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                         SECURITIES AND EXCHANGE COMMISSION
                               Washington, D.C. 20549
  
                                      ---------
  
                                      Form 8-K
  
                                   CURRENT REPORT
  
                  Pursuant to Section 13 or 15(d) of the Securities
                                Exchange Act of 1934
  
                                    ------------
  
            Date of Report (Date of earliest event reported) May 22, 1997
  
                                     CULP, INC.
  
               (Exact name of registrant as specified in its charter)
  
  
            North Carolina                0-12781                56-1001967
  (State or other jurisdiction    (Commission File No.)        (IRS Employer
        of incorporation)                                   Identification No.)
  
  
  
                                101 South Main Street
                          High Point, North Carolina 27260
                      (Address of principal executive offices)
                                   (910) 889-5161
                (Registrant's telephone number, including area code)
  
  
  
  
                 ------------------------------------------------
            (Former name or former address, if changed since last report)
  
  ================================================================================
  
  <PAGE>
  FOR IMMEDIATE RELEASE
  
  
               CULP REPORTS RECORD SALES AND EARNINGS FOR FISCAL 1997
  
                    EARNINGS INCREASE FOR EIGHTH CONSECUTIVE YEAR
  
  
  HIGH POINT,  North Carolina (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.
  
  
                                                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
                                      -----------------        -----------------
  
                                                         -END-
  
  
  
  
  
                                                           -2-
  
  Item 5. Other Events
  
  See Press Release  (attached)  dated May 22, 1997 related to fourth  quarter and
  year-end earnings for the period ended April 27, 1997.
  
  See Financial Information Release (attached).
  
  Forward  Looking  Information.  The  discussion  in this  Form  8-K may  contain
  statements that could be deemed forward-looking statements, which are inherently
  subject to risks and  uncertainties.  Factors that could  influence  the matters
  discussed  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 adversely affect the company.
  
  
  
  
  
                                            SIGNATURES
  
  
  Pursuant  to the  requirements  of the  Securities  Exchange  Act of  1934,  the
  Registrant  has duly  caused  this  report  to be  signed  on its  behalf by the
  undersigned hereunto duly authorized.
  
  
                                             CULP, INC.
                                            (Registrant)
  
  
                              By:       Franklin N. Saxon
                                        Senior Vice President and
                                        Chief Financial Officer
  
  
                              By:       Stephen T. Hancock
                                        Stephen T. Hancock
                                        General Accounting Manager
  
  
  
  
  Dated:  May 22, 1997
  
  
  
  
  
  
  
  <PAGE>
  
                                                                   (Page 1 of 11)
  <TABLE>
  
                      CULP, INC. FINANCIAL INFORMATION RELEASE
                           CONSOLIDATED INCOME STATEMENTS
   FOR THE THREE MONTHS AND TWELVE MONTHS ENDED APRIL 27, 1997 AND APRIL 28, 1996
  
                 (Amounts in Thousands, Except for Per Share Data)
  
                           THREE MONTHS ENDED (UNAUDITED)
  
                                        Amounts                  Percent of Sales
                                                                 ----------------
                                 April 27, April 28,    % Over
                                    1997      1996      (Under)   1997     1996
                                 ---------  --------    -------  -------  -------
  <S>                             <C>       <C>         <C>       <C>      <C>   
  
  Net sales                    $   105,678   102,162      3.4 %   100.0 %  100.0 %
  Cost of sales                     85,386    82,957      2.9 %    80.8 %   81.2 %
       Gross profit                 20,292    19,205      5.7 %    19.2 %   18.8 %
  
  Selling, general and
    administrative expenses         11,730    11,300      3.8 %    11.1 %   11.1 %
       Income from operations        8,562     7,905      8.3 %     8.1 %    7.7 %
  
  Interest expense                   1,019     1,352    (24.6)%     1.0 %    1.3 %
  Interest income                      (90)      (92)      ** %    (0.1)%   (0.1)%
  Other expense (income), net          404       365     10.7 %     0.4 %    0.4 %
       Income before income taxes    7,229     6,280     15.1 %     6.8 %    6.1 %
  
  Income taxes  *                    2,389     2,230      7.1 %    33.0 %   35.5 %
       Net income              $     4,840     4,050     19.5 %     4.6 %    4.0 %
  
  Average shares outstanding        12,546    11,284     11.2 %
  Net income per share               $0.39     $0.36      8.3 %
  Dividends per share              $0.0325   $0.0275     18.2 %
  
  
  
                              TWELVE MONTHS ENDED
  
                                       Amounts                    Percent of Sales
                                       -------                    ----------------
                                 April 27,  April 28,   % Over
                                    1997      1996      (Under)     1997     1996
                                 ---------  --------    -------   -------  -------
  
  Net sales                    $   398,879   351,667     13.4 %   100.0 %  100.0 %
  Cost of sales                    326,394   289,129     12.9 %    81.8 %   82.2 %
       Gross profit                 72,485    62,538     15.9 %    18.2 %   17.8 %
  
  Selling, general and
    administrative expenses         45,058    39,068     15.3 %    11.3 %   11.1 %
       Income from operations       27,427    23,470     16.9 %     6.9 %    6.7 %
  
  Interest expense                   4,671     5,316    (12.1)%     1.2 %    1.5 %
  Interest income                     (280)      (92)      ** %    (0.1)%   (0.0)%
  Other expense (income), net        1,521       956     59.1 %     0.4 %    0.3 %
       Income before income taxes   21,515    17,290     24.4 %     5.4 %    4.9 %
  
  Income taxes  *                    7,745     6,310     22.7 %    36.0 %   36.5 %
       Net income              $    13,770    10,980     25.4 %     3.5 %    3.1 %
  
  Average shares outstanding        11,624    11,234      3.5 %
  Net income per share               $1.18     $0.98     20.4 %
  Dividends per share              $0.1300   $0.1100     18.2 %
  
   * Percent of sales column is calculated as a % of income before income taxes.
  ** Measurement is not meaningful.
  </TABLE>
  
  <PAGE>
  
                                                                   (Page 2 of 11)
  <TABLE>
  
                      CULP, INC. FINANCIAL INFORMATION RELEASE
                            CONSOLIDATED BALANCE SHEETS
                          APRIL 27,1997 AND APRIL 28, 1996
  
                               (Amounts in Thousands)
  
                                             Amounts                  Increase
                                            April 27,   April 28,    (Decrease)
                                              1997        1996    Dollars  Percent
                                           ---------   ---------  -------  -------
  <S>                                       <C>        <C>        <C>      <C> 
  
  Current assets
     Cash and cash investments            $      830       498       332    66.7 %
     Accounts receivable                      56,691    52,038     4,653     8.9 %
     Inventories                              53,463    47,395     6,068    12.8 %
     Other current assets                      5,450     4,191     1,259    30.0 %
                                             -------   -------    ------    ----
             Total current assets            116,434   104,122    12,312    11.8 %
  
  Restricted investments                      11,018     5,250     5,768   109.9 %
  Property, plant & equipment, net            91,231    76,961    14,270    18.5 %
  Goodwill                                    22,262    22,871      (609)   (2.7)%
  Other assets                                 3,007     2,440       567    23.2 %
                                             -------    ------    ------    ----
  
             Total assets                 $ 243,952    211,644    32,308    15.3 %
                                           ========    =======    ======    ====
  
  
  
  Current Liabilities
     Current maturities of long-term debt $     100      7,100    (7,000)  (98.6)%
     Accounts payable                        29,903     27,308     2,595     9.5 %
     Accrued expenses                        15,074     12,564     2,510    20.0 %
     Income taxes payable                     1,580        197     1,383   702.0 %
                                             ------     ------     -----   -----
             Total current liabilities       46,657     47,169      (512)   (1.1)%
  
  Long-term debt                             76,541     74,941     1,600     2.1 %
  
  Deferred income taxes                       9,965      8,088     1,877    23.2 %
                                             ------      -----     -----    ----
             Total liabilities              133,163    130,198     2,965     2.3 %
  
  Shareholders' equity                      110,789     81,446    29,343    36.0 %
                                            -------     ------    ------    ----
  
             Total liabilities and
             shareholders' equity         $ 243,952    211,644    32,308    15.3 %
                                            =======    =======    ======    ====
  
  Shares outstanding                         12,609     11,290     1,319    11.7 %
                                            -------     ------     -----    ----
  </TABLE>
  
  <PAGE>
  
  <TABLE>
  
                                                                   (Page 3 of 11)
  
                      CULP, INC. FINANCIAL INFORMATION RELEASE
                        CONSOLIDATED STATEMENTS OF CASH FLOWS
                FOR            THE YEARS  ENDED  APRIL 27, 1997 AND APRIL 28, 1996
                               (Amounts in Thousands)
  
