Sara Lee Corporation has completed the tax-free spin-off to its shareholders of Hanesbrands Inc.

The company will distribute 100% of the common stock of Hanesbrands Inc. to Sara Lee shareholders of record on Aug. 18, 2006. Sara Lee is distributing to its shareholders one share of Hanesbrands stock for every eight Sara Lee shares owned.

“The completion of the Hanesbrands spin-off is a significant milestone in our strategy to transform Sara Lee into an efficient operating company whose market-leading brands are the first choice of consumers and customers around the world,” said Brenda C. Barnes, chairman and chief executive officer of Sara Lee Corporation. “Our shareholders now hold stock in two great companies. And, with the spin-off complete, we close the chapter on our portfolio transformation, having shed non-core assets to focus on growing our food, beverage, and household and body care categories.”

Hanesbrands shares will begin trading on the New York Stock Exchange (NYSE) under the symbol “HBI,” on Sept. 6, 2006. Sara Lee currently has approximately 761 million shares outstanding, and based on the distribution ratio, approximately 95 million shares of Hanesbrands common stock will be distributed to Sara Lee shareholders. Sara Lee shareholders do not need to take any action to receive shares of Hanesbrands common stock.

Shareholders will not receive fractional shares of Hanesbrands common stock in the spin-off. Instead, they will receive a cash payment for their fractional shares, after appropriate deductions are made for any required tax withholdings.

In connection with the spin-off, Sara Lee received a one-time payment of $2.4 billion from Hanesbrands.

“We are excited about our plans for driving Sara Lee’s long-term growth in our core markets through our innovation strategy and continuous improvement initiatives,” said Barnes. “In the short term, we also are pleased that we can continue to return significant capital to our shareholders with the spin-off of Hanesbrands, as well as through share buybacks and healthy dividend payments.”