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Supplementary Information of 
**GILDAN ACTIVEWEAR INC.**
Three years ended September 30, 2007 

****   **KPMG LLP****Chartered Accountants**    600 de Maisonneuve Blvd. West     Suite 1500     Tour KPMG     Montréal Québec H3A 03A 
Telephone      (514) 840-2100        Fax                      (514) 840-2187     Internet               www.kpmg.ca **AUDITORS' REPORT ON RECONCILIATION TO UNITED STATES GAAP**
To the Board of Directors of Gildan Activewear Inc. 

On December 6, 2007, we reported on the consolidated balancesheets of Gildan Activewear Inc. (the "Company") as at September 30, 2007 andOctober 1, 2006 and the consolidated statements of earnings and comprehensiveincome, shareholders' equity and cash flows for the years ended September 30,2007, October 1, 2006 and October 2, 2005, which are included in the annualreport on Form 40-F. In connection with our audits conducted in accordance withCanadian generally accepted auditing standards, and with respect to the yearsended September 30, 2007 and October 1, 2006, in accordance with the standardsof the Public Company Accounting Oversight Board (United States), of theaforementioned consolidated financial statements, we also have audited therelated supplemental note entitled "Reconciliation to United States GAAP"included in the Form 40-F. This supplemental note is the responsibility of theCompany's management. Our responsibility is to express an opinion on thissupplemental note based on our audits. 

In our opinion, such supplemental note, when considered inrelation 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, 2007 

**GILDAN ACTIVEWEAR INC. Reconciliation to United States GAAP 
Years ended September 30, 2007, October 1, 2006 and October 2, 2005 (In thousands of US dollars, except share and per share amounts) 

The consolidated financial statements of the Company areexpressed in US dollars and are prepared in accordance with Canadian generallyaccepted accounting principles ("GAAP"), which conform, in all materialrespects, with those generally accepted in the United States except as describedbelow: 

(a) 

Consolidatedstatements of earnings: 
  
 
2007
 
2006
 
2005  
 
 
 
 
 
  Net earnings in accordance with
 
 
 
 
 
  
Canadian GAAP
$
130,020
$
106,829
$
86,043 Swap revenue (i)
 (29)
 (94)
 (175) Start-up costs (ii)
 (958)
 (537)
 (293) Tax effect of above adjustments
 
9
 
29
 
54  
 
 
 
 
 
  Net earnings in accordance with
 
 
 
 
 
  
United States GAAP
 
129,042
 
106,227
 
85,629  
 
 
 
 
 
  Other comprehensive income:
 
 
 
 
 
  
Mark-to-market adjustments on
 
 
 
 
 
  
foreign exchange contracts,
 
 
 
 
 
  
net of tax (d)
 
-
 (2,037)
 
580  
 
 
 
 
 
  Comprehensive income
$
129,042
$
104,190
$
86,209       200720062005      Earnings per share under United States GAAP:    
Basic$ 1.07$ 0.88$ 0.72 
Diluted1.060.880.72           Weighted average number of common shares    
outstanding:    
Basic120,339,830120,103,366119,381,932 
Diluted121,538,312121,251,768120,269,752
1

**GILDAN ACTIVEWEAR INC. Reconciliation to United States GAAP 
Years ended September 30, 2007, October 1, 2006 and October 2, 2005 (In thousands of US dollars, except share and per share amounts) 

(a) 

Consolidatedstatements of earnings (continued): 

(i) 

Swap revenue: 

Under Canadian GAAP, the Company wasusing hedge accounting for certain derivative instruments. The gain realized oncancellation of a cross-currency interest rate swap arrangement was deferred,and was being amortized over the term of the related debt. Under United StatesGAAP, the Company had not designated the derivative instrument in a hedgingrelationship and, consequently, upon cancellation of the instrument, the Companyrecognized the gain immediately into earnings. 

