by geographic area are as follows:</TD>
</TR>

</TABLE>
</DIV>
<DIV align="right">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="97%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="76%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">2010</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">2009</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Honduras</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">243,033</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">211,267</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Caribbean Basin</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">118,876</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">102,216</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">United States</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">81,555</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">65,347</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Canada</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10,051</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">13,252</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Other</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">25,777</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10,121</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">479,292</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">402,203</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">(d)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Intangible assets by geographic area are as follows:</TD>
</TR>

</TABLE>
</DIV>
<DIV align="right">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="97%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="76%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">2010</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">2009</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Canada</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">5,456</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">8,959</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">United States</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">54,650</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">58,901</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Honduras</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">907</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">766</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Other</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">308</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">466</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">61,321</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">69,092</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">(e)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Goodwill by geographic area is as follows:</TD>
</TR>

</TABLE>
</DIV>
<DIV align="right">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="97%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="76%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">2010</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">2009</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">United States</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">6,709</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">6,709</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Bangladesh</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,488</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">10,197</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">6,709</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>23. COMPARATIVE FIGURES:</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Certain comparative figures have been adjusted to conform to the current year&#146;s presentation
including the reclassification of the 2009 net book value of computer software of $12.3&nbsp;million,
comprised of a cost of $25.4&nbsp;million and accumulated amortization of $13.1&nbsp;million from property,
plant and equipment to intangible assets.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Company also reclassified the 2009 future income tax assets of $7.9&nbsp;million as an offset
against future income tax liabilities.
</DIV>


<DIV align="right" style="font-size: 10pt; margin-top: 12pt">GILDAN 2010 REPORT TO SHAREHOLDERS P.81
</DIV>



<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>




</BODY>
</HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.3
<SEQUENCE>4
<FILENAME>n66662exv99w3.htm
<DESCRIPTION>EX-99.3
<TEXT>
<HTML>
<HEAD>
<TITLE>exv99w3</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
<!-- PAGEBREAK -->
<DIV style="font-family: Helvetica,Arial,sans-serif">


<DIV align="right" style="font-size: 10pt; margin-top: 12pt"><B>Exhibit&nbsp;99.3</B>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><IMG src="n66662n6666298.gif" alt="(KPMG LOGO)">
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 32pt"><B><FONT style="font-size:12pt">CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM</FONT></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 16pt">To the
Board of Directors of <BR>
Gildan Activewear Inc.</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 26pt">We consent to the inclusion in this annual report on Form 40-F of:</DIV>


<DIV style="margin-top: 8pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>our Report of Independent Registered Public Accounting Firm dated December&nbsp;6,
2010 on the consolidated balance sheets of Gildan Activewear Inc. (the &#147;Company&#148;) as at
October&nbsp;3, 2010 and October&nbsp;4, 2009 and the consolidated statements of earnings and
comprehensive income, shareholders&#146; equity and cash flows for the years ended October&nbsp;3, 2010,
October&nbsp;4, 2009, and October&nbsp;5, 2008</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 8pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>our Report of Independent Registered Public Accounting Firm dated December&nbsp;6,
2010 on the Reconciliation to United States Generally Accepted Accounting Principles</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 8pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>our Report of Independent Registered Public Accounting Firm dated December&nbsp;6,
2010 on the Company&#146;s internal control over financial reporting as of October&nbsp;3, 2010</TD>
</TR>

</TABLE>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 9pt">each of which is contained in this annual report on Form 40-F of Gildan Activewear Inc. for the
fiscal year ended October&nbsp;3, 2010.</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 36pt"><IMG src="n66662n6666299.gif" alt="(- s - KMPG)">
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 24pt">Chartered Accountants

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 24pt">Montr&#233;al, Canada

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 3pt">December&nbsp;6, 2010

</DIV>

<DIV align="left" style="font-size: 6.5pt; margin-top: 46pt; margin-left: 25%">KPMG LLP is a Canadian limited liability partnership and a member firm of the KPMG<BR>
network of independent member firms affiliated with KPMG International Cooperative<BR>
(&#147;KPMG International&#148;), a Swiss entity. KPMG Canada provides services to KPMG LLP.

