Montréal, Wednesday, May 30, 2007 – Consistent with the Company’s strategy to consolidate its sock production at its new facility in Honduras, Gildan Activewear Inc. (GIL; TSX and NYSE) today announced the closure of two sock facilities located in Mount Airy, North Carolina. Approximately 520 employees will be affected by the closures, which will be completed by the end of August 2007. The Company will continue to knit socks at its one remaining facility in Hillsville, Virginia. In addition, the Company is consolidating certain retail sales and administrative functions, based at the Kentucky Derby Hosiery head office in Hopkinsville, Kentucky, into other Gildan operations.

Gildan regrets the impact of this announcement on its affected employees and their communities. However, the relocation of capacity to modern large-scale facilities offshore is necessary in order to be globally competitive with imports from Asia.

The restructuring costs for the above manufacturing and administrative integration were fully provided at the time of the Kentucky Derby Hosiery acquisition in July 2006. The cost reduction benefit of both the manufacturing and administrative consolidations has already been taken into account in the Company’s previously announced EPS accretion targets for its acquisition of Kentucky Derby Hosiery. After reflecting the recent 2-for-1 stock split, the Company continues to anticipate a run-rate of U.S. $0.10 per share accretion impact by the end of its current fiscal year, increasing to U.S. $0.15 per share by mid-2008, when Gildan’s new sock manufacturing facility is expected to be fully ramped up.

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Gildan is a vertically-integrated marketer and manufacturer of quality branded basic apparel. The Company is the leading supplier of activewear for the wholesale imprinted sportswear market in the U.S. and Canada, and also a leading supplier to this market in Europe. The Company sells T-shirts, sport shirts and fleece in large quantities to wholesale distributors as undecorated “blanks”, which are subsequently decorated by screenprinters with designs and logos. Consumers ultimately purchase the Company’s products, with the Gildan label, in venues such as sports, entertainment and corporate events, and travel and tourism destinations. Other end-uses include work uniforms and similar applications to convey individual, group and team identity. In addition to continuing its growth within the wholesale channel, Gildan is implementing a major growth initiative to sell athletic socks, underwear and activewear to mass-market retailers in North America.

Certain statements included in this press release may constitute “forward-looking statements” within the meaning of the U.S. Private Securities Litigation Reform Act of 1995 and Canadian securities legislation and regulations. Such forward-looking statements involve assumptions and known and unknown risks, uncertainties and other factors, including, but not limited to: general economic conditions such as currency exchange rates, commodity prices and other factors over which we have no control; the impact of economic and business conditions, industry trends and other external and political factors in the countries in which we operate; the intensity of competitive activity; changes in environmental, tax, trade and other laws and regulations; our ability to implement our strategies and plans; our ability to complete and successfully integrate acquisitions; changes in customer demand for our products and our ability to maintain customer relationships and grow our business; the seasonality of our business; our ability to attract and retain key personnel; changes in accounting policies and estimates; and, disruption to manufacturing and distribution activities due to the impact of weather, natural disasters and other unforeseen adverse events, which could cause actual results to differ materially from future results expressed or implied by such forward-looking statements. You should not place undue reliance on these forward-looking statements, which are made only as of the date of this press release. We refer you to the Company’s filings with the U.S. Securities and Exchange Commission and Canadian securities regulatory authorities for a discussion of other factors that may affect the Company’s future results.