<SEC-DOCUMENT>0001062993-11-004843.txt : 20111212
<SEC-HEADER>0001062993-11-004843.hdr.sgml : 20111212
<ACCEPTANCE-DATETIME>20111209205129
ACCESSION NUMBER:		0001062993-11-004843
CONFORMED SUBMISSION TYPE:	40-F
PUBLIC DOCUMENT COUNT:		18
CONFORMED PERIOD OF REPORT:	20111002
FILED AS OF DATE:		20111212
DATE AS OF CHANGE:		20111209

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
		STATE OF INCORPORATION:			Z4
		FISCAL YEAR END:			0930

	FILING VALUES:
		FORM TYPE:		40-F
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-14830
		FILM NUMBER:		111254520

	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>form40f.htm
<DESCRIPTION>FORM 40-F
<TEXT>
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   <TITLE>Gildan Activewear Inc.: Form 40-F - Filed by newsfilecorp.com</TITLE>
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<P align=center><B><FONT size=5>UNITED STATES</FONT><BR><FONT size=5>SECURITIES
AND EXCHANGE COMMISSION </FONT></B><BR><B>Washington, D.C. 20549 </B><BR></P>
<P align=center><B><FONT size=5>FORM 40-F </FONT></B></P>
<P align=center>[ &nbsp;] Registration statement pursuant to Section 12 of the
Securities Exchange Act of 1934 </P>
<P align=center>or </P>
<P align=center>[X]&nbsp;Annual report pursuant to Section 13(a) or 15(d) of the
Securities Exchange Act of 1934 </P>
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  <TR vAlign=top>
    <TD align=middle><B>For Fiscal year ended: October 2, 2011 </B></TD>
    <TD align=middle width="50%"><B>Commission File number: 01-14830
  </B></TD></TR></TABLE>
<P align=center><B><FONT size=5>GILDAN ACTIVEWEAR INC. </FONT></B><BR><I>(Exact
name of registrant as specified in its charter) </I><BR></P>
<P align=center><B>Canada </B><BR><I>(Province or other jurisdiction of
incorporation or organization) </I><BR></P>
<P align=center><B>2200, 2250, 2300 </B><BR><I>(Primary standard industrial
classification code number, if applicable) </I><BR></P>
<P align=center><B>Not Applicable </B><BR><I>(I.R.S. employer identification
number, if applicable) </I><BR></P>
<P align=center><B>600 de Maisonneuve Boulevard West, Montreal, Quebec, Canada
H3A 3J2, (514) 735-2023 </B><BR><I>(Address and telephone number of registrant&#146;s
principal executive office) </I><BR></P>
<P align=center><B>Puglisi &amp; Associates, 850 Library Avenue, Suite 204, P.O.
Box 885, Newark, Delaware 19715, (302) 738-6680 </B><BR>(<I>Name, address and
telephone number of agent for service in the United States</I>) <BR></P>
<P align=center>Securities registered pursuant to Section 12(b) of the Act: </P>
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  <TR vAlign=top>
    <TD align=middle><U>Title of each class </U></TD>
    <TD align=middle width="50%"><U>Name of each exchange on which registered
      </U></TD></TR>
  <TR vAlign=top>
    <TD align=middle><B>Common Shares </B></TD>
    <TD align=middle width="50%"><B>New York Stock Exchange
</B></TD></TR></TABLE>
<P align=center>Securities registered or to be registered pursuant to Section
12(g) of the
Act:<B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp; None <BR></B>Securities for which there is a reporting obligation
pursuant to Section 15(d) of the Act:<B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; None
</B></P>
<P align=center>For annual reports, indicate by check mark the information filed
with this form: </P>
<TABLE
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  <TR vAlign=top>
    <TD align=middle>&nbsp;</TD>
    <TD align=left width="24%">[X]&nbsp;Annual Information Form </TD>
    <TD align=left width="24%">[X]&nbsp;Audited Annual Financial Statements
</TD>
    <TD align=middle width="24%">&nbsp;</TD></TR></TABLE>
<P align=center>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: </P>
<P align=center><B>Common Shares:</B><BR><B>121,330,544 </B><BR></P>
<P align=justify>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 12g3-2(b) under the Securities Exchange Act of
1934 (the "Exchange Act"). If "Yes" is marked, indicate the file number assigned
to the Registrant in connection with such Rule. </P>
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  <TR vAlign=top>
    <TD align=middle>Yes [&nbsp; ] </TD>
    <TD align=middle width="50%">No [X]</TD></TR></TABLE>
<P align=justify>Indicate by check mark whether the Registrant: (1) has filed
all reports required to be filed by Section 13 or 15(d) of the Exchange Act
during the preceding 12 months (or for such shorter period that the registrant
was required to file such reports); and (2) has been subject to such filing
requirements for the past 90 days. </P>
<TABLE
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  <TR vAlign=top>
    <TD align=middle>Yes [X]</TD>
    <TD align=middle width="50%">No [&nbsp; ] </TD></TR></TABLE><BR>
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src="aifx1x1.jpg"
border=0></P>
<P align=justify><B></B>&nbsp;</P>
<P align=justify>&nbsp;</P>
<P align=justify><STRONG></STRONG>&nbsp;</P>
<P align=justify><STRONG></STRONG>&nbsp;</P>
<P align=justify><STRONG></STRONG>&nbsp;</P>
<P align=center><B>GILDAN ACTIVEWEAR INC. </B></P>
<P align=center><B>ANNUAL INFORMATION FORM </B></P>
<P align=center>for the year ended October 2, 2011</P>
<P align=center>&nbsp;</P>
<P align=center>&nbsp;</P>
<P align=center>&nbsp;</P>
<P align=center>December 9, 2011</P>
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<P align=center><B>GILDAN ACTIVEWEAR INC. 2011 </B></P>
<P align=center><B>ANNUAL INFORMATION FORM</B></P>
<P align=center><B>TABLE OF CONTENTS </B></P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD align=left bgColor=#eeeeee><B>1.</B> </TD>
    <TD align=left width="91%" bgColor=#eeeeee><B>CORPORATE STRUCTURE</B> </TD>
    <TD align=left width="5%" bgColor=#eeeeee>&nbsp; </TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; </TD>
    <TD align=left width="91%"><B>1.1 Name, Address and Incorporation</B> </TD>
    <TD align=right width="5%"><B>1</B> </TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#eeeeee>&nbsp; </TD>
    <TD align=left width="91%" bgColor=#eeeeee><B>1.2 Intercorporate
      Relationships</B> </TD>
    <TD align=right width="5%" bgColor=#eeeeee><B>2</B> </TD></TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD width="91%">&nbsp; </TD>
    <TD width="5%">&nbsp; </TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#eeeeee><B>2.</B> </TD>
    <TD align=left width="91%" bgColor=#eeeeee><B>GENERAL DEVELOPMENT OF THE
      BUSINESS</B> </TD>
    <TD align=left width="5%" bgColor=#eeeeee>&nbsp; </TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; </TD>
    <TD align=left width="91%"><B>2.1 Recent Developments</B> </TD>
    <TD align=right width="5%"><B>2</B> </TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#eeeeee>&nbsp; </TD>
    <TD align=left width="91%" bgColor=#eeeeee><B>2.2 Developments in Fiscal
      2011</B> </TD>
    <TD align=right width="5%" bgColor=#eeeeee><B>3</B> </TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; </TD>
    <TD align=left width="91%"><B>2.3 Developments in Fiscal 2010</B> </TD>
    <TD align=right width="5%"><B>4</B> </TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#eeeeee>&nbsp; </TD>
    <TD align=left width="91%" bgColor=#eeeeee><B>2.4 Developments in Fiscal
      2009</B> </TD>
    <TD align=right width="5%" bgColor=#eeeeee><B>5</B> </TD></TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD width="91%">&nbsp; </TD>
    <TD width="5%">&nbsp; </TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#eeeeee><B>3.</B> </TD>
    <TD align=left width="91%" bgColor=#eeeeee><B>DESCRIPTION OF THE
      BUSINESS</B> </TD>
    <TD align=left width="5%" bgColor=#eeeeee>&nbsp; </TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; </TD>
    <TD align=left width="91%"><B>3.1 Business Overview</B> </TD>
    <TD align=right width="5%"><B>5</B> </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#eeeeee>&nbsp; </TD>
    <TD align=left width="91%" bgColor=#eeeeee><B>3.2 Risk Factors</B> </TD>
    <TD align=right width="5%" bgColor=#eeeeee><B>15</B> </TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; </TD>
    <TD align=left width="91%"><B>3.3 Employees</B> </TD>
    <TD align=right width="5%"><B>15</B> </TD></TR>
  <TR>
    <TD bgColor=#eeeeee>&nbsp; </TD>
    <TD width="91%" bgColor=#eeeeee>&nbsp; </TD>
    <TD width="5%" bgColor=#eeeeee>&nbsp; </TD></TR>
  <TR vAlign=top>
    <TD align=left><B>4.</B> </TD>
    <TD align=left width="91%"><B>DIVIDEND POLICY</B> </TD>
    <TD align=right width="5%"><B>15</B> </TD></TR>
  <TR>
    <TD bgColor=#eeeeee>&nbsp; </TD>
    <TD width="91%" bgColor=#eeeeee>&nbsp; </TD>
    <TD width="5%" bgColor=#eeeeee>&nbsp; </TD></TR>
  <TR vAlign=top>
    <TD align=left><B>5.</B> </TD>
    <TD align=left width="91%"><B>CAPITAL STRUCTURE</B> </TD>
    <TD align=left width="5%">&nbsp; </TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#eeeeee>&nbsp; </TD>
    <TD align=left width="91%" bgColor=#eeeeee><B>5.1 First Preferred
      Shares</B> </TD>
    <TD align=right width="5%" bgColor=#eeeeee><B>15</B> </TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; </TD>
    <TD align=left width="91%"><B>5.2 Second Preferred Shares</B> </TD>
    <TD align=right width="5%"><B>16</B> </TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#eeeeee>&nbsp; </TD>
    <TD align=left width="91%" bgColor=#eeeeee><B>5.3 Common Shares</B> </TD>
    <TD align=right width="5%" bgColor=#eeeeee><B>16</B> </TD></TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD width="91%">&nbsp; </TD>
    <TD width="5%">&nbsp; </TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#eeeeee><B>6.</B> </TD>
    <TD align=left width="91%" bgColor=#eeeeee><B>MARKET FOR SECURITIES</B>
</TD>
    <TD align=right width="5%" bgColor=#eeeeee><B>17</B> </TD>
  </TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD width="91%">&nbsp; </TD>
    <TD width="5%">&nbsp; </TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#eeeeee><B>7.</B> </TD>
    <TD align=left width="91%" bgColor=#eeeeee><B>DIRECTORS AND OFFICERS</B>
    </TD>
    <TD align=right width="5%" bgColor=#eeeeee><B>17</B> </TD></TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD width="91%">&nbsp; </TD>
    <TD width="5%">&nbsp; </TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#eeeeee><B>8.</B> </TD>
    <TD align=left width="91%" bgColor=#eeeeee><B>AUDIT COMMITTEE
      DISCLOSURE</B> </TD>
    <TD align=left width="5%" bgColor=#eeeeee>&nbsp; </TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; </TD>
    <TD align=left width="91%"><B>8.1 Mandate of the Audit and Finance
      Committee</B> </TD>
    <TD align=right width="5%"><B>21</B> </TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#eeeeee>&nbsp; </TD>
    <TD align=left width="91%" bgColor=#eeeeee><B>8.2 Composition of the Audit
      and Finance Committee</B> </TD>
    <TD align=right width="5%" bgColor=#eeeeee><B>21</B> </TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; </TD>
    <TD align=left width="91%"><B>8.3 Pre-Approval of Non-Audit Services</B>
    </TD>
    <TD align=right width="5%"><B>22</B> </TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#eeeeee>&nbsp; </TD>
    <TD align=left width="91%" bgColor=#eeeeee><B>8.4 External Auditor Service
      Fees</B> </TD>
    <TD align=right width="5%" bgColor=#eeeeee><B>22</B> </TD></TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD width="91%">&nbsp; </TD>
    <TD width="5%">&nbsp; </TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#eeeeee><B>9.</B> </TD>
    <TD align=left width="91%" bgColor=#eeeeee><B>LEGAL PROCEEDINGS</B> </TD>
    <TD align=right width="5%" bgColor=#eeeeee><B>23</B> </TD></TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD width="91%">&nbsp; </TD>
    <TD width="5%">&nbsp; </TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#eeeeee><B>10.</B> </TD>
    <TD align=left width="91%" bgColor=#eeeeee><B>TRANSFER AGENT AND
      REGISTRAR</B> </TD>
    <TD align=right width="5%" bgColor=#eeeeee><B>23</B> </TD></TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD width="91%">&nbsp; </TD>
    <TD width="5%">&nbsp; </TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#eeeeee><B>11.</B> </TD>
    <TD align=left width="91%" bgColor=#eeeeee><B>MATERIAL CONTRACTS</B> </TD>
    <TD align=right width="5%" bgColor=#eeeeee><B>23</B> </TD></TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD width="91%">&nbsp; </TD>
    <TD width="5%">&nbsp; </TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#eeeeee><B>12.</B> </TD>
    <TD align=left width="91%" bgColor=#eeeeee><B>INTERESTS OF EXPERTS</B> </TD>
    <TD align=right width="5%" bgColor=#eeeeee><B>24</B> </TD></TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD width="91%">&nbsp; </TD>
    <TD width="5%">&nbsp; </TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#eeeeee><B>13.</B> </TD>
    <TD align=left width="91%" bgColor=#eeeeee><B>FORWARD-LOOKING
      STATEMENTS</B> </TD>
    <TD align=right width="5%" bgColor=#eeeeee><B>24</B> </TD></TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD width="91%">&nbsp; </TD>
    <TD width="5%">&nbsp; </TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#eeeeee><B>14.</B> </TD>
    <TD align=left width="91%" bgColor=#eeeeee><B>ADDITIONAL INFORMATION</B>
    </TD>
    <TD align=right width="5%" bgColor=#eeeeee><B>25</B> </TD></TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD width="91%">&nbsp; </TD>
    <TD width="5%">&nbsp; </TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#eeeeee colSpan=2><B>APPENDIX A &#150; MANDATE OF THE
      AUDIT AND FINANCE COMMITTEE</B> </TD>
    <TD align=right width="5%" bgColor=#eeeeee><B>26</B>
</TD></TR></TABLE><BR>
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<P align=justify><I>This Annual Information Form is dated December 9, 2011 and,
except as otherwise indicated, the information contained herein is given as of
December 9, 2011.</I></P>
<P align=justify><I>Unless otherwise indicated, all dollar amounts set forth
herein are expressed in U.S. dollars and all financial information set forth
herein is prepared in accordance with Canadian generally accepted accounting
principles. </I></P>
<P align=justify><I>Unless otherwise indicated, all references to share prices,
trading volumes and per share measures are adjusted, on a retroactive basis, to
reflect all stock splits.</I></P>
<P align=justify><I>In this Annual Information Form, &#147;Gildan&#148;, the &#147;Company&#148; or
the words &#147;we&#148;, &#147;our&#148; and &#147;us&#148; refer, depending on the context, either to Gildan
Activewear Inc. or to Gildan Activewear Inc. together with its subsidiaries and
joint venture.</I></P>
<P align=justify><I>The information appearing in the extracts of the documents
listed below and specifically referred to in this Annual Information Form is
incorporated herein by reference:</I></P>
<UL style="TEXT-ALIGN: justify">
  <LI><I>Audited Consolidated Financial Statements as at and for the year ended
  October 2, 2011 (the &#147;2011</I> <I>Financial Statements&#148;);</I> <BR>&nbsp;
  <LI><I>Management&#146;s Discussion and Analysis for the year ended October 2, 2011
  (the &#147;2011 Annual</I> <I>MD&amp;A&#148;);</I> <BR>&nbsp;
  <LI><I>The Business Acquisition Report filed on June 27, 2011 in connection
  with the acquisition of Gold Toe</I> <I>Moretz Holdings Corp. on April 15,
  2011; and</I> <BR>&nbsp;
  <LI><I>The latest Notice of Annual Meeting of Shareholders and Management
  Proxy Circular filed on</I> <I>SEDAR.</I> </LI></UL>
<P align=justify><I>The foregoing documents are available on the SEDAR website
at www.sedar.com, on the EDGAR website at www.sec.gov and on the Company&#146;s
website at www.gildan.com/corporate.</I></P>
<P align=justify><I>This Annual Information Form contains certain
forward-looking statements that are based on Gildan&#146;s current expectations,
estimates, projections and assumptions and that 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 24 and 25 of this Annual Information
Form for further explanation. </I></P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR>
    <TD vAlign=top width="5%"><B>1.</B> </TD>
    <TD>
      <P align=justify><B>CORPORATE STRUCTURE</B></P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top width="5%"><B>1.1</B> </TD>
    <TD>
      <P align=justify><B>Name, Address and
Incorporation</B></P></TD></TR></TABLE>
<P align=justify>We were incorporated on May 8, 1984 pursuant to the <I>Canada
Business Corporations Act </I>under the name of Textiles Gildan Inc. At our
inception, we focused our activities on the manufacture of textiles and produced
and sold finished fabric as a principal product-line. In 1992, we redefined our
operating strategy and, by 1994, our operations focused exclusively on the
manufacture and sale of activewear in the screenprint channel. In March 1995, we
changed our name to Gildan Activewear Inc./Les V&#234;tements de Sports Gildan Inc.
In 2005, we changed our French name to Les V&#234;tements de Sport Gildan Inc.</P>
<P align=justify>In June 1998, in conjunction with a planned initial public
offering, we filed Articles of Amendment to, among other things, remove the
private company restrictions contained in our charter documents and change the
structure of our authorized share capital. On June 17, 1998, we completed our
initial public offering of an aggregate of 3,000,000 Class A Subordinate Voting
shares at Cdn$10.29 per share, on a pre-split basis, for total gross proceeds of
Cdn$30,880,500. </P>
<P align=justify>On February 2, 2005, we filed Articles of Amendment in order
to, among other things, (i) create a new class of common shares (the &#147;Common
Shares&#148;), (ii) change each of the issued and outstanding Class A Subordinate
Voting shares into one of the newly-created Common Shares, and (iii) remove the
Class B Multiple Voting shares and the Class A Subordinate Voting shares as well
as the rights, privileges, restrictions and conditions attaching </P>
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<P align=justify>thereto. On February 10, 2011, we filed Articles of Amendment
in order to change the maximum number of directors from ten to twelve.</P>
<P align=justify>Our principal executive offices and registered office are
located at 600 de Maisonneuve Boulevard West, 33<SUP>rd </SUP>Floor, Montreal,
Qu&#233;bec, Canada H3A 3J2, and our telephone number at that address is (514)
735-2023.</P>
<P align=justify>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR>
    <TD vAlign=top width="5%"><B>1.2</B></TD>
    <TD>
      <P align=justify><B>Intercorporate
Relationships</B></P></TD></TR></TABLE></P>
<P align=justify>The following table indicates our principal subsidiaries, their
jurisdiction of incorporation and the percentage of voting securities that we
beneficially own or over which we exercise direct or indirect control:</P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD align=center valign="middle" bgcolor="#F3F3F3"><B>Subsidiary</B> </TD>
    <TD width="20%" align=center valign="middle" bgcolor="#F3F3F3"><B>Jurisdiction
      of</B><BR>
    <B>Incorporation</B> </TD>
    <TD width="30%" align=center valign="middle" bgcolor="#F3F3F3"><B>Percentage of Voting Securities or
      Partnership</B><BR>
      <B>Interests that Gildan held as at</B><BR><B>December
      9, 2011</B> </TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Gildan Activewear SRL </TD>
    <TD align=center width="20%" bgColor=#e6efff>Barbados </TD>
    <TD align=center width="30%" bgColor=#e6efff>100% </TD></TR>
  <TR vAlign=top>
    <TD align=left>Gildan USA Inc. </TD>
    <TD align=center width="20%">Delaware </TD>
    <TD align=center width="30%">100% </TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Gildan Choloma Textiles, S. de R.L. </TD>
    <TD align=center width="20%" bgColor=#e6efff>Honduras </TD>
    <TD align=center width="30%" bgColor=#e6efff>100% </TD></TR>
  <TR vAlign=top>
    <TD align=left>Gildan Activewear Dominican Republic Textile Company Inc.
    </TD>
    <TD align=center width="20%">Barbados </TD>
    <TD align=center width="30%">100% </TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Gildan Activewear Honduras Textile Company,
      S. de R.L. </TD>
    <TD align=center width="20%" bgColor=#e6efff>Honduras </TD>
    <TD align=center width="30%" bgColor=#e6efff>100% </TD></TR>
  <TR vAlign=top>
    <TD align=left>Gildan Honduras Hosiery Factory, S. de R.L. </TD>
    <TD align=center width="20%">Honduras </TD>
    <TD align=center width="30%">100% </TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Gildan Activewear Properties (Dominican
      Republic) Inc. </TD>
    <TD align=center width="20%" bgColor=#e6efff>Barbados </TD>
    <TD align=center width="30%" bgColor=#e6efff>100% </TD></TR>
  <TR vAlign=top>
    <TD align=left>Gildan Activewear (UK) Limited </TD>
    <TD align=center width="20%">United Kingdom </TD>
    <TD align=center width="30%">100% </TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Gildan Hosiery Rio Nance, S. de R.L. </TD>
    <TD align=center width="20%" bgColor=#e6efff>Honduras </TD>
    <TD align=center width="30%" bgColor=#e6efff>100% </TD></TR>
  <TR vAlign=top>
    <TD align=left>GoldToeMoretz, LLC </TD>
    <TD align=center width="20%">Delaware </TD>
    <TD align=center width="30%">100% </TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Gildan Honduras Properties, S. de R.L. </TD>
    <TD align=center width="20%" bgColor=#e6efff>Honduras </TD>
    <TD align=center width="30%" bgColor=#e6efff>100% </TD></TR>
  <TR vAlign=top>
    <TD align=left>Gildan Mayan Textiles, S. de R.L. </TD>
    <TD align=center width="20%">Honduras </TD>
    <TD align=center width="30%">100% </TD></TR></TABLE>
<P align=justify>The subsidiaries that have been omitted do not represent
individually more than 10% of the consolidated assets and 10% of the
consolidated revenue of Gildan, or in the aggregate more than 20% of the total
consolidated assets and the consolidated revenue as at and for the year ended
October 2, 2011.</P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR>
    <TD vAlign=top width="5%"><B>2.</B> </TD>
    <TD>
      <P align=justify><B>GENERAL DEVELOPMENT OF THE
  BUSINESS</B></P></TD></TR></TABLE>
<P align=justify>The following section describes how our business has evolved in
the last three completed financial years and lists key events that have
influenced the development of our business.</P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR>
    <TD vAlign=top width="5%"><B>2.1</B> </TD>
    <TD>
      <P align=justify><B>Recent Developments</B></P></TD></TR></TABLE>
<UL style="TEXT-ALIGN: justify">
  <LI>Short-term promotional discounting in the U.S. wholesale distributor
  channel began to increase at the end of the fourth quarter of fiscal 2011 and
  has continued to increase in the first quarter of fiscal 2012 despite the fact
  that industry suppliers have not yet consumed high cost cotton inventories. In
  addition, in the first quarter of fiscal 2012, distributors have been
  supplying screenprinter demand without replenishing inventory levels, which we
  believe was mainly due to the anticipation by distributors of selling price
  reductions from suppliers. Weak market conditions in the retail channel are
  also reflecting delayed replenishment of inventories by retailers. In order to
  enable distributors to plan their business and to stimulate screenprinter
  demand for Gildan products, on November 30, 2011, Gildan announced a reduction
  in selling prices in the U.S. distributor channel, effective December 5, 2011.
  In addition, Gildan concurrently announced its intention to apply the benefit
  of the price reduction to existing distributor inventories, which is projected
  to result in a distributor </LI></UL>
<P align=center>2</P>
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<UL style="TEXT-ALIGN: justify">inventory devaluation discount of
  approximately $17 million, and which will be recorded as a reduction to net
  sales during the first quarter of fiscal 2012. <BR>&nbsp;
  <LI>On November 30, 2011, Gildan&#146;s Board of Directors declared a cash dividend
  of $0.075 per share for an expected aggregate payment of $9.1 million, which
  will be paid on January 6, 2012 on all of the issued and outstanding Common
  Shares, rateably and proportionately to the shareholders of record on December
  15, 2011. <BR>&nbsp;
  <LI>On December 2, 2011, the Toronto Stock Exchange (&#147;TSX&#148;) approved the
  renewal of Gildan&#146;s normal course issuer bid to purchase up to a maximum of
  1,000,000 Common Shares, representing approximately 0.8% of its issued and
  outstanding Common Shares as at November 30, 2011. Any purchases under the
  renewed bid will be made during the period from December 6, 2011 to December
  5, 2012, or until such time as the bid is completed or terminated at the
  Company&#146;s option. Purchases will be made on the open market on both the TSX
  and the New York Stock Exchange (&#147;NYSE&#148;). Under the bid, the Company may
  purchase up to a maximum of 107,619 Common Shares daily, which represents 25%
  of the average daily trading volume on the TSX for the most recently completed
  six calendar months. The price to be paid will be the market price of the
  Common Shares on the stock exchange on which such Common Shares are purchased
  at the time of acquisition. Common Shares purchased under the bid will be
  cancelled. As at November 30, 2011, there were 121,410,406 Common Shares
  issued and outstanding. <BR>&nbsp;
  <LI>In the event that, during the course of the normal course issuer bid, the
  Common Shares trade at a price range that does not adequately reflect their
  value in relation to the Company&#146;s assets, business and future business
  prospects, the Company believes that the purchase of up to 1,000,000 of its
  outstanding Common Shares made under the normal course issuer bid will
  represent an appropriate use of the Company&#146;s corporate funds, while still
  preserving its financing flexibility to pursue potential growth opportunities.
  <BR>&nbsp;
  <LI>Beginning in the first quarter of fiscal 2012, the Company will begin
  reporting its business under two separate operating business segments, in line
  with the new operating and internal financial reporting structure of the
  Company. Gildan is now structured as two operating businesses that reflect the
  major customer market segments that it serves, each of which has
  accountability for its financial performance and return on capital.
  Previously, we managed and reported our operating performance under one
  reportable business segment, being high-volume, basic, frequently-replenished,
  non-fashion apparel. The following summary describes the operations of each of
  the Company&#146;s reportable segments starting in fiscal 2012: <BR>&nbsp;
  <UL style="TEXT-ALIGN: justify">
    <LI>Screenprint: The screenprint business, headquartered in Barbados,
    designs, manufactures and distributes undecorated activewear products
    primarily to wholesale distributors and other screenprint markets in the
    U.S., Canada and international markets such as Europe, Mexico and the
    Asia-Pacific region. <BR>&nbsp;
    <LI>Retail: The retail business, headquartered in Charleston, South
    Carolina, designs, manufactures, sources and distributes socks, underwear,
    as well as activewear products, primarily to U.S. retailers.
</LI></UL></LI></UL>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR>
    <TD vAlign=top width="5%"><B>2.2</B> </TD>
    <TD>
      <P align=justify><B>Developments in Fiscal
2011</B></P></TD></TR></TABLE>
<UL>
  <LI>
  <P align=justify>In the first half of fiscal 2011, we experienced a recovery
  in demand in our target screenprint markets. However, starting with the third
  quarter of fiscal 2011, market conditions weakened and demand in the U.S.
  wholesale distributor channel declined approximately 8% in the second half of
  fiscal 2011. Towards the latter part of fiscal 2010 we began to see a dramatic
  increase in cotton prices which peaked to historical new highs during fiscal
  2011. In response to the significant increase in cotton costs, apparel
  suppliers, including Gildan, implemented successive price increases beginning
  in the fourth quarter of fiscal 2010 and during fiscal 2011. During the second
  half of fiscal 2011, cotton future prices began a rapid and significant
  decline, but with no immediate benefit on industry costs as existing
  manufacturer inventories continue to reflect cotton purchased at the
  previously higher levels of cotton prices. Despite existing high cost cotton
  in manufacturer inventories, short-term promotional discounting began to
  increase in the U.S. distributor channel at the end of the fourth quarter of
  fiscal 2011. Please see update provided under &#147;Recent Developments&#148;
  above.</P>
  </LI></UL>
<P align=center>3</P>
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<UL style="TEXT-ALIGN: justify">
  <LI>On December 1, 2010, the Company&#146;s Board of Directors approved the
  introduction of a quarterly cash dividend in the amount of U.S. $0.075 per
  share payable on all issued and outstanding Common Shares. During fiscal 2011,
  the Company paid an aggregate of $27.5 million of dividends. <BR>&nbsp;
  <LI>On December 1, 2010, the Company&#146;s Board of Directors also approved the
  reinstatement of a normal course issuer bid to repurchase up to 1,000,000
  outstanding Common Shares of the Company on the TSX and the NYSE. The Company
  was authorized to make purchases under the bid during the period from December
  6, 2010 to December 5, 2011 or until such time as the bid was completed or
  terminated at the Company&#146;s option. The price paid was the market price of the
  Common Shares on the stock exchange on which the shares were purchased at the
  time of acquisition. During fiscal 2011, the Company purchased 400,000 Common
  Shares under the bid for an aggregate amount of approximately $10.5 million.
  The Common Shares purchased under the bid were cancelled. <BR>&nbsp;
  <LI>On April 15, 2011, the Company acquired 100% of the capital stock of Gold
  Toe Moretz Holdings Corp. (&#147;Gold Toe Moretz&#148;), for an aggregate cash
  consideration of $349.6 million. Gold Toe Moretz is a leading supplier of
  high-quality branded athletic, casual and dress socks for national chains,
  mass-market retailers, price clubs, department stores and specialty sporting
  goods stores in the United States. The acquisition was initially financed
  using $100 million of cash on hand and $250 million drawn on Gildan&#146;s
  revolving credit facility. An additional purchase price consideration of up to
  150,000 common shares is contingent on specified future events. The
  acquisition of Gold Toe Moretz represents an important step in our ongoing
  strategic development in retail. In addition to the introduction of leading
  consumer brands, the acquisition significantly expands and diversifies our
  channels of distribution across the broad spectrum of the U.S. retail channel.
  <BR>&nbsp;
  <LI>During fiscal 2011, the Company completed the construction of its third
  textile manufacturing facility in Honduras, Rio Nance 5, and commenced
  operations at the end of the fiscal year. <BR>&nbsp;
  <LI>During fiscal 2011, the Company consolidated U.S. sock manufacturing
  operations from its V.I. Prewett &amp; Son, Inc. (&#147;Prewett&#148;) subsidiary, which
  was acquired in fiscal 2008, to its Central American manufacturing hub.
<BR>&nbsp;
  <LI>During fiscal 2011, the Company increased its long-term unsecured
  revolving bank credit facility to $800 million from $400 million and extended
  the maturity date to June 2016 from June 2013. </LI></UL>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR>
    <TD vAlign=top width="5%"><B>2.3</B> </TD>
    <TD>
      <P align=justify><B>Developments in Fiscal
2010</B></P></TD></TR></TABLE>
<UL style="TEXT-ALIGN: justify">
  <LI>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. The recessionary conditions from the severe
  economic downturn in fiscal 2009 followed by the economic recovery, however,
  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
  dramatic increase in cotton prices which continued to increase in fiscal 2011
  and led to the commencement of selling price increases by apparel suppliers in
  order to mitigate the impact of increased raw material and other input costs.
  <BR>&nbsp;
  <LI>During fiscal 2010, we commenced the ramp-up of production at our new sock
  manufacturing facility in Honduras, Rio Nance 4. <BR>&nbsp;
  <LI>As an initial step towards the establishment of a manufacturing hub to
  support our growth in target markets in Asia and Europe, on March 31, 2010, we
  acquired a vertically-integrated manufacturing facility for the production of
  activewear in Bangladesh. <BR>&nbsp;
  <LI>During fiscal 2010, we made progress with our strategic initiative to
  penetrate the retail channel. We obtained new activewear and underwear
  programs, including our first major men&#146;s underwear program for Walmart under
  the Starter brand. <BR>&nbsp;
  <LI>During fiscal 2010, we completed the construction of a biomass steam
  generation system in the Dominican Republic, which became operational during
  the year and initiated the construction of similar biomass steam </LI></UL>
<P align=center>4</P>
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<UL style="TEXT-ALIGN: justify">generation projects at our sock manufacturing
  facilities in Honduras. These projects are expected to contribute to the
  reduction of our energy consumption and related costs. <BR>&nbsp;
  <LI>On November 17, 2009, we completed the acquisition of a distribution
  centre and office building in Charleston, South Carolina, for approximately
  $20 million. During fiscal 2010, we began to consolidate our retail sales,
  marketing and distribution activities at this location and proceeded with the
  closure of our distribution centres at Martinsville, Virginia and Fort Payne,
  Alabama. <BR>&nbsp;
  <LI>During fiscal 2010, the Company acquired a new office building in Barbados
  for approximately $20 million, and moved its offices, including the sales and
  marketing functions of its screenprint business, to this location. <BR>&nbsp;
  <LI>On January 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. 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. The Company received insurance proceeds
  of $8 million during the fourth quarter of fiscal 2010 which compensated in
  part for losses sustained as a result of the impact of the Haiti earthquake.
  </LI></UL>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR>
    <TD vAlign=top width="5%"><B>2.4</B> </TD>
    <TD>
      <P align=justify><B>Developments in Fiscal
2009</B></P></TD></TR></TABLE>
<UL style="TEXT-ALIGN: justify">
  <LI>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., Canadian and international screenprint  markets, and which also resulted in significant inventory destocking at the  U.S. distributor level.&nbsp; Weaker demand  and customer inventory reductions also occurred in the mass-market retail  channel. 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 took short intervals of production downtime during the year at  most of our production facilities in order to better align our inventory levels  with the weaker sales demand. In the context of the weak economic environment,  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.  Consequently, during fiscal 2009, we took a decision to temporarily stop  replenishing our largest wholesale distributor as it underwent a process to  restructure its debt financing. Furthermore, the Company proceeded cautiously  on capacity expansion projects previously announced by delaying certain  projects until the economic outlook in support of further major capacity  expansion became clearer. <br>
  &nbsp;
  <LI>During fiscal  2009, we continued to consolidate our U.S.  manufacturing operations to our manufacturing hub in Central America, including  the transition of our U.S.  sock finishing operations, which were purchased as part of the Prewett  acquisition.<br>
  &nbsp;
  <LI>In early fiscal 2009, we were granted a business  license by the Chinese government to operate as Gildan (China) Trading Co., Ltd. This  corporation has been established to import and sell Gildan products to  customers in mainland China.  In fiscal 2009, we moved our distribution activities from Shenzhen,  China to a new distribution  centre in China near Shanghai to better service the initial customer base  predominantly located in the Northern provinces  of China.  Gildan is focusing on building its brand in both the retail and screenprint  channels in China.
  </UL>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR>
    <TD vAlign=top width="5%"><B>3.</B> </TD>
    <TD>
      <P align=justify><B>DESCRIPTION OF THE BUSINESS</B></P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top width="5%"><B>3.1</B> </TD>
    <TD>
      <P align=justify><B>Business Overview</B></P></TD></TR></TABLE>
<P align=justify>We are a marketer and global low-cost vertically-integrated
manufacturer of quality branded basic apparel. We service customers requiring an
efficient supply chain and consistent product quality for high-volume
replenishment programs. Gildan&#174; is the leading brand of activewear for the
screenprint channel in the U.S. and Canada and the Company is continuing to grow
its presence in Europe, Mexico and the Asia-Pacific region. We are also one of
the world&#146;s largest suppliers of branded and private label athletic, casual and
dress socks sold to a broad spectrum of retailers in the U.S. For the year ended
October 2, 2011 and prior years, the Company operated in one business segment,
being high-volume, basic and frequently replenished apparel. Beginning in the
first quarter of fiscal 2012, the Company began managing and reporting the
operating results of its business under two separate financial reporting
segments, &#147;Screenprint&#148; and &#147;Retail&#148;.</P>
<P align=justify>The Company&#146;s net sales for fiscal 2011 reached $1,726.0
million.</P>
<P align=center>5</P>
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<P align=justify><B>Strategy and Objectives </B></P>
<P align=justify>Our growth strategy comprises the following initiatives: </P>
<UL style="TEXT-ALIGN: justify">
  <LI><I>Maximize screenprint market penetration and
  opportunities<BR>&nbsp;</I><BR>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 screenprint market.
  In particular, we intend to continue to pursue further penetration of the
  Gildan&#174; brand in the U.S. distributor screenprint channel as we expand our
  production capacity. 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 servicing certain niches of the screenprint
  channel in which we previously did not participate.<BR><BR>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
  that 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 to support our projected growth, and
  allocate more 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 potential development over time of a
  vertically-integrated manufacturing hub in Bangladesh, is intended to support
  our strategy to grow our international business in Asia and Europe. <br>
  &nbsp;<BR>
  <LI><I>Leverage our successful business model to further penetrate the retail
  channel<BR></I><BR>We intend to continue to leverage our existing core
  competencies, successful business model and competitive strengths to further
  penetrate the U.S. retail channel. As in the screenprint channel, success
  factors in penetrating the retail channel include consistent quality,
  competitive pricing and fast and flexible replenishment due to our
  geographical proximity to our markets, together with our commitment to
  corporate social responsibility and environmental sustainability. We are a
  leading supplier of socks in the U.S. mass- market retail channel, and intend
  to continue to build our market share position in socks, activewear and
  underwear in retail. Within the mass-market retail channel, we have positioned
  the Company as a strategic supplier of products sold under selective national
  retailers&#146; private label brands. We also sell our products in the retail
  channel under the Gildan&#174; brand and, with the acquisition of Gold Toe Moretz,
  we have significantly expanded our brand portfolio as described under the
  section entitled &#147;Our Products and Markets&#148;. We are increasingly focusing on
  the steady development of our company-owned and exclusively licensed brands,
  including the sale of products with the Gildan&#174; label to retailers. The
  acquisition of Gold Toe Moretz represents an important step in our ongoing
  strategic development in retail. In addition to the introduction of leading
  consumer brands, the acquisition significantly expands and diversifies our
  channels of distribution across the broad spectrum of the U.S. retail channel.
  Additionally, this acquisition provides enhanced brand management expertise
  which can be utilized to further the development of the Gildan&#174; brand.
  Furthermore, we intend to leverage Gildan&#146;s manufacturing scale and expertise
  to support the further development of Gold </LI></UL>
<P align=center>6</P>
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<UL style="TEXT-ALIGN: justify">Toe Moretz&#146;s owned and licensed brands to
  create further sales growth opportunities in socks and other retail product
  categories. <BR>&nbsp;
  <LI><I>Continue to generate manufacturing and distribution cost
  reductions<BR>&nbsp;</I><BR>We continuously seek to improve our manufacturing
  and distribution processes and cost structure by developing and investing in
  projects for cost-reduction, as well as for further product quality
  enhancement. We continue to execute 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 environmental sustainability. The acquisition of Gold Toe Moretz
  also creates the potential to achieve cost synergies by combining the
  operations of both companies and integrating certain high-volume products
  supplied by Gold Toe Moretz into Gildan&#146;s vertically-integrated sock
  manufacturing in Honduras. <BR>&nbsp;
  <LI><I>Reinvest cash flow<BR></I>&nbsp;<BR>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, as well as our
  dividend requirements, 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. </LI></UL>
<P align=justify><B>Our Products and Markets</B></P>
<P align=justify>In the screenprint channel, we manufacture and distribute
T-shirts, fleece and sport shirts in undecorated &#147;blank&#148; form primarily under
our industry leading Gildan&#174; brand in large quantities which are primarily sold
to wholesale distributors, which are subsequently sold to screenprinters and
embroiderers who decorate the products with designs and logos. Screenprinters
and embroiderers 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 also provide undecorated products to
large branded apparel companies and retailers that sell imprinted activewear and
are currently not supplied by our existing U.S. wholesale distributors.</P>
<P align=justify>In the U.S. mass-market and other retailer channels, the
majority of our sales consist of a variety of styles and brands of socks. We
supply various private label and branded sock programs and we are increasingly
focused on developing the Gildan&#174; brand within the retail channel. With the
recent acquisition of Gold Toe Moretz effective April 15, 2011, we now sell a
variety of branded athletic, casual and dress socks to national chains,
mass-market retailers, price clubs, department stores and specialty sporting
goods stores in the United States. The Gold Toe Moretz brand portfolio includes
the core Gold Toe&#174; brand, which has high consumer brand recognition in national
chains, department stores, and price clubs; the SilverToe&#174; brand for a national
chain; the GT&#174; brand which we believe has potential for development in the
mass-market; the PowerSox&#174; athletic performance brand which is mainly
distributed through sports specialty retailers and national chains; the Auro&#174;
dress and casual brand for the mass-market; and, All Pro&#174;, an athletic sock
brand for the mass-market. In addition, we have licensing relationships with
Under Armour&#174; and New Balance&#174; as the exclusive U.S. sock licensee for these
brands. We are also pursuing a strategy to grow our sales of underwear and
activewear products in the U.S. retail market, particularly under our
company-owned brands.</P>
<P align=justify>The vast majority 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 vast 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.</P>
<P align=justify>Our value proposition is based on providing consistent high
quality, competitive pricing and fast and flexible replenishment together with
our commitment to corporate social responsibility and environmental
sustainability. </P>
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<P align=justify>As a vertically-integrated producer which owns and operates the
majority of its manufacturing facilities, we are 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 for the products we produce.
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 allow Gildan to deliver
enhanced product features for its sock products. These innovations have resulted
in further improving the value proposition of both our activewear and sock
products to our customers.</P>
<P align=justify>Activewear and underwear represented 81% of our sales in fiscal
2011, whereas they represented 83% in fiscal 2010. Socks represented 19% of our
sales in fiscal 2011, whereas they represented 17% in fiscal 2010.</P>
<P align=justify><B>Competitive Environment</B></P>
<P align=justify>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,
strategically-located manufacturing hubs which allows us to increase the
efficiency of our operations and reduce costs, and to offer competitive pricing,
consistent product quality, and a reliable supply chain which efficiently
services replenishment programs with short production/delivery cycle times. Our
acquisition of Gold Toe Moretz complements Gildan&#146;s competitive strengths with
enhanced brand management experience and expertise, merchandising, technical
innovation, design and sourcing capabilities. Our commitment to leading
environmental and social responsibility practices is also an increasingly
important factor for our customers.</P>
<P align=justify>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. In addition, our Gold Toe Moretz and licensed sock brands for the retail
channel, compete with brands which are owned or licensed by companies that
manufacture and/or source socks, such as Renfro Corporation, as well as brands
from well-established U.S. fashion apparel and athletic companies, which
primarily source their products from Asia. 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.</P>
<P align=justify><B>Customers</B></P>
<P align=justify>In fiscal 2011, we sold our products in the United States,
Canada and Europe and other international markets, which accounted for 89%, 4%
and 7% 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 24 to the 2011 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 2011, our largest customer accounted for 19.4% of our total
sales, and our top ten customers accounted for 61.1% of our total sales in the
retail and screenprint channels.</P>
<P align=justify>The large majority of total sales in fiscal 2011 continued to
be made in the screenprint channel through our wholesale distributors. Although
we have long-term ongoing relationships with many of our customers, our
contracts with our customers do not require them to purchase a minimum quantity
of our products. Instead, we assess their projected requirements and then plan
our production and marketing strategy accordingly.</P>
<P align=justify><B>Manufacturing Operations</B></P>
<P align=justify>To support our sales in the North American and international
markets in which we compete, we have developed two main manufacturing hubs in
Central America and the Caribbean Basin where we have built modern textile
manufacturing facilities for the production of activewear and underwear fabric,
as well as sock manufacturing facilities. We also operate sewing facilities
which support the fabric production from our textile facilities. The Company
also owns a vertically-integrated manufacturing facility for the production of
activewear in Bangladesh, </P>
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<P align=justify>which was acquired in fiscal 2010 as an initial step towards
the potential establishment of a manufacturing hub to support our growth in
targeted markets in Asia and Europe.</P>
<P align=justify><I>Central American Manufacturing Hub </I></P>
<P align=justify>Our largest manufacturing hub is based in Honduras and includes
three vertically-integrated textile facilities (Rio Nance 1, Rio Nance 2 and Rio
Nance 5). During fiscal 2011, we completed the construction of our Rio Nance 5
textile facility and commenced operations at the end of the fiscal year. The
textiles produced at the Rio Nance complex are sewn in our sewing facilities in
Honduras and Nicaragua. At the same complex, we have also constructed and
operate two integrated sock manufacturing facilities (Rio Nance 3 and Rio Nance
4). Rio Nance 4 is our most recent sock facility which began production in April
2010 and is expected to support future sales growth in the sock category,
provide the opportunity to consolidate some of the third-party sourced products
sold under the Gold Toe Moretz brands and position us to reduce our sock
manufacturing costs.</P>
<P align=justify><I>Caribbean Basin Manufacturing Hub </I></P>
<P align=justify>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. </P>
<P align=justify><B>Sourcing Operations</B></P>
<P align=justify>The acquisition of Gold Toe Moretz significantly expands our
sourcing capabilities. Gold Toe Moretz has longstanding product sourcing network
relationships and expertise which are expected to complement Gildan&#146;s large
scale, vertically-integrated manufacturing. The majority of the Gold Toe Moretz
products are currently sourced from third-party suppliers, primarily in Asia.
Gold Toe Moretz operates sourcing offices in Asia to facilitate sourcing
decisions and supply chain management. Gildan is exploring opportunities to
utilize Gold Toe Moretz&#146;s sourcing network to introduce new products within its
existing channels of distribution.</P>
<P align=justify><B>Yarn-Spinning</B></P>
<P align=justify>We source our yarn requirements primarily from the U.S., from
third-party yarn suppliers with whom we have supply agreements, as well as from
our joint venture, CanAm Yarns, LLC (&#147;CanAm&#148;), which operates yarn-spinning
facilities in Georgia and North Carolina, United States.</P>
<P align=justify><B>Sales, Marketing and Distribution </B></P>
<P align=justify>Our sales and marketing office which services our global
screenprint markets is located in Christ Church, Barbados. We operate our retail
sales and marketing activities primarily from our Charleston, South Carolina
location. Our sales and marketing 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.</P>
<P align=justify>We distribute our activewear products for the screenprint
channel primarily out of our distribution centre in Eden, North Carolina. We
also use third-party warehouses in the western United States, Canada, Mexico,
Europe and Asia to service our customers in these markets. Distribution
activities related to servicing retail customers are primarily conducted out of
our distribution centre in Charleston, South Carolina. In addition, with the
acquisition of Gold Toe Moretz, we service some of our retail customers from
retail distribution facilities in North Carolina, some of which are expected to
be consolidated and transitioned to the Charleston distribution centre. Gold Toe
Moretz also owns and operates retail stores located in outlet malls throughout
the United States. Since the acquisition of Gold Toe Moretz, two additional
outlet stores were opened bringing the total number of retail stores to 31.</P>
<P align=justify><B>Raw Materials</B></P>
<P align=justify>Cotton and polyester fibres are the main raw materials used in
the manufacturing of our products. Cotton is used in the manufacturing of both
100% cotton yarn and blended yarn, while polyester is used in the manufacturing
of blended yarn only. The majority of the cotton fibre used in the manufacturing
of yarn for Gildan is typically </P>
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<P align=justify>purchased on Gildan&#146;s behalf by our yarn suppliers for future
delivery at pre-determined prices under contracts as deemed appropriate by
management. Polyester pricing is negotiated directly with suppliers on an annual
basis subject to the price variability of certain polyester components.</P>
<P align=justify>During fiscal 2011, 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. Our yarn
requirement for our Bangladesh operations is supplied by local and regional
spinners. We expect that most of our yarn requirements will continue to be met
by these sources. </P>
<P align=justify>The primary sources of energy consumed in our manufacturing
facilities are (i) bunker fuel, natural gas, and biomass, which are used to
generate steam required in the production process, and (ii) electricity which is
used to power production equipment. The bunker fuel used in our operations is
supplied by local third-party suppliers, and the pricing is highly dependent on
international market prices for bunker fuel. Natural gas is used in our
operations in the Dominican Republic and Bangladesh, and is obtained from local
third-party suppliers. Biomass, derived from agricultural waste, is sourced from
private third-party suppliers, and provides an increasingly significant source
of energy for our operations in both the Dominican Republic and Honduras. We
anticipate that our consumption needs of biomass will increase progressively
over the next few years. During fiscal 2009, we began construction of a biomass
steam generation system in the Dominican Republic, which began operating as of
March 2010 and has contributed to the reduction of the energy costs associated
with our textile production in the Dominican Republic. In addition, during
fiscal 2010, we completed 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. In
the third quarter of 2011, we began the construction of a biomass steam
generation facility to support our textile facilities in Honduras, which is
expected to be completed and operational in the second quarter of 2012. The
electricity requirements at our two main production complexes, located in
Honduras and the Dominican Republic, are provided by public utility companies.
Electricity rates are variable and are, in part, related to underlying oil
prices.</P>
<P align=justify>We also purchase chemicals, dyestuffs and trims through a
variety of suppliers. These products have historically been available in
sufficient supply.</P>
<P align=justify><B>Management Information Systems </B></P>
<P align=justify>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. Due to our increasing dependence on the availability of our
computer systems to support our operations, we plan to continue, in fiscal 2012,
to implement initiatives to enhance our information technology (&#147;IT&#148;) processes
and infrastructure based on the Information Technology Infrastructure Library, a
framework of &#147;best practices&#148; approaches intended to facilitate the delivery of
high-quality IT services.</P>
<P align=justify>The Gildan JD Edwards ERP World 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.</P>
<P align=justify><B>Seasonality and Other Factors Affecting the Variability of
Results and Financial Condition</B></P>
<P align=justify>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.</P>
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<P align=justify>Historically, we have typically 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. During fiscal 2010,
the massive earthquake that struck Haiti impacted our sewing contractors&#146;
operations resulting in a temporary loss of production. This, combined with the
recovery in demand during fiscal 2010, prevented the Company from adequately
rebuilding inventories to optimal levels by the end of the year. Fiscal 2011
began with sub optimal levels of inventories and the continuation of the strong
recovery in demand in the first half of the year did not allow the Company to
rebuild its inventories until the fourth quarter of fiscal 2011.</P>
<P align=justify>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. </P>
<P align=justify>Management decisions to consolidate or reorganize operations,
including the closure of facilities, may also result in significant
restructuring costs in an interim or annual period. Refer to the section of the
2011 Annual MD&amp;A entitled &#147;Restructuring and Acquisition-Related Costs&#148; for
the details of restructuring costs incurred during fiscal 2011, 2010 and 2009.
In addition, the effect of asset write-downs, including provisions for bad debts
and slow moving inventories, can affect the variability of our results.</P>
<P align=justify>Our reported amounts for sales, selling, general and
administrative expenses, and financial expense/income 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 2011 Annual MD&amp;A. The Company
may periodically use derivative financial instruments to manage risks related to
fluctuations in foreign exchange rates.</P>
<P align=justify><B>Trade Regulation</B></P>
<P align=justify>As a multinational corporation, we are affected by
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.</P>
<P align=justify>The United States, Canada and Mexico have implemented several
free trade agreements and trade preference programs to enhance trade with their
trading partners. There exist a number of regional trade agreements and
preference programs, such as the Caribbean Basin Trade Partnership Act, the
Dominican Republic-Central America-United States Free Trade Agreement
(&#147;CAFTA-DR&#148;) and the Haitian Hemispheric Opportunity through Partnership
Encouragement Act (&#147;HOPE&#148;), which allow qualifying textiles and apparel from
participating countries duty-free access to certain developed countries&#146;
markets. </P>
<P align=justify>The United States adopted two of the newest programs, CAFTA-DR
and HOPE (as amended by HOPE II legislation in 2008 and by the Haitian Economic
Lift Program legislation in 2010), to strengthen and develop U.S. economic
relations with Central America, the Dominican Republic and Haiti. </P>
<P align=justify>Proposed legislation in the U.S. Congress would, if adopted,
extend duty-free treatment to qualifying apparel imported from lesser developed
countries, including Bangladesh and Cambodia, extend duty-free or reduced duty
treatment to certain qualifying apparel imported from the Philippines, and
extend duty-free treatment to certain apparel manufactured in &#147;reconstruction
opportunity zones&#148; in Afghanistan and Pakistan. In addition, the United States
Congress has approved and the president has signed three new free trade
agreements with South Korea, Colombia and Panama. These agreements are pending
final implementing steps in the affected countries and a </P>
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<P align=justify>U.S. presidential proclamation before they will become
effective. The United States also launched free trade negotiations with a group
of countries under the umbrella of the Trans-Pacific Partnership ("TPP").
Countries participating in the TPP negotiations at this time are Australia,
Brunei, Chile, Malaysia, New Zealand, Peru, Singapore and Vietnam. Any of these
proposals or agreements may negatively affect our competitive position in the
United States.</P>
<P align=justify>Furthermore, U.S. domestic industry groups have threatened to
seek various trade remedies, including a section 421 action, under the terms of
the U.S.-China World Trade Organization 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. Any
action taken by the United States under section 421 would be required to expire
under the terms of the accession agreement in 2013.</P>
<P align=justify>In August 2011, the governments of Canada and Honduras
announced the signing of a free trade agreement between the two countries. Once
ratified, the agreement will enable qualifying textiles and apparel from
Honduras to benefit from duty-free access into the Canadian market.</P>
<P align=justify>Imports into the Mexican market may qualify for trade
preferences from various free trade agreements such as the Mexico-Costa Rica
Free Trade Agreement, 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;Medidas Transitorias&#148;) in Mexico, which
are currently in effect on China-originating apparel, will be gradually
eliminated on December 11, 2011.</P>
<P align=justify>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 maintains a Generalized System of Preferences
(&#147;GSP&#148;) and the Africa-Caribbean-Pacific programs that allow duty-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 have not yet come into effect.
The new provisions will further enhance duty-free access to the European Union
of qualifying apparel articles. However, the European Union and the Central
American countries, such as Honduras and Nicaragua, completed the legal text of
an EU-Central America Association Agreement in April 2011, also allowing duty
free entry into the European Union of qualifying apparel articles. The
Association Agreement, once enacted, would supersede the eligibility for the GSP
trade preference of the signatory Central American countries. Also in April
2011, the European Union completed legal texts of similar agreements with
Colombia and Peru. The impact of the enactment of the Association Agreement and
the agreements with Colombia and Peru on our operations cannot be ascertained at
this time. Other European Union trade agreements, known as Economic Partnership
Agreements, are already in effect with Mexico and several of the Caribbean
states.</P>
<P align=justify>Proposed legislation in the European Union would, if adopted,
extend duty-free treatment to qualifying apparel imported from Pakistan. Such
legislation, if enacted, could negatively affect our competitive position in the European
Union.</P>
<P align=justify>As of July 2010, The People&#146;s Republic of China extended
duty-free and quota-free trade benefits awarded to Bangladesh under the
Asia-Pacific Trade Agreement to include certain chief-weight cotton apparel
articles made in Bangladesh.</P>
<P align=justify>The likelihood that any of these measures will be adopted and
the extent of their impact on our business cannot be determined with
certainty.</P>
<P align=justify><B>Product Safety Regulation</B></P>
<P align=justify>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 Federal Hazardous Substances Act, 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.
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 </P>
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<P align=justify>child care articles, including plasticized components of
children&#146;s sleepwear. As of December 31, 2011, when the Consumer Product Safety
Commission (the &#147;CPSC&#148;) lifts its stay of enforcement with respect to phthalate
testing and certification, the CPSC should be actively enforcing all of the
requirements listed above. In addition, we are also subject to similar laws and
regulations in the various individual states in which our products are sold.</P>
<P align=justify>In Canada, we are subject to similar laws and regulations, the
most significant of which are the Hazardous Products Act (the &#147;HPA&#148;) and the
Canada Consumer Product Safety Act (the &#147;CCPSA&#148;). The CCPSA came into force on
June 20, 2011. It is aimed at emphasizing industry's responsibility to provide
safe products, strengthening enforcement authorities, providing more and better
information for the public, improving the safety of imported products, ensuring
better record keeping, and instituting mandatory reporting. Regulations
currently in place under the HPA will be incorporated into the CCPSA or, where
necessary because of structural differences between the two statutes, replaced
by new CCPSA regulations. For example, the CCPSA&#146;s Children&#146;s Sleepwear
Regulations replaced the HPA&#146;s Hazardous Products (Children's Sleepwear)
Regulations. The CCPSA also provides for new regulations, such as the textile
flammability regulations. As under U.S. laws, surface coatings and phthalates
are also regulated under the CCPSA.</P>
<P align=justify>In the European Union, we are also subject to product safety
regulations, the most significant of which are imposed pursuant to the General
Product Safety Directive. We are also subject to similar laws and regulations in
the other jurisdictions in which our products are sold. </P>
<P align=justify>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
failures to comply with laws, regulations and permits applicable to our
operations cannot be reasonably determined.</P>
<P align=justify><B>Intellectual Property </B></P>
<P align=justify>We own several registered trademarks including, among others,
the Gildan&#174; 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 Gildan&#174; trademark,
as well as for the Ultra Cotton&#153;, DryBlend&#153; and Gildan Softstyle&#153; trademarks,
are also pending in several countries. As a result of the acquisition of Gold
Toe Moretz, we now also own the iconic Gold Toe&#174; trademark, as well as the
Silver Toe&#174;, GT&#174;, Auro&#174;, PowerSox&#174;, All Pro&#174; and Soleution&#174; trademarks, and we
will further expand registration of these marks internationally. Gold Toe Moretz
is also the exclusive licensee for Under Armour&#174; branded socks in the U.S.,
Canada, the United Kingdom and Ireland and the exclusive U.S. licensee for New
Balance&#174; branded socks.</P>
<P align=justify>We have and intend to continue to maintain our trademarks and
the relevant registrations, and will actively pursue the registration of
trademarks in Canada, the United States and abroad.</P>
<P align=justify><B>Social and Environmental Responsibility</B></P>
<P align=justify>Our social and environmental responsibility program encompasses
four major areas of focus: </P>
<UL style="TEXT-ALIGN: justify">
  <LI><I>People well-being: </I>Commitment to industry-leading working
  conditions and labour practices at each of our worldwide locations; <BR>&nbsp;

  <LI><I>Community engagement: </I>Commitment to our neighbours through
  dedicated support for youth and humanitarian aid; <BR>&nbsp;
  <LI><I>Environmental protection: </I>Commitment to the development and
  implementation of leading and innovative environmental solutions that reduce
  the impact of our operations throughout our entire supply chain; and
  <BR>&nbsp;
  <LI><I>Product sustainability: </I>Commitment to a responsible product line
  through sustainable solutions. </LI></UL>
<P align=justify><I>Social Compliance</I></P>
<P align=justify>We provide favourable working conditions for all our employees.
All of Gildan&#146;s operations are governed by the Company&#146;s Code of Conduct, which
is based on the International Labour Organization Conventions and which also
encompasses elements set forth by the Fair Labor Association (&#147;FLA&#148;) and the
Worldwide Responsible Accredited Production (&#147;WRAP&#148;), as well as best practices
commonly agreed upon in the area of corporate responsibility.</P>
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<P align=justify>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. 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, both on an announced and unannounced basis. During
fiscal 2011, 63 audits were performed in our facilities and in the facilities of
our third-party contractors. Over 35% of these audits were carried out by
third-party auditors, 43% of which were mandated by our customers.</P>
<P align=justify>Since 2002, all of our mature sewing facilities, and our
contractors&#146; facilities in Haiti have been certified by WRAP, an independent,
non-profit organization dedicated to the promotion and certification of lawful,
humane and ethical manufacturing throughout the world. WRAP, through independent
third-party verification, certifies facilities that comply with its Code of
Conduct. All of our third-party sewing contractors are contractually required to
follow prescribed employment policies as well as our Code of Conduct.</P>
<P align=justify>In November 2003, we joined the FLA as a &#147;Participating
Company&#148;. The FLA is internationally recognized and respected as a non-profit
organization whose goal is to promote adherence to international labour
standards and to improve working conditions for employees worldwide. In fiscal
2007, the FLA accorded accreditation status to our labour compliance
program.</P>
<P align=justify><I>Environmental Compliance</I></P>
<P align=justify>Gildan operates within the guidelines and practices set forth
in its Environmental Code of Practice. The thrust of our environmental program
is to reduce our environmental impact and to preserve the external natural
resources the Company utilizes. Innovative systems such as the biotop, a
biological wastewater treatment system, and our biomass steam generation systems
are some of the sustainable practices we have put in place. The Company
monitors, controls and manages other environmental issues through policies which
include, but are 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. </P>
<P align=justify>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, recycling and creation of measures for waste prevention,
minimization, recovery and treatment at all stages of the production cycle,
including the off-site disposal of any hazardous waste. We believe that we are
in compliance in all material respects with the regulatory requirements of those
jurisdictions in which our facilities are located. </P>
<P align=justify>In line with our commitment to the environment as well as to
the health and safety of our employees we incur capital and other expenditures
each year that are aimed at achieving compliance with current environmental
standards. For example, Gildan renews annually its OEKO-TEX&#174; Standard 100
certification for its entire product line, including socks, underwear, t-shirts,
sport shirts and fleece products. OEKO-TEX&#174; Standard 100 is an internationally
recognized testing and certification system, the goal of which is to ensure that
products are free of harmful substances. Companies which have their products
certified under the Oeko-Tex&#174; Standard 100 can demonstrate to consumers that
their products are totally safe in terms of human ecology, and have been
manufactured in environmentally conscious companies.</P>
<P align=justify>For fiscal 2011, the requirements with regard to environmental
protection did not have a significant financial or operational impact on the
Company's capital expenditures, earnings and competitive position. Although we
do not expect that the amount of these expenditures in the future will have a
material adverse effect on our operations, financial condition or liquidity,
there can be no assurance that future changes in federal, state, or local
regulations, interpretations of existing regulations or the discovery of
currently unknown problems or conditions will not require substantial additional
environmental remediation expenditures or result in a disruption to our supply
chain that could have a material adverse effect on our business. Although we
believe that we are in compliance in all material respects with the regulatory
requirements of the jurisdictions in which our facilities are located, the
extent of our liability, if any, for past failures to comply with laws,
regulations and permits applicable to our operations cannot be reasonably
determined.</P>
<P align=center>14</P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<A name=page_aif17></A>
<P align=justify>For more information on our Gildan Genuine Stewardship program,
you can visit <U><FONT color=#0000ff>www.genuinegildan.com</FONT></U>.</P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR>
    <TD vAlign=top width="5%"><B>3.2 </B></TD>
    <TD>
      <P align=justify><B>Risk Factors</B></P></TD></TR></TABLE>
<P align=justify>Please see the &#147;Critical Accounting Estimates&#148;, &#147;Financial Risk
Management&#148; and the &#147;Risks and Uncertainties&#148; sections of our 2011 Annual
MD&amp;A beginning on page 26, page 21 and page 38, respectively, which are
incorporated herein by reference.</P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR>
    <TD vAlign=top width="5%"><B>3.3 </B></TD>
    <TD>
      <P align=justify><B>Employees</B></P></TD></TR></TABLE>
<P align=justify>As at October 2, 2011, we employed approximately 29,500
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. During fiscal 2010, a union
membership drive at our textile manufacturing facility in the Dominican Republic
led to the execution of a collective bargaining agreement with a union
registered with the Dominican Ministry of Labor, covering approximately 900
employees. The collective bargaining agreement was terminated in February 2011
upon the mutual consent of the Company and the union, although the union
continues to claim to represent a majority of the factory workers.
Notwithstanding the termination of the agreement, the Company is continuing to
provide all of the benefits to the employees covered by the original agreement.
A second union is also claiming that it represents the majority of the workers
at the plant and has filed a third-party complaint alleging violation of freedom
of association with the FLA. The Company collaborated with the FLA in the
verification of the majority representation claim of the second union and has
now agreed to enter into negotiations with this union for the purposes of
completing a collective bargaining agreement.</P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR>
    <TD vAlign=top width="5%"><B>4. </B></TD>
    <TD>
      <P align=justify><B>DIVIDEND POLICY</B></P></TD></TR></TABLE>
<P align=justify>In December 2010, the Company announced the adoption of a
dividend policy which aims to declare and pay cash dividends on a quarterly
basis beginning in fiscal 2011. Prior to fiscal 2011, the Board of Directors of
the Company had never declared a dividend and had retained the Company&#146;s
earnings to take advantage of opportunities to develop and expand its business.
The Board of Directors will consider several factors when deciding to declare
quarterly cash dividends, which factors shall include the Company&#146;s present and
future earnings, cash flows, capital requirements and present and/or future
regulatory and legal restrictions. There can be no assurance as to the
declaration of future quarterly cash dividends. Although our revolving term
credit facility requires compliance with lending covenants in order to pay
dividends, these covenants are not currently, and are not expected to be, a
constraint to the payment of dividends under our dividend policy.</P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR>
    <TD vAlign=top width="5%"><B>5. </B></TD>
    <TD>
      <P align=justify><B>CAPITAL STRUCTURE</B></P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top width="5%"><B>5.1 </B></TD>
    <TD>
      <P align=justify><B>First Preferred Shares</B></P></TD></TR></TABLE>
<P align=justify><B>Issuance in Series</B></P>
<P align=justify>The First Preferred shares are issuable in series and the Board
of Directors has the right, from time to time, to fix the number of, and to
determine the designation, rights, privileges, restrictions and conditions
attaching to, the First Preferred shares of each series, subject to the
limitations, if any, set out in the Articles of the Company (&#147;Articles&#148;).</P>
<P align=justify><B>Rank</B></P>
<P align=justify>The First Preferred shares rank senior to the Second Preferred
shares and the Common Shares with respect to the payment of dividends, return of
capital and the distribution of assets in the event of the liquidation,
dissolution or winding-up of Gildan. The First Preferred shares in each series
rank equally with the First Preferred shares of any other series.</P>
<P align=justify><B>Voting Rights</B></P>
<P align=justify>Unless the Articles otherwise provide with respect to any
series of the First Preferred shares, the holders of the First Preferred shares
are not entitled to receive any notice of or attend any meeting of the
shareholders of Gildan and are not entitled to vote at any such meeting.</P>
<P align=center>15</P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<!--$$/page=--><A name=page_aif18></A>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR>
    <TD vAlign=top width="5%"><B>5.2</B> </TD>
    <TD>
      <P align=justify><B>Second Preferred Shares</B></P></TD></TR></TABLE>
<P align=justify><B>Issuance in Series</B></P>
<P align=justify>The Second Preferred shares are issuable in series and the
Board of Directors has the right, from time to time, to fix the number of, and
to determine the designation, rights, privileges, restrictions and conditions
attaching to, the Second Preferred shares of each series subject to the
limitations, if any, set out in the Articles.</P>
<P align=justify><B>Rank</B></P>
<P align=justify>The Second Preferred shares are subject and subordinate to the
rights, privileges, restrictions and conditions attaching to the First Preferred
shares. The Second Preferred shares rank senior to the Common Shares with
respect to payment of dividends, return of capital and distribution of assets in
the event of the liquidation, dissolution or winding-up of Gildan. The Second
Preferred shares in each series rank equally with the Second Preferred shares of
any other series.</P>
<P align=justify><B>Voting Rights</B></P>
<P align=justify>Unless the Articles otherwise provide with respect to any
series of the Second Preferred shares, the holders of the Second Preferred
shares are not entitled to receive any notice of or attend any meeting of the
shareholders of Gildan and are not entitled to vote at any such meeting.</P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR>
    <TD vAlign=top width="5%"><B>5.3</B> </TD>
    <TD>
      <P align=justify><B>Common Shares</B></P></TD></TR></TABLE>
<P align=justify>Following the conversion of all of the Company&#146;s Class B
Multiple Voting shares into Class A Subordinate Voting shares, the Company&#146;s
shareholders approved a special resolution on February 2, 2005 to amend the
Company&#146;s Articles in order to change each of the issued and outstanding Class A
Subordinate Voting shares into one newly-created Common Share and to remove the
Class B Multiple Voting shares and the Class A Subordinate Voting shares.</P>
<P align=justify>The Common Shares are subject and subordinate to the rights,
privileges, restrictions and conditions attaching to the First Preferred shares
and the Second Preferred shares. Each holder of Common Shares shall have the
right to receive any dividend declared by the Company and the right to receive
the remaining property and assets of the Company on dissolution.</P>
<P align=justify>Each holder of Common Shares is entitled to receive notice of
and to attend all meetings of shareholders of the Company, except meetings at
which only holders of another particular class or series shall have the right to
vote. Each Common Share entitles the holder thereof to one vote.</P>
<P align=center>16</P>
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noShade SIZE=5>
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<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR>
    <TD vAlign=top width="5%"><B>6.</B> </TD>
    <TD>
      <P align=justify><B>MARKET FOR SECURITIES</B></P></TD></TR></TABLE>
<P align=justify>The Common Shares are listed on the NYSE and the TSX under the
symbol &#147;GIL&#148;. The Class A Subordinate Voting shares (now the Common Shares),
which were issued at an offering price of $0.88 (Cdn$1.29), on a post-split
basis, began trading on the TSX, the Montreal Exchange (the &#147;ME&#148;) and the
American Stock Exchange (&#147;AMEX&#148;) on June 17, 1998. Prior to that date, there was
no public market for the Class A Subordinate Voting shares. We delisted such
shares from AMEX on August 31, 1999. On September 1, 1999, the Class A
Subordinate Voting shares (now the Common Shares) commenced trading on the NYSE.
As a result of a restructuring of Canada&#146;s stock exchanges, which took effect on
December 7, 1999, we are no longer listed on the ME.</P>
<P align=justify>The table below shows the monthly price range per share and the
trading volume of the Common Shares for the fiscal year ended October 2, 2011 on
the TSX (in Cdn$) and on the NYSE (in US$).</P>
<DIV>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 8pt; BORDER-COLLAPSE: collapse; "
borderColor=#000000 cellSpacing=0 cellPadding=3 width="100%" border=1>

  <TR vAlign=bottom>
    <TD align=center colSpan=8><B>COMMON SHARES</B>&nbsp;&nbsp;&nbsp; </TD></TR>
  <TR vAlign=top>
    <TD align=center colSpan=4><B>Toronto Stock Exchange (TSX)</B> </TD>
    <TD align=center width="48%" colSpan=4><B>New York Stock Exchange
      (NYSE)</B> </TD></TR>
  <TR vAlign=top>
    <TD align=left><B>Month</B> </TD>
    <TD align=center width="12%"><B>High</B> </TD>
    <TD align=center width="12%"><B>Low</B></TD>
    <TD align=center width="12%"><STRONG>Trading Volume
      <SUP>(1)</SUP></STRONG> </TD>
    <TD align=left width="12%"><B>Month</B> </TD>
    <TD align=center width="12%"><B>High</B> </TD>
    <TD align=center width="12%"><B>Low</B></TD>
    <TD align=center width="12%"><STRONG>Trading Volume
      <SUP>(2)</SUP></STRONG> </TD></TR>
  <TR vAlign=top>
    <TD align=left>October 4 to 31, 2010 </TD>
    <TD align=center width="12%">30.30 </TD>
    <TD align=center width="12%">26.97 </TD>
    <TD align=right width="12%">6,966,237 </TD>
    <TD align=left width="12%">October 4 to 31, 2010 </TD>
    <TD align=center width="12%">29.92 </TD>
    <TD align=center width="12%">26.24 </TD>
    <TD align=left width="12%">2,594,080 </TD></TR>
  <TR vAlign=top>
    <TD align=left>November 2010 </TD>
    <TD align=center width="12%">31.22 </TD>
    <TD align=center width="12%">26.52 </TD>
    <TD align=right width="12%">14,869,069 </TD>
    <TD align=left width="12%">November 2010 </TD>
    <TD align=center width="12%">30.40 </TD>
    <TD align=center width="12%">26.29 </TD>
    <TD align=right width="12%">3,469,880 </TD></TR>
  <TR vAlign=top>
    <TD align=left>December 2010 </TD>
    <TD align=center width="12%">31.55 </TD>
    <TD align=center width="12%">28.05 </TD>
    <TD align=right width="12%">10,131,016 </TD>
    <TD align=left width="12%">December 2010 </TD>
    <TD align=center width="12%">31.04 </TD>
    <TD align=center width="12%">27.59 </TD>
    <TD align=right width="12%">3,765,114 </TD></TR>
  <TR vAlign=top>
    <TD align=left>January 2011 </TD>
    <TD align=center width="12%">29.61 </TD>
    <TD align=center width="12%">27.50 </TD>
    <TD align=right width="12%">7,824,153 </TD>
    <TD align=left width="12%">January 2011 </TD>
    <TD align=center width="12%">29.59 </TD>
    <TD align=center width="12%">27.51 </TD>
    <TD align=right width="12%">2,447,788 </TD></TR>
  <TR vAlign=top>
    <TD align=left>February 2011 </TD>
    <TD align=center width="12%">31.85 </TD>
    <TD align=center width="12%">28.75 </TD>
    <TD align=right width="12%">12,883,444 </TD>
    <TD align=left width="12%">February 2011 </TD>
    <TD align=center width="12%">32.33 </TD>
    <TD align=center width="12%">29.09 </TD>
    <TD align=right width="12%">3,064,169 </TD></TR>
  <TR vAlign=top>
    <TD align=left>March 2011 </TD>
    <TD align=center width="12%">32.47 </TD>
    <TD align=center width="12%">29.45 </TD>
    <TD align=right width="12%">5,929,394 </TD>
    <TD align=left width="12%">March 2011 </TD>
    <TD align=center width="12%">33.17 </TD>
    <TD align=center width="12%">30.18 </TD>
    <TD align=right width="12%">2,614,318 </TD></TR>
  <TR vAlign=top>
    <TD align=left>April 2011 </TD>
    <TD align=center width="12%">36.12 </TD>
    <TD align=center width="12%">30.45 </TD>
    <TD align=right width="12%">10,488,327 </TD>
    <TD align=left width="12%">April 2011 </TD>
    <TD align=center width="12%">37.92 </TD>
    <TD align=center width="12%">31.83 </TD>
    <TD align=right width="12%">3,141,748 </TD></TR>
  <TR vAlign=top>
    <TD align=left>May 2011 </TD>
    <TD align=center width="12%">36.47 </TD>
    <TD align=center width="12%">33.70 </TD>
    <TD align=right width="12%">6,785,932 </TD>
    <TD align=left width="12%">May 2011 </TD>
    <TD align=center width="12%">38.07 </TD>
    <TD align=center width="12%">34.54 </TD>
    <TD align=right width="12%">2,848,109 </TD></TR>
  <TR vAlign=top>
    <TD align=left>June 2011 </TD>
    <TD align=center width="12%">36.46 </TD>
    <TD align=center width="12%">31.79 </TD>
    <TD align=right width="12%">6,086,796 </TD>
    <TD align=left width="12%">June 2011 </TD>
    <TD align=center width="12%">37.55 </TD>
    <TD align=center width="12%">32.35 </TD>
    <TD align=right width="12%">4,238,693 </TD></TR>
  <TR vAlign=top>
    <TD align=left>July 2011 </TD>
    <TD align=center width="12%">36.00 </TD>
    <TD align=center width="12%">28.36 </TD>
    <TD align=right width="12%">8,753,506 </TD>
    <TD align=left width="12%">July 2011 </TD>
    <TD align=center width="12%">37.41 </TD>
    <TD align=center width="12%">29.62 </TD>
    <TD align=right width="12%">4,655,065 </TD></TR>
  <TR vAlign=top>
    <TD align=left>August 2011 </TD>
    <TD align=center width="12%">28.18 </TD>
    <TD align=center width="12%">23.80 </TD>
    <TD align=right width="12%">14,001,474 </TD>
    <TD align=left width="12%">August 2011 </TD>
    <TD align=center width="12%">30.13 </TD>
    <TD align=center width="12%">24.05 </TD>
    <TD align=right width="12%">7,413,166 </TD></TR>
  <TR vAlign=top>
    <TD align=left>September 2011 </TD>
    <TD align=center width="12%">29.07 </TD>
    <TD align=center width="12%">24.90 </TD>
    <TD align=right width="12%">9,498,123 </TD>
    <TD align=left width="12%">September 2011 </TD>
    <TD align=center width="12%">29.32 </TD>
    <TD align=center width="12%">25.08 </TD>
    <TD align=right width="12%">3,179,143 </TD></TR></TABLE></DIV><BR>
<DIV>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 8pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD vAlign=top width="5%">(1) </TD>
    <TD>
      <P align=justify>The trading volumes do not reflect any trades done on
      &#147;alternative trading systems&#148; and only represent approximately 66% of all
      trades executed in Canada.</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD vAlign=top width="5%">(2) </TD>
    <TD>
      <P align=justify>The trading volumes do not reflect any trades done on
      &#147;alternative trading systems&#148; and only represent approximately 32% of all
      trades executed in United States.</P></TD></TR></TABLE></DIV><BR>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR>
    <TD vAlign=top width="5%"><B>7.</B> </TD>
    <TD>
      <P align=justify><B>DIRECTORS AND OFFICERS</B></P></TD></TR></TABLE>
<P align=justify>Listed below is certain information about the current directors
of Gildan. The directors have served in their respective capacities since their
election and/or appointment and will continue to serve until the next annual
meeting of shareholders or until a successor is duly elected.</P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD align=left bgcolor="#F3F3F3"><B>Name and Municipality of Residence</B> </TD>
    <TD width="33%" align=left bgcolor="#F3F3F3"><B>Principal Occupation</B> </TD>
  <TD width="33%" align=left bgcolor="#F3F3F3"><B>Director Since</B> </TD>
  </TR>
  <TR vAlign=top>
    <TD vAlign=bottom align=left bgColor=#e6efff>Robert M. Baylis
      <SUP>(2)(3)(4)</SUP> <BR>Darien, Connecticut, United States</TD>
    <TD vAlign=bottom align=left width="33%" bgColor=#e6efff>Corporate
      Director </TD>
    <TD vAlign=bottom align=left width="33%" bgColor=#e6efff>February 1999
  </TD></TR>
  <TR vAlign=top>
    <TD vAlign=bottom align=left>Glenn J. Chamandy <BR>Westmount, Qu&#233;bec,
      Canada</TD>
    <TD vAlign=bottom align=left width="33%">President and Chief Executive
      Officer of the Company </TD>
    <TD vAlign=bottom align=left width="33%">May 1984 </TD></TR>
  <TR vAlign=top>
    <TD vAlign=bottom align=left bgColor=#e6efff>William D.
      Anderson<SUP>(1)(3)</SUP> <BR>Toronto, Ontario, Canada</TD>
    <TD vAlign=bottom align=left width="33%" bgColor=#e6efff>Corporate
      Director </TD>
    <TD vAlign=bottom align=left width="33%" bgColor=#e6efff>May 2006 </TD></TR>
  <TR vAlign=top>
    <TD vAlign=bottom align=left>Russell Goodman<SUP>(1) (2)</SUP> <BR>Mont
      Tremblant, Qu&#233;bec, Canada</TD>
    <TD vAlign=bottom align=left width="33%">Corporate Director </TD>
    <TD vAlign=bottom align=left width="33%">December 2010
</TD></TR></TABLE>
<P align=center>17</P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
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<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD align=left bgcolor="#F3F3F3"><B>Name and Municipality of Residence</B> </TD>
    <TD width="33%" align=left bgcolor="#F3F3F3"><B>Principal Occupation</B> </TD>
  <TD width="33%" align=left bgcolor="#F3F3F3"><B>Director Since</B> </TD>
  </TR>
  <TR vAlign=top>
    <TD vAlign=top align=left bgColor=#e6efff>George Heller<SUP>(1)(3)</SUP>
      <BR>Toronto, Ontario, Canada</TD>
    <TD vAlign=top align=left width="33%" bgColor=#e6efff><BR>Corporate
      Director </TD>
    <TD vAlign=top align=left width="33%" bgColor=#e6efff><BR>December 2009
  </TD></TR>
  <TR vAlign=top>
    <TD vAlign=top align=left>Sheila O&#146;Brien <SUP>(2)(3)</SUP> <BR>Calgary,
      Alberta, Canada </TD>
    <TD vAlign=top align=left width="33%"><BR>Corporate Director and Business
      Advisor <BR>President of Belvedere 1 Investments Ltd. (private
      <BR>investment company) </TD>
    <TD vAlign=top align=left width="33%"><BR>June 2005 </TD></TR>
  <TR vAlign=top>
    <TD vAlign=top align=left bgColor=#e6efff>Pierre
      Robitaille<SUP>(1)(2)</SUP> <BR>St-Lambert, Qu&#233;bec, Canada</TD>
    <TD vAlign=top align=left width="33%" bgColor=#e6efff><BR>Corporate
      Director </TD>
    <TD vAlign=top align=left width="33%" bgColor=#e6efff><BR>February 2003
  </TD></TR>
  <TR vAlign=top>
    <TD vAlign=top align=left>James R. Scarborough<SUP>(2)(3)</SUP>
      <BR>Wolfeboro, New Hampshire, United States</TD>
    <TD vAlign=top align=left width="33%"><BR>Corporate Director </TD>
    <TD vAlign=top align=left width="33%"><BR>December 2009 </TD></TR>
  <TR vAlign=top>
    <TD vAlign=top align=left bgColor=#e6efff>Richard P. Strubel
      <SUP>(1)(3)</SUP> <BR>Chicago, Illinois, United States</TD>
    <TD vAlign=top align=left width="33%" bgColor=#e6efff><BR>Corporate
      Director </TD>
    <TD vAlign=top align=left width="33%" bgColor=#e6efff><BR>February 1999
  </TD></TR>
  <TR vAlign=top>
    <TD vAlign=top align=left>Gonzalo F. Valdes-Fauli<SUP>(1)(2)</SUP> <BR>Key
      Biscayne, Florida, United States </TD>
    <TD vAlign=top align=left width="33%"><BR>Corporate Director <BR>Chairman
      of BroadSpan Capital LLC (investment <BR>banking firm) </TD>
    <TD vAlign=top align=left width="33%"><BR>October 2004
</TD></TR></TABLE>____________________<BR>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

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

  <TR vAlign=top>
    <TD align=left bgcolor="#F3F3F3"><B>Name and Municipality of Residence</B> </TD>
    <TD width="50%" align=left bgcolor="#F3F3F3"><B>Position Held Within the Company and
      Principal Occupation</B> </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Glenn J. Chamandy <SUP>(1)</SUP>
      <BR>Westmount, Qu&#233;bec, Canada</TD>
    <TD align=left width="50%" bgColor=#e6efff><BR>President, Chief Executive
      Officer and Director </TD></TR>
  <TR vAlign=top>
    <TD align=left>Laurence G. Sellyn <SUP>(1)</SUP> <BR>Beaconsfield, Qu&#233;bec,
      Canada </TD>
    <TD align=left width="50%"><BR>Executive Vice-President, Chief Financial
      and Administrative Officer </TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Michael R. Hoffman <BR>St. James, Barbados
    </TD>
    <TD align=left width="50%" bgColor=#e6efff><BR>President, Gildan
      Activewear SRL </TD></TR>
  <TR vAlign=top>
    <TD align=left>Georges Sam Yu Sum <SUP>(1)</SUP> <BR>Hampstead, Qu&#233;bec,
      Canada </TD>
    <TD align=left width="50%"><BR>Executive Vice-President, Operations </TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Benito Masi <SUP>(1)</SUP> <BR>Laval,
      Qu&#233;bec, Canada </TD>
    <TD align=left width="50%" bgColor=#e6efff><BR>Executive Vice-President,
      Manufacturing </TD></TR>
  <TR vAlign=top>
    <TD align=left>Eric R. Lehman <BR>Charleston, South Carolina, United
    States</TD>
    <TD align=left width="50%"><BR>President, Retail Sales
</TD></TR></TABLE>____________________<BR>
<DIV>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 8pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR>
    <TD vAlign=top width="5%">(1) </TD>
    <TD>
      <P align=justify>Officer of the Company.</P></TD></TR></TABLE></DIV>
<P align=justify><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 2004, Mr. Chamandy held the position of President and Chief
Operating Officer. He was then named President and Co-Chief Executive Officer
and, in August 2004, he was appointed to the position of President and Chief
Executive Officer. </P>
<P align=justify><I>Robert M. Baylis </I>is Chairman of the Board of the Company
and will be retiring from the Board of Directors in February 2012. Mr. Baylis is
also Lead Director of Host Hotels &amp; Resorts, Inc<I>., </I>a major
corporation operating luxury hotels and resorts. Mr. Baylis serves as Trustee
and Chairman of the Executive Committee of the Rubin Museum of Art in New York
City and as Trustee and Chairman of the Audit Committee of the Woods Hole
Oceanographic Institution. Mr. Baylis is also a member of the Board of Overseers
of the University of Pennsylvania Museum of Archaeology and Anthropology. He was
formerly a director of the New York Life Insurance Company (life insurance
provider), Covance Inc. (drug development), Partner Re Limited (reinsurance),
Gryphon Holdings, Inc. (insurance company) and of the Wharton International
Forum (an executive education program). Mr. Baylis retired from Credit Suisse
First Boston as Vice-Chairman in 1996, after thirty-three years with the
investment banking firm and its associated corporations, including a term as the
Chairman and Chief </P>
<P align=center>18</P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
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<P align=justify>Executive Officer of Credit Suisse First Boston (Pacific). Mr.
Baylis was educated at Princeton University and at Harvard Business School, and
is a Chartered Financial Analyst.</P>
<P align=justify><I>William D. Anderson </I>has had a career as a business
leader in Canada spanning over thirty years. Mr. Anderson joined the Bell Canada
organization in 1992 where, from 1998 to 2001, he served as Chief Financial
Officer of BCE Inc., Canada&#146;s largest telecommunications company. From 2001 to
2005, Mr. Anderson served as President of BCE Ventures, the strategic investment
unit of BCE Inc. and, from 2001 to 2007, he was the Chairman and Chief Executive
Officer of Bell Canada International Inc., a subsidiary of BCE Inc. formed to
invest in telecommunications operations outside Canada. Prior to joining the
Bell Canada organization, Mr. Anderson was in public practice for nearly twenty
years with the accounting firm KPMG, where he was a partner for eleven years.
Mr. Anderson is also Chairman of the Board of Nordion Inc., formerly known as
MDS Inc. (global life sciences company) and serves on the board of directors of
TransAlta Corporation (power generation and energy marketing firm), where he is
also Chairman of the Audit and Risk Committee. He also serves on the board of
directors of Sun Life Financial Inc., an international financial services
organization. The Board of Directors intends to appoint Mr. Anderson as the
Chairman of the Board following the retirement of Robert M. Baylis in February
2012. Mr. Anderson was educated at the University of Western Ontario and is a
Fellow of the Institute of Chartered Accountants of Ontario. </P>
<P align=justify><I>Russell Goodman </I>is a corporate director. From 1998 to
June 2011, Mr. Goodman was a senior partner of PricewaterhouseCoopers LLP, where
he 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 business. Prior to the formation of
PricewaterhouseCoopers in 1998, Mr. Goodman served for twenty-one years with
Price Waterhouse LLP, including eleven years as a partner. Mr. Goodman is a
member of the board of directors of Forth Ports Limited, which owns and operates
major sea and container ports in the United Kingdom, and is also a member of the
board of directors of Whistler Blackcomb Holdings Inc. (North America's largest
ski resort), where he is also Chairman of the Audit Committee and a member of
the Compensation Committee. Mr. Goodman is, as well, a member of the Independent
Review Committee of Investors Group Inc. (mutual funds). He also serves on a
number of advisory and not-for-profit boards, including the Pointe-&#224;-Calli&#232;re
Foundation, where is Chairman of the Board. He previously served as President of
the Canadian Club of Montreal. He is a Fellow of the Order of Chartered
Accountants of Quebec and is certified by the Institute of Corporate Directors.
Mr. Goodman was educated at McGill University.</P>
<P align=justify><I>George Heller </I>has had a career as a business leader in
the retail sector that spans over forty years. From 1999 to 2006, Mr. Heller
served as President and Chief Executive Officer of the Hudson&#146;s Bay Company,
Canada&#146;s largest diversified general merchandise retailer, operating more than
600 retail outlets in Canada under four banners: the Bay, Zellers, Home
Outfitters and Fields. Prior to that, Mr. Heller was President and Chief
Executive Officer of Zellers, the mass merchandise retailer of the Hudson&#146;s Bay
Company and a leading Canadian mass merchandise department store. Mr. Heller has
also held a number of other key positions in the retail industry, including as
President and Chief Executive Officer of Kmart Canada (discount department
stores), President, North America &amp; Europe of Bata Industries Ltd.
(international footwear manufacturer) and Executive Vice-President of Woodwards
Department Stores (department store chain). Mr. Heller also served as President
and Chief Executive Officer of the Victoria Commonwealth Games. Mr. Heller
currently serves as President of the Commonwealth Games of Canada Foundation (a
fundraising organization for amateur athletes) and is a member of its board of
directors. Mr. Heller also serves on the board of the Asia Pacific Foundation of
Canada, a not-for-profit think-tank on Canada&#146;s relations with Asia, where he is
Chair of the Investment Committee. Mr. Heller has acted since 2008 as Honorary
Consul General of Thailand and as Honorary Trade Advisor to the Government of
Thailand since 2000. Mr. Heller has received Honorary Doctorates from Ryerson
University and the University of Victoria.</P>
<P align=justify><I>Sheila O&#146;Brien</I>, CM, is President of Belvedere 1
Investments Ltd., and serves as 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 in Canada, the United States and Europe. Prior
to 2004, Ms. O&#146;Brien was Senior Vice-President, Human Resources, Public Affairs,
Investor and Government Relations at NOVA Chemicals Corporation, a producer of
commodity plastics and chemicals, where she was the architect of a corporate
restructuring practice that was designated a worldwide best practice by Watson
Wyatt Consulting Firm. She has also been active on the boards of directors of
over thirty public sector and not-for-profit organizations, and was awarded the
Order of Canada for her community leadership in 1998. Ms. O&#146;Brien also serves on
the board of directors of MaRS (Medical and Related Sciences), where she is
Chair of the Human Resources and Corporate Governance Committee and she serves
on the board of Advantage Energy Corporation, a Calgary-based oil and gas
company. In addition to her corporate career, she has acted as a special advisor
to the president at the University of Calgary. Ms. O&#146;Brien is the co-author of
two books, &#147;An Extraordinary West &#150; A Narrative Exploration of Western Canada&#146;s
Future&#148; published in November </P>
<P align=center>19</P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
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<P align=justify>2010, and &#147;Catching a Rising Tide: A Western Energy Vision for
Canada&#148; published in November 2011. She is a graduate of the MTC program at the
University of Western Ontario, and completed a one-year sabbatical on creativity
and innovation at various U.S. schools in 1990.</P>
<P align=justify><I>Pierre Robitaille </I>is a corporate director. Mr.
Robitaille previously pursued his career at SNC-Lavalin Group Inc., a global
engineering and 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 Ernst &amp; Whinney, where he held the positions of
Managing Partner of the Montreal office, President of the firm in Qu&#233;bec, and
member of its national board of directors. Mr. Robitaille also serves on the
board of directors and is the Chair of the Audit Committee of Nav Canada, a
civil air navigation services provider. Mr. Robitaille is a Fellow member of the
Qu&#233;bec Order of Chartered Accountants. He was educated at HEC-Montreal and
McGill University Business School.</P>
<P align=justify><I>James R. Scarborough </I>has had a career as a business
leader in the retail industry that spans over thirty-eight years. Mr.
Scarborough retired in June 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. 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. Scarborough began his retail career in 1972, at Filene&#146;s of Boston, a
division of Federated Department Stores. Mr. Scarborough also serves on the
board of directors and is Chair of the Compensation Committee of Charming
Charlie, Inc., a women&#146;s fashion accessories house. Mr. Scarborough was educated
at St. Michael&#146;s College in Vermont, United States.</P>
<P align=justify><I>Richard P. Strubel </I>is a corporate director. Prior to
2008, he was Vice-Chairman of the Board of Cardean Learning Group (formerly
known as Unext), a provider of advanced education over the Internet, where from
1999 to 2004 he served as President and Chief Operating Officer. From 1990 to
1999, Mr. Strubel was Managing Director of Tandem Partners, Inc., a
privately-held management services firm, and from 1984 to 1994, he served as
President and Chief Executive Officer of Microdot, Inc. Prior to that, Mr.
Strubel served as President of Northwest Industries, then a NYSE-listed company,
which included Fruit of the Loom and BVD among its operating entities. Mr.
Strubel also serves on the board of directors of the mutual funds of Goldman
Sachs &amp; Co. and is Chairman of the Board of the Northern Funds of Northern
Trust. Mr. Strubel is also Trustee of the University of Chicago. Mr. Strubel was
educated at Williams College and Harvard Business School. </P>
<P align=justify><I>Gonzalo F. Valdes-Fauli </I>is Chairman of the Board of
BroadSpan Capital LLC, an investment banking firm specializing in financial
advisory services. Mr. Valdes-Fauli retired from Barclays Bank PLC (major
UK-based global bank) in 2001, where he held the position of Vice-Chairman,
Barclays Capital, and Group Chief Executive Officer, Latin America. Mr.
Valdes-Fauli also serves on the board of directors of Blue Cross Shield of
Florida (health insurance provider), and was Chairman of the Board of Republic
Bank of Dominican Republic (financial services provider) until November 2007. He
is Trustee Emeritus of the University of Miami and Spring Hill College in
Mobile, Alabama. Mr. Valdes-Fauli holds a Master&#146;s Degree in international
finance from Thunderbird Graduate School for International Management.</P>
<P align=justify><I>Laurence G. Sellyn </I>was appointed to the position of
Executive Vice-President, Chief Financial and Administrative Officer of the
Company in November 2005. He joined Gildan as Executive Vice-President, Finance
and Chief Financial Officer of the Company in April 1999. Prior to joining
Gildan, Mr. Sellyn served as Senior Vice-President, Finance and Corporate
Development and Chief Financial Officer of Wajax Limited, an industrial
distribution company, where he was employed from October 1992 to March 1999.
Prior to joining Wajax, he was employed by Domtar Inc., where he held various
positions, including Corporate Controller and Vice-President, Business Planning
and Development. Mr. Sellyn is a Fellow of the Institute of Chartered
Accountants of England and Wales and a graduate of Oxford University. Mr. Sellyn
is on the Advisory Board of H&#233;ritage Montr&#233;al, and acts as Co-Chairman of their
fundraising campaign.</P>
<P align=justify><I>Michael R. Hoffman </I>joined Gildan in October 1997. He
served as Vice-President, Sales and Marketing for the international division
until his appointment as President of Gildan Activewear SRL in February 2001.
Prior to joining Gildan, Mr. Hoffman was employed by Fruit of the Loom, Inc.,
where he last served as Divisional Vice-President of the Activewear
Division.</P>
<P align=center>20</P>
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<P align=justify><I>Georges Sam Yu Sum </I>has been Executive Vice-President,
Operations of the Company since 2000. From 1998 to 2000, he served as
Vice-President, Operations of the Company and from 1995 to 1998, he served as
its Director of Operations. Prior to joining Gildan in 1995, Mr. Sam Yu Sum
spent sixteen years with Dominion Textiles, where he served in various
managerial capacities, from manufacturing to sales.</P>
<P align=justify><I>Benito Masi </I>has been involved in apparel manufacturing
in North America for over twenty-five years. He joined Gildan in 1986, and since
then has held various positions in the Company. He was appointed Vice-President,
Apparel Manufacturing in February 2001 and his title was changed to
Vice-President, Corporate Apparel Operations in September 2003. In August 2004,
he was appointed Executive Vice-President, Apparel Manufacturing and was
appointed Executive Vice-President, Manufacturing in January 2005.</P>
<P align=justify><I>Eric R. Lehman </I>joined Gildan in December 2006 as
Executive Vice-President, Supply Chain. In November 2008, Mr. Lehman&#146;s
responsibilities were expanded to include information technology and operational
excellence and his title changed to Executive Vice-President, Supply Chain,
Information Technology and Operational Excellence until his appointment as
President, Retail Sales in January 2011. He has over twenty years of experience
in the supply chain function with major national apparel brands. Prior to
joining Gildan, Mr. Lehman was employed by Russell Corporation, where he last
served as Vice-President of Supply Chain. Prior to that, he held senior supply
chain planning positions at both Fruit of the Loom, Inc. and the Hanes Division
of Sara Lee Corporation.</P>
<P align=justify>As at December 9, 2011, the executive officers and directors of
the Company as a group own 10,282,477 Common Shares, which represents 8.5% of
the voting rights attached to all Common Shares.</P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR>
    <TD vAlign=top width="5%"><B>8.</B> </TD>
    <TD>
      <P align=justify><B>AUDIT AND FINANCE COMMITTEE DISCLOSURE</B></P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top width="5%"><B>8.1</B> </TD>
    <TD>
      <P align=justify><B>Mandate of the Audit and Finance
  Committee</B></P></TD></TR></TABLE>
<P align=justify>The mandate of the Audit and Finance Committee is included
herewith as Appendix A.</P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR>
    <TD vAlign=top width="5%"><B>8.2</B> </TD>
    <TD>
      <P align=justify><B>Composition of the Audit and Finance
    Committee</B></P></TD></TR></TABLE>
<P align=justify>The Audit and Finance Committee is composed of six independent
and financially literate directors, as such terms are defined under Canadian and
U.S. securities laws and regulations, and in accordance with the NYSE Corporate
Governance Standards. Their education and experience relevant to the performance
of their responsibilities as members of the Audit and Finance Committee are as
follows:</P>
<P align=justify><B>William D. Anderson </B>&#150; Mr. Anderson is the Chairman of
the Audit and Finance Committee. He is a chartered accountant and has a business
career spanning over thirty years. He joined the Bell Canada organization in
1992, and from 1998 to 2001 he served as Chief Financial Officer of BCE Inc.
From 2001 to 2005 he was the President of BCE Ventures, and from 2001 to 2007
served as the Chairman and Chief Executive Officer of Bell Canada International
Inc. Prior to his career at the Bell Canada organization, Mr. Anderson was with
the accounting firm KPMG for nearly twenty years, including eleven years as a
partner. Mr. Anderson is also the Chairman of the Audit and Risk Committee of
TransAlta Corporation, and serves on the Audit and Risk Review Committees of Sun
Life Financial Inc. Mr. Anderson is a Fellow of the Institute of Chartered
Accountants of Ontario. </P>
<P align=justify><B>Russell Goodman </B>&#150; Mr. Goodman is a corporate director.
He was previously a senior partner at PricewaterhouseCoopers, where he served
successively until June 2011 as Managing Partner of Project Finance and
Privatization for the Americas, as Managing Partner of the Montreal office, and
as Canadian Managing Partner of the Transactions Advisory Services group. Prior
to the formation of PricewaterhouseCoopers in 1998, he served twenty-one years
with Price Waterhouse, including eleven years as a partner. Mr. Goodman is also
the Chairman of the Audit Committee of Whistler Blackcomb Holdings Inc. Mr.
Goodman is a Fellow of the Order of Chartered Accountants of Quebec, a Certified
Fraud Examiner, and is certified by the Institute of Corporate Directors. </P>
<P align=justify><B>George Heller </B>&#150; Mr. Heller is a corporate director. He
is the retired President and Chief Executive Officer of the Hudson&#146;s Bay
Company, a position he held from 1999 to 2006. Prior to his career at the
Hudson&#146;s Bay Company, Mr. Heller held several key executive positions in the
retail industry, including President and Chief Executive Officer of Zellers,
President and Chief Executive Officer of Kmart, President &#150; North America and
Europe of Bata Industries Ltd., and Executive Vice-President of Woodwards
Department Stores. He also served as President and Chief Executive Officer of
the Victoria Commonwealth Games, and is currently President of the Commonwealth
Games of Canada Foundation. </P>
<P align=center>21</P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
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<P align=justify><B>Pierre Robitaille </B>&#150; Mr. Robitaille is a business advisor
and corporate director. He was previously Executive Vice-President and Chief
Financial Officer at SNC-Lavalin Group Inc., a position he held from 1990 to
1998. Prior to his career at SNC-Lavalin Group Inc., Mr. Robitaille worked more
than twenty years with the public accounting and management services firm Ernst
&amp; Whinney, including ten years as Audit Partner, and served as Managing
Partner of the Montreal office and as President of the firm in Quebec. He has
served on audit committees of several listed companies, and is currently the
Chair of the Audit Committee of Nav Canada. Mr. Robitaille is a Fellow of the
Order of Chartered Accountants of Quebec. He was educated at HEC-Montreal and
McGill Business School. </P>
<P align=justify><B>Richard P. Strubel </B>&#150; Mr. Strubel is a corporate
director. He was previously President and Chief Operating Officer of Cardean
Learning Group, a position he held from 1999 to 2004, and served as
Vice-Chairman of its Board until 2008. Prior to this, Mr. Strubel had an
extensive career as a business executive. He served as Managing Director of
Tandem Partners Inc., as President and Chief Executive Officer of Microdot Inc.,
and as President of Northwest Industries. Mr. Strubel also has extensive
experience serving on several boards of directors, including as a member of
audit committees. Mr. Strubel was educated at Williams College and Harvard
Business School. </P>
<P align=justify><B>Gonzalo F. Valdes-Fauli </B>&#150; Mr. Valdes-Fauli is a
corporate director. He retired from Barclays Bank PLC in 2001, where he held the
position of Vice-Chairman, Barclays Capital, and served as Group Chief Executive
Officer of Barclays Bank Latin America from 1988 to 2001. Mr. Valdes-Fauli is
Chairman of BroadSpan Capital LLC, and served as Chairman of the Board of
Republic Bank of Dominican Republic until November 2007. Mr. Valdes-Fauli has
more than thirty years of experience in finance and holds a Master&#146;s Degree in
international finance from Thunderbird Graduate School for International
Management.</P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR>
    <TD vAlign=top width="5%"><B>8.3</B> </TD>
    <TD>
      <P align=justify><B>Pre-Approval of Non-Audit
  Services</B></P></TD></TR></TABLE>
<P align=justify>In accordance with the Code of Ethics of Chartered Accountants
of Quebec&#146;s independence standards for auditors, the <I>Sarbanes-Oxley Act of
2002 </I>and rules of the U.S. Securities and Exchange Commission, the Company
is restricted from engaging its external auditor to provide certain non-audit
services to the Company and its subsidiaries, including bookkeeping or other
services related to the accounting records or financial statements, information
technology services, valuation services, actuarial services, internal audit
services, corporate finance services, management functions, human resources
functions, legal services and expert services unrelated to the audit. The
Company does engage its external auditor from time to time to provide certain
non-audit services other than the restricted services. All non-audit services
must be specifically pre-approved by the Audit and Finance Committee.</P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR>
    <TD vAlign=top width="5%"><B>8.4</B> </TD>
    <TD>
      <P align=justify><B>External Auditor Service
Fees</B></P></TD></TR></TABLE>
<P align=justify>The aggregate fees billed by KPMG LLP (&#147;KPMG&#148;), the Company&#146;s
external auditor, for various audit-related and non-audit services rendered for
the fiscal years 2011 and 2010 were as follows:</P>
<P align=justify><B>Audit Fees </B>&#151; The aggregate audit fees billed by KPMG
were Cdn$1,752,531 for fiscal 2011 and Cdn$1,500,608 for fiscal 2010. 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.</P>
<P align=justify><B>Audit-Related Fees </B>&#151; The aggregate audit-related fees
billed by KPMG were Cdn$418,610 for fiscal 2011 and Cdn$786,003 for fiscal 2010.
These services consisted of due diligence services relating to actual and
potential acquisitions and also translation services in both years. Such due
diligence services related primarily to financial accounting and internal
control issues.</P>
<P align=justify><B>Tax Fees </B>&#151; The aggregate tax fees billed by KPMG were
Cdn$795,810 for fiscal 2011 and Cdn$416,780 for fiscal 2010. 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.</P>
<P align=center>22</P>
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<P align=justify><B>All Other Fees </B>&#151; The aggregate fees billed by KPMG for
all other professional services rendered were nil for both fiscal 2011 and
fiscal 2010.</P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR>
    <TD vAlign=top width="5%"><B>9.</B> </TD>
    <TD>
      <P align=justify><B>LEGAL PROCEEDINGS</B></P></TD></TR></TABLE>
<P align=justify>With the exception of the legal proceedings mentioned below,
the Company is only a party to claims and litigation arising in the normal
course of its operations. While we cannot predict the final outcome of the
claims and litigation arising in the normal course of the Company&#146;s operations,
management does not currently expect the resolution of these matters to have a
material adverse effect on the consolidated financial position or results of
operations of Gildan. </P>
<P align=justify>As of the date hereof, the proceedings with respect to which
Gildan was a party to or involved in during fiscal 2011, for claimed damages in
excess of 10% of its current assets, were the following:</P>
<P align=justify><B>Class Action Suits</B></P>
<P align=justify>The Company and certain of its senior officers were named as
defendants in a number of class action lawsuits filed in the United States
District Court for the Southern District of New York, which were subsequently
consolidated, alleging claims under the U.S. securities laws, as well as in
class action lawsuits filed in the Ontario Superior Court of Justice and in the
Quebec Superior Court. Each of these U.S. and Canadian lawsuits alleged, among
other things, that the defendants misrepresented the Company&#146;s financial
condition and its financial prospects in its earnings guidance concerning the
2008 fiscal year, which guidance was subsequently revised on April 29, 2008. The
Ontario suit claimed damages of Cdn$500 million, punitive damages of Cdn$5
million and other monetary relief. The Qu&#233;bec suit was for unspecified damages
and other monetary relief and the claims in the U.S. suit were for unspecified
damages.</P>
<P align=justify>On August 3, 2010, the Company announced that it had entered
into an agreement to settle all claims raised in these class action lawsuits,
subject to final approval from the courts, on behalf of all persons who acquired
the Company&#146;s Common Shares between August 2, 2007 and April 29, 2008 (the
&#147;Class Members&#148;). Final court approval of the settlement was obtained from each
of the courts in February and March 2011 and all of the actions have been
dismissed on terms including releases from Class Members of the claims against
the Company and the named senior officers. The settlement agreement provided for
a total settlement amount of $22.5 million, which has been entirely funded by
the Company&#146;s insurers. Therefore no provision has been recorded in the
consolidated financial statements and no amounts have been disbursed by the
Company in respect of the settlement.</P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR>
    <TD vAlign=top width="5%"><B>10.</B> </TD>
    <TD>
      <P align=justify><B>TRANSFER AGENT AND
REGISTRAR</B></P></TD></TR></TABLE>
<P align=justify>The transfer agent and registrar of the Company is
Computershare Investor Services Inc. having offices in Montreal and Toronto at
which the register of transfer of the Common Shares is held. The co-transfer
agent and co-registrar of the Company is Computershare Trust Company, N.A.,
having an office in Golden, Colorado.</P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR>
    <TD vAlign=top width="5%"><B>11.</B> </TD>
    <TD>
      <P align=justify><B>MATERIAL CONTRACTS</B></P></TD></TR></TABLE>
<P align=justify>Other than the agreements entered into during the normal course
of business, the only material agreements entered into in fiscal 2011, or before
fiscal 2011 and which are still in force, are the following: </P>
<UL style="TEXT-ALIGN: justify">
  <LI>The Merger Agreement dated April 11, 2011 by and among Gildan USA Inc.,
  Midas Acquisition Corp., Gold Toe Moretz Holdings Corp. and Blackstone Capital
  Partners V L.P. This agreement was filed through SEDAR on June 28, 2011; and
  <BR>&nbsp;
  <LI>The Shareholder Rights Plan Agreement approved by the Board of Directors
  on December 1, 2010, and which was subsequently submitted to the Company&#146;s
  shareholders for ratification at the annual shareholders&#146; meeting on February
  9, 2011. This agreement was filed through SEDAR on December 3, 2010. </LI></UL>
<P align=center>23</P>
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<TABLE
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cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR>
    <TD vAlign=top width="5%"><B>12.</B> </TD>
    <TD>
      <P align=justify><B>INTERESTS OF EXPERTS</B></P></TD></TR></TABLE>
<P align=justify>KPMG, the external auditor of the Company, reported on the 2011
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.</P>
<TABLE
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cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR>
    <TD vAlign=top width="5%"><B>13.</B> </TD>
    <TD>
      <P align=justify><B>FORWARD &#150; LOOKING
STATEMENTS</B></P></TD></TR></TABLE>
<P align=justify>Certain statements included in this Annual Information Form
constitute &#147;forward-looking statements&#148; within the meaning of the U.S.
<I>Private Securities Litigation Reform Act of 1995 </I>and Canadian securities
legislation and regulations, and are subject to important risks, uncertainties
and assumptions. This forward-looking information includes, amongst others,
information with respect to our objectives and the strategies to achieve these
objectives, as well as information with respect to our beliefs, plans,
expectations, anticipations, estimates and intentions. Forward-looking
statements generally can be identified by the use of conditional or
forward-looking terminology such as &#147;may&#148;, &#147;will&#148;, &#147;expect&#148;, &#147;intend&#148;,
&#147;estimate&#148;, &#147;project&#148;, &#147;assume&#148;, &#147;anticipate&#148;, &#147;plan&#148;, &#147;foresee&#148;, &#147;believe&#148; or
&#147;continue&#148; or the negatives of these terms or variations of them or similar
terminology. We refer you to the Company&#146;s filings with the Canadian securities
regulatory authorities and the U.S. Securities and Exchange Commission, as well
as the &#147;Critical Accounting Estimates&#148; and &#147;Financial Risk Management&#148; sections
beginning on page 26 and page 21 of the 2011 Annual MD&amp;A, respectively, and
the risks described under the section &#147;Risks and Uncertainties&#148; beginning on
page 38 of the 2011 Annual MD&amp;A for a discussion of the various factors that
may affect the Company&#146;s future results. Material factors and assumptions that
were applied in drawing a conclusion or making a forecast or projection are also
set out throughout this document.</P>
<P align=justify>Forward-looking information is inherently uncertain and the
results or events predicted in such forward-looking information may differ
materially from actual results or events. Material factors, which could cause
actual results or events to differ materially from a conclusion, forecast or
projection in such forward-looking information, include, but are not limited
to:</P>
<UL style="TEXT-ALIGN: justify">
  <LI>our ability to implement our growth strategies and plans, including
  achieving market share gains, implementing cost reduction initiatives and
  completing and successfully integrating acquisitions;
  <LI>the intensity of competitive activity and our ability to compete
  effectively;
  <LI>adverse changes in general economic and financial conditions globally or
  in one or more of the markets we serve;
  <LI>our reliance on a small number of significant customers;
  <LI>the fact that our customers do not commit contractually to minimum
  quantity purchases;
  <LI>our ability to anticipate changes in consumer preferences and trends;
  <LI>our ability to manage production and inventory levels effectively in
  relation to changes in customer demand;
  <LI>fluctuations and volatility in the price of raw materials used to
  manufacture our products, such as cotton and polyester fibres;
  <LI>our dependence on key suppliers and our ability to maintain an
  uninterrupted supply of raw materials and finished goods;
  <LI>the impact of climate, political, social and economic risks in the
  countries in which we operate or from which we source production;
  <LI>disruption to manufacturing and distribution activities due to labour
  disruptions, political instability, bad weather, natural disasters, pandemics
  and other unforeseen adverse events;
  <LI>changes to international trade legislation that the Company is currently
  relying on in conducting its manufacturing operations or the application of
  safeguards thereunder;
  <LI>factors or circumstances that could increase our effective income tax
  rate, including the outcome of any tax audits or changes to applicable tax
  laws or treaties;
  <LI>compliance with applicable environmental, tax, trade, employment, health
  and safety, and other laws and regulations in the jurisdictions in which we
  operate;
  <LI>our significant reliance on computerized information systems for our
  business operations;
  <LI>changes in our relationship with our employees or changes to domestic and
  foreign employment laws and regulations; </LI></UL>
<P align=center>24</P>
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<UL style="TEXT-ALIGN: justify">
  <LI>negative publicity as a result of violation of local labour laws or
  international labour standards, or unethical labour or other business
  practices by the Company or one of its third-party contractors;
  <LI>our dependence on key management and our ability to attract and/or retain
  key personnel;
  <LI>changes to and failure to comply with consumer product safety laws and
  regulations;
  <LI>adverse changes in third party licensing arrangements and licensed brands;