(ii) 

Start-up costs:

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

(b) 

Consolidatedstatements of cash flows: 
  
 
2007
 
2006
 
2005  
 
 
 
 
 
  Changes due to United    States GAAP:
 
 
 
 
 
  
Operating activities on a Canadian
 
 
 
 
 
  
basis
$
91,163
$
94,721
$
93,250  Start-up costs
 (958)
 (537)
 (293)  Operating activities cash flow,
 
 
 
 
 
  
United States GAAP
 
90,205
 
94,184
 
92,957  
 
 
 
 
 
  
Investing activities on a Canadian basis
 (134,689)
 (96,053)
 (83,848)  Start-up costs
 
958
 
537
 
293  Investing activities cash flow,
 
 
 
 
 
  
United States GAAP
 (133,731)
 (95,516)
 (83,555)  
 
 
 
 
 
  Financing activities    on a Canadian
 
 
 
 
 
  
basis and under United States GAAP
 
23,550
 (39,383)
 (458)  
 
 
 
 
 
  Effect of exchange    rate changes on
 
 
 
 
 
  
cash and cash equivalents
 
219
 (80)
 
187  
 
 
 
 
 
  Net (decrease) increase in cash and cash
 
 
 
 
 
  
equivalents, during the year
 (19,757)
 (40,795)
 
9,131  
 
 
 
 
 
  Cash and cash    equivalents, United
 
 
 
 
 
  
States GAAP, beginning of year
 
29,007
 
69,802
 
60,671  
 
 
 
 
 
  Cash and cash equivalents, United
 
 
 
 
 
  
States GAAP, end of year
$
9,250
$
29,007
$
69,802
2

**GILDAN ACTIVEWEAR INC. Reconciliation to United States GAAP 
Years ended September 30, 2007, October 1, 2006 and October 2, 2005 (In thousands of US dollars, except share and per share amounts) 

(c) 

Consolidated balance sheets: 

A reconciliation of shareholders' equity underCanadian GAAP to United States GAAP is as follows: 
  
 
2007
 
2006  
 
 
 
  Shareholders' equity under    Canadian GAAP
$
663,650
$
530,565  
 
 
 
  United States GAAP adjustments:
 
 
 
   Start-up costs
 (2,548)
 (1,590)  Cross-currency swap
 
-
 
29  Tax effect on above adjustments
 
-
 (9)  
 (2,548)
 (1,570)  
 
 
 
  Shareholders' equity under United States GAAP
$
661,102
$
528,995
(d) 

Comprehensive income: 

Under United States GAAP, Statementof Financial Accounting Standards No. 130, "Reporting Comprehensive Income",establishes standards for reporting and presentation of comprehensive income andits components in a full set of financial statements. Comprehensive incomeconsists of net earnings and all other changes in shareholders' equity that donot result from transactions with shareholders. The Statement does not affectthe Company's financial position or results of operations. 

Accumulated other comprehensiveincome, which resulted from (a) the change in functional currency in fiscal 2004and (b) the market value of the forward foreign exchange contracts considered ashedges against cash flow items in fiscal 2004 and fiscal 2005, the effect ofwhich reversed in fiscal 2006, is as follows:  
 
2007
 
2006
 
2005  
 
 
 
 
 
  Opening balance
$
26,248
$
28,285
$
27,705 Change during the year
 
-
 (2,037)
 
580  
 
 
 
 
 
   
$
26,248
$
26,248
$
28,285
Under Canadian GAAP, the Companyadopted similar standards for reporting and displaying comprehensive income onJanuary 1, 2007. 

3

**GILDAN ACTIVEWEAR INC. Reconciliation to United States GAAP 
Years ended September 30, 2007, October 1, 2006 and October 2, 2005 (In thousands of US dollars, except share and per share amounts) 

(e) 

Supplementary information: 

Under United States GAAP andSecurities and Exchange Commission rules, separate disclosure is required forthe following statement of earnings and balance sheet items. There is no similarrequirement under Canadian GAAP. 
  
 
2007
 
2006
 
2005  
 
 
 
 
 
  Statements of earnings:
 
 
 
 
 
  
Rental expenses
$
8,654
$
5,535
$
3,517 
Advertising expenses
 
8,634
 
6,627
 
5,760  
 
 
 
 
 
  Balance sheets:
 
 
 
 
 
  
Accounts payable
 
54,920
 
58,089
 
43,234 
Accrued liabilities******** |
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