content: --------------------------------------------------------------------------------
  
  
                        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) February 19, 2002
  
                                     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>
  
  
  
  Item 5. Other Events
  
  See  attached  Press  Release (3 pages)  and  Financial  Information  Release (9
  pages),  both dated February 19, 2002,  related to the fiscal 2002 third quarter
  ended January 27, 2002.
  
  Forward  Looking  Information.  This  Report  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.  Such  statements  are  inherently  subject  to risks  and  uncertainties.
  Forward-looking    statements   are   statements   that   include   projections,
  expectations  or beliefs  about future  events or results or  otherwise  are not
  statements  of historical  fact.  Such  statements  are often  characterized  by
  qualifying words such as "expect,"  "believe,"  "estimate," "plan" and "project"
  and their  derivatives.  Factors that could  influence the matters  discussed in
  such  statements  include  the level of  housing  starts  and sales of  existing
  homes,  consumer  confidence,  trends in disposable income, and general economic
  conditions.  Decreases  in  these  economic  indicators  could  have a  negative
  effect  on  the  company's  business  and  prospects.   Likewise,  increases  in
  interest  rates,  particularly  home mortgage  rates,  and increases in consumer
  debt or the general  rate of  inflation,  could  affect the  company  adversely.
  Because of the  significant  percentage  of the  company's  sales  derived  from
  international  shipments,  strengthening  of  the U.  S.  dollar  against  other
  currencies  could make the company's  products less  competitive on the basis of
  price  in  markets  outside  the  United  States.  Additionally,   economic  and
  political  instability  in  international  areas could affect the demand for the
  company's products.
  
  
  
                                     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:   February 19, 2002
           -----------------
  <PAGE>
  
  
  FOR IMMEDIATE RELEASE
  
  
              CULP REPORTS CONTINUED EARNINGS RECOVERY IN THIRD QUARTER
                               ----------------------
            CASH POSITION UP FROM A YEAR AGO DUE TO RESTRUCTURING ACTIONS
                            AND BALANCE SHEET MANAGEMENT
  
  HIGH POINT, N. C. (Feb. 19, 2002) -- Culp,  Inc. (NYSE:  CFI) today reported net
  income  for  the  third  quarter  of  its  fiscal  2002  year  compared  with  a
  significant  loss a year  ago and  indicated  that  it has  achieved  a  further
  strengthening in its financial position.
  
        For the three months ended  January 27, 2002,  Culp  reported net sales of
  $90.6  million  compared  with  $95.9  million a year ago.  Net  income  for the
  third quarter of fiscal 2002 totaled  $170,000,  or $0.02 per share diluted.  In
  the year-earlier  period,  the Company  reported a net loss of $5.5 million,  or
  $0.49 per share diluted.  Excluding  restructuring and related charges,  the net
  loss in the  year-earlier  period was $3.4 million,  or $0.30 per share diluted.
  Culp  indicated  that bad debt  expense  for the third  quarter  of fiscal  2002
  totaled   $703,000   ($0.04  per  share  after  taxes)  versus  $32,000  in  the
  year-earlier period.
  
        Net  sales for the  first  nine  months  of  fiscal  2002  totaled  $273.5
  million compared with  $308.7 million  in the year-earlier  period.  The Company
  reported  a net loss for the first  nine  months of $1.9  million,  or $0.17 per
  share  diluted,  compared  with a net loss of $6.9  million,  or $0.61 per share
  diluted,  in  the  year-earlier  period.  Excluding  restructuring  and  related
  charges,  the  company  reported  a net loss of  $205,000,  or $0.02  per  share
  diluted,  for the  first  nine  months  of  fiscal  2002  and a net loss of $4.7
  million,  or $0.42 per share diluted,  for the year-earlier  period. The company
  indicated  that bad debt  expense  for the first  nine  months  of  fiscal  2002
  totaled  $2.9  million  ($0.17 per share  after  taxes)  versus  $189,000 in the
  year-earlier period.
  
       "We are pleased with the outstanding  year-to-year  improvement represented
  by our third quarter  results,"  remarked  Robert G. Culp,  III, chief executive
  officer.  "Culp's ability to achieve a profit during the most recent quarter was
  due to operational improvements, especially from our mattress ticking group, and
  to the  restructuring  actions  and other  steps we have taken to reduce  costs.
  Because of scheduled  holiday plant  closings,  the third fiscal  quarter is not
  usually the strongest  period of the year for our business.  Our  expectation of
  this  seasonal  softness in sales put an even  greater  emphasis  on  containing
  expenses  during the quarter and  presents the profit for the three months in an
  even  stronger  light.  The  performance  for the third quarter  reinforces  our
  optimism  about meeting our  previously  stated target of reporting a profit for
  fiscal 2002 as a whole,  excluding  restructuring  charges,  that will provide a
  solid platform for further improvement in fiscal 2003.
  
