Is a marketer, manufacturer, and distributor of high quality branded and private label active wear apparel. Specializes in selling a variety of casual and athletic wear tops and bottoms, embellished and unembellished T-shirts, and fleece products for the ever changing apparel market.

We focus on our brand distribution of apparel products to specialty and boutique stores, high-end and mid-tier retail stores, sporting goods stores, screen printers, and private label accounts.
In addition, certain products are sold in college bookstores and to the United States Military.

Corporate Overview

We, along with our wholly owned subsidiaries, M. J. Soffe Company and Junkfood clothing Company, are a marketer, manufacturer and distributor of high quality branded and private label activewear apparel. We specialize in selling a variety of casual and athletic activewear tops and bottoms, embellished and unembellished T-shirts, and fleece products for the ever changing apparel market. We focus on our broad distribution of apparel products to specialty and boutique store, high-end and mid-tier retail stores, sporting good stores, screen printers and private label accounts. In addition, certain products are sold in college bookstores and to the U.S Military.

We were incorporated in Georgia in 1999 and our principal executives offices are located at 2750 Premier Parkway, Suite 100, Duluth, Georgia 30097 (telephone number: 678-775-6900). Our common stock trades on American Stock Exchange under the symbol “DLA”.

On October 2, 2006, we completed the acquisition of Fun-Tees, Inc. founded in 1972, Fun-Tees is in the business of designing, manufacturing, marketing and selling private labeled custom knit t-shirts primarily to branded sportswear companies. We believe that the addition of Fun-Tees with its ability to custom-manufacture products in a variety o styles, fabrics and colors, enhances our activewear segment products offerings. Integration of its operations into our platform is expected to result in improved manufacturing efficiencies and cost savings in our combined business.

Our fiscal year 2007 plans to include opening Ceiba Textiles, a state-of-the-art offshore textile manufacturing facility, This facility, to be located in Green Valley Industrial Park near San Pedro Sula, Honduras will knit, dye, finish, cut, and sew facility is fully operational, in 2009, we expect pre-tax savings of $7million annually.

On August 22, 2005 we acquired substantially all of the assets and properties of Liquid Blaino Designs, Inc. d/b/a Junkfood Clothing. Junkfood Clothing is in the business of designing, marketing, and selling licensed and branded apparel. The acquisition of Junkfood is an important part of our expansion strategy. The addition of the Junkfood business to Delta Apparel keeps with our strategy of acquiring profitable apparel operations that expand our channels of distribution. Junkfood Clothing remains headquarters in Los Angeles, California and is operated as a separate business within our retail-ready segment.

On October 3, 2005, our wholly-owned subsidiary, M. J. Soffe company, purchased substantially all of the assets of Intensity Athletics, Inc. Intensity Athletics is in the business of designing, manufacturing, and marketing athletic uniform apparel. The acquisition of Intensity Athletics expands our sporting goods product offerings in the M. J Soffe business.

Business Segments

We operate our business in two distinct segments: Activewear Apparel and Retail-Ready Apparel. The Active Wear Apparel segment comprises our business units primarily focused on garment styles that are characterized by low fashion risk. In this segment, we market, distribute and manufacture unembellished knit apparel under the brands of “Delta Pro Weight®”, “Delta Magnum Weight™” and “Quail Hollow™”. These products are primarily sold to screen printing companies. In addition, we manufacture products under private labels for retailers, corporate industry programs and sports licensed apparel marketers. Our Retail-Ready Apparel segment comprises our business units primarily focused on more specializes apparel garments to meet consumer preferences and fashion trends. These embellished and unembellished products are sold through specialty and boutique stores, high-end and mid-tier retail stores and sporting goods stores. In addition to these retail channels, we also supply college bookstores and product products for the U.S. Military. Our products in this segment are marketed under the “Soffe®”, Intensity Athletics®” “Junkfood®” and “Sweet and Sour®” labels.

Marketing

We specialize in selling a variety of branded casual and athletic activewear tops and bottoms, embellished and unembellished T-shirts, and fleece products for the ever-changing apparel market.

