content: --------------------------------------------------------------------------------
  
                                    UNITED STATES
                         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) August 26, 2003
  
                                     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)
                                   (336) 889-5161
                (Registrant's telephone number, including area code)
  
  
  
  
  
            (Former name or former address, if changed since last report)
  
  
  
  
  
  --------------------------------------------------------------------------------
  
  
  
  <PAGE>
  
  
                                        INDEX
                                        -----
  
  
                                                                           Page
                                                                           ----
  Item 7 -  Exhibits                                                         3
  Item 12 - Results of Operations and Financial Condition                    3
  Signature                                                                  4
  Exhibits
  
  
  
  
  
  
  
  
  
  <PAGE>
  
  
  
  
  Item 7 -- Exhibits
  
  99(a) News Release dated August 26, 2003
  
  99(b) Financial Information Release dated August 26, 2003
  
  Item 12 -- Results of Operations and Financial Condition
  
  On August 26,  2003,  Culp,  Inc.  (the  "Registrant")  issued a news release to
  announce its financial  results for the quarter  ended August 3, 2003.  The news
  release is attached hereto as Exhibit 99(a).
  
  Also on August 26, 2003, the Registrant released a Financial Information Release
  containing   additional   financial   information  and  disclosures   about  the
  Registrant's  first quarter ended August 3, 2003. The news release and financial
  information  release  contain  disclosures  about  free cash  flow,  a  non-GAAP
  performance  measure,  that management  believes provides useful  information to
  investors  because it measures the company's  available  cash flow for potential
  debt repayment,  stock  repurchases and additions to cash, cash  equivalents and
  short-term investments.
  
  
  Forward  Looking  Information.  This  Report and the  exhibits  attached  hereto
  contain  statements that may be deemed  "forward-looking  statements" within the
  meaning  of the  federal  securities  laws,  including  the  Private  Securities
  Litigation  Reform Act of 1995  (Section 27A  of the  Securities Act of 1933 and
  Section 27A of the  Securities  and Exchange Act of 1934).  Such  statements are
  inherently  subject  to  risks  and  uncertainties.   Further,  forward  looking
  statements  are  intended  to speak  only as of the date on which they are made.
  Forward-looking statements are statements that include projections, expectations
  or beliefs  about future  events or results or otherwise  are not  statements of
  historical  fact.  Such  statements  are often but not always  characterized  by
  qualifying words such as "expect,"  "believe,"  "estimate," "plan" and "project"
  and their  derivatives,  and  include but are not  limited to  statements  about
  expectations for the company's future sales, gross profit margins, SG&A or other
  expenses,  and earnings,  as well as any statements regarding the company's view
  of estimates of the  company's  future  results by analysts.  Factors that could
  influence the matters discussed in such statements  include the level of housing
  starts and sales of existing homes,  consumer  confidence,  trends in disposable
  income, and general economic conditions.  Decreases in these economic indicators
  could have a negative effect on the company's business and prospects.  Likewise,
  increases in interest rates,  particularly home mortgage rates, and increases in
  consumer  debt or the  general  rate of  inflation,  could  affect  the  company
  adversely.  In  addition,  strengthening  of  the U.  S.  dollar  against  other
  currencies  could make the company's  products less  competitive on the basis of
  price in markets  outside  the  United  States.  Also,  economic  and  political
  instability  in  international  areas could affect the  company's  operations or
  sources of goods in those areas, as well as demand for the company's products in
  international  markets.  Finally,  unanticipated  delays  or costs in  executing
  restructuring actions could cause the cumulative effect of restructuring actions
  to fail to meet the objectives set forth by management. Other factors that could
  affect the matters  discussed in forward looking  statements are included in the
  company's periodic reports filed with the Securities and Exchange Commission.
  
  
  <PAGE>
  
  
  
  
  
                                             SIGNATURE
  
  
  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
                                              -----------------
                                              Executive Vice President and
                                              Chief Financial Officer
  
  
  
  
  
  Dated:  August 26, 2003
          ---------------
  <PAGE>
  Exhibit 99(a)
  
                                   NEWS RELEASE
  
  Investor Contact:  Kathy J. Hardy       Media Contact:  Kenneth M. Ludwig
                     Corporate Secretary                  Senior Vice President,
                     336-888-6209                         Human Resources
                                                          336-889-5161
  
  
                 CULP ANNOUNCES FIRST QUARTER FISCAL 2004 RESULTS
  
  
  HIGH POINT,  N.C.  (August 26, 2003) - Culp, Inc.  (NYSE:  CFI) today reported
  financial  and  operating  results for the first  quarter of fiscal 2004 ended
  August 3, 2003.  The highlights include:
  
  o     Net loss of $0.04 per share  diluted,  a smaller loss than  management's
        projection  earlier  in the  quarter of a net loss of $0.06 to $0.13 per
        share diluted
  
  o     Gain in mattress  ticking  sales of 4.6 percent,  representing  the best
        quarterly sales increase in over a year for this segment
  
  o     Cash,  cash  equivalents and short-term  investments  increased to $30.1
        million from $24.4  million at the end of fiscal 2003,  reflecting  free
        cash flow of $5.7 million
  
  o     Earnings  expectation  for the  second  quarter  of  fiscal  2004 is net
        income of $0.12 to $0.19 per diluted share.
  
  For the three  months  ended  August 3, 2003,  net sales  were  $73.7  million
  compared  with $86.0  million a year ago, a 14.3  percent  decline.  The first
  quarter of fiscal 2004  included 14 weeks versus 13 weeks for the same quarter
  of fiscal  2003.  The company  reported a net loss of  $411,000,  or $0.04 per
  diluted  share,  for the first  quarter of fiscal  2004  compared  with income
  before the cumulative  effect of accounting  change of $915,000,  or $0.08 per
  diluted  share,   for  the  first  quarter  of  fiscal  2003.   Including  the
  cumulative  effect of accounting  change,  the company reported a net loss for
  the  first  quarter  of fiscal  2003 of $23.2  million,  or $2.04 per  diluted
  share.  In the  first  quarter  of  2003,  the  company  recorded  a  non-cash
  goodwill  impairment charge,  net of income taxes, of $24.2 million,  or $2.12
  per diluted share.
  
  "The first  quarter of our fiscal year is  typically  the  slowest  period for
  Culp and the furniture  industry due to scheduled  plant vacation  shutdowns,"
  commented  Robert G.  Culp,  III,  chairman  of the board and chief  executive
  officer of Culp,  Inc.  "The  seasonal  slowdown,  combined with the continued
  significant  weakness in consumer demand for furniture  throughout the summer,
  made this  quarter's  sales  particularly  challenging.  While we  reported  a
  modest loss, we are  encouraged  that the overall  results were better than we
  had originally projected at the beginning of the quarter.
  
  
  <PAGE>
  
  
  CFI Announces First Quarter 2004 Results
  Page 3
  August 26, 2003
  
                                      -MORE-
  
  "We are particularly  pleased with the positive trends in the mattress ticking
  segment as the bedding  industry  has  enjoyed a modest  rebound in sales over
  the summer  months,"  said Culp.  "Mattress  ticking  sales were $27.2 million
  for the first  quarter of fiscal 2004, a 4.6 percent  increase  compared  with
  $26.0 million in the first  quarter of fiscal 2003.  These  favorable  results
  are  encouraging  as demand in the bedding  industry has generally been one of
  the first categories in the home furnishings  industry to pick up after a down
  cycle.  In the  upholstery  fabrics  segment,  net sales declined 22.5 percent
  for the first  quarter of fiscal  2004  compared  with the same  period a year
  ago.  The decline in sales in this  segment was in line with our  expectations
  and  reflects  very soft demand by  furniture  retailers.  Additional  factors
  likely  affecting  the  demand  for  upholstery  fabrics  are  the  increasing
  consumer preference for leather furniture and an increase in imported fabrics.
  
  "One of our key  financial  objectives  for  fiscal  2004  is to  continue  to
  capitalize  on the  strength of our balance  sheet,"  added Culp.  "We believe
  that having a solid financial position in this difficult business  environment
  provides  Culp with a distinct  competitive  advantage.  As of August 3, 2003,
  our  balance  sheet  reflects  $30.1 million  in cash,  cash  equivalents  and
  short-term  investments compared with $24.4 million at the end of fiscal 2003,
  reflecting  free cash  flow of $5.7  million  during  the  first  quarter.  In
  addition,  with the  considerable  progress  we made in fiscal 2003 in further
  reducing  our  debt,  we now  have  $76.6  million  in  long-term  debt  and a
  debt-to-capital ratio of 44.5 percent compared with 49.9 percent a year ago."
  
  Commenting on the business  outlook,  Culp added,  "While the furniture retail
  environment  has not  demonstrated  any signs of a  sustainable  recovery,  we
  continue  to  believe we will see a modest  pick up in sales this fall,  as is
  typical  in  the  furniture   industry.   Overall,   we  expect  the  drop  in
  consolidated  sales for the second  quarter to be  considerably  less than the
  first quarter  decline of 14.3 percent.  While mattress  ticking segment sales
  are  expected  to be  consistent  with  second  quarter  sales  of last  year,
  upholstery  fabric segment sales are expected to decrease  substantially  less
  than the first  quarter  decline of 22.5  percent.  With the  softness  in the
  furniture  industry and the lack of visibility into the quarter to date, it is
  difficult to predict the company's  profitability  level for the next quarter.
  However,  at this  time,  we expect to report net income in the range of $0.12
  to $0.19 per share diluted,  with the actual results depending  primarily upon
  the level of demand  throughout the quarter.  We remain confident that we have
  taken the actions  necessary to  right-size  the company and position  Culp to
  benefit from  opportunities  that we believe will exist after this challenging
  business cycle ends."
  