  <LI>our ability to protect our intellectual property rights;
  <LI>changes in accounting policies and estimates; and
  <LI>exposure to risks arising from financial instruments, including credit
  risk, liquidity risk, foreign currency risk and interest rate risk, as well as
  risks arising from commodity prices. </LI></UL>
<P align=justify>These factors may cause the Company&#146;s actual performance and
financial results in future periods to differ materially from any estimates or
projections of future performance or results expressed or implied by such
forward-looking statements. Forward-looking statements do not take into account
the effect that transactions or non-recurring or other special items announced
or occurring after the statements are made, may have on the Company&#146;s business.
For example, they do not include the effect of business dispositions,
acquisitions, other business transactions, asset write-downs, asset impairment
losses or other charges announced or occurring after forward-looking statements
are made. The financial impact of such transactions and non-recurring and other
special items can be complex and necessarily depends on the facts particular to
each of them. </P>
<P align=justify>There can be no assurance that the expectations represented by
our forward-looking statements 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 2012 financial
performance and may not be appropriate for other purposes. Furthermore, unless
otherwise stated, the forward-looking statements contained in this Annual
Information Form are made as of the date hereof, and we do not undertake any
obligation to update publicly or to revise any of the included forward-looking
statements, whether as a result of new information, future events or otherwise
unless required by applicable legislation or regulation. The forward-looking
statements contained in this Annual Information Form are expressly qualified by
this cautionary statement.</P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR>
    <TD vAlign=top width="5%"><B>14.</B> </TD>
    <TD>
      <P align=justify><B>ADDITIONAL INFORMATION</B></P></TD></TR></TABLE>
<P align=justify>Additional information, including directors&#146; and officers&#146;
remuneration and indebtedness, principal holders of the Company&#146;s securities and
securities authorized for issuance under the Company&#146;s equity compensation plans
is contained in the management proxy circular for its most recent annual meeting
of security holders that involve the election of directors. Additional financial
information is provided in the 2011 Financial Statements and the 2011 Annual
MD&amp;A for its most recently completed financial year, both of which are
incorporated herein by reference. </P>
<P align=justify>Copies of these documents and additional information relating
to Gildan may be found on the SEDAR website at www.sedar.com and the EDGAR
website at www.sec.gov and may also be obtained upon request to the Secretary of
Gildan at the following address: </P>
<P style="MARGIN-LEFT: 5%" align=justify>600 de Maisonneuve Boulevard West,
33<SUP>rd </SUP>Floor <BR>Montreal, Qu&#233;bec <BR>H3A 3J2 <BR>Telephone: (514)
735-2023 </P>
<P align=justify>The documents mentioned above, as well as Gildan&#146;s news
releases, are also available on the Company&#146;s website at www.gildan.com.</P>
<P align=center>25</P>
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<P align=center><B>APPENDIX A - MANDATE OF THE AUDIT AND FINANCE COMMITTEE
</B></P>
<P align=justify>The following description of the mandate of the Audit and
Finance Committee of the Company complies with applicable Canadian laws and
regulations, such as the rules of the Canadian Securities Administrators, and
with the disclosure and listing requirements of the Toronto Stock Exchange
(collectively, the &#147;<B>Canadian Corporate Governance Standards</B>&#148;), as they
exist on the date hereof. In addition, this mandate complies with applicable
U.S. laws, such as the <I>Sarbanes-Oxley Act of 2002</I>, and rules and
regulations adopted thereunder, and with the New York Stock Exchange&#146;s corporate
governance standards (collectively, the &#147;<B>US Corporate Governance
Standards</B>&#148;), as they exist on the date hereof. The mandate of the Audit and
Finance Committee of the Company (the &#147;<B>Audit Committee</B>&#148;) shall be
reviewed annually by the Board in order to ensure on-going compliance with such
standards.</P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR>
    <TD vAlign=top width="5%"><B>1.</B> </TD>
    <TD>
      <P align=justify><B>Membership and Quorum</B></P></TD></TR></TABLE>
<UL style="TEXT-ALIGN: justify">
  <LI>a minimum of three directors; <BR>&nbsp;
  <LI>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; <BR>&nbsp;
  <LI>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; <BR>&nbsp;
  <LI>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; <BR>&nbsp;
  <LI>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; <BR>&nbsp;
  <LI>the chair of the Compensation and Human Resources committee of the
  Corporation is a member of the Audit Committee; <BR>&nbsp;
  <LI>quorum of majority of members. </LI></UL>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR>
    <TD vAlign=top width="5%"><B>2.</B> </TD>
    <TD>
      <P align=justify><B>Frequency and Timing of
Meetings</B></P></TD></TR></TABLE>
<UL style="TEXT-ALIGN: justify">
  <LI>normally contemporaneously with the Company&#146;s Board meetings; <BR>&nbsp;
  <LI>at least four times a year and as necessary. </LI></UL>
<P align=center>26</P>
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<TABLE
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cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR>
    <TD vAlign=top width="5%"><B>3.</B> </TD>
    <TD>
      <P align=justify><B>Mandate</B></P></TD></TR></TABLE>
<P align=justify>The responsibilities of the Audit Committee include the
following:</P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD vAlign=top width="5%"><I>(a)</I> </TD>
    <TD>
      <P align=justify><I>Overseeing financial
reporting</I></P></TD></TR></TABLE>
<UL style="MARGIN-LEFT: 98px; TEXT-ALIGN: justify">
  <LI>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; <BR>&nbsp;
  <LI>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&amp;A disclosure
  and annual earnings press release, prior to their release, filing and
  distribution; <BR>&nbsp;
  <LI>reviewing, with management and the external auditors, quarterly
  consolidated financial statements of the Company and accompanying information,
  including the Company&#146;s MD&amp;A disclosure and quarterly earnings press
  release, prior to their release, filing and distribution; <BR>&nbsp;
  <LI>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;
  <BR>&nbsp;
  <LI>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;
  <BR>&nbsp;
  <LI>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; <BR>&nbsp;
  <LI>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; <BR>&nbsp;
  <LI>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; <BR>&nbsp;
  <LI>reviewing the external auditors&#146; quarterly review engagement report;
  <BR>&nbsp;
  <LI>overseeing the procedures to review management certifications filed with
  applicable securities regulators; <BR>&nbsp;
  <LI>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; <BR>&nbsp;
  <LI>overseeing the procedures to monitor the public disclosure of information
  by the Company; <BR>&nbsp;
  <LI>reviewing at least annually the Company&#146;s disclosure policy; </LI></UL>
<P align=center>27</P>
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<UL style="MARGIN-LEFT: 98px; TEXT-ALIGN: justify">
  <LI>reviewing the results of the external audit, any significant problems
  encountered in performing the audit, and management's response and/or action
  plan related to any Management Letter issued by the external auditors and any
  significant recommendations contained therein. </LI></UL>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD vAlign=top width="5%"><I>(b)</I> </TD>
    <TD>
      <P align=justify><I>Monitoring risk management and internal
      controls</I></P></TD></TR></TABLE>
<UL style="MARGIN-LEFT: 98px; TEXT-ALIGN: justify">
  <LI>receiving periodically management&#146;s report assessing the adequacy and
  effectiveness of the Company&#146;s disclosure controls and procedures; <BR>&nbsp;
  <LI>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; <BR>&nbsp;
  <LI>reviewing insurance coverage (annually and as may otherwise be
  appropriate); <BR>&nbsp;
  <LI>overseeing the processes in place to identify business risks and
  opportunities and overseeing the implementation of processes to manage these
  risks and opportunities; <BR>&nbsp;
  <LI>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; <BR>&nbsp;
  <LI>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; <BR>&nbsp;
  <LI>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; <BR>&nbsp;
  <LI>requesting the performance of any specific audit, as required. </LI></UL>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD vAlign=top width="5%"><I>(c)</I> </TD>
    <TD>
      <P align=justify><I>Monitoring internal
auditors</I></P></TD></TR></TABLE>
<UL style="MARGIN-LEFT: 98px; TEXT-ALIGN: justify">
  <LI>ensuring that the head of internal audit has a functional reporting
  relationship with the Audit Committee; <BR>&nbsp;
  <LI>overseeing the access by internal auditors to all levels of management in
  order to carry out their duties; <BR>&nbsp;
  <LI>regularly monitoring the internal audit function&#146;s performance, its
  responsibilities, staffing and budget; <BR>&nbsp;
  <LI>approving the appointment and termination of the Company&#146;s chief internal
  auditor; <BR>&nbsp;
  <LI>ensuring the ongoing accountability of the internal audit function to the
  Audit Committee and to the Board. </LI></UL>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD vAlign=top width="5%"><I>(d)</I> </TD>
    <TD>
      <P align=justify><I>Monitoring external
auditors</I></P></TD></TR></TABLE>
<UL style="MARGIN-LEFT: 98px; TEXT-ALIGN: justify">
  <LI>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; <BR>&nbsp;
  <LI>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 </LI></UL>
<P align=center>28</P>
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<UL style="MARGIN-LEFT: 98px; TEXT-ALIGN: justify">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;
  <BR>&nbsp;
  <LI>overseeing the direct reporting and accountability of the external
  auditors to the Audit Committee and to the Board; <BR>&nbsp;
  <LI>directly overseeing the external auditors and discussing with them the
  quality and not just the acceptability of the Company&#146;s accounting principles,
  including (i) critical accounting policies and practices used, (ii)
  alternative treatments of financial information that have been discussed with
  management, the ramification of their use and the treatment preferred by the
  external auditors, as well as (iii) other material written communications
  between the Company and the external auditors (including any disagreement with
  management and the resolution thereof); <BR>&nbsp;
  <LI>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;
  <BR>&nbsp;
  <LI>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;
  <BR>&nbsp;
  <LI>reviewing hiring policies for employees or former employees of the
  Company&#146;s firm of external auditors; <BR>&nbsp;
  <LI>overseeing the rotation of lead, concurring and other audit partners, to
  the extent required by Canadian and U.S. securities law standards. </LI></UL>
<TABLE
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  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD vAlign=top width="5%"><I>(e)</I> </TD>
    <TD>
      <P align=justify><I>Reviewing financings</I></P></TD></TR></TABLE>
<UL style="MARGIN-LEFT: 98px; TEXT-ALIGN: justify">
  <LI>reviewing the adequacy of the Company&#146;s financing, including terms and
  conditions of all new material financing arrangements. </LI></UL>
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  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD vAlign=top width="5%"><I>(f)</I> </TD>
    <TD>
      <P align=justify><I>Evaluating the performance of the Audit
      Committee</I></P></TD></TR></TABLE>
<UL style="MARGIN-LEFT: 98px; TEXT-ALIGN: justify">
  <LI>overseeing the existence of processes to annually evaluate the performance
  of the Audit Committee. </LI></UL>
<P align=justify>Because of the Audit Committee&#146;s demanding role and
responsibilities, the Board chair, together with the Corporate Governance
Committee chair, reviews any invitation to Audit Committee members to join the
audit committee of another publicly-listed entity. Where a member of the Audit
Committee simultaneously serves on the audit committee of more than three public
companies, including the Company, the Board determines whether such simultaneous
service impairs the ability of such member to effectively serve on the Audit
Committee and either requires a correction to the situation or discloses in the
Company&#146;s Management Proxy Circular that there is no such impairment.</P>
<P align=justify>As appropriate, the Audit Committee may obtain advice and
assistance from outside legal, accounting or other advisors and set and pay
their compensation, and so advise the Board chair and, if appropriate, the
external auditors; the Audit Committee makes arrangements for the appropriate
funding for payment of the external auditors and any advisors retained by it. In
addition, the Company will provide appropriate funding for the Audit Committee,
including the payment of all outside legal, accounting and other advisors
retained by the Audit Committee.</P>
<P align=justify>The internal auditors and the external auditors will have at
all times a direct line of communication with the Audit Committee. In addition,
each meets separately with the Audit Committee, without management, at least
once a quarter, during which the 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 </P>
<P align=center>29</P>
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<P align=justify>meets separately with management and also without management or
any non-independent directors present.</P>
<P align=justify>The Audit Committee reports annually to the Board on the
adequacy of its mandate. In addition, the chair of the Audit Committee reports
regularly to the Board on the business of the Audit Committee.</P>
<P align=justify>Nothing contained in the above mandate is intended to transfer
to the Audit Committee the Board&#146;s responsibility to ensure the Company&#146;s
compliance with applicable laws or regulations or to expand applicable standards
of liability under statutory or regulatory requirements for the directors or the
members of the Audit Committee. Even though the Audit Committee has a specific
mandate and its members may have financial experience, they do not have the
obligation to act as auditors or to perform auditing, or to determine that the
Company&#146;s financial statements are complete and accurate and are in accordance
with generally accepted accounting principles. Such matters are the
responsibility of management, the internal auditors and the external auditors.
Members of the Audit Committee are entitled to rely, absent knowledge to the
contrary, on (i) the integrity of the persons and organizations from whom they
receive information, (ii) the accuracy and completeness of the information
provided, and (iii) representations made by management as to the non-audit
services provided to the Company by the external auditors. The Audit Committee&#146;s
oversight responsibilities are not established to provide an independent basis
to determine that (i) management has maintained appropriate accounting and
financial reporting principles or appropriate internal controls and procedures,
or (ii) the Company&#146;s financial statements have been prepared and, if
applicable, audited in accordance with generally accepted accounting
principles.</P>
<P align=center>* * * </P>
<P align=center>30</P>
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  <TR>
    <TD width="5%"  >&nbsp;</TD>
    <TD vAlign=top width="5%"><B>A.</B> </TD>
    <TD>
      <P align=justify><B>Undertaking</B></P></TD></TR></TABLE>
<P align=justify style="text-indent: 10%">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 such securities. </P>
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  <TR>
    <TD width="5%"  >&nbsp;</TD>
    <TD vAlign=top width="5%"><B>B.</B> </TD>
    <TD>
      <P align=justify><B>Consent to Service of
Process</B></P></TD></TR></TABLE>
<P align=justify style="text-indent: 10%">The Registrant has previously filed with the SEC a written
irrevocable consent and power of attorney on Form F-X in connection with the
Class A Subordinate Voting Shares (now Common Shares). </P>
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  <TR>
    <TD width="5%"  >&nbsp;</TD>
    <TD vAlign=top width="5%"><B>C.</B> </TD>
    <TD>
      <P align=justify><B>Evaluation of disclosure controls and
      procedures</B></P></TD></TR></TABLE>
<P align=justify style="text-indent: 10%">Our disclosure controls and procedures are designed to ensure
that information required to be disclosed in our reports filed with the SEC is
recorded, processed, summarized and reported within the time periods specified
in the SEC&#146;s rules and forms and is accumulated and communicated to our
management, including our principal executive officer and our principal
financial officer, as appropriate, to allow timely decisions regarding required
disclosure. </P>
<P align=justify style="text-indent: 10%">An evaluation was carried out under the supervision of, and
with the participation of, our management, including our principal executive
officer and our principal financial officer, of the effectiveness of our
disclosure controls and procedures (as such term is defined in the Securities
Exchange Act of 1934 (the &#147;Exchange Act&#148;), as amended, Rules 13a-15(e) and
15d-15(e)) as of the end of the period covered by this Annual Report on Form
40-F. Based on that evaluation, our principal executive officer and our
principal financial officer concluded that our disclosure controls and
procedures were effective as of the end of such period. </P>
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  <TR>
    <TD width="5%"  >&nbsp;</TD>
    <TD vAlign=top width="5%"><B>D.</B> </TD>
    <TD>
      <P align=justify><B>Management&#146;s annual report on internal control over
      financial reporting</B></P></TD></TR></TABLE>
<P align=justify style="text-indent: 10%">Our management is responsible for establishing and maintaining
adequate internal control over financial reporting, as such term is defined in
Rules 13a-15(f) and 15d-15(f) under the Exchange Act.</P>
<P align=justify style="text-indent: 10%">Our internal control over financial reporting includes those
policies and procedures that: (1) pertain to the maintenance of records that, in
reasonable detail, accurately and fairly reflect the transactions and
dispositions of our assets; (2) provide reasonable assurance that transactions
are recorded as necessary to permit preparation of financial statements in
accordance with generally accepted accounting principles, and that our receipts
and expenditures are being made only in accordance with authorizations of our
management and directors; and (3) provide reasonable assurance regarding
prevention or timely detection of unauthorized acquisition, use or disposition
of our assets that could have a material effect on the financial statements.</P>
<P align=justify style="text-indent: 10%">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 2, 2011, based on the framework set forth
in<B> </B><I>Internal Control-Integrated Framework</I> issued by the Committee
of Sponsoring Organizations of the Treadway Commission (COSO). Based on its
evaluation under this framework, management concluded that our internal control
over financial reporting was effective as of that date.</P>
<P align=justify style="text-indent: 10%">Management&#146;s assessment of the effectiveness of our internal
control over financial reporting as of October 2, 2011 excluded Gold Toe Moretz
Holdings Corp. (&#147;Gold Toe Moretz&#148;), which we acquired on April 15, 2011. Gold
Toe Moretz is a wholly-owned subsidiary of ours whose total assets and total net
sales represented approximately 24% of our consolidated total assets and
approximately 7% of our consolidated net sales, respectively, as of and for the
year ended October 2, 2011. </P>
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  <TR>
    <TD width="5%"  >&nbsp;</TD>
    <TD vAlign=top width="5%"><B>E.</B> </TD>
    <TD>
      <P align=justify><B>Attestation report of the registered public accounting
      firm.</B></P></TD></TR></TABLE>
<P align=justify style="text-indent: 10%">KPMG LLP (&#147;KPMG&#148;), an independent registered public accounting
firm, that audited and reported on our financial statements attached as Exhibit
99.2 to this Annual Report on Form 40-F, has issued an attestation report on the
effectiveness of our internal control over financial reporting as of October 2,
2011. The attestation report is included on page 52 of the financial statements
attached as Exhibit 99.2 to this Annual Report on Form 40-F. </P>
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  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD vAlign=top width="5%"><B>F.</B> </TD>
    <TD>
      <P align=justify><B>Changes in internal controls over financial
      reporting.</B></P></TD></TR></TABLE>
<P align=justify style="text-indent: 10%">There have been no changes during fiscal year 2011 in our
internal control over financial reporting that have materially affected, or are
reasonably likely to materially affect, our internal control over financial
reporting. </P>
<P align=justify style="text-indent: 10%">The design of any system of controls and procedures is based in
part upon certain assumptions about the likelihood of certain events. There can
be no assurance that any design will succeed in achieving its stated goals under
all potential future conditions, regardless of how remote. </P>
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  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD vAlign=top width="5%"><B>G.</B> </TD>
    <TD>
      <P align=justify><B>Audit Committee Financial
Experts</B></P></TD></TR></TABLE>
<P align=justify style="text-indent: 10%">The Registrant&#146;s board of directors has determined that it has
at least four (4) audit committee financial experts serving on its Audit and
Finance Committee. Mr. William D. Anderson, Mr. Russell Goodman, Mr. Pierre
Robitaille, and Mr. Gonzalo F. Valdes-Fauli 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. Anderson, Mr. Goodman, Mr.
Robitaille, and Mr. Valdes-Fauli as audit committee financial experts does not
make Mr. Anderson, Mr. Goodman, Mr. Robitaille, and Mr. Valdes-Fauli &#147;experts&#148;
for any purpose, impose any duties, obligations or liability on Mr. Anderson,
Mr. Goodman, Mr. Robitaille, and Mr. Valdes-Fauli that are greater than those
imposed on members of the Audit and Finance 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 and Finance Committee.</P>
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  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD vAlign=top width="5%"><B>H.</B> </TD>
    <TD>
      <P align=justify><B>Code of Ethics</B></P></TD></TR></TABLE>
<P align=justify style="text-indent: 10%">The Registrant has adopted a Code of Ethics and Code of Conduct
(the &#147;Code of Ethics&#148;) that applies to all employees and officers, including its
principal executive officer, principal financial officer and principal
accounting officer. The Code of Ethics is available at the Registrant&#146;s Internet
website, <U><FONT
color=#0000ff>www.gildan.com/corporate/IR/corporateGovernance.cfm</FONT></U>,
and is available, without charge, in print to any shareholder who requests it.
</P>
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  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD vAlign=top width="5%"><B>I.</B> </TD>
    <TD>
      <P align=justify><B>Principal Accountant Fees and
  Services</B></P></TD></TR></TABLE>
<P align=justify style="text-indent: 10%">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 2011. The
aggregate fees billed for professional services by KPMG for each of the last two
(2) fiscal years, were as follows: </P>
<P style="MARGIN-LEFT: 5%" align=justify><I>Audit Fees</I> &#151; The aggregate audit
fees billed by KPMG were Cdn$1,752,531 for fiscal 2011 and Cdn$1,500,608 for
fiscal 2010. 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. </P>
<P style="MARGIN-LEFT: 5%" align=justify><I>Audit-Related Fees</I> &#151; The
aggregate audit-related fees billed by KPMG were Cdn$418,610 for fiscal 2011 and
Cdn$786,003 for fiscal 2010. These services consisted of due diligence services
relating to actual and potential acquisitions and also translation services in
both years. Such due diligence services related primarily to financial
accounting and internal control issues. </P>
<P style="MARGIN-LEFT: 5%" align=justify><I>Tax Fees</I> &#151; The aggregate tax
fees billed by KPMG were Cdn$795,810 for fiscal 2011 and Cdn$416,780 for fiscal
2010. 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. </P>
<P style="MARGIN-LEFT: 5%" align=justify><I>All Other Fees</I> &#151; The aggregate
fees billed by KPMG for all other professional services rendered were nil for
both fiscal 2011 and fiscal 2010. </P>
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<P align=justify style="text-indent: 10%">All fees billed to the Registrant by KPMG in fiscal 2011 were
pre-approved by the Registrant&#146;s Audit and Finance Committee pursuant to the
procedures and policies set forth in the Audit and Finance Committee mandate and
pursuant to applicable legislation. The mandate of the Audit and Finance
Committee is available on the Registrant&#146;s Internet website at <U><FONT
color=#0000ff>www.gildan.com/corporate/IR/corporateGovernance.cfm</FONT></U>.</P>
<P align=justify style="text-indent: 10%">In fiscal 2011 and fiscal 2010, the Company&#146;s Audit and Finance
Committee did not approve any audit-related, tax or other services pursuant to
paragraph (c) (7) (i) (C) of Rule 2-01 of Regulation S-X. </P>
<TABLE
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  <TR>
    <TD width="5%"  >&nbsp;</TD>
    <TD vAlign=top width="5%"><B>J.</B> </TD>
    <TD>
      <P align=justify><B>Off-Balance Sheet
Arrangements</B></P></TD></TR></TABLE>
<P align=justify style="text-indent: 10%"><I>Operating Leases and Commitments </I></P>
<P align=justify style="text-indent: 10%">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 19 of its
Management&#146;s Discussion and Analysis (see Exhibit 99.1) (the &#147;MD&amp;A&#148;). As
disclosed in Note 14 to the Registrant&#146;s Consolidated Financial Statements (see
Exhibit 99.2), the Registrant has issued standby letters of credit and corporate
guarantees primarily from various servicing agreements amounting to $15.1
million at October 2, 2011. </P>
<P align=justify style="text-indent: 10%"><I>Derivative Financial Instruments</I></P>
<P align=justify style="text-indent: 10%">From time to time, the Registrant uses forward foreign exchange
contracts and zero-cost collar options 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 whereas a zero-cost collar option
represents an option to convert foreign currency within a range on a specific
date. The Registrant has also entered into a series of interest rate swap
contracts to fix the variable interest rates on a designated portion of the
borrowings under the revolving long-term credit facility. The Registrant is
subject to financial risks related to its exposure to interest rate and foreign
currency fluctuations, as well as credit risk in the event of failure by a
counterparty to meet its obligations. The Registrant&#146;s exposure to financial
risks is described in more detail in the &#147;Financial Risk Management&#148; section of
its MD&amp;A beginning on page 21 (see Exhibit 99.1) . </P>
<P align=justify style="text-indent: 10%">The Registrant does not use derivative financial instruments
for speculative purposes. Forward foreign exchange contracts and zero-cost
collar options are entered into with maturities not exceeding twelve months and
interest rate swap contracts are entered into with maturities not exceeding the
maturity date of the revolving long-term credit facility. </P>
<P align=justify style="text-indent: 10%">For the years ended October 2, 2011 and October 3, 2010, net
earnings included a recognized loss of $7.0 million and a recognized gain of
$3.9 million, respectively, both relating to derivative financial instruments.
</P>
<P align=justify style="text-indent: 10%">As disclosed in Note 22 to the Registrant&#146;s Consolidated
Financial Statements (see exhibit 99.2), at October 2, 2011 the Registrant had
outstanding derivative financial instruments relating to commitments to buy and
sell foreign currencies through forward foreign exchange contracts and zero-cost
collar options and instruments to fix the variable interest rates on the
revolving long-term credit facility. The fair value of the forward foreign
exchange contracts, zero-cost collar options and interest rate swap contracts,
determined using observable market inputs, was a net liability of $0.7 million
as at October 2, 2011 and a net liability of $2.0 million as at October 3, 2010.
</P>
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  <TR>
    <TD width="5%"  >&nbsp;</TD>
    <TD vAlign=top width="5%"><B>K.</B> </TD>
    <TD>
      <P align=justify><B>Tabular Disclosure of Contractual
    Obligations</B></P></TD></TR></TABLE>
<P align=justify style="text-indent: 10%">See page 19 of Exhibit 99.1. </P>
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  <TR>
    <TD width="5%"  >&nbsp;</TD>
    <TD vAlign=top width="5%"><B>L.</B> </TD>
    <TD>
      <P align=justify><B>Corporate Governance
Guidelines</B></P></TD></TR></TABLE>
<P align=justify style="text-indent: 10%">The Registrant has adopted Corporate Governance Guidelines as
well as mandates for its board of directors and each of its three committees
which are available at the Registrant&#146;s Internet website, <U><FONT
color=#0000ff>www.gildan.com/corporate/IR/corporateGovernance.cfm</FONT></U>,
and are available in print to any shareholder who requests them. </P>
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  <TR>
    <TD width="5%"  >&nbsp;</TD>
    <TD vAlign=top width="5%"><B>M.</B> </TD>
    <TD>
      <P align=justify><B>Identification of the Audit
  Committee</B></P></TD></TR></TABLE>
<P align=justify style="text-indent: 10%">The Registrant has a standing audit committee
established in accordance with Section 3 (a) (58) (A) of the Exchange Act. The
members of the Registrant&#146;s Audit and Finance Committee are William D. Anderson,
George Heller, Pierre Robitaille, Richard P. Strubel, Gonzalo F.
Valdez-Fauli, and Russell Goodman, who joined the Audit and Finance Committee in
August 2011. Please refer to the section 8 of our Annual Information Form
entitled &#147;Audit and Finance Committee Disclosure&#148;, included herein, for
additional information.</P>
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  <TR>
    <TD width="5%"  >&nbsp;</TD>
    <TD vAlign=top width="5%"><B>N.</B> </TD>
    <TD>
      <P align=justify><B>Summary of Significant Differences from NYSE Corporate
      Governance Rules</B></P></TD></TR></TABLE>
<P align=justify style="text-indent: 10%">The Registrant is committed to adopting and adhering to
corporate governance practices that either meet or exceed applicable Canadian
and U.S. corporate governance standards. As a Canadian reporting issuer with
securities listed on the Toronto Stock Exchange (TSX) and the New York Stock
Exchange (NYSE), the Registrant complies with all applicable rules adopted by
the Canadian Securities Administrators as well as the rules of the U.S.
Securities and Exchange Commission giving effect to the provisions of the U.S.
Sarbanes-Oxley Act of 2002. </P>
<P align=justify style="text-indent: 10%">Although many of the NYSE Corporate Governance Standards do not
apply to the Registrant, it nevertheless voluntarily complies with most of the
NYSE Standards. In fact, the Registrant&#146;s corporate governance practices differ
significantly in only one respect from those required of U.S. domestic issuers
under the NYSE Standards, which is with respect to the approval of equity
compensation plans. The NYSE Standards require shareholder approval of all
equity compensation plans and material revisions to such plans, regardless of
whether the securities to be delivered under such plans are newly issued or
purchased on the open market, subject to a few limited exceptions. The TSX
Rules, however, do not require shareholder approval in all those circumstances.
Hence, only the creation or material amendments to equity compensation plans
that provide for new issuances of securities are subject to shareholder
approval. The Registrant has in place plans which did not require the approval
of its shareholders under the TSX Rules but which could have required the
approval of its shareholders under the NYSE Standards as applicable to U.S.
domestic issuers. </P>
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<P align=center><B>SIGNATURES </B></P>
<P align=justify style="text-indent: 5%">Pursuant to the requirements of the Exchange Act, the
Registrant certifies that it meets all of the requirements for filing on Form
40-F and has duly caused this annual report to be signed on its behalf by the
undersigned, thereto duly authorized. </P>
<P style="MARGIN-LEFT: 5%" align=justify>DATED: December 9, 2011 </P>
<TABLE
style="FONT-SIZE: 10pt; BORDER-LEFT-COLOR: black; BORDER-BOTTOM-COLOR: black; BORDER-TOP-COLOR: black; BORDER-COLLAPSE: collapse; BORDER-RIGHT-COLOR: black"
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD align=left  >&nbsp;</TD>
    <TD align=left width="48%" colSpan=2><B>GILDAN ACTIVEWEAR INC.</B> </TD></TR>
  <TR>
    <TD  >&nbsp;</TD>
    <TD align=left width="5%" >&nbsp; </TD>
    <TD align=left width="43%">&nbsp; </TD></TR>
  <TR>
    <TD  >&nbsp;</TD>
    <TD noWrap align=left width="5%" >&nbsp; </TD>
    <TD align=left width="43%">&nbsp; </TD></TR>
  <TR vAlign=top>
    <TD align=left  >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=left width="48%"
    colSpan=2>/s/ <I>Lindsay Matthews</I> </TD></TR>
  <TR vAlign=top>
    <TD align=left  >&nbsp;</TD>
    <TD noWrap align=left width="5%"
      >Name:&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    </TD>
    <TD align=left width="43%">Lindsay Matthews </TD></TR>
  <TR vAlign=top>
    <TD align=left  ></TD>
    <TD noWrap align=left width="5%" >Title: </TD>
    <TD align=left width="43%">Vice-President, General Counsel and Corporate
      Secretary </TD></TR></TABLE><BR>
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<P align=center><B>EXHIBIT INDEX </B></P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD align=center ><B><U>Exhibit No.</U></B> </TD>
    <TD align=center width="90%"><B><U>Description</U></B> </TD></TR>
  <TR vAlign=top>
    <TD align=center bgColor=#eeeeee ><a href="exhibit99-1.htm">99.1 </a> </TD>
    <TD align=left width="90%" bgColor=#eeeeee><a href="exhibit99-1.htm">Management&#146;s Discussion and
      Analysis of the Registrant for the year ended October 2, 2011 </a> </TD></TR>
  <TR vAlign=top>
    <TD align=center ><a href="exhibit99-2.htm">99.2 </a> </TD>
    <TD align=left width="90%"><a href="exhibit99-2.htm">Audited comparative consolidated financial
      statements of the Registrant as at and for the year ended October 2, 2011
    </a>
    </TD></TR>
  <TR vAlign=top>
    <TD align=center bgColor=#eeeeee ><a href="exhibit99-3.htm">99.3 </a> </TD>
    <TD align=left width="90%" bgColor=#eeeeee><a href="exhibit99-3.htm">Consent of KPMG LLP
    </a> </TD></TR>
  <TR vAlign=top>
    <TD align=center ><a href="exhibit99-4.htm">99.4 </a> </TD>
    <TD align=left width="90%"><a href="exhibit99-4.htm">Reconciliation to United States GAAP
    </a> </TD></TR>
  <TR vAlign=top>
    <TD align=center bgColor=#eeeeee ><a href="exhibit99-5.htm">99.5 </a> </TD>
    <TD align=left width="90%" bgColor=#eeeeee><a href="exhibit99-5.htm">Officers&#146; Certifications
      Required by Rule 13a-14(a) or Rule 15d-14(a) </a> </TD></TR>
  <TR vAlign=top>
    <TD align=center ><a href="exhibit99-6.htm">99.6 </a> </TD>
    <TD align=left width="90%"><a href="exhibit99-6.htm">Officers&#146; Certifications Required by Rule
      13a-14(b) or Rule 15d-14(b) and Section 1350 of Chapter 63 of Title 18 of
      the United States Code </a> </TD></TR></TABLE><BR>
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<TYPE>EX-99.1
<SEQUENCE>2
<FILENAME>exhibit99-1.htm
<DESCRIPTION>EXHIBIT 99.1
<TEXT>



<HTML>
<HEAD>
   <TITLE>Gildan Activewear Inc.: Exhibit 99.1 - Filed by newsfilecorp.com</TITLE>

</HEAD>

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

<HR noshade align="center" width=100% size=3 color="black">
<A name=page_1></A>
<P align=right><b>Exhibit 99.1</b></P>
<P align=right><IMG src="mdax1x1.jpg" border=0 width="289" height="54"> </P>
<P align=right><FONT size=7>2011</FONT><BR><FONT size=7>REPORT
TO</FONT><BR><FONT size=7>SHAREHOLDERS</FONT><BR><FONT size=6><FONT
size=4>December 9, 2011</FONT></FONT><BR></P>
<DIV>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
borderColor=#000000 cellSpacing=0 cellPadding=1 width="100%" border=1>

  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B>MD&amp;A:
    </B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="8%">&nbsp;
    </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      bgColor=#eeeeee>OUR BUSINESS </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="8%"
    bgColor=#eeeeee>2 </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right>STRATEGY AND
      OBJECTIVES </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="8%">6
  </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      bgColor=#eeeeee>OPERATING RESULTS </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="8%"
    bgColor=#eeeeee>7 </TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right>SUMMARY OF
      QUARTERLY RESULTS </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="8%">14</TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      bgColor=#eeeeee>FINANCIAL CONDITION </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="8%"
    bgColor=#eeeeee>16</TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right>CASH FLOWS </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="8%">18</TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      bgColor=#eeeeee>LIQUIDITY AND CAPITAL RESOURCES </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="8%"
    bgColor=#eeeeee>18 </TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right>LEGAL PROCEEDINGS
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="8%">21
  </TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      bgColor=#eeeeee>OUTLOOK </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="8%"
    bgColor=#eeeeee>21 </TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right>FINANCIAL RISK
      MANAGEMENT </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="8%">21
  </TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      bgColor=#eeeeee>CRITICAL ACCOUNTING ESTIMATES </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="8%"
    bgColor=#eeeeee>26 </TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right>ACCOUNTING
      POLICIES AND FUTURE ACCOUNTING STANDARDS </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="8%">29</TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      bgColor=#eeeeee>RELATED PARTY TRANSACTIONS </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="8%"
    bgColor=#eeeeee>36</TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right>DISCLOSURE
      CONTROLS </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="8%">36</TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      bgColor=#eeeeee>INTERNAL CONTROL OVER FINANCIAL REPORTING </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="8%"
    bgColor=#eeeeee>37 </TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right>RISKS AND
      UNCERTAINTIES </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="8%">38
  </TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      bgColor=#eeeeee>DEFINITION AND RECONCILIATION OF NON-GAAP MEASURES </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="8%"
    bgColor=#eeeeee>45</TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right>FORWARD-LOOKING
      STATEMENTS </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="8%">48
  </TD></TR>
  <TR>
    <TD bgColor=#eeeeee>&nbsp; </TD>
    <TD width="8%" bgColor=#eeeeee>&nbsp; </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right>MANAGEMENT'S
      RESPONSIBILITY FOR FINANCIAL REPORTING </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="8%">50
  </TD></TR>
  <TR>
    <TD bgColor=#eeeeee>&nbsp; </TD>
    <TD width="8%" bgColor=#eeeeee>&nbsp; </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right>AUDITED
      CONSOLIDATED FINANCIAL STATEMENTS </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="8%">51
  </TD></TR>
  <TR>
    <TD bgColor=#eeeeee>&nbsp; </TD>
    <TD width="8%" bgColor=#eeeeee>&nbsp; </TD></TR>
  <TR vAlign=top>
    <TD align=right>NOTES TO AUDITED CONSOLIDATED FINANCIAL STATEMENTS </TD>
    <TD align=right width="8%">57 </TD></TR></TABLE></DIV><BR>
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    <td width="50%">

<IMG src="mdax2x1.jpg" border=0 width="96" height="21"> </td>
    <td width="50%">
    <p align="right"><font size="2">MANAGEMENT&#146;S DISCUSSION AND ANALYSIS</font></td>
  </tr>
</table>
<P align="justify">
<br>
This Management&#146;s Discussion and Analysis (MD&amp;A) comments on Gildan&#146;s operations, performance and financial condition as at and for the years ended October 2, 2011 and October 3, 2010, compared to the preceding years. For a complete
understanding of our business environment, trends, risks and uncertainties and the effect of accounting estimates on our results of operations and financial condition, this MD&amp;A should be read together with the 2011 audited annual consolidated
financial statements and the related notes. This annual MD&amp;A is dated December 9, 2011. All amounts in this report are in U.S. dollars, unless otherwise noted.</P>
<P align="justify">
All financial information contained in this annual MD&amp;A and in the audited annual 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;Definition and Reconciliation of Non-GAAP Measures&#148; in this annual MD&amp;A. The audited annual consolidated financial statements and this MD&amp;A were reviewed by Gildan&#146;s Audit and Finance
Committee and were approved by our Board of Directors. </P>
<P align="justify">
Additional information about Gildan, including our 2011 Annual Information Form, is available on our website at www.gildan.com, on the SEDAR website at www.sedar.com, and on the EDGAR section of the U.S. Securities and Exchange Commission website
(which includes the Annual Report on Form 40-F) at www.sec.gov. </P>
<P align="justify">
This document contains forward-looking statements, which are qualified by reference to, and should be read together with, the &#147;Forward-Looking Statements&#148; cautionary notice on page 48. </P>
<P align="justify">
In this annual MD&amp;A, &#147;Gildan&#148;, the &#147;Company&#148;, or the words &#147;we&#148;, &#147;us&#148;, &#147;our&#148; refer, depending on the context, either to Gildan Activewear Inc. or to Gildan Activewear Inc. together with its
subsidiaries and joint venture. </P>
<P align="justify">
<B><font size="3">OUR BUSINESS</font></B></P>
<P align="justify">
<B>O</B><B>UR </B><B>P</B><B>RODUCTS AND </B><B>M</B><B>ARKETS</B><BR>
</P>
<P align="justify">
We are a marketer and global low-cost vertically-integrated manufacturer of quality branded basic apparel. We service customers requiring an efficient supply chain and consistent product quality for high-volume replenishment programs. Gildan&reg; is
the leading brand of activewear for the screenprint channel in the U.S. and Canada and the Company is continuing to grow its presence in Europe, Mexico and the Asia-Pacific region. We are also one of the world&#146;s largest suppliers of branded and
private label athletic, casual and dress socks sold to a broad spectrum of retailers in the U.S. For the year ended October 2, 2011 and
prior years, the Company operated in one business segment, being high-volume, basic and frequently
replenished apparel. Beginning in the first quarter of fiscal 2012, the Company began managing and reporting the operating results of its business under two separate financial reporting segments, &#147;Screenprint&#148; and &#147;Retail&#148;, as
described under the section entitled &#147;New Segmented Reporting Structure&#148;
in this annual MD&amp;A. </P>
<P align="justify">
In the screenprint channel, we manufacture and distribute T-shirts, fleece and sport shirts in undecorated &#147;blank&#148; form primarily under our industry leading Gildan&reg; brand in large quantities which are primarily sold to wholesale
distributors, which are subsequently sold to screenprinters and embroiderers who decorate the products with designs and logos. Screenprinters and embroiderers 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 also provide undecorated products to large branded apparel companies and retailers
that sell imprinted activewear and are currently not supplied by our existing U.S. wholesale distributors.</P>
<P align="right">
GILDAN 2011 REPORT TO SHAREHOLDERS P.2</P>

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    <td width="50%">
    <p align="right"><font size="2">MANAGEMENT&#146;S DISCUSSION AND ANALYSIS</font></td>
  </tr>
</table>
<P align="justify">
<BR>
</P>
<P align="justify">
In the U.S. mass-market and other retailer channels, the majority of our sales consist of a variety of styles and brands of socks. We supply various private label and branded sock programs and we are increasingly focused on developing the
Gildan&reg; brand within the retail channel. With the recent acquisition of Gold Toe Moretz Holdings Corp. (Gold Toe Moretz), effective April 15, 2011, we now sell a variety of branded athletic, casual and dress socks to national chains, mass-market
retailers, price clubs, department stores and specialty sporting goods stores in the United States. The Gold Toe Moretz brand portfolio includes the core Gold Toe&reg; brand, which has high consumer brand recognition in national chains, department
stores, and price clubs; the SilverToe&reg; brand for a national chain; the GT&reg; brand which we believe has potential for development in the mass-market; the PowerSox&reg; athletic performance brand which is mainly distributed through sports
specialty retailers and national chains; the Auro&reg; dress and casual brand for the mass-market; and All Pro&reg;, an athletic sock brand for the mass-market. In addition, we have contractual licensing relationships, with Under Armour&reg; and
New Balance&reg; as the exclusive U.S. sock licensee for these brands. We are also pursuing a strategy  to grow our
sales of underwear and activewear products in the U.S. retail market, particularly under our
company-owned brands.</P>
<P align="justify">
The vast majority 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 vast 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.</P>
<P align="justify">
Our value proposition is based on providing consistent high quality, competitive pricing and fast and flexible replenishment together with our commitment to corporate social responsibility and environmental sustainability. As a vertically-integrated
producer which owns and operates the majority of its manufacturing facilities, we are 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 for the products we produce. 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 allow Gildan to deliver enhanced product
features for its sock products. These innovations have resulted in further improving the value proposition of both our activewear and sock products to our customers.</P>
<P align="justify">
<B><font size="2">O</font></B><font size="2"><B>UR OPERATIONS</B></font><B><font size="2">
</font> </B>
</P>
<P align="justify">
<B>Manufacturing Operations</B><BR>
</P>
<P align="justify">
To support our sales in the North American and international markets in which we compete, we have developed two main manufacturing hubs in Central America and the Caribbean Basin where we have built modern textile manufacturing facilities for the
production of activewear and underwear fabric, as well as sock manufacturing facilities. We also operate sewing facilities which support the fabric production from our textile facilities. The Company also owns a vertically-integrated manufacturing
facility for the production of activewear in Bangladesh, which was acquired in fiscal 2010 as an initial step towards the potential establishment of a manufacturing hub to support our growth in targeted markets in Asia and Europe.</P>
<P align="justify">
<U>Central American manufacturing hub</U><BR>
</P>
<P align="justify">
Our largest manufacturing hub is based in Honduras and includes three vertically-integrated textile facilities (Rio Nance 1, Rio Nance 2 and Rio Nance 5). During fiscal 2011, we completed the construction of our Rio Nance 5 textile facility and
commenced operations at the end of the fiscal year. The textiles produced at the Rio Nance complex are sewn in our sewing facilities in Honduras and Nicaragua. At the same complex, we have also constructed and operate two integrated sock
manufacturing facilities (Rio Nance 3 and Rio Nance 4). Rio Nance 4 is our most recent sock facility which began production in April 2010 and is expected to support future sales growth in the sock category, provide the opportunity to consolidate
some
of the third-party sourced products sold under the Gold Toe Moretz brands and position us to reduce our sock manufacturing costs. </P>
<P align="right">
GILDAN 2011 REPORT TO SHAREHOLDERS P.3</P>

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    <td width="50%">
    <p align="right"><font size="2">MANAGEMENT&#146;S DISCUSSION AND ANALYSIS</font></td>
  </tr>
</table>
<P align="justify">
<U><FONT color="#7e7e7e"><br>
</FONT>Caribbean Basin manufacturing hub</U><BR>
</P>
<P align="justify">
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.</P>
<P align="justify">
<B>Sourcing Operations</B><BR>
</P>
<P align="justify">
The acquisition of Gold Toe Moretz significantly expands our sourcing capabilities. Gold Toe Moretz has long-standing product sourcing network relationships and expertise which are expected to complement Gildan&#146;s large scale,
vertically-integrated manufacturing. The majority of the Gold Toe Moretz products are currently sourced from third-party suppliers, primarily in Asia. Gold Toe Moretz operates sourcing offices in Asia to facilitate sourcing decisions and supply
chain management. Gildan is exploring opportunities to utilize Gold Toe Moretz&#146;s sourcing network to introduce new products within its existing channels of distribution.<B> </B></P>
<P align="justify">
<B>Yarn-Spinning</B><BR>
</P>
<P align="justify">
We source our yarn requirements primarily from the U.S., from third-party yarn suppliers with whom we have supply agreements, as well as from our joint venture, CanAm Yarns, LLC (CanAm), which operates yarn-spinning facilities in Georgia and North
Carolina, U.S.</P>
<P align="justify">
<B>Sales, Marketing and Distribution</B><BR>
</P>
<P align="justify">
Our sales and marketing office which services our global screenprint markets is located in Christ Church, Barbados. We operate our retail sales and marketing activities primarily from our Charleston, South Carolina location. Our sales and marketing
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.</P>
<P align="justify">
We distribute our activewear products for the screenprint channel primarily out of our distribution centre in Eden, North Carolina. We also use third-party warehouses in the western United States, Canada, Mexico, Europe and Asia to service our
customers in these markets. Distribution activities related to servicing retail customers are primarily conducted out of our distribution centre in Charleston, South Carolina. In addition, with the acquisition of Gold Toe Moretz, we service some of
our retail customers from retail distribution facilities in North Carolina, some of which are expected to be consolidated and transitioned to the Charleston distribution centre. Gold Toe Moretz also owns and operates retail stores located in outlet
malls throughout the United States. Since the acquisition of Gold Toe Moretz, two additional outlet stores were opened bringing the total number of retail stores to 31. </P>
<P align="justify">
<B>Employees and Corporate Office</B><BR>
</P>
<P align="justify">
We currently employ approximately 29,500 full-time employees worldwide. Our corporate head office is located in Montreal, Canada. </P>
<P align="justify">
<B><font size="2">C</font></B><font size="2"><B>OMPETITIVE ENVIRONMENT</B></font></P>
<P align="justify">
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, strategically-located manufacturing hubs which allows us to increase the efficiency of our operations and reduce costs, and to offer competitive pricing, consistent product quality, and a reliable supply chain
which efficiently services replenishment programs with short production/delivery cycle times. Our acquisition of Gold Toe Moretz complements Gildan&#146;s competitive strengths with enhanced brand management experience and expertise,
merchandising, technical innovation, design and sourcing capabilities. Our commitment to leading environmental and social responsibility practices is also an increasingly important factor for our customers.</P>
<P align="right">
GILDAN 2011 REPORT TO SHAREHOLDERS P.4</P>

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    <td width="50%">
    <p align="right"><font size="2">MANAGEMENT&#146;S DISCUSSION AND ANALYSIS</font></td>
  </tr>
</table>
<P align="justify">
<br>
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. In addition, our Gold Toe and licensed sock brands for the retail channel, compete with brands which are owned or licensed by
companies that manufacture and/or source socks, such as Renfro Corporation, as well as brands from well-established U.S. fashion apparel and athletic companies, which primarily source their products from Asia. 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.</P>
<P align="justify">
<B><font size="2">E</font></B><font size="2"><B>CONOMIC ENVIRONMENT AND BUSINESS OUTLOOK</B></font></P>
<P align="justify">
Overall economic conditions continue to be weak and volatile. In the first half of fiscal 2011, we experienced a recovery in demand in our target screenprint markets. However, starting with the third quarter of fiscal 2011, market conditions
weakened and demand in the U.S. wholesale distributor channel declined approximately 8% in the second half of fiscal 2011.</P>
<P align="justify">
The apparel industry is also managing through a unique transition from rapid inflation in cotton costs to rapid deflation. Towards the latter part of fiscal 2010 we began to see a dramatic increase in cotton prices which peaked to historical new
highs during fiscal 2011. In response to the significant increase in cotton costs, apparel suppliers, including Gildan, implemented successive price increases beginning in the fourth quarter of fiscal 2010 and during fiscal 2011. During the second
half of fiscal 2011, cotton future prices began a rapid and significant decline, but with no immediate benefit on industry costs as existing manufacturer inventories continue to reflect cotton purchased at the previously higher levels of cotton
prices. </P>
<P align="justify">
Short-term promotional discounting in the U.S. wholesale distributor channel began to increase at the end of the fourth quarter of fiscal 2011 and has continued to increase in the first quarter of fiscal 2012 despite the fact that industry suppliers
have not yet consumed high cost cotton inventories. In addition, in the first quarter of fiscal 2012, distributors have been supplying screenprinter demand without replenishing inventory levels, which we believe was mainly due to the anticipation by
distributors of selling price reductions from suppliers. Weak market conditions in the retail channel are also reflecting delayed replenishment of inventories by retailers. </P>
<P align="justify">
In order to enable distributors to plan their business and to stimulate screenprinter demand for Gildan products, on November 30, 2011, Gildan announced a reduction in selling prices in the U.S. distributor channel, effective December 5, 2011. In
addition, Gildan concurrently announced its intention to apply the benefit of the price reduction to existing distributor inventories, which is projected to result in a distributor inventory devaluation discount of approximately &#36;17 million, and
which will be recorded as a reduction to net sales during the first quarter of fiscal 2012.</P>
<P align="justify">
A discussion of management&#146;s expectations as to our outlook for fiscal 2012 is contained in our fourth quarter earnings results press release dated December 1, 2011 under the section entitled &#147;Outlook&#148;. </P>
<P align="right">
GILDAN 2011 REPORT TO SHAREHOLDERS P.5</P>

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    <td width="50%">

<IMG src="mdax2x1.jpg" border=0 width="96" height="21"> </td>
    <td width="50%">
    <p align="right"><font size="2">MANAGEMENT&#146;S DISCUSSION AND ANALYSIS</font></td>
  </tr>
</table>
<P align="justify">
<B><br>
N</B><B>EW </B><B>S</B><B>EGMENTED </B><B>R</B><B>EPORTING </B><B>S</B><B>TRUCTURE</B><BR>
</P>
<P align="justify">
Beginning in the first quarter of fiscal 2012, the Company will begin reporting its business under two separate operating business segments, in line with the new operating and internal financial reporting structure of the Company. Gildan is now
structured as two operating businesses that reflect the major customer market segments that it serves, each of which has accountability for its financial performance and return on capital. Previously, we managed and reported our operating
performance under one reportable business segment, being high-volume, basic, frequently-replenished, non-fashion apparel. The following summary describes the operations of each of the Company&#146;s reportable segments starting in fiscal 2012: </P>
<UL style="text-align:justify;">
<LI>
<p style="margin-top: 0; margin-bottom: 12">Screenprint: The screenprint business, headquartered in Barbados, designs, manufactures and distributes undecorated activewear products primarily to wholesale distributors and other screenprint markets in the U.S., Canada and international markets
such as Europe, Mexico and the Asia-Pacific region.</LI>
<LI>
<p style="margin-top: 0; margin-bottom: 12">Retail: The retail business, headquartered in Charleston, South Carolina, designs, manufactures, sources and distributes socks, underwear, as well as activewear products, primarily to U.S. retailers.</LI>
</UL>
<P align="justify">
<B><font size="3">STRATEGY AND OBJECTIVES</font></B></P>
<P align="justify">
Our growth strategy comprises the following initiatives:</P>
<table border="0" cellpadding="0" cellspacing="0" style="border-collapse: collapse" bordercolor="#111111" width="100%">
  <tr>
    <td align="justify" width="5%">
<B><font size="2">1. </font></B></td>
    <td align="justify"><B><font size="2">Maximize screenprint market penetration and opportunities
    </font> </B></td>
  </tr>
  <tr>
    <td align="justify" width="5%">&nbsp;</td>
    <td align="justify">&nbsp;</td>
  </tr>
  <tr>
    <td align="justify" width="5%">&nbsp;</td>
    <td align="justify" style="text-align: justify"><font size="2">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 screenprint market. In particular, we intend to continue to
pursue further penetration of the Gildan&reg; brand in the U.S. distributor screenprint channel as we expand our production capacity. 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 servicing certain niches of the screenprint channel in which we previously did not participate.</font></td>
  </tr>
  <tr>
    <td align="justify" width="5%">&nbsp;</td>
    <td align="justify" style="text-align: justify">&nbsp;</td>
  </tr>
  <tr>
    <td align="justify" width="5%">&nbsp;</td>
    <td align="justify" style="text-align: justify"><font size="2">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 that 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 to support our projected growth, and allocate more 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 potential development over time of a vertically-integrated manufacturing hub in Bangladesh, is intended to support our strategy to grow our international business in Asia and Europe.</font></td>
  </tr>
  <tr>
    <td align="justify" width="5%">&nbsp;</td>
    <td align="justify" style="text-align: justify">&nbsp;</td>
  </tr>
  <tr>
    <td align="justify" width="5%">
<B><font size="2">2. </font></B></td>
    <td align="justify" style="text-align: justify"><B><font size="2">Leverage our successful business model to further penetrate the retail channel
    </font> </B></td>
  </tr>
  <tr>
    <td align="justify" width="5%">&nbsp;</td>
    <td align="justify" style="text-align: justify">&nbsp;</td>
  </tr>
  <tr>
    <td align="justify" width="5%">&nbsp;</td>
    <td align="justify" style="text-align: justify"><font size="2">We intend to continue to leverage our existing core competencies, successful business model and competitive strengths to further penetrate the U.S. retail channel. As in the screenprint channel, success factors in penetrating the retail channel
include consistent quality, competitive pricing and fast and flexible replenishment due to our geographical proximity to our markets, together with our commitment to corporate social responsibility and environmental sustainability. We are a leading
supplier of socks in the U.S. mass-market retail channel, and intend to continue to build our market share position in socks, activewear and underwear in retail. Within the mass-market retail channel, we have positioned the Company as a strategic
supplier of products sold under selective national retailers&#146; private label brands. We also sell our products in the retail channel under the Gildan&reg; brand and, with the acquisition of Gold Toe Moretz, we have significantly expanded our
brand portfolio as described under the section entitled &#147;Our Products and Markets&#148;. We are increasingly focusing on the steady
development of our company-owned and exclusively licensed brands, including the sale of products with the Gildan&reg; label to retailers. The acquisition of Gold Toe Moretz represents an important step in our ongoing strategic development in retail.
In addition to the introduction of leading consumer brands, the acquisition significantly expands and diversifies our channels of distribution across the broad spectrum of the U.S. retail channel. Additionally, this acquisition provides enhanced
brand management expertise which can be utilized to further the development of the Gildan&reg; brand. Furthermore, we intend to leverage Gildan&#146;s manufacturing scale and expertise to support the further development of Gold Toe Moretz&#146;s
owned and licensed brands to create further sales growth opportunities in socks and other retail product categories.</font></td>
  </tr>
</table>
<P align="right">
GILDAN 2011 REPORT TO SHAREHOLDERS P.6</P>

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    <td width="50%">
    <p align="right"><font size="2">MANAGEMENT&#146;S DISCUSSION AND ANALYSIS</font></td>
  </tr>
</table>
<P align="justify">&nbsp;
</P>
<table border="0" cellpadding="0" cellspacing="0" style="border-collapse: collapse" bordercolor="#111111" width="100%">
  <tr>
    <td align="justify" width="5%">
<B><font size="2">3. </font></B></td>
    <td align="justify"><B><font size="2">Continue to generate manufacturing and distribution cost reductions
    </font> </B></td>
  </tr>
</table>
<P align="justify" style="margin-left: 5%">
We continuously seek to improve our manufacturing and distribution processes and cost structure by developing and investing in projects for cost-reduction, as well as for further product quality enhancement. We continue to execute 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 environmental sustainability. The acquisition of Gold Toe Moretz also creates the potential to achieve cost synergies by combining the operations of both
companies and integrating certain high-volume products supplied by Gold Toe Moretz into Gildan&#146;s vertically-integrated sock manufacturing in Honduras.<B> </B></P>
<table border="0" cellpadding="0" cellspacing="0" style="border-collapse: collapse" bordercolor="#111111" width="100%">
  <tr>
    <td align="justify" width="5%">
<B><font size="2">4.</font></B></td>
    <td align="justify"><B><font size="2">Reinvest cash flow</font></B></td>
  </tr>
</table>
<P align="justify" style="margin-left: 5%">
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, as well
as our dividend requirements, but at the same time we will be open to evaluating complementary strategic acquisition opportunities which meet our return on investment criteria, based on our risk-adjusted cost of capital.
</P>
<P align="justify">
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 annual MD&amp;A. </P>
<P align="justify"><b><font size="3">OPERATING RESULTS</font></b></P>
<p align="justify"> <b>BUSINESS ACQUISITION </b><br>
</p>
<p align="justify"> On April 15, 2011, the Company acquired 100% of the capital stock of Gold Toe Moretz for an aggregate cash consideration of &#36;349.6 million, net of cash acquired. Gold Toe Moretz is a leading supplier of high-quality branded athletic, casual and
  dress socks for national chains, mass-market retailers, price clubs, department stores and specialty sporting goods stores in the United States. The Company financed the acquisition by using &#36;100 million of cash on hand and approximately
  &#36;250 million drawn on its revolving long-term credit facility. An additional purchase price consideration of up to 150,000 common shares issued in the form of treasury restricted share units, with a fair value of approximately &#36;4 million as
  at October 2, 2011, is contingent on specified future events.</p>
<p align="justify"> Gildan accounted for this acquisition using the purchase method in accordance with the Canadian Institute of Chartered Accountants (CICA) Handbook Section 1581, Business Combinations, and the results of Gold Toe Moretz have been consolidated with
  those of Gildan from the date of acquisition. Consequently, the 2011 audited annual consolidated financial statements include the results of Gold Toe Moretz from April 16, 2011 to October 2, 2011. We allocated the purchase price to the assets
  acquired and liabilities assumed based on management&#146;s best estimate of their fair values and taking into account all relevant information available at that time. Please refer to note 2 to the 2011 audited annual consolidated financial
  statements for a summary of the estimated fair value of the assets acquired and liabilities assumed at the date of acquisition. </p>
<P align="right">
GILDAN 2011 REPORT TO SHAREHOLDERS P.7</P>

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    <td width="50%">
    <p align="right"><font size="2">MANAGEMENT&#146;S DISCUSSION AND ANALYSIS</font></td>
  </tr>
</table>
<P align="justify">&nbsp;</P>
<P align="justify"><B>OPERATING RESULTS FOR THE YEAR ENDED OCTOBER 2, 2011, COMPARED TO THE YEAR ENDED OCTOBER 3, 2010 </B></P>
<P align="justify">
<B>N</B><B>ON</B><B>-GAAP</B><B> </B><B>M</B><B>EASURES</B><BR>
</P>
<P align="justify">
We use non-GAAP measures to assess our operating performance. Securities regulations require that we 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, operating results and cash flows.</P>
<P align="justify">
We refer the reader to the section entitled &#147;Definition and Reconciliation of Non-GAAP Measures&#148; in this annual MD&amp;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.<br>
</P>
<table
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellspacing=0 cellpadding=0 width="100%" border=0>
  <tr valign=top>
    <td align=left><b>S</b><b>ELECTED </b><b>A</b><b>NNUAL </b><b>I</b><b>NFORMATION</b> </td>
    <td align=left width="1%">&nbsp;</td>
    <td align=left width="10%">&nbsp;</td>
    <td align=left width="2%">&nbsp;</td>
    <td align=left width="1%">&nbsp;</td>
    <td align=left width="10%">&nbsp;</td>
    <td align=left width="2%">&nbsp;</td>
    <td align=left width="1%">&nbsp;</td>
    <td align=left width="10%">&nbsp;</td>
    <td align=left width="2%">&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="10%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="10%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="10%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
  </tr>
  <tr valign=top>
    <td style="BORDER-BOTTOM: #000000 2px solid" align=left><i>(in $ millions,
      except per share amounts)</i> </td>
    <td style="BORDER-BOTTOM: #000000 2px solid" align=left
    width="1%">&nbsp;</td>
    <td style="BORDER-BOTTOM: #000000 2px solid" align=right
      width="10%"><b>2011</b> </td>
    <td style="BORDER-BOTTOM: #000000 2px solid" align=left
    width="2%">&nbsp;</td>
    <td style="BORDER-BOTTOM: #000000 2px solid" align=left
    width="1%">&nbsp;</td>
    <td style="BORDER-BOTTOM: #000000 2px solid" align=right width="10%">2010 </td>
    <td style="BORDER-BOTTOM: #000000 2px solid" align=left
    width="2%">&nbsp;</td>
    <td style="BORDER-BOTTOM: #000000 2px solid" align=left
    width="1%">&nbsp;</td>
    <td style="BORDER-BOTTOM: #000000 2px solid" align=right width="10%">2009 </td>
    <td align=left width="2%">&nbsp;</td>
  </tr>
  <tr valign=top>
    <td align=left bgcolor=#e6efff>Net sales </td>
    <td align=left width="1%" bgcolor=#e6efff>&nbsp;</td>
    <td align=right width="10%" bgcolor=#e6efff><b>1,726.0</b> </td>
    <td align=left width="2%" bgcolor=#e6efff>&nbsp;</td>
    <td align=left width="1%" bgcolor=#e6efff>&nbsp;</td>
    <td align=right width="10%" bgcolor=#e6efff>1,311.5 </td>
    <td align=left width="2%" bgcolor=#e6efff>&nbsp;</td>
    <td align=left width="1%" bgcolor=#e6efff>&nbsp;</td>
    <td align=right width="10%" bgcolor=#e6efff>1,038.3 </td>
    <td align=left width="2%" bgcolor=#e6efff>&nbsp;</td>
  </tr>
  <tr valign=top>
    <td align=left style="border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000">Cost of sales </td>
    <td align=left width="1%" style="border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000">&nbsp;</td>
    <td align=right width="10%" style="border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000"><b>1,288.3</b> </td>
    <td align=left width="2%" style="border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000">&nbsp;</td>
    <td align=left width="1%" style="border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000">&nbsp;</td>
    <td align=right width="10%" style="border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000">947.2 </td>
    <td align=left width="2%" style="border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000">&nbsp;</td>
    <td align=left width="1%" style="border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000">&nbsp;</td>
    <td align=right width="10%" style="border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000">808.0 </td>
    <td align=left width="2%">&nbsp;</td>
  </tr>
  <tr valign=top>
    <td align=left bgcolor=#e6efff style="border-top-style: solid; border-top-width: 1">Gross profit </td>
    <td align=left width="1%" bgcolor=#e6efff style="border-top-style: solid; border-top-width: 1">&nbsp;</td>
    <td align=right width="10%" bgcolor=#e6efff style="border-top-style: solid; border-top-width: 1"><b>437.7</b> </td>
    <td align=left width="2%" bgcolor=#e6efff style="border-top-style: solid; border-top-width: 1">&nbsp;</td>
    <td align=left width="1%" bgcolor=#e6efff style="border-top-style: solid; border-top-width: 1">&nbsp;</td>
    <td align=right width="10%" bgcolor=#e6efff style="border-top-style: solid; border-top-width: 1">364.3 </td>
    <td align=left width="2%" bgcolor=#e6efff style="border-top-style: solid; border-top-width: 1">&nbsp;</td>
    <td align=left width="1%" bgcolor=#e6efff style="border-top-style: solid; border-top-width: 1">&nbsp;</td>
    <td align=right width="10%" bgcolor=#e6efff style="border-top-style: solid; border-top-width: 1">230.3 </td>
    <td align=left width="2%" bgcolor=#e6efff>&nbsp;</td>
  </tr>
  <tr valign=top>
    <td align=left>Selling, general and administrative expenses </td>
    <td align=left width="1%">&nbsp;</td>
    <td align=right width="10%"><b>199.1</b> </td>
    <td align=left width="2%">&nbsp;</td>
    <td align=left width="1%">&nbsp;</td>
    <td align=right width="10%">154.7 </td>
    <td align=left width="2%">&nbsp;</td>
    <td align=left width="1%">&nbsp;</td>
    <td align=right width="10%">134.8 </td>
    <td align=left width="2%">&nbsp;</td>
  </tr>
  <tr valign=top>
    <td style="BORDER-BOTTOM: #000000 1px solid" align=left
      bgcolor=#e6efff>Restructuring and acquisition-related costs </td>
    <td style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    bgcolor=#e6efff>&nbsp;</td>
    <td style="BORDER-BOTTOM: #000000 1px solid" align=right width="10%"
    bgcolor=#e6efff><b>8.5</b> </td>
    <td style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    bgcolor=#e6efff>&nbsp;</td>
    <td style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    bgcolor=#e6efff>&nbsp;</td>
    <td style="BORDER-BOTTOM: #000000 1px solid" align=right width="10%"
    bgcolor=#e6efff>8.7 </td>
    <td style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    bgcolor=#e6efff>&nbsp;</td>
    <td style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    bgcolor=#e6efff>&nbsp;</td>
    <td style="BORDER-BOTTOM: #000000 1px solid" align=right width="10%"
    bgcolor=#e6efff>6.2 </td>
    <td align=left width="2%" bgcolor=#e6efff>&nbsp;</td>
  </tr>
  <tr valign=top>
    <td align=left>Operating income </td>
    <td align=left width="1%">&nbsp;</td>
    <td align=right width="10%"><b>230.1</b> </td>
    <td align=left width="2%">&nbsp;</td>
    <td align=left width="1%">&nbsp;</td>
    <td align=right width="10%">200.9 </td>
    <td align=left width="2%">&nbsp;</td>
    <td align=left width="1%">&nbsp;</td>
    <td align=right width="10%">89.3 </td>
    <td align=left width="2%">&nbsp;</td>
  </tr>
  <tr valign=top>
    <td align=left bgcolor=#e6efff>Financial expense (income), net </td>
    <td align=left width="1%" bgcolor=#e6efff>&nbsp;</td>
    <td align=right width="10%" bgcolor=#e6efff><b>5.4</b> </td>
    <td align=left width="2%" bgcolor=#e6efff>&nbsp;</td>
    <td align=left width="1%" bgcolor=#e6efff>&nbsp;</td>
    <td align=right width="10%" bgcolor=#e6efff>0.8 </td>
    <td align=left width="2%" bgcolor=#e6efff>&nbsp;</td>
    <td align=left width="1%" bgcolor=#e6efff>&nbsp;</td>
    <td align=right width="10%" bgcolor=#e6efff>(0.3 </td>
    <td align=left width="2%" bgcolor=#e6efff>)&nbsp;</td>
  </tr>
  <tr valign=top>
    <td style="BORDER-BOTTOM: #000000 1px solid" align=left>Non-controlling
      interest in consolidated joint venture </td>
    <td style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="1%">&nbsp;</td>
    <td style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="10%"><b>0.5</b> </td>
    <td style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="2%">&nbsp;</td>
    <td style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="1%">&nbsp;</td>
    <td style="BORDER-BOTTOM: #000000 1px solid" align=right width="10%">3.8 </td>
    <td style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="2%">&nbsp;</td>
    <td style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="1%">&nbsp;</td>
    <td style="BORDER-BOTTOM: #000000 1px solid" align=right width="10%">0.1 </td>
    <td align=left width="2%">&nbsp;</td>
  </tr>
  <tr valign=top>
    <td align=left bgcolor=#e6efff>Earnings before income taxes </td>
    <td align=left width="1%" bgcolor=#e6efff>&nbsp;</td>
    <td align=right width="10%" bgcolor=#e6efff><b>224.2</b> </td>
    <td align=left width="2%" bgcolor=#e6efff>&nbsp;</td>
    <td align=left width="1%" bgcolor=#e6efff>&nbsp;</td>
    <td align=right width="10%" bgcolor=#e6efff>196.3 </td>
    <td align=left width="2%" bgcolor=#e6efff>&nbsp;</td>
    <td align=left width="1%" bgcolor=#e6efff>&nbsp;</td>
    <td align=right width="10%" bgcolor=#e6efff>89.5 </td>
    <td align=left width="2%" bgcolor=#e6efff>&nbsp;</td>
  </tr>
  <tr valign=top>
    <td style="BORDER-BOTTOM: #000000 1px solid" align=left>Income taxes </td>
    <td style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="1%">&nbsp;</td>
    <td style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="10%"><b>(15.7</b></td>
    <td style="BORDER-BOTTOM: #000000 1px solid" align=left
      width="2%"><b>)</b> </td>
    <td style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="1%">&nbsp;</td>
    <td style="BORDER-BOTTOM: #000000 1px solid" align=right
    width="10%">(1.9</td>
    <td style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%">) </td>
    <td style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="1%">&nbsp;</td>
    <td style="BORDER-BOTTOM: #000000 1px solid" align=right width="10%">(5.8 </td>
    <td align=left width="2%">)&nbsp;</td>
  </tr>
  <tr valign=top>
    <td style="BORDER-BOTTOM: #000000 1px solid" align=left
      bgcolor=#e6efff>Net earnings </td>
    <td style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    bgcolor=#e6efff>&nbsp;</td>
    <td style="BORDER-BOTTOM: #000000 1px solid" align=right width="10%"
    bgcolor=#e6efff><b>239.9</b> </td>
    <td style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    bgcolor=#e6efff>&nbsp;</td>
    <td style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    bgcolor=#e6efff>&nbsp;</td>
    <td style="BORDER-BOTTOM: #000000 1px solid" align=right width="10%"
    bgcolor=#e6efff>198.2 </td>
    <td style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    bgcolor=#e6efff>&nbsp;</td>
    <td style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    bgcolor=#e6efff>&nbsp;</td>
    <td style="BORDER-BOTTOM: #000000 1px solid" align=right width="10%"
    bgcolor=#e6efff>95.3 </td>
    <td align=left width="2%" bgcolor=#e6efff>&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="10%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="10%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="10%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
  </tr>
  <tr valign=top>
    <td align=left bgcolor=#e6efff>Basic EPS </td>
    <td align=left width="1%" bgcolor=#e6efff>&nbsp;</td>
    <td align=right width="10%" bgcolor=#e6efff><b>1.97</b> </td>
    <td align=left width="2%" bgcolor=#e6efff>&nbsp;</td>
    <td align=left width="1%" bgcolor=#e6efff>&nbsp;</td>
    <td align=right width="10%" bgcolor=#e6efff>1.64 </td>
    <td align=left width="2%" bgcolor=#e6efff>&nbsp;</td>
    <td align=left width="1%" bgcolor=#e6efff>&nbsp;</td>
    <td align=right width="10%" bgcolor=#e6efff>0.79 </td>
    <td align=left width="2%" bgcolor=#e6efff>&nbsp;</td>
  </tr>
  <tr valign=top>
    <td align=left>Diluted EPS </td>
    <td align=left width="1%">&nbsp;</td>
    <td align=right width="10%"><b>1.96</b> </td>
    <td align=left width="2%">&nbsp;</td>
    <td align=left width="1%">&nbsp;</td>
    <td align=right width="10%">1.63 </td>
    <td align=left width="2%">&nbsp;</td>
    <td align=left width="1%">&nbsp;</td>
    <td align=right width="10%">0.79 </td>
    <td align=left width="2%">&nbsp;</td>
  </tr>
  <tr>
    <td bgcolor=#e6efff>&nbsp;</td>
    <td width="1%" bgcolor=#e6efff>&nbsp;</td>
    <td width="10%" bgcolor=#e6efff>&nbsp;</td>
    <td width="2%" bgcolor=#e6efff>&nbsp;</td>
    <td width="1%" bgcolor=#e6efff>&nbsp;</td>
    <td width="10%" bgcolor=#e6efff>&nbsp;</td>
    <td width="2%" bgcolor=#e6efff>&nbsp;</td>
    <td width="1%" bgcolor=#e6efff>&nbsp;</td>
    <td width="10%" bgcolor=#e6efff>&nbsp;</td>
    <td width="2%" bgcolor=#e6efff>&nbsp;</td>
  </tr>
  <tr valign=top>
    <td align=left>Total assets </td>
    <td align=left width="1%">&nbsp;</td>
    <td align=right width="10%"><b>1,889.7</b> </td>
    <td align=left width="2%">&nbsp;</td>
    <td align=left width="1%">&nbsp;</td>
    <td align=right width="10%">1,327.5 </td>
    <td align=left width="2%">&nbsp;</td>
    <td align=left width="1%">&nbsp;</td>
    <td align=right width="10%">1,074.5 </td>
    <td align=left width="2%">&nbsp;</td>
  </tr>
  <tr valign=top>
    <td style="BORDER-BOTTOM: #000000 1px solid" align=left
      bgcolor=#e6efff>Total long-term financial liabilities<sup>(1)</sup> </td>
    <td style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    bgcolor=#e6efff>&nbsp;</td>
    <td style="BORDER-BOTTOM: #000000 1px solid" align=right width="10%"
    bgcolor=#e6efff><b>209.0</b> </td>
    <td style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    bgcolor=#e6efff>&nbsp;</td>
    <td style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    bgcolor=#e6efff>&nbsp;</td>
    <td style="BORDER-BOTTOM: #000000 1px solid" align=right width="10%"
    bgcolor=#e6efff>- </td>
    <td style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    bgcolor=#e6efff>&nbsp;</td>
    <td style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    bgcolor=#e6efff>&nbsp;</td>
    <td style="BORDER-BOTTOM: #000000 1px solid" align=right width="10%"
    bgcolor=#e6efff>4.4 </td>
    <td align=left width="2%" bgcolor=#e6efff>&nbsp;</td>
  </tr>
  <tr valign=top>
    <td align=left bgcolor=#ffffff colspan=3>Certain minor rounding variances
      exist between the financial statements and this summary. </td>
    <td align=left width="2%" bgcolor=#ffffff>&nbsp;</td>
    <td align=left width="1%" bgcolor=#ffffff>&nbsp;</td>
    <td align=left width="10%" bgcolor=#ffffff>&nbsp;</td>
    <td align=left width="2%" bgcolor=#ffffff>&nbsp;</td>
    <td align=left width="1%" bgcolor=#ffffff>&nbsp;</td>
    <td align=left width="10%" bgcolor=#ffffff>&nbsp;</td>
    <td align=left width="2%" bgcolor=#ffffff>&nbsp;</td>
  </tr>
  <tr valign=top>
    <td align=left bgcolor=#ffffff><i>(1) Includes current portion of
      long-term debt.</i> </td>
    <td align=left width="1%" bgcolor=#ffffff>&nbsp;</td>
    <td align=left width="10%" bgcolor=#ffffff>&nbsp;</td>
    <td align=left width="2%" bgcolor=#ffffff>&nbsp;</td>
    <td align=left width="1%" bgcolor=#ffffff>&nbsp;</td>
    <td align=left width="10%" bgcolor=#ffffff>&nbsp;</td>
    <td align=left width="2%" bgcolor=#ffffff>&nbsp;</td>
    <td align=left width="1%" bgcolor=#ffffff>&nbsp;</td>
    <td align=left width="10%" bgcolor=#ffffff>&nbsp;</td>
    <td align=left width="2%" bgcolor=#ffffff>&nbsp;</td>
  </tr>
</table>
<p align=justify><b>Net Sales</b><br>
</p>
<p align=justify>Net sales in fiscal 2011 totalled $1,726.0 million, up 31.6%,
  from $1,311.5 million in fiscal 2010. Sales of activewear and underwear in
  fiscal 2011 were $1,406.0 million, up 29.6% from $1,085.0 million last year, and
  sales of socks were $320.0 million, up 41.3% from $226.5 million in fiscal 2010.
  The Company's guidance provided on August 4, 2011 was for sales in excess of
  $1.7 billion for fiscal 2011.</p>
<p align=justify>The increase in activewear and underwear sales in fiscal 2011
  compared to fiscal 2010 was primarily due to higher average net selling prices
  and a 7.7% increase in unit sales volumes. Unit sales growth of activewear and
  underwear was due to an increase of 8.8% in industry shipments from U.S.
  distributors to U.S. screenprinters in the first half of fiscal 2011, the
  Company&#146;s penetration in other screenprint markets and increased shipments of
  activewear and underwear to mass-market retailers, partially offset by a 7.8%
  decline in overall market demand in shipments by U.S. distributors to U.S.
  screenprinters in the second half of fiscal 2011. </p>
<P align="right">
GILDAN 2011 REPORT TO SHAREHOLDERS P.8</P>

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

<!--$$/page=--><A name=page_9></A>
<table border="0" cellpadding="0" cellspacing="0" style="border-collapse: collapse" bordercolor="#111111" width="100%">
  <tr>
    <td width="50%">

<IMG src="mdax2x1.jpg" border=0 width="96" height="21"> </td>
    <td width="50%">
    <p align="right"><font size="2">MANAGEMENT&#146;S DISCUSSION AND ANALYSIS</font></td>
  </tr>
</table>
<p align=justify>&nbsp;</p>
<p align=justify>Market growth and share data presented for the U.S. wholesale
  distributor channel is based on the CREST report produced by Capstone Research,
  Inc., which tracks industry growth and market share in the U.S. distributor
  channel. The table below summarizes the CREST data for the nine months ended
  September 30, 2011: </p>
<table
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellspacing=0 cellpadding=0 width="100%" border=0>
  <tr valign=top>
    <td align=left>&nbsp;</td>
    <td align=left width="1%">&nbsp;</td>
    <td align=center width="23%" colspan=4><b>Nine months ended</b> </td>
    <td align=center width="2%">&nbsp;</td>
    <td align=center width="1%">&nbsp;</td>
    <td align=center width="23%" colspan=4><b>Nine months ended</b> </td>
    <td align=left width="2%">&nbsp;</td>
  </tr>
  <tr valign=top>
    <td align=left>&nbsp;</td>
    <td align=left width="1%">&nbsp;</td>
    <td align=center width="23%" colspan=4><b>September 30,</b> </td>
    <td align=center width="2%">&nbsp;</td>
    <td align=center width="1%">&nbsp;</td>
    <td align=center width="23%" colspan=4><b>September 30,</b> </td>
    <td align=left width="2%">&nbsp;</td>
  </tr>
  <tr valign=top>
    <td style="BORDER-BOTTOM: #000000 2px solid" align=left>&nbsp;</td>
    <td style="BORDER-BOTTOM: #000000 2px solid" align=left
    width="1%">&nbsp;</td>
    <td style="BORDER-BOTTOM: #000000 2px solid" align=center width="23%"
    colspan=4><b>2011</b> </td>
    <td style="BORDER-BOTTOM: #000000 2px solid" align=center
    width="2%">&nbsp;</td>
    <td style="BORDER-BOTTOM: #000000 2px solid" align=center
    width="1%">&nbsp;</td>
    <td style="BORDER-BOTTOM: #000000 2px solid" align=center
      width="10%"><b>2011</b> </td>
    <td style="BORDER-BOTTOM: #000000 2px solid" align=center
    width="2%">&nbsp;</td>
    <td style="BORDER-BOTTOM: #000000 2px solid" align=center
    width="1%">&nbsp;</td>
    <td style="BORDER-BOTTOM: #000000 2px solid" align=center
      width="10%"><b>2010</b> </td>
    <td align=left width="2%">&nbsp;</td>
  </tr>
  <tr valign=top>
    <td style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</td>
    <td style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="1%">&nbsp;</td>
    <td style="BORDER-BOTTOM: #000000 1px solid" align=center width="23%"
    colspan=4><b>Unit Growth</b> </td>
    <td style="BORDER-BOTTOM: #000000 1px solid" align=center
    width="2%">&nbsp;</td>
    <td style="BORDER-BOTTOM: #000000 1px solid" align=center
    width="1%">&nbsp;</td>
    <td style="BORDER-BOTTOM: #000000 1px solid" align=center width="23%"
    colspan=4><b>Market Share</b> </td>
    <td align=left width="2%">&nbsp;</td>
  </tr>
  <tr valign=top>
    <td style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</td>
    <td style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="1%">&nbsp;</td>
    <td style="BORDER-BOTTOM: #000000 1px solid" align=center
      width="10%"><b>Gildan</b> </td>
    <td style="BORDER-BOTTOM: #000000 1px solid" align=center
    width="2%">&nbsp;</td>
    <td style="BORDER-BOTTOM: #000000 1px solid" align=center
    width="1%">&nbsp;</td>
    <td style="BORDER-BOTTOM: #000000 1px solid" align=center
      width="10%"><b>Industry</b> </td>
    <td style="BORDER-BOTTOM: #000000 1px solid" align=center
    width="2%">&nbsp;</td>
    <td style="BORDER-BOTTOM: #000000 1px solid" align=center
    width="1%">&nbsp;</td>
    <td style="BORDER-BOTTOM: #000000 1px solid" align=center width="23%"
    colspan=4><b>Gildan</b> </td>
    <td align=left width="2%">&nbsp;</td>
  </tr>
  <tr valign=top>
    <td align=left bgcolor=#e6efff>All products </td>
    <td align=left width="1%" bgcolor=#e6efff>&nbsp;</td>
    <td align=center width="10%" bgcolor=#e6efff><strong>(4.7)%</strong> </td>
    <td align=center width="2%" bgcolor=#e6efff></td>
    <td align=center width="1%" bgcolor=#e6efff>&nbsp;</td>
    <td align=center width="10%" bgcolor=#e6efff><strong>(4.2)%</strong> </td>
    <td align=center width="2%" bgcolor=#e6efff>&nbsp;</td>
    <td align=center width="1%" bgcolor=#e6efff>&nbsp;</td>
    <td align=center width="10%" bgcolor=#e6efff><b>61.8%</b> </td>
    <td align=center width="2%" bgcolor=#e6efff>&nbsp;</td>
    <td align=center width="1%" bgcolor=#e6efff>&nbsp;</td>
    <td align=center width="10%" bgcolor=#e6efff><b>62.1%</b> </td>
    <td align=left width="2%" bgcolor=#e6efff>&nbsp;</td>
  </tr>
  <tr valign=top>
    <td align=left>T-shirts </td>
    <td align=left width="1%">&nbsp;</td>
    <td align=center width="10%"><strong>(4.8)%</strong> </td>
    <td align=center width="2%"></td>
    <td align=center width="1%">&nbsp;</td>
    <td align=center width="10%"><strong>(4.2)%</strong> </td>
    <td align=center width="2%">&nbsp;</td>
    <td align=center width="1%">&nbsp;</td>
    <td align=center width="10%"><b>62.3%</b> </td>
    <td align=center width="2%">&nbsp;</td>
    <td align=center width="1%">&nbsp;</td>
    <td align=center width="10%"><b>62.8%</b> </td>
    <td align=left width="2%">&nbsp;</td>
  </tr>
  <tr valign=top>
    <td align=left bgcolor=#e6efff>Fleece </td>
    <td align=left width="1%" bgcolor=#e6efff>&nbsp;</td>
    <td align=center width="10%" bgcolor=#e6efff><strong>(2.4)%</strong> </td>
    <td align=center width="2%" bgcolor=#e6efff>&nbsp;</td>
    <td align=center width="1%" bgcolor=#e6efff>&nbsp;</td>
    <td align=center width="10%" bgcolor=#e6efff><strong>(3.7)%</strong> </td>
    <td align=center width="2%" bgcolor=#e6efff>&nbsp;</td>
    <td align=center width="1%" bgcolor=#e6efff>&nbsp;</td>
    <td align=center width="10%" bgcolor=#e6efff><b>61.7%</b> </td>
    <td align=center width="2%" bgcolor=#e6efff>&nbsp;</td>
    <td align=center width="1%" bgcolor=#e6efff>&nbsp;</td>
    <td align=center width="10%" bgcolor=#e6efff><b>60.9%</b> </td>
    <td align=left width="2%" bgcolor=#e6efff>&nbsp;</td>
  </tr>
  <tr valign=top>
    <td align=left style="border-bottom-style: solid; border-bottom-width: 2">Sport shirts </td>
    <td align=left width="1%" style="border-bottom-style: solid; border-bottom-width: 2">&nbsp;</td>
    <td align=center width="10%" style="border-bottom-style: solid; border-bottom-width: 2"><strong>(3.2)%</strong> </td>
    <td align=center width="2%" style="border-bottom-style: solid; border-bottom-width: 2">&nbsp;</td>
    <td align=center width="1%" style="border-bottom-style: solid; border-bottom-width: 2">&nbsp;</td>
    <td align=center width="10%" style="border-bottom-style: solid; border-bottom-width: 2"><strong>(4.7)%</strong> </td>
    <td align=center width="2%" style="border-bottom-style: solid; border-bottom-width: 2">&nbsp;</td>
    <td align=center width="1%" style="border-bottom-style: solid; border-bottom-width: 2">&nbsp;</td>
    <td align=center width="10%" style="border-bottom-style: solid; border-bottom-width: 2"><b>46.9%</b> </td>
    <td align=center width="2%" style="border-bottom-style: solid; border-bottom-width: 2">&nbsp;</td>
    <td align=center width="1%" style="border-bottom-style: solid; border-bottom-width: 2">&nbsp;</td>
    <td align=center width="10%" style="border-bottom-style: solid; border-bottom-width: 2"><b>46.1%</b> </td>
    <td align=left width="2%">&nbsp;</td>
  </tr>
  <tr valign=top>
    <td align=left style="border-bottom-style: none; border-bottom-width: medium" colspan="12">CREST data is reported on a calendar basis. Full year data for
      calendar 2011 was not yet available at the date of this report.<b> </b> </td>
    <td align=left width="2%">&nbsp;</td>
  </tr>
</table>
<p align=justify>Similar to the screenprint market in the U.S., market
  conditions in our Canadian and international markets weakened in the second half
  of the fiscal year. Sales from Canada totalled $63.4 million in fiscal 2011, up
  17.0% compared to sales of $54.2 million in fiscal 2010. The sales growth was
  mainly due to higher average selling prices and the appreciation of the Canadian
  dollar, partially offset by lower unit volume sales. Net sales from
  international markets of $125.9 million during fiscal 2011 increased $23.4
  million, or 22.8% compared to international sales of $102.5 million in fiscal
  2010. The year over year increase was attributable to higher average selling
  prices and higher unit volume sales in most of the markets we serve, partially
  offset by the discontinuation of programs previously serviced by Shahriyar
  Fabric Industries Limited during fiscal 2010. </p>
<p align=justify>The increase in sock sales for fiscal 2011 was due to the
  impact of the acquisition of Gold Toe Moretz and the implementation of selling
  price increases, partially offset by lower organic sales of socks, in part
  attributable to inventory destocking by mass-market retailers.<b> </b></p>
<p align=justify><b>Gross Profit</b><br>
</p>
<p align=justify>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, inbound freight and
  inter-facility transportation costs, and outbound freight to customers. Cost of
  sales also includes the costs of purchased finished goods, costs relating to
  purchasing, receiving and inspection activities, manufacturing administration,
  third-party manufacturing services, sales-based royalty costs, insurance,
  inventory write-downs, and customs and duties. Our reporting of gross profit and
  gross margin may not be comparable to these metrics as reported by other
  companies, since some entities exclude depreciation expense, outbound freight to
  customers and royalty costs from cost of sales. </p>
<p align=justify>Gross profit for fiscal 2011 was $437.7 million, up $73.4
  million from gross profit of $364.3 million in fiscal 2010. As a percentage of
  sales, gross profit in fiscal 2011 declined to 25.4% compared to gross margin of
  27.8% in fiscal 2010. The decline in gross margin was primarily due to the
  significant increase in the cost of cotton compared to last year, which as a
  percentage of net sales, more than offset the impact of higher average net
  selling prices. Gross margin of 25.4% in fiscal 2011 was slightly below the
  Company&#146;s guidance provided on August 4, 2011, due mainly to higher than
  forecasted selling price promotions in the U.S. wholesale distributor channel in
  the month of September and lower than projected sock manufacturing efficiencies. </p>
<P align=right>GILDAN 2011 REPORT TO SHAREHOLDERS P.9</P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<!--$$/page=-->
<table border="0" cellpadding="0" cellspacing="0" style="border-collapse: collapse" bordercolor="#111111" width="100%">
  <tr>
    <td width="50%">

<IMG src="mdax2x1.jpg" border=0 width="96" height="21"> </td>
    <td width="50%">
    <p align="right"><font size="2">MANAGEMENT&#146;S DISCUSSION AND ANALYSIS</font></td>
  </tr>
</table>
<P align=justify>&nbsp;</P>
<P align=justify><B>Selling, General and Administrative Expenses</B><BR>
</P>
<P align=justify>Selling, general and administrative (SG&amp;A) expenses include
warehousing and handling costs, selling and administrative personnel costs,
advertising and marketing expenses, costs of leased facilities and equipment,
professional fees, non-manufacturing depreciation and amortization expense, and
other general and administrative expenses. SG&amp;A expenses also
include bad debt expense, and amortization of intangible assets. </P>
<P align=justify> SG&amp;A expenses were $199.1 million in fiscal 2011, up $44.4
  million compared to SG&amp;A expenses of $154.7 million in fiscal 2010. SG&amp;A
  expenses as a percentage of net sales for fiscal 2011 decreased to 11.5%
  compared to 11.8% of net sales in fiscal 2010 and was slightly lower than the
  Company&#146;s projection provided on August 4, 2011. The increase in SG&amp;A
  expenses in fiscal 2011 compared to last year was primarily due to the impact of
  the acquisition of Gold Toe Moretz, increases in compensation expenses, legal
  and professional fees and retail marketing expenses combined with the impact of
  the higher-valued Canadian dollar on corporate administrative expenses. In
  addition, SG&amp;A expenses for fiscal 2011 included a loss of $3.7 million
  recognized in the second fiscal quarter relating to the early termination of our
  previous corporate aircraft lease.</P>
<table
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellspacing=0 cellpadding=0 width="100%" border=0>
  <tr valign=top>
    <td align=left><b>Restructuring and Acquisition-Related Costs</b> </td>
    <td align=left width="1%">&nbsp;</td>
    <td align=left width="10%">&nbsp;</td>
    <td align=left width="2%">&nbsp;</td>
    <td align=left width="1%">&nbsp;</td>
    <td align=left width="10%">&nbsp;</td>
    <td align=left width="2%">&nbsp;</td>
    <td align=left width="1%">&nbsp;</td>
    <td align=left width="10%">&nbsp;</td>
    <td align=left width="2%">&nbsp;</td>
  </tr>
  <tr>
    <td style="BORDER-BOTTOM: #000000 2px solid">&nbsp;</td>
    <td style="BORDER-BOTTOM: #000000 2px solid" width="1%">&nbsp;</td>
    <td style="BORDER-BOTTOM: #000000 2px solid" width="10%">&nbsp;</td>
    <td style="BORDER-BOTTOM: #000000 2px solid" width="2%">&nbsp;</td>
    <td style="BORDER-BOTTOM: #000000 2px solid" width="1%">&nbsp;</td>
    <td style="BORDER-BOTTOM: #000000 2px solid" width="10%">&nbsp;</td>
    <td style="BORDER-BOTTOM: #000000 2px solid" width="2%">&nbsp;</td>
    <td style="BORDER-BOTTOM: #000000 2px solid" width="1%">&nbsp;</td>
    <td style="BORDER-BOTTOM: #000000 2px solid" width="10%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
  </tr>
  <tr valign=top>
    <td style="BORDER-BOTTOM: #000000 1px solid" align=left><i>(in $
      millions)</i> </td>
    <td style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="1%">&nbsp;</td>
    <td style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="10%"><b>2011</b> </td>
    <td style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="2%">&nbsp;</td>
    <td style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="1%">&nbsp;</td>
    <td style="BORDER-BOTTOM: #000000 1px solid" align=right width="10%">2010 </td>
    <td style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="2%">&nbsp;</td>
    <td style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="1%">&nbsp;</td>
    <td style="BORDER-BOTTOM: #000000 1px solid" align=right width="10%">2009 </td>
    <td align=left width="2%">&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="10%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="10%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="10%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
  </tr>
  <tr valign=top>
    <td align=left bgcolor=#e6efff>Loss (gain) on disposal of assets held for
      sale </td>
    <td align=left width="1%" bgcolor=#e6efff>&nbsp;</td>
    <td align=right width="10%" bgcolor=#e6efff><b>0.7</b> </td>
    <td align=left width="2%" bgcolor=#e6efff>&nbsp;</td>
    <td align=left width="1%" bgcolor=#e6efff>&nbsp;</td>
    <td align=right width="10%" bgcolor=#e6efff>0.1 </td>
    <td align=left width="2%" bgcolor=#e6efff>&nbsp;</td>
    <td align=left width="1%" bgcolor=#e6efff>&nbsp;</td>
    <td align=right width="10%" bgcolor=#e6efff>(0.6</td>
    <td align=left width="2%" bgcolor=#e6efff>) </td>
  </tr>
  <tr valign=top>
    <td align=left>Accelerated depreciation </td>
    <td align=left width="1%">&nbsp;</td>
    <td align=right width="10%"><b>-</b> </td>
    <td align=left width="2%">&nbsp;</td>
    <td align=left width="1%">&nbsp;</td>
    <td align=right width="10%">2.5 </td>
    <td align=left width="2%">&nbsp;</td>
    <td align=left width="1%">&nbsp;</td>
    <td align=right width="10%">- </td>
    <td align=left width="2%">&nbsp;</td>
  </tr>
  <tr valign=top>
    <td align=left bgcolor=#e6efff>Asset impairment loss and write-down of
      assets held for sale </td>
    <td align=left width="1%" bgcolor=#e6efff>&nbsp;</td>
    <td align=right width="10%" bgcolor=#e6efff><b>1.7</b> </td>
    <td align=left width="2%" bgcolor=#e6efff>&nbsp;</td>
    <td align=left width="1%" bgcolor=#e6efff>&nbsp;</td>
    <td align=right width="10%" bgcolor=#e6efff>1.8 </td>
    <td align=left width="2%" bgcolor=#e6efff>&nbsp;</td>
    <td align=left width="1%" bgcolor=#e6efff>&nbsp;</td>
    <td align=right width="10%" bgcolor=#e6efff>1.6 </td>
    <td align=left width="2%" bgcolor=#e6efff>&nbsp;</td>
  </tr>
  <tr valign=top>
    <td align=left>Employee termination and other benefits </td>
    <td align=left width="1%">&nbsp;</td>
    <td align=right width="10%"><b>2.9</b> </td>
    <td align=left width="2%">&nbsp;</td>
    <td align=left width="1%">&nbsp;</td>
    <td align=right width="10%">0.7 </td>
    <td align=left width="2%">&nbsp;</td>
    <td align=left width="1%">&nbsp;</td>
    <td align=right width="10%">2.2 </td>
    <td align=left width="2%">&nbsp;</td>
  </tr>
  <tr valign=top>
    <td align=left bgcolor=#e6efff>Other exit costs </td>
    <td align=left width="1%" bgcolor=#e6efff>&nbsp;</td>
    <td align=right width="10%" bgcolor=#e6efff><b>3.2</b> </td>
    <td align=left width="2%" bgcolor=#e6efff>&nbsp;</td>
    <td align=left width="1%" bgcolor=#e6efff>&nbsp;</td>
    <td align=right width="10%" bgcolor=#e6efff>3.7 </td>
    <td align=left width="2%" bgcolor=#e6efff>&nbsp;</td>
    <td align=left width="1%" bgcolor=#e6efff>&nbsp;</td>
    <td align=right width="10%" bgcolor=#e6efff>3.1 </td>
    <td align=left width="2%" bgcolor=#e6efff>&nbsp;</td>
  </tr>
  <tr valign=top>
    <td align=left style="border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000">Adjustment for employment contract </td>
    <td align=left width="1%" style="border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000">&nbsp;</td>
    <td align=right width="10%" style="border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000"><b>-</b> </td>
    <td align=left width="2%" style="border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000">&nbsp;</td>
    <td align=left width="1%" style="border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000">&nbsp;</td>
    <td align=right width="10%" style="border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000">(0.1</td>
    <td align=left width="2%" style="border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000">) </td>
    <td align=left width="1%" style="border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000">&nbsp;</td>
    <td align=right width="10%" style="border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000">(0.1</td>
    <td align=left width="2%">) </td>
  </tr>
  <tr valign=top>
    <td style="BORDER-BOTTOM: 2px solid #000000; ; border-top-style:solid; border-top-width:1" align=left
      bgcolor=#e6efff>&nbsp;</td>
    <td style="BORDER-BOTTOM: 2px solid #000000; ; border-top-style:solid; border-top-width:1" align=left width="1%"
    bgcolor=#e6efff>&nbsp;</td>
    <td style="BORDER-BOTTOM: 2px solid #000000; ; border-top-style:solid; border-top-width:1" align=right width="10%"
    bgcolor=#e6efff><b>8.5</b> </td>
    <td style="BORDER-BOTTOM: 2px solid #000000; ; border-top-style:solid; border-top-width:1" align=left width="2%"
    bgcolor=#e6efff>&nbsp;</td>
    <td style="BORDER-BOTTOM: 2px solid #000000; ; border-top-style:solid; border-top-width:1" align=left width="1%"
    bgcolor=#e6efff>&nbsp;</td>
    <td style="BORDER-BOTTOM: 2px solid #000000; ; border-top-style:solid; border-top-width:1" align=right width="10%"
    bgcolor=#e6efff>8.7 </td>
    <td style="BORDER-BOTTOM: 2px solid #000000; ; border-top-style:solid; border-top-width:1" align=left width="2%"
    bgcolor=#e6efff>&nbsp;</td>
    <td style="BORDER-BOTTOM: 2px solid #000000; ; border-top-style:solid; border-top-width:1" align=left width="1%"
    bgcolor=#e6efff>&nbsp;</td>
    <td style="BORDER-BOTTOM: 2px solid #000000; ; border-top-style:solid; border-top-width:1" align=right width="10%"
    bgcolor=#e6efff>6.2 </td>
    <td align=left width="2%" bgcolor=#e6efff>&nbsp;</td>
  </tr>
  <tr valign=top>
    <td align=left colspan=3>Certain minor rounding variances exist between
      the financial statements and this summary. </td>
    <td align=left width="2%">&nbsp;</td>
    <td align=left width="1%">&nbsp;</td>
    <td align=left width="10%">&nbsp;</td>
    <td align=left width="2%">&nbsp;</td>
    <td align=left width="1%">&nbsp;</td>
    <td align=left width="10%">&nbsp;</td>
    <td align=left width="2%">&nbsp;</td>
  </tr>
</table>
<p align=justify>During the first quarter of fiscal 2010, the Company announced
  plans to consolidate its distribution centres servicing retail customers at its
  new retail distribution centre in Charleston, South Carolina, and to close its
  leased retail distribution facility in Martinsville, Virginia and its retail
  distribution facilities in Fort Payne, Alabama. In February 2009, the Company
  closed its U.S. sock finishing operations in Fort Payne, Alabama, and in
  February 2011 the Company announced the closure of the remaining U.S. sock
  knitting operations in Fort Payne, Alabama. </p>
<p align=justify>For fiscal 2011, restructuring and acquisition-related costs
  totalled $8.5 million, mainly relating to the closure of the U.S. sock knitting
  operations mentioned above, including $2.9 million of employee termination
  costs, other exit costs of $2.0 million related to carrying and dismantling
  costs and $1.7 million of asset write-downs mainly for assets held for sale.
  Other exit costs also included net pension expense of $1.2 million related to
  Gold Toe Moretz&#146;s defined benefit pension plan which was incurred primarily as a
  result of the Company&#146;s plan to fully fund and de-risk the plan, and reduce
  future pension costs. </p>
<p align=justify>For fiscal 2010, restructuring and acquisition-related costs
  totalled $8.7 million, mainly relating to the consolidation of retail
  distribution facilities mentioned above, including $2.5 million of accelerated
  depreciation, an asset impairment loss of $1.8 million, and $0.7 million of
  employee termination costs. The Company also incurred other exit costs of $3.7
  million for fiscal 2010 including inventory transfer costs, carrying and
  dismantling costs, and lease termination costs. </p>
<p align=justify>For fiscal 2009, restructuring and acquisition-related costs
  totalled $6.2 million which included $3.7 million for the closure of the
  Company's U.S. sock finishing operations, and $3.1 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 million relating to assets
  held for sale. </p>
<P align=right>GILDAN 2011 REPORT TO SHAREHOLDERS P.10</P>
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    <td width="50%">

<IMG src="mdax2x1.jpg" border=0 width="96" height="21"> </td>
    <td width="50%">
    <p align="right"><font size="2">MANAGEMENT&#146;S DISCUSSION AND ANALYSIS</font></td>
  </tr>
</table>
<P align=justify>&nbsp;</P>
<P align=justify>The Company expects to incur additional carrying costs relating
  to the closed facilities, which will be accounted for as restructuring charges
  as incurred and until all property, plant and equipment related to the closures
  are disposed of. Any 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. </P>
<P align=justify><b>Financial Expense / Income, net</b><br>
</P>
<p align="justify"> Net financial expense/income includes interest expense, net of interest income, and foreign exchange gains and losses. Net financial expense amounted to &#36;5.4 million in fiscal 2011, compared to net financial expense of &#36;0.8 million in fiscal
  2010. The increase of &#36;4.6 million in net financial expense in fiscal 2011 resulted mainly from increased interest expense and bank charges due primarily to the financing of the acquisition of Gold Toe Moretz and the realization of a loss of
  &#36;1.3 million in the first quarter of fiscal 2011 on derivative financial instruments which were not designated as hedges for accounting purposes.</p>
<p align="justify"> <b>Non-Controlling Interest in Consolidated Joint Venture </b></p>
<p align="justify"> Non-controlling interest in consolidated joint venture of &#36;0.5 million decreased by approximately &#36;3.3 million in fiscal 2011 compared to last year. The decrease is due primarily to the recognition of cotton subsidies by our yarn-spinning
  joint venture, CanAm. The non-controlling interest of the cotton subsidy recognized in fiscal 2011 was &#36;1.6 million, compared to &#36;3 million recognized in fiscal 2010. </p>
<p align="justify"> <b>Income Taxes</b><br>
</p>
<p align="justify"> The Company recorded an income tax recovery of &#36;15.7 million for fiscal 2011 compared to an income tax recovery of &#36;1.9 million for fiscal 2010. Excluding the impact of restructuring and acquisition-related costs in both years, the income
  tax recovery for fiscal 2011 totalled &#36;12.8 million compared to an income tax expense of &#36;1.4 million in fiscal 2010. The income tax recovery was due primarily to the recognition of future income tax assets related to higher tax losses
  incurred by the Company&#146;s U.S. legal entities during the year, the benefits of which have been recognized as it is more likely than not that we will be able to utilize the losses in future years.</p>
<p align="justify"> <b>Net Earnings</b><br>
</p>
<p align="justify"> Net earnings for fiscal 2011 of &#36;239.9 million, or &#36;1.96 per share on a diluted basis, were up 21.0% and 20.2%, respectively compared with net earnings of &#36;198.2 million, or &#36;1.63 per share on a diluted basis in fiscal 2010. Adjusted
  net earnings and adjusted diluted EPS for fiscal 2011 totalled &#36;245.5 million and &#36;2.01 compared with adjusted net earnings of &#36;203.6 million, or &#36;1.67 per share for the prior year. The increase in adjusted net earnings and EPS for
  fiscal 2011 compared to the prior year was due to increased sales revenues for activewear, the earnings accretion attributable to the Gold Toe Moretz acquisition and higher income tax recoveries. These positive factors more than offset the impact of
  higher cotton and other input costs, lower organic sock sales and increased selling, general and administrative expenses.</p>
<p align="justify"> Adjusted EPS on a diluted basis for fiscal 2011 slightly exceeded the Company&#146;s EPS guidance of approximately &#36;2.00 provided on August 4, 2011. Compared to its August guidance, the unfavourable impact of weaker demand and increased
  promotional discounting in the wholesale distributor channel, lower inventory replenishment by mass-market retailers and lower than forecast sock manufacturing efficiencies was more than offset by the later than anticipated timing of destocking by
  wholesale distributors, and the benefit of income tax recoveries. </p>
<P align=right>GILDAN 2011 REPORT TO SHAREHOLDERS P.11</P>
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    <td width="50%">
    <p align="right"><font size="2">MANAGEMENT&#146;S DISCUSSION AND ANALYSIS</font></td>
  </tr>
</table>
<P align="justify">
  <br>
</P>
<p align="justify"> <b>OPERATING RESULTS FOR THE YEAR ENDED OCTOBER 3, 2010 COMPARED TO THE YEAR ENDED OCTOBER 4, 2009 </b></p>
<p align="justify"> <b>Net Sales</b><br>
</p>
<p align="justify"> Net sales in fiscal 2010 totalled &#36;1,311.5 million, up 26.3%, from &#36;1,038.3 million in fiscal 2009. Sales of activewear and underwear in fiscal 2010 were &#36;1,085.0 million, up 36.4% from &#36;795.5 million in fiscal 2009, and sales of
  socks were &#36;226.5 million, down 6.7% from &#36;242.8 million in fiscal 2009.</p>
<p align="justify"> 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 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. </p>
<p align="justify"> During the nine months ended September 30, 2010, Gildan achieved market share gains in all of its product categories and according to the S.T.A.R.S. report produced by ACNielsen, increased its overall market share in the U.S. screenprint channel to
  64.1%, up 7.5 percentage points compared to the same period in the previous year. While unit shipments from U.S. distributors to U.S. screenprinters for the nine months ended September 30, 2010 were up 5.8% compared to the same period in the
  previous 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. AC Nielsen discontinued the
  S.T.A.R.S. report effective from the end of the 2010 calendar year, and Gildan subsequently began to subscribe to the CREST report produced by Capstone Research, Inc. which tracks industry growth and market share in the U.S. distributor channel.
  Consequently, industry growth and market share data provided above is based on the S.T.A.R.S. report whereas industry growth and market share data discussed elsewhere in this annual MD&amp;A is based on the CREST report for the current and
  comparative years.</p>
<p align="justify"> 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 fiscal 2010. Canadian sales totalled &#36;54.2 million in
  fiscal 2010, up 54.4% compared to sales of &#36;35.1 million in fiscal 2009 due to the recovery in industry demand and the higher value of the Canadian dollar compared to fiscal 2009. Net sales of &#36;102.5 million from our international markets
  increased 61.4% in fiscal 2010 compared to the previous year. The increase in sales was due to strong unit volume growth in essentially all international markets that we serve. </p>
<p align="justify"> 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 fiscal 2009 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. </p>
<p align="justify"> <b>Gross Profit</b><br>
</p>
<p align="justify"> Gross profit for fiscal 2010 was &#36;364.3 million, or 27.8% of net sales, higher than gross profit of &#36;230.3 million, or 22.2% of net sales for fiscal 2009. The increase in gross margins in fiscal 2010 compared to the previous year was
  primarily due to lower promotional discounting in the U.S. distributor channel, more favourable activewear product-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 &#36;6 million cotton subsidy recognized by our yarn-spinning joint venture, CanAm, which was recorded as a reduction of cost of sales in the fourth quarter of fiscal 2010. After reflecting the portion
  of the benefit of the cotton subsidy that is included in non-controlling interest in our consolidated statement of earnings, the net after-tax benefit for the Company was approximately &#36;1.9 million.<B><br>
  </B></p>
<P align="right">
GILDAN 2011 REPORT TO SHAREHOLDERS P.12</P>

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    <td width="50%">
    <p align="right"><font size="2">MANAGEMENT&#146;S DISCUSSION AND ANALYSIS</font></td>
  </tr>
</table>
<P align="justify"><b><br>
Selling, General and Administrative Expenses</b><br>
</P>
<p align="justify"> Selling, general and administrative (SG&amp;A) expenses were &#36;154.7 million in fiscal 2010, compared to &#36;134.8 million in fiscal 2009. SG&amp;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&amp;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&amp;A was partially
  offset by lower bad debt expense, as well as lower legal and professional fees. </p>
<p align="justify"> <b>Financial Expense / Income, net</b><br>
</p>
<p align="justify"> Net financial expense amounted to &#36;0.8 million in fiscal 2010, compared to net financial income of &#36;0.3 million in fiscal 2009. The increase of &#36;1.1 million in net financial expense in fiscal 2010 resulted from a decrease in foreign
  exchange gains of &#36;2.0 million, and an increase in bank and other financial charges of &#36;0.5 million, partially offset by a decrease in interest expense of &#36;1.4 million. The decrease in interest expense was due to lower borrowings during
  fiscal 2010 compared to 2009.</p>
<p align="justify"> <b>Non-Controlling Interest in Consolidated Joint Venture </b></p>
<p align="justify"> Non-controlling interest in consolidated joint venture increased to &#36;3.8 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,
  totalling &#36;6 million. </p>
<p align="justify"> <b>Income Taxes</b><br>
</p>
<p align="justify"> The income tax recovery for fiscal 2010 was &#36;1.9 million, compared to an income tax recovery of &#36;5.8 million for fiscal 2009. The total income tax recovery for fiscal 2010 included recoveries of &#36;3.3 million related to the impact of
  restructuring and acquisition-related costs. The income tax recovery for fiscal 2009 included recoveries of &#36;6.1 million relating to the recognition of previously unrecorded tax positions of prior years and &#36;1.8 million related to the impact
  of restructuring and acquisition-related costs. Excluding the impact of restructuring and acquisition-related costs 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. </p>
<p align="justify"> <b>Net Earnings</b><br>
</p>
<p align="justify"> Net earnings for fiscal 2010 of &#36;198.2 million, or &#36;1.63 per share on a diluted basis, were up 108.0% and 106.3%, respectively compared with net earnings of &#36;95.3 million, or &#36;0.79 per share on a diluted basis in fiscal 2009. Net
  earnings included after-tax restructuring and acquisition-related costs of &#36;5.4 million in fiscal 2010 and &#36;4.4 million in fiscal 2009. Excluding the impact of restructuring and acquisition-related costs, adjusted net earnings and adjusted
  diluted EPS for fiscal 2010 totalled &#36;203.6 million and &#36;1.67 per share compared with adjusted net earnings of &#36;99.7 million, or &#36;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&amp;A expenses. </p>
<P align="right">
GILDAN 2011 REPORT TO SHAREHOLDERS P.13</P>

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<P align="justify"><br>
<b><font size="3">SUMMARY</font></b><font size="3"><b> OF QUARTERLY </b> </font><b><font size="3">RESULTS </font> </b></P>
<p align=justify>The table below sets forth certain summarized unaudited
  quarterly financial data for the eight most recently completed quarters. This
  quarterly information is unaudited and has been prepared on the same basis as
  the audited annual consolidated financial statements. The operating results for
  any quarter are not necessarily indicative of the results to be expected for any
  period. </p>
<table
style="BORDER-COLOR: black; FONT-SIZE: 8pt; BORDER-COLLAPSE: collapse; "
cellspacing=0 cellpadding=0 width="100%" border=0>
  <tr valign=top>
    <td style="BORDER-BOTTOM: #000000 1px solid" align=left><i>(in $ millions,
      except per share amounts)</i> </td>
    <td style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="1%">&nbsp;</td>
    <td style="BORDER-BOTTOM: #000000 1px solid" align=left width="7%">&nbsp;</td>
    <td style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="2%">&nbsp;</td>
    <td style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="1%">&nbsp;</td>
    <td style="BORDER-BOTTOM: #000000 1px solid" align=left width="7%">&nbsp;</td>
    <td style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="2%">&nbsp;</td>
    <td style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="1%">&nbsp;</td>
    <td style="BORDER-BOTTOM: #000000 1px solid" align=left width="7%">&nbsp;</td>
    <td style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="2%">&nbsp;</td>
    <td style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="1%">&nbsp;</td>
    <td style="BORDER-BOTTOM: #000000 1px solid" align=right width="7%">2011 </td>
    <td style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="2%">&nbsp;</td>
    <td style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="1%">&nbsp;</td>
    <td style="BORDER-BOTTOM: #000000 1px solid" align=left width="7%">&nbsp;</td>
    <td style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="2%">&nbsp;</td>
    <td style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="1%">&nbsp;</td>
    <td style="BORDER-BOTTOM: #000000 1px solid" align=left width="7%">&nbsp;</td>
    <td style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="2%">&nbsp;</td>
    <td style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="1%">&nbsp;</td>
    <td style="BORDER-BOTTOM: #000000 1px solid" align=left width="7%">&nbsp;</td>
    <td style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="2%">&nbsp;</td>
    <td style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="1%">&nbsp;</td>
    <td style="BORDER-BOTTOM: #000000 1px solid" align=right width="7%">2010 </td>
    <td align=left width="2%">&nbsp;</td>
  </tr>
  <tr valign=top>
    <td style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</td>
    <td style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="1%">&nbsp;</td>
    <td style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="7%"><b>Q4</b></td>
    <td style="BORDER-BOTTOM: #000000 1px solid" align=left
      width="2%"><b><sup>(1)</sup></b> </td>
    <td style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="1%">&nbsp;</td>
    <td style="BORDER-BOTTOM: #000000 1px solid" align=right width="7%">Q3</td>
    <td style="BORDER-BOTTOM: #000000 1px solid" align=left
      width="2%"><sup>(1)</sup> </td>
    <td style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="1%">&nbsp;</td>
    <td style="BORDER-BOTTOM: #000000 1px solid" align=right width="7%">Q2 </td>
    <td style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="2%">&nbsp;</td>
    <td style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="1%">&nbsp;</td>
    <td style="BORDER-BOTTOM: #000000 1px solid" align=right width="7%">Q1 </td>
    <td style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="2%">&nbsp;</td>
    <td style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="1%">&nbsp;</td>
    <td style="BORDER-BOTTOM: #000000 1px solid" align=right width="7%">Q4 </td>
    <td style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="2%">&nbsp;</td>
    <td style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="1%">&nbsp;</td>
    <td style="BORDER-BOTTOM: #000000 1px solid" align=right width="7%">Q3 </td>
    <td style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="2%">&nbsp;</td>
    <td style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="1%">&nbsp;</td>
    <td style="BORDER-BOTTOM: #000000 1px solid" align=right width="7%">Q2 </td>
    <td style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="2%">&nbsp;</td>
    <td style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="1%">&nbsp;</td>
    <td style="BORDER-BOTTOM: #000000 1px solid" align=right width="7%">Q1 </td>
    <td align=left width="2%">&nbsp;</td>
  </tr>
  <tr valign=top>
    <td align=left bgcolor=#e6efff>Net sales </td>
    <td align=left width="1%" bgcolor=#e6efff>&nbsp;</td>
    <td align=right width="7%" bgcolor=#e6efff><b>481.8</b> </td>
    <td align=left width="2%" bgcolor=#e6efff>&nbsp;</td>
    <td align=left width="1%" bgcolor=#e6efff>&nbsp;</td>
    <td align=right width="7%" bgcolor=#e6efff>529.8 </td>
    <td align=left width="2%" bgcolor=#e6efff>&nbsp;</td>
    <td align=left width="1%" bgcolor=#e6efff>&nbsp;</td>
    <td align=right width="7%" bgcolor=#e6efff>383.2 </td>
    <td align=left width="2%" bgcolor=#e6efff>&nbsp;</td>
    <td align=left width="1%" bgcolor=#e6efff>&nbsp;</td>
    <td align=right width="7%" bgcolor=#e6efff>331.3 </td>
    <td align=left width="2%" bgcolor=#e6efff>&nbsp;</td>
    <td align=left width="1%" bgcolor=#e6efff>&nbsp;</td>
    <td align=right width="7%" bgcolor=#e6efff>368.9 </td>
    <td align=left width="2%" bgcolor=#e6efff>&nbsp;</td>
    <td align=left width="1%" bgcolor=#e6efff>&nbsp;</td>
    <td align=right width="7%" bgcolor=#e6efff>395.3 </td>
    <td align=left width="2%" bgcolor=#e6efff>&nbsp;</td>
    <td align=left width="1%" bgcolor=#e6efff>&nbsp;</td>
    <td align=right width="7%" bgcolor=#e6efff>326.8 </td>
    <td align=left width="2%" bgcolor=#e6efff>&nbsp;</td>
    <td align=left width="1%" bgcolor=#e6efff>&nbsp;</td>
    <td align=right width="7%" bgcolor=#e6efff>220.4 </td>
    <td align=left width="2%" bgcolor=#e6efff>&nbsp;</td>
  </tr>
  <tr valign=top>
    <td align=left>Net earnings </td>
    <td align=left width="1%">&nbsp;</td>
    <td align=right width="7%"><b>48.5</b> </td>
    <td align=left width="2%">&nbsp;</td>
    <td align=left width="1%">&nbsp;</td>
    <td align=right width="7%">94.1 </td>
    <td align=left width="2%">&nbsp;</td>
    <td align=left width="1%">&nbsp;</td>
    <td align=right width="7%">61.4 </td>
    <td align=left width="2%">&nbsp;</td>
    <td align=left width="1%">&nbsp;</td>
    <td align=right width="7%">35.9 </td>
    <td align=left width="2%">&nbsp;</td>
    <td align=left width="1%">&nbsp;</td>
    <td align=right width="7%">56.8 </td>
    <td align=left width="2%">&nbsp;</td>
    <td align=left width="1%">&nbsp;</td>
    <td align=right width="7%">64.7 </td>
    <td align=left width="2%">&nbsp;</td>
    <td align=left width="1%">&nbsp;</td>
    <td align=right width="7%">48.8 </td>
    <td align=left width="2%">&nbsp;</td>
    <td align=left width="1%">&nbsp;</td>
    <td align=right width="7%">28.0 </td>
    <td align=left width="2%">&nbsp;</td>
  </tr>
  <tr valign=top>
    <td align=left bgcolor=#e6efff>Net earnings per share </td>
    <td align=left width="1%" bgcolor=#e6efff>&nbsp;</td>
    <td align=left width="7%" bgcolor=#e6efff>&nbsp;</td>
    <td align=left width="2%" bgcolor=#e6efff>&nbsp;</td>
    <td align=left width="1%" bgcolor=#e6efff>&nbsp;</td>
    <td align=left width="7%" bgcolor=#e6efff>&nbsp;</td>
    <td align=left width="2%" bgcolor=#e6efff>&nbsp;</td>
    <td align=left width="1%" bgcolor=#e6efff>&nbsp;</td>
    <td align=left width="7%" bgcolor=#e6efff>&nbsp;</td>
    <td align=left width="2%" bgcolor=#e6efff>&nbsp;</td>
    <td align=left width="1%" bgcolor=#e6efff>&nbsp;</td>
    <td align=left width="7%" bgcolor=#e6efff>&nbsp;</td>
    <td align=left width="2%" bgcolor=#e6efff>&nbsp;</td>
    <td align=left width="1%" bgcolor=#e6efff>&nbsp;</td>
    <td align=left width="7%" bgcolor=#e6efff>&nbsp;</td>
    <td align=left width="2%" bgcolor=#e6efff>&nbsp;</td>
    <td align=left width="1%" bgcolor=#e6efff>&nbsp;</td>
    <td align=left width="7%" bgcolor=#e6efff>&nbsp;</td>
    <td align=left width="2%" bgcolor=#e6efff>&nbsp;</td>
    <td align=left width="1%" bgcolor=#e6efff>&nbsp;</td>
    <td align=left width="7%" bgcolor=#e6efff>&nbsp;</td>
    <td align=left width="2%" bgcolor=#e6efff>&nbsp;</td>
    <td align=left width="1%" bgcolor=#e6efff>&nbsp;</td>
    <td align=left width="7%" bgcolor=#e6efff>&nbsp;</td>
    <td align=left width="2%" bgcolor=#e6efff>&nbsp;</td>
  </tr>
  <tr valign=top>
    <td align=left>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;
      &nbsp;Basic EPS<sup>(2)</sup> </td>
    <td align=left width="1%">&nbsp;</td>
    <td align=right width="7%"><b>0.40</b> </td>
    <td align=left width="2%">&nbsp;</td>
    <td align=left width="1%">&nbsp;</td>
    <td align=right width="7%">0.77 </td>
    <td align=left width="2%">&nbsp;</td>
    <td align=left width="1%">&nbsp;</td>
    <td align=right width="7%">0.51 </td>
    <td align=left width="2%">&nbsp;</td>
    <td align=left width="1%">&nbsp;</td>
    <td align=right width="7%">0.30 </td>
    <td align=left width="2%">&nbsp;</td>
    <td align=left width="1%">&nbsp;</td>
    <td align=right width="7%">0.47 </td>
    <td align=left width="2%">&nbsp;</td>
    <td align=left width="1%">&nbsp;</td>
    <td align=right width="7%">0.53 </td>
    <td align=left width="2%">&nbsp;</td>
    <td align=left width="1%">&nbsp;</td>
    <td align=right width="7%">0.40 </td>
    <td align=left width="2%">&nbsp;</td>
    <td align=left width="1%">&nbsp;</td>
    <td align=right width="7%">0.23 </td>
    <td align=left width="2%">&nbsp;</td>
  </tr>
  <tr valign=top>
    <td align=left bgcolor=#e6efff>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;
      &nbsp; &nbsp;Diluted EPS<sup>(2)</sup> </td>
    <td align=left width="1%" bgcolor=#e6efff>&nbsp;</td>
    <td align=right width="7%" bgcolor=#e6efff><b>0.40</b> </td>
    <td align=left width="2%" bgcolor=#e6efff>&nbsp;</td>
    <td align=left width="1%" bgcolor=#e6efff>&nbsp;</td>
    <td align=right width="7%" bgcolor=#e6efff>0.77 </td>
    <td align=left width="2%" bgcolor=#e6efff>&nbsp;</td>
    <td align=left width="1%" bgcolor=#e6efff>&nbsp;</td>
    <td align=right width="7%" bgcolor=#e6efff>0.50 </td>
    <td align=left width="2%" bgcolor=#e6efff>&nbsp;</td>
    <td align=left width="1%" bgcolor=#e6efff>&nbsp;</td>
    <td align=right width="7%" bgcolor=#e6efff>0.29 </td>
    <td align=left width="2%" bgcolor=#e6efff>&nbsp;</td>
    <td align=left width="1%" bgcolor=#e6efff>&nbsp;</td>
    <td align=right width="7%" bgcolor=#e6efff>0.47 </td>
    <td align=left width="2%" bgcolor=#e6efff>&nbsp;</td>
    <td align=left width="1%" bgcolor=#e6efff>&nbsp;</td>
    <td align=right width="7%" bgcolor=#e6efff>0.53 </td>
    <td align=left width="2%" bgcolor=#e6efff>&nbsp;</td>
    <td align=left width="1%" bgcolor=#e6efff>&nbsp;</td>
    <td align=right width="7%" bgcolor=#e6efff>0.40 </td>
    <td align=left width="2%" bgcolor=#e6efff>&nbsp;</td>
    <td align=left width="1%" bgcolor=#e6efff>&nbsp;</td>
    <td align=right width="7%" bgcolor=#e6efff>0.23 </td>
    <td align=left width="2%" bgcolor=#e6efff>&nbsp;</td>
  </tr>
  <tr valign=top>
    <td align=left>Total assets </td>
    <td align=left width="1%">&nbsp;</td>
    <td align=right width="7%"><b>1,889.7</b> </td>
    <td align=left width="2%">&nbsp;</td>
    <td align=left width="1%">&nbsp;</td>
    <td align=right width="7%">1,893.3 </td>
    <td align=left width="2%">&nbsp;</td>
    <td align=left width="1%">&nbsp;</td>
    <td align=right width="7%">1,441.7 </td>
    <td align=left width="2%">&nbsp;</td>
    <td align=left width="1%">&nbsp;</td>
    <td align=right width="7%">1,346.0 </td>
    <td align=left width="2%">&nbsp;</td>
    <td align=left width="1%">&nbsp;</td>
    <td align=right width="7%">1,327.5 </td>
    <td align=left width="2%">&nbsp;</td>
    <td align=left width="1%">&nbsp;</td>
    <td align=right width="7%">1,272.4 </td>
    <td align=left width="2%">&nbsp;</td>
    <td align=left width="1%">&nbsp;</td>
    <td align=right width="7%">1,170.8 </td>
    <td align=left width="2%">&nbsp;</td>
    <td align=left width="1%">&nbsp;</td>
    <td align=right width="7%">1,093.6 </td>
    <td align=left width="2%">&nbsp;</td>
  </tr>
  <tr valign=top>
    <td align=left bgcolor=#e6efff>Total long-term financial liabilities </td>
    <td align=left width="1%" bgcolor=#e6efff>&nbsp;</td>
    <td align=right width="7%" bgcolor=#e6efff><b>209.0</b> </td>
    <td align=left width="2%" bgcolor=#e6efff>&nbsp;</td>
    <td align=left width="1%" bgcolor=#e6efff>&nbsp;</td>
    <td align=right width="7%" bgcolor=#e6efff>252.0 </td>
    <td align=left width="2%" bgcolor=#e6efff>&nbsp;</td>
    <td align=left width="1%" bgcolor=#e6efff>&nbsp;</td>
    <td align=right width="7%" bgcolor=#e6efff>- </td>
    <td align=left width="2%" bgcolor=#e6efff>&nbsp;</td>
    <td align=left width="1%" bgcolor=#e6efff>&nbsp;</td>
    <td align=right width="7%" bgcolor=#e6efff>- </td>
    <td align=left width="2%" bgcolor=#e6efff>&nbsp;</td>
    <td align=left width="1%" bgcolor=#e6efff>&nbsp;</td>
    <td align=right width="7%" bgcolor=#e6efff>- </td>
    <td align=left width="2%" bgcolor=#e6efff>&nbsp;</td>
    <td align=left width="1%" bgcolor=#e6efff>&nbsp;</td>
    <td align=right width="7%" bgcolor=#e6efff>0.1 </td>
    <td align=left width="2%" bgcolor=#e6efff>&nbsp;</td>
    <td align=left width="1%" bgcolor=#e6efff>&nbsp;</td>
    <td align=right width="7%" bgcolor=#e6efff>0.7 </td>
    <td align=left width="2%" bgcolor=#e6efff>&nbsp;</td>
    <td align=left width="1%" bgcolor=#e6efff>&nbsp;</td>
    <td align=right width="7%" bgcolor=#e6efff>3.2 </td>
    <td align=left width="2%" bgcolor=#e6efff>&nbsp;</td>
  </tr>
  <tr valign=top>
    <td align=left>Weighted average number of shares outstanding <i>(in
      &#145;000s)</i> </td>
    <td align=left width="1%">&nbsp;</td>
    <td align=left width="7%"></td>
    <td align=left width="2%">&nbsp;</td>
    <td align=left width="1%">&nbsp;</td>
    <td align=left width="7%"></td>
    <td align=left width="2%">&nbsp;</td>
    <td align=left width="1%">&nbsp;</td>
    <td align=left width="7%"></td>
    <td align=left width="2%">&nbsp;</td>
    <td align=left width="1%">&nbsp;</td>
    <td align=left width="7%"></td>
    <td align=left width="2%">&nbsp;</td>
    <td align=left width="1%">&nbsp;</td>
    <td align=left width="7%"></td>
    <td align=left width="2%">&nbsp;</td>
    <td align=left width="1%">&nbsp;</td>
    <td align=left width="7%"></td>
    <td align=left width="2%">&nbsp;</td>
    <td align=left width="1%">&nbsp;</td>
    <td align=left width="7%"></td>
    <td align=left width="2%">&nbsp;</td>
    <td align=left width="1%">&nbsp;</td>
    <td align=left width="7%"></td>
    <td align=left width="2%">&nbsp;</td>
  </tr>
  <tr valign=top>
    <td align=left bgcolor=#e6efff>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;
      &nbsp; &nbsp;Basic </td>
    <td align=left width="1%" bgcolor=#e6efff>&nbsp;</td>
    <td align=right width="7%" bgcolor=#e6efff><b>121,548</b> </td>
    <td align=left width="2%" bgcolor=#e6efff>&nbsp;</td>
    <td align=left width="1%" bgcolor=#e6efff>&nbsp;</td>
    <td align=right width="7%" bgcolor=#e6efff>121,649 </td>
    <td align=left width="2%" bgcolor=#e6efff>&nbsp;</td>
    <td align=left width="1%" bgcolor=#e6efff>&nbsp;</td>
    <td align=right width="7%" bgcolor=#e6efff>121,515 </td>
    <td align=left width="2%" bgcolor=#e6efff>&nbsp;</td>
    <td align=left width="1%" bgcolor=#e6efff>&nbsp;</td>
    <td align=right width="7%" bgcolor=#e6efff>121,394 </td>
    <td align=left width="2%" bgcolor=#e6efff>&nbsp;</td>
    <td align=left width="1%" bgcolor=#e6efff>&nbsp;</td>
    <td align=right width="7%" bgcolor=#e6efff>121,334 </td>
    <td align=left width="2%" bgcolor=#e6efff>&nbsp;</td>
    <td align=left width="1%" bgcolor=#e6efff>&nbsp;</td>
    <td align=right width="7%" bgcolor=#e6efff>121,264 </td>
    <td align=left width="2%" bgcolor=#e6efff>&nbsp;</td>
    <td align=left width="1%" bgcolor=#e6efff>&nbsp;</td>
    <td align=right width="7%" bgcolor=#e6efff>121,061 </td>
    <td align=left width="2%" bgcolor=#e6efff>&nbsp;</td>
    <td align=left width="1%" bgcolor=#e6efff>&nbsp;</td>
    <td align=right width="7%" bgcolor=#e6efff>120,977 </td>
    <td align=left width="2%" bgcolor=#e6efff>&nbsp;</td>
  </tr>
  <tr valign=top>
    <td style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp; &nbsp;
      &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;Diluted </td>
    <td style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="1%">&nbsp;</td>
    <td style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="7%"><b>122,143</b> </td>
    <td style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="2%">&nbsp;</td>
    <td style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="1%">&nbsp;</td>
    <td style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="7%">122,506 </td>
    <td style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="2%">&nbsp;</td>
    <td style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="1%">&nbsp;</td>
    <td style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="7%">122,273 </td>
    <td style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="2%">&nbsp;</td>
    <td style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="1%">&nbsp;</td>
    <td style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="7%">122,161 </td>
    <td style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="2%">&nbsp;</td>
    <td style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="1%">&nbsp;</td>
    <td style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="7%">122,141 </td>
    <td style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="2%">&nbsp;</td>
    <td style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="1%">&nbsp;</td>
    <td style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="7%">122,098 </td>
    <td style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="2%">&nbsp;</td>
    <td style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="1%">&nbsp;</td>
    <td style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="7%">121,919 </td>
    <td style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="2%">&nbsp;</td>
    <td style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="1%">&nbsp;</td>
    <td style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="7%">121,762 </td>
    <td style="BORDER-BOTTOM: medium none #000000; " align=left
    width="2%">&nbsp;</td>
  </tr>
</table>
<br>
<table
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellspacing=0 cellpadding=0 width="100%" border=0 bcllist>
  <tr>
    <td valign=top width="5%"><i>(1)</i> </td>
    <td><p align=justify><i>Results reflect the acquisition of Gold Toe Moretz
      from April 16, 2011.</i></p></td>
  </tr>
  <tr>
    <td valign=top width="5%"><i>(2)</i> </td>
    <td><p align=justify><i>Quarterly EPS may not add to year-to-date EPS due to
      rounding.</i></p></td>
  </tr>
  <tr>
    <td valign=top colspan="2"><i>Certain minor rounding variances exist between the financial
      statements and this summary. </i> </td>
  </tr>
</table>
<p align=justify><b><br>
  Seasonality and Other Factors Affecting the Variability of
  Results and Financial Condition </b></p>
<p align=justify>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.</p>
<p align=justify>Historically, we have typically 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. During fiscal 2010,
  the massive earthquake that struck Haiti impacted our sewing contractors&#146;
  operations resulting in a temporary loss of production. This, combined with the
  recovery in demand during fiscal 2010, prevented the Company from adequately
  rebuilding inventories to optimal levels by the end of the year. Fiscal 2011
  began with sub optimal levels of inventories and the continuation of the strong
  recovery in demand in the first half of the year did not allow the Company to
  rebuild its inventories until the fourth quarter of fiscal 2011.</p>
<p align=justify>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.<b> </b></p>
<P align="right">
GILDAN 2011 REPORT TO SHAREHOLDERS P.14</P>

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    <p align="right"><font size="2">MANAGEMENT&#146;S DISCUSSION AND ANALYSIS</font></td>
  </tr>
</table>
<P align="justify">
<br>
Management decisions to consolidate or reorganize operations, including the closure of facilities, may also result in significant restructuring costs in an interim or annual period. Refer to the section of this annual MD&amp;A entitled
&#147;Restructuring and Acquisition-Related Costs&#148; for the details of restructuring costs incurred during fiscal 2011, 2010 and 2009. In addition, the effect of asset write-downs, including provisions for bad debts and slow moving inventories,
can affect the variability of our results. </P>
<P align="justify">
Our reported amounts for sales, selling, general and administrative expenses, and financial expense/income 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 annual MD&amp;A. The Company may periodically use derivative financial instruments to manage risks related to fluctuations in foreign exchange rates. </P>
<P align="justify">
As previously discussed, the impact of the Haiti earthquake during fiscal 2010 led to a temporary loss of production at our contractors&#146; sewing facilities and consequently resulted in manufacturing and supply chain inefficiencies in the second,
third and fourth quarters of fiscal 2010. The Company received insurance proceeds of &#36;8 million, or &#36;0.07 per share in the fourth quarter of fiscal 2010, which only partially offset the impact of manufacturing and supply chain inefficiencies
and lost sales during fiscal 2011.</P>
<P align="justify">
<B>Fourth Quarter Results</B><BR>
</P>
<P align="justify">
Net sales in the fourth quarter of fiscal 2011 amounted to &#36;481.8 million, up 30.6% from net sales of &#36;368.9 million in the fourth quarter of fiscal 2010. Sales of activewear and underwear for the fourth quarter in fiscal 2011 amounted to
&#36;368.9 million, up 20.0% from fiscal 2010, and sales of socks were &#36;112.9 million, up 83.6% from &#36;61.5 million in the fourth quarter last year. The Company had forecast in August that sales in the fourth quarter would be slightly below
&#36;500 million. Weaker than forecasted demand and increased promotional discounting in the wholesale distributor channel and lower inventory replenishment by mass-market retailers more than offset the later than anticipated timing of destocking by
wholesale distributors.</P>
<P align="justify">
The growth in sales of activewear and underwear compared to the fourth quarter of fiscal 2010 was due to an approximate 23% increase in average net selling prices, partially offset by a 7.6% reduction in unit volume shipments which declined due to a
6.3% reduction in industry shipments from U.S. distributors to U.S. screenprinters and seasonal destocking in the U.S. screenprint market which was less than anticipated. Gildan&#146;s market share in the U.S. distributor channel in the fourth
quarter was 62.3%, according to the CREST report, and was essentially unchanged from 62.1% in the fourth quarter of last year. Consequently, the Company has recaptured the slight loss of market share incurred earlier in the fiscal year, when it was
unable to fully service demand for its products due to capacity constraints and suboptimal inventory levels. </P>
<P align="justify">
The increase in sales revenues for socks was due to the acquisition of Gold Toe Moretz. Shipments of socks in the fourth quarter of fiscal 2011 were negatively impacted by weak market conditions and inventory destocking by mass-market retailers.
Also, sales of socks in the fourth quarter of fiscal 2010 were positively impacted by the later timing of shipments of back-to-school programs. </P>
<P align="justify">
Gross profit for the fourth quarter of fiscal 2011 totalled &#36;98.5 million, down slightly from gross profit of &#36;100.7 million in the fourth quarter of fiscal 2010. Gross margins in the fourth quarter of fiscal 2011 were 20.4% compared with
the Company&#146;s guidance in August of approximately 22%, and 27.3% in the fourth quarter of last year. Gross margins were lower than forecast due to higher than forecast selling price promotions in the U.S. wholesale distributor channel in the
month of September and lower than projected sock manufacturing efficiencies. The decrease in gross margins compared to last year was due to the significant increase in the cost of cotton, which was not fully recovered in higher selling prices, and
the non-recurrence of the proceeds from the insurance claim for the Haiti earthquake and a cotton subsidy received in Gildan&#146;s U.S. yarn-spinning joint venture, which together positively impacted gross margins by
over 400 basis points in the fourth quarter of last year. These negative factors were partially offset by more favourable activewear product-mix and the impact of the acquisition of Gold Toe Moretz. </P>
<P align="right">
GILDAN 2011 REPORT TO SHAREHOLDERS P.15</P>

