Culp Reports Third Quarter Earnings.

HIGH POINT, N.C.--(BUSINESS WIRE)--Feb. 17, 1999--Culp, Inc. (NYSE:CFI) today reported earnings for the third fiscal quarter ended January 31, 1999.

For the three months ended January 31, 1999, Culp reported that net sales amounted to $112.1 million compared with $118.5 million a year ago. Net income for the quarter was $1.5 million, or $0.12 per share diluted, compared with $4.0 million, or $0.31 per share diluted.

Net sales for the first nine months totaled $350.9 million compared with $340.9 million in the first nine months of fiscal 1998. Net income for the first nine months amounted to $206,000, or $0.02 per share diluted, versus $11.4 million, or $0.88 per share diluted.

"We are continuing to achieve operational progress as a result of the organizational restructuring completed earlier this year," said Robert G. Culp, III, chief executive officer. "The third fiscal quarter is historically not the strongest period of the year for our business due to seasonal factors. Although net income for the third quarter was lower than a year ago, the level of profitability did improve from the second period. We believe the underlying momentum is positive in several key corporate areas. Customer service has been enhanced as a result of the decision to combine our various operations by major product categories. This alignment is encouraging closer working relationships with accounts and assisting us in the vital process of creating new fabric designs and textures. Our intent is to link design resources with manufacturing capabilities in order to provide the marketplace with innovative designs that offer compelling value for furniture and bedding manufacturers."

Culp added, "As we have indicated, we believe the impact of the changes that have been implemented will continue into fiscal 2000. We are confident about the fundamental growth opportunities for Culp both in the United States and internationally and are encouraged by the continuing favorable trends in measures such as consumer confidence, employment levels and mortgage rates that have an important influence on consumer spending on home furnishings."

Culp, Inc. 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 primarily in the production of residential and commercial furniture and bedding products. -0-

                              CULP, INC.
                    Condensed Financial Highlights
                             (Unaudited)

                                            Three Months Ended
                                       ---------------------------
                                        January 31,    February 1,
                                           1999           1998
                                       ------------   ------------
Net sales                              $112,093,000   $118,457,000
Net income                                1,539,000      4,002,000
Net income per share
  Basic                                $       0.12   $       0.32
  Diluted                              $       0.12   $       0.31
Average shares outstanding
  Basic                                  12,995,000     12,692,000
  Diluted                                13,124,000     12,986,000


                                            Nine Months Ended
                                       ---------------------------
                                        January 31,    February 1,
                                           1999            1998
                                       ------------   ------------
Net sales                              $350,919,000   $340,881,000
Net income                                  206,000     11,357,000
Net income per share
  Basic                                $       0.02   $       0.90
  Diluted                              $       0.02   $       0.88
Average shares outstanding
  Basic                                  12,997,000     12,663,000
  Diluted                                13,171,000     12,964,000

This release contains statements that could be deemed "forward-looking statements," within the meaning of the federal securities laws. 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 by 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.