  
  <PAGE>
  
                                      -END-
  
  Culp, Inc. is one of the world's largest  marketers of upholstery  fabrics for
  furniture  and is a leading  marketer of mattress  ticking  for  bedding.  The
  company's  fabrics are used  principally in the production of residential  and
  commercial furniture and bedding products.
  
  This  release  contains   statements  that  may  be  deemed   "forward-looking
  statements" within the meaning of the federal  securities laws,  including the
  Private  Securities   Litigation  Reform  Act  of  1995  (Section 27A  of  the
  Securities  Act of 1933 and Section 27A of the  Securities and Exchange Act of
  1934).  Such  statements  are inherently  subject to risks and  uncertainties.
  Further,  forward-looking statements are intended to speak only as of the date
  on  which  they are  made.  Forward-looking  statements  are  statements  that
  include  projections,  expectations  or beliefs about future events or results
  or otherwise are not  statements  of  historical  fact.  Such  statements  are
  often but not always  characterized  by  qualifying  words  such as  "expect,"
  "believe,"  "estimate,"  "plan"  and  "project"  and  their  derivatives,  and
  include  but  are  not  limited  to  statements  about  expectations  for  the
  company's  future sales,  gross profit margins,  SG&A or other  expenses,  and
  earnings,  as well as any statements regarding the company's view of estimates
  of the  company's  future  results by analysts.  Factors that could  influence
  the matters  discussed in such statements  include the level of housing starts
  and  sales of  existing  homes,  consumer  confidence,  trends  in  disposable
  income,  and  general  economic   conditions.   Decreases  in  these  economic
  indicators  could  have a  negative  effect  on  the  company's  business  and
  prospects.  Likewise,  increases in interest rates, particularly home mortgage
  rates, and increases in consumer debt or the general rate of inflation,  could
  affect the company  adversely.  In addition,  strengthening of the U.S. dollar
  against other  currencies  could make the company's  products less competitive
  on the basis of price in markets  outside the United  States.  Also,  economic
  and political  instability in  international  areas could affect the company's
  operations  or  sources  of goods in those  areas,  as well as demand  for the
  company's products in international  markets.  Finally,  unanticipated  delays
  or costs in executing  restructuring actions could cause the cumulative effect
  of  restructuring  actions  to  fail to  meet  the  objectives  set  forth  by
  management.   Other  factors  that  could  affect  the  matters  discussed  in
  forward-looking  statements  are included in the  company's  periodic  reports
  filed with the Securities and Exchange Commission.
  
  
  <PAGE>
  
  
                                    CULP, INC.
                           Condensed Financial Highlights
  
                                                          Three Months Ended
                                                       -----------------------
                                                        August 3,      July 28,
                                                          2003           2002
                                                       -----------   -----------
  Net sales                                            $73,676,000   $86,008,000
                                                       ===========   ===========
  
  Income (loss) before cumulative effect of
     accounting change                                 $  (411,000) $    915,000
  Cumulative effect of accounting change, net
     of income taxes                                            -0-  (24,151,000)
                                                       -----------  ------------
  Net loss                                             $  (411,000) $(23,236,000)
                                                       ===========  ============
  
  Basic and diluted income (loss) per share:
    Income (loss) before cumulative effect of
      accounting change                                $     (0.04) $       0.08
    Cumulative effect of accounting change                    0.00         (2.12)
                                                       -----------  ------------
    Net loss                                           $     (0.04) $      (2.04)
                                                       ===========  ============
  
  Average shares outstanding:
    Basic                                               11,515,000    11,383,000
    Diluted                                             11,515,000    11,765,000
  
  Reconciliation of Net Cash Provided by Operating Activities to Free Cash Flow
  
                                                         August 3,     July 28,
                                                           2003          2002
                                                        ----------   -----------
  Net cash provided by operating activities            $ 7,888,000  $  5,428,000
  Capital expenditures                                  (1,875,000)   (1,109,000)
  Payments on vendor-financed capital expenditures        (287,000)     (244,000)
                                                        ----------   -----------
  Free cash flow                                       $ 5,726,000  $  4,075,000
                                                        ==========   ===========
  
  
  
  
  <PAGE>
  Exhibit 99(b)
                      CULP, INC. FINANCIAL INFORMATION RELEASE
                      CONSOLIDATED STATEMENTS OF INCOME (LOSS)
             FOR THE THREE MONTHS ENDED AUGUST 3, 2003 AND JULY 28, 2002
  
                  (Amounts in Thousands, Except for Per Share Data)
  
  <TABLE>
  <CAPTION>
                                                                                 THREE MONTHS ENDED (UNAUDITED)
                                                      --------------------------------------------------------------------------------
  
                                                                Amounts                                      Percent of Sales
                                                      ----------------------------                     -------------------------------
                                                       August 3,      July 28,          % Over
                                                         2003           2002            (Under)           2004             2003
                                                      -----------   ------------   ---------------   --------------   -------------
  <S>                                             <C>                   <C>           <C>               <C>             <C>
  Net sales                                        $      73,676         86,008        (14.3) %          100.0 %         100.0 %
  Cost of sales                                           62,103         72,154        (13.9) %           84.3 %          83.9 %
                                                      -----------   ------------   --------------    -------------    -------------
       Gross profit                                       11,573         13,854        (16.5) %           15.7 %          16.1 %
  
  Selling, general and
    administrative expenses                               10,605         10,437          1.6  %           14.4 %          12.1 %
                                                      -----------   ------------   --------------    -------------    -------------
       Income from operations                                968          3,417        (71.7) %            1.3 %           4.0 %
  
  Interest expense                                         1,497          1,903        (21.3) %            2.0 %           2.2 %
  Interest income                                           (122)          (150)       (18.7) %           (0.2)%          (0.2)%
  Other expense                                              245            211         16.1  %            0.3 %           0.2 %
                                                      -----------   ------------   --------------    -------------    -------------
       Income (loss) before income taxes                    (652)         1,453       (144.9) %           (0.9)%           1.7 %
  Income taxes *                                            (241)           538       (144.8) %           37.0 %          37.0 %
                                                      -----------   ------------   --------------    -------------    -------------
  Income (loss) before cumulative effect of
    accounting change                                       (411)           915       (144.9) %           (0.6)%           1.1 %
  
  
  Cumulative effect of accounting change,
    net of income taxes                                        0        (24,151)
                                                      -----------   ------------
  
       Net loss                                    $        (411)       (23,236)
                                                      ===========   ============
  
  
  Basic income (loss) per share:
       Income (loss) before cumulative effect of
         accounting change                         $       (0.04)          0.08       (144.4) %
       Cumulative effect of accounting change               0.00          (2.12)       100.0  %
                                                      -----------   ------------   -----------
       Net loss                                    $       (0.04)         (2.04)        98.3  %
                                                      ===========   ============   ===========
  
  Diluted income (loss) per share:
       Income (loss) before cumulative effect of
         accounting change                         $       (0.04)          0.08       (145.9) %
       Cumulative effect of accounting change               0.00          (2.12)       100.0  %
                                                      -----------   ------------   -----------
       Net loss                                    $       (0.04)         (2.04)        98.3  %
                                                      ===========   ============   ===========
  
  Average shares outstanding                              11,515         11,383          1.2  %
  Average shares outstanding, assuming dilution           11,515         11,765         (2.1) %
  </TABLE>
  
  
  * Percent of sales column for income taxes is calculated as a % of income (loss)
  before income taxes.
  
  
  <PAGE>
                      CULP, INC. FINANCIAL INFORMATION RELEASE
                             CONSOLIDATED BALANCE SHEETS
                          AUGUST 3, 2003 AND JULY 28, 2002
                                      Unaudited
                               (Amounts in Thousands)
  <TABLE>
  <CAPTION>
  
                                                                     Amounts                    Increase
                                                           --------------------------          (Decrease)
                                                       August 3,        July 28,      ------------------------------    * April 27,
                                                         2003             2002         Dollars       Percent              2003
                                                     --------------    -----------   ------------   --------------   ---------------
  <S>                                             <C>                    <C>           <C>            <C>                  <C>
  Current assets
       Cash and cash equivalents                  $         15,094         25,071        (9,977)        (39.8) %             14,355
       Short-term investments                               15,014              0        15,014         100.0  %             10,043
       Accounts receivable                                  24,227         34,719       (10,492)        (30.2) %             32,259
       Inventories                                          49,275         59,721       (10,446)        (17.5) %             49,552
       Deferred income taxes                                12,303          9,447         2,856          30.2  %             12,303
       Other current assets                                  4,001          4,251          (250)         (5.9) %              3,204
                                                     --------------    -----------   ------------   --------------   ---------------
                     Total current assets                  119,914        133,209       (13,295)        (10.0) %            121,716
  
  Property, plant & equipment, net                          83,299         89,201        (5,902)         (6.6) %             84,962
  Goodwill                                                   9,240          9,503          (263)         (2.8) %              9,240
  Other assets                                               1,934          4,046        (2,112)        (52.2) %              2,235
                                                     --------------    -----------   ------------   --------------   ---------------
  
                     Total assets                 $        214,387        235,959       (21,572)         (9.1) %            218,153
                                                     ==============    ===========   ============   ==============   ===============
  
  
  
  Current liabilities
       Current maturities of long-term debt       $            517            455            62          13.6  %                500
       Accounts payable                                     18,648         23,678        (5,030)        (21.2) %             19,874
       Accrued expenses                                     12,856         13,375          (519)         (3.9) %             14,071
       Accrued restructuring                                 7,141          1,864         5,277         283.1  %              7,743
       Income taxes payable                                      0              0             0         100.0  %                349
                                                     --------------    -----------   ------------   --------------   ---------------
                     Total current liabilities              39,162         39,372          (210)         (0.5) %             42,537
  