</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio --><!-- /Folio -->
</DIV>



</BODY>
</HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.4
<SEQUENCE>5
<FILENAME>n66662exv99w4.htm
<DESCRIPTION>EX-99.4
<TEXT>
<HTML>
<HEAD>
<TITLE>exv99w4</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
<!-- PAGEBREAK -->
<DIV style="font-family: Helvetica,Arial,sans-serif">


<DIV align="right" style="font-size: 10pt; margin-top: 12pt"><B>Exhibit&nbsp;99.4</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Supplementary Information of
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>GILDAN ACTIVEWEAR INC.</B>

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Three years ended October&nbsp;3, 2010

</DIV>





<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: Helvetica,Arial,sans-serif">




<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><IMG src="n66662n6666205.gif" alt="(KPMG LOGO)">
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="25%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="44%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="10%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="25%">&nbsp;</TD>
</TR>
<TR></TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>KPMG LLP</B></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Telephone</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">(514) 840-2100</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>Chartered Accountants</B></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Fax</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">(514) 840-2187</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">600 de Maisonneuve Blvd. West</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Internet</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">www.kpmg.ca</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Suite 1500</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Montr&#233;al Qu&#233;bec  H3A 0A3</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM ON RECONCILIATION TO UNITED STATES
GAAP</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">To the Board of Directors of Gildan Activewear Inc.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">On December&nbsp;6, 2010, we reported on the consolidated balance sheets of Gildan Activewear Inc. (the
&#147;Company&#148;) as at October&nbsp;3, 2010 and October&nbsp;4, 2009 and the consolidated statements of earnings
and comprehensive income, shareholders&#146; equity and cash flows for the years ended October&nbsp;3, 2010,
October&nbsp;4, 2009 and October&nbsp;5, 2008, 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 &#147;Reconciliation to United States GAAP&#148; included in
the Form 40-F. This supplemental note is the responsibility of the Company&#146;s management. Our
responsibility is to express an opinion on this supplemental note based on our audits.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">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.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><IMG src="n66662n6666204.gif" alt="(KPMG LLP)">
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Chartered Accountants
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Montr&#233;al, Canada<BR>
December&nbsp;6, 2010

</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 25%">KPMG LLP is a Canadian limited liability partnership and a member firm of the KPMG network
of<br> independent member firms affiliated with KPMG International
Cooperative (&#147;KPMG International&#148;), a Swiss entity.
KPMG Canada provides services to KPMG LLP.
</DIV>






<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: Helvetica,Arial,sans-serif">




<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>GILDAN ACTIVEWEAR INC.</B><BR>
Reconciliation to United States GAAP

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Years ended October&nbsp;3, 2010, October&nbsp;4, 2009 and October&nbsp;5, 2008<BR>
(Tabular amounts in thousands or thousands of US dollars, except per share amounts)

</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The consolidated financial statements of the Company are expressed in US dollars and are prepared
in accordance with Canadian generally accepted accounting principles (&#147;GAAP&#148;), which conform, in
all material respects, with those generally accepted in the United States, except as described
below:
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left"><B>(a)</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Consolidated statements of earnings and comprehensive income:</B></TD>
</TR>

</TABLE>
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="64%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">2010</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">2009</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">2008</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR><TD>&nbsp;</TD></TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Net earnings as per Canadian GAAP</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">198,245</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">95,329</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">146,350</TD>
    <TD>&nbsp;</TD>
</TR>
<TR><TD>&nbsp;</TD></TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Adjustments:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Non-controlling interest in consolidated
joint venture (i)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,786</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">110</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">230</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Transaction costs (ii)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(600</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Swap revenue (iii)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(29</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Tax effect of above adjustments</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Net earnings as per United States GAAP</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">201,431</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">95,439</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">146,560</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Net earnings attributable to:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Shareholders of Gildan Activewear Inc.</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">197,645</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">95,329</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">146,330</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Non-controlling interest in consolidated joint venture</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">3,786</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">110</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">230</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="64%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">2010</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">2009</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">2008</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR><TD>&nbsp;</TD></TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Net earnings as per United States GAAP</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">201,431</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">95,439</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">146,560</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Other comprehensive loss, net of related
income taxes</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(1,710</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Comprehensive income as per United States GAAP</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">199,721</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">95,439</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">146,560</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Comprehensive income attributable to:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Shareholders of Gildan Activewear Inc.</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">195,935</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">95,329</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">146,330</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Non-controlling interest in consolidated joint venture</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">3,786</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">110</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">230</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->P.1<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: Helvetica,Arial,sans-serif">


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>GILDAN ACTIVEWEAR INC.</B><BR>
Reconciliation to United States GAAP

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Years ended October&nbsp;3, 2010, October&nbsp;4, 2009 and October&nbsp;5, 2008<BR>
(Tabular amounts in thousands or thousands of US dollars, except per share amounts)

</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left"><B>(a)</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Consolidated statements of earnings and comprehensive income (continued):</B></TD>
</TR>

</TABLE>
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="64%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">2010</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">2009</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">2008</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR><TD>&nbsp;</TD></TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Earnings per share attributable to the
shareholders of
Gildan Activewear Inc. as per United States
GAAP:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Basic</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1.63</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">0.79</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1.21</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Diluted</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.62</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.79</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.20</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Weighted average number of common shares
outstanding</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Basic</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">121,159</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">120,811</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">120,479</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Diluted</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">121,980</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">121,435</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">121,622</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left"><B>(b)</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Consolidated statements of shareholders&#146; equity:</B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>A reconciliation of shareholders&#146; equity under Canadian GAAP to United States GAAP is as
follows:</TD>
</TR>