       Culp added, "The relative strength of the dollar continues to impact demand
  for our fabrics and ticking outside the United States.  International sales were
  down $7.4 million, or 40%, from a year ago and represented only 12% of our total
  sales for the third quarter,  down from 19% in the year-earlier  period.  Fabric
  shipments  to customers  within the United  States ran counter to this trend and
  were up $3.5 million,  or 5%, from a year ago during the third  quarter.  We are
  very  encouraged  by that  year-to-year  comparison  that clearly  evidences our
  success  in gaining  market  share.  An  important  aspect of our  restructuring
  actions  has been to  streamline  our  operations  and  provide  customers  with
  improved service.  Manufacturers of upholstered  furniture and bedding are under
  mounting  pressure to lower costs,  and we believe that Culp has never been in a
  stronger  position  in terms of  operating  efficiency  and  successful  product
  offerings to meet their needs."
  
       Culp added, "One of our important financial goals is to maximize cash flow.
  We achieved  sufficient  cash from  operations  through the first nine months to
  increase our cash position to $10.4  million at the close of the third  quarter,
  up  significantly  from $1.2 million at the end of fiscal  2001.  Our efforts to
  build liquidity  include tight management of working capital.  Through the first
  nine months, we have achieved a meaningful decline in accounts  receivable,  not
  only in absolute dollars but also in terms of average days outstanding. Our debt
  of $110.1 million at the close of the quarter was down $11.3 million from a year
  ago. Our capital  expenditures  for fiscal 2002 remain targeted at approximately
  $4.5 million, compared with $8.1 million in fiscal 2001."
  
        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. Such statements are inherently
  subject to risks and  uncertainties.  Forward-looking  statements are statements
  that include projections, expectations or beliefs about future events or results
  or otherwise are not statements of historical  fact.  Such  statements are often
  characterized  by  qualifying  words such as  "expect,"  "believe,"  "estimate,"
  "plan" and "project"  and their  derivatives.  Factors that could  influence the
  matters  discussed in such  statements  include the level of housing  starts and
  sales of existing homes,  consumer  confidence,  trends in disposable income and
  general economic conditions. Decreases in these economic indicators could have a
  negative effect on the Company's business and prospects.  Likewise, increases in
  interest rates, particularly home mortgage rates, and increases in consumer debt
  or the general rate of inflation, could affect the Company adversely. Because of
  the  significant  percentage of the Company's  sales derived from  international
  shipments,  strengthening of the U.S. dollar against other currencies could make
  the Company's products less competitive on the basis of price in markets outside
  the  United  States.   Additionally,   economic  and  political  instability  in
  international areas could affect the demand for the Company's products.
  
  
                                     CULP, INC.
                           Condensed Financial Highlights
                                     (Unaudited)
  
                                                        Three Months Ended
  -------------------------------------------------------------------------------
                                                   January 27,       January 28,
                                                      2002              2001
                                                 --------------    --------------
  Net sales                                      $   90,618,000    $  95,880,000
  Net income (loss)                              $      170,000    $  (5,470,000)
  Net income (loss) per share:
    Basic                                        $         0.02    $       (0.49)
    Diluted                                      $         0.02    $       (0.49)
  Net income (loss) per diluted share, excluding
   restructuring and related charges*            $         0.02    $       (0.30)
  Average shares outstanding:
    Basic                                            11,211,000       11,211,000
    Diluted                                          11,304,000       11,211,000
  
  
                                                         Nine Months Ended
  --------------------------------------------------------------------------------
                                                    January 27,       January 28,
                                                       2002              2001
                                                ---------------   ---------------
  Net sales                                      $  273,481,000    $ 308,739,000
  Net (loss)                                     $   (1,855,000)   $  (6,884,000)
  Net (loss) per share:
     Basic                                       $        (0.17)   $       (0.61)
     Diluted                                     $        (0.17)   $       (0.61)
  Net (loss) per diluted share, excluding
  restructuring and related charges*             $        (0.02)   $       (0.42)
  Average shares outstanding:
     Basic                                           11,221,000       11,209,000
     Diluted                                         11,221,000       11,209,000
  
  * Excludes  restructuring  and related  charges of $2.5 million ($1.6 million or
    $0.15 per share  diluted,  after  taxes) for the first nine months of 2002 and
    $3.2 million  ($2.1 million or $0.19 per share  diluted,  after taxes) for the
    third quarter and first nine months of fiscal 2001.
  
  
                                         -END-
  
  
  
  <PAGE>
                      CULP, INC. FINANCIAL INFORMATION RELEASE
                      CONSOLIDATED STATEMENTS OF INCOME (LOSS)
  FOR THE THREE MONTHS AND NINE MONTHS ENDED JANUARY 27, 2002 AND JANUARY 28, 2001
                  (Amounts in Thousands, Except for Per Share Data)
  <TABLE>
  <CAPTION>
                                                                        THREE MONTHS ENDED (UNAUDITED)
                                               --------------------------------------------------------------------------------
                                                          Amounts                                       Percent of Sales
                                               ------------------------------                     -----------------------------
                                                January 27,     January 28,       % Over
                                                   2002            2001           (Under)            2002            2001
                                               --------------  --------------  --------------     --------------  -------------
  <S>                                       <C>                     <C>            <C>               <C>            <C>
  Net sales                                 $         90,618          95,880         (5.5)%            100.0 %        100.0 %
  Cost of sales                                       77,110          86,047        (10.4)%             85.1 %         89.7 %
                                               --------------  --------------  --------------     --------------  -------------
           Gross profit                               13,508           9,833         37.4 %             14.9 %         10.3 %
  