  
                                                             TWELVE MONTHS ENDED
                                                             -------------------
                                                                   Amounts
                                                             April 27,  April 28,
                                                               1997       1996
                                                             ---------  ---------
  <S>                                                         <C>        <C>
  Cash flows from operating activities:
    Net income                                           $      13,770     10,980
    Adjustments to reconcile net income to net
      cash provided by operating activities:
        Depreciation                                            12,688     12,348
        Amortization of intangible assets                          810        748
        Provision for deferred income taxes                        966      2,210
        Changes in assets and liabilities:
          Accounts receivable                                   (4,653)    (7,786)
          Inventories                                           (6,068)    (1,624)
          Other current assets                                    (348)      (537)
          Other assets                                            (205)      (103)
          Accounts payable                                       2,586     (1,077)
          Accrued expenses                                       2,510      1,032
          Income taxes payable                                   1,383       (464)
                                                                ------     ------
            Net cash provided by operating activities           23,439     15,727
                                                                ------     ------
  Cash flows from investing activities:
    Capital expenditures                                       (26,958)   (14,385)
    Purchases of restricted investments                         (9,770)    (6,019)
    Purchase of investments to fund deferred compensation
      liability                                                   (563)    (1,286)
    Sale of restricted investments                               4,002      1,564
                                                               -------    -------
            Net cash used in investing activities              (33,289)   (20,126)
                                                               -------    -------
  Cash flows from financing activities:
    Proceeds from issuance of long-term debt                    54,500     19,854
    Principal payments on long-term debt                       (59,900)   (11,555)
    Change in accounts payable-capital expenditures                  9     (3,865)
    Dividends paid                                              (1,513)    (1,236)
    Proceeds from common stock issued                           17,086        306
                                                               -------     ------
            Net cash provided by financing activities           10,182      3,504
                                                               -------     ------
  
  Increase (decrease) in cash and cash investments                 332       (895)
  
  Cash and cash investments at beginning of period                 498      1,393
                                                                ------      -----
  
  Cash and cash investments at end of period             $         830        498
  </TABLE>
                                                                ======      =====
  <PAGE>
  
  <TABLE>
                                                                   (Page 4 of 11)
  
                      CULP, INC. FINANCIAL INFORMATION RELEASE
                                 FINANCIAL ANALYSIS
                                   APRIL 27, 1997
  
  
                                              FISCAL 96                        FISCAL 97
                                            -----------       ------------------------------------------
                                                 Q4              Q1          Q2          Q3          Q4       LTM
  <S>                                         <C>           <C>         <C>         <C>         <C>         <C>
                                                ----            ----        ----        ----        ----      ---
  INVENTORIES
       Inventory turns                           6.8           6.0         6.6         6.2         6.6
  
  RECEIVABLES
       Days sales in receivables                   46           43          45          47          49
       Percent current & less than 30
         days past due                          99.0%        99.3%       99.9%       99.8%       99.1%
  
  WORKING CAPITAL
       Current ratio                             2.2          2.2         2.1         2.4         2.5
       Working capital turnover                  5.3          5.4         5.4         5.3         5.3
       Working capital                       $56,953      $53,635     $57,230     $60,689     $69,777
       Working capital as a % of sales (4)      13.9%        14.8%       13.6%       15.6%       16.5%
  
  PROPERTY, PLANT & EQUIPMENT
       Depreciation rate                         8.3%         8.3%        8.1%        7.5%        7.5%
       Percent property, plant &
         equipment are depreciated              47.7%        48.2%       48.6%       47.9%       47.4%
       Capital expenditures                  $14,385 (1    $4,475      $5,201      $8,949      $8,333
  
  PROFITABILITY
       Net profit margin                         4.0%         2.4%        3.5%        3.1%        4.6%        3.5%
       Gross profit margin                      18.8%        17.6%       18.2%       17.6%       19.2%       18.2%
       Operating income margin                   7.7%         5.6%        7.1%        6.6%        8.1%        6.9%
       SG & A expenses/net sales                11.1%        12.0%       11.1%       11.0%       11.1%       11.3%
       Return on average total capital          11.2%         5.7%        9.3%        7.5%       11.7%        8.4%
       Return on average equity                 22.7%        10.7%       17.4%       14.1%       20.9%       15.2%
       Earnings per share                      $0.36        $0.20       $0.33       $0.27       $0.39       $1.18
  
  LEVERAGE (3)
       Total liabilities/equity                153.4%       149.9%      152.8%      154.8%      120.2%
       Funded debt/equity                       94.3%        87.3%       85.9%       90.0%       59.2%
       Funded debt/capital employed             48.5%        46.6%       46.2%       47.4%       37.2%
       Funded debt                           $76,791      $72,772     $74,612     $80,588     $65,623
       Funded debt/EBITDA (LTM)                 2.16         1.98        1.97        2.09         1.67
       EBITDA/Interest expense, net (LTM)                                                                      9.0
  
  OTHER
       Book value per share                    $7.21        $7.37       $7.66       $7.89       $8.79
       Employees at quarter end                2,966        3,020       3,098       3,143       3,146
       Sales per employee (annualized)      $140,000     $120,000    $138,000    $125,000    $134,000
       Capital employed (3)                 $158,237     $156,128    $161,447    $170,166    $176,412
       Effective income tax rate                35.5%        37.5%       37.5%       37.5%       33.0%
       EBITDA (2)                            $10,814       $8,003     $10,540      $9,279     $11,582     $39,404
       EBITDA/net sales                         10.6%         8.8%       10.0%        9.5%       11.0%        9.9%
  
    (1) Expenditures for entire year
    (2) Earnings before interest, income taxes, and depreciation & amortization.
    (3) Total  liabilities,  long-term debt,  funded debt and capital employed are
    all net of restricted investments. (4) Working capital for this calculation is
    accounts receivable, inventories and accounts payable.
    (5) LTM represents "Latest Twelve Months"
  </TABLE>
  
                               <PAGE>
  
  
  
  <TABLE>
  
                                                                   (Page 5 of 11)
  
  
                      CULP, INC. FINANCIAL INFORMATION RELEASE
                       SALES BY PRODUCT CATEGORY/BUSINESS UNIT
     FOR THREE MONTHS AND TWELVE MONTHS ENDED APRIL 27, 1997 AND APRIL 28, 1996
  
  
                               (Amounts in thousands)
  
                                          THREE MONTHS ENDED (UNAUDIITED)
                              ----------------------------------------------------
                                    Amounts                 Percent of Total Sales
                              -------------------           ----------------------
                              April 27   April 28,  % Over
  Product Category/Business    1997       1996     (Under)      1997       1996
  <S>                         <C>        <C>        <C>        <C>        <C>  
  ----- -------------------   --------   --------  -------      ----       ----
  Upholstery Fabrics
      Culp Textures          $ 23,027     23,400     (1.6)%     21.8 %     22.9 %
      Rossville/Chromatex      20,672     22,318     (7.4)%     19.6 %     21.8 %
                               ------     ------     ----       ----       ----
                               43,699     45,718     (4.4)%     41.4 %     44.8 %
  
      Velvets/Prints           40,980     38,261      7.1 %     38.8 %     37.5 %
                               ------     ------     ----       ----       ----
                               84,679     83,979      0.8 %     80.1 %     82.2 %
  
      Culp Home Fashions       20,999     18,183     15.5 %     19.9 %     17.8 %
                               ------     ------     ----       ----       ----
  
                           * $105,678    102,162      3.4 %    100.0%     100.0 %
                             ========    =======     ====      =====      =====
  
  
                                             TWELVE MONTHS ENDED
                              ----------------------------------------------------
                                  Amounts                   Percent of Total Sales
                              -------------------           ----------------------
                              April 27   April 28.  %Over
  Product Category/Business   1997       1996      (Under)     1997       1996
  -------------------------   --------   --------  -------     ----       ----
  Upholstery Fabrics
      Culp Textures          $ 88,218     84,384     4.5 %     22.1 %    24.0 %
      Rossville/Chromatex      79,512     74,203     7.2 %     19.9 %    21.1 %
                               ------     ------    ----      -----     -----
                              167,730    158,587     5.8 %     42.1 %    45.1 %
  
      Velvets/Prints          156,467    125,701    24.5 %     39.2 %    35.7 %
                              -------    -------    ----      -----     -----
                              324,197    284,288    14.0 %     81.3 %    80.8 %
  
      Culp Home Fashions       74,682     67,379    10.8 %     18.7 %    19.2 %
                              -------    --------    ----      -----     -----
  
                             $398,879    351,667    13.4 %    100.0%    100.0 %
                             ========    =======    ====      =====     =====
  </TABLE>
  
  
  
  *U.S.  sales were  $76,517 and  $78,137 for the three  months of fiscal 1997 and
  fiscal 1996,  respectively;  and $297,308 and $274,270 for the twelve  months of
  fiscal 1997 and fiscal 1996, respectively. The percentage decrease in U.S. sales
  was 2.0% for the three months and an increase of 8.4% for the twelve months.
  
