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CULP REPORTS INCREASED FOURTH QUARTER SALES AND EARNINGS GAINS LEAD TO THIRD CONSECUTIVE YEAR OF EARNINGS GROWTH

 CULP REPORTS INCREASED FOURTH QUARTER SALES AND EARNINGS
 GAINS LEAD TO THIRD CONSECUTIVE YEAR OF EARNINGS GROWTH
 HIGH POINT, N.C., June 12 /PRNewswire/ -- Culp, Inc. (NASDAQ-NMS: CULP)today reported 22% higher net sales and a 21% increase in net income for the fourth quarter of its 1992 fiscal year. The gains led to record net sales for the full year and enabled the company to report its third consecutive year of earnings growth.
 For the fourth quarter of fiscal 1992, Culp reported net sales of $57,395,000, up from $46,867,000 a year ago. Net income for the quarter totaled $1,163,000, or $0.26 per share, compared with $965,000, or $0.22 per share, in the year-earlier period.
 For the fiscal year ended May 3, 1992, net sales totaled $191,311,000, up from $174,107,000 in fiscal 1991. Net income for fiscal 1992 amounted to $2,973,000, or $0.67 per share, compared with $2,901,000, or $0.66 per share, in fiscal 1991.
 Robert G. Culp, III, chief executive officer, said, "Fiscal 1992 ended on a strong note for Culp, enabling us to achieve a new high in net sales and an increase in earnings for the full year. We are particularly pleased with the sound gain in earnings in the fourth quarter even after recognizing a LIFO inventory charge that reduced net income by approximately $250,000, or $0.06 per share, for both the fourth quarter and fiscal 1992 as a whole.
 "An important development contributing to the sharp gain in net sales for the fourth quarter was continued strong growth in exports which accounted for 18% of total sales for the year. Increased shipments to international accounts have been characteristic of our business over the past several years and throughout fiscal 1992. The percent of Culp's sales represented by exports has tripled in just the past two years, reflecting the progress made in positioning Culp as a strong competitor in the global market for fabrics and tickings."
 Culp remarked, "We also expanded our market share during fiscal 1992 as a supplier to targeted U.S.-based manufacturers. As a result of our strategic planning, Culp is now a fully integrated marketing organization, manufacturing virtually all of the fabrics sold by the company. That initiative has involved the commitment of considerable managerial and financial resources. Over the past five years, capital spending has totaled more than $48 million. Expenditures during fiscal 1992 alone amounted to $12.4 million, representing the second-highest annual total for Culp. Lower unit costs and improved product quality remain vital targets. We are also seeking to have the resources in place to offer customers increased flexibility in terms of lead times for shipments and minimum order quantities. We are keenly aware of the importance of maintaining a consistent record of on-time deliveries, and Culp's performance during fiscal 1992 demonstrated meaningful progress toward that objective.
 "Accompanying this capital investment has been a concerted initiative to bring production and design closer together in the process for developing new fabric patterns. Success in our industry demands innovative designs, and Culp is increasing the number of product offerings that appeal both in appearance and value."
 Culp commented, "The implementation of an ongoing program for quality improvement serves as perhaps the cornerstone of the company's overall planning. In order to build Culp's leadership as a 'value- added' supplier, we are focused on raising the standards for the production of our fabrics. Quality is defined by those using our products, and during fiscal 1992 we continued the plan of actively involving customers and suppliers in our business. The results to date have been gratifying, and we are expecting even more participation during fiscal 1993."
 Culp said, "Although there is not yet a consistent uptrend in the measures of consumer sentiment, recent changes in some key economic statistics indicate a possible improvement in demand over the next few quarters. The current pattern of our incoming orders suggests that the growth evident in the fourth quarter will extend into fiscal 1993. Rather than relying on the prospects for a cyclical upswing in spending on home furnishings, our marketing initiative continues to be focused on broadening Culp's customer base further and increasing our business with targeted accounts. The company's sound financial position continues to support an aggressive effort to capitalize on the opportunities for increasing Culp's market penetration."
 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 in the NASDAQ National Market System under the symbol CULP.
 CULP, INC.
 Condensed Financial Highlights
 Three Months Ended
 5/03/92 4/28/91
 Net sales $57,395,000 $46,867,000
 Net income $1,163,000 $965,000
 Net income per share $0.26 $0.22
 Year Ended
 5/03/92 4/28/91
 Net sales $191,311,000 $174,107,000
 Net income $2,973,000 $ 2,901,000
 Net income per share $ 0.67 $ 0.66
 -0- 6/12/92
 /CONTACT: Frank Saxon, Vice President and Chief Financial Officer, Culp, Inc., 919-888-6266/
 (CULP) CO: Culp, Inc. ST: North Carolina IN: TEX SU: ERN


JZ -- CH007 -- 9739 06/12/92 14:11 EDT
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Date:Jun 12, 1992
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