  Long-term debt                                            76,034         96,078       (20,044)        (20.9) %             76,000
  
  Deferred income taxes                                      3,851          3,502           349          10.0  %              3,851
                                                     --------------    -----------   ------------   --------------   ---------------
                     Total liabilities                     119,047        138,952       (19,905)        (14.3) %            122,388
  
  Shareholders' equity                                      95,340         97,007        (1,667)         (1.7) %             95,765
                                                     --------------    -----------   ------------   --------------   ---------------
  
                     Total liabilities and
                     shareholders' equity         $        214,387        235,959       (21,572)         (9.1) %            218,153
                                                     ==============    ===========   ============   ==============   ===============
  
  Shares outstanding                                        11,515         11,483            32           0.3  %             11,515
                                                     ==============    ===========   ============   ==============   ===============
  
  *Derived from audited financial statements
  </TABLE>
  
  
  <PAGE>
  
                      CULP, INC. FINANCIAL INFORMATION RELEASE
                        CONSOLIDATED STATEMENTS OF CASH FLOWS
             FOR THE THREE MONTHS ENDED AUGUST 3, 2003 AND JULY 28, 2002
                                      Unaudited
                               (Amounts in Thousands)
  <TABLE>
  <CAPTION>
                                                                                              THREE MONTHS ENDED
                                                                                         ------------------------------
                                                                                                    Amounts
                                                                                         ------------------------------
                                                                                          August 3,         July 28,
                                                                                             2003             2002
                                                                                         -------------    -------------
  <S>                                                                                  <C>                   <C>
  Cash flows from operating activities:
         Net loss                                                                      $         (411)         (23,236)
         Adjustments to reconcile net loss to net cash
            provided by operating activities:
                Cumulative effect of accounting change, net of income taxes                         0           24,151
                Depreciation                                                                    3,444            3,641
                Amortization of other assets                                                       45              159
                Stock-based compensation                                                           53               52
                Changes in assets and liabilities:
                    Accounts receivable                                                         8,032            8,647
                    Inventories                                                                   277           (1,822)
                    Other current assets                                                         (797)            (114)
                    Other assets                                                                  256              (18)
                    Accounts payable                                                             (845)          (2,366)
                    Accrued expenses                                                           (1,215)          (3,085)
                    Accrued restructuring expenses                                               (602)            (581)
                    Income taxes payable                                                         (349)               0
                                                                                         -------------    -------------
                       Net cash provided by operating activities                                7,888            5,428
                                                                                         -------------    -------------
  
  Cash flows used in investing activities:
         Capital expenditures                                                                  (1,875)          (1,109)
         Purchases of short-term investments                                                   (5,038)               0
                                                                                         -------------    -------------
                       Net cash used in investing activities                                   (6,913)          (1,109)
                                                                                         -------------    -------------
  
  Cash flows used in financing activities:
         Payments on vendor-financed capital expenditures                                        (287)            (244)
         Proceeds from issuance of long-term debt                                                  51                0
         Principal payments of long-term debt                                                       0          (11,951)
         Proceeds from common stock issued                                                          0              954
                                                                                         -------------    -------------
                       Net cash used in financing activities                                     (236)         (11,241)
                                                                                         -------------    -------------
  
  Increase (decrease) in cash and cash equivalents                                                739           (6,922)
  
  Cash and cash equivalents at beginning of period                                             14,355           31,993
                                                                                         -------------    -------------
  
  Cash and cash equivalents at end of period                                          $        15,094           25,071
                                                                                         =============    =============
  
  
  
  Free Cash Flow (1)                                                                  $         5,726            4,075
                                                                                         =============    =============
  
  
  ---------------------------------------------------------------------------------------------------------------------
  
  (1)  Free Cash Flow reconciliation is as follows:                                        1st QTR            1st QTR
                                                                                           FY 2004            FY 2003
                                                                                        -------------     -------------
  A)     Net cash provided by operating activities                                           7,888             5,428
  B)     Minus:  Capital Expenditures                                                       (1,875)           (1,109)
  C)     Minus:  Payments on vendor-financed capital expenditures                             (287)             (244)
                                                                                        -------------     -------------
                                                                                             5,726             4,075
                                                                                        =============     =============
  
  ---------------------------------------------------------------------------------------------------------------------
  </TABLE>
  
  <PAGE>
  
                      CULP, INC. FINANCIAL INFORMATION RELEASE
                                 FINANCIAL ANALYSIS
                                   AUGUST 3, 2003
  <TABLE>
  <CAPTION>
  
                                            FISCAL 03                          FISCAL 04
                                         ----------------    --------------------------------------------
                                               Q1                   Q1        Q2        Q3      Q4
                                         ----------------    --------------------------------------------
  <S>                                       <C>                <C>
  INVENTORIES
     Inventory turns                             4.9                 5.0
  
  RECEIVABLES
     Days sales in receivables                    34                  32
  
  WORKING CAPITAL
     Current ratio                               3.4                 3.1
     Operating working capital turnover (1)      4.7                 5.1
     Operating working capital (1)           $70,762             $54,854
  
  PROPERTY, PLANT & EQUIPMENT
     Depreciation rate                          6.4%                6.2%
     Percent property, plant &
       equipment are depreciated               60.6%               62.3%
     Capital expenditures                     $4,729 (2)          $1,781
  
  LEVERAGE
     Total liabilities/equity                 143.2%              124.7%
     Long-term debt/equity                     99.5%               80.3%
     Long-term debt/capital employed           49.9%               44.5%
     Long-term debt                          $96,533             $76,551
  
  OTHER
     Book value per share                      $8.45               $8.28
     Employees at quarter end                  2,900               2,383
     Sales per employee (annualized)        $116,163            $121,628
     Capital employed                       $193,540            $171,891
  
    (1) Working capital for this calculation is accounts receivable, inventories and accounts payable
    (2) Expenditures for entire year
  
  </TABLE>
  <PAGE>
  
                      CULP, INC. FINANCIAL INFORMATION RELEASE
                      SALES / GROSS PROFIT BY SEGMENT/DIVISION
             FOR THE THREE MONTHS ENDED AUGUST 3, 2003 AND JULY 28, 2002
  
  
                                                   (Amounts in thousands)
  <TABLE>
  <CAPTION>
  
                                                                   THREE MONTHS ENDED (UNAUDITED)
                                               -----------------------------------------------------------------------
  
                                                       Amounts                                 Percent of Total Sales
                                               ----------------------------                  -------------------------
                                                 August 03,        July 28,        % Over
  Segment/Division Sales                            2003            2002          (Under)         2004           2003
  -----------------------------------------    --------------   -----------    -----------   -----------   -----------
  <S>                                              <C>            <C>         <C>            <C>           <C>
  Upholstery Fabrics
      Culp Decorative Fabrics               $         28,008        34,771      (19.5) %        38.0 %        40.4 %
      Culp Velvets/Prints                             16,839        23,107      (27.1) %        22.9 %        26.9 %
      Culp Yarn                                        1,609         2,099      (23.3) %         2.2 %         2.4 %
                                               --------------   -----------    -----------   -----------   -----------
                                                      46,456        59,977      (22.5) %        63.1 %        69.7 %
  Mattress Ticking
       Culp Home Fashions                             27,220        26,031        4.6  %        36.9 %        30.3 %
                                               --------------   -----------    -----------   -----------   -----------
  
                                         *  $         73,676        86,008      (14.3) %       100.0 %       100.0 %
                                               ==============   ===========    ===========   ===========   ===========
  
  
  
  Segment Gross Profit                                                                           Gross Profit Margin
  -----------------------------------------                                                  -------------------------
  
  Upholstery Fabrics                        $          5,501         8,000      (31.2) %        11.8 %        13.3 %
  
  Mattress Ticking                                     6,072         5,854        3.7  %        22.3 %        22.5 %
                                               --------------   -----------    -----------   -----------   -----------
  
  Gross Profit                              $         11,573        13,854      (16.5) %        15.7 %        16.1 %
                                               ==============   ===========    ===========   ===========   ===========
  
  </TABLE>
  
  * U.S.  sales were $65,482 and $75,585 for the first  quarter of fiscal 2004 and
  fiscal 2003,  respectively;  The percentage decrease in U.S. sales was 13.4% for
  the first quarter
  
  <PAGE>
  
                      CULP, INC. FINANCIAL INFORMATION RELEASE
                       INTERNATIONAL SALES BY GEOGRAPHIC AREA
            FOR THE THREE MONTHS ENDED AUGUST 3, 2003 AND JULY 28, 2002
  <TABLE>
  <CAPTION>
  
  
                                   (Amounts in thousands)
  
                                               THREE MONTHS ENDED (UNAUDITED)
                                         -----------------------------------------
                                                   Amounts
                                         ----------------------------
                                           August 3,      July 28,       % Over
                Geographic Area              2003           2002        (Under)
  ------------------------------------   --------------  ------------  -----------
  <S>                                 <C>                     <C>      <C>
  North America (Excluding USA)       $          6,372         7,550    (15.6) %
  Far East & Asia                                1,395         1,435     (2.8) %
  All other areas                                  427         1,438    (70.3) %
                                         --------------  ------------  -----------
  
                                      $          8,194        10,423    (21.4) %
                                         ==============  ============  ===========
  
               Percent of total sales            11.1%         12.1%
  
  
  
  
  