  Selling, general and
    administrative expenses   (1)                     11,038          12,480        (11.6)%             12.2 %         13.0 %
  Restructuring expense                                    0           2,504          0.0 %              0.0 %          2.6 %
                                               --------------  --------------  --------------     --------------  -------------
           Income  from operations                     2,470          (5,151)       148.0 %              2.7 %         (5.4)%
  
  Interest expense                                     1,820           2,222        (18.1)%              2.0 %          2.3 %
  Interest income                                        (42)            (18)       133.3 %             (0.0)%         (0.0)%
  Other expense (income), net                            435             811        (46.4)%              0.5 %          0.8 %
                                               --------------  --------------  --------------     --------------  -------------
           Income (loss) before income taxes             257          (8,166)       103.1 %              0.3 %         (8.5)%
  
  
  Income taxes  (2)                                       87          (2,696)       103.2 %             34.0 %         33.0 %
                                               --------------  --------------  --------------     --------------  -------------
           Net income (loss)                $            170          (5,470)       103.1 %              0.2 %         (5.7)%
                                               ==============  ==============  ==============     ==============  =============
  
  Net income per share                                 $0.02          ($0.49)       104.1 %
  Net income per share, assuming dilution              $0.02          ($0.49)       104.1 %
  Net income per share, excluding restructuring
     and related charges  (3)                          $0.02          ($0.30)       106.7 %
  Average shares outstanding                          11,221          11,211          0.1 %
  Average shares outstanding, assuming dilution       11,304          11,211          0.8 %
  
  
                                                                        NINE MONTHS ENDED (UNAUDITED)
                                               --------------------------------------------------------------------------------
                                                          Amounts                                       Percent of Sales
                                               ------------------------------                     -----------------------------
                                                January 27,     January 28,       % Over
                                                   2002            2001           (Under)            2002            2001
                                               --------------  --------------  --------------     --------------  -------------
  Net sales                                 $        273,481         308,739        (11.4)%            100.0 %        100.0 %
  Cost of sales                                      233,642         267,845        (12.8)%             85.4 %         86.8 %
                                               --------------  --------------  --------------     --------------  -------------
           Gross profit                               39,839          40,894         (2.6)%             14.6 %         13.2 %
  
  Selling, general and
    administrative expenses (1)                       33,823          39,749        (14.9)%             12.4 %         12.9 %
  Restructuring expense                                1,303           2,504        (48.0)%              0.5 %          0.8 %
                                               --------------  --------------  --------------     --------------  -------------
                                                       4,713          (1,359)      (446.8)%              1.7 %         (0.4)%
  
  Interest expense                                     5,851           6,830        (14.3)%              2.1 %          2.2 %
  Interest income                                        (99)            (40)       147.5 %             (0.0)%         (0.0)%
  Other expense (income), net                          1,772           2,127        (16.7)%              0.6 %          0.7 %
                                               --------------  --------------  --------------     --------------  -------------
                                                      (2,811)        (10,276)        72.6 %             (1.0)%         (3.3)%
  
  Income taxes  (2)                                     (956)         (3,392)        71.8 %             34.0 %         33.0 %
                                               --------------  --------------  --------------     --------------  -------------
           Net loss                         $         (1,855)         (6,884)        73.1 %             (0.7)%         (2.2)%
                                               ==============  ==============  ==============     ==============  =============
  
  Net loss per share                                  ($0.17)         ($0.61)        72.1 %
  Net loss per share, assuming dilution               ($0.17)         ($0.61)        72.1 %
  Net loss per share, excluding restructuring
     and related charges  (3)                         ($0.02)         ($0.42)        95.2 %
  Average shares outstanding                          11,221          11,209          0.1 %
  Average shares outstanding, assuming dilution       11,221          11,209          0.1 %
  
  
  (1) Includes bad debt expense of $703,000 ($464,000 or $0.04 per share diluted, after taxes) and  $31,600 for the third
      quarter of fiscal 2002 and fiscal 2001, respectively;  and $2,928,000 ($1,932,000 or $0.17 per share diluted, after
      taxes) and $188,700 for the nine months of fiscal 2002 and 2001, respectively.
  (2) Percent of sales column is calculated as a % of income (loss) before income taxes.
  (3) Excludes  restructuring  and related  charges of $0 and $3.2  million  ($2.1 million or $.19 per share
      diluted,  after taxes) for the third quarter of fiscal 2002 and fiscal 2001, respectively; and $2.5 million
      ($1.6 million or $.15 per share  diluted,  after taxes) and $3.2 million  ($2.1  million or $.19 per share
      diluted, after taxes) for the nine months of fiscal 2002 and 2001, respectively.
  </TABLE>
  <PAGE>
  