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    <p align="right"><font size="2">MANAGEMENT&#146;S DISCUSSION AND ANALYSIS</font></td>
  </tr>
</table>
<P align="justify">
<br>
SG&amp;A expenses in the fourth quarter increased to &#36;53.3 million, or 11.1% of sales, compared to &#36;42.0 million, or 11.4% of sales in the fourth quarter of fiscal 2010. The increase in SG&amp;A expenses was due to the impact of including
Gold Toe Moretz, which resulted in approximately &#36;15 million of additional SG&amp;A expenses, partially offset by the non-recurrence of a &#36;1.5 million provision for doubtful accounts receivable in the fourth quarter of last year and lower
distribution expenses. </P>
<P align="justify">
We recorded an income tax recovery of &#36;8.9 million in the fourth quarter of fiscal 2011 compared to an income tax recovery of &#36;2.5 million in the fourth quarter of fiscal 2010 due to higher tax losses in the Company&#146;s U.S. legal
entities, the benefits of which have been recognized as a future income tax asset as it is more likely than not that we will be able to utilize the losses in future years.</P>
<P align="justify">
Net earnings for the fourth fiscal quarter ended October 2, 2011 were &#36;48.5 million or &#36;0.40 per share on a diluted basis, down respectively 14.6% and 14.9% from &#36;56.8 million or &#36;0.47 per share in the fourth quarter of fiscal 2010.
Results for the fourth quarter include restructuring charges totaling &#36;2.3 million after tax or &#36;0.02 per share to write down the carrying value of assets held for sale and to recognize pension costs related to Gold Toe Moretz's defined
benefit pension plan, which the Company intends to terminate in fiscal 2012. Adjusted net earnings for the fourth quarter of fiscal 2011 amounted to &#36;50.8 million, or &#36;0.42 per share, down 12.9% and 12.5% respectively, compared to &#36;58.3
million, or &#36;0.48 per share in the fourth quarter of fiscal 2010. The decline in adjusted net earnings and EPS in the fourth quarter compared to last year was due to the significant increase in the cost of cotton, which was not fully recovered
in higher net selling prices, and lower unit sales volumes for activewear. In addition, net earnings for the fourth quarter of fiscal 2010 included the benefit of insurance proceeds of &#36;8 million and the recognition of a cotton subsidy. These
factors were partially offset by the positive impact of income tax recoveries in the fourth quarter of fiscal 2011, more favourable activewear product-mix, lower SG&amp;A expenses and the earnings accretion from the acquisition of Gold Toe Moretz.
</P>
<P align="justify">
Adjusted EPS on a diluted basis slightly exceeded our guidance for the quarter of approximately &#36;0.40 per share provided on August 4, 2011. Compared to the assumptions in our August guidance, the unfavourable impact of weaker demand and
increased promotional discounting in the wholesale distributor channel, lower inventory replenishment by mass-market retailers and lower than forecast sock manufacturing efficiencies was more than offset by the later than anticipated timing of
destocking of inventories by wholesale distributors, and the benefit of income tax recoveries. </P>
<P align="justify">
<B><font size="3">FINANCIAL CONDITION</font></B><font size="3"><BR>
</font>
</P>
<P align="justify">
Trade accounts receivable of &#36;191.6 million as at October 2, 2011 increased by &#36;45.9 million, or 31.5% compared to &#36;145.7 million at the end of fiscal 2010. Excluding the impact of the inclusion of accounts receivable of Gold Toe Moretz
at the end of fiscal 2011, accounts receivable increased by &#36;11.5 million, or 7.9% from last year due to higher net sales in the fourth quarter compared with the fourth quarter of fiscal 2010, partially offset by a decrease in the number of
days&#146; sales outstanding (DSO).</P>
<P align="justify">
Inventories of &#36;575.6 million were up &#36;243.1 million, or 73.1% from &#36;332.5 million at the end of fiscal 2010. The increase in inventories reflected the inclusion of inventories from the acquisition of Gold Toe Moretz which amounted to
&#36;72.4 million at the end of fiscal 2011. Excluding the impact from the acquisition of Gold Toe Moretz, the increase in inventories was due to higher unit volumes as a result of planned increases in T-shirt inventories, which were at lower than
optimal levels last year and during most of fiscal 2011, and a significant increase in overall average unit costs. The increase in average unit costs was mainly attributable to the impact of rising cotton and other input costs as well as a higher
cost inventory mix due to a higher proportion of T-shirt inventories compared to sock inventories at the end of fiscal 2011 compared to the end of fiscal 2010. </P>
<P align="justify">
Property, plant and equipment, which are net of accumulated depreciation, amounted to &#36;565.4 million at October 2, 2011, compared to &#36;479.3 million at October 3, 2010. The increase of &#36;86.1 million reflected
capital additions of &#36;162.9 million, and the inclusion of &#36;3.5 million of property, plant and equipment from the acquisition of Gold Toe Moretz, partially offset by &#36;66.7 million of depreciation, and a reclassification of property, plant
and equipment to assets held for sale and the disposal of certain assets. Capital additions consisted primarily of the construction of our new Rio Nance 5 textile facility, expenditures related to the ramp-up of our Rio Nance 4 sock facility, the
expansion of our distribution centre in North Carolina servicing the screenprint market, the further incremental capacity expansion of our Dominican Republic textile facility, and our biomass energy project in Honduras. Capital expenditures for
fiscal 2011 were in line with the Company&#146;s guidance provided on August 4, 2011 of capital expenditures in excess of &#36;150 million.</P>
<P align="right">
GILDAN 2011 REPORT TO SHAREHOLDERS P.16<BR>
</P>

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    <p align="right"><font size="2">MANAGEMENT&#146;S DISCUSSION AND ANALYSIS</font></td>
  </tr>
</table>
<P align="justify">
<br>
Assets held for sale of &#36;13.1 million as at October 2, 2011 and &#36;3.2 million as at October 3, 2010 include property, plant and equipment primarily relating to closed facilities. The increase was due mainly to the reclassification of assets
from property, plant and equipment to assets held for sale, including sock manufacturing and distribution facilities at our Fort Payne, Alabama location that were recently closed, and our former office building in Barbados. </P>
<P align="justify">
Intangible assets are comprised of customer contracts and relationships, trademarks, license agreements, non-compete agreements and computer software, and amounted to &#36;256.5 million as at October 2, 2011 compared to &#36;61.3 million at the end
of fiscal 2010. The increase reflects &#36;204.7 million related to the acquisition of Gold Toe Moretz, net additions of computer software of &#36;3.6 million, partially offset by amortization of &#36;13.1 million. Management performed its annual
review for impairment of the trademarks, which are considered to be indefinite life intangible assets, and concluded that there has been no impairment in the value of the trademarks as at October 2, 2011.</P>
<P align="justify">
Goodwill of &#36;153.2 million as at October 2, 2011 increased by &#36;143.0 million from the end of fiscal 2010 primarily as a result of the acquisition of Gold Toe Moretz. 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 2, 2011.</P>
<P align="justify">
Total assets were &#36;1,889.7 million as at October 2, 2011, compared to &#36;1,327.5 million at the end of the previous year. Working capital was &#36;573.1 million as at October 2, 2011 compared to &#36;570.5 million as at October 3, 2010. The
current ratio at the end of fiscal 2011 was 2.8 compared to 4.0 at the end of fiscal 2010. </P>
<P align="justify">
Accounts payable and accrued liabilities amounted to &#36;315.3 million as at October 2, 2011 compared to &#36;186.2 million at the end of fiscal 2010. The &#36;129.1 million increase from the end of fiscal 2010 reflected the inclusion of accounts
payable and accrued liabilities from the acquisition of Gold Toe Moretz, which amounted to &#36;48.4 million at the end of fiscal 2011. Excluding the impact from the acquisition of Gold Toe Moretz, the increase in accounts payable and accrued
liabilities was mainly due to the impact of higher cotton and other input costs on accounts payable, and the start-up of production at our Rio Nance 5 textile facility. </P>
<P align="justify">
Income taxes payable decreased from &#36;5.0 million at the end of fiscal 2010 to an income tax receivable of &#36;0.5 million at October 2, 2011. The current income tax provision of &#36;3.4 million was more than offset by income tax payments made
during fiscal 2011, including current year tax installments. </P>
<P align="justify">
Future income tax liabilities net of future income tax assets increased from &#36;4.5 million at the end of fiscal 2010 to &#36;14.9 million at October 2, 2011. The increase was due primarily to the acquisition of Gold Toe Moretz which resulted in
the assumption of &#36;29.6 million of net future income tax liabilities at April 15, 2011, partially offset by the recognition of the tax benefit of tax losses incurred during fiscal 2011 in the Company&#146;s higher tax rate jurisdictions. The
assumed net future income tax liabilities of &#36;29.6 million of Gold Toe Moretz at the date of acquisition included future income tax liabilities of approximately &#36;62 million resulting from the tax effect of temporary taxable differences
between the accounting and tax basis of net assets acquired, primarily relating to intangible assets, partially offset by a future income tax asset of approximately &#36;32.5 million relating to the tax benefit of income tax loss carryforwards. </P>
<P align="right">
GILDAN 2011 REPORT TO SHAREHOLDERS P.17</P>

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  </tr>
</table>
<P align="justify">
<B><br>
<font size="3">CASH FLOWS</font></B></P>
<P align="justify">
Cash inflows from operating activities in fiscal 2011 were &#36;181.6 million compared to cash inflows of &#36;301.6 million for the previous year. Despite an increase in cash generated from earnings before depreciation and other non-cash items,
cash flows from operating activities decreased due to an overall increase in the level of our net non-cash working capital in fiscal 2011 resulting primarily from the increases in inventories and trade accounts receivable as noted under the
&#147;Financial Condition&#148; section of this annual MD&amp;A. </P>
<P align="justify">
Cash flows used in investing activities were &#36;523.9 million in fiscal 2011, compared to &#36;141.2 million in fiscal 2010. The increase of &#36;382.7 million in fiscal 2011 was mainly due to the acquisition of Gold Toe Moretz in April 2011 for
&#36;349.6 million, combined with higher capital expenditures when compared with last year. For fiscal 2011, capital expenditures were primarily for capacity expansions, as noted under the &#147;Financial Condition&#148; section of this annual
MD&amp;A. For fiscal 2010, cash outflows from investing activities included investments for manufacturing capacity expansions in Honduras, the acquisition of a vertically-integrated manufacturing facility in Bangladesh, and the purchases of our
retail distribution centre in Charleston and our new office building in Barbados. </P>
<P align="justify">
We generated free cash flow of &#36;7.3 million in fiscal 2011 compared to &#36;175.9 million for the same period in fiscal 2010. The decrease of &#36;168.6 million was attributable to lower cash flows from operating activities, due to the increase
in non-cash working capital as noted above, combined with 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 annual MD&amp;A.</P>
<P align="justify">
Cash flows from financing activities in fiscal 2011 amounted to &#36;172.8 million compared to cash outflows of &#36;1.4 million in fiscal 2010. We began fiscal 2011 with no long-term debt outstanding. During the third quarter of fiscal 2011, we
utilized approximately &#36;250 million of our revolving long-term credit facility to partially finance the acquisition of Gold Toe Moretz, and we reduced the balance owing on the credit facility at the end of fiscal 2011 to &#36;209.0 million. We
issued three dividend payments during fiscal 2011 for an aggregate amount of &#36;27.5 million, and we also repurchased and cancelled 0.4 million common shares for a total cost of &#36;10.5 million under our normal course issuer bid. In fiscal 2010,
cash flows used in financing activities consisted primarily of repayments of long-term debt. </P>
<P align="justify">
<B><font size="3">LIQUIDITY AND CAPITAL RESOURCES </font> </B></P>
<P align="justify">
In recent years, we have funded our operations and capital requirements with cash generated from operations. A revolving long-term credit facility has been periodically utilized to finance seasonal peak working capital requirements and business
acquisitions, including our acquisition of Gold Toe Moretz in April 2011. Our primary uses of funds on an ongoing basis are for capital expenditures for manufacturing and distribution facilities, working capital requirements, and payment of
dividends. In addition, we may also use funds for business acquisitions. </P>
<P align="justify">
During fiscal 2011, we increased our existing unsecured revolving long-term credit facility from &#36;400 million to &#36;800 million. The amended facility has a maturity date of June 2016. Amounts drawn under the revised facility bear interest at a
variable banker&#146;s acceptance or U.S. LIBOR-based interest rate plus a spread ranging from 125 to 200 basis points. Total indebtedness as at October 2, 2011 was &#36;209.0 million, compared to nil at October 3, 2010 with the increase being due
to the funds drawn on our revolving long-term credit facility to partially finance the acquisition of Gold Toe Moretz. An amount of &#36;5.8 million has been committed against this facility to cover various letters of credit as at October 2, 2011.
Total indebtedness is comprised of bank indebtedness and long-term debt as described under the section entitled &#147;Definition and Reconciliation of Non-GAAP Measures&#148; in this annual MD&amp;A.</P>
<P align="right">
GILDAN 2011 REPORT TO SHAREHOLDERS P.18</P>

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    <p align="right"><font size="2">MANAGEMENT&#146;S DISCUSSION AND ANALYSIS</font></td>
  </tr>
</table>
<P align=justify><br>
We ended the fiscal year with net indebtedness<SUP> </SUP>of
$120.2 million, compared to cash in excess of total indebtedness of $258.4
million at the end of fiscal 2010 which consisted entirely of cash and cash
equivalents with no amounts drawn under our revolving long-term credit facility.
The increase in net indebtedness was due primarily to the acquisition of Gold
Toe Moretz in April 2011 which was initially financed using cash on hand and
funds drawn on our revolving long-term credit facility. Net indebtedness is
calculated as total indebtedness net of cash and cash equivalents as described
under the section entitled &#147;Definition and Reconciliation of Non-GAAP measures&#148;
in this annual MD&amp;A. At October 2, 2011, we continue to have ample liquidity
and significant financing capacity and flexibility under our revolving long-term
credit facility. </P>
<P align=justify>Gildan is currently projecting capital expenditures of
approximately $100 million for fiscal 2012, including expenditures for the
ramp-up of the Rio Nance 5 textile facility, the completion of the ramp-up of
our second sock manufacturing facility in Honduras, and our ongoing cost
reduction initiatives including expenditures for our biomass alternative energy
projects in Honduras. The Company also expects to use cash in fiscal 2012 to
fund dividend payments.</P>
<P align=justify>We expect that cash flows from operating activities and the
unutilized financing capacity under our revolving long-term credit facility will
provide us with sufficient liquidity for the foreseeable future to fund our
organic growth strategy, including anticipated working capital and capital
expenditure requirements, to fund dividends to shareholders, as well as provide
us with  financing flexibility to take advantage of potential
acquisition opportunities which complement our organic growth strategy.</P>
<P align=justify>The Company, upon approval from its Board of Directors, may
issue or repay long-term debt, issue or repurchase shares, or undertake other
activities as deemed appropriate under the specific circumstances. <B></B></P>
<P align=justify><B>O</B><B>FF</B><B>-B</B><B>ALANCE </B><B>S</B><B>HEET
</B><B>A</B><B>RRANGEMENTS AND </B><B>C</B><B>ONTRACTUAL
</B><B>O</B><B>BLIGATIONS</B><B> </B></P>
<P align=justify>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 14 to
our 2011 audited annual 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 2,
2011, the maximum potential liability under these guarantees was $15.1 million,
of which $5.0 million was for surety bonds and $10.1 million was for corporate
guarantees and standby letters of credit. </P>
<P align=justify>In the normal course of business, we enter into contractual
obligations that will require us to disburse cash over future periods. The
following table sets forth our contractual obligations by period for the
following items as at October 2, 2011, excluding derivative financial
instruments and future interest payments: </P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 8pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD align=left><font size="2">&nbsp; </font> </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="7%"><font size="2">&nbsp; </font> </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="7%"><font size="2">Less than 1 </font> </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="7%"><font size="2">1 to 3 </font> </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="7%"><font size="2">4 to 5 </font> </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="7%"><font size="2">More than 5 </font> </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left><I><font size="2">(in $
      millions)</font></I><font size="2"> </font> </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right
      width="7%"><B><font size="2">Total</font></B><font size="2"> </font> </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right width="7%">
    <font size="2">fiscal
      year </font> </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right width="7%">
    <font size="2">fiscal
      years </font> </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right width="7%">
    <font size="2">fiscal
      years </font> </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right width="7%">
    <font size="2">fiscal
      years </font> </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="2%"
    >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff><font size="2">Long-term debt </font> </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="7%" bgColor=#e6efff><B><font size="2">209.0</font></B><font size="2">
    </font> </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="7%" bgColor=#e6efff><font size="2">- </font> </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="7%" bgColor=#e6efff><font size="2">- </font> </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="7%" bgColor=#e6efff><font size="2">209.0 </font> </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="7%" bgColor=#e6efff><font size="2">- </font> </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left><font size="2">Purchase obligations </font> </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="7%"><B><font size="2">211.6</font></B><font size="2">
    </font> </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="7%"><font size="2">211.6 </font> </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="7%"><font size="2">- </font> </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="7%"><font size="2">- </font> </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="7%"><font size="2">- </font> </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff><font size="2">Operating leases </font> </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="7%" bgColor=#e6efff><B><font size="2">48.0</font></B><font size="2">
    </font> </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="7%" bgColor=#e6efff><font size="2">12.2 </font> </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="7%" bgColor=#e6efff><font size="2">20.7 </font> </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="7%" bgColor=#e6efff><font size="2">8.0 </font> </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="7%" bgColor=#e6efff><font size="2">7.1 </font> </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left><font size="2">Pension liability
    </font>
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="7%"><B><font size="2">5.5</font></B><font size="2"> </font> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="7%">
    <font size="2">5.5 </font>
</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="7%">
    <font size="2">- </font> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="7%">
    <font size="2">- </font> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="7%">
    <font size="2">- </font> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left
      bgColor=#e6efff><font size="2">Total contractual obligations </font> </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right width="7%"
    bgColor=#e6efff><B><font size="2">474.1</font></B><font size="2"> </font> </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right width="7%"
    bgColor=#e6efff><font size="2">229.3 </font> </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right width="7%"
    bgColor=#e6efff><font size="2">20.7 </font> </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right width="7%"
    bgColor=#e6efff><font size="2">217.0 </font> </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right width="7%"
    bgColor=#e6efff><font size="2">7.1 </font> </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD></TR></TABLE>
<P align=justify>The Company has begun the process to fully fund the Gold Toe
Moretz defined benefit pension plan, which was frozen in 2006. This pension plan
was in a deficit position of approximately $21.8 million at the April 15, 2011
acquisition date, which decreased to approximately $5.5 million at the end of
fiscal 2011 after reflecting contributions to the plan of $19.0 million during
the year. Over the next twelve months, we intend to complete the remaining
funding, which is currently estimated at $5.5 million assuming no changes to
current actuarial assumptions or the fair value of plan assets, and to complete
the procedures to terminate and wind up the plan. </P>
<P align=right>GILDAN 2011 REPORT TO SHAREHOLDERS P.19</P>
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    <p align="right"><font size="2">MANAGEMENT&#146;S DISCUSSION AND ANALYSIS</font></td>
  </tr>
</table>
<P align="justify">
<B><br>
D</B><B>ERIVATIVE </B><B>I</B><B>NSTRUMENTS</B><BR>
</P>
<P align="justify">
The Company may periodically use derivative financial instruments to manage risks related to fluctuations in exchange rates, commodity prices and interest rates. Derivative financial instruments are not used for speculative purposes. During the
twelve months ended October 2, 2011, the Company entered into forward foreign exchange contracts and zero-cost collar options in order to minimize the exposure of forecasted cash inflows and outflows in currencies other than the U.S. dollar,
interest rate swap contracts in order to minimize the exposure to potential increases in interest rates, and to a lesser extent, cotton derivative contracts in order to reduce the exposure of forecasted cash outflows related to some of its raw
material consumption needs. Please refer to note 22 to the 2011 audited annual consolidated financial statements for a description of the maturities, carrying values and fair values of the derivative financial instruments outstanding as at October
2, 2011.</P>
<P align="justify">
<B>O</B><B>UTSTANDING </B><B>S</B><B>HARE </B><B>D</B><B>ATA</B><BR>
</P>
<P align="justify">
Our common shares are listed on the New York Stock Exchange (NYSE) and the Toronto Stock Exchange (TSX) under the symbol GIL. As at November 30, 2011 there were 121,410,406 common shares issued and outstanding along with 1,150,000 stock options and
914,390 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 each Treasury RSU grant is contingent on the achievement of performance
conditions that are primarily based on the Company&#146;s average return on assets performance for the period as compared to the S&amp;P/TSX Capped Consumer Discretionary Index, excluding income trusts, or as determined by the Board of
Directors.</P>
<P align="justify">
<B>D</B><B>ECLARATION OF </B><B>D</B><B>IVIDEND</B><BR>
</P>
<P align="justify">
In December 2010, the Board of Directors approved the introduction of a quarterly cash dividend. During fiscal 2011, the Company has paid an aggregate of &#36;27.5 million of dividends. On November 29, 2011, the Board of Directors declared a
quarterly dividend of &#36;0.075 per share for an expected aggregate payment of &#36;9.1 million which will be paid on January 6, 2012 on all of the issued and outstanding common shares of the Company, rateably and proportionately to the holders of
record on December 15, 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 present and/or future
regulatory and legal restrictions. There can be no assurance as to the declaration of future quarterly cash dividends. Although the Company&#146;s revolving long-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 the Company&#146;s dividend policy.  </P>
<P align="justify">
<B>N</B><B>ORMAL </B><B>C</B><B>OURSE </B><B>I</B><B>SSUER </B><B>B</B><B>ID</B><BR>
</P>
<P align="justify">
In December 2010, the Company 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;). During fiscal 2011, the Company
repurchased and cancelled a total of 0.4 million common shares for a total cost of &#36;10.5 million. Of the total cost, &#36;0.3 million was charged to share capital and &#36;10.2 million was charged to retained earnings as there was no amount of
contributed surplus attributable to these common shares. On December 2, 2011 the TSX approved the renewal of the Company&#146;s NCIB to purchase up to one million common shares, representing approximately 0.8% of its issued and outstanding common
shares, in accordance with the requirements of the TSX. Common shares purchased under the NCIB will be cancelled. <B> </B></P>
<P align="right">
GILDAN 2011 REPORT TO SHAREHOLDERS P.20</P>

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    <td width="50%">
    <p align="right"><font size="2">MANAGEMENT&#146;S DISCUSSION AND ANALYSIS</font></td>
  </tr>
</table>
<P align="justify">
<B><br>
<font size="3">LEGAL PROCEEDINGS</font></B></P>
<P align="justify">
<B>S</B><B>ECURITIES </B><B>C</B><B>LASS </B><B>A</B><B>CTIONS</B><B> </B><BR>
</P>
<P align="justify">
The Company and certain of its senior officers were named as defendants in a number of class action lawsuits filed in the United States District Court for the Southern District of New York, which were subsequently consolidated, alleging claims under
the U.S. securities laws, as well as in class action lawsuits filed in the Ontario Superior Court of Justice and in the Quebec Superior Court. Each of these U.S. and Canadian lawsuits alleged, among other things, that the defendants misrepresented
the Company&#146;s financial condition and its financial prospects in its earnings guidance concerning the 2008 fiscal year, which guidance was subsequently revised on April 29, 2008.</P>
<P align="justify">
On August 3, 2010, the Company announced that it had entered into an agreement to settle all claims raised in these class action lawsuits, subject to final approval from the courts, on behalf of all persons who acquired the Company&#146;s common
shares between August 2, 2007 and April 29, 2008 (the &#147;Class Members&#148;). Final court approval of the settlement was obtained from each of the courts in February and March 2011 and all of the actions have been dismissed on terms including
releases from Class Members of the claims against the Company and the named senior officers. The settlement agreement provided for a total settlement amount of &#36;22.5 million, which has been entirely funded by the Company&#146;s insurers.
Therefore no provision has been recorded in the consolidated financial statements and no amounts have been disbursed by the Company in respect of the settlement. </P>
<P align="justify">
<B><font size="3">OUTLOOK</font></B></P>
<P align="justify">
A discussion of management&#146;s expectations as to our outlook for fiscal 2012 is contained in our fourth quarter earnings results press release dated December 1, 2011 under the section entitled &#147;Outlook&#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>. </P>
<P align="justify">
<B><font size="3">FINANCIAL RISK MANAGEMENT</font></B></P>
<P align="justify">
This section of the MD&amp;A provides disclosures relating to the nature and extent of the Company&#146;s exposure to risks arising from financial instruments, including credit risk, liquidity risk, foreign currency risk and interest rate risk, 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 22 to the 2011 audited annual consolidated financial statements (&#147;Financial
Instruments&#148;), are designed to meet the requirements of the CICA Handbook Section 3862, <I>Financial Instruments-Disclosures</I>, and are therefore incorporated into, and are an integral part of, the 2011 audited annual consolidated financial
statements.</P>
<P align="justify">
The Company may periodically use derivative financial instruments to manage risks related to fluctuations in foreign exchange rates, commodity prices and interest rates. Derivative financial instruments are not used for trading purposes. </P>
<P align="justify">
<B>C</B><B>REDIT </B><B>R</B><B>ISK</B><BR>
</P>
<P align="justify">
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, zero-cost collar options and interest rate swaps, which it manages by dealing only with highly-rated North American and European financial institutions. Our trade receivables
and credit exposure fluctuate throughout the year based on the seasonality of our sales and other factors. The Company&#146;s average trade receivables and credit exposure during an interim reporting period may be significantly higher than the
balance at the end of that reporting period. </P>
<P align="right">
GILDAN 2011 REPORT TO SHAREHOLDERS P.21</P>

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    <p align="right"><font size="2">MANAGEMENT&#146;S DISCUSSION AND ANALYSIS</font></td>
  </tr>
</table>
<P align="justify">
<br>
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 2, 2011, the Company&#146;s ten largest trade
debtors accounted for 52% of trade accounts receivable, of which one wholesale customer accounted for 10% and one mass-market retailer accounted for 13%. Of the Company&#146;s top ten trade debtors, six are wholesale distributors, four are
mass-market retailers and all ten 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. </P>
<P align="justify">
Most sales are invoiced with payment terms of between 30 to 60 days. In accordance with industry practice, sales to wholesale distributors of certain seasonal products, primarily in the second half of the fiscal year, are invoiced with extended
payment terms, generally not exceeding six months. From time-to-time, the Company may initiate other special incentive programs with extended payment terms. </P>
<P align="justify">
Most of the Company&#146;s customers have been transacting with the Company or its subsidiaries for several 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. </P>
<P align="justify">
The Company&#146;s extension of credit to customers involves considerable judgment and is based on an evaluation of each customer&#146;s financial condition and payment history. The Company has established various internal controls designed to
mitigate credit risk, including a dedicated credit function which recommends customer credit limits and payment terms that are reviewed and approved on a quarterly basis by senior management at the Company&#146;s 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.</P>
<P align="justify">The Company&#146;s exposure to credit risk for trade receivables by geographic area and type of customer was as follows as: <br>
</P>
<P align="right">
GILDAN 2011 REPORT TO SHAREHOLDERS P.22</P>

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  <tr>
    <td width="50%">

<IMG src="mdax2x1.jpg" border=0 width="96" height="21"> </td>
    <td width="50%">
    <p align="right"><font size="2">MANAGEMENT&#146;S DISCUSSION AND ANALYSIS</font></td>
  </tr>
</table>
&nbsp;<br>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left><I>(in $
      millions)</I> </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right
      width="12%"><B>October 2, 2011</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right
      width="12%">October 3, 2010 </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="12%">&nbsp; </TD>
    <TD width="2%" >&nbsp;</TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="12%">&nbsp; </TD>
    <TD width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>United States </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff><B>163.3</B> </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff>118.4 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>Europe </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%"><B>14.0</B> </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%">13.4 </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Canada </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff><B>8.2</B> </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff>6.4 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>Other regions </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="12%"><B>6.1</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="12%">7.5
    </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left
      bgColor=#e6efff>Total trade receivables </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right width="12%"
    bgColor=#e6efff><B>191.6</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right width="12%"
    bgColor=#e6efff>145.7 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR>
    <TD bgColor=#ffffff>&nbsp; </TD>
    <TD width="1%"  bgColor=#ffffff>&nbsp;</TD>
    <TD width="12%" bgColor=#ffffff>&nbsp; </TD>
    <TD width="2%"  bgColor=#ffffff>&nbsp;</TD>
    <TD width="1%"  bgColor=#ffffff>&nbsp;</TD>
    <TD width="12%" bgColor=#ffffff>&nbsp; </TD>
    <TD width="2%"  bgColor=#ffffff>&nbsp;</TD></TR>
  <TR>
    <TD bgColor=#ffffff>&nbsp; </TD>
    <TD width="1%"  bgColor=#ffffff>&nbsp;</TD>
    <TD width="12%" bgColor=#ffffff>&nbsp; </TD>
    <TD width="2%"  bgColor=#ffffff>&nbsp;</TD>
    <TD width="1%"  bgColor=#ffffff>&nbsp;</TD>
    <TD width="12%" bgColor=#ffffff>&nbsp; </TD>
    <TD width="2%"  bgColor=#ffffff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left
      bgColor=#ffffff><I>(in $ millions)</I> </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
     bgColor=#ffffff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right width="12%"
    bgColor=#ffffff><B>October 2, 2011</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="2%"
     bgColor=#ffffff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
     bgColor=#ffffff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right width="12%"
    bgColor=#ffffff>October 3, 2010 </TD>
    <TD align=left width="2%"  bgColor=#ffffff>&nbsp;</TD></TR>
  <TR>
    <TD bgColor=#ffffff>&nbsp; </TD>
    <TD width="1%"  bgColor=#ffffff>&nbsp;</TD>
    <TD width="12%" bgColor=#ffffff>&nbsp; </TD>
    <TD width="2%"  bgColor=#ffffff>&nbsp;</TD>
    <TD width="1%"  bgColor=#ffffff>&nbsp;</TD>
    <TD width="12%" bgColor=#ffffff>&nbsp; </TD>
    <TD width="2%"  bgColor=#ffffff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#E6EFFF>Distributors and other customers in the
      screenprint channel </TD>
    <TD align=left width="1%"  bgColor=#E6EFFF>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#E6EFFF><B>118.0</B> </TD>
    <TD align=left width="2%"  bgColor=#E6EFFF>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#E6EFFF>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#E6EFFF>96.3 </TD>
    <TD align=left width="2%"  bgColor=#ffffff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      bgColor=#ffffff>Mass-market and regional retailers </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#ffffff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="12%"
    bgColor=#ffffff><B>73.6</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#ffffff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#ffffff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="12%"
    bgColor=#ffffff>49.4 </TD>
    <TD align=left width="2%"  bgColor=#ffffff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left
      bgColor=#E6EFFF>Total trade receivables </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
     bgColor=#E6EFFF>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right width="12%"
    bgColor=#E6EFFF><B>191.6</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="2%"
     bgColor=#E6EFFF>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
     bgColor=#E6EFFF>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right width="12%"
    bgColor=#E6EFFF>145.7 </TD>
    <TD align=left width="2%"  bgColor=#ffffff>&nbsp;</TD></TR>
  <TR>
    <TD bgColor=#ffffff>&nbsp; </TD>
    <TD width="1%"  bgColor=#ffffff>&nbsp;</TD>
    <TD width="12%" bgColor=#ffffff>&nbsp; </TD>
    <TD width="2%"  bgColor=#ffffff>&nbsp;</TD>
    <TD width="1%"  bgColor=#ffffff>&nbsp;</TD>
    <TD width="12%" bgColor=#ffffff>&nbsp; </TD>
    <TD width="2%"  bgColor=#ffffff>&nbsp;</TD></TR>
  <TR>
    <TD bgColor=#ffffff>&nbsp; </TD>
    <TD width="1%"  bgColor=#ffffff>&nbsp;</TD>
    <TD width="12%" bgColor=#ffffff>&nbsp; </TD>
    <TD width="2%"  bgColor=#ffffff>&nbsp;</TD>
    <TD width="1%"  bgColor=#ffffff>&nbsp;</TD>
    <TD width="12%" bgColor=#ffffff>&nbsp; </TD>
    <TD width="2%"  bgColor=#ffffff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#ffffff>The aging of trade receivable balances was
      as follows as at: </TD>
    <TD align=left width="1%"  bgColor=#ffffff>&nbsp;</TD>
    <TD align=left width="12%" bgColor=#ffffff>&nbsp; </TD>
    <TD align=left width="2%"  bgColor=#ffffff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#ffffff>&nbsp;</TD>
    <TD align=left width="12%" bgColor=#ffffff>&nbsp; </TD>
    <TD align=left width="2%"  bgColor=#ffffff>&nbsp;</TD></TR>
  <TR>
    <TD bgColor=#ffffff>&nbsp; </TD>
    <TD width="1%"  bgColor=#ffffff>&nbsp;</TD>
    <TD width="12%" bgColor=#ffffff>&nbsp; </TD>
    <TD width="2%"  bgColor=#ffffff>&nbsp;</TD>
    <TD width="1%"  bgColor=#ffffff>&nbsp;</TD>
    <TD width="12%" bgColor=#ffffff>&nbsp; </TD>
    <TD width="2%"  bgColor=#ffffff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left
      bgColor=#ffffff><I>(in $ millions)</I> </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
     bgColor=#ffffff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right width="12%"
    bgColor=#ffffff><B>October 2, 2011</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="2%"
     bgColor=#ffffff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
     bgColor=#ffffff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right width="12%"
    bgColor=#ffffff>October 3, 2010 </TD>
    <TD align=left width="2%"  bgColor=#ffffff>&nbsp;</TD></TR>
  <TR>
    <TD bgColor=#ffffff>&nbsp; </TD>
    <TD width="1%"  bgColor=#ffffff>&nbsp;</TD>
    <TD width="12%" bgColor=#ffffff>&nbsp; </TD>
    <TD width="2%"  bgColor=#ffffff>&nbsp;</TD>
    <TD width="1%"  bgColor=#ffffff>&nbsp;</TD>
    <TD width="12%" bgColor=#ffffff>&nbsp; </TD>
    <TD width="2%"  bgColor=#ffffff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Not past due </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff><B>166.9</B> </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff>129.1 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>Past due 0-30 days </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%"><B>21.0</B> </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%">17.5 </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Past due 31-60 days </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff><B>2.8</B> </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff>3.5 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>Past due 61-120 days </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%"><B>1.4</B> </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%">1.2 </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      bgColor=#e6efff>Past due over 121 days </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="12%"
    bgColor=#e6efff><B>3.6</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="12%"
    bgColor=#e6efff>1.4 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>Trade receivables </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%"><B>195.7</B> </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%">152.7 </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      bgColor=#e6efff>Less allowance for doubtful accounts </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="12%"
    bgColor=#e6efff><B>(4.1</B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff><B>)</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="12%"
    bgColor=#e6efff>(7.0</TD>
    <TD align=left width="2%"  bgColor=#e6efff>) </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left>Total trade
      receivables </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right
      width="12%"><B>191.6</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right width="12%">145.7
    </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR></TABLE>
<P align=justify>The movement in the allowance for doubtful accounts in respect
of trade receivables was as follows:</P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left><I>(in $
      millions)</I> </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right
      width="12%"><B>October 2, 2011</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right
      width="12%">October 3, 2010 </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Balance, beginning of year </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff><B>7.0</B> </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff>6.0 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>Bad debt expense </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%"><B>0.6</B> </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%">2.4 </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Write-off of accounts receivable </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff><B>(3.8</B></TD>
    <TD align=left width="2%"  bgColor=#e6efff><B>)</B> </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff>(1.4</TD>
    <TD align=left width="2%"  bgColor=#e6efff>) </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>Increase due to
      the acquisition of Gold Toe Moretz </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="12%"><B>0.3</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="12%">- </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left
      bgColor=#e6efff>Balance, end of year </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right width="12%"
    bgColor=#e6efff><B>4.1</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right width="12%"
    bgColor=#e6efff>7.0 </TD>
    <TD align=left width="2%"
  bgColor=#e6efff>&nbsp;</TD></TR></TABLE>
<P align=justify><B>L</B><B>IQUIDITY </B><B>R</B><B>ISK</B><BR></P>
<P align=justify>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
long-term credit facility as well as our ability to access capital markets, or
the failure of a financial institution participating in our revolving long-term
credit facility, or an adverse perception in capital markets of our financial
condition or prospects, could have a material impact on our financing
capability. In addition, our access to financing at reasonable interest rates
could become influenced by the economic and credit market environment.</P>
<P align=right>GILDAN 2011 REPORT TO SHAREHOLDERS P.23</P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>


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<table border="0" cellpadding="0" cellspacing="0" style="border-collapse: collapse" bordercolor="#111111" width="100%">
  <tr>
    <td width="50%">

<IMG src="mdax2x1.jpg" border=0 width="96" height="21"> </td>
    <td width="50%">
    <p align="right"><font size="2">MANAGEMENT&#146;S DISCUSSION AND ANALYSIS</font></td>
  </tr>
</table>
<P align="justify">
<BR>
We manage liquidity risk through the management of our capital
structure and financial leverage, as outlined in note 23 to the 2011 audited
annual 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. </P>
<P align="justify">The Company has a committed revolving long-term credit facility for a maximum of &#36;800 million which expires in June 2016. The Company&#146;s revolving long-term credit facility is subject to various financial covenants including a net debt to
  trailing twelve months EBITDA ratio and an interest coverage ratio. The Company was in compliance with all covenants as at October 2, 2011. This facility is unsecured and amounts drawn bear interest at a variable banker&#146;s acceptance or U.S.
  LIBOR-based interest rate plus a spread ranging from 125 to 200 basis points. As at October 2, 2011, &#36;209.0 million (October 3, 2010 &#150; nil) was drawn under this facility bearing a combined effective interest rate for the period of 2.3%,
  including the impact of interest rate swaps. In addition, an amount of &#36;5.8 million (October 3, 2010 - &#36;12.7 million) has been committed against this facility to cover various letters of credit as described in note 14 to the 2011 audited
  consolidated financial statements.</P>
<P align="justify">
<B>F</B><B>OREIGN </B><B>C</B><B>URRENCY </B><B>R</B><B>ISK</B><BR>
</P>
<P align="justify">
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 comprised of the portion of the
Company&#146;s business transactions denominated in currencies other than U.S. dollars, primarily for sales revenues and distribution expenses for customers outside of the United States, and head office expenses in Canada. In addition, the Company
is exposed to foreign currency fluctuations related to purchases of finished goods by our Gold Toe Moretz subsidiary from foreign suppliers. 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, the Mexican peso, and the Chinese Renminbi exchange rates. The Company also incurs a portion of its manufacturing costs in foreign currencies, primarily payroll costs paid in Honduran Lempiras.
Although the value of the Lempira has been fixed relative to the U.S. dollar since 2005, the Honduran government adopted a floating currency system during fiscal 2011 which allows the Lempira to float against the U.S. dollar within a restricted
range. 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, cost of sales and
SG&amp;A expenses in its consolidated statement of earnings, both on a period-to-period basis and compared with operating budgets and forecasts. Additional earnings variability arises from the translation of monetary assets and liabilities
denominated in currencies other than the U.S. dollar at the rates of exchange at each balance sheet date, the impact of which is reported as a foreign exchange gain or loss and included in financial expense (income) in the statement of earnings.<B>
</B></P>
<P align="justify">
The Company&#146;s objective in managing its foreign currency risk is to minimize its net exposures to foreign currency cash flows, by transacting with third parties in U.S. dollars to the maximum extent possible and practical, and holding cash and
cash equivalents and incurring borrowings in U.S. dollars. The Company monitors and forecasts the values of net foreign currency cash flows and balance sheet exposures, and from time-to-time will authorize the use of derivative financial instruments
such as forward foreign exchange contracts, and zero-cost collar options to 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 2011, the Company entered into forward foreign exchange contracts as well as zero-cost collar options in order to mitigate the exposure of forecasted cash inflows and outflows in currencies other than the U.S. dollar. The Company had
forward foreign exchange contracts and zero-cost collar options outstanding as at October 2, 2011 consisting primarily of contracts to sell or buy Euros, British pounds, Australian dollars, Canadian dollars, and Mexican pesos in exchange for U.S.
dollars. These outstanding contracts and other foreign exchange contracts that were settled during fiscal 2011 were designated as cash flow hedges and qualified for hedge accounting. We refer the reader to note 17 and note 22 to the 2011 audited
annual consolidated financial statements for details of these financial derivative contracts and the impact of applying hedge accounting.</P>
<P align="right">
GILDAN 2011 REPORT TO SHAREHOLDERS P.24</P>

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

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<table border="0" cellpadding="0" cellspacing="0" style="border-collapse: collapse" bordercolor="#111111" width="100%">
  <tr>
    <td width="50%">

<IMG src="mdax2x1.jpg" border=0 width="96" height="21"> </td>
    <td width="50%">
    <p align="right"><font size="2">MANAGEMENT&#146;S DISCUSSION AND ANALYSIS</font></td>
  </tr>
</table>
<P align=justify><BR></P>
<P align=justify>The following tables provide an indication of the Company&#146;s
significant foreign currency exposures on the consolidated balance sheet as at
October 2, 2011 arising from financial instruments: </P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 8pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD align=left><font size="2">&nbsp; </font> </TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=left width="7%"><font size="2">&nbsp; </font> </TD>
    <TD align=left width="2%">&nbsp;</TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=left width="7%"><font size="2">&nbsp; </font> </TD>
    <TD align=left width="2%">&nbsp;</TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=left width="7%"><font size="2">&nbsp; </font> </TD>
    <TD align=left width="2%">&nbsp;</TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="17%" colSpan=4><B><font size="2">October 2, 2011</font></B><font size="2">
    </font> </TD>
    <TD align=left width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left><I><font size="2">(in U.S. $
      millions)</font></I><font size="2"> </font> </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right
      width="7%"><B><font size="2">CAD</font></B><font size="2"> </font> </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left
    width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right
      width="7%"><B><font size="2">EUR</font></B><font size="2"> </font> </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left
    width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right
      width="7%"><B><font size="2">GBP</font></B><font size="2"> </font> </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left
    width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right
      width="7%"><B><font size="2">MXN</font></B><font size="2"> </font> </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left
    width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right
      width="7%"><B><font size="2">AUD</font></B><font size="2"> </font> </TD>
    <TD align=left width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff><font size="2">Cash and cash equivalents
    </font> </TD>
    <TD align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="7%" bgColor=#e6efff valign="bottom"><font size="2">1.3 </font> </TD>
    <TD align=left width="2%" bgColor=#e6efff valign="bottom">&nbsp;</TD>
    <TD align=left width="1%" bgColor=#e6efff valign="bottom">&nbsp;</TD>
    <TD align=right width="7%" bgColor=#e6efff valign="bottom"><font size="2">0.5 </font> </TD>
    <TD align=left width="2%" bgColor=#e6efff valign="bottom">&nbsp;</TD>
    <TD align=left width="1%" bgColor=#e6efff valign="bottom">&nbsp;</TD>
    <TD align=right width="7%" bgColor=#e6efff valign="bottom"><font size="2">1.8 </font> </TD>
    <TD align=left width="2%" bgColor=#e6efff valign="bottom">&nbsp;</TD>
    <TD align=left width="1%" bgColor=#e6efff valign="bottom">&nbsp;</TD>
    <TD align=right width="7%" bgColor=#e6efff valign="bottom"><font size="2">0.5 </font> </TD>
    <TD align=left width="2%" bgColor=#e6efff valign="bottom">&nbsp;</TD>
    <TD align=left width="1%" bgColor=#e6efff valign="bottom">&nbsp;</TD>
    <TD align=right width="7%" bgColor=#e6efff valign="bottom"><font size="2">1.0 </font> </TD>
    <TD align=left width="2%" bgColor=#e6efff valign="bottom">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left><font size="2">Trade accounts receivable </font> </TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="7%" valign="bottom"><font size="2">7.8 </font> </TD>
    <TD align=left width="2%" valign="bottom">&nbsp;</TD>
    <TD align=left width="1%" valign="bottom">&nbsp;</TD>
    <TD align=right width="7%" valign="bottom"><font size="2">5.8 </font> </TD>
    <TD align=left width="2%" valign="bottom">&nbsp;</TD>
    <TD align=left width="1%" valign="bottom">&nbsp;</TD>
    <TD align=right width="7%" valign="bottom"><font size="2">3.2 </font> </TD>
    <TD align=left width="2%" valign="bottom">&nbsp;</TD>
    <TD align=left width="1%" valign="bottom">&nbsp;</TD>
    <TD align=right width="7%" valign="bottom"><font size="2">5.8 </font> </TD>
    <TD align=left width="2%" valign="bottom">&nbsp;</TD>
    <TD align=left width="1%" valign="bottom">&nbsp;</TD>
    <TD align=right width="7%" valign="bottom"><font size="2">3.4 </font> </TD>
    <TD align=left width="2%" valign="bottom">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff><font size="2">Foreign exchange contracts (derivative
      asset) </font> </TD>
    <TD align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="7%" bgColor=#e6efff valign="bottom"><font size="2">1.4 </font> </TD>
    <TD align=left width="2%" bgColor=#e6efff valign="bottom">&nbsp;</TD>
    <TD align=left width="1%" bgColor=#e6efff valign="bottom">&nbsp;</TD>
    <TD align=right width="7%" bgColor=#e6efff valign="bottom"><font size="2">0.2 </font> </TD>
    <TD align=left width="2%" bgColor=#e6efff valign="bottom">&nbsp;</TD>
    <TD align=left width="1%" bgColor=#e6efff valign="bottom">&nbsp;</TD>
    <TD align=right width="7%" bgColor=#e6efff valign="bottom"><font size="2">0.3 </font> </TD>
    <TD align=left width="2%" bgColor=#e6efff valign="bottom">&nbsp;</TD>
    <TD align=left width="1%" bgColor=#e6efff valign="bottom">&nbsp;</TD>
    <TD align=right width="7%" bgColor=#e6efff valign="bottom"><font size="2">1.3 </font> </TD>
    <TD align=left width="2%" bgColor=#e6efff valign="bottom">&nbsp;</TD>
    <TD align=left width="1%" bgColor=#e6efff valign="bottom">&nbsp;</TD>
    <TD align=right width="7%" bgColor=#e6efff valign="bottom"><font size="2">0.1 </font> </TD>
    <TD align=left width="2%" bgColor=#e6efff valign="bottom">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left><font size="2">Accounts payable and accrued liabilities
    </font> </TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="7%" valign="bottom"><font size="2">(30.0</TD>
    <TD align=left width="2%" valign="bottom">) </font> </TD>
    <TD align=left width="1%" valign="bottom">&nbsp;</TD>
    <TD align=right width="7%" valign="bottom"><font size="2">(7.3</TD>
    <TD align=left width="2%" valign="bottom">) </font> </TD>
    <TD align=left width="1%" valign="bottom">&nbsp;</TD>
    <TD align=right width="7%" valign="bottom"><font size="2">(0.2</TD>
    <TD align=left width="2%" valign="bottom">) </font> </TD>
    <TD align=left width="1%" valign="bottom">&nbsp;</TD>
    <TD align=right width="7%" valign="bottom"><font size="2">- </font> </TD>
    <TD align=left width="2%" valign="bottom">&nbsp;</TD>
    <TD align=left width="1%" valign="bottom">&nbsp;</TD>
    <TD align=right width="7%" valign="bottom"><font size="2">- </font> </TD>
    <TD align=left width="2%" valign="bottom">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left
      bgColor=#e6efff><font size="2">Foreign exchange contracts (derivative liability)
    </font> </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right width="7%"
    bgColor=#e6efff valign="bottom"><font size="2">- </font> </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="2%"
    bgColor=#e6efff valign="bottom">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
    bgColor=#e6efff valign="bottom">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right width="7%"
    bgColor=#e6efff valign="bottom"><font size="2">(0.2</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="2%"
    bgColor=#e6efff valign="bottom">) </font> </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
    bgColor=#e6efff valign="bottom">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right width="7%"
    bgColor=#e6efff valign="bottom"><font size="2">(0.1</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="2%"
    bgColor=#e6efff valign="bottom">) </font> </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
    bgColor=#e6efff valign="bottom">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right width="7%"
    bgColor=#e6efff valign="bottom"><font size="2">- </font> </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="2%"
    bgColor=#e6efff valign="bottom">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
    bgColor=#e6efff valign="bottom">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right width="7%"
    bgColor=#e6efff valign="bottom"><font size="2">(0.1</TD>
    <TD align=left width="2%" bgColor=#e6efff valign="middle">) </font> </TD></TR></TABLE>
<P align=justify>Based on the Company&#146;s foreign currency exposures arising from
financial instruments noted above, varying the foreign exchange rates to reflect
a 5 percent strengthening of the U.S. dollar would have increased (decreased)
net earnings and other comprehensive income as follows, assuming that all other
variables remained constant: </P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 8pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD align=left><font size="2">&nbsp; </font> </TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=left width="7%"><font size="2">&nbsp; </font> </TD>
    <TD align=left width="2%">&nbsp;</TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="37%" colSpan=10><B><font size="2">For the year ended October 2,
      2011</font></B><font size="2"> </font> </TD>
    <TD align=left width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left><I><font size="2">(in U.S. $
      millions)</font></I><font size="2"> </font> </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right
      width="7%"><B><font size="2">CAD</font></B><font size="2"> </font> </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left
    width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right
      width="7%"><B><font size="2">EUR</font></B><font size="2"> </font> </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left
    width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right
      width="7%"><B><font size="2">GBP</font></B><font size="2"> </font> </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left
    width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right
      width="7%"><B><font size="2">MXN</font></B><font size="2"> </font> </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left
    width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right
      width="7%"><B><font size="2">AUD</font></B><font size="2"> </font> </TD>
    <TD align=left width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff><font size="2">Impact on net earnings before income taxes
    </font>
    </TD>
    <TD align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="7%" bgColor=#e6efff valign="bottom"><font size="2">1.0 </font> </TD>
    <TD align=left width="2%" bgColor=#e6efff valign="bottom">&nbsp;</TD>
    <TD align=left width="1%" bgColor=#e6efff valign="bottom">&nbsp;</TD>
    <TD align=right width="7%" bgColor=#e6efff valign="bottom"><font size="2">- </font> </TD>
    <TD align=left width="2%" bgColor=#e6efff valign="bottom">&nbsp;</TD>
    <TD align=left width="1%" bgColor=#e6efff valign="bottom">&nbsp;</TD>
    <TD align=right width="7%" bgColor=#e6efff valign="bottom"><font size="2">(0.2</TD>
    <TD align=left width="2%" bgColor=#e6efff valign="bottom">) </font> </TD>
    <TD align=left width="1%" bgColor=#e6efff valign="bottom">&nbsp;</TD>
    <TD align=right width="7%" bgColor=#e6efff valign="bottom"><font size="2">(0.3</font></TD>
    <TD align=left width="2%" bgColor=#e6efff valign="bottom">) </TD>
    <TD align=left width="1%" bgColor=#e6efff valign="bottom">&nbsp;</TD>
    <TD align=right width="7%" bgColor=#e6efff valign="bottom"><font size="2">(0.2</font></TD>
    <TD align=left width="2%" bgColor=#e6efff valign="bottom">) </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left><font size="2">Impact on other
      comprehensive income before income taxes </font> </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right width="7%" valign="bottom">
    <font size="2">0.3 </font>
</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left
    width="2%" valign="bottom">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left
    width="1%" valign="bottom">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right width="7%" valign="bottom">
    <font size="2">0.2 </font>
</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left
    width="2%" valign="bottom">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left
    width="1%" valign="bottom">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right width="7%" valign="bottom">
    <font size="2">0.3 </font>
</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left
    width="2%" valign="bottom">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left
    width="1%" valign="bottom">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right width="7%" valign="bottom">
    <font size="2">0.4 </font>
</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left
    width="2%" valign="bottom">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left
    width="1%" valign="bottom">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right width="7%" valign="bottom">
    <font size="2">0.1 </font>
</TD>
    <TD align=left width="2%" valign="bottom">&nbsp;</TD></TR></TABLE>
<P align=justify>An assumed 5 percent weakening of the U.S. dollar during the
year ended October 2, 2011 would have had an equal but opposite effect on the
above currencies to the amounts shown above, on the basis that all other
variables remain constant. </P>
<P align=justify><B>C</B><B>OMMODITY </B><B>R</B><B>ISK FOR
</B><B>C</B><B>OTTON</B><BR></P>
<P align=justify>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, 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 million, based on
current production levels.</P>
<P align=justify>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 2011 and 2010, the Company had no cotton related derivative
financial instruments outstanding.</P>
<P align=right>GILDAN 2011 REPORT TO SHAREHOLDERS P.25</P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
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<table border="0" cellpadding="0" cellspacing="0" style="border-collapse: collapse" bordercolor="#111111" width="100%">
  <tr>
    <td width="50%">

<IMG src="mdax2x1.jpg" border=0 width="96" height="21"> </td>
    <td width="50%">
    <p align="right"><font size="2">MANAGEMENT&#146;S DISCUSSION AND ANALYSIS</font></td>
  </tr>
</table>
<P align=justify><BR>
  <b>I</b><b>NTEREST </b><b>R</b><b>ATE </b><b>R</b><b>ISK</b><br>
</P>
<p align=justify>The Company&#146;s interest rate risk is primarily related to the
  Company&#146;s revolving long-term credit facility, for which amounts drawn are
  primarily subject to LIBOR rates in effect at the time of borrowing, plus a
  margin. Although LIBOR-based borrowings under the credit facility can be fixed
  for periods of up to six months, the Company generally fixes rates for periods
  of one to three months. The interest rates on amounts drawn on this facility and on any future borrowings will vary and are
  unpredictable. Increases in short term interest rates and increases in interest
  rates on new debt issues may result in a material increase in interest charges. </p>
<P align=justify>The Company has the ability to enter into derivative financial
  instruments that would effectively fix its cost of current and future borrowings
  for an extended period of time. During fiscal 2011, the Company entered into a
  series of interest rate swaps to fix the variable interest rates on a designated
  portion of the borrowings under the revolving long-term credit facility. As at
  October 2, 2011, the interest rate swap contracts were designated as cash flows
  hedges and qualified for hedge accounting. At the end of fiscal 2010, the
  Company had no interest rate swaps outstanding. We refer the reader to note 17
  and note 22 to the 2011 audited annual consolidated financial statements for
  details of the interest rate swap contracts and the impact of applying hedge
  accounting.</P>
<P align=justify>Based on the value of interest-bearing financial instruments
during the year ended October 2, 2011, an assumed 0.5 percentage point increase
in interest rates during such period would have increased (decreased) net
earnings and other comprehensive income as follows: </P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left><I>(in $
      millions)</I> </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="12%">&nbsp;
    </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="2%"
    >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: medium none #000000; " align=left
      bgColor=#e6efff>Impact on net earnings before income taxes </TD>
    <TD style="BORDER-BOTTOM: medium none #000000; " align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: medium none #000000; " align=right width="12%"
    bgColor=#e6efff>(0.4</TD>
    <TD style="BORDER-BOTTOM: medium none #000000; " align=left width="2%"
     bgColor=#e6efff>) </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-top-style:none; border-top-width:medium" align=left>Impact on other
      comprehensive income before income taxes </TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-top-style:none; border-top-width:medium" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-top-style:none; border-top-width:medium" align=right width="12%">2.8
    </TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-top-style:none; border-top-width:medium" align=left width="2%"
    >&nbsp;</TD></TR></TABLE>
<P align=justify>An assumed 0.5 percentage point decrease in interest rates
would have had an equal but opposite effect on net earnings and other
comprehensive income to the amounts shown above.</P>
<P align=justify><B><font size="3">CRITICAL ACCOUNTING ESTIMATES </font> </B></P>
<P align=justify>Our significant accounting policies are described in note 1 to
our 2011 audited annual consolidated financial statements. As required under
Canadian GAAP, we make estimates when we account for and report assets,
liabilities, revenues and expenses, and disclose contingent liabilities and fair
values of financial instruments in our financial statements. These estimates
involve varying degrees of judgment and uncertainty, and are based on a number
of factors, including historical experience, current events and industry trends,
information available from outside sources, our business plans, and other
assumptions that we believe are reasonable based on information available at the
time they are made. Given the inherent uncertainty involved in making estimates,
actual results reported in future periods could differ materially from these
estimates.</P>
<P align=justify>We consider the estimates described in this section to be an
important part of understanding our financial statements because they require
management to make assumptions and judgments about matters that are highly
uncertain at the time the estimate was made, and changes to these estimates
could have a material impact on our financial statements. </P>
<P align=justify><B>Allowance for Doubtful Accounts</B><BR></P>
<P align=justify>Trade accounts receivable consists of amounts due from our
normal business activities. We maintain an allowance for doubtful accounts to
reflect expected credit losses. We provide for bad debts based on collection
history and specific risks identified on a customer-by-customer basis. A
considerable amount of judgment is required to assess the ultimate realization
of accounts receivable and the credit-worthiness of each customer. Furthermore,
these judgments must be continuously evaluated and updated. Uncollected accounts
are written off through the allowance for doubtful accounts. We are not able to
predict changes in the financial condition of our customers, and if
circumstances related to our customers&#146; financial condition deteriorate, our
estimates of the recoverability of our trade receivables could be materially
affected and we may be required to record additional allowances. Alternatively,
if we provide more allowances than we need, we may reverse a portion of such
provisions in future periods based on our actual collection experience. </P>
<P align=right>GILDAN 2011 REPORT TO SHAREHOLDERS P.26</P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>


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<table border="0" cellpadding="0" cellspacing="0" style="border-collapse: collapse" bordercolor="#111111" width="100%">
  <tr>
    <td width="50%">

<IMG src="mdax2x1.jpg" border=0 width="96" height="21"> </td>
    <td width="50%">
    <p align="right"><font size="2">MANAGEMENT&#146;S DISCUSSION AND ANALYSIS</font></td>
  </tr>
</table>
<P align="justify">
<B>Inventory Valuation</B><BR>
</P>
<P align="justify">
Our inventory is carried at the lower of First-In-First-Out cost and net realizable value. We regularly review inventory quantities on hand and record a provision for those inventories no longer deemed to be fully recoverable. The cost of
inventories may no longer be recoverable if those inventories are slow moving, damaged, if they have become obsolete, or if their selling prices or estimated forecast of product demand decline. If actual market conditions are less favorable than
previously projected, or if liquidation of the inventory no longer deemed to be fully recoverable is more difficult than anticipated, additional provisions may be required. </P>
<P align="justify">
<B>Sales Promotional Programs</B><BR>
</P>
<P align="justify">
In the normal course of business, certain incentives are granted to our customers including discounts and rebates. At the time of sale, estimates are made for customer price discounts and rebates based on the terms of existing programs. Accruals
required for new programs, which relate to prior sales, are recorded at the time the new program is introduced. Sales are recorded net of these program costs and a provision for estimated sales returns, which is based on historical experience,
current trends and other known factors. If actual price discounts, rebates or returns differ from estimates, significant adjustments to net sales could be required in future periods. </P>
<P align="justify">
<B>Recoverability of Long-Lived Assets</B><BR>
</P>
<P align="justify">
Our long-lived assets are comprised of property, plant and equipment and identifiable intangible assets, which are recorded at cost less accumulated amortization, including asset impairment losses. Amortization is calculated using the straight-line
method over the estimated useful lives of the assets. </P>
<P align="justify">
On a regular basis, we review the estimated useful lives of our long-lived assets. Assessing the reasonableness of the estimated useful lives of long-lived assets requires judgment and is based on currently available information, including actual
utilization experience and expected future business plans. We also review long-lived assets for potential impairment whenever events or changes in circumstances indicate that the carrying amounts of such assets may not be recoverable. Impairment
losses are recognized when the estimated undiscounted future cash flows expected to result from the use of an asset and its eventual disposition are less than its carrying amount. The amount of impairment loss recognized is measured as the amount by
which the carrying value of an asset or group of assets exceed their fair value, with fair value being determined based upon discounted expected future cash flows or appraised values, depending on the nature of the asset or group of assets. 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, and their fair value on an open market. Changes
in circumstances, such as technological advances, adverse changes in third party licensing arrangements, changes to the Company&#146;s business strategy, and changes in economic conditions can result in actual useful lives and future cash flows
differing significantly from estimates and could result in increased charges for amortization or impairment. Revisions to the estimated useful lives of long-lived assets or future cash flows constitute a change in accounting estimate and are applied
prospectively. </P>
<P align="justify">
<B>Valuation and Impairment of Indefinite Life Intangible Assets Including Goodwill </B> </P>
<P align="justify">
We account for business acquisitions using the purchase method. Accordingly, the purchase price of a business acquisition is allocated to the identifiable net assets acquired including identifiable intangible assets, on the basis of estimated fair
values as at the date of purchase, with any excess being assigned to goodwill. Indefinite life intangible assets and goodwill are not amortized, and are tested annually for impairment, or more frequently if an event or circumstance occurs that more
likely than not reduces the fair value of the indefinite life intangible asset or reporting unit below its carrying amount. The amount of impairment loss recognized is measured as the amount by which the carrying value of an asset or reporting unit
exceeds its fair value with fair value being determined based upon discounted expected future cash flows or appraised values, depending on the nature of the asset or reporting unit. The impairment test for indefinite life intangible assets and
goodwill involves the use of significant assumptions, estimates and judgments with respect to a variety of factors, including expected sales, gross margins, SG&amp;A expenses, capital expenditures, cash flows and the selection of an appropriate
discount rate, all of which are subject to inherent uncertainties and subjectivity. The assumptions are based on annual
business plans and other forecasted results as well as discount rates which are used to reflect market-based estimates of the risks associated with the projected cash flows, based on the best information available as of the date of the impairment
test. There can be no assurance that the estimates and assumptions used in the impairment tests will prove to be accurate predictions of the future. If the future adversely differs from management&#146;s best estimate of key economic assumptions,
and if associated cash flows materially decrease, the Company may be required to record material impairment charges related to its indefinite life intangible assets and goodwill. </P>
<P align="right">
GILDAN 2011 REPORT TO SHAREHOLDERS P.27</P>

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    <p align="right"><font size="2">MANAGEMENT&#146;S DISCUSSION AND ANALYSIS</font></td>
  </tr>
</table>
<P align="justify">
<B><br>
Valuation of Accrued Pension Liability and Related Pension Cost </B></P>
<P align="justify">
The valuation of the accrued pension liability and related pension cost related to Gold Toe Moretz&#146;s defined benefit pension plan requires economic assumptions, including expected rates of return on plan assets, discount rates to value plan
obligations, and participant demographic assumptions including mortality rates. The actuarial assumptions used may differ materially from actual results due to changing market and economic conditions, and actual results may differ significantly from
the actuarial assumptions resulting in the requirement to recognize a portion of actuarial gains and losses in net earnings.</P>
<P align="justify">
<B>Income Taxes</B><BR>
</P>
<P align="justify">
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 annual consolidated financial statements. </P>
<P align="justify">
The Company&#146;s income tax provisions and income tax assets and liabilities are based on interpretations of applicable tax laws, including income tax treaties between various countries in which the Company operates as well as underlying rules and
regulations with respect to transfer pricing. These interpretations involve judgments and estimates and may be challenged through government taxation audits that the Company is regularly subject to. The Company recognizes the benefits of uncertain
tax filing positions in its financial statements when it is considered likely that the tax position will be sustained upon examination by tax authorities, including resolution of any related appeals or litigation processes, based on the technical
merits of the position. The tax benefits recognized from such positions are measured at the best estimate of the amounts expected to be realized upon ultimate resolution. The Company periodically reviews and adjusts its estimates and assumptions of
income tax assets and liabilities as circumstances warrant, such as changes to tax laws, administrative guidance, change in management&#146;s assessment of the technical merits of its position due to new information, and the resolution of
uncertainties through either the conclusion of tax audits or expiration of prescribed time limits within relevant statutes. Previously recognized tax benefits relating to uncertain tax filing positions are derecognized if it becomes likely that the
tax position will no longer be upheld. Actual results, including the resolution of government tax audits and other events may vary materially compared to estimates and assumptions used by management in determining the provision for income taxes and
in valuing income tax assets and liabilities, and in such eventualities the Company may be required to reduce or increase the value of income tax assets and liabilities resulting in a material income tax expense or recovery in future periods. </P>
<P align="justify">
We recognize future income tax assets only to the extent that, in management&#146;s opinion, it is more likely than not that the future income tax assets will be realized, based on estimates of future taxable income in applicable jurisdictions and
other assumptions. To the extent that it is determined that it is no longer more likely than not that the asset will be realized, a valuation allowance is provided. As indicated in note 15 to the 2011 audited annual consolidated financial
statements, we have recognized a future tax asset of &#36;67.9 million at October 2, 2011 relating to the tax benefit of tax loss carryforwards, and a future income tax asset of &#36;11.7 million relating to taxable temporary differences. These
future tax assets relate primarily to our U.S. subsidiaries which file a consolidated federal tax return. We have concluded that it is more likely than not that these future tax assets will be realized, taking into account our projections of future
taxable income and the expected reversal of taxable temporary differences during the tax loss carryforward period. Our projections of future taxable income involve the use of significant assumptions, estimates and judgments with respect to a variety
of factors, including sales and operating expenses. There can be no assurance that the estimates and assumptions used in our projections of future taxable income will prove
to be accurate predictions of the future, and in the event that our assessment of the recoverability of these future tax assets changes in the future, a material reduction in the carrying value of these future tax assets could be required, with a
corresponding charge to net earnings. </P>
<P align="right">
GILDAN 2011 REPORT TO SHAREHOLDERS P.28</P>

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    <p align="right"><font size="2">MANAGEMENT&#146;S DISCUSSION AND ANALYSIS</font></td>
  </tr>
</table>
<P align="justify">
<B><br>
<font size="3">ACCOUNTING POLICIES AND FUTURE ACCOUNTING STANDARDS </font> </B></P>
<P align="justify">
<B>A</B><B>CCOUNTING </B><B>P</B><B>OLICIES</B><B> </B></P>
<P align="justify">
The Company applied the same accounting policies in the preparation of its 2011 audited annual consolidated financial statements as those applied in the preparation of its 2010 audited annual consolidated financial statements. As a result of the
acquisition of Gold Toe Moretz in April 2011, the method of amortization and estimated useful lives for the acquired intangible assets, and the method of accounting for the defined benefit pension plan are disclosed in note 1(h) and note 1(u) to the
2011 audited annual consolidated financial statements.<B> </B></P>
<P align="justify">
<B>F</B><B>UTURE </B><B>A</B><B>CCOUNTING </B><B>S</B><B>TANDARDS</B><B> </B></P>
<P align="justify">
<B>I</B><B>NTERNATIONAL </B><B>F</B><B>INANCIAL </B><B>R</B><B>EPORTING </B><B>S</B><B>TANDARDS </B><B>(IFRS) </B></P>
<P align="justify">
In February 2008, the Canadian Accounting Standards Board (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 1, 2011. As a result, the changeover to IFRS will be required for our fiscal 2012 interim and annual financial statements beginning October 3, 2011 (the &#147;changeover date&#148;) with comparative information
presented for fiscal 2011.</P>
<P align="justify">
IFRS 1, <I>First Time Adoption of International Financial Reporting Standards</I>, requires that first-time adopters select accounting policies that are in compliance with each IFRS effective at the end of a company&#146;s first annual IFRS
reporting period (September 30, 2012 for Gildan), and apply those policies to all periods presented in their first IFRS financial statements including the comparative periods. Therefore, the starting point for our accounting in accordance with IFRS
will be fiscal 2011, beginning on October 4, 2010 (the &#147;transition date&#148;) although the interim and annual financial statements for fiscal 2011 will only be published in accordance with IFRS in fiscal 2012 as comparative information.</P>
<P align="justify">
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, and may cause the Company to select different accounting policies than the 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 is complete with the expectation that we will apply IFRS in effect as at the date of this 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.</P>
<P align="right">
GILDAN 2011 REPORT TO SHAREHOLDERS P.29</P>

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    <p align="right"><font size="2">MANAGEMENT&#146;S DISCUSSION AND ANALYSIS</font></td>
  </tr>
</table>
<P align="justify">&nbsp;<br>
<b>Progress towards Completion of our IFRS Changeover Plan </b></P>
<p align="justify"> In preparation for the changeover to IFRS, we developed an IFRS transition plan consisting of three phases - 1) Scoping and Diagnostic Phase, 2) Detailed Impact Analysis and Design Phase, and 3) Implementation and Review Phase. Our IFRS transition
  continues to proceed on schedule, and as at October 2, 2011, we have completed the first and second phases of our IFRS transition plan. The
  implementation and review phase is currently underway, and will continue until our first complete annual financial reporting under IFRS is released as at and for the year ending September 30, 2012.<br>
</p>
<P align="justify">There have been no significant changes to the key elements of our changeover plan, and no new accounting differences have been identified since the last update on our IFRS transition plan, as reported in the 2010 annual MD&amp;A and as subsequently
  updated in our quarterly interim MD&amp;As throughout fiscal 2011. The key elements and status of our changeover plan are as follows:</P>
<P align="justify">
<U>Information technology and data systems</U><BR>
</P>
<P align="justify">
Systems and processes are currently in place to collect the information required under IFRS. Although new reports are required to capture new information required for presentation and disclosure under IFRS, the transition to IFRS has not required
significant changes to our information technology systems and reports. Our systems are considered to be reliable for purposes of generating the comparative fiscal 2011 financial 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. </P>
<P align="justify">
<U>Internal controls over financial reporting</U><BR>
</P>
<P align="justify">
Internal control processes and procedures have been implemented in order to address the key accounting differences resulting from the changeover to IFRS. Internal controls applicable to our reporting process under Canadian GAAP will be substantially
the same as those required in our IFRS reporting environment.</P>
<P align="justify">
<U>Disclosure controls and procedures</U><BR>
</P>
<P align="justify">
Disclosure controls and procedures are being updated to include all data required for additional financial statement disclosures under IFRS. Our disclosure controls and procedures are also being updated to ensure that information is appropriately
communicated in our external communications and other periodic published reports.</P>
<P align="justify">
<U>Financial expertise including training requirements</U><BR>
</P>
<P align="justify">
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.</P>
<P align="justify">
<U>Business contracts, including the impact on operating agreements and key performance indicators</U> </P>
<P align="justify">
Business contracts which are affected by financial results such as financial covenants and long-term incentive plans have been reviewed to assess the impact from the changeover to IFRS. The changeover to IFRS has not had a significant impact on our
business contracts.</P>
<P align="right">
GILDAN 2011 REPORT TO SHAREHOLDERS P.30</P>

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    <p align="right"><font size="2">MANAGEMENT&#146;S DISCUSSION AND ANALYSIS</font></td>
  </tr>
</table>
<P align="justify">
<B>&nbsp;<br>
</B><u>Accounting policies, including choices among policies permitted under IFRS</u> </P>
<p align="justify"> We have completed our review of 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. We have identified a number of areas where there will be some impact on the recognition and measurement of certain balance sheet and statement of earnings items as noted below.</p>
<p align="justify"> The following is a summary of the significant differences between Canadian GAAP and IFRS that have been identified to date:</p>
<P align="justify"><B>1) Investment in consolidated joint venture</B>: Our consolidated financial statements currently include the accounts of our yarn-spinning joint venture CanAm, 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 and
  comprehensive income. Under IFRS, CanAm is considered a jointly controlled entity and we are not deemed to exercise control. Consequently, we will no longer consolidate CanAm, in which case we will account for this investment using the equity method
  as at the opening IFRS balance sheet.</P>
<P align="justify">
<B><I>Impact on transition date opening balance sheet</I></B>: Under the equity method, which is effectively a &#147;one-line consolidation method&#148;, our net investment in CanAm will 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 which has been determined to be approximately &#36;12.5 million as at the transition date. The removal of the assets and
liabilities of CanAm from the consolidated balance sheet of the Company and the addition of a long-term asset will result in a net decrease in total assets of approximately &#36;10 million and a corresponding decrease in total liabilities and
non-controlling interest in consolidated joint venture.</P>
<P align="justify">
<B><I>Impact on post-transition date financial position and results of operations</I></B>: Net earnings are not expected to be affected by this change, but there will be non-material changes to the components of our net earnings, as our share of
CanAm&#146;s net earnings will 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 or dividends received from CanAm will be presented as part of cash flows relating to investing activities. Except for the elimination of unrealized intercompany profits, 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.</P>
<P align="justify">
<B>2) Business combinations &#150; 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 and integration costs are included in the cost of the purchase (which usually results in such costs being added to goodwill).</P>
<P align="justify">
<B><I>Impact on transition date opening balance sheet</I></B>: As noted below, we have elected to use an optional exemption that will allow us to apply IFRS guidance only for business combinations that occurred after the transition date, and
accordingly we do not expect to record adjustments to the opening IFRS balance sheet for this accounting policy difference.</P>
<P align="justify">
<B><I>Impact on post-transition date financial position and results of operations</I></B>: An adjustment of &#36;5.8 million, net of income taxes, will be made to the 2011 comparative figures under IFRS as a charge to restructuring and
acquisition-related costs with a corresponding reduction to goodwill with respect to the acquisition-related costs incurred in connection with the acquisition of Gold Toe Moretz in April 2011. </P>
<P align="right">
GILDAN 2011 REPORT TO SHAREHOLDERS P.31</P>

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  </tr>
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<P align="justify">
<B><I>&nbsp;<br>
</I>3) Business combinations - 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, and the impact of changes in the subsequent remeasurement of
contingent consideration is recorded in net earnings.</P>
<P align="justify"><B><I>Impact on transition date opening balance sheet</I></B>: An adjustment will be recorded to recognize a liability of &#36;5.7 million at the transition date with a corresponding decrease to retained earnings on a pre-tax basis, with respect to
  a contingent consideration as part of a business combination that occurred in fiscal 2008, which was recognized under Canadian GAAP after the transition date. This adjustment is charged to retained earnings under IFRS rather than goodwill because
  IFRS does not permit transition date adjustments to be made to goodwill in this case.</P>
<P align="justify">
<B><I>Impact on post-transition date financial position and results of operations:</I></B> An adjustment will be recorded to increase goodwill by approximately &#36;3 million, net of deferred income taxes, relating to the recognition of the
estimated fair value of contingent consideration at the date of acquisition of Gold Toe Moretz, which was not recognized under Canadian GAAP. This adjustment will also result in an increase to liabilities of approximately &#36;5 million under IFRS
as at the date of acquisition. The re-measurement of the contingent consideration will result in a credit to net earnings of approximately &#36;1.0 million, net of income taxes, to the 2011 comparative figures under IFRS. </P>
<P align="justify">
<B>4) Business combinations &#150; Accrued benefit liabilities:</B><B><I> </I></B>Under IFRS, the effects of any planned, but not executed, amendments, terminations, or curtailments to defined benefit pension plans and other postretirement plans
acquired are excluded from the measurement of the funded status of those plans at the date of acquisition. Planned or anticipated amendments, terminations, or curtailments are not part of the liabilities assumed as of the acquisition date. Such
actions are recognized in the post business combination financial statements as a charge or credit to earnings. Under Canadian GAAP, the accrued benefit asset or accrued benefit liability at the time of acquisition is measured based on the amount
expected to be received or paid on settlement, when the plan is expected to be wound up.</P>
<P align="justify">
<B><I>Impact on transition date opening balance sheet</I></B>: No impact.</P>
<P align="justify">
<B><I>Impact on post-transition date financial position and results of operations: </I></B>As a result of the planned termination of the Gold Toe Moretz defined benefit pension plan, the initial measurement of the accrued pension benefit liability
at the date of acquisition was lower under IFRS resulting in a decrease in liabilities of &#36;4.7 million, and a corresponding decrease in goodwill of &#36;3 million, net of deferred income taxes at the date of acquisition. The subsequent impact on
net earnings related to differences in the measurement of the accrued benefit liability at October 2, 2011 under IFRS will result in a charge of &#36;2.2 million, net of income taxes, to the 2011 comparative figures under IFRS.</P>
<P align="justify">
<B>5) Defined benefit pension plan:</B> Under IFRS, the funded status of defined benefit pension plans must be presented on the balance sheet by recording the unrecognized actuarial gains and losses and prior service cost in accumulated other
comprehensive loss. Under Canadian GAAP, unrecognized gains or losses are not required to be recorded on the balance sheet.</P>
<P align="justify">
<B><I>Impact on transition date opening balance sheet</I></B>: No impact.</P>
<P align="justify">
<B><I>Impact on post-transition date financial position and results of operations: </I></B>An adjustment will be recorded to increase the pension liability by &#36;3.7 million as at October 2, 2011 under IFRS, with a corresponding charge of &#36;2.3
million, net of deferred income taxes, to other comprehensive income, to the 2011 comparative figures under IFRS.</P>
<P align="right">GILDAN 2011 REPORT TO SHAREHOLDERS P.32</P>
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  </tr>
</table>
<P align="justify">
<B>&nbsp;<br>
6) 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).</P>
<p align="justify"> <b><i>Impact on transition date opening balance sheet</i></b>: 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, there is no opening IFRS balance sheet adjustment for borrowing costs incurred prior to the transition date. </p>
<P align="justify"><B><I>Impact on post-transition date financial position and results of operations: </I></B>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. </P>
<P align="justify">
<B>7) Income taxes - 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.</P>
<P align="justify">
<B><I>Impact on transition date opening balance sheet</I></B>: This difference will result in the recognition of a deferred income tax asset of approximately &#36;1.6 million at the transition date for the tax effect of temporary differences for
certain inventories which have been transferred between group entities, with a corresponding entry to retained earnings.</P>
<P align="justify">
<B><I>Impact on post-transition date financial position and results of operations: </I></B>No significant impact is expected subsequent to the adjustment recorded on the opening balance sheet at the transition date. </P>
<P align="justify">
<B>8) Income taxes - 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 do not result in a reduction of intangible assets, and if recognized after the measurement period, the adjustment is recognized in net earnings.</P>
<P align="justify">
<B><I>Impact on transition date opening balance sheet</I></B>: This difference will result in an opening IFRS balance sheet adjustment of approximately &#36;5.5 million at the transition date as an increase to intangible assets, with a corresponding
increase to retained earnings, in order to reverse a reduction of intangible assets recorded under Canadian GAAP related to deferred tax assets that were recognized subsequent to the measurement period related to a previous business combination.
</P>
<P align="justify">
<B><I>Impact on post-transition date financial position and results of operations: </I></B>Annual amortization expense, which will be included in SG&amp;A, will increase by approximately &#36;0.4 million over the remaining useful life of the
intangible asset, which is approximately sixteen years. </P>
<P align="justify">
<B>9) 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 only 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.</P>
<P align="right">
GILDAN 2011 REPORT TO SHAREHOLDERS P.33</P>

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  </tr>
</table>
<P align="justify">
<B><br>
<i>Impact on transition date opening balance sheet</i></B>: Subsequent to a review of the significant components of property, plant and equipment, an adjustment of &#36;2.2 million will be recorded at the date of transition as a reduction of
property, plant and equipment, with a corresponding decrease to opening retained earnings as at October 4, 2010 to reflect the cumulative impact of revisions made to the useful lives of significant components of certain properties and plants. </P>
<p align="justify"> <b><i>Impact on post-transition date financial position and results of operations: </i></b>The impact on future net earnings as a result of the revised useful lives of the significant components of certain properties and plants is an increase in
  annual depreciation expense of approximately &#36;0.8 million.</p>
<P align="justify"><B>10) Impairment of long-lived assets including goodwill: </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 fair value and its carrying amount. In addition, the annual impairment test for goodwill under Canadian GAAP also involves a two-step process for testing impairment. The first step involves determining the fair value of a
  reporting unit based on the present value of expected future cash flows, and if the carrying amount is less than the fair value, then the second step is required in which the fair value determined in step one is allocated to the assets and
  liabilities of the reporting unit, including the implied fair value of any intangible assets that would be recorded had the reporting unit been acquired in a business acquisition. Any fair value in excess of amounts allocated to the reporting
  unit&#146;s net assets represents the implied fair value of goodwill for that reporting unit. If the carrying value of the goodwill exceeds the implied fair value, the carrying amount is written down by an amount equal to such excess. IFRS only
  requires a one-step impairment test for identifying and measuring impairment for all long-lived assets, including goodwill, in which the carrying value of an asset or asset group (referred to as a Cash Generating Unit) is compared to its recoverable
  amount which is based upon the higher of (i) fair value less costs to sell and (ii) value-in-use, which includes estimates based on discounted future cash flows. An impairment charge is recorded if the carrying value is higher than the recoverable
  amount. In addition, unlike Canadian GAAP, IFRS requires impairment charges (except goodwill impairment charges) to be reversed when circumstances indicate that the impairment no longer exists.</P>
<P align="justify">
<B><I>Impact on transition date opening balance sheet</I></B>: No impact.</P>
<P align="justify">
<B><I>Impact on post-transition date financial position and results of operations:</I></B> 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.</P>
<P align="justify">
<B>11) 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.</P>
<P align="justify">
<B><I>Impact on transition date opening balance sheet</I></B>: The findings of our review have indicated that a previous lease of a corporate aircraft, which was accounted for as an operating lease under Canadian GAAP, met the criteria for a
financing lease under IFRS as at the transition date primarily due to the fact that we had given notice in fiscal 2010 to exercise an early purchase option on the lease for this corporate aircraft. This difference will result in an opening IFRS
balance sheet adjustment of approximately &#36;17 million, as an increase to our non-current assets with a corresponding increase in current liabilities at the transition date.</P>
<P align="justify">
<B><I>Impact on post-transition date financial position and results of operations:</I></B> Depreciation and interest expense from the financing lease under IFRS will replace the lease expense previously charged to net earnings under Canadian GAAP,
and lease payments will be recognized as repayments of principal and interest. During the second quarter of fiscal 2011, the Company completed the purchase of the corporate aircraft and immediately sold it to an external, unrelated party as
disclosed in note 19(a) to the 2011 audited annual consolidated financial statements. The Company has leased a new corporate aircraft which is being accounted for as an operating lease under Canadian GAAP, and which will also be classified as an
operating lease under IFRS. </P>
<P align="right">
GILDAN 2011 REPORT TO SHAREHOLDERS P.34</P>

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<P align="justify"> <b>&nbsp;<br>
  12) Decommissioning and restoration liabilities:</b> Under Canadian GAAP, asset retirement obligations, which are referred to as decommissioning and restoration liabilities under IFRS, are not required to be recognized when the timing and/or
method of settlement are conditional on a future event, the entity has several options to settle the obligation, and the obligation has an indeterminate settlement date. Under IFRS, when the method and timing of the future settlement of an existing
obligation are uncertain, an entity
should determine a range of possible outcomes and methods of settlement and make an estimate of the future obligation. The Company has not recognized any liability and corresponding asset for the estimated future costs of decommissioning and
restoring certain assets located at its textile and sock facilities under Canadian GAAP since the criteria for recognition have not been met. However, the findings of our review have indicated that an obligation exists under IFRS. As noted below, we
have elected to use an optional exemption that will allow us to use a simplified approach to calculate the IFRS opening depreciated cost of the property, plant and equipment at the transition date relating to the decommissioning and restoration
liability, as opposed to recalculating the asset value since its inception date as would otherwise be required under IFRS.</P>
<P align="justify"><B><I>Impact on transition date opening balance sheet</I></B>: The estimate of the present value of future decommissioning and restoration costs for certain assets at our offshore locations, will result in the recognition of a non-current liability
of approximately &#36;9 million with an offsetting increase to property, plant and equipment of approximately &#36;6.5 million, and a reduction to retained earnings on a pre-tax basis of &#36;2.5 million at the date of transition.</P>
<P align="justify">
<B><I>Impact on post-transition date financial position and results of operations:</I></B> The increase in property, plant and equipment will increase our annual depreciation expense in subsequent years by approximately &#36;0.3 million. </P>
<P align="justify">
<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, and share based payments, and expects that these
standards are likely to have less significance for the Company&#146;s changeover to IFRS.</P>
<P align="justify">
<U>Financial statement note disclosure</U><BR>
</P>
<P align="justify">
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 expect to be in a position to provide the required disclosures when we begin reporting in IFRS during fiscal 2012.</P>
<P align="justify">
<U>IFRS 1 Optional Exemptions</U><BR>
</P>
<P align="justify">
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 expects to use at the transition
date:</P>
<P align="right">
GILDAN 2011 REPORT TO SHAREHOLDERS P.35</P>

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    <p align="right"><font size="2">MANAGEMENT&#146;S DISCUSSION AND ANALYSIS</font></td>
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<p><BR>
</p>
<DIV>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
borderColor=#000000 cellSpacing=0 cellPadding=1 width="100%" border=1>

  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="35%"><B>Accounting
      Policy</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center
      width="50%"><B>Optional Exemption</B> </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      bgColor=#e6efff width="35%">Foreign exchange cumulative translation differences </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=justify width="50%"
    bgColor=#e6efff>The exemption permits the balance of any cumulative
      translation adjustment (CTA) 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 million currently included in
      accumulated other comprehensive income through an adjustment to retained
      earnings at the transition date. </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="35%">Decommissioning
      and restoration liabilities </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=justify width="50%">The
      exemption permits the Company not to apply IFRIC 1, <I>Changes in Existing
      Decommissioning, Restoration and Similar</I> <I>Liabilities
      </I>retrospectively to calculate the opening depreciated cost of the asset
      relating to decommissioning and restoration liabilities under IFRS, but
      rather to use a simplified approach based on the discounted value of the
      liability at the transition date. </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      bgColor=#e6efff width="35%">Business combinations </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=justify width="50%"
    bgColor=#e6efff>The exemption permits the Company not to apply IFRS 3,
      <I>Business Combinations</I>, to business combinations occurring prior to
      the transition date. </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="35%">Share based
      payment transactions </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=justify width="50%">The
      exemption permits the Company to apply IFRS 2, <I>Share-</I> <I>based
      Payment</I>, only to equity instruments that were granted after November
      7, 2002 which have not yet vested at the transition date. </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      bgColor=#e6efff width="35%">Borrowing costs </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=justify width="50%"
    bgColor=#e6efff>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></TABLE></DIV>
<P align=justify><B><font size="3">RELATED PARTY TRANSACTIONS</font></B></P>
<P align=justify>We have transactions with Frontier Spinning Mills, Inc.
(Frontier), which is the parent company of our joint venture partner, and which
manages the operations of our joint venture, 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 $297.5 million (2010 - $156.8
million), along with $0.8 million (2010 - $0.8 million) relating to management
fees for the year ended October 2, 2011. As at October 2, 2011, we had an
outstanding payable to Frontier of $63.1 million (October 3, 2010 - $30.0
million). We also lease warehouse and office space from an officer of a
subsidiary of the Company under operating leases. The payments made on these
leases were in accordance with the terms of the lease agreements established and
agreed to by the related parties, which amounted to $0.6 million for fiscal 2011
(2010 &#150; nil). There were no amounts owing as at October 2, 2011.</P>
<P align=justify><B><font size="3">DISCLOSURE CONTROLS</font></B></P>
<P align=justify>As stated in the Canadian Securities Administrators&#146; 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. </P>
<P align=right>GILDAN 2011 REPORT TO SHAREHOLDERS P.36</P>
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<P align="justify">
<br>
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 2, 2011. Based on that evaluation, our Chief Executive Officer and our Chief Financial Officer concluded that our disclosure controls and procedures were effective as of the end of such period. </P>
<P align="justify">
<B><font size="3">INTERNAL CONTROL OVER FINANCIAL REPORTING </font> </B></P>
<P align="justify">
<B>Management&#146;s Annual Report on Internal Control Over Financial Reporting </B></P>
<P align="justify">
Our management is responsible for establishing and maintaining adequate internal control over financial reporting, as such term is defined in Rules 13(a)-15(f) and 15(d)-15(f) under the U.S. Securities Exchange Act of 1934. </P>
<P align="justify">
Our internal control over financial reporting includes those policies and procedures that: (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of our assets; (2)
provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that our receipts and expenditures are being made only in
accordance with authorization of our management and directors; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of our assets that could have a material effect on the
financial statements. </P>
<P align="justify">
Under the supervision and with the participation of our Chief Executive Officer and our Chief Financial Officer, management conducted an evaluation of the effectiveness of our internal control over financial reporting, as at October 2, 2011, based
on the framework set forth in <I>Internal Control-Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO)</I>. Based on its evaluation under this framework, management concluded that our internal
control over financial reporting was effective as of that date. </P>
<P align="justify">
Management&#146;s assessment of the effectiveness of our internal control over financial reporting as of October 2, 2011 excluded Gold Toe Moretz, which we acquired on April 15, 2011. Gold Toe Moretz is a wholly-owned subsidiary of ours whose total
assets and total net sales represented approximately 24% of our consolidated total assets and approximately 7% of our consolidated net sales, respectively, as of and for the year ended October 2, 2011. </P>
<P align="justify">
Companies are allowed to exclude acquisitions from their assessment of internal control over financial reporting during the first year of an acquisition while integrating the acquired company under guidelines established by the Securities and
Exchange Commission. </P>
<P align="justify">
<B>Attestation Report of Independent Registered Public Accounting Firm </B></P>
<P align="justify">
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 2, 2011. </P>
<P align="justify">
<B>Changes in Internal Controls Over Financial Reporting </B></P>
<P align="justify">
There have been no changes during fiscal 2011 in our internal control over financial reporting that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting. </P>
<P align="justify">
The design of any system of controls and procedures is based in part upon certain assumptions about the likelihood of certain events. There can be no assurance that any design will succeed in achieving its stated goals under all potential future
conditions, regardless of how remote. </P>
<P align="right">
GILDAN 2011 REPORT TO SHAREHOLDERS P.37</P>

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<P align="justify">
<B><font size="3"><br>
RISKS AND UNCERTAINTIES</font></B></P>
<P align="justify">
In addition to the risks previously described under the sections &#147;Financial Risk Management&#148;, &#147;Critical Accounting Estimates&#148;,<I> </I>and those described elsewhere in this annual MD&amp;A, this section describes the principal
risks that could have a material and adverse effect on our financial condition, results of operations or business, cash flows or the trading price of our common shares, as well as cause actual results to differ materially from our expectations
expressed in or implied by our forward-looking statements. The risks listed below are not the only risks that could affect the Company. Additional risks and uncertainties not currently known to us or that we currently deem to be immaterial may also
materially and adversely affect our financial condition, results of operations, cash flows or business.</P>
<P align="justify">
<B>Our ability to implement our strategies and plans</B><BR>
</P>
<P align="justify">
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, continue to generate manufacturing and distribution cost reductions, and continue to evaluate opportunities to reinvest cash flows. 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. and international screenprint markets, as well as further penetrating the mass-market retail
channel and achieving targeted levels of profitability. 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 we will be successful in optimizing our manufacturing and distribution cost reduction initiatives. In addition, our ability to generate cash flows from
operations will depend on the success we have in executing our key strategic initiatives, which in turn will ultimately impact our ability to reinvest cash flows or distribute cash flows to our shareholders. We may be unable to identify acquisition
targets, successfully integrate a newly acquired business, or achieve expected synergies from such integration. </P>
<P align="justify">
<B>Our ability to compete effectively</B><BR>
</P>
<P align="justify">
The apparel market for our products is highly competitive. Competition is generally based upon price, with reliable quality and service also being key requirements for success. Our primary competitors are described more fully in the business
description contained under the heading &#147;Competitive Environment&#148; in the section entitled &#147;Our Business&#148; in this annual MD&amp;A. </P>
<P align="justify">
Our ability to remain competitive in the areas of price, quality, service, marketing, manufacturing and distribution will, in large part, determine our future success. Increased competition may result in the loss of customers to competitors,
reduction in customer orders or shelf space, lower prices, the need for customer price incentives and other forms of marketing support to our customers, all of which could have an adverse effect on our profitability if we are unable to offset such
negative impact with new business or cost reductions. There can be no assurance that we will be able to maintain or improve our competitive position.</P>
<P align="justify">
<B>Adverse changes in general economic conditions</B><BR>
</P>
<P align="justify">
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 sales volume reductions and lower selling prices, and may cause us to operate at levels below our optimal production capacity, which would result in higher unit production costs, all of which could adversely
affect our profitability and reduce cash flows from operations. Weak economic and financial conditions could also negatively affect the financial condition of our customers, which could result in lower
sales volumes and increased credit risk. The nature and extent of the Company&#146;s credit risks are described under the section &#147;Financial Risk Management&#148;.</P>
<P align="right">
GILDAN 2011 REPORT TO SHAREHOLDERS P.38</P>

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  </tr>
</table>
<P align="justify">
<B><br>
Our reliance on a small number of significant customers</B><B><I> </I></B></P>
<P align="justify">
We rely on a small number of customers for a significant portion of our total sales. In fiscal 2011 our largest and second largest customers accounted for 19.4% and 12.1% (2010 &#150; 21.0% and 14.3%) of total sales respectively, and our top ten
customers accounted for 61.1% (2010 &#150; 66.4%) of total sales. We expect that these customers will continue to represent a significant portion of our sales in the future.</P>
<P align="justify">
Future sales volumes and profitability could be adversely affected should one or more of the following events occur: </P>
<UL style="text-align:justify;">
<LI>
<p style="margin-top: 0; margin-bottom: 12">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;</LI>
<LI>
<p style="margin-top: 0; margin-bottom: 12">a large customer exercises its purchasing power to negotiate lower prices or to require Gildan to incur additional service and other costs;</LI>
<LI>
<p style="margin-top: 0; margin-bottom: 12">further industry consolidation leads to greater customer concentration and competition; and</LI>
<LI>
<p style="margin-top: 0; margin-bottom: 12">a large customer encounters financial difficulties and is unable to meet its financial obligations.</LI>
</UL>
<P align="justify">
<B>Our customers do not commit to purchase minimum quantities</B></P>
<P align="justify">
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.</P>
<P align="justify">
<B>Our ability to anticipate evolving consumer preferences and trends </B></P>
<P align="justify">
While we currently focus on basic, non-fashion products, the apparel industry, particularly within the retail channel, is subject to evolving consumer preferences and trends. Our success may be negatively impacted by changes in consumer preferences
which do not fit with Gildan&#146;s core competency of marketing and large-scale manufacturing of basic, non-fashion apparel products. If we are unable to successfully anticipate, identify or react to changing styles or trends or misjudge the market
for our products, our sales could be negatively impacted and we may be faced with unsold inventory which could adversely impact our profitability.</P>
<P align="justify">
<B>Our ability to manage production and inventory levels effectively in relation to changes in customer demand </B></P>
<P align="justify">
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, in which case our customers could seek to fulfill their product needs from competitors and reduce the amount of business they do
with us.</P>
<P align="justify">
<B>Fluctuations and volatility in the price of raw materials used to manufacture our products</B><B><I> </I></B></P>
<P align="justify">
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 in 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 annual MD&amp;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. </P>
<P align="right">
GILDAN 2011 REPORT TO SHAREHOLDERS P.39<BR>
</P>

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  </tr>
</table>
<P align="justify">
<B><br>
Our dependence on key suppliers</B><BR>
</P>
<P align="justify">
Our ability to meet our customers&#146; needs depends on our ability to maintain an uninterrupted supply of raw materials and finished goods from third party suppliers. More specifically, we source cotton and polycotton yarns primarily from the
United States from our joint venture and from a limited number of outside suppliers. In addition, the vast majority of the products sold by our recently acquired Gold Toe Moretz subsidiary are purchased from a number of third party suppliers in
Asia. Our business, financial condition or results of operations could be adversely affected if there is a significant change in our relationship with any of our principal suppliers of yarn or finished goods, or if any of these key suppliers have
difficulty sourcing cotton fibers and other raw materials, experience production disruptions, fail to maintain production quality, experience transportation disruptions or encounter financial difficulties. These events can result in lost sales,
cancellation charges or excessive markdowns, all of which can adversely affect our business, financial condition or results of operations. </P>
<P align="justify">
<B>Climate, political, social and economic risks in the countries in which we operate or from which we source production</B><B><I> </I></B></P>
<P align="justify">
The majority of our products are manufactured in Central America, primarily in Honduras and the Caribbean Basin, and to a lesser extent in Bangladesh, as described in the section entitled &#147;Our Operations&#148;. As a result of the acquisition of
Gold Toe Moretz we are now purchasing significant volumes of finished goods from third party suppliers in China and Pakistan. Some of the countries in which we operate or source from 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.</P>
<P align="justify">
The following conditions or events could disrupt our supply chain, interrupt production at our facilities or those of our suppliers, increase our cost of sales or result in unforeseen capital expenditures: </P>
<UL style="text-align:justify;">
<LI>
<p style="margin-top: 0; margin-bottom: 12">fires, pandemics, extraordinary weather conditions or natural disasters, such as hurricanes, tornadoes, floods, tsunamis and earthquakes;</LI>
<LI>
<p style="margin-top: 0; margin-bottom: 12">political instability, labour unrest, war or terrorism;</LI>
<LI>
<p style="margin-top: 0; margin-bottom: 12">disruptions in shipping and freight forwarding services;</LI>
<LI>
<p style="margin-top: 0; margin-bottom: 12">interruptions in the availability of basic services and infrastructure, including power and water shortages.</LI>
</UL>
<P align="right">
GILDAN 2011 REPORT TO SHAREHOLDERS P.40</P>

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  </tr>
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<P align="justify">
<B><br>
We rely on certain international trade agreements and preference programs and are subject to evolving international trade regulations</B></P>
<P align="justify">
As a multinational corporation, we are affected by international trade legislation, bilateral and multilateral trade agreements and trade preference programs in the countries in which we bring goods to market and the countries where we 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. Such measures are advantageous because of the otherwise
generally high duty rates that apply to apparel products in many countries. The Company relies on a number of preferential trade programs which provide duty free access to the U.S. market, including the Caribbean Basin Trade Partnership Act and the
Dominican Republic &#150; Central America &#150; United States Free Trade Agreement. The Company relies on similar arrangements to access the European Union, Canada and other markets. Changes to trade agreements or trade preference programs may
negatively impact our competitive position in the countries in which we operate. </P>
<P align="justify">
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.</P>
<P align="justify">
As trade liberalization continues, it is possible that new legislation or trade agreements may be enacted in the future in the countries in which we manufacture, 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 global competitive position. </P>
<P align="justify">
In addition, the Company is subject to customs audits and origin verifications in the various countries in which it operates. Although we believe that our customs compliance programs are effective, we cannot predict the outcome of any governmental
audit. </P>
<P align="justify">
In recent years, governmental bodies have responded to the increased threat of terrorist activity by requiring greater levels of inspection of imported goods and imposing security requirements on importers, carriers and others in the global supply
chain. These added requirements can sometimes cause delays and increase costs in bringing imported goods to market. We believe we have effectively addressed these requirements to maximize velocity in our supply chain, but changes in security
requirements or tightening of security procedures, for example, in the aftermath of a terrorist incident, could cause delays in our goods reaching market.</P>
<P align="justify">
<B>Factors or circumstances that could increase our effective income tax rate</B></P>
<P align="justify">
The Company benefits from a low overall effective corporate tax rate as the majority of its profits are earned and the majority of its sales, marketing and manufacturing operations are 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 valuing its income tax assets and liabilities. Depending on the ultimate outcome of any such audit, there may be a material adverse impact on the
Company&#146;s financial position, results of operations and cash flows. In addition, if the Company were to receive a tax
reassessment by a taxation authority prior to the ultimate resolution of an audit, the Company could be required to submit an advance deposit on the amount reassessed. </P>
<P align="right">
GILDAN 2011 REPORT TO SHAREHOLDERS P.41</P>

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<P align="justify">
<br>
The Company&#146;s overall effective income tax rate may also be adversely affected by the following: unanticipated changes to current domestic laws in the countries in which the Company operates; changes to the income tax treaties the Company
currently relies on; changes in the location of the Company&#146;s operations that would result in a higher proportion of taxable income being reported in higher tax rate jurisdictions; an increase in income tax rates; and, changes to free trade and
export processing zone rules in certain countries where the Company is currently not subject to income tax. </P>
<P align="justify">
We have not recognized a future income tax liability for the undistributed profits of our subsidiaries,
as we currently have no intention to repatriate these profits. If our expectations or
intentions change in the future, we could be required to recognize a charge to earnings for the tax liability relating to the undistributed profits of our subsidiaries, which could also result in a corresponding cash outflow in the years in which
the earnings would be repatriated. As at October 2, 2011, the estimated future taxes payable that would result in the event of a full repatriation of these undistributed profits is approximately &#36;22 million. </P>
<P align="justify">
<B>Compliance with environmental, health and safety regulations </B></P>
<P align="justify">
We are subject to various federal, state and local environmental and occupational health and safety laws and regulations in the jurisdictions in which we operate concerning, among other things, wastewater discharges, storm water flows, and solid
waste disposal. Our manufacturing plants generate small quantities of hazardous waste, which are either recycled or disposed of off-site. As part of our Corporate Environmental Policy, we monitor, control and manage environmental issues through
policies including, but not limited to, the recycling and creation of measures for waste prevention, minimization, recovery and treatment at all stages of the production cycle including the off-site disposal of any hazardous waste. We believe that
we are in compliance in all material respects with the regulatory requirements of those jurisdictions in which our facilities are located.</P>
<P align="justify">
In line with our commitment to the environment as well as to the health and safety of our employees we incur capital and other expenditures each year that are aimed at achieving compliance with current environmental standards. For fiscal 2011, the
requirements with regard to environmental protection did not have a significant financial or operational impact on the Company's capital expenditures, earnings and competitive position. Although we do not expect that the amount of these expenditures
in the future will have a material adverse effect on our operations, financial condition or liquidity, future changes in federal, state, or local regulations, interpretations of existing regulations or the discovery of currently unknown problems or
conditions may result in substantial additional environmental remediation expenditures, negative publicity which could harm our reputation, or a disruption to our supply chain, which could have a material adverse effect on our business. Although we
believe that we are in compliance in all material respects with the regulatory requirements of the jurisdictions in which our facilities are located, the extent of our liability, if any, for past failures to comply with laws, regulations and permits
applicable to our operations cannot be reasonably determined. </P>
<P align="justify">
<B>Our significant reliance on our information systems for our business operations </B></P>
<P align="justify">
We place significant reliance on our information systems, including our JD Edwards Enterprise Resource Planning (ERP) 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. </P>
<P align="justify"><b>Adverse changes in third party licensing arrangements and licensed brands </b></P>
<p align="justify"> As a result of the acquisition of Gold Toe Moretz, a number of products are designed, manufactured, sourced and sold under trademarks that we license from third parties, under contractual licensing relationships that are subject to periodic renewal,
  such as Under Armour&reg; and New Balance&reg; branded socks. Because we do not control the brands licensed to us, our licensors could make changes to their brands or business models that could result in a significant downturn in a brand&#146;s
  business, adversely affecting our sales and results of operations. If any licensor fails to adequately maintain or protect their trademarks, engages in behaviour with respect to the licensed marks that would cause us reputational harm, or if any of
  the brands licensed to us violates the trademark rights of a third party or are deemed to be invalid or unenforceable, we could experience a significant downturn in that brand&#146;s business, adversely affecting our sales and results of operations,
  and we may be required to expend significant amounts on public relations, advertising and, possibly, legal fees. In addition, if any of these licensors chooses to cease licensing these brands to us in the future, our sales and results of operations
  would be adversely affected.</p>
<P align="right">
GILDAN 2011 REPORT TO SHAREHOLDERS P.42</P>

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    <p align="right"><font size="2">MANAGEMENT&#146;S DISCUSSION AND ANALYSIS</font></td>
  </tr>
</table>
<P align="justify">
<B>Our ability to protect our intellectual property rights </B></P>
<P align="justify">
Our trademarks are important to our marketing efforts and have substantial value. We aggressively protect these trademarks from infringement and dilution through appropriate measures, including court actions and administrative proceedings; however,
the actions we have taken to establish and protect our trademarks and other intellectual property may not be adequate. We cannot be certain that others will not imitate our products or infringe our intellectual property rights. Infringement or
counterfeiting of our products could diminish the value of our brands or otherwise adversely affect our business. In addition, unilateral actions in the United States or other countries, such as changes to or the repeal of laws recognizing trademark
or other intellectual property rights, could have an impact on our ability to enforce those rights.</P>
<P align="justify">
From time to time we are involved in opposition and cancellation proceedings with respect to our intellectual property, which could affect its validity, enforceability and use. The value of our intellectual property could diminish if others assert
rights in, or ownership of, or oppose our applications to register, our trademarks and other intellectual property rights. In some cases, there may be trademark owners who have prior rights to our trademarks or to similar trademarks, which could
harm our ability to sell products under or register such trademarks. In addition, we have registered trademarks in certain foreign jurisdictions and the laws of foreign countries may not protect our intellectual property rights to the same extent as
do the laws of the United States. We do not own trademark rights to all of our brands in all jurisdictions, which may limit the future sales growth of certain branded products in such jurisdictions. Furthermore, actions we have taken to protect our
intellectual property rights may not be adequate to prevent others from seeking to invalidate our trademarks or block sales of our products as a violation of the trademarks and intellectual property rights of others.</P>
<P align="justify">
In some cases, litigation may be necessary to protect our trademarks and other intellectual property rights, to enforce our rights or defend against claims by third parties alleging that we infringe, dilute, misappropriate or otherwise violate third
party trademark or other intellectual property rights. Any litigation or claims brought by or against us, whether with or without merit, and whether successful or not, could result in substantial costs and diversion of our resources, which could
adversely affect our business, financial condition, results of operation and cash flows. Any intellectual property litigation claims against us could result in the loss or compromise of our intellectual property rights, could subject us to
significant liabilities, require us to seek licenses on unfavorable terms, if available at all, and/or require us to rebrand our products and services, any of which could adversely affect our business, financial condition, results of operations and
cash flows. </P>
<P align="justify">
<B>Changes in our relationship with our employees or changes to domestic and foreign employment regulations </B></P>
<P align="justify">
We employ approximately 29,500 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 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.</P>
<P align="justify">  Our employees are currently not party to any collective bargaining agreement. In connection with its textile operations in the Dominican Republic, the Company was previously a party to a collective bargaining agreement with a union registered with
  the Dominican Ministry of Labor, covering approximately 900 employees. The collective bargaining agreement was terminated in February 2011 upon the mutual consent of the Company and the union, although it is still claiming to represent a majority of
  the factory workers. Notwithstanding the termination of the agreement, the Company is continuing to provide all of the benefits to the employees covered by the original agreement. A second union is also claiming that it represents the majority of
  the workers at the plant and has filed a third-party complaint alleging violation of freedom of association with the Fair Labor Association (FLA), an international labour standards monitor of which Gildan is a participating company. The Company
  collaborated with the FLA in a verification of the majority representation claim of the second union and has now agreed to enter into negotiations with this union for the purposes of completing a collective bargaining agreement. </P>
<P align="right">
GILDAN 2011 REPORT TO SHAREHOLDERS P.43</P>

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<P align="justify">
&nbsp;<br>
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 or any of our third-party contractors&#146; facilities, this could adversely affect the productivity and cost structure of the Company&#146;s manufacturing operations.</P>
<P align="justify">
<B>Negative publicity as a result of violation in local labour laws or international labour standards, unethical labour and other business practices</B></P>
<P align="justify">
We are committed to ensuring that all of our manufacturing facilities comply with our strict internal Code of Conduct, local and international laws, and the codes and principles to which we subscribe, including those of Worldwide Responsible
Accredited Production (WRAP) and the Fair Labor Association (FLA). While the majority of our manufacturing operations are conducted through company-owned facilities, we also utilize third-party contractors, which we do not control, 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 harm our reputation and result in a loss of sales. </P>
<P align="justify">
In September 2011, a new industry-wide union was formed in Haiti to represent workers in the apparel and textile sector. Since the formation of the union, various non-governmental organizations have alleged that six members of the executive
committee representing the union have been fired from their employment due to their union activity. Four of the six individuals in question work for one of the dedicated third party contractor facilities, which supply the Company with sewing
production. An investigation recently completed by the Better Work program in Haiti concluded that the workers rights to freedom of association have been violated. Better Work is a program sponsored by the International Labor Organization (ILO) and
the International Finance Corporation (IFC) with the goal of improving compliance with labour standards. On November 28, 2011, the Company requested that the third party contractor in question reinstate the four employees who were fired for
expressing their rights to freedom of association with full back-pay to the date of dismissal and no loss of seniority. </P>
<P align="justify">
<B>Our dependence on key management and our ability to attract and/or retain key personnel </B></P>
<P align="justify">
Our success depends upon the continued contributions of our key management, some of whom have unique talents and experience and would be difficult to replace in short order. The loss or interruption of the services of a key executive could have a
material adverse effect on our business during the transitional period that would be required to restructure the organization or for a successor to assume the responsibilities of the key management position. Our future success will also depend on
our ability to
attract and retain key managers, sales people and others. We may not be able to attract or retain these employees, which could adversely affect our business. </P>
<P align="justify"><b>Changes to and failure to comply with consumer product safety laws </b></P>
<p align="justify"> 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 Federal
  Hazardous Substances Act, 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. 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 child care articles, including plasticized components of children&#146;s
  sleepwear. As of December 31, 2011, when the Consumer Product Safety Commission (the &#147;CPSC&#148;) lifts its stay of enforcement with respect to phthalate testing and certification, the CPSC should be actively enforcing all of the requirements
  listed above. In addition, we are also subject to similar laws and regulations in the various individual states in which our products are sold. </p>
<P align="right">
GILDAN 2011 REPORT TO SHAREHOLDERS P.44</P>

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<P align="justify">&nbsp;<br>
  In Canada, we are subject to similar laws and regulations, the most significant of which are the Hazardous Products Act (the &#147;HPA&#148;) and the Canada Consumer Product Safety Act (the &#147;CCPSA&#148;). The CCPSA came into force on June 20,
2011. It is aimed at emphasizing industry's responsibility to provide safe products, strengthening enforcement authorities, providing more and better information for the public, improving the safety of imported products, ensuring better record
keeping, and instituting mandatory reporting. Regulations currently in place under the HPA will be incorporated into the CCPSA or, where necessary because of structural differences between the two statutes, replaced by new CCPSA regulations. For
example, the CCPSA&#146;s Children&#146;s Sleepwear Regulations replaced the HPA&#146;s Hazardous Products (Children's Sleepwear) Regulations. The CCPSA also provides for new regulations, such as the textile flammability regulations. As under U.S.
laws, surface coatings and phthalates are also regulated under the CCPSA.</P>
<P align="justify">
In the European Union, we are also subject to product safety regulations, the most significant of which are imposed pursuant to the General Product Safety Directive. We are also subject to similar laws and regulations in the other jurisdictions in
which our products are sold.</P>
<P align="justify">
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. Non-compliance with applicable product safety laws and regulations may
result in substantial fines and penalties, costs related to the recall, replacement and disposal of non-compliant products, as well as negative publicity which could harm our reputation and result in a loss of sales. 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 consumer product safety laws applicable to our operations, which are not known at
this time, cannot be reasonably determined. </P>
<P align="justify">
<B><font size="3">DEFINITION AND RECONCILIATION OF NON-GAAP MEASURES </font> </B></P>
<P align="justify">
We use non-GAAP measures to assess our operating performance and financial condition. The terms and definitions of the non-GAAP measures used in this report and a reconciliation of each non-GAAP measure to the most directly comparable GAAP measure
are provided below. The non-GAAP measures are presented on a consistent basis for all periods presented in this annual MD&amp;A. These non-GAAP measures do not have any standardized meanings prescribed by Canadian GAAP and are therefore unlikely to
be comparable to similar measures presented by other companies. Accordingly, they should not be considered in isolation.</P>
<P align="justify"><b>Adjusted Net Earnings and Adjusted Diluted EPS</b><br>
</P>
<p align=justify>To measure our performance from one period to the next, without
  the variations caused by the impacts of restructuring and acquisition-related
  costs, net of related income tax recoveries, 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. </p>
<P align="right">
GILDAN 2011 REPORT TO SHAREHOLDERS P.45</P>

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&nbsp;<br>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left><I>(in $ millions,
      except per share amounts)</I> </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right width="10%">2011
    </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left
    width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right width="10%">2010
    </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left
    width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right width="10%">2009
    </TD>
    <TD align=left width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Net sales </TD>
    <TD align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>1,726.0 </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>1,311.5 </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>1,038.3 </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>Cost of sales </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="10%">1,288.3 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="10%">947.2
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="10%">808.0
    </TD>
    <TD align=left width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Gross profit </TD>
    <TD align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>437.7 </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>364.3 </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>230.3 </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>Selling, general and administrative expenses </TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="10%">199.1 </TD>
    <TD align=left width="2%">&nbsp;</TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="10%">154.7 </TD>
    <TD align=left width="2%">&nbsp;</TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="10%">134.8 </TD>
    <TD align=left width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      bgColor=#e6efff>Restructuring and acquisition-related costs </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="10%"
    bgColor=#e6efff>8.5 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="10%"
    bgColor=#e6efff>8.7 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="10%"
    bgColor=#e6efff>6.2 </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>Operating income </TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="10%">230.1 </TD>
    <TD align=left width="2%">&nbsp;</TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="10%">200.9 </TD>
    <TD align=left width="2%">&nbsp;</TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="10%">89.3 </TD>
    <TD align=left width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Financial expense (income), net </TD>
    <TD align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>5.4 </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>0.8 </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>(0.3</TD>
    <TD align=left width="2%" bgColor=#e6efff>) </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>Non-controlling
      interest in consolidated joint venture </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="10%">0.5
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="10%">3.8
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="10%">0.1
    </TD>
    <TD align=left width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Earnings before income taxes </TD>
    <TD align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>224.2 </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>196.3 </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>89.5 </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>Income taxes </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
    width="10%">(15.7</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%">) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
    width="10%">(1.9</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%">) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
    width="10%">(5.8</TD>
    <TD align=left width="2%">) </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left
      bgColor=#e6efff>Net earnings </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right width="10%"
    bgColor=#e6efff>239.9 </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right width="10%"
    bgColor=#e6efff>198.2 </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right width="10%"
    bgColor=#e6efff>95.3 </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>Adjustments for: </TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=left width="10%">&nbsp; </TD>
    <TD align=left width="2%">&nbsp;</TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=left width="10%">&nbsp; </TD>
    <TD align=left width="2%">&nbsp;</TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=left width="10%">&nbsp; </TD>
    <TD align=left width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>&nbsp;Restructuring and acquisition-related
      costs </TD>
    <TD align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>8.5 </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>8.7 </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>6.2 </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;Income tax
      recovery on restructuring and acquisition-related costs </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
    width="10%">(2.9</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%">) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
    width="10%">(3.3</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%">) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
    width="10%">(1.8</TD>
    <TD align=left width="2%">) </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left
      bgColor=#e6efff>Adjusted net earnings </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right width="10%"
    bgColor=#e6efff>245.5 </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right width="10%"
    bgColor=#e6efff>203.6 </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right width="10%"
    bgColor=#e6efff>99.7 </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>Basic EPS </TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="10%">1.97 </TD>
    <TD align=left width="2%">&nbsp;</TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="10%">1.64 </TD>
    <TD align=left width="2%">&nbsp;</TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="10%">0.79 </TD>
    <TD align=left width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Diluted EPS </TD>
    <TD align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>1.96 </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>1.63 </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>0.79 </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left>Adjusted diluted
      EPS </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right width="10%">2.01
    </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left
    width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right width="10%">1.67
    </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left
    width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right width="10%">0.82
    </TD>
    <TD align=left width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#ffffff colSpan=3>Certain minor rounding variances
      exist between the financial statements and this summary. </TD>
    <TD align=left width="2%" bgColor=#ffffff>&nbsp;</TD>
    <TD align=left width="1%" bgColor=#ffffff>&nbsp;</TD>
    <TD align=left width="10%" bgColor=#ffffff>&nbsp; </TD>
    <TD align=left width="2%" bgColor=#ffffff>&nbsp;</TD>
    <TD align=left width="1%" bgColor=#ffffff>&nbsp;</TD>
    <TD align=left width="10%" bgColor=#ffffff>&nbsp; </TD>
    <TD align=left width="2%" bgColor=#ffffff>&nbsp;</TD></TR></TABLE>
<P align=justify><B>EBITDA </B></P>
<P align=justify>EBITDA is calculated as earnings before interest, taxes and
depreciation and amortization and excludes the impact of restructuring and
acquisition-related costs 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. </P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left><I>(in $
      millions)</I> </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right width="10%">2011
    </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left
    width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right width="10%">2010
    </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left
    width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right width="10%">2009
    </TD>
    <TD align=left width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Net earnings </TD>
    <TD align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>239.9 </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>198.2 </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>95.3 </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>Restructuring and acquisition-related costs </TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="10%">8.5 </TD>
    <TD align=left width="2%">&nbsp;</TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="10%">8.7 </TD>
    <TD align=left width="2%">&nbsp;</TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="10%">6.2 </TD>
    <TD align=left width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Depreciation and amortization </TD>
    <TD align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>79.8 </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>66.5 </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>65.4 </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>Variation of depreciation included in inventories </TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="10%">(3.4</TD>
    <TD align=left width="2%">) </TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="10%">2.7 </TD>
    <TD align=left width="2%">&nbsp;</TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="10%">(2.4</TD>
    <TD align=left width="2%">) </TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Interest expense, net </TD>
    <TD align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>2.9 </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>0.4 </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>1.8 </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>Income taxes </TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="10%">(15.7</TD>
    <TD align=left width="2%">) </TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="10%">(1.9</TD>
    <TD align=left width="2%">) </TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="10%">(5.8</TD>
    <TD align=left width="2%">) </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      bgColor=#e6efff>Non-controlling interest of consolidated joint venture </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="10%"
    bgColor=#e6efff>0.5 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="10%"
    bgColor=#e6efff>3.8 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="10%"
    bgColor=#e6efff>0.1 </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left>EBITDA </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right width="10%">312.5
    </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left
    width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right width="10%">278.4
    </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left
    width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right width="10%">160.6
    </TD>
    <TD align=left width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#FFFFFF colSpan=3>Certain minor rounding variances
      exist between the financial statements and this summary. </TD>
    <TD align=left width="2%" bgColor=#FFFFFF>&nbsp;</TD>
    <TD align=left width="1%" bgColor=#FFFFFF>&nbsp;</TD>
    <TD align=left width="10%" bgColor=#FFFFFF>&nbsp; </TD>
    <TD align=left width="2%" bgColor=#FFFFFF>&nbsp;</TD>
    <TD align=left width="1%" bgColor=#FFFFFF>&nbsp;</TD>
    <TD align=left width="10%" bgColor=#FFFFFF>&nbsp; </TD>
    <TD align=left width="2%" bgColor=#FFFFFF>&nbsp;</TD></TR></TABLE>
<P align=right>GILDAN 2011 REPORT TO SHAREHOLDERS P.46</P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<!--$$/page=-->
<table border="0" cellpadding="0" cellspacing="0" style="border-collapse: collapse" bordercolor="#111111" width="100%">
  <tr>
    <td width="50%"><IMG src="mdax2x1.jpg" border=0 width="96" height="21"> </td>
    <td width="50%"><p align="right"><font size="2">MANAGEMENT&#146;S DISCUSSION AND ANALYSIS</font></td>
  </tr>
</table>
<P align=justify><B><font size="3"></font></B></P>
<p align=justify><b>Free Cash Flow</b><br>
</p>
<p align=justify>Free cash flow is defined as cash from operating activities
  including net changes in non-cash working capital balances, less cash flow used
  in investing activities excluding business acquisitions. We consider free cash
  flow to be an important indicator of the financial strength and performance of
  our business, because it shows how much cash is available after capital
  expenditures to repay debt and to reinvest in our business, 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. </p>
<table
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellspacing=0 cellpadding=0 width="100%" border=0>
  <tr valign=top>
    <td style="BORDER-BOTTOM: #000000 2px solid" align=left><i>(in $
      millions)</i> </td>
    <td style="BORDER-BOTTOM: #000000 2px solid" align=left
    width="1%">&nbsp;</td>
    <td style="BORDER-BOTTOM: #000000 2px solid" align=right width="10%">2011 </td>
    <td style="BORDER-BOTTOM: #000000 2px solid" align=left
    width="2%">&nbsp;</td>
    <td style="BORDER-BOTTOM: #000000 2px solid" align=left
    width="1%">&nbsp;</td>
    <td style="BORDER-BOTTOM: #000000 2px solid" align=right width="10%">2010 </td>
    <td style="BORDER-BOTTOM: #000000 2px solid" align=left
    width="2%">&nbsp;</td>
    <td style="BORDER-BOTTOM: #000000 2px solid" align=left
    width="1%">&nbsp;</td>
    <td style="BORDER-BOTTOM: #000000 2px solid" align=right width="10%">2009 </td>
    <td align=left width="2%">&nbsp;</td>
  </tr>
  <tr valign=top>
    <td align=left bgcolor=#e6efff>Cash flows from operating activities </td>
    <td align=left width="1%" bgcolor=#e6efff>&nbsp;</td>
    <td align=right width="10%" bgcolor=#e6efff>181.6 </td>
    <td align=left width="2%" bgcolor=#e6efff>&nbsp;</td>
    <td align=left width="1%" bgcolor=#e6efff>&nbsp;</td>
    <td align=right width="10%" bgcolor=#e6efff>301.6 </td>
    <td align=left width="2%" bgcolor=#e6efff>&nbsp;</td>
    <td align=left width="1%" bgcolor=#e6efff>&nbsp;</td>
    <td align=right width="10%" bgcolor=#e6efff>169.2 </td>
    <td align=left width="2%" bgcolor=#e6efff>&nbsp;</td>
  </tr>
  <tr valign=top>
    <td align=left>Cash flows used in investing activities </td>
    <td align=left width="1%">&nbsp;</td>
    <td align=right width="10%">(523.9</td>
    <td align=left width="2%">) </td>
    <td align=left width="1%">&nbsp;</td>
    <td align=right width="10%">(141.2</td>
    <td align=left width="2%">) </td>
    <td align=left width="1%">&nbsp;</td>
    <td align=right width="10%">(34.2</td>
    <td align=left width="2%">) </td>
  </tr>
  <tr valign=top>
    <td align=left bgcolor=#e6efff>Adjustments for: </td>
    <td align=left width="1%" bgcolor=#e6efff>&nbsp;</td>
    <td align=left width="10%" bgcolor=#e6efff>&nbsp;</td>
    <td align=left width="2%" bgcolor=#e6efff>&nbsp;</td>
    <td align=left width="1%" bgcolor=#e6efff>&nbsp;</td>
    <td align=left width="10%" bgcolor=#e6efff>&nbsp;</td>
    <td align=left width="2%" bgcolor=#e6efff>&nbsp;</td>
    <td align=left width="1%" bgcolor=#e6efff>&nbsp;</td>
    <td align=left width="10%" bgcolor=#e6efff>&nbsp;</td>
    <td align=left width="2%" bgcolor=#e6efff>&nbsp;</td>
  </tr>
  <tr valign=top>
    <td align=left>&nbsp;Business acquisitions </td>
    <td align=left width="1%">&nbsp;</td>
    <td align=right width="10%">349.6 </td>
    <td align=left width="2%">&nbsp;</td>
    <td align=left width="1%">&nbsp;</td>
    <td align=right width="10%">15.8 </td>
    <td align=left width="2%">&nbsp;</td>
    <td align=left width="1%">&nbsp;</td>
    <td align=right width="10%">1.2 </td>
    <td align=left width="2%">&nbsp;</td>
  </tr>
  <tr valign=top>
    <td style="BORDER-BOTTOM: #000000 1px solid" align=left
      bgcolor=#e6efff>&nbsp;Restricted cash reimbursed related to a business
      acquisition </td>
    <td style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    bgcolor=#e6efff>&nbsp;</td>
    <td style="BORDER-BOTTOM: #000000 1px solid" align=right width="10%"
    bgcolor=#e6efff>- </td>
    <td style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    bgcolor=#e6efff>&nbsp;</td>
    <td style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    bgcolor=#e6efff>&nbsp;</td>
    <td style="BORDER-BOTTOM: #000000 1px solid" align=right width="10%"
    bgcolor=#e6efff>(0.3</td>
    <td style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    bgcolor=#e6efff>) </td>
    <td style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    bgcolor=#e6efff>&nbsp;</td>
    <td style="BORDER-BOTTOM: #000000 1px solid" align=right width="10%"
    bgcolor=#e6efff>(4.0</td>
    <td align=left width="2%" bgcolor=#e6efff>) </td>
  </tr>
  <tr valign=top>
    <td style="BORDER-BOTTOM: #000000 2px solid" align=left>Free cash flow </td>
    <td style="BORDER-BOTTOM: #000000 2px solid" align=left
    width="1%">&nbsp;</td>
    <td style="BORDER-BOTTOM: #000000 2px solid" align=right width="10%">7.3 </td>
    <td style="BORDER-BOTTOM: #000000 2px solid" align=left
    width="2%">&nbsp;</td>
    <td style="BORDER-BOTTOM: #000000 2px solid" align=left
    width="1%">&nbsp;</td>
    <td style="BORDER-BOTTOM: #000000 2px solid" align=right width="10%">175.9 </td>
    <td style="BORDER-BOTTOM: #000000 2px solid" align=left
    width="2%">&nbsp;</td>
    <td style="BORDER-BOTTOM: #000000 2px solid" align=left
    width="1%">&nbsp;</td>
    <td style="BORDER-BOTTOM: #000000 2px solid" align=right width="10%">132.2 </td>
    <td align=left width="2%">&nbsp;</td>
  </tr>
  <tr valign=top>
    <td align=left bgcolor=#FFFFFF colspan=3>Certain minor rounding variances
      exist between the financial statements and this summary. </td>
    <td align=left width="2%" bgcolor=#FFFFFF>&nbsp;</td>
    <td align=left width="1%" bgcolor=#FFFFFF>&nbsp;</td>
    <td align=left width="10%" bgcolor=#FFFFFF>&nbsp;</td>
    <td align=left width="2%" bgcolor=#FFFFFF>&nbsp;</td>
    <td align=left width="1%" bgcolor=#FFFFFF>&nbsp;</td>
    <td align=left width="10%" bgcolor=#FFFFFF>&nbsp;</td>
    <td align=left width="2%" bgcolor=#FFFFFF>&nbsp;</td>
  </tr>
</table>
<p align=justify><b>Total Indebtedness and Net Indebtedness (Cash in Excess of
  Total Indebtedness)</b></p>
<p align=justify>We consider total indebtedness and net indebtedness (cash in
  excess of total indebtedness) to be important indicators of the financial
  leverage of the Company. </p>
<table
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellspacing=0 cellpadding=0 width="100%" border=0>
  <tr valign=top>
    <td style="BORDER-BOTTOM: #000000 2px solid" align=left><i>(in $
      millions)</i> </td>
    <td style="BORDER-BOTTOM: #000000 2px solid" align=left
    width="1%">&nbsp;</td>
    <td style="BORDER-BOTTOM: #000000 2px solid" align=right width="10%">2011 </td>
    <td style="BORDER-BOTTOM: #000000 2px solid" align=left
    width="2%">&nbsp;</td>
    <td style="BORDER-BOTTOM: #000000 2px solid" align=left
    width="1%">&nbsp;</td>
    <td style="BORDER-BOTTOM: #000000 2px solid" align=right width="10%">2010 </td>
    <td style="BORDER-BOTTOM: #000000 2px solid" align=left
    width="2%">&nbsp;</td>
    <td style="BORDER-BOTTOM: #000000 2px solid" align=left
    width="1%">&nbsp;</td>
    <td style="BORDER-BOTTOM: #000000 2px solid" align=right width="10%">2009 </td>
    <td align=left width="2%">&nbsp;</td>
  </tr>
  <tr valign=top>
    <td align=left bgcolor=#e6efff>Current portion of long-term debt </td>
    <td align=left width="1%" bgcolor=#e6efff>&nbsp;</td>
    <td align=right width="10%" bgcolor=#e6efff>- </td>
    <td align=left width="2%" bgcolor=#e6efff>&nbsp;</td>
    <td align=left width="1%" bgcolor=#e6efff>&nbsp;</td>
    <td align=right width="10%" bgcolor=#e6efff>- </td>
    <td align=left width="2%" bgcolor=#e6efff>&nbsp;</td>
    <td align=left width="1%" bgcolor=#e6efff>&nbsp;</td>
    <td align=right width="10%" bgcolor=#e6efff>2.8 </td>
    <td align=left width="2%" bgcolor=#e6efff>&nbsp;</td>
  </tr>
  <tr valign=top>
    <td style="BORDER-BOTTOM: #000000 1px solid" align=left>Long-term debt </td>
    <td style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="1%">&nbsp;</td>
    <td style="BORDER-BOTTOM: #000000 1px solid" align=right width="10%">209.0 </td>
    <td style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="2%">&nbsp;</td>
    <td style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="1%">&nbsp;</td>
    <td style="BORDER-BOTTOM: #000000 1px solid" align=right width="10%">- </td>
    <td style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="2%">&nbsp;</td>
    <td style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="1%">&nbsp;</td>
    <td style="BORDER-BOTTOM: #000000 1px solid" align=right width="10%">1.6 </td>
    <td align=left width="2%">&nbsp;</td>
  </tr>
  <tr valign=top>
    <td align=left bgcolor=#e6efff>Total indebtedness </td>
    <td align=left width="1%" bgcolor=#e6efff>&nbsp;</td>
    <td align=right width="10%" bgcolor=#e6efff>209.0 </td>
    <td align=left width="2%" bgcolor=#e6efff>&nbsp;</td>
    <td align=left width="1%" bgcolor=#e6efff>&nbsp;</td>
    <td align=right width="10%" bgcolor=#e6efff>- </td>
    <td align=left width="2%" bgcolor=#e6efff>&nbsp;</td>
    <td align=left width="1%" bgcolor=#e6efff>&nbsp;</td>
    <td align=right width="10%" bgcolor=#e6efff>4.4 </td>
    <td align=left width="2%" bgcolor=#e6efff>&nbsp;</td>
  </tr>
  <tr valign=top>
    <td style="BORDER-BOTTOM: #000000 1px solid" align=left>Cash and cash
      equivalents </td>
    <td style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="1%">&nbsp;</td>
    <td style="BORDER-BOTTOM: #000000 1px solid" align=right
    width="10%">(88.8</td>
    <td style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%">) </td>
    <td style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="1%">&nbsp;</td>
    <td style="BORDER-BOTTOM: #000000 1px solid" align=right
    width="10%">(258.4</td>
    <td style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%">) </td>
    <td style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="1%">&nbsp;</td>
    <td style="BORDER-BOTTOM: #000000 1px solid" align=right
    width="10%">(99.7</td>
    <td align=left width="2%">) </td>
  </tr>
  <tr valign=top>
    <td style="BORDER-BOTTOM: #000000 2px solid" align=left
      bgcolor=#e6efff>Net indebtedness (Cash in excess of total indebtedness) </td>
    <td style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
    bgcolor=#e6efff>&nbsp;</td>
    <td style="BORDER-BOTTOM: #000000 2px solid" align=right width="10%"
    bgcolor=#e6efff>120.2 </td>
    <td style="BORDER-BOTTOM: #000000 2px solid" align=left width="2%"
    bgcolor=#e6efff>&nbsp;</td>
    <td style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
    bgcolor=#e6efff>&nbsp;</td>
    <td style="BORDER-BOTTOM: #000000 2px solid" align=right width="10%"
    bgcolor=#e6efff>(258.4</td>
    <td style="BORDER-BOTTOM: #000000 2px solid" align=left width="2%"
    bgcolor=#e6efff>) </td>
    <td style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
    bgcolor=#e6efff>&nbsp;</td>
    <td style="BORDER-BOTTOM: #000000 2px solid" align=right width="10%"
    bgcolor=#e6efff>(95.3</td>
    <td align=left width="2%" bgcolor=#e6efff>) </td>
  </tr>
  <tr valign=top>
    <td align=left colspan=3>Certain minor rounding variances exist between
      the financial statements and this summary. </td>
    <td align=left width="2%">&nbsp;</td>
    <td align=left width="1%">&nbsp;</td>
    <td align=left width="10%">&nbsp;</td>
    <td align=left width="2%">&nbsp;</td>
    <td align=left width="1%">&nbsp;</td>
    <td align=left width="10%">&nbsp;</td>
    <td align=left width="2%">&nbsp;</td>
  </tr>
</table>
<P align=right>GILDAN 2011 REPORT TO SHAREHOLDERS P.47</P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
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    <td width="50%">

