Gildan To Acquire Kentucky Derby Hosiery

Montreal-based branded basic apparel
manufacturer Gildan Activewear Inc. has agreed to acquire Hopkinsville, Ky.-based Kentucky Derby
Hosiery Co. Inc. for approximately $45 million. The deal is expected to close on or around July 3,

With $130 million in annual sales, Kentucky Derby produces hosiery products primarily for
mass retailer private-label programs. Gildan plans to use the company’s experience and mass-market
distribution system to help build its own brand as well as to continue to provide products for
Kentucky Derby’s brand licenses and private-label programs.

Gildan also is expanding its Rio Nance manufacturing complex in Honduras, adding two new
facilities there including one for large-scale production of athletic socks. It also is in the
process of bringing a new textile facility online in the Dominican Republic.

Kentucky Derby majority owner and CEO William H. “Bill” Nichol Jr. will remain on board to
lead the hosiery business, working with Gildan’s sales and marketing team to improve Kentucky
Derby’s existing business, develop Gildans retail brand for basic apparel and promote Gildans
position in the US hosiery market. 

June 20, 2006