Our activewear segment markets high quality knit apparel garments for the entire family. These garments are marketed under the Delta Pro Weight®, Delta Magnum Weight™, and Quail Hollow™ Sportswear brand names. The Pro-Weight line represents a diverse selection of 5.5 oz 100% cotton silhouettes. Short sleeve and long sleeve tees are available in both youth and adult sizes in a variety of colors. Specialty items that are also available for adults include pocket tees, tank tops, sleeveless tees, pigment-dyed tees, and a wide variety of colors in ringer tees. The Magnum Weight line is designed to give our customer a variety of silhouettes in a heavier 6.1 oz, 100% cotton fabric. Products in this category include short sleeve and long sleeve and long sleeve silhouettes in a wide range of colors, available from the size 2-Toddler to adult sizes, up to 5X. the Quail Hollow™ line includes polo shirts, ladies and junior tees, cheer shorts, and adult and youth fleece styles. The ladies and juniors programs feature an assortment of styles developed specifically for misses, plus sizes and young juniors. Polo shirts are offered in solid color 7oz. ring spun pique for men, ladies and youth, and heavy weight 100% cotton jersey style for adults.

Our retail-ready apparel segment designs and produces shorts, T-shirts, jersey and fleece apparel that are available in a wide variety of colors and sizes, including toddlers, boy’s, girl’s, men’s, women’s and big & tall. We believe that the shorts that are branded with the Soffe® label enjoy a very loyal following among teenage and adolescent girls, many of whom are involved in cheerleading and dance teams. In October 2005, we also added sports team uniforms to our product line under the Intensity Athletic® label. With the addition of Junkfood Clothing Company in August 2005, our retail-ready apparel segment also includes cintage licensed apparel. The Junkfood® product line, including Sweet and Sour®, has experienced significant growth over the last several years, through its innovative designs and style. We believe our retail-ready apparel segment is also a leader in product innovation as demonstrated by our introduction of Dri-release™ offerings. Dri-release™ es a micro blend performance fiber that is engineered to offer cotton-like comfort with quick dry properties to wick perspiration away from the skin. Our recent additions to this line include the new Soffe performance apparel line offering WicAway fabrics, a new fabric with quick-drying properties.
Our marketing is performed by both employed sales personnel and independent sales representatives located throughout the country. Our sales force services the retail direct, sporting goods, military, private label, department stores and college bookstores.

Customer Bases

We currently service over 15,000 customers. Part of our strategy is not to become dependent on any single customer. As such, no single customer accounts for more than 10% of our sales in any year.

Manufacturing

We manufacture the majority of the products we sell utilizing company-owned and leased facilities. When demand exceeds production capacity or when it is cost effective to do so, we source products from third party producers and use outside contractors and general suppliers for textile and sewing production.

We knit, dye, finish and cut our fabric in company-owned plants located in Fayette, Alabama, Maiden, North Carolina and Fayetteville, North Carolina. Our garments are primarily sewn in our leased facilities located in Campeche, Mexico and San Pedro Sula, Honduras and in our company-owned facilities in Rowland, North Carolina and Fayetteville, North Carolina. In addition to our leased sewing facilities, we use outside contractors located in the Caribbean basin to sew our products. In addition to our internal manufacturing, we source products in full-package form through independent sources located both in the United States and internationally.

Our products are distributed from our facilities strategically located throughout the United States. We offer same-day shipping in our activewear apparel segment and both segments use third party carriers to ship products to our customers. In order to better serve our customers, we allow our customer to order products by the piece, by dozen, or in full case quantities.

Employees

We employ approximately 4,000 employees located in the United Stares, Honduras and Mexico. We have never had a strike or work stoppage and believe that our relations with our employees are good. We have invested significant time and resources in ensuring that the working conditions in all of our facilities meet or exceed the standards imposed by governing laws. We have obtained WRAP (Worldwide Responsible Apparel Production) certification for all of our existing sewing plants in Honduras and Mexico. We also obligate our third party contractors to follow our employment policies.

Senior Management

The senior management team at Delta Apparel has extensive experience in the textile and apparel industry. Our senior management’s average of over 15 years of experience at several mayor international textile and apparel firms has produced an effective team at Delta Apparel.

Bob Humphreys was elected President and Chief Executive Officer of Delta Apparel in December 1999 after having served as President of Delta Apparel Company division since April 1999. he was employed a Delta Woodside Industries for the thirteen years prior to joining Delta Apparel. For ever 10 of these years he served as President of Stevecoknit Fabrics Company, the knit fabrics division of Delta Woodside. Bob is a 1979 graduate of Auburn University with a B.S. in Marketing.

Deborah Merrill, CPA, was named Vice President, Chief Financial Officer and Treasurer in July 2006. She has been with Delta Apparel since 1998 having served in various financial roles. Prior to joining Delta Apparel, she was the Logistics Controller for GNB Technologies and an auditors for Deloitte & Touche. Deb is a 1995 graduate of the University of South Carolina with a B.S. in Accounting.

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