<IMG src="mdax2x1.jpg" border=0 width="96" height="21"> </td>
    <td width="50%">
    <p align="right"><font size="2">MANAGEMENT&#146;S DISCUSSION AND ANALYSIS</font></td>
  </tr>
</table>
<P align=justify><B><font size="3">FORWARD-LOOKING STATEMENTS</font></B></P>
<P align=justify>Certain statements included in this MD&amp;A constitute
&#147;forward-looking statements&#148; within the meaning of the U.S. <I>Private
Securities Litigation Reform Act of 1995</I> and Canadian securities legislation
and regulations, and are subject to important risks, uncertainties and
assumptions. This forward-looking information includes, amongst others,
information with respect to our objectives and the strategies to achieve these
objectives, as well as information with respect to our beliefs, plans,
expectations, anticipations, estimates and intentions. Forward-looking
statements generally can be identified by the use of conditional or
forward-looking terminology such as &#147;may&#148;, &#147;will&#148;, &#147;expect&#148;, &#147;intend&#148;,
&#147;estimate&#148;, &#147;project&#148;, &#147;assume&#148;, &#147;anticipate&#148;, &#147;plan&#148;, &#147;foresee&#148;, &#147;believe&#148; or
&#147;continue&#148; or the negatives of these terms or variations of them or similar
terminology. We refer you to the Company&#146;s filings with the Canadian securities
regulatory authorities and the U.S. Securities and Exchange Commission, as well
as the &#147;Risks and Uncertainties&#148; section and the risks described under the
&#147;Critical Accounting Estimates&#148; and &#147;Financial Risk Management&#148; sections of this
MD&amp;A for a discussion of the various factors that may affect the Company&#146;s
future results. Material factors and assumptions that were applied in drawing a
conclusion or making a forecast or projection are also set out throughout this
document.</P>
<P align=justify>Forward-looking information is inherently uncertain and the
results or events predicted in such forward-looking information may differ
materially from actual results or events. Material factors, which could cause
actual results or events to differ materially from a conclusion, forecast or
projection in such forward-looking information, include, but are not limited to:
</P>
<P align=right>GILDAN 2011 REPORT TO SHAREHOLDERS P.48</P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>


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  <tr>
    <td width="50%">

<IMG src="mdax2x1.jpg" border=0 width="96" height="21"> </td>
    <td width="50%">
    <p align="right"><font size="2">MANAGEMENT&#146;S DISCUSSION AND ANALYSIS</font></td>
  </tr>
</table>
<P align="justify">
<BR>
</P>
<UL style="text-align:justify;">
<LI>
<p style="margin-top: 0; margin-bottom: 12">our ability to implement our growth strategies and plans, including achieving market share gains, implementing cost reduction initiatives and completing and successfully integrating acquisitions;</LI>
<LI>
<p style="margin-top: 0; margin-bottom: 12">the intensity of competitive activity and our ability to compete effectively;</LI>
<LI>
<p style="margin-top: 0; margin-bottom: 12">adverse changes in general economic and financial conditions globally or in one or more of the markets we serve;</LI>
<LI>
<p style="margin-top: 0; margin-bottom: 12">our reliance on a small number of significant customers;</LI>
<LI>
<p style="margin-top: 0; margin-bottom: 12">the fact that our customers do not commit contractually to minimum quantity purchases;</LI>
<LI>
<p style="margin-top: 0; margin-bottom: 12">our ability to anticipate changes in consumer preferences and trends;</LI>
<LI>
<p style="margin-top: 0; margin-bottom: 12">our ability to manage production and inventory levels effectively in relation to changes in customer demand;</LI>
<LI>
<p style="margin-top: 0; margin-bottom: 12">fluctuations and volatility in the price of raw materials used to manufacture our products, such as cotton and polyester fibres;</LI>
<LI>
<p style="margin-top: 0; margin-bottom: 12">our dependence on key suppliers and our ability to maintain an uninterrupted supply of raw materials and finished goods;</LI>
<LI>
<p style="margin-top: 0; margin-bottom: 12">the impact of climate, political, social and economic risks in the countries in which we operate or from which we source production;</LI>
<LI>
<p style="margin-top: 0; margin-bottom: 12">disruption to manufacturing and distribution activities due to labour disruptions, political instability, bad weather, natural disasters, pandemics and other unforeseen adverse events;</LI>
<LI>
<p style="margin-top: 0; margin-bottom: 12">changes to international trade legislation that the Company is currently relying on in conducting its manufacturing operations or the application of safeguards thereunder;</LI>
<LI>
<p style="margin-top: 0; margin-bottom: 12">factors or circumstances that could increase our effective income tax rate, including the outcome of any tax audits or changes to applicable tax laws or treaties;</LI>
<LI>
<p style="margin-top: 0; margin-bottom: 12">compliance with applicable environmental, tax, trade, employment, health and safety, and other laws and regulations in the jurisdictions in which we operate;</LI>
<LI>
<p style="margin-top: 0; margin-bottom: 12">our significant reliance on computerized information systems for our business operations;</LI>
<LI>
<p style="margin-top: 0; margin-bottom: 12">changes in our relationship with our employees or changes to domestic and foreign employment laws and regulations;</LI>
<LI>
<p style="margin-top: 0; margin-bottom: 12">negative publicity as a result of violation of local labour laws or international labour standards, or unethical labour or other business practices by the Company or one of its third-party contractors;</LI>
<LI>
<p style="margin-top: 0; margin-bottom: 12">our dependence on key management and our ability to attract and/or retain key personnel;</LI>
<LI>
<p style="margin-top: 0; margin-bottom: 12">changes to and failure to comply with consumer product safety laws and regulations;</LI>
<LI>
<p style="margin-top: 0; margin-bottom: 12">adverse changes in third party licensing arrangements and licensed brands;</LI>
<LI>
<p style="margin-top: 0; margin-bottom: 12">our ability to protect our intellectual property rights;</LI>
<LI>
<p style="margin-top: 0; margin-bottom: 12">changes in accounting policies and estimates; and</LI>
<LI>
<p style="margin-top: 0; margin-bottom: 12">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.</LI>
</UL>
<P align="justify">
These factors may cause the Company&#146;s actual performance and financial results in future periods to differ materially from any estimates or projections of future performance or results expressed or implied by such forward-looking statements.
Forward-looking statements do not take into account the effect that transactions or non-recurring or other special items announced or occurring after the statements are made, may have on the Company&#146;s business. For example, they do not include
the effect of business dispositions, acquisitions, other business transactions, asset write-downs, asset impairment losses or other charges announced or occurring after forward-looking statements are made. The financial impact of such transactions
and non-recurring and other special items can be complex and necessarily depends on the facts particular to each of them.</P>
<P align="justify">
There can be no assurance that the expectations represented by our forward-looking statements 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 2012 financial performance and may not be appropriate for other purposes. Furthermore, unless otherwise stated, the forward-looking statements contained in this report are made as of the date hereof, and we do not
undertake any obligation to update publicly or to revise any of the included forward-looking statements, whether as a result of new information,
future events or otherwise unless required by applicable legislation or regulation. The forward-looking statements contained in this report are expressly qualified by this cautionary statement. </P>
<P align="justify">
December 9, 2011 </P>
<P align="right">
GILDAN 2011 REPORT TO SHAREHOLDERS P.49</P>

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</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.2
<SEQUENCE>3
<FILENAME>exhibit99-2.htm
<DESCRIPTION>EXHIBIT 99.2
<TEXT>
<HTML>
<HEAD>
   <TITLE>Gildan Activewear Inc.: Exhibit 99.2 - Filed by newsfilecorp.com</TITLE>
</HEAD>

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

<HR noshade align="center" width=100% size=3 color="black">
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  <tr>
    <td width="50%" valign="bottom">&nbsp;</td>
    <td width="50%" valign="bottom">
    <p align="right"><b><font size="2">Exhibit 99.2</font></b></td>
  </tr>
  <tr>
    <td width="50%" valign="bottom">&nbsp;</td>
    <td width="50%" valign="bottom">&nbsp;
    </td>
  </tr>
  <tr>
    <td width="50%" valign="bottom"><font size="2">
    <IMG
src="financialsx1x1.jpg" border=0 width="96" height="21"></font></td>
    <td width="50%" valign="bottom">
    <p align="right"><font size="2">CONSOLIDATED FINANCIAL STATEMENTS</font></td>
  </tr>
</table>
&nbsp;<BR>
<P align=justify><B>MANAGEMENT&#146;S RESPONSIBILITY FOR FINANCIAL REPORTING </B></P>
<P align=justify>The accompanying Consolidated Financial Statements have been
prepared by management and approved by the Board of Directors of the Company.
The Consolidated Financial Statements were prepared in accordance with Canadian
generally accepted accounting principles and, where appropriate, reflect
management&#146;s best estimates and judgments. Where alternative accounting methods
exist, management has chosen those methods deemed most appropriate in the
circumstances. Management is responsible for the accuracy, integrity and
objectivity of the Consolidated Financial Statements within reasonable limits of
materiality, and for maintaining a system of internal controls over financial
reporting as described in &#147;Management&#146;s Annual Report on Internal Control Over
Financial Reporting&#148; on page 37 of the 2011 Annual Management&#146;s Discussion and
Analysis. Management is also responsible for the preparation and presentation of
other financial information included in the 2011 Annual Report and its
consistency with the Consolidated Financial Statements. </P>
<P align=justify>The Audit and Finance Committee, which is appointed annually by
the Board of Directors and comprised exclusively of independent directors, meets
with management as well as with the independent auditors and internal auditors
to satisfy itself that management is properly discharging its financial
reporting responsibilities and to review the Consolidated Financial Statements
and the independent auditors&#146; report. The Audit and Finance Committee reports
its findings to the Board of Directors for consideration in approving the
Consolidated Financial Statements for presentation to the shareholders. The
Audit and Finance Committee considers, for review by the Board of Directors and
approval by the shareholders, the engagement or reappointment of the independent
auditors. </P>
<P align=justify>The Consolidated Financial Statements have been independently
audited by KPMG LLP, Chartered Accountants, on behalf of the shareholders, in
accordance with Canadian generally accepted auditing standards and the standards
of the Public Company Accounting Oversight Board (United States). Their report
outlines the nature of their audit and expresses their opinion on the
Consolidated Financial Statements of the Company. In addition, our auditors have
issued an attestation report on the Company&#146;s internal controls over financial
reporting as at October 2, 2011. KPMG LLP has direct access to the Audit and
Finance Committee of the Board of Directors. </P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD align=left>(Signed: Glenn J. Chamandy) </TD>
    <TD align=left width="50%">(Signed: Laurence G. Sellyn) </TD></TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD width="50%">&nbsp; </TD></TR>
  <TR vAlign=top>
    <TD align=left>Glenn J. Chamandy </TD>
    <TD align=left width="50%">Laurence G. Sellyn </TD></TR>
  <TR vAlign=top>
    <TD align=left>President and Chief Executive Officer </TD>
    <TD align=left width="50%">Executive Vice-President, </TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; </TD>
    <TD align=left width="50%">Chief Financial and Administrative Officer
  </TD></TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD width="50%">&nbsp; </TD></TR>
  <TR vAlign=top>
    <TD align=left>December&nbsp; 9, 2011 </TD>
    <TD align=left width="50%">&nbsp; </TD></TR></TABLE>
<P align=justify>&nbsp;</P>
<P align=right>GILDAN 2011 REPORT TO SHAREHOLDERS P.50</P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<!--$$/page=--><A name=page_2></A>
<P align=right>CONSOLIDATED FINANCIAL STATEMENTS<BR></P>
<P align=justify><B>REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
</B></P>
<P align=justify>To the Shareholders and Board of Directors of Gildan Activewear
Inc. </P>
<P align=justify>We have audited the accompanying consolidated balance sheets of
Gildan Activewear Inc. (the "Company") and subsidiaries as at October 2, 2011
and October 3, 2010 and the related consolidated statements of earnings and
comprehensive income, shareholders&#146; equity and cash flows for the years ended
October 2, 2011, October 3, 2010 and October 4, 2009. These consolidated
financial statements are the responsibility of the Company's management. Our
responsibility is to express an opinion on these consolidated financial
statements based on our audits. </P>
<P align=justify>We conducted our audits in accordance with Canadian generally
accepted auditing standards and the standards of the Public Company Accounting
Oversight Board (United States). Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audits provide a
reasonable basis for our opinion.</P>
<P align=justify>In our opinion, the consolidated financial statements referred
to above present fairly, in all material respects, the financial position of the
Company and subsidiaries as at October 2, 2011 and October 3, 2010, and the
results of their operations and their cash flows for the years ended October 2,
2011, October 3, 2010 and October 4, 2009, in conformity with Canadian generally
accepted accounting principles.</P>
<P align=justify>We have also audited, in accordance with the standards of the
Public Company Accounting Oversight Board (United States), the Company's
internal control over financial reporting as at October 2, 2011, based on
criteria established in <I>Internal Control - Integrated Framework issued by the</I>
<I>Committee of Sponsoring Organizations of the Treadway Commission</I>
(<I>COSO</I>), and our report dated November 30, 2011 expressed an unqualified
opinion on the effectiveness of the Company's internal control over financial
reporting. </P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR>
    <TD align=left ><img border="0" src="financ1.gif" width="139" height="53"></TD></TR>
  <TR vAlign=top>
    <TD align=left>Chartered Accountants </TD></TR>
  <TR vAlign=top>
    <TD align=left>Montr&#233;al, Canada </TD></TR>
  <TR vAlign=top>
    <TD align=left>November 30, 2011 </TD></TR></TABLE>
<P>&nbsp;</P>
<P><BR>&nbsp;</P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD align=left><FONT size=1>*CA Auditor permit no 20408 </FONT></TD>
    <TD align=left width="50%"><FONT size=1>KPMG LLP is a Canadian limited
      liability partnership and a member firm of the KPMG network of
  </FONT></TD></TR>
  <TR vAlign=top>
    <TD align=left><FONT size=1>&nbsp; </FONT></TD>
    <TD align=left width="50%"><FONT size=1>independent member firms
      affiliated with KPMG International Cooperative ("KPMG International"), a
      Swiss entity. </FONT></TD></TR>
  <TR vAlign=top>
    <TD align=left><FONT size=1>&nbsp; </FONT></TD>
    <TD align=left width="50%"><FONT size=1>KPMG Canada provides services to
      KPMG LLP. </FONT></TD></TR></TABLE>
<P align=justify>&nbsp;</P>
<P align=right>GILDAN 2011 REPORT TO SHAREHOLDERS P.51</P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<!--$$/page=--><A name=page_3></A>
<P align=right>CONSOLIDATED FINANCIAL STATEMENTS<BR></P>
<P align=justify><B>REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
</B></P>
<P align=justify>To the Shareholders and Board of Directors of Gildan Activewear
Inc. </P>
<P align=justify>We have audited Gildan Activewear Inc.'s internal control over
financial reporting as at October 2, 2011, based on the criteria established in
<I>Internal Control - Integrated Framework</I> <I>issued by the Committee of
Sponsoring Organizations of the Treadway Commission (COSO).</I> Gildan
Activewear Inc.&#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's internal control over financial reporting
based on our audit. </P>
<P align=justify>We conducted our audit in accordance with the standards of the
Public Company Accounting Oversight Board (United States). Those standards
require that we plan and perform the audit to obtain reasonable assurance about
whether effective internal control over the financial reporting was maintained
in all material respects. Our audit included obtaining an understanding of
internal control over financial reporting, assessing the risk that a material
weakness exists, and testing and evaluating the design and operating
effectiveness of internal control based on the assessed risk. Our audit also
included performing such other procedures as we considered necessary in the
circumstances. We believe that our audit provides a reasonable basis for our
opinion. </P>
<P align=justify>A company's internal control over financial reporting is a
process designed to provide reasonable assurance regarding the reliability of
financial reporting and the preparation of financial statements for external
purposes in accordance with generally accepted accounting principles. A
company's internal control over financial reporting includes those policies and
procedures that (1) pertain to the maintenance of records that, in reasonable
detail, accurately and fairly reflect the transactions and dispositions of the
assets of the company; (2) provide reasonable assurance that transactions are
recorded as necessary to permit preparation of financial statements in
accordance with generally accepted accounting principles, and that receipts and
expenditures of the Company are being made only in accordance with
authorizations of management and directors of the Company; and (3) provide
reasonable assurance regarding prevention or timely detection of unauthorized
acquisition, use, or disposition of the Company's assets that could have a
material effect on the financial statements. </P>
<P align=justify>Because of its inherent limitations, internal control over
financial reporting may not prevent or detect misstatements. Also, projections
of any evaluation of effectiveness to future periods are subject to the risk
that controls may become inadequate because of changes in conditions, or that
the degree of compliance with the policies or procedures may deteriorate. </P>
<P align=justify>In our opinion, Gildan Activewear Inc. maintained, in all
material respects, effective internal control over financial reporting as at
October 2, 2011, based on criteria established in <I>Internal Control -
Integrated </I>Framework issued by the Committee of Sponsoring Organizations of
the Treadway Commission (COSO). </P>
<P align=justify>Management has excluded from its assessment of the
effectiveness of internal control over financial reporting as of October 2, 2011
the internal control over financial reporting of Gold Toe Moretz Holdings Corp.
("Gold Toe Moretz") which Gildan Activewear Inc. acquired on April 15, 2011. The
total assets and total net sales of Gold Toe Moretz represent approximately 24%
of the  consolidated total assets and approximately 7% of the  consolidated
net sales included in the consolidated financial statements of Gildan Activewear
Inc. as of and for the year ended October 2, 2011. Our audit of internal control
over financial reporting of Gildan Activewear Inc. also excluded an evaluation
of the internal control over financial reporting of Gold Toe Moretz. </P>
<P align=justify>We also have conducted our audits on the consolidated financial
statements in accordance with Canadian generally accepted auditing standards and
the standards of the Public Company Accounting Oversight Board (United States).
Our report dated November 30, 2011 expressed an unqualified opinion on those
consolidated financial statements.&nbsp; <BR>
</P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD align=left><img border="0" src="financ2.gif" width="139" height="53"></TD>
    <TD align=left width="50%">&nbsp;</TD></TR>

  <TR vAlign=top>
    <TD align=left>Chartered Accountants </TD>
    <TD align=left width="50%">&nbsp; </TD></TR>
  <TR vAlign=top>
    <TD align=left>Montr&#233;al, Canada </TD>
    <TD align=left width="50%">&nbsp; </TD></TR>
  <TR vAlign=top>
    <TD align=left>November 30, 2011 </TD>
    <TD align=left width="50%">&nbsp; </TD></TR>
  <TR>
    <TD align=left >&nbsp;</TD>
    <TD align=left width="50%" >&nbsp;</TD></TR>
  <TR>
    <TD align=left >&nbsp;</TD>
    <TD align=left width="50%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left><FONT size=1>*CA Auditor permit no 20408 </FONT></TD>
    <TD align=left width="50%"><FONT size=1>KPMG LLP is a Canadian limited
      liability partnership and a member firm of the KPMG network of
  </FONT></TD></TR>
  <TR vAlign=top>
    <TD align=left><FONT size=1>&nbsp; </FONT></TD>
    <TD align=left width="50%"><FONT size=1>independent member firms
      affiliated with KPMG International Cooperative ("KPMG International"), a
      Swiss entity. </FONT></TD></TR>
  <TR vAlign=top>
    <TD align=left><FONT size=1>&nbsp; </FONT></TD>
    <TD align=left width="50%"><FONT size=1>KPMG Canada provides services to
      KPMG LLP. </FONT></TD></TR></TABLE>
<P align=justify>&nbsp;</P>
<P align=right>GILDAN 2011 REPORT TO SHAREHOLDERS P.52</P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<!--$$/page=--><A name=page_4></A>
<table border="0" cellpadding="0" cellspacing="0" style="border-collapse: collapse" bordercolor="#111111" width="100%">
  <tr>
    <td width="50%"><font size="2">
    <IMG
src="financialsx1x1.jpg" border=0 width="96" height="21"></font></td>
    <td width="50%">
    <p align="right"><font size="2">CONSOLIDATED FINANCIAL STATEMENTS</font></td>
  </tr>
</table>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD align=center colSpan=6>&nbsp;</TD>
    <TD align=center width="2%" >&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD align=center colSpan=6><B>GILDAN ACTIVEWEAR INC.</B>&nbsp;&nbsp; </TD>
    <TD align=center width="2%" >&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD align=center colSpan=6><B>CONSOLIDATED BALANCE SHEETS</B>&nbsp;&nbsp;
    </TD>
    <TD align=center width="2%" style="border-bottom-style: none; border-bottom-width: medium" >&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD align=center colSpan=6 style="border-bottom-style: none; border-bottom-width: medium; border-right-style:none; border-right-width:medium"><B>As at October 2, 2011 and October 3,
      2010</B>&nbsp;&nbsp; </TD>
    <TD align=center width="2%" style="border-style:none; border-width:medium; " >&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: medium none #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" align=center colSpan=6><B>(in
      thousands of U.S. dollars)</B>&nbsp;&nbsp; </TD>
    <TD style="BORDER-BOTTOM: medium none #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" align=center width="2%"
    >&nbsp;</TD></TR>
  <TR>
    <TD style="border-style: none; border-width: medium">&nbsp; </TD>
    <TD width="1%" style="border-style: none; border-width: medium" >&nbsp;</TD>
    <TD width="12%" style="border-style: none; border-width: medium">&nbsp; </TD>
    <TD width="2%" style="border-style: none; border-width: medium" >&nbsp;</TD>
    <TD width="1%" style="border-style: none; border-width: medium" >&nbsp;</TD>
    <TD width="12%" style="border-style: none; border-width: medium">&nbsp; </TD>
    <TD width="2%" style="border-style: none; border-width: medium" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left style="border-top-style: none; border-top-width: medium">&nbsp; </TD>
    <TD align=left width="1%" style="border-top-style: none; border-top-width: medium; border-bottom-style:solid; border-bottom-width:1" bordercolor="#000000" >&nbsp;</TD>
    <TD align=right width="12%" style="border-top-style: none; border-top-width: medium; border-bottom-style:solid; border-bottom-width:1" bordercolor="#000000">2011 </TD>
    <TD align=left width="2%" style="border-top-style: none; border-top-width: medium; border-bottom-style:solid; border-bottom-width:1" bordercolor="#000000" >&nbsp;</TD>
    <TD align=left width="1%" style="border-top-style: none; border-top-width: medium; border-bottom-style:solid; border-bottom-width:1" bordercolor="#000000" >&nbsp;</TD>
    <TD align=right width="12%" style="border-top-style: none; border-top-width: medium; border-right-style:none; border-right-width:medium; border-bottom-style:solid; border-bottom-width:1" bordercolor="#000000">2010 </TD>
    <TD align=left width="2%" style="border-style:none; border-width:medium; " >&nbsp;</TD></TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD width="1%" style="border-top-style: solid; border-top-width: 1" >&nbsp;</TD>
    <TD width="12%" style="border-top-style: solid; border-top-width: 1">&nbsp; </TD>
    <TD width="2%" style="border-top-style: solid; border-top-width: 1" >&nbsp;</TD>
    <TD width="1%" style="border-top-style: solid; border-top-width: 1" >&nbsp;</TD>
    <TD width="12%" style="border-right-style: none; border-right-width: medium; border-top-style: solid; border-top-width: 1">&nbsp; </TD>
    <TD width="2%" style="border-style: none; border-width: medium" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Current assets: </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="12%" bgColor=#e6efff>&nbsp; </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="12%" bgColor=#e6efff style="border-right-style: none; border-right-width: medium">&nbsp; </TD>
    <TD align=left width="2%"  bgColor=#e6efff style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; &nbsp;Cash and cash equivalents </TD>
    <TD align=left width="1%" >$</TD>
    <TD align=right width="12%">&nbsp;88,802 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >$</TD>
    <TD align=right width="12%" style="border-right-style: none; border-right-width: medium">&nbsp;258,442 </TD>
    <TD align=left width="2%" style="border-style: none; border-width: medium" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>&nbsp; &nbsp;Trade accounts receivable </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff>191,594 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff style="border-right-style: none; border-right-width: medium">145,684 </TD>
    <TD align=left width="2%"  bgColor=#e6efff style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; &nbsp;Income taxes receivable </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%">515 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%" style="border-right-style: none; border-right-width: medium">- </TD>
    <TD align=left width="2%" style="border-style: none; border-width: medium" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>&nbsp; &nbsp;Inventories (note 3) </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff>575,594 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff style="border-right-style: none; border-right-width: medium">332,542 </TD>
    <TD align=left width="2%"  bgColor=#e6efff style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; &nbsp;Prepaid expenses and deposits </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%">10,966 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%" style="border-right-style: none; border-right-width: medium">9,584 </TD>
    <TD align=left width="2%" style="border-style: none; border-width: medium" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>&nbsp; &nbsp;Future income taxes (note 15)
    </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff>11,666 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff style="border-right-style: none; border-right-width: medium">6,340 </TD>
    <TD align=left width="2%"  bgColor=#e6efff style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; &nbsp;Other current assets </TD>
    <TD align=left width="1%" style="border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000" >&nbsp;</TD>
    <TD align=right width="12%" style="border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000">9,307 </TD>
    <TD align=left width="2%" style="border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000" >&nbsp;</TD>
    <TD align=left width="1%" style="border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000" >&nbsp;</TD>
    <TD align=right width="12%" style="border-right-style: none; border-right-width: medium; border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000">9,079 </TD>
    <TD align=left width="2%" style="border-style: none; border-width: medium" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>&nbsp; </TD>
    <TD align=left width="1%"  bgColor=#e6efff style="border-top-style: solid; border-top-width: 1">&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff style="border-top-style: solid; border-top-width: 1">888,444 </TD>
    <TD align=left width="2%"  bgColor=#e6efff style="border-top-style: solid; border-top-width: 1">&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff style="border-top-style: solid; border-top-width: 1">&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff style="border-right-style: none; border-right-width: medium; border-top-style: solid; border-top-width: 1">761,671 </TD>
    <TD align=left width="2%"  bgColor=#e6efff style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>Property, plant and equipment (note 4) </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%">565,398 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%" style="border-right-style: none; border-right-width: medium">479,292 </TD>
    <TD align=left width="2%" style="border-style: none; border-width: medium" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Assets held for sale (note 16) </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff>13,142 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff style="border-right-style: none; border-right-width: medium">3,246 </TD>
    <TD align=left width="2%"  bgColor=#e6efff style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>Intangible assets (note 5(b)) </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%">256,467 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%" style="border-right-style: none; border-right-width: medium">61,321 </TD>
    <TD align=left width="2%" style="border-style: none; border-width: medium" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Goodwill (note 5(a)) </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff>153,219 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff style="border-right-style: none; border-right-width: medium">10,197 </TD>
    <TD align=left width="2%"  bgColor=#e6efff style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>Other assets (note 6) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="12%">13,051 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-right-style:none; border-right-width:medium" align=right
      width="12%">11,805 </TD>
    <TD style="BORDER-BOTTOM: medium none #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" align=left width="2%"
    >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Total assets </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
     bgColor=#e6efff>$</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right width="12%"
    bgColor=#e6efff>&nbsp;1,889,721 </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
     bgColor=#e6efff>$</TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-right-style:none; border-right-width:medium" align=right width="12%"
    bgColor=#e6efff>&nbsp;1,327,532 </TD>
    <TD style="BORDER-BOTTOM: medium none #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD></TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="12%">&nbsp; </TD>
    <TD width="2%" >&nbsp;</TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="12%" style="border-right-style: none; border-right-width: medium">&nbsp; </TD>
    <TD width="2%" style="border-style: none; border-width: medium" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Current liabilities: </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="12%" bgColor=#e6efff>&nbsp; </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="12%" bgColor=#e6efff style="border-right-style: none; border-right-width: medium">&nbsp; </TD>
    <TD align=left width="2%"  bgColor=#e6efff style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; &nbsp;Accounts payable and accrued liabilities </TD>
    <TD align=left width="1%" >$</TD>
    <TD align=right width="12%">&nbsp;315,269 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >$</TD>
    <TD align=right width="12%" style="border-right-style: none; border-right-width: medium">&nbsp;186,205 </TD>
    <TD align=left width="2%" style="border-style: none; border-width: medium" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>&nbsp; &nbsp;Income taxes payable </TD>
    <TD align=left width="1%"  bgColor=#e6efff style="border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000">&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff style="border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000">- </TD>
    <TD align=left width="2%"  bgColor=#e6efff style="border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000">&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff style="border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000">&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff style="border-right-style: none; border-right-width: medium; border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000">5,024 </TD>
    <TD align=left width="2%"  bgColor=#e6efff style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; </TD>
    <TD align=left width="1%" style="border-top-style: solid; border-top-width: 1" >&nbsp;</TD>
    <TD align=right width="12%" style="border-top-style: solid; border-top-width: 1">315,269 </TD>
    <TD align=left width="2%" style="border-top-style: solid; border-top-width: 1" >&nbsp;</TD>
    <TD align=left width="1%" style="border-top-style: solid; border-top-width: 1" >&nbsp;</TD>
    <TD align=right width="12%" style="border-right-style: none; border-right-width: medium; border-top-style: solid; border-top-width: 1">191,229 </TD>
    <TD align=left width="2%" style="border-style: none; border-width: medium" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Long-term debt (note 8) </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff>209,000 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff style="border-right-style: none; border-right-width: medium">- </TD>
    <TD align=left width="2%"  bgColor=#e6efff style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>Future income taxes (note 15) </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%">26,575 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%" style="border-right-style: none; border-right-width: medium">10,816 </TD>
    <TD align=left width="2%" style="border-style: none; border-width: medium" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Non-controlling interest in consolidated
      joint venture </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff>11,562 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff style="border-right-style: none; border-right-width: medium">11,058 </TD>
    <TD align=left width="2%"  bgColor=#e6efff style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="12%">&nbsp; </TD>
    <TD width="2%" >&nbsp;</TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="12%" style="border-right-style: none; border-right-width: medium">&nbsp; </TD>
    <TD width="2%" style="border-style: none; border-width: medium" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Commitments and contingencies (note 13) </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="12%" bgColor=#e6efff>&nbsp; </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="12%" bgColor=#e6efff style="border-right-style: none; border-right-width: medium">&nbsp; </TD>
    <TD align=left width="2%"  bgColor=#e6efff style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="12%">&nbsp; </TD>
    <TD width="2%" >&nbsp;</TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="12%" style="border-right-style: none; border-right-width: medium">&nbsp; </TD>
    <TD width="2%" style="border-style: none; border-width: medium" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Shareholders' equity (note 10): </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="12%" bgColor=#e6efff>&nbsp; </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="12%" bgColor=#e6efff style="border-right-style: none; border-right-width: medium">&nbsp; </TD>
    <TD align=left width="2%"  bgColor=#e6efff style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; &nbsp;Share capital </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%">100,436 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%" style="border-right-style: none; border-right-width: medium">97,036 </TD>
    <TD align=left width="2%" style="border-style: none; border-width: medium" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>&nbsp; &nbsp;Contributed surplus </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff>16,526 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff style="border-right-style: none; border-right-width: medium">10,091 </TD>
    <TD align=left width="2%"  bgColor=#e6efff style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="12%">&nbsp; </TD>
    <TD width="2%" >&nbsp;</TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="12%" style="border-right-style: none; border-right-width: medium">&nbsp; </TD>
    <TD width="2%" style="border-style: none; border-width: medium" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>&nbsp; &nbsp;Retained earnings </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff>1,184,781 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff style="border-right-style: none; border-right-width: medium">982,764 </TD>
    <TD align=left width="2%"  bgColor=#e6efff style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; &nbsp;Accumulated other comprehensive income </TD>
    <TD align=left width="1%" style="border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000" >&nbsp;</TD>
    <TD align=right width="12%" style="border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000">25,572 </TD>
    <TD align=left width="2%" style="border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000" >&nbsp;</TD>
    <TD align=left width="1%" style="border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000" >&nbsp;</TD>
    <TD align=right width="12%" style="border-right-style: none; border-right-width: medium; border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000">24,538 </TD>
    <TD align=left width="2%" style="border-style: none; border-width: medium" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>&nbsp; </TD>
    <TD align=left width="1%"  bgColor=#e6efff style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000">&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000">1,210,353 </TD>
    <TD align=left width="2%"  bgColor=#e6efff style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000">&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000">&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff style="border-right-style: none; border-right-width: medium; border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000">1,007,302 </TD>
    <TD align=left width="2%"  bgColor=#e6efff style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; </TD>
    <TD align=left width="1%" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000" >&nbsp;</TD>
    <TD align=right width="12%" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000">1,327,315 </TD>
    <TD align=left width="2%" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000" >&nbsp;</TD>
    <TD align=left width="1%" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000" >&nbsp;</TD>
    <TD align=right width="12%" style="border-right-style: none; border-right-width: medium; border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000">1,114,429 </TD>
    <TD align=left width="2%" style="border-style: none; border-width: medium" >&nbsp;</TD></TR>
  <TR>
    <TD bgColor=#e6efff>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: medium none #000000; ; border-top-style:solid; border-top-width:1" width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: medium none #000000; ; border-top-style:solid; border-top-width:1" width="12%"
      bgColor=#e6efff>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: medium none #000000; ; border-top-style:solid; border-top-width:1" width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: medium none #000000; ; border-top-style:solid; border-top-width:1" width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: medium none #000000; ; border-right-style:none; border-right-width:medium; border-top-style:solid; border-top-width:1" width="12%"
      bgColor=#e6efff>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: medium none #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" width="2%"
    bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>Total liabilities and shareholders' equity </TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-top-style:none; border-top-width:medium" align=left width="1%"
    >$</TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-top-style:none; border-top-width:medium" align=right
      width="12%">&nbsp;1,889,721 </TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-top-style:none; border-top-width:medium" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-top-style:none; border-top-width:medium" align=left width="1%"
    >$</TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" align=right
      width="12%">&nbsp;1,327,532 </TD>
    <TD style="BORDER-BOTTOM: medium none #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" align=left width="2%"
    >&nbsp;</TD></TR></TABLE><BR>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD align=left>See accompanying notes to consolidated financial
      statements. </TD>
    <TD align=left width="50%">&nbsp; </TD></TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD width="50%">&nbsp; </TD></TR>
  <TR vAlign=top>
    <TD align=left>On behalf of the Board of Directors: </TD>
    <TD align=left width="50%">&nbsp; </TD></TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD width="50%">&nbsp; </TD></TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD width="50%">&nbsp; </TD></TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD width="50%">&nbsp; </TD></TR>
  <TR vAlign=top>
    <TD align=left>(Signed: Glenn J. Chamandy) </TD>
    <TD align=left width="50%">(Signed: William D. Anderson) </TD></TR>
  <TR vAlign=top>
    <TD align=left>Director </TD>
    <TD align=left width="50%">Director </TD></TR>
  <TR vAlign=top>
    <TD align=left><B>Glenn J. Chamandy</B> </TD>
    <TD align=left width="50%"><B>William D. Anderson</B> </TD></TR></TABLE>
<P align=right>GILDAN 2011 REPORT TO SHAREHOLDERS P.53</P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<!--$$/page=-->
<table border="0" cellpadding="0" cellspacing="0" style="border-collapse: collapse" bordercolor="#111111" width="100%">
  <tr>
    <td width="50%"><font size="2">
    <IMG
src="financialsx1x1.jpg" border=0 width="96" height="21"></font></td>
    <td width="50%">
    <p align="right"><font size="2">CONSOLIDATED FINANCIAL STATEMENTS</font></td>
  </tr>
</table>
<P align=center><B>GILDAN ACTIVEWEAR INC. <BR></B><B>CONSOLIDATED STATEMENTS OF
EARNINGS AND COMPREHENSIVE INCOME<BR></B><B>Years ended October 2, 2011, October
3, 2010 and October 4, 2009 <BR>(in thousands of U.S. dollars, except per share
data) </B></P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%" bordercolor="#000000"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="10%" bordercolor="#000000">2011
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%" bordercolor="#000000"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%" bordercolor="#000000"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="10%" bordercolor="#000000">2010
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%" bordercolor="#000000"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%" bordercolor="#000000"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-right-style:none; border-right-width:medium" align=right width="10%" bordercolor="#000000">2009
    </TD>
    <TD style="BORDER-BOTTOM: medium none #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" align=left width="2%" bordercolor="#000000"
    >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Net sales </TD>
    <TD align=left width="1%"  bgColor=#e6efff bordercolor="#000000">$</TD>
    <TD align=right width="10%" bgColor=#e6efff bordercolor="#000000">&nbsp;1,726,041 </TD>
    <TD align=left width="2%"  bgColor=#e6efff bordercolor="#000000">&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff bordercolor="#000000">$</TD>
    <TD align=right width="10%" bgColor=#e6efff bordercolor="#000000">&nbsp;1,311,463 </TD>
    <TD align=left width="2%"  bgColor=#e6efff bordercolor="#000000">&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff bordercolor="#000000">$</TD>
    <TD align=right width="10%" bgColor=#e6efff bordercolor="#000000" style="border-right-style: none; border-right-width: medium">&nbsp;1,038,319 </TD>
    <TD align=left width="2%"  bgColor=#e6efff bordercolor="#000000" style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>Cost of sales (note 20(c)) </TD>
    <TD align=left width="1%" style="border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000" >&nbsp;</TD>
    <TD align=right width="10%" style="border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000">1,288,293 </TD>
    <TD align=left width="2%" style="border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000" >&nbsp;</TD>
    <TD align=left width="1%" style="border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000" >&nbsp;</TD>
    <TD align=right width="10%" style="border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000">947,206 </TD>
    <TD align=left width="2%" style="border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000" >&nbsp;</TD>
    <TD align=left width="1%" style="border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000" >&nbsp;</TD>
    <TD align=right width="10%" style="border-right-style: none; border-right-width: medium; border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000">807,986 </TD>
    <TD align=left width="2%" bordercolor="#000000" style="border-style: none; border-width: medium" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Gross profit </TD>
    <TD align=left width="1%"  bgColor=#e6efff style="border-top-style: solid; border-top-width: 1" bordercolor="#000000">&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff style="border-top-style: solid; border-top-width: 1" bordercolor="#000000">437,748 </TD>
    <TD align=left width="2%"  bgColor=#e6efff style="border-top-style: solid; border-top-width: 1" bordercolor="#000000">&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff style="border-top-style: solid; border-top-width: 1" bordercolor="#000000">&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff style="border-top-style: solid; border-top-width: 1" bordercolor="#000000">364,257 </TD>
    <TD align=left width="2%"  bgColor=#e6efff style="border-top-style: solid; border-top-width: 1" bordercolor="#000000">&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff style="border-top-style: solid; border-top-width: 1" bordercolor="#000000">&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff style="border-right-style: none; border-right-width: medium; border-top-style: solid; border-top-width: 1" bordercolor="#000000">230,333 </TD>
    <TD align=left width="2%"  bgColor=#e6efff bordercolor="#000000" style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>Selling, general and administrative expenses </TD>
    <TD align=left width="1%" bordercolor="#000000" >&nbsp;</TD>
    <TD align=right width="10%" bordercolor="#000000">199,132 </TD>
    <TD align=left width="2%" bordercolor="#000000" >&nbsp;</TD>
    <TD align=left width="1%" bordercolor="#000000" >&nbsp;</TD>
    <TD align=right width="10%" bordercolor="#000000">154,674 </TD>
    <TD align=left width="2%" bordercolor="#000000" >&nbsp;</TD>
    <TD align=left width="1%" bordercolor="#000000" >&nbsp;</TD>
    <TD align=right width="10%" bordercolor="#000000" style="border-right-style: none; border-right-width: medium">134,785 </TD>
    <TD align=left width="2%" bordercolor="#000000" style="border-style: none; border-width: medium" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Restructuring and acquisition-related costs
      (note 16) </TD>
    <TD align=left width="1%"  bgColor=#e6efff bordercolor="#000000" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff bordercolor="#000000" style="border-bottom-style: solid; border-bottom-width: 1">8,465 </TD>
    <TD align=left width="2%"  bgColor=#e6efff bordercolor="#000000" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff bordercolor="#000000" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff bordercolor="#000000" style="border-bottom-style: solid; border-bottom-width: 1">8,705 </TD>
    <TD align=left width="2%"  bgColor=#e6efff bordercolor="#000000" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff bordercolor="#000000" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff bordercolor="#000000" style="border-right-style: none; border-right-width: medium; border-bottom-style: solid; border-bottom-width: 1">6,199 </TD>
    <TD align=left width="2%"  bgColor=#e6efff bordercolor="#000000" style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>Operating income </TD>
    <TD align=left width="1%" bordercolor="#000000" style="border-top-style: solid; border-top-width: 1" >&nbsp;</TD>
    <TD align=right width="10%" bordercolor="#000000" style="border-top-style: solid; border-top-width: 1">230,151 </TD>
    <TD align=left width="2%" bordercolor="#000000" style="border-top-style: solid; border-top-width: 1" >&nbsp;</TD>
    <TD align=left width="1%" bordercolor="#000000" style="border-top-style: solid; border-top-width: 1" >&nbsp;</TD>
    <TD align=right width="10%" bordercolor="#000000" style="border-top-style: solid; border-top-width: 1">200,878 </TD>
    <TD align=left width="2%" bordercolor="#000000" style="border-top-style: solid; border-top-width: 1" >&nbsp;</TD>
    <TD align=left width="1%" bordercolor="#000000" style="border-top-style: solid; border-top-width: 1" >&nbsp;</TD>
    <TD align=right width="10%" bordercolor="#000000" style="border-right-style: none; border-right-width: medium; border-top-style: solid; border-top-width: 1">89,349 </TD>
    <TD align=left width="2%" bordercolor="#000000" style="border-style: none; border-width: medium" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Financial expense (income), net (note
      22(b)) </TD>
    <TD align=left width="1%"  bgColor=#e6efff bordercolor="#000000">&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff bordercolor="#000000">5,485 </TD>
    <TD align=left width="2%"  bgColor=#e6efff bordercolor="#000000">&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff bordercolor="#000000">&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff bordercolor="#000000">751 </TD>
    <TD align=left width="2%"  bgColor=#e6efff bordercolor="#000000">&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff bordercolor="#000000">&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff bordercolor="#000000" style="border-right-style: none; border-right-width: medium">(304</TD>
    <TD align=left width="2%"  bgColor=#e6efff bordercolor="#000000" style="border-style: none; border-width: medium">) </TD></TR>
  <TR vAlign=top>
    <TD align=left>Non-controlling interest in consolidated joint venture </TD>
    <TD align=left width="1%" bordercolor="#000000" style="border-bottom-style: solid; border-bottom-width: 1" >&nbsp;</TD>
    <TD align=right width="10%" bordercolor="#000000" style="border-bottom-style: solid; border-bottom-width: 1">504 </TD>
    <TD align=left width="2%" bordercolor="#000000" style="border-bottom-style: solid; border-bottom-width: 1" >&nbsp;</TD>
    <TD align=left width="1%" bordercolor="#000000" style="border-bottom-style: solid; border-bottom-width: 1" >&nbsp;</TD>
    <TD align=right width="10%" bordercolor="#000000" style="border-bottom-style: solid; border-bottom-width: 1">3,786 </TD>
    <TD align=left width="2%" bordercolor="#000000" style="border-bottom-style: solid; border-bottom-width: 1" >&nbsp;</TD>
    <TD align=left width="1%" bordercolor="#000000" style="border-bottom-style: solid; border-bottom-width: 1" >&nbsp;</TD>
    <TD align=right width="10%" bordercolor="#000000" style="border-right-style: none; border-right-width: medium; border-bottom-style: solid; border-bottom-width: 1">110 </TD>
    <TD align=left width="2%" bordercolor="#000000" style="border-style: none; border-width: medium" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Earnings before income taxes </TD>
    <TD align=left width="1%"  bgColor=#e6efff bordercolor="#000000" style="border-top-style: solid; border-top-width: 1">&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff bordercolor="#000000" style="border-top-style: solid; border-top-width: 1">224,162 </TD>
    <TD align=left width="2%"  bgColor=#e6efff bordercolor="#000000" style="border-top-style: solid; border-top-width: 1">&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff bordercolor="#000000" style="border-top-style: solid; border-top-width: 1">&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff bordercolor="#000000" style="border-top-style: solid; border-top-width: 1">196,341 </TD>
    <TD align=left width="2%"  bgColor=#e6efff bordercolor="#000000" style="border-top-style: solid; border-top-width: 1">&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff bordercolor="#000000" style="border-top-style: solid; border-top-width: 1">&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff bordercolor="#000000" style="border-right-style: none; border-right-width: medium; border-top-style: solid; border-top-width: 1">89,543 </TD>
    <TD align=left width="2%"  bgColor=#e6efff bordercolor="#000000" style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>Income taxes (note 15) </TD>
    <TD align=left width="1%" bordercolor="#000000" style="border-bottom-style: solid; border-bottom-width: 1" >&nbsp;</TD>
    <TD align=right width="10%" bordercolor="#000000" style="border-bottom-style: solid; border-bottom-width: 1">(15,742</TD>
    <TD align=left width="2%" bordercolor="#000000" style="border-bottom-style: solid; border-bottom-width: 1" >) </TD>
    <TD align=left width="1%" bordercolor="#000000" style="border-bottom-style: solid; border-bottom-width: 1" >&nbsp;</TD>
    <TD align=right width="10%" bordercolor="#000000" style="border-bottom-style: solid; border-bottom-width: 1">(1,904</TD>
    <TD align=left width="2%" bordercolor="#000000" style="border-bottom-style: solid; border-bottom-width: 1" >) </TD>
    <TD align=left width="1%" bordercolor="#000000" style="border-bottom-style: solid; border-bottom-width: 1" >&nbsp;</TD>
    <TD align=right width="10%" bordercolor="#000000" style="border-right-style: none; border-right-width: medium; border-bottom-style: solid; border-bottom-width: 1">(5,786</TD>
    <TD align=left width="2%" bordercolor="#000000" style="border-style: none; border-width: medium" >) </TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Net earnings </TD>
    <TD align=left width="1%"  bgColor=#e6efff bordercolor="#000000" style="border-top-style: solid; border-top-width: 1">&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff bordercolor="#000000" style="border-top-style: solid; border-top-width: 1">239,904 </TD>
    <TD align=left width="2%"  bgColor=#e6efff bordercolor="#000000" style="border-top-style: solid; border-top-width: 1">&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff bordercolor="#000000" style="border-top-style: solid; border-top-width: 1">&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff bordercolor="#000000" style="border-top-style: solid; border-top-width: 1">198,245 </TD>
    <TD align=left width="2%"  bgColor=#e6efff bordercolor="#000000" style="border-top-style: solid; border-top-width: 1">&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff bordercolor="#000000" style="border-top-style: solid; border-top-width: 1">&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff bordercolor="#000000" style="border-right-style: none; border-right-width: medium; border-top-style: solid; border-top-width: 1">95,329 </TD>
    <TD align=left width="2%"  bgColor=#e6efff bordercolor="#000000" style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#ffffff>Other comprehensive income (loss), net of related income taxes
      (note 17) </TD>
    <TD align=left width="1%"  bgColor=#ffffff bordercolor="#000000" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</TD>
    <TD align=right width="10%" bgColor=#ffffff bordercolor="#000000" style="border-bottom-style: solid; border-bottom-width: 1">1,034 </TD>
    <TD align=left width="2%"  bgColor=#ffffff bordercolor="#000000" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#ffffff bordercolor="#000000" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</TD>
    <TD align=right width="10%" bgColor=#ffffff bordercolor="#000000" style="border-bottom-style: solid; border-bottom-width: 1">(1,710</TD>
    <TD align=left width="2%"  bgColor=#ffffff bordercolor="#000000" style="border-bottom-style: solid; border-bottom-width: 1">) </TD>
    <TD align=left width="1%"  bgColor=#ffffff bordercolor="#000000" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</TD>
    <TD align=right width="10%" bgColor=#ffffff bordercolor="#000000" style="border-right-style: none; border-right-width: medium; border-bottom-style: solid; border-bottom-width: 1">- </TD>
    <TD align=left width="2%"  bgColor=#ffffff bordercolor="#000000" style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Comprehensive income </TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-top-style:solid; border-top-width:1" align=left width="1%"
     bgColor=#e6efff bordercolor="#000000">$</TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-top-style:solid; border-top-width:1" align=right width="10%"
    bgColor=#e6efff bordercolor="#000000">&nbsp;240,938 </TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-top-style:solid; border-top-width:1" align=left width="2%"
     bgColor=#e6efff bordercolor="#000000">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-top-style:solid; border-top-width:1" align=left width="1%"
     bgColor=#e6efff bordercolor="#000000">$</TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-top-style:solid; border-top-width:1" align=right width="10%"
    bgColor=#e6efff bordercolor="#000000">&nbsp;196,535 </TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-top-style:solid; border-top-width:1" align=left width="2%"
     bgColor=#e6efff bordercolor="#000000">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-top-style:solid; border-top-width:1" align=left width="1%"
     bgColor=#e6efff bordercolor="#000000">$</TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-right-style:none; border-right-width:medium; border-top-style:solid; border-top-width:1" align=right width="10%"
    bgColor=#e6efff bordercolor="#000000">&nbsp;95,329 </TD>
    <TD style="BORDER-BOTTOM: medium none #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" align=left width="2%"
     bgColor=#e6efff bordercolor="#000000">&nbsp;</TD></TR>
  <TR>
    <TD bgColor=#ffffff>&nbsp; </TD>
    <TD width="1%"  bgColor=#ffffff bordercolor="#000000">&nbsp;</TD>
    <TD width="10%" bgColor=#ffffff bordercolor="#000000">&nbsp; </TD>
    <TD width="2%"  bgColor=#ffffff bordercolor="#000000">&nbsp;</TD>
    <TD width="1%"  bgColor=#ffffff bordercolor="#000000">&nbsp;</TD>
    <TD width="10%" bgColor=#ffffff bordercolor="#000000">&nbsp; </TD>
    <TD width="2%"  bgColor=#ffffff bordercolor="#000000">&nbsp;</TD>
    <TD width="1%"  bgColor=#ffffff bordercolor="#000000">&nbsp;</TD>
    <TD width="10%" bgColor=#ffffff bordercolor="#000000" style="border-right-style: none; border-right-width: medium">&nbsp; </TD>
    <TD width="2%"  bgColor=#ffffff bordercolor="#000000" style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR>
    <TD bgColor=#e6efff>&nbsp; </TD>
    <TD width="1%"  bgColor=#e6efff bordercolor="#000000">&nbsp;</TD>
    <TD width="10%" bgColor=#e6efff bordercolor="#000000">&nbsp; </TD>
    <TD width="2%"  bgColor=#e6efff bordercolor="#000000">&nbsp;</TD>
    <TD width="1%"  bgColor=#e6efff bordercolor="#000000">&nbsp;</TD>
    <TD width="10%" bgColor=#e6efff bordercolor="#000000">&nbsp; </TD>
    <TD width="2%"  bgColor=#e6efff bordercolor="#000000">&nbsp;</TD>
    <TD width="1%"  bgColor=#e6efff bordercolor="#000000">&nbsp;</TD>
    <TD width="10%" bgColor=#e6efff bordercolor="#000000" style="border-right-style: none; border-right-width: medium">&nbsp; </TD>
    <TD width="2%"  bgColor=#e6efff bordercolor="#000000" style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#ffffff>Earnings per share: </TD>
    <TD align=left width="1%"  bgColor=#ffffff bordercolor="#000000">&nbsp;</TD>
    <TD align=left width="10%" bgColor=#ffffff bordercolor="#000000">&nbsp; </TD>
    <TD align=left width="2%"  bgColor=#ffffff bordercolor="#000000">&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#ffffff bordercolor="#000000">&nbsp;</TD>
    <TD align=left width="10%" bgColor=#ffffff bordercolor="#000000">&nbsp; </TD>
    <TD align=left width="2%"  bgColor=#ffffff bordercolor="#000000">&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#ffffff bordercolor="#000000">&nbsp;</TD>
    <TD align=left width="10%" bgColor=#ffffff bordercolor="#000000" style="border-right-style: none; border-right-width: medium">&nbsp; </TD>
    <TD align=left width="2%"  bgColor=#ffffff bordercolor="#000000" style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>&nbsp; &nbsp; &nbsp; &nbsp;Basic EPS (note
      18) </TD>
    <TD align=left width="1%"  bgColor=#e6efff bordercolor="#000000">$</TD>
    <TD align=right width="10%" bgColor=#e6efff bordercolor="#000000">&nbsp;1.97 </TD>
    <TD align=left width="2%"  bgColor=#e6efff bordercolor="#000000">&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff bordercolor="#000000">$</TD>
    <TD align=right width="10%" bgColor=#e6efff bordercolor="#000000">&nbsp;1.64 </TD>
    <TD align=left width="2%"  bgColor=#e6efff bordercolor="#000000">&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff bordercolor="#000000">$</TD>
    <TD align=right width="10%" bgColor=#e6efff bordercolor="#000000" style="border-right-style: none; border-right-width: medium">&nbsp;0.79 </TD>
    <TD align=left width="2%"  bgColor=#e6efff bordercolor="#000000" style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#ffffff>&nbsp; &nbsp; &nbsp; &nbsp;Diluted EPS
      (note 18) </TD>
    <TD align=left width="1%"  bgColor=#ffffff bordercolor="#000000">$</TD>
    <TD align=right width="10%" bgColor=#ffffff bordercolor="#000000">&nbsp;1.96 </TD>
    <TD align=left width="2%"  bgColor=#ffffff bordercolor="#000000">&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#ffffff bordercolor="#000000">$</TD>
    <TD align=right width="10%" bgColor=#ffffff bordercolor="#000000">&nbsp;1.63 </TD>
    <TD align=left width="2%"  bgColor=#ffffff bordercolor="#000000">&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#ffffff bordercolor="#000000">$</TD>
    <TD align=right width="10%" bgColor=#ffffff bordercolor="#000000" style="border-right-style: none; border-right-width: medium">&nbsp;0.79 </TD>
    <TD align=left width="2%"  bgColor=#ffffff bordercolor="#000000" style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR>
    <TD bgColor=#ffffff>&nbsp; </TD>
    <TD width="1%"  bgColor=#ffffff bordercolor="#000000">&nbsp;</TD>
    <TD width="10%" bgColor=#ffffff bordercolor="#000000">&nbsp; </TD>
    <TD width="2%"  bgColor=#ffffff bordercolor="#000000">&nbsp;</TD>
    <TD width="1%"  bgColor=#ffffff bordercolor="#000000">&nbsp;</TD>
    <TD width="10%" bgColor=#ffffff bordercolor="#000000">&nbsp; </TD>
    <TD width="2%"  bgColor=#ffffff bordercolor="#000000">&nbsp;</TD>
    <TD width="1%"  bgColor=#ffffff bordercolor="#000000">&nbsp;</TD>
    <TD width="10%" bgColor=#ffffff bordercolor="#000000">&nbsp; </TD>
    <TD width="2%"  bgColor=#ffffff bordercolor="#000000" style="border-top-style: none; border-top-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#ffffff colSpan=3>See accompanying notes to
      consolidated financial statements. </TD>
    <TD align=left width="2%"  bgColor=#ffffff bordercolor="#000000">&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#ffffff bordercolor="#000000">&nbsp;</TD>
    <TD align=left width="10%" bgColor=#ffffff bordercolor="#000000">&nbsp; </TD>
    <TD align=left width="2%"  bgColor=#ffffff bordercolor="#000000">&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#ffffff bordercolor="#000000">&nbsp;</TD>
    <TD align=left width="10%" bgColor=#ffffff bordercolor="#000000">&nbsp; </TD>
    <TD align=left width="2%"
  bgColor=#ffffff bordercolor="#000000">&nbsp;</TD></TR></TABLE>
<P align=right>GILDAN 2011 REPORT TO SHAREHOLDERS P.54</P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<!--$$/page=--><A name=page_6></A>
<table border="0" cellpadding="0" cellspacing="0" style="border-collapse: collapse" bordercolor="#111111" width="100%">
  <tr>
    <td width="50%"><font size="2">
    <IMG
src="financialsx1x1.jpg" border=0 width="96" height="21"></font></td>
    <td width="50%">
    <p align="right"><font size="2">CONSOLIDATED FINANCIAL STATEMENTS</font></td>
  </tr>
</table>
<TABLE
style="FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse"
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD align=center colSpan=18>&nbsp;</TD>
    <TD align=center width="2%">&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD align=center colSpan=18><font size="2">&nbsp;<B>GILDAN ACTIVEWEAR
      INC.</B>&nbsp;&nbsp;&nbsp; </font> </TD>
    <TD align=center width="2%">&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD align=center colSpan=18><B><font size="2">CONSOLIDATED STATEMENTS OF SHAREHOLDERS&#146;
      EQUITY</font></B><font size="2">&nbsp; </font> </TD>
    <TD align=center width="2%">&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD align=center colSpan=18><B><font size="2">Years ended October 2, 2011, October 3,
      2010 and October 4, 2009</font></B><font size="2">&nbsp;&nbsp; </font> </TD>
    <TD align=center width="2%">&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD align=center colSpan=18><B><font size="2">(in thousands or thousands of U.S.
      dollars)</font></B><font size="2">&nbsp;&nbsp; </font> </TD>
    <TD align=center width="2%" style="border-bottom-style: none; border-bottom-width: medium">&nbsp;</TD></TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="7%">&nbsp; </TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="7%">&nbsp; </TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="7%">&nbsp; </TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="7%">&nbsp; </TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="7%">&nbsp; </TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="7%" style="border-right-style: none; border-right-width: medium">&nbsp; </TD>
    <TD width="2%" style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; </TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=center width="7%">&nbsp; </TD>
    <TD align=center width="2%">&nbsp;</TD>
    <TD align=center width="1%">&nbsp;</TD>
    <TD align=center width="7%">&nbsp; </TD>
    <TD align=center width="2%">&nbsp;</TD>
    <TD align=center width="1%">&nbsp;</TD>
    <TD align=center width="7%">&nbsp; </TD>
    <TD align=center width="2%">&nbsp;</TD>
    <TD align=center width="1%">&nbsp;</TD>
    <TD align=center width="7%">Accumulated </TD>
    <TD align=center width="2%">&nbsp;</TD>
    <TD align=center width="1%">&nbsp;</TD>
    <TD align=center width="7%">&nbsp; </TD>
    <TD align=center width="2%">&nbsp;</TD>
    <TD align=center width="1%">&nbsp;</TD>
    <TD align=center width="7%" style="border-right-style: none; border-right-width: medium">&nbsp; </TD>
    <TD align=center width="2%" style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; </TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=center width="7%">&nbsp; </TD>
    <TD align=center width="2%">&nbsp;</TD>
    <TD align=center width="1%">&nbsp;</TD>
    <TD align=center width="7%">&nbsp; </TD>
    <TD align=center width="2%">&nbsp;</TD>
    <TD align=center width="1%">&nbsp;</TD>
    <TD align=center width="7%">&nbsp; </TD>
    <TD align=center width="2%">&nbsp;</TD>
    <TD align=center width="1%">&nbsp;</TD>
    <TD align=center width="7%">other </TD>
    <TD align=center width="2%">&nbsp;</TD>
    <TD align=center width="1%">&nbsp;</TD>
    <TD align=center width="7%">&nbsp; </TD>
    <TD align=center width="2%">&nbsp;</TD>
    <TD align=center width="1%">&nbsp;</TD>
    <TD align=center width="7%" style="border-right-style: none; border-right-width: medium">Total </TD>
    <TD align=center width="2%" style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="17%"
    colSpan=4>Share capital </TD>
    <TD align=center width="2%">&nbsp;</TD>
    <TD align=center width="1%">&nbsp;</TD>
    <TD align=center width="7%">Contributed&nbsp; </TD>
    <TD align=center width="2%">&nbsp;</TD>
    <TD align=center width="1%">&nbsp;</TD>
    <TD align=center width="7%">comprehensive</TD>
    <TD align=center width="2%">&nbsp;</TD>
    <TD align=center width="1%">&nbsp;</TD>
    <TD align=center width="7%">Retained </TD>
    <TD align=center width="2%">&nbsp;</TD>
    <TD align=center width="1%">&nbsp;</TD>
    <TD align=center width="7%" style="border-right-style: none; border-right-width: medium">shareholders' </TD>
    <TD align=center width="2%" style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>
    <p style="text-indent: -15pt; margin-left: 15pt">&nbsp; </TD>
    <TD align=left width="1%" style="border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000">&nbsp;</TD>
    <TD align=center width="7%" style="border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000">Number </TD>
    <TD align=center width="2%" style="border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000">&nbsp;</TD>
    <TD align=center width="1%" style="border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000">&nbsp;</TD>
    <TD align=center width="7%" style="border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000">Amount </TD>
    <TD align=center width="2%" style="border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000">&nbsp;</TD>
    <TD align=center width="1%" style="border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000">&nbsp;</TD>
    <TD align=center width="7%" style="border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000">surplus </TD>
    <TD align=center width="2%" style="border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000">&nbsp;</TD>
    <TD align=center width="1%" style="border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000">&nbsp;</TD>
    <TD align=center width="7%" style="border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000">income </TD>
    <TD align=center width="2%" style="border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000">&nbsp;</TD>
    <TD align=center width="1%" style="border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000">&nbsp;</TD>
    <TD align=center width="7%" style="border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000">earnings </TD>
    <TD align=center width="2%" style="border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000">&nbsp;</TD>
    <TD align=center width="1%" style="border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000">&nbsp;</TD>
    <TD align=center width="7%" style="border-right-style: none; border-right-width: medium; border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000">equity </TD>
    <TD align=center width="2%" style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>
    <p style="text-indent: -15pt; margin-left: 15pt">Balance, October 5, 2008 </TD>
    <TD align=left width="1%" bgColor=#e6efff style="border-top-style: solid; border-top-width: 1">&nbsp;</TD>
    <TD align=right width="7%" bgColor=#e6efff style="border-top-style: solid; border-top-width: 1">120,536 </TD>
    <TD align=left width="2%" bgColor=#e6efff style="border-top-style: solid; border-top-width: 1">&nbsp;</TD>
    <TD align=left width="1%" bgColor=#e6efff style="border-top-style: solid; border-top-width: 1">$</TD>
    <TD align=right width="7%" bgColor=#e6efff style="border-top-style: solid; border-top-width: 1">&nbsp;89,377 </TD>
    <TD align=left width="2%" bgColor=#e6efff style="border-top-style: solid; border-top-width: 1">&nbsp;</TD>
    <TD align=left width="1%" bgColor=#e6efff style="border-top-style: solid; border-top-width: 1">$</TD>
    <TD align=right width="7%" bgColor=#e6efff style="border-top-style: solid; border-top-width: 1">&nbsp;6,728 </TD>
    <TD align=left width="2%" bgColor=#e6efff style="border-top-style: solid; border-top-width: 1">&nbsp;</TD>
    <TD align=left width="1%" bgColor=#e6efff style="border-top-style: solid; border-top-width: 1">$</TD>
    <TD align=right width="7%" bgColor=#e6efff style="border-top-style: solid; border-top-width: 1">&nbsp;26,248 </TD>
    <TD align=left width="2%" bgColor=#e6efff style="border-top-style: solid; border-top-width: 1">&nbsp;</TD>
    <TD align=left width="1%" bgColor=#e6efff style="border-top-style: solid; border-top-width: 1">$</TD>
    <TD align=right width="7%" bgColor=#e6efff style="border-top-style: solid; border-top-width: 1">&nbsp;689,190 </TD>
    <TD align=left width="2%" bgColor=#e6efff style="border-top-style: solid; border-top-width: 1">&nbsp;</TD>
    <TD align=left width="1%" bgColor=#e6efff style="border-top-style: solid; border-top-width: 1">$</TD>
    <TD align=right width="7%" bgColor=#e6efff style="border-right-style: none; border-right-width: medium; border-top-style: solid; border-top-width: 1">&nbsp;811,543 </TD>
    <TD align=left width="2%" bgColor=#e6efff style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>
    <p style="text-indent: -15pt; margin-left: 15pt">Stock-based compensation related to stock options and
      Treasury restricted share units </TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="7%">- </TD>
    <TD align=left width="2%">&nbsp;</TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="7%">- </TD>
    <TD align=left width="2%">&nbsp;</TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="7%">3,007 </TD>
    <TD align=left width="2%">&nbsp;</TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="7%">- </TD>
    <TD align=left width="2%">&nbsp;</TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="7%">- </TD>
    <TD align=left width="2%">&nbsp;</TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="7%" style="border-right-style: none; border-right-width: medium">3,007 </TD>
    <TD align=left width="2%" style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>
    <p style="text-indent: -15pt; margin-left: 15pt">Shares issued under employee share purchase
      plan </TD>
    <TD align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="7%" bgColor=#e6efff>58 </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="7%" bgColor=#e6efff>781 </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="7%" bgColor=#e6efff>- </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="7%" bgColor=#e6efff>- </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="7%" bgColor=#e6efff>- </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="7%" bgColor=#e6efff style="border-right-style: none; border-right-width: medium">781 </TD>
    <TD align=left width="2%" bgColor=#e6efff style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>
    <p style="text-indent: -15pt; margin-left: 15pt">Shares issued pursuant to exercise of stock options </TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="7%">54 </TD>
    <TD align=left width="2%">&nbsp;</TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="7%">125 </TD>
    <TD align=left width="2%">&nbsp;</TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="7%">- </TD>
    <TD align=left width="2%">&nbsp;</TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="7%">- </TD>
    <TD align=left width="2%">&nbsp;</TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="7%">- </TD>
    <TD align=left width="2%">&nbsp;</TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="7%" style="border-right-style: none; border-right-width: medium">125 </TD>
    <TD align=left width="2%" style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>
    <p style="text-indent: -15pt; margin-left: 15pt">Shares issued pursuant to vesting of
      Treasury restricted share units </TD>
    <TD align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="7%" bgColor=#e6efff>315 </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="7%" bgColor=#e6efff>2,759 </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="7%" bgColor=#e6efff>(2,759</TD>
    <TD align=left width="2%" bgColor=#e6efff>) </TD>
    <TD align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="7%" bgColor=#e6efff>- </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="7%" bgColor=#e6efff>- </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="7%" bgColor=#e6efff style="border-right-style: none; border-right-width: medium">- </TD>
    <TD align=left width="2%" bgColor=#e6efff style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>
    <p style="text-indent: -15pt; margin-left: 15pt">Net earnings </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="7%">- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="7%">- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="7%">- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="7%">- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="7%">95,329
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-right-style:none; border-right-width:medium" align=right width="7%">95,329
    </TD>
    <TD style="BORDER-BOTTOM: medium none #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" align=left
    width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>
    <p style="text-indent: -15pt; margin-left: 15pt">Balance, October 4, 2009 </TD>
    <TD align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="7%" bgColor=#e6efff>120,963 </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%" bgColor=#e6efff>$</TD>
    <TD align=right width="7%" bgColor=#e6efff>&nbsp;93,042 </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%" bgColor=#e6efff>$</TD>
    <TD align=right width="7%" bgColor=#e6efff>&nbsp;6,976 </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%" bgColor=#e6efff>$</TD>
    <TD align=right width="7%" bgColor=#e6efff>&nbsp;26,248 </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%" bgColor=#e6efff>$</TD>
    <TD align=right width="7%" bgColor=#e6efff>&nbsp;784,519 </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%" bgColor=#e6efff>$</TD>
    <TD align=right width="7%" bgColor=#e6efff style="border-right-style: none; border-right-width: medium">&nbsp;910,785 </TD>
    <TD align=left width="2%" bgColor=#e6efff style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>
    <p style="text-indent: -15pt; margin-left: 15pt">Stock-based compensation related to stock options and
      Treasury restricted share units </TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="7%">- </TD>
    <TD align=left width="2%">&nbsp;</TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="7%">- </TD>
    <TD align=left width="2%">&nbsp;</TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="7%">4,081 </TD>
    <TD align=left width="2%">&nbsp;</TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="7%">- </TD>
    <TD align=left width="2%">&nbsp;</TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="7%">- </TD>
    <TD align=left width="2%">&nbsp;</TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="7%" style="border-right-style: none; border-right-width: medium">4,081 </TD>
    <TD align=left width="2%" style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>
    <p style="text-indent: -15pt; margin-left: 15pt">Recovery related to repricing of stock
      options previously exercised (note 11(b)) </TD>
    <TD align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="7%" bgColor=#e6efff>- </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="7%" bgColor=#e6efff>- </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="7%" bgColor=#e6efff>1,159 </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="7%" bgColor=#e6efff>- </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="7%" bgColor=#e6efff>- </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="7%" bgColor=#e6efff style="border-right-style: none; border-right-width: medium">1,159 </TD>
    <TD align=left width="2%" bgColor=#e6efff style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>
    <p style="text-indent: -15pt; margin-left: 15pt">Shares issued under employee share purchase plan </TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="7%">24 </TD>
    <TD align=left width="2%">&nbsp;</TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="7%">628 </TD>
    <TD align=left width="2%">&nbsp;</TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="7%">- </TD>
    <TD align=left width="2%">&nbsp;</TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="7%">- </TD>
    <TD align=left width="2%">&nbsp;</TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="7%">- </TD>
    <TD align=left width="2%">&nbsp;</TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="7%" style="border-right-style: none; border-right-width: medium">628 </TD>
    <TD align=left width="2%" style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>
    <p style="text-indent: -15pt; margin-left: 15pt">Shares issued pursuant to exercise of stock
      options </TD>
    <TD align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="7%" bgColor=#e6efff>183 </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="7%" bgColor=#e6efff>1,251 </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="7%" bgColor=#e6efff>(10</TD>
    <TD align=left width="2%" bgColor=#e6efff>) </TD>
    <TD align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="7%" bgColor=#e6efff>- </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="7%" bgColor=#e6efff>- </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="7%" bgColor=#e6efff style="border-right-style: none; border-right-width: medium">1,241 </TD>
    <TD align=left width="2%" bgColor=#e6efff style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>
    <p style="text-indent: -15pt; margin-left: 15pt">Shares issued pursuant to vesting of Treasury restricted
      share units </TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="7%">182 </TD>
    <TD align=left width="2%">&nbsp;</TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="7%">2,115 </TD>
    <TD align=left width="2%">&nbsp;</TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="7%">(2,115</TD>
    <TD align=left width="2%">) </TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="7%">- </TD>
    <TD align=left width="2%">&nbsp;</TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="7%">- </TD>
    <TD align=left width="2%">&nbsp;</TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="7%" style="border-right-style: none; border-right-width: medium">- </TD>
    <TD align=left width="2%" style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>
    <p style="text-indent: -15pt; margin-left: 15pt">Other comprehensive loss (note 17) </TD>
    <TD align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="7%" bgColor=#e6efff>- </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="7%" bgColor=#e6efff>- </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="7%" bgColor=#e6efff>- </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="7%" bgColor=#e6efff>(1,710</TD>
    <TD align=left width="2%" bgColor=#e6efff>) </TD>
    <TD align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="7%" bgColor=#e6efff>- </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="7%" bgColor=#e6efff style="border-right-style: none; border-right-width: medium">(1,710</TD>
    <TD align=left width="2%" bgColor=#e6efff style="border-style: none; border-width: medium">) </TD></TR>
  <TR vAlign=top>
    <TD align=left>
    <p style="text-indent: -15pt; margin-left: 15pt">Net earnings </TD>
    <TD align=left width="1%" style="border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000">&nbsp;</TD>
    <TD align=right width="7%" style="border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000">- </TD>
    <TD align=left width="2%" style="border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000">&nbsp;</TD>
    <TD align=left width="1%" style="border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000">&nbsp;</TD>
    <TD align=right width="7%" style="border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000">- </TD>
    <TD align=left width="2%" style="border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000">&nbsp;</TD>
    <TD align=left width="1%" style="border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000">&nbsp;</TD>
    <TD align=right width="7%" style="border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000">- </TD>
    <TD align=left width="2%" style="border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000">&nbsp;</TD>
    <TD align=left width="1%" style="border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000">&nbsp;</TD>
    <TD align=right width="7%" style="border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000">- </TD>
    <TD align=left width="2%" style="border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000">&nbsp;</TD>
    <TD align=left width="1%" style="border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000">&nbsp;</TD>
    <TD align=right width="7%" style="border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000">198,245 </TD>
    <TD align=left width="2%" style="border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000">&nbsp;</TD>
    <TD align=left width="1%" style="border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000">&nbsp;</TD>
    <TD align=right width="7%" style="border-right-style: none; border-right-width: medium; border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000">198,245 </TD>
    <TD align=left width="2%" style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>
    <p style="text-indent: -15pt; margin-left: 15pt">Balance, October 3, 2010 </TD>
    <TD align=left width="1%" bgColor=#e6efff style="border-top-style: solid; border-top-width: 1">&nbsp;</TD>
    <TD align=right width="7%" bgColor=#e6efff style="border-top-style: solid; border-top-width: 1">121,352 </TD>
    <TD align=left width="2%" bgColor=#e6efff style="border-top-style: solid; border-top-width: 1">&nbsp;</TD>
    <TD align=left width="1%" bgColor=#e6efff style="border-top-style: solid; border-top-width: 1">$</TD>
    <TD align=right width="7%" bgColor=#e6efff style="border-top-style: solid; border-top-width: 1">&nbsp;97,036 </TD>
    <TD align=left width="2%" bgColor=#e6efff style="border-top-style: solid; border-top-width: 1">&nbsp;</TD>
    <TD align=left width="1%" bgColor=#e6efff style="border-top-style: solid; border-top-width: 1">$</TD>
    <TD align=right width="7%" bgColor=#e6efff style="border-top-style: solid; border-top-width: 1">&nbsp;10,091 </TD>
    <TD align=left width="2%" bgColor=#e6efff style="border-top-style: solid; border-top-width: 1">&nbsp;</TD>
    <TD align=left width="1%" bgColor=#e6efff style="border-top-style: solid; border-top-width: 1">$</TD>
    <TD align=right width="7%" bgColor=#e6efff style="border-top-style: solid; border-top-width: 1">&nbsp;24,538 </TD>
    <TD align=left width="2%" bgColor=#e6efff style="border-top-style: solid; border-top-width: 1">&nbsp;</TD>
    <TD align=left width="1%" bgColor=#e6efff style="border-top-style: solid; border-top-width: 1">$</TD>
    <TD align=right width="7%" bgColor=#e6efff style="border-top-style: solid; border-top-width: 1">&nbsp;982,764 </TD>
    <TD align=left width="2%" bgColor=#e6efff style="border-top-style: solid; border-top-width: 1">&nbsp;</TD>
    <TD align=left width="1%" bgColor=#e6efff style="border-top-style: solid; border-top-width: 1">$</TD>
    <TD align=right width="7%" bgColor=#e6efff style="border-right-style: none; border-right-width: medium; border-top-style: solid; border-top-width: 1">&nbsp;1,114,429 </TD>
    <TD align=left width="2%" bgColor=#e6efff style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>
    <p style="text-indent: -15pt; margin-left: 15pt">Stock-based compensation related to stock options and
      Treasury restricted share units </TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="7%">- </TD>
    <TD align=left width="2%">&nbsp;</TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="7%">- </TD>
    <TD align=left width="2%">&nbsp;</TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="7%">4,899 </TD>
    <TD align=left width="2%">&nbsp;</TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="7%">- </TD>
    <TD align=left width="2%">&nbsp;</TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="7%">- </TD>
    <TD align=left width="2%">&nbsp;</TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="7%" style="border-right-style: none; border-right-width: medium">4,899 </TD>
    <TD align=left width="2%" style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>
    <p style="text-indent: -15pt; margin-left: 15pt">Shares issued under employee share purchase
      plan </TD>
    <TD align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="7%" bgColor=#e6efff>23 </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="7%" bgColor=#e6efff>642 </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="7%" bgColor=#e6efff>- </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="7%" bgColor=#e6efff>- </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="7%" bgColor=#e6efff>- </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="7%" bgColor=#e6efff style="border-right-style: none; border-right-width: medium">642 </TD>
    <TD align=left width="2%" bgColor=#e6efff style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>
    <p style="text-indent: -15pt; margin-left: 15pt">Shares issued pursuant to exercise of stock options </TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="7%">379 </TD>
    <TD align=left width="2%">&nbsp;</TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="7%">3,594 </TD>
    <TD align=left width="2%">&nbsp;</TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="7%">(219</TD>
    <TD align=left width="2%">) </TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="7%">- </TD>
    <TD align=left width="2%">&nbsp;</TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="7%">- </TD>
    <TD align=left width="2%">&nbsp;</TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="7%" style="border-right-style: none; border-right-width: medium">3,375 </TD>
    <TD align=left width="2%" style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>
    <p style="text-indent: -15pt; margin-left: 15pt">Shares issued pursuant to vesting of
      Treasury restricted share units </TD>
    <TD align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="7%" bgColor=#e6efff>26 </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="7%" bgColor=#e6efff>588 </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="7%" bgColor=#e6efff>(588</TD>
    <TD align=left width="2%" bgColor=#e6efff>) </TD>
    <TD align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="7%" bgColor=#e6efff>- </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="7%" bgColor=#e6efff>- </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="7%" bgColor=#e6efff style="border-right-style: none; border-right-width: medium">- </TD>
    <TD align=left width="2%" bgColor=#e6efff style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>
    <p style="text-indent: -15pt; margin-left: 15pt">Shares issued as consideration for costs incurred in a
      business acquisition (note 19(c)) </TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="7%">30 </TD>
    <TD align=left width="2%">&nbsp;</TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="7%">1,065 </TD>
    <TD align=left width="2%">&nbsp;</TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="7%">- </TD>
    <TD align=left width="2%">&nbsp;</TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="7%">- </TD>
    <TD align=left width="2%">&nbsp;</TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="7%">- </TD>
    <TD align=left width="2%">&nbsp;</TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="7%" style="border-right-style: none; border-right-width: medium">1,065 </TD>
    <TD align=left width="2%" style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>
    <p style="text-indent: -15pt; margin-left: 15pt">Shares repurchased and cancelled (note
      10(d)) </TD>
    <TD align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="7%" bgColor=#e6efff>(400</TD>
    <TD align=left width="2%" bgColor=#e6efff>) </TD>
    <TD align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="7%" bgColor=#e6efff>(337</TD>
    <TD align=left width="2%" bgColor=#e6efff>) </TD>
    <TD align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="7%" bgColor=#e6efff>- </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="7%" bgColor=#e6efff>- </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="7%" bgColor=#e6efff>(10,200</TD>
    <TD align=left width="2%" bgColor=#e6efff>) </TD>
    <TD align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="7%" bgColor=#e6efff style="border-right-style: none; border-right-width: medium">(10,537</TD>
    <TD align=left width="2%" bgColor=#e6efff style="border-style: none; border-width: medium">) </TD></TR>
  <TR vAlign=top>
    <TD align=left>
    <p style="text-indent: -15pt; margin-left: 15pt">Share repurchases (note 10(e)) </TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="7%">(79</TD>
    <TD align=left width="2%">) </TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="7%">(2,152</TD>
    <TD align=left width="2%">) </TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="7%">2,152 </TD>
    <TD align=left width="2%">&nbsp;</TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="7%">- </TD>
    <TD align=left width="2%">&nbsp;</TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="7%">- </TD>
    <TD align=left width="2%">&nbsp;</TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="7%" style="border-right-style: none; border-right-width: medium">- </TD>
    <TD align=left width="2%" style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>
    <p style="text-indent: -15pt; margin-left: 15pt">Other comprehensive income (note 17) </TD>
    <TD align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="7%" bgColor=#e6efff>- </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="7%" bgColor=#e6efff>- </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="7%" bgColor=#e6efff>- </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="7%" bgColor=#e6efff>1,034 </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="7%" bgColor=#e6efff>- </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="7%" bgColor=#e6efff style="border-right-style: none; border-right-width: medium">1,034 </TD>
    <TD align=left width="2%" bgColor=#e6efff style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>
    <p style="text-indent: -15pt; margin-left: 15pt">Dividends declared </TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="7%">- </TD>
    <TD align=left width="2%">&nbsp;</TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="7%">- </TD>
    <TD align=left width="2%">&nbsp;</TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="7%">191 </TD>
    <TD align=left width="2%">&nbsp;</TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="7%">- </TD>
    <TD align=left width="2%">&nbsp;</TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="7%">(27,687</TD>
    <TD align=left width="2%">) </TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="7%" style="border-right-style: none; border-right-width: medium">(27,496</TD>
    <TD align=left width="2%" style="border-style: none; border-width: medium">) </TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>
    <p style="text-indent: -15pt; margin-left: 15pt">Net earnings </TD>
    <TD align=left width="1%" bgColor=#e6efff style="border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000">&nbsp;</TD>
    <TD align=right width="7%" bgColor=#e6efff style="border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000">- </TD>
    <TD align=left width="2%" bgColor=#e6efff style="border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000">&nbsp;</TD>
    <TD align=left width="1%" bgColor=#e6efff style="border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000">&nbsp;</TD>
    <TD align=right width="7%" bgColor=#e6efff style="border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000">- </TD>
    <TD align=left width="2%" bgColor=#e6efff style="border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000">&nbsp;</TD>
    <TD align=left width="1%" bgColor=#e6efff style="border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000">&nbsp;</TD>
    <TD align=right width="7%" bgColor=#e6efff style="border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000">- </TD>
    <TD align=left width="2%" bgColor=#e6efff style="border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000">&nbsp;</TD>
    <TD align=left width="1%" bgColor=#e6efff style="border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000">&nbsp;</TD>
    <TD align=right width="7%" bgColor=#e6efff style="border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000">- </TD>
    <TD align=left width="2%" bgColor=#e6efff style="border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000">&nbsp;</TD>
    <TD align=left width="1%" bgColor=#e6efff style="border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000">&nbsp;</TD>
    <TD align=right width="7%" bgColor=#e6efff style="border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000">239,904 </TD>
    <TD align=left width="2%" bgColor=#e6efff style="border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000">&nbsp;</TD>
    <TD align=left width="1%" bgColor=#e6efff style="border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000">&nbsp;</TD>
    <TD align=right width="7%" bgColor=#e6efff style="border-right-style: none; border-right-width: medium; border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000">239,904 </TD>
    <TD align=left width="2%" bgColor=#e6efff style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>
    <p style="text-indent: -15pt; margin-left: 15pt">Balance, October 2, 2011 </TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-top-style:solid; border-top-width:1" align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-top-style:solid; border-top-width:1" align=right
      width="7%">121,331 </TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-top-style:solid; border-top-width:1" align=left
    width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-top-style:solid; border-top-width:1" align=left width="1%">$</TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-top-style:solid; border-top-width:1" align=right
      width="7%">&nbsp;100,436 </TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-top-style:solid; border-top-width:1" align=left
    width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-top-style:solid; border-top-width:1" align=left width="1%">$</TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-top-style:solid; border-top-width:1" align=right
      width="7%">&nbsp;16,526 </TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-top-style:solid; border-top-width:1" align=left
    width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-top-style:solid; border-top-width:1" align=left width="1%">$</TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-top-style:solid; border-top-width:1" align=right
      width="7%">&nbsp;25,572 </TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-top-style:solid; border-top-width:1" align=left
    width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-top-style:solid; border-top-width:1" align=left width="1%">$</TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-top-style:solid; border-top-width:1" align=right
      width="7%">&nbsp;1,184,781 </TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-top-style:solid; border-top-width:1" align=left
    width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-top-style:solid; border-top-width:1" align=left width="1%">$</TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-right-style:none; border-right-width:medium; border-top-style:solid; border-top-width:1" align=right
      width="7%">&nbsp;1,327,315 </TD>
    <TD style="BORDER-BOTTOM: medium none #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" align=left
    width="2%">&nbsp;</TD></TR>
  <TR>
    <TD align=left >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="7%" >&nbsp;</TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="7%" >&nbsp;</TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="7%" >&nbsp;</TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="7%" >&nbsp;</TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="7%" >&nbsp;</TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="7%" style="border-right-style: none; border-right-width: medium" >&nbsp;</TD>
    <TD align=left width="2%" style="border-style: none; border-width: medium" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#ffffff colSpan=6><font size="2">See accompanying notes to
      consolidated financial statements. </font> </TD>
    <TD align=left width="2%" bgColor=#ffffff>&nbsp;</TD>
    <TD align=left width="1%" bgColor=#ffffff>&nbsp;</TD>
    <TD align=left width="7%" bgColor=#ffffff>&nbsp; </TD>
    <TD align=left width="2%" bgColor=#ffffff>&nbsp;</TD>
    <TD align=left width="1%" bgColor=#ffffff>&nbsp;</TD>
    <TD align=left width="7%" bgColor=#ffffff>&nbsp; </TD>
    <TD align=left width="2%" bgColor=#ffffff>&nbsp;</TD>
    <TD align=left width="1%" bgColor=#ffffff>&nbsp;</TD>
    <TD align=left width="7%" bgColor=#ffffff>&nbsp; </TD>
    <TD align=left width="2%" bgColor=#ffffff>&nbsp;</TD>
    <TD align=left width="1%" bgColor=#ffffff>&nbsp;</TD>
    <TD align=left width="7%" bgColor=#ffffff style="border-right-style: none; border-right-width: medium">&nbsp; </TD>
    <TD align=left width="2%" bgColor=#ffffff style="border-style: none; border-width: medium">&nbsp;</TD></TR></TABLE>
<P align=right>GILDAN 2011 REPORT TO SHAREHOLDERS P.55</P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
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<table border="0" cellpadding="0" cellspacing="0" style="border-collapse: collapse" bordercolor="#111111" width="100%">
  <tr>
    <td width="50%"><font size="2">
    <IMG
src="financialsx1x1.jpg" border=0 width="96" height="21"></font></td>
    <td width="50%">
    <p align="right"><font size="2">CONSOLIDATED FINANCIAL STATEMENTS</font></td>
  </tr>
</table>
<p>&nbsp;</p>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD align=center colSpan=9 style="border-right-style: none; border-right-width: medium"><B>GILDAN ACTIVEWEAR INC.</B>&nbsp;&nbsp; </TD>
    <TD align=center width="2%" style="border-style: none; border-width: medium" >&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD align=center colSpan=9 style="border-right-style: none; border-right-width: medium"><B>CONSOLIDATED STATEMENTS OF CASH
      FLOWS</B>&nbsp;&nbsp; </TD>
    <TD align=center width="2%" style="border-style: none; border-width: medium" >&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD align=center colSpan=9 style="border-right-style: none; border-right-width: medium"><B>Years ended October 2, 2011, October 3, 2010
      and October 4, 2009</B>&nbsp; </TD>
    <TD align=center width="2%" style="border-style: none; border-width: medium" >&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD align=center colSpan=9 style="border-right-style: none; border-right-width: medium"><B>(in thousands of U.S.
      dollars)</B>&nbsp;&nbsp;&nbsp; </TD>
    <TD align=center width="2%" style="border-style: none; border-width: medium" >&nbsp;</TD></TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD width="1%" bordercolor="#000000" >&nbsp;</TD>
    <TD width="10%" bordercolor="#000000">&nbsp; </TD>
    <TD width="2%" bordercolor="#000000" >&nbsp;</TD>
    <TD width="1%" bordercolor="#000000" >&nbsp;</TD>
    <TD width="10%" bordercolor="#000000">&nbsp; </TD>
    <TD width="2%" bordercolor="#000000" >&nbsp;</TD>
    <TD width="1%" bordercolor="#000000" >&nbsp;</TD>
    <TD width="10%" bordercolor="#000000" style="border-right-style: none; border-right-width: medium">&nbsp; </TD>
    <TD width="2%" style="border-style: none; border-width: medium" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; </TD>
    <TD align=left width="1%" style="border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000" >&nbsp;</TD>
    <TD align=right width="10%" style="border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000">2011 </TD>
    <TD align=left width="2%" style="border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000" >&nbsp;</TD>
    <TD align=left width="1%" style="border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000" >&nbsp;</TD>
    <TD align=right width="10%" style="border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000">2010 </TD>
    <TD align=left width="2%" style="border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000" >&nbsp;</TD>
    <TD align=left width="1%" style="border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000" >&nbsp;</TD>
    <TD align=right width="10%" style="border-right-style: none; border-right-width: medium; border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000">2009 </TD>
    <TD align=left width="2%" style="border-style: none; border-width: medium" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>
    <p style="text-indent: -15pt; margin-left: 15pt">Cash flows from (used in) operating
      activities: </TD>
    <TD align=left width="1%"  bgColor=#e6efff style="border-top-style: solid; border-top-width: 1" bordercolor="#000000">&nbsp;</TD>
    <TD align=left width="10%" bgColor=#e6efff style="border-top-style: solid; border-top-width: 1" bordercolor="#000000">&nbsp; </TD>
    <TD align=left width="2%"  bgColor=#e6efff style="border-top-style: solid; border-top-width: 1" bordercolor="#000000">&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff style="border-top-style: solid; border-top-width: 1" bordercolor="#000000">&nbsp;</TD>
    <TD align=left width="10%" bgColor=#e6efff style="border-top-style: solid; border-top-width: 1" bordercolor="#000000">&nbsp; </TD>
    <TD align=left width="2%"  bgColor=#e6efff style="border-top-style: solid; border-top-width: 1" bordercolor="#000000">&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff style="border-top-style: solid; border-top-width: 1" bordercolor="#000000">&nbsp;</TD>
    <TD align=left width="10%" bgColor=#e6efff style="border-right-style: none; border-right-width: medium; border-top-style: solid; border-top-width: 1" bordercolor="#000000">&nbsp; </TD>
    <TD align=left width="2%"  bgColor=#e6efff style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>
    <p style="text-indent: -15pt; margin-left: 15pt">&nbsp;Net earnings </TD>
    <TD align=left width="1%" bordercolor="#000000" >$</TD>
    <TD align=right width="10%" bordercolor="#000000">&nbsp;239,904 </TD>
    <TD align=left width="2%" bordercolor="#000000" >&nbsp;</TD>
    <TD align=left width="1%" bordercolor="#000000" >$</TD>
    <TD align=right width="10%" bordercolor="#000000">&nbsp;198,245 </TD>
    <TD align=left width="2%" bordercolor="#000000" >&nbsp;</TD>
    <TD align=left width="1%" bordercolor="#000000" >$</TD>
    <TD align=right width="10%" bordercolor="#000000" style="border-right-style: none; border-right-width: medium">&nbsp;95,329 </TD>
    <TD align=left width="2%" style="border-style: none; border-width: medium" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>
    <p style="text-indent: -15pt; margin-left: 15pt">&nbsp;Adjustments for non-cash items (note
      19(a)) </TD>
    <TD align=left width="1%"  bgColor=#e6efff style="border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000">&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff style="border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000">70,851 </TD>
    <TD align=left width="2%"  bgColor=#e6efff style="border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000">&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff style="border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000">&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff style="border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000">72,360 </TD>
    <TD align=left width="2%"  bgColor=#e6efff style="border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000">&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff style="border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000">&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff style="border-right-style: none; border-right-width: medium; border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000">64,178 </TD>
    <TD align=left width="2%"  bgColor=#e6efff style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>
    <p style="text-indent: -15pt; margin-left: 15pt">&nbsp; </TD>
    <TD align=left width="1%" style="border-top-style: solid; border-top-width: 1" bordercolor="#000000" >&nbsp;</TD>
    <TD align=right width="10%" style="border-top-style: solid; border-top-width: 1" bordercolor="#000000">310,755 </TD>
    <TD align=left width="2%" style="border-top-style: solid; border-top-width: 1" bordercolor="#000000" >&nbsp;</TD>
    <TD align=left width="1%" style="border-top-style: solid; border-top-width: 1" bordercolor="#000000" >&nbsp;</TD>
    <TD align=right width="10%" style="border-top-style: solid; border-top-width: 1" bordercolor="#000000">270,605 </TD>
    <TD align=left width="2%" style="border-top-style: solid; border-top-width: 1" bordercolor="#000000" >&nbsp;</TD>
    <TD align=left width="1%" style="border-top-style: solid; border-top-width: 1" bordercolor="#000000" >&nbsp;</TD>
    <TD align=right width="10%" style="border-right-style: none; border-right-width: medium; border-top-style: solid; border-top-width: 1" bordercolor="#000000">159,507 </TD>
    <TD align=left width="2%" style="border-style: none; border-width: medium" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>
    <p style="text-indent: -15pt; margin-left: 15pt">Changes in non-cash working capital
      balances: </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="10%" bgColor=#e6efff>&nbsp; </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="10%" bgColor=#e6efff>&nbsp; </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="10%" bgColor=#e6efff style="border-right-style: none; border-right-width: medium">&nbsp; </TD>
    <TD align=left width="2%"  bgColor=#e6efff style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>
    <p style="text-indent: -15pt; margin-left: 15pt">&nbsp; &nbsp;Trade accounts receivable </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%">(18,861</TD>
    <TD align=left width="2%" >) </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%">16,018 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%" style="border-right-style: none; border-right-width: medium">45,608 </TD>
    <TD align=left width="2%" style="border-style: none; border-width: medium" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>
    <p style="text-indent: -15pt; margin-left: 15pt">&nbsp; &nbsp;Inventories </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>(182,080</TD>
    <TD align=left width="2%"  bgColor=#e6efff>) </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>(32,280</TD>
    <TD align=left width="2%"  bgColor=#e6efff>) </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff style="border-right-style: none; border-right-width: medium">16,742 </TD>
    <TD align=left width="2%"  bgColor=#e6efff style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>
    <p style="text-indent: -15pt; margin-left: 15pt">&nbsp; &nbsp;Prepaid expenses and deposits </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%">698 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%">2,020 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%" style="border-right-style: none; border-right-width: medium">(1,191</TD>
    <TD align=left width="2%" style="border-style: none; border-width: medium" >) </TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>
    <p style="text-indent: -15pt; margin-left: 15pt">&nbsp; &nbsp;Other current assets </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>1,883 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>(168</TD>
    <TD align=left width="2%"  bgColor=#e6efff>) </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff style="border-right-style: none; border-right-width: medium">2,743 </TD>
    <TD align=left width="2%"  bgColor=#e6efff style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>
    <p style="text-indent: -15pt; margin-left: 15pt">&nbsp; &nbsp;Accounts payable and accrued liabilities </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%">74,496 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%">52,127 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%" style="border-right-style: none; border-right-width: medium">(22,731</TD>
    <TD align=left width="2%" style="border-style: none; border-width: medium" >) </TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>
    <p style="text-indent: -15pt; margin-left: 15pt">&nbsp; &nbsp;Income taxes payable </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="10%"
    bgColor=#e6efff>(5,341</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff>) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="10%"
    bgColor=#e6efff>(6,771</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff>) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-right-style:none; border-right-width:medium" align=right width="10%"
    bgColor=#e6efff>(31,499</TD>
    <TD style="BORDER-BOTTOM: medium none #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" align=left width="2%"
     bgColor=#e6efff>) </TD></TR>
  <TR vAlign=top>
    <TD align=left>
    <p style="text-indent: -15pt; margin-left: 15pt">&nbsp; </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%">181,550 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%">301,551 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%" style="border-right-style: none; border-right-width: medium">169,179 </TD>
    <TD align=left width="2%" style="border-style: none; border-width: medium" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>
    <p style="text-indent: -15pt; margin-left: 15pt">Cash flows from (used in) financing
      activities: </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="10%" bgColor=#e6efff>&nbsp; </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="10%" bgColor=#e6efff>&nbsp; </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="10%" bgColor=#e6efff style="border-right-style: none; border-right-width: medium">&nbsp; </TD>
    <TD align=left width="2%"  bgColor=#e6efff style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>
    <p style="text-indent: -15pt; margin-left: 15pt">&nbsp;Increase (decrease) in amounts drawn under revolving
      long-term credit facility </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%">209,000 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%">- </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%" style="border-right-style: none; border-right-width: medium">(45,000</TD>
    <TD align=left width="2%" style="border-style: none; border-width: medium" >) </TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>
    <p style="text-indent: -15pt; margin-left: 15pt">&nbsp;Dividends paid </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>(27,496</TD>
    <TD align=left width="2%"  bgColor=#e6efff>) </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>- </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff style="border-right-style: none; border-right-width: medium">- </TD>
    <TD align=left width="2%"  bgColor=#e6efff style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>
    <p style="text-indent: -15pt; margin-left: 15pt">&nbsp;Increase in other long-term debt </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%">- </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%">43 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%" style="border-right-style: none; border-right-width: medium">44 </TD>
    <TD align=left width="2%" style="border-style: none; border-width: medium" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>
    <p style="text-indent: -15pt; margin-left: 15pt">&nbsp;Repayment of other long-term debt </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>- </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>(4,430</TD>
    <TD align=left width="2%"  bgColor=#e6efff>) </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff style="border-right-style: none; border-right-width: medium">(3,661</TD>
    <TD align=left width="2%"  bgColor=#e6efff style="border-style: none; border-width: medium">) </TD></TR>
  <TR vAlign=top>
    <TD align=left>
    <p style="text-indent: -15pt; margin-left: 15pt">&nbsp;Proceeds from the issuance of shares </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%">4,017 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%">1,869 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%" style="border-right-style: none; border-right-width: medium">906 </TD>
    <TD align=left width="2%" style="border-style: none; border-width: medium" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>
    <p style="text-indent: -15pt; margin-left: 15pt">&nbsp;Repurchase and cancellation of
      shares (note 10(d)) </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>(10,537</TD>
    <TD align=left width="2%"  bgColor=#e6efff>) </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>- </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff style="border-right-style: none; border-right-width: medium">- </TD>
    <TD align=left width="2%"  bgColor=#e6efff style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>
    <p style="text-indent: -15pt; margin-left: 15pt">&nbsp;Repurchase of shares (note 10(e)) </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%">(2,152</TD>
    <TD align=left width="2%" >) </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%">- </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%" style="border-right-style: none; border-right-width: medium">- </TD>
    <TD align=left width="2%" style="border-style: none; border-width: medium" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>
    <p style="text-indent: -15pt; margin-left: 15pt">&nbsp;Recovery related to repricing of
      stock options previously exercised </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="10%"
    bgColor=#e6efff>- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="10%"
    bgColor=#e6efff>1,159 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-right-style:none; border-right-width:medium" align=right width="10%"
    bgColor=#e6efff>- </TD>
    <TD style="BORDER-BOTTOM: medium none #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>
    <p style="text-indent: -15pt; margin-left: 15pt">&nbsp; </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%">172,832 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%">(1,359</TD>
    <TD align=left width="2%" >) </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%" style="border-right-style: none; border-right-width: medium">(47,711</TD>
    <TD align=left width="2%" style="border-style: none; border-width: medium" >) </TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>
    <p style="text-indent: -15pt; margin-left: 15pt">Cash flows from (used in) investing
      activities: </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="10%" bgColor=#e6efff>&nbsp; </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="10%" bgColor=#e6efff>&nbsp; </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="10%" bgColor=#e6efff style="border-right-style: none; border-right-width: medium">&nbsp; </TD>
    <TD align=left width="2%"  bgColor=#e6efff style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>
    <p style="text-indent: -15pt; margin-left: 15pt">&nbsp;Purchase of property, plant and equipment </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%">(159,946</TD>
    <TD align=left width="2%" >) </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%">(126,855</TD>
    <TD align=left width="2%" >) </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%" style="border-right-style: none; border-right-width: medium">(43,877</TD>
    <TD align=left width="2%" style="border-style: none; border-width: medium" >) </TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>
    <p style="text-indent: -15pt; margin-left: 15pt">&nbsp;Purchase of intangible assets </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>(4,776</TD>
    <TD align=left width="2%"  bgColor=#e6efff>) </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>(1,026</TD>
    <TD align=left width="2%"  bgColor=#e6efff>) </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff style="border-right-style: none; border-right-width: medium">(1,061</TD>
    <TD align=left width="2%"  bgColor=#e6efff style="border-style: none; border-width: medium">) </TD></TR>
  <TR vAlign=top>
    <TD align=left>
    <p style="text-indent: -15pt; margin-left: 15pt">&nbsp;Business acquisitions (note 2) </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%">(349,639</TD>
    <TD align=left width="2%" >) </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%">(15,850</TD>
    <TD align=left width="2%" >) </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%" style="border-right-style: none; border-right-width: medium">(1,196</TD>
    <TD align=left width="2%" style="border-style: none; border-width: medium" >) </TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>
    <p style="text-indent: -15pt; margin-left: 15pt">&nbsp;Payment of contingent consideration
      (note 19(d)) </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>(5,815</TD>
    <TD align=left width="2%"  bgColor=#e6efff>) </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>- </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff style="border-right-style: none; border-right-width: medium">- </TD>
    <TD align=left width="2%"  bgColor=#e6efff style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>
    <p style="text-indent: -15pt; margin-left: 15pt">&nbsp;Restricted cash related to a business acquisition </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%">- </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%">254 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%" style="border-right-style: none; border-right-width: medium">3,958 </TD>
    <TD align=left width="2%" style="border-style: none; border-width: medium" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>
    <p style="text-indent: -15pt; margin-left: 15pt">&nbsp;Purchase of corporate asset, net of
      proceeds (note 19(a)) </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>(3,693</TD>
    <TD align=left width="2%"  bgColor=#e6efff>) </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>- </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff style="border-right-style: none; border-right-width: medium">- </TD>
    <TD align=left width="2%"  bgColor=#e6efff style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>
    <p style="text-indent: -15pt; margin-left: 15pt">&nbsp;Proceeds on disposal of assets held for sale </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%">1,125 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%">4,708 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%" style="border-right-style: none; border-right-width: medium">6,349 </TD>
    <TD align=left width="2%" style="border-style: none; border-width: medium" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>
    <p style="text-indent: -15pt; margin-left: 15pt">&nbsp;Net (increase) decrease in other
      assets </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="10%"
    bgColor=#e6efff>(1,193</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff>) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="10%"
    bgColor=#e6efff>(2,477</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff>) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-right-style:none; border-right-width:medium" align=right width="10%"
    bgColor=#e6efff>1,629 </TD>
    <TD align=left width="2%"  bgColor=#e6efff style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>
    <p style="text-indent: -15pt; margin-left: 15pt">&nbsp; </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%">(523,937</TD>
    <TD align=left width="2%" >) </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%">(141,246</TD>
    <TD align=left width="2%" >) </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%" style="border-right-style: none; border-right-width: medium">(34,198</TD>
    <TD align=left width="2%" style="border-style: none; border-width: medium" >) </TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>
    <p style="text-indent: -15pt; margin-left: 15pt">Effect of exchange rate changes on cash and
      cash equivalents denominated in foreign currencies </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="10%"
    bgColor=#e6efff>(85</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff>) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="10%"
    bgColor=#e6efff>(236</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff>) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-right-style:none; border-right-width:medium" align=right width="10%"
    bgColor=#e6efff>105 </TD>
    <TD style="BORDER-BOTTOM: medium none #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>
    <p style="text-indent: -15pt; margin-left: 15pt">Net (decrease) increase in cash and cash equivalents during
      the year </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%">(169,640</TD>
    <TD align=left width="2%" >) </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%">158,710 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%" style="border-right-style: none; border-right-width: medium">87,375 </TD>
    <TD align=left width="2%" style="border-style: none; border-width: medium" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>
    <p style="text-indent: -15pt; margin-left: 15pt">Cash and cash equivalents, beginning of
      year </TD>
    <TD align=left width="1%"  bgColor=#e6efff style="border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000">&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff style="border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000">258,442 </TD>
    <TD align=left width="2%"  bgColor=#e6efff style="border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000">&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff style="border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000">&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff style="border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000">99,732 </TD>
    <TD align=left width="2%"  bgColor=#e6efff style="border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000">&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff style="border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000">&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff style="border-right-style: none; border-right-width: medium; border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000">12,357 </TD>
    <TD align=left width="2%"  bgColor=#e6efff style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>
    <p style="text-indent: -15pt; margin-left: 15pt">Cash and cash equivalents, end of year </TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-top-style:solid; border-top-width:1" align=left width="1%"
    >$</TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-top-style:solid; border-top-width:1" align=right
      width="10%">&nbsp;88,802 </TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-top-style:solid; border-top-width:1" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-top-style:solid; border-top-width:1" align=left width="1%"
    >$</TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-top-style:solid; border-top-width:1" align=right
      width="10%">&nbsp;258,442 </TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-top-style:solid; border-top-width:1" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-top-style:solid; border-top-width:1" align=left width="1%"
    >$</TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-right-style:none; border-right-width:medium; border-top-style:solid; border-top-width:1" align=right
      width="10%">&nbsp;99,732 </TD>
    <TD style="BORDER-BOTTOM: medium none #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" align=left width="2%"
    >&nbsp;</TD></TR>
  <TR>
    <TD bgColor=#ffffff>
    <p style="text-indent: -15pt; margin-left: 15pt">&nbsp; </TD>
    <TD width="1%"  bgColor=#ffffff>&nbsp;</TD>
    <TD width="10%" bgColor=#ffffff>&nbsp; </TD>
    <TD width="2%"  bgColor=#ffffff>&nbsp;</TD>
    <TD width="1%"  bgColor=#ffffff>&nbsp;</TD>
    <TD width="10%" bgColor=#ffffff>&nbsp; </TD>
    <TD width="2%"  bgColor=#ffffff>&nbsp;</TD>
    <TD width="1%"  bgColor=#ffffff>&nbsp;</TD>
    <TD width="10%" bgColor=#ffffff style="border-right-style: none; border-right-width: medium">&nbsp; </TD>
    <TD width="2%"  bgColor=#ffffff style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#ffffff>
    <p style="text-indent: -15pt; margin-left: 15pt">Supplemental disclosure of cash flow
      information (note 19) </TD>
    <TD align=left width="1%"  bgColor=#ffffff>&nbsp;</TD>
    <TD align=left width="10%" bgColor=#ffffff>&nbsp; </TD>
    <TD align=left width="2%"  bgColor=#ffffff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#ffffff>&nbsp;</TD>
    <TD align=left width="10%" bgColor=#ffffff>&nbsp; </TD>
    <TD align=left width="2%"  bgColor=#ffffff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#ffffff>&nbsp;</TD>
    <TD align=left width="10%" bgColor=#ffffff>&nbsp; </TD>
    <TD align=left width="2%"  bgColor=#ffffff style="border-top-style: none; border-top-width: medium">&nbsp;</TD></TR>
  <TR>
    <TD bgColor=#ffffff>
    <p style="text-indent: -15pt; margin-left: 15pt">&nbsp; </TD>
    <TD width="1%"  bgColor=#ffffff>&nbsp;</TD>
    <TD width="10%" bgColor=#ffffff>&nbsp; </TD>
    <TD width="2%"  bgColor=#ffffff>&nbsp;</TD>
    <TD width="1%"  bgColor=#ffffff>&nbsp;</TD>
    <TD width="10%" bgColor=#ffffff>&nbsp; </TD>
    <TD width="2%"  bgColor=#ffffff>&nbsp;</TD>
    <TD width="1%"  bgColor=#ffffff>&nbsp;</TD>
    <TD width="10%" bgColor=#ffffff>&nbsp; </TD>
    <TD width="2%"  bgColor=#ffffff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#ffffff>
    <p style="text-indent: -15pt; margin-left: 15pt">See accompanying notes to consolidated
      financial statements. </TD>
    <TD align=left width="1%"  bgColor=#ffffff>&nbsp;</TD>
    <TD align=left width="10%" bgColor=#ffffff>&nbsp; </TD>
    <TD align=left width="2%"  bgColor=#ffffff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#ffffff>&nbsp;</TD>
    <TD align=left width="10%" bgColor=#ffffff>&nbsp; </TD>
    <TD align=left width="2%"  bgColor=#ffffff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#ffffff>&nbsp;</TD>
    <TD align=left width="10%" bgColor=#ffffff>&nbsp; </TD>
    <TD align=left width="2%"
  bgColor=#ffffff>&nbsp;</TD></TR></TABLE>
<P align=right>GILDAN 2011 REPORT TO SHAREHOLDERS P.56</P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<!--$$/page=-->
<table border="0" cellpadding="0" cellspacing="0" style="border-collapse: collapse" bordercolor="#111111" width="100%">
  <tr>
    <td width="50%"><font size="2">
    <IMG
src="financialsx1x1.jpg" border=0 width="96" height="21"></font></td>
    <td width="50%">
<P align=right><font size="2">NOTES TO CONSOLIDATED FINANCIAL STATEMENTS </font></P>
    </td>
  </tr>
</table>
<P align=justify><B>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS </B></P>
<P align=justify><B>Years ended October 2, 2011, October 3, 2010 and October 4,
2009 <BR></B><B>(Tabular amounts in thousands or thousands of U.S. dollars
except per share data, unless otherwise indicated) </B></P>
<P align=justify>Gildan Activewear Inc. (the "Company") is incorporated under
the <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 28. All references to
2011, 2010 and 2009 represent the fiscal years ended October 2, 2011, October 3,
2010 and October 4, 2009, respectively. </P>
<P align=justify><B>1. SIGNIFICANT ACCOUNTING POLICIES:</B><BR></P>
<P align=justify>The consolidated financial statements are expressed in U.S.
dollars and have been prepared in accordance with Canadian generally accepted
accounting principles. The Company&#146;s functional currency is the U.S. dollar. The
principal accounting policies of the Company are summarized as follows: </P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0 BCLLIST>

  <TR>
    <TD vAlign=top width="5%"><B>(a)</B> </TD>
    <TD>
      <P align=justify><B>Basis of presentation:</B></P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD>
      <P align=justify>The accompanying consolidated financial statements
      include the accounts of the Company and its subsidiaries. The consolidated
      financial statements also include the accounts of a yarn spinning joint
      venture with Frontier Spinning Mills, Inc., CanAm Yarns LLC (&#147;CanAm&#148;), as
      the Company is considered the primary beneficiary of this entity. All
      significant intercompany balances and transactions have been eliminated on
      consolidation.</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top width="5%"><B>(b)</B> </TD>
    <TD>
      <P align=justify><B>Future accounting standards:</B></P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD>
      <P align=justify>In February 2008, the Canadian Accounting Standards Board
      (AcSB) confirmed that International Financial Reporting Standards as
      issued by the International Accounting Standards Board (IFRS), will
      replace Canadian generally accepted accounting principles for publicly
      accountable enterprises effective for fiscal years beginning on or after
      January 1, 2011. As a result, the Company will be required to change over
      to IFRS for its fiscal 2012 interim and annual consolidated financial
      statements beginning October 3, 2011 with comparative information for
      fiscal 2011.</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top width="5%"><B>(c)</B> </TD>
    <TD>
      <P align=justify><B>Cash and cash equivalents:</B></P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD>
      <P align=justify>The Company considers all liquid investments with
      maturities of three months or less when acquired to be cash
      equivalents.</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top width="5%"><B>(d)</B> </TD>
    <TD>
      <P align=justify><B>Trade accounts receivable:</B></P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD>
      <P align=justify>Trade accounts receivable consist of amounts due from our
      normal business activities. We maintain an allowance for doubtful accounts
      to reflect expected credit losses. We provide for bad debts based on
      collection history and specific risks identified on a customer-by-customer
      basis. Uncollected accounts are written off through the allowance for
      doubtful accounts.</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top width="5%"><B>(e)</B> </TD>
    <TD>
      <P align=justify><B>Inventories:</B></P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD>
      <P align=justify>Inventories are stated at the lower of First-In First-Out
      cost and net realizable value. Inventory costs include the purchase price
      and other costs directly related to the acquisition of raw materials used
      in the manufacturing process, and the cost of purchased finished goods.
      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.</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top width="5%"><B>(f)</B> </TD>
    <TD>
      <P align=justify><B>Property, plant and equipment:</B></P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD>
      <P align=justify>Property, plant and equipment are initially recorded at
      cost. Depreciation and amortization are recorded on a straight-line basis
      over the following estimated useful lives:</P></TD></TR></TABLE><BR>
<div align="right">
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="95%" border=0>

  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>Asset </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="50%">Useful life </TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Buildings and improvements </TD>
    <TD align=right width="50%" bgColor=#e6efff>5 to 40 years </TD></TR>
  <TR vAlign=top>
    <TD align=left>Manufacturing equipment </TD>
    <TD align=right width="50%">3 to 10 years </TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Other equipment </TD>
    <TD align=right width="50%" bgColor=#e6efff>2 to 10 years
</TD></TR></TABLE>
</div>
<P align=right>GILDAN 2011 REPORT TO SHAREHOLDERS P.57</P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
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<table border="0" cellpadding="0" cellspacing="0" style="border-collapse: collapse" bordercolor="#111111" width="100%">
  <tr>
    <td width="50%"><font size="2">
    <IMG
src="financialsx1x1.jpg" border=0 width="96" height="21"></font></td>
    <td width="50%">
<P align=right><font size="2">NOTES TO CONSOLIDATED FINANCIAL STATEMENTS </font></P>
    </td>
  </tr>
</table>
<P align=justify><B>1. SIGNIFICANT ACCOUNTING POLICIES (continued):</B><BR></P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0 BCLLIST>

  <TR>
    <TD vAlign=top width="5%"><B>(f)</B> </TD>
    <TD>
      <P align=justify><B>Property, plant and equipment
  (continued):</B></P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD>
      <P align=justify>Assets not yet utilized in operations include
      expenditures incurred to date for plant expansions which are still in
      process and equipment not yet placed into service as at the balance sheet
      date. Depreciation on these assets commences when the assets are put into
      service.</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top width="5%"><B>(g)</B> </TD>
    <TD>
      <P align=justify><B>Assets held for sale:</B></P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD>
      <P align=justify>Long-lived assets are classified as held for sale when
      certain criteria are met, which include: the Company&#146;s commitment to a
      plan to sell the assets; the assets are available for immediate sale in
      their present condition; an active program to locate buyers and other
      actions to sell the assets have been initiated; the sale of the assets is
      probable and their transfer is expected to qualify for recognition as a
      completed sale within one year; the assets are being actively marketed at
      reasonable prices in relation to their fair value; and it is unlikely that
      significant changes will be made to the plan to sell the assets or that
      the plan will be withdrawn.</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD>
      <P align=justify>The Company measures assets held for sale at the lower of
      carrying amount or fair value less cost to sell. These assets are not
      depreciated.</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top width="5%"><B>(h)</B> </TD>
    <TD>
      <P align=justify><B>Intangible assets:</B></P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD>
      <P align=justify>Intangible assets include identifiable intangible assets
      acquired in a business combination, which are initially recorded at fair
      value at the date of acquisition, and include trademarks, license
      agreements, customer contracts and customer relationships, and non-compete
      agreements. Intangible assets also include the cost of computer software
      that is not an integral part of the related hardware. Intangible assets
      with finite lives are depreciated on a straight-line basis over the
      following estimated useful lives:</P></TD></TR></TABLE><BR>
<DIV align=right>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="95%" border=0>

  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>Asset </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="50%">Useful life </TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Customer contracts and customer
      relationships </TD>
    <TD align=right width="50%" bgColor=#e6efff>20 years </TD></TR>
  <TR vAlign=top>
    <TD align=left>License agreements</TD>
    <TD align=right width="50%">7 years </TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Computer software </TD>
    <TD align=right width="50%" bgColor=#e6efff>4 years </TD></TR>
  <TR vAlign=top>
    <TD align=left>Non-compete agreements </TD>
    <TD align=right width="50%">2 years </TD></TR></TABLE></DIV>
<P style="MARGIN-LEFT: 5%" align=justify>Trademarks are not amortized as they
are considered to be indefinite life intangible assets, and are tested for
impairment annually, or more frequently if events or changes in circumstances
indicate that the asset might be impaired.</P>
<P style="MARGIN-LEFT: 5%" align=justify>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; 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. The capitalization of costs ceases and depreciation commences
when the assets are put into service. </P>
<TABLE BCLLIST style="font-size:10pt;border-color:black;border-collapse:collapse;" cellpadding="0" cellspacing="0" width="100%" border="0">
<TR>
	<TD width=5% valign=top>
<B>(i)</B> 	</TD>
	<TD>
<P align="justify"><B>Impairment of long-lived assets:</B></P>
	</TD>
</TR>
</TABLE>
<P style="MARGIN-LEFT: 5%" align=justify>Property, plant and equipment and
intangible assets with finite lives are reviewed for potential impairment if
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 (or asset group for which identifiable cash flows are largely independent
of the cash flows of other assets and liabilities) 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 or asset group, with fair value being determined based
on the present value of expected future cash flows or appraised values,
depending on the nature of the asset or asset group. The annual impairment test
for trademarks, which are considered to be intangible assets with indefinite
lives, consists of a comparison of the fair value of the trademarks, using the
present value of expected future cash flows, with the carrying amount of the
trademarks. If the carrying amount of the trademarks exceeds their fair value,
an impairment loss is recognized in an amount equal to the excess.</P>
<P align=right>GILDAN 2011 REPORT TO SHAREHOLDERS P.58</P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>


