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> Supplementary Information of

GILDAN ACTIVEWEAR INC.

Three years ended October 1, 2006







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|                                  |           |                | 
|--------------------------------- | --------- | -------------- | 
|KPMG LLP                          | Telephone | (514) 840-2100
|Chartered
    Accountants         | Fax       | (514) 840-2187
|600 de Maisonneuve
    Blvd. West | Internet  | www.kpmg.ca   
|Suite 1500                        |           |               
|Montréal Québec H3A
    03A       |           |               

AUDITORS' REPORT ON RECONCILIATION TO UNITED STATES GAAP

To the Board of Directors of Gildan Activewear Inc.

On December 6, 2006, we reported on the consolidated balance
sheets of Gildan Activewear Inc. (the "Company") as at October 1, 2006 and
October 2, 2005 and the consolidated statements of earnings, retained earnings
and cash flows for the years ended October 1, 2006, October 2, 2005 and October
3, 2004 which are included in the annual report on Form 40-F. In connection with
our audits conducted in accordance with Canadian generally accepted auditing
standards and, with respect to the year ended October 1, 2006, in accordance
with the standards of the Public Company Accounting Oversight Board (United
States) of the aforementioned consolidated financial statements, we also have
audited the related supplemental note entitled "Reconciliation to United States
GAAP" included in the Form 40-F. This supplemental note is the responsibility of
the Company's management. Our responsibility is to express an opinion on this
supplemental note based on our audits.

In our opinion, such supplemental note, when considered in
relation to the basic consolidated financial statements taken as a whole,
presents fairly, in all material respects, the information set forth therein.

|/s/KPMG LLP          
|---------------------
|                     
|Chartered Accountants
|                     
|Montréal, Canada     
|December 6, 2006     



KPMG LLP, a Canadian limited liability partnership is the
Canadian 
member firm of KPMG International, a Swiss cooperative.

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|GILDAN ACTIVEWEAR INC.                                              
|--------------------------------------------------------------------
|Reconciliation to United States
    GAAP                            
|                                                                    
|Years ended October 1, 2006,
    October 2, 2005 and October 3, 2004
|(In thousands of US dollars, except
    share and per share amounts)

The consolidated financial statements of the Company are
expressed in US dollars and are prepared in accordance with Canadian generally
accepted accounting principles ("GAAP"), which conform, in all material
respects, with those generally accepted in the United States except as described
below:

(a)     Consolidated statements of
earnings:

| |                                                                                                         |            | 2006       |            | 2005   |   | 2004  
| | ------------------------------------------------------------------------------------------------------- | ---------- | ---------- | ---------- | ------ | - | ------
| |                                                                                                         |            |            |            |        |   |       
| | Net earnings in accordance with
    Canadian GAAP                                                       | $          | 106,829    | $          | 86,043 | $ | 60,251
| | Swap expense (i)                                                                                        |            | (94)       |            | (175)  |   | (586) 
| | Start-up costs (ii)                                                                                     |            | (537)      |            | (293)  |   | (347) 
| | Stock-based compensation (iii)                                                                          |            |           |            |       |   | 106   
| | Tax effect of above adjustments                                                                         |            | 29         |            | 54     |   | 32    
| |                                                                                                         |            |            |            |        |   |       
| | Net earnings in accordance with
    United States GAAP                                                  |            | 106,227    |            | 85,629 |   | 59,456
| |                                                                                                         |            |            |            |        |   |       
| | Other comprehensive income:                                                                             |            |            |            |        |   |       
| | Mark-to-market adjustments on
    foreign exchange contracts, net of tax (2005 - $261; 2004 - $655) (d) |            |           |            | 580    |   | 1,457 
| |                                                                                                         |            |            |            |        |   |       
| | Comprehensive income                                                                                    | $          | 106,227    | $          | 86,209 | $ | 60,913
| |                                                                                                         |            |            |            |        |   |       
| |                                                                                                         |            |            |            |        |   |       
| |                                                                                                         |            | 2006       |            | 2005   |   | 2004  
| |                                                                                                         |            |            |            |        |   |       
| | Earnings per share
    under United States GAAP:                                                        |            |            |            |        |   |       
| | Basic                                                                                                   | $          | 1.77       | $          | 1.44   | $ | 1.00  
| | Diluted                                                                                                 |            | 1.75       |            | 1.43   |   | 1.00  
| |                                                                                                         |            |            |            |        |   |       
| |                                                                                                         |            |            |            |        |   |       
| | Weighted average number of common
    shares outstanding:                                               |            |            |            |        |   |       
| | Basic                                                                                                   | 60,051,683 | 59,690,966 | 59,181,610
| | Diluted                                                                                                 | 60,625,884 | 60,134,876 | 59,671,178