                      CULP, INC. FINANCIAL INFORMATION RELEASE
                             CONSOLIDATED BALANCE SHEETS
                 JANUARY 27, 2002, JANUARY 28, 2001, APRIL 29, 2001
                                      Unaudited
                               (Amounts in Thousands)
  
  <TABLE>
  <CAPTION>
                                                                    Amounts                          Increase
                                                    ---------------------------------               (Decrease)
                                                     January 27,         January 28,   ---------------------------------   * April 29,
                                                        2002                 2001            Amount          Percent           2001
                                                    ---------------   ---------------  ---------------     -------------  ------------
  <S>                                              <C>                 <C>              <C>               <C>              <C>
  Current assets
         Cash and cash investments                $         10,359               292          10,067       3,447.6 %           1,207
         Accounts receivable                                46,171            54,474          (8,303)        (15.2)%          57,849
         Inventories                                        59,398            67,156          (7,758)        (11.6)%          59,997
         Other current assets                                9,323            13,706          (4,383)        (32.0)%           7,856
                                                    ---------------   ---------------  ---------------     -------------  ------------
                     Total current assets                  125,251           135,628         (10,377)         (7.7)%         126,909
  
  Property, plant & equipment, net                         102,457           116,207         (13,750)        (11.8)%         112,322
  Goodwill                                                  47,432            48,827          (1,395)         (2.9)%          48,478
  Other assets                                               1,641             2,256            (615)        (27.3)%           1,871
                                                    ---------------   ---------------  ---------------     -------------  ------------
  
                     Total assets                 $        276,781           302,918         (26,137)         (8.6)%         289,580
                                                    ===============   ===============  ===============     =============  ============
  
  
  Current liabilities
         Current maturities of long-term debt    $           3,127             2,159             968          44.8 %           2,488
         Accounts payable                                   21,336            27,084          (5,748)        (21.2)%          27,371
         Accrued expenses                                   15,015            15,417            (402)         (2.6)%          17,153
         Income taxes payable                                    0                 0               0           0.0 %           1,268
                                                    ---------------   ---------------  ---------------     -------------  ------------
                     Total current liabilities              39,478            44,660          (5,182)        (11.6)%          48,280
  
  
  Long-term debt                                           106,960           119,213         (12,253)        (10.3)%         109,168
  
  Deferred income taxes                                     10,330            17,459          (7,129)        (40.8)%          10,330
                                                    ---------------   ---------------  ---------------     -------------  ------------
                     Total liabilities                     156,768           181,332         (24,564)        (13.5)%         167,778
  
  Shareholders' equity                                     120,013           121,586          (1,573)         (1.3)%         121,802
                                                   ---------------   ---------------  ---------------     -------------  ------------
  
                     Total liabilities and
                     shareholders' equity         $        276,781           302,918         (26,137)         (8.6)%         289,580
                                                    ===============   ===============  ===============     =============  ============
  
  Shares outstanding                                        11,221            11,211              10           0.1 %          11,221
                                                    ===============   ===============  ===============     =============  ============
  
  </TABLE>
  
  * Derived from audited financial statements.
  <PAGE>
  
                      CULP, INC. FINANCIAL INFORMATION RELEASE
                        CONSOLIDATED STATEMENTS OF CASH FLOWS
           FOR THE NINE MONTHS ENDED JANUARY 27, 2002 AND JANUARY 28, 2001
                                      Unaudited
                               (Amounts in Thousands)
  <TABLE>
  <CAPTION>
                                                                                            NINE MONTHS ENDED
                                                                                      ------------------------------
                                                                                                 Amounts
                                                                                      ------------------------------
                                                                                       January 27,     January 28,
                                                                                          2002            2001
                                                                                      --------------  --------------
  <S>                                                                              <C>                   <C>
  Cash flows from operating activities:
       Net loss                                                                   $         (1,855)         (6,884)
       Adjustments to reconcile net loss to net cash
          provided by operating activities:
              Depreciation                                                                  13,214          14,781
              Amortization of intangible and other assets                                    1,177           1,196
              Amortization of deferred compensation                                             92             303
              Restructuring expense                                                          1,303           2,504
              Changes in assets and liabilities:
                    Accounts receivable                                                     11,678          20,749
                    Inventories                                                                599           7,315
                    Other current assets                                                    (1,453)         (3,357)
                    Other assets                                                               (19)            226
                    Accounts payable                                                        (1,768)         (4,536)
                    Accrued expenses                                                        (3,319)         (8,076)
                    Income taxes payable                                                    (1,268)              0
                                                                                      --------------  --------------
                     Net cash provided by operating activities                              18,381          24,221
                                                                                      --------------  --------------
  Cash flows from investing activities:
       Capital expenditures                                                                 (3,393)         (6,532)
       Sales of investments related to deferred compensation plan                                0           4,547
                                                                                      --------------  --------------
                     Net cash used in investing activities                                  (3,393)         (1,985)
                                                                                      --------------  --------------
  Cash flows from financing activities:
       Proceeds from issuance of long-term debt                                                  0             564
       Principal payments on long-term debt                                                 (1,569)        (16,678)
       Change in accounts payable-capital expenditures                                      (4,267)         (5,667)
       Dividends paid                                                                            0          (1,177)
       Proceeds from common stock issued                                                         0               7
                                                                                      --------------  --------------
                     Net cash used in financing activities                                  (5,836)        (22,951)
                                                                                      --------------  --------------
  