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<table border="0" cellpadding="0" cellspacing="0" style="border-collapse: collapse" bordercolor="#111111" width="100%">
  <tr>
    <td width="50%"><font size="2">
    <IMG
src="financialsx1x1.jpg" border=0 width="96" height="21"></font></td>
    <td width="50%">
<P align=right><font size="2">NOTES TO CONSOLIDATED FINANCIAL STATEMENTS </font></P>
    </td>
  </tr>
</table>
<P align="justify">
<B>1. SIGNIFICANT ACCOUNTING POLICIES (continued):</B><BR>
</P>
<TABLE BCLLIST style="font-size:10pt;border-color:black;border-collapse:collapse;" cellpadding="0" cellspacing="0" width="100%" border="0">
<TR>
	<TD width=5% valign=top>
<B>(i)</B> 	</TD>
	<TD>
<P align="justify"><B>Impairment of long-lived assets (continued):</B></P>
	</TD>
</TR>
<TR><TD>&nbsp;</TD><TD>&nbsp;</TD></TR><TR>
<TD width=5%></TD>	<TD>
<P align="justify">Assessing the impairment of long-lived assets requires the Company to make significant estimates and assumptions, including, but not limited to, the expected future cash flows that the asset or asset group will generate based on
internal plans, which incorporate management&#146;s judgments as to the remaining service potential of the long-lived assets, and their fair value on an open market. Changes in circumstances, such as technological advances, adverse changes in third
party licensing arrangements, changes to the Company&#146;s business strategy, and changes in economic conditions can result in actual useful lives and future cash flows differing significantly from estimates
and could result in increased charges for
amortization or impairment.</P>
	</TD>
</TR>
<TR><TD>&nbsp;</TD><TD>&nbsp;</TD></TR><TR>
	<TD width=5% valign=top>
<B>(j)</B> 	</TD>
	<TD>
<P align="justify"><B>Goodwill:</B></P>
	</TD>
</TR>
<TR><TD>&nbsp;</TD><TD>&nbsp;</TD></TR><TR>
<TD width=5%></TD>	<TD>
<P align="justify">Goodwill recorded in connection with business combinations represents the excess of the purchase price over the fair value of net assets acquired, and is assigned to a reporting unit at the time of acquisition. Goodwill is not
amortized and is tested for impairment on an annual basis, or more frequently if an event or circumstance occurs that more likely than not reduces the fair value of a reporting unit below its carrying amount. The annual goodwill impairment test
involves a two-step process. First, the fair value of a reporting unit is compared with its carrying amount, including goodwill, in order to identify a potential impairment. The fair value of the reporting unit under the first step is determined
based on the present value of expected future cash flows. The second step is required if the carrying amount of a reporting unit exceeds its fair value as determined in the first step, in which case the estimated fair value of the reporting unit is
allocated to all of the assets and liabilities of the reporting unit, including the implied fair value of any intangible assets that would be recorded had the reporting unit been acquired in a business acquisition. Any fair value in excess of
amounts allocated to the reporting unit&#146;s net assets represents the implied fair value of goodwill for that reporting unit. If the carrying value of the goodwill exceeds the implied fair value, the carrying value is written down by an amount
equal to such excess.</P>
	</TD>
</TR>
<TR><TD>&nbsp;</TD><TD>&nbsp;</TD></TR><TR>
<TD width=5%></TD>	<TD>
<P align="justify">The goodwill impairment testing process involves the use of significant assumptions, estimates and judgments with respect to a variety of factors, including expected sales, gross margins, selling, general and administrative
expenses, capital expenditures, cash flows and the selection of an appropriate discount rate, all of which are subject to inherent uncertainties and subjectivity. The assumptions are based on annual business plans and other forecasted results as
well as discount rates which are used to reflect market-based estimates of the risks associated with the projected cash flows, based on the best information available as of the date of the impairment test. 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.</P>
	</TD>
</TR>
<TR><TD>&nbsp;</TD><TD>&nbsp;</TD></TR><TR>
	<TD width=5% valign=top>
<B>(k)</B> 	</TD>
	<TD>
<P align="justify"><B>Foreign currency translation:</B></P>
	</TD>
</TR>
<TR><TD>&nbsp;</TD><TD>&nbsp;</TD></TR><TR>
<TD width=5%></TD>	<TD>
<P align="justify">Monetary assets and liabilities of the Canadian and foreign operations denominated in currencies other than U.S. dollars are translated at the rates of exchange at the balance sheet date. Other balance sheet items denominated in
currencies other than U.S. dollars are translated at the rates prevailing at the respective transaction dates. Income and expenses denominated in currencies other than U.S. dollars are translated at average rates prevailing during the year. Gains or
losses on foreign exchange are recorded in net earnings.</P>
	</TD>
</TR>
<TR><TD>&nbsp;</TD><TD>&nbsp;</TD></TR><TR>
<TD width=5%></TD>	<TD>
<P align="justify">The Company&#146;s 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 net earnings. The Company
does not currently have any self-sustaining foreign subsidiaries.</P>
	</TD>
</TR>
<TR><TD>&nbsp;</TD><TD>&nbsp;</TD></TR><TR>
	<TD width=5% valign=top>
<B>(l)</B> 	</TD>
	<TD>
<P align="justify"><B>Revenue recognition:</B></P>
	</TD>
</TR>
<TR><TD>&nbsp;</TD><TD>&nbsp;</TD></TR><TR>
<TD width=5%></TD>	<TD>
<P align="justify">Revenue is recognized upon shipment of products to customers, since title passes upon shipment, and to the extent that the selling price is fixed or determinable. At the time of sale, estimates are made for customer price
discounts and volume rebates based on the terms of existing programs. Accruals required for new programs, which relate to prior sales, are recorded at the time the new program is introduced. Sales are recorded net of these program costs and a
provision for estimated sales returns, which is based on historical experience, current trends and other known factors, and exclude sales taxes.</P>
	</TD>
</TR>
</TABLE>
<P align="right">
GILDAN 2011 REPORT TO SHAREHOLDERS P.59</P>

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



<!--$$/page=-->
<table border="0" cellpadding="0" cellspacing="0" style="border-collapse: collapse" bordercolor="#111111" width="100%">
  <tr>
    <td width="50%"><font size="2">
    <IMG
src="financialsx1x1.jpg" border=0 width="96" height="21"></font></td>
    <td width="50%">
<P align=right><font size="2">NOTES TO CONSOLIDATED FINANCIAL STATEMENTS </font></P>
    </td>
  </tr>
</table>
<P align="justify">
<B>1. SIGNIFICANT ACCOUNTING POLICIES (continued):</B><BR>
</P>
<TABLE BCLLIST style="font-size:10pt;border-color:black;border-collapse:collapse;" cellpadding="0" cellspacing="0" width="100%" border="0">
<TR>
	<TD width=5% valign=top>
<B>(m)</B> 	</TD>
	<TD>
<P align="justify"><B>Cost of sales and gross profit:</B></P>
	</TD>
</TR>
<TR><TD>&nbsp;</TD><TD>&nbsp;</TD></TR><TR>
<TD width=5%></TD>	<TD>
<P align="justify">Cost of sales includes all raw material costs, manufacturing conversion costs, including manufacturing depreciation expense, sourcing costs, inbound freight and inter-facility transportation costs, and outbound freight to
customers. Cost of sales also includes the cost of purchased finished goods, costs relating to purchasing, receiving and inspection activities, manufacturing administration, third-party manufacturing services, sales-based royalty costs, insurance,
inventory write-downs, and customs and duties.</P>
	</TD>
</TR>
<TR><TD>&nbsp;</TD><TD>&nbsp;</TD></TR><TR>
<TD width=5%></TD>	<TD>
<P align="justify">Gross profit is the result of sales less cost of sales. The Company&#146;s gross profit may not be comparable to this metric as reported by other companies, since some entities exclude depreciation expense, outbound freight to
customers and royalty costs from cost of sales.</P>
	</TD>
</TR>
<TR><TD>&nbsp;</TD><TD>&nbsp;</TD></TR><TR>
	<TD width=5% valign=top>
<B>(n)</B> 	</TD>
	<TD>
<P align="justify"><B>Selling, general and administrative expenses:</B></P>
	</TD>
</TR>
<TR><TD>&nbsp;</TD><TD>&nbsp;</TD></TR><TR>
<TD width=5%></TD>	<TD>
<P align="justify">Selling, general and administrative (SG&amp;A) expenses include warehousing and handling costs, selling and administrative personnel costs, advertising and marketing expenses, costs of leased facilities and equipment, professional
fees, non-manufacturing depreciation and amortization expense, and other general and administrative expenses. SG&amp;A expenses also include bad debt expense, and amortization of customer-related intangible assets, license agreements and non-compete
agreements.</P>
	</TD>
</TR>
<TR><TD>&nbsp;</TD><TD>&nbsp;</TD></TR><TR>
	<TD width=5% valign=top>
<B>(o)</B> 	</TD>
	<TD>
<P align="justify"><B>Advertising and product introduction expenditures:</B></P>
	</TD>
</TR>
<TR><TD>&nbsp;</TD><TD>&nbsp;</TD></TR><TR>
<TD width=5%></TD>	<TD>
<P align="justify">Advertising and co-op advertising expenses are expensed as incurred in selling, general and administrative expenses. Product introduction expenditures are one-time fees paid to retailers to allow the Company&#146;s products to be
placed on store shelves. These fees are recognized as a reduction in revenue when incurred unless the Company receives a benefit over a period of time and certain other criteria are met, such as 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.</P>
	</TD>
</TR>
<TR><TD>&nbsp;</TD><TD>&nbsp;</TD></TR><TR>
	<TD width=5% valign=top>
<B>(p)</B> 	</TD>
	<TD>
<P align="justify"><B>Cotton and yarn procurements:</B></P>
	</TD>
</TR>
<TR><TD>&nbsp;</TD><TD>&nbsp;</TD></TR><TR>
<TD width=5%></TD>	<TD>
<P align="justify">The Company contracts to buy cotton and yarn with future delivery dates at fixed prices in order to reduce the effects of fluctuations in the prices of cotton used in the manufacture of its products. These contracts are not used
for trading purposes 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.</P>
	</TD>
</TR>
<TR><TD>&nbsp;</TD><TD>&nbsp;</TD></TR><TR>
	<TD width=5% valign=top>
<B>(q)</B> 	</TD>
	<TD>
<P align="justify"><B>Financial instruments and hedging relationships:</B></P>
	</TD>
</TR>
<TR><TD>&nbsp;</TD><TD>&nbsp;</TD></TR><TR>
<TD width=5%></TD>	<TD>
<P align="justify">All financial instruments are classified into one of the following five categories: held-for-trading, held-to-maturity investments, loans and receivables, available-for-sale financial assets or other financial liabilities. All
financial instruments, including derivatives, are included on the consolidated balance sheet and are measured at fair 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 or is determined to be impaired. 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.</P>
	</TD>
</TR>
</TABLE>
<P align="right">
GILDAN 2011 REPORT TO SHAREHOLDERS P.60</P>

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<!--$$/page=-->
<table border="0" cellpadding="0" cellspacing="0" style="border-collapse: collapse" bordercolor="#111111" width="100%">
  <tr>
    <td width="50%"><font size="2">
    <IMG
src="financialsx1x1.jpg" border=0 width="96" height="21"></font></td>
    <td width="50%">
<P align=right><font size="2">NOTES TO CONSOLIDATED FINANCIAL STATEMENTS </font></P>
    </td>
  </tr>
</table>
<P align="justify">
<B>1. SIGNIFICANT ACCOUNTING POLICIES (continued):</B><BR>
</P>
<TABLE BCLLIST style="font-size:10pt;border-color:black;border-collapse:collapse;" cellpadding="0" cellspacing="0" width="100%" border="0">
<TR>
	<TD width=5% valign=top>
<B>(q)</B> 	</TD>
	<TD>
<P align="justify"><B>Financial instruments and hedging relationships (continued):</B></P>
	</TD>
</TR>
<TR><TD>&nbsp;</TD><TD>&nbsp;</TD></TR><TR>
<TD width=5%></TD>	<TD>
<P align="justify">Derivative instruments are recorded as either assets or liabilities measured at their fair value unless exempted from derivative treatment as a normal purchase and sale. Certain derivatives embedded in other contracts must also be
measured at fair value. All changes in the fair value of derivatives are recognized in net earnings unless specific hedge criteria are met, which requires that a company must formally document, designate and assess the effectiveness of transactions
that receive hedge accounting. Derivatives that qualify as hedging instruments must be designated as either a &#147;cash flow hedge,&#148; when the hedged item is a future cash flow, or a &#147;fair value hedge,&#148; when the hedged item is a
recognized asset or liability. The effective portion of unrealized gains and losses related to a cash flow hedge are included in other comprehensive income. For a cash flow hedge, when hedging instruments become ineffective before their maturity or
the hedging relationship is terminated, any gains, losses, revenues or expenses associated with the hedging item that had previously been recognized in other comprehensive income as a result of applying hedge accounting are carried forward to be
recognized in net earnings in the same period as the hedged item affects net earnings, to the extent that it is probable that the forecasted cash flows will occur. For a fair value hedge, both the derivative and the hedged item are recorded at fair
value in the consolidated balance sheet and the unrealized gains and losses from both items are included in net earnings. Any derivative instrument that does not qualify for hedge accounting is recorded at fair value at each reporting date with the
change in fair value for the period being included in net earnings.</P>
	</TD>
</TR>
<TR><TD>&nbsp;</TD><TD>&nbsp;</TD></TR><TR>
<TD width=5%></TD>	<TD>
<P align="justify">When the Company utilizes derivatives in hedge accounting relationships, the Company formally documents all relationships between hedging instruments and hedged items, as well as its risk management objective and strategy for
undertaking various hedge transactions. This process includes linking all derivatives to specific assets and liabilities on the balance sheet or to specific firm commitments or anticipated transactions. The Company also formally assesses, both at
the hedge&#146;s inception and on an ongoing basis, whether the derivatives that are used in hedging transactions are effective in offsetting cash flows of hedged items.</P>
	</TD>
</TR>
<TR><TD>&nbsp;</TD><TD>&nbsp;</TD></TR><TR>
	<TD width=5% valign=top>
<B>(r)</B> 	</TD>
	<TD>
<P align="justify"><B>Comprehensive income:</B></P>
	</TD>
</TR>
<TR><TD>&nbsp;</TD><TD>&nbsp;</TD></TR><TR>
<TD width=5%></TD>	<TD>
<P align="justify">Comprehensive income, which consists of net earnings and other comprehensive income, is defined as the change in shareholders&#146; equity from transactions and other events from non-owner sources. Other comprehensive income
refers to items recognized in comprehensive income but that are excluded from net earnings calculated in accordance with generally accepted accounting principles and includes unrealized gains and losses on financial assets classified as available
for sale, unrealized foreign currency translation gains and losses arising from self-sustaining foreign subsidiaries and changes in the fair value of the effective portion of qualifying cash flow hedging instruments.</P>
	</TD>
</TR>
<TR><TD>&nbsp;</TD><TD>&nbsp;</TD></TR><TR>
	<TD width=5% valign=top>
<B>(s)</B> 	</TD>
	<TD>
<P align="justify"><B>Income taxes:</B></P>
	</TD>
</TR>
<TR><TD>&nbsp;</TD><TD>&nbsp;</TD></TR><TR>
<TD width=5%></TD>	<TD>
<P align="justify">The Company utilizes the asset and liability method for accounting for income taxes which requires the establishment of future tax assets and liabilities, measured at substantively enacted tax rates, for all temporary differences
caused when the tax bases of assets and liabilities differ from those reported in the financial statements. The Company recognizes 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. 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.</P>
	</TD>
</TR>
<TR><TD>&nbsp;</TD><TD>&nbsp;</TD></TR><TR>
<TD width=5%></TD>	<TD>
<P align="justify">The Company&#146;s income tax provision is based on interpretations of applicable tax laws, including income tax treaties between various countries in which the Company operates as well as underlying rules and regulations with
respect to transfer pricing. These interpretations involve judgments and estimates and may be challenged through government taxation audits that the Company is regularly subject to. The Company recognizes the benefits of uncertain tax filing
positions in its financial statements when it is considered likely that the tax position will be sustained upon examination by tax authorities, including the resolution of any related appeals or litigation processes, based on the technical merits of
the position. The tax benefits recognized from such positions are measured at the best estimate of the amounts expected to be realized upon ultimate resolution. The Company periodically reviews and adjusts its estimates and assumptions of income tax
assets and liabilities as circumstances warrant, such as changes to tax laws, administrative guidance, change in management&#146;s assessment of the technical merits of its positions due to new information, and the resolution of uncertainties
through either the conclusion of tax audits or expiration of prescribed time limits within relevant statutes. Previously recognized tax benefits relating to uncertain tax filing positions are derecognized if it becomes likely that the Company&#146;s
tax position will no longer be upheld.</P>
	</TD>
</TR>
</TABLE>
<P align="right">
GILDAN 2011 REPORT TO SHAREHOLDERS P.61</P>

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<table border="0" cellpadding="0" cellspacing="0" style="border-collapse: collapse" bordercolor="#111111" width="100%">
  <tr>
    <td width="50%"><font size="2">
    <IMG
src="financialsx1x1.jpg" border=0 width="96" height="21"></font></td>
    <td width="50%">
<P align=right><font size="2">NOTES TO CONSOLIDATED FINANCIAL STATEMENTS </font></P>
    </td>
  </tr>
</table>
<P align="justify">
<B>1. SIGNIFICANT ACCOUNTING POLICIES (continued):</B><BR>
</P>
<TABLE BCLLIST style="font-size:10pt;border-color:black;border-collapse:collapse;" cellpadding="0" cellspacing="0" width="100%" border="0">
<TR>
	<TD width=5% valign=top>
<B>(t)</B> 	</TD>
	<TD>
<P align="justify"><B>Stock-based compensation and other stock-based payments:</B></P>
	</TD>
</TR>
<TR><TD>&nbsp;</TD><TD>&nbsp;</TD></TR><TR>
<TD width=5%></TD>	<TD>
<P align="justify">The Company follows the fair value-based method to account for all transactions where services are received in exchange for stock-based compensation and other stock-based payments. For stock options and Treasury restricted share
units, compensation cost is measured at the fair value at the date of grant, net of estimated forfeitures, and is expensed over the award&#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's shares at the vesting date, net of estimated forfeitures, and is expensed over the award'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'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. The measurement of the
compensation cost for certain Treasury and non-Treasury restricted share units, for which the vesting is partially contingent on the achievement of performance conditions, includes the probability of achieving the performance conditions, net of
estimated forfeitures.</P>
	</TD>
</TR>
<TR><TD>&nbsp;</TD><TD>&nbsp;</TD></TR><TR>
<TD width=5%></TD>	<TD>
<P align="justify">For employee share purchase plans, the Company's contribution, on the employee's behalf, is recognized as compensation expense with an offset to share capital, and consideration paid by employees on purchase of stock is also
recorded as an increase to share capital.</P>
	</TD>
</TR>
<TR><TD>&nbsp;</TD><TD>&nbsp;</TD></TR><TR>
	<TD width=5% valign=top>
<B>(u)</B> 	</TD>
	<TD>
<P align="justify"><B>Employee future benefits:</B></P>
	</TD>
</TR>
<TR><TD>&nbsp;</TD><TD>&nbsp;</TD></TR><TR>
<TD width=5%></TD>	<TD>
<P align="justify">The Company offers group defined contribution plans to eligible employees whereby the Company matches employees' contributions up to a fixed percentage of the employee's salary. Contributions by the Company to trustee-managed
investment portfolios or employee associations are expensed as incurred.</P>
	</TD>
</TR>
<TR><TD>&nbsp;</TD><TD>&nbsp;</TD></TR><TR>
<TD width=5%></TD>	<TD>
<P align="justify">In connection with the acquisition of Gold Toe Moretz in April 2011 as described in note 2, the Company acquired a funded qualified defined benefit plan (&#147;Retirement Plan&#148;) covering certain employees of Gold Toe Moretz.
The Retirement Plan has been frozen since January 1, 2007, and as such no additional employees became participants in the Retirement Plan and existing participants in the Retirement Plan ceased accruing any additional benefits after that date. The
pension obligation is actuarially determined using the projected benefit method to determine plan obligations and related periodic costs. Assets of the Retirement Plan are invested in high quality money market funds and are recorded at fair value.
Plan valuations require economic assumptions, including expected rates of return on plan assets, discount rates to value plan obligations, and participant demographic assumptions including mortality rates. Because the Retirement Plan is frozen,
salary escalation is not considered in the actuarial valuation, and there are no current service costs incurred. The actuarial assumptions used may differ materially from actual results due to changing market and economic conditions. Actual results
that differ from the actuarial assumptions are reflected as unrecognized gains and losses. Unrecognized gains and losses that exceed 10% of the greater of the plan&#146;s projected benefit obligations or market value of assets at the beginning of
the period are amortized to earnings over the estimated service life of the remaining plan participants.</P>
	</TD>
</TR>
<TR><TD>&nbsp;</TD><TD>&nbsp;</TD></TR><TR>
<TD width=5%></TD>	<TD>
<P align="justify">The Company also 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 payment upon
termination of employment. The liability is based on management&#146;s best estimates of the ultimate costs to be incurred to settle the liability and is based on a number of assumptions and factors, including historical trends, actuarial
assumptions and economic conditions.</P>
	</TD>
</TR>
<TR><TD>&nbsp;</TD><TD>&nbsp;</TD></TR><TR>
	<TD width=5% valign=top>
<B>(v)</B> 	</TD>
	<TD>
<P align="justify"><B>Earnings per share:</B></P>
	</TD>
</TR>
<TR><TD>&nbsp;</TD><TD>&nbsp;</TD></TR><TR>
<TD width=5%></TD>	<TD>
<P align="justify">Basic earnings per share are computed by dividing net earnings by the weighted average number of common shares outstanding for the year. Diluted earnings per share are computed using the treasury stock method. Under the treasury
stock method, the weighted average number of common shares outstanding for the period is increased to include additional shares from the assumed exercise of options and the issuance of Treasury restricted share units, if dilutive. The number of
additional shares is calculated by assuming that all outstanding options are exercised and all outstanding Treasury restricted share units have vested, and that the proceeds from such exercises, as well as the amount of unrecognized stock-based
compensation which is considered to be assumed proceeds under the treasury stock method, are used to repurchase common shares at the average share price for the period. For Treasury restricted share units, only the unrecognized stock-based
compensation is considered assumed proceeds since there is no exercise price paid by the holder.</P>
	</TD>
</TR>
</TABLE>
<P align="right">
GILDAN 2011 REPORT TO SHAREHOLDERS P.62</P>

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

<!--$$/page=-->
<table border="0" cellpadding="0" cellspacing="0" style="border-collapse: collapse" bordercolor="#111111" width="100%">
  <tr>
    <td width="50%"><font size="2">
    <IMG
src="financialsx1x1.jpg" border=0 width="96" height="21"></font></td>
    <td width="50%">
<P align=right><font size="2">NOTES TO CONSOLIDATED FINANCIAL STATEMENTS </font></P>
    </td>
  </tr>
</table>
<P align=justify><B>1. SIGNIFICANT ACCOUNTING POLICIES (continued):</B><BR></P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0 BCLLIST>

  <TR>
    <TD vAlign=top width="5%"><B>(w)</B> </TD>
    <TD>
      <P align=justify><B>Environmental expenditures:</B></P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD>
      <P align=justify>Environmental expenditures that relate to current
      operations are expensed or capitalized as appropriate. Expenditures that
      extend the life of the related property or mitigate or prevent future
      environmental contamination are capitalized in property, plant and
      equipment and are generally amortized over the remaining useful life of
      the underlying asset. Expenditures that relate to an existing condition
      caused by past operations and which are not expected to contribute to
      current or future operations are expensed. Liabilities are recorded when
      environmental assessments and/or remedial efforts are likely, and when the
      costs, based on a specific plan of action in terms of the technology to be
      used and the extent of the corrective action required, can be reasonably
      estimated.</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD>
      <P align=justify>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 2, 2011 and
      October 3, 2010, 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.</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top width="5%"><B>(x)</B> </TD>
    <TD>
      <P align=justify><B>Business acquisitions:</B></P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD>
      <P align=justify>The Company accounts for business acquisitions using the
      purchase method. Accordingly, the purchase price of a business
      acquisition, including direct and incremental costs incurred to effect the
      business combination, is allocated to its identifiable net assets,
      including certain restructuring and integration costs of the acquired
      business, on the basis of estimated fair values as at the date of
      purchase, with any excess being assigned to goodwill. When the amounts
      assigned to identifiable net assets exceed the cost of the purchase,
      resulting in negative goodwill, the excess is applied, to the extent
      possible, to certain non-current assets, with the balance recorded as an
      extraordinary gain.</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top width="5%"><B>(y)</B> </TD>
    <TD>
      <P align=justify><B>Use of estimates:</B></P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD>
      <P align=justify>The preparation of financial statements in conformity
      with generally accepted accounting principles requires management to make
      estimates and assumptions that affect the reported amounts of assets and
      liabilities and disclosure of contingent liabilities and fair values of
      financial instruments at the date of the financial statements, and the
      reported amounts of revenues and expenses during the reporting period.
      These estimates involve varying degrees of judgment and uncertainty, and
      are based on a number of factors, including historical experience, current
      events and industry trends, information available from outside sources,
      management&#146;s business plans, and other assumptions that management
      believes are reasonable based on information available at the time they
      are made. Given the inherent uncertainty involved in making estimates,
      actual results reported in future periods could differ materially from
      these estimates.</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD>
      <P align=justify>Significant areas requiring the use of management
      estimates and assumptions include: the allowance for doubtful accounts and
      accruals for sales promotional programs; the valuation of inventory at the
      lower of cost and net realizable value; the useful life and valuation of
      property, plant and equipment and intangible assets with finite lives;
      actuarial and economic assumptions used in determining pension costs and
      accrued pension liabilities; the composition and valuation of future
      income tax assets and liabilities; and the assumptions used in impairment
      tests on long-lived assets and indefinite life intangible assets and
      goodwill.</P></TD></TR></TABLE>
<P align=justify><B>2. BUSINESS ACQUISITIONS: </B></P>
<P align=justify><B>Gold Toe Moretz Holdings
Corp.</B></P>
<P align=justify>On April 15, 2011, the Company acquired
100% of the capital stock of Gold Toe Moretz Holdings Corp. (&#147;Gold Toe Moretz&#148;),
a leading supplier of high-quality branded athletic, casual and dress socks for
national chains, mass-market retailers, price clubs, department stores and
specialty sporting goods stores in the United States.</P>
<P align=right>GILDAN 2011 REPORT TO SHAREHOLDERS P.63</P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<!--$$/page=-->
<table border="0" cellpadding="0" cellspacing="0" style="border-collapse: collapse" bordercolor="#111111" width="100%">
  <tr>
    <td width="50%"><font size="2">
    <IMG
src="financialsx1x1.jpg" border=0 width="96" height="21"></font></td>
    <td width="50%">
<P align=right><font size="2">NOTES TO CONSOLIDATED FINANCIAL STATEMENTS </font></P>
    </td>
  </tr>
</table>
<P align=justify><B>2. BUSINESS ACQUISITIONS (continued): </B></P>
<P align=justify><B>Gold Toe Moretz Holdings Corp. (continued)</B></P>
<P align=justify>The aggregate purchase price of $349.6 million, net of cash
acquired, included direct acquisition related costs of $7.3 million. The
purchase agreement provides for an additional purchase price consideration of up
to 150,000 common shares which have been issued in the form of treasury
restricted share units (&#147;Treasury RSUs&#148;) at closing, with a fair value of
approximately $4 million as at October 2, 2011. The vesting of the Treasury RSUs
is contingent on specified future events. This contingent consideration has not
been reflected in the purchase price of the acquisition on the basis that the
outcome of the contingency cannot be determined beyond a reasonable doubt at
this time. Any additional purchase price consideration paid by the Company will
be accounted for as an increase to goodwill. The Company financed the
acquisition by using approximately $100 million of cash on hand and
approximately $250 million drawn on the Company&#146;s revolving long-term credit
facility. </P>
<P align=justify>The Company accounted for this acquisition using the purchase
method and the results of Gold Toe Moretz have been consolidated with those of
the Company from the date of acquisition. The Company has allocated the purchase
price to the assets acquired and liabilities assumed based on management&#146;s best
estimate of their fair values and taking into account all relevant information
available at that time. </P>
<P align=justify>The following table summarizes the estimated fair value of
assets acquired and liabilities assumed at the date of acquisition: </P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left
    bgColor=#ffffff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
     bgColor=#ffffff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-right-style:none; border-right-width:medium" align=left width="12%"
     bgColor=#ffffff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: medium none #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" align=left width="2%"
     bgColor=#ffffff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Assets acquired: </TD>
    <TD align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="12%" bgColor=#e6efff style="border-right-style: none; border-right-width: medium">&nbsp; </TD>
    <TD align=left width="2%" bgColor=#e6efff style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp;Trade accounts receivable
    </TD>
    <TD align=left width="1%">$</TD>
    <TD align=right width="12%" style="border-right-style: none; border-right-width: medium">&nbsp;28,150 </TD>
    <TD align=left width="2%" style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff bordercolor="#000000">&nbsp; &nbsp; &nbsp; &nbsp; &nbsp;Income
      taxes receivable </TD>
    <TD align=left width="1%" bgColor=#e6efff bordercolor="#000000">&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff bordercolor="#000000" style="border-right-style: none; border-right-width: medium">208 </TD>
    <TD align=left width="2%" bgColor=#e6efff bordercolor="#000000" style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bordercolor="#000000">&nbsp; &nbsp; &nbsp; &nbsp; &nbsp;Inventories </TD>
    <TD align=left width="1%" bordercolor="#000000">&nbsp;</TD>
    <TD align=right width="12%" bordercolor="#000000" style="border-right-style: none; border-right-width: medium">57,549 </TD>
    <TD align=left width="2%" bordercolor="#000000" style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff bordercolor="#000000">&nbsp; &nbsp; &nbsp; &nbsp; &nbsp;Prepaid
      expenses and deposits </TD>
    <TD align=left width="1%" bgColor=#e6efff bordercolor="#000000">&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff bordercolor="#000000" style="border-right-style: none; border-right-width: medium">2,080 </TD>
    <TD align=left width="2%" bgColor=#e6efff bordercolor="#000000" style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bordercolor="#000000">&nbsp; &nbsp; &nbsp; &nbsp; &nbsp;Future income taxes,
      current </TD>
    <TD align=left width="1%" bordercolor="#000000">&nbsp;</TD>
    <TD align=right width="12%" bordercolor="#000000" style="border-right-style: none; border-right-width: medium">10,810 </TD>
    <TD align=left width="2%" bordercolor="#000000" style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff bordercolor="#000000">&nbsp; &nbsp; &nbsp; &nbsp; &nbsp;Other
      current assets </TD>
    <TD align=left width="1%" bgColor=#e6efff bordercolor="#000000">&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff bordercolor="#000000" style="border-right-style: none; border-right-width: medium">122 </TD>
    <TD align=left width="2%" bgColor=#e6efff bordercolor="#000000" style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bordercolor="#000000">&nbsp; &nbsp; &nbsp; &nbsp; &nbsp;Property, plant and
      equipment </TD>
    <TD align=left width="1%" bordercolor="#000000">&nbsp;</TD>
    <TD align=right width="12%" bordercolor="#000000" style="border-right-style: none; border-right-width: medium">3,523 </TD>
    <TD align=left width="2%" bordercolor="#000000" style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff bordercolor="#000000">&nbsp; &nbsp; &nbsp; &nbsp;
      &nbsp;Intangible assets (i) </TD>
    <TD align=left width="1%" bgColor=#e6efff bordercolor="#000000">&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff bordercolor="#000000" style="border-right-style: none; border-right-width: medium">204,700 </TD>
    <TD align=left width="2%" bgColor=#e6efff bordercolor="#000000" style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left bordercolor="#000000">&nbsp; &nbsp;
      &nbsp; &nbsp; &nbsp;Other assets </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="1%" bordercolor="#000000">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-right-style:none; border-right-width:medium" align=right width="12%" bordercolor="#000000">495
    </TD>
    <TD style="BORDER-BOTTOM: medium none #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" align=left
    width="2%" bordercolor="#000000">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff style="border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000">&nbsp; </TD>
    <TD align=left width="1%" bgColor=#e6efff style="border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000">&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff style="border-right-style: none; border-right-width: medium; border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000">307,637 </TD>
    <TD align=left width="2%" bgColor=#e6efff bordercolor="#000000" style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR>
    <TD style="border-top-style: solid; border-top-width: 1" bordercolor="#000000">&nbsp; </TD>
    <TD width="1%" style="border-top-style: solid; border-top-width: 1" bordercolor="#000000">&nbsp;</TD>
    <TD width="12%" style="border-right-style: none; border-right-width: medium; border-top-style: solid; border-top-width: 1" bordercolor="#000000">&nbsp; </TD>
    <TD width="2%" bordercolor="#000000" style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff bordercolor="#000000">Liabilities assumed: </TD>
    <TD align=left width="1%" bgColor=#e6efff bordercolor="#000000">&nbsp;</TD>
    <TD align=left width="12%" bgColor=#e6efff bordercolor="#000000" style="border-right-style: none; border-right-width: medium">&nbsp; </TD>
    <TD align=left width="2%" bgColor=#e6efff bordercolor="#000000" style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bordercolor="#000000">&nbsp; &nbsp; &nbsp; &nbsp; &nbsp;Accounts payable and
      accrued liabilities </TD>
    <TD align=left width="1%" bordercolor="#000000">&nbsp;</TD>
    <TD align=right width="12%" bordercolor="#000000" style="border-right-style: none; border-right-width: medium">(54,828</TD>
    <TD align=left width="2%" bordercolor="#000000" style="border-style: none; border-width: medium">) </TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff style="border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000">&nbsp; &nbsp; &nbsp; &nbsp; &nbsp;Future
      income taxes, net, non-current </TD>
    <TD align=left width="1%" bgColor=#e6efff style="border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000">&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff style="border-right-style: none; border-right-width: medium; border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000">(40,377</TD>
    <TD align=left width="2%" bgColor=#e6efff bordercolor="#000000" style="border-style: none; border-width: medium">) </TD></TR>
  <TR vAlign=top>
    <TD align=left style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000">&nbsp; </TD>
    <TD align=left width="1%" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000">&nbsp;</TD>
    <TD align=right width="12%" style="border-right-style: none; border-right-width: medium; border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000">(95,205</TD>
    <TD align=left width="2%" bordercolor="#000000" style="border-style: none; border-width: medium">) </TD></TR>
  <TR>
    <TD bgColor=#e6efff style="border-top-style: solid; border-top-width: 1" bordercolor="#000000">&nbsp; </TD>
    <TD width="1%" bgColor=#e6efff style="border-top-style: solid; border-top-width: 1" bordercolor="#000000">&nbsp;</TD>
    <TD width="12%" bgColor=#e6efff style="border-right-style: none; border-right-width: medium; border-top-style: solid; border-top-width: 1" bordercolor="#000000">&nbsp; </TD>
    <TD width="2%" bgColor=#e6efff bordercolor="#000000" style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bordercolor="#000000">Net identifiable assets acquired </TD>
    <TD align=left width="1%" bordercolor="#000000">&nbsp;</TD>
    <TD align=right width="12%" bordercolor="#000000" style="border-right-style: none; border-right-width: medium">212,432 </TD>
    <TD align=left width="2%" bordercolor="#000000" style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff style="border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000">Goodwill </TD>
    <TD align=left width="1%" bgColor=#e6efff style="border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000">&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff style="border-right-style: none; border-right-width: medium; border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000">137,207 </TD>
    <TD align=left width="2%" bgColor=#e6efff bordercolor="#000000" style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-top-style:solid; border-top-width:1" align=left bordercolor="#000000">Purchase price </TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-top-style:solid; border-top-width:1" align=left width="1%" bordercolor="#000000">$</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-right-style:none; border-right-width:medium; border-top-style:solid; border-top-width:1" align=right
      width="12%" bordercolor="#000000">&nbsp;349,639 </TD>
    <TD style="BORDER-BOTTOM: medium none #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" align=left
    width="2%" bordercolor="#000000">&nbsp;</TD></TR>
  <TR>
    <TD bgColor=#e6efff bordercolor="#000000">&nbsp; </TD>
    <TD width="1%" bgColor=#e6efff bordercolor="#000000">&nbsp;</TD>
    <TD width="12%" bgColor=#e6efff bordercolor="#000000" style="border-right-style: none; border-right-width: medium">&nbsp; </TD>
    <TD width="2%" bgColor=#e6efff bordercolor="#000000" style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bordercolor="#000000">Consideration: </TD>
    <TD align=left width="1%" bordercolor="#000000">&nbsp;</TD>
    <TD align=left width="12%" bordercolor="#000000" style="border-right-style: none; border-right-width: medium">&nbsp; </TD>
    <TD align=left width="2%" bordercolor="#000000" style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff bordercolor="#000000">&nbsp; &nbsp; &nbsp; &nbsp; &nbsp;Cash paid
      at closing, net of cash acquired of $3,576 </TD>
    <TD align=left width="1%" bgColor=#e6efff bordercolor="#000000">$</TD>
    <TD align=right width="12%" bgColor=#e6efff bordercolor="#000000" style="border-right-style: none; border-right-width: medium">&nbsp;342,368 </TD>
    <TD align=left width="2%" bgColor=#e6efff bordercolor="#000000" style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left style="border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000">&nbsp; &nbsp; &nbsp; &nbsp; &nbsp;Direct acquisition costs
    </TD>
    <TD align=left width="1%" style="border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000">&nbsp;</TD>
    <TD align=right width="12%" style="border-right-style: none; border-right-width: medium; border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000">7,271 </TD>
    <TD align=left width="2%" bordercolor="#000000" style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-top-style:solid; border-top-width:1" align=left
      bgColor=#e6efff bordercolor="#000000">&nbsp; </TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-top-style:solid; border-top-width:1" align=left width="1%"
    bgColor=#e6efff bordercolor="#000000">$</TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-right-style:none; border-right-width:medium; border-top-style:solid; border-top-width:1" align=right width="12%"
    bgColor=#e6efff bordercolor="#000000">&nbsp;349,639 </TD>
    <TD style="BORDER-BOTTOM: medium none #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" align=left width="2%"
    bgColor=#e6efff bordercolor="#000000">&nbsp;</TD></TR>
  <TR>
    <TD bgColor=#ffffff bordercolor="#000000">&nbsp; </TD>
    <TD width="1%" bgColor=#ffffff bordercolor="#000000">&nbsp;</TD>
    <TD width="12%" bgColor=#ffffff bordercolor="#000000" style="border-right-style: none; border-right-width: medium">&nbsp; </TD>
    <TD width="2%" bgColor=#ffffff bordercolor="#000000" style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#ffffff bordercolor="#000000">Goodwill recorded in connection with this
      acquisition is not deductible for tax purposes. </TD>
    <TD align=left width="1%" bgColor=#ffffff bordercolor="#000000">&nbsp;</TD>
    <TD align=left width="12%" bgColor=#ffffff bordercolor="#000000" style="border-right-style: none; border-right-width: medium">&nbsp; </TD>
    <TD align=left width="2%" bgColor=#ffffff bordercolor="#000000" style="border-style: none; border-width: medium">&nbsp;</TD></TR></TABLE>
<P align=right>GILDAN 2011 REPORT TO SHAREHOLDERS P.64</P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<!--$$/page=-->
<table border="0" cellpadding="0" cellspacing="0" style="border-collapse: collapse" bordercolor="#111111" width="100%">
  <tr>
    <td width="50%"><font size="2">
    <IMG
src="financialsx1x1.jpg" border=0 width="96" height="21"></font></td>
    <td width="50%">
<P align=right><font size="2">NOTES TO CONSOLIDATED FINANCIAL STATEMENTS </font></P>
    </td>
  </tr>
</table>
<P align=justify><B>2. BUSINESS ACQUISITIONS (continued): </B></P>
<P align=justify><B>Gold Toe Moretz Holdings Corp. (continued)</B></P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0 BCLLIST>

  <TR>
    <TD vAlign=top width="5%">(i) </TD>
    <TD>
      <P align=justify>The estimated fair value of intangible assets of $204.7
      million included in the purchase price allocation above consists of the
      following:</P></TD></TR></TABLE><BR>
<div align="right">
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="95%" border=0>

  <TR vAlign=top>
    <TD align=left bgColor=#e6efff style="border-top-style: solid; border-top-width: 2" bordercolor="#000000">Trademarks (not subject to amortization)
</TD>
    <TD align=left width="1%" bgColor=#e6efff style="border-top-style: solid; border-top-width: 2" bordercolor="#000000">$</TD>
    <TD align=right width="12%" bgColor=#e6efff style="border-top-style: solid; border-top-width: 2; border-right-style:none; border-right-width:medium" bordercolor="#000000">&nbsp;94,000 </TD>
    <TD align=left width="2%" bgColor=#e6efff style="border-style:none; border-width:medium; " bordercolor="#000000">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#ffffff bordercolor="#000000">License agreements </TD>
    <TD align=left width="1%" bgColor=#ffffff bordercolor="#000000">&nbsp;</TD>
    <TD align=right width="12%" bgColor=#ffffff bordercolor="#000000" style="border-right-style: none; border-right-width: medium">51,000 </TD>
    <TD align=left width="2%" bgColor=#ffffff bordercolor="#000000" style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff bordercolor="#000000">Customer relationships </TD>
    <TD align=left width="1%" bgColor=#e6efff bordercolor="#000000">&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff bordercolor="#000000" style="border-right-style: none; border-right-width: medium">58,000 </TD>
    <TD align=left width="2%" bgColor=#e6efff bordercolor="#000000" style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#ffffff style="border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000">Non-compete agreements </TD>
    <TD align=left width="1%" bgColor=#ffffff style="border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000">&nbsp;</TD>
    <TD align=right width="12%" bgColor=#ffffff style="border-right-style: none; border-right-width: medium; border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000">1,700 </TD>
    <TD align=left width="2%" bgColor=#ffffff bordercolor="#000000" style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-top-style:solid; border-top-width:1" align=left
      bgColor=#e6efff bordercolor="#000000">&nbsp; </TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-top-style:solid; border-top-width:1" align=left width="1%"
    bgColor=#e6efff bordercolor="#000000">$</TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-right-style:none; border-right-width:medium; border-top-style:solid; border-top-width:1" align=right width="12%"
    bgColor=#e6efff bordercolor="#000000">&nbsp;204,700 </TD>
    <TD style="BORDER-BOTTOM: medium none #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" align=left width="2%"
    bgColor=#e6efff bordercolor="#000000">&nbsp;</TD></TR></TABLE>
</div>
<P align=justify><B>Shahriyar Fabric Industries Limited</B><BR></P>
<P align=justify>Effective March 31, 2010, the Company acquired 100% of the
common shares of Shahriyar Fabric Industries Limited ("Shahriyar"), 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 million. </P>
<P align=justify>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.</P>
<P align=justify>The following table summarizes the estimated fair value of
assets acquired and liabilities assumed at the date of acquisition: </P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left
    bgColor=#ffffff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
    bgColor=#ffffff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-right-style:none; border-right-width:medium" align=left width="12%"
    bgColor=#ffffff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: medium none #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" align=left width="2%"
    bgColor=#ffffff>&nbsp;</TD></TR>
  <TR>
    <TD align=left bgColor=#ffffff>&nbsp;</TD>
    <TD align=left width="1%" bgColor=#ffffff>&nbsp;</TD>
    <TD align=left width="12%" bgColor=#ffffff style="border-right-style: none; border-right-width: medium">&nbsp;</TD>
    <TD align=left width="2%" bgColor=#ffffff style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Assets acquired: </TD>
    <TD align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="12%" bgColor=#e6efff style="border-right-style: none; border-right-width: medium">&nbsp; </TD>
    <TD align=left width="2%" bgColor=#e6efff style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#ffffff bordercolor="#000000">&nbsp; &nbsp; &nbsp; &nbsp; &nbsp;Trade
      accounts receivable </TD>
    <TD align=left width="1%" bgColor=#ffffff bordercolor="#000000">$</TD>
    <TD align=right width="12%" bgColor=#ffffff bordercolor="#000000" style="border-right-style: none; border-right-width: medium">&nbsp;1,392 </TD>
    <TD align=left width="2%" bgColor=#ffffff bordercolor="#000000" style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff bordercolor="#000000">&nbsp; &nbsp; &nbsp; &nbsp;
      &nbsp;Inventories </TD>
    <TD align=left width="1%" bgColor=#e6efff bordercolor="#000000">&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff bordercolor="#000000" style="border-right-style: none; border-right-width: medium">1,120 </TD>
    <TD align=left width="2%" bgColor=#e6efff bordercolor="#000000" style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#ffffff bordercolor="#000000">&nbsp; &nbsp; &nbsp; &nbsp; &nbsp;Other
      current assets </TD>
    <TD align=left width="1%" bgColor=#ffffff bordercolor="#000000">&nbsp;</TD>
    <TD align=right width="12%" bgColor=#ffffff bordercolor="#000000" style="border-right-style: none; border-right-width: medium">1,383 </TD>
    <TD align=left width="2%" bgColor=#ffffff bordercolor="#000000" style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      bgColor=#e6efff bordercolor="#000000">&nbsp; &nbsp; &nbsp; &nbsp; &nbsp;Property, plant and
      equipment </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    bgColor=#e6efff bordercolor="#000000">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-right-style:none; border-right-width:medium" align=right width="12%"
    bgColor=#e6efff bordercolor="#000000">12,181 </TD>
    <TD style="BORDER-BOTTOM: medium none #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" align=left width="2%"
    bgColor=#e6efff bordercolor="#000000">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#ffffff bordercolor="#000000">&nbsp; </TD>
    <TD align=left width="1%" bgColor=#ffffff bordercolor="#000000">&nbsp;</TD>
    <TD align=right width="12%" bgColor=#ffffff bordercolor="#000000" style="border-right-style: none; border-right-width: medium">16,076 </TD>
    <TD align=left width="2%" bgColor=#ffffff bordercolor="#000000" style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff bordercolor="#000000">Liabilities assumed: </TD>
    <TD align=left width="1%" bgColor=#e6efff bordercolor="#000000">&nbsp;</TD>
    <TD align=left width="12%" bgColor=#e6efff bordercolor="#000000" style="border-right-style: none; border-right-width: medium">&nbsp; </TD>
    <TD align=left width="2%" bgColor=#e6efff bordercolor="#000000" style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      bgColor=#ffffff bordercolor="#000000">&nbsp; &nbsp; &nbsp; &nbsp; &nbsp;Accounts payable and
      accrued liabilities </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    bgColor=#ffffff bordercolor="#000000">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-right-style:none; border-right-width:medium" align=right width="12%"
    bgColor=#ffffff bordercolor="#000000">(3,714</TD>
    <TD style="BORDER-BOTTOM: medium none #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" align=left width="2%"
    bgColor=#ffffff bordercolor="#000000">) </TD></TR>
  <TR>
    <TD bgColor=#e6efff bordercolor="#000000">&nbsp; </TD>
    <TD width="1%" bgColor=#e6efff bordercolor="#000000">&nbsp;</TD>
    <TD width="12%" bgColor=#e6efff bordercolor="#000000" style="border-right-style: none; border-right-width: medium">&nbsp; </TD>
    <TD width="2%" bgColor=#e6efff bordercolor="#000000" style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#ffffff bordercolor="#000000">Net identifiable assets acquired </TD>
    <TD align=left width="1%" bgColor=#ffffff bordercolor="#000000">&nbsp;</TD>
    <TD align=right width="12%" bgColor=#ffffff bordercolor="#000000" style="border-right-style: none; border-right-width: medium">12,362 </TD>
    <TD align=left width="2%" bgColor=#ffffff bordercolor="#000000" style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff style="border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000">Goodwill </TD>
    <TD align=left width="1%" bgColor=#e6efff style="border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000">&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff style="border-right-style: none; border-right-width: medium; border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000">3,488 </TD>
    <TD align=left width="2%" bgColor=#e6efff bordercolor="#000000" style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#ffffff style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000">Purchase price </TD>
    <TD align=left width="1%" bgColor=#ffffff style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000">$</TD>
    <TD align=right width="12%" bgColor=#ffffff style="border-right-style: none; border-right-width: medium; border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000">&nbsp;15,850 </TD>
    <TD align=left width="2%" bgColor=#ffffff bordercolor="#000000" style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR>
    <TD bgColor=#e6efff style="border-top-style: solid; border-top-width: 1" bordercolor="#000000">&nbsp; </TD>
    <TD width="1%" bgColor=#e6efff style="border-top-style: solid; border-top-width: 1" bordercolor="#000000">&nbsp;</TD>
    <TD width="12%" bgColor=#e6efff style="border-right-style: none; border-right-width: medium; border-top-style: solid; border-top-width: 1" bordercolor="#000000">&nbsp; </TD>
    <TD width="2%" bgColor=#e6efff bordercolor="#000000" style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#ffffff bordercolor="#000000">Consideration: </TD>
    <TD align=left width="1%" bgColor=#ffffff bordercolor="#000000">&nbsp;</TD>
    <TD align=left width="12%" bgColor=#ffffff bordercolor="#000000" style="border-right-style: none; border-right-width: medium">&nbsp; </TD>
    <TD align=left width="2%" bgColor=#ffffff bordercolor="#000000" style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff bordercolor="#000000">&nbsp; &nbsp; &nbsp; &nbsp; &nbsp;Payment
      to shareholders </TD>
    <TD align=left width="1%" bgColor=#e6efff bordercolor="#000000">$</TD>
    <TD align=right width="12%" bgColor=#e6efff bordercolor="#000000" style="border-right-style: none; border-right-width: medium">&nbsp;3,250 </TD>
    <TD align=left width="2%" bgColor=#e6efff bordercolor="#000000" style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#ffffff bordercolor="#000000">&nbsp; &nbsp; &nbsp; &nbsp; &nbsp;Repayment
      of debt on behalf of the selling shareholders at closing </TD>
    <TD align=left width="1%" bgColor=#ffffff bordercolor="#000000">&nbsp;</TD>
    <TD align=right width="12%" bgColor=#ffffff bordercolor="#000000" style="border-right-style: none; border-right-width: medium">12,000 </TD>
    <TD align=left width="2%" bgColor=#ffffff bordercolor="#000000" style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      bgColor=#e6efff bordercolor="#000000">&nbsp; &nbsp; &nbsp; &nbsp; &nbsp;Direct acquisition costs
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    bgColor=#e6efff bordercolor="#000000">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-right-style:none; border-right-width:medium" align=right width="12%"
    bgColor=#e6efff bordercolor="#000000">600 </TD>
    <TD style="BORDER-BOTTOM: medium none #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" align=left width="2%"
    bgColor=#e6efff bordercolor="#000000">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left
      bgColor=#ffffff bordercolor="#000000">&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
    bgColor=#ffffff bordercolor="#000000">$</TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-right-style:none; border-right-width:medium" align=right width="12%"
    bgColor=#ffffff bordercolor="#000000">&nbsp;15,850 </TD>
    <TD style="BORDER-BOTTOM: medium none #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" align=left width="2%"
    bgColor=#ffffff bordercolor="#000000">&nbsp;</TD></TR></TABLE>
<P align=justify>The Company&#146;s repayment of the debt on behalf of the selling
shareholders at closing was funded through a short-term banking facility of $12
million. This facility bore interest at 9.5% per annum, and was secured by a
restricted cash deposit. As at October 3, 2010 the amount drawn under the
short-term banking facility amounted to $9.9 million with a corresponding
restricted cash deposit of the same amount, and the Company offset these amounts
owing under the short-term banking facility against the collateral deposit in
the consolidated balance sheet since the Company had the legal right of offset
and used the collateral deposit to repay the bank facility in fiscal 2011. As at
October 2, 2011, there were no amounts drawn under the short-term banking
facility.</P>
<P align=justify>Goodwill recorded in connection with this acquisition is not
deductible for tax purposes. </P>
<P align=right>GILDAN 2011 REPORT TO SHAREHOLDERS P.65</P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<!--$$/page=--><A name=page_17></A>
<table border="0" cellpadding="0" cellspacing="0" style="border-collapse: collapse" bordercolor="#111111" width="100%">
  <tr>
    <td width="50%"><font size="2">
    <IMG
src="financialsx1x1.jpg" border=0 width="96" height="21"></font></td>
    <td width="50%">
<P align=right><font size="2">NOTES TO CONSOLIDATED FINANCIAL STATEMENTS </font></P>
    </td>
  </tr>
</table>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD align=left>&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="12%">&nbsp;</TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="12%">&nbsp;</TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>

  <TR vAlign=top>
    <TD align=left><B>3. INVENTORIES:</B> </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="12%">&nbsp; </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="12%">&nbsp; </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="12%">&nbsp; </TD>
    <TD width="2%" >&nbsp;</TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="12%">&nbsp; </TD>
    <TD width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>Inventories were comprised of the following: </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="12%">&nbsp; </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="12%">&nbsp; </TD>
    <TD align=left width="2%" style="border-bottom-style: none; border-bottom-width: medium" >&nbsp;</TD></TR>
  <TR>
    <TD style="BORDER-BOTTOM: #000000 2px solid">&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" width="12%">&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-right-style:none; border-right-width:medium" width="12%">&nbsp; </TD>
    <TD style="BORDER-BOTTOM: medium none #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" width="2%"
    >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left style="border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000">&nbsp; </TD>
    <TD align=left width="1%" style="border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000" >&nbsp;</TD>
    <TD align=right width="12%" style="border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000">2011 </TD>
    <TD align=left width="2%" style="border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000" >&nbsp;</TD>
    <TD align=left width="1%" style="border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000" >&nbsp;</TD>
    <TD align=right width="12%" style="border-right-style: none; border-right-width: medium; border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000">2010 </TD>
    <TD align=left width="2%" style="border-style: none; border-width: medium" bordercolor="#000000" >&nbsp;</TD></TR>
  <TR>
    <TD style="border-top-style: solid; border-top-width: 1" bordercolor="#000000">&nbsp; </TD>
    <TD width="1%" style="border-top-style: solid; border-top-width: 1" bordercolor="#000000" >&nbsp;</TD>
    <TD width="12%" style="border-top-style: solid; border-top-width: 1" bordercolor="#000000">&nbsp; </TD>
    <TD width="2%" style="border-top-style: solid; border-top-width: 1" bordercolor="#000000" >&nbsp;</TD>
    <TD width="1%" style="border-top-style: solid; border-top-width: 1" bordercolor="#000000" >&nbsp;</TD>
    <TD width="12%" style="border-right-style: none; border-right-width: medium; border-top-style: solid; border-top-width: 1" bordercolor="#000000">&nbsp; </TD>
    <TD width="2%" style="border-style: none; border-width: medium" bordercolor="#000000" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff bordercolor="#000000">Finished goods </TD>
    <TD align=left width="1%"  bgColor=#e6efff bordercolor="#000000">$</TD>
    <TD align=right width="12%" bgColor=#e6efff bordercolor="#000000">&nbsp;469,600 </TD>
    <TD align=left width="2%"  bgColor=#e6efff bordercolor="#000000">&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff bordercolor="#000000">$</TD>
    <TD align=right width="12%" bgColor=#e6efff bordercolor="#000000" style="border-right-style: none; border-right-width: medium">&nbsp;240,884 </TD>
    <TD align=left width="2%"  bgColor=#e6efff bordercolor="#000000" style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bordercolor="#000000">Raw materials and spare parts inventories </TD>
    <TD align=left width="1%" bordercolor="#000000" >&nbsp;</TD>
    <TD align=right width="12%" bordercolor="#000000">74,284 </TD>
    <TD align=left width="2%" bordercolor="#000000" >&nbsp;</TD>
    <TD align=left width="1%" bordercolor="#000000" >&nbsp;</TD>
    <TD align=right width="12%" bordercolor="#000000" style="border-right-style: none; border-right-width: medium">54,353 </TD>
    <TD align=left width="2%" bordercolor="#000000" style="border-style: none; border-width: medium" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff style="border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000">Work in process </TD>
    <TD align=left width="1%"  bgColor=#e6efff style="border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000">&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff style="border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000">31,710 </TD>
    <TD align=left width="2%"  bgColor=#e6efff style="border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000">&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff style="border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000">&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff style="border-right-style: none; border-right-width: medium; border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000">37,305 </TD>
    <TD align=left width="2%"  bgColor=#e6efff style="border-style: none; border-width: medium" bordercolor="#000000">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-top-style:solid; border-top-width:1" align=left bordercolor="#000000">&nbsp; </TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-top-style:solid; border-top-width:1" align=left width="1%" bordercolor="#000000"
    >$</TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-top-style:solid; border-top-width:1" align=right
      width="12%" bordercolor="#000000">&nbsp;575,594 </TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-top-style:solid; border-top-width:1" align=left width="2%" bordercolor="#000000"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-top-style:solid; border-top-width:1" align=left width="1%" bordercolor="#000000"
    >$</TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-right-style:none; border-right-width:medium; border-top-style:solid; border-top-width:1" align=right
      width="12%" bordercolor="#000000">&nbsp;332,542 </TD>
    <TD style="BORDER-BOTTOM: medium none #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" align=left width="2%" bordercolor="#000000"
    >&nbsp;</TD></TR></TABLE>
<P align=justify>The amount of inventory recognized as an expense and included
in cost of sales was $1,262.9 million (2010 - $928.9 million; 2009 - $795.0
million), which included an expense of $6.2 million (2010 - $7.1 million; 2009 -
$8.1 million) related to the write-down of inventory to net realizable value.
</P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left><B>4. PROPERTY,
      PLANT AND EQUIPMENT:</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="10%">&nbsp;
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="10%">&nbsp;
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="10%">&nbsp;
    </TD>
    <TD style="BORDER-BOTTOM: medium none #000000; " align=left width="2%"
    >&nbsp;</TD></TR>
  <TR>
    <TD style="border-top-style: solid; border-top-width: 2">&nbsp; </TD>
    <TD width="1%" style="border-top-style: solid; border-top-width: 2" >&nbsp;</TD>
    <TD width="10%" style="border-top-style: solid; border-top-width: 2">&nbsp; </TD>
    <TD width="2%" style="border-top-style: solid; border-top-width: 2" >&nbsp;</TD>
    <TD width="1%" style="border-top-style: solid; border-top-width: 2" >&nbsp;</TD>
    <TD width="10%" style="border-top-style: solid; border-top-width: 2">&nbsp; </TD>
    <TD width="2%" style="border-top-style: solid; border-top-width: 2" >&nbsp;</TD>
    <TD width="1%" style="border-top-style: solid; border-top-width: 2" >&nbsp;</TD>
    <TD width="10%" style="border-top-style: solid; border-top-width: 2; border-right-style:none; border-right-width:medium">&nbsp; </TD>
    <TD width="2%" style="border-style:none; border-width:medium; " >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="10%">&nbsp; </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%">Accumulated </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%" style="border-right-style: none; border-right-width: medium">Net book </TD>
    <TD align=left width="2%" style="border-style: none; border-width: medium" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>2011 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="10%">Cost
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="10%">depreciation </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-right-style:none; border-right-width:medium" align=right width="10%">value
    </TD>
    <TD style="BORDER-BOTTOM: medium none #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" align=left width="2%"
    >&nbsp;</TD></TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="10%">&nbsp; </TD>
    <TD width="2%" >&nbsp;</TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="10%">&nbsp; </TD>
    <TD width="2%" >&nbsp;</TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="10%" style="border-right-style: none; border-right-width: medium">&nbsp; </TD>
    <TD width="2%" style="border-style: none; border-width: medium" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Land </TD>
    <TD align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD align=right width="10%" bgColor=#e6efff>&nbsp;35,549 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD align=right width="10%" bgColor=#e6efff>&nbsp;- </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD align=right width="10%" bgColor=#e6efff style="border-right-style: none; border-right-width: medium">&nbsp;35,549 </TD>
    <TD align=left width="2%"  bgColor=#e6efff style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>Buildings and improvements </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%">196,531 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%">47,124 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%" style="border-right-style: none; border-right-width: medium">149,407 </TD>
    <TD align=left width="2%" style="border-style: none; border-width: medium" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Manufacturing equipment </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>511,543 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>227,935 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff style="border-right-style: none; border-right-width: medium">283,608 </TD>
    <TD align=left width="2%"  bgColor=#e6efff style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>Other equipment </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%">99,256 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%">49,970 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%" style="border-right-style: none; border-right-width: medium">49,286 </TD>
    <TD align=left width="2%" style="border-style: none; border-width: medium" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff style="border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000">Assets not yet utilized in operations </TD>
    <TD align=left width="1%"  bgColor=#e6efff style="border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000">&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff style="border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000">47,548 </TD>
    <TD align=left width="2%"  bgColor=#e6efff style="border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000">&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff style="border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000">&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff style="border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000">- </TD>
    <TD align=left width="2%"  bgColor=#e6efff style="border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000">&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff style="border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000">&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff style="border-right-style: none; border-right-width: medium; border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000">47,548 </TD>
    <TD align=left width="2%"  bgColor=#e6efff style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-top-style:solid; border-top-width:1" align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-top-style:solid; border-top-width:1" align=left width="1%"
    >$</TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-top-style:solid; border-top-width:1" align=right
      width="10%">&nbsp;890,427 </TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-top-style:solid; border-top-width:1" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-top-style:solid; border-top-width:1" align=left width="1%"
    >$</TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-top-style:solid; border-top-width:1" align=right
      width="10%">&nbsp;325,029 </TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-top-style:solid; border-top-width:1" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-top-style:solid; border-top-width:1" align=left width="1%"
    >$</TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-right-style:none; border-right-width:medium; border-top-style:solid; border-top-width:1" align=right
      width="10%">&nbsp;565,398 </TD>
    <TD style="BORDER-BOTTOM: medium none #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" align=left width="2%"
    >&nbsp;</TD></TR>
  <TR>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#ffffff>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" width="1%"
    bgColor=#ffffff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" width="10%"
      bgColor=#ffffff>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" width="2%"
    bgColor=#ffffff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" width="1%"
    bgColor=#ffffff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" width="10%"
      bgColor=#ffffff>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" width="2%"
    bgColor=#ffffff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" width="1%"
    bgColor=#ffffff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-right-style:none; border-right-width:medium" width="10%"
      bgColor=#ffffff>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: medium none #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" width="2%"
    bgColor=#ffffff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#ffffff>&nbsp; </TD>
    <TD align=left width="1%"  bgColor=#ffffff>&nbsp;</TD>
    <TD align=left width="10%" bgColor=#ffffff>&nbsp; </TD>
    <TD align=left width="2%"  bgColor=#ffffff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#ffffff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#ffffff>Accumulated </TD>
    <TD align=left width="2%"  bgColor=#ffffff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#ffffff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#ffffff style="border-right-style: none; border-right-width: medium">Net book </TD>
    <TD align=left width="2%"  bgColor=#ffffff style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      bgColor=#ffffff>2010 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#ffffff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="10%"
    bgColor=#ffffff>Cost </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#ffffff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#ffffff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="10%"
    bgColor=#ffffff>depreciation </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#ffffff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#ffffff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-right-style:none; border-right-width:medium" align=right width="10%"
    bgColor=#ffffff>value </TD>
    <TD style="BORDER-BOTTOM: medium none #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" align=left width="2%"
     bgColor=#ffffff>&nbsp;</TD></TR>
  <TR>
    <TD bgColor=#ffffff>&nbsp; </TD>
    <TD width="1%"  bgColor=#ffffff>&nbsp;</TD>
    <TD width="10%" bgColor=#ffffff>&nbsp; </TD>
    <TD width="2%"  bgColor=#ffffff>&nbsp;</TD>
    <TD width="1%"  bgColor=#ffffff>&nbsp;</TD>
    <TD width="10%" bgColor=#ffffff>&nbsp; </TD>
    <TD width="2%"  bgColor=#ffffff>&nbsp;</TD>
    <TD width="1%"  bgColor=#ffffff>&nbsp;</TD>
    <TD width="10%" bgColor=#ffffff style="border-right-style: none; border-right-width: medium">&nbsp; </TD>
    <TD width="2%"  bgColor=#ffffff style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Land </TD>
    <TD align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD align=right width="10%" bgColor=#e6efff>&nbsp;34,923 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD align=right width="10%" bgColor=#e6efff>&nbsp;- </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD align=right width="10%" bgColor=#e6efff style="border-right-style: none; border-right-width: medium">&nbsp;34,923 </TD>
    <TD align=left width="2%"  bgColor=#e6efff style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>Buildings and improvements </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%">169,865 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%">42,010 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%" style="border-right-style: none; border-right-width: medium">127,855 </TD>
    <TD align=left width="2%" style="border-style: none; border-width: medium" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Manufacturing equipment </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>413,287 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>176,686 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff style="border-right-style: none; border-right-width: medium">236,601 </TD>
    <TD align=left width="2%"  bgColor=#e6efff style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>Other equipment </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%">73,599 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%">38,005 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%" style="border-right-style: none; border-right-width: medium">35,594 </TD>
    <TD align=left width="2%" style="border-style: none; border-width: medium" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff style="border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000">Assets not yet utilized in operations </TD>
    <TD align=left width="1%"  bgColor=#e6efff style="border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000">&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff style="border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000">44,319 </TD>
    <TD align=left width="2%"  bgColor=#e6efff style="border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000">&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff style="border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000">&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff style="border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000">- </TD>
    <TD align=left width="2%"  bgColor=#e6efff style="border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000">&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff style="border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000">&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff style="border-right-style: none; border-right-width: medium; border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000">44,319 </TD>
    <TD align=left width="2%"  bgColor=#e6efff style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-top-style:solid; border-top-width:1" align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-top-style:solid; border-top-width:1" align=left width="1%"
    >$</TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-top-style:solid; border-top-width:1" align=right
      width="10%">&nbsp;735,993 </TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-top-style:solid; border-top-width:1" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-top-style:solid; border-top-width:1" align=left width="1%"
    >$</TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-top-style:solid; border-top-width:1" align=right
      width="10%">&nbsp;256,701 </TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-top-style:solid; border-top-width:1" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-top-style:solid; border-top-width:1" align=left width="1%"
    >$</TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-right-style:none; border-right-width:medium; border-top-style:solid; border-top-width:1" align=right
      width="10%">&nbsp;479,292 </TD>
    <TD style="BORDER-BOTTOM: medium none #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" align=left width="2%"
    >&nbsp;</TD></TR></TABLE>
<P align=justify>Assets not yet utilized in operations include expenditures
incurred to date for plant expansions which are still in process and equipment
not yet placed into service as at the balance sheet date.</P>
<P align=justify><B>5. GOODWILL AND INTANGIBLE ASSETS: </B></P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0 BCLLIST>

  <TR>
    <TD vAlign=top width="5%">(a) </TD>
    <TD>
      <P align=justify>Goodwill:</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD>
      <P align=justify>The change in the carrying amount of goodwill is as
      follows:</P></TD></TR></TABLE><BR>
<DIV align=right>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="95%" border=0>

  <TR vAlign=top>
    <TD align=left style="border-top-style: solid; border-top-width: 2; border-bottom-style:solid; border-bottom-width:1" bordercolor="#000000">&nbsp; </TD>
    <TD align=left width="1%" style="border-top-style: solid; border-top-width: 2; border-bottom-style:solid; border-bottom-width:1" bordercolor="#000000" >&nbsp;</TD>
    <TD align=right width="12%" style="border-top-style: solid; border-top-width: 2; border-bottom-style:solid; border-bottom-width:1" bordercolor="#000000">2011 </TD>
    <TD align=left width="2%" style="border-top-style: solid; border-top-width: 2; border-bottom-style:solid; border-bottom-width:1" bordercolor="#000000" >&nbsp;</TD>
    <TD align=left width="1%" style="border-top-style: solid; border-top-width: 2; border-bottom-style:solid; border-bottom-width:1" bordercolor="#000000" >&nbsp;</TD>
    <TD align=right width="12%" style="border-top-style: solid; border-top-width: 2; border-right-style:none; border-right-width:medium; border-bottom-style:solid; border-bottom-width:1" bordercolor="#000000">2010 </TD>
    <TD align=left width="2%" style="border-style:none; border-width:medium; " bordercolor="#000000" >&nbsp;</TD></TR>
  <TR>
    <TD style="border-top-style: solid; border-top-width: 1" bordercolor="#000000">&nbsp; </TD>
    <TD width="1%" style="border-top-style: solid; border-top-width: 1" bordercolor="#000000" >&nbsp;</TD>
    <TD width="12%" style="border-top-style: solid; border-top-width: 1" bordercolor="#000000">&nbsp; </TD>
    <TD width="2%" style="border-top-style: solid; border-top-width: 1" bordercolor="#000000" >&nbsp;</TD>
    <TD width="1%" style="border-top-style: solid; border-top-width: 1" bordercolor="#000000" >&nbsp;</TD>
    <TD width="12%" style="border-right-style: none; border-right-width: medium; border-top-style: solid; border-top-width: 1" bordercolor="#000000">&nbsp; </TD>
    <TD width="2%" style="border-style: none; border-width: medium" bordercolor="#000000" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff bordercolor="#000000">Balance, beginning of year </TD>
    <TD align=left width="1%"  bgColor=#e6efff bordercolor="#000000">$</TD>
    <TD align=right width="12%" bgColor=#e6efff bordercolor="#000000">&nbsp;10,197 </TD>
    <TD align=left width="2%"  bgColor=#e6efff bordercolor="#000000">&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff bordercolor="#000000">$</TD>
    <TD align=right width="12%" bgColor=#e6efff bordercolor="#000000" style="border-right-style: none; border-right-width: medium">&nbsp;6,709 </TD>
    <TD align=left width="2%"  bgColor=#e6efff bordercolor="#000000" style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bordercolor="#000000">Goodwill acquired (note 2) </TD>
    <TD align=left width="1%" bordercolor="#000000" >&nbsp;</TD>
    <TD align=right width="12%" bordercolor="#000000">137,207 </TD>
    <TD align=left width="2%" bordercolor="#000000" >&nbsp;</TD>
    <TD align=left width="1%" bordercolor="#000000" >&nbsp;</TD>
    <TD align=right width="12%" bordercolor="#000000" style="border-right-style: none; border-right-width: medium">3,488 </TD>
    <TD align=left width="2%" bordercolor="#000000" style="border-style: none; border-width: medium" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff style="border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000">Payment of contingent consideration (note
      19(d)) </TD>
    <TD align=left width="1%"  bgColor=#e6efff style="border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000">&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff style="border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000">5,815 </TD>
    <TD align=left width="2%"  bgColor=#e6efff style="border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000">&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff style="border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000">&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff style="border-right-style: none; border-right-width: medium; border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000">- </TD>
    <TD align=left width="2%"  bgColor=#e6efff bordercolor="#000000" style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-top-style:solid; border-top-width:1" align=left bordercolor="#000000">Balance, end of
      year </TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-top-style:solid; border-top-width:1" align=left width="1%" bordercolor="#000000"
    >$</TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-top-style:solid; border-top-width:1" align=right
      width="12%" bordercolor="#000000">&nbsp;153,219 </TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-top-style:solid; border-top-width:1" align=left width="2%" bordercolor="#000000"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-top-style:solid; border-top-width:1" align=left width="1%" bordercolor="#000000"
    >$</TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-right-style:none; border-right-width:medium; border-top-style:solid; border-top-width:1" align=right
      width="12%" bordercolor="#000000">&nbsp;10,197 </TD>
    <TD style="BORDER-BOTTOM: medium none #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" align=left width="2%" bordercolor="#000000"
    >&nbsp;</TD></TR></TABLE></DIV>
<P align=right>GILDAN 2011 REPORT TO SHAREHOLDERS P.66</P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<!--$$/page=--><A name=page_18></A>
<table border="0" cellpadding="0" cellspacing="0" style="border-collapse: collapse" bordercolor="#111111" width="100%">
  <tr>
    <td width="50%"><font size="2">
    <IMG
src="financialsx1x1.jpg" border=0 width="96" height="21"></font></td>
    <td width="50%">
<P align=right><font size="2">NOTES TO CONSOLIDATED FINANCIAL STATEMENTS </font></P>
    </td>
  </tr>
</table>
<P align=justify><B>5. GOODWILL AND INTANGIBLE ASSETS (continued):</B></P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0 BCLLIST>

  <TR>
    <TD vAlign=top width="5%" style="border-style: none; border-width: medium">
    (b)</TD>
    <TD style="border-style: none; border-width: medium">
      <P align=justify>Intangible assets: </P></TD></TR>
  </TABLE>
<DIV align=right>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="95%" border=0>

  <TR vAlign=top>
    <TD align=left style="border-top-style: none; border-top-width: medium; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-bottom-style:solid; border-bottom-width:2" bordercolor="#000000">&nbsp;</TD>
    <TD align=left width="1%" style="border-top-style: none; border-top-width: medium; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-bottom-style:solid; border-bottom-width:2" bordercolor="#000000">&nbsp;</TD>
    <TD align=left width="10%" style="border-top-style: none; border-top-width: medium; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-bottom-style:solid; border-bottom-width:2" bordercolor="#000000">&nbsp;</TD>
    <TD align=left width="2%" style="border-top-style: none; border-top-width: medium; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-bottom-style:solid; border-bottom-width:2" bordercolor="#000000">&nbsp;</TD>
    <TD align=left width="1%" style="border-top-style: none; border-top-width: medium; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-bottom-style:solid; border-bottom-width:2" bordercolor="#000000">&nbsp;</TD>
    <TD align=right width="10%" style="border-top-style: none; border-top-width: medium; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-bottom-style:solid; border-bottom-width:2" bordercolor="#000000">&nbsp;</TD>
    <TD align=left width="2%" style="border-top-style: none; border-top-width: medium; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-bottom-style:solid; border-bottom-width:2" bordercolor="#000000">&nbsp;</TD>
    <TD align=left width="1%" style="border-top-style: none; border-top-width: medium; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-bottom-style:solid; border-bottom-width:2" bordercolor="#000000">&nbsp;</TD>
    <TD align=right width="10%" style="border-top-style: none; border-top-width: medium; border-right-style:none; border-right-width:medium; border-left-style:none; border-left-width:medium; border-bottom-style:solid; border-bottom-width:2" bordercolor="#000000">&nbsp;</TD>
    <TD align=left width="2%" style="border-style:none; border-width:medium; ">&nbsp;</TD></TR>

  <TR vAlign=top>
    <TD align=left style="border-top-style: none; border-top-width: medium">&nbsp; </TD>
    <TD align=left width="1%" style="border-top-style: none; border-top-width: medium">&nbsp;</TD>
    <TD align=left width="10%" style="border-top-style: none; border-top-width: medium">&nbsp; </TD>
    <TD align=left width="2%" style="border-top-style: none; border-top-width: medium">&nbsp;</TD>
    <TD align=left width="1%" style="border-top-style: none; border-top-width: medium">&nbsp;</TD>
    <TD align=right width="10%" style="border-top-style: none; border-top-width: medium">Accumulated </TD>
    <TD align=left width="2%" style="border-top-style: none; border-top-width: medium">&nbsp;</TD>
    <TD align=left width="1%" style="border-top-style: none; border-top-width: medium">&nbsp;</TD>
    <TD align=right width="10%" style="border-top-style: none; border-top-width: medium; border-right-style:none; border-right-width:medium">Net book </TD>
    <TD align=left width="2%" style="border-style:none; border-width:medium; ">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>2011 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="10%">Cost
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="10%">amortization </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-right-style:none; border-right-width:medium" align=right width="10%">value
    </TD>
    <TD style="BORDER-BOTTOM: medium none #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" align=left
    width="2%">&nbsp;</TD></TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="10%">&nbsp; </TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="10%">&nbsp; </TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="10%" style="border-right-style: none; border-right-width: medium">&nbsp; </TD>
    <TD width="2%" style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Customer contracts and customer
      relationships </TD>
    <TD align=left width="1%" bgColor=#e6efff>$</TD>
    <TD align=right width="10%" bgColor=#e6efff>&nbsp;121,526 </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%" bgColor=#e6efff>$</TD>
    <TD align=right width="10%" bgColor=#e6efff>&nbsp;14,446 </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%" bgColor=#e6efff>$</TD>
    <TD align=right width="10%" bgColor=#e6efff style="border-right-style: none; border-right-width: medium">&nbsp;107,080 </TD>
    <TD align=left width="2%" bgColor=#e6efff style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>Trademarks (not subject to amortization) </TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="10%">94,000 </TD>
    <TD align=left width="2%">&nbsp;</TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="10%">- </TD>
    <TD align=left width="2%">&nbsp;</TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="10%" style="border-right-style: none; border-right-width: medium">94,000 </TD>
    <TD align=left width="2%" style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>License agreements</TD>
    <TD align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>51,000 </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>3,484 </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff style="border-right-style: none; border-right-width: medium">47,516 </TD>
    <TD align=left width="2%" bgColor=#e6efff style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>Computer software </TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="10%">26,038 </TD>
    <TD align=left width="2%">&nbsp;</TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="10%">19,477 </TD>
    <TD align=left width="2%">&nbsp;</TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="10%" style="border-right-style: none; border-right-width: medium">6,561 </TD>
    <TD align=left width="2%" style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff style="border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000">Non-compete agreements </TD>
    <TD align=left width="1%" bgColor=#e6efff style="border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000">&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff style="border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000">1,700 </TD>
    <TD align=left width="2%" bgColor=#e6efff style="border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000">&nbsp;</TD>
    <TD align=left width="1%" bgColor=#e6efff style="border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000">&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff style="border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000">390 </TD>
    <TD align=left width="2%" bgColor=#e6efff style="border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000">&nbsp;</TD>
    <TD align=left width="1%" bgColor=#e6efff style="border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000">&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff style="border-right-style: none; border-right-width: medium; border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000">1,310 </TD>
    <TD align=left width="2%" bgColor=#e6efff style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-top-style:solid; border-top-width:1" align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-top-style:solid; border-top-width:1" align=left width="1%">$</TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-top-style:solid; border-top-width:1" align=right
      width="10%">&nbsp;294,264 </TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-top-style:solid; border-top-width:1" align=left
    width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-top-style:solid; border-top-width:1" align=left width="1%">$</TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-top-style:solid; border-top-width:1" align=right
      width="10%">&nbsp;37,797 </TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-top-style:solid; border-top-width:1" align=left
    width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-top-style:solid; border-top-width:1" align=left width="1%">$</TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-right-style:none; border-right-width:medium; border-top-style:solid; border-top-width:1" align=right
      width="10%">&nbsp;256,467 </TD>
    <TD style="BORDER-BOTTOM: medium none #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" align=left
    width="2%">&nbsp;</TD></TR>
  <TR>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#ffffff>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" width="1%"
    bgColor=#ffffff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" width="10%"
      bgColor=#ffffff>&nbsp;
    <p>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" width="2%"
    bgColor=#ffffff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" width="1%"
    bgColor=#ffffff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" width="10%"
      bgColor=#ffffff>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" width="2%"
    bgColor=#ffffff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" width="1%"
    bgColor=#ffffff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-right-style:none; border-right-width:medium" width="10%"
      bgColor=#ffffff>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: medium none #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" width="2%"
    bgColor=#ffffff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#ffffff>&nbsp; </TD>
    <TD align=left width="1%" bgColor=#ffffff>&nbsp;</TD>
    <TD align=left width="10%" bgColor=#ffffff>&nbsp; </TD>
    <TD align=left width="2%" bgColor=#ffffff>&nbsp;</TD>
    <TD align=left width="1%" bgColor=#ffffff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#ffffff>Accumulated </TD>
    <TD align=left width="2%" bgColor=#ffffff>&nbsp;</TD>
    <TD align=left width="1%" bgColor=#ffffff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#ffffff style="border-right-style: none; border-right-width: medium">Net book </TD>
    <TD align=left width="2%" bgColor=#ffffff style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      bgColor=#ffffff>2010 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    bgColor=#ffffff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="10%"
    bgColor=#ffffff>Cost </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    bgColor=#ffffff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    bgColor=#ffffff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="10%"
    bgColor=#ffffff>amortization </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    bgColor=#ffffff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    bgColor=#ffffff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-right-style:none; border-right-width:medium" align=right width="10%"
    bgColor=#ffffff>value </TD>
    <TD style="BORDER-BOTTOM: medium none #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" align=left width="2%"
    bgColor=#ffffff>&nbsp;</TD></TR>
  <TR>
    <TD bgColor=#ffffff>&nbsp; </TD>
    <TD width="1%" bgColor=#ffffff>&nbsp;</TD>
    <TD width="10%" bgColor=#ffffff>&nbsp; </TD>
    <TD width="2%" bgColor=#ffffff>&nbsp;</TD>
    <TD width="1%" bgColor=#ffffff>&nbsp;</TD>
    <TD width="10%" bgColor=#ffffff>&nbsp; </TD>
    <TD width="2%" bgColor=#ffffff>&nbsp;</TD>
    <TD width="1%" bgColor=#ffffff>&nbsp;</TD>
    <TD width="10%" bgColor=#ffffff style="border-right-style: none; border-right-width: medium">&nbsp; </TD>
    <TD width="2%" bgColor=#ffffff style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Customer contracts and customer
      relationships </TD>
    <TD align=left width="1%" bgColor=#e6efff>$</TD>
    <TD align=right width="10%" bgColor=#e6efff>&nbsp;63,526 </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%" bgColor=#e6efff>$</TD>
    <TD align=right width="10%" bgColor=#e6efff>&nbsp;9,966 </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%" bgColor=#e6efff>$</TD>
    <TD align=right width="10%" bgColor=#e6efff style="border-right-style: none; border-right-width: medium">&nbsp;53,560 </TD>
    <TD align=left width="2%" bgColor=#e6efff style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left style="border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000">Computer software </TD>
    <TD align=left width="1%" style="border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000">&nbsp;</TD>
    <TD align=right width="10%" style="border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000">26,453 </TD>
    <TD align=left width="2%" style="border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000">&nbsp;</TD>
    <TD align=left width="1%" style="border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000">&nbsp;</TD>
    <TD align=right width="10%" style="border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000">18,692 </TD>
    <TD align=left width="2%" style="border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000">&nbsp;</TD>
    <TD align=left width="1%" style="border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000">&nbsp;</TD>
    <TD align=right width="10%" style="border-right-style: none; border-right-width: medium; border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000">7,761 </TD>
    <TD align=left width="2%" style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-top-style:solid; border-top-width:1" align=left
      bgColor=#e6efff>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-top-style:solid; border-top-width:1" align=left width="1%"
    bgColor=#e6efff>$</TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-top-style:solid; border-top-width:1" align=right width="10%"
    bgColor=#e6efff>&nbsp;89,979 </TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-top-style:solid; border-top-width:1" align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-top-style:solid; border-top-width:1" align=left width="1%"
    bgColor=#e6efff>$</TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-top-style:solid; border-top-width:1" align=right width="10%"
    bgColor=#e6efff>&nbsp;28,658 </TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-top-style:solid; border-top-width:1" align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-top-style:solid; border-top-width:1" align=left width="1%"
    bgColor=#e6efff>$</TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-right-style:none; border-right-width:medium; border-top-style:solid; border-top-width:1" align=right width="10%"
    bgColor=#e6efff>&nbsp;61,321 </TD>
    <TD style="BORDER-BOTTOM: medium none #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD></TR></TABLE></DIV>
<P align=justify style="margin-left: 5%">Computer software includes $3.9 million (2010 &#150; nil) of
expenditures incurred to date for information technology projects which are
still in process and not yet placed into service as at the balance sheet date.
</P>
<P align=justify><B>6. OTHER ASSETS: </B></P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-top-style:solid; border-top-width:2" align=left bordercolor="#000000">&nbsp; </TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-top-style:solid; border-top-width:2" align=left
    width="1%" bordercolor="#000000">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-top-style:solid; border-top-width:2" align=right width="12%" bordercolor="#000000">2011
    </TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-top-style:solid; border-top-width:2" align=left
    width="2%" bordercolor="#000000">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-top-style:solid; border-top-width:2" align=left
    width="1%" bordercolor="#000000">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-top-style:solid; border-top-width:2; border-right-style:none; border-right-width:medium" align=right width="12%" bordercolor="#000000">2010
    </TD>
    <TD style="BORDER-BOTTOM: medium none #000000; ; border-top-style:none; border-top-width:medium; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium" align=left
    width="2%" bordercolor="#000000">&nbsp;</TD></TR>
  <TR>
    <TD bordercolor="#000000">&nbsp; </TD>
    <TD width="1%" bordercolor="#000000">&nbsp;</TD>
    <TD width="12%" bordercolor="#000000">&nbsp; </TD>
    <TD width="2%" bordercolor="#000000">&nbsp;</TD>
    <TD width="1%" bordercolor="#000000">&nbsp;</TD>
    <TD width="12%" bordercolor="#000000" style="border-right-style: none; border-right-width: medium">&nbsp; </TD>
    <TD width="2%" bordercolor="#000000" style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff bordercolor="#000000">Prepaid lease deposit </TD>
    <TD align=left width="1%" bgColor=#e6efff bordercolor="#000000">$</TD>
    <TD align=right width="12%" bgColor=#e6efff bordercolor="#000000">&nbsp;6,073 </TD>
    <TD align=left width="2%" bgColor=#e6efff bordercolor="#000000">&nbsp;</TD>
    <TD align=left width="1%" bgColor=#e6efff bordercolor="#000000">$</TD>
    <TD align=right width="12%" bgColor=#e6efff bordercolor="#000000" style="border-right-style: none; border-right-width: medium">&nbsp;1,500 </TD>
    <TD align=left width="2%" bgColor=#e6efff bordercolor="#000000" style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bordercolor="#000000">Long-term prepaid expenses and other </TD>
    <TD align=left width="1%" bordercolor="#000000">&nbsp;</TD>
    <TD align=right width="12%" bordercolor="#000000">3,069 </TD>
    <TD align=left width="2%" bordercolor="#000000">&nbsp;</TD>
    <TD align=left width="1%" bordercolor="#000000">&nbsp;</TD>
    <TD align=right width="12%" bordercolor="#000000" style="border-right-style: none; border-right-width: medium">3,564 </TD>
    <TD align=left width="2%" bordercolor="#000000" style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff bordercolor="#000000">Deferred financing charges </TD>
    <TD align=left width="1%" bgColor=#e6efff bordercolor="#000000">&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff bordercolor="#000000">2,789 </TD>
    <TD align=left width="2%" bgColor=#e6efff bordercolor="#000000">&nbsp;</TD>
    <TD align=left width="1%" bgColor=#e6efff bordercolor="#000000">&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff bordercolor="#000000" style="border-right-style: none; border-right-width: medium">- </TD>
    <TD align=left width="2%" bgColor=#e6efff bordercolor="#000000" style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bordercolor="#000000">Long-term non-trade receivable </TD>
    <TD align=left width="1%" bordercolor="#000000">&nbsp;</TD>
    <TD align=right width="12%" bordercolor="#000000">1,120 </TD>
    <TD align=left width="2%" bordercolor="#000000">&nbsp;</TD>
    <TD align=left width="1%" bordercolor="#000000">&nbsp;</TD>
    <TD align=right width="12%" bordercolor="#000000" style="border-right-style: none; border-right-width: medium">953 </TD>
    <TD align=left width="2%" bordercolor="#000000" style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      bgColor=#e6efff bordercolor="#000000">Restricted cash related to the acquisition of Prewett
      (note 19(d)) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    bgColor=#e6efff bordercolor="#000000">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="12%"
    bgColor=#e6efff bordercolor="#000000">- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    bgColor=#e6efff bordercolor="#000000">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    bgColor=#e6efff bordercolor="#000000">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-right-style:none; border-right-width:medium" align=right width="12%"
    bgColor=#e6efff bordercolor="#000000">5,788 </TD>
    <TD style="BORDER-BOTTOM: medium none #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" align=left width="2%"
    bgColor=#e6efff bordercolor="#000000">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left bordercolor="#000000">&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%" bordercolor="#000000">$</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right
      width="12%" bordercolor="#000000">&nbsp;13,051 </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left
    width="2%" bordercolor="#000000">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%" bordercolor="#000000">$</TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-right-style:none; border-right-width:medium" align=right
      width="12%" bordercolor="#000000">&nbsp;11,805 </TD>
    <TD style="BORDER-BOTTOM: medium none #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" align=left
    width="2%" bordercolor="#000000">&nbsp;</TD></TR></TABLE>
<P align=justify><B>7. REVOLVING LINE OF CREDIT: </B></P>
<P align=justify>The Company's joint venture, CanAm, has a revolving line of
credit in the amount of $4.0 million. Borrowings are due on demand and bear
interest at LIBOR plus 2.0%, with a minimum interest rate of 4.0%, resulting in
an initial rate of 4.0% per annum. 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 2, 2011 and October 3, 2010. </P>
<P align=right>GILDAN 2011 REPORT TO SHAREHOLDERS P.67</P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<!--$$/page=-->
<table border="0" cellpadding="0" cellspacing="0" style="border-collapse: collapse" bordercolor="#111111" width="100%">
  <tr>
    <td width="50%"><font size="2">
    <IMG
src="financialsx1x1.jpg" border=0 width="96" height="21"></font></td>
    <td width="50%">
<P align=right><font size="2">NOTES TO CONSOLIDATED FINANCIAL STATEMENTS </font></P>
    </td>
  </tr>
</table>
<P align=justify><B>8. LONG-TERM DEBT:</B><BR></P>
<P align=justify>In June 2011, the Company increased its existing unsecured
revolving long-term credit facility from $400 million to $800 million. The
amended facility has a maturity date of June 2016. Amounts drawn under the
revised facility bear interest at a variable banker&#146;s acceptance or U.S.
LIBOR-based interest rate plus a spread ranging from 125 to 200 basis points.
The Company incurred certain costs related to the revolving long-term credit
facility. These charges are recorded at cost and are being amortized as a
financial expense on a straight-line basis over the term of the related
facility. The deferred financing charges are included in other assets on the
consolidated balance sheet. At October 2, 2011, $209.0 million (October 3, 2010
- nil) was drawn under this facility bearing a combined effective interest rate
for the period of 2.3%, including the impact of interest rate swaps. In
addition, an amount of $5.8 million (October 3, 2010 -$12.7 million) has been
committed against this facility to cover various letters of credit as described
in note 14. </P>
<P align=justify>Under various financing arrangements with its bankers and other
long-term lenders, including the revolving long-term credit facility, the Company is
required to meet certain financial covenants. The revolving long-term credit facility
requires the Company to maintain a net debt to trailing twelve months EBITDA ratio below 3.0:1, although the facility provides that this limit may be
exceeded in the short term under certain circumstances, and to maintain an
interest coverage ratio. The Company was in compliance with all financial
covenants as at October 2, 2011 and October 3, 2010. </P>
<P align=justify><B>9. EMPLOYEE BENEFIT PLANS:</B><BR></P>
<P align=justify><B><I>Defined Benefit Plan </I></B></P>
<P align=justify>The Company has a funded qualified defined benefit pension plan
(&#147;Retirement Plan&#148;) covering certain employees of Gold Toe Moretz. At the time
of the acquisition of Gold Toe Moretz in April 2011, the Retirement Plan was in
a net deficit position of $21.8 million, which was included in accounts payable
and accrued liabilities. Management&#146;s intention is to fully fund the deficit,
and subsequently liquidate and wind-up the Retirement Plan within the next
twelve months. An actuarial valuation was performed at the date of acquisition
and at October 2, 2011 with liabilities determined on a plan termination basis.
The last valuation for funding purposes was performed on January 1, 2011, and
the next valuation for funding purposes is expected to be performed on January
1, 2012. The Company has made funding contributions of $19 million, and has
begun de-risking the Retirement Plan through settlement payments totaling $39
million for the period from April 15, 2011 to October 2, 2011. The Company
expects to contribute approximately $5.5 million to the Retirement Plan in
fiscal 2012 followed by the termination and wind-up of the Retirement Plan
shortly thereafter. </P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD align=left bordercolor="#000000">At October 2, 2011, the funded status of the Company&#146;s
      Retirement Plan was as follows: </TD>
    <TD align=left width="1%" bordercolor="#000000" >&nbsp;</TD>
    <TD align=left width="12%" bordercolor="#000000" style="border-right-style: none; border-right-width: medium">&nbsp; </TD>
    <TD align=left width="2%" bordercolor="#000000" style="border-style: none; border-width: medium" >&nbsp;</TD></TR>
  <TR>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bordercolor="#000000">&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" width="1%" bordercolor="#000000"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-right-style:none; border-right-width:medium" width="12%" bordercolor="#000000">&nbsp; </TD>
    <TD style="BORDER-BOTTOM: medium none #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" width="2%" bordercolor="#000000"
    >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left style="border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000">&nbsp; </TD>
    <TD align=left width="1%" style="border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000" >&nbsp;</TD>
    <TD align=right width="12%" style="border-right-style: none; border-right-width: medium; border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000">October 2, 2011 </TD>
    <TD align=left width="2%" bordercolor="#000000" style="border-style: none; border-width: medium" >&nbsp;</TD></TR>
  <TR>
    <TD style="border-top-style: solid; border-top-width: 1" bordercolor="#000000">&nbsp; </TD>
    <TD width="1%" style="border-top-style: solid; border-top-width: 1" bordercolor="#000000" >&nbsp;</TD>
    <TD width="12%" style="border-right-style: none; border-right-width: medium; border-top-style: solid; border-top-width: 1" bordercolor="#000000">&nbsp; </TD>
    <TD width="2%" bordercolor="#000000" style="border-style: none; border-width: medium" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff bordercolor="#000000">Benefit obligation at April 15, 2011 </TD>
    <TD align=left width="1%"  bgColor=#e6efff bordercolor="#000000">$</TD>
    <TD align=right width="12%" bgColor=#e6efff bordercolor="#000000" style="border-right-style: none; border-right-width: medium">&nbsp;55,975 </TD>
    <TD align=left width="2%"  bgColor=#e6efff bordercolor="#000000" style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bordercolor="#000000">Interest cost </TD>
    <TD align=left width="1%" bordercolor="#000000" >&nbsp;</TD>
    <TD align=right width="12%" bordercolor="#000000" style="border-right-style: none; border-right-width: medium">900 </TD>
    <TD align=left width="2%" bordercolor="#000000" style="border-style: none; border-width: medium" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff bordercolor="#000000">Actuarial loss </TD>
    <TD align=left width="1%"  bgColor=#e6efff bordercolor="#000000">&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff bordercolor="#000000" style="border-right-style: none; border-right-width: medium">1,574 </TD>
    <TD align=left width="2%"  bgColor=#e6efff bordercolor="#000000" style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bordercolor="#000000">Settlement charge </TD>
    <TD align=left width="1%" bordercolor="#000000" >&nbsp;</TD>
    <TD align=right width="12%" bordercolor="#000000" style="border-right-style: none; border-right-width: medium">545 </TD>
    <TD align=left width="2%" bordercolor="#000000" style="border-style: none; border-width: medium" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff bordercolor="#000000">Benefits paid </TD>
    <TD align=left width="1%"  bgColor=#e6efff bordercolor="#000000">&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff bordercolor="#000000" style="border-right-style: none; border-right-width: medium">(1,879</TD>
    <TD align=left width="2%"  bgColor=#e6efff bordercolor="#000000" style="border-style: none; border-width: medium">) </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left bordercolor="#000000">Plan settlements
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%" bordercolor="#000000"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-right-style:none; border-right-width:medium" align=right
      width="12%" bordercolor="#000000">(39,004</TD>
    <TD style="BORDER-BOTTOM: medium none #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" align=left width="2%" bordercolor="#000000"
    >) </TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff style="border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000">Benefit obligation at end of year </TD>
    <TD align=left width="1%"  bgColor=#e6efff style="border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000">$</TD>
    <TD align=right width="12%" bgColor=#e6efff style="border-right-style: none; border-right-width: medium; border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000">&nbsp;18,111 </TD>
    <TD align=left width="2%"  bgColor=#e6efff bordercolor="#000000" style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR>
    <TD style="border-top-style: solid; border-top-width: 1" bordercolor="#000000">&nbsp; </TD>
    <TD width="1%" style="border-top-style: solid; border-top-width: 1" bordercolor="#000000" >&nbsp;</TD>
    <TD width="12%" style="border-right-style: none; border-right-width: medium; border-top-style: solid; border-top-width: 1" bordercolor="#000000">&nbsp; </TD>
    <TD width="2%" bordercolor="#000000" style="border-style: none; border-width: medium" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff bordercolor="#000000">Fair value of plan assets at April 15, 2011
    </TD>
    <TD align=left width="1%"  bgColor=#e6efff bordercolor="#000000">$</TD>
    <TD align=right width="12%" bgColor=#e6efff bordercolor="#000000" style="border-right-style: none; border-right-width: medium">&nbsp;34,181 </TD>
    <TD align=left width="2%"  bgColor=#e6efff bordercolor="#000000" style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bordercolor="#000000">Employer contributions </TD>
    <TD align=left width="1%" bordercolor="#000000" >&nbsp;</TD>
    <TD align=right width="12%" bordercolor="#000000" style="border-right-style: none; border-right-width: medium">19,000 </TD>
    <TD align=left width="2%" bordercolor="#000000" style="border-style: none; border-width: medium" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff bordercolor="#000000">Plan settlements </TD>
    <TD align=left width="1%"  bgColor=#e6efff bordercolor="#000000">&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff bordercolor="#000000" style="border-right-style: none; border-right-width: medium">(39,004</TD>
    <TD align=left width="2%"  bgColor=#e6efff bordercolor="#000000" style="border-style: none; border-width: medium">) </TD></TR>
  <TR vAlign=top>
    <TD align=left bordercolor="#000000">Actual return on plan assets </TD>
    <TD align=left width="1%" bordercolor="#000000" >&nbsp;</TD>
    <TD align=right width="12%" bordercolor="#000000" style="border-right-style: none; border-right-width: medium">267 </TD>
    <TD align=left width="2%" bordercolor="#000000" style="border-style: none; border-width: medium" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      bgColor=#e6efff bordercolor="#000000">Benefits paid </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff bordercolor="#000000">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-right-style:none; border-right-width:medium" align=right width="12%"
    bgColor=#e6efff bordercolor="#000000">(1,879</TD>
    <TD style="BORDER-BOTTOM: medium none #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" align=left width="2%"
     bgColor=#e6efff bordercolor="#000000">) </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left bordercolor="#000000">Fair value of plan
      assets at end of year </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%" bordercolor="#000000"
    >$</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-right-style:none; border-right-width:medium" align=right
      width="12%" bordercolor="#000000">&nbsp;12,565 </TD>
    <TD style="BORDER-BOTTOM: medium none #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" align=left width="2%" bordercolor="#000000"
    >&nbsp;</TD></TR>
  <TR>
    <TD bgColor=#e6efff bordercolor="#000000">&nbsp; </TD>
    <TD width="1%"  bgColor=#e6efff bordercolor="#000000">&nbsp;</TD>
    <TD width="12%" bgColor=#e6efff bordercolor="#000000" style="border-right-style: none; border-right-width: medium">&nbsp; </TD>
    <TD width="2%"  bgColor=#e6efff bordercolor="#000000" style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bordercolor="#000000">Funded status - plan deficit </TD>
    <TD align=left width="1%" bordercolor="#000000" >$</TD>
    <TD align=right width="12%" bordercolor="#000000" style="border-right-style: none; border-right-width: medium">&nbsp;(5,546</TD>
    <TD align=left width="2%" bordercolor="#000000" style="border-style: none; border-width: medium" >) </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      bgColor=#e6efff bordercolor="#000000">Unamortized actuarial loss </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff bordercolor="#000000">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-right-style:none; border-right-width:medium" align=right width="12%"
    bgColor=#e6efff bordercolor="#000000">1,574 </TD>
    <TD style="BORDER-BOTTOM: medium none #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" align=left width="2%"
     bgColor=#e6efff bordercolor="#000000">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left bordercolor="#000000">Accrued benefit
      liability - included in accounts payable and accrued liabilities </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%" bordercolor="#000000"
    >$</TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-right-style:none; border-right-width:medium" align=right
      width="12%" bordercolor="#000000">&nbsp;(3,972</TD>
    <TD style="BORDER-BOTTOM: medium none #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" align=left width="2%" bordercolor="#000000"
    >) </TD></TR>
  <TR>
    <TD bgColor=#ffffff bordercolor="#000000">&nbsp; </TD>
    <TD width="1%"  bgColor=#ffffff bordercolor="#000000">&nbsp;</TD>
    <TD width="12%" bgColor=#ffffff bordercolor="#000000" style="border-right-style: none; border-right-width: medium">&nbsp; </TD>
    <TD width="2%"  bgColor=#ffffff bordercolor="#000000" style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#ffffff bordercolor="#000000">The plan assets are invested entirely in
      high quality money market funds. </TD>
    <TD align=left width="1%"  bgColor=#ffffff bordercolor="#000000">&nbsp;</TD>
    <TD align=left width="12%" bgColor=#ffffff bordercolor="#000000">&nbsp; </TD>
    <TD align=left width="2%"
  bgColor=#ffffff bordercolor="#000000" style="border-top-style: none; border-top-width: medium">&nbsp;</TD></TR></TABLE>
<P align=right>GILDAN 2011 REPORT TO SHAREHOLDERS P.68</P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<!--$$/page=--><A name=page_20></A>
<table border="0" cellpadding="0" cellspacing="0" style="border-collapse: collapse" bordercolor="#111111" width="100%">
  <tr>
    <td width="50%"><font size="2">
    <IMG
src="financialsx1x1.jpg" border=0 width="96" height="21"></font></td>
    <td width="50%">
<P align=right><font size="2">NOTES TO CONSOLIDATED FINANCIAL STATEMENTS </font></P>
    </td>
  </tr>
</table>
<P align=justify><B>9. EMPLOYEE BENEFIT PLANS (continued): </B></P>
<P align=justify>Net periodic pension expense of the Company&#146;s Retirement Plan
for the year ended October 2, 2011 includes the following components: </P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD align=left style="border-top-style: solid; border-top-width: 2; border-bottom-style:solid; border-bottom-width:1" bordercolor="#000000">&nbsp; </TD>
    <TD align=left width="1%" style="border-top-style: solid; border-top-width: 2; border-bottom-style:solid; border-bottom-width:1" bordercolor="#000000">&nbsp;</TD>
    <TD align=right width="12%" style="border-top-style: solid; border-top-width: 2; border-bottom-style:solid; border-bottom-width:1; border-right-style:none; border-right-width:medium" bordercolor="#000000">2011 </TD>
    <TD align=left width="2%" style="border-style:none; border-width:medium; " bordercolor="#000000">&nbsp;</TD></TR>
  <TR>
    <TD style="border-top-style: solid; border-top-width: 1" bordercolor="#000000">&nbsp; </TD>
    <TD width="1%" style="border-top-style: solid; border-top-width: 1" bordercolor="#000000">&nbsp;</TD>
    <TD width="12%" style="border-top-style: solid; border-top-width: 1; border-right-style:none; border-right-width:medium" bordercolor="#000000">&nbsp; </TD>
    <TD width="2%" style="border-style:none; border-width:medium; " bordercolor="#000000">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff bordercolor="#000000">Interest cost </TD>
    <TD align=left width="1%" bgColor=#e6efff bordercolor="#000000">$</TD>
    <TD align=right width="12%" bgColor=#e6efff bordercolor="#000000" style="border-right-style: none; border-right-width: medium">&nbsp;900 </TD>
    <TD align=left width="2%" bgColor=#e6efff bordercolor="#000000" style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bordercolor="#000000">Expected return on plan assets </TD>
    <TD align=left width="1%" bordercolor="#000000">&nbsp;</TD>
    <TD align=right width="12%" bordercolor="#000000" style="border-right-style: none; border-right-width: medium">(267</TD>
    <TD align=left width="2%" bordercolor="#000000" style="border-style: none; border-width: medium">) </TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff style="border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000">Settlement charge </TD>
    <TD align=left width="1%" bgColor=#e6efff style="border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000">&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff style="border-right-style: none; border-right-width: medium; border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000">545 </TD>
    <TD align=left width="2%" bgColor=#e6efff bordercolor="#000000" style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-top-style:solid; border-top-width:1" align=left bordercolor="#000000">Net periodic
      pension expense - included in restructuring and acquisition-related costs
    </TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-top-style:solid; border-top-width:1" align=left width="1%" bordercolor="#000000">$</TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-right-style:none; border-right-width:medium; border-top-style:solid; border-top-width:1" align=right
      width="12%" bordercolor="#000000">&nbsp;1,178 </TD>
    <TD style="BORDER-BOTTOM: medium none #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" align=left
    width="2%" bordercolor="#000000">&nbsp;</TD></TR></TABLE>
<P align=justify>Weighted-average assumptions to determine benefit obligations
and net periodic benefit cost: </P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-top-style:solid; border-top-width:2" align=left bordercolor="#000000">&nbsp; </TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-top-style:solid; border-top-width:2" align=left
    width="1%" bordercolor="#000000">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-top-style:solid; border-top-width:2; border-right-style:none; border-right-width:medium" align=right width="12%" bordercolor="#000000">2011
    </TD>
    <TD style="BORDER-BOTTOM: medium none #000000; ; border-top-style:none; border-top-width:medium; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium" align=left
    width="2%">&nbsp;</TD></TR>
  <TR>
    <TD bordercolor="#000000">&nbsp; </TD>
    <TD width="1%" bordercolor="#000000">&nbsp;</TD>
    <TD width="12%" style="border-right-style: none; border-right-width: medium" bordercolor="#000000">&nbsp; </TD>
    <TD width="2%" style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff bordercolor="#000000">Benefit obligation: </TD>
    <TD align=left width="1%" bgColor=#e6efff bordercolor="#000000">&nbsp;</TD>
    <TD align=left width="12%" bgColor=#e6efff style="border-right-style: none; border-right-width: medium" bordercolor="#000000">&nbsp; </TD>
    <TD align=left width="2%" bgColor=#e6efff style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bordercolor="#000000">&nbsp; &nbsp; &nbsp;Discount rate </TD>
    <TD align=left width="1%" bordercolor="#000000">&nbsp;</TD>
    <TD align=right width="12%" style="border-right-style: none; border-right-width: medium" bordercolor="#000000">4.84% </TD>
    <TD align=left width="2%" style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR>
    <TD bgColor=#e6efff bordercolor="#000000">&nbsp; </TD>
    <TD width="1%" bgColor=#e6efff bordercolor="#000000">&nbsp;</TD>
    <TD width="12%" bgColor=#e6efff style="border-right-style: none; border-right-width: medium" bordercolor="#000000">&nbsp; </TD>
    <TD width="2%" bgColor=#e6efff style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bordercolor="#000000">Net periodic benefit cost: </TD>
    <TD align=left width="1%" bordercolor="#000000">&nbsp;</TD>
    <TD align=left width="12%" style="border-right-style: none; border-right-width: medium" bordercolor="#000000">&nbsp; </TD>
    <TD align=left width="2%" style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff bordercolor="#000000">&nbsp; &nbsp; &nbsp;Discount rate </TD>
    <TD align=left width="1%" bgColor=#e6efff bordercolor="#000000">&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff style="border-right-style: none; border-right-width: medium" bordercolor="#000000">3.74% </TD>
    <TD align=left width="2%" bgColor=#e6efff style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left bordercolor="#000000">&nbsp; &nbsp;
      &nbsp;Rate of return on plan assets </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left
    width="1%" bordercolor="#000000">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-right-style:none; border-right-width:medium" align=right width="12%" bordercolor="#000000">3.50%
    </TD>
    <TD style="BORDER-BOTTOM: medium none #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" align=left
    width="2%">&nbsp;</TD></TR></TABLE>
<P align=justify><B><I>Defined Contribution Plan <BR></I></B>For the year ended
October 2, 2011, defined contribution expenses were $2.0 million (October 3,
2010 - $1.4 million; October 4, 2009 - $1.4 million). </P>
<P align=justify><B><I>Statutory Severance <BR></I></B>During fiscal 2011, the
Company expensed $12.2 million (2010 - $9.1 million; 2009 - $7.1 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 2, 2011, an
amount of $12.6 million (October 3, 2010 - $10.2 million) has been included in
accounts payable and accrued liabilities. </P>
<P align=justify><B>10. SHAREHOLDERS&#146; EQUITY: </B></P>
<TABLE BCLLIST style="font-size:10pt;border-color:black;border-collapse:collapse;" cellpadding="0" cellspacing="0" width="100%" border="0">
<TR><TD width="5%" valign="top">(a) </TD><TD style="text-align: justify">The Company has a shareholder
  rights plan which provides the Board of Directors and the shareholders with
  additional time to assess any unsolicited take-over bid for the Company and,
  where appropriate, pursue other alternatives for maximizing shareholder value.</TD></TR>
<TR><TD width="5%" valign="top">&nbsp;</TD><TD style="text-align: justify">&nbsp;</TD></TR>
<TR><TD width="5%" valign="top">(b) </TD><TD style="text-align: justify">Accumulated other comprehensive
  income: </TD></TR>
<TR><TD width="5%" valign="top">&nbsp;</TD><TD style="text-align: justify">&nbsp;</TD></TR>
<TR><TD width="5%">&nbsp;</TD><TD style="text-align: justify">At the commencement of fiscal 2004, the Company adopted the
U.S. dollar as its functional and reporting currency. The change in the
functional currency for the prior periods resulted in a currency translation
adjustment of $26.2 million, which is reflected in the accumulated other
comprehensive income. 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>
</TABLE>
<P align=right>GILDAN 2011 REPORT TO SHAREHOLDERS P.69</P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>


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<table border="0" cellpadding="0" cellspacing="0" style="border-collapse: collapse" bordercolor="#111111" width="100%">
  <tr>
    <td width="50%"><font size="2">
    <IMG
src="financialsx1x1.jpg" border=0 width="96" height="21"></font></td>
    <td width="50%">
<P align=right><font size="2">NOTES TO CONSOLIDATED FINANCIAL STATEMENTS </font></P>
    </td>
  </tr>
</table>
<P align="justify">
<B>10. SHAREHOLDER&#146;S EQUITY (continued):</B><BR>
</P>
<TABLE BCLLIST style="font-size:10pt;border-color:black;border-collapse:collapse;" cellpadding="0" cellspacing="0" width="100%" border="0">
<TR>
	<TD width=5% valign=top>
(c) 	</TD>
	<TD>
<P align="justify">Share capital:</P>
	</TD>
</TR>
<TR><TD>&nbsp;</TD><TD>&nbsp;</TD></TR><TR>
<TD width=5%></TD>	<TD>
<P align="justify">Authorized:</P>
	</TD>
</TR>
<TR><TD>&nbsp;</TD><TD>&nbsp;</TD></TR><TR>
<TD width=5%></TD>	<TD>
<P align="justify">First preferred shares, without limit as to number and without par value, issuable in series and non-voting. Second preferred shares, without limit as to number and without par value, issuable in series and non-voting. As at
October 2, 2011 and October 3, 2010 none of the first and second preferred shares were issued. Common shares, authorized without limit as to number and without par value.</P>
	</TD>
</TR>
<TR><TD>&nbsp;</TD><TD>&nbsp;</TD></TR><TR>
<TD width=5%></TD>	<TD>
<P align="justify">Issued:</P>
	</TD>
</TR>
<TR><TD>&nbsp;</TD><TD>&nbsp;</TD></TR><TR>
<TD width=5%></TD>	<TD>
<P align="justify">As at October 2, 2011, there were 121,330,544 common shares (October 3, 2010 - 121,351,998) issued and outstanding.</P>
	</TD>
</TR>
<TR><TD>&nbsp;</TD><TD>&nbsp;</TD></TR><TR>
	<TD width=5% valign=top>
(d) 	</TD>
	<TD>
<P align="justify">Normal Course Issuer Bid:</P>
	</TD>
</TR>
</TABLE>
<P align="justify" style="margin-left: 5%">
In December 2010, the Company 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;). During fiscal 2011, the Company
repurchased and cancelled a total of 0.4 million common shares for a total cost of &#36;10.5 million. Of the total cost, &#36;0.3 million was charged to share capital and &#36;10.2 million was charged to retained earnings as there was no amount of
contributed surplus attributable to these common shares. On December 2, 2011 the TSX approved the renewal of the Company&#146;s NCIB to purchase up to one million common shares, representing approximately 0.8% of its issued and outstanding common
shares, in accordance with the requirements of the TSX. Common shares purchased under the NCIB will be cancelled. </P>
<TABLE BCLLIST style="font-size:10pt;border-color:black;border-collapse:collapse;" cellpadding="0" cellspacing="0" width="100%" border="0">
<TR><TD width="5%">(e) </TD><TD>Common shares purchased as settlement for
  Non-Treasury RSUs: </TD></TR>
</TABLE>
<P align="justify" style="margin-left: 5%">
In September 2011, the Company established a trust for the purpose of purchasing 79,108 common shares on the open market for a total cost of &#36;2.2 million which were used to settle the vesting of non-Treasury RSUs in lieu of cash. As such, the
common shares were held in trust for and on behalf of the holders of the vesting non-Treasury RSUs, and the Company reflected the common shares as held in treasury at October 2, 2011. The common shares held in treasury were subsequently re-issued in
October 2011, when the Non-Treasury RSUs vested. At the time the shares were purchased, the corresponding liability recorded in the amount of &#36;2.2 million for the Non-Treasury RSUs initially expected to be settled in cash was reclassified to
contributed surplus. </P>
<P align="justify">
<B>11. STOCK-BASED COMPENSATION:</B><BR>
</P>
<TABLE BCLLIST style="font-size:10pt;border-color:black;border-collapse:collapse;" cellpadding="0" cellspacing="0" width="100%" border="0">
<TR>
	<TD width=5% valign=top>
<B>(a)</B> 	</TD>
	<TD>
<P align="justify"><B>Employee share purchase plans:</B></P>
	</TD>
</TR>
<TR><TD>&nbsp;</TD><TD>&nbsp;</TD></TR><TR>
<TD width=5%></TD>	<TD>
<P align="justify">The Company has employee share purchase plans which allow eligible employees to authorize payroll deductions of up to 10% of their salary to purchase from Treasury, common shares of the Company at a price of 90% of the then
current stock price as defined in the plans. Shares purchased under the plans prior to January 1, 2008 must be held for a minimum of one year. Employees purchasing shares under the plans subsequent to January 1, 2008 must hold the shares for a
minimum of two years. The Company has reserved 2,800,000 common shares for issuance under the plans. As at October 2, 2011, a total of 266,925 shares (2010 - 243,702) were issued under these plans. Included as compensation costs in selling, general
and administrative expenses is &#36;0.1 million (2010 - &#36;0.1 million; 2009 - &#36;0.1 million) relating to the employee share purchase plans.</P>
	</TD>
</TR>
</TABLE>
<P align="right">
GILDAN 2011 REPORT TO SHAREHOLDERS P.70</P>

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



<!--$$/page=-->
<table border="0" cellpadding="0" cellspacing="0" style="border-collapse: collapse" bordercolor="#111111" width="100%">
  <tr>
    <td width="50%"><font size="2">
    <IMG
src="financialsx1x1.jpg" border=0 width="96" height="21"></font></td>
    <td width="50%">
<P align=right><font size="2">NOTES TO CONSOLIDATED FINANCIAL STATEMENTS </font></P>
    </td>
  </tr>
</table>
<P align="left">
<B>11.</B> <B>STOCK-BASED COMPENSATION (continued):</B></P>

<TABLE BCLLIST style="font-size:10pt;border-color:black;border-collapse:collapse;" cellpadding="0" cellspacing="0" width="100%" border="0">
<TR>
<TD width=5%><B>(b) </B></TD>	<TD>
<P align="justify"><B>Stock options and restricted share units:</B></P>
	</TD>
</TR>
<TR><TD>&nbsp;</TD><TD>&nbsp;</TD></TR><TR>
<TD width=5%></TD>	<TD>
<P align="justify">The Company&#146;s Long-Term Incentive Plan (the "LTIP") includes stock options and restricted share units. The LTIP allows the Board of Directors to grant stock options, dilutive restricted share units ("Treasury RSUs") and non-dilutive restricted share units ("non-Treasury RSUs") to officers and other key employees of the Company and its subsidiaries. On February 2, 2006, the shareholders of the Company approved an amendment to the LTIP to fix at 6,000,316 the number of
common shares that are issuable pursuant to the exercise of stock options and the vesting of Treasury RSUs. As at October 2, 2011, 2,530,322 common shares remained authorized for future issuance under this plan.</P>
	</TD>
</TR>
<TR><TD>&nbsp;</TD><TD>&nbsp;</TD></TR><TR>
<TD width=5%></TD>	<TD>
<P align="justify">The exercise price payable for each common share covered by a stock option is determined by the Board of Directors at the date of the grant, but may not be less than the closing price of the common shares of the Company on the
trading day immediately preceding the effective date of the grant. Stock options 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 stock options granted prior to fiscal 2007 have fully vested.</P>
	</TD>
</TR>
<TR><TD>&nbsp;</TD><TD>&nbsp;</TD></TR><TR>
<TD width=5%></TD>	<TD>
<P align="justify">As previously disclosed in fiscal 2010, 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 pursued all reasonable avenues for recoveries from other parties. The steps taken by the Company resulted in: (i) the Company increasing the exercise price of
261,440 unexercised vested stock options during the second quarter of fiscal 2010, resulting in a &#36;0.2 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 &#36;0.77 (from &#36;6.18 to &#36;6.95), and also resulting in an increase of &#36;0.10 to the weighted average exercise price of all options outstanding as at April 4, 2010 (from &#36;18.76 to &#36;18.86),
and; (ii) the Company recovering &#36;2.2 million in cash, including &#36;1.1 million from current senior officers during the second quarter of fiscal 2010 relating to stock options that were previously exercised, and &#36;1.1 million from other
parties during the first quarter of fiscal 2010. Amounts recovered in cash from current senior officers have been recorded as a credit to contributed surplus. No adjustment was required to prior year financial statements under either Canadian or
U.S. GAAP.</P>
	</TD>
</TR>
<TR><TD>&nbsp;</TD><TD>&nbsp;</TD></TR><TR>
<TD width=5%></TD>	<TD>
<P align="justify">Holders of Treasury RSUs, non-Treasury RSUs and deferred share units are entitled to dividends declared by the Company which are recognized in the form of additional equity awards equivalent in value to the dividends paid on
common shares. The vesting conditions of the additional equity awards are subject to the same performance objectives and other terms and conditions as the underlying equity awards. The additional awards related to outstanding Treasury RSUs are
credited to contributed surplus when the dividends are declared, whereas the additional awards related to outstanding non-Treasury RSUs and deferred share units are credited to accounts payable and accrued liabilities.</P>
	</TD>
</TR>
</TABLE>
<P align="right">
GILDAN 2011 REPORT TO SHAREHOLDERS P.71</P>

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

<!--$$/page=-->
<table border="0" cellpadding="0" cellspacing="0" style="border-collapse: collapse" bordercolor="#111111" width="100%">
  <tr>
    <td width="50%"><font size="2">
    <IMG
src="financialsx1x1.jpg" border=0 width="96" height="21"></font></td>
    <td width="50%">
<P align=right><font size="2">NOTES TO CONSOLIDATED FINANCIAL STATEMENTS </font></P>
    </td>
  </tr>
</table>
<P align=justify><B>11.</B> <B>STOCK-BASED COMPENSATION (continued): </B><BR></P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0 BCLLIST>

  <TR>
    <TD vAlign=top width="5%"><B>(b) </B> </TD>
    <TD>
      <P align=justify><B>Stock options and restricted share units (continued):</B></P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD>
      <P align=justify>Outstanding stock options were as
  follows:</P></TD></TR></TABLE><BR>
<div align="right">
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="95%" border=0>