  </TABLE>
  
  
  <PAGE>
  
                      CULP, INC. FINANCIAL INFORMATION RELEASE
                                 FINANCIAL NARRATIVE
             for the three months ended August 3, 2003 and July 28, 2002
  
  
  
  
  OVERVIEW
  
  Highlights for the first quarter ended August 3, 2003, include:
  
    o  Net  loss of $0.04  per  share  diluted,  which is a  smaller  loss  than
       management's  projection  earlier in the  quarter of a net loss of $0.06 to
       $0.13 per diluted share
    o  Gain in mattress  ticking sales of 4.6%,  representing the best quarterly
       sales increase in over a year for this segment
    o  Cash,  cash  equivalents  and short-term  investments  increased to $30.1
       million from $24.4 million at the end of fiscal 2003,  reflecting free cash
       flow of $5.7 million
    o  Earnings  expectation for the second quarter of fiscal 2004 is net income
       of $0.12 to $0.19 per diluted share
  
  
       GENERAL -- For the first quarter of fiscal 2004, net sales  decreased 14.3%
  to $73.7 million; and the company reported a net loss of $411,000,  or $0.04 per
  share diluted,  compared with income before the cumulative  effect of accounting
  change of $915,000,  or $0.08 per share diluted,  in the first quarter of fiscal
  2003. Including the cumulative effect of accounting change, the company reported
  a net loss for the first quarter of fiscal 2003 of $23.2  million,  or $2.04 per
  share.  In the first quarter of 2003, the company  recorded a non-cash  goodwill
  impairment  charge,  net of income taxes,  of $24.2 million,  or $2.12 per share
  diluted.  The first quarter of fiscal 2004 included 14 weeks versus 13 weeks for
  the same quarter of fiscal 2003.
  
  INCOME STATEMENT COMMENTS
  
       UPHOLSTERY FABRIC SEGMENT (See page 5 - Sales and Gross Profit by Segment)
  
       NET SALES --  Upholstery  fabric sales for the first quarter of fiscal 2004
  decreased  22.5% to $46.5 million.  The decline of $13.5 million is attributable
  to  substantial  reduced  demand from  customers  due  primarily  to the overall
  general  weakness in consumer demand for furniture,  which continued  throughout
  the first quarter of fiscal 2004.  Additional  factors that are likely affecting
  demand for  upholstery  fabrics are (1) an increase in consumer  preference  for
  leather  furniture,  and (2) an  increase in  imported  fabrics,  both in "piece
  goods" and "cut and sewn kits."
  
  Upholstery  fabric yards sold during the first quarter were 10.8 million  versus
  14.4 million in the first  quarter of fiscal  2003, a decline of 25.0%.  Average
  selling  price was $4.13 for the  first  quarter  compared  to $4.02 in the same
  quarter of last year, an increase of 2.7%.  This increase was due principally to
  the CDF division.  Yarn sales were $1.6 million, down from $2.1 million in first
  quarter of fiscal 2003.
  
       GROSS PROFIT -- Gross profit for the first  quarter of fiscal 2004 was $5.5
  million,  or 11.8%,  versus $8.0 million,  or 13.3% for the same quarter of last
  year.  While gross profit in the CDF division was lower than the previous  year,
  the  majority  of the  decline  was  attributable  to the  CVP  division,  which
  experienced a significant decline in the sale of velvet fabrics.
  
  
       MATTRESS TICKING SEGMENT (See page 5 - Sales and Gross Profit by Segment)
  
       NET SALES -- Mattress  ticking  sales for the first  quarter of fiscal 2004
  increased  4.6% to $27.2  million.  This is the best  quarter  in terms of sales
  increases in over a year and reflects an improving bedding industry environment.
  
  Mattress  ticking  yards sold during the first  quarter of fiscal 2004 were 10.5
  million,  down less than 2% from 10.7  million in the same quarter of last year.
  The average selling price was $2.57 for the first quarter, compared to $2.44 the
  same quarter last year, an increase of 5.3%.  This  increase in average  selling
  price reflects (a) a greater mix of woven ticking versus printed  ticking,  and
  (b) a  growing,  but  small,  portion of the  overall  business  that is knitted
  ticking.
  
       GROSS PROFIT -- For the first quarter of fiscal 2004, the mattress  ticking
  segment  reported  gross  profit  dollars and margins of $6.1 million and 22.3%,
  respectively,  compared  with $5.9 million and 22.5% for the same period of last
  year.
  
       CHINA INITATIVE -- The company's  previously  announced initiative in China
  is moving  forward on  schedule.  The company  has  received  all the  necessary
  business  license  approvals,  and  the  general  manager,  which  relocated  to
  Shanghai,  China  in May,  has set up the  China  facility  for all the  related
  administrative  functions.  As  planned,  the  company  will  install  finishing
  equipment and begin fabric inspection, testing and distribution functions at the
  China  facility  during  the  second  fiscal  quarter  of 2004.  Limited  fabric
  finishing operations are anticipated to begin during the third fiscal quarter of
  2004. Upon  completion,  the company believes the China platform will allow Culp
  to deliver value to customers by linking design expertise,  finishing technology
  and U.S. quality standards with low-cost fabric manufacturers in China.
  
       SG&A  EXPENSES  -- SG&A  expenses of $10.6  million  for the first  quarter
  increased  $168,000,  or 1.6%,  from the prior year amount.  As a percent of net
  sales,  SG&A  expenses  increased  to 14.4% from 12.1% the previous  year.  SG&A
  expenses in the first  quarter  included  higher  professional  fees offset by a
  decrease in sales costs due to lower sales volume and lower bad debt expense.
  
       INTEREST  EXPENSE AND  INTEREST  INCOME --  Interest  expense for the first
  quarter  declined to $1.5 million  from $1.9  million the  previous  year due to
  significantly  lower  borrowings  outstanding.   Interest  income  decreased  to
  $122,000 from $150,000 due  principally  to lower  interest rates earned on cash
  balances  during the first quarter of fiscal 2004 as compared to the same period
  a year ago.
  
       OTHER EXPENSE -- Other expense for the first quarter of fiscal 2004 totaled
  $245,000  compared with $211,000 in the prior year. The increase was principally
  due to the impact of a higher  Canadian  exchange  rate,  mostly offset by lower
  debt issue costs.
  
       INCOME TAXES -- The effective tax rate for the first quarter of fiscal 2004
  and fiscal 2003 was 37%.
  
  BALANCE SHEET COMMENTS
  
       CASH, CASH EQUIVALENTS AND SHORT-TERM  INVESTMENTS - Cash, cash equivalents
  and short-term  investments as of August 3, 2003 increased to $30.1 million from
  $24.4 at the end of fiscal 2003,  reflecting  free cash flow of $5.7 million for
  the first quarter of fiscal 2004 (see discussion of free cash flow below).
  
       WORKING CAPITAL -- Accounts receivable as of August 3, 2003 decreased 30.2%
  from the  year-earlier  level,  due to  lower  sales  volumes,  the  decline  in
  international  sales and related  longer  credit  terms,  repayment  of past due
  balances,  and an increase in the number of customers  taking the cash  discount
  for shorter payment terms. Days sales  outstanding  totaled 32 days at August 3,
  2003 compared with 34 a year ago.  Inventories at the close of the first quarter
  decreased 17.5% from a year ago.  Inventory turns for the first quarter were 5.0
  versus 4.9 for the year-earlier period.  Operating working capital (comprised of
  accounts receivable,  inventory and accounts payable-trade) was $54.9 million at
  August 3, 2003, down from $70.8 million a year ago.
  
       PROPERTY,  PLANT AND  EQUIPMENT -- Capital  spending  for first  quarter of
  fiscal  2004 was $1.8  million.  Depreciation  for the  first  quarter  was $3.4
  million,  and is estimated  at $14 million for the full fiscal year.  For fiscal
  2004, the company's capital  expenditure  budget is $8.0 million,  of which $3.0
  million is related to the company's China initiative.
  
       INTANGIBLE  ASSETS -- As of August 3, 2003, $9.2 million in goodwill is the
  company's only intangible asset.
  
       LONG-TERM  DEBT - All of the company's  remaining  $76.6 million in debt is
  totally  unsecured  and is comprised  of a $75 million  term loan,  with a fixed
  interest rate of 7.76%, and a $1.6 million,  non-interest bearing term loan with
  the Canadian government. Additionally, the company has a $15.0 million revolving
  credit line with a bank, of which no balance is  outstanding  at August 3, 2003.
  The first scheduled  principal payment on the $75 million term loan is due March
  2006 in the amount of $11.0 million.  The Canadian  government loan is repaid in
  annual installments of approximately $500,000 per year.
  
       The  company's  long-term  debt  to  tangible  capitalization  (defined  as
  long-term  debt plus  shareholders'  equity minus  goodwill)  ratio was 47.1% at
  August 3, 2003.  The company was in compliance  with all financial  covenants in
  its loan agreements as of August 3, 2003.
  
  
  FREE CASH FLOW COMMENTS
  
       Free cash  flow (see  reconciliation  on page 3 of this  release)  was $5.7
  million for the first  quarter of fiscal 2004 compared with $4.1 million for the
  same  period  last  year.  Significantly  contributing  to free  cash flow was a
  reduction in accounts receivable, due primarily to lower sales volume during the
  first quarter of fiscal 2004.
  