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|GILDAN ACTIVEWEAR INC.                                              
|--------------------------------------------------------------------
|Reconciliation to United States
    GAAP                            
|                                                                    
|Years ended October 1, 2006,
    October 2, 2005 and October 3, 2004
|(In thousands of US dollars, except
    share and per share amounts)

(a)     Consolidated statements of
earnings (continued):

(i)     Swap
revenue:

Under United States GAAP, SFAS 133,
"Accounting for Derivative Instruments and Hedging Activities" requires that all
derivative instruments be recognized as assets or liabilities and be measured at
fair value. Under Canadian GAAP, there is no requirement to record derivative
instruments used for hedging purposes at fair values. Consequently, on an
ongoing basis, differences arise between amounts recognized for Canadian GAAP
and United States GAAP. Upon cancellation of the derivative instruments, the
gain or loss recognized under Canadian GAAP is different than the amount under
United States GAAP.

Under Canadian GAAP, the Company was
using hedge accounting for certain derivative instruments. The gain realized on
cancellation of a cross-currency interest rate swap arrangement was deferred,
and is being amortized over the term of the related debt. Under United States
GAAP, the Company had not designated the derivative instrument in a hedging
relationship and, consequently, upon cancellation of the instrument, the Company
recognized the gain immediately into earnings.

(ii)     Start-up
costs:

Costs incurred during the start-up
period for new manufacturing and distribution facilities are deferred and
amortized on a straight-line basis over two years. United States GAAP requires
such costs to be expensed as incurred. The adjustment to net earnings in
accordance with United States GAAP includes the write-off of current year's
start-up costs, and the reversal of the current year amortization of start-up
costs deferred under Canadian GAAP.

(iii)    
Stock-based compensation:

On October 3, 2005, the Company
adopted Statement of Financial Accounting Standards (SFAS) No. 123 (R),
"Share-Based Payment", which requires the expensing of all options issued,
modified or settled based on the grant date fair value over the period during
which an employee is required to provide service (vesting period). The standard
also requires that cash settled awards be measured at fair value at each
reporting date until ultimate settlement.

- 2 -

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|GILDAN ACTIVEWEAR INC.                                              
|--------------------------------------------------------------------
|Reconciliation to United States
    GAAP                            
|                                                                    
|Years ended October 1, 2006,
    October 2, 2005 and October 3, 2004
|(In thousands of US dollars, except
    share and per share amounts)

(a)     Consolidated statements of
earnings (continued):

(iii)    Stock-based
compensation (continued):

The Company adopted SFAS No. 123 (R)
using the modified prospective approach, which requires application of the
standard to all awards granted, modified, repurchased or cancelled on or after
October 3, 2005, and to all awards for which the requisite service has not been
rendered as at such date. Since October 6, 2003, the Company has been following
the fair value based approach prescribed by SFAS No. 123, "Accounting for
Stock-Based Compensation", as amended by SFAS No. 148, "Accounting for
Stock-Based Compensation - Transition and Disclosure", for stock option awards
granted, modified or settled on or after such date, while cash settled awards
were measured at their intrinsic value at each reporting period until October 2,
2005. As such, the application of SFAS No. 123 (R) on October 3, 2005 to all
awards granted prior to its adoption did not have a significant impact on the
financial statements. In accordance with the modified prospective approach,
prior period financial statements have not been restated to reflect the impact
of SFAS No. 123 (R).

For fiscal 2006, the application of
SFAS No. 123 (R) had no significant impact on the financial position of the
Company or on the results of its operations.

Prior to October 3, 2005, the Company
followed the fair value-based approach for stock option awards and had
prospectively applied this method of accounting to all awards granted, modified
or settled on or after October 6, 2003, and measured cash settled awards at
their intrinsic value at period-end.

Under Canadian GAAP, for options
granted in prior years, the Company used the settlement date method of
accounting for options, and compensation expense was not recognized.

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|GILDAN ACTIVEWEAR INC.                                              
|--------------------------------------------------------------------
|Reconciliation to United States
    GAAP                            
|                                                                    
|Years ended October 1, 2006,
    October 2, 2005 and October 3, 2004
|(In thousands of US dollars, except
    share and per share amounts)

(b)     Consolidated statements of cash flows:

| |                                                                           |   | 2006     |   | 2005     |   | 2004    
| | ------------------------------------------------------------------------- | - | -------- | - | -------- | - | --------
| |                                                                           |   |          |   |          |   |         
| | Changes due to United States
    GAAP:                                    |   |          |   |          |   |         
| | Operating activities on a
    Canadian basis                              | $ | 94,721   | $ | 93,250   | $ | 58,920  
| | Start-up costs                                                            |   | (537)    |   | (293)    |   | (347)   
| | Operating activities cash flow,
    United States GAAP                    |   | 94,184   |   | 92,957   |   | 58,573  
| |                                                                           |   |          |   |          |   |         
| | Investing activities on a
    Canadian basis                              |   | (96,053) |   | (83,848) |   | (53,820)
| | Start-up costs                                                            |   | 537      |   | 293      |   | 347     
| | Investing activities cash flow,
    United States GAAP                    |   | (95,516) |   | (83,555) |   | (53,473)
| |                                                                           |   |          |   |          |   |         
| | Financing activities on a
    Canadian basis and under United States GAAP |   | (39,383) |   | (458)    |   | (14,350)
| |                                                                           |   |          |   |          |   |         
| | Effect of exchange rate changes
    on cash and cash equivalents          |   | (80)     |   | 187      |   | 581     
| |                                                                           |   |          |   |          |   |         
| | Net (decrease) increase in cash
    and cash equivalents, during the year |   | (40,795) |   | 9,131    |   | (8,669) 
| |                                                                           |   |          |   |          |   |         
| | Cash and cash equivalents,
    United States GAAP, beginning of year      |   | 69,802   |   | 60,671   |   | 69,340  
| |                                                                           |   |          |   |          |   |         
| | Cash and cash equivalents,
    United States GAAP, end of year            | $ | 29,007   | $ | 69,802   | $ | 60,671  

(c)     Consolidated balance sheets:

A reconciliation of shareholders' equity under
Canadian GAAP to United States GAAP is as follows:

| |                                                   |   | 2006    |   | 2005   
| | ------------------------------------------------- | - | ------- | - | -------
| |                                                   |   |         |   |        
| | Shareholders' equity
    under Canadian GAAP      | $ | 530,565 | $ | 420,560
| |                                                   |   |         |   |        
| | United States GAAP
    adjustments:               |   |         |   |        
| | Start-up costs                                    |   | (1,590) |   | (1,053)
| | Foreign exchange contracts                        |   |        |   | 2,953  
| | Cross-currency swap                               |   | 29      |   | 123    
| | Tax effect on above adjustments                   |   | (9)     |   | (954)  
| |                                                   |   | (1,570) |   | 1,069  
| |                                                   |   |         |   |        
| | Shareholders' equity under United
    States GAAP | $ | 528,995 | $ | 421,629

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|GILDAN ACTIVEWEAR INC.                                              
|--------------------------------------------------------------------
|Reconciliation to United States
    GAAP                            
|                                                                    
|Years ended October 1, 2006,
    October 2, 2005 and October 3, 2004
|(In thousands of US dollars, except
    share and per share amounts)

(d)     Comprehensive income:

Under United States GAAP, SFAS No.
130, "Reporting Comprehensive Income" establishes standards for reporting and
presentation of comprehensive income and its components in a full set of
financial statements. Comprehensive income consists of net earnings and all
other changes in shareholders' equity that do not result from transactions with
shareholders. Such changes include cumulative foreign currency translation
adjustments and the changes in the market value of the forward foreign exchange
contracts considered as hedges against cash flow items. The Statement does not
affect the Company's financial position or results of operations.

Accumulated other comprehensive
income, which resulted from (a) the change in functional currency in fiscal 2004
and (b) the market value of the forward foreign exchange contracts considered as
hedges against cash flow items in fiscal 2004 and fiscal 2005, the effect of
which reversed in fiscal 2006, is as follows:

| |                        |   | 2006    |   | 2005   |   | 2004  
| | ---------------------- | - | ------- | - | ------ | - | ------
| |                        |   |         |   |        |   |       
| | Opening balance        | $ | 28,285  | $ | 27,705 | $ | 26,248
| | Change during the year |   | (2,037) |   | 580    |   | 1,457 
| |                        |   |         |   |        |   |       
| |                        | $ | 26,248  | $ | 28,285 | $ | 27,705

Under Canadian GAAP, the cumulative
translation adjustment account is disclosed as a separate component of
shareholders' equity.

(e)     Supplementary information:

Under United States GAAP and
Securities and Exchange Commission rules, separate disclosure is required for
the following statement of earnings and balance sheet items. There is no similar
requirement under Canadian GAAP.

| |                                                                  |   | 2006   |   | 2005   |   | 2004  
| | ---------------------------------------------------------------- | - | ------ | - | ------ | - | ------
| |                                                                  |   |        |   |        |   |       
| | Statements of
    earnings:                                      |   |        |   |        |   |       
| | Rental expenses                                                  | $ | 5,535  | $ | 3,517  | $ | 2,826 
| | Advertising expenses                                             |   | 6,627  |   | 5,760  |   | 5,148 
| |                                                                  |   |        |   |        |   |       
| | Balance sheets:                                                  |   |        |   |        |   |       
| | Accounts payable                                                 |   | 58,089 |   | 43,234 |   | 40,040
| | Accrued liabilities                                              |   | 59,866 |   | 43,486 |   | 34,458
| | Allowance for doubtful
    accounts, price discounts and rebates |   | 57,487 |   | 42,258 |   | 23,460



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