Montreal, July 26, 2004 - Gildan Activewear Inc. (NYSE: GIL; TSX: GIL.A) today announced that further to an audit conducted by the Fair Labor Association (FLA) in Gildan's El Progreso, Honduras, sewing facility earlier this year, it 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.

Gildan's response is available on the company's website at http://www.gildan.com/en/company/response.cfm.

Gildan Activewear Inc. is a public, vertically integrated manufacturer and marketer of premium quality branded basic activewear for sale principally in the wholesale imprinted activewear segment of the Canadian, U.S., European and other international markets. Our company manufactures and sells premium quality 100% cotton and 50% cotton/50% polyester T-shirts, sport shirts and sweatshirts in a variety of weights, sizes, colours and styles. We sell our products as blanks, which are ultimately decorated with designs and logos for sale to consumers. Over 9,300 full-time employees work in our facilities worldwide.