CULP REPORTS RECORD SALES AND EARNINGS FOR FISCAL 1997; EARNINGS INCREASE FOR EIGHTH CONSECUTIVE YEAR.

HIGH POINT, N.C.--(BUSINESS WIRE)--May 22, 1997--Culp, Inc. (NYSE:CFI) today reported higher sales and earnings for the fourth quarter and fiscal year ended April 27, 1997.

Net sales for the quarter increased 3% to $105.7 million compared with $102.2 million a year ago. Net income for the quarter rose 20% to $4.8 million, or $0.39 per share, compared with $4.1 million, or $0.36 per share, in the fourth quarter of fiscal 1996.

For the 1997 fiscal year, net sales totaled $398.9 million, up 13% from $351.7 million in fiscal 1996. Net income for the year rose 25% to $13.8 million, or $1.18 per share, up from $11.0 million, or $0.98 per share, in fiscal 1996.

"Fiscal 1997 marked the eighth consecutive year in which Culp has attained higher net income," said Robert G. Culp, III, chief executive officer. "Each quarter during the year included record sales and earnings compared with the respective year-earlier periods. The fourth quarter by itself represented the 18th consecutive quarter of record earnings. We are particularly pleased that the gains in both net sales and net income for the year reflect internal growth in our existing business units."

Culp continued, "Business within the United States did slow during our second half, but we still achieved an 8% gain in sales to U.S.-based accounts for the year. International shipments provided a major impetus to our growth by increasing 31% to $101.6 million and accounting for 25% of net sales, up from 22% in fiscal 1996. The pattern of increased sales to customers outside the United States has markedly accelerated our progress and enabled us to achieve a stronger competitive position on a worldwide basis. Only a few years ago, our shipments outside the United States were largely confined to the nearby North American markets of Canada and Mexico. Customers there now represent less than one-third of Culp's shipments outside the United States. Europe has become our largest international market for fabrics, and we now ship considerable volume to distributors in the Middle East, Asia and the Far East.

"As our worldwide stature has risen in recent years, we have increasingly identified the importance of the design of new patterns and textures. To deliver value, our fabrics must enhance the retail appeal of customers' products. We have responded to this need with the addition of experienced personnel and the investment in new computer-aided design systems. We have also emphasized the importance of cooperating at all corporate levels to ensure that design is not just expressed but delivered. A tangible expression of this commitment is the new Howard L. Dunn Design Center which is planned for completion later this fiscal year. The center will consolidate most of our design resources, thereby providing an exceptional environment for creativity and imagination."

Culp is the world's largest manufacturer and marketer of upholstery fabrics for furniture and is a leading producer of mattress ticking for bedding. The Company's fabrics are used principally in the production of residential and commercial furniture and bedding products. -0-

                           CULP, INC.
                 Condensed Financial Highlights

                                          Three Months Ended
                                       April 27,      April 28,
                                         1997          1996

Net sales                             $105,678,000   $102,162,000
Net income                               4,840,000      4,050,000
Earnings per share                    $       0.39   $       0.36

                                           Fiscal Year Ended
                                       April 27,      April 28,
                                         1997           1996

Net sales                             $398,879,000   $351,667,000
Net income                              13,770,000     10,980,000
Earnings per share                    $       1.18   $       0.98

CONTACT: Culp Inc., High Point

Franklin N. Saxon, 910/888-6266