  Increase (decrease) in cash and cash investments                                           9,152            (715)
  
  Cash and cash investments at beginning of period                                           1,207           1,007
                                                                                      --------------  --------------
  
  Cash and cash investments at end of period                                      $         10,359             292
                                                                                      ==============  ==============
  </TABLE>
  <PAGE>
  
  
                      CULP, INC. FINANCIAL INFORMATION RELEASE
                                 FINANCIAL ANALYSIS
                                  JANUARY 27, 2002
  <TABLE>
  <CAPTION>
                                                         FISCAL 01                                 FISCAL 02
                                                       -------------   -----------------------------------------------   -------------
                                                            Q3             Q1            Q2            Q3         Q4       LTM (3)
                                                       -------------   -----------------------------------------------   -------------
  <S>                                                   <C>            <C>           <C>          <C>        <C>         <C>
  INVENTORIES
             Inventory turns                                 4.9            5.1           5.4           5.1
  
  RECEIVABLES
             Days sales in receivables                        48             51            47            43
             Percent current & less than 30
               days past due                               94.4%          91.9%         92.7%         96.0%
  
  WORKING CAPITAL
             Current ratio                                   3.0            2.8           2.8           3.2
             Working capital turnover (2)                    4.1            4.1           4.1           4.2
             Operating working capital (2)               $94,546        $86,586       $84,346       $84,233
  
  PROPERTY, PLANT & EQUIPMENT
             Depreciation rate                              7.5%           7.2%          7.1%          7.1%
             Percent property, plant &
               equipment are depreciated                   53.8%          56.2%         58.1%         59.0%
             Capital expenditures                         $8,050 (1)     $1,602          $686        $1,105
  
  PROFITABILITY
             Return on average total capital              (6.4%)         (2.7%)          3.7%          2.3%                    0.8%
             Return on average equity                    (17.6%)         (9.6%)          2.9%          0.6%                   (2.7%)
             Net income (loss) per share                 ($0.49)        ($0.26)         $0.08         $0.02                  ($0.30)
             Net income (loss) per share (diluted)       ($0.49)        ($0.26)         $0.08         $0.02                  ($0.30)
             Net income (loss) per share, excluding
                restructuring and related charges (5)    ($0.30)        ($0.12)         $0.09         $0.02                   $0.11
  
  LEVERAGE
             Total liabilities/equity                     149.1%         136.6%        136.8%        129.6%
             Funded debt/equity                            99.8%          93.1%         92.3%         91.7%
             Funded debt/capital employed                  50.0%          48.2%         48.0%         47.8%
             Funded debt                                $121,372       $110,652      $110,583      $110,087
             Funded debt/EBITDA (LTM) (4)                   4.28           4.26          4.26          3.64
  
  OTHER
             Book value per share                         $10.85         $10.59        $10.68        $10.62
             Employees at quarter end                      3,486          3,018         3,018         3,015
             Sales per employee (annualized)            $108,000       $113,000      $128,000      $120,523
             Capital employed                           $242,958       $229,461      $230,421      $230,999
             Effective income tax rate                     33.0%          34.0%         34.0%         34.0%
             EBITDA (4)                                   $2,536         $4,731        $8,315        $6,859                 $30,268
             EBITDA/net sales (4)                           2.6%           5.5%          8.6%          8.1%                    8.1%
  
    (1) Expenditures for entire year
    (2) Working capital for this calculation is accounts receivable, inventories and accounts payable.
    (3) LTM represents "Latest Twelve Months"
    (4) EBITDA includes earnings before interest, income taxes, depreciation, amortization,  all restructuring and related
        charges and certain non-cash charges, as defined by the company's credit agreement.
    (5) Excludes restructuring and related charges of $6.7 million ($4.5 million or $.41 per share diluted, after taxes)
         for the last twelve months.
  
  </TABLE>
  <PAGE>
                      CULP, INC. FINANCIAL INFORMATION RELEASE
                               SALES BY PRODUCT GROUP
  FOR THE THREE MONTHS AND NINE MONTHS ENDED JANUARY 27, 2002 AND JANUARY 28, 2001
                               (Amounts in thousands)
  
  <TABLE>
  <CAPTION>
                                                 THREE MONTHS ENDED (UNAUDITED)
                                   ------------------------------------------------------------
                                         Amounts                           Percent of Total Sales
                                     --------------------                  ----------------------
                                   January 27,  January 28,    % Over
  Product Group                       2002        2001         (Under)       2002        2001
  ------------------------------    ---------   ---------    ------------  ----------  ----------
  <S>                            <C>            <C>          <C>           <C>         <C>
  Upholstery Fabrics
      Culp Decorative Fabrics    $    35,878      40,955      (12.4) %       39.6 %      42.7 %
      Culp Velvets/Prints             28,648      28,631        0.1  %       31.6 %      29.9 %
      Culp Yarn                        1,318       2,711      (51.4) %        1.5 %       2.8 %
                                    ---------   ---------   ------------  ----------   ----------
                                      65,844      72,297       (8.9) %       72.7 %      75.4 %
  