  <TR vAlign=top>
    <TD align=left style="border-top-style: solid; border-top-width: 2" bordercolor="#000000">&nbsp; </TD>
    <TD align=left width="1%" style="border-top-style: solid; border-top-width: 2" bordercolor="#000000" nowrap>&nbsp;</TD>
    <TD align=left width="12%" style="border-top-style: solid; border-top-width: 2" bordercolor="#000000" nowrap>&nbsp; </TD>
    <TD align=left width="2%" style="border-top-style: solid; border-top-width: 2" bordercolor="#000000" nowrap>&nbsp;</TD>
    <TD align=left width="1%" style="border-top-style: solid; border-top-width: 2" bordercolor="#000000" nowrap>&nbsp;</TD>
    <TD align=right width="12%" style="border-top-style: solid; border-top-width: 2; border-right-style:none; border-right-width:medium" bordercolor="#000000" nowrap>Weighted average </TD>
    <TD align=left width="2%" style="border-style:none; border-width:medium; " nowrap>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left bordercolor="#000000">&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="1%" bordercolor="#000000" nowrap>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="12%" bordercolor="#000000" nowrap>Number </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="2%" bordercolor="#000000" nowrap>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="1%" bordercolor="#000000" nowrap>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-right-style:none; border-right-width:medium" align=right
      width="12%" bordercolor="#000000" nowrap>exercise price </TD>
    <TD style="BORDER-BOTTOM: medium none #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" align=left
    width="2%" nowrap>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bordercolor="#000000">&nbsp; </TD>
    <TD align=left width="1%" bordercolor="#000000" nowrap>&nbsp;</TD>
    <TD align=left width="12%" bordercolor="#000000" nowrap>&nbsp; </TD>
    <TD align=left width="2%" bordercolor="#000000" nowrap>&nbsp;</TD>
    <TD align=left width="1%" bordercolor="#000000" nowrap>&nbsp;</TD>
    <TD align=right width="12%" style="border-right-style: none; border-right-width: medium" bordercolor="#000000" nowrap>(in Canadian dollars) </TD>
    <TD align=left width="2%" style="border-style: none; border-width: medium" nowrap>&nbsp;</TD></TR>
  <TR>
    <TD bordercolor="#000000">&nbsp; </TD>
    <TD width="1%" bordercolor="#000000" nowrap>&nbsp;</TD>
    <TD width="12%" bordercolor="#000000" nowrap>&nbsp; </TD>
    <TD width="2%" bordercolor="#000000" nowrap>&nbsp;</TD>
    <TD width="1%" bordercolor="#000000" nowrap>&nbsp;</TD>
    <TD width="12%" style="border-right-style: none; border-right-width: medium" bordercolor="#000000" nowrap>&nbsp; </TD>
    <TD width="2%" style="border-style: none; border-width: medium" nowrap>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff bordercolor="#000000">Stock options outstanding, October 4, 2009
    </TD>
    <TD align=left width="1%" bgColor=#e6efff bordercolor="#000000" nowrap>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff bordercolor="#000000" nowrap>1,010 </TD>
    <TD align=left width="2%" bgColor=#e6efff bordercolor="#000000" nowrap>&nbsp;</TD>
    <TD align=left width="1%" bgColor=#e6efff bordercolor="#000000" nowrap>$</TD>
    <TD align=right width="12%" bgColor=#e6efff style="border-right-style: none; border-right-width: medium" bordercolor="#000000" nowrap>&nbsp;16.21 </TD>
    <TD align=left width="2%" bgColor=#e6efff style="border-style: none; border-width: medium" nowrap>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bordercolor="#000000">Changes in outstanding stock options: </TD>
    <TD align=left width="1%" bordercolor="#000000" nowrap>&nbsp;</TD>
    <TD align=left width="12%" bordercolor="#000000" nowrap>&nbsp; </TD>
    <TD align=left width="2%" bordercolor="#000000" nowrap>&nbsp;</TD>
    <TD align=left width="1%" bordercolor="#000000" nowrap>&nbsp;</TD>
    <TD align=left width="12%" style="border-right-style: none; border-right-width: medium" bordercolor="#000000" nowrap>&nbsp; </TD>
    <TD align=left width="2%" style="border-style: none; border-width: medium" nowrap>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff bordercolor="#000000">&nbsp; &nbsp; &nbsp; &nbsp; &nbsp;Granted
    </TD>
    <TD align=left width="1%" bgColor=#e6efff bordercolor="#000000" nowrap>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff bordercolor="#000000" nowrap>498 </TD>
    <TD align=left width="2%" bgColor=#e6efff bordercolor="#000000" nowrap>&nbsp;</TD>
    <TD align=left width="1%" bgColor=#e6efff bordercolor="#000000" nowrap>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff style="border-right-style: none; border-right-width: medium" bordercolor="#000000" nowrap>21.77 </TD>
    <TD align=left width="2%" bgColor=#e6efff style="border-style: none; border-width: medium" nowrap>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bordercolor="#000000">&nbsp; &nbsp; &nbsp; &nbsp; &nbsp;Exercised </TD>
    <TD align=left width="1%" bordercolor="#000000" nowrap>&nbsp;</TD>
    <TD align=right width="12%" bordercolor="#000000" nowrap>(183</TD>
    <TD align=left width="2%" bordercolor="#000000" nowrap>) </TD>
    <TD align=left width="1%" bordercolor="#000000" nowrap>&nbsp;</TD>
    <TD align=right width="12%" style="border-right-style: none; border-right-width: medium" bordercolor="#000000" nowrap>7.06 </TD>
    <TD align=left width="2%" style="border-style: none; border-width: medium" nowrap>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff style="border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000">&nbsp; &nbsp; &nbsp; &nbsp; &nbsp;Forfeited
    </TD>
    <TD align=left width="1%" bgColor=#e6efff style="border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000" nowrap>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff style="border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000" nowrap>(26</TD>
    <TD align=left width="2%" bgColor=#e6efff style="border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000" nowrap>) </TD>
    <TD align=left width="1%" bgColor=#e6efff style="border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000" nowrap>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff style="border-bottom-style: solid; border-bottom-width: 1; border-right-style:none; border-right-width:medium" bordercolor="#000000" nowrap>26.87 </TD>
    <TD align=left width="2%" bgColor=#e6efff style="border-style: none; border-width: medium" nowrap>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left style="border-top-style: solid; border-top-width: 1" bordercolor="#000000">Stock options outstanding, October 3, 2010 </TD>
    <TD align=left width="1%" style="border-top-style: solid; border-top-width: 1" bordercolor="#000000" nowrap>&nbsp;</TD>
    <TD align=right width="12%" style="border-top-style: solid; border-top-width: 1" bordercolor="#000000" nowrap>1,299 </TD>
    <TD align=left width="2%" style="border-top-style: solid; border-top-width: 1" bordercolor="#000000" nowrap>&nbsp;</TD>
    <TD align=left width="1%" style="border-top-style: solid; border-top-width: 1" bordercolor="#000000" nowrap>&nbsp;</TD>
    <TD align=right width="12%" style="border-top-style: solid; border-top-width: 1; border-right-style:none; border-right-width:medium" bordercolor="#000000" nowrap>19.57 </TD>
    <TD align=left width="2%" style="border-style: none; border-width: medium" nowrap>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff bordercolor="#000000">Changes in outstanding stock options: </TD>
    <TD align=left width="1%" bgColor=#e6efff bordercolor="#000000" nowrap>&nbsp;</TD>
    <TD align=left width="12%" bgColor=#e6efff bordercolor="#000000" nowrap>&nbsp; </TD>
    <TD align=left width="2%" bgColor=#e6efff bordercolor="#000000" nowrap>&nbsp;</TD>
    <TD align=left width="1%" bgColor=#e6efff bordercolor="#000000" nowrap>&nbsp;</TD>
    <TD align=left width="12%" bgColor=#e6efff style="border-right-style: none; border-right-width: medium" bordercolor="#000000" nowrap>&nbsp; </TD>
    <TD align=left width="2%" bgColor=#e6efff style="border-style: none; border-width: medium" nowrap>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bordercolor="#000000">&nbsp; &nbsp; &nbsp; &nbsp; &nbsp;Granted </TD>
    <TD align=left width="1%" bordercolor="#000000" nowrap>&nbsp;</TD>
    <TD align=right width="12%" bordercolor="#000000" nowrap>69 </TD>
    <TD align=left width="2%" bordercolor="#000000" nowrap>&nbsp;</TD>
    <TD align=left width="1%" bordercolor="#000000" nowrap>&nbsp;</TD>
    <TD align=right width="12%" style="border-right-style: none; border-right-width: medium" bordercolor="#000000" nowrap>28.64 </TD>
    <TD align=left width="2%" style="border-style: none; border-width: medium" nowrap>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff bordercolor="#000000">&nbsp; &nbsp; &nbsp; &nbsp; &nbsp;Exercised
    </TD>
    <TD align=left width="1%" bgColor=#e6efff bordercolor="#000000" nowrap>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff bordercolor="#000000" nowrap>(379</TD>
    <TD align=left width="2%" bgColor=#e6efff bordercolor="#000000" nowrap>) </TD>
    <TD align=left width="1%" bgColor=#e6efff bordercolor="#000000" nowrap>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff style="border-right-style: none; border-right-width: medium" bordercolor="#000000" nowrap>8.72 </TD>
    <TD align=left width="2%" bgColor=#e6efff style="border-style: none; border-width: medium" nowrap>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left bordercolor="#000000">&nbsp; &nbsp;
      &nbsp; &nbsp; &nbsp;Forfeited </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="1%" bordercolor="#000000" nowrap>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
width="12%" bordercolor="#000000" nowrap>(28</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%" bordercolor="#000000" nowrap>) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="1%" bordercolor="#000000" nowrap>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-right-style:none; border-right-width:medium" align=right width="12%" bordercolor="#000000" nowrap>26.88
    </TD>
    <TD style="BORDER-BOTTOM: medium none #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" align=left
    width="2%" nowrap>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left
      bgColor=#e6efff bordercolor="#000000">Stock options outstanding, October 2, 2011 </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
    bgColor=#e6efff bordercolor="#000000" nowrap>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right width="12%"
    bgColor=#e6efff bordercolor="#000000" nowrap>961 </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="2%"
    bgColor=#e6efff bordercolor="#000000" nowrap>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
    bgColor=#e6efff bordercolor="#000000" nowrap>$</TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-right-style:none; border-right-width:medium" align=right width="12%"
    bgColor=#e6efff bordercolor="#000000" nowrap>&nbsp;24.28 </TD>
    <TD style="BORDER-BOTTOM: medium none #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" align=left width="2%"
    bgColor=#e6efff nowrap>&nbsp;</TD></TR></TABLE>
</div>
<P align=justify style="margin-left: 5%">The weighted average fair value of each
stock option granted was
estimated on the date of grant using the Black-Scholes pricing model with the
following weighted average assumptions: </P>
<div align="right">
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="95%" border=0>

  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-top-style:solid; border-top-width:2" align=left bordercolor="#000000">&nbsp; </TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-top-style:solid; border-top-width:2" align=left
    width="1%" bordercolor="#000000">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-top-style:solid; border-top-width:2" align=right width="10%" bordercolor="#000000">2011
    </TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-top-style:solid; border-top-width:2" align=left
    width="2%" bordercolor="#000000">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-top-style:solid; border-top-width:2" align=left
    width="1%" bordercolor="#000000">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-top-style:solid; border-top-width:2" align=right width="10%" bordercolor="#000000">2010
    </TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-top-style:solid; border-top-width:2" align=left
    width="2%" bordercolor="#000000">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-top-style:solid; border-top-width:2" align=left
    width="1%" bordercolor="#000000">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-top-style:solid; border-top-width:2; border-right-style:none; border-right-width:medium" align=right width="10%" bordercolor="#000000">2009
    </TD>
    <TD style="BORDER-BOTTOM: medium none #000000; ; border-top-style:none; border-top-width:medium; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium" align=left
    width="2%" bordercolor="#000000">&nbsp;</TD></TR>
  <TR>
    <TD bordercolor="#000000">&nbsp; </TD>
    <TD width="1%" bordercolor="#000000">&nbsp;</TD>
    <TD width="10%" bordercolor="#000000">&nbsp; </TD>
    <TD width="2%" bordercolor="#000000">&nbsp;</TD>
    <TD width="1%" bordercolor="#000000">&nbsp;</TD>
    <TD width="10%" bordercolor="#000000">&nbsp; </TD>
    <TD width="2%" bordercolor="#000000">&nbsp;</TD>
    <TD width="1%" bordercolor="#000000">&nbsp;</TD>
    <TD width="10%" style="border-right-style: none; border-right-width: medium" bordercolor="#000000">&nbsp; </TD>
    <TD width="2%" style="border-style: none; border-width: medium" bordercolor="#000000">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff bordercolor="#000000">Risk-free interest rate </TD>
    <TD align=left width="1%" bgColor=#e6efff bordercolor="#000000">&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff bordercolor="#000000">2.01% </TD>
    <TD align=left width="2%" bgColor=#e6efff bordercolor="#000000">&nbsp;</TD>
    <TD align=left width="1%" bgColor=#e6efff bordercolor="#000000">&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff bordercolor="#000000">2.69% </TD>
    <TD align=left width="2%" bgColor=#e6efff bordercolor="#000000">&nbsp;</TD>
    <TD align=left width="1%" bgColor=#e6efff bordercolor="#000000">&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff style="border-right-style: none; border-right-width: medium" bordercolor="#000000">3.06% </TD>
    <TD align=left width="2%" bgColor=#e6efff style="border-style: none; border-width: medium" bordercolor="#000000">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bordercolor="#000000">Expected volatility </TD>
    <TD align=left width="1%" bordercolor="#000000">&nbsp;</TD>
    <TD align=right width="10%" bordercolor="#000000">52.37% </TD>
    <TD align=left width="2%" bordercolor="#000000">&nbsp;</TD>
    <TD align=left width="1%" bordercolor="#000000">&nbsp;</TD>
    <TD align=right width="10%" bordercolor="#000000">42.48% </TD>
    <TD align=left width="2%" bordercolor="#000000">&nbsp;</TD>
    <TD align=left width="1%" bordercolor="#000000">&nbsp;</TD>
    <TD align=right width="10%" style="border-right-style: none; border-right-width: medium" bordercolor="#000000">34.98% </TD>
    <TD align=left width="2%" style="border-style: none; border-width: medium" bordercolor="#000000">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff bordercolor="#000000">Expected life </TD>
    <TD align=left width="1%" bgColor=#e6efff bordercolor="#000000">&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff bordercolor="#000000">5.25 years </TD>
    <TD align=left width="2%" bgColor=#e6efff bordercolor="#000000">&nbsp;</TD>
    <TD align=left width="1%" bgColor=#e6efff bordercolor="#000000">&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff bordercolor="#000000">7.1 years </TD>
    <TD align=left width="2%" bgColor=#e6efff bordercolor="#000000">&nbsp;</TD>
    <TD align=left width="1%" bgColor=#e6efff bordercolor="#000000">&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff style="border-right-style: none; border-right-width: medium" bordercolor="#000000">5.25 years </TD>
    <TD align=left width="2%" bgColor=#e6efff style="border-style: none; border-width: medium" bordercolor="#000000">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left bordercolor="#000000">Expected dividend
      yield </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left
    width="1%" bordercolor="#000000">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right width="10%" bordercolor="#000000">- </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left
    width="2%" bordercolor="#000000">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left
    width="1%" bordercolor="#000000">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right width="10%" bordercolor="#000000">- </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left
    width="2%" bordercolor="#000000">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left
    width="1%" bordercolor="#000000">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-right-style:none; border-right-width:medium" align=right width="10%" bordercolor="#000000">- </TD>
    <TD style="BORDER-BOTTOM: medium none #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" align=left
    width="2%" bordercolor="#000000">&nbsp;</TD></TR></TABLE>
</div>
<P align=justify style="margin-left: 5%">The grant date weighted average fair value of
stock options granted
in fiscal 2011 was $13.36 (2010 &#150; $8.51; 2009 &#150;$9.24).</P>
<P align=justify style="margin-left: 5%">The following table summarizes information about stock options
outstanding and exercisable at October 2, 2011: </P>
<div align="right">
<TABLE
style="FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse"
cellSpacing=0 cellPadding=0 width="95%" border=0>

  <TR vAlign=top>
    <TD align=left style="border-top-style: solid; border-top-width: 2" bordercolor="#000000">&nbsp; </TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-top-style:solid; border-top-width:2" align=right width="28%"
    colSpan=8 bordercolor="#000000">Options outstanding </TD>
    <TD align=left width="2%" style="border-top-style: solid; border-top-width: 2" bordercolor="#000000">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-top-style:solid; border-top-width:2; border-right-style:none; border-right-width:medium" align=right width="18%"
    colSpan=5 bordercolor="#000000">Options exercisable </TD>
    <TD style="BORDER-BOTTOM: medium none #000000; ; border-top-style:none; border-top-width:medium; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium" align=left
    width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD vAlign=bottom align=left style="border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000">
    <br>
    Range of exercise prices </TD>
    <TD vAlign=bottom align=left width="1%" style="border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000"></TD>
    <TD vAlign=bottom align=right width="10%" style="border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000" nowrap>Number </TD>
    <TD vAlign=bottom align=right width="2%" style="border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000" nowrap></TD>
    <TD vAlign=bottom align=right width="1%" style="border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000" nowrap></TD>
    <TD vAlign=bottom align=right width="10%" style="border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000" nowrap>Weighted average
    <br>
    exercise price</TD>
    <TD vAlign=bottom align=right width="2%" style="border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000" nowrap></TD>
    <TD vAlign=bottom align=right width="1%" style="border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000" nowrap></TD>
    <TD vAlign=bottom align=right width="10%" style="border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000" nowrap>Weighted average
    <br>
    remaining
      contractual <br>
    life (yrs) </TD>
    <TD vAlign=bottom align=right width="2%" style="border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000" nowrap></TD>
    <TD vAlign=bottom align=right width="1%" style="border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000" nowrap></TD>
    <TD vAlign=bottom align=right width="10%" style="border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000" nowrap>Number </TD>
    <TD vAlign=bottom align=right width="2%" style="border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000" nowrap></TD>
    <TD vAlign=bottom align=right width="1%" style="border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000" nowrap></TD>
    <TD vAlign=bottom align=right width="10%" style="border-right-style: none; border-right-width: medium; border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000" nowrap>Weighted average
    <br>
    exercise price</TD>
    <TD align=left width="2%" style="border-style: none; border-width: medium"></TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#FFFFFF style="border-top-style: solid; border-top-width: 1; border-bottom-style:none; border-bottom-width:medium" bordercolor="#000000">(in Canadian
      dollars) </TD>
    <TD align=left width="1%" bgColor=#FFFFFF style="border-top-style: solid; border-top-width: 1; border-bottom-style:none; border-bottom-width:medium" bordercolor="#000000">&nbsp;</TD>
    <TD align=right width="10%" bgColor=#FFFFFF style="border-top-style: solid; border-top-width: 1; border-bottom-style:none; border-bottom-width:medium" bordercolor="#000000">&nbsp;</TD>
    <TD align=left width="2%" bgColor=#FFFFFF style="border-top-style: solid; border-top-width: 1; border-bottom-style:none; border-bottom-width:medium" bordercolor="#000000">&nbsp;</TD>
    <TD align=left width="1%" bgColor=#FFFFFF style="border-top-style: solid; border-top-width: 1; border-bottom-style:none; border-bottom-width:medium" bordercolor="#000000">&nbsp;</TD>
    <TD align=right width="10%" bgColor=#FFFFFF style="border-top-style: solid; border-top-width: 1; border-bottom-style:none; border-bottom-width:medium" bordercolor="#000000">(in Canadian dollars) </TD>
    <TD align=left width="2%" bgColor=#FFFFFF style="border-top-style: solid; border-top-width: 1; border-bottom-style:none; border-bottom-width:medium" bordercolor="#000000">&nbsp;</TD>
    <TD align=left width="1%" bgColor=#FFFFFF style="border-top-style: solid; border-top-width: 1; border-bottom-style:none; border-bottom-width:medium" bordercolor="#000000">&nbsp;</TD>
    <TD align=right width="10%" bgColor=#FFFFFF style="border-top-style: solid; border-top-width: 1; border-bottom-style:none; border-bottom-width:medium" bordercolor="#000000">&nbsp;</TD>
    <TD align=left width="2%" bgColor=#FFFFFF style="border-top-style: solid; border-top-width: 1; border-bottom-style:none; border-bottom-width:medium" bordercolor="#000000">&nbsp;</TD>
    <TD align=left width="1%" bgColor=#FFFFFF style="border-top-style: solid; border-top-width: 1; border-bottom-style:none; border-bottom-width:medium" bordercolor="#000000">&nbsp;</TD>
    <TD align=right width="10%" bgColor=#FFFFFF style="border-top-style: solid; border-top-width: 1; border-bottom-style:none; border-bottom-width:medium" bordercolor="#000000">&nbsp;</TD>
    <TD align=left width="2%" bgColor=#FFFFFF style="border-top-style: solid; border-top-width: 1; border-bottom-style:none; border-bottom-width:medium" bordercolor="#000000">&nbsp;</TD>
    <TD align=left width="1%" bgColor=#FFFFFF style="border-top-style: solid; border-top-width: 1; border-bottom-style:none; border-bottom-width:medium" bordercolor="#000000">&nbsp;</TD>
    <TD align=right width="10%" bgColor=#FFFFFF style="border-right-style: none; border-right-width: medium; border-top-style: solid; border-top-width: 1; border-bottom-style:none; border-bottom-width:medium" bordercolor="#000000">(in Canadian dollars) </TD>
    <TD align=left width="2%" style="border-style:none; border-width:medium; ">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff style="border-top-style: none; border-top-width: medium" bordercolor="#000000">$ 5.40 - $ 5.72 </TD>
    <TD align=left width="1%" bgColor=#e6efff style="border-top-style: none; border-top-width: medium" bordercolor="#000000">&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff style="border-top-style: none; border-top-width: medium" bordercolor="#000000">
    31</TD>
    <TD align=left width="2%" bgColor=#e6efff style="border-top-style: none; border-top-width: medium" bordercolor="#000000">&nbsp;</TD>
    <TD align=left width="1%" bgColor=#e6efff style="border-top-style: none; border-top-width: medium" bordercolor="#000000">$</TD>
    <TD align=right width="10%" bgColor=#e6efff style="border-top-style: none; border-top-width: medium" bordercolor="#000000">&nbsp;5.53 </TD>
    <TD align=left width="2%" bgColor=#e6efff style="border-top-style: none; border-top-width: medium" bordercolor="#000000">&nbsp;</TD>
    <TD align=left width="1%" bgColor=#e6efff style="border-top-style: none; border-top-width: medium" bordercolor="#000000">&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff style="border-top-style: none; border-top-width: medium" bordercolor="#000000">
    0.25</TD>
    <TD align=left width="2%" bgColor=#e6efff style="border-top-style: none; border-top-width: medium" bordercolor="#000000">&nbsp;</TD>
    <TD align=left width="1%" bgColor=#e6efff style="border-top-style: none; border-top-width: medium" bordercolor="#000000">&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff style="border-top-style: none; border-top-width: medium" bordercolor="#000000">
    31</TD>
    <TD align=left width="2%" bgColor=#e6efff style="border-top-style: none; border-top-width: medium" bordercolor="#000000">&nbsp;</TD>
    <TD align=left width="1%" bgColor=#e6efff style="border-top-style: none; border-top-width: medium" bordercolor="#000000">$</TD>
    <TD align=right width="10%" bgColor=#e6efff style="border-right-style: none; border-right-width: medium; border-top-style: none; border-top-width: medium" bordercolor="#000000">&nbsp;5.53 </TD>
    <TD align=left width="2%" bgColor=#e6efff style="border-style:none; border-width:medium; ">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bordercolor="#000000">$20.12 - $23.49 </TD>
    <TD align=left width="1%" bordercolor="#000000">&nbsp;</TD>
    <TD align=right width="10%" bordercolor="#000000">667 </TD>
    <TD align=left width="2%" bordercolor="#000000">&nbsp;</TD>
    <TD align=left width="1%" bordercolor="#000000">&nbsp;</TD>
    <TD align=right width="10%" bordercolor="#000000">22.21 </TD>
    <TD align=left width="2%" bordercolor="#000000">&nbsp;</TD>
    <TD align=left width="1%" bordercolor="#000000">&nbsp;</TD>
    <TD align=right width="10%" bordercolor="#000000">6.60 </TD>
    <TD align=left width="2%" bordercolor="#000000">&nbsp;</TD>
    <TD align=left width="1%" bordercolor="#000000">&nbsp;</TD>
    <TD align=right width="10%" bordercolor="#000000">38 </TD>
    <TD align=left width="2%" bordercolor="#000000">&nbsp;</TD>
    <TD align=left width="1%" bordercolor="#000000">&nbsp;</TD>
    <TD align=right width="10%" style="border-right-style: none; border-right-width: medium" bordercolor="#000000">23.49 </TD>
    <TD align=left width="2%" style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      bgColor=#e6efff bordercolor="#000000">$27.17 - $39.39 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    bgColor=#e6efff bordercolor="#000000">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="10%"
    bgColor=#e6efff bordercolor="#000000">263 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    bgColor=#e6efff bordercolor="#000000">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    bgColor=#e6efff bordercolor="#000000">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="10%"
    bgColor=#e6efff bordercolor="#000000">31.75 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    bgColor=#e6efff bordercolor="#000000">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    bgColor=#e6efff bordercolor="#000000">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="10%"
    bgColor=#e6efff bordercolor="#000000">3.33 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    bgColor=#e6efff bordercolor="#000000">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    bgColor=#e6efff bordercolor="#000000">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="10%"
    bgColor=#e6efff bordercolor="#000000">175 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    bgColor=#e6efff bordercolor="#000000">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    bgColor=#e6efff bordercolor="#000000">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-right-style:none; border-right-width:medium" align=right width="10%"
    bgColor=#e6efff bordercolor="#000000">31.93 </TD>
    <TD style="BORDER-BOTTOM: medium none #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left bordercolor="#000000">&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left
    width="1%" bordercolor="#000000">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right width="10%" bordercolor="#000000">961
</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left
    width="2%" bordercolor="#000000">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%" bordercolor="#000000">$</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right
      width="10%" bordercolor="#000000">&nbsp;24.28 </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left
    width="2%" bordercolor="#000000">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left
    width="1%" bordercolor="#000000">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="10%" bordercolor="#000000">&nbsp;
    </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left
    width="2%" bordercolor="#000000">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left
    width="1%" bordercolor="#000000">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right width="10%" bordercolor="#000000">244
</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left
    width="2%" bordercolor="#000000">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%" bordercolor="#000000">$</TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-right-style:none; border-right-width:medium" align=right
      width="10%" bordercolor="#000000">&nbsp;27.25 </TD>
    <TD style="BORDER-BOTTOM: medium none #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" align=left
    width="2%">&nbsp;</TD></TR></TABLE>
</div>
<P align=justify style="margin-left: 5%">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 within a five-year vesting period. The vesting of at least 50% of each
Treasury RSU grant is contingent on the achievement of performance conditions
that are primarily based on the Company&#146;s average return on assets performance
for the period as compared to the S&amp;P/TSX Capped Consumer Discretionary
Index, excluding income trusts, or as determined by the Board of Directors. </P>
<P align=right>GILDAN 2011 REPORT TO SHAREHOLDERS P.72</P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<!--$$/page=-->
<table border="0" cellpadding="0" cellspacing="0" style="border-collapse: collapse" bordercolor="#111111" width="100%">
  <tr>
    <td width="50%"><font size="2">
    <IMG
src="financialsx1x1.jpg" border=0 width="96" height="21"></font></td>
    <td width="50%">
<P align=right><font size="2">NOTES TO CONSOLIDATED FINANCIAL STATEMENTS </font></P>
    </td>
  </tr>
</table>
<P align=justify><B>11.</B> <B>STOCK-BASED COMPENSATION (continued):  </B><BR></P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0 BCLLIST>

  <TR>
    <TD vAlign=top width="5%"><B>(b) </B> </TD>
    <TD>
      <P align=justify><B>Stock
      options and restricted share units (continued):</B></P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD>
      <P align=justify>Outstanding Treasury RSUs were as
  follows:</P></TD></TR></TABLE><BR>
<div align="right">
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="95%" border=0>

  <TR vAlign=top>
    <TD align=left style="border-top-style: solid; border-top-width: 1" bordercolor="#000000">&nbsp; </TD>
    <TD align=left width="1%" style="border-top-style: solid; border-top-width: 1" bordercolor="#000000">&nbsp;</TD>
    <TD align=left width="12%" style="border-top-style: solid; border-top-width: 1" bordercolor="#000000">&nbsp; </TD>
    <TD align=left width="2%" style="border-top-style: solid; border-top-width: 1" bordercolor="#000000">&nbsp;</TD>
    <TD align=left width="1%" style="border-top-style: solid; border-top-width: 1" bordercolor="#000000">&nbsp;</TD>
    <TD align=right width="12%" style="border-right-style: none; border-right-width: medium; border-top-style: solid; border-top-width: 1" bordercolor="#000000">Weighted average </TD>
    <TD align=left width="2%" style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="12%">Number </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-right-style:none; border-right-width:medium" align=right width="12%">fair
      value per unit </TD>
    <TD style="BORDER-BOTTOM: medium none #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" align=left
    width="2%">&nbsp;</TD></TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%">&nbsp; </TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%" style="border-right-style: none; border-right-width: medium">&nbsp; </TD>
    <TD width="2%" style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Treasury RSUs outstanding, October 4, 2009
    </TD>
    <TD align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff>758 </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%" bgColor=#e6efff>$</TD>
    <TD align=right width="12%" bgColor=#e6efff style="border-right-style: none; border-right-width: medium">&nbsp;18.48 </TD>
    <TD align=left width="2%" bgColor=#e6efff style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>Changes in outstanding Treasury RSUs: </TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=left width="12%">&nbsp; </TD>
    <TD align=left width="2%">&nbsp;</TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=left width="12%" style="border-right-style: none; border-right-width: medium">&nbsp; </TD>
    <TD align=left width="2%" style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp;Granted
    </TD>
    <TD align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff>202 </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff style="border-right-style: none; border-right-width: medium">18.57 </TD>
    <TD align=left width="2%" bgColor=#e6efff style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp;Settled through the
      issuance of common shares </TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="12%">(182</TD>
    <TD align=left width="2%">) </TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="12%" style="border-right-style: none; border-right-width: medium">11.64 </TD>
    <TD align=left width="2%" style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff style="border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000">&nbsp; &nbsp; &nbsp; &nbsp; &nbsp;Forfeited
    </TD>
    <TD align=left width="1%" bgColor=#e6efff style="border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000">&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff style="border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000">(30</TD>
    <TD align=left width="2%" bgColor=#e6efff style="border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000">) </TD>
    <TD align=left width="1%" bgColor=#e6efff style="border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000">&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff style="border-right-style: none; border-right-width: medium; border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000">24.17 </TD>
    <TD align=left width="2%" bgColor=#e6efff style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left style="border-top-style: solid; border-top-width: 1">Treasury RSUs outstanding, October 3, 2010 </TD>
    <TD align=left width="1%" style="border-top-style: solid; border-top-width: 1">&nbsp;</TD>
    <TD align=right width="12%" style="border-top-style: solid; border-top-width: 1">748 </TD>
    <TD align=left width="2%" style="border-top-style: solid; border-top-width: 1">&nbsp;</TD>
    <TD align=left width="1%" style="border-top-style: solid; border-top-width: 1">&nbsp;</TD>
    <TD align=right width="12%" style="border-right-style: none; border-right-width: medium; border-top-style: solid; border-top-width: 1">19.93 </TD>
    <TD align=left width="2%" style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Changes in outstanding Treasury RSUs: </TD>
    <TD align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="12%" bgColor=#e6efff>&nbsp; </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="12%" bgColor=#e6efff style="border-right-style: none; border-right-width: medium">&nbsp; </TD>
    <TD align=left width="2%" bgColor=#e6efff style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp;Granted </TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="12%">62 </TD>
    <TD align=left width="2%">&nbsp;</TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="12%" style="border-right-style: none; border-right-width: medium">35.40 </TD>
    <TD align=left width="2%" style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp;Granted
      for dividends declared </TD>
    <TD align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff>6 </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff style="border-right-style: none; border-right-width: medium">29.93 </TD>
    <TD align=left width="2%" bgColor=#e6efff style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp;Settled through the
      issuance of common shares </TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="12%">(26</TD>
    <TD align=left width="2%">) </TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="12%" style="border-right-style: none; border-right-width: medium">22.68 </TD>
    <TD align=left width="2%" style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp;Forfeited
    </TD>
    <TD align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff>(29</TD>
    <TD align=left width="2%" bgColor=#e6efff>) </TD>
    <TD align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff style="border-right-style: none; border-right-width: medium">25.78 </TD>
    <TD align=left width="2%" bgColor=#e6efff style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp; &nbsp;
      &nbsp; &nbsp; &nbsp;Treasury RSUs granted as contingent consideration
      (note 2) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="12%">150
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-right-style:none; border-right-width:medium" align=right width="12%">35.40
    </TD>
    <TD style="BORDER-BOTTOM: medium none #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" align=left
    width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left
      bgColor=#e6efff>Treasury RSUs outstanding, October 2, 2011 </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right width="12%"
    bgColor=#e6efff>911 </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
    bgColor=#e6efff>$</TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-right-style:none; border-right-width:medium" align=right width="12%"
    bgColor=#e6efff>&nbsp;23.34 </TD>
    <TD style="BORDER-BOTTOM: medium none #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD></TR></TABLE>
</div>
<P align=justify style="margin-left: 5%">As at October 2, 2011 and October 3, 2010, none 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 $4.9 million (2010 - $4.1 million; 2009 - $3.0 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. As described in note 2, the compensation expense
excludes the value of 150,000 Treasury RSUs granted in connection with the
acquisition of Gold Toe Moretz as they are considered contingent consideration.
</P>
<div align="right">
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="95%" border=0>

  <TR vAlign=top>
    <TD align=left>Outstanding non-Treasury RSUs were as follows: </TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=left width="12%" style="border-right-style: none; border-right-width: medium">&nbsp; </TD>
    <TD align=left width="2%" style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR>
    <TD style="BORDER-BOTTOM: #000000 2px solid">&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-right-style:none; border-right-width:medium" width="12%">&nbsp; </TD>
    <TD style="BORDER-BOTTOM: medium none #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left style="border-bottom-style: solid; border-bottom-width: 1">&nbsp; </TD>
    <TD align=left width="1%" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</TD>
    <TD align=right width="12%" style="border-right-style: none; border-right-width: medium; border-bottom-style:solid; border-bottom-width:1">Number </TD>
    <TD align=left width="2%" style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR>
    <TD style="border-top-style: solid; border-top-width: 1">&nbsp; </TD>
    <TD width="1%" style="border-top-style: solid; border-top-width: 1">&nbsp;</TD>
    <TD width="12%" style="border-right-style: none; border-right-width: medium; border-top-style:solid; border-top-width:1">&nbsp; </TD>
    <TD width="2%" style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Non-Treasury RSUs outstanding, October 4,
      2009 </TD>
    <TD align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff style="border-right-style: none; border-right-width: medium">185 </TD>
    <TD align=left width="2%" bgColor=#e6efff style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>Changes in outstanding non-Treasury RSUs: </TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=left width="12%" style="border-right-style: none; border-right-width: medium">&nbsp; </TD>
    <TD align=left width="2%" style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp;Granted
    </TD>
    <TD align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff style="border-right-style: none; border-right-width: medium">214 </TD>
    <TD align=left width="2%" bgColor=#e6efff style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp;Settled </TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="12%" style="border-right-style: none; border-right-width: medium">(70</TD>
    <TD align=left width="2%" style="border-style: none; border-width: medium">) </TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff style="border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000">&nbsp; &nbsp; &nbsp; &nbsp; &nbsp;Forfeited
    </TD>
    <TD align=left width="1%" bgColor=#e6efff style="border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000">&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff style="border-right-style: none; border-right-width: medium; border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000">(16</TD>
    <TD align=left width="2%" bgColor=#e6efff style="border-style: none; border-width: medium" bordercolor="#000000">) </TD></TR>
  <TR vAlign=top>
    <TD align=left style="border-top-style: solid; border-top-width: 1">Non-Treasury RSUs outstanding, October 3, 2010 </TD>
    <TD align=left width="1%" style="border-top-style: solid; border-top-width: 1">&nbsp;</TD>
    <TD align=right width="12%" style="border-right-style: none; border-right-width: medium; border-top-style: solid; border-top-width: 1">313 </TD>
    <TD align=left width="2%" style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Changes in outstanding non-Treasury RSUs:
    </TD>
    <TD align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="12%" bgColor=#e6efff style="border-right-style: none; border-right-width: medium">&nbsp; </TD>
    <TD align=left width="2%" bgColor=#e6efff style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp;Granted </TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="12%" style="border-right-style: none; border-right-width: medium">151 </TD>
    <TD align=left width="2%" style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp;Granted
      for dividends declared </TD>
    <TD align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff style="border-right-style: none; border-right-width: medium">3 </TD>
    <TD align=left width="2%" bgColor=#e6efff style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp;Settled </TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="12%" style="border-right-style: none; border-right-width: medium">(29</TD>
    <TD align=left width="2%" style="border-style: none; border-width: medium">) </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      bgColor=#e6efff>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp;Forfeited </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-right-style:none; border-right-width:medium" align=right width="12%"
    bgColor=#e6efff>(42</TD>
    <TD style="BORDER-BOTTOM: medium none #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" align=left width="2%"
    bgColor=#e6efff>) </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left>Non-Treasury RSUs
      outstanding, October 2, 2011 </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-right-style:none; border-right-width:medium" align=right width="12%">396
    </TD>
    <TD style="BORDER-BOTTOM: medium none #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" align=left
    width="2%">&nbsp;</TD></TR></TABLE>
</div>
<P align=right>GILDAN 2011 REPORT TO SHAREHOLDERS P.73</P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<!--$$/page=-->
<table border="0" cellpadding="0" cellspacing="0" style="border-collapse: collapse" bordercolor="#111111" width="100%">
  <tr>
    <td width="50%"><font size="2">
    <IMG
src="financialsx1x1.jpg" border=0 width="96" height="21"></font></td>
    <td width="50%">
<P align=right><font size="2">NOTES TO CONSOLIDATED FINANCIAL STATEMENTS </font></P>
    </td>
  </tr>
</table>
<P align=justify><B>11.</B> <B>STOCK-BASED COMPENSATION (continued):</B><BR></P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0 BCLLIST>

  <TR>
    <TD width="5%"><B>(b) </B></TD>
    <TD>
      <P align=justify><B>Stock options and restricted share units (continued):</B></P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD>
      <P align=justify>Non-Treasury RSUs have the same features as Treasury
      RSUs, except that their vesting period is a maximum of three years and
      they are expected to be settled in cash at the end of the vesting period.
      The settlement amount is based on the Company's stock price at the vesting
      date. 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 2, 2011, the weighted average fair
      value per non-Treasury RSU was $25.84. 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 2, 2011, none (2010 &#150; 18,911) of the outstanding
      non-Treasury RSUs were vested.</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD>
      <P align=justify>The compensation expense included in selling, general and
      administrative expenses and cost of sales, in respect of the non-Treasury
      RSUs, was $3.7 million (2010 - $2.9 million; 2009 - $0.8 million). The
      liability under this plan as at October 2, 2011, is $3.9 million (October
      3, 2010 - $3.1 million) and is recorded in accounts payable and accrued
      liabilities.</P></TD></TR>
  </TABLE>
<P align=justify><B>12.</B> <B>DEFERRED SHARE UNIT PLAN:</B></P>
<P align=justify>The Company has a deferred share unit plan for independent
members of the Company&#146;s Board of Directors who must receive at least 50% of
their annual board retainers in the form of deferred share units ("DSUs"). The
value of these DSUs is the market price of the Company&#146;s common shares at the
time of payment of the retainers or fees. DSUs granted under the plan will be
redeemable and the value thereof payable in cash only after the director ceases
to act as a director of the Company. As at October 2, 2011, there were 78,416
(2010 - 53,602) DSUs outstanding at a value of $2.0 million (2010 - $1.5
million). This amount is included in accounts payable and accrued liabilities.
The DSU obligation is adjusted each quarter based on the market value of the
Company&#146;s common shares. The Company includes the cost of the DSU plan in
selling, general and administrative expenses. </P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD align=left>Changes in outstanding DSUs were as follows: </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="12%" style="border-right-style: none; border-right-width: medium">&nbsp; </TD>
    <TD align=left width="2%" style="border-style: none; border-width: medium" >&nbsp;</TD></TR>
  <TR>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bordercolor="#000000">&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" width="1%" bordercolor="#000000"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-right-style:none; border-right-width:medium" width="12%" bordercolor="#000000">&nbsp; </TD>
    <TD style="BORDER-BOTTOM: medium none #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" width="2%" bordercolor="#000000"
    >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left style="border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000">&nbsp; </TD>
    <TD align=left width="1%" style="border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000" >&nbsp;</TD>
    <TD align=right width="12%" style="border-right-style: none; border-right-width: medium; border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000">Number </TD>
    <TD align=left width="2%" style="border-style: none; border-width: medium" bordercolor="#000000" >&nbsp;</TD></TR>
  <TR>
    <TD style="border-top-style: solid; border-top-width: 1" bordercolor="#000000">&nbsp; </TD>
    <TD width="1%" style="border-top-style: solid; border-top-width: 1" bordercolor="#000000" >&nbsp;</TD>
    <TD width="12%" style="border-right-style: none; border-right-width: medium; border-top-style: solid; border-top-width: 1" bordercolor="#000000">&nbsp; </TD>
    <TD width="2%" style="border-style: none; border-width: medium" bordercolor="#000000" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff bordercolor="#000000">DSUs outstanding, October 4, 2009 </TD>
    <TD align=left width="1%"  bgColor=#e6efff bordercolor="#000000">&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff bordercolor="#000000" style="border-right-style: none; border-right-width: medium">36 </TD>
    <TD align=left width="2%"  bgColor=#e6efff bordercolor="#000000" style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left bordercolor="#000000">Granted </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%" bordercolor="#000000"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-right-style:none; border-right-width:medium" align=right width="12%" bordercolor="#000000">18
</TD>
    <TD style="BORDER-BOTTOM: medium none #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" align=left width="2%" bordercolor="#000000"
    >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff bordercolor="#000000">DSUs outstanding, October 3, 2010 </TD>
    <TD align=left width="1%"  bgColor=#e6efff bordercolor="#000000">&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff bordercolor="#000000" style="border-right-style: none; border-right-width: medium">54 </TD>
    <TD align=left width="2%"  bgColor=#e6efff bordercolor="#000000" style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left style="border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000">Granted </TD>
    <TD align=left width="1%" style="border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000" >&nbsp;</TD>
    <TD align=right width="12%" style="border-right-style: none; border-right-width: medium; border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000">24 </TD>
    <TD align=left width="2%" style="border-style: none; border-width: medium" bordercolor="#000000" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-top-style:solid; border-top-width:1" align=left
      bgColor=#e6efff bordercolor="#000000">DSUs outstanding, October 2, 2011 </TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-top-style:solid; border-top-width:1" align=left width="1%"
     bgColor=#e6efff bordercolor="#000000">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-right-style:none; border-right-width:medium; border-top-style:solid; border-top-width:1" align=right width="12%"
    bgColor=#e6efff bordercolor="#000000">78 </TD>
    <TD style="BORDER-BOTTOM: medium none #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" align=left width="2%"
     bgColor=#e6efff bordercolor="#000000">&nbsp;</TD></TR></TABLE>
<P align=justify><B>13. COMMITMENTS AND CONTINGENCIES:</B><BR></P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0 BCLLIST>

  <TR>
    <TD vAlign=top width="5%">(a) </TD>
    <TD>
      <P align=justify>The minimum annual lease payments under operating leases
      for premises, equipment and aircraft are approximately as
  follows:</P></TD></TR></TABLE><BR>
<div align="right">
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="95%" border=0>

  <TR>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-top-style:solid; border-top-width:1" align=left
    bgColor=#ffffff>Fiscal year</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-top-style:solid; border-top-width:1" align=left width="1%"
     bgColor=#ffffff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-right-style:none; border-right-width:medium; border-top-style:solid; border-top-width:1" align=right width="12%"
     bgColor=#ffffff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: medium none #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" align=left width="2%"
     bgColor=#ffffff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff bordercolor="#000000">2012 </TD>
    <TD align=left width="1%"  bgColor=#e6efff bordercolor="#000000">$</TD>
    <TD align=right width="12%" bgColor=#e6efff bordercolor="#000000" style="border-right-style: none; border-right-width: medium">&nbsp;12,210 </TD>
    <TD align=left width="2%"  bgColor=#e6efff bordercolor="#000000" style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bordercolor="#000000">2013 </TD>
    <TD align=left width="1%" bordercolor="#000000" >&nbsp;</TD>
    <TD align=right width="12%" bordercolor="#000000" style="border-right-style: none; border-right-width: medium">9,112 </TD>
    <TD align=left width="2%" bordercolor="#000000" style="border-style: none; border-width: medium" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff bordercolor="#000000">2014 </TD>
    <TD align=left width="1%"  bgColor=#e6efff bordercolor="#000000">&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff bordercolor="#000000" style="border-right-style: none; border-right-width: medium">6,555 </TD>
    <TD align=left width="2%"  bgColor=#e6efff bordercolor="#000000" style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bordercolor="#000000">2015 </TD>
    <TD align=left width="1%" bordercolor="#000000" >&nbsp;</TD>
    <TD align=right width="12%" bordercolor="#000000" style="border-right-style: none; border-right-width: medium">5,032 </TD>
    <TD align=left width="2%" bordercolor="#000000" style="border-style: none; border-width: medium" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff bordercolor="#000000">2016 </TD>
    <TD align=left width="1%"  bgColor=#e6efff bordercolor="#000000">&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff bordercolor="#000000" style="border-right-style: none; border-right-width: medium">4,316 </TD>
    <TD align=left width="2%"  bgColor=#e6efff bordercolor="#000000" style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left style="border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000">Thereafter </TD>
    <TD align=left width="1%" style="border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000" >&nbsp;</TD>
    <TD align=right width="12%" style="border-right-style: none; border-right-width: medium; border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000">10,750 </TD>
    <TD align=left width="2%" bordercolor="#000000" style="border-style: none; border-width: medium" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-top-style:solid; border-top-width:1" align=left
      bgColor=#e6efff bordercolor="#000000">&nbsp; </TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-top-style:solid; border-top-width:1" align=left width="1%"
     bgColor=#e6efff bordercolor="#000000">$</TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-right-style:none; border-right-width:medium; border-top-style:solid; border-top-width:1" align=right width="12%"
    bgColor=#e6efff bordercolor="#000000">&nbsp;47,975 </TD>
    <TD style="BORDER-BOTTOM: medium none #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" align=left width="2%"
     bgColor=#e6efff bordercolor="#000000">&nbsp;</TD></TR></TABLE>
</div>
<P align=right>GILDAN 2011 REPORT TO SHAREHOLDERS P.74</P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>


<!--$$/page=-->
<table border="0" cellpadding="0" cellspacing="0" style="border-collapse: collapse" bordercolor="#111111" width="100%">
  <tr>
    <td width="50%"><font size="2">
    <IMG
src="financialsx1x1.jpg" border=0 width="96" height="21"></font></td>
    <td width="50%">
<P align=right><font size="2">NOTES TO CONSOLIDATED FINANCIAL STATEMENTS </font></P>
    </td>
  </tr>
</table>
<P align="justify">
<B>13. COMMITMENTS AND CONTINGENCIES (continued):</B></P>
<TABLE BCLLIST style="font-size:10pt;border-color:black;border-collapse:collapse;" cellpadding="0" cellspacing="0" width="100%" border="0">
<TR>
	<TD width=5% valign=top>
(b) 	</TD>
	<TD>
<P align="justify">As at October 2, 2011, there were contractual obligations outstanding of approximately &#36;54.9 million for the acquisition of property, plant and equipment (2010 - &#36;76.1 million).</P>
	</TD>
</TR>
<TR><TD>&nbsp;</TD><TD>&nbsp;</TD></TR><TR>
	<TD width=5% valign=top>
(c) 	</TD>
	<TD>
<P align="justify">During fiscal 2011, the United States Department of Agriculture advanced &#36;3.3 million (2010 - &#36;3.1 million; 2009 - &#36;4.3 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 2011, the Company recognized &#36;3.2 million of the subsidies received as a reduction of cost of goods sold (2010 - &#36;6.0 million; 2009 - nil), partially offset by a charge of &#36;1.6 million (2010 - &#36;3.0 million;
2009 - nil) 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 &#36;0.5 million (October 3, 2010 - &#36;0.7
million; October 4, 2009 - nil) as a reduction of capital expenditures as at October 2, 2011. As at October 2, 2011, financial assistance received in the amount of &#36;0.8 million, &#36;3.3 million, and &#36;0.6 million is to be disbursed by CanAm
no later than February 2012, February 2013 and February 2014, respectively, to finance eligible capital expenditures.</P>
	</TD>
</TR>
<TR><TD>&nbsp;</TD><TD>&nbsp;</TD></TR><TR>
	<TD width=5% valign=top>
(d) 	</TD>
	<TD>
<P align="justify">Securities Class Actions:</P>
	</TD>
</TR>
<TR><TD>&nbsp;</TD><TD>&nbsp;</TD></TR><TR>
<TD width=5%></TD>	<TD>
<P align="justify">The Company and certain of its senior officers were named as defendants in a number of class action lawsuits filed in the United States District Court for the Southern District of New York, which were subsequently consolidated,
alleging claims under the U.S. securities laws, as well as in class action lawsuits filed in the Ontario Superior Court of Justice and in the Quebec Superior Court. Each of these U.S. and Canadian lawsuits alleged, among other things, that the
defendants misrepresented the Company&#146;s financial condition and its financial prospects in its earnings guidance concerning the 2008 fiscal year, which guidance was subsequently revised on April 29, 2008.</P>
	</TD>
</TR>
<TR><TD>&nbsp;</TD><TD>&nbsp;</TD></TR><TR>
<TD width=5%></TD>	<TD>
<P align="justify">On August 3, 2010, the Company announced that it had entered into an agreement to settle all claims raised in these class action lawsuits, subject to final approval from the courts, on behalf of all persons who acquired the
Company&#146;s common shares between August 2, 2007 and April 29, 2008 (the &#147;Class Members&#148;). Final court approval of the settlement was obtained from each of the courts in February and March 2011 and all of the actions have been dismissed
on terms including releases from Class Members of the claims against the Company and the named senior officers. The settlement agreement provided for a total settlement amount of &#36;22.5 million, which has been entirely funded by the
Company&#146;s insurers. Therefore no provision has been recorded in the consolidated financial statements and no amounts have been disbursed by the Company in respect of the settlement.</P>
	</TD>
</TR>
<TR><TD>&nbsp;</TD><TD>&nbsp;</TD></TR><TR>
	<TD width=5% valign=top>
(e) 	</TD>
	<TD>
<P align="justify">The Company is a party to other claims and litigation arising in the normal course of operations. The Company does not expect the resolution of these matters to have a material adverse effect on the financial position or results
of operations of the Company.</P>
	</TD>
</TR>
</TABLE>
<P align="justify">
<B>14. GUARANTEES:</B></P>
<P align="justify">
The Company, and some of its subsidiaries, have granted corporate guarantees, irrevocable standby letters of credit and surety bonds, to third parties to indemnify them in the event the Company and some of its subsidiaries do not perform their
contractual obligations. As at October 2, 2011, the maximum potential liability under these guarantees was &#36;15.1 million (2010 - &#36;21.8 million), of which &#36;5.0 million (2010 - &#36;5.1 million) was for surety bonds and &#36;10.1 million
(2010 - &#36;16.7  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 2012.
</P>
<P align="justify">
As at October 2, 2011, the Company has recorded no liability with respect to these guarantees, as the Company does not expect to make any payments for the aforementioned items. Management has determined that the fair value of the non-contingent
obligations requiring performance under the guarantees in the event that specified triggering events or conditions occur approximates the cost of obtaining the standby letters of credit and surety bonds. </P>
<P align="right">
GILDAN 2011 REPORT TO SHAREHOLDERS P.75</P>

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

<!--$$/page=-->
<table border="0" cellpadding="0" cellspacing="0" style="border-collapse: collapse" bordercolor="#111111" width="100%">
  <tr>
    <td width="50%"><font size="2">
    <IMG
src="financialsx1x1.jpg" border=0 width="96" height="21"></font></td>
    <td width="50%">
<P align=right><font size="2">NOTES TO CONSOLIDATED FINANCIAL STATEMENTS </font></P>
    </td>
  </tr>
</table>
<P align=justify><B>15. INCOME TAXES:</B><BR></P>
<P align=justify>The income tax provision differs from the amount computed by
applying the combined Canadian federal and provincial tax rates to earnings
before income taxes. The reasons for the difference and the related tax effects
are as follows: </P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD align=left style="border-top-style: solid; border-top-width: 2; border-bottom-style:solid; border-bottom-width:1" bordercolor="#000000">&nbsp; </TD>
    <TD align=left width="1%" style="border-top-style: solid; border-top-width: 2; border-bottom-style:solid; border-bottom-width:1" bordercolor="#000000" >&nbsp;</TD>
    <TD align=right width="10%" style="border-top-style: solid; border-top-width: 2; border-bottom-style:solid; border-bottom-width:1" bordercolor="#000000">2011 </TD>
    <TD align=left width="2%" style="border-top-style: solid; border-top-width: 2; border-bottom-style:solid; border-bottom-width:1" bordercolor="#000000" >&nbsp;</TD>
    <TD align=left width="1%" style="border-top-style: solid; border-top-width: 2; border-bottom-style:solid; border-bottom-width:1" bordercolor="#000000" >&nbsp;</TD>
    <TD align=right width="10%" style="border-top-style: solid; border-top-width: 2; border-bottom-style:solid; border-bottom-width:1" bordercolor="#000000">2010 </TD>
    <TD align=left width="2%" style="border-top-style: solid; border-top-width: 2; border-bottom-style:solid; border-bottom-width:1" bordercolor="#000000" >&nbsp;</TD>
    <TD align=left width="1%" style="border-top-style: solid; border-top-width: 2; border-bottom-style:solid; border-bottom-width:1" bordercolor="#000000" >&nbsp;</TD>
    <TD align=right width="10%" style="border-top-style: solid; border-top-width: 2; border-bottom-style:solid; border-bottom-width:1; border-right-style:none; border-right-width:medium" bordercolor="#000000">2009 </TD>
    <TD align=left width="2%" style="border-style:none; border-width:medium; " bordercolor="#000000" >&nbsp;</TD></TR>
  <TR>
    <TD bordercolor="#000000">&nbsp; </TD>
    <TD width="1%" bordercolor="#000000" >&nbsp;</TD>
    <TD width="10%" bordercolor="#000000">&nbsp; </TD>
    <TD width="2%" bordercolor="#000000" >&nbsp;</TD>
    <TD width="1%" bordercolor="#000000" >&nbsp;</TD>
    <TD width="10%" bordercolor="#000000">&nbsp; </TD>
    <TD width="2%" bordercolor="#000000" >&nbsp;</TD>
    <TD width="1%" bordercolor="#000000" >&nbsp;</TD>
    <TD width="10%" style="border-right-style: none; border-right-width: medium" bordercolor="#000000">&nbsp; </TD>
    <TD width="2%" style="border-style: none; border-width: medium" bordercolor="#000000" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff bordercolor="#000000">Combined basic Canadian federal and
      provincial income taxes </TD>
    <TD align=left width="1%"  bgColor=#e6efff bordercolor="#000000">$</TD>
    <TD align=right width="10%" bgColor=#e6efff bordercolor="#000000">&nbsp;64,514 </TD>
    <TD align=left width="2%"  bgColor=#e6efff bordercolor="#000000">&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff bordercolor="#000000">$</TD>
    <TD align=right width="10%" bgColor=#e6efff bordercolor="#000000">&nbsp;59,533 </TD>
    <TD align=left width="2%"  bgColor=#e6efff bordercolor="#000000">&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff bordercolor="#000000">$</TD>
    <TD align=right width="10%" bgColor=#e6efff style="border-right-style: none; border-right-width: medium" bordercolor="#000000">&nbsp;27,884 </TD>
    <TD align=left width="2%"  bgColor=#e6efff style="border-style: none; border-width: medium" bordercolor="#000000">&nbsp;</TD></TR>
  <TR>
    <TD bordercolor="#000000">&nbsp; </TD>
    <TD width="1%" bordercolor="#000000" >&nbsp;</TD>
    <TD width="10%" bordercolor="#000000">&nbsp; </TD>
    <TD width="2%" bordercolor="#000000" >&nbsp;</TD>
    <TD width="1%" bordercolor="#000000" >&nbsp;</TD>
    <TD width="10%" bordercolor="#000000">&nbsp; </TD>
    <TD width="2%" bordercolor="#000000" >&nbsp;</TD>
    <TD width="1%" bordercolor="#000000" >&nbsp;</TD>
    <TD width="10%" style="border-right-style: none; border-right-width: medium" bordercolor="#000000">&nbsp; </TD>
    <TD width="2%" style="border-style: none; border-width: medium" bordercolor="#000000" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff bordercolor="#000000">(Decrease) increase in income taxes
      resulting from: </TD>
    <TD align=left width="1%"  bgColor=#e6efff bordercolor="#000000">&nbsp;</TD>
    <TD align=left width="10%" bgColor=#e6efff bordercolor="#000000">&nbsp; </TD>
    <TD align=left width="2%"  bgColor=#e6efff bordercolor="#000000">&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff bordercolor="#000000">&nbsp;</TD>
    <TD align=left width="10%" bgColor=#e6efff bordercolor="#000000">&nbsp; </TD>
    <TD align=left width="2%"  bgColor=#e6efff bordercolor="#000000">&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff bordercolor="#000000">&nbsp;</TD>
    <TD align=left width="10%" bgColor=#e6efff style="border-right-style: none; border-right-width: medium" bordercolor="#000000">&nbsp; </TD>
    <TD align=left width="2%"  bgColor=#e6efff style="border-style: none; border-width: medium" bordercolor="#000000">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bordercolor="#000000">&nbsp; &nbsp; &nbsp;Effect of different tax rates on
      earnings of foreign subsidiaries </TD>
    <TD align=left width="1%" bordercolor="#000000" >&nbsp;</TD>
    <TD align=right width="10%" bordercolor="#000000">(82,407</TD>
    <TD align=left width="2%" bordercolor="#000000" >) </TD>
    <TD align=left width="1%" bordercolor="#000000" >&nbsp;</TD>
    <TD align=right width="10%" bordercolor="#000000">(70,105</TD>
    <TD align=left width="2%" bordercolor="#000000" >) </TD>
    <TD align=left width="1%" bordercolor="#000000" >&nbsp;</TD>
    <TD align=right width="10%" style="border-right-style: none; border-right-width: medium" bordercolor="#000000">(32,181</TD>
    <TD align=left width="2%" style="border-style: none; border-width: medium" bordercolor="#000000" >) </TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff bordercolor="#000000">&nbsp; &nbsp; &nbsp;Income tax (recovery)
      charge for prior taxation years </TD>
    <TD align=left width="1%"  bgColor=#e6efff bordercolor="#000000">&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff bordercolor="#000000">(413</TD>
    <TD align=left width="2%"  bgColor=#e6efff bordercolor="#000000">) </TD>
    <TD align=left width="1%"  bgColor=#e6efff bordercolor="#000000">&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff bordercolor="#000000">2,322 </TD>
    <TD align=left width="2%"  bgColor=#e6efff bordercolor="#000000">&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff bordercolor="#000000">&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff style="border-right-style: none; border-right-width: medium" bordercolor="#000000">(6,085</TD>
    <TD align=left width="2%"  bgColor=#e6efff style="border-style: none; border-width: medium" bordercolor="#000000">) </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left bordercolor="#000000">&nbsp; &nbsp;
      &nbsp;Effect of non-deductible expenses and other </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%" bordercolor="#000000"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="10%" bordercolor="#000000">2,564
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%" bordercolor="#000000"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%" bordercolor="#000000"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="10%" bordercolor="#000000">6,346
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%" bordercolor="#000000"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%" bordercolor="#000000"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-right-style:none; border-right-width:medium" align=right width="10%" bordercolor="#000000">4,596
    </TD>
    <TD style="BORDER-BOTTOM: medium none #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" align=left width="2%" bordercolor="#000000"
    >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left
      bgColor=#e6efff bordercolor="#000000">&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
     bgColor=#e6efff bordercolor="#000000">$</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right width="10%"
    bgColor=#e6efff bordercolor="#000000">&nbsp;(15,742</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="2%"
     bgColor=#e6efff bordercolor="#000000">) </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
     bgColor=#e6efff bordercolor="#000000">$</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right width="10%"
    bgColor=#e6efff bordercolor="#000000">&nbsp;(1,904</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="2%"
     bgColor=#e6efff bordercolor="#000000">) </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
     bgColor=#e6efff bordercolor="#000000">$</TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-right-style:none; border-right-width:medium" align=right width="10%"
    bgColor=#e6efff bordercolor="#000000">&nbsp;(5,786</TD>
    <TD style="BORDER-BOTTOM: medium none #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" align=left width="2%"
     bgColor=#e6efff bordercolor="#000000">) </TD></TR></TABLE>
<P align=justify>The income tax recovery of $6.1 million in fiscal 2009, relates
to previously unrecognized tax positions of prior taxation years. </P>
<P align=justify>The components of income taxes are as follows:<BR></P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD align=left style="border-top-style: solid; border-top-width: 2; border-bottom-style:solid; border-bottom-width:1" bordercolor="#000000">&nbsp; </TD>
    <TD align=left width="1%" style="border-top-style: solid; border-top-width: 2; border-bottom-style:solid; border-bottom-width:1" bordercolor="#000000" >&nbsp;</TD>
    <TD align=right width="10%" style="border-top-style: solid; border-top-width: 2; border-bottom-style:solid; border-bottom-width:1" bordercolor="#000000">2011 </TD>
    <TD align=left width="2%" style="border-top-style: solid; border-top-width: 2; border-bottom-style:solid; border-bottom-width:1" bordercolor="#000000" >&nbsp;</TD>
    <TD align=left width="1%" style="border-top-style: solid; border-top-width: 2; border-bottom-style:solid; border-bottom-width:1" bordercolor="#000000" >&nbsp;</TD>
    <TD align=right width="10%" style="border-top-style: solid; border-top-width: 2; border-bottom-style:solid; border-bottom-width:1" bordercolor="#000000">2010 </TD>
    <TD align=left width="2%" style="border-top-style: solid; border-top-width: 2; border-bottom-style:solid; border-bottom-width:1" bordercolor="#000000" >&nbsp;</TD>
    <TD align=left width="1%" style="border-top-style: solid; border-top-width: 2; border-bottom-style:solid; border-bottom-width:1" bordercolor="#000000" >&nbsp;</TD>
    <TD align=right width="10%" style="border-top-style: solid; border-top-width: 2; border-bottom-style:solid; border-bottom-width:1; border-right-style:none; border-right-width:medium" bordercolor="#000000">2009 </TD>
    <TD align=left width="2%" style="border-style:none; border-width:medium; " bordercolor="#000000" >&nbsp;</TD></TR>
  <TR>
    <TD bordercolor="#000000">&nbsp; </TD>
    <TD width="1%" bordercolor="#000000" >&nbsp;</TD>
    <TD width="10%" bordercolor="#000000">&nbsp; </TD>
    <TD width="2%" bordercolor="#000000" >&nbsp;</TD>
    <TD width="1%" bordercolor="#000000" >&nbsp;</TD>
    <TD width="10%" bordercolor="#000000">&nbsp; </TD>
    <TD width="2%" bordercolor="#000000" >&nbsp;</TD>
    <TD width="1%" bordercolor="#000000" >&nbsp;</TD>
    <TD width="10%" bordercolor="#000000" style="border-right-style: none; border-right-width: medium">&nbsp; </TD>
    <TD width="2%" bordercolor="#000000" style="border-style: none; border-width: medium" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff bordercolor="#000000">Current income taxes </TD>
    <TD align=left width="1%"  bgColor=#e6efff bordercolor="#000000">$</TD>
    <TD align=right width="10%" bgColor=#e6efff bordercolor="#000000">&nbsp;3,376 </TD>
    <TD align=left width="2%"  bgColor=#e6efff bordercolor="#000000">&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff bordercolor="#000000">$</TD>
    <TD align=right width="10%" bgColor=#e6efff bordercolor="#000000">&nbsp;9,523 </TD>
    <TD align=left width="2%"  bgColor=#e6efff bordercolor="#000000">&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff bordercolor="#000000">$</TD>
    <TD align=right width="10%" bgColor=#e6efff bordercolor="#000000" style="border-right-style: none; border-right-width: medium">&nbsp;(3,352</TD>
    <TD align=left width="2%"  bgColor=#e6efff bordercolor="#000000" style="border-style: none; border-width: medium">) </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left bordercolor="#000000">Future income
      taxes </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%" bordercolor="#000000"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="10%" bordercolor="#000000">(19,118</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%" bordercolor="#000000"
    >) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%" bordercolor="#000000"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="10%" bordercolor="#000000">(11,427</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%" bordercolor="#000000"
    >) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%" bordercolor="#000000"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-right-style:none; border-right-width:medium" align=right
    width="10%" bordercolor="#000000">(2,434</TD>
    <TD style="BORDER-BOTTOM: medium none #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" align=left width="2%" bordercolor="#000000"
    >) </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left
      bgColor=#e6efff bordercolor="#000000">&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
     bgColor=#e6efff bordercolor="#000000">$</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right width="10%"
    bgColor=#e6efff bordercolor="#000000">&nbsp;(15,742</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="2%"
     bgColor=#e6efff bordercolor="#000000">) </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
     bgColor=#e6efff bordercolor="#000000">$</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right width="10%"
    bgColor=#e6efff bordercolor="#000000">&nbsp;(1,904</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="2%"
     bgColor=#e6efff bordercolor="#000000">) </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
     bgColor=#e6efff bordercolor="#000000">$</TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-right-style:none; border-right-width:medium" align=right width="10%"
    bgColor=#e6efff bordercolor="#000000">&nbsp;(5,786</TD>
    <TD style="BORDER-BOTTOM: medium none #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" align=left width="2%"
     bgColor=#e6efff bordercolor="#000000">) </TD></TR>
  <TR>
    <TD bgColor=#ffffff bordercolor="#000000">&nbsp; </TD>
    <TD width="1%"  bgColor=#ffffff bordercolor="#000000">&nbsp;</TD>
    <TD width="10%" bgColor=#ffffff bordercolor="#000000">&nbsp; </TD>
    <TD width="2%"  bgColor=#ffffff bordercolor="#000000">&nbsp;</TD>
    <TD width="1%"  bgColor=#ffffff bordercolor="#000000">&nbsp;</TD>
    <TD width="10%" bgColor=#ffffff bordercolor="#000000">&nbsp; </TD>
    <TD width="2%"  bgColor=#ffffff bordercolor="#000000">&nbsp;</TD>
    <TD width="1%"  bgColor=#ffffff bordercolor="#000000">&nbsp;</TD>
    <TD width="10%" bgColor=#ffffff bordercolor="#000000" style="border-right-style: none; border-right-width: medium">&nbsp; </TD>
    <TD width="2%"  bgColor=#ffffff bordercolor="#000000" style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#ffffff colSpan=6 bordercolor="#000000">Significant components of the
      Company&#146;s future income tax assets and liabilities are as follows: </TD>
    <TD align=left width="2%"  bgColor=#ffffff bordercolor="#000000">&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#ffffff bordercolor="#000000">&nbsp;</TD>
    <TD align=left width="10%" bgColor=#ffffff bordercolor="#000000" style="border-right-style: none; border-right-width: medium">&nbsp; </TD>
    <TD align=left width="2%"  bgColor=#ffffff bordercolor="#000000" style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#ffffff>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" width="1%"
    bgColor=#ffffff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" width="10%"
      bgColor=#ffffff>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" width="2%"
    bgColor=#ffffff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" width="1%"
    bgColor=#ffffff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" width="10%"
      bgColor=#ffffff>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" width="2%"
    bgColor=#ffffff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" width="1%"
    bgColor=#ffffff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-right-style:none; border-right-width:medium" width="10%"
      bgColor=#ffffff>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: medium none #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" width="2%"
    bgColor=#ffffff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      bgColor=#ffffff>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#ffffff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="10%"
    bgColor=#ffffff>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#ffffff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#ffffff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="10%"
    bgColor=#ffffff>2011 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#ffffff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#ffffff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-right-style:none; border-right-width:medium" align=right width="10%"
    bgColor=#ffffff>2010 </TD>
    <TD style="BORDER-BOTTOM: medium none #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" align=left width="2%"
     bgColor=#ffffff>&nbsp;</TD></TR>
  <TR>
    <TD bgColor=#ffffff>&nbsp; </TD>
    <TD width="1%"  bgColor=#ffffff>&nbsp;</TD>
    <TD width="10%" bgColor=#ffffff>&nbsp; </TD>
    <TD width="2%"  bgColor=#ffffff>&nbsp;</TD>
    <TD width="1%"  bgColor=#ffffff>&nbsp;</TD>
    <TD width="10%" bgColor=#ffffff>&nbsp; </TD>
    <TD width="2%"  bgColor=#ffffff>&nbsp;</TD>
    <TD width="1%"  bgColor=#ffffff>&nbsp;</TD>
    <TD width="10%" bgColor=#ffffff style="border-right-style: none; border-right-width: medium">&nbsp; </TD>
    <TD width="2%"  bgColor=#ffffff style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#E6EFFF>Future income tax assets (liabilities) </TD>
    <TD align=left width="1%"  bgColor=#E6EFFF>&nbsp;</TD>
    <TD align=left width="10%" bgColor=#E6EFFF>&nbsp; </TD>
    <TD align=left width="2%"  bgColor=#E6EFFF>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#E6EFFF>&nbsp;</TD>
    <TD align=left width="10%" bgColor=#E6EFFF>&nbsp; </TD>
    <TD align=left width="2%"  bgColor=#E6EFFF>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#E6EFFF>&nbsp;</TD>
    <TD align=left width="10%" bgColor=#E6EFFF style="border-right-style: none; border-right-width: medium">&nbsp; </TD>
    <TD align=left width="2%"  bgColor=#E6EFFF style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#ffffff>&nbsp; &nbsp; &nbsp;Non-capital losses </TD>
    <TD align=left width="1%"  bgColor=#ffffff>&nbsp;</TD>
    <TD align=left width="10%" bgColor=#ffffff>&nbsp; </TD>
    <TD align=left width="2%"  bgColor=#ffffff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#ffffff>$</TD>
    <TD align=right width="10%" bgColor=#ffffff>&nbsp;67,853 </TD>
    <TD align=left width="2%"  bgColor=#ffffff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#ffffff>$</TD>
    <TD align=right width="10%" bgColor=#ffffff style="border-right-style: none; border-right-width: medium">&nbsp;12,778 </TD>
    <TD align=left width="2%"  bgColor=#ffffff style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#E6EFFF>&nbsp; &nbsp; &nbsp;Taxable temporary
      differences related to: </TD>
    <TD align=left width="1%"  bgColor=#E6EFFF>&nbsp;</TD>
    <TD align=left width="10%" bgColor=#E6EFFF>&nbsp; </TD>
    <TD align=left width="2%"  bgColor=#E6EFFF>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#E6EFFF>&nbsp;</TD>
    <TD align=left width="10%" bgColor=#E6EFFF>&nbsp; </TD>
    <TD align=left width="2%"  bgColor=#E6EFFF>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#E6EFFF>&nbsp;</TD>
    <TD align=left width="10%" bgColor=#E6EFFF style="border-right-style: none; border-right-width: medium">&nbsp; </TD>
    <TD align=left width="2%"  bgColor=#E6EFFF style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#ffffff>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;
      &nbsp;Reserves and accruals </TD>
    <TD align=left width="1%"  bgColor=#ffffff>&nbsp;</TD>
    <TD align=left width="10%" bgColor=#ffffff>&nbsp; </TD>
    <TD align=left width="2%"  bgColor=#ffffff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#ffffff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#ffffff>11,666 </TD>
    <TD align=left width="2%"  bgColor=#ffffff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#ffffff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#ffffff style="border-right-style: none; border-right-width: medium">6,340 </TD>
    <TD align=left width="2%"  bgColor=#ffffff style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#E6EFFF>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;
      &nbsp;Property, plant and equipment </TD>
    <TD align=left width="1%"  bgColor=#E6EFFF>&nbsp;</TD>
    <TD align=left width="10%" bgColor=#E6EFFF>&nbsp; </TD>
    <TD align=left width="2%"  bgColor=#E6EFFF>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#E6EFFF>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#E6EFFF>(6,428</TD>
    <TD align=left width="2%"  bgColor=#E6EFFF>) </TD>
    <TD align=left width="1%"  bgColor=#E6EFFF>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#E6EFFF style="border-right-style: none; border-right-width: medium">(5,863</TD>
    <TD align=left width="2%"  bgColor=#E6EFFF style="border-style: none; border-width: medium">) </TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#ffffff>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;
      &nbsp;Intangible assets </TD>
    <TD align=left width="1%"  bgColor=#ffffff>&nbsp;</TD>
    <TD align=left width="10%" bgColor=#ffffff>&nbsp; </TD>
    <TD align=left width="2%"  bgColor=#ffffff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#ffffff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#ffffff>(91,428</TD>
    <TD align=left width="2%"  bgColor=#ffffff>) </TD>
    <TD align=left width="1%"  bgColor=#ffffff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#ffffff style="border-right-style: none; border-right-width: medium">(19,751</TD>
    <TD align=left width="2%"  bgColor=#ffffff style="border-style: none; border-width: medium">) </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      bgColor=#E6EFFF>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;Other </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#E6EFFF>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="10%"
    bgColor=#E6EFFF>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#E6EFFF>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#E6EFFF>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="10%"
    bgColor=#E6EFFF>3,428 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#E6EFFF>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#E6EFFF>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-right-style:none; border-right-width:medium" align=right width="10%"
    bgColor=#E6EFFF>2,020 </TD>
    <TD style="BORDER-BOTTOM: medium none #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" align=left width="2%"
     bgColor=#E6EFFF>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left
      bgColor=#ffffff>Net future income tax liability </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
     bgColor=#ffffff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="10%"
    bgColor=#ffffff>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="2%"
     bgColor=#ffffff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
     bgColor=#ffffff>$</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right width="10%"
    bgColor=#ffffff>&nbsp;(14,909</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="2%"
     bgColor=#ffffff>) </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
     bgColor=#ffffff>$</TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-right-style:none; border-right-width:medium" align=right width="10%"
    bgColor=#ffffff>&nbsp;(4,476</TD>
    <TD style="BORDER-BOTTOM: medium none #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" align=left width="2%"
     bgColor=#ffffff>) </TD></TR>
  <TR>
    <TD bgColor=#E6EFFF>&nbsp; </TD>
    <TD width="1%"  bgColor=#E6EFFF>&nbsp;</TD>
    <TD width="10%" bgColor=#E6EFFF>&nbsp; </TD>
    <TD width="2%"  bgColor=#E6EFFF>&nbsp;</TD>
    <TD width="1%"  bgColor=#E6EFFF>&nbsp;</TD>
    <TD width="10%" bgColor=#E6EFFF>&nbsp; </TD>
    <TD width="2%"  bgColor=#E6EFFF>&nbsp;</TD>
    <TD width="1%"  bgColor=#E6EFFF>&nbsp;</TD>
    <TD width="10%" bgColor=#E6EFFF style="border-right-style: none; border-right-width: medium">&nbsp; </TD>
    <TD width="2%"  bgColor=#E6EFFF style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#E6EFFF>Presented as: </TD>
    <TD align=left width="1%"  bgColor=#E6EFFF>&nbsp;</TD>
    <TD align=left width="10%" bgColor=#E6EFFF>&nbsp; </TD>
    <TD align=left width="2%"  bgColor=#E6EFFF>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#E6EFFF>&nbsp;</TD>
    <TD align=left width="10%" bgColor=#E6EFFF>&nbsp; </TD>
    <TD align=left width="2%"  bgColor=#E6EFFF>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#E6EFFF>&nbsp;</TD>
    <TD align=left width="10%" bgColor=#E6EFFF style="border-right-style: none; border-right-width: medium">&nbsp; </TD>
    <TD align=left width="2%"  bgColor=#E6EFFF style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#ffffff>&nbsp; &nbsp; &nbsp;Current assets </TD>
    <TD align=left width="1%"  bgColor=#ffffff>&nbsp;</TD>
    <TD align=left width="10%" bgColor=#ffffff>&nbsp; </TD>
    <TD align=left width="2%"  bgColor=#ffffff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#ffffff>$</TD>
    <TD align=right width="10%" bgColor=#ffffff>&nbsp;11,666 </TD>
    <TD align=left width="2%"  bgColor=#ffffff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#ffffff>$</TD>
    <TD align=right width="10%" bgColor=#ffffff style="border-right-style: none; border-right-width: medium">&nbsp;6,340 </TD>
    <TD align=left width="2%"  bgColor=#ffffff style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left
      bgColor=#E6EFFF>&nbsp; &nbsp; &nbsp;Long-term liabilities </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
     bgColor=#E6EFFF>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="10%"
    bgColor=#E6EFFF>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="2%"
     bgColor=#E6EFFF>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
     bgColor=#E6EFFF>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right width="10%"
    bgColor=#E6EFFF>(26,575</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="2%"
     bgColor=#E6EFFF>) </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
     bgColor=#E6EFFF>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-right-style:none; border-right-width:medium" align=right width="10%"
    bgColor=#E6EFFF>(10,816</TD>
    <TD style="BORDER-BOTTOM: medium none #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" align=left width="2%"
     bgColor=#E6EFFF>) </TD></TR></TABLE>
<P align=justify>As at October 2, 2011, the Company has non-capital loss
carryforwards and taxable temporary differences available to reduce future
taxable income for Canadian, and U.S. tax purposes of approximately CAD$4.9
million and $1.4 million, respectively, for which no future tax asset has been
recognized. The non-capital loss carryforwards expire between 2022 and 2031.
</P>
<P align=justify>The Company has not recognized a future income tax liability
for the undistributed profits of its subsidiaries in the current or prior years
because the Company currently does not expect to sell those investments, and for
those undistributed profits that would become taxable, there is no intention to
repatriate the profits. </P>
<P align=right>GILDAN 2011 REPORT TO SHAREHOLDERS P.76</P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<!--$$/page=-->
<table border="0" cellpadding="0" cellspacing="0" style="border-collapse: collapse" bordercolor="#111111" width="100%">
  <tr>
    <td width="50%"><font size="2">
    <IMG
src="financialsx1x1.jpg" border=0 width="96" height="21"></font></td>
    <td width="50%">
<P align=right><font size="2">NOTES TO CONSOLIDATED FINANCIAL STATEMENTS </font></P>
    </td>
  </tr>
</table>
<P align=justify><B>16. RESTRUCTURING AND ACQUISITION-RELATED COSTS, AND ASSETS
HELD FOR SALE:</B></P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-top-style:solid; border-top-width:2" align=left bordercolor="#000000">&nbsp; </TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-top-style:solid; border-top-width:2" align=left width="1%" bordercolor="#000000"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-top-style:solid; border-top-width:2" align=right width="10%" bordercolor="#000000">2011
    </TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-top-style:solid; border-top-width:2" align=left width="2%" bordercolor="#000000"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-top-style:solid; border-top-width:2" align=left width="1%" bordercolor="#000000"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-top-style:solid; border-top-width:2" align=right width="10%" bordercolor="#000000">2010
    </TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-top-style:solid; border-top-width:2" align=left width="2%" bordercolor="#000000"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-top-style:solid; border-top-width:2" align=left width="1%" bordercolor="#000000"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-top-style:solid; border-top-width:2; border-right-style:none; border-right-width:medium" align=right width="10%" bordercolor="#000000">2009
    </TD>
    <TD style="BORDER-BOTTOM: medium none #000000; ; border-top-style:none; border-top-width:medium; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium" align=left width="2%" bordercolor="#000000"
    >&nbsp;</TD></TR>
  <TR>
    <TD bordercolor="#000000">&nbsp; </TD>
    <TD width="1%" bordercolor="#000000" >&nbsp;</TD>
    <TD width="10%" bordercolor="#000000">&nbsp; </TD>
    <TD width="2%" bordercolor="#000000" >&nbsp;</TD>
    <TD width="1%" bordercolor="#000000" >&nbsp;</TD>
    <TD width="10%" bordercolor="#000000">&nbsp; </TD>
    <TD width="2%" bordercolor="#000000" >&nbsp;</TD>
    <TD width="1%" bordercolor="#000000" >&nbsp;</TD>
    <TD width="10%" bordercolor="#000000" style="border-right-style: none; border-right-width: medium">&nbsp; </TD>
    <TD width="2%" bordercolor="#000000" style="border-style: none; border-width: medium" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff bordercolor="#000000">Loss (gain) on disposal of assets held for
      sale </TD>
    <TD align=left width="1%"  bgColor=#e6efff bordercolor="#000000">$</TD>
    <TD align=right width="10%" bgColor=#e6efff bordercolor="#000000">&nbsp;634 </TD>
    <TD align=left width="2%"  bgColor=#e6efff bordercolor="#000000">&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff bordercolor="#000000">$</TD>
    <TD align=right width="10%" bgColor=#e6efff bordercolor="#000000">&nbsp;37 </TD>
    <TD align=left width="2%"  bgColor=#e6efff bordercolor="#000000">&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff bordercolor="#000000">$</TD>
    <TD align=right width="10%" bgColor=#e6efff bordercolor="#000000" style="border-right-style: none; border-right-width: medium">&nbsp;(619</TD>
    <TD align=left width="2%"  bgColor=#e6efff bordercolor="#000000" style="border-style: none; border-width: medium">) </TD></TR>
  <TR vAlign=top>
    <TD align=left bordercolor="#000000">Accelerated depreciation </TD>
    <TD align=left width="1%" bordercolor="#000000" >&nbsp;</TD>
    <TD align=right width="10%" bordercolor="#000000">- </TD>
    <TD align=left width="2%" bordercolor="#000000" >&nbsp;</TD>
    <TD align=left width="1%" bordercolor="#000000" >&nbsp;</TD>
    <TD align=right width="10%" bordercolor="#000000">2,488 </TD>
    <TD align=left width="2%" bordercolor="#000000" >&nbsp;</TD>
    <TD align=left width="1%" bordercolor="#000000" >&nbsp;</TD>
    <TD align=right width="10%" bordercolor="#000000" style="border-right-style: none; border-right-width: medium">- </TD>
    <TD align=left width="2%" bordercolor="#000000" style="border-style: none; border-width: medium" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff bordercolor="#000000">Asset impairment loss and write-down of
      assets held for sale </TD>
    <TD align=left width="1%"  bgColor=#e6efff bordercolor="#000000">&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff bordercolor="#000000">1,722 </TD>
    <TD align=left width="2%"  bgColor=#e6efff bordercolor="#000000">&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff bordercolor="#000000">&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff bordercolor="#000000">1,826 </TD>
    <TD align=left width="2%"  bgColor=#e6efff bordercolor="#000000">&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff bordercolor="#000000">&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff bordercolor="#000000" style="border-right-style: none; border-right-width: medium">1,595 </TD>
    <TD align=left width="2%"  bgColor=#e6efff bordercolor="#000000" style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bordercolor="#000000">Employee termination costs and other benefits </TD>
    <TD align=left width="1%" bordercolor="#000000" >&nbsp;</TD>
    <TD align=right width="10%" bordercolor="#000000">2,887 </TD>
    <TD align=left width="2%" bordercolor="#000000" >&nbsp;</TD>
    <TD align=left width="1%" bordercolor="#000000" >&nbsp;</TD>
    <TD align=right width="10%" bordercolor="#000000">744 </TD>
    <TD align=left width="2%" bordercolor="#000000" >&nbsp;</TD>
    <TD align=left width="1%" bordercolor="#000000" >&nbsp;</TD>
    <TD align=right width="10%" bordercolor="#000000" style="border-right-style: none; border-right-width: medium">2,180 </TD>
    <TD align=left width="2%" bordercolor="#000000" style="border-style: none; border-width: medium" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff bordercolor="#000000">Other exit costs </TD>
    <TD align=left width="1%"  bgColor=#e6efff bordercolor="#000000">&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff bordercolor="#000000">3,222 </TD>
    <TD align=left width="2%"  bgColor=#e6efff bordercolor="#000000">&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff bordercolor="#000000">&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff bordercolor="#000000">3,705 </TD>
    <TD align=left width="2%"  bgColor=#e6efff bordercolor="#000000">&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff bordercolor="#000000">&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff bordercolor="#000000" style="border-right-style: none; border-right-width: medium">3,120 </TD>
    <TD align=left width="2%"  bgColor=#e6efff bordercolor="#000000" style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left bordercolor="#000000">Adjustment for
      employment contract </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%" bordercolor="#000000"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="10%" bordercolor="#000000">- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%" bordercolor="#000000"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%" bordercolor="#000000"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
width="10%" bordercolor="#000000">(95</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%" bordercolor="#000000"
    >) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%" bordercolor="#000000"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-right-style:none; border-right-width:medium" align=right
width="10%" bordercolor="#000000">(77</TD>
    <TD style="BORDER-BOTTOM: medium none #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" align=left width="2%" bordercolor="#000000"
    >) </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left
      bgColor=#e6efff bordercolor="#000000">&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
     bgColor=#e6efff bordercolor="#000000">$</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right width="10%"
    bgColor=#e6efff bordercolor="#000000">&nbsp;8,465 </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="2%"
     bgColor=#e6efff bordercolor="#000000">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
     bgColor=#e6efff bordercolor="#000000">$</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right width="10%"
    bgColor=#e6efff bordercolor="#000000">&nbsp;8,705 </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="2%"
     bgColor=#e6efff bordercolor="#000000">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
     bgColor=#e6efff bordercolor="#000000">$</TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-right-style:none; border-right-width:medium" align=right width="10%"
    bgColor=#e6efff bordercolor="#000000">&nbsp;6,199 </TD>
    <TD style="BORDER-BOTTOM: medium none #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" align=left width="2%"
     bgColor=#e6efff bordercolor="#000000">&nbsp;</TD></TR></TABLE>
<P align=justify>During the first quarter of fiscal 2010, the Company announced
plans to consolidate its distribution centres servicing retail customers at its
new retail distribution centre in Charleston, South Carolina, and to close its
leased retail distribution facility in Martinsville, Virginia and its retail
distribution facilities in Fort Payne, Alabama. In February 2009, the Company
closed its U.S. sock finishing operations in Fort Payne, Alabama, and in
February 2011 the Company announced the closure of the remaining U.S. sock
knitting operations in Fort Payne, Alabama.</P>
<P align=justify>For fiscal 2011, restructuring and acquisition-related costs
totalled $8.5 million, mainly relating to the closure of the U.S. sock knitting
operations mentioned above, including $2.9 million of employee termination
costs, other exit costs of $2.0 million related to carrying and dismantling
costs and $1.7 million of asset write-downs mainly for assets held for sale.
Other exit costs also included net pension expense of $1.2 million related to
Gold Toe Moretz's defined benefit pension plan which was
incurred primarily as a result of the Company&#146;s plan to fully fund and de-risk
the plan, and reduce future pension costs.</P>
<P align=justify>For fiscal 2010, restructuring and acquisition-related costs
totalled $8.7 million, mainly relating to the consolidation of retail
distribution facilities mentioned above, including $2.5 million of accelerated
depreciation, an asset impairment loss of $1.8 million, and $0.7 million of
employee termination costs. The Company also incurred other exit costs of $3.7
million for fiscal 2010 including inventory transfer costs, carrying and
dismantling costs, and lease termination costs. </P>
<P align=justify>For fiscal 2009, restructuring and acquisition-related costs
totalled $6.2 million which included $3.7 million for the closure of the
Company's U.S. sock finishing operations, and $3.1 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 million relating to assets
held for sale. </P>
<P align=justify>Assets held for sale of $13.1 million as at October 2, 2011
(October 3, 2010 - $3.2 million) include property, plant and equipment primarily
relating to 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 until all property, plant and equipment
related to the closures are disposed. Any gains or losses on the disposal of the
assets held for sale relating to closed facilities will also be accounted for as
restructuring charges as incurred. </P>
<P align=justify>Accounts payable and accrued liabilities include amounts
relating to restructuring activities and charges to comply with an employment
contract with a former officer of the Company, as follows: </P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD align=left bgColor=#e6efff style="border-top-style: solid; border-top-width: 3" bordercolor="#000000">Balance, October 4, 2009 </TD>
    <TD align=left width="1%"  bgColor=#e6efff style="border-top-style: solid; border-top-width: 3" bordercolor="#000000">$</TD>
    <TD align=right width="12%" bgColor=#e6efff style="border-top-style: solid; border-top-width: 3; border-right-style:none; border-right-width:medium" bordercolor="#000000">&nbsp;1,686 </TD>
    <TD align=left width="2%"  bgColor=#e6efff style="border-style:none; border-width:medium; " bordercolor="#000000">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bordercolor="#000000">Employee termination and other benefits </TD>
    <TD align=left width="1%" bordercolor="#000000" >&nbsp;</TD>
    <TD align=right width="12%" bordercolor="#000000" style="border-right-style: none; border-right-width: medium">744 </TD>
    <TD align=left width="2%" bordercolor="#000000" style="border-style: none; border-width: medium" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff bordercolor="#000000">Adjustment for employment contract </TD>
    <TD align=left width="1%"  bgColor=#e6efff bordercolor="#000000">&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff bordercolor="#000000" style="border-right-style: none; border-right-width: medium">(95</TD>
    <TD align=left width="2%"  bgColor=#e6efff bordercolor="#000000" style="border-style: none; border-width: medium">) </TD></TR>
  <TR vAlign=top>
    <TD align=left bordercolor="#000000">Foreign exchange adjustment </TD>
    <TD align=left width="1%" bordercolor="#000000" >&nbsp;</TD>
    <TD align=right width="12%" bordercolor="#000000" style="border-right-style: none; border-right-width: medium">34 </TD>
    <TD align=left width="2%" bordercolor="#000000" style="border-style: none; border-width: medium" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff bordercolor="#000000" style="border-bottom-style: solid; border-bottom-width: 1">Payments </TD>
    <TD align=left width="1%"  bgColor=#e6efff bordercolor="#000000" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff bordercolor="#000000" style="border-right-style: none; border-right-width: medium; border-bottom-style: solid; border-bottom-width: 1">(915</TD>
    <TD align=left width="2%"  bgColor=#e6efff bordercolor="#000000" style="border-style: none; border-width: medium">) </TD></TR>
  <TR vAlign=top>
    <TD align=left bordercolor="#000000" style="border-top-style: solid; border-top-width: 1">Balance, October 3, 2010 </TD>
    <TD align=left width="1%" bordercolor="#000000" style="border-top-style: solid; border-top-width: 1" >&nbsp;</TD>
    <TD align=right width="12%" bordercolor="#000000" style="border-right-style: none; border-right-width: medium; border-top-style: solid; border-top-width: 1">1,454 </TD>
    <TD align=left width="2%" bordercolor="#000000" style="border-style: none; border-width: medium" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff bordercolor="#000000">Employee termination and other benefits </TD>
    <TD align=left width="1%"  bgColor=#e6efff bordercolor="#000000">&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff bordercolor="#000000" style="border-right-style: none; border-right-width: medium">2,887 </TD>
    <TD align=left width="2%"  bgColor=#e6efff bordercolor="#000000" style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left bordercolor="#000000">Payments </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%" bordercolor="#000000"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-right-style:none; border-right-width:medium" align=right
    width="12%" bordercolor="#000000">(3,351</TD>
    <TD style="BORDER-BOTTOM: medium none #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" align=left width="2%" bordercolor="#000000"
    >) </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left
      bgColor=#e6efff bordercolor="#000000">Balance, October 2, 2011 </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
     bgColor=#e6efff bordercolor="#000000">$</TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-right-style:none; border-right-width:medium" align=right width="12%"
    bgColor=#e6efff bordercolor="#000000">&nbsp;990 </TD>
    <TD style="BORDER-BOTTOM: medium none #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" align=left width="2%"
     bgColor=#e6efff bordercolor="#000000">&nbsp;</TD></TR></TABLE>
<P align=right>GILDAN 2011 REPORT TO SHAREHOLDERS P.77</P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<!--$$/page=--><A name=page_29></A>
<table border="0" cellpadding="0" cellspacing="0" style="border-collapse: collapse" bordercolor="#111111" width="100%">
  <tr>
    <td width="50%"><font size="2">
    <IMG
src="financialsx1x1.jpg" border=0 width="96" height="21"></font></td>
    <td width="50%">
<P align=right><font size="2">NOTES TO CONSOLIDATED FINANCIAL STATEMENTS </font></P>
    </td>
  </tr>
</table>
<p><B>17. OTHER COMPREHENSIVE INCOME (LOSS):</B> <BR>
</p>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD align=left>Other comprehensive income (loss) was comprised of the
      following: </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="10%">&nbsp; </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="10%">&nbsp; </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="10%">&nbsp; </TD>
    <TD align=left width="2%" style="border-bottom-style: none; border-bottom-width: medium" >&nbsp;</TD></TR>
  <TR>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bordercolor="#000000">&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" width="1%" bordercolor="#000000"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" width="10%" bordercolor="#000000">&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" width="2%" bordercolor="#000000"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" width="1%" bordercolor="#000000"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" width="10%" bordercolor="#000000">&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" width="2%" bordercolor="#000000"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" width="1%" bordercolor="#000000"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-right-style:none; border-right-width:medium" width="10%" bordercolor="#000000">&nbsp; </TD>
    <TD style="BORDER-BOTTOM: medium none #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" width="2%" bordercolor="#000000"
    >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left style="border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000">&nbsp; </TD>
    <TD align=left width="1%" style="border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000" >&nbsp;</TD>
    <TD align=right width="10%" style="border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000">2011 </TD>
    <TD align=left width="2%" style="border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000" >&nbsp;</TD>
    <TD align=left width="1%" style="border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000" >&nbsp;</TD>
    <TD align=right width="10%" style="border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000">2010 </TD>
    <TD align=left width="2%" style="border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000" >&nbsp;</TD>
    <TD align=left width="1%" style="border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000" >&nbsp;</TD>
    <TD align=right width="10%" style="border-bottom-style: solid; border-bottom-width: 1; border-right-style:none; border-right-width:medium" bordercolor="#000000">2009 </TD>
    <TD align=left width="2%" style="border-style:none; border-width:medium; " bordercolor="#000000" >&nbsp;</TD></TR>
  <TR>
    <TD style="border-top-style: solid; border-top-width: 1" bordercolor="#000000">&nbsp; </TD>
    <TD width="1%" style="border-top-style: solid; border-top-width: 1" bordercolor="#000000" >&nbsp;</TD>
    <TD width="10%" style="border-top-style: solid; border-top-width: 1" bordercolor="#000000">&nbsp; </TD>
    <TD width="2%" style="border-top-style: solid; border-top-width: 1" bordercolor="#000000" >&nbsp;</TD>
    <TD width="1%" style="border-top-style: solid; border-top-width: 1" bordercolor="#000000" >&nbsp;</TD>
    <TD width="10%" style="border-top-style: solid; border-top-width: 1" bordercolor="#000000">&nbsp; </TD>
    <TD width="2%" style="border-top-style: solid; border-top-width: 1" bordercolor="#000000" >&nbsp;</TD>
    <TD width="1%" style="border-top-style: solid; border-top-width: 1" bordercolor="#000000" >&nbsp;</TD>
    <TD width="10%" style="border-top-style: solid; border-top-width: 1; border-right-style:none; border-right-width:medium" bordercolor="#000000">&nbsp; </TD>
    <TD width="2%" style="border-style:none; border-width:medium; " bordercolor="#000000" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff bordercolor="#000000">Net (loss) gain on derivatives designated
      as cash flow hedges </TD>
    <TD align=left width="1%"  bgColor=#e6efff bordercolor="#000000">$</TD>
    <TD align=right width="10%" bgColor=#e6efff bordercolor="#000000">&nbsp;(4,448</TD>
    <TD align=left width="2%"  bgColor=#e6efff bordercolor="#000000">) </TD>
    <TD align=left width="1%"  bgColor=#e6efff bordercolor="#000000">$</TD>
    <TD align=right width="10%" bgColor=#e6efff bordercolor="#000000">&nbsp;2,151 </TD>
    <TD align=left width="2%"  bgColor=#e6efff bordercolor="#000000">&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff bordercolor="#000000">$</TD>
    <TD align=right width="10%" bgColor=#e6efff bordercolor="#000000" style="border-right-style: none; border-right-width: medium">&nbsp;- </TD>
    <TD align=left width="2%"  bgColor=#e6efff bordercolor="#000000" style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bordercolor="#000000">Income taxes </TD>
    <TD align=left width="1%" bordercolor="#000000" >&nbsp;</TD>
    <TD align=right width="10%" bordercolor="#000000">45 </TD>
    <TD align=left width="2%" bordercolor="#000000" >&nbsp;</TD>
    <TD align=left width="1%" bordercolor="#000000" >&nbsp;</TD>
    <TD align=right width="10%" bordercolor="#000000">(22</TD>
    <TD align=left width="2%" bordercolor="#000000" >) </TD>
    <TD align=left width="1%" bordercolor="#000000" >&nbsp;</TD>
    <TD align=right width="10%" bordercolor="#000000" style="border-right-style: none; border-right-width: medium">- </TD>
    <TD align=left width="2%" bordercolor="#000000" style="border-style: none; border-width: medium" >&nbsp;</TD></TR>
  <TR>
    <TD bgColor=#e6efff bordercolor="#000000">&nbsp; </TD>
    <TD width="1%"  bgColor=#e6efff bordercolor="#000000">&nbsp;</TD>
    <TD width="10%" bgColor=#e6efff bordercolor="#000000">&nbsp; </TD>
    <TD width="2%"  bgColor=#e6efff bordercolor="#000000">&nbsp;</TD>
    <TD width="1%"  bgColor=#e6efff bordercolor="#000000">&nbsp;</TD>
    <TD width="10%" bgColor=#e6efff bordercolor="#000000">&nbsp; </TD>
    <TD width="2%"  bgColor=#e6efff bordercolor="#000000">&nbsp;</TD>
    <TD width="1%"  bgColor=#e6efff bordercolor="#000000">&nbsp;</TD>
    <TD width="10%" bgColor=#e6efff bordercolor="#000000" style="border-right-style: none; border-right-width: medium">&nbsp; </TD>
    <TD width="2%"  bgColor=#e6efff bordercolor="#000000" style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bordercolor="#000000">Amounts reclassified from other comprehensive income to net
    </TD>
    <TD align=left width="1%" bordercolor="#000000" >&nbsp;</TD>
    <TD align=left width="10%" bordercolor="#000000">&nbsp; </TD>
    <TD align=left width="2%" bordercolor="#000000" >&nbsp;</TD>
    <TD align=left width="1%" bordercolor="#000000" >&nbsp;</TD>
    <TD align=left width="10%" bordercolor="#000000">&nbsp; </TD>
    <TD align=left width="2%" bordercolor="#000000" >&nbsp;</TD>
    <TD align=left width="1%" bordercolor="#000000" >&nbsp;</TD>
    <TD align=left width="10%" bordercolor="#000000" style="border-right-style: none; border-right-width: medium">&nbsp; </TD>
    <TD align=left width="2%" bordercolor="#000000" style="border-style: none; border-width: medium" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff bordercolor="#000000">&nbsp; &nbsp; &nbsp;earnings, and included
      in: </TD>
    <TD align=left width="1%"  bgColor=#e6efff bordercolor="#000000">&nbsp;</TD>
    <TD align=left width="10%" bgColor=#e6efff bordercolor="#000000">&nbsp; </TD>
    <TD align=left width="2%"  bgColor=#e6efff bordercolor="#000000">&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff bordercolor="#000000">&nbsp;</TD>
    <TD align=left width="10%" bgColor=#e6efff bordercolor="#000000">&nbsp; </TD>
    <TD align=left width="2%"  bgColor=#e6efff bordercolor="#000000">&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff bordercolor="#000000">&nbsp;</TD>
    <TD align=left width="10%" bgColor=#e6efff bordercolor="#000000" style="border-right-style: none; border-right-width: medium">&nbsp; </TD>
    <TD align=left width="2%"  bgColor=#e6efff bordercolor="#000000" style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bordercolor="#000000">&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;Net sales </TD>
    <TD align=left width="1%" bordercolor="#000000" >&nbsp;</TD>
    <TD align=right width="10%" bordercolor="#000000">5,177 </TD>
    <TD align=left width="2%" bordercolor="#000000" >&nbsp;</TD>
    <TD align=left width="1%" bordercolor="#000000" >&nbsp;</TD>
    <TD align=right width="10%" bordercolor="#000000">(2,688</TD>
    <TD align=left width="2%" bordercolor="#000000" >) </TD>
    <TD align=left width="1%" bordercolor="#000000" >&nbsp;</TD>
    <TD align=right width="10%" bordercolor="#000000" style="border-right-style: none; border-right-width: medium">- </TD>
    <TD align=left width="2%" bordercolor="#000000" style="border-style: none; border-width: medium" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff bordercolor="#000000">&nbsp; &nbsp; &nbsp; &nbsp; &nbsp;
      &nbsp;Selling, general and administrative expenses </TD>
    <TD align=left width="1%"  bgColor=#e6efff bordercolor="#000000">&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff bordercolor="#000000">(1,045</TD>
    <TD align=left width="2%"  bgColor=#e6efff bordercolor="#000000">) </TD>
    <TD align=left width="1%"  bgColor=#e6efff bordercolor="#000000">&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff bordercolor="#000000">(701</TD>
    <TD align=left width="2%"  bgColor=#e6efff bordercolor="#000000">) </TD>
    <TD align=left width="1%"  bgColor=#e6efff bordercolor="#000000">&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff bordercolor="#000000" style="border-right-style: none; border-right-width: medium">- </TD>
    <TD align=left width="2%"  bgColor=#e6efff bordercolor="#000000" style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bordercolor="#000000">&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;Financial expense
      (income), net </TD>
    <TD align=left width="1%" bordercolor="#000000" >&nbsp;</TD>
    <TD align=right width="10%" bordercolor="#000000">1,360 </TD>
    <TD align=left width="2%" bordercolor="#000000" >&nbsp;</TD>
    <TD align=left width="1%" bordercolor="#000000" >&nbsp;</TD>
    <TD align=right width="10%" bordercolor="#000000">(489</TD>
    <TD align=left width="2%" bordercolor="#000000" >) </TD>
    <TD align=left width="1%" bordercolor="#000000" >&nbsp;</TD>
    <TD align=right width="10%" bordercolor="#000000" style="border-right-style: none; border-right-width: medium">- </TD>
    <TD align=left width="2%" bordercolor="#000000" style="border-style: none; border-width: medium" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff style="border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000">&nbsp; &nbsp; &nbsp; &nbsp; &nbsp;
      &nbsp;Income taxes </TD>
    <TD align=left width="1%"  bgColor=#e6efff style="border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000">&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff style="border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000">(55</TD>
    <TD align=left width="2%"  bgColor=#e6efff style="border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000">) </TD>
    <TD align=left width="1%"  bgColor=#e6efff style="border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000">&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff style="border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000">39 </TD>
    <TD align=left width="2%"  bgColor=#e6efff style="border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000">&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff style="border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000">&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff style="border-right-style: none; border-right-width: medium; border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000">- </TD>
    <TD align=left width="2%"  bgColor=#e6efff style="border-style: none; border-width: medium" bordercolor="#000000">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-top-style:solid; border-top-width:1" align=left bordercolor="#000000">Other
      comprehensive income (loss) </TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-top-style:solid; border-top-width:1" align=left width="1%" bordercolor="#000000"
    >$</TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-top-style:solid; border-top-width:1" align=right
      width="10%" bordercolor="#000000">&nbsp;1,034 </TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-top-style:solid; border-top-width:1" align=left width="2%" bordercolor="#000000"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-top-style:solid; border-top-width:1" align=left width="1%" bordercolor="#000000"
    >$</TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-top-style:solid; border-top-width:1" align=right
      width="10%" bordercolor="#000000">&nbsp;(1,710</TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-top-style:solid; border-top-width:1" align=left width="2%" bordercolor="#000000"
    >) </TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-top-style:solid; border-top-width:1" align=left width="1%" bordercolor="#000000"
    >$</TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-right-style:none; border-right-width:medium; border-top-style:solid; border-top-width:1" align=right
      width="10%" bordercolor="#000000">&nbsp;- </TD>
    <TD style="BORDER-BOTTOM: medium none #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" align=left width="2%" bordercolor="#000000"
    >&nbsp;</TD></TR></TABLE>
<P align=justify>As at October 2, 2011, approximately $2.3 million of net gains
presented in accumulated other comprehensive income are expected to be
reclassified to net earnings within the next twelve months. </P>
<P align=justify><B>18. EARNINGS PER SHARE:</B><BR></P>
<P align=justify>A reconciliation between basic and diluted earnings per share
is as follows:</P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD align=left style="border-top-style: solid; border-top-width: 2; border-bottom-style:solid; border-bottom-width:1" bordercolor="#000000">&nbsp; </TD>
    <TD align=left width="1%" style="border-top-style: solid; border-top-width: 2; border-bottom-style:solid; border-bottom-width:1" bordercolor="#000000" >&nbsp;</TD>
    <TD align=right width="10%" style="border-top-style: solid; border-top-width: 2; border-bottom-style:solid; border-bottom-width:1" bordercolor="#000000">2011 </TD>
    <TD align=left width="2%" style="border-top-style: solid; border-top-width: 2; border-bottom-style:solid; border-bottom-width:1" bordercolor="#000000" >&nbsp;</TD>
    <TD align=left width="1%" style="border-top-style: solid; border-top-width: 2; border-bottom-style:solid; border-bottom-width:1" bordercolor="#000000" >&nbsp;</TD>
    <TD align=right width="10%" style="border-top-style: solid; border-top-width: 2; border-bottom-style:solid; border-bottom-width:1" bordercolor="#000000">2010 </TD>
    <TD align=left width="2%" style="border-top-style: solid; border-top-width: 2; border-bottom-style:solid; border-bottom-width:1" bordercolor="#000000" >&nbsp;</TD>
    <TD align=left width="1%" style="border-top-style: solid; border-top-width: 2; border-bottom-style:solid; border-bottom-width:1" bordercolor="#000000" >&nbsp;</TD>
    <TD align=right width="10%" style="border-top-style: solid; border-top-width: 2; border-bottom-style:solid; border-bottom-width:1; border-right-style:none; border-right-width:medium" bordercolor="#000000">2009 </TD>
    <TD align=left width="2%" style="border-style:none; border-width:medium; " >&nbsp;</TD></TR>
  <TR>
    <TD style="border-top-style: solid; border-top-width: 1" bordercolor="#000000">&nbsp; </TD>
    <TD width="1%" style="border-top-style: solid; border-top-width: 1" bordercolor="#000000" >&nbsp;</TD>
    <TD width="10%" style="border-top-style: solid; border-top-width: 1" bordercolor="#000000">&nbsp; </TD>
    <TD width="2%" style="border-top-style: solid; border-top-width: 1" bordercolor="#000000" >&nbsp;</TD>
    <TD width="1%" style="border-top-style: solid; border-top-width: 1" bordercolor="#000000" >&nbsp;</TD>
    <TD width="10%" style="border-top-style: solid; border-top-width: 1" bordercolor="#000000">&nbsp; </TD>
    <TD width="2%" style="border-top-style: solid; border-top-width: 1" bordercolor="#000000" >&nbsp;</TD>
    <TD width="1%" style="border-top-style: solid; border-top-width: 1" bordercolor="#000000" >&nbsp;</TD>
    <TD width="10%" style="border-top-style: solid; border-top-width: 1; border-right-style:none; border-right-width:medium" bordercolor="#000000">&nbsp; </TD>
    <TD width="2%" style="border-style:none; border-width:medium; " >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff bordercolor="#000000">Basic earnings per share: </TD>
    <TD align=left width="1%"  bgColor=#e6efff bordercolor="#000000">&nbsp;</TD>
    <TD align=left width="10%" bgColor=#e6efff bordercolor="#000000">&nbsp; </TD>
    <TD align=left width="2%"  bgColor=#e6efff bordercolor="#000000">&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff bordercolor="#000000">&nbsp;</TD>
    <TD align=left width="10%" bgColor=#e6efff bordercolor="#000000">&nbsp; </TD>
    <TD align=left width="2%"  bgColor=#e6efff bordercolor="#000000">&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff bordercolor="#000000">&nbsp;</TD>
    <TD align=left width="10%" bgColor=#e6efff style="border-right-style: none; border-right-width: medium" bordercolor="#000000">&nbsp; </TD>
    <TD align=left width="2%"  bgColor=#e6efff style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left bordercolor="#000000">&nbsp; &nbsp;
      &nbsp;Basic weighted average number of common shares outstanding </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%" bordercolor="#000000"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="10%" bordercolor="#000000">121,526 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%" bordercolor="#000000"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%" bordercolor="#000000"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="10%" bordercolor="#000000">121,159 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%" bordercolor="#000000"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%" bordercolor="#000000"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-right-style:none; border-right-width:medium" align=right
      width="10%" bordercolor="#000000">120,811 </TD>
    <TD style="BORDER-BOTTOM: medium none #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" align=left width="2%"
    >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left
      bgColor=#e6efff bordercolor="#000000">&nbsp; &nbsp; &nbsp;Basic earnings per share </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
     bgColor=#e6efff bordercolor="#000000">$</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right width="10%"
    bgColor=#e6efff bordercolor="#000000">&nbsp;1.97 </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="2%"
     bgColor=#e6efff bordercolor="#000000">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
     bgColor=#e6efff bordercolor="#000000">$</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right width="10%"
    bgColor=#e6efff bordercolor="#000000">&nbsp;1.64 </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="2%"
     bgColor=#e6efff bordercolor="#000000">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
     bgColor=#e6efff bordercolor="#000000">$</TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-right-style:none; border-right-width:medium" align=right width="10%"
    bgColor=#e6efff bordercolor="#000000">&nbsp;0.79 </TD>
    <TD style="BORDER-BOTTOM: medium none #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD></TR>
  <TR>
    <TD bordercolor="#000000">&nbsp; </TD>
    <TD width="1%" bordercolor="#000000" >&nbsp;</TD>
    <TD width="10%" bordercolor="#000000">&nbsp; </TD>
    <TD width="2%" bordercolor="#000000" >&nbsp;</TD>
    <TD width="1%" bordercolor="#000000" >&nbsp;</TD>
    <TD width="10%" bordercolor="#000000">&nbsp; </TD>
    <TD width="2%" bordercolor="#000000" >&nbsp;</TD>
    <TD width="1%" bordercolor="#000000" >&nbsp;</TD>
    <TD width="10%" style="border-right-style: none; border-right-width: medium" bordercolor="#000000">&nbsp; </TD>
    <TD width="2%" style="border-style: none; border-width: medium" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff bordercolor="#000000">Diluted earnings per share: </TD>
    <TD align=left width="1%"  bgColor=#e6efff bordercolor="#000000">&nbsp;</TD>
    <TD align=left width="10%" bgColor=#e6efff bordercolor="#000000">&nbsp; </TD>
    <TD align=left width="2%"  bgColor=#e6efff bordercolor="#000000">&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff bordercolor="#000000">&nbsp;</TD>
    <TD align=left width="10%" bgColor=#e6efff bordercolor="#000000">&nbsp; </TD>
    <TD align=left width="2%"  bgColor=#e6efff bordercolor="#000000">&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff bordercolor="#000000">&nbsp;</TD>
    <TD align=left width="10%" bgColor=#e6efff style="border-right-style: none; border-right-width: medium" bordercolor="#000000">&nbsp; </TD>
    <TD align=left width="2%"  bgColor=#e6efff style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bordercolor="#000000">&nbsp; &nbsp; &nbsp;Basic weighted average number of common
      shares outstanding </TD>
    <TD align=left width="1%" bordercolor="#000000" >&nbsp;</TD>
    <TD align=right width="10%" bordercolor="#000000">121,526 </TD>
    <TD align=left width="2%" bordercolor="#000000" >&nbsp;</TD>
    <TD align=left width="1%" bordercolor="#000000" >&nbsp;</TD>
    <TD align=right width="10%" bordercolor="#000000">121,159 </TD>
    <TD align=left width="2%" bordercolor="#000000" >&nbsp;</TD>
    <TD align=left width="1%" bordercolor="#000000" >&nbsp;</TD>
    <TD align=right width="10%" style="border-right-style: none; border-right-width: medium" bordercolor="#000000">120,811 </TD>
    <TD align=left width="2%" style="border-style: none; border-width: medium" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      bgColor=#e6efff bordercolor="#000000">&nbsp; &nbsp; &nbsp;Plus dilutive impact of stock options
      and Treasury RSUs </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff bordercolor="#000000">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="10%"
    bgColor=#e6efff bordercolor="#000000">757 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff bordercolor="#000000">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff bordercolor="#000000">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="10%"
    bgColor=#e6efff bordercolor="#000000">821 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff bordercolor="#000000">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff bordercolor="#000000">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-right-style:none; border-right-width:medium" align=right width="10%"
    bgColor=#e6efff bordercolor="#000000">624 </TD>
    <TD style="BORDER-BOTTOM: medium none #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      bgColor=#FFFFFF bordercolor="#000000">&nbsp; &nbsp; &nbsp;Diluted weighted
    average number of common shares outstanding </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#FFFFFF bordercolor="#000000">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="10%"
    bgColor=#FFFFFF bordercolor="#000000">122,283 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#FFFFFF bordercolor="#000000">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#FFFFFF bordercolor="#000000">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="10%"
    bgColor=#FFFFFF bordercolor="#000000">121,980 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#FFFFFF bordercolor="#000000">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#FFFFFF bordercolor="#000000">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-right-style:none; border-right-width:medium" align=right width="10%"
    bgColor=#FFFFFF bordercolor="#000000">121,435 </TD>
    <TD style="BORDER-BOTTOM: medium none #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" align=left width="2%"
     bgColor=#FFFFFF>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left bordercolor="#000000" bgcolor="#E6EFFF">&nbsp; &nbsp;
      &nbsp;Diluted earnings per share </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%" bordercolor="#000000" bgcolor="#E6EFFF"
    >$</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right
      width="10%" bordercolor="#000000" bgcolor="#E6EFFF">&nbsp;1.96 </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="2%" bordercolor="#000000" bgcolor="#E6EFFF"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%" bordercolor="#000000" bgcolor="#E6EFFF"
    >$</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right
      width="10%" bordercolor="#000000" bgcolor="#E6EFFF">&nbsp;1.63 </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="2%" bordercolor="#000000" bgcolor="#E6EFFF"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%" bordercolor="#000000" bgcolor="#E6EFFF"
    >$</TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-right-style:none; border-right-width:medium" align=right
      width="10%" bordercolor="#000000" bgcolor="#E6EFFF">&nbsp;0.79 </TD>
    <TD style="BORDER-BOTTOM: medium none #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" align=left width="2%" bgcolor="#E6EFFF"
    >&nbsp;</TD></TR></TABLE>
<P align=justify>Excluded from the above calculation for the year ended October
2, 2011 are 155,848 stock options (2010 - 612,144; 2009 - 452,093) and nil
Treasury RSUs (2010 - 16,375; 2009 - 236,934) which were deemed to be
anti-dilutive.</P>
<P align=right>GILDAN 2011 REPORT TO SHAREHOLDERS P.78</P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<!--$$/page=--><A name=page_30></A>
<table border="0" cellpadding="0" cellspacing="0" style="border-collapse: collapse" bordercolor="#111111" width="100%">
  <tr>
    <td width="50%"><font size="2">
    <IMG
src="financialsx1x1.jpg" border=0 width="96" height="21"></font></td>
    <td width="50%">
<P align=right><font size="2">NOTES TO CONSOLIDATED FINANCIAL STATEMENTS </font></P>
    </td>
  </tr>
</table>
<p><B>19. SUPPLEMENTAL CASH FLOW
      DISCLOSURE:</B> <BR>
</p>
<TABLE BCLLIST style="font-size:10pt;border-color:black;border-collapse:collapse;" cellpadding="0" cellspacing="0" width="100%" border="0">
<TR><TD width="5%">(a) </TD><TD>Adjustments for non-cash items: </TD></TR>
</TABLE>
<div align="right">
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD align=left bgColor=#ffffff>&nbsp;</TD>
    <TD align=left bgColor=#ffffff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#ffffff>&nbsp;</TD>
    <TD align=left width="10%" bgColor=#ffffff>&nbsp; </TD>
    <TD align=left width="2%"  bgColor=#ffffff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#ffffff>&nbsp;</TD>
    <TD align=left width="10%" bgColor=#ffffff>&nbsp; </TD>
    <TD align=left width="2%"  bgColor=#ffffff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#ffffff>&nbsp;</TD>
    <TD align=left width="10%" bgColor=#ffffff style="border-right-style: none; border-right-width: medium">&nbsp; </TD>
    <TD align=left width="2%"  bgColor=#ffffff style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR>
    <TD style="BORDER-BOTTOM: medium none #000000; " bgColor=#ffffff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#ffffff>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" width="1%"
    bgColor=#ffffff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" width="10%"
      bgColor=#ffffff>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" width="2%"
    bgColor=#ffffff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" width="1%"
    bgColor=#ffffff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" width="10%"
      bgColor=#ffffff>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" width="2%"
    bgColor=#ffffff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" width="1%"
    bgColor=#ffffff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-right-style:none; border-right-width:medium" width="10%"
      bgColor=#ffffff>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: medium none #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" width="2%"
    bgColor=#ffffff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left style="border-style:none; border-width:medium; " bordercolor="#000000" width="5%">&nbsp;</TD>
    <TD align=left bgColor=#ffffff style="border-bottom-style: solid; border-bottom-width: 1; border-left-style:none; border-left-width:medium" bordercolor="#000000">&nbsp; </TD>
    <TD align=left width="1%"  bgColor=#ffffff style="border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000">&nbsp;</TD>
    <TD align=right width="10%" bgColor=#ffffff style="border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000">2011 </TD>
    <TD align=left width="2%"  bgColor=#ffffff style="border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000">&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#ffffff style="border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000">&nbsp;</TD>
    <TD align=right width="10%" bgColor=#ffffff style="border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000">2010 </TD>
    <TD align=left width="2%"  bgColor=#ffffff style="border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000">&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#ffffff style="border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000">&nbsp;</TD>
    <TD align=right width="10%" bgColor=#ffffff style="border-bottom-style: solid; border-bottom-width: 1; border-right-style:none; border-right-width:medium" bordercolor="#000000">2009 </TD>
    <TD align=left width="2%"  bgColor=#ffffff style="border-style:none; border-width:medium; ">&nbsp;</TD></TR>
  <TR>
    <TD style="border-style:none; border-width:medium; " bordercolor="#000000" width="5%">&nbsp;
    </TD>
    <TD bgColor=#ffffff style="border-top-style: solid; border-top-width: 1; border-left-style:none; border-left-width:medium" bordercolor="#000000">
    <p style="text-indent: -15pt; margin-left: 15pt">&nbsp; </TD>
    <TD width="1%"  bgColor=#ffffff style="border-top-style: solid; border-top-width: 1" bordercolor="#000000">&nbsp;</TD>
    <TD width="10%" bgColor=#ffffff style="border-top-style: solid; border-top-width: 1" bordercolor="#000000">&nbsp; </TD>
    <TD width="2%"  bgColor=#ffffff style="border-top-style: solid; border-top-width: 1" bordercolor="#000000">&nbsp;</TD>
    <TD width="1%"  bgColor=#ffffff style="border-top-style: solid; border-top-width: 1" bordercolor="#000000">&nbsp;</TD>
    <TD width="10%" bgColor=#ffffff style="border-top-style: solid; border-top-width: 1" bordercolor="#000000">&nbsp; </TD>
    <TD width="2%"  bgColor=#ffffff style="border-top-style: solid; border-top-width: 1" bordercolor="#000000">&nbsp;</TD>
    <TD width="1%"  bgColor=#ffffff style="border-top-style: solid; border-top-width: 1" bordercolor="#000000">&nbsp;</TD>
    <TD width="10%" bgColor=#ffffff style="border-top-style: solid; border-top-width: 1; border-right-style:none; border-right-width:medium" bordercolor="#000000">&nbsp; </TD>
    <TD width="2%"  bgColor=#ffffff style="border-style:none; border-width:medium; ">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bordercolor="#000000" width="5%" style="border-style: none; border-width: medium">&nbsp;
    </TD>
    <TD align=left bgColor=#e6efff bordercolor="#000000" style="border-left-style: none; border-left-width: medium">
    <p style="text-indent: -15pt; margin-left: 15pt">Depreciation and amortization (note 20(a))
    </TD>
    <TD align=left width="1%"  bgColor=#e6efff bordercolor="#000000">$</TD>
    <TD align=right width="10%" bgColor=#e6efff bordercolor="#000000">&nbsp;79,808 </TD>
    <TD align=left width="2%"  bgColor=#e6efff bordercolor="#000000">&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff bordercolor="#000000">$</TD>
    <TD align=right width="10%" bgColor=#e6efff bordercolor="#000000">&nbsp;66,472 </TD>
    <TD align=left width="2%"  bgColor=#e6efff bordercolor="#000000">&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff bordercolor="#000000">$</TD>
    <TD align=right width="10%" bgColor=#e6efff style="border-right-style: none; border-right-width: medium" bordercolor="#000000">&nbsp;65,407 </TD>
    <TD align=left width="2%"  bgColor=#e6efff style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bordercolor="#000000" width="5%" style="border-style: none; border-width: medium">&nbsp;
    </TD>
    <TD align=left bordercolor="#000000" style="border-left-style: none; border-left-width: medium">
    <p style="text-indent: -15pt; margin-left: 15pt">Variation of depreciation included in inventories (note
      20(a)) </TD>
    <TD align=left width="1%" bordercolor="#000000" >&nbsp;</TD>
    <TD align=right width="10%" bordercolor="#000000">(3,423</TD>
    <TD align=left width="2%" bordercolor="#000000" >) </TD>
    <TD align=left width="1%" bordercolor="#000000" >&nbsp;</TD>
    <TD align=right width="10%" bordercolor="#000000">2,725 </TD>
    <TD align=left width="2%" bordercolor="#000000" >&nbsp;</TD>
    <TD align=left width="1%" bordercolor="#000000" >&nbsp;</TD>
    <TD align=right width="10%" style="border-right-style: none; border-right-width: medium" bordercolor="#000000">(2,437</TD>
    <TD align=left width="2%" style="border-style: none; border-width: medium" >) </TD></TR>
  <TR vAlign=top>
    <TD align=left bordercolor="#000000" width="5%" style="border-style: none; border-width: medium">&nbsp;
    </TD>
    <TD align=left bgColor=#E6EFFF bordercolor="#000000" style="border-left-style: none; border-left-width: medium">
    <p style="text-indent: -15pt; margin-left: 15pt">Restructuring charges related to assets
      held for sale and property,
      plant and equipment (note 16) </TD>
    <TD align=left width="1%"  bgColor=#E6EFFF bordercolor="#000000">&nbsp;</TD>
    <TD align=right width="10%" bgColor=#E6EFFF bordercolor="#000000">2,356 </TD>
    <TD align=left width="2%"  bgColor=#E6EFFF bordercolor="#000000">&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#E6EFFF bordercolor="#000000">&nbsp;</TD>
    <TD align=right width="10%" bgColor=#E6EFFF bordercolor="#000000">4,351 </TD>
    <TD align=left width="2%"  bgColor=#E6EFFF bordercolor="#000000">&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#E6EFFF bordercolor="#000000">&nbsp;</TD>
    <TD align=right width="10%" bgColor=#E6EFFF style="border-right-style: none; border-right-width: medium" bordercolor="#000000">976 </TD>
    <TD align=left width="2%"  bgColor=#E6EFFF style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bordercolor="#000000" width="5%" style="border-style: none; border-width: medium">&nbsp;
    </TD>
    <TD align=left bgColor=#ffffff bordercolor="#000000" style="border-left-style: none; border-left-width: medium">
    <p style="text-indent: -15pt; margin-left: 15pt">Loss on disposal of long-lived assets </TD>
    <TD align=left width="1%"  bgColor=#ffffff bordercolor="#000000">&nbsp;</TD>
    <TD align=right width="10%" bgColor=#ffffff bordercolor="#000000">1,877 </TD>
    <TD align=left width="2%"  bgColor=#ffffff bordercolor="#000000">&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#ffffff bordercolor="#000000">&nbsp;</TD>
    <TD align=right width="10%" bgColor=#ffffff bordercolor="#000000">842 </TD>
    <TD align=left width="2%"  bgColor=#ffffff bordercolor="#000000">&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#ffffff bordercolor="#000000">&nbsp;</TD>
    <TD align=right width="10%" bgColor=#ffffff style="border-right-style: none; border-right-width: medium" bordercolor="#000000">561 </TD>
    <TD align=left width="2%"  bgColor=#ffffff style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bordercolor="#000000" width="5%" style="border-style: none; border-width: medium">&nbsp;
    </TD>
    <TD align=left bgColor=#E6EFFF bordercolor="#000000" style="border-left-style: none; border-left-width: medium">
    <p style="text-indent: -15pt; margin-left: 15pt">Loss on disposal of corporate asset (i) </TD>
    <TD align=left width="1%"  bgColor=#E6EFFF bordercolor="#000000">&nbsp;</TD>
    <TD align=right width="10%" bgColor=#E6EFFF bordercolor="#000000">3,693 </TD>
    <TD align=left width="2%"  bgColor=#E6EFFF bordercolor="#000000">&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#E6EFFF bordercolor="#000000">&nbsp;</TD>
    <TD align=right width="10%" bgColor=#E6EFFF bordercolor="#000000">- </TD>
    <TD align=left width="2%"  bgColor=#E6EFFF bordercolor="#000000">&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#E6EFFF bordercolor="#000000">&nbsp;</TD>
    <TD align=right width="10%" bgColor=#E6EFFF style="border-right-style: none; border-right-width: medium" bordercolor="#000000">- </TD>
    <TD align=left width="2%"  bgColor=#E6EFFF style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bordercolor="#000000" width="5%" style="border-style: none; border-width: medium">&nbsp;
    </TD>
    <TD align=left bgColor=#ffffff bordercolor="#000000" style="border-left-style: none; border-left-width: medium">
    <p style="text-indent: -15pt; margin-left: 15pt">Stock-based compensation costs </TD>
    <TD align=left width="1%"  bgColor=#ffffff bordercolor="#000000">&nbsp;</TD>
    <TD align=right width="10%" bgColor=#ffffff bordercolor="#000000">4,899 </TD>
    <TD align=left width="2%"  bgColor=#ffffff bordercolor="#000000">&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#ffffff bordercolor="#000000">&nbsp;</TD>
    <TD align=right width="10%" bgColor=#ffffff bordercolor="#000000">4,081 </TD>
    <TD align=left width="2%"  bgColor=#ffffff bordercolor="#000000">&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#ffffff bordercolor="#000000">&nbsp;</TD>
    <TD align=right width="10%" bgColor=#ffffff style="border-right-style: none; border-right-width: medium" bordercolor="#000000">3,007 </TD>
    <TD align=left width="2%"  bgColor=#ffffff style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bordercolor="#000000" width="5%" style="border-style: none; border-width: medium">&nbsp;
    </TD>
    <TD align=left bgColor=#E6EFFF bordercolor="#000000" style="border-left-style: none; border-left-width: medium">
    <p style="text-indent: -15pt; margin-left: 15pt">Future income taxes </TD>
    <TD align=left width="1%"  bgColor=#E6EFFF bordercolor="#000000">&nbsp;</TD>
    <TD align=right width="10%" bgColor=#E6EFFF bordercolor="#000000">(19,118</TD>
    <TD align=left width="2%"  bgColor=#E6EFFF bordercolor="#000000">) </TD>
    <TD align=left width="1%"  bgColor=#E6EFFF bordercolor="#000000">&nbsp;</TD>
    <TD align=right width="10%" bgColor=#E6EFFF bordercolor="#000000">(11,427</TD>
    <TD align=left width="2%"  bgColor=#E6EFFF bordercolor="#000000">) </TD>
    <TD align=left width="1%"  bgColor=#E6EFFF bordercolor="#000000">&nbsp;</TD>
    <TD align=right width="10%" bgColor=#E6EFFF style="border-right-style: none; border-right-width: medium" bordercolor="#000000">(2,434</TD>
    <TD align=left width="2%"  bgColor=#E6EFFF style="border-style: none; border-width: medium">) </TD></TR>
  <TR vAlign=top>
    <TD align=left bordercolor="#000000" width="5%" style="border-style: none; border-width: medium">&nbsp;
    </TD>
    <TD align=left bgColor=#ffffff bordercolor="#000000" style="border-left-style: none; border-left-width: medium">
    <p style="text-indent: -15pt; margin-left: 15pt">Non-controlling interest in consolidated
      joint venture </TD>
    <TD align=left width="1%"  bgColor=#ffffff bordercolor="#000000">&nbsp;</TD>
    <TD align=right width="10%" bgColor=#ffffff bordercolor="#000000">504 </TD>
    <TD align=left width="2%"  bgColor=#ffffff bordercolor="#000000">&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#ffffff bordercolor="#000000">&nbsp;</TD>
    <TD align=right width="10%" bgColor=#ffffff bordercolor="#000000">3,786 </TD>
    <TD align=left width="2%"  bgColor=#ffffff bordercolor="#000000">&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#ffffff bordercolor="#000000">&nbsp;</TD>
    <TD align=right width="10%" bgColor=#ffffff style="border-right-style: none; border-right-width: medium" bordercolor="#000000">110 </TD>
    <TD align=left width="2%"  bgColor=#ffffff style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bordercolor="#000000" width="5%" style="border-style: none; border-width: medium">&nbsp;
    </TD>
    <TD align=left bgColor=#E6EFFF bordercolor="#000000" style="border-left-style: none; border-left-width: medium">
    <p style="text-indent: -15pt; margin-left: 15pt">Unrealized net loss (gain) on foreign
      exchange and financial derivatives
      not designated as cash flow hedges </TD>
    <TD align=left width="1%"  bgColor=#E6EFFF bordercolor="#000000">&nbsp;</TD>
    <TD align=right width="10%" bgColor=#E6EFFF bordercolor="#000000">255 </TD>
    <TD align=left width="2%"  bgColor=#E6EFFF bordercolor="#000000">&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#E6EFFF bordercolor="#000000">&nbsp;</TD>
    <TD align=right width="10%" bgColor=#E6EFFF bordercolor="#000000">846 </TD>
    <TD align=left width="2%"  bgColor=#E6EFFF bordercolor="#000000">&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#E6EFFF bordercolor="#000000">&nbsp;</TD>
    <TD align=right width="10%" bgColor=#E6EFFF style="border-right-style: none; border-right-width: medium" bordercolor="#000000">(1,012</TD>
    <TD align=left width="2%"  bgColor=#E6EFFF style="border-style: none; border-width: medium">) </TD></TR>
  <TR vAlign=top>
    <TD align=left style="border-style:none; border-width:medium; " bordercolor="#000000" width="5%">&nbsp;
    </TD>
    <TD align=left bgColor=#ffffff style="border-bottom-style: solid; border-bottom-width: 1; border-left-style:none; border-left-width:medium" bordercolor="#000000">
    <p style="text-indent: -15pt; margin-left: 15pt">Adjustments to financial
    derivatives included in other comprehensive income, net of amounts
    reclassified&nbsp;to net
      earnings </TD>
    <TD align=left width="1%"  bgColor=#ffffff style="border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000">&nbsp;</TD>
    <TD align=right width="10%" bgColor=#ffffff style="border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000">- </TD>
    <TD align=left width="2%"  bgColor=#ffffff style="border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000">&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#ffffff style="border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000">&nbsp;</TD>
    <TD align=right width="10%" bgColor=#ffffff style="border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000">684 </TD>
    <TD align=left width="2%"  bgColor=#ffffff style="border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000">&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#ffffff style="border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000">&nbsp;</TD>
    <TD align=right width="10%" bgColor=#ffffff style="border-right-style: none; border-right-width: medium; border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000">- </TD>
    <TD align=left width="2%"  bgColor=#ffffff style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: medium none #000000; ; border-top-style:none; border-top-width:medium; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium" align=left bordercolor="#000000" width="5%">&nbsp;
    </TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-top-style:solid; border-top-width:1; border-left-style:none; border-left-width:medium" align=left
      bgColor=#E6EFFF bordercolor="#000000">
    <p style="text-indent: -15pt; margin-left: 15pt">&nbsp; </TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-top-style:solid; border-top-width:1" align=left width="1%"
     bgColor=#E6EFFF bordercolor="#000000">$</TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-top-style:solid; border-top-width:1" align=right width="10%"
    bgColor=#E6EFFF bordercolor="#000000">&nbsp;70,851 </TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-top-style:solid; border-top-width:1" align=left width="2%"
     bgColor=#E6EFFF bordercolor="#000000">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-top-style:solid; border-top-width:1" align=left width="1%"
     bgColor=#E6EFFF bordercolor="#000000">$</TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-top-style:solid; border-top-width:1" align=right width="10%"
    bgColor=#E6EFFF bordercolor="#000000">&nbsp;72,360 </TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-top-style:solid; border-top-width:1" align=left width="2%"
     bgColor=#E6EFFF bordercolor="#000000">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-top-style:solid; border-top-width:1" align=left width="1%"
     bgColor=#E6EFFF bordercolor="#000000">$</TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-right-style:none; border-right-width:medium; border-top-style:solid; border-top-width:1" align=right width="10%"
    bgColor=#E6EFFF bordercolor="#000000">&nbsp;64,178 </TD>
    <TD style="BORDER-BOTTOM: medium none #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" align=left width="2%"
     bgColor=#E6EFFF>&nbsp;</TD></TR></TABLE>
</div>
<BR>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0 BCLLIST>

