Gildan Activewear, after an audit conducted by the Fair
Labor Association in Gildan's El Progreso, Honduras, sewing facility earlier this year, has submitted its response to the FLA in order to fully comply with FLA's code of conduct, an integral part of Gildan's commitment to
FLA as a Participating Company. The FLA is currently reviewing this response, in collaboration with Gildan.

A number of the actions proposed to the FLA have already been implemented
in the El Progreso facility, which will be closing for economic and
operational reasons at the end of September 2004. Gildan also intends to use
its response as a model upon which to further refine standards for its other
sewing facilities in the region. “Although we currently have in place
excellent working conditions in all our facilities making Gildan a leader in
its industry on the social responsibility front, we found the FLA process and
the introduction of an independent point of view very useful,” said President
and Co-Chief Executive Officer, Glenn J. Chamandy. “While some of the FLA
findings were definitely more concerning than others and required immediate
redressing, the concerns are all manageable”.

In 2003, Gildan became the only Canadian company and the only
manufacturer catering to the wholesale imprinted activewear industry to become
a Participating Company of the FLA. The strict standards that the FLA imposes
on its Participating Companies was one of the primary reasons why Gildan
decided to join this organization. By belonging to the FLA, Gildan has agreed
to submit its facilities to audit processes such as the one with which it has
recently cooperated. Identifying and rectifying any issues that emerge in its
facilities is an essential component of the company's ongoing commitment to
achieving best practices and offering the best working environment possible to
its employees as well as being a socially responsible company.

“We are committed to implementing any further improvements in our working
environment that may arise from our Participating Company status with the
FLA”, concluded Mr. Chamandy.