  BUSINESS OUTLOOK
  
       While the furniture retail  environment has not demonstrated any signs of a
  sustainable  recovery,  the company believes that there will be a modest pick up
  in sales  this  fall,  as is typical in the  furniture  industry.  Overall,  the
  company  expects  the drop in  consolidated  sales for the second  quarter to be
  considerably  less than the first  quarter  decline  of  14.3%.  While  mattress
  ticking segment sales are expected to be consistent with second quarter sales of
  last  year,   upholstery   fabric   segment   sales  are  expected  to  decrease
  substantially  less than the first quarter  decline of 22.5%. As a result of the
  lower sales in the upholstery fabric segment,  the company is expecting somewhat
  lower overall gross profit  compared with the second quarter of last year.  With
  the  softness in the  furniture  industry  and the lack of  visibility  into the
  quarter to date,  it is difficult to predict the company's  profitability  level
  for the next quarter.  However,  at this time the company  expects to report net
  income in the range of $0.12 to $0.19 per diluted share, with the actual results
  depending upon the level of demand  throughout the quarter.  The company remains
  confident  that the  necessary  actions  have been taken to  right-size  Culp to
  benefit from market share  opportunities  that the company  believes  will exist
  after this challenging business cycle ends.
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text: --------------------------------------------------------------------------------
  
                                    UNITED STATES
                         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) August 26, 2003
  
                                     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)
                                   (336) 889-5161
                (Registrant's telephone number, including area code)
  
            (Former name or former address, if changed since last report)
  
  --------------------------------------------------------------------------------
  INDEX
                                        -----
  
                                                                           Page
                                                                           ----
  Item 7 -  Exhibits                                                         3
  Item 12 - Results of Operations and Financial Condition                    3
  Signature                                                                  4
  Exhibits
  Item 7 -- Exhibits
  
  99(a) News Release dated August 26, 2003
  
  99(b) Financial Information Release dated August 26, 2003
  
  Item 12 -- Results of Operations and Financial Condition
  
  On August 26,  2003,  Culp,  Inc.  (the  "Registrant")  issued a news release to
  announce its financial  results for the quarter  ended August 3, 2003.  The news
  release is attached hereto as Exhibit 99(a).
  
  Also on August 26, 2003, the Registrant released a Financial Information Release
  containing   additional   financial   information  and  disclosures   about  the
  Registrant's  first quarter ended August 3, 2003. The news release and financial
  information  release  contain  disclosures  about  free cash  flow,  a  non-GAAP
  performance  measure,  that management  believes provides useful  information to
  investors  because it measures the company's  available  cash flow for potential
  debt repayment,  stock  repurchases and additions to cash, cash  equivalents and
  short-term investments.
  
  Forward  Looking  Information.  This  Report and the  exhibits  attached  hereto
  contain  statements that may be deemed  "forward-looking  statements" within the
  meaning  of the  federal  securities  laws,  including  the  Private  Securities
  Litigation  Reform Act of 1995  (Section 27A  of the  Securities Act of 1933 and
  Section 27A of the  Securities  and Exchange Act of 1934).  Such  statements are
  inherently  subject  to  risks  and  uncertainties.   Further,  forward  looking
  statements  are  intended  to speak  only as of the date on which they are made.
  Forward-looking statements are statements that include projections, expectations
  or beliefs  about future  events or results or otherwise  are not  statements of
  historical  fact.  Such  statements  are often but not always  characterized  by
  qualifying words such as "expect,"  "believe,"  "estimate," "plan" and "project"
  and their  derivatives,  and  include but are not  limited to  statements  about
  expectations for the company's future sales, gross profit margins, SG&A or other
  expenses,  and earnings,  as well as any statements regarding the company's view
  of estimates of the  company's  future  results by analysts.  Factors that could
  influence the matters discussed in such statements  include the level of housing
  starts and sales of existing homes,  consumer  confidence,  trends in disposable
  income, and general economic conditions.  Decreases in these economic indicators
  could have a negative effect on the company's business and prospects.  Likewise,
  increases in interest rates,  particularly home mortgage rates, and increases in
  consumer  debt or the  general  rate of  inflation,  could  affect  the  company
  adversely.  In  addition,  strengthening  of  the U.  S.  dollar  against  other
  currencies  could make the company's  products less  competitive on the basis of
  price in markets  outside  the  United  States.  Also,  economic  and  political
  instability  in  international  areas could affect the  company's  operations or
  sources of goods in those areas, as well as demand for the company's products in
  international  markets.  Finally,  unanticipated  delays  or costs in  executing
  restructuring actions could cause the cumulative effect of restructuring actions
  to fail to meet the objectives set forth by management. Other factors that could
  affect the matters  discussed in forward looking  statements are included in the
  company's periodic reports filed with the Securities and Exchange Commission.
  SIGNATURE
  
  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
                                              -----------------
                                              Executive Vice President and
                                              Chief Financial Officer
  
  Dated:  August 26, 2003
          ---------------
  Exhibit 99(a)
  
                                   NEWS RELEASE
  
  Investor Contact:  Kathy J. Hardy       Media Contact:  Kenneth M. Ludwig
                     Corporate Secretary                  Senior Vice President,
                     336-888-6209                         Human Resources
                                                          336-889-5161
  
                 CULP ANNOUNCES FIRST QUARTER FISCAL 2004 RESULTS
  
  HIGH POINT,  N.C.  (August 26, 2003) - Culp, Inc.  (NYSE:  CFI) today reported
  financial  and  operating  results for the first  quarter of fiscal 2004 ended
  August 3, 2003.  The highlights include:
  
  o     Net loss of $0.04 per share  diluted,  a smaller loss than  management's
        projection  earlier  in the  quarter of a net loss of $0.06 to $0.13 per
        share diluted
  
  o     Gain in mattress  ticking  sales of 4.6 percent,  representing  the best
        quarterly sales increase in over a year for this segment
  
  o     Cash,  cash  equivalents and short-term  investments  increased to $30.1
        million from $24.4  million at the end of fiscal 2003,  reflecting  free
        cash flow of $5.7 million
  
  o     Earnings  expectation  for the  second  quarter  of  fiscal  2004 is net
        income of $0.12 to $0.19 per diluted share.
  
  For the three  months  ended  August 3, 2003,  net sales  were  $73.7  million
  compared  with $86.0  million a year ago, a 14.3  percent  decline.  The first
  quarter of fiscal 2004  included 14 weeks versus 13 weeks for the same quarter
  of fiscal  2003.  The company  reported a net loss of  $411,000,  or $0.04 per
  diluted  share,  for the first  quarter of fiscal  2004  compared  with income
  before the cumulative  effect of accounting  change of $915,000,  or $0.08 per
  diluted  share,   for  the  first  quarter  of  fiscal  2003.   Including  the
  cumulative  effect of accounting  change,  the company reported a net loss for
  the  first  quarter  of fiscal  2003 of $23.2  million,  or $2.04 per  diluted
  share.  In the  first  quarter  of  2003,  the  company  recorded  a  non-cash
  goodwill  impairment charge,  net of income taxes, of $24.2 million,  or $2.12
  per diluted share.
  
  "The first  quarter of our fiscal year is  typically  the  slowest  period for
  Culp and the furniture  industry due to scheduled  plant vacation  shutdowns,"
  commented  Robert G.  Culp,  III,  chairman  of the board and chief  executive
  officer of Culp,  Inc.  "The  seasonal  slowdown,  combined with the continued
  significant  weakness in consumer demand for furniture  throughout the summer,
  made this  quarter's  sales  particularly  challenging.  While we  reported  a
  modest loss, we are  encouraged  that the overall  results were better than we
  had originally projected at the beginning of the quarter.
  CFI Announces First Quarter 2004 Results
  Page 3
  August 26, 2003
  
                                      -MORE-
  
  "We are particularly  pleased with the positive trends in the mattress ticking
  segment as the bedding  industry  has  enjoyed a modest  rebound in sales over
  the summer  months,"  said Culp.  "Mattress  ticking  sales were $27.2 million
  for the first  quarter of fiscal 2004, a 4.6 percent  increase  compared  with
  $26.0 million in the first  quarter of fiscal 2003.  These  favorable  results
  are  encouraging  as demand in the bedding  industry has generally been one of
  the first categories in the home furnishings  industry to pick up after a down
  cycle.  In the  upholstery  fabrics  segment,  net sales declined 22.5 percent
  for the first  quarter of fiscal  2004  compared  with the same  period a year
  ago.  The decline in sales in this  segment was in line with our  expectations
  and  reflects  very soft demand by  furniture  retailers.  Additional  factors
  likely  affecting  the  demand  for  upholstery  fabrics  are  the  increasing
  consumer preference for leather furniture and an increase in imported fabrics.
  
  "One of our key  financial  objectives  for  fiscal  2004  is to  continue  to
  capitalize  on the  strength of our balance  sheet,"  added Culp.  "We believe
  that having a solid financial position in this difficult business  environment
  provides  Culp with a distinct  competitive  advantage.  As of August 3, 2003,
  our  balance  sheet  reflects  $30.1 million  in cash,  cash  equivalents  and
  short-term  investments compared with $24.4 million at the end of fiscal 2003,
  reflecting  free cash  flow of $5.7  million  during  the  first  quarter.  In
  addition,  with the  considerable  progress  we made in fiscal 2003 in further
  reducing  our  debt,  we now  have  $76.6  million  in  long-term  debt  and a
  debt-to-capital ratio of 44.5 percent compared with 49.9 percent a year ago."
  
