Culp Reports First Quarter Results.

Business Editors

HIGH POINT, N.C.--(BUSINESS WIRE)--Aug. 22, 2000

Culp, Inc. (NYSE: CFI) today reported results for the first quarter of its 2001 fiscal year that were in line with the preliminary outlook for the quarter that the Company had publicly released last month.

For the three months ended July 30, 2000, Culp reported net sales of $101.9 million compared with $115.9 million a year ago. The company reported a net loss for the quarter of $1.8 million, or $0.16 per share diluted, compared with net income of $1.6 million, or $0.13 per share diluted, in the year-earlier period.

Robert G. Culp, III, chief executive officer, commented, "As we indicated last month, we encountered a definite slowing in incoming orders during the quarter. Our first fiscal quarter is not a seasonally strong period for our business; and as a result of the lower-than-expected sales and some plant consolidation expenses, we did not operate profitably for the period. Based on current trends in our business, we believe that we will achieve a profit recovery in the second fiscal quarter but still expect earnings to be down from a year ago. Our results for fiscal 2001 as a whole will depend importantly on the overall trend in consumer spending on home furnishings. We are encouraged that the traditional measures that influence demand such as consumer confidence and employment levels remain strong, but the rise in interest rates since the start of calendar 2000 clearly poses some concern. The relative strength of the dollar is another factor that will influence our progress because of the impact this has on our international sales."

Culp added, "A vital strategic focus remains capitalizing further on the consolidation within the home furnishings industry. Having one of the broadest arrays of fabrics, together with modern manufacturing facilities, positions Culp well to work with the major furniture manufacturers who have been steadily gaining market share in recent years. It is essential that we combine the consistent development of appealing designs with our extensive manufacturing resources. We are pleased with the momentum that Culp has achieved in the trade acceptance of our latest patterns and finishes. Over the balance of the current fiscal year, we expect that these placements on our customers' furniture lines will translate into an increasing trend in orders."

Culp, Inc. is one of the world's largest marketers of upholstery fabrics for furniture and is a leading marketer of mattress ticking for bedding. The Company's fabrics are used principally in the production of residential and commercial furniture and bedding products.

                              CULP, INC.
                    Condensed Financial Highlights
                              (Unaudited)

                                          Three Months Ended
                                     July 30,               Aug. 1,
                                       2000                  1999
                                  ----------------------------------
Net sales                         $ 101,878,000        $ 115,937,000
Net income (loss)                 $  (1,756,000)       $   1,597,000
Net income (loss) per share:
   Basic                          $       (0.16)       $        0.13
   Diluted                        $       (0.16)       $        0.13
Average shares outstanding:
   Basic                             11,209,000           12,063,000
   Diluted                           11,292,000           12,219,000

This release contains statements that may be deemed "forward-looking statements" within the meaning of the federal securities laws, including the Private Securities Litigation Reform Act of 1995. Such statements are inherently subject to risks and uncertainties. Forward-looking statements are statements that include projections, expectations or beliefs about future events or results or otherwise are not statements of historical fact. Such statements are often characterized by qualifying words such as "expect," "believe," "estimate," "plan" and "project" and their derivatives. Factors that could influence the matters discussed in such statements include the level of housing starts and sales of existing homes, consumer confidence, trends in disposable income and general economic conditions. Decreases in these economic indicators could have a negative effect on the company's business and prospects. Likewise, increases in interest rates, particularly home mortgage rates, and increases in consumer debt or the general rate of inflation, could affect the company adversely. Because of the significant percentage of the company's sales derived from international shipments, strengthening of the U.S. dollar against other currencies could make the company's products less competitive on the basis of price in markets outside the United States. Additionally, economic and political instability in international areas could affect the demand for the company's products.