</TABLE>
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="76%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">2010</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">2009</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR><TD>&nbsp;</TD></TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Shareholders&#146; equity as per Canadian GAAP</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1,114,429</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">910,785</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Adjustments:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Non-controlling interest in consolidated
joint venture (i)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11,058</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7,272</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Transaction costs (ii)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(600</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Shareholders&#146; equity as per United States GAAP</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1,124,887</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">918,057</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->P.2<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: Helvetica,Arial,sans-serif">


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>GILDAN ACTIVEWEAR INC.</B><BR>
Reconciliation to United States GAAP

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Years ended October&nbsp;3, 2010, October&nbsp;4, 2009 and October&nbsp;5, 2008<BR>
(Tabular amounts in thousands or thousands of US dollars, except per share amounts)

</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(i)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Non-controlling interest in consolidated joint venture</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Effective October&nbsp;5, 2009, United States GAAP requires non-controlling interest to be
presented as a separate component of shareholders&#146; equity (as opposed to a liability). In
addition, the portion of net earnings and comprehensive income attributable to the
controlling and non-controlling interests must be presented separately in the statement of
earnings and comprehensive income. This adjustment reflects the new presentation of
non-controlling interests as required under United States GAAP.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(ii)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Transaction costs</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Under Canadian GAAP, restructuring and other acquisition-related costs of a business
combination are included in the cost of the purchase, subject to certain conditions. Under
United States GAAP, such costs are no longer considered part of the purchase price, and are
expensed as incurred for business combinations for which the acquisition date is on or after
October&nbsp;5, 2009. This adjustment represents acquisition-related costs which were included
in the cost of a business combination, for Canadian GAAP purposes, which occurred in fiscal
2010.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(iii)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Swap revenue</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>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.</TD>
</TR>





</TABLE>
</DIV>
<P align="center" style="font-size: 10pt"><!-- Folio -->P.3<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: Helvetica,Arial,sans-serif">


<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">



</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>GILDAN ACTIVEWEAR INC.</B><BR>
Reconciliation to United States GAAP

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Years ended October&nbsp;3, 2010, October&nbsp;4, 2009 and October&nbsp;5, 2008<BR>
(Tabular amounts in thousands or thousands of US dollars, except per share amounts)

</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left"><B>(c)</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Adoption of new accounting standards:</B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Business Combinations</B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Effective October&nbsp;5, 2009, the Company adopted FASB Accounting Standards Codification section
805, <I>Business Combinations</I>. This new Section requires that all business combinations 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&nbsp;percent of the equity interest in the
acquiree is owned 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 purchase price. Instead, such costs are 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
October&nbsp;5, 2009.</TD>
</TR>

<TR>
    <TD style="font-size: 12pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Consolidation</B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Effective October&nbsp;5, 2009, the Company adopted FASB Accounting Standards Codification section
810, <I>Consolidation</I>. The new Section applies to the accounting for non-controlling interests and
transactions with non-controlling interest holders in consolidated financial statements. The new
Section requires that, for each business combination, the acquirer measure any non-controlling
interest in the acquiree at the full fair value of the acquiree&#146;s identifiable net assets. The
new Section also requires non-controlling interest to be presented as a separate component of
shareholders&#146; equity. Non-controlling interest in income is not deducted in arriving at
consolidated net income or other comprehensive income. Instead, net income and each component of
other comprehensive income are allocated to the controlling and non-controlling interests based
on relative ownership interests. This Section applies prospectively to measurement of
non-controlling interest recorded on business combinations for which the acquisition date is on
or after October&nbsp;5, 2009, with the exception of the presentation and disclosure provisions,
which are applied for all prior periods presented in the financial statements.</TD>
</TR>

</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->P.4<!-- /Folio -->
</DIV>



</BODY>
</HTML>
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</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.5
<SEQUENCE>6
<FILENAME>n66662exv99w5.htm
<DESCRIPTION>EX-99.5
<TEXT>
<HTML>
<HEAD>
<TITLE>exv99w5</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
<!-- PAGEBREAK -->
<DIV style="font-family: Helvetica,Arial,sans-serif">


<DIV align="right" style="font-size: 10pt; margin-top: 12pt"><B>EXHIBIT 99.5</B>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>CERTIFICATION<BR>
REQUIRED BY RULE 13a-14(a)<BR>
OR RULE 15d-14(a)</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">I, Glenn J. Chamandy, certify that:
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">1.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>I have reviewed this annual report on Form 40-F of Gildan Activewear Inc.;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">2.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>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;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">3.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>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;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">4.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>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&nbsp;13a-15(e) and 15d-15(e))
and internal control over financial reporting (as defined in Exchange Act Rules&nbsp;13(a) &#151; 15(f)
and 15(d) &#151; 15(f)) for the issuer and have:</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>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;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>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;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(c)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>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</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(d)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>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</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">5.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>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):</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>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</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>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.</TD>
</TR>