  Mattress Ticking
      Culp Home Fashions              24,774      23,583        5.1  %       27.3 %      24.6 %
                                    ---------   ---------   ------------  ----------   ----------
  
                               * $    90,618      95,880       (5.5) %      100.0 %     100.0 %
                                    =========   =========   ============  ==========   ==========
  
  
  
                                                  NINE MONTHS ENDED (UNAUDITED)
                                   ---------------------------------------------------------------
  
                                         Amounts                           Percent of Total Sales
                                   --------------------                    -----------------------
                                   January 27,  January 28,   % Over
  Product Group                      2002          2001       (Under)          2002        2001
  ------------------------------   ---------    ---------    ------------  ----------   ----------
  Upholstery Fabrics
      Culp Decorative Fabrics   $   109,531      129,280       (15.3) %       40.1 %      41.9 %
      Culp Velvets/Prints            84,522       90,778        (6.9) %       30.8 %      29.4 %
      Culp Yarn                       3,816       10,164       (62.5) %        1.4 %       3.3 %
                                   ---------    ---------    ------------  ----------   ----------
                                    197,869      230,222       (14.1) %       72.4 %      74.6 %
  
  Mattress Ticking
      Culp Home Fashions             75,612       78,517        (3.7) %       27.6 %      25.4 %
                                   ---------    ---------    ------------  ----------   ----------
  
                              * $   273,481      308,739       (11.4) %      100.0 %     100.0 %
                                   =========    =========    ============  ==========   ==========
  
  </TABLE>
  
  * U.S.  sales were $79,539 and $77,360 for the third  quarter of fiscal 2002 and
  fiscal  2001,  respectively;  and  $233,617  and $246,672 for the nine months of
  fiscal 2002 and 2001,  respectively.  The percentage  increase in U.S. sales was
  2.8% for the third quarter and a decrease of 5.3% for the nine months.
  <PAGE>
  
                      CULP, INC. FINANCIAL INFORMATION RELEASE
                       INTERNATIONAL SALES BY GEOGRAPHIC AREA
  FOR THE THREE MONTHS AND NINE MONTHS ENDED JANUARY 27, 2002 AND JANUARY 28, 2001
                               (Amounts in thousands)
  
  <TABLE>
  <CAPTION>
                                               THREE MONTHS ENDED (UNAUDITED)
                             -------------------------------------------------------------
                                                                         Percent of Total
                                         Amounts                              Sales
                                  ---------------------                --------------------
                                 January 27,   January 28,  % Over
     Geographic Area               2002           2001      (Under)      2002       2001
  -----------------------       ----------     ---------    ---------  ---------  ---------
  <S>                           <C>             <C>         <C>         <C>        <C>
  North America (Excluding USA) $   6,613        8,226       (19.6)%     59.7 %     44.4 %
  Europe                              472        1,669       (71.7)%      4.3 %      9.0 %
  Middle East                         598        3,924       (84.8)%      5.4 %     21.2 %
  Far East & Asia                   2,924        4,277       (31.6)%     26.4 %     23.1 %
  South America                       155          147         5.6 %      1.4 %      0.8 %
  All other areas                     318          277        14.7 %      2.9 %      1.5 %
                                ----------    ---------     ---------  ---------  ---------
  
                                $  11,079       18,520       (40.2)%    100.0 %    100.0 %
                                ==========    =========     =========  =========  =========
  
  
  
  
                                                   NINE MONTHS ENDED (UNAUDITED)
                                ------------------------------------------------------
                                                                         Percent of Total
                                       Amounts                                Sales
                                ---------------------                  --------------------
                                January 27,  January 28,    % Over
  
  
     Geographic Area               2002          2001       (Under)       2002       2001
  -----------------------       ----------    ---------    ---------   ---------  ---------
  North America (Excluding USA) $  23,023      26,177       (12.0)%      57.9 %     42.2 %
  Europe                            2,115       4,928       (57.1)%       5.3 %      7.9 %
  Middle East                       4,804      14,456       (66.8)%      12.1 %     23.3 %
  Far East & Asia                   8,414      13,103       (35.8)%      21.1 %     21.1 %
  South America                       490         732       (33.1)%       1.2 %      1.2 %
  All other areas                   1,018       2,671       (61.9)%       2.6 %      4.3 %
                                ----------   ---------     ---------   ---------  ---------
  
                                $  39,864      62,067       (35.8)%     100.0 %    100.0 %
                                ==========   =========     =========   =========  =========
  
  </TABLE>
  
  International  sales,  and the  percentage of total sales,  for each of the last
  five fiscal years follows:  fiscal  1997-$101,571  (25%);  fiscal  1998-$137,223
  (29%);  fiscal  1999-$113,354  (23%);  fiscal  2000-$111,104  (23%);  and fiscal
  2001-$77,824 (19%).  International sales for the third quarter represented 12.2%
  and 19.3%  for 2002 and 2001,  respectively.  Year-to-date  international  sales
  represented 14.6% and 20.1% of total sales for 2002 and 2001, respectively.
  