  Commenting on the business  outlook,  Culp added,  "While the furniture retail
  environment  has not  demonstrated  any signs of a  sustainable  recovery,  we
  continue  to  believe we will see a modest  pick up in sales this fall,  as is
  typical  in  the  furniture   industry.   Overall,   we  expect  the  drop  in
  consolidated  sales for the second  quarter to be  considerably  less than the
  first quarter  decline of 14.3 percent.  While mattress  ticking segment sales
  are  expected  to be  consistent  with  second  quarter  sales  of last  year,
  upholstery  fabric segment sales are expected to decrease  substantially  less
  than the first  quarter  decline of 22.5  percent.  With the  softness  in the
  furniture  industry and the lack of visibility into the quarter to date, it is
  difficult to predict the company's  profitability  level for the next quarter.
  However,  at this  time,  we expect to report net income in the range of $0.12
  to $0.19 per share diluted,  with the actual results depending  primarily upon
  the level of demand  throughout the quarter.  We remain confident that we have
  taken the actions  necessary to  right-size  the company and position  Culp to
  benefit from  opportunities  that we believe will exist after this challenging
  business cycle ends."
  -END-
  
  Culp, Inc. is one of the world's largest  marketers of upholstery  fabrics for
  furniture  and is a leading  marketer of mattress  ticking  for  bedding.  The
  company's  fabrics are used  principally in the production of residential  and
  commercial furniture and bedding products.
  
  This  release  contains   statements  that  may  be  deemed   "forward-looking
  statements" within the meaning of the federal  securities laws,  including the
  Private  Securities   Litigation  Reform  Act  of  1995  (Section 27A  of  the
  Securities  Act of 1933 and Section 27A of the  Securities and Exchange Act of
  1934).  Such  statements  are inherently  subject to risks and  uncertainties.
  Further,  forward-looking statements are intended to speak only as of the date
  on  which  they are  made.  Forward-looking  statements  are  statements  that
  include  projections,  expectations  or beliefs about future events or results
  or otherwise are not  statements  of  historical  fact.  Such  statements  are
  often but not always  characterized  by  qualifying  words  such as  "expect,"
  "believe,"  "estimate,"  "plan"  and  "project"  and  their  derivatives,  and
  include  but  are  not  limited  to  statements  about  expectations  for  the
  company's  future sales,  gross profit margins,  SG&A or other  expenses,  and
  earnings,  as well as any statements regarding the company's view of estimates
  of the  company's  future  results by analysts.  Factors that could  influence
  the matters  discussed in such statements  include the level of housing starts
  and  sales of  existing  homes,  consumer  confidence,  trends  in  disposable
  income,  and  general  economic   conditions.   Decreases  in  these  economic
  indicators  could  have a  negative  effect  on  the  company's  business  and
  prospects.  Likewise,  increases in interest rates, particularly home mortgage
  rates, and increases in consumer debt or the general rate of inflation,  could
  affect the company  adversely.  In addition,  strengthening of the U.S. dollar
  against other  currencies  could make the company's  products less competitive
  on the basis of price in markets  outside the United  States.  Also,  economic
  and political  instability in  international  areas could affect the company's
  operations  or  sources  of goods in those  areas,  as well as demand  for the
  company's products in international  markets.  Finally,  unanticipated  delays
  or costs in executing  restructuring actions could cause the cumulative effect
  of  restructuring  actions  to  fail to  meet  the  objectives  set  forth  by
  management.   Other  factors  that  could  affect  the  matters  discussed  in
  forward-looking  statements  are included in the  company's  periodic  reports
  filed with the Securities and Exchange Commission.
  CULP, INC.
                           Condensed Financial Highlights
  
                                                          Three Months Ended
                                                       -----------------------
                                                        August 3,      July 28,
                                                          2003           2002
                                                       -----------   -----------
  Net sales                                            $73,676,000   $86,008,000
                                                       ===========   ===========
  
  Income (loss) before cumulative effect of
     accounting change                                 $  (411,000) $    915,000
  Cumulative effect of accounting change, net
     of income taxes                                            -0-  (24,151,000)
                                                       -----------  ------------
  Net loss                                             $  (411,000) $(23,236,000)
                                                       ===========  ============
  
  Basic and diluted income (loss) per share:
    Income (loss) before cumulative effect of
      accounting change                                $     (0.04) $       0.08
    Cumulative effect of accounting change                    0.00         (2.12)
                                                       -----------  ------------
    Net loss                                           $     (0.04) $      (2.04)
                                                       ===========  ============
  
  Average shares outstanding:
    Basic                                               11,515,000    11,383,000
    Diluted                                             11,515,000    11,765,000
  
  Reconciliation of Net Cash Provided by Operating Activities to Free Cash Flow
  
                                                         August 3,     July 28,
                                                           2003          2002
                                                        ----------   -----------
  Net cash provided by operating activities            $ 7,888,000  $  5,428,000
  Capital expenditures                                  (1,875,000)   (1,109,000)
  Payments on vendor-financed capital expenditures        (287,000)     (244,000)
                                                        ----------   -----------
  Free cash flow                                       $ 5,726,000  $  4,075,000
                                                        ==========   ===========
  Exhibit 99(b)
                      CULP, INC. FINANCIAL INFORMATION RELEASE
                      CONSOLIDATED STATEMENTS OF INCOME (LOSS)
             FOR THE THREE MONTHS ENDED AUGUST 3, 2003 AND JULY 28, 2002
  
                  (Amounts in Thousands, Except for Per Share Data)
  THREE MONTHS ENDED (UNAUDITED)
                                                      --------------------------------------------------------------------------------
  
                                                                Amounts                                      Percent of Sales
                                                      ----------------------------                     -------------------------------
                                                       August 3,      July 28,          % Over
                                                         2003           2002            (Under)           2004             2003
                                                      -----------   ------------   ---------------   --------------   -------------
  Net sales                                        $      73,676         86,008        (14.3) %          100.0 %         100.0 %
  Cost of sales                                           62,103         72,154        (13.9) %           84.3 %          83.9 %
                                                      -----------   ------------   --------------    -------------    -------------
       Gross profit                                       11,573         13,854        (16.5) %           15.7 %          16.1 %
  
  Selling, general and
    administrative expenses                               10,605         10,437          1.6  %           14.4 %          12.1 %
                                                      -----------   ------------   --------------    -------------    -------------
       Income from operations                                968          3,417        (71.7) %            1.3 %           4.0 %
  
  Interest expense                                         1,497          1,903        (21.3) %            2.0 %           2.2 %
  Interest income                                           (122)          (150)       (18.7) %           (0.2)%          (0.2)%
  Other expense                                              245            211         16.1  %            0.3 %           0.2 %
                                                      -----------   ------------   --------------    -------------    -------------
       Income (loss) before income taxes                    (652)         1,453       (144.9) %           (0.9)%           1.7 %
  Income taxes *                                            (241)           538       (144.8) %           37.0 %          37.0 %
                                                      -----------   ------------   --------------    -------------    -------------
  Income (loss) before cumulative effect of
    accounting change                                       (411)           915       (144.9) %           (0.6)%           1.1 %
  
  Cumulative effect of accounting change,
    net of income taxes                                        0        (24,151)
                                                      -----------   ------------
  
       Net loss                                    $        (411)       (23,236)
                                                      ===========   ============
  
  Basic income (loss) per share:
       Income (loss) before cumulative effect of
         accounting change                         $       (0.04)          0.08       (144.4) %
       Cumulative effect of accounting change               0.00          (2.12)       100.0  %
                                                      -----------   ------------   -----------
       Net loss                                    $       (0.04)         (2.04)        98.3  %
                                                      ===========   ============   ===========
  
  Diluted income (loss) per share:
       Income (loss) before cumulative effect of
         accounting change                         $       (0.04)          0.08       (145.9) %
       Cumulative effect of accounting change               0.00          (2.12)       100.0  %
                                                      -----------   ------------   -----------
       Net loss                                    $       (0.04)         (2.04)        98.3  %
                                                      ===========   ============   ===========
  
  Average shares outstanding                              11,515         11,383          1.2  %
  Average shares outstanding, assuming dilution           11,515         11,765         (2.1) %
  * Percent of sales column for income taxes is calculated as a % of income (loss)
  before income taxes.
  CULP, INC. FINANCIAL INFORMATION RELEASE
                             CONSOLIDATED BALANCE SHEETS
                          AUGUST 3, 2003 AND JULY 28, 2002
                                      Unaudited
                               (Amounts in Thousands)
  Amounts                    Increase
                                                           --------------------------          (Decrease)
                                                       August 3,        July 28,      ------------------------------    * April 27,
                                                         2003             2002         Dollars       Percent              2003
                                                     --------------    -----------   ------------   --------------   ---------------
  Current assets
       Cash and cash equivalents                  $         15,094         25,071        (9,977)        (39.8) %             14,355
       Short-term investments                               15,014              0        15,014         100.0  %             10,043
       Accounts receivable                                  24,227         34,719       (10,492)        (30.2) %             32,259
       Inventories                                          49,275         59,721       (10,446)        (17.5) %             49,552
       Deferred income taxes                                12,303          9,447         2,856          30.2  %             12,303
       Other current assets                                  4,001          4,251          (250)         (5.9) %              3,204
                                                     --------------    -----------   ------------   --------------   ---------------
                     Total current assets                  119,914        133,209       (13,295)        (10.0) %            121,716
  
  Property, plant & equipment, net                          83,299         89,201        (5,902)         (6.6) %             84,962
  Goodwill                                                   9,240          9,503          (263)         (2.8) %              9,240
  Other assets                                               1,934          4,046        (2,112)        (52.2) %              2,235
                                                     --------------    -----------   ------------   --------------   ---------------
  
                     Total assets                 $        214,387        235,959       (21,572)         (9.1) %            218,153
                                                     ==============    ===========   ============   ==============   ===============
  
  Current liabilities
       Current maturities of long-term debt       $            517            455            62          13.6  %                500
       Accounts payable                                     18,648         23,678        (5,030)        (21.2) %             19,874
       Accrued expenses                                     12,856         13,375          (519)         (3.9) %             14,071
       Accrued restructuring                                 7,141          1,864         5,277         283.1  %              7,743
       Income taxes payable                                      0              0             0         100.0  %                349
                                                     --------------    -----------   ------------   --------------   ---------------
                     Total current liabilities              39,162         39,372          (210)         (0.5) %             42,537
  