  <TR>
    <TD vAlign=top width="5%">&nbsp;</TD>
    <TD vAlign=top width="5%">(i) </TD>
    <TD>
      <P align=justify>During fiscal 2011 the Company purchased a corporate
      aircraft pursuant to an early purchase option under its operating lease
      for approximately $16.9 million. Immediately following the purchase, the
      Company sold the corporate aircraft to an unrelated third party for
      proceeds of $13.2 million, resulting in a loss of $3.7 million which is
      included in selling, general and administrative expenses. The Company has
      leased a new corporate aircraft which is being accounted for as an
      operating lease.</P></TD></TR></TABLE><BR>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD align=left width="5%" style="border-right-style: none; border-right-width: medium" >(b) </TD>
    <TD style="BORDER-BOTTOM: medium none #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" align=left colspan="11">Cash
      paid during the period for:
    </TD>
    </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#ffffff width="5%" >&nbsp;</TD>
    <TD align=left style="border-bottom-style: solid; border-bottom-width: 2; border-top-style:none; border-top-width:medium" bordercolor="#000000">&nbsp;</TD>
    <TD align=left style="border-bottom-style: solid; border-bottom-width: 2; border-top-style:none; border-top-width:medium" width="2%" bordercolor="#000000" >&nbsp;</TD>
    <TD align=left style="border-bottom-style: solid; border-bottom-width: 2; border-top-style:none; border-top-width:medium" width="1%" bordercolor="#000000" >&nbsp;</TD>
    <TD align=right style="border-bottom-style: solid; border-bottom-width: 2; border-top-style:none; border-top-width:medium" bordercolor="#000000">&nbsp;</TD>
    <TD align=left style="border-bottom-style: solid; border-bottom-width: 2; border-top-style:none; border-top-width:medium" width="2%" bordercolor="#000000" >&nbsp;</TD>
    <TD align=left style="border-bottom-style: solid; border-bottom-width: 2; border-top-style:none; border-top-width:medium" width="1%" bordercolor="#000000" >&nbsp;</TD>
    <TD align=right style="border-bottom-style: solid; border-bottom-width: 2; border-top-style:none; border-top-width:medium" bordercolor="#000000">&nbsp;</TD>
    <TD align=left style="border-bottom-style: solid; border-bottom-width: 2; border-top-style:none; border-top-width:medium" width="2%" bordercolor="#000000" >&nbsp;</TD>
    <TD align=left style="border-bottom-style: solid; border-bottom-width: 2; border-top-style:none; border-top-width:medium" width="1%" bordercolor="#000000" >&nbsp;</TD>
    <TD align=right style="border-bottom-style: solid; border-bottom-width: 2; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" bordercolor="#000000">&nbsp;</TD>
    <TD align=left style="border-style:none; border-width:medium; " width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#ffffff width="5%" >&nbsp; </TD>
    <TD align=left style="border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000">&nbsp; </TD>
    <TD align=left style="border-bottom-style: solid; border-bottom-width: 1" width="2%" bordercolor="#000000" >&nbsp;</TD>
    <TD align=left style="border-bottom-style: solid; border-bottom-width: 1" width="1%" bordercolor="#000000" >&nbsp;</TD>
    <TD align=right style="border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000" width="10%">2011 </TD>
    <TD align=left style="border-bottom-style: solid; border-bottom-width: 1" width="2%" bordercolor="#000000" >&nbsp;</TD>
    <TD align=left style="border-bottom-style: solid; border-bottom-width: 1" width="1%" bordercolor="#000000" >&nbsp;</TD>
    <TD align=right style="border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000" width="10%">2010 </TD>
    <TD align=left style="border-bottom-style: solid; border-bottom-width: 1" width="2%" bordercolor="#000000" >&nbsp;</TD>
    <TD align=left style="border-bottom-style: solid; border-bottom-width: 1" width="1%" bordercolor="#000000" >&nbsp;</TD>
    <TD align=right style="border-bottom-style: solid; border-bottom-width: 1; border-right-style:none; border-right-width:medium" bordercolor="#000000" width="10%">2009 </TD>
    <TD align=left style="border-style:none; border-width:medium; " width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#ffffff width="5%" >&nbsp; </TD>
    <TD align=left bgColor=#e6efff style="border-top-style: solid; border-top-width: 1" bordercolor="#000000">Interest </TD>
    <TD align=left  bgColor=#e6efff style="border-top-style: solid; border-top-width: 1" width="2%" bordercolor="#000000">&nbsp;</TD>
    <TD align=left  bgColor=#e6efff style="border-top-style: solid; border-top-width: 1" width="1%" bordercolor="#000000">$</TD>
    <TD align=right bgColor=#e6efff style="border-top-style: solid; border-top-width: 1" bordercolor="#000000" width="10%">&nbsp;3,033 </TD>
    <TD align=left  bgColor=#e6efff style="border-top-style: solid; border-top-width: 1" width="2%" bordercolor="#000000">&nbsp;</TD>
    <TD align=left  bgColor=#e6efff style="border-top-style: solid; border-top-width: 1" width="1%" bordercolor="#000000">$</TD>
    <TD align=right bgColor=#e6efff style="border-top-style: solid; border-top-width: 1" bordercolor="#000000" width="10%">&nbsp;638 </TD>
    <TD align=left  bgColor=#e6efff style="border-top-style: solid; border-top-width: 1" width="2%" bordercolor="#000000">&nbsp;</TD>
    <TD align=left  bgColor=#e6efff style="border-top-style: solid; border-top-width: 1" width="1%" bordercolor="#000000">$</TD>
    <TD align=right bgColor=#e6efff style="border-right-style: none; border-right-width: medium" bordercolor="#000000" width="10%">&nbsp;2,028 </TD>
    <TD align=left  bgColor=#e6efff width="2%" style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#ffffff width="5%" >&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left bordercolor="#000000">Income
      taxes </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="2%" bordercolor="#000000"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%" bordercolor="#000000"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right bordercolor="#000000" width="10%">8,620
    </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="2%" bordercolor="#000000"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%" bordercolor="#000000"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right bordercolor="#000000" width="10%">16,443 </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="2%" bordercolor="#000000"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%" bordercolor="#000000"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-right-style:none; border-right-width:medium" align=right bordercolor="#000000" width="10%">30,419 </TD>
    <TD style="BORDER-BOTTOM: medium none #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" align=left width="2%"
    >&nbsp;</TD></TR></TABLE>
<P align=right>GILDAN 2011 REPORT TO SHAREHOLDERS P.79</P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<!--$$/page=-->
<table border="0" cellpadding="0" cellspacing="0" style="border-collapse: collapse" bordercolor="#111111" width="100%">
  <tr>
    <td width="50%"><font size="2">
    <IMG
src="financialsx1x1.jpg" border=0 width="96" height="21"></font></td>
    <td width="50%">
<P align=right><font size="2">NOTES TO CONSOLIDATED FINANCIAL STATEMENTS </font></P>
    </td>
  </tr>
</table>
<p><B>19. SUPPLEMENTAL CASH FLOW DISCLOSURE (continued):</B> </p>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0 BCLLIST>

  <TR>
    <TD vAlign=top width="5%">(c) </TD>
    <TD>
      <P align=justify>Non-cash transactions:</P></TD></TR></TABLE>
<div align="right">
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="95%" border=0>

  <TR vAlign=top>
    <TD align=left bordercolor="#000000">&nbsp;</TD>
    <TD align=left width="1%" bordercolor="#000000" >&nbsp;</TD>
    <TD align=left width="10%" bordercolor="#000000">&nbsp; </TD>
    <TD align=left width="2%" bordercolor="#000000" >&nbsp;</TD>
    <TD align=left width="1%" bordercolor="#000000" >&nbsp;</TD>
    <TD align=left width="10%" bordercolor="#000000">&nbsp; </TD>
    <TD align=left width="2%" bordercolor="#000000" >&nbsp;</TD>
    <TD align=left width="1%" bordercolor="#000000" >&nbsp;</TD>
    <TD align=left width="10%" bordercolor="#000000" style="border-right-style: none; border-right-width: medium">&nbsp; </TD>
    <TD align=left width="2%" bordercolor="#000000" style="border-style: none; border-width: medium" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left style="border-top-style: solid; border-top-width: 2; border-bottom-style:solid; border-bottom-width:1" bordercolor="#000000">&nbsp; </TD>
    <TD align=left width="1%" style="border-top-style: solid; border-top-width: 2; border-bottom-style:solid; border-bottom-width:1" bordercolor="#000000" >&nbsp;</TD>
    <TD align=right width="10%" style="border-top-style: solid; border-top-width: 2; border-bottom-style:solid; border-bottom-width:1" bordercolor="#000000">2011 </TD>
    <TD align=left width="2%" style="border-top-style: solid; border-top-width: 2; border-bottom-style:solid; border-bottom-width:1" bordercolor="#000000" >&nbsp;</TD>
    <TD align=left width="1%" style="border-top-style: solid; border-top-width: 2; border-bottom-style:solid; border-bottom-width:1" bordercolor="#000000" >&nbsp;</TD>
    <TD align=right width="10%" style="border-top-style: solid; border-top-width: 2; border-bottom-style:solid; border-bottom-width:1" bordercolor="#000000">2010 </TD>
    <TD align=left width="2%" style="border-top-style: solid; border-top-width: 2; border-bottom-style:solid; border-bottom-width:1" bordercolor="#000000" >&nbsp;</TD>
    <TD align=left width="1%" style="border-top-style: solid; border-top-width: 2; border-bottom-style:solid; border-bottom-width:1" bordercolor="#000000" >&nbsp;</TD>
    <TD align=right width="10%" style="border-top-style: solid; border-top-width: 2; border-bottom-style:solid; border-bottom-width:1; border-right-style:none; border-right-width:medium" bordercolor="#000000">2009 </TD>
    <TD align=left width="2%" style="border-style:none; border-width:medium; " bordercolor="#000000" >&nbsp;</TD></TR>
  <TR>
    <TD style="border-top-style: solid; border-top-width: 1" bordercolor="#000000">&nbsp; </TD>
    <TD width="1%" style="border-top-style: solid; border-top-width: 1" bordercolor="#000000" >&nbsp;</TD>
    <TD width="10%" style="border-top-style: solid; border-top-width: 1" bordercolor="#000000">&nbsp; </TD>
    <TD width="2%" style="border-top-style: solid; border-top-width: 1" bordercolor="#000000" >&nbsp;</TD>
    <TD width="1%" style="border-top-style: solid; border-top-width: 1" bordercolor="#000000" >&nbsp;</TD>
    <TD width="10%" style="border-top-style: solid; border-top-width: 1" bordercolor="#000000">&nbsp; </TD>
    <TD width="2%" style="border-top-style: solid; border-top-width: 1" bordercolor="#000000" >&nbsp;</TD>
    <TD width="1%" style="border-top-style: solid; border-top-width: 1" bordercolor="#000000" >&nbsp;</TD>
    <TD width="10%" style="border-top-style: solid; border-top-width: 1; border-right-style:none; border-right-width:medium" bordercolor="#000000">&nbsp; </TD>
    <TD width="2%" style="border-style:none; border-width:medium; " bordercolor="#000000" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgcolor="#E6EFFF" bordercolor="#000000">
    <p style="text-indent: -15pt; margin-left: 15pt">Balance of non-cash transactions: </TD>
    <TD align=left width="1%" bgcolor="#E6EFFF" bordercolor="#000000" valign="bottom" >&nbsp;</TD>
    <TD align=left width="10%" bgcolor="#E6EFFF" bordercolor="#000000" valign="bottom">&nbsp; </TD>
    <TD align=left width="2%" bgcolor="#E6EFFF" bordercolor="#000000" valign="bottom" >&nbsp;</TD>
    <TD align=left width="1%" bgcolor="#E6EFFF" bordercolor="#000000" valign="bottom" >&nbsp;</TD>
    <TD align=left width="10%" bgcolor="#E6EFFF" bordercolor="#000000" valign="bottom">&nbsp; </TD>
    <TD align=left width="2%" bgcolor="#E6EFFF" bordercolor="#000000" valign="bottom" >&nbsp;</TD>
    <TD align=left width="1%" bgcolor="#E6EFFF" bordercolor="#000000" valign="bottom" >&nbsp;</TD>
    <TD align=left width="10%" bgcolor="#E6EFFF" bordercolor="#000000" style="border-right-style: none; border-right-width: medium" valign="bottom">&nbsp; </TD>
    <TD align=left width="2%" bgcolor="#E6EFFF" bordercolor="#000000" style="border-style: none; border-width: medium" valign="bottom" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bordercolor="#000000">
    <p style="text-indent: -15pt; margin-left: 30pt">Additions to property, plant and equipment
    included in accounts payable and accrued liabilities </TD>
    <TD align=left width="1%" bordercolor="#000000" valign="bottom" >$</TD>
    <TD align=right width="10%" bordercolor="#000000" valign="bottom">&nbsp;5,026 </TD>
    <TD align=left width="2%" bordercolor="#000000" valign="bottom" >&nbsp;</TD>
    <TD align=left width="1%" bordercolor="#000000" valign="bottom" >$</TD>
    <TD align=right width="10%" bordercolor="#000000" valign="bottom">&nbsp;2,099 </TD>
    <TD align=left width="2%" bordercolor="#000000" valign="bottom" >&nbsp;</TD>
    <TD align=left width="1%" bordercolor="#000000" valign="bottom" >$</TD>
    <TD align=right width="10%" bordercolor="#000000" style="border-right-style: none; border-right-width: medium" valign="bottom">&nbsp;627 </TD>
    <TD align=left width="2%" bordercolor="#000000" style="border-style: none; border-width: medium" valign="bottom" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bordercolor="#000000" bgcolor="#E6EFFF">
    <p style="text-indent: -15pt; margin-left: 30pt">Proceeds on disposal of long-lived assets included&nbsp;in other assets
    </TD>
    <TD align=left width="1%" bordercolor="#000000" bgcolor="#E6EFFF" valign="bottom" >&nbsp;</TD>
    <TD align=right width="10%" bordercolor="#000000" bgcolor="#E6EFFF" valign="bottom">- </TD>
    <TD align=left width="2%" bordercolor="#000000" bgcolor="#E6EFFF" valign="bottom" >&nbsp;</TD>
    <TD align=left width="1%" bordercolor="#000000" bgcolor="#E6EFFF" valign="bottom" >&nbsp;</TD>
    <TD align=right width="10%" bordercolor="#000000" bgcolor="#E6EFFF" valign="bottom">427 </TD>
    <TD align=left width="2%" bordercolor="#000000" bgcolor="#E6EFFF" valign="bottom" >&nbsp;</TD>
    <TD align=left width="1%" bordercolor="#000000" bgcolor="#E6EFFF" valign="bottom" >&nbsp;</TD>
    <TD align=right width="10%" bordercolor="#000000" style="border-right-style: none; border-right-width: medium" bgcolor="#E6EFFF" valign="bottom">808 </TD>
    <TD align=left width="2%" bordercolor="#000000" style="border-style: none; border-width: medium" bgcolor="#E6EFFF" valign="bottom" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bordercolor="#000000" style="border-bottom-style: solid; border-bottom-width: 1">
    <p style="text-indent: -15pt; margin-left: 30pt">Proceeds on disposal of long-lived assets included&nbsp;in other
      current assets </TD>
    <TD align=left width="1%" bordercolor="#000000" valign="bottom" style="border-bottom-style: solid; border-bottom-width: 1" >&nbsp;</TD>
    <TD align=right width="10%" bordercolor="#000000" valign="bottom" style="border-bottom-style: solid; border-bottom-width: 1">- </TD>
    <TD align=left width="2%" bordercolor="#000000" valign="bottom" style="border-bottom-style: solid; border-bottom-width: 1" >&nbsp;</TD>
    <TD align=left width="1%" bordercolor="#000000" valign="bottom" style="border-bottom-style: solid; border-bottom-width: 1" >&nbsp;</TD>
    <TD align=right width="10%" bordercolor="#000000" valign="bottom" style="border-bottom-style: solid; border-bottom-width: 1">- </TD>
    <TD align=left width="2%" bordercolor="#000000" valign="bottom" style="border-bottom-style: solid; border-bottom-width: 1" >&nbsp;</TD>
    <TD align=left width="1%" bordercolor="#000000" valign="bottom" style="border-bottom-style: solid; border-bottom-width: 1" >&nbsp;</TD>
    <TD align=right width="10%" bordercolor="#000000" style="border-right-style: none; border-right-width: medium; border-bottom-style:solid; border-bottom-width:1" valign="bottom">456 </TD>
    <TD align=left width="2%" bordercolor="#000000" style="border-style: none; border-width: medium" valign="bottom" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bordercolor="#000000" bgcolor="#E6EFFF" style="border-top-style: solid; border-top-width: 1">
    <p style="text-indent: -15pt; margin-left: 15pt">Treasury RSUs issued in lieu of cash dividends </TD>
    <TD align=left width="1%" bordercolor="#000000" bgcolor="#E6EFFF" valign="bottom" style="border-top-style: solid; border-top-width: 1" >$</TD>
    <TD align=right width="10%" bordercolor="#000000" bgcolor="#E6EFFF" valign="bottom" style="border-top-style: solid; border-top-width: 1">&nbsp;191 </TD>
    <TD align=left width="2%" bordercolor="#000000" bgcolor="#E6EFFF" valign="bottom" style="border-top-style: solid; border-top-width: 1" >&nbsp;</TD>
    <TD align=left width="1%" bordercolor="#000000" bgcolor="#E6EFFF" valign="bottom" style="border-top-style: solid; border-top-width: 1" >$</TD>
    <TD align=right width="10%" bordercolor="#000000" bgcolor="#E6EFFF" valign="bottom" style="border-top-style: solid; border-top-width: 1">&nbsp;- </TD>
    <TD align=left width="2%" bordercolor="#000000" bgcolor="#E6EFFF" valign="bottom" style="border-top-style: solid; border-top-width: 1" >&nbsp;</TD>
    <TD align=left width="1%" bordercolor="#000000" bgcolor="#E6EFFF" valign="bottom" style="border-top-style: solid; border-top-width: 1" >$</TD>
    <TD align=right width="10%" bordercolor="#000000" style="border-right-style: none; border-right-width: medium; border-top-style:solid; border-top-width:1" bgcolor="#E6EFFF" valign="bottom">&nbsp;- </TD>
    <TD align=left width="2%" bordercolor="#000000" style="border-style: none; border-width: medium" bgcolor="#E6EFFF" valign="bottom" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bordercolor="#000000">
    <p style="text-indent: -15pt; margin-left: 15pt">Non-cash ascribed value credited to share capital from
    shares issued pursuant to vesting of Treasury RSUs and exercise of
      stock options </TD>
    <TD align=left width="1%" bordercolor="#000000" valign="bottom" >&nbsp;</TD>
    <TD align=right width="10%" bordercolor="#000000" valign="bottom">807 </TD>
    <TD align=left width="2%" bordercolor="#000000" valign="bottom" >&nbsp;</TD>
    <TD align=left width="1%" bordercolor="#000000" valign="bottom" >&nbsp;</TD>
    <TD align=right width="10%" bordercolor="#000000" valign="bottom">2,125 </TD>
    <TD align=left width="2%" bordercolor="#000000" valign="bottom" >&nbsp;</TD>
    <TD align=left width="1%" bordercolor="#000000" valign="bottom" >&nbsp;</TD>
    <TD align=right width="10%" bordercolor="#000000" style="border-right-style: none; border-right-width: medium" valign="bottom">2,759 </TD>
    <TD align=left width="2%" bordercolor="#000000" style="border-style: none; border-width: medium" valign="bottom" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 2px solid"
      align=left bordercolor="#000000" bgcolor="#E6EFFF">
    <p style="text-indent: -15pt; margin-left: 15pt">Shares issued as consideration for lease termination costs&nbsp;incurred as
      part of the acquisition of Gold Toe Moretz </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%" bordercolor="#000000" bgcolor="#E6EFFF" valign="bottom"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right width="10%" bordercolor="#000000" bgcolor="#E6EFFF" valign="bottom">1,065
    </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="2%" bordercolor="#000000" bgcolor="#E6EFFF" valign="bottom"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%" bordercolor="#000000" bgcolor="#E6EFFF" valign="bottom"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right width="10%" bordercolor="#000000" bgcolor="#E6EFFF" valign="bottom">- </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="2%" bordercolor="#000000" bgcolor="#E6EFFF" valign="bottom"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%" bordercolor="#000000" bgcolor="#E6EFFF" valign="bottom"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-right-style:none; border-right-width:medium" align=right width="10%" bordercolor="#000000" bgcolor="#E6EFFF" valign="bottom">- </TD>
    <TD style="BORDER-BOTTOM: medium none #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" align=left width="2%" bordercolor="#000000" bgcolor="#E6EFFF" valign="bottom"
    >&nbsp;</TD></TR></TABLE>
</div>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0 BCLLIST>

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

  <TR>
    <TD vAlign=top width="5%">(d) </TD>
    <TD>
      <P align=justify>In connection with the acquisition of V.I. Prewett &amp;
      Son Inc. in fiscal 2008, the purchase agreement provided for an additional
      purchase consideration of up to $10.0 million contingent on specified
      future events. This amount was initially paid into escrow by the Company,
      but events occurring subsequent to the acquisition resulted in a reduction
      of the contingent purchase price and escrow deposit balance to $5.8
      million. During fiscal 2011, the contingent purchase consideration was
      settled and paid to the selling shareholders in the amount of $5.8 million
      from the escrow deposit. The additional purchase price consideration paid
      by the Company has been accounted for as an increase in goodwill and a
      corresponding decrease in other assets.</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top width="5%">(e) </TD>
    <TD>
      <P align=justify>Cash and cash equivalents consist
of:</P></TD></TR></TABLE><BR>
<div align="right">
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="95%" border=0>

  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-top-style:solid; border-top-width:2" align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-top-style:solid; border-top-width:2" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-top-style:solid; border-top-width:2" align=right width="10%">2011
    </TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-top-style:solid; border-top-width:2" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-top-style:solid; border-top-width:2" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-top-style:solid; border-top-width:2" align=right width="10%">2010
    </TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-top-style:solid; border-top-width:2" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-top-style:solid; border-top-width:2" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-top-style:solid; border-top-width:2; border-right-style:none; border-right-width:medium" align=right width="10%">2009
    </TD>
    <TD style="BORDER-BOTTOM: medium none #000000; ; border-top-style:none; border-top-width:medium; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium" align=left width="2%"
    >&nbsp;</TD></TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="10%">&nbsp; </TD>
    <TD width="2%" >&nbsp;</TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="10%">&nbsp; </TD>
    <TD width="2%" >&nbsp;</TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="10%" style="border-right-style: none; border-right-width: medium">&nbsp; </TD>
    <TD width="2%" style="border-style: none; border-width: medium" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Cash balances with banks </TD>
    <TD align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD align=right width="10%" bgColor=#e6efff>&nbsp;87,251 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD align=right width="10%" bgColor=#e6efff>&nbsp;196,279 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD align=right width="10%" bgColor=#e6efff style="border-right-style: none; border-right-width: medium">&nbsp;92,608 </TD>
    <TD align=left width="2%"  bgColor=#e6efff style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>Short-term investments, bearing interest at rates </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="10%">&nbsp; </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="10%">&nbsp; </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="10%" style="border-right-style: none; border-right-width: medium">&nbsp; </TD>
    <TD align=left width="2%" style="border-style: none; border-width: medium" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      bgColor=#E6EFFF>&nbsp; &nbsp;between 0.12% and 1.05% </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#E6EFFF>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="10%"
    bgColor=#E6EFFF>1,551 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#E6EFFF>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#E6EFFF>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="10%"
    bgColor=#E6EFFF>62,163 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#E6EFFF>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#E6EFFF>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-right-style:none; border-right-width:medium" align=right width="10%"
    bgColor=#E6EFFF>7,124 </TD>
    <TD style="BORDER-BOTTOM: medium none #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" align=left width="2%"
     bgColor=#E6EFFF>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left
      bgColor=#ffffff>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
     bgColor=#ffffff>$</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right width="10%"
    bgColor=#ffffff>&nbsp;88,802 </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="2%"
     bgColor=#ffffff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
     bgColor=#ffffff>$</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right width="10%"
    bgColor=#ffffff>&nbsp;258,442 </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="2%"
     bgColor=#ffffff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
     bgColor=#ffffff>$</TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-right-style:none; border-right-width:medium" align=right width="10%"
    bgColor=#ffffff>&nbsp;99,732 </TD>
    <TD style="BORDER-BOTTOM: medium none #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" align=left width="2%"
     bgColor=#ffffff>&nbsp;</TD></TR></TABLE>
</div>
<P align=right>GILDAN 2011 REPORT TO SHAREHOLDERS P.80</P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<!--$$/page=-->
<table border="0" cellpadding="0" cellspacing="0" style="border-collapse: collapse" bordercolor="#111111" width="100%">
  <tr>
    <td width="50%"><font size="2">
    <IMG
src="financialsx1x1.jpg" border=0 width="96" height="21"></font></td>
    <td width="50%">
<P align=right><font size="2">NOTES TO CONSOLIDATED FINANCIAL STATEMENTS </font></P>
    </td>
  </tr>
</table>
<P align=justify><B>20. OTHER INFORMATION:</B><BR></P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0 BCLLIST>

  <TR>
    <TD vAlign=top width="5%">(a) </TD>
    <TD>
      <P align=justify>Depreciation and amortization (excluding accelerated
      depreciation, which is included in restructuring and acquisition-related
      costs):</P></TD></TR></TABLE><BR>
<DIV align=right>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="95%" border=0>

  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-top-style:solid; border-top-width:2" align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-top-style:solid; border-top-width:2" align=left
    width="1%" valign="bottom">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-top-style:solid; border-top-width:2" align=right width="10%" valign="bottom">2011
    </TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-top-style:solid; border-top-width:2" align=left
    width="2%" valign="bottom">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-top-style:solid; border-top-width:2" align=left
    width="1%" valign="bottom">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-top-style:solid; border-top-width:2" align=right width="10%" valign="bottom">2010
    </TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-top-style:solid; border-top-width:2" align=left
    width="2%" valign="bottom">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-top-style:solid; border-top-width:2" align=left
    width="1%" valign="bottom">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-top-style:solid; border-top-width:2; border-right-style:none; border-right-width:medium" align=right width="10%" valign="bottom">2009
    </TD>
    <TD style="BORDER-BOTTOM: medium none #000000; ; border-top-style:none; border-top-width:medium; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium" align=left
    width="2%" valign="bottom">&nbsp;</TD></TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD width="1%" valign="bottom">&nbsp;</TD>
    <TD width="10%" valign="bottom">&nbsp; </TD>
    <TD width="2%" valign="bottom">&nbsp;</TD>
    <TD width="1%" valign="bottom">&nbsp;</TD>
    <TD width="10%" valign="bottom">&nbsp; </TD>
    <TD width="2%" valign="bottom">&nbsp;</TD>
    <TD width="1%" valign="bottom">&nbsp;</TD>
    <TD width="10%" valign="bottom" style="border-right-style: none; border-right-width: medium">&nbsp; </TD>
    <TD width="2%" valign="bottom" style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgcolor="#E6EFFF">
    <p style="text-indent: -15pt; margin-left: 15pt">Depreciation and amortization of property, plant and equipment and intangible assets </TD>
    <TD align=left width="1%" bgcolor="#E6EFFF" valign="bottom">$</TD>
    <TD align=right width="10%" bgcolor="#E6EFFF" valign="bottom">&nbsp;79,808 </TD>
    <TD align=left width="2%" bgcolor="#E6EFFF" valign="bottom">&nbsp;</TD>
    <TD align=left width="1%" bgcolor="#E6EFFF" valign="bottom">$</TD>
    <TD align=right width="10%" bgcolor="#E6EFFF" valign="bottom">&nbsp;66,472 </TD>
    <TD align=left width="2%" bgcolor="#E6EFFF" valign="bottom">&nbsp;</TD>
    <TD align=left width="1%" bgcolor="#E6EFFF" valign="bottom">$</TD>
    <TD align=right width="10%" bgcolor="#E6EFFF" valign="bottom" style="border-right-style: none; border-right-width: medium">&nbsp;65,407 </TD>
    <TD align=left width="2%" bgcolor="#E6EFFF" valign="bottom" style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left style="border-bottom-style: solid; border-bottom-width: 1">
    <p style="text-indent: -15pt; margin-left: 15pt">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 </TD>
    <TD align=left width="1%" valign="bottom" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</TD>
    <TD align=right width="10%" valign="bottom" style="border-bottom-style: solid; border-bottom-width: 1">(3,423</TD>
    <TD align=left width="2%" valign="bottom" style="border-bottom-style: solid; border-bottom-width: 1">) </TD>
    <TD align=left width="1%" valign="bottom" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</TD>
    <TD align=right width="10%" valign="bottom" style="border-bottom-style: solid; border-bottom-width: 1">2,725 </TD>
    <TD align=left width="2%" valign="bottom" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</TD>
    <TD align=left width="1%" valign="bottom" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</TD>
    <TD align=right width="10%" valign="bottom" style="border-right-style: none; border-right-width: medium; border-bottom-style: solid; border-bottom-width: 1">(2,437</TD>
    <TD align=left width="2%" valign="bottom" style="border-style: none; border-width: medium">) </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-top-style:solid; border-top-width:1" align=left bgcolor="#E6EFFF">
    <p style="text-indent: -15pt; margin-left: 15pt">Depreciation and amortization included in the consolidated statements of earnings and comprehensive income </TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-top-style:solid; border-top-width:1" align=left width="1%" bgcolor="#E6EFFF" valign="bottom">$</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-top-style:solid; border-top-width:1" align=right
      width="10%" bgcolor="#E6EFFF" valign="bottom">&nbsp;76,385 </TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-top-style:solid; border-top-width:1" align=left
    width="2%" bgcolor="#E6EFFF" valign="bottom">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-top-style:solid; border-top-width:1" align=left width="1%" bgcolor="#E6EFFF" valign="bottom">$</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-top-style:solid; border-top-width:1" align=right
      width="10%" bgcolor="#E6EFFF" valign="bottom">&nbsp;69,197 </TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-top-style:solid; border-top-width:1" align=left
    width="2%" bgcolor="#E6EFFF" valign="bottom">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-top-style:solid; border-top-width:1" align=left width="1%" bgcolor="#E6EFFF" valign="bottom">$</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-right-style:none; border-right-width:medium; border-top-style:solid; border-top-width:1" align=right
      width="10%" bgcolor="#E6EFFF" valign="bottom">&nbsp;62,970 </TD>
    <TD style="BORDER-BOTTOM: medium none #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" align=left
    width="2%" bgcolor="#E6EFFF" valign="bottom">&nbsp;</TD></TR>
  <TR>
    <TD>
    <p style="text-indent: -15pt; margin-left: 15pt">&nbsp; </TD>
    <TD width="1%" valign="bottom">&nbsp;</TD>
    <TD width="10%" valign="bottom">&nbsp; </TD>
    <TD width="2%" valign="bottom">&nbsp;</TD>
    <TD width="1%" valign="bottom">&nbsp;</TD>
    <TD width="10%" valign="bottom">&nbsp; </TD>
    <TD width="2%" valign="bottom">&nbsp;</TD>
    <TD width="1%" valign="bottom">&nbsp;</TD>
    <TD width="10%" valign="bottom" style="border-right-style: none; border-right-width: medium">&nbsp; </TD>
    <TD width="2%" valign="bottom" style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgcolor="#E6EFFF">
    <p style="text-indent: -15pt; margin-left: 15pt">Comprised of: </TD>
    <TD align=left width="1%" bgcolor="#E6EFFF" valign="bottom">&nbsp;</TD>
    <TD align=left width="10%" bgcolor="#E6EFFF" valign="bottom">&nbsp; </TD>
    <TD align=left width="2%" bgcolor="#E6EFFF" valign="bottom">&nbsp;</TD>
    <TD align=left width="1%" bgcolor="#E6EFFF" valign="bottom">&nbsp;</TD>
    <TD align=left width="10%" bgcolor="#E6EFFF" valign="bottom">&nbsp; </TD>
    <TD align=left width="2%" bgcolor="#E6EFFF" valign="bottom">&nbsp;</TD>
    <TD align=left width="1%" bgcolor="#E6EFFF" valign="bottom">&nbsp;</TD>
    <TD align=left width="10%" bgcolor="#E6EFFF" valign="bottom" style="border-right-style: none; border-right-width: medium">&nbsp; </TD>
    <TD align=left width="2%" bgcolor="#E6EFFF" valign="bottom" style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>
    <p style="text-indent: -15pt; margin-left: 15pt">&nbsp; &nbsp;Depreciation of property, plant and equipment
    </TD>
    <TD align=left width="1%" valign="bottom">$</TD>
    <TD align=right width="10%" valign="bottom">&nbsp;63,283 </TD>
    <TD align=left width="2%" valign="bottom">&nbsp;</TD>
    <TD align=left width="1%" valign="bottom">$</TD>
    <TD align=right width="10%" valign="bottom">&nbsp;60,378 </TD>
    <TD align=left width="2%" valign="bottom">&nbsp;</TD>
    <TD align=left width="1%" valign="bottom">$</TD>
    <TD align=right width="10%" valign="bottom" style="border-right-style: none; border-right-width: medium">&nbsp;53,925 </TD>
    <TD align=left width="2%" valign="bottom" style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgcolor="#E6EFFF">
    <p style="text-indent: -15pt; margin-left: 15pt">&nbsp; &nbsp;Amortization of intangible assets </TD>
    <TD align=left width="1%" bgcolor="#E6EFFF" valign="bottom">&nbsp;</TD>
    <TD align=right width="10%" bgcolor="#E6EFFF" valign="bottom">13,087 </TD>
    <TD align=left width="2%" bgcolor="#E6EFFF" valign="bottom">&nbsp;</TD>
    <TD align=left width="1%" bgcolor="#E6EFFF" valign="bottom">&nbsp;</TD>
    <TD align=right width="10%" bgcolor="#E6EFFF" valign="bottom">8,797 </TD>
    <TD align=left width="2%" bgcolor="#E6EFFF" valign="bottom">&nbsp;</TD>
    <TD align=left width="1%" bgcolor="#E6EFFF" valign="bottom">&nbsp;</TD>
    <TD align=right width="10%" bgcolor="#E6EFFF" valign="bottom" style="border-right-style: none; border-right-width: medium">8,843 </TD>
    <TD align=left width="2%" bgcolor="#E6EFFF" valign="bottom" style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left style="border-bottom-style: solid; border-bottom-width: 1">
    <p style="text-indent: -15pt; margin-left: 15pt">&nbsp; &nbsp;Amortization of financing costs and other </TD>
    <TD align=left width="1%" valign="bottom" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</TD>
    <TD align=right width="10%" valign="bottom" style="border-bottom-style: solid; border-bottom-width: 1">15 </TD>
    <TD align=left width="2%" valign="bottom" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</TD>
    <TD align=left width="1%" valign="bottom" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</TD>
    <TD align=right width="10%" valign="bottom" style="border-bottom-style: solid; border-bottom-width: 1">22 </TD>
    <TD align=left width="2%" valign="bottom" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</TD>
    <TD align=left width="1%" valign="bottom" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</TD>
    <TD align=right width="10%" valign="bottom" style="border-right-style: none; border-right-width: medium; border-bottom-style: solid; border-bottom-width: 1">202 </TD>
    <TD align=left width="2%" valign="bottom" style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-top-style:solid; border-top-width:1" align=left bgcolor="#E6EFFF">
    <p style="text-indent: -15pt; margin-left: 15pt">Depreciation and amortization included in the consolidated
    statements of earnings and comprehensive income </TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-top-style:solid; border-top-width:1" align=left width="1%" bgcolor="#E6EFFF" valign="bottom">$</TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-top-style:solid; border-top-width:1" align=right
      width="10%" bgcolor="#E6EFFF" valign="bottom">&nbsp;76,385 </TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-top-style:solid; border-top-width:1" align=left
    width="2%" bgcolor="#E6EFFF" valign="bottom">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-top-style:solid; border-top-width:1" align=left width="1%" bgcolor="#E6EFFF" valign="bottom">$</TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-top-style:solid; border-top-width:1" align=right
      width="10%" bgcolor="#E6EFFF" valign="bottom">&nbsp;69,197 </TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-top-style:solid; border-top-width:1" align=left
    width="2%" bgcolor="#E6EFFF" valign="bottom">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-top-style:solid; border-top-width:1" align=left width="1%" bgcolor="#E6EFFF" valign="bottom">$</TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-right-style:none; border-right-width:medium; border-top-style:solid; border-top-width:1" align=right
      width="10%" bgcolor="#E6EFFF" valign="bottom">&nbsp;62,970 </TD>
    <TD style="BORDER-BOTTOM: medium none #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" align=left
    width="2%" bgcolor="#E6EFFF" valign="bottom">&nbsp;</TD></TR></TABLE></DIV><BR>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0 BCLLIST>

  <TR>
    <TD vAlign=top width="5%">(b) </TD>
    <TD>
      <P align=justify>The Company recorded bad debt expense, net of recoveries,
      of $0.6 million (2010 &#150; $2.4 million; 2009 &#150; $6.0 million) which is
      included in selling, general and administrative expenses.</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top width="5%">(c) </TD>
    <TD>
      <P align=justify>During the fourth quarter of fiscal 2010, the Company
      received business interruption insurance proceeds of $8.0 million,
      reflecting the maximum insurance recovery available under its insurance
      policy related to the earthquake which struck Haiti on January 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 and
      comprehensive income.</P></TD></TR></TABLE>
<P align=justify><B>21. RELATED PARTY TRANSACTIONS:</B><BR></P>
<P align=justify>The Company has transactions with Frontier Spinning Mills,
Inc., which manages the operations of CanAm. These transactions are in the
normal course of operations and are measured at the exchange amount, which is
the amount of consideration established and agreed to by the related parties.
The following is a summary of the related party transactions and balances owed:
</P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-top-style:solid; border-top-width:2" align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-top-style:solid; border-top-width:2" align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-top-style:solid; border-top-width:2" align=right width="10%">2011
    </TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-top-style:solid; border-top-width:2" align=left
    width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-top-style:solid; border-top-width:2" align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-top-style:solid; border-top-width:2" align=right width="10%">2010
    </TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-top-style:solid; border-top-width:2" align=left
    width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-top-style:solid; border-top-width:2" align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-top-style:solid; border-top-width:2; border-right-style:none; border-right-width:medium" align=right width="10%">2009
    </TD>
    <TD style="BORDER-BOTTOM: medium none #000000; ; border-top-style:none; border-top-width:medium; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium" align=left
    width="2%">&nbsp;</TD></TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="10%">&nbsp; </TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="10%">&nbsp; </TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="10%" style="border-right-style: none; border-right-width: medium">&nbsp; </TD>
    <TD width="2%" style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Transactions: </TD>
    <TD align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="10%" bgColor=#e6efff>&nbsp; </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="10%" bgColor=#e6efff>&nbsp; </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="10%" bgColor=#e6efff style="border-right-style: none; border-right-width: medium">&nbsp; </TD>
    <TD align=left width="2%" bgColor=#e6efff style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; &nbsp; &nbsp;Yarn purchases </TD>
    <TD align=left width="1%">$</TD>
    <TD align=right width="10%">&nbsp;297,495 </TD>
    <TD align=left width="2%">&nbsp;</TD>
    <TD align=left width="1%">$</TD>
    <TD align=right width="10%">&nbsp;156,761 </TD>
    <TD align=left width="2%">&nbsp;</TD>
    <TD align=left width="1%">$</TD>
    <TD align=right width="10%" style="border-right-style: none; border-right-width: medium">&nbsp;149,754 </TD>
    <TD align=left width="2%" style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>&nbsp; &nbsp; &nbsp;Management fee expense
    </TD>
    <TD align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>750 </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>750 </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff style="border-right-style: none; border-right-width: medium">750 </TD>
    <TD align=left width="2%" bgColor=#e6efff style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="10%">&nbsp; </TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="10%">&nbsp; </TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="10%" style="border-right-style: none; border-right-width: medium">&nbsp; </TD>
    <TD width="2%" style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Balances outstanding: </TD>
    <TD align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="10%" bgColor=#e6efff>&nbsp; </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="10%" bgColor=#e6efff>&nbsp; </TD>
    <TD align=left width="2%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="10%" bgColor=#e6efff style="border-right-style: none; border-right-width: medium">&nbsp; </TD>
    <TD align=left width="2%" bgColor=#e6efff style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left>&nbsp; &nbsp;
      &nbsp;Accounts payable and accrued liabilities </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right
      width="10%">63,132 </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left
    width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right
      width="10%">30,050 </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left
    width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-right-style:none; border-right-width:medium" align=right
      width="10%">22,129 </TD>
    <TD style="BORDER-BOTTOM: medium none #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" align=left
    width="2%">&nbsp;</TD></TR></TABLE>
<P align=justify>The Company leases warehouse and office space from an officer
of a subsidiary of the Company under operating leases. The payments made on
these leases were in accordance with the terms of the lease agreements
established and agreed to by the related parties, which amounted to $0.6 million
for fiscal 2011 (2010 - nil). There were no amounts owing as at October 2, 2011.
</P>
<P align=right>GILDAN 2011 REPORT TO SHAREHOLDERS P.81</P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<!--$$/page=-->
<table border="0" cellpadding="0" cellspacing="0" style="border-collapse: collapse" bordercolor="#111111" width="100%">
  <tr>
    <td width="50%"><font size="2">
    <IMG
src="financialsx1x1.jpg" border=0 width="96" height="21"></font></td>
    <td width="50%">
<P align=right><font size="2">NOTES TO CONSOLIDATED FINANCIAL STATEMENTS </font></P>
    </td>
  </tr>
</table>
<P align=justify><B>22. FINANCIAL INSTRUMENTS:</B><BR></P>
<P align=justify>Disclosures relating to exposure to risks, in particular credit
risk, liquidity risk, foreign currency risk and interest rate risk, are included
in the section entitled &#147;Financial Risk Management&#148; of the Management&#146;s
Discussion and Analysis of the Company&#146;s operations, performance and financial
condition as at October 2, 2011, which is included in the Report to Shareholders
along with these consolidated financial statements. Accordingly, these
disclosures are incorporated into these consolidated financial statements by
cross-reference. </P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0 BCLLIST>

  <TR>
    <TD vAlign=top width="5%">(a) </TD>
    <TD>
      <P align=justify>Financial instruments &#150; carrying values and fair
      values:</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD>
      <P align=justify>The fair values of financial assets and liabilities,
      together with the carrying amounts included in the consolidated balance
      sheets, are as follows:</P></TD></TR></TABLE><BR>
<div align="right">
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="95%" border=0>

  <TR vAlign=top>
    <TD align=left style="border-top-style: solid; border-top-width: 2; border-bottom-style:solid; border-bottom-width:1" bordercolor="#000000">&nbsp; </TD>
    <TD align=left width="1%" style="border-top-style: solid; border-top-width: 2; border-bottom-style:solid; border-bottom-width:1" bordercolor="#000000" >&nbsp;</TD>
    <TD align=left width="10%" style="border-top-style: solid; border-top-width: 2; border-bottom-style:solid; border-bottom-width:1" bordercolor="#000000">&nbsp; </TD>
    <TD align=left width="2%" style="border-top-style: solid; border-top-width: 2; border-bottom-style:solid; border-bottom-width:1" bordercolor="#000000" >&nbsp;</TD>
    <TD align=left width="1%" style="border-top-style: solid; border-top-width: 2; border-bottom-style:solid; border-bottom-width:1" bordercolor="#000000" >&nbsp;</TD>
    <TD align=right width="10%" style="border-top-style: solid; border-top-width: 2; border-bottom-style:solid; border-bottom-width:1" bordercolor="#000000">2011 </TD>
    <TD align=left width="2%" style="border-top-style: solid; border-top-width: 2; border-bottom-style:solid; border-bottom-width:1" bordercolor="#000000" >&nbsp;</TD>
    <TD align=left width="1%" style="border-top-style: solid; border-top-width: 2; border-bottom-style:solid; border-bottom-width:1" bordercolor="#000000" >&nbsp;</TD>
    <TD align=left width="10%" style="border-top-style: solid; border-top-width: 2; border-bottom-style:solid; border-bottom-width:1" bordercolor="#000000">&nbsp; </TD>
    <TD align=left width="2%" style="border-top-style: solid; border-top-width: 2; border-bottom-style:solid; border-bottom-width:1" bordercolor="#000000" >&nbsp;</TD>
    <TD align=left width="1%" style="border-top-style: solid; border-top-width: 2; border-bottom-style:solid; border-bottom-width:1" bordercolor="#000000" >&nbsp;</TD>
    <TD align=right width="10%" style="border-top-style: solid; border-top-width: 2; border-right-style:none; border-right-width:medium; border-bottom-style:solid; border-bottom-width:1" bordercolor="#000000">2010 </TD>
    <TD align=left width="2%" style="border-style:none; border-width:medium; " bordercolor="#000000" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left style="border-top-style: solid; border-top-width: 1">&nbsp; </TD>
    <TD align=left width="1%" style="border-top-style: solid; border-top-width: 1" >&nbsp;</TD>
    <TD align=right width="10%" style="border-top-style: solid; border-top-width: 1">Carrying </TD>
    <TD align=left width="2%" style="border-top-style: solid; border-top-width: 1" >&nbsp;</TD>
    <TD align=left width="1%" style="border-top-style: solid; border-top-width: 1" >&nbsp;</TD>
    <TD align=left width="10%" style="border-top-style: solid; border-top-width: 1">&nbsp; </TD>
    <TD align=left width="2%" style="border-top-style: solid; border-top-width: 1" >&nbsp;</TD>
    <TD align=left width="1%" style="border-top-style: solid; border-top-width: 1" >&nbsp;</TD>
    <TD align=right width="10%" style="border-top-style: solid; border-top-width: 1">Carrying </TD>
    <TD align=left width="2%" style="border-top-style: solid; border-top-width: 1" >&nbsp;</TD>
    <TD align=left width="1%" style="border-top-style: solid; border-top-width: 1" >&nbsp;</TD>
    <TD align=left width="10%" style="border-right-style: none; border-right-width: medium; border-top-style: solid; border-top-width: 1">&nbsp; </TD>
    <TD align=left width="2%" style="border-style: none; border-width: medium" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="10%">amount </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="10%">Fair
      value </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="10%">amount </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-right-style:none; border-right-width:medium" align=right width="10%">Fair
      value </TD>
    <TD style="BORDER-BOTTOM: medium none #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" align=left width="2%"
    >&nbsp;</TD></TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="10%">&nbsp; </TD>
    <TD width="2%" >&nbsp;</TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="10%">&nbsp; </TD>
    <TD width="2%" >&nbsp;</TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="10%">&nbsp; </TD>
    <TD width="2%" >&nbsp;</TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="10%" style="border-right-style: none; border-right-width: medium">&nbsp; </TD>
    <TD width="2%" style="border-style: none; border-width: medium" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>
    <p style="text-indent: -15pt; margin-left: 15pt"><B>Financial assets</B> </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="10%" bgColor=#e6efff>&nbsp; </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="10%" bgColor=#e6efff>&nbsp; </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="10%" bgColor=#e6efff>&nbsp; </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="10%" bgColor=#e6efff style="border-right-style: none; border-right-width: medium">&nbsp; </TD>
    <TD align=left width="2%"  bgColor=#e6efff style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>
    <p style="text-indent: -15pt; margin-left: 15pt">Held-for-trading financial assets: </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="10%">&nbsp; </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="10%">&nbsp; </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="10%">&nbsp; </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="10%" style="border-right-style: none; border-right-width: medium">&nbsp; </TD>
    <TD align=left width="2%" style="border-style: none; border-width: medium" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>
    <p style="text-indent: -15pt; margin-left: 15pt">&nbsp; &nbsp;Cash and cash equivalents </TD>
    <TD align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD align=right width="10%" bgColor=#e6efff>&nbsp;88,802 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD align=right width="10%" bgColor=#e6efff>&nbsp;88,802 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD align=right width="10%" bgColor=#e6efff>&nbsp;258,442 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD align=right width="10%" bgColor=#e6efff style="border-right-style: none; border-right-width: medium">&nbsp;258,442 </TD>
    <TD align=left width="2%"  bgColor=#e6efff style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>
    <p style="text-indent: -15pt; margin-left: 15pt">Loans and receivables: </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="10%">&nbsp; </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="10%">&nbsp; </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="10%">&nbsp; </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="10%" style="border-right-style: none; border-right-width: medium">&nbsp; </TD>
    <TD align=left width="2%" style="border-style: none; border-width: medium" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>
    <p style="text-indent: -15pt; margin-left: 15pt">&nbsp; &nbsp;Trade accounts receivable </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>191,594 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>191,594 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>145,684 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff style="border-right-style: none; border-right-width: medium">145,684 </TD>
    <TD align=left width="2%"  bgColor=#e6efff style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>
    <p style="text-indent: -15pt; margin-left: 15pt">&nbsp; &nbsp;Other current assets </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%">6,008 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%">6,008 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%">7,980 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%" style="border-right-style: none; border-right-width: medium">7,980 </TD>
    <TD align=left width="2%" style="border-style: none; border-width: medium" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>
    <p style="text-indent: -15pt; margin-left: 15pt">&nbsp;&nbsp; Long-term non-trade receivable
      included in other assets </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>1,120 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>1,120 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>953 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff style="border-right-style: none; border-right-width: medium">953 </TD>
    <TD align=left width="2%"  bgColor=#e6efff style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>
    <p style="text-indent: -15pt; margin-left: 15pt">&nbsp;&nbsp; Restricted cash related to the acquisition of
      Prewett included in other assets </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%">- </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%">- </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%">5,788 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%" style="border-right-style: none; border-right-width: medium">5,788 </TD>
    <TD align=left width="2%" style="border-style: none; border-width: medium" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>
    <p style="text-indent: -15pt; margin-left: 15pt">Derivative assets </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>3,299 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>3,299 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>1,099 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff style="border-right-style: none; border-right-width: medium">1,099 </TD>
    <TD align=left width="2%"  bgColor=#e6efff style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR>
    <TD>
    <p style="text-indent: -15pt; margin-left: 15pt">&nbsp; </TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="10%">&nbsp; </TD>
    <TD width="2%" >&nbsp;</TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="10%">&nbsp; </TD>
    <TD width="2%" >&nbsp;</TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="10%">&nbsp; </TD>
    <TD width="2%" >&nbsp;</TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="10%" style="border-right-style: none; border-right-width: medium">&nbsp; </TD>
    <TD width="2%" style="border-style: none; border-width: medium" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>
    <p style="text-indent: -15pt; margin-left: 15pt"><B>Financial liabilities</B> </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="10%" bgColor=#e6efff>&nbsp; </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="10%" bgColor=#e6efff>&nbsp; </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="10%" bgColor=#e6efff>&nbsp; </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="10%" bgColor=#e6efff style="border-right-style: none; border-right-width: medium">&nbsp; </TD>
    <TD align=left width="2%"  bgColor=#e6efff style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>
    <p style="text-indent: -15pt; margin-left: 15pt">Other financial liabilities: </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="10%">&nbsp; </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="10%">&nbsp; </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="10%">&nbsp; </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="10%" style="border-right-style: none; border-right-width: medium">&nbsp; </TD>
    <TD align=left width="2%" style="border-style: none; border-width: medium" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>
    <p style="text-indent: -15pt; margin-left: 15pt">&nbsp; &nbsp;Accounts payable and accrued
      liabilities </TD>
    <TD align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD align=right width="10%" bgColor=#e6efff>&nbsp;311,262 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD align=right width="10%" bgColor=#e6efff>&nbsp;311,262 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD align=right width="10%" bgColor=#e6efff>&nbsp;183,117 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD align=right width="10%" bgColor=#e6efff style="border-right-style: none; border-right-width: medium">&nbsp;183,117 </TD>
    <TD align=left width="2%"  bgColor=#e6efff style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>
    <p style="text-indent: -15pt; margin-left: 15pt">&nbsp;&nbsp; Long-term debt - bearing interest at variable
      rates </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%">209,000 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%">209,000 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%">- </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%" style="border-right-style: none; border-right-width: medium">- </TD>
    <TD align=left width="2%" style="border-style: none; border-width: medium" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left
      bgColor=#e6efff>
    <p style="text-indent: -15pt; margin-left: 15pt">Derivative liabilities </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right width="10%"
    bgColor=#e6efff>4,007 </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right width="10%"
    bgColor=#e6efff>4,007 </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right width="10%"
    bgColor=#e6efff>3,088 </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-right-style:none; border-right-width:medium" align=right width="10%"
    bgColor=#e6efff>3,088 </TD>
    <TD style="BORDER-BOTTOM: medium none #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD></TR></TABLE>
</div>
<P align=justify style="margin-left: 5%">Derivative assets and derivative liabilities consist of the
fair values of forward foreign exchange contracts, interest rate swap contracts
and zero-cost collar options outstanding at October 2, 2011. 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 derivative instruments 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.</P>
<P align=right>GILDAN 2011 REPORT TO SHAREHOLDERS P.82</P>
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noShade SIZE=5>
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<table border="0" cellpadding="0" cellspacing="0" style="border-collapse: collapse" bordercolor="#111111" width="100%">
  <tr>
    <td width="50%"><font size="2">
    <IMG
src="financialsx1x1.jpg" border=0 width="96" height="21"></font></td>
    <td width="50%">
<P align=right><font size="2">NOTES TO CONSOLIDATED FINANCIAL STATEMENTS </font></P>
    </td>
  </tr>
</table>
<p><B>22. FINANCIAL INSTRUMENTS (continued):</B></p>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0 BCLLIST>

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

  <TR>
    <TD width="5%" >&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" width="53%">&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" width="10%"
      >&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" width="10%"
      >&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-right-style:none; border-right-width:medium" width="10%"
      >&nbsp; </TD>
    <TD style="BORDER-BOTTOM: medium none #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" width="2%"
    >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left width="5%" >&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="53%">&nbsp;
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="10%"
    >2011 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="10%"
    >2010 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-right-style:none; border-right-width:medium" align=right width="10%"
    >2009 </TD>
    <TD style="BORDER-BOTTOM: medium none #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" align=left width="2%"
     >&nbsp;</TD></TR>
  <TR>
    <TD width="5%" >&nbsp; </TD>
    <TD width="53%">&nbsp; </TD>
    <TD width="2%" >&nbsp;</TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="10%" >&nbsp; </TD>
    <TD width="2%" >&nbsp;</TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="10%" >&nbsp; </TD>
    <TD width="2%" >&nbsp;</TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="10%" style="border-right-style: none; border-right-width: medium" >&nbsp; </TD>
    <TD width="2%" style="border-style: none; border-width: medium"  >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left width="5%">&nbsp;</TD>
    <TD align=left bgcolor="#E6EFFF" width="53%">
    <p style="text-indent: -15pt; margin-left: 15pt">Interest expense (i)</TD>
    <TD align=left width="2%" bgcolor="#E6EFFF" >&nbsp;</TD>
    <TD align=left width="1%" bgcolor="#E6EFFF" >$</TD>
    <TD align=right width="10%" bgcolor="#E6EFFF" >&nbsp;2,856 </TD>
    <TD align=left width="2%" bgcolor="#E6EFFF" >&nbsp;</TD>
    <TD align=left width="1%" bgcolor="#E6EFFF" >$</TD>
    <TD align=right width="10%" bgcolor="#E6EFFF" >&nbsp;436 </TD>
    <TD align=left width="2%" bgcolor="#E6EFFF" >&nbsp;</TD>
    <TD align=left width="1%" bgcolor="#E6EFFF" >$</TD>
    <TD align=right width="10%" bgcolor="#E6EFFF" style="border-right-style: none; border-right-width: medium" >&nbsp;1,824 </TD>
    <TD align=left width="2%" bgcolor="#E6EFFF" style="border-style: none; border-width: medium"  >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left width="5%">&nbsp;</TD>
    <TD align=left width="53%">
    <p style="text-indent: -15pt; margin-left: 15pt">Bank and other financial charges </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%" >2,216 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%" >1,504 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%" style="border-right-style: none; border-right-width: medium" >1,039 </TD>
    <TD align=left width="2%" style="border-style: none; border-width: medium"  >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left style="border-bottom-style: none; border-bottom-width: medium" width="5%">&nbsp;</TD>
    <TD align=left bgcolor="#E6EFFF" width="53%">
    <p style="text-indent: -15pt; margin-left: 15pt">Foreign exchange gain (ii) </TD>
    <TD align=left width="2%" bgcolor="#E6EFFF" >&nbsp;</TD>
    <TD align=left width="1%" bgcolor="#E6EFFF" >&nbsp;</TD>
    <TD align=right width="10%" bgcolor="#E6EFFF" >(1,098</TD>
    <TD align=left width="2%" bgcolor="#E6EFFF" >) </TD>
    <TD align=left width="1%" bgcolor="#E6EFFF" >&nbsp;</TD>
    <TD align=right width="10%" bgcolor="#E6EFFF" >(1,084</TD>
    <TD align=left width="2%" bgcolor="#E6EFFF" >) </TD>
    <TD align=left width="1%" bgcolor="#E6EFFF" >&nbsp;</TD>
    <TD align=right width="10%" bgcolor="#E6EFFF" style="border-right-style: none; border-right-width: medium" >(3,085</TD>
    <TD align=left width="2%" bgcolor="#E6EFFF" style="border-style: none; border-width: medium"  >) </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: medium none #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" align=left width="5%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:none; border-left-width:medium" align=left width="53%">
    <p style="text-indent: -15pt; margin-left: 15pt">Derivative loss (gain) on financial instruments not designated
      for hedge accounting </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="10%" >1,511 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="10%" >(105</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%" >) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-right-style:none; border-right-width:medium" vAlign=bottom align=right
    width="10%" >(82</TD>
    <TD style="BORDER-BOTTOM: medium none #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" vAlign=bottom align=left
    width="2%"  >) </TD></TR>
  <TR vAlign=top>
    <TD align=left style="border-style: none; border-width: medium" width="5%" >&nbsp; </TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-left-style:none; border-left-width:medium" align=left width="53%" bgcolor="#E6EFFF">
    <p style="text-indent: -15pt; margin-left: 15pt">&nbsp;
    </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="2%" bgcolor="#E6EFFF"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%" bgcolor="#E6EFFF"
    >$</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right width="10%" bgcolor="#E6EFFF"
    >&nbsp;5,485 </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="2%" bgcolor="#E6EFFF"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%" bgcolor="#E6EFFF"
    >$</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right width="10%" bgcolor="#E6EFFF"
    >&nbsp;751 </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="2%" bgcolor="#E6EFFF"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%" bgcolor="#E6EFFF"
    >$</TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-right-style:none; border-right-width:medium" align=right width="10%" bgcolor="#E6EFFF"
    >&nbsp;(304</TD>
    <TD style="BORDER-BOTTOM: medium none #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" align=left width="2%" bgcolor="#E6EFFF"
     >) </TD></TR>
  <TR>
    <TD style="border-top-style: none; border-top-width: medium" width="5%" >&nbsp; </TD>
    <TD width="53%">
    <p style="text-indent: -15pt; margin-left: 15pt">&nbsp; </TD>
    <TD width="2%" >&nbsp;</TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="10%" >&nbsp; </TD>
    <TD width="2%" >&nbsp;</TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="10%" >&nbsp; </TD>
    <TD width="2%" >&nbsp;</TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="10%" style="border-right-style: none; border-right-width: medium" >&nbsp; </TD>
    <TD width="2%" style="border-style: none; border-width: medium"  >&nbsp;</TD></TR>
  </TABLE>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD align=left width="5%" >&nbsp;</TD>
    <TD align=left width="5%" >(i) </TD>
    <TD align=left width="48%">Interest expense (income): </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="10%" >&nbsp; </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="10%" >&nbsp; </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="10%" style="border-right-style: none; border-right-width: medium" >&nbsp; </TD>
    <TD align=left width="2%" style="border-style: none; border-width: medium"  >&nbsp;</TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD width="5%" >&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="48%">&nbsp;
    </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" width="10%"
      >&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" width="10%"
      >&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-right-style:none; border-right-width:medium" width="10%"
      >&nbsp; </TD>
    <TD style="BORDER-BOTTOM: medium none #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" width="2%"
    >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left width="5%" >&nbsp;</TD>
    <TD align=left width="5%" >&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="48%">&nbsp;
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="10%"
    >2011 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="10%"
    >2010 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-right-style:none; border-right-width:medium" align=right width="10%"
    >2009 </TD>
    <TD style="BORDER-BOTTOM: medium none #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" align=left width="2%"
     >&nbsp;</TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD width="5%" >&nbsp; </TD>
    <TD align=left width="48%">&nbsp; </TD>
    <TD width="2%" >&nbsp;</TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="10%" >&nbsp; </TD>
    <TD width="2%" >&nbsp;</TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="10%" >&nbsp; </TD>
    <TD width="2%" >&nbsp;</TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="10%" style="border-right-style: none; border-right-width: medium" >&nbsp; </TD>
    <TD width="2%" style="border-style: none; border-width: medium"  >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left width="5%" >&nbsp;</TD>
    <TD align=left width="5%" >&nbsp; </TD>
    <TD align=left width="48%" bgcolor="#E6EFFF">Interest expense on long-term debt </TD>
    <TD align=left width="2%" bgcolor="#E6EFFF" >&nbsp;</TD>
    <TD align=left width="1%" bgcolor="#E6EFFF" >$</TD>
    <TD align=right width="10%" bgcolor="#E6EFFF" >&nbsp;3,246 </TD>
    <TD align=left width="2%" bgcolor="#E6EFFF" >&nbsp;</TD>
    <TD align=left width="1%" bgcolor="#E6EFFF" >$</TD>
    <TD align=right width="10%" bgcolor="#E6EFFF" >&nbsp;88 </TD>
    <TD align=left width="2%" bgcolor="#E6EFFF" >&nbsp;</TD>
    <TD align=left width="1%" bgcolor="#E6EFFF" >$</TD>
    <TD align=right width="10%" bgcolor="#E6EFFF" style="border-right-style: none; border-right-width: medium" >&nbsp;1,800 </TD>
    <TD align=left width="2%" bgcolor="#E6EFFF" style="border-style: none; border-width: medium"  >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left width="5%" >&nbsp;</TD>
    <TD align=left width="5%" >&nbsp; </TD>
    <TD align=left width="48%">Interest expense on short-term indebtedness </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%" >27 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%" >463 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%" style="border-right-style: none; border-right-width: medium" >142 </TD>
    <TD align=left width="2%" style="border-style: none; border-width: medium"  >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left width="5%" >&nbsp;</TD>
    <TD align=left width="5%" >&nbsp; </TD>
    <TD align=left width="48%" bgcolor="#E6EFFF">Interest income on held-for-trading financial
      assets </TD>
    <TD align=left width="2%" bgcolor="#E6EFFF" >&nbsp;</TD>
    <TD align=left width="1%" bgcolor="#E6EFFF" >&nbsp;</TD>
    <TD align=right width="10%" bgcolor="#E6EFFF" >(434</TD>
    <TD align=left width="2%" bgcolor="#E6EFFF" >) </TD>
    <TD align=left width="1%" bgcolor="#E6EFFF" >&nbsp;</TD>
    <TD align=right width="10%" bgcolor="#E6EFFF" >(132</TD>
    <TD align=left width="2%" bgcolor="#E6EFFF" >) </TD>
    <TD align=left width="1%" bgcolor="#E6EFFF" >&nbsp;</TD>
    <TD align=right width="10%" bgcolor="#E6EFFF" style="border-right-style: none; border-right-width: medium" >(103</TD>
    <TD align=left width="2%" bgcolor="#E6EFFF" style="border-style: none; border-width: medium"  >) </TD></TR>
  <TR vAlign=top>
    <TD align=left width="5%" >&nbsp;</TD>
    <TD align=left width="5%" >&nbsp; </TD>
    <TD align=left width="48%">Interest income on loans and receivables </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%" >(80</TD>
    <TD align=left width="2%" >) </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%" >(80</TD>
    <TD align=left width="2%" >) </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%" style="border-right-style: none; border-right-width: medium" >(80</TD>
    <TD align=left width="2%" style="border-style: none; border-width: medium"  >) </TD></TR>
  <TR vAlign=top>
    <TD align=left width="5%" >&nbsp;</TD>
    <TD align=left width="5%" >&nbsp; </TD>
    <TD align=left width="48%" bgcolor="#E6EFFF" style="border-bottom-style: solid; border-bottom-width: 1">Other interest expense </TD>
    <TD align=left width="2%" bgcolor="#E6EFFF" style="border-bottom-style: solid; border-bottom-width: 1" >&nbsp;</TD>
    <TD align=left width="1%" bgcolor="#E6EFFF" style="border-bottom-style: solid; border-bottom-width: 1" >&nbsp;</TD>
    <TD align=right width="10%" bgcolor="#E6EFFF" style="border-bottom-style: solid; border-bottom-width: 1" >97 </TD>
    <TD align=left width="2%" bgcolor="#E6EFFF" style="border-bottom-style: solid; border-bottom-width: 1" >&nbsp;</TD>
    <TD align=left width="1%" bgcolor="#E6EFFF" style="border-bottom-style: solid; border-bottom-width: 1" >&nbsp;</TD>
    <TD align=right width="10%" bgcolor="#E6EFFF" style="border-bottom-style: solid; border-bottom-width: 1" >97 </TD>
    <TD align=left width="2%" bgcolor="#E6EFFF" style="border-bottom-style: solid; border-bottom-width: 1" >&nbsp;</TD>
    <TD align=left width="1%" bgcolor="#E6EFFF" style="border-bottom-style: solid; border-bottom-width: 1" >&nbsp;</TD>
    <TD align=right width="10%" bgcolor="#E6EFFF" style="border-right-style: none; border-right-width: medium; border-bottom-style:solid; border-bottom-width:1" >65 </TD>
    <TD align=left width="2%" bgcolor="#E6EFFF" style="border-style: none; border-width: medium"  >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left width="5%" >&nbsp;</TD>
    <TD align=left width="5%" >&nbsp; </TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-top-style:solid; border-top-width:1" align=left width="48%">&nbsp;
    </TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-top-style:solid; border-top-width:1" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-top-style:solid; border-top-width:1" align=left width="1%"
    >$</TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-top-style:solid; border-top-width:1" align=right width="10%"
    >&nbsp;2,856 </TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-top-style:solid; border-top-width:1" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-top-style:solid; border-top-width:1" align=left width="1%"
    >$</TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-top-style:solid; border-top-width:1" align=right width="10%"
    >&nbsp;436 </TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-top-style:solid; border-top-width:1" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-top-style:solid; border-top-width:1" align=left width="1%"
    >$</TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-right-style:none; border-right-width:medium; border-top-style:solid; border-top-width:1" align=right width="10%"
    >&nbsp;1,824 </TD>
    <TD style="BORDER-BOTTOM: medium none #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" align=left width="2%"
     >&nbsp;</TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD width="5%" >&nbsp; </TD>
    <TD align=left width="48%">&nbsp; </TD>
    <TD width="2%" >&nbsp;</TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="10%" >&nbsp; </TD>
    <TD width="2%" >&nbsp;</TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="10%" >&nbsp; </TD>
    <TD width="2%" >&nbsp;</TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="10%" style="border-right-style: none; border-right-width: medium" >&nbsp; </TD>
    <TD width="2%" style="border-style: none; border-width: medium"  >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left width="5%" >&nbsp;</TD>
    <TD align=left width="5%" ></TD>
    <TD align=left width="89%" colSpan=10 style="border-right-style: none; border-right-width: medium; text-align:justify">Interest income on held-for-trading
      financial assets consists of interest earned from cash and cash
      equivalents invested in short-term deposits. Interest income on loans and
      receivables relates to interest earned on the Company&#146;s long-term
      receivable included in other assets. </TD>
    <TD align=left width="2%" style="border-style: none; border-width: medium"  >&nbsp;</TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD width="5%" >&nbsp; </TD>
    <TD align=left width="48%">&nbsp; </TD>
    <TD width="2%" >&nbsp;</TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="10%" >&nbsp; </TD>
    <TD width="2%" >&nbsp;</TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="10%" >&nbsp; </TD>
    <TD width="2%" >&nbsp;</TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="10%" style="border-right-style: none; border-right-width: medium" >&nbsp; </TD>
    <TD width="2%" style="border-style: none; border-width: medium"  >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left width="5%" >&nbsp;</TD>
    <TD align=left width="5%" >(ii) </TD>
    <TD align=left width="48%">Foreign exchange gain: </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="10%" >&nbsp; </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="10%" >&nbsp; </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="10%" style="border-right-style: none; border-right-width: medium" >&nbsp; </TD>
    <TD align=left width="2%" style="border-style: none; border-width: medium"  >&nbsp;</TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD width="5%" >&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="48%">&nbsp;
    </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" width="10%"
      >&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" width="10%"
      >&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-right-style:none; border-right-width:medium" width="10%"
      >&nbsp; </TD>
    <TD style="BORDER-BOTTOM: medium none #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" width="2%"
    >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left width="5%" >&nbsp;</TD>
    <TD align=left width="5%" >&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="48%">&nbsp;
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="10%"
    >2011 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="10%"
    >2010 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-right-style:none; border-right-width:medium" align=right width="10%"
    >2009 </TD>
    <TD style="BORDER-BOTTOM: medium none #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" align=left width="2%"
     >&nbsp;</TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD width="5%" >&nbsp; </TD>
    <TD align=left width="48%">&nbsp; </TD>
    <TD width="2%" >&nbsp;</TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="10%" >&nbsp; </TD>
    <TD width="2%" >&nbsp;</TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="10%" >&nbsp; </TD>
    <TD width="2%" >&nbsp;</TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="10%" style="border-right-style: none; border-right-width: medium" >&nbsp; </TD>
    <TD width="2%" style="border-style: none; border-width: medium"  >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left width="5%" >&nbsp;</TD>
    <TD align=left width="5%" >&nbsp; </TD>
    <TD align=left width="48%" bordercolor="#E6EFFF" bgcolor="#E6EFFF" style="border-bottom-style: none; border-bottom-width: medium">Gain relating to financial assets and
      liabilities </TD>
    <TD align=left width="2%" bordercolor="#E6EFFF" bgcolor="#E6EFFF" style="border-bottom-style: none; border-bottom-width: medium" >&nbsp;</TD>
    <TD align=left width="1%" bordercolor="#E6EFFF" bgcolor="#E6EFFF" style="border-bottom-style: none; border-bottom-width: medium" >$</TD>
    <TD align=right width="10%" bordercolor="#E6EFFF" bgcolor="#E6EFFF" style="border-bottom-style: none; border-bottom-width: medium" >&nbsp;(219</TD>
    <TD align=left width="2%" bordercolor="#E6EFFF" bgcolor="#E6EFFF" style="border-bottom-style: none; border-bottom-width: medium" >) </TD>
    <TD align=left width="1%" bordercolor="#E6EFFF" bgcolor="#E6EFFF" style="border-bottom-style: none; border-bottom-width: medium" >$</TD>
    <TD align=right width="10%" bordercolor="#E6EFFF" bgcolor="#E6EFFF" style="border-bottom-style: none; border-bottom-width: medium" >&nbsp;(1,154</TD>
    <TD align=left width="2%" bordercolor="#E6EFFF" bgcolor="#E6EFFF" style="border-bottom-style: none; border-bottom-width: medium" >) </TD>
    <TD align=left width="1%" bordercolor="#E6EFFF" bgcolor="#E6EFFF" style="border-bottom-style: none; border-bottom-width: medium" >$</TD>
    <TD align=right width="10%" bordercolor="#E6EFFF" bgcolor="#E6EFFF" style="border-right-style: none; border-right-width: medium; border-bottom-style:none; border-bottom-width:medium" >&nbsp;(220</TD>
    <TD align=left width="2%" bordercolor="#E6EFFF" bgcolor="#E6EFFF" style="border-style: none; border-width: medium"  >) </TD></TR>
  <TR vAlign=top>
    <TD align=left width="5%" >&nbsp;</TD>
    <TD align=left width="5%" style="border-right-style: none; border-right-width: medium" >&nbsp; </TD>
    <TD align=left width="48%" style="border-bottom-style: solid; border-bottom-width: 1; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium">Other foreign exchange (gain) loss </TD>
    <TD align=left width="2%" style="border-bottom-style: solid; border-bottom-width: 1; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" >&nbsp;</TD>
    <TD align=left width="1%" style="border-bottom-style: solid; border-bottom-width: 1; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" >&nbsp;</TD>
    <TD align=right width="10%" style="border-bottom-style: solid; border-bottom-width: 1; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" >(879</TD>
    <TD align=left width="2%" style="border-bottom-style: solid; border-bottom-width: 1; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" >) </TD>
    <TD align=left width="1%" style="border-bottom-style: solid; border-bottom-width: 1; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" >&nbsp;</TD>
    <TD align=right width="10%" style="border-bottom-style: solid; border-bottom-width: 1; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" >70 </TD>
    <TD align=left width="2%" style="border-bottom-style: solid; border-bottom-width: 1; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" >&nbsp;</TD>
    <TD align=left width="1%" style="border-bottom-style: solid; border-bottom-width: 1; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" >&nbsp;</TD>
    <TD align=right width="10%" style="border-right-style: none; border-right-width: medium; border-bottom-style:solid; border-bottom-width:1; border-left-style:none; border-left-width:medium; border-top-style:none; border-top-width:medium" >(2,865</TD>
    <TD align=left width="2%" style="border-style: none; border-width: medium"  >) </TD></TR>
  <TR vAlign=top>
    <TD align=left width="5%" >&nbsp;</TD>
    <TD align=left width="5%" >&nbsp; </TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-top-style:none; border-top-width:medium" align=left width="48%" bordercolor="#E6EFFF" bgcolor="#E6EFFF">&nbsp;
    </TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-top-style:none; border-top-width:medium" align=left width="2%" bordercolor="#E6EFFF" bgcolor="#E6EFFF"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-top-style:none; border-top-width:medium" align=left width="1%" bordercolor="#E6EFFF" bgcolor="#E6EFFF"
    >$</TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-top-style:none; border-top-width:medium" align=right width="10%" bordercolor="#E6EFFF" bgcolor="#E6EFFF"
    >&nbsp;(1,098</TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-top-style:none; border-top-width:medium" align=left width="2%" bordercolor="#E6EFFF" bgcolor="#E6EFFF"
    >) </TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-top-style:none; border-top-width:medium" align=left width="1%" bordercolor="#E6EFFF" bgcolor="#E6EFFF"
    >$</TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-top-style:none; border-top-width:medium" align=right width="10%" bordercolor="#E6EFFF" bgcolor="#E6EFFF"
    >&nbsp;(1,084</TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-top-style:none; border-top-width:medium" align=left width="2%" bordercolor="#E6EFFF" bgcolor="#E6EFFF"
    >) </TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-top-style:none; border-top-width:medium" align=left width="1%" bordercolor="#E6EFFF" bgcolor="#E6EFFF"
    >$</TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" align=right width="10%" bordercolor="#E6EFFF" bgcolor="#E6EFFF"
    >&nbsp;(3,085</TD>
    <TD style="BORDER-BOTTOM: medium none #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" align=left width="2%" bordercolor="#E6EFFF" bgcolor="#E6EFFF"
     >) </TD></TR></TABLE>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0 BCLLIST>

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

  <TR>
    <TD vAlign=top width="5%">(c) </TD>
    <TD>
      <P align=justify>Derivative instruments:</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD>
      <P align=justify>The Company has entered into forward foreign exchange
      contracts and zero-cost collar options in order to reduce the exposure of
      forecasted cash flows in currencies other than the U.S. dollar. The
      forward foreign exchange contracts and the intrinsic value of zero-cost
      collar options 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 gains and losses related to the time value of
      zero-cost collar options are immediately recognized in earnings in the
      same caption as the items being hedged. The forward foreign exchange
      contracts and zero-cost collar options outstanding as at October 2, 2011
      consisted primarily of contracts to reduce the exposure to fluctuations in
      Mexican pesos, Euros, Australian dollars, Canadian dollars, and Pounds
      sterling against the U.S. dollar. As at October 2, 2011, the derivatives
      designated as cash flow hedges were considered to be fully effective with
      no resulting portions being ineffective.</P></TD></TR></TABLE>
<P align=right>GILDAN 2011 REPORT TO SHAREHOLDERS P.83</P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<!--$$/page=--><A name=page_35></A>
<table border="0" cellpadding="0" cellspacing="0" style="border-collapse: collapse" bordercolor="#111111" width="100%">
  <tr>
    <td width="50%"><font size="2">
    <IMG
src="financialsx1x1.jpg" border=0 width="96" height="21"></font></td>
    <td width="50%">
<P align=right><font size="2">NOTES TO CONSOLIDATED FINANCIAL STATEMENTS </font></P>
    </td>
  </tr>
</table>
<P align=justify><B>22. FINANCIAL INSTRUMENTS (continued):</B> </P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0 BCLLIST>

  <TR>
    <TD vAlign=top width="5%">(c) </TD>
    <TD style="border-bottom-style: none; border-bottom-width: medium">
      <P align=justify>Derivative instruments (continued): </P></TD></TR>

  <TR>
    <TD vAlign=top width="5%" style="border-right-style: none; border-right-width: medium">&nbsp;</TD>
    <TD bordercolor="#000000" style="border-style: none; border-width: medium">&nbsp;
      </TD></TR>
  </TABLE>
<div align="right">
<TABLE
style="FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse"
cellSpacing=0 cellPadding=0 width="95%" border=0>

  <TR vAlign=top>
    <TD align=left style="border-top:2px solid #000000; ">&nbsp; </TD>
    <TD align=left width="1%" style="border-top:2px solid #000000; " >&nbsp;</TD>
    <TD align=left width="7%" style="border-top:2px solid #000000; ">&nbsp; </TD>
    <TD align=left width="2%" style="border-top:2px solid #000000; " >&nbsp;</TD>
    <TD align=left width="1%" style="border-top:2px solid #000000; " >&nbsp;</TD>
    <TD align=left width="7%" style="border-top:2px solid #000000; ">&nbsp; </TD>
    <TD align=left width="2%" style="border-top:2px solid #000000; " >&nbsp;</TD>
    <TD align=left width="1%" style="border-top:2px solid #000000; " >&nbsp;</TD>
    <TD align=left width="7%" style="border-top:2px solid #000000; ">&nbsp; </TD>
    <TD align=left width="2%" style="border-top:2px solid #000000; " >&nbsp;</TD>
    <TD align=left width="1%" style="border-top:2px solid #000000; border-bottom:1px solid #000000; border-left-color:#000000; border-right-color:#000000" >&nbsp;</TD>
    <TD align=right width="17%" colSpan=4 style="border-top:2px solid #000000; border-bottom:1px solid #000000; border-left-color:#000000; border-right-color:#000000">Carrying and fair value </TD>
    <TD align=left width="2%" style="border-top:2px solid #000000; border-bottom:1px solid #000000; border-left-color:#000000; border-right-color:#000000" >&nbsp;</TD>
    <TD align=left width="1%" style="border-top:2px solid #000000; border-bottom:1px solid #000000; border-left-color:#000000; border-right-color:#000000" >&nbsp;</TD>
    <TD align=left width="7%" style="border-top:2px solid #000000; border-bottom:1px solid #000000; border-left-color:#000000; border-right-color:#000000">&nbsp; </TD>
    <TD align=left width="2%" style="border-top:2px solid #000000; border-bottom:1px solid #000000; border-left-color:#000000; border-right-color:#000000" >&nbsp;</TD>
    <TD align=left width="1%" style="border-top:2px solid #000000; border-bottom:1px solid #000000; border-left-color:#000000; border-right-color:#000000" >&nbsp;</TD>
    <TD align=right width="7%" style="border-right:medium none #000000; border-top:2px solid #000000; border-bottom:1px solid #000000; border-left-color:#000000">Maturity </TD>
    <TD align=left width="2%" style="border-style:none; border-width:medium; " >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="7%">Notional </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="7%">&nbsp; </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="7%">&nbsp; </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" style="border-top-style: solid; border-top-width: 1" >&nbsp;</TD>
    <TD align=left width="7%" style="border-top-style: solid; border-top-width: 1">&nbsp; </TD>
    <TD align=left width="2%" style="border-top-style: solid; border-top-width: 1" >&nbsp;</TD>
    <TD align=left width="1%" style="border-top-style: solid; border-top-width: 1" >&nbsp;</TD>
    <TD align=right width="7%" style="border-top-style: solid; border-top-width: 1">Accounts </TD>
    <TD align=left width="2%" style="border-top-style: solid; border-top-width: 1" >&nbsp;</TD>
    <TD align=left width="1%" style="border-top-style: solid; border-top-width: 1" >&nbsp;</TD>
    <TD align=left width="7%" style="border-top-style: solid; border-top-width: 1">&nbsp; </TD>
    <TD align=left width="2%" style="border-top-style: solid; border-top-width: 1" >&nbsp;</TD>
    <TD align=left width="1%" style="border-top-style: solid; border-top-width: 1" >&nbsp;</TD>
    <TD align=left width="7%" style="border-right-style: none; border-right-width: medium; border-top-style: solid; border-top-width: 1">&nbsp; </TD>
    <TD align=left width="2%" style="border-style: none; border-width: medium" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="7%">foreign </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="7%">&nbsp; </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="7%">&nbsp; </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="7%">&nbsp; </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="7%">payable </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="7%">&nbsp; </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="7%" style="border-right-style: none; border-right-width: medium">&nbsp; </TD>
    <TD align=left width="2%" style="border-style: none; border-width: medium" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="7%">currency </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="7%">Average </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="7%">Notional </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="7%">Other </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="7%">and </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="7%">&nbsp; </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="7%" style="border-right-style: none; border-right-width: medium">&nbsp; </TD>
    <TD align=left width="2%" style="border-style: none; border-width: medium" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="7%">amount </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="7%">exchange </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="7%">U.S. $ </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="7%">current </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="7%">accrued </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="7%">0 to 6 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="7%" style="border-right-style: none; border-right-width: medium">7 to 12 </TD>
    <TD align=left width="2%" style="border-style: none; border-width: medium" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>October 2, 2011
</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="7%">equivalent </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="7%">rate
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="7%">equivalent </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="7%">assets
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="7%">liabilities </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="7%">months
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-right-style:none; border-right-width:medium" align=right width="7%">months
    </TD>
    <TD style="BORDER-BOTTOM: medium none #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" align=left width="2%"
    >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#FFFFFF colSpan=12>&nbsp;</TD>
    <TD align=left width="2%"  bgColor=#FFFFFF>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#FFFFFF>&nbsp;</TD>
    <TD align=left width="7%" bgColor=#FFFFFF>&nbsp;</TD>
    <TD align=left width="2%"  bgColor=#FFFFFF>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#FFFFFF>&nbsp;</TD>
    <TD align=left width="7%" bgColor=#FFFFFF>&nbsp;</TD>
    <TD align=left width="2%"  bgColor=#FFFFFF>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#FFFFFF>&nbsp;</TD>
    <TD align=left width="7%" bgColor=#FFFFFF style="border-right-style: none; border-right-width: medium">&nbsp;</TD>
    <TD align=left width="2%"  bgColor=#FFFFFF style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff colSpan=12>Forward foreign exchange
      contracts designated as cash flow hedges: </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="7%" bgColor=#e6efff>&nbsp; </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="7%" bgColor=#e6efff>&nbsp; </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="7%" bgColor=#e6efff style="border-right-style: none; border-right-width: medium">&nbsp; </TD>
    <TD align=left width="2%"  bgColor=#e6efff style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; &nbsp; &nbsp;Sell MXN/Buy USD </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="7%">112,800 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="7%">0.0832 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >$</TD>
    <TD align=right width="7%">&nbsp;9,389 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >$</TD>
    <TD align=right width="7%">&nbsp;1,308 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >$</TD>
    <TD align=right width="7%">&nbsp;- </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >$</TD>
    <TD align=right width="7%">&nbsp;515 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >$</TD>
    <TD align=right width="7%" style="border-right-style: none; border-right-width: medium">&nbsp;793 </TD>
    <TD align=left width="2%" style="border-style: none; border-width: medium" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>&nbsp; &nbsp; &nbsp;Sell CAD/Buy USD </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="7%" bgColor=#e6efff>17,100 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="7%" bgColor=#e6efff>1.0438 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="7%" bgColor=#e6efff>17,849 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="7%" bgColor=#e6efff>1,378 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="7%" bgColor=#e6efff>- </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="7%" bgColor=#e6efff>647 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="7%" bgColor=#e6efff style="border-right-style: none; border-right-width: medium">731 </TD>
    <TD align=left width="2%"  bgColor=#e6efff style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; &nbsp; &nbsp;Buy CAD/Sell USD </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="7%">10,006 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="7%">0.9594 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="7%">9,600 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="7%">31 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="7%">(16</TD>
    <TD align=left width="2%" >) </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="7%">13 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="7%" style="border-right-style: none; border-right-width: medium">2 </TD>
    <TD align=left width="2%" style="border-style: none; border-width: medium" >&nbsp;</TD></TR>
  <TR>
    <TD bgColor=#e6efff>&nbsp; </TD>
    <TD width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD width="7%" bgColor=#e6efff>&nbsp; </TD>
    <TD width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD width="7%" bgColor=#e6efff>&nbsp; </TD>
    <TD width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD width="7%" bgColor=#e6efff>&nbsp; </TD>
    <TD width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD width="7%" bgColor=#e6efff>&nbsp; </TD>
    <TD width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD width="7%" bgColor=#e6efff>&nbsp; </TD>
    <TD width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD width="7%" bgColor=#e6efff>&nbsp; </TD>
    <TD width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD width="7%" bgColor=#e6efff style="border-right-style: none; border-right-width: medium">&nbsp; </TD>
    <TD width="2%"  bgColor=#e6efff style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left colSpan=9>Zero-cost collar options designated as cash flows
      hedges: </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="7%">&nbsp; </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="7%">&nbsp; </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="7%">&nbsp; </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="7%" style="border-right-style: none; border-right-width: medium">&nbsp; </TD>
    <TD align=left width="2%" style="border-style: none; border-width: medium" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>&nbsp; &nbsp;Put Options </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="7%" bgColor=#e6efff>&nbsp; </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="7%" bgColor=#e6efff>&nbsp; </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="7%" bgColor=#e6efff>&nbsp; </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="7%" bgColor=#e6efff>&nbsp; </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="7%" bgColor=#e6efff>&nbsp; </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="7%" bgColor=#e6efff>&nbsp; </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="7%" bgColor=#e6efff style="border-right-style: none; border-right-width: medium">&nbsp; </TD>
    <TD align=left width="2%"  bgColor=#e6efff style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; &nbsp; &nbsp;Sell AUD/Buy USD </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="7%">1,500 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="7%">0.9200 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="7%">1,380 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="7%">84 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="7%">- </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="7%">84 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="7%" style="border-right-style: none; border-right-width: medium">- </TD>
    <TD align=left width="2%" style="border-style: none; border-width: medium" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>&nbsp; &nbsp; &nbsp;Sell GBP/Buy USD </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="7%" bgColor=#e6efff>3,900 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="7%" bgColor=#e6efff>1.5636 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="7%" bgColor=#e6efff>6,098 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="7%" bgColor=#e6efff>291 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="7%" bgColor=#e6efff>- </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="7%" bgColor=#e6efff>291 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="7%" bgColor=#e6efff style="border-right-style: none; border-right-width: medium">- </TD>
    <TD align=left width="2%"  bgColor=#e6efff style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; &nbsp; &nbsp;Sell EUR/Buy USD </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="7%">3,000 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="7%">1.3300 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="7%">3,990 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="7%">207 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="7%">- </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="7%">207 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="7%" style="border-right-style: none; border-right-width: medium">- </TD>
    <TD align=left width="2%" style="border-style: none; border-width: medium" >&nbsp;</TD></TR>
  <TR>
    <TD bgColor=#e6efff>&nbsp; </TD>
    <TD width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD width="7%" bgColor=#e6efff>&nbsp; </TD>
    <TD width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD width="7%" bgColor=#e6efff>&nbsp; </TD>
    <TD width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD width="7%" bgColor=#e6efff>&nbsp; </TD>
    <TD width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD width="7%" bgColor=#e6efff>&nbsp; </TD>
    <TD width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD width="7%" bgColor=#e6efff>&nbsp; </TD>
    <TD width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD width="7%" bgColor=#e6efff>&nbsp; </TD>
    <TD width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD width="7%" bgColor=#e6efff style="border-right-style: none; border-right-width: medium">&nbsp; </TD>
    <TD width="2%"  bgColor=#e6efff style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; &nbsp;Call Options </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="7%">&nbsp; </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="7%">&nbsp; </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="7%">&nbsp; </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="7%">&nbsp; </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="7%">&nbsp; </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="7%">&nbsp; </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="7%" style="border-right-style: none; border-right-width: medium">&nbsp; </TD>
    <TD align=left width="2%" style="border-style: none; border-width: medium" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>&nbsp; &nbsp; &nbsp;Sell AUD/Buy USD </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="7%" bgColor=#e6efff>1,500 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="7%" bgColor=#e6efff>1.0193 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="7%" bgColor=#e6efff>1,529 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="7%" bgColor=#e6efff>- </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="7%" bgColor=#e6efff>(56</TD>
    <TD align=left width="2%"  bgColor=#e6efff>) </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="7%" bgColor=#e6efff>(56</TD>
    <TD align=left width="2%"  bgColor=#e6efff>) </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="7%" bgColor=#e6efff style="border-right-style: none; border-right-width: medium">- </TD>
    <TD align=left width="2%"  bgColor=#e6efff style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; &nbsp; &nbsp;Sell GBP/Buy USD </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="7%">3,900 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="7%">1.6259 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="7%">6,341 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="7%">- </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="7%">(118</TD>
    <TD align=left width="2%" >) </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="7%">(118</TD>
    <TD align=left width="2%" >) </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="7%" style="border-right-style: none; border-right-width: medium">- </TD>
    <TD align=left width="2%" style="border-style: none; border-width: medium" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff style="border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000">&nbsp; &nbsp; &nbsp;Sell EUR/Buy USD </TD>
    <TD align=left width="1%"  bgColor=#e6efff style="border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000">&nbsp;</TD>
    <TD align=right width="7%" bgColor=#e6efff style="border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000">3,000 </TD>
    <TD align=left width="2%"  bgColor=#e6efff style="border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000">&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff style="border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000">&nbsp;</TD>
    <TD align=right width="7%" bgColor=#e6efff style="border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000">1.3880 </TD>
    <TD align=left width="2%"  bgColor=#e6efff style="border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000">&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff style="border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000">&nbsp;</TD>
    <TD align=right width="7%" bgColor=#e6efff style="border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000">4,164 </TD>
    <TD align=left width="2%"  bgColor=#e6efff style="border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000">&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff style="border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000">&nbsp;</TD>
    <TD align=right width="7%" bgColor=#e6efff style="border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000">- </TD>
    <TD align=left width="2%"  bgColor=#e6efff style="border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000">&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff style="border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000">&nbsp;</TD>
    <TD align=right width="7%" bgColor=#e6efff style="border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000">(178</TD>
    <TD align=left width="2%"  bgColor=#e6efff style="border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000">) </TD>
    <TD align=left width="1%"  bgColor=#e6efff style="border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000">&nbsp;</TD>
    <TD align=right width="7%" bgColor=#e6efff style="border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000">(178</TD>
    <TD align=left width="2%"  bgColor=#e6efff style="border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000">) </TD>
    <TD align=left width="1%"  bgColor=#e6efff style="border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000">&nbsp;</TD>
    <TD align=right width="7%" bgColor=#e6efff style="border-right-style: none; border-right-width: medium; border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000">- </TD>
    <TD align=left width="2%"  bgColor=#e6efff style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-top-style:solid; border-top-width:1" align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-top-style:solid; border-top-width:1" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-top-style:solid; border-top-width:1" align=left width="7%">&nbsp;
    </TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-top-style:solid; border-top-width:1" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-top-style:solid; border-top-width:1" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-top-style:solid; border-top-width:1" align=left width="7%">&nbsp;
    </TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-top-style:solid; border-top-width:1" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-top-style:solid; border-top-width:1" align=left width="1%"
    >$</TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-top-style:solid; border-top-width:1" align=right
      width="7%">&nbsp;60,340 </TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-top-style:solid; border-top-width:1" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-top-style:solid; border-top-width:1" align=left width="1%"
    >$</TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-top-style:solid; border-top-width:1" align=right
      width="7%">&nbsp;3,299 </TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-top-style:solid; border-top-width:1" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-top-style:solid; border-top-width:1" align=left width="1%"
    >$</TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-top-style:solid; border-top-width:1" align=right
      width="7%">&nbsp;(368</TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-top-style:solid; border-top-width:1" align=left width="2%"
    >) </TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-top-style:solid; border-top-width:1" align=left width="1%"
    >$</TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-top-style:solid; border-top-width:1" align=right
      width="7%">&nbsp;1,405 </TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-top-style:solid; border-top-width:1" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-top-style:solid; border-top-width:1" align=left width="1%"
    >$</TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-right-style:none; border-right-width:medium; border-top-style:solid; border-top-width:1" align=right
      width="7%">&nbsp;1,526 </TD>
    <TD style="BORDER-BOTTOM: medium none #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" align=left width="2%"
    >&nbsp;</TD></TR></TABLE>
</div>
<BR>
<div align="right">
<TABLE
style="FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse"
cellSpacing=0 cellPadding=0 width="95%" border=0>

  <TR vAlign=top>
    <TD align=left style="border-top-style: solid; border-top-width: 2">&nbsp; </TD>
    <TD align=left width="1%" style="border-top-style: solid; border-top-width: 2" >&nbsp;</TD>
    <TD align=left width="7%" style="border-top-style: solid; border-top-width: 2">&nbsp; </TD>
    <TD align=left width="2%" style="border-top-style: solid; border-top-width: 2" >&nbsp;</TD>
    <TD align=left width="1%" style="border-top-style: solid; border-top-width: 2" >&nbsp;</TD>
    <TD align=left width="7%" style="border-top-style: solid; border-top-width: 2">&nbsp; </TD>
    <TD align=left width="2%" style="border-top-style: solid; border-top-width: 2" >&nbsp;</TD>
    <TD align=left width="1%" style="border-top-style: solid; border-top-width: 2" >&nbsp;</TD>
    <TD align=left width="7%" style="border-top-style: solid; border-top-width: 2">&nbsp; </TD>
    <TD align=left width="2%" style="border-top-style: solid; border-top-width: 2" >&nbsp;</TD>
    <TD align=left width="1%" style="border-bottom-style: solid; border-bottom-width: 1; border-top-style:solid; border-top-width:2" bordercolor="#000000" >&nbsp;</TD>
    <TD align=right width="17%" colSpan=4 style="border-bottom-style: solid; border-bottom-width: 1; border-top-style:solid; border-top-width:2" bordercolor="#000000">Carrying and fair value </TD>
    <TD align=left width="2%" style="border-bottom-style: solid; border-bottom-width: 1; border-top-style:solid; border-top-width:2" bordercolor="#000000" >&nbsp;</TD>
    <TD align=left width="1%" style="border-bottom-style: solid; border-bottom-width: 1; border-top-style:solid; border-top-width:2" bordercolor="#000000" >&nbsp;</TD>
    <TD align=left width="7%" style="border-bottom-style: solid; border-bottom-width: 1; border-top-style:solid; border-top-width:2" bordercolor="#000000">&nbsp; </TD>
    <TD align=left width="2%" style="border-bottom-style: solid; border-bottom-width: 1; border-top-style:solid; border-top-width:2" bordercolor="#000000" >&nbsp;</TD>
    <TD align=left width="1%" style="border-bottom-style: solid; border-bottom-width: 1; border-top-style:solid; border-top-width:2" bordercolor="#000000" >&nbsp;</TD>
    <TD align=right width="7%" style="border-right-style: none; border-right-width: medium; border-bottom-style: solid; border-bottom-width: 1; border-top-style:solid; border-top-width:2" bordercolor="#000000">Maturity </TD>
    <TD align=left width="2%" style="border-style: none; border-width: medium" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="7%">Notional </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="7%">&nbsp; </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="7%">&nbsp; </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" style="border-top-style: solid; border-top-width: 1" >&nbsp;</TD>
    <TD align=left width="7%" style="border-top-style: solid; border-top-width: 1">&nbsp; </TD>
    <TD align=left width="2%" style="border-top-style: solid; border-top-width: 1" >&nbsp;</TD>
    <TD align=left width="1%" style="border-top-style: solid; border-top-width: 1" >&nbsp;</TD>
    <TD align=right width="7%" style="border-top-style: solid; border-top-width: 1">Accounts </TD>
    <TD align=left width="2%" style="border-top-style: solid; border-top-width: 1" >&nbsp;</TD>
    <TD align=left width="1%" style="border-top-style: solid; border-top-width: 1" >&nbsp;</TD>
    <TD align=left width="7%" style="border-top-style: solid; border-top-width: 1">&nbsp; </TD>
    <TD align=left width="2%" style="border-top-style: solid; border-top-width: 1" >&nbsp;</TD>
    <TD align=left width="1%" style="border-top-style: solid; border-top-width: 1" >&nbsp;</TD>
    <TD align=left width="7%" style="border-right-style: none; border-right-width: medium; border-top-style: solid; border-top-width: 1">&nbsp; </TD>
    <TD align=left width="2%" style="border-style: none; border-width: medium" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="7%">foreign </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="7%">&nbsp; </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="7%">&nbsp; </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="7%">&nbsp; </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="7%">payable </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="7%">&nbsp; </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="7%" style="border-right-style: none; border-right-width: medium">&nbsp; </TD>
    <TD align=left width="2%" style="border-style: none; border-width: medium" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="7%">currency </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="7%">Average </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="7%">Notional </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="7%">Other </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="7%">and </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="7%">&nbsp; </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="7%" style="border-right-style: none; border-right-width: medium">&nbsp; </TD>
    <TD align=left width="2%" style="border-style: none; border-width: medium" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="7%">amount </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="7%">exchange </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="7%">U.S. $ </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="7%">current </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="7%">accrued </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="7%">0 to 6 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="7%" style="border-right-style: none; border-right-width: medium">7 to 12 </TD>
    <TD align=left width="2%" style="border-style: none; border-width: medium" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>October 3, 2010
</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="7%">equivalent </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="7%">rate
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="7%">equivalent </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="7%">assets
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="7%">liabilities </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="7%">months
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-right-style:none; border-right-width:medium" align=right width="7%">months
    </TD>
    <TD style="BORDER-BOTTOM: medium none #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" align=left width="2%"
    >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#FFFFFF colSpan=12>&nbsp;</TD>
    <TD align=left width="2%"  bgColor=#FFFFFF>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#FFFFFF>&nbsp;</TD>
    <TD align=left width="7%" bgColor=#FFFFFF>&nbsp;</TD>
    <TD align=left width="2%"  bgColor=#FFFFFF>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#FFFFFF>&nbsp;</TD>
    <TD align=left width="7%" bgColor=#FFFFFF>&nbsp;</TD>
    <TD align=left width="2%"  bgColor=#FFFFFF>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#FFFFFF>&nbsp;</TD>
    <TD align=left width="7%" bgColor=#FFFFFF style="border-right-style: none; border-right-width: medium">&nbsp;</TD>
    <TD align=left width="2%"  bgColor=#FFFFFF style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff colSpan=12>Forward foreign exchange
      contracts designated as cash flow hedges: </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="7%" bgColor=#e6efff>&nbsp; </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="7%" bgColor=#e6efff>&nbsp; </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="7%" bgColor=#e6efff style="border-right-style: none; border-right-width: medium">&nbsp; </TD>
    <TD align=left width="2%"  bgColor=#e6efff style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; &nbsp; &nbsp;Sell AUD/Buy USD </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="7%">7,908 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="7%">0.8704 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >$</TD>
    <TD align=right width="7%">&nbsp;6,883 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >$</TD>
    <TD align=right width="7%">&nbsp;- </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >$</TD>
    <TD align=right width="7%">&nbsp;(570</TD>
    <TD align=left width="2%" >) </TD>
    <TD align=left width="1%" >$</TD>
    <TD align=right width="7%">&nbsp;(334</TD>
    <TD align=left width="2%" >) </TD>
    <TD align=left width="1%" >$</TD>
    <TD align=right width="7%" style="border-right-style: none; border-right-width: medium">&nbsp;(236</TD>
    <TD align=left width="2%" style="border-style: none; border-width: medium" >) </TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>&nbsp; &nbsp; &nbsp;Sell GBP/Buy USD </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="7%" bgColor=#e6efff>24,900 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="7%" bgColor=#e6efff>1.5443 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="7%" bgColor=#e6efff>38,454 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="7%" bgColor=#e6efff>- </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="7%" bgColor=#e6efff>(511</TD>
    <TD align=left width="2%"  bgColor=#e6efff>) </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="7%" bgColor=#e6efff>(210</TD>
    <TD align=left width="2%"  bgColor=#e6efff>) </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="7%" bgColor=#e6efff style="border-right-style: none; border-right-width: medium">(301</TD>
    <TD align=left width="2%"  bgColor=#e6efff style="border-style: none; border-width: medium">) </TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; &nbsp; &nbsp;Sell EUR/Buy USD </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="7%">33,150 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="7%">1.2964 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="7%">42,977 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="7%">- </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="7%">(2,007</TD>
    <TD align=left width="2%" >) </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="7%">(813</TD>
    <TD align=left width="2%" >) </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="7%" style="border-right-style: none; border-right-width: medium">(1,194</TD>
    <TD align=left width="2%" style="border-style: none; border-width: medium" >) </TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>&nbsp; &nbsp; &nbsp;Sell CAD/Buy USD </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="7%" bgColor=#e6efff>16,000 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="7%" bgColor=#e6efff>0.9938 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="7%" bgColor=#e6efff>15,900 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="7%" bgColor=#e6efff>393 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="7%" bgColor=#e6efff>- </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="7%" bgColor=#e6efff>393 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="7%" bgColor=#e6efff style="border-right-style: none; border-right-width: medium">- </TD>
    <TD align=left width="2%"  bgColor=#e6efff style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left style="border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000">&nbsp; &nbsp; &nbsp;Buy CAD/Sell USD </TD>
    <TD align=left width="1%" style="border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000" >&nbsp;</TD>
    <TD align=right width="7%" style="border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000">21,222 </TD>
    <TD align=left width="2%" style="border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000" >&nbsp;</TD>
    <TD align=left width="1%" style="border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000" >&nbsp;</TD>
    <TD align=right width="7%" style="border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000">0.9330 </TD>
    <TD align=left width="2%" style="border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000" >&nbsp;</TD>
    <TD align=left width="1%" style="border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000" >&nbsp;</TD>
    <TD align=right width="7%" style="border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000">19,800 </TD>
    <TD align=left width="2%" style="border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000" >&nbsp;</TD>
    <TD align=left width="1%" style="border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000" >&nbsp;</TD>
    <TD align=right width="7%" style="border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000">706 </TD>
    <TD align=left width="2%" style="border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000" >&nbsp;</TD>
    <TD align=left width="1%" style="border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000" >&nbsp;</TD>
    <TD align=right width="7%" style="border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000">- </TD>
    <TD align=left width="2%" style="border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000" >&nbsp;</TD>
    <TD align=left width="1%" style="border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000" >&nbsp;</TD>
    <TD align=right width="7%" style="border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000">368 </TD>
    <TD align=left width="2%" style="border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000" >&nbsp;</TD>
    <TD align=left width="1%" style="border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000" >&nbsp;</TD>
    <TD align=right width="7%" style="border-right-style: none; border-right-width: medium; border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000">338 </TD>
    <TD align=left width="2%" style="border-style: none; border-width: medium" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-top-style:solid; border-top-width:1" align=left
      bgColor=#e6efff>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-top-style:solid; border-top-width:1" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-top-style:solid; border-top-width:1" align=left width="7%"
    bgColor=#e6efff>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-top-style:solid; border-top-width:1" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-top-style:solid; border-top-width:1" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-top-style:solid; border-top-width:1" align=left width="7%"
    bgColor=#e6efff>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-top-style:solid; border-top-width:1" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-top-style:solid; border-top-width:1" align=left width="1%"
     bgColor=#e6efff>$</TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-top-style:solid; border-top-width:1" align=right width="7%"
    bgColor=#e6efff>&nbsp;124,014 </TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-top-style:solid; border-top-width:1" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-top-style:solid; border-top-width:1" align=left width="1%"
     bgColor=#e6efff>$</TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-top-style:solid; border-top-width:1" align=right width="7%"
    bgColor=#e6efff>&nbsp;1,099 </TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-top-style:solid; border-top-width:1" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-top-style:solid; border-top-width:1" align=left width="1%"
     bgColor=#e6efff>$</TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-top-style:solid; border-top-width:1" align=right width="7%"
    bgColor=#e6efff>&nbsp;(3,088</TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-top-style:solid; border-top-width:1" align=left width="2%"
     bgColor=#e6efff>) </TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-top-style:solid; border-top-width:1" align=left width="1%"
     bgColor=#e6efff>$</TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-top-style:solid; border-top-width:1" align=right width="7%"
    bgColor=#e6efff>&nbsp;(596</TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-top-style:solid; border-top-width:1" align=left width="2%"
     bgColor=#e6efff>) </TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-top-style:solid; border-top-width:1" align=left width="1%"
     bgColor=#e6efff>$</TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-right-style:none; border-right-width:medium; border-top-style:solid; border-top-width:1" align=right width="7%"
    bgColor=#e6efff>&nbsp;(1,393</TD>
    <TD style="BORDER-BOTTOM: medium none #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" align=left width="2%"
     bgColor=#e6efff>) </TD></TR></TABLE>
</div>
<BR>
<P align=right>GILDAN 2011 REPORT TO SHAREHOLDERS P.84</P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<table border="0" cellpadding="0" cellspacing="0" style="border-collapse: collapse" bordercolor="#111111" width="100%">
  <tr>
    <td width="50%"><font size="2">
    <IMG
src="financialsx1x1.jpg" border=0 width="96" height="21"></font></td>
    <td width="50%">
<P align=right><font size="2">NOTES TO CONSOLIDATED FINANCIAL STATEMENTS </font></P>
    </td>
  </tr>
</table>
<P align=justify><B>22. FINANCIAL INSTRUMENTS (continued):</B><BR></P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0 BCLLIST>

  <TR>
    <TD vAlign=top width="5%">(c) </TD>
    <TD>
      <P align=justify>Derivative instruments (continued):</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD>
      <P align=justify>During fiscal 2011, the Company entered into a series of
      interest rate swap contracts to fix the variable interest rates on a
      designated portion of the borrowings under the revolving long-term credit
      facility. As at October 2, 2011, the interest rate swap 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 interest rate swap contracts are included in other
      comprehensive income, and are recognized in earnings as a charge or credit
      to financial expense, in the same period as the interest payments on the
      amounts drawn under the revolving long- term credit facility are
      recognized. The following table summarizes the outstanding interest rate
      swap contracts as at October 2, 2011:</P></TD></TR></TABLE><BR>
<div align="right">
<TABLE
style="FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse"
cellSpacing=0 cellPadding=0 width="95%" border=0>

  <TR vAlign=top>
    <TD align=left style="border-top-style: solid; border-top-width: 2" valign="bottom">&nbsp;
    </TD>
    <TD align=left width="1%" style="border-top-style: solid; border-top-width: 2" valign="bottom">&nbsp;</TD>
    <TD align=left width="11%" style="border-top-style: solid; border-top-width: 2" valign="bottom">&nbsp;
     </TD>
    <TD align=left width="2%" style="border-top-style: solid; border-top-width: 2" valign="bottom">&nbsp;</TD>
    <TD align=left width="1%" style="border-top-style: solid; border-top-width: 2" valign="bottom">&nbsp;</TD>
    <TD align=left width="11%" style="border-top-style: solid; border-top-width: 2" nowrap valign="bottom">&nbsp;
     </TD>
    <TD align=left width="2%" style="border-top-style: solid; border-top-width: 2" valign="bottom">&nbsp;</TD>
    <TD align=left width="1%" style="border-top-style: solid; border-top-width: 2" valign="bottom">&nbsp;</TD>
    <TD align=right width="11%" style="border-top-style: solid; border-top-width: 2" valign="bottom">&nbsp;
    </TD>
    <TD align=left width="2%" style="border-top-style: solid; border-top-width: 2" valign="bottom">&nbsp;</TD>
    <TD align=left width="1%" style="border-top-style: solid; border-top-width: 2" valign="bottom">&nbsp;</TD>
    <TD align=right width="11%" style="border-top-style: solid; border-top-width: 2" valign="bottom">&nbsp;
    </TD>
    <TD align=left width="2%" style="border-top-style: solid; border-top-width: 2" valign="bottom">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-top-style:solid; border-top-width:2" align=left
    width="1%" valign="bottom">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-top-style:solid; border-top-width:2; border-right-style:none; border-right-width:medium" align=right width="25%"
    colSpan=4 valign="bottom">Carrying and fair value </TD>
    <TD style="BORDER-BOTTOM: medium none #000000; ; border-top-style:none; border-top-width:medium; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium" align=left
    width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left valign="bottom">
    Notional <br>
    amount </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="1%" valign="bottom">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="11%" valign="bottom">Maturity date </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="2%" valign="bottom">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="1%" valign="bottom">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="11%" nowrap valign="bottom">
    Pay /
      Receive </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="2%" valign="bottom">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="1%" valign="bottom">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="11%" valign="bottom">
    Fixed <br>
    rate
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="2%" valign="bottom">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="1%" valign="bottom">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="11%" valign="bottom">
    Floating <br>
    rate
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="2%" valign="bottom">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="1%" valign="bottom">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="11%" valign="bottom">
    Other current assets
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="2%" valign="bottom">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="1%" valign="bottom">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-right-style:none; border-right-width:medium" align=right
      width="11%" valign="bottom">Accounts payable and accrued
    liabilities</TD>
    <TD style="BORDER-BOTTOM: medium none #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" align=left
    width="2%">&nbsp;</TD></TR>
  <TR>
    <TD align=left>&nbsp; </TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%">&nbsp; </TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%" nowrap>&nbsp; </TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%">&nbsp; </TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%">&nbsp; </TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%">&nbsp; </TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%" style="border-right-style: none; border-right-width: medium">&nbsp; </TD>
    <TD width="2%" style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgcolor="#E6EFFF">&nbsp; </TD>
    <TD align=left width="1%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD align=left width="11%" bgcolor="#E6EFFF">&nbsp; </TD>
    <TD align=left width="2%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD align=left width="1%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD align=right width="11%" bgcolor="#E6EFFF" nowrap>Pay fixed rate / </TD>
    <TD align=left width="2%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD align=left width="1%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD align=left width="11%" bgcolor="#E6EFFF">&nbsp; </TD>
    <TD align=left width="2%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD align=left width="1%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD align=right width="11%" bgcolor="#E6EFFF">1-month </TD>
    <TD align=left width="2%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD align=left width="1%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD align=left width="11%" bgcolor="#E6EFFF">&nbsp; </TD>
    <TD align=left width="2%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD align=left width="1%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD align=left width="11%" bgcolor="#E6EFFF" style="border-right-style: none; border-right-width: medium">&nbsp; </TD>
    <TD align=left width="2%" bgcolor="#E6EFFF" style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgcolor="#E6EFFF">$ 100,000 </TD>
    <TD align=left width="1%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD align=right width="11%" bgcolor="#E6EFFF">June 3, 2016 </TD>
    <TD align=left width="2%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD align=left width="1%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD align=right width="11%" bgcolor="#E6EFFF" nowrap>Receive floating rate </TD>
    <TD align=left width="2%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD align=left width="1%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD align=right width="11%" bgcolor="#E6EFFF">1.88% </TD>
    <TD align=left width="2%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD align=left width="1%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD align=right width="11%" bgcolor="#E6EFFF">U.S. LIBOR </TD>
    <TD align=left width="2%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD align=left width="1%" bgcolor="#E6EFFF">$</TD>
    <TD align=right width="11%" bgcolor="#E6EFFF">&nbsp;- </font> </TD>
    <TD align=left width="2%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD align=left width="1%" bgcolor="#E6EFFF">$</TD>
    <TD align=right width="11%" bgcolor="#E6EFFF" style="border-right-style: none; border-right-width: medium">&nbsp;(3,623</TD>
    <TD align=left width="2%" bgcolor="#E6EFFF" style="border-style: none; border-width: medium">) </font> </TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; </TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=left width="11%">&nbsp; </TD>
    <TD align=left width="2%">&nbsp;</TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="11%" nowrap>Pay fixed rate / </TD>
    <TD align=left width="2%">&nbsp;</TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=left width="11%">&nbsp; </TD>
    <TD align=left width="2%">&nbsp;</TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="11%">1-month </TD>
    <TD align=left width="2%">&nbsp;</TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=left width="11%">&nbsp; </TD>
    <TD align=left width="2%">&nbsp;</TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=left width="11%" style="border-right-style: none; border-right-width: medium">&nbsp; </TD>
    <TD align=left width="2%" style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp;&nbsp;&nbsp;&nbsp; 15,000 </TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="11%">June 3, 2016 </TD>
    <TD align=left width="2%">&nbsp;</TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="11%" nowrap>Receive floating rate </TD>
    <TD align=left width="2%">&nbsp;</TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="11%">1.10% </TD>
    <TD align=left width="2%">&nbsp;</TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="11%">U.S. LIBOR </TD>
    <TD align=left width="2%">&nbsp;</TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="11%">- </TD>
    <TD align=left width="2%">&nbsp;</TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="11%" style="border-right-style: none; border-right-width: medium">(13</TD>
    <TD align=left width="2%" style="border-style: none; border-width: medium">) </font> </TD></TR>
  <TR vAlign=top>
    <TD align=left bgcolor="#E6EFFF">&nbsp; </TD>
    <TD align=left width="1%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD align=left width="11%" bgcolor="#E6EFFF">&nbsp; </TD>
    <TD align=left width="2%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD align=left width="1%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD align=right width="11%" bgcolor="#E6EFFF" nowrap>Pay fixed rate / </TD>
    <TD align=left width="2%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD align=left width="1%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD align=left width="11%" bgcolor="#E6EFFF">&nbsp; </TD>
    <TD align=left width="2%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD align=left width="1%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD align=right width="11%" bgcolor="#E6EFFF">1-month </TD>
    <TD align=left width="2%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD align=left width="1%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD align=left width="11%" bgcolor="#E6EFFF">&nbsp; </TD>
    <TD align=left width="2%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD align=left width="1%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD align=left width="11%" bgcolor="#E6EFFF" style="border-right-style: none; border-right-width: medium">&nbsp; </TD>
    <TD align=left width="2%" bgcolor="#E6EFFF" style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left bgcolor="#E6EFFF">
    &nbsp;&nbsp;&nbsp;&nbsp; 10,000 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="1%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="11%" bgcolor="#E6EFFF">
    June
      3, 2016 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="2%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="1%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="11%" bgcolor="#E6EFFF" nowrap>Receive floating rate </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="2%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="1%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="11%" bgcolor="#E6EFFF">
    1.08%
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="2%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="1%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="11%" bgcolor="#E6EFFF">
    U.S.
      LIBOR </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="2%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="1%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="11%" bgcolor="#E6EFFF">
    - </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="2%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    width="1%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-right-style:none; border-right-width:medium" align=right width="11%" bgcolor="#E6EFFF">
    (3</TD>
    <TD style="BORDER-BOTTOM: medium none #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" align=left width="2%" bgcolor="#E6EFFF">)
    </font>
</TD></TR>
  <TR>
    <TD align=left>&nbsp; </TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%">&nbsp; </TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%" nowrap>&nbsp; </TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%">&nbsp; </TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%">&nbsp; </TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%">&nbsp; </TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%" style="border-right-style: none; border-right-width: medium">&nbsp; </TD>
    <TD width="2%" style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left>$ 125,000 </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="11%">&nbsp;

    </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left
    width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="11%" nowrap>&nbsp;

    </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left
    width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="11%">&nbsp;

    </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left
    width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="11%">&nbsp;

