Delta Galil Industries Ltd. (Delta Galil), incorporated in 1975, together with its subsidiaries, is a global manufacturer and marketer of private-label ladies' intimate apparel, men's underwear, socks, shirts, babywear, bras, leisurewear and nightwear, knitted fabrics, dyeing, trimmings and elastic ribbons. The Company sells its products to retailers, including Marks & Spencer, Victoria's Secret, Kmart, Wal-Mart, Hema, Mervyn's, Target and JC Penney, as well as to marketers, including Calvin Klein, Nike, Hugo Boss and Pierre Cardin. The Company sells its products under brand names, including Wilson, Barbie, Maidenform, Nicole Miller, and Levi?s Signature in Europe. It also sells its products in Israel under the Delta brand name. Delta Galil works with its customers to design and manufacture knitwear. It produces a variety of products using cotton and man-made fibers. Delta Galil maintains long-term relationships with its customers. During the year ended December 31, 2005, the Company's five largest customers in North America, Wal-Mart, Target, Victoria's Secret, JC Penney and Calvin Klein, represented approximately 78% of sales in North America. Of Delta Galil's sales in Israel, 42% were made through retail department stores and supermarkets, and 58% were made through Delta Galil's Delta Plus chain stores. As of December 31, 2005, Delta Plus had 83 stores. Ladies' Intimate Apparel Delta Galil's intimate apparel items include fashion and basic underwear, as well as bras. It has introduced machinery to produce seam-free panties, tops and control underwear. The Company has been shifting its product mix to increase its focus on these products. During 2005, ladies' intimate apparels accounted for 61% of the Company's total revenues. Socks The Company manufactures men's, women's and children's socks in the leisure, dress and sports categories. Among the varieties of socks that it manufactures are socks with popular cartoon and other characters that it licenses. During 2005, socks accounted for 20% of the Company's total revenues. Men's Underwear Delta Galil manufactures men's fashion and basic underwear for customers that include marketers of fashion brands and department store private labels. During 2005, men's underwear accounted for 11% of the Company's total revenues. Babywear Babywear includes fashion and classic daywear and sleepsuits in a variety of styles and fabrics, with a focus on newborns. The Company's products in this category are sold at medium to high-retail prices. During 2005, babywear accounted for 3% of the Company's total revenues. Leisurewear Delta Galil manufactures basic and fashion leisurewear in a variety of styles and fabrics. The products range from T-shirts, polo shirts, sweatshirts and jogging suits to leisure and fashionable blouson jackets that are sold at medium to high-retail prices. During 2005, leisurewear accounted for 3% of the Company's total revenues. Others The Company's other products include fabrics, elastic tapes and other operations. During 2005, other products accounted for 2% of the Company's total revenues.