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CULP COMPLETES PURCHASE OF ROSSVILLE/CHROMATEX; ACQUISITION ESTABLISHES CULP AS SECOND LARGEST U.S. SUPPLIER OF UPHOLSTERY FABRICS

 HIGH POINT, N.C., Nov. 12 /PRNewswire/ -- Culp, Inc. (NASDAQ-NMS: CULP) today announced that it has completed the purchase of the operations and assets relating to the upholstery fabric businesses operating as Rossville Mills, Chromatex and Rossville Velours. As previously announced, the transaction was valued at approximately $34 million and involved the purchase of assets for cash as well as the assumption of certain liabilities.
 "Incorporating Rossville/Chromatex into Culp's operations will significantly enhance our basic competitive position as a supplier of upholstery fabrics," remarked Robert G. Culp, III, chief executive officer. "The initial response from Rossville/Chromatex's customer base to our ownership has been very positive. Our intent is to justify that support by delivering a consistently high level of customer service. Our management strategy at Culp encompasses firm objectives for continual improvement in such key measures as on-time deliveries and product quality. The importance of these values is shared by Rossville/Chromatex, a fact that will facilitate blending the combined marketing and manufacturing resources that we now control.
 "As planned, Dan Jacobs has now assumed the position of chief operating officer of the newly formed Rossville/Chromatex Division of Culp. His responsibilities include all of the Division's operations, including the sales and marketing programs formerly headed by Bill Teer, who is no longer associated with Rossville/Chromatex. Dan's experience of more than 20 years with Rossville/Chromatex is a solid asset for Culp, and we are excited about the opportunity to capitalize on his proven leadership in the industry."
 Dan Jacobs remarked, "The opportunity to work within the Culp organization matches well with the goals we have established at Rossville/Chromatex. We consider each customer to be the judge of the quality of our fabrics and the level of service we provide. Having the financial and managerial resources of Culp available to us will enable us to pursue more aggressively a number of initiatives to ensure the underlying ability to deliver value."
 Jacobs continued, "We recognize that in addition to efficient manufacturing facilities, design remains a critical determinant of success in the upholstery fabrics business. Richard Faggart, who was in charge of that function at Rossville/Chromatex, has assumed that same position with the new Division. We are confident of his ability to continue combining innovative designs with the practical factors that must be considered in being able to market new patterns effectively."
 Culp concluded by noting that the acquisition of Rossville/Chromatex is expected to add approximately $60 million in annual revenues to Culp. Culp reported net sales of $201 million in the fiscal year that ended on May 2, 1993.
 Culp, Inc. is a leading manufacturer and marketer of fabrics for the furniture, bedding and institutional furnishings markets. The company's common shares are traded on The Nasdaq Stock Market (National Market) under the symbol CULP.
 -0- 11/12/93
 /CONTACT: Frank Saxon, vice president and chief financial officer, of Culp, 919-888-6266/
 (CULP)


CO: Culp, Inc.; Rossville/Chromatex ST: North Carolina IN: TEX SU: TNM

CM -- CH001 -- 3537 11/12/93 09:06 EST
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Publication:PR Newswire
Date:Nov 12, 1993
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