    </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left
    width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%">
    $</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right
      width="11%">&nbsp;- </font> </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left
    width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%">
    $</TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-right-style:none; border-right-width:medium" align=right
      width="11%">&nbsp;(3,639</TD>
    <TD style="BORDER-BOTTOM: medium none #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" align=left width="2%">) </font>
  </TD></TR></TABLE>
</div>
<P align=justify><B>23. CAPITAL DISCLOSURES:</B><BR></P>
<P align=justify>The Company&#146;s objective in managing capital is to ensure
sufficient liquidity to pursue its organic growth strategy and undertake
selective acquisitions, while at the same time taking a conservative approach
towards financial leverage and management of financial risk.</P>
<P align=justify>The Company&#146;s capital is composed of net debt and shareholders&#146;
equity. Net debt consists of interest-bearing debt less cash and cash
equivalents. The Company&#146;s primary uses of capital are to finance capital
expenditures for manufacturing and distribution facilities, working capital
requirements, payment of dividends, and business acquisitions. The Company
currently funds these requirements out of its internally-generated cash flows
and the periodic use of its revolving long-term bank credit facility. </P>
<P align=justify>The primary measure used by the Company to monitor its
financial leverage is its ratio of net debt to earnings before interest, taxes,
depreciation and amortization, non-controlling interest, and restructuring and
acquisition-related costs (&#147;EBITDA&#148;), which it aims to maintain at less than a
maximum of 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 2, 2011,
October 3, 2010 and October 4, 2009 were as follows: </P>
<P align=right>GILDAN 2011 REPORT TO SHAREHOLDERS P.85</P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<!--$$/page=-->
<table border="0" cellpadding="0" cellspacing="0" style="border-collapse: collapse" bordercolor="#111111" width="100%">
  <tr>
    <td width="50%"><font size="2">
    <IMG
src="financialsx1x1.jpg" border=0 width="96" height="21"></font></td>
    <td width="50%">
<P align=right><font size="2">NOTES TO CONSOLIDATED FINANCIAL STATEMENTS </font></P>
    </td>
  </tr>
</table>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD align=left>&nbsp;</TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=left width="10%">&nbsp;</TD>
    <TD align=left width="2%">&nbsp;</TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=left width="10%">&nbsp;</TD>
    <TD align=left width="2%">&nbsp;</TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=left width="10%" style="border-right-style: none; border-right-width: medium">&nbsp;</TD>
    <TD align=left width="2%" style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left><B>23. CAPITAL DISCLOSURES (continued):</B> </TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=left width="10%">&nbsp; </TD>
    <TD align=left width="2%">&nbsp;</TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=left width="10%">&nbsp; </TD>
    <TD align=left width="2%">&nbsp;</TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=left width="10%" style="border-right-style: none; border-right-width: medium">&nbsp; </TD>
    <TD align=left width="2%" style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bordercolor="#000000">&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" width="1%" bordercolor="#000000">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" width="10%" bordercolor="#000000">&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" width="2%" bordercolor="#000000">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" width="1%" bordercolor="#000000">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" width="10%" bordercolor="#000000">&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" width="2%" bordercolor="#000000">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" width="1%" bordercolor="#000000">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-right-style:none; border-right-width:medium" width="10%" bordercolor="#000000">&nbsp; </TD>
    <TD style="BORDER-BOTTOM: medium none #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left style="border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000">&nbsp; </TD>
    <TD align=left width="1%" style="border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000">&nbsp;</TD>
    <TD align=right width="10%" style="border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000">2011 </TD>
    <TD align=left width="2%" style="border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000">&nbsp;</TD>
    <TD align=left width="1%" style="border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000">&nbsp;</TD>
    <TD align=right width="10%" style="border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000">2010 </TD>
    <TD align=left width="2%" style="border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000">&nbsp;</TD>
    <TD align=left width="1%" style="border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000">&nbsp;</TD>
    <TD align=right width="10%" style="border-right-style: none; border-right-width: medium; border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000">2009 </TD>
    <TD align=left width="2%" style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff style="border-top-style: solid; border-top-width: 1" bordercolor="#000000">Current portion of long-term debt </TD>
    <TD align=left width="1%" bgColor=#e6efff style="border-top-style: solid; border-top-width: 1" bordercolor="#000000">$</TD>
    <TD align=right width="10%" bgColor=#e6efff style="border-top-style: solid; border-top-width: 1" bordercolor="#000000">&nbsp;- </TD>
    <TD align=left width="2%" bgColor=#e6efff style="border-top-style: solid; border-top-width: 1" bordercolor="#000000">&nbsp;</TD>
    <TD align=left width="1%" bgColor=#e6efff style="border-top-style: solid; border-top-width: 1" bordercolor="#000000">$</TD>
    <TD align=right width="10%" bgColor=#e6efff style="border-top-style: solid; border-top-width: 1" bordercolor="#000000">&nbsp;- </TD>
    <TD align=left width="2%" bgColor=#e6efff style="border-top-style: solid; border-top-width: 1" bordercolor="#000000">&nbsp;</TD>
    <TD align=left width="1%" bgColor=#e6efff style="border-top-style: solid; border-top-width: 1" bordercolor="#000000">$</TD>
    <TD align=right width="10%" bgColor=#e6efff style="border-right-style: none; border-right-width: medium; border-top-style: solid; border-top-width: 1" bordercolor="#000000">&nbsp;2,803 </TD>
    <TD align=left width="2%" bgColor=#e6efff style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bordercolor="#000000">Long-term debt </TD>
    <TD align=left width="1%" bordercolor="#000000">&nbsp;</TD>
    <TD align=right width="10%" bordercolor="#000000">209,000 </TD>
    <TD align=left width="2%" bordercolor="#000000">&nbsp;</TD>
    <TD align=left width="1%" bordercolor="#000000">&nbsp;</TD>
    <TD align=right width="10%" bordercolor="#000000">- </TD>
    <TD align=left width="2%" bordercolor="#000000">&nbsp;</TD>
    <TD align=left width="1%" bordercolor="#000000">&nbsp;</TD>
    <TD align=right width="10%" style="border-right-style: none; border-right-width: medium" bordercolor="#000000">1,584 </TD>
    <TD align=left width="2%" style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff style="border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000">Less: cash and cash equivalents </TD>
    <TD align=left width="1%" bgColor=#e6efff style="border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000">&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff style="border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000">(88,802</TD>
    <TD align=left width="2%" bgColor=#e6efff style="border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000">) </TD>
    <TD align=left width="1%" bgColor=#e6efff style="border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000">&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff style="border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000">(258,442</TD>
    <TD align=left width="2%" bgColor=#e6efff style="border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000">) </TD>
    <TD align=left width="1%" bgColor=#e6efff style="border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000">&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff style="border-right-style: none; border-right-width: medium; border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000">(99,732</TD>
    <TD align=left width="2%" bgColor=#e6efff style="border-style: none; border-width: medium">) </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-top-style:solid; border-top-width:1" align=left bordercolor="#000000">Net debt (Cash in
      excess of total indebtedness) </TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-top-style:solid; border-top-width:1" align=left width="1%" bordercolor="#000000">$</TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-top-style:solid; border-top-width:1" align=right
      width="10%" bordercolor="#000000">&nbsp;120,198 </TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-top-style:solid; border-top-width:1" align=left
    width="2%" bordercolor="#000000">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-top-style:solid; border-top-width:1" align=left width="1%" bordercolor="#000000">$</TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-top-style:solid; border-top-width:1" align=right
      width="10%" bordercolor="#000000">&nbsp;(258,442</TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-top-style:solid; border-top-width:1" align=left width="2%" bordercolor="#000000">) </TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-top-style:solid; border-top-width:1" align=left width="1%" bordercolor="#000000">$</TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-right-style:none; border-right-width:medium; border-top-style:solid; border-top-width:1" align=right
      width="10%" bordercolor="#000000">&nbsp;(95,345</TD>
    <TD style="BORDER-BOTTOM: medium none #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" align=left width="2%">)
</TD></TR>
  <TR>
    <TD bgColor=#ffffff bordercolor="#000000">&nbsp; </TD>
    <TD width="1%" bgColor=#ffffff bordercolor="#000000">&nbsp;</TD>
    <TD width="10%" bgColor=#ffffff bordercolor="#000000">&nbsp; </TD>
    <TD width="2%" bgColor=#ffffff bordercolor="#000000">&nbsp;</TD>
    <TD width="1%" bgColor=#ffffff bordercolor="#000000">&nbsp;</TD>
    <TD width="10%" bgColor=#ffffff bordercolor="#000000">&nbsp; </TD>
    <TD width="2%" bgColor=#ffffff bordercolor="#000000">&nbsp;</TD>
    <TD width="1%" bgColor=#ffffff bordercolor="#000000">&nbsp;</TD>
    <TD width="10%" bgColor=#ffffff style="border-right-style: none; border-right-width: medium" bordercolor="#000000">&nbsp; </TD>
    <TD width="2%" bgColor=#ffffff style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#ffffff bordercolor="#000000">&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" width="1%"
    bgColor=#ffffff bordercolor="#000000">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" width="10%"
      bgColor=#ffffff bordercolor="#000000">&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" width="2%"
    bgColor=#ffffff bordercolor="#000000">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" width="1%"
    bgColor=#ffffff bordercolor="#000000">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" width="10%"
      bgColor=#ffffff bordercolor="#000000">&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" width="2%"
    bgColor=#ffffff bordercolor="#000000">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" width="1%"
    bgColor=#ffffff bordercolor="#000000">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-right-style:none; border-right-width:medium" width="10%"
      bgColor=#ffffff bordercolor="#000000">&nbsp; </TD>
    <TD style="BORDER-BOTTOM: medium none #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" width="2%"
    bgColor=#ffffff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#ffffff style="border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000">&nbsp; </TD>
    <TD align=left width="1%" bgColor=#ffffff style="border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000">&nbsp;</TD>
    <TD align=right width="36%" bgColor=#ffffff colSpan=7 style="border-right-style: none; border-right-width: medium; border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000">For the last four
      quarters ended on </TD>
    <TD align=left width="2%" bgColor=#ffffff style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#ffffff style="border-top-style: solid; border-top-width: 1" bordercolor="#000000">&nbsp; </TD>
    <TD align=left width="1%" bgColor=#ffffff style="border-top-style: solid; border-top-width: 1" bordercolor="#000000">&nbsp;</TD>
    <TD align=right width="10%" bgColor=#ffffff style="border-top-style: solid; border-top-width: 1" bordercolor="#000000">October 2, </TD>
    <TD align=left width="2%" bgColor=#ffffff style="border-top-style: solid; border-top-width: 1" bordercolor="#000000">&nbsp;</TD>
    <TD align=left width="1%" bgColor=#ffffff style="border-top-style: solid; border-top-width: 1" bordercolor="#000000">&nbsp;</TD>
    <TD align=right width="10%" bgColor=#ffffff style="border-top-style: solid; border-top-width: 1" bordercolor="#000000">October 3, </TD>
    <TD align=left width="2%" bgColor=#ffffff style="border-top-style: solid; border-top-width: 1" bordercolor="#000000">&nbsp;</TD>
    <TD align=left width="1%" bgColor=#ffffff style="border-top-style: solid; border-top-width: 1" bordercolor="#000000">&nbsp;</TD>
    <TD align=right width="10%" bgColor=#ffffff style="border-right-style: none; border-right-width: medium; border-top-style: solid; border-top-width: 1" bordercolor="#000000">October 4, </TD>
    <TD align=left width="2%" bgColor=#ffffff style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: 1px solid #000000; " align=left
      bgColor=#ffffff bordercolor="#000000">&nbsp; </TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; " align=left width="1%"
    bgColor=#ffffff bordercolor="#000000">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; " align=right width="10%"
    bgColor=#ffffff bordercolor="#000000">2011 </TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; " align=left width="2%"
    bgColor=#ffffff bordercolor="#000000">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; " align=left width="1%"
    bgColor=#ffffff bordercolor="#000000">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; " align=right width="10%"
    bgColor=#ffffff bordercolor="#000000">2010 </TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; " align=left width="2%"
    bgColor=#ffffff bordercolor="#000000">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; " align=left width="1%"
    bgColor=#ffffff bordercolor="#000000">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-right-style:none; border-right-width:medium" align=right width="10%"
    bgColor=#ffffff bordercolor="#000000">2009 </TD>
    <TD style="BORDER-BOTTOM: medium none #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" align=left width="2%"
    bgColor=#ffffff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff bordercolor="#000000">Net earnings </TD>
    <TD align=left width="1%" bgColor=#e6efff bordercolor="#000000">$</TD>
    <TD align=right width="10%" bgColor=#e6efff bordercolor="#000000">&nbsp;239,904 </TD>
    <TD align=left width="2%" bgColor=#e6efff bordercolor="#000000">&nbsp;</TD>
    <TD align=left width="1%" bgColor=#e6efff bordercolor="#000000">$</TD>
    <TD align=right width="10%" bgColor=#e6efff bordercolor="#000000">&nbsp;198,245 </TD>
    <TD align=left width="2%" bgColor=#e6efff bordercolor="#000000">&nbsp;</TD>
    <TD align=left width="1%" bgColor=#e6efff bordercolor="#000000">$</TD>
    <TD align=right width="10%" bgColor=#e6efff style="border-right-style: none; border-right-width: medium; " bordercolor="#000000">&nbsp;95,329 </TD>
    <TD align=left width="2%" bgColor=#e6efff style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bordercolor="#000000">Restructuring and acquisition-related costs </TD>
    <TD align=left width="1%" bordercolor="#000000">&nbsp;</TD>
    <TD align=right width="10%" bordercolor="#000000">8,465 </TD>
    <TD align=left width="2%" bordercolor="#000000">&nbsp;</TD>
    <TD align=left width="1%" bordercolor="#000000">&nbsp;</TD>
    <TD align=right width="10%" bordercolor="#000000">8,705 </TD>
    <TD align=left width="2%" bordercolor="#000000">&nbsp;</TD>
    <TD align=left width="1%" bordercolor="#000000">&nbsp;</TD>
    <TD align=right width="10%" style="border-right-style: none; border-right-width: medium" bordercolor="#000000">6,199 </TD>
    <TD align=left width="2%" style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff bordercolor="#000000">Depreciation and amortization </TD>
    <TD align=left width="1%" bgColor=#e6efff bordercolor="#000000">&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff bordercolor="#000000">79,808 </TD>
    <TD align=left width="2%" bgColor=#e6efff bordercolor="#000000">&nbsp;</TD>
    <TD align=left width="1%" bgColor=#e6efff bordercolor="#000000">&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff bordercolor="#000000">66,472 </TD>
    <TD align=left width="2%" bgColor=#e6efff bordercolor="#000000">&nbsp;</TD>
    <TD align=left width="1%" bgColor=#e6efff bordercolor="#000000">&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff style="border-right-style: none; border-right-width: medium" bordercolor="#000000">65,407 </TD>
    <TD align=left width="2%" bgColor=#e6efff style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bordercolor="#000000">Variation of depreciation included in inventories </TD>
    <TD align=left width="1%" bordercolor="#000000">&nbsp;</TD>
    <TD align=right width="10%" bordercolor="#000000">(3,423</TD>
    <TD align=left width="2%" bordercolor="#000000">) </TD>
    <TD align=left width="1%" bordercolor="#000000">&nbsp;</TD>
    <TD align=right width="10%" bordercolor="#000000">2,725 </TD>
    <TD align=left width="2%" bordercolor="#000000">&nbsp;</TD>
    <TD align=left width="1%" bordercolor="#000000">&nbsp;</TD>
    <TD align=right width="10%" style="border-right-style: none; border-right-width: medium" bordercolor="#000000">(2,437</TD>
    <TD align=left width="2%" style="border-style: none; border-width: medium">) </TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff bordercolor="#000000">Interest, net </TD>
    <TD align=left width="1%" bgColor=#e6efff bordercolor="#000000">&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff bordercolor="#000000">2,856 </TD>
    <TD align=left width="2%" bgColor=#e6efff bordercolor="#000000">&nbsp;</TD>
    <TD align=left width="1%" bgColor=#e6efff bordercolor="#000000">&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff bordercolor="#000000">436 </TD>
    <TD align=left width="2%" bgColor=#e6efff bordercolor="#000000">&nbsp;</TD>
    <TD align=left width="1%" bgColor=#e6efff bordercolor="#000000">&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff style="border-right-style: none; border-right-width: medium" bordercolor="#000000">1,824 </TD>
    <TD align=left width="2%" bgColor=#e6efff style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bordercolor="#000000">Income tax recovery </TD>
    <TD align=left width="1%" bordercolor="#000000">&nbsp;</TD>
    <TD align=right width="10%" bordercolor="#000000">(15,742</TD>
    <TD align=left width="2%" bordercolor="#000000">) </TD>
    <TD align=left width="1%" bordercolor="#000000">&nbsp;</TD>
    <TD align=right width="10%" bordercolor="#000000">(1,904</TD>
    <TD align=left width="2%" bordercolor="#000000">) </TD>
    <TD align=left width="1%" bordercolor="#000000">&nbsp;</TD>
    <TD align=right width="10%" style="border-right-style: none; border-right-width: medium" bordercolor="#000000">(5,786</TD>
    <TD align=left width="2%" style="border-style: none; border-width: medium">) </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      bgColor=#e6efff bordercolor="#000000">Non-controlling interest in consolidated joint venture </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    bgColor=#e6efff bordercolor="#000000">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="10%"
    bgColor=#e6efff bordercolor="#000000">504 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    bgColor=#e6efff bordercolor="#000000">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    bgColor=#e6efff bordercolor="#000000">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="10%"
    bgColor=#e6efff bordercolor="#000000">3,786 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    bgColor=#e6efff bordercolor="#000000">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    bgColor=#e6efff bordercolor="#000000">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-right-style:none; border-right-width:medium" align=right width="10%"
    bgColor=#e6efff bordercolor="#000000">110 </TD>
    <TD style="BORDER-BOTTOM: medium none #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left bordercolor="#000000">EBITDA </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%" bordercolor="#000000">$</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right
      width="10%" bordercolor="#000000">&nbsp;312,372 </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left
    width="2%" bordercolor="#000000">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%" bordercolor="#000000">$</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right
      width="10%" bordercolor="#000000">&nbsp;278,465 </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left
    width="2%" bordercolor="#000000">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%" bordercolor="#000000">$</TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-right-style:none; border-right-width:medium" align=right
      width="10%" bordercolor="#000000">&nbsp;160,646 </TD>
    <TD style="BORDER-BOTTOM: medium none #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" align=left
    width="2%">&nbsp;</TD></TR>
  <TR>
    <TD bgColor=#e6efff bordercolor="#000000">&nbsp; </TD>
    <TD width="1%" bgColor=#e6efff bordercolor="#000000">&nbsp;</TD>
    <TD width="10%" bgColor=#e6efff bordercolor="#000000">&nbsp; </TD>
    <TD width="2%" bgColor=#e6efff bordercolor="#000000">&nbsp;</TD>
    <TD width="1%" bgColor=#e6efff bordercolor="#000000">&nbsp;</TD>
    <TD width="10%" bgColor=#e6efff bordercolor="#000000">&nbsp; </TD>
    <TD width="2%" bgColor=#e6efff bordercolor="#000000">&nbsp;</TD>
    <TD width="1%" bgColor=#e6efff bordercolor="#000000">&nbsp;</TD>
    <TD width="10%" bgColor=#e6efff style="border-right-style: none; border-right-width: medium" bordercolor="#000000">&nbsp; </TD>
    <TD width="2%" bgColor=#e6efff style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left bordercolor="#000000">Net debt to EBITDA
      ratio </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left
    width="1%" bordercolor="#000000">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right width="10%" bordercolor="#000000">0.4:1
    </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left
    width="2%" bordercolor="#000000">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left
    width="1%" bordercolor="#000000">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right width="10%" bordercolor="#000000">n/a
    </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left
    width="2%" bordercolor="#000000">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left
    width="1%" bordercolor="#000000">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-right-style:none; border-right-width:medium" align=right width="10%" bordercolor="#000000">n/a
    </TD>
    <TD style="BORDER-BOTTOM: medium none #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" align=left
    width="2%">&nbsp;</TD></TR></TABLE>
<P align=justify>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, unless uses of cash arise which are currently
not anticipated. In the third quarter of fiscal 2011, the Company used its
revolving credit facility to partially finance the acquisition of Gold Toe
Moretz. </P>
<P align=justify>In order to maintain or adjust its capital structure, the
Company, upon approval from its Board of Directors, may issue or repay long-term
debt, issue shares, repurchase shares, pay dividends or undertake other
activities as deemed appropriate under the specific circumstances.</P>
<P align=justify>In December 2010, the Board of Directors approved the
introduction of a quarterly cash dividend. During fiscal 2011, the Company has
paid an aggregate of $27.5 million of dividends. On November 29, 2011, the Board
of Directors declared a quarterly dividend of $0.075 per share for an expected
aggregate payment of $9.1 million which will be paid on January 6, 2012 on all
of the issued and outstanding common shares of the Company, rateably and
proportionately to the holders of record on December 15, 2011. The Board of
Directors will consider several factors when deciding to declare quarterly cash
dividends, including the Company&rsquo;s present and future earnings, cash flows,
capital requirements and present and/or future regulatory and legal
restrictions. There can be no assurance as to the declaration of future
quarterly cash dividends. Although the Company&rsquo;s revolving long-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 the Company&rsquo;s dividend policy. </P>
<P align=justify>The Company is not subject to any capital requirements imposed
by a regulator. </P>
<P align=right>GILDAN 2011 REPORT TO SHAREHOLDERS P.86</P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<!--$$/page=--><A name=page_38></A>
<table border="0" cellpadding="0" cellspacing="0" style="border-collapse: collapse" bordercolor="#111111" width="100%">
  <tr>
    <td width="50%"><font size="2">
    <IMG
src="financialsx1x1.jpg" border=0 width="96" height="21"></font></td>
    <td width="50%">
<P align=right><font size="2">NOTES TO CONSOLIDATED FINANCIAL STATEMENTS </font></P>
    </td>
  </tr>
</table>
<P align=justify><B>24. SEGMENTED INFORMATION:</B> </P>
<P align=justify>The Company manufactures and sells activewear, socks and
underwear. The Company operates in one business segment, being high-volume,
basic, frequently replenished, non-fashion apparel.</P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0 BCLLIST>

  <TR>
    <TD vAlign=top width="5%" style="border-style: none; border-width: medium">
    (a) </TD>
    <TD style="border-style: none; border-width: medium">
      <P align=justify>Net sales by major product group: </P></TD></TR>
  </TABLE>
<div align="right">
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="95%" border=0>

  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-top-style:none; border-top-width:medium" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-top-style:none; border-top-width:medium" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-top-style:none; border-top-width:medium" align=right width="10%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-top-style:none; border-top-width:medium" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-top-style:none; border-top-width:medium" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-top-style:none; border-top-width:medium" align=right width="10%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-top-style:none; border-top-width:medium" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-top-style:none; border-top-width:medium" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-top-style:none; border-top-width:medium" align=right width="10%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: medium none #000000; ; border-top-style:none; border-top-width:medium" align=left width="2%"
    >&nbsp;</TD></TR>

  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-top-style:solid; border-top-width:2" align=left bordercolor="#000000">&nbsp; </TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-top-style:solid; border-top-width:2" align=left width="1%" bordercolor="#000000"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-top-style:solid; border-top-width:2" align=right width="10%" bordercolor="#000000">2011
    </TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-top-style:solid; border-top-width:2" align=left width="2%" bordercolor="#000000"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-top-style:solid; border-top-width:2" align=left width="1%" bordercolor="#000000"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-top-style:solid; border-top-width:2" align=right width="10%" bordercolor="#000000">2010
    </TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-top-style:solid; border-top-width:2" align=left width="2%" bordercolor="#000000"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-top-style:solid; border-top-width:2" align=left width="1%" bordercolor="#000000"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-top-style:solid; border-top-width:2; border-right-style:none; border-right-width:medium" align=right width="10%" bordercolor="#000000">2009
    </TD>
    <TD style="BORDER-BOTTOM: medium none #000000; ; border-top-style:none; border-top-width:medium; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium" align=left width="2%"
    >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff bordercolor="#000000">Activewear and underwear </TD>
    <TD align=left width="1%"  bgColor=#e6efff bordercolor="#000000">$</TD>
    <TD align=right width="10%" bgColor=#e6efff bordercolor="#000000">&nbsp;1,406,036 </TD>
    <TD align=left width="2%"  bgColor=#e6efff bordercolor="#000000">&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff bordercolor="#000000">$</TD>
    <TD align=right width="10%" bgColor=#e6efff bordercolor="#000000">&nbsp;1,084,953 </TD>
    <TD align=left width="2%"  bgColor=#e6efff bordercolor="#000000">&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff bordercolor="#000000">$</TD>
    <TD align=right width="10%" bgColor=#e6efff style="border-right-style: none; border-right-width: medium" bordercolor="#000000">&nbsp;795,535 </TD>
    <TD align=left width="2%"  bgColor=#e6efff style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left style="border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000">Socks </TD>
    <TD align=left width="1%" style="border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000" >&nbsp;</TD>
    <TD align=right width="10%" style="border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000">320,005 </TD>
    <TD align=left width="2%" style="border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000" >&nbsp;</TD>
    <TD align=left width="1%" style="border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000" >&nbsp;</TD>
    <TD align=right width="10%" style="border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000">226,510 </TD>
    <TD align=left width="2%" style="border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000" >&nbsp;</TD>
    <TD align=left width="1%" style="border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000" >&nbsp;</TD>
    <TD align=right width="10%" style="border-right-style: none; border-right-width: medium; border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000">242,784 </TD>
    <TD align=left width="2%" style="border-style: none; border-width: medium" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-top-style:solid; border-top-width:1" align=left
      bgColor=#e6efff bordercolor="#000000">&nbsp; </TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-top-style:solid; border-top-width:1" align=left width="1%"
     bgColor=#e6efff bordercolor="#000000">$</TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-top-style:solid; border-top-width:1" align=right width="10%"
    bgColor=#e6efff bordercolor="#000000">&nbsp;1,726,041 </TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-top-style:solid; border-top-width:1" align=left width="2%"
     bgColor=#e6efff bordercolor="#000000">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-top-style:solid; border-top-width:1" align=left width="1%"
     bgColor=#e6efff bordercolor="#000000">$</TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-top-style:solid; border-top-width:1" align=right width="10%"
    bgColor=#e6efff bordercolor="#000000">&nbsp;1,311,463 </TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-top-style:solid; border-top-width:1" align=left width="2%"
     bgColor=#e6efff bordercolor="#000000">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-top-style:solid; border-top-width:1" align=left width="1%"
     bgColor=#e6efff bordercolor="#000000">$</TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-right-style:none; border-right-width:medium; border-top-style:solid; border-top-width:1" align=right width="10%"
    bgColor=#e6efff bordercolor="#000000">&nbsp;1,038,319 </TD>
    <TD style="BORDER-BOTTOM: medium none #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD></TR></TABLE>
</div>
<BR>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0 BCLLIST>

  <TR>
    <TD vAlign=top width="5%">(b) </TD>
    <TD vAlign=top width="5%" colspan="2">
      <P align=justify>Major customers and revenues by geographic
area:</P> </TD>
    </TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="90%">&nbsp;</TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD width="5%">(i) </TD>
    <TD width="90%">
      <P align=justify>The Company has two customers accounting for at least
      10% of total net sales:</P></TD></TR></TABLE><BR>
<div align="right">
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="90%" border=0>

  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-top-style:solid; border-top-width:2" align=left bordercolor="#000000">&nbsp; </TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-top-style:solid; border-top-width:2" align=left width="1%" bordercolor="#000000"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-top-style:solid; border-top-width:2" align=right width="10%" bordercolor="#000000">2011
    </TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-top-style:solid; border-top-width:2" align=left width="2%" bordercolor="#000000"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-top-style:solid; border-top-width:2" align=left width="1%" bordercolor="#000000"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-top-style:solid; border-top-width:2" align=right width="10%" bordercolor="#000000">2010
    </TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-top-style:solid; border-top-width:2" align=left width="2%" bordercolor="#000000"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-top-style:solid; border-top-width:2" align=left width="1%" bordercolor="#000000"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-top-style:solid; border-top-width:2; border-right-style:none; border-right-width:medium" align=right width="10%" bordercolor="#000000">2009
    </TD>
    <TD style="BORDER-BOTTOM: medium none #000000; ; border-top-style:none; border-top-width:medium; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium" align=left width="2%" bordercolor="#000000"
    >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff bordercolor="#000000">Customer A </TD>
    <TD align=left width="1%"  bgColor=#e6efff bordercolor="#000000">&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff bordercolor="#000000">19.4% </TD>
    <TD align=left width="2%"  bgColor=#e6efff bordercolor="#000000">&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff bordercolor="#000000">&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff bordercolor="#000000">21.0% </TD>
    <TD align=left width="2%"  bgColor=#e6efff bordercolor="#000000">&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff bordercolor="#000000">&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff bordercolor="#000000" style="border-right-style: none; border-right-width: medium">18.6% </TD>
    <TD align=left width="2%"  bgColor=#e6efff bordercolor="#000000" style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left bordercolor="#000000">Customer B </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%" bordercolor="#000000"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right width="10%" bordercolor="#000000">12.1%
    </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="2%" bordercolor="#000000"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%" bordercolor="#000000"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right width="10%" bordercolor="#000000">14.3%
    </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="2%" bordercolor="#000000"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%" bordercolor="#000000"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-right-style:none; border-right-width:medium" align=right width="10%" bordercolor="#000000">15.5%
    </TD>
    <TD style="BORDER-BOTTOM: medium none #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" align=left width="2%" bordercolor="#000000"
    >&nbsp;</TD></TR></TABLE>
</div>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0 BCLLIST>

  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  </TABLE>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0 BCLLIST>

  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD width="5%">(ii) </TD>
    <TD>Net sales were derived from customers located in the following
    geographic areas: </TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  </TABLE>
<div align="right">
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="90%" border=0>

  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-top-style:solid; border-top-width:2" align=left bordercolor="#000000">&nbsp; </TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-top-style:solid; border-top-width:2" align=left width="1%" bordercolor="#000000"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-top-style:solid; border-top-width:2" align=right width="10%" bordercolor="#000000">2011
    </TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-top-style:solid; border-top-width:2" align=left width="2%" bordercolor="#000000"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-top-style:solid; border-top-width:2" align=left width="1%" bordercolor="#000000"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-top-style:solid; border-top-width:2" align=right width="10%" bordercolor="#000000">2010
    </TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-top-style:solid; border-top-width:2" align=left width="2%" bordercolor="#000000"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-top-style:solid; border-top-width:2" align=left width="1%" bordercolor="#000000"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-top-style:solid; border-top-width:2; border-right-style:none; border-right-width:medium" align=right width="10%" bordercolor="#000000">2009
    </TD>
    <TD style="BORDER-BOTTOM: medium none #000000; ; border-top-style:none; border-top-width:medium; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium" align=left width="2%" bordercolor="#000000"
    >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff bordercolor="#000000">United States </TD>
    <TD align=left width="1%"  bgColor=#e6efff bordercolor="#000000">$</TD>
    <TD align=right width="10%" bgColor=#e6efff bordercolor="#000000">&nbsp;1,536,670 </TD>
    <TD align=left width="2%"  bgColor=#e6efff bordercolor="#000000">&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff bordercolor="#000000">$</TD>
    <TD align=right width="10%" bgColor=#e6efff bordercolor="#000000">&nbsp;1,154,776 </TD>
    <TD align=left width="2%"  bgColor=#e6efff bordercolor="#000000">&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff bordercolor="#000000">$</TD>
    <TD align=right width="10%" bgColor=#e6efff bordercolor="#000000" style="border-right-style: none; border-right-width: medium">&nbsp;939,717 </TD>
    <TD align=left width="2%"  bgColor=#e6efff bordercolor="#000000" style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bordercolor="#000000">Canada </TD>
    <TD align=left width="1%" bordercolor="#000000" >&nbsp;</TD>
    <TD align=right width="10%" bordercolor="#000000">63,422 </TD>
    <TD align=left width="2%" bordercolor="#000000" >&nbsp;</TD>
    <TD align=left width="1%" bordercolor="#000000" >&nbsp;</TD>
    <TD align=right width="10%" bordercolor="#000000">54,160 </TD>
    <TD align=left width="2%" bordercolor="#000000" >&nbsp;</TD>
    <TD align=left width="1%" bordercolor="#000000" >&nbsp;</TD>
    <TD align=right width="10%" bordercolor="#000000" style="border-right-style: none; border-right-width: medium">35,134 </TD>
    <TD align=left width="2%" bordercolor="#000000" style="border-style: none; border-width: medium" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff bordercolor="#000000" style="border-bottom-style: solid; border-bottom-width: 1">Europe and other </TD>
    <TD align=left width="1%"  bgColor=#e6efff bordercolor="#000000" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff bordercolor="#000000" style="border-bottom-style: solid; border-bottom-width: 1">125,949 </TD>
    <TD align=left width="2%"  bgColor=#e6efff bordercolor="#000000" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff bordercolor="#000000" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff bordercolor="#000000" style="border-bottom-style: solid; border-bottom-width: 1">102,527 </TD>
    <TD align=left width="2%"  bgColor=#e6efff bordercolor="#000000" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff bordercolor="#000000" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff bordercolor="#000000" style="border-right-style: none; border-right-width: medium; border-bottom-style:solid; border-bottom-width:1">63,468 </TD>
    <TD align=left width="2%"  bgColor=#e6efff bordercolor="#000000" style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-top-style:solid; border-top-width:1" align=left bordercolor="#000000">&nbsp; </TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-top-style:solid; border-top-width:1" align=left width="1%" bordercolor="#000000"
    >$</TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-top-style:solid; border-top-width:1" align=right
      width="10%" bordercolor="#000000">&nbsp;1,726,041 </TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-top-style:solid; border-top-width:1" align=left width="2%" bordercolor="#000000"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-top-style:solid; border-top-width:1" align=left width="1%" bordercolor="#000000"
    >$</TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-top-style:solid; border-top-width:1" align=right
      width="10%" bordercolor="#000000">&nbsp;1,311,463 </TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-top-style:solid; border-top-width:1" align=left width="2%" bordercolor="#000000"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-top-style:solid; border-top-width:1" align=left width="1%" bordercolor="#000000"
    >$</TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-right-style:none; border-right-width:medium; border-top-style:solid; border-top-width:1" align=right
      width="10%" bordercolor="#000000">&nbsp;1,038,319 </TD>
    <TD style="BORDER-BOTTOM: medium none #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" align=left width="2%" bordercolor="#000000"
    >&nbsp;</TD></TR></TABLE>
</div>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0 BCLLIST>

  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  </TABLE>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0 BCLLIST>

  <TR>
    <TD width="5%">(c) </TD>
    <TD>Property, plant and equipment by geographic area are as follows: </TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  </TABLE>
<div align="right">
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="95%" border=0>

  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-top-style:solid; border-top-width:2" align=left bordercolor="#000000">&nbsp; </TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-top-style:solid; border-top-width:2" align=left width="1%" bordercolor="#000000"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-top-style:solid; border-top-width:2" align=right width="12%" bordercolor="#000000">2011
    </TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-top-style:solid; border-top-width:2" align=left width="2%" bordercolor="#000000"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-top-style:solid; border-top-width:2" align=left width="1%" bordercolor="#000000"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-top-style:solid; border-top-width:2; border-right-style:none; border-right-width:medium" align=right width="12%" bordercolor="#000000">2010
    </TD>
    <TD style="BORDER-BOTTOM: medium none #000000; ; border-top-style:none; border-top-width:medium; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium" align=left width="2%"
    >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff bordercolor="#000000">Honduras </TD>
    <TD align=left width="1%"  bgColor=#e6efff bordercolor="#000000">$</TD>
    <TD align=right width="12%" bgColor=#e6efff bordercolor="#000000">&nbsp;333,143 </TD>
    <TD align=left width="2%"  bgColor=#e6efff bordercolor="#000000">&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff bordercolor="#000000">$</TD>
    <TD align=right width="12%" bgColor=#e6efff style="border-right-style: none; border-right-width: medium" bordercolor="#000000">&nbsp;243,033 </TD>
    <TD align=left width="2%"  bgColor=#e6efff style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bordercolor="#000000">Caribbean Basin </TD>
    <TD align=left width="1%" bordercolor="#000000" >&nbsp;</TD>
    <TD align=right width="12%" bordercolor="#000000">115,582 </TD>
    <TD align=left width="2%" bordercolor="#000000" >&nbsp;</TD>
    <TD align=left width="1%" bordercolor="#000000" >&nbsp;</TD>
    <TD align=right width="12%" style="border-right-style: none; border-right-width: medium" bordercolor="#000000">118,876 </TD>
    <TD align=left width="2%" style="border-style: none; border-width: medium" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff bordercolor="#000000">United States </TD>
    <TD align=left width="1%"  bgColor=#e6efff bordercolor="#000000">&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff bordercolor="#000000">84,873 </TD>
    <TD align=left width="2%"  bgColor=#e6efff bordercolor="#000000">&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff bordercolor="#000000">&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff style="border-right-style: none; border-right-width: medium" bordercolor="#000000">81,555 </TD>
    <TD align=left width="2%"  bgColor=#e6efff style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bordercolor="#000000">Bangladesh </TD>
    <TD align=left width="1%" bordercolor="#000000" >&nbsp;</TD>
    <TD align=right width="12%" bordercolor="#000000">12,391 </TD>
    <TD align=left width="2%" bordercolor="#000000" >&nbsp;</TD>
    <TD align=left width="1%" bordercolor="#000000" >&nbsp;</TD>
    <TD align=right width="12%" style="border-right-style: none; border-right-width: medium" bordercolor="#000000">12,124 </TD>
    <TD align=left width="2%" style="border-style: none; border-width: medium" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff bordercolor="#000000">Canada </TD>
    <TD align=left width="1%"  bgColor=#e6efff bordercolor="#000000">&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff bordercolor="#000000">8,537 </TD>
    <TD align=left width="2%"  bgColor=#e6efff bordercolor="#000000">&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff bordercolor="#000000">&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff style="border-right-style: none; border-right-width: medium" bordercolor="#000000">10,051 </TD>
    <TD align=left width="2%"  bgColor=#e6efff style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bordercolor="#000000" style="border-bottom-style: solid; border-bottom-width: 1">Other </TD>
    <TD align=left width="1%" bordercolor="#000000" style="border-bottom-style: solid; border-bottom-width: 1" >&nbsp;</TD>
    <TD align=right width="12%" bordercolor="#000000" style="border-bottom-style: solid; border-bottom-width: 1">10,872 </TD>
    <TD align=left width="2%" bordercolor="#000000" style="border-bottom-style: solid; border-bottom-width: 1" >&nbsp;</TD>
    <TD align=left width="1%" bordercolor="#000000" style="border-bottom-style: solid; border-bottom-width: 1" >&nbsp;</TD>
    <TD align=right width="12%" style="border-right-style: none; border-right-width: medium; border-bottom-style:solid; border-bottom-width:1" bordercolor="#000000">13,653 </TD>
    <TD align=left width="2%" style="border-style: none; border-width: medium" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-top-style:solid; border-top-width:1" align=left
      bgColor=#e6efff bordercolor="#000000">&nbsp; </TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-top-style:solid; border-top-width:1" align=left width="1%"
     bgColor=#e6efff bordercolor="#000000">$</TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-top-style:solid; border-top-width:1" align=right width="12%"
    bgColor=#e6efff bordercolor="#000000">&nbsp;565,398 </TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-top-style:solid; border-top-width:1" align=left width="2%"
     bgColor=#e6efff bordercolor="#000000">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-top-style:solid; border-top-width:1" align=left width="1%"
     bgColor=#e6efff bordercolor="#000000">$</TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-right-style:none; border-right-width:medium; border-top-style:solid; border-top-width:1" align=right width="12%"
    bgColor=#e6efff bordercolor="#000000">&nbsp;479,292 </TD>
    <TD style="BORDER-BOTTOM: medium none #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD></TR></TABLE>
</div>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0 BCLLIST>

  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  </TABLE>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0 BCLLIST>

  <TR>
    <TD width="5%">(d)</TD>
    <TD>Intangible assets by geographic area are as follows: </TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  </TABLE>
<div align="right">
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="95%" border=0>

  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-top-style:solid; border-top-width:2" align=left bordercolor="#000000">&nbsp; </TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-top-style:solid; border-top-width:2" align=left width="1%" bordercolor="#000000"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-top-style:solid; border-top-width:2" align=right width="12%" bordercolor="#000000">2011
    </TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-top-style:solid; border-top-width:2" align=left width="2%" bordercolor="#000000"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-top-style:solid; border-top-width:2" align=left width="1%" bordercolor="#000000"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-top-style:solid; border-top-width:2; border-right-style:none; border-right-width:medium" align=right width="12%" bordercolor="#000000">2010
    </TD>
    <TD style="BORDER-BOTTOM: medium none #000000; ; border-top-style:none; border-top-width:medium; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium" align=left width="2%"
    >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff bordercolor="#000000">United States </TD>
    <TD align=left width="1%"  bgColor=#e6efff bordercolor="#000000">$</TD>
    <TD align=right width="12%" bgColor=#e6efff bordercolor="#000000">&nbsp;250,060 </TD>
    <TD align=left width="2%"  bgColor=#e6efff bordercolor="#000000">&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff bordercolor="#000000">$</TD>
    <TD align=right width="12%" bgColor=#e6efff style="border-right-style: none; border-right-width: medium" bordercolor="#000000">&nbsp;54,650 </TD>
    <TD align=left width="2%"  bgColor=#e6efff style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bordercolor="#000000">Canada </TD>
    <TD align=left width="1%" bordercolor="#000000" >&nbsp;</TD>
    <TD align=right width="12%" bordercolor="#000000">5,294 </TD>
    <TD align=left width="2%" bordercolor="#000000" >&nbsp;</TD>
    <TD align=left width="1%" bordercolor="#000000" >&nbsp;</TD>
    <TD align=right width="12%" style="border-right-style: none; border-right-width: medium" bordercolor="#000000">5,456 </TD>
    <TD align=left width="2%" style="border-style: none; border-width: medium" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff bordercolor="#000000">Honduras </TD>
    <TD align=left width="1%"  bgColor=#e6efff bordercolor="#000000">&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff bordercolor="#000000">951 </TD>
    <TD align=left width="2%"  bgColor=#e6efff bordercolor="#000000">&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff bordercolor="#000000">&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff style="border-right-style: none; border-right-width: medium" bordercolor="#000000">907 </TD>
    <TD align=left width="2%"  bgColor=#e6efff style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bordercolor="#000000" style="border-bottom-style: solid; border-bottom-width: 1">Other </TD>
    <TD align=left width="1%" bordercolor="#000000" style="border-bottom-style: solid; border-bottom-width: 1" >&nbsp;</TD>
    <TD align=right width="12%" bordercolor="#000000" style="border-bottom-style: solid; border-bottom-width: 1">162 </TD>
    <TD align=left width="2%" bordercolor="#000000" style="border-bottom-style: solid; border-bottom-width: 1" >&nbsp;</TD>
    <TD align=left width="1%" bordercolor="#000000" style="border-bottom-style: solid; border-bottom-width: 1" >&nbsp;</TD>
    <TD align=right width="12%" style="border-right-style: none; border-right-width: medium; border-bottom-style:solid; border-bottom-width:1" bordercolor="#000000">308 </TD>
    <TD align=left width="2%" style="border-style: none; border-width: medium" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-top-style:solid; border-top-width:1" align=left
      bgColor=#e6efff bordercolor="#000000">&nbsp; </TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-top-style:solid; border-top-width:1" align=left width="1%"
     bgColor=#e6efff bordercolor="#000000">$</TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-top-style:solid; border-top-width:1" align=right width="12%"
    bgColor=#e6efff bordercolor="#000000">&nbsp;256,467 </TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-top-style:solid; border-top-width:1" align=left width="2%"
     bgColor=#e6efff bordercolor="#000000">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-top-style:solid; border-top-width:1" align=left width="1%"
     bgColor=#e6efff bordercolor="#000000">$</TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-right-style:none; border-right-width:medium; border-top-style:solid; border-top-width:1" align=right width="12%"
    bgColor=#e6efff bordercolor="#000000">&nbsp;61,321 </TD>
    <TD style="BORDER-BOTTOM: medium none #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD></TR></TABLE>
</div>
<P align=right><br>
GILDAN 2011 REPORT TO SHAREHOLDERS P.87<BR>
</P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<!--$$/page=--><A name=page_39></A>
<table border="0" cellpadding="0" cellspacing="0" style="border-collapse: collapse" bordercolor="#111111" width="100%">
  <tr>
    <td width="50%"><font size="2">
    <IMG
src="financialsx1x1.jpg" border=0 width="96" height="21"></font></td>
    <td width="50%">
<P align=right><font size="2">NOTES TO CONSOLIDATED FINANCIAL STATEMENTS </font></P>
    </td>
  </tr>
</table>
<div align="right">
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="95%" border=0>

  <TR vAlign=top>
    <TD align=left>&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="12%">&nbsp;</TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="12%">&nbsp;</TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  </TABLE>
</div>
<P align=justify><B>24. SEGMENTED INFORMATION (continued):</B> </P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0 BCLLIST>

  <TR>
    <TD width="5%">(e)</TD>
    <TD>&nbsp;Goodwill by
      geographic area is as follows: </TD></TR>

  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  </TABLE>
<div align="right">
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="95%" border=0>

  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="12%">&nbsp;
    </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-right-style:none; border-right-width:medium" align=left width="12%">&nbsp;
    </TD>
    <TD style="BORDER-BOTTOM: medium none #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" align=left width="2%"
    >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left style="border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000">&nbsp; </TD>
    <TD align=left width="1%" style="border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000" >&nbsp;</TD>
    <TD align=right width="12%" style="border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000">2011 </TD>
    <TD align=left width="2%" style="border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000" >&nbsp;</TD>
    <TD align=left width="1%" style="border-bottom-style: solid; border-bottom-width: 1" bordercolor="#000000" >&nbsp;</TD>
    <TD align=right width="12%" style="border-right-style: none; border-right-width: medium; border-bottom-style:solid; border-bottom-width:1" bordercolor="#000000">2010 </TD>
    <TD align=left width="2%" style="border-style: none; border-width: medium" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff style="border-top-style: solid; border-top-width: 1">United
      States </TD>
    <TD align=left width="1%"  bgColor=#e6efff style="border-top-style: solid; border-top-width: 1">$</TD>
    <TD align=right width="12%" bgColor=#e6efff style="border-top-style: solid; border-top-width: 1">&nbsp;149,731 </TD>
    <TD align=left width="2%"  bgColor=#e6efff style="border-top-style: solid; border-top-width: 1">&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff style="border-top-style: solid; border-top-width: 1">$</TD>
    <TD align=right width="12%" bgColor=#e6efff style="border-right-style: none; border-right-width: medium; border-top-style:solid; border-top-width:1">&nbsp;6,709 </TD>
    <TD align=left width="2%"  bgColor=#e6efff style="border-style: none; border-width: medium">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left style="border-bottom-style: solid; border-bottom-width: 1">Bangladesh </TD>
    <TD align=left width="1%" style="border-bottom-style: solid; border-bottom-width: 1" >&nbsp;</TD>
    <TD align=right width="12%" style="border-bottom-style: solid; border-bottom-width: 1">3,488 </TD>
    <TD align=left width="2%" style="border-bottom-style: solid; border-bottom-width: 1" >&nbsp;</TD>
    <TD align=left width="1%" style="border-bottom-style: solid; border-bottom-width: 1" >&nbsp;</TD>
    <TD align=right width="12%" style="border-right-style: none; border-right-width: medium; border-bottom-style:solid; border-bottom-width:1">3,488 </TD>
    <TD align=left width="2%" style="border-style: none; border-width: medium" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-top-style:solid; border-top-width:1" align=left
      bgColor=#e6efff>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-top-style:solid; border-top-width:1" align=left width="1%"
     bgColor=#e6efff>$</TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-top-style:solid; border-top-width:1" align=right width="12%"
    bgColor=#e6efff>&nbsp;153,219 </TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-top-style:solid; border-top-width:1" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-top-style:solid; border-top-width:1" align=left width="1%"
     bgColor=#e6efff>$</TD>
    <TD style="BORDER-BOTTOM: 2px solid #000000; ; border-right-style:none; border-right-width:medium; border-top-style:solid; border-top-width:1" align=right width="12%"
    bgColor=#e6efff>&nbsp;10,197 </TD>
    <TD style="BORDER-BOTTOM: medium none #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD></TR></TABLE>
</div>
<P align=justify><B>25. COMPARATIVE FIGURES:</B><BR></P>
<P align=justify>The Company reclassified $6.3 million of future income taxes
between current and non-current as at October 3, 2010.</P>
<P align=justify><B>26. SUBSEQUENT EVENT:</B><BR></P>
<P align=justify>On November 30, 2011, the Company announced a reduction in its

selling prices in the U.S. wholesale distributor channel. The Company also
concurrently announced that the reduction in selling prices will be applied to
existing distributor inventories, which is projected to result in a distributor inventory devaluation discount of
approximately $17 million, and which will be
recorded as a reduction to trade accounts receivable and net sales in the first
quarter of fiscal 2012. </P>
<P align=right>GILDAN 2011 REPORT TO SHAREHOLDERS P.88</P>
<HR align=center width="100%" color=black noShade SIZE=5>

</BODY>

</HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.3
<SEQUENCE>4
<FILENAME>exhibit99-3.htm
<DESCRIPTION>EXHIBIT 99.3
<TEXT>
<HTML>
<HEAD>
   <TITLE>Gildan Activewear Inc.: Exhibit 99.3 - Filed by newsfilecorp.com</TITLE>
</HEAD>

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

<HR noshade align="center" width=100% size=3 color="black">
<A name=page_1></A>
<IMG
src="exhibit99-3x1x1.jpg"
border=0 width="113" height="58"> <BR>
<DIV align=right>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="60%" border=0>

  <TR vAlign=top>
    <TD align=left ><B>KPMG LLP </B></TD>
    <TD noWrap align=left width="15%">Telephone </TD>
    <TD noWrap align=left width="15%">(514) 840-2100 </TD></TR>
  <TR vAlign=top>
    <TD align=left ><B>Chartered Accountants </B></TD>
    <TD noWrap align=left width="15%">Fax </TD>
    <TD noWrap align=left width="15%">(514) 840-2187 </TD></TR>
  <TR vAlign=top>
    <TD align=left >600 de Maisonneuve Blvd. West </TD>
    <TD noWrap align=left width="15%">Internet </TD>
    <TD noWrap align=left width="15%">www.kpmg.ca </TD></TR>
  <TR vAlign=top>
    <TD align=left >Suite 1500 </TD>
    <TD align=left width="15%">&nbsp; </TD>
    <TD align=left width="15%">&nbsp; </TD></TR>
  <TR vAlign=top>
    <TD align=left >Montr&#233;al Qu&#233;bec H3A 0A3 </TD>
    <TD align=left width="15%">&nbsp; </TD>
    <TD align=left width="15%">&nbsp; </TD></TR></TABLE></DIV>
<P align=center><B><font size="3">Consent of Independent Registered Public Accounting Firm
</font>
</B></P>
<P align=justify>The Board of Directors <BR>Gildan Activewear Inc. </P>
<P align=justify>We consent to the inclusion in this annual report on Form 40-F
of: </P>
<UL style="TEXT-ALIGN: justify">
  <LI>
  <p style="margin-left: -15pt; margin-bottom: 12">our Report of Independent Registered Public Accounting Firm dated November
  30, 2011 on the consolidated balance sheets as at October 2, 2011 and October
  3, 2010 and the consolidated statements of earnings and comprehensive income,
  shareholders&#146; equity and cash flows for each of the years in the three-year
  period ended October 2, 2011;
  <LI>
  <p style="margin-left: -15pt; margin-bottom: 12">our Report of Independent Registered Public Accounting Firm on
  Reconciliation to United States GAAP dated November 30, 2011 on the Company&#146;s
  supplementary information entitled &#147;Reconciliation to United States GAAP&#148;
  <LI>
  <p style="margin-left: -15pt; margin-bottom: 12">our Report of Independent Registered Public Accounting Firm dated November
  30, 2011 on the Company&#146;s internal control over financial reporting as of
  October 2, 2011; </LI></UL>
<P align=justify>each of which is contained in this annual report on Form 40-F
of Gildan Activewear Inc. for the fiscal year ended October 2, 2011. </P>
<IMG
src="exhibit99-3x1x2.jpg"
border=0 width="169" height="73"> <BR>
<P align=justify>Chartered Accountants </P>
<P align=justify>December 9, 2011 <BR>Montr&#233;al, Canada </P>
<P style="MARGIN-LEFT: 35%" align=justify><FONT size=1>KPMG LLP is a Canadian
limited liability partnership and a member firm of the KPMG network
</FONT><BR><FONT size=1>of independent member firms affiliated with KPMG
International, a Swiss cooperative. </FONT><BR><FONT size=1>KPMG Canada provides
services to KPMG LLP. </FONT></P>
<HR align=center width="100%" color=black noShade SIZE=5>

</BODY>

</HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.4
<SEQUENCE>5
<FILENAME>exhibit99-4.htm
<DESCRIPTION>EXHIBIT 99.4
<TEXT>
<HTML>
<HEAD>
   <TITLE>Gildan Activewear Inc.: Exhibit 99.4 - Filed by newsfilecorp.com</TITLE>
</HEAD>

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

<HR noshade align="center" width=100% size=3 color="black">


<!--$$/page=-->
<A name="page_1"></A>

<P align="right">
<b>Exhibit 99.4</b></P>

<P align="justify">
Supplementary Information of </P>
<P align="justify">
<B><font size="3">GILDAN ACTIVEWEAR INC. </font> </B></P>
<P align="justify">
Three years ended October 2, 2011 </P>

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

<!--$$/page=--><A name=page_2></A><BR>
<TABLE
style="FONT-SIZE: 10pt; BORDER-LEFT-COLOR: black; BORDER-BOTTOM-COLOR: black; BORDER-TOP-COLOR: black; BORDER-COLLAPSE: collapse; BORDER-RIGHT-COLOR: black"
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD align=left ><img border="0" src="kpmg.jpg" width="114" height="53"></TD>
    <TD align=left width="33%" valign="bottom"><B>KPMG LLP</B> </TD>
    <TD align=left width="33%" valign="bottom">Telephone (514) 840-2100 </TD></TR>
  <TR vAlign=top>
    <TD align=left >&nbsp;</TD>
    <TD align=left width="33%" valign="bottom"><B>Chartered Accountants</B> </TD>
    <TD align=left width="33%" valign="bottom">Fax (514) 840-2187 </TD></TR>
  <TR vAlign=top>
    <TD align=left >&nbsp;</TD>
    <TD align=left width="33%" valign="bottom">600 de Maisonneuve Blvd. West </TD>
    <TD align=left width="33%" valign="bottom">Internet www.kpmg.ca </TD></TR>
  <TR vAlign=top>
    <TD align=left >&nbsp;</TD>
    <TD align=left width="33%" valign="bottom">Suite 1500 </TD>
    <TD align=left width="33%" valign="bottom">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left >&nbsp;</TD>
    <TD align=left width="33%" valign="bottom">Montr&#233;al Qu&#233;bec H3A 0A3 </TD>
    <TD align=left width="33%" valign="bottom">&nbsp;</TD></TR></TABLE>
<P align=justify><B>REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM ON
RECONCILIATION TO UNITED STATES GAAP</B></P>
<P align=justify>To the Board of Directors of Gildan Activewear Inc.</P>
<P align=justify>On November 30, 2011, we reported on the consolidated balance
sheets of Gildan Activewear Inc. (the "Company") as at October 2, 2011 and
October 3, 2010 and the consolidated statements of earnings and comprehensive
income, shareholders&#146; equity and cash flows for the years ended October 2, 2011,
October 3, 2010 and October 4, 2009, which are included in the annual report on
Form 40-F. Our audits were for the purpose of forming an opinion on the basic
consolidated financial statements taken as a whole. The supplementary
information included in the related supplementary schedule entitled
"Reconciliation to United States GAAP" included in the Form 40-F is presented
for purposes of additional analysis and requirements under securities
legislation. Such supplementary information has been subject to the audit
procedures applied in the audits of the basic consolidated financial statements
and, in our opinion, is fairly stated in all material respects in relation to
the basic consolidated financial statement taken as a whole. </P>
<P align=justify><img border="0" src="usgaap3.gif" width="139" height="53"></P>
<P align=justify>Chartered Accountants</P>
<P align=justify>Montr&#233;al, Canada <BR>November 30, 2011 </P>
<P align=justify style="margin-left: 30%">
<img border="0" src="kpmgfooter.jpg" width="384" height="37"></P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<!--$$/page=--><A name=page_3></A><BR>
<TABLE
style="FONT-SIZE: 10pt; BORDER-LEFT-COLOR: black; BORDER-BOTTOM-COLOR: black; BORDER-TOP-COLOR: black; BORDER-COLLAPSE: collapse; BORDER-RIGHT-COLOR: black"
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD align=left><B>GILDAN ACTIVEWEAR INC.</B> </TD></TR>
  <TR vAlign=top>
    <TD align=left>Reconciliation to United States GAAP </TD></TR>
  <TR>
    <TD>&nbsp; </TD></TR>
  <TR vAlign=top>
    <TD align=left>Years ended October 2, 2011, October 3, 2010 and October 4,
      2009 </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>(Tabular amounts
      in thousands or thousands of US dollars, except per share amounts)
  </TD></TR></TABLE>
<P align=justify>The consolidated financial statements of the Company are
expressed in U.S. dollars and are prepared in accordance with Canadian generally
accepted accounting principles ("GAAP"), which conform, in all material
respects, with accounting principles generally accepted in the United States
(&#147;United States GAAP&#148;), except as described below: </P>
<TABLE
style="FONT-SIZE: 10pt; BORDER-LEFT-COLOR: black; BORDER-BOTTOM-COLOR: black; BORDER-TOP-COLOR: black; BORDER-COLLAPSE: collapse; BORDER-RIGHT-COLOR: black"
cellSpacing=0 cellPadding=0 width="100%" border=0 BCLLIST>

  <TR>
    <TD vAlign=top width="5%"><B>(a)</B> </TD>
    <TD>
      <P align=justify><B>Consolidated statements of earnings and comprehensive
      income:</B></P></TD></TR></TABLE><BR>
<TABLE
style="FONT-SIZE: 10pt; BORDER-LEFT-COLOR: black; BORDER-BOTTOM-COLOR: black; BORDER-TOP-COLOR: black; BORDER-COLLAPSE: collapse; BORDER-RIGHT-COLOR: black"
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD width="5%"  >&nbsp;</TD>
    <TD style="BORDER-TOP: #000000 2px solid; BORDER-BOTTOM: #000000 1px solid"
    vAlign=bottom align=left>
    <p style="text-indent: -15pt; margin-left: 15pt">&nbsp; </TD>
    <TD style="BORDER-TOP: #000000 2px solid; BORDER-BOTTOM: #000000 1px solid"
    vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD style="BORDER-TOP: #000000 2px solid; BORDER-BOTTOM: #000000 1px solid"
    vAlign=bottom align=right width="10%">2011 </TD>
    <TD style="BORDER-TOP: #000000 2px solid; BORDER-BOTTOM: #000000 1px solid"
    vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD style="BORDER-TOP: #000000 2px solid; BORDER-BOTTOM: #000000 1px solid"
    vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD style="BORDER-TOP: #000000 2px solid; BORDER-BOTTOM: #000000 1px solid"
    vAlign=bottom align=right width="10%">2010 </TD>
    <TD style="BORDER-TOP: #000000 2px solid; BORDER-BOTTOM: #000000 1px solid"
    vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD style="BORDER-TOP: #000000 2px solid; BORDER-BOTTOM: #000000 1px solid"
    vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD style="BORDER-TOP: #000000 2px solid; BORDER-BOTTOM: #000000 1px solid"
    vAlign=bottom align=right width="10%">2009 </TD>
    <TD style="BORDER-TOP: #000000 2px solid; BORDER-BOTTOM: #000000 1px solid"
    vAlign=bottom align=left width="2%" >&nbsp;</TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD vAlign=bottom>
    <p style="text-indent: -15pt; margin-left: 15pt">&nbsp; </TD>
    <TD vAlign=bottom width="1%" >&nbsp;</TD>
    <TD vAlign=bottom width="10%">&nbsp; </TD>
    <TD vAlign=bottom width="2%" >&nbsp;</TD>
    <TD vAlign=bottom width="1%" >&nbsp;</TD>
    <TD vAlign=bottom width="10%">&nbsp; </TD>
    <TD vAlign=bottom width="2%" >&nbsp;</TD>
    <TD vAlign=bottom width="1%" >&nbsp;</TD>
    <TD vAlign=bottom width="10%">&nbsp; </TD>
    <TD vAlign=bottom width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD vAlign=bottom align=left bgColor=#e6efff>
    <p style="text-indent: -15pt; margin-left: 15pt">Net earnings as per Canadian
      GAAP </TD>
    <TD vAlign=bottom align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD vAlign=bottom align=right width="10%" bgColor=#e6efff>&nbsp;239,904
</TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD vAlign=bottom align=right width="10%" bgColor=#e6efff>&nbsp;198,245
</TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD vAlign=bottom align=right width="10%" bgColor=#e6efff>&nbsp;95,329 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD vAlign=bottom>
    <p style="text-indent: -15pt; margin-left: 15pt">&nbsp; </TD>
    <TD vAlign=bottom width="1%" >&nbsp;</TD>
    <TD vAlign=bottom width="10%">&nbsp; </TD>
    <TD vAlign=bottom width="2%" >&nbsp;</TD>
    <TD vAlign=bottom width="1%" >&nbsp;</TD>
    <TD vAlign=bottom width="10%">&nbsp; </TD>
    <TD vAlign=bottom width="2%" >&nbsp;</TD>
    <TD vAlign=bottom width="1%" >&nbsp;</TD>
    <TD vAlign=bottom width="10%">&nbsp; </TD>
    <TD vAlign=bottom width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD vAlign=bottom align=left bgColor=#e6efff>
    <p style="text-indent: -15pt; margin-left: 15pt">Adjustments: </TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="10%" bgColor=#e6efff>&nbsp; </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="10%" bgColor=#e6efff>&nbsp; </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="10%" bgColor=#e6efff>&nbsp; </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD vAlign=bottom align=left>
    <p style="text-indent: -15pt; margin-left: 15pt">&nbsp; &nbsp; &nbsp;Transaction costs (i) </TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%">(7,271</TD>
    <TD vAlign=bottom align=left width="2%" >) </TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%">(600</TD>
    <TD vAlign=bottom align=left width="2%" >) </TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%">- </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD vAlign=bottom align=left bgColor=#e6efff>
    <p style="text-indent: -15pt; margin-left: 15pt">&nbsp;&nbsp;&nbsp;&nbsp;
      Non-controlling interest in consolidated joint venture (ii) </TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%" bgColor=#e6efff>504 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%" bgColor=#e6efff>3,786 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%" bgColor=#e6efff>110 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD vAlign=bottom align=left>
    <p style="text-indent: -15pt; margin-left: 15pt">&nbsp; &nbsp; &nbsp;Remeasurement of
      contingent consideration (i) </TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%">1,460 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%">- </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%">- </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD vAlign=bottom align=left bgColor=#e6efff>
    <p style="text-indent: -15pt; margin-left: 15pt">&nbsp; &nbsp; &nbsp;Lease
      termination costs (i) </TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%" bgColor=#e6efff>(395</TD>
    <TD vAlign=bottom align=left width="2%"  bgColor=#e6efff>)
</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD vAlign=bottom align=left>
    <p style="text-indent: -15pt; margin-left: 15pt">&nbsp; &nbsp; &nbsp;Net pension expense (i)
    </TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%">(3,506</TD>
    <TD vAlign=bottom align=left width="2%" >) </TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%">- </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%">- </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    bgColor=#e6efff>
    <p style="text-indent: -15pt; margin-left: 15pt">&nbsp; &nbsp; &nbsp;Tax effect of above adjustments </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="10%" bgColor=#e6efff>2,584 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="10%" bgColor=#e6efff>- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="10%" bgColor=#e6efff>- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left>
    <p style="text-indent: -15pt; margin-left: 15pt">Net
      earnings as per United States GAAP </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="1%" >$</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=right
    width="10%">&nbsp;233,280 </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="2%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="1%" >$</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=right
    width="10%">&nbsp;201,431 </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="2%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="1%" >$</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=right
    width="10%">&nbsp;95,439 </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="2%" >&nbsp;</TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD vAlign=bottom bgColor=#e6efff>
    <p style="text-indent: -15pt; margin-left: 15pt">&nbsp; </TD>
    <TD vAlign=bottom width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom width="10%" bgColor=#e6efff>&nbsp; </TD>
    <TD vAlign=bottom width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom width="10%" bgColor=#e6efff>&nbsp; </TD>
    <TD vAlign=bottom width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom width="10%" bgColor=#e6efff>&nbsp; </TD>
    <TD vAlign=bottom width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD vAlign=bottom align=left>
    <p style="text-indent: -15pt; margin-left: 15pt">Net earnings attributable to: </TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="10%">&nbsp; </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="10%">&nbsp; </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="10%">&nbsp; </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD vAlign=bottom align=left bgColor=#e6efff>
    <p style="text-indent: -15pt; margin-left: 15pt">&nbsp;Shareholders of Gildan
      Activewear Inc. </TD>
    <TD vAlign=bottom align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD vAlign=bottom align=right width="10%" bgColor=#e6efff>&nbsp;232,776
</TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD vAlign=bottom align=right width="10%" bgColor=#e6efff>&nbsp;197,645
</TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD vAlign=bottom align=right width="10%" bgColor=#e6efff>&nbsp;95,329 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom
      align=left>
    <p style="text-indent: -15pt; margin-left: 15pt">&nbsp;Non-controlling interest in consolidated joint venture
</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="1%" >$</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=right
    width="10%">&nbsp;504 </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="2%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="1%" >$</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=right
    width="10%">&nbsp;3,786 </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="2%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="1%" >$</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=right
    width="10%">&nbsp;110 </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="2%" >&nbsp;</TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD vAlign=bottom bgColor=#ffffff>
    <p style="text-indent: -15pt; margin-left: 15pt">&nbsp; </TD>
    <TD vAlign=bottom width="1%"  bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom width="10%" bgColor=#ffffff>&nbsp; </TD>
    <TD vAlign=bottom width="2%"  bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom width="1%"  bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom width="10%" bgColor=#ffffff>&nbsp; </TD>
    <TD vAlign=bottom width="2%"  bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom width="1%"  bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom width="10%" bgColor=#ffffff>&nbsp; </TD>
    <TD vAlign=bottom width="2%"  bgColor=#ffffff>&nbsp;</TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom
      bgColor=#ffffff>
    <p style="text-indent: -15pt; margin-left: 15pt">&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom width="1%"
     bgColor=#ffffff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom width="10%"
    bgColor=#ffffff>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom width="2%"
     bgColor=#ffffff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom width="1%"
     bgColor=#ffffff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom width="10%"
    bgColor=#ffffff>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom width="2%"
     bgColor=#ffffff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom width="1%"
     bgColor=#ffffff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom width="10%"
    bgColor=#ffffff>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom width="2%"
     bgColor=#ffffff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    bgColor=#ffffff>
    <p style="text-indent: -15pt; margin-left: 15pt">&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%"  bgColor=#ffffff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="10%" bgColor=#ffffff>2011 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%"  bgColor=#ffffff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%"  bgColor=#ffffff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="10%" bgColor=#ffffff>2010 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%"  bgColor=#ffffff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%"  bgColor=#ffffff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="10%" bgColor=#ffffff>2009 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%"  bgColor=#ffffff>&nbsp;</TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD vAlign=bottom bgColor=#ffffff>
    <p style="text-indent: -15pt; margin-left: 15pt">&nbsp; </TD>
    <TD vAlign=bottom width="1%"  bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom width="10%" bgColor=#ffffff>&nbsp; </TD>
    <TD vAlign=bottom width="2%"  bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom width="1%"  bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom width="10%" bgColor=#ffffff>&nbsp; </TD>
    <TD vAlign=bottom width="2%"  bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom width="1%"  bgColor=#ffffff>&nbsp;</TD>
    <TD vAlign=bottom width="10%" bgColor=#ffffff>&nbsp; </TD>
    <TD vAlign=bottom width="2%"  bgColor=#ffffff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD vAlign=bottom align=left bgColor=#e6efff>
    <p style="text-indent: -15pt; margin-left: 15pt">Net earnings as per United
      States GAAP </TD>
    <TD vAlign=bottom align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD vAlign=bottom align=right width="10%" bgColor=#e6efff>&nbsp;233,280
</TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD vAlign=bottom align=right width="10%" bgColor=#e6efff>&nbsp;201,431
</TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD vAlign=bottom align=right width="10%" bgColor=#e6efff>&nbsp;95,439 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom
      align=left>
    <p style="text-indent: -15pt; margin-left: 15pt">Other comprehensive loss, net of related income taxes </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="10%">(1,276</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%" >) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="10%">(1,710</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%" >) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="10%">- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    bgColor=#e6efff>
    <p style="text-indent: -15pt; margin-left: 15pt">Comprehensive income as per United States GAAP </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="1%"  bgColor=#e6efff>$</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=right
    width="10%" bgColor=#e6efff>&nbsp;232,004 </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="1%"  bgColor=#e6efff>$</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=right
    width="10%" bgColor=#e6efff>&nbsp;199,721 </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="1%"  bgColor=#e6efff>$</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=right
    width="10%" bgColor=#e6efff>&nbsp;95,439 </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD vAlign=bottom>
    <p style="text-indent: -15pt; margin-left: 15pt">&nbsp; </TD>
    <TD vAlign=bottom width="1%" >&nbsp;</TD>
    <TD vAlign=bottom width="10%">&nbsp; </TD>
    <TD vAlign=bottom width="2%" >&nbsp;</TD>
    <TD vAlign=bottom width="1%" >&nbsp;</TD>
    <TD vAlign=bottom width="10%">&nbsp; </TD>
    <TD vAlign=bottom width="2%" >&nbsp;</TD>
    <TD vAlign=bottom width="1%" >&nbsp;</TD>
    <TD vAlign=bottom width="10%">&nbsp; </TD>
    <TD vAlign=bottom width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD vAlign=bottom align=left bgColor=#e6efff>
    <p style="text-indent: -15pt; margin-left: 15pt">Comprehensive income
      attributable to: </TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="10%" bgColor=#e6efff>&nbsp; </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="10%" bgColor=#e6efff>&nbsp; </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="10%" bgColor=#e6efff>&nbsp; </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD vAlign=bottom align=left>
    <p style="text-indent: -15pt; margin-left: 15pt">&nbsp;Shareholders of Gildan Activewear Inc.
    </TD>
    <TD vAlign=bottom align=left width="1%" >$</TD>
    <TD vAlign=bottom align=right width="10%">&nbsp;231,500 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >$</TD>
    <TD vAlign=bottom align=right width="10%">&nbsp;195,935 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >$</TD>
    <TD vAlign=bottom align=right width="10%">&nbsp;95,329 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    bgColor=#e6efff>
    <p style="text-indent: -15pt; margin-left: 15pt">&nbsp;Non-controlling interest in consolidated joint
      venture </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="1%"  bgColor=#e6efff>$</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=right
    width="10%" bgColor=#e6efff>&nbsp;504 </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="1%"  bgColor=#e6efff>$</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=right
    width="10%" bgColor=#e6efff>&nbsp;3,786 </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="1%"  bgColor=#e6efff>$</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=right
    width="10%" bgColor=#e6efff>&nbsp;110 </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="2%"  bgColor=#e6efff>&nbsp;</TD></TR></TABLE>
<P align=center>P.1</P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<!--$$/page=--><A name=page_4></A><BR>
<TABLE
style="FONT-SIZE: 10pt; BORDER-LEFT-COLOR: black; BORDER-BOTTOM-COLOR: black; BORDER-TOP-COLOR: black; BORDER-COLLAPSE: collapse; BORDER-RIGHT-COLOR: black"
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD align=left><B>GILDAN ACTIVEWEAR INC.</B> </TD></TR>
  <TR vAlign=top>
    <TD align=left>Reconciliation to United States GAAP </TD></TR>
  <TR>
    <TD>&nbsp; </TD></TR>
  <TR vAlign=top>
    <TD align=left>Years ended October 2, 2011, October 3, 2010 and October 4,
      2009 </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>(Tabular amounts
      in thousands or thousands of US dollars, except per share amounts)
  </TD></TR></TABLE><BR>
<TABLE
style="FONT-SIZE: 10pt; BORDER-LEFT-COLOR: black; BORDER-BOTTOM-COLOR: black; BORDER-TOP-COLOR: black; BORDER-COLLAPSE: collapse; BORDER-RIGHT-COLOR: black"
cellSpacing=0 cellPadding=0 width="100%" border=0 BCLLIST>

  <TR>
    <TD vAlign=top width="5%"><B>(a)</B> </TD>
    <TD>
      <P align=justify><B>Consolidated statements of earnings and comprehensive
      income (continued):</B></P></TD></TR></TABLE><BR>
<TABLE
style="FONT-SIZE: 10pt; BORDER-LEFT-COLOR: black; BORDER-BOTTOM-COLOR: black; BORDER-TOP-COLOR: black; BORDER-COLLAPSE: collapse; BORDER-RIGHT-COLOR: black"
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD width="5%"  >&nbsp;</TD>
    <TD style="BORDER-TOP: #000000 2px solid; BORDER-BOTTOM: #000000 1px solid"
    vAlign=bottom align=left>
    <p style="text-indent: -15pt; margin-left: 15pt">&nbsp; </TD>
    <TD style="BORDER-TOP: #000000 2px solid; BORDER-BOTTOM: #000000 1px solid"
    vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD style="BORDER-TOP: #000000 2px solid; BORDER-BOTTOM: #000000 1px solid"
    vAlign=bottom align=right width="10%">2011 </TD>
    <TD style="BORDER-TOP: #000000 2px solid; BORDER-BOTTOM: #000000 1px solid"
    vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD style="BORDER-TOP: #000000 2px solid; BORDER-BOTTOM: #000000 1px solid"
    vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD style="BORDER-TOP: #000000 2px solid; BORDER-BOTTOM: #000000 1px solid"
    vAlign=bottom align=right width="10%">2010 </TD>
    <TD style="BORDER-TOP: #000000 2px solid; BORDER-BOTTOM: #000000 1px solid"
    vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD style="BORDER-TOP: #000000 2px solid; BORDER-BOTTOM: #000000 1px solid"
    vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD style="BORDER-TOP: #000000 2px solid; BORDER-BOTTOM: #000000 1px solid"
    vAlign=bottom align=right width="10%">2009 </TD>
    <TD style="BORDER-TOP: #000000 2px solid; BORDER-BOTTOM: #000000 1px solid"
    vAlign=bottom align=left width="2%" >&nbsp;</TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD vAlign=bottom>
    <p style="text-indent: -15pt; margin-left: 15pt">&nbsp; </TD>
    <TD vAlign=bottom width="1%" >&nbsp;</TD>
    <TD vAlign=bottom width="10%">&nbsp; </TD>
    <TD vAlign=bottom width="2%" >&nbsp;</TD>
    <TD vAlign=bottom width="1%" >&nbsp;</TD>
    <TD vAlign=bottom width="10%">&nbsp; </TD>
    <TD vAlign=bottom width="2%" >&nbsp;</TD>
    <TD vAlign=bottom width="1%" >&nbsp;</TD>
    <TD vAlign=bottom width="10%">&nbsp; </TD>
    <TD vAlign=bottom width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD vAlign=bottom align=left bgColor=#e6efff>
    <p style="text-indent: -15pt; margin-left: 15pt">Earnings per share
      attributable to the shareholders of </TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="10%" bgColor=#e6efff>&nbsp; </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="10%" bgColor=#e6efff>&nbsp; </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="10%" bgColor=#e6efff>&nbsp; </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD vAlign=bottom align=left>
    <p style="text-indent: -15pt; margin-left: 15pt">&nbsp;Gildan Activewear Inc. as per United
      States GAAP: </TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="10%">&nbsp; </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="10%">&nbsp; </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="10%">&nbsp; </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD vAlign=bottom align=left bgColor=#e6efff>
    <p style="text-indent: -15pt; margin-left: 15pt">&nbsp; &nbsp; &nbsp;Basic </TD>
    <TD vAlign=bottom align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD vAlign=bottom align=right width="10%" bgColor=#e6efff>&nbsp;1.92 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD vAlign=bottom align=right width="10%" bgColor=#e6efff>&nbsp;1.63 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD vAlign=bottom align=right width="10%" bgColor=#e6efff>&nbsp;0.79 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD vAlign=bottom align=left>
    <p style="text-indent: -15pt; margin-left: 15pt">&nbsp; &nbsp; &nbsp;Diluted </TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%">1.90 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%">1.62 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%">0.79 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD vAlign=bottom bgColor=#e6efff>
    <p style="text-indent: -15pt; margin-left: 15pt">&nbsp; </TD>
    <TD vAlign=bottom width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom width="10%" bgColor=#e6efff>&nbsp; </TD>
    <TD vAlign=bottom width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom width="10%" bgColor=#e6efff>&nbsp; </TD>
    <TD vAlign=bottom width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom width="10%" bgColor=#e6efff>&nbsp; </TD>
    <TD vAlign=bottom width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD vAlign=bottom align=left>
    <p style="text-indent: -15pt; margin-left: 15pt">Weighted average number of common shares
      outstanding </TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="10%"></TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="10%"></TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="10%"></TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD vAlign=bottom align=left bgColor=#e6efff>
    <p style="text-indent: -15pt; margin-left: 15pt">&nbsp; &nbsp; &nbsp;Basic </TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%" bgColor=#e6efff>121,526 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%" bgColor=#e6efff>121,159 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%" bgColor=#e6efff>120,811 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom
      align=left>
    <p style="text-indent: -15pt; margin-left: 15pt">&nbsp; &nbsp; &nbsp;Diluted </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="1%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=right
    width="10%">122,283 </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="2%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="1%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=right
    width="10%">121,980 </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="2%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="1%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=right
    width="10%">121,435 </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="2%" >&nbsp;</TD></TR></TABLE><BR>
<TABLE
style="FONT-SIZE: 10pt; BORDER-LEFT-COLOR: black; BORDER-BOTTOM-COLOR: black; BORDER-TOP-COLOR: black; BORDER-COLLAPSE: collapse; BORDER-RIGHT-COLOR: black"
cellSpacing=0 cellPadding=0 width="100%" border=0 BCLLIST>

  <TR>
    <TD vAlign=top width="5%"><B>(b)</B> </TD>
    <TD>
      <P align=justify><B>Consolidated statements of shareholders&#146;
      equity:</B></P></TD></TR></TABLE>
<P style="MARGIN-LEFT: 5%" align=justify>A reconciliation of shareholders&#146;
equity under Canadian GAAP to United States GAAP is as follows: </P>
<TABLE
style="FONT-SIZE: 10pt; BORDER-LEFT-COLOR: black; BORDER-BOTTOM-COLOR: black; BORDER-TOP-COLOR: black; BORDER-COLLAPSE: collapse; BORDER-RIGHT-COLOR: black"
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD width="5%"  >&nbsp;</TD>
    <TD style="BORDER-TOP: #000000 2px solid; BORDER-BOTTOM: #000000 1px solid"
    vAlign=bottom align=left>
    <p style="text-indent: -15pt; margin-left: 15pt">&nbsp; </TD>
    <TD style="BORDER-TOP: #000000 2px solid; BORDER-BOTTOM: #000000 1px solid"
    vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD style="BORDER-TOP: #000000 2px solid; BORDER-BOTTOM: #000000 1px solid"
    vAlign=bottom align=right width="12%">2011 </TD>
    <TD style="BORDER-TOP: #000000 2px solid; BORDER-BOTTOM: #000000 1px solid"
    vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD style="BORDER-TOP: #000000 2px solid; BORDER-BOTTOM: #000000 1px solid"
    vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD style="BORDER-TOP: #000000 2px solid; BORDER-BOTTOM: #000000 1px solid"
    vAlign=bottom align=right width="12%">2010 </TD>
    <TD style="BORDER-TOP: #000000 2px solid; BORDER-BOTTOM: #000000 1px solid"
    vAlign=bottom align=left width="2%" >&nbsp;</TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD vAlign=bottom>
    <p style="text-indent: -15pt; margin-left: 15pt">&nbsp; </TD>
    <TD vAlign=bottom width="1%" >&nbsp;</TD>
    <TD vAlign=bottom width="12%">&nbsp; </TD>
    <TD vAlign=bottom width="2%" >&nbsp;</TD>
    <TD vAlign=bottom width="1%" >&nbsp;</TD>
    <TD vAlign=bottom width="12%">&nbsp; </TD>
    <TD vAlign=bottom width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD vAlign=bottom align=left bgColor=#e6efff>
    <p style="text-indent: -15pt; margin-left: 15pt">Shareholders' equity as per
      Canadian GAAP </TD>
    <TD vAlign=bottom align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD vAlign=bottom align=right width="12%" bgColor=#e6efff>&nbsp;1,327,315
    </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD vAlign=bottom align=right width="12%" bgColor=#e6efff>&nbsp;1,114,429
    </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD vAlign=bottom>
    <p style="text-indent: -15pt; margin-left: 15pt">&nbsp; </TD>
    <TD vAlign=bottom width="1%" >&nbsp;</TD>
    <TD vAlign=bottom width="12%">&nbsp; </TD>
    <TD vAlign=bottom width="2%" >&nbsp;</TD>
    <TD vAlign=bottom width="1%" >&nbsp;</TD>
    <TD vAlign=bottom width="12%">&nbsp; </TD>
    <TD vAlign=bottom width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD vAlign=bottom align=left bgColor=#e6efff>
    <p style="text-indent: -15pt; margin-left: 15pt">Adjustments: </TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="12%" bgColor=#e6efff>&nbsp; </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="12%" bgColor=#e6efff>&nbsp; </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD vAlign=bottom align=left>
    <p style="text-indent: -15pt; margin-left: 15pt">&nbsp; &nbsp; &nbsp;Transaction costs (i) </TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%">(7,871</TD>
    <TD vAlign=bottom align=left width="2%" >) </TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%">(600</TD>
    <TD vAlign=bottom align=left width="2%" >) </TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD vAlign=bottom align=left bgColor=#e6efff>
    <p style="text-indent: -15pt; margin-left: 15pt">&nbsp; &nbsp;
      &nbsp;Remeasurement of contingent consideration (i) </TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%" bgColor=#e6efff>1,460 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD vAlign=bottom align=left>
    <p style="text-indent: -15pt; margin-left: 15pt">&nbsp; &nbsp; &nbsp;Lease termination costs
      (i) </TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%">(395</TD>
    <TD vAlign=bottom align=left width="2%" >) </TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%">- </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD vAlign=bottom align=left bgColor=#e6efff>
    <p style="text-indent: -15pt; margin-left: 15pt">&nbsp; &nbsp; &nbsp;Net
      pension expense (i) </TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%" bgColor=#e6efff>(3,506</TD>
    <TD vAlign=bottom align=left width="2%"  bgColor=#e6efff>)
</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD vAlign=bottom align=left>
    <p style="text-indent: -15pt; margin-left: 15pt">&nbsp; &nbsp; &nbsp;Tax effect of above
      adjustments </TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%">2,584 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%">- </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD vAlign=bottom align=left bgColor=#e6efff>
    <p style="text-indent: -15pt; margin-left: 15pt">&nbsp; &nbsp;
      &nbsp;Non-controlling interest in consolidated joint venture (ii) </TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%" bgColor=#e6efff>11,562 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="12%" bgColor=#e6efff>11,058 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom
      align=left>
    <p style="text-indent: -15pt; margin-left: 15pt">&nbsp; &nbsp; &nbsp;Pension liability adjustment, net of tax
      (iii) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="12%">(2,310</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%" >) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="12%">- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    bgColor=#e6efff>
    <p style="text-indent: -15pt; margin-left: 15pt">Shareholders' equity as per United States GAAP </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="1%"  bgColor=#e6efff>$</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=right
    width="12%" bgColor=#e6efff>&nbsp;1,328,839 </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="1%"  bgColor=#e6efff>$</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=right
    width="12%" bgColor=#e6efff>&nbsp;1,124,887 </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="2%"  bgColor=#e6efff>&nbsp;</TD></TR></TABLE>
<P align=center>P.2</P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<!--$$/page=--><A name=page_5></A><BR>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD align=left><B>GILDAN ACTIVEWEAR INC.</B> </TD></TR>
  <TR vAlign=top>
    <TD align=left>Reconciliation to United States GAAP </TD></TR>
  <TR>
    <TD>&nbsp; </TD></TR>
  <TR vAlign=top>
    <TD align=left>Years ended October 2, 2011, October 3, 2010 and October 4,
      2009 </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>(Tabular amounts
      in thousands or thousands of US dollars, except per share amounts)
  </TD></TR></TABLE><BR>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0 BCLLIST>

  <TR>
    <TD vAlign=top width="5%"><B>(c)</B> </TD>
    <TD>
      <P align=justify><B>Consolidated statements of cash
  flows:</B></P></TD></TR></TABLE><BR>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD width="5%"  >&nbsp;</TD>
    <TD style="BORDER-TOP: #000000 2px solid; BORDER-BOTTOM: #000000 1px solid"
    vAlign=bottom align=left>
    <p style="text-indent: -15pt; margin-left: 15pt">&nbsp; </TD>
    <TD style="BORDER-TOP: #000000 2px solid; BORDER-BOTTOM: #000000 1px solid"
    vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD style="BORDER-TOP: #000000 2px solid; BORDER-BOTTOM: #000000 1px solid"
    vAlign=bottom align=right width="10%">2011 </TD>
    <TD style="BORDER-TOP: #000000 2px solid; BORDER-BOTTOM: #000000 1px solid"
    vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD style="BORDER-TOP: #000000 2px solid; BORDER-BOTTOM: #000000 1px solid"
    vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD style="BORDER-TOP: #000000 2px solid; BORDER-BOTTOM: #000000 1px solid"
    vAlign=bottom align=right width="10%">2010 </TD>
    <TD style="BORDER-TOP: #000000 2px solid; BORDER-BOTTOM: #000000 1px solid"
    vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD style="BORDER-TOP: #000000 2px solid; BORDER-BOTTOM: #000000 1px solid"
    vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD style="BORDER-TOP: #000000 2px solid; BORDER-BOTTOM: #000000 1px solid"
    vAlign=bottom align=right width="10%">2009 </TD>
    <TD style="BORDER-TOP: #000000 2px solid; BORDER-BOTTOM: #000000 1px solid"
    vAlign=bottom align=left width="2%" >&nbsp;</TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD vAlign=bottom>
    <p style="text-indent: -15pt; margin-left: 15pt">&nbsp; </TD>
    <TD vAlign=bottom width="1%" >&nbsp;</TD>
    <TD vAlign=bottom width="10%">&nbsp; </TD>
    <TD vAlign=bottom width="2%" >&nbsp;</TD>
    <TD vAlign=bottom width="1%" >&nbsp;</TD>
    <TD vAlign=bottom width="10%">&nbsp; </TD>
    <TD vAlign=bottom width="2%" >&nbsp;</TD>
    <TD vAlign=bottom width="1%" >&nbsp;</TD>
    <TD vAlign=bottom width="10%">&nbsp; </TD>
    <TD vAlign=bottom width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD vAlign=bottom align=left bgColor=#e6efff>
    <p style="text-indent: -15pt; margin-left: 15pt">Cash flows from operating
      activities: </TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="10%" bgColor=#e6efff>&nbsp; </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="10%" bgColor=#e6efff>&nbsp; </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="10%" bgColor=#e6efff>&nbsp; </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD vAlign=bottom align=left>
    <p style="text-indent: -15pt; margin-left: 15pt">Net cash provided by operating activities as
      per Canadian GAAP </TD>
    <TD vAlign=bottom align=left width="1%" >$</TD>
    <TD vAlign=bottom align=right width="10%">&nbsp;181,550 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >$</TD>
    <TD vAlign=bottom align=right width="10%">&nbsp;301,551 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >$</TD>
    <TD vAlign=bottom align=right width="10%">&nbsp;169,179 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD vAlign=bottom bgColor=#e6efff>
    <p style="text-indent: -15pt; margin-left: 15pt">&nbsp; </TD>
    <TD vAlign=bottom width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom width="10%" bgColor=#e6efff>&nbsp; </TD>
    <TD vAlign=bottom width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom width="10%" bgColor=#e6efff>&nbsp; </TD>
    <TD vAlign=bottom width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom width="10%" bgColor=#e6efff>&nbsp; </TD>
    <TD vAlign=bottom width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD vAlign=bottom align=left>
    <p style="text-indent: -15pt; margin-left: 15pt">United States GAAP adjustments to: </TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="10%">&nbsp; </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="10%">&nbsp; </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="10%">&nbsp; </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD vAlign=bottom align=left bgColor=#e6efff>
    <p style="text-indent: -15pt; margin-left: 15pt">&nbsp; &nbsp; &nbsp;Net
      earnings </TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%" bgColor=#e6efff>(6,624</TD>
    <TD vAlign=bottom align=left width="2%"  bgColor=#e6efff>)
</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%" bgColor=#e6efff>3,186 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%" bgColor=#e6efff>110 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD vAlign=bottom align=left>
    <p style="text-indent: -15pt; margin-left: 15pt">&nbsp; &nbsp; &nbsp;Future income taxes </TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%">(2,584</TD>
    <TD vAlign=bottom align=left width="2%" >) </TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%">- </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%">- </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD vAlign=bottom align=left bgColor=#e6efff>
    <p style="text-indent: -15pt; margin-left: 15pt">&nbsp;&nbsp;&nbsp;&nbsp;
      Non-controlling interest in consolidated joint venture </TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%" bgColor=#e6efff>(504</TD>
    <TD vAlign=bottom align=left width="2%"  bgColor=#e6efff>)
</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%" bgColor=#e6efff>(3,786</TD>
    <TD vAlign=bottom align=left width="2%"  bgColor=#e6efff>)
</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%" bgColor=#e6efff>(110</TD>
    <TD vAlign=bottom align=left width="2%"  bgColor=#e6efff>)
  </TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD vAlign=bottom align=left>
    <p style="text-indent: -15pt; margin-left: 15pt">&nbsp; &nbsp; &nbsp;Accounts payable and
      accrued liabilities </TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%">2,046 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%">- </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%">- </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    bgColor=#e6efff>
    <p style="text-indent: -15pt; margin-left: 15pt">&nbsp; &nbsp; &nbsp;Other </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="10%" bgColor=#e6efff>395 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="10%" bgColor=#e6efff>- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="10%" bgColor=#e6efff>- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD vAlign=bottom>
    <p style="text-indent: -15pt; margin-left: 15pt">&nbsp; </TD>
    <TD vAlign=bottom width="1%" >&nbsp;</TD>
    <TD vAlign=bottom width="10%">&nbsp; </TD>
    <TD vAlign=bottom width="2%" >&nbsp;</TD>
    <TD vAlign=bottom width="1%" >&nbsp;</TD>
    <TD vAlign=bottom width="10%">&nbsp; </TD>
    <TD vAlign=bottom width="2%" >&nbsp;</TD>
    <TD vAlign=bottom width="1%" >&nbsp;</TD>
    <TD vAlign=bottom width="10%">&nbsp; </TD>
    <TD vAlign=bottom width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD vAlign=bottom align=left bgColor=#e6efff>
    <p style="text-indent: -15pt; margin-left: 15pt">Net cash provided by
      operating activities as per United States GAAP </TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%" bgColor=#e6efff>174,279 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%" bgColor=#e6efff>300,951 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%" bgColor=#e6efff>169,179 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD vAlign=bottom>
    <p style="text-indent: -15pt; margin-left: 15pt">&nbsp; </TD>
    <TD vAlign=bottom width="1%" >&nbsp;</TD>
    <TD vAlign=bottom width="10%">&nbsp; </TD>
    <TD vAlign=bottom width="2%" >&nbsp;</TD>
    <TD vAlign=bottom width="1%" >&nbsp;</TD>
    <TD vAlign=bottom width="10%">&nbsp; </TD>
    <TD vAlign=bottom width="2%" >&nbsp;</TD>
    <TD vAlign=bottom width="1%" >&nbsp;</TD>
    <TD vAlign=bottom width="10%">&nbsp; </TD>
    <TD vAlign=bottom width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD vAlign=bottom align=left bgColor=#e6efff>
    <p style="text-indent: -15pt; margin-left: 15pt">Net cash provided by (used
      in) financing activities as per Canadian GAAP and United States GAAP </TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%" bgColor=#e6efff>172,832 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%" bgColor=#e6efff>(1,359</TD>
    <TD vAlign=bottom align=left width="2%"  bgColor=#e6efff>)
</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%" bgColor=#e6efff>(47,711</TD>
    <TD vAlign=bottom align=left width="2%"  bgColor=#e6efff>)
  </TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD vAlign=bottom>
    <p style="text-indent: -15pt; margin-left: 15pt">&nbsp; </TD>
    <TD vAlign=bottom width="1%" >&nbsp;</TD>
    <TD vAlign=bottom width="10%">&nbsp; </TD>
    <TD vAlign=bottom width="2%" >&nbsp;</TD>
    <TD vAlign=bottom width="1%" >&nbsp;</TD>
    <TD vAlign=bottom width="10%">&nbsp; </TD>
    <TD vAlign=bottom width="2%" >&nbsp;</TD>
    <TD vAlign=bottom width="1%" >&nbsp;</TD>
    <TD vAlign=bottom width="10%">&nbsp; </TD>
    <TD vAlign=bottom width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD vAlign=bottom align=left bgColor=#e6efff>
    <p style="text-indent: -15pt; margin-left: 15pt">Net cash used in investing
      activities as per Canadian GAAP </TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%" bgColor=#e6efff>(523,937</TD>
    <TD vAlign=bottom align=left width="2%"  bgColor=#e6efff>)
</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%" bgColor=#e6efff>(141,246</TD>
    <TD vAlign=bottom align=left width="2%"  bgColor=#e6efff>)
</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%" bgColor=#e6efff>(34,198</TD>
    <TD vAlign=bottom align=left width="2%"  bgColor=#e6efff>)
  </TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD vAlign=bottom>
    <p style="text-indent: -15pt; margin-left: 15pt">&nbsp; </TD>
    <TD vAlign=bottom width="1%" >&nbsp;</TD>
    <TD vAlign=bottom width="10%">&nbsp; </TD>
    <TD vAlign=bottom width="2%" >&nbsp;</TD>
    <TD vAlign=bottom width="1%" >&nbsp;</TD>
    <TD vAlign=bottom width="10%">&nbsp; </TD>
    <TD vAlign=bottom width="2%" >&nbsp;</TD>
    <TD vAlign=bottom width="1%" >&nbsp;</TD>
    <TD vAlign=bottom width="10%">&nbsp; </TD>
    <TD vAlign=bottom width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD vAlign=bottom align=left bgColor=#e6efff>
    <p style="text-indent: -15pt; margin-left: 15pt">United States GAAP
      adjustments to: </TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="10%" bgColor=#e6efff>&nbsp; </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="10%" bgColor=#e6efff>&nbsp; </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="10%" bgColor=#e6efff>&nbsp; </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom
      align=left>
    <p style="text-indent: -15pt; margin-left: 15pt">&nbsp; &nbsp; &nbsp;Business acquisitions </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="10%">7,271 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="10%">600 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="10%">- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD vAlign=bottom align=left bgColor=#e6efff>
    <p style="text-indent: -15pt; margin-left: 15pt">Net cash used in investing
      activities as per United States GAAP </TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%" bgColor=#e6efff>(516,666</TD>
    <TD vAlign=bottom align=left width="2%"  bgColor=#e6efff>)
</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%" bgColor=#e6efff>(140,646</TD>
    <TD vAlign=bottom align=left width="2%"  bgColor=#e6efff>)
</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%" bgColor=#e6efff>(34,198</TD>
    <TD vAlign=bottom align=left width="2%"  bgColor=#e6efff>)
  </TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD vAlign=bottom>
    <p style="text-indent: -15pt; margin-left: 15pt">&nbsp; </TD>
    <TD vAlign=bottom width="1%" >&nbsp;</TD>
    <TD vAlign=bottom width="10%">&nbsp; </TD>
    <TD vAlign=bottom width="2%" >&nbsp;</TD>
    <TD vAlign=bottom width="1%" >&nbsp;</TD>
    <TD vAlign=bottom width="10%">&nbsp; </TD>
    <TD vAlign=bottom width="2%" >&nbsp;</TD>
    <TD vAlign=bottom width="1%" >&nbsp;</TD>
    <TD vAlign=bottom width="10%">&nbsp; </TD>
    <TD vAlign=bottom width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    bgColor=#e6efff>
    <p style="text-indent: -15pt; margin-left: 15pt">Effect of exchange rate changes on cash and cash
      equivalents denominated in foreign currencies </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=right
    width="10%" bgColor=#e6efff>(85</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="2%"  bgColor=#e6efff>) </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=right
    width="10%" bgColor=#e6efff>(236</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="2%"  bgColor=#e6efff>) </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=right
    width="10%" bgColor=#e6efff>105 </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD vAlign=bottom align=left>
    <p style="text-indent: -15pt; margin-left: 15pt">Net (decrease) increase in cash and cash
      equivalents during the year </TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%">(169,640</TD>
    <TD vAlign=bottom align=left width="2%" >) </TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%">158,710 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="10%">87,375 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    bgColor=#e6efff>
    <p style="text-indent: -15pt; margin-left: 15pt">Cash and cash equivalents, beginning of year </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="10%" bgColor=#e6efff>258,442 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="10%" bgColor=#e6efff>99,732 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="10%" bgColor=#e6efff>12,357 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left>
    <p style="text-indent: -15pt; margin-left: 15pt">Cash
      and cash equivalents, end of year </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="1%" >$</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=right
    width="10%">&nbsp;88,802 </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="2%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="1%" >$</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=right
    width="10%">&nbsp;258,442 </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="2%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="1%" >$</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=right
    width="10%">&nbsp;99,732 </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="2%" >&nbsp;</TD></TR></TABLE>
<P align=center>P.3</P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<!--$$/page=--><A name=page_6></A><BR>
<TABLE
style="FONT-SIZE: 10pt; BORDER-LEFT-COLOR: black; BORDER-BOTTOM-COLOR: black; BORDER-TOP-COLOR: black; BORDER-COLLAPSE: collapse; BORDER-RIGHT-COLOR: black"
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD align=left><B>GILDAN ACTIVEWEAR INC.</B> </TD></TR>
  <TR vAlign=top>
    <TD align=left>Reconciliation to United States GAAP </TD></TR>
  <TR>
    <TD>&nbsp; </TD></TR>
  <TR vAlign=top>
    <TD align=left>Years ended October 2, 2011, October 3, 2010 and October 4,
      2009 </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>(Tabular amounts
      in thousands or thousands of US dollars, except per share amounts)
  </TD></TR></TABLE>
<P align=justify><B>Notes to the United States GAAP adjustments:</B></P>
<TABLE
style="FONT-SIZE: 10pt; BORDER-LEFT-COLOR: black; BORDER-BOTTOM-COLOR: black; BORDER-TOP-COLOR: black; BORDER-COLLAPSE: collapse; BORDER-RIGHT-COLOR: black"
cellSpacing=0 cellPadding=0 width="100%" border=0 BCLLIST>

  <TR>
    <TD vAlign=top width="5%"><B>(i)</B> </TD>
    <TD>
      <P align=justify><B>Business combinations</B></P></TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD>
      <P align=justify>Effective October 5, 2009, the Company adopted the new
      accounting standard for business combinations in Accounting Standards
      Codification 805, &#147;Business Combinations&#148; (ASC 805).</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD>
      <P align=justify><I>Acquisition related costs </I>- Under ASC 805,
      restructuring charges (such as lease termination costs) and transaction
      costs directly related to the acquisition are expensed as incurred. 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. The adjustment for transaction costs of $7.3 million
      (2010 - $0.6 million) and lease termination costs of $0.4 million
      represents acquisition-related costs which were included in the cost of
      business combinations, for Canadian GAAP purposes, which occurred in
      fiscal 2011.</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD>
      <P align=justify><I>Contingent consideration </I>- Under ASC 805, the
      estimated fair value of contingent consideration is recognized at the
      acquisition date and a remeasurement adjustment to fair value is recorded
      at each reporting date with an offset to current period earnings. Under
      Canadian GAAP, contingent consideration is not recorded at the date of
      acquisition unless the outcome of the contingency can be determined beyond
      a reasonable doubt. The adjustment for the remeasurement of contingent
      consideration of $1.5 million represents the decrease in the fair value of
      the contingent consideration of $5.3 million recognized under U.S. GAAP at
      the date of acquisition, which was not recognized under Canadian GAAP for
      a business combination which occurred in fiscal 2011.</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD>
      <P align=justify><I>Accrued benefit liabilities </I>&#150; Under ASC 805, the
      effects of any planned, but not executed, amendments, terminations, or
      curtailments to defined benefit pension plans and other postretirement
      plans acquired are excluded from the measurement of the funded status of
      those plans at the date of acquisition. Planned or anticipated amendments,
      terminations, or curtailments are not part of the liabilities assumed as
      of the acquisition date. Such actions are recognized in the post business
      combination financial statements as a charge or credit to earnings. Under
      Canadian GAAP, the accrued benefit asset or accrued benefit liability at
      the time of acquisition is measured based on the amount expected to be
      received or paid on settlement, when the plan is expected to be wound up.
      As a result of the difference in the initial measurement of the accrued
      pension benefit liability at the date of acquisition, as well as the
      subsequent impact on net earnings related to differences in the
      measurement of the accrued benefit liability as at October 2, 2011, an
      adjustment for a charge of $3.5 million was required under United States
      GAAP.</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top width="5%"><B>(ii)</B> </TD>
    <TD>
      <P align=justify><B>Non-controlling interest in consolidated joint
      venture</B></P></TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD>
      <P align=justify>Effective October 5, 2009, the Company adopted the new
      accounting standard for consolidation in Accounting Standards Codification
      810, &#147;Consolidation&#148; (ASC 810). Under ASC 810, non-controlling interest is
      presented as a separate component of shareholders&#146; equity (as opposed to a
      separate caption between liabilities and equity). 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 presentation of non- controlling interests as required under United
      States GAAP.</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top width="5%"><B>(iii)</B> </TD>
    <TD>
      <P align=justify><B>Defined Benefit Pension Plans</B></P></TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD>
      <P align=justify>Under U.S. GAAP, Accounting Standards Codification 715,
      &#147;Compensation &#150; Retirement Benefits&#148; (ASC 715), the Company is required to
      recognize the funded status of defined benefit pension plans on the
      balance sheet. The accumulated benefit obligation for the defined benefit
      pension plan acquired through a business combination which occurred in
      fiscal 2011 exceeds the fair value of plan assets as at October 2, 2011.
      ASC 715 requires the funded status of pension plans to be presented on the
      balance sheet by recording the unrecognized
actuarial</P></TD></TR></TABLE>
<P align=center>P.4</P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<!--$$/page=--><A name=page_7></A><BR>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD align=left><B>GILDAN ACTIVEWEAR INC.</B> </TD></TR>
  <TR vAlign=top>
    <TD align=left>Reconciliation to United States GAAP </TD></TR>
  <TR>
    <TD>&nbsp; </TD></TR>
  <TR vAlign=top>
    <TD align=left>Years ended October 2, 2011, October 3, 2010 and October 4,
      2009 </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>(Tabular amounts
      in thousands or thousands of US dollars, except per share amounts)
  </TD></TR></TABLE>
<P align=justify><B>Notes to the United States GAAP adjustments (continued):
</B></P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0 BCLLIST>

  <TR>
    <TD vAlign=top width="5%"><B>(iii)</B> </TD>
    <TD>
      <P align=justify><B>Defined Benefit Pension Plans (continued) <br>
      </B>gains
      and losses and prior service cost in accumulated other comprehensive loss.
      As a result, the Company has recorded a pension liability adjustment of
      $2.3 million, net of related taxes, to other comprehensive
  income.</P></TD></TR></TABLE>
<P align=justify><B>Adoption of new accounting standards: </B></P>
<P align=justify><B>Consolidation of Variable Interest Entities<br>
</B>In June 2009, the Financial Accounting Standards Board (FASB)
issued Accounting Standards Update (ASU) No. 2009-17 (ASU 2009-17),
(Consolidations Topic 810), Improvements to Financial Reporting by Enterprises
Involved with Variable Interest Entities (VIEs). ASU 2009-17 requires an ongoing
reassessment of determining whether a variable interest gives a company a
controlling financial interest in a VIE. It also requires an entity to
qualitatively, rather than quantitatively, determine whether a company is the
primary beneficiary of a VIE. Under the new standard, the primary beneficiary of
a VIE is a party that has the controlling financial interest in the VIE and has
both the power to direct the activities that most significantly impact the VIE&#146;s
economic success and the obligation to absorb losses or the right to receive
benefits that could potentially be significant to the VIE. ASU 2009-17 is
effective for interim and annual reporting periods beginning after November 15,
2009. The Company adopted this standard effective the beginning of fiscal 2011
(October 4, 2010) and the adoption of this standard did not have any impact on
its financial statements. </P>
<P align=justify><B>Future Accounting Standards: </B></P>
<P align=justify><B>International Financial Reporting Standards <br>
</B>In February 2008, the Canadian Accounting Standards Board
confirmed that International Financial Reporting Standards (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 1, 2011. As a result, the Company will be required to change over
to IFRS for its fiscal 2012 interim and annual consolidated financial statements
beginning October 3, 2011 with comparative information for fiscal 2011. In 2008,
the U.S. Securities and Exchange Commission adopted rules to accept filings of
financial statements of foreign private issuers prepared in accordance with IFRS
as issued by the IASB without reconciliation to U.S. GAAP. As a result, a
reconciliation to United States GAAP will no longer be presented for the
Company&#146;s consolidated financial statements for fiscal 2012.</P>
<P align=center>P.5</P>
<HR align=center width="100%" color=black noShade SIZE=5>

</BODY>

</HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.5
<SEQUENCE>6
<FILENAME>exhibit99-5.htm
<DESCRIPTION>EXHIBIT 99.5
<TEXT>
<HTML>
<HEAD>
   <TITLE>Gildan Activewear Inc.: Exhibit 99.5 - Filed by newsfilecorp.com</TITLE>
</HEAD>

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

<HR noshade align="center" width=100% size=3 color="black">
<A name=page_17></A>
<P align=right><B>EXHIBIT 99.5 </B></P>
<P align=center><B>CERTIFICATION </B><BR><B>REQUIRED BY RULE 13a-14(a)
</B><BR><B>OR RULE 15d-14(a) </B><BR></P>
<P align=justify>I, Glenn J. Chamandy, certify that: </P>
<TABLE
style="FONT-SIZE: 10pt; BORDER-LEFT-COLOR: black; BORDER-BOTTOM-COLOR: black; BORDER-TOP-COLOR: black; BORDER-COLLAPSE: collapse; BORDER-RIGHT-COLOR: black"
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD align=left>
      <P align=justify>1. </P></TD>
    <TD align=left width="95%" colSpan=2>
      <P align=justify>I have reviewed this annual report on Form 40-F of Gildan
      Activewear Inc.; </P></TD></TR>
  <TR>
    <TD>
      <P align=justify></P></TD>
    <TD width="5%">
      <P align=justify></P></TD>
    <TD width="90%">
      <P align=justify>&nbsp;</P></TD></TR>
  <TR vAlign=top>
    <TD align=left>
      <P align=justify>2. </P></TD>
    <TD align=left width="95%" colSpan=2>
      <P align=justify>Based on my knowledge, this report does not contain any
      untrue statement of a material fact or omit to state a material fact
      necessary to make the statements made, in light of the circumstances under
      which such statements were made, not misleading with respect to the period
      covered by this report; </P></TD></TR>
  <TR>
    <TD>
      <P align=justify></P></TD>
    <TD width="5%">
      <P align=justify></P></TD>
    <TD width="90%">
      <P align=justify>&nbsp;</P></TD></TR>
  <TR vAlign=top>
    <TD align=left>
      <P align=justify>3. </P></TD>
    <TD align=left width="95%" colSpan=2>
      <P align=justify>Based on my knowledge, the financial statements, and
      other financial information included in this report, fairly present in all
      material respects the financial condition, results of operations and cash
      flows of the issuer as of, and for, the periods presented in this report;
      </P></TD></TR>
  <TR>
    <TD>
      <P align=justify></P></TD>
    <TD width="5%">
      <P align=justify></P></TD>
    <TD width="90%">
      <P align=justify>&nbsp;</P></TD></TR>
  <TR vAlign=top>
    <TD align=left>
      <P align=justify>4. </P></TD>
    <TD align=left width="95%" colSpan=2>
      <P align=justify>The issuer&#146;s other certifying officer and I are
      responsible for establishing and maintaining disclosure controls and
      procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and
      internal control over financial reporting (as defined in Exchange Act
      Rules 13(a) &#150; 15(f) and 15(d) &#150; 15(f)) for the issuer and have: </P></TD></TR>
  <TR>
    <TD>
      <P align=justify></P></TD>
    <TD width="5%">
      <P align=justify></P></TD>
    <TD width="90%">
      <P align=justify>&nbsp;</P></TD></TR>
  <TR vAlign=top>
    <TD align=left></TD>
    <TD align=left width="5%">
      <P align=justify>(a) </P></TD>
    <TD align=left width="90%">
      <P align=justify>Designed such disclosure controls and procedures, or
      caused such disclosure controls and procedures to be designed under our
      supervision, to ensure that material information relating to the issuer,
      including its consolidated subsidiaries, is made known to us by others
      within those entities, particularly during the period in which this report
      is being prepared; </P></TD></TR>
  <TR>
    <TD>
      <P align=justify></P></TD>
    <TD width="5%">
      <P align=justify></P></TD>
    <TD width="90%">
      <P align=justify>&nbsp;</P></TD></TR>
  <TR vAlign=top>
    <TD align=left></TD>
    <TD align=left width="5%">
      <P align=justify>(b) </P></TD>
    <TD align=left width="90%">
      <P align=justify>Designed such internal control over financial reporting,
      or caused such internal control over financial reporting to be designed
      under our supervision, to provide reasonable assurance regarding the
      reliability of financial reporting and the preparation of financial
      statements for external purposes in accordance with generally accepted
      accounting principles; </P></TD></TR>
  <TR>
    <TD>
      <P align=justify></P></TD>
    <TD width="5%">
      <P align=justify></P></TD>
    <TD width="90%">
      <P align=justify>&nbsp;</P></TD></TR>
  <TR vAlign=top>
    <TD align=left></TD>
    <TD align=left width="5%">
      <P align=justify>(c) </P></TD>
    <TD align=left width="90%">
      <P align=justify>Evaluated the effectiveness of the issuer&#146;s disclosure
      controls and procedures and presented in this report our conclusions about
      the effectiveness of the disclosure controls and procedures, as of the end
      of the period covered by this report based on such evaluation; and
  </P></TD></TR>
  <TR>
    <TD>
      <P align=justify></P></TD>
    <TD width="5%">
      <P align=justify></P></TD>
    <TD width="90%">
      <P align=justify>&nbsp;</P></TD></TR>
  <TR vAlign=top>
    <TD align=left></TD>
    <TD align=left width="5%">
      <P align=justify>(d) </P></TD>
    <TD align=left width="90%">
      <P align=justify>Disclosed in this report any change in the issuer&#146;s
      internal control over financial reporting that occurred during the period
      covered by the annual report that has materially affected, or is
      reasonably likely to materially affect, the issuer&#146;s internal control over
      financial reporting; and </P></TD></TR>
  <TR>
    <TD>
      <P align=justify></P></TD>
    <TD width="5%">
      <P align=justify></P></TD>
    <TD width="90%">
      <P align=justify>&nbsp;</P></TD></TR>
  <TR vAlign=top>
    <TD align=left>
      <P align=justify>5. </P></TD>
    <TD align=left width="95%" colSpan=2>
      <P align=justify>The issuer&#146;s other certifying officer and I have
      disclosed, based on our most recent evaluation of internal control over
      financial reporting, to the issuer&#146;s auditors and the audit committee of
      the issuer&#146;s board of directors (or persons performing the equivalent
      functions): </P></TD></TR>
  <TR>
    <TD>
      <P align=justify></P></TD>
    <TD width="5%">
      <P align=justify></P></TD>
    <TD width="90%">
      <P align=justify>&nbsp;</P></TD></TR>
  <TR vAlign=top>
    <TD align=left></TD>
    <TD align=left width="5%">
      <P align=justify>(a) </P></TD>
    <TD align=left width="90%">
      <P align=justify>All significant deficiencies and material weaknesses in
      the design or operation of internal control over financial reporting which
      are reasonably likely to adversely affect the issuer&#146;s ability to record,
      process, summarize and report financial information; and </P></TD></TR>
  <TR>
    <TD>
      <P align=justify></P></TD>
    <TD width="5%">
      <P align=justify></P></TD>
    <TD width="90%">
      <P align=justify>&nbsp;</P></TD></TR>
  <TR vAlign=top>
    <TD align=left></TD>
    <TD align=left width="5%">
      <P align=justify>(b) </P></TD>
    <TD align=left width="90%">
      <P align=justify>Any fraud, whether or not material, that involves
      management or other employees who have a significant role in the issuer&#146;s
      internal control over financial reporting. </P></TD></TR>
  <TR>
    <TD>
      <P align=justify></P></TD>
    <TD width="5%">
      <P align=justify></P></TD>
    <TD width="90%">
      <P align=justify>&nbsp;</P></TD></TR>
  <TR vAlign=top>
    <TD align=left>
      <P align=justify></P></TD>
    <TD align=left width="5%">
      <P align=justify>Date: </P></TD>
    <TD align=left width="90%">
      <P align=justify>December 9, 2011 </P></TD></TR></TABLE><BR>
<TABLE
style="FONT-SIZE: 10pt; BORDER-LEFT-COLOR: black; BORDER-BOTTOM-COLOR: black; BORDER-TOP-COLOR: black; BORDER-COLLAPSE: collapse; BORDER-RIGHT-COLOR: black"
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD align=left>&nbsp;</TD>
    <TD align=left width="48%" colSpan=2><U>/s/ <I>Glenn J.
      Chamandy&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      &nbsp;</I></U></TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp;</TD>
    <TD noWrap align=left
      width="5%">Name:&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    </TD>
    <TD align=left width="43%">Glenn J. Chamandy </TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp;</TD>
    <TD noWrap align=left width="5%">Title: </TD>
    <TD align=left width="43%">President and Chief Executive Officer
  </TD></TR></TABLE><BR>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<A name=page_18></A>
<P align=center><B>CERTIFICATION </B><BR><B>REQUIRED BY RULE 13a-14(a)
</B><BR><B>OR RULE 15d-14(a) </B><BR></P>
<P align=justify>I, Laurence G. Sellyn, certify that: </P>
<TABLE
style="FONT-SIZE: 10pt; BORDER-LEFT-COLOR: black; BORDER-BOTTOM-COLOR: black; BORDER-TOP-COLOR: black; BORDER-COLLAPSE: collapse; BORDER-RIGHT-COLOR: black"
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD align=left>
      <P align=justify>1. </P></TD>
    <TD align=left width="95%" colSpan=2>
      <P align=justify>I have reviewed this annual report on Form 40-F of Gildan
      Activewear Inc.; </P></TD></TR>
  <TR>
    <TD>
      <P align=justify></P></TD>
    <TD width="5%">
      <P align=justify>&nbsp;</P></TD>
    <TD width="90%">
      <P align=justify></P></TD></TR>
  <TR vAlign=top>
    <TD align=left>
      <P align=justify>2. </P></TD>
    <TD align=left width="95%" colSpan=2>
      <P align=justify>Based on my knowledge, this report does not contain any
      untrue statement of a material fact or omit to state a material fact
      necessary to make the statements made, in light of the circumstances under
      which such statements were made, not misleading with respect to the period
      covered by this report; </P></TD></TR>
  <TR>
    <TD>
      <P align=justify></P></TD>
    <TD width="5%">
      <P align=justify>&nbsp;</P></TD>
    <TD width="90%">
      <P align=justify></P></TD></TR>
  <TR vAlign=top>
    <TD align=left>
      <P align=justify>3. </P></TD>
    <TD align=left width="95%" colSpan=2>
      <P align=justify>Based on my knowledge, the financial statements, and
      other financial information included in this report, fairly present in all
      material respects the financial condition, results of operations and cash
      flows of the issuer as of, and for, the periods presented in this report;
      </P></TD></TR>
  <TR>
    <TD>
      <P align=justify></P></TD>
    <TD width="5%">
      <P align=justify>&nbsp;</P></TD>
    <TD width="90%">
      <P align=justify></P></TD></TR>
  <TR vAlign=top>
    <TD align=left>
      <P align=justify>4. </P></TD>
    <TD align=left width="95%" colSpan=2>
      <P align=justify>The issuer&#146;s other certifying officer and I are
      responsible for establishing and maintaining disclosure controls and
      procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and
      internal control over financial reporting (as defined in Exchange Act
      Rules 13(a) &#150; 15(f) and 15(d) &#150; 15(f)) for the issuer and have: </P></TD></TR>
  <TR>
    <TD>
      <P align=justify></P></TD>
    <TD width="5%">
      <P align=justify>&nbsp;</P></TD>
    <TD width="90%">
      <P align=justify>&nbsp;&nbsp; </P></TD></TR>
  <TR vAlign=top>
    <TD align=left></TD>
    <TD align=left width="5%">
      <P align=justify>(a) </P></TD>
    <TD align=left width="90%">
      <P align=justify>Designed such disclosure controls and procedures, or
      caused such disclosure controls and procedures to be designed under our
      supervision, to ensure that material information relating to the issuer,
      including its consolidated subsidiaries, is made known to us by others
      within those entities, particularly during the period in which this report
      is being prepared; </P></TD></TR>
  <TR>
    <TD>
      <P align=justify></P></TD>
    <TD width="5%">
      <P align=justify>&nbsp;</P></TD>
    <TD width="90%">
      <P align=justify></P></TD></TR>
  <TR vAlign=top>
    <TD align=left></TD>
    <TD align=left width="5%">
      <P align=justify>(b) </P></TD>
    <TD align=left width="90%">
      <P align=justify>Designed such internal control over financial reporting,
      or caused such internal control over financial reporting to be designed
      under our supervision, to provide reasonable assurance regarding the
      reliability of financial reporting and the preparation of financial
      statements for external purposes in accordance with generally accepted
      accounting principles; </P></TD></TR>
  <TR>
    <TD>
      <P align=justify></P></TD>
    <TD width="5%">
      <P align=justify>&nbsp;</P></TD>
    <TD width="90%">
      <P align=justify></P></TD></TR>
  <TR vAlign=top>
    <TD align=left></TD>
    <TD align=left width="5%">
      <P align=justify>(c) </P></TD>
    <TD align=left width="90%">
      <P align=justify>Evaluated the effectiveness of the issuer&#146;s disclosure
      controls and procedures and presented in this report our conclusions about
      the effectiveness of the disclosure controls and procedures, as of the end
      of the period covered by this report based on such evaluation; and
  </P></TD></TR>
  <TR>
    <TD>
      <P align=justify></P></TD>
    <TD width="5%">
      <P align=justify>&nbsp; </P></TD>
    <TD width="90%">
      <P align=justify></P></TD></TR>
  <TR vAlign=top>
    <TD align=left></TD>
    <TD align=left width="5%">
      <P align=justify>(d) </P></TD>
    <TD align=left width="90%">
      <P align=justify>Disclosed in this report any change in the issuer&#146;s
      internal control over financial reporting that occurred during the period
      covered by the annual report that has materially affected, or is
      reasonably likely to materially affect, the issuer&#146;s internal control over
      financial reporting; and </P></TD></TR>
  <TR>
    <TD>
      <P align=justify></P></TD>
    <TD width="5%">
      <P align=justify>&nbsp;</P></TD>
    <TD width="90%">
      <P align=justify></P></TD></TR>
  <TR vAlign=top>
    <TD align=left>
      <P align=justify>5. </P></TD>
    <TD align=left width="95%" colSpan=2>
      <P align=justify>The issuer&#146;s other certifying officer and I have
      disclosed, based on our most recent evaluation of internal control over
      financial reporting, to the issuer&#146;s auditors and the audit committee of
      the issuer&#146;s board of directors (or persons performing the equivalent
      functions): </P></TD></TR>
  <TR>
    <TD>
      <P align=justify></P></TD>
    <TD width="5%">
      <P align=justify>&nbsp;</P></TD>
    <TD width="90%">
      <P align=justify></P></TD></TR>
  <TR vAlign=top>
    <TD align=left></TD>
    <TD align=left width="5%">
      <P align=justify>(a) </P></TD>
    <TD align=left width="90%">
      <P align=justify>All significant deficiencies and material weaknesses in
      the design or operation of internal control over financial reporting which
      are reasonably likely to adversely affect the issuer&#146;s ability to record,
      process, summarize and report financial information; and </P></TD></TR>
  <TR>
    <TD>
      <P align=justify></P></TD>
    <TD width="5%">
      <P align=justify>&nbsp;</P></TD>
    <TD width="90%">
      <P align=justify></P></TD></TR>
  <TR vAlign=top>
    <TD align=left></TD>
    <TD align=left width="5%">
      <P align=justify>(b) </P></TD>
    <TD align=left width="90%">
      <P align=justify>Any fraud, whether or not material, that involves
      management or other employees who have a significant role in the issuer&#146;s
      internal control over financial reporting. </P></TD></TR>
  <TR>
    <TD>
      <P align=justify></P></TD>
    <TD width="5%">
      <P align=justify>&nbsp;</P></TD>
    <TD width="90%">
      <P align=justify></P></TD></TR>
  <TR vAlign=top>
    <TD align=left>
      <P align=justify></P></TD>
    <TD align=left width="5%">
      <P align=justify>Date: </P></TD>
    <TD align=left width="90%">
      <P align=justify>December 9, 2011 </P></TD></TR></TABLE><BR>
<TABLE
style="FONT-SIZE: 10pt; BORDER-LEFT-COLOR: black; BORDER-BOTTOM-COLOR: black; BORDER-TOP-COLOR: black; BORDER-COLLAPSE: collapse; BORDER-RIGHT-COLOR: black"
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD align=left  >&nbsp;</TD>
    <TD align=left width="48%" colSpan=2><U>/s/ <I>Laurence G.
      Sellyn&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</I></U></TD></TR>
  <TR vAlign=top>
    <TD align=left  >&nbsp;</TD>
    <TD noWrap align=left width="5%"
      >Name:&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    </TD>
    <TD align=left width="43%">Laurence G. Sellyn </TD></TR>
  <TR vAlign=top>
    <TD align=left  ></TD>
    <TD align=left width="5%" >Title: </TD>
    <TD align=left width="43%">Executive Vice-President, Chief Financial and
      Administrative Officer </TD></TR></TABLE><BR>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>

</BODY>

</HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.6
<SEQUENCE>7
<FILENAME>exhibit99-6.htm
<DESCRIPTION>EXHIBIT 99.6
<TEXT>
<HTML>
<HEAD>
   <TITLE>Gildan Activewear Inc.: Exhibit 99.6 - Filed by newsfilecorp.com</TITLE>
</HEAD>

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

<HR noshade align="center" width=100% size=3 color="black">
<A name=page_19></A>
<P align=right><B>EXHIBIT 99.6 </B></P>
<P align=center><B>CERTIFICATION </B><BR><B>REQUIRED BY RULE 13a-14(b) OR RULE
15d-14(b) AND</B><BR><B>SECTION 1350 OF CHAPTER 63 OF TITLE 18</B><BR><B>OF THE
UNITED STATES CODE </B><BR></P>
<P align=justify>Gildan Activewear Inc. (the &#147;Corporation&#148;) is filing its annual
report on Form 40-F for the fiscal year ended October 2, 2011 (the &#147;Report&#148;)
with the United States Securities and Exchange Commission. </P>
<P align=justify>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: </P>
<P align=justify>1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The Report fully complies with the requirements of Section
13(a) or 15(d) of the U.S. Securities Exchange Act of 1934; and </P>
<P align=justify>2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The information contained in the Report fairly presents, in
all material respects, the financial condition and results of operations of the
Corporation. </P>
<P align=justify>Dated: December 9, 2011 </P>
<TABLE
style="FONT-SIZE: 10pt; BORDER-LEFT-COLOR: black; BORDER-BOTTOM-COLOR: black; BORDER-TOP-COLOR: black; BORDER-COLLAPSE: collapse; BORDER-RIGHT-COLOR: black"
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD align=left  >&nbsp;</TD>
    <TD align=left width="48%" colSpan=2><U>/s/ <I>Glenn J.
      Chamandy&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      &nbsp;</I></U></TD></TR>
  <TR vAlign=top>
    <TD align=left  >&nbsp;</TD>
    <TD noWrap align=left width="5%"
      >Name:&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    </TD>
    <TD align=left width="43%">Glenn J. Chamandy </TD></TR>
  <TR vAlign=top>
    <TD align=left  >&nbsp;</TD>
    <TD noWrap align=left width="5%" >Title: </TD>
    <TD align=left width="43%">President and Chief Executive Officer
  </TD></TR></TABLE><BR>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<A name=page_20></A>
<P align=center><B>CERTIFICATION </B><BR><B>REQUIRED BY RULE 13a-14(b) OR RULE
15d-14(b) AND</B><BR><B>SECTION 1350 OF CHAPTER 63 OF TITLE 18</B><BR><B>OF THE
UNITED STATES CODE </B><BR></P>
<P align=justify>Gildan Activewear Inc. (the &#147;Corporation&#148;) is filing its annual
report on Form 40-F for the fiscal year ended October 2, 2011 (the &#147;Report&#148;)
with the United States Securities and Exchange Commission. </P>
<P align=justify>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: </P>
<P align=justify>1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The Report fully complies with the requirements of Section
13(a) or 15(d) of the U.S. Securities Exchange Act of 1934; and </P>
<P align=justify>2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The information contained in the Report fairly presents, in
all material respects, the financial condition and results of operations of the
Corporation. </P>
<P align=justify>Dated: December 9, 2011 </P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD align=left  >&nbsp;</TD>
    <TD align=left width="48%" colSpan=2><U>/s/ <I>Laurence G.
      Sellyn&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      &nbsp;</I></U></TD></TR>
  <TR vAlign=top>
    <TD align=left  >&nbsp;</TD>
    <TD noWrap align=left width="5%"
      >Name:&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    </TD>
    <TD align=left width="43%">Laurence G. Sellyn </TD></TR>
  <TR vAlign=top>
    <TD align=left  ></TD>
    <TD noWrap align=left width="5%" >Title: </TD>
    <TD align=left width="43%">Executive Vice-President, Chief Financial and
      Administrative Officer </TD></TR></TABLE><BR>
<HR align=center width="100%" color=black noShade SIZE=5>

</BODY>

</HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>GRAPHIC
<SEQUENCE>8
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end
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