  
  <PAGE>
  
  <TABLE>
                                                                   (Page 6 of 11)
  
                      CULP, INC. FINANCIAL INFORMATION RELEASE
                       INTERNATIONAL SALES BY GEOGRAPHIC AREA
     FOR THREE MONTHS AND TWELVE MONTHS ENDED APRIL 27, 1997 AND APRIL 28, 1996
  
  
                               (Amounts in thousands)
  
                                        THREE MONTHS ENDED (UNAUDITED)
                                 -------------------------------------------------
                                       Amounts              Percent of Total Sales
                                 -------------------        ----------------------
                                 April 27,  April 28,  %Over
      Geographic Area              1997       1996    (Under)     1997     1996
  -----------------------------  ---------  --------- -------     ----     ----
  <S>                            <C>        <C>       <C>        <C>      <C> 
  
  North America (Excluding USA)$   6,924     6,421     7.8 %      23.7 %   26.7 %
  Europe                           7,672     5,774    32.9 %      26.3 %   24.0 %
  Middle East                      9,769     5,997    62.9 %      33.5 %   25.0 %
  Far East & Asia                  3,753     4,114    (8.8)%      12.9 %   17.1 %
  South America                      140       621    (77.4%       0.5 %    2.6 %
  All other areas                    903     1,098    (17.7%       3.1 %    4.6 %
                                  ------     -----    -----      -----     -----
  
                               $  29,161    24,025     21.4 %    100.0 %   100.0%
                                 =======    ======     ====      =====     =====
  
  
                                         TWELVE MONTHS ENDED (UNAUDITED)
                                   -----------------------------------------------
                                   Amounts                  Percent of Total Sales
                                   -------                  ----------------------
                                 April 27, April 28,  %Over
      Geographic Area              1997      1996    (Under)     1997     1996
  -----------------------------  --------- --------- -------     ----     ----
  North America (Excluding USA)$  27,479    23,528    16.8 %     27.1 %   30.4 %
  Europe                          25,245    18,927    33.4 %     24.9 %   24.5 %
  Middle East                     23,505    15,609    50.6 %     23.1 %   20.2 %
  Far East & Asia                 19,646    12,124    62.0 %     19.3 %   15.7 %
  South America                    2,604     2,753    (5.4)%      2.6 %    3.6 %
  All other areas                  3,092     4,456    (30.6%      3.0 %    5.8 %
                                 -------    ------    -----     -----     ----
  
                               $ 101,571    77,397    31.2 %    100.0 %   100.0%
                                 =======    ======    ====      =====     =====
  </TABLE>
  
  
  
  
  International  sales,  and the  percentage of total sales,  for each of the last
  seven fiscal years  follows:  fiscal 1991-$  20,295 (12%);  fiscal 1992-$ 34,094
  (18%);  fiscal  1993-$ 40,729  (20%);  fiscal 1994-$ 44,038 (18%);  fiscal 1995-
  $57,971 (19%); fiscal 1996-$ 77,397 (22%); and fiscal 1997-$ 101,571 (25%).
  
  Certain amounts for fiscal year 1996 have been  reclassified to conform with the
  fiscal year 1997 presentation.
  
  
  
  
  <PAGE>
  
  <TABLE>
  
          Culp, Inc.
  SALES BY BUSINESS UNIT - TREND ANALYSIS
     1995 vs 1996 vs 1997
  
    (Amounts in thousands)
  
                                         Fiscal 1995                                        Fiscal 1996
                               ----------------------------------------       -------------------------------------------------
                                 Q1       Q2       Q3      Q4     TOTAL          Q1      Q2          Q3        Q4        TOTAL
                               ------   ------   ------  ------   -----       -----     ------     ------    ------      ------
  <S>                          <C>      <C>      <C>     <C>     <C>          <C>       <C>        <C>       <C>        <C>     
  Product Category/Business Unit
  ------------------------------
  Upholstery Fabrics
      Culp Textures            19,613   22,834   20,940  21,738   85,125      17,584    22,715     20,685    23,400      84,384
      Rossville/Chromatex      15,140   15,758   16,397  16,476   63,765      15,358    17,960     18,567    22,318      74,203
                               ------   ------   ------  ------   ------      ------    ------     ------    ------      ------
                               34,753   38,592   37,337  38,208  148,890      32,942    40,675     39,252    45,718     158,587
  
      Velvets/Prints           20,644   26,439   28,307  31,413  106,803      23,523    32,081     31,836    38,261     125,701
                               55,397   65,031   65,644  69,621  255,693      56,465    72,756     71,088    83,979     284,288
  
  Mattress Ticking
      Culp Home Fashions       10,952   13,414   12,147  15,820   52,333      15,892    17,916     15,388    18,183      67,379
                               ------   ------   ------  ------   ------      ------    ------     ------    ------      ------
  
                               66,349   78,445   77,791  85,441  308,026      72,357    90,672     86,476   102,162     351,667
                               ======   ======   ======  ======  =======      ======    ======     ======   =======     =======
  
  
                                                     Percent    increase(decrease)from prior year:
                                                     -------------------------------------------
  Product Category/Business Units
  -------------------------------
  Upholstery Fabrics
      Culp Textures              12.4     13.8      6.4   2.9    8.7       (10.3)        (0.5)      (1.2)      7.6        (0.9)
      Rossville/Chromatex       100.0    100.0     14.4  (1.5) 105.4         1.4         14.0       13.2      35.5        16.4
                                -----    -----     ----  ----  -----         ---         ----       ----      ----        ----
                                 99.2     92.3      9.8   1.0   36.1        (5.2)         5.4        5.1      19.7         6.5
  
      Velvets/Prints             (1.2)     7.8     19.4  12.5   10.1        13.9         21.3       12.5      21.8        17.7
                                 ----      ---     ----  ----   ----        ----         ----       ----      ----        ----
                                 44.5     45.8     13.7   5.9   23.9         1.9         11.9        8.3      20.6        11.2
  
  Mattress Ticking
      Culp Home Fashions         32.7     42.8     27.4  37.9   35.4        45.1         33.6       26.7      14.9        28.8
                                 ----     ----     ----  ----   ----        ----         ----       ----      ----        ----
  
                                 42.4     45.3     15.7  10.6   25.7         9.1         15.6       11.2      19.6        14.2
                                 ====     ====     ====  ====   ====         ===         ====       ====      ====        ====
  
     Overall Growth Rate
     -------------------
  
  Internal (without acquistions)  9.9     16.1     15.7   8.8   12.5         6.4         13.0        8.7      19.6        12.3
  External                       32.5     29.2      -     1.8   13.2         2.7          2.6        2.5                   1.9 
                                 ----     ----     ----   ---   ----         ---          ---        ---                   ---
                                 42.4     45.3     15.7  10.6   25.7         9.1         15.6       11.2      19.6        14.2
                                 ====     ====     ====  ====   ====         ===         ====       ====      ====        ====
  
  </TABLE>
                                                              -MORE-
  <PAGE>
  <TABLE>
  
                                     Culp, Inc.
                SALES BY BUSINESS UNIT - TREND ANALYSIS (CONTINUED)
                                1995 vs 1996 vs 1997
  
                               (Amounts in thousands)
  
                                                         Fiscal 1997
                                                         -----------
                                        Q1          Q2           Q3            Q4           TOTAL
                                       -----      ------        ------        ------       -------
  Product Category/Business Unit
     <S>                             <C>         <C>           <C>          <C>            <C>  
      Upholstery Fabrics
      Culp Textures                   20,801      24,001        20,389        23,027         88,218
      Rossville/Chromatex             18,165      21,722        18,953        20,672         79,512
                                      38,966      45,723        39,342        43,699        167,730
  
      Velvets/Prints                  34,867      40,233        40,387        40,980        156,467
                                      73,833      85,956        79,729        84,679        324,197
  
  Mattress Ticking
      Culp Home Fashions              16,696      19,248        17,739        20,999         74,682
  
                                      90,529     105,204        97,468       105,678        398,879
  
  
  Percent increase(decrease) fro
  Product Category/Business Unit
  
  Upholstery Fabrics
      Culp Textures                  18.3         5.7          (1.4)         (1.6)           4.5
      Rossville/Chromatex            18.3        20.9           2.1          (7.4)           7.2
                                     18.3        12.4           0.2          (4.4)           5.8
  
      Velvets/Prints                 48.2        25.4          26.9           7.1           24.5
                                     30.8        18.1          12.2           0.8           14.0
  
  Mattress Ticking
      Culp Home Fashions              5.1         7.4          15.3          15.5           10.8
  
                                     25.1        16.0          12.7           3.4           13.4
  
     Overall Growth Rate
  
  Internal (without acquistions)     25.1        16.0          12.7           3.4           13.4
  External                                                                                                           
                                     25.1        16.0          12.7           3.4           13.4
       
  </TABLE>
  
  <PAGE>
  
  
                                                                   (Page 8 of 11)
  
  
                      CULP, INC. FINANCIAL INFORMATION RELEASE
                                 FINANCIAL NARRATIVE
   for the three and twelve month periods ended April 27, 1997 and April 28, 1996
  
  INCOME STATEMENT COMMENTS
  
  GENERAL - Net sales  increased 3.4% to $105.7  million and net income  increased
  19.5% to $4.8  million  for the  fourth  quarter,  as  compared  with the fourth
  quarter of last year. This performance marks the eighteenth  consecutive quarter
  of record earnings and the sixteenth  consecutive quarter of record sales (based
  on comparable  year-earlier  periods). The company's net profit margin increased
  to 4.6% from 4.0% for the quarter.  For the twelve months, sales increased 13.4%
  to $398.9 million and net income increased 25.4% to $13.8 million. The company's
  net profit margin  increased to 3.5% from 3.1% for the twelve months.  Also, the
  company  achieved  a return  on  average  shareholder's  equity of 15.2% for the
  latest  twelve  months.  For the last five years,  the  company  has  achieved a
  compound  annual  growth  rate  in net  income  and  net  sales  of 36%  and 16%
  respectively.
  