  Long-term debt                                            76,034         96,078       (20,044)        (20.9) %             76,000
  
  Deferred income taxes                                      3,851          3,502           349          10.0  %              3,851
                                                     --------------    -----------   ------------   --------------   ---------------
                     Total liabilities                     119,047        138,952       (19,905)        (14.3) %            122,388
  
  Shareholders' equity                                      95,340         97,007        (1,667)         (1.7) %             95,765
                                                     --------------    -----------   ------------   --------------   ---------------
  
                     Total liabilities and
                     shareholders' equity         $        214,387        235,959       (21,572)         (9.1) %            218,153
                                                     ==============    ===========   ============   ==============   ===============
  
  Shares outstanding                                        11,515         11,483            32           0.3  %             11,515
                                                     ==============    ===========   ============   ==============   ===============
  
  *Derived from audited financial statements
  CULP, INC. FINANCIAL INFORMATION RELEASE
                        CONSOLIDATED STATEMENTS OF CASH FLOWS
             FOR THE THREE MONTHS ENDED AUGUST 3, 2003 AND JULY 28, 2002
                                      Unaudited
                               (Amounts in Thousands)
  THREE MONTHS ENDED
                                                                                         ------------------------------
                                                                                                    Amounts
                                                                                         ------------------------------
                                                                                          August 3,         July 28,
                                                                                             2003             2002
                                                                                         -------------    -------------
  Cash flows from operating activities:
         Net loss                                                                      $         (411)         (23,236)
         Adjustments to reconcile net loss to net cash
            provided by operating activities:
                Cumulative effect of accounting change, net of income taxes                         0           24,151
                Depreciation                                                                    3,444            3,641
                Amortization of other assets                                                       45              159
                Stock-based compensation                                                           53               52
                Changes in assets and liabilities:
                    Accounts receivable                                                         8,032            8,647
                    Inventories                                                                   277           (1,822)
                    Other current assets                                                         (797)            (114)
                    Other assets                                                                  256              (18)
                    Accounts payable                                                             (845)          (2,366)
                    Accrued expenses                                                           (1,215)          (3,085)
                    Accrued restructuring expenses                                               (602)            (581)
                    Income taxes payable                                                         (349)               0
                                                                                         -------------    -------------
                       Net cash provided by operating activities                                7,888            5,428
                                                                                         -------------    -------------
  
  Cash flows used in investing activities:
         Capital expenditures                                                                  (1,875)          (1,109)
         Purchases of short-term investments                                                   (5,038)               0
                                                                                         -------------    -------------
                       Net cash used in investing activities                                   (6,913)          (1,109)
                                                                                         -------------    -------------
  
  Cash flows used in financing activities:
         Payments on vendor-financed capital expenditures                                        (287)            (244)
         Proceeds from issuance of long-term debt                                                  51                0
         Principal payments of long-term debt                                                       0          (11,951)
         Proceeds from common stock issued                                                          0              954
                                                                                         -------------    -------------
                       Net cash used in financing activities                                     (236)         (11,241)
                                                                                         -------------    -------------
  
  Increase (decrease) in cash and cash equivalents                                                739           (6,922)
  
  Cash and cash equivalents at beginning of period                                             14,355           31,993
                                                                                         -------------    -------------
  
  Cash and cash equivalents at end of period                                          $        15,094           25,071
                                                                                         =============    =============
  
  Free Cash Flow (1)                                                                  $         5,726            4,075
                                                                                         =============    =============
  
  ---------------------------------------------------------------------------------------------------------------------
  
  (1)  Free Cash Flow reconciliation is as follows:                                        1st QTR            1st QTR
                                                                                           FY 2004            FY 2003
                                                                                        -------------     -------------
  A)     Net cash provided by operating activities                                           7,888             5,428
  B)     Minus:  Capital Expenditures                                                       (1,875)           (1,109)
  C)     Minus:  Payments on vendor-financed capital expenditures                             (287)             (244)
                                                                                        -------------     -------------
                                                                                             5,726             4,075
                                                                                        =============     =============
  
  ---------------------------------------------------------------------------------------------------------------------
  CULP, INC. FINANCIAL INFORMATION RELEASE
                                 FINANCIAL ANALYSIS
                                   AUGUST 3, 2003
  FISCAL 03                          FISCAL 04
                                         ----------------    --------------------------------------------
                                               Q1                   Q1        Q2        Q3      Q4
                                         ----------------    --------------------------------------------
  INVENTORIES
     Inventory turns                             4.9                 5.0
  
  RECEIVABLES
     Days sales in receivables                    34                  32
  
  WORKING CAPITAL
     Current ratio                               3.4                 3.1
     Operating working capital turnover (1)      4.7                 5.1
     Operating working capital (1)           $70,762             $54,854
  
  PROPERTY, PLANT & EQUIPMENT
     Depreciation rate                          6.4%                6.2%
     Percent property, plant &
       equipment are depreciated               60.6%               62.3%
     Capital expenditures                     $4,729 (2)          $1,781
  
  LEVERAGE
     Total liabilities/equity                 143.2%              124.7%
     Long-term debt/equity                     99.5%               80.3%
     Long-term debt/capital employed           49.9%               44.5%
     Long-term debt                          $96,533             $76,551
  
  OTHER
     Book value per share                      $8.45               $8.28
     Employees at quarter end                  2,900               2,383
     Sales per employee (annualized)        $116,163            $121,628
     Capital employed                       $193,540            $171,891
  
    (1) Working capital for this calculation is accounts receivable, inventories and accounts payable
    (2) Expenditures for entire year
  CULP, INC. FINANCIAL INFORMATION RELEASE
                      SALES / GROSS PROFIT BY SEGMENT/DIVISION
             FOR THE THREE MONTHS ENDED AUGUST 3, 2003 AND JULY 28, 2002
  
                                                   (Amounts in thousands)
  THREE MONTHS ENDED (UNAUDITED)
                                               -----------------------------------------------------------------------
  
                                                       Amounts                                 Percent of Total Sales
                                               ----------------------------                  -------------------------
                                                 August 03,        July 28,        % Over
  Segment/Division Sales                            2003            2002          (Under)         2004           2003
  -----------------------------------------    --------------   -----------    -----------   -----------   -----------
  Upholstery Fabrics
      Culp Decorative Fabrics               $         28,008        34,771      (19.5) %        38.0 %        40.4 %
      Culp Velvets/Prints                             16,839        23,107      (27.1) %        22.9 %        26.9 %
      Culp Yarn                                        1,609         2,099      (23.3) %         2.2 %         2.4 %
                                               --------------   -----------    -----------   -----------   -----------
                                                      46,456        59,977      (22.5) %        63.1 %        69.7 %
  Mattress Ticking
       Culp Home Fashions                             27,220        26,031        4.6  %        36.9 %        30.3 %
                                               --------------   -----------    -----------   -----------   -----------
  
                                         *  $         73,676        86,008      (14.3) %       100.0 %       100.0 %
                                               ==============   ===========    ===========   ===========   ===========
  
  Segment Gross Profit                                                                           Gross Profit Margin
  -----------------------------------------                                                  -------------------------
  
  Upholstery Fabrics                        $          5,501         8,000      (31.2) %        11.8 %        13.3 %
  
  Mattress Ticking                                     6,072         5,854        3.7  %        22.3 %        22.5 %
                                               --------------   -----------    -----------   -----------   -----------
  
  Gross Profit                              $         11,573        13,854      (16.5) %        15.7 %        16.1 %
                                               ==============   ===========    ===========   ===========   ===========
  * U.S.  sales were $65,482 and $75,585 for the first  quarter of fiscal 2004 and
  fiscal 2003,  respectively;  The percentage decrease in U.S. sales was 13.4% for
  the first quarter
  CULP, INC. FINANCIAL INFORMATION RELEASE
                       INTERNATIONAL SALES BY GEOGRAPHIC AREA
            FOR THE THREE MONTHS ENDED AUGUST 3, 2003 AND JULY 28, 2002
  (Amounts in thousands)
  
                                               THREE MONTHS ENDED (UNAUDITED)
                                         -----------------------------------------
                                                   Amounts
                                         ----------------------------
                                           August 3,      July 28,       % Over
                Geographic Area              2003           2002        (Under)
  ------------------------------------   --------------  ------------  -----------
  North America (Excluding USA)       $          6,372         7,550    (15.6) %
  Far East & Asia                                1,395         1,435     (2.8) %
  All other areas                                  427         1,438    (70.3) %
                                         --------------  ------------  -----------
  
                                      $          8,194        10,423    (21.4) %
                                         ==============  ============  ===========
  
               Percent of total sales            11.1%         12.1%
  CULP, INC. FINANCIAL INFORMATION RELEASE
                                 FINANCIAL NARRATIVE
             for the three months ended August 3, 2003 and July 28, 2002
  
  OVERVIEW
  
  Highlights for the first quarter ended August 3, 2003, include:
  
    o  Net  loss of $0.04  per  share  diluted,  which is a  smaller  loss  than
       management's  projection  earlier in the  quarter of a net loss of $0.06 to
       $0.13 per diluted share
    o  Gain in mattress  ticking sales of 4.6%,  representing the best quarterly
       sales increase in over a year for this segment
    o  Cash,  cash  equivalents  and short-term  investments  increased to $30.1
       million from $24.4 million at the end of fiscal 2003,  reflecting free cash
       flow of $5.7 million
    o  Earnings  expectation for the second quarter of fiscal 2004 is net income
       of $0.12 to $0.19 per diluted share
  
       GENERAL -- For the first quarter of fiscal 2004, net sales  decreased 14.3%
  to $73.7 million; and the company reported a net loss of $411,000,  or $0.04 per
  share diluted,  compared with income before the cumulative  effect of accounting
  change of $915,000,  or $0.08 per share diluted,  in the first quarter of fiscal
  2003. Including the cumulative effect of accounting change, the company reported
  a net loss for the first quarter of fiscal 2003 of $23.2  million,  or $2.04 per
  share.  In the first quarter of 2003, the company  recorded a non-cash  goodwill
  impairment  charge,  net of income taxes,  of $24.2 million,  or $2.12 per share
  diluted.  The first quarter of fiscal 2004 included 14 weeks versus 13 weeks for
  the same quarter of fiscal 2003.
  