</TABLE>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Date: December 6, 2010
</DIV>


<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="48%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD colspan="3" style="border-bottom: 1px solid #000000" align="left">                                 /s/ <I>Glenn J. Chamandy</I>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD valign="top">Name:&nbsp;&nbsp;</TD>
    <TD colspan="2" align="left">Glenn J. Chamandy&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD valign="top">Title:&nbsp;&nbsp;</TD>
    <TD colspan="2" align="left">President and Chief Executive Officer&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: Helvetica,Arial,sans-serif">


<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="48%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>

</TABLE>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>CERTIFICATION<BR>
REQUIRED BY RULE 13a-14(a)<BR>
OR RULE 15d-14(a)</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">I, Laurence G. Sellyn, certify that:
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">


<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">1.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>I have reviewed this annual report on Form 40-F of Gildan Activewear Inc.;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">2.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>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;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">3.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>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;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">4.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>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&nbsp;13a-15(e) and 15d-15(e))
and internal control over financial reporting (as defined in Exchange Act Rules&nbsp;13(a) &#151; 15(f)
and 15(d) &#151; 15(f)) for the issuer and have:</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>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;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>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;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(c)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>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</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(d)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>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</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">5.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>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):</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>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</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>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.</TD>
</TR>

</TABLE>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Date: December 6, 2010
</DIV>


<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="48%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD colspan="3" style="border-bottom: 1px solid #000000" align="left">
/s/ <I>Laurence G. Sellyn</I>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD valign="top">Name:&nbsp;&nbsp;</TD>
    <TD colspan="2" align="left">Laurence G. Sellyn&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD valign="top">Title:&nbsp;&nbsp;</TD>
    <TD colspan="2" align="left">Executive Vice-President, Chief Financial and
Administrative Officer&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

</BODY>
</HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.6
<SEQUENCE>7
<FILENAME>n66662exv99w6.htm
<DESCRIPTION>EX-99.6
<TEXT>
<HTML>
<HEAD>
<TITLE>exv99w6</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
<!-- PAGEBREAK -->

<DIV style="font-family: Helvetica,Arial,sans-serif">


<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="48%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>

</TABLE>

<DIV align="right" style="font-size: 10pt; margin-top: 12pt"><B>EXHIBIT 99.6</B>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>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</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Gildan Activewear Inc. (the &#147;Corporation&#148;) is filing its annual report on Form 40-F for the fiscal
year ended October&nbsp;3, 2010 (the &#147;Report&#148;) with the United States Securities and Exchange
Commission.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">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:
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">

    <TD width="3%" nowrap align="left">1.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>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>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">

    <TD width="3%" nowrap align="left">2.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The information contained in the Report fairly presents, in all material respects, the
financial condition and results of operations of the Corporation.</TD>
</TR>
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Dated: December 6, 2010
</DIV>


<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="48%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD colspan="3" style="border-bottom: 1px solid #000000" align="left">                             /s/ <I>Glenn J. Chamandy</I>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD valign="top">Name:&nbsp;&nbsp;</TD>
    <TD colspan="2" align="left">Glenn J. Chamandy&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD valign="top">Title:&nbsp;&nbsp;</TD>
    <TD colspan="2" align="left">President and Chief Executive Officer&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: Helvetica,Arial,sans-serif">


<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="48%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>

</TABLE>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>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</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Gildan Activewear Inc. (the &#147;Corporation&#148;) is filing its annual report on Form 40-F for the fiscal
year ended October&nbsp;3, 2010 (the &#147;Report&#148;) with the United States Securities and Exchange
Commission.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">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:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">

    <TD width="3%" nowrap align="left">1.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>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>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">

    <TD width="3%" nowrap align="left">2.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The information contained in the Report fairly presents, in all material respects, the
financial condition and results of operations of the Corporation.</TD>
</TR>
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Dated: December&nbsp;6, 2010
</DIV>


<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="48%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD colspan="3" style="border-bottom: 1px solid #000000" align="left">
/s/ <I>Laurence G. Sellyn</I>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD valign="top">Name:&nbsp;&nbsp;</TD>
    <TD colspan="2" align="left">Laurence G. Sellyn&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD valign="top">Title:&nbsp;&nbsp;</TD>
    <TD colspan="2" align="left">Executive Vice-President, Chief Financial and
Administrative Officer&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
</TABLE>


<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>




</BODY>
</HTML>
</TEXT>
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end
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
-----END PRIVACY-ENHANCED MESSAGE-----