  <PAGE>
  
                      CULP, INC. FINANCIAL INFORMATION RELEASE
                                 FINANCIAL NARRATIVE
      for the three and nine months ended January 27, 2002 and January 28, 2001
  
  
  INCOME STATEMENT COMMENTS
  
       GENERAL - For the third quarter, net sales decreased 5.5% to $90.6 million;
  and the company  reported  net income of $170,000,  or $0.02 per share  diluted,
  (based  on  11,304,000  average  shares  outstanding)  versus a net loss of $5.5
  million,  or $0.49  per  share  diluted,  (based on  11,211,000  average  shares
  outstanding)  in the third quarter of fiscal 2001.  For the first nine months of
  fiscal  2002,  net sales  decreased  11.4% to $273.5  million,  and the  company
  reported  a net loss  $1.9  million,  or  $0.17  per  share  diluted  (based  on
  11,221,000 average shares  outstanding),  versus a net loss of $6.9 million,  or
  $0.61 per share diluted (based on 11,209,000 average shares outstanding), a year
  ago. As described below in "SG&A  EXPENSES," a significant  factor affecting the
  third  quarter and the first nine months of fiscal 2002 was bad debt  expense of
  $703,000   and  $2.9   million,   respectively   ($0.04  and  $0.17  per  share,
  respectively,  on an after-tax  basis).  This  compares with bad debt expense of
  $31,600  and  $188,700  for the third  quarter  and first  nine  months of 2001,
  respectively.  Excluding  restructuring  and related  charges,  earnings for the
  third quarter of 2002 were $170,000,  or $0.02 per share  diluted,  versus a net
  loss of $3.4 million, or $0.30 per share diluted, for the third quarter of 2001.
  Excluding  restructuring  and related charges,  the net loss for the nine months
  was $205,000,  or $0.02 per share diluted,  for 2002, and $4.7 million, or $0.42
  per share diluted, for 2001.
  
       The company's  long-term,  strategic plan encompasses  several  competitive
  initiatives:
  
       Broad Product  Offering - continuing to market one of the broadest  product
       lines in  upholstery  fabrics and mattress  ticking.  Through its extensive
       manufacturing  capabilities,  the company competes in most major categories
       except leather;
  
       Diverse  Customer Base - maintaining a diverse  customer  base. The company
       has  long-standing  relationships  with  most  major  upholstery  furniture
       manufacturers.  Ownership of resources in the home furnishings  industry is
       becoming increasingly  concentrated,  and the company has successfully been
       able to  capitalize  on its size and product  breadth to supply more of the
       needs of existing customers.  Culp is continuing to pursue opportunities in
       other  end-use  markets  in  addition  to U.S.  residential  furniture  and
       bedding,   such  as  international,   commercial   furniture  and  juvenile
       furniture;
  
       Design  Innovation  -  supplying  fabrics  that are  fashionable  and match
       current consumer preferences.  The company's principal design resources are
       consolidated  in a  single  facility  that has  advanced  computer-assisted
       design  systems and promotes  sharing of innovative  designs across product
       lines.  Culp encourages  active  customer  involvement in the entire design
       process; and
  
       Vertical  Integration - operating as a vertically  integrated  manufacturer
       and  taking  advantage  of  economies,  quality,  supply  availability  and
       efficiencies  that can be gained by producing  the raw material  components
       that are used in the manufacture of its products.
  
  RESTRUCTURING   ACTIONS  -  During   fiscal  2001,   the  company   initiated  a
  restructuring plan intended to lower operating expenses,  increase manufacturing
  utilization,  raise  productivity and position the company to operate profitably
  within  the  current  environment  of  reduced  demand.  The plan  involved  the
  consolidation  of  certain  fabric   manufacturing   capacity  within  the  Culp
  Decorative   Fabrics   division,   closing  one  of  the  company's   four  yarn
  manufacturing  plants within Culp Yarn,  and an extensive  reduction in selling,
  general  and  administrative  expenses.  The  company  also  recognized  certain
  inventory  write-downs  related  to  the  closed  facilities  as  part  of  this
  initiative.  While  the  physical  relocation  and  movement  of  machinery  and
  equipment involved in the restructuring has been essentially completed,  and the
  related fixed  manufacturing  cost savings achieved,  the company still has much
  improvement to make to reach targeted  productivity  and variance  levels in the
  Culp Decorative Fabrics division. The total charge from the restructuring,  cost
  reduction  and inventory  write-down  initiatives  was $9.9 million,  about $3.6
  million of which represented non-cash items. The company recognized $7.4 million
  of restructuring and related charges during fiscal 2001, and $2.5 million in the
  first nine months of fiscal  2002.  No  restructuring  and related  charges were
  recorded in the third quarter of fiscal 2002.  Restructuring and related charges
  for fiscal 2002 were  recorded as $1.3  million in the line item  "Restructuring
  expense"  and $1.2  million in "Cost of sales." The costs  reflected in "Cost of
  sales" are principally related to the relocation of manufacturing equipment. The
  company plans to realize annualized cost reductions of at least $14 million when
  the full benefit of this program is  realized.  Management  believes the company
  now  has a  sound  footprint  of  efficient,  world-class  facilities  utilizing
  state-of-the-art  equipment  that  position  Culp  well to meet the  demands  by
  manufacturers for shorter lead times,  reliable delivery schedules and appealing
  designs.
  