  INCOME STATEMENT COMMENTS
  
       UPHOLSTERY FABRIC SEGMENT (See page 5 - Sales and Gross Profit by Segment)
  
       NET SALES --  Upholstery  fabric sales for the first quarter of fiscal 2004
  decreased  22.5% to $46.5 million.  The decline of $13.5 million is attributable
  to  substantial  reduced  demand from  customers  due  primarily  to the overall
  general  weakness in consumer demand for furniture,  which continued  throughout
  the first quarter of fiscal 2004.  Additional  factors that are likely affecting
  demand for  upholstery  fabrics are (1) an increase in consumer  preference  for
  leather  furniture,  and (2) an  increase in  imported  fabrics,  both in "piece
  goods" and "cut and sewn kits."
  
  Upholstery  fabric yards sold during the first quarter were 10.8 million  versus
  14.4 million in the first  quarter of fiscal  2003, a decline of 25.0%.  Average
  selling  price was $4.13 for the  first  quarter  compared  to $4.02 in the same
  quarter of last year, an increase of 2.7%.  This increase was due principally to
  the CDF division.  Yarn sales were $1.6 million, down from $2.1 million in first
  quarter of fiscal 2003.
  
       GROSS PROFIT -- Gross profit for the first  quarter of fiscal 2004 was $5.5
  million,  or 11.8%,  versus $8.0 million,  or 13.3% for the same quarter of last
  year.  While gross profit in the CDF division was lower than the previous  year,
  the  majority  of the  decline  was  attributable  to the  CVP  division,  which
  experienced a significant decline in the sale of velvet fabrics.
  
       MATTRESS TICKING SEGMENT (See page 5 - Sales and Gross Profit by Segment)
  
       NET SALES -- Mattress  ticking  sales for the first  quarter of fiscal 2004
  increased  4.6% to $27.2  million.  This is the best  quarter  in terms of sales
  increases in over a year and reflects an improving bedding industry environment.
  
  Mattress  ticking  yards sold during the first  quarter of fiscal 2004 were 10.5
  million,  down less than 2% from 10.7  million in the same quarter of last year.
  The average selling price was $2.57 for the first quarter, compared to $2.44 the
  same quarter last year, an increase of 5.3%.  This  increase in average  selling
  price reflects (a) a greater mix of woven ticking versus printed  ticking,  and
  (b) a  growing,  but  small,  portion of the  overall  business  that is knitted
  ticking.
  
       GROSS PROFIT -- For the first quarter of fiscal 2004, the mattress  ticking
  segment  reported  gross  profit  dollars and margins of $6.1 million and 22.3%,
  respectively,  compared  with $5.9 million and 22.5% for the same period of last
  year.
  
       CHINA INITATIVE -- The company's  previously  announced initiative in China
  is moving  forward on  schedule.  The company  has  received  all the  necessary
  business  license  approvals,  and  the  general  manager,  which  relocated  to
  Shanghai,  China  in May,  has set up the  China  facility  for all the  related
  administrative  functions.  As  planned,  the  company  will  install  finishing
  equipment and begin fabric inspection, testing and distribution functions at the
  China  facility  during  the  second  fiscal  quarter  of 2004.  Limited  fabric
  finishing operations are anticipated to begin during the third fiscal quarter of
  2004. Upon  completion,  the company believes the China platform will allow Culp
  to deliver value to customers by linking design expertise,  finishing technology
  and U.S. quality standards with low-cost fabric manufacturers in China.
  
       SG&A  EXPENSES  -- SG&A  expenses of $10.6  million  for the first  quarter
  increased  $168,000,  or 1.6%,  from the prior year amount.  As a percent of net
  sales,  SG&A  expenses  increased  to 14.4% from 12.1% the previous  year.  SG&A
  expenses in the first  quarter  included  higher  professional  fees offset by a
  decrease in sales costs due to lower sales volume and lower bad debt expense.
  
       INTEREST  EXPENSE AND  INTEREST  INCOME --  Interest  expense for the first
  quarter  declined to $1.5 million  from $1.9  million the  previous  year due to
  significantly  lower  borrowings  outstanding.   Interest  income  decreased  to
  $122,000 from $150,000 due  principally  to lower  interest rates earned on cash
  balances  during the first quarter of fiscal 2004 as compared to the same period
  a year ago.
  
       OTHER EXPENSE -- Other expense for the first quarter of fiscal 2004 totaled
  $245,000  compared with $211,000 in the prior year. The increase was principally
  due to the impact of a higher  Canadian  exchange  rate,  mostly offset by lower
  debt issue costs.
  
       INCOME TAXES -- The effective tax rate for the first quarter of fiscal 2004
  and fiscal 2003 was 37%.
  
  BALANCE SHEET COMMENTS
  
       CASH, CASH EQUIVALENTS AND SHORT-TERM  INVESTMENTS - Cash, cash equivalents
  and short-term  investments as of August 3, 2003 increased to $30.1 million from
  $24.4 at the end of fiscal 2003,  reflecting  free cash flow of $5.7 million for
  the first quarter of fiscal 2004 (see discussion of free cash flow below).
  
       WORKING CAPITAL -- Accounts receivable as of August 3, 2003 decreased 30.2%
  from the  year-earlier  level,  due to  lower  sales  volumes,  the  decline  in
  international  sales and related  longer  credit  terms,  repayment  of past due
  balances,  and an increase in the number of customers  taking the cash  discount
  for shorter payment terms. Days sales  outstanding  totaled 32 days at August 3,
  2003 compared with 34 a year ago.  Inventories at the close of the first quarter
  decreased 17.5% from a year ago.  Inventory turns for the first quarter were 5.0
  versus 4.9 for the year-earlier period.  Operating working capital (comprised of
  accounts receivable,  inventory and accounts payable-trade) was $54.9 million at
  August 3, 2003, down from $70.8 million a year ago.
  
       PROPERTY,  PLANT AND  EQUIPMENT -- Capital  spending  for first  quarter of
  fiscal  2004 was $1.8  million.  Depreciation  for the  first  quarter  was $3.4
  million,  and is estimated  at $14 million for the full fiscal year.  For fiscal
  2004, the company's capital  expenditure  budget is $8.0 million,  of which $3.0
  million is related to the company's China initiative.
  
       INTANGIBLE  ASSETS -- As of August 3, 2003, $9.2 million in goodwill is the
  company's only intangible asset.
  
       LONG-TERM  DEBT - All of the company's  remaining  $76.6 million in debt is
  totally  unsecured  and is comprised  of a $75 million  term loan,  with a fixed
  interest rate of 7.76%, and a $1.6 million,  non-interest bearing term loan with
  the Canadian government. Additionally, the company has a $15.0 million revolving
  credit line with a bank, of which no balance is  outstanding  at August 3, 2003.
  The first scheduled  principal payment on the $75 million term loan is due March
  2006 in the amount of $11.0 million.  The Canadian  government loan is repaid in
  annual installments of approximately $500,000 per year.
  
       The  company's  long-term  debt  to  tangible  capitalization  (defined  as
  long-term  debt plus  shareholders'  equity minus  goodwill)  ratio was 47.1% at
  August 3, 2003.  The company was in compliance  with all financial  covenants in
  its loan agreements as of August 3, 2003.
  
  FREE CASH FLOW COMMENTS
  
       Free cash  flow (see  reconciliation  on page 3 of this  release)  was $5.7
  million for the first  quarter of fiscal 2004 compared with $4.1 million for the
  same  period  last  year.  Significantly  contributing  to free  cash flow was a
  reduction in accounts receivable, due primarily to lower sales volume during the
  first quarter of fiscal 2004.
  
  BUSINESS OUTLOOK
  
       While the furniture retail  environment has not demonstrated any signs of a
  sustainable  recovery,  the company believes that there will be a modest pick up
  in sales  this  fall,  as is typical in the  furniture  industry.  Overall,  the
  company  expects  the drop in  consolidated  sales for the second  quarter to be
  considerably  less than the first  quarter  decline  of  14.3%.  While  mattress
  ticking segment sales are expected to be consistent with second quarter sales of
  last  year,   upholstery   fabric   segment   sales  are  expected  to  decrease
  substantially  less than the first quarter  decline of 22.5%. As a result of the
  lower sales in the upholstery fabric segment,  the company is expecting somewhat
  lower overall gross profit  compared with the second quarter of last year.  With
  the  softness in the  furniture  industry  and the lack of  visibility  into the
  quarter to date,  it is difficult to predict the company's  profitability  level
  for the next quarter.  However,  at this time the company  expects to report net
  income in the range of $0.12 to $0.19 per diluted share, with the actual results
  depending upon the level of demand  throughout the quarter.  The company remains
  confident  that the  necessary  actions  have been taken to  right-size  Culp to
  benefit from market share  opportunities  that the company  believes  will exist
  after this challenging business cycle ends.