  The  company  attributes  this  consistent  record to  several  key  competitive
  strengths:
  
  Diverse Global Customer Base - penetrating  other end-use markets in addition to
  U.  S.  residential  furniture,  such  as  bedding,  international,   commercial
  furniture and juvenile  furniture;  sales to these other  markets  accounted for
  approximately 50% of net sales during the fourth quarter;  additionally,  no one
  customer accounted for more than 7% of sales during fiscal 1997;
  
  Design  Innovation  - investing  in the  creative  aspect of our  business - the
  company  has   significantly   increased  the  resources   (both  designers  and
  computer-aided  design  (CAD)  systems)  dedicated  to the  design  and  product
  development areas in each business unit; the company's in-house design staff now
  includes   over  50   people.   Additionally,   the   company   is   building  a
  state-of-the-art  design center in  Burlington,  North  Carolina that will bring
  together most of its design resources in one location;
  
  Vertical  Integration  -  realizing  additional  manufacturing   integration  by
  producing  internally  various  raw  material  components  that  are used in the
  manufacture of its products; and
  
  Ability  to  Integrate   Acquisitions   -  investing  in  selective,   accretive
  acquisitions  in businesses  which we know and  understand  and that  strengthen
  existing marketing positions.
  
  NET SALES - Compared  with the fourth  quarter of last year,  upholstery  fabric
  sales increased 0.8% to $84.7 million and mattress ticking sales increased 15.5%
  to $21.0  million for the quarter (See Sales by Business Unit schedule on Page 5
  and Sales by Business Unit - Trend Analysis on Page 7). The growth in upholstery
  fabric  sales  for  the  fourth   quarter   reflects  the   following   changes:
  Velvets/Prints  - up 7.1%;  Rossville/Chromatex  - down 7.4%;  and Culp Textures
  down 1.6%. Within the  Velvets/Prints  business unit, sales of the company's wet
  printed flock  product line  increased  59.8% versus the fourth  quarter of last
  year. Sales of printed jacquards increased 31.3% versus the same quarter of last
  year. The company's  sales to U.S.  customers  declined in the fourth quarter by
  2.0 % and increased for the full year by 8.4%.
  
  International  sales were up 21.4% for the quarter and 31.2% for the year,  with
  strength in all major  regions.  (See  International  Sales by  Geographic  Area
  schedule on page 6.) All business units reported  gains in  international  sales
  for the year and all business units except Rossville/Chromatex reported gains in
  international sales for the quarter. The company has shipped products to over 50
  countries during fiscal 1997. We are encouraged by the  geographical  balance of
  our  international  customer base. The vast majority of international  sales are
  denominated in U.S. dollars.
  
  
  <PAGE>
  
  
                                                                   (Page 9 of 11)
  
                      CULP, INC. FINANCIAL INFORMATION RELEASE
                                 FINANCIAL NARRATIVE
   for the three and twelve month periods ended April 27, 1997 and April 28, 1996
  
  
  GROSS PROFIT - Gross profit  increased of 5.7% for the quarter and 15.9% for the
  year  versus  the same  periods  of last  year.  The  full  year  gain  reflects
  significant  increases for the  Velvets/Prints  and Culp Home Fashions  business
  units,  and slight  increases for  Rossville/Chromatex  and Culp  Textures.  The
  fourth  quarter  results  reflect a very strong gain in Culp Home  Fashions  and
  moderately  lower  results in the three  upholstery  fabric  business  units The
  overall gross profit margin increased to 19.2% for the quarter from 18.8% in the
  same quarter of last year.
  
  S,G&A  EXPENSES - S,G&A expenses were flat as a percentage of sales at 11.1% for
  the fourth quarter and increased slightly to 11.3 % for the year from 11.1 % for
  the prior year. The increase in absolute  dollars is  principally  due to higher
  sales commissions  related to international  sales and investments in additional
  design resources.
  
  INTEREST  EXPENSE - The decrease  for the quarter of 24.6% is  primarily  due to
  lower  average  borrowings  outstanding  , which  resulted  from  the  company's
  secondary  stock offering that was completed early in the fourth quarter of this
  year.  . INTEREST  INCOME - Interest  income is at the same level as last year's
  fourth quarter.
  
  OTHER EXPENSE  (INCOME),  NET - In the fourth  quarter,  other expense  (income)
  increased to $404,000 from $365,000 in the same quarter of last year.
  
  INCOME TAXES - The effective tax rate for the year was 36.0% compared with 36.5%
  for fiscal 1996,  due to the lower tax rate  related to Canadian  income and tax
  benefits related to international sales.
  
  EBITDA - EBITDA for the quarter  increased  7.1% from last year's fourth quarter
  to $11.6 million,  and represented 11.0% of net sales compared with 10.6% of net
  sales last year. For the year,  EBITDA  increased 10.7% from last year to $39.4
  million, and represented 9.9% of net sales versus 10.1% last year.
  
  
  BALANCE SHEET COMMENTS
  
  
  WORKING  CAPITAL - Accounts  receivable  increased  8.9% from April 1996,  while
  sales increased 3.4% for the fourth quarter. Day's sales outstanding represented
  49 days,  up from 46 at April 1996.  Accounts  receivable  increased at a faster
  rate than sales because of the  increasing  mix of  international  sales,  which
  carry longer payment terms than U.S. sales. The aging of accounts  receivable at
  April  1997 was  99.1%  current  and less  than 30 days  past  due.  Inventories
  increased 12.8% from April 1996 and inventory turns were 6.6 versus 6.8 for last
  year's fourth quarter.
  
  
  
  
  
  
  
  <PAGE>
  
  
  
                                                                  (Page 10 of 11)
  
  
  
                      CULP, INC. FINANCIAL INFORMATION RELEASE
                                 FINANCIAL NARRATIVE
   for the three and twelve month periods ended April 27, 1997 and April 28, 1996
  
  
  PROPERTY, PLANT AND EQUIPMENT - The company has maintained a significant program
  of capital  expenditures  designed to expand  capacity to support  sales growth,
  increase  vertical  integration  to lower  product costs and control more of its
  supply  of  raw  materials,  and  enhance  manufacturing   efficiencies  through
  modernization.  For  fiscal  1997,  the  company's  capital  spending  was $27.0
  million. Major projects include the following:
  
  Expansion Projects - ($11.0 million or 40 % of the total)
  
            a) printing  expansion  for the wet printed  flock product line in the
            Velvets/Prints  business unit; this project includes the purchase of a
            facility in  Lumberton,  North  Carolina and the  installation  of new
            printing and finishing  equipment  ($8.9 million is the total project,
            of which $ 6.0 was spent in fiscal 1997).
  
            b) Weaving  expansions  for the dobby and  jacquard  product
            lines in the Rossville/  Chromatex  business unit ($2.3 million); and
  
            c) other projects ($2.7 million)
  
  Vertical Integration - ($ 13.0 million or 48 % of the total)
  
            a) weaving  expansion for jacquard greige goods (narrow
            and  wide-width)  at  the  company's  Rayonese  facility  in
            Canada,  which is part of Culp Home  Fashions  business unit
            ($5.1 million);
  
            b) installation of the company's first flock coating line,  which will
            produce the unprinted  flocked  greige goods for the wet printed flock
            product line ($4.0 million);
  
            c) expansion of yarn extrusion capacity; during the third quarter, the
            company  began an $8.0  million  project to  approximately  double its
            polypropylene  yarn extrusion  capacity over the next two years. About
            20% of the  capacity  is  expected  to be  operational  by June  1997,
            another 40%  throughout  fiscal 1998,  and the balance in early fiscal
            1999 ($1.7  million in fiscal 1997;  $3.2 million in fiscal 1998;  and
            $3.1 million in fiscal 1999);
  
            d) various  other projects ($2.2 million).
  
  Modernization ($3.0 million or 12% of the total)
  
  The company is currently  planning capital spending of approximately $30 million
  during fiscal 1998,  which includes  about $ 8.7 million for expansion  projects
  (29%); $12.7 million for vertical  integration projects (42 %); and $8.6 million
  for modernization  projects (29%). The key vertical integration projects include
  the yarn extrusion expansion, a second flock coating line and additional weaving
  capacity for jacquard greige goods at Rayonese.
  
  Depreciation  expense  for  fiscal  1998 is  estimated  at  approximately  $15.6
  million.
  
  <PAGE>
  
                                                                   (Page 11 of 11)
  
  
  
                      CULP, INC. FINANCIAL INFORMATION RELEASE
                                 FINANCIAL NARRATIVE
   for the three and twelve month periods ended April 27, 1997 and April 28, 1996
  
  
  
  LONG-TERM DEBT - The company's funded  debt-to-capital  ratio was 37.2% at April
  27, 1997, down from 48.5% at April 1996.  Funded debt was $65.6 million at April
  27,  1997,  compared  with $76.8  million  last year end . (Funded  debt  equals
  long-term debt, including current maturities, less restricted investments, which
  represent unspent IRB funds).
  
  During the fourth  quarter,  the company  completed the  refinancing  of its $65
  million term loan and revolving line of credit with a syndicated, five-year $125
  million  unsecured,  multi-currency  credit facility.  Terms of the new facility
  include  reduced  interest  costs,  less  restrictive  financial  convenants and
  significant additional borrowing capacity.
  
  SECONDARY  STOCK OFFERING - On February 4, 1997, the company  completed the sale
  of 1,200,000  shares of newly issued common stock,  and 640,000 shares of common
  stock from certain  non-management  shareholders for $15.00 per share.  Proceeds
  from  the  offering,  net  of  underwriter's  commission  and  company  issuance
  expenses,  were  approximately  $16.3 million.  The key reasons for the offering
  were to fund the company's growth  initiatives,  reduce long term debt,  provide
  the financial basis for possible  acquisitions,  and to a lesser extent, enhance
  trading liquidity of its common stock by increasing the "float".
  
  
  PHILLIPS ACQUISITION -- On May 1, 1997, the company announced that it has signed
  a Letter of Intent to acquire the  business and certain  assets  relating to the
  upholstery fabric business operating as Philips Weaving Mills,  Phillips Velvets
  Mills,  Phillips Printing and Phillips Mills. Closing of the transaction,  which
  is subject to completion of a definitive  asset  purchase  agreement and certain
  other  conditions  , is  set  forth  in  the  Letter  of  Intent.  The  proposed
  transaction is disclosed in more detail in the company's Form 8-K filing,  dated
  May 1, 1997.
metadata_documents: [{"type": "8-K", "sequence": "1", "description": "CULP, INC. 8-K", "secsgml_size_bytes": 49627}]
metadata_filer: {"company-data": {"conformed-name": "CULP INC", "cik": "0000723603", "assigned-sic": "2211", "irs-number": "561001967", "state-of-incorporation": "NC", "fiscal-year-end": "0430"}, "filing-values": {"form-type": "8-K", "act": "34", "file-number": "001-12597", "film-number": "97613280"}, "business-address": {"street1": "101 S MAIN ST", "city": "HIGH POINT", "state": "NC", "zip": "27261-2686", "phone": "9108895161"}, "mail-address": {"street1": "P O BOX 2686", "street2": "101 S MAIN ST", "city": "HIGH POINT", "state": "NC", "zip": "27261"}}
text: ================================================================================
                         SECURITIES AND EXCHANGE COMMISSION
                               Washington, D.C. 20549
  
                                      ---------
  
                                      Form 8-K
  
                                   CURRENT REPORT
  
                  Pursuant to Section 13 or 15(d) of the Securities
                                Exchange Act of 1934
  
                                    ------------
  
            Date of Report (Date of earliest event reported) May 22, 1997
  
                                     CULP, INC.
  
               (Exact name of registrant as specified in its charter)
  
            North Carolina                0-12781                56-1001967
  (State or other jurisdiction    (Commission File No.)        (IRS Employer
        of incorporation)                                   Identification No.)
  
                                101 South Main Street
                          High Point, North Carolina 27260
                      (Address of principal executive offices)
                                   (910) 889-5161
                (Registrant's telephone number, including area code)
  
                 ------------------------------------------------
            (Former name or former address, if changed since last report)
  
  ================================================================================
  FOR IMMEDIATE RELEASE
  
               CULP REPORTS RECORD SALES AND EARNINGS FOR FISCAL 1997
  
                    EARNINGS INCREASE FOR EIGHTH CONSECUTIVE YEAR
  
  HIGH POINT,  North Carolina (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.
  
                                                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
                                      -----------------        -----------------
  
                                                         -END-
  
                                                           -2-
  
  Item 5. Other Events
  
  See Press Release  (attached)  dated May 22, 1997 related to fourth  quarter and
  year-end earnings for the period ended April 27, 1997.
  
  See Financial Information Release (attached).
  
  Forward  Looking  Information.  The  discussion  in this  Form  8-K may  contain
  statements that could be deemed forward-looking statements, which are inherently
  subject to risks and  uncertainties.  Factors that could  influence  the matters
  discussed  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 adversely affect the company.
  
                                            SIGNATURES
  
  Pursuant  to the  requirements  of the  Securities  Exchange  Act of  1934,  the
  Registrant  has duly  caused  this  report  to be  signed  on its  behalf by the
  undersigned hereunto duly authorized.
  
                                             CULP, INC.
                                            (Registrant)
  
                              By:       Franklin N. Saxon
                                        Senior Vice President and
                                        Chief Financial Officer
  
                              By:       Stephen T. Hancock
                                        Stephen T. Hancock
                                        General Accounting Manager
  
  Dated:  May 22, 1997
  (Page 1 of 11)
  
                      CULP, INC. FINANCIAL INFORMATION RELEASE
                           CONSOLIDATED INCOME STATEMENTS
   FOR THE THREE MONTHS AND TWELVE MONTHS ENDED APRIL 27, 1997 AND APRIL 28, 1996
  
                 (Amounts in Thousands, Except for Per Share Data)
  
                           THREE MONTHS ENDED (UNAUDITED)
  
                                        Amounts                  Percent of Sales
                                                                 ----------------
                                 April 27, April 28,    % Over
                                    1997      1996      (Under)   1997     1996
                                 ---------  --------    -------  -------  -------
  Net sales                    $   105,678   102,162      3.4 %   100.0 %  100.0 %
  Cost of sales                     85,386    82,957      2.9 %    80.8 %   81.2 %
       Gross profit                 20,292    19,205      5.7 %    19.2 %   18.8 %
  
  Selling, general and
    administrative expenses         11,730    11,300      3.8 %    11.1 %   11.1 %
       Income from operations        8,562     7,905      8.3 %     8.1 %    7.7 %
  
  Interest expense                   1,019     1,352    (24.6)%     1.0 %    1.3 %
  Interest income                      (90)      (92)      ** %    (0.1)%   (0.1)%
  Other expense (income), net          404       365     10.7 %     0.4 %    0.4 %
       Income before income taxes    7,229     6,280     15.1 %     6.8 %    6.1 %
  
  Income taxes  *                    2,389     2,230      7.1 %    33.0 %   35.5 %
       Net income              $     4,840     4,050     19.5 %     4.6 %    4.0 %
  
  Average shares outstanding        12,546    11,284     11.2 %
  Net income per share               $0.39     $0.36      8.3 %
  Dividends per share              $0.0325   $0.0275     18.2 %
  
                              TWELVE MONTHS ENDED
  
                                       Amounts                    Percent of Sales
                                       -------                    ----------------
                                 April 27,  April 28,   % Over
                                    1997      1996      (Under)     1997     1996
                                 ---------  --------    -------   -------  -------
  
  Net sales                    $   398,879   351,667     13.4 %   100.0 %  100.0 %
  Cost of sales                    326,394   289,129     12.9 %    81.8 %   82.2 %
       Gross profit                 72,485    62,538     15.9 %    18.2 %   17.8 %
  
  Selling, general and
    administrative expenses         45,058    39,068     15.3 %    11.3 %   11.1 %
       Income from operations       27,427    23,470     16.9 %     6.9 %    6.7 %
  
  Interest expense                   4,671     5,316    (12.1)%     1.2 %    1.5 %
  Interest income                     (280)      (92)      ** %    (0.1)%   (0.0)%
  Other expense (income), net        1,521       956     59.1 %     0.4 %    0.3 %
       Income before income taxes   21,515    17,290     24.4 %     5.4 %    4.9 %
  
  Income taxes  *                    7,745     6,310     22.7 %    36.0 %   36.5 %
       Net income              $    13,770    10,980     25.4 %     3.5 %    3.1 %
  
  Average shares outstanding        11,624    11,234      3.5 %
  Net income per share               $1.18     $0.98     20.4 %
  Dividends per share              $0.1300   $0.1100     18.2 %
  
   * Percent of sales column is calculated as a % of income before income taxes.
  ** Measurement is not meaningful.
  (Page 2 of 11)
  
                      CULP, INC. FINANCIAL INFORMATION RELEASE
                            CONSOLIDATED BALANCE SHEETS
                          APRIL 27,1997 AND APRIL 28, 1996
  
                               (Amounts in Thousands)
  
                                             Amounts                  Increase
                                            April 27,   April 28,    (Decrease)
                                              1997        1996    Dollars  Percent
                                           ---------   ---------  -------  -------
  Current assets
     Cash and cash investments            $      830       498       332    66.7 %
     Accounts receivable                      56,691    52,038     4,653     8.9 %
     Inventories                              53,463    47,395     6,068    12.8 %
     Other current assets                      5,450     4,191     1,259    30.0 %
                                             -------   -------    ------    ----
             Total current assets            116,434   104,122    12,312    11.8 %
  
  Restricted investments                      11,018     5,250     5,768   109.9 %
  Property, plant & equipment, net            91,231    76,961    14,270    18.5 %
  Goodwill                                    22,262    22,871      (609)   (2.7)%
  Other assets                                 3,007     2,440       567    23.2 %
                                             -------    ------    ------    ----
  
             Total assets                 $ 243,952    211,644    32,308    15.3 %
                                           ========    =======    ======    ====
  
  Current Liabilities
     Current maturities of long-term debt $     100      7,100    (7,000)  (98.6)%
     Accounts payable                        29,903     27,308     2,595     9.5 %
     Accrued expenses                        15,074     12,564     2,510    20.0 %
     Income taxes payable                     1,580        197     1,383   702.0 %
                                             ------     ------     -----   -----
             Total current liabilities       46,657     47,169      (512)   (1.1)%
  
  Long-term debt                             76,541     74,941     1,600     2.1 %
  
  Deferred income taxes                       9,965      8,088     1,877    23.2 %
                                             ------      -----     -----    ----
             Total liabilities              133,163    130,198     2,965     2.3 %
  
  Shareholders' equity                      110,789     81,446    29,343    36.0 %
                                            -------     ------    ------    ----
  
             Total liabilities and
             shareholders' equity         $ 243,952    211,644    32,308    15.3 %
                                            =======    =======    ======    ====
  
  Shares outstanding                         12,609     11,290     1,319    11.7 %
                                            -------     ------     -----    ----
  (Page 3 of 11)
  
                      CULP, INC. FINANCIAL INFORMATION RELEASE
                        CONSOLIDATED STATEMENTS OF CASH FLOWS
                FOR            THE YEARS  ENDED  APRIL 27, 1997 AND APRIL 28, 1996
                               (Amounts in Thousands)
  
                                                             TWELVE MONTHS ENDED
                                                             -------------------
                                                                   Amounts
                                                             April 27,  April 28,
                                                               1997       1996
                                                             ---------  ---------
  Cash flows from operating activities:
    Net income                                           $      13,770     10,980
    Adjustments to reconcile net income to net
      cash provided by operating activities:
        Depreciation                                            12,688     12,348
        Amortization of intangible assets                          810        748
        Provision for deferred income taxes                        966      2,210
        Changes in assets and liabilities:
          Accounts receivable                                   (4,653)    (7,786)
          Inventories                                           (6,068)    (1,624)
          Other current assets                                    (348)      (537)
          Other assets                                            (205)      (103)
          Accounts payable                                       2,586     (1,077)
          Accrued expenses                                       2,510      1,032
          Income taxes payable                                   1,383       (464)
                                                                ------     ------
            Net cash provided by operating activities           23,439     15,727
                                                                ------     ------
  Cash flows from investing activities:
    Capital expenditures                                       (26,958)   (14,385)
    Purchases of restricted investments                         (9,770)    (6,019)
    Purchase of investments to fund deferred compensation
      liability                                                   (563)    (1,286)
    Sale of restricted investments                               4,002      1,564
                                                               -------    -------
            Net cash used in investing activities              (33,289)   (20,126)
                                                               -------    -------
  Cash flows from financing activities:
    Proceeds from issuance of long-term debt                    54,500     19,854
    Principal payments on long-term debt                       (59,900)   (11,555)
    Change in accounts payable-capital expenditures                  9     (3,865)
    Dividends paid                                              (1,513)    (1,236)
    Proceeds from common stock issued                           17,086        306
                                                               -------     ------
            Net cash provided by financing activities           10,182      3,504
                                                               -------     ------
  
  Increase (decrease) in cash and cash investments                 332       (895)
  
  Cash and cash investments at beginning of period                 498      1,393
                                                                ------      -----
  
  Cash and cash investments at end of period             $         830        498
  ======      =====
  (Page 4 of 11)
  
                      CULP, INC. FINANCIAL INFORMATION RELEASE
                                 FINANCIAL ANALYSIS
                                   APRIL 27, 1997
  
                                              FISCAL 96                        FISCAL 97
                                            -----------       ------------------------------------------
                                                 Q4              Q1          Q2          Q3          Q4       LTM
  ----            ----        ----        ----        ----      ---
  INVENTORIES
       Inventory turns                           6.8           6.0         6.6         6.2         6.6
  
  RECEIVABLES
       Days sales in receivables                   46           43          45          47          49
       Percent current & less than 30
         days past due                          99.0%        99.3%       99.9%       99.8%       99.1%
  
  WORKING CAPITAL
       Current ratio                             2.2          2.2         2.1         2.4         2.5
       Working capital turnover                  5.3          5.4         5.4         5.3         5.3
       Working capital                       $56,953      $53,635     $57,230     $60,689     $69,777
       Working capital as a % of sales (4)      13.9%        14.8%       13.6%       15.6%       16.5%
  
  PROPERTY, PLANT & EQUIPMENT
       Depreciation rate                         8.3%         8.3%        8.1%        7.5%        7.5%
       Percent property, plant &
         equipment are depreciated              47.7%        48.2%       48.6%       47.9%       47.4%
       Capital expenditures                  $14,385 (1    $4,475      $5,201      $8,949      $8,333
  
  PROFITABILITY
       Net profit margin                         4.0%         2.4%        3.5%        3.1%        4.6%        3.5%
       Gross profit margin                      18.8%        17.6%       18.2%       17.6%       19.2%       18.2%
       Operating income margin                   7.7%         5.6%        7.1%        6.6%        8.1%        6.9%
       SG & A expenses/net sales                11.1%        12.0%       11.1%       11.0%       11.1%       11.3%
       Return on average total capital          11.2%         5.7%        9.3%        7.5%       11.7%        8.4%
       Return on average equity                 22.7%        10.7%       17.4%       14.1%       20.9%       15.2%
       Earnings per share                      $0.36        $0.20       $0.33       $0.27       $0.39       $1.18
  
  LEVERAGE (3)
       Total liabilities/equity                153.4%       149.9%      152.8%      154.8%      120.2%
       Funded debt/equity                       94.3%        87.3%       85.9%       90.0%       59.2%
       Funded debt/capital employed             48.5%        46.6%       46.2%       47.4%       37.2%
       Funded debt                           $76,791      $72,772     $74,612     $80,588     $65,623
       Funded debt/EBITDA (LTM)                 2.16         1.98        1.97        2.09         1.67
       EBITDA/Interest expense, net (LTM)                                                                      9.0
  
  OTHER
       Book value per share                    $7.21        $7.37       $7.66       $7.89       $8.79
       Employees at quarter end                2,966        3,020       3,098       3,143       3,146
       Sales per employee (annualized)      $140,000     $120,000    $138,000    $125,000    $134,000
       Capital employed (3)                 $158,237     $156,128    $161,447    $170,166    $176,412
       Effective income tax rate                35.5%        37.5%       37.5%       37.5%       33.0%
       EBITDA (2)                            $10,814       $8,003     $10,540      $9,279     $11,582     $39,404
       EBITDA/net sales                         10.6%         8.8%       10.0%        9.5%       11.0%        9.9%
  
    (1) Expenditures for entire year
    (2) Earnings before interest, income taxes, and depreciation & amortization.
    (3) Total  liabilities,  long-term debt,  funded debt and capital employed are
    all net of restricted investments. (4) Working capital for this calculation is
    accounts receivable, inventories and accounts payable.
    (5) LTM represents "Latest Twelve Months"
  (Page 5 of 11)
  
                      CULP, INC. FINANCIAL INFORMATION RELEASE
                       SALES BY PRODUCT CATEGORY/BUSINESS UNIT
     FOR THREE MONTHS AND TWELVE MONTHS ENDED APRIL 27, 1997 AND APRIL 28, 1996
  
                               (Amounts in thousands)
  
                                          THREE MONTHS ENDED (UNAUDIITED)
                              ----------------------------------------------------
                                    Amounts                 Percent of Total Sales
                              -------------------           ----------------------
                              April 27   April 28,  % Over
  Product Category/Business    1997       1996     (Under)      1997       1996
  ----- -------------------   --------   --------  -------      ----       ----
  Upholstery Fabrics
      Culp Textures          $ 23,027     23,400     (1.6)%     21.8 %     22.9 %
      Rossville/Chromatex      20,672     22,318     (7.4)%     19.6 %     21.8 %
                               ------     ------     ----       ----       ----
                               43,699     45,718     (4.4)%     41.4 %     44.8 %
  
      Velvets/Prints           40,980     38,261      7.1 %     38.8 %     37.5 %
                               ------     ------     ----       ----       ----
                               84,679     83,979      0.8 %     80.1 %     82.2 %
  
      Culp Home Fashions       20,999     18,183     15.5 %     19.9 %     17.8 %
                               ------     ------     ----       ----       ----
  
                           * $105,678    102,162      3.4 %    100.0%     100.0 %
                             ========    =======     ====      =====      =====
  
                                             TWELVE MONTHS ENDED
                              ----------------------------------------------------
                                  Amounts                   Percent of Total Sales
                              -------------------           ----------------------
                              April 27   April 28.  %Over
  Product Category/Business   1997       1996      (Under)     1997       1996
  -------------------------   --------   --------  -------     ----       ----
  Upholstery Fabrics
      Culp Textures          $ 88,218     84,384     4.5 %     22.1 %    24.0 %
      Rossville/Chromatex      79,512     74,203     7.2 %     19.9 %    21.1 %
                               ------     ------    ----      -----     -----
                              167,730    158,587     5.8 %     42.1 %    45.1 %
  
      Velvets/Prints          156,467    125,701    24.5 %     39.2 %    35.7 %
                              -------    -------    ----      -----     -----
                              324,197    284,288    14.0 %     81.3 %    80.8 %
  
      Culp Home Fashions       74,682     67,379    10.8 %     18.7 %    19.2 %
                              -------    --------    ----      -----     -----
  
                             $398,879    351,667    13.4 %    100.0%    100.0 %
                             ========    =======    ====      =====     =====
  *U.S.  sales were  $76,517 and  $78,137 for the three  months of fiscal 1997 and
  fiscal 1996,  respectively;  and $297,308 and $274,270 for the twelve  months of
  fiscal 1997 and fiscal 1996, respectively. The percentage decrease in U.S. sales
  was 2.0% for the three months and an increase of 8.4% for the twelve months.
  (Page 6 of 11)
  
                      CULP, INC. FINANCIAL INFORMATION RELEASE
                       INTERNATIONAL SALES BY GEOGRAPHIC AREA
     FOR THREE MONTHS AND TWELVE MONTHS ENDED APRIL 27, 1997 AND APRIL 28, 1996
  
                               (Amounts in thousands)
  
                                        THREE MONTHS ENDED (UNAUDITED)
                                 -------------------------------------------------
                                       Amounts              Percent of Total Sales
                                 -------------------        ----------------------
                                 April 27,  April 28,  %Over
      Geographic Area              1997       1996    (Under)     1997     1996
  -----------------------------  ---------  --------- -------     ----     ----
  North America (Excluding USA)$   6,924     6,421     7.8 %      23.7 %   26.7 %
  Europe                           7,672     5,774    32.9 %      26.3 %   24.0 %
  Middle East                      9,769     5,997    62.9 %      33.5 %   25.0 %
  Far East & Asia                  3,753     4,114    (8.8)%      12.9 %   17.1 %
  South America                      140       621    (77.4%       0.5 %    2.6 %
  All other areas                    903     1,098    (17.7%       3.1 %    4.6 %
                                  ------     -----    -----      -----     -----
  
                               $  29,161    24,025     21.4 %    100.0 %   100.0%
                                 =======    ======     ====      =====     =====
  
                                         TWELVE MONTHS ENDED (UNAUDITED)
                                   -----------------------------------------------
                                   Amounts                  Percent of Total Sales
                                   -------                  ----------------------
                                 April 27, April 28,  %Over
      Geographic Area              1997      1996    (Under)     1997     1996
  -----------------------------  --------- --------- -------     ----     ----
  North America (Excluding USA)$  27,479    23,528    16.8 %     27.1 %   30.4 %
  Europe                          25,245    18,927    33.4 %     24.9 %   24.5 %
  Middle East                     23,505    15,609    50.6 %     23.1 %   20.2 %
  Far East & Asia                 19,646    12,124    62.0 %     19.3 %   15.7 %
  South America                    2,604     2,753    (5.4)%      2.6 %    3.6 %
  All other areas                  3,092     4,456    (30.6%      3.0 %    5.8 %
                                 -------    ------    -----     -----     ----
  
                               $ 101,571    77,397    31.2 %    100.0 %   100.0%
                                 =======    ======    ====      =====     =====
  International  sales,  and the  percentage of total sales,  for each of the last
  seven fiscal years  follows:  fiscal 1991-$  20,295 (12%);  fiscal 1992-$ 34,094
  (18%);  fiscal  1993-$ 40,729  (20%);  fiscal 1994-$ 44,038 (18%);  fiscal 1995-
  $57,971 (19%); fiscal 1996-$ 77,397 (22%); and fiscal 1997-$ 101,571 (25%).
  
  Certain amounts for fiscal year 1996 have been  reclassified to conform with the
  fiscal year 1997 presentation.
  Culp, Inc.
  SALES BY BUSINESS UNIT - TREND ANALYSIS
     1995 vs 1996 vs 1997
  
    (Amounts in thousands)
  
                                         Fiscal 1995                                        Fiscal 1996
                               ----------------------------------------       -------------------------------------------------
                                 Q1       Q2       Q3      Q4     TOTAL          Q1      Q2          Q3        Q4        TOTAL
                               ------   ------   ------  ------   -----       -----     ------     ------    ------      ------
  Product Category/Business Unit
  ------------------------------
  Upholstery Fabrics
      Culp Textures            19,613   22,834   20,940  21,738   85,125      17,584    22,715     20,685    23,400      84,384
      Rossville/Chromatex      15,140   15,758   16,397  16,476   63,765      15,358    17,960     18,567    22,318      74,203
                               ------   ------   ------  ------   ------      ------    ------     ------    ------      ------
                               34,753   38,592   37,337  38,208  148,890      32,942    40,675     39,252    45,718     158,587
  
      Velvets/Prints           20,644   26,439   28,307  31,413  106,803      23,523    32,081     31,836    38,261     125,701
                               55,397   65,031   65,644  69,621  255,693      56,465    72,756     71,088    83,979     284,288
  
  Mattress Ticking
      Culp Home Fashions       10,952   13,414   12,147  15,820   52,333      15,892    17,916     15,388    18,183      67,379
                               ------   ------   ------  ------   ------      ------    ------     ------    ------      ------
  
                               66,349   78,445   77,791  85,441  308,026      72,357    90,672     86,476   102,162     351,667
                               ======   ======   ======  ======  =======      ======    ======     ======   =======     =======
  
                                                     Percent    increase(decrease)from prior year:
                                                     -------------------------------------------
  Product Category/Business Units
  -------------------------------
  Upholstery Fabrics
      Culp Textures              12.4     13.8      6.4   2.9    8.7       (10.3)        (0.5)      (1.2)      7.6        (0.9)
      Rossville/Chromatex       100.0    100.0     14.4  (1.5) 105.4         1.4         14.0       13.2      35.5        16.4
                                -----    -----     ----  ----  -----         ---         ----       ----      ----        ----
                                 99.2     92.3      9.8   1.0   36.1        (5.2)         5.4        5.1      19.7         6.5
  
      Velvets/Prints             (1.2)     7.8     19.4  12.5   10.1        13.9         21.3       12.5      21.8        17.7
                                 ----      ---     ----  ----   ----        ----         ----       ----      ----        ----
                                 44.5     45.8     13.7   5.9   23.9         1.9         11.9        8.3      20.6        11.2
  
  Mattress Ticking
      Culp Home Fashions         32.7     42.8     27.4  37.9   35.4        45.1         33.6       26.7      14.9        28.8
                                 ----     ----     ----  ----   ----        ----         ----       ----      ----        ----
  
                                 42.4     45.3     15.7  10.6   25.7         9.1         15.6       11.2      19.6        14.2
                                 ====     ====     ====  ====   ====         ===         ====       ====      ====        ====
  
     Overall Growth Rate
     -------------------
  
  Internal (without acquistions)  9.9     16.1     15.7   8.8   12.5         6.4         13.0        8.7      19.6        12.3
  External                       32.5     29.2      -     1.8   13.2         2.7          2.6        2.5                   1.9 
                                 ----     ----     ----   ---   ----         ---          ---        ---                   ---
                                 42.4     45.3     15.7  10.6   25.7         9.1         15.6       11.2      19.6        14.2
                                 ====     ====     ====  ====   ====         ===         ====       ====      ====        ====
  -MORE-
  Culp, Inc.
                SALES BY BUSINESS UNIT - TREND ANALYSIS (CONTINUED)
                                1995 vs 1996 vs 1997
  
                               (Amounts in thousands)
  
                                                         Fiscal 1997
                                                         -----------
                                        Q1          Q2           Q3            Q4           TOTAL
                                       -----      ------        ------        ------       -------
  Product Category/Business Unit
  Upholstery Fabrics
      Culp Textures                   20,801      24,001        20,389        23,027         88,218
      Rossville/Chromatex             18,165      21,722        18,953        20,672         79,512
                                      38,966      45,723        39,342        43,699        167,730
  
      Velvets/Prints                  34,867      40,233        40,387        40,980        156,467
                                      73,833      85,956        79,729        84,679        324,197
  
  Mattress Ticking
      Culp Home Fashions              16,696      19,248        17,739        20,999         74,682
  
                                      90,529     105,204        97,468       105,678        398,879
  
  Percent increase(decrease) fro
  Product Category/Business Unit
  
  Upholstery Fabrics
      Culp Textures                  18.3         5.7          (1.4)         (1.6)           4.5
      Rossville/Chromatex            18.3        20.9           2.1          (7.4)           7.2
                                     18.3        12.4           0.2          (4.4)           5.8
  
      Velvets/Prints                 48.2        25.4          26.9           7.1           24.5
                                     30.8        18.1          12.2           0.8           14.0
  
  Mattress Ticking
      Culp Home Fashions              5.1         7.4          15.3          15.5           10.8
  
                                     25.1        16.0          12.7           3.4           13.4
  
     Overall Growth Rate
  
  Internal (without acquistions)     25.1        16.0          12.7           3.4           13.4
  External                                                                                                           
                                     25.1        16.0          12.7           3.4           13.4
  (Page 8 of 11)
  
                      CULP, INC. FINANCIAL INFORMATION RELEASE
                                 FINANCIAL NARRATIVE
   for the three and twelve month periods ended April 27, 1997 and April 28, 1996
  
  INCOME STATEMENT COMMENTS
  
  GENERAL - Net sales  increased 3.4% to $105.7  million and net income  increased
  19.5% to $4.8  million  for the  fourth  quarter,  as  compared  with the fourth
  quarter of last year. This performance marks the eighteenth  consecutive quarter
  of record earnings and the sixteenth  consecutive quarter of record sales (based
  on comparable  year-earlier  periods). The company's net profit margin increased
  to 4.6% from 4.0% for the quarter.  For the twelve months, sales increased 13.4%
  to $398.9 million and net income increased 25.4% to $13.8 million. The company's
  net profit margin  increased to 3.5% from 3.1% for the twelve months.  Also, the
  company  achieved  a return  on  average  shareholder's  equity of 15.2% for the
  latest  twelve  months.  For the last five years,  the  company  has  achieved a
  compound  annual  growth  rate  in net  income  and  net  sales  of 36%  and 16%
  respectively.
  
  The  company  attributes  this  consistent  record to  several  key  competitive
  strengths:
  
  Diverse Global Customer Base - penetrating  other end-use markets in addition to
  U.  S.  residential  furniture,  such  as  bedding,  international,   commercial
  furniture and juvenile  furniture;  sales to these other  markets  accounted for
  approximately 50% of net sales during the fourth quarter;  additionally,  no one
  customer accounted for more than 7% of sales during fiscal 1997;
  
  Design  Innovation  - investing  in the  creative  aspect of our  business - the
  company  has   significantly   increased  the  resources   (both  designers  and
  computer-aided  design  (CAD)  systems)  dedicated  to the  design  and  product
  development areas in each business unit; the company's in-house design staff now
  includes   over  50   people.   Additionally,   the   company   is   building  a
  state-of-the-art  design center in  Burlington,  North  Carolina that will bring
  together most of its design resources in one location;
  
  Vertical  Integration  -  realizing  additional  manufacturing   integration  by
  producing  internally  various  raw  material  components  that  are used in the
  manufacture of its products; and
  
  Ability  to  Integrate   Acquisitions   -  investing  in  selective,   accretive
  acquisitions  in businesses  which we know and  understand  and that  strengthen
  existing marketing positions.
  
  NET SALES - Compared  with the fourth  quarter of last year,  upholstery  fabric
  sales increased 0.8% to $84.7 million and mattress ticking sales increased 15.5%
  to $21.0  million for the quarter (See Sales by Business Unit schedule on Page 5
  and Sales by Business Unit - Trend Analysis on Page 7). The growth in upholstery
  fabric  sales  for  the  fourth   quarter   reflects  the   following   changes:
  Velvets/Prints  - up 7.1%;  Rossville/Chromatex  - down 7.4%;  and Culp Textures
  down 1.6%. Within the  Velvets/Prints  business unit, sales of the company's wet
  printed flock  product line  increased  59.8% versus the fourth  quarter of last
  year. Sales of printed jacquards increased 31.3% versus the same quarter of last
  year. The company's  sales to U.S.  customers  declined in the fourth quarter by
  2.0 % and increased for the full year by 8.4%.
  
  International  sales were up 21.4% for the quarter and 31.2% for the year,  with
  strength in all major  regions.  (See  International  Sales by  Geographic  Area
  schedule on page 6.) All business units reported  gains in  international  sales
  for the year and all business units except Rossville/Chromatex reported gains in
  international sales for the quarter. The company has shipped products to over 50
  countries during fiscal 1997. We are encouraged by the  geographical  balance of
  our  international  customer base. The vast majority of international  sales are
  denominated in U.S. dollars.
  (Page 9 of 11)
  
                      CULP, INC. FINANCIAL INFORMATION RELEASE
                                 FINANCIAL NARRATIVE
   for the three and twelve month periods ended April 27, 1997 and April 28, 1996
  
  GROSS PROFIT - Gross profit  increased of 5.7% for the quarter and 15.9% for the
  year  versus  the same  periods  of last  year.  The  full  year  gain  reflects
  significant  increases for the  Velvets/Prints  and Culp Home Fashions  business
  units,  and slight  increases for  Rossville/Chromatex  and Culp  Textures.  The
  fourth  quarter  results  reflect a very strong gain in Culp Home  Fashions  and
  moderately  lower  results in the three  upholstery  fabric  business  units The
  overall gross profit margin increased to 19.2% for the quarter from 18.8% in the
  same quarter of last year.
  
  S,G&A  EXPENSES - S,G&A expenses were flat as a percentage of sales at 11.1% for
  the fourth quarter and increased slightly to 11.3 % for the year from 11.1 % for
  the prior year. The increase in absolute  dollars is  principally  due to higher
  sales commissions  related to international  sales and investments in additional
  design resources.
  
  INTEREST  EXPENSE - The decrease  for the quarter of 24.6% is  primarily  due to
  lower  average  borrowings  outstanding  , which  resulted  from  the  company's
  secondary  stock offering that was completed early in the fourth quarter of this
  year.  . INTEREST  INCOME - Interest  income is at the same level as last year's
  fourth quarter.
  
  OTHER EXPENSE  (INCOME),  NET - In the fourth  quarter,  other expense  (income)
  increased to $404,000 from $365,000 in the same quarter of last year.
  
  INCOME TAXES - The effective tax rate for the year was 36.0% compared with 36.5%
  for fiscal 1996,  due to the lower tax rate  related to Canadian  income and tax
  benefits related to international sales.
  
  EBITDA - EBITDA for the quarter  increased  7.1% from last year's fourth quarter
  to $11.6 million,  and represented 11.0% of net sales compared with 10.6% of net
  sales last year. For the year,  EBITDA  increased 10.7% from last year to $39.4
  million, and represented 9.9% of net sales versus 10.1% last year.
  
  BALANCE SHEET COMMENTS
  
  WORKING  CAPITAL - Accounts  receivable  increased  8.9% from April 1996,  while
  sales increased 3.4% for the fourth quarter. Day's sales outstanding represented
  49 days,  up from 46 at April 1996.  Accounts  receivable  increased at a faster
  rate than sales because of the  increasing  mix of  international  sales,  which
  carry longer payment terms than U.S. sales. The aging of accounts  receivable at
  April  1997 was  99.1%  current  and less  than 30 days  past  due.  Inventories
  increased 12.8% from April 1996 and inventory turns were 6.6 versus 6.8 for last
  year's fourth quarter.
  (Page 10 of 11)
  
                      CULP, INC. FINANCIAL INFORMATION RELEASE
                                 FINANCIAL NARRATIVE
   for the three and twelve month periods ended April 27, 1997 and April 28, 1996
  
  PROPERTY, PLANT AND EQUIPMENT - The company has maintained a significant program
  of capital  expenditures  designed to expand  capacity to support  sales growth,
  increase  vertical  integration  to lower  product costs and control more of its
  supply  of  raw  materials,  and  enhance  manufacturing   efficiencies  through
  modernization.  For  fiscal  1997,  the  company's  capital  spending  was $27.0
  million. Major projects include the following:
  
  Expansion Projects - ($11.0 million or 40 % of the total)
  
            a) printing  expansion  for the wet printed  flock product line in the
            Velvets/Prints  business unit; this project includes the purchase of a
            facility in  Lumberton,  North  Carolina and the  installation  of new
            printing and finishing  equipment  ($8.9 million is the total project,
            of which $ 6.0 was spent in fiscal 1997).
  
            b) Weaving  expansions  for the dobby and  jacquard  product
            lines in the Rossville/  Chromatex  business unit ($2.3 million); and
  
            c) other projects ($2.7 million)
  
  Vertical Integration - ($ 13.0 million or 48 % of the total)
  
            a) weaving  expansion for jacquard greige goods (narrow
            and  wide-width)  at  the  company's  Rayonese  facility  in
            Canada,  which is part of Culp Home  Fashions  business unit
            ($5.1 million);
  
            b) installation of the company's first flock coating line,  which will
            produce the unprinted  flocked  greige goods for the wet printed flock
            product line ($4.0 million);
  
            c) expansion of yarn extrusion capacity; during the third quarter, the
            company  began an $8.0  million  project to  approximately  double its
            polypropylene  yarn extrusion  capacity over the next two years. About
            20% of the  capacity  is  expected  to be  operational  by June  1997,
            another 40%  throughout  fiscal 1998,  and the balance in early fiscal
            1999 ($1.7  million in fiscal 1997;  $3.2 million in fiscal 1998;  and
            $3.1 million in fiscal 1999);
  
            d) various  other projects ($2.2 million).
  
  Modernization ($3.0 million or 12% of the total)
  
  The company is currently  planning capital spending of approximately $30 million
  during fiscal 1998,  which includes  about $ 8.7 million for expansion  projects
  (29%); $12.7 million for vertical  integration projects (42 %); and $8.6 million
  for modernization  projects (29%). The key vertical integration projects include
  the yarn extrusion expansion, a second flock coating line and additional weaving
  capacity for jacquard greige goods at Rayonese.
  
  Depreciation  expense  for  fiscal  1998 is  estimated  at  approximately  $15.6
  million.
  (Page 11 of 11)
  
                      CULP, INC. FINANCIAL INFORMATION RELEASE
                                 FINANCIAL NARRATIVE
   for the three and twelve month periods ended April 27, 1997 and April 28, 1996
  
  LONG-TERM DEBT - The company's funded  debt-to-capital  ratio was 37.2% at April
  27, 1997, down from 48.5% at April 1996.  Funded debt was $65.6 million at April
  27,  1997,  compared  with $76.8  million  last year end . (Funded  debt  equals
  long-term debt, including current maturities, less restricted investments, which
  represent unspent IRB funds).
  
  During the fourth  quarter,  the company  completed the  refinancing  of its $65
  million term loan and revolving line of credit with a syndicated, five-year $125
  million  unsecured,  multi-currency  credit facility.  Terms of the new facility
  include  reduced  interest  costs,  less  restrictive  financial  convenants and
  significant additional borrowing capacity.
  
  SECONDARY  STOCK OFFERING - On February 4, 1997, the company  completed the sale
  of 1,200,000  shares of newly issued common stock,  and 640,000 shares of common
  stock from certain  non-management  shareholders for $15.00 per share.  Proceeds
  from  the  offering,  net  of  underwriter's  commission  and  company  issuance
  expenses,  were  approximately  $16.3 million.  The key reasons for the offering
  were to fund the company's growth  initiatives,  reduce long term debt,  provide
  the financial basis for possible  acquisitions,  and to a lesser extent, enhance
  trading liquidity of its common stock by increasing the "float".
  
  PHILLIPS ACQUISITION -- On May 1, 1997, the company announced that it has signed
  a Letter of Intent to acquire the  business and certain  assets  relating to the
  upholstery fabric business operating as Philips Weaving Mills,  Phillips Velvets
  Mills,  Phillips Printing and Phillips Mills. Closing of the transaction,  which
  is subject to completion of a definitive  asset  purchase  agreement and certain
  other  conditions  , is  set  forth  in  the  Letter  of  Intent.  The  proposed
  transaction is disclosed in more detail in the company's Form 8-K filing,  dated
  May 1, 1997.