       NET SALES - Compared with the year-earlier  period, the company's net sales
  declined  only 5.5% for the third  quarter of fiscal 2002,  versus 13.1% for the
  second  quarter of fiscal 2002,  15.1% for the first quarter of fiscal 2002, and
  21.9% for the fourth quarter of fiscal 2001. This quarterly trend indicates that
  the sales  decline  bottomed in the fourth  quarter of fiscal  2001.  Based upon
  current business conditions, the company is optimistic that this improving sales
  trend can continue.
  
  Compared  with fiscal 2001,  upholstery  fabric  sales for the third  quarter of
  fiscal 2002  decreased  8.9% to $65.8  million,  and  decreased  14.1% to $197.9
  million  for the first nine  months of fiscal  2002 (See Sales by Product  Group
  schedule on Page 5).  Reflecting a continuation of the trends  identified in the
  first and second  quarter,  the  upholstery  fabric sales  decrease in the third
  quarter  represents:   (1)  a  sharp  reduction  (42.1%,  or  $5.9  million)  in
  international  sales,  principally  reflecting the high value of the U.S. dollar
  relative to  international  currencies;  (2) a decrease  in external  yarn sales
  (51.4% or $1.4 million) due to the company's internal consumption of more of the
  yarn  division's  output and exit from  certain yarn  businesses  as part of the
  restructuring  plan; and (3) a decrease in sales to contract furniture customers
  ($1.1   million).   A  significant   factor   contributing  to  the  decline  in
  international  sales is the persistent  weakness in demand for the company's wet
  print flock fabrics, which has negatively impacted the profitability of the Culp
  Velvets/Prints  product  group.  Management  continues  to  assess  its plan for
  addressing  this  underperforming   product  line.  Sales  to  U.S.  residential
  furniture  manufacturers  in the third quarter of fiscal 2002  increased 3.9% or
  $2.0  million  compared  with the third  quarter  of fiscal  2001.  The  company
  believes  that it is improving its market share in the U.S.  residential  market
  because of well-received  fabric  placements in the Culp Decorative  Fabrics and
  Culp Velvets/Prints product groups.
  
  Compared  with fiscal  2001,  mattress  ticking  sales for the third  quarter of
  fiscal 2002 increased 5.1% to $24.8 million, and decreased 3.7% to $75.6 million
  for the first nine months of fiscal  2002.  The  year-to-date  sales  decline in
  mattress ticking also reflects a strong decrease in international  sales.  Sales
  to U.S.  bedding  manufacturers  increased  14.1% to $21.8  million in the third
  quarter of fiscal  2002,  reversing a trend of sales  decreases in the first two
  quarters,  and  increased  1.8% to $66.0  million  for the first nine  months of
  fiscal 2002.  The company  believes that it is gaining  market share in the U.S.
  bedding  market  because of well  received  ticking  placements in the Culp Home
  Fashions product group.
  
       GROSS PROFIT - Gross profit increased 37.4% for the third quarter of fiscal
  2002 compared with the year-earlier  period and increased as a percentage of net
  sales to 14.9% from 10.3%. The increase in gross profit percentage  reflects the
  benefit of the  restructuring  steps and other  actions  that have been taken to
  reduce expenses.  The company realized  significant  gross profit increases over
  the third quarter of last year in Culp Home Fashions  (mattress  ticking),  Culp
  Velvets/Prints  and Culp Yarn.  During the quarter the company  began to realize
  lower variances and improved  manufacturing  productivity in the Culp Decorative
  Fabrics  product  group,  which  achieved  higher gross  margins even on a sales
  decline of 12.4%.  The company  expects this  positive  trend to continue in the
  fourth quarter.
  
       SG&A EXPENSES - Reflecting  the impact of the  company's  actions to reduce
  expenses,  SG&A  expenses for the third  quarter  declined  11.6% from the prior
  year. SG&A expenses for the third quarter  included bad debt expense of $703,000
  compared with $31,600 in the  year-earlier  period.  Without the  additional bad
  debt expense,  SG&A expenses  were reduced by $2.1 million,  or 17.2%,  and were
  11.4% of net sales.  For the first nine months of fiscal 2002,  bad debt expense
  totaled $2.9 million. Without the additional bad debt expense, SG&A expenses for
  the first nine months were reduced by $8.9 million,  or 22.3%, and were 11.3% of
  net sales.  The increase in bad debt expense from