Gildan operates in a highly competitive global industry in which it is necessary to be a cost-effective producer of high quality products in order to survive and succeed.

We have positioned ourselves as a low-cost producer through investing in state-of-the-art technology in our capital-intensive textile operations and through locating our labour-intensive sewing plants in strategically-located geographical regions.

At the same time, Gildan is committed to being a socially responsible employer in all of our geographical hubs. Our objective is to continue to have modern, well-equipped facilities and to be progressive in our hiring and employment practices.

We have a stringent internal Code of Conduct which must be followed in all of our global operations. In order for management to ensure that it is aware of instances where our plants, or those of our external sewing contractors, may not be complying with local labour laws or the Gildan Code of Conduct, we support operating management with internal and external monitoring. We are also retaining Verité, an internationally respected training and monitoring organization, to conduct training and independent monitoring of selected Gildan facilities.

Moreover, all of our Honduras sewing plants and one of our Mexican sewing plants have been certified by Worldwide Responsible Apparel Production and, in 2004, we became the only apparel manufacturer with operations in Honduras to join the Fair Labor Association as a Participating Company.

While continuing to ensure proper monitoring of workplace practices in our manufacturing operations, we remain actively engaged as a positive force in all of the communities in which we operate. We have increased our budget for charitable donations as well as for social development and disaster relief programs. Some of our initiatives in this area are outlined in this report. Also, in fiscal 2004, Gildan obtained the Oeko-tex Standard 100 certification, the most internationally recognized eco-label designation in the textile supply chain.

In addition to achieving the financial goals which we have set for ourselves and our shareholders, we are equally committed to being a leader in corporate citizenship. In this, our first Corporate Citizenship Report, you will see a summary of our actions in this area during fiscal 2004 and our goals for fiscal 2005. While there is always opportunity for further improvement, we are proud of the way we manage our facilities and contribute to local communities. As we continue to improve, we hope to achieve the same type of recognition of our performance in corporate responsibility that we have gained for our operating performance and financial success.

Glenn J. Chamandy

President and CEO, Gildan Activewear Inc.