1101396--8/28/2009--DELTA_APPAREL

related topics

{cost, regulation, environmental}

{product, market, service}

{tax, income, asset}

{debt, indebtedness, cash}

{regulation, change, law}

{system, service, information}

{property, intellectual, protect}

{competitive, industry, competition}

{acquisition, growth, future}

{customer, product, revenue}

{operation, international, foreign}

{capital, credit, financial}

The activewear industry is highly competitive, and we face significant competitive threats to our business. Our success depends, in part, on our ability to predict or effectively react to changing consumer preferences and trends. We may need to raise additional capital to grow our business. Our business operations rely on our information systems. Our business could be harmed if we are unable to deliver our products to the market due to problems with our distribution network. We may be restricted in our ability to borrow under our credit agreement. The cost to borrow under our credit agreement may impact our results of operations. We rely on the strength of our trademarks. A significant portion of our business relies upon license agreements. Our operations are subject to political, social, economic, and climate risks in Mexico, Honduras and El Salvador. We are subject to international trade regulations. Our operations are subject to environmental regulation. We may be subject to the impairment of acquired intangible assets. The price of our purchased raw materials is prone to significant fluctuations and volatility. The price of energy is prone to significant fluctuations and volatility. Our business incurs significant freight and transportation costs. We currently pay income taxes at lower than statutory rates, which could change in the future. The market price of Delta Apparel shares is affected by illiquidity of our shares.

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1101396--8/28/2009--DELTA_APPAREL_INC