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Our Central American operations (including Honduras) produce primarily for the United States, and that market in particular has experienced significant disruption and declines in demand for our products over the last several years. The closure of the two facilities in question has been necessitated by the continuation of that decline in demand, which has previously led to the closure of multiple plants in several countries. None of the production from those facilities has been transferred to sourced production, and the Company has not shifted production from Honduras to Bangladesh or other Asia-Pacific countries.

In addition, after the closure of the two facilities you mention, two of our three remaining Honduran facilities will have collective bargaining agreements. We also continue to be fully supportive of the right of workers in the remaining sewing facility in Honduras to decide whether they wish to unionize or not.

With respect to the 2009 agreement with the Central General de Trabajadores (CGT), the CGT has brought the concerns you raised to the joint Oversight Committee as provided for in the Agreement. Both the Company and the CGT are cooperating with the Oversight Committee as it seeks to mediate a resolution to this case as prescribed by the Agreement. This process is currently ongoing, and we believe it is essential that both parties comply with the Agreement.

Fruit of the Loom, Inc., has for many years set an example in its commitment to freedom of association in its facilities, and this commitment remains by the Company continuing to operate multiple unionized facilities in Honduras and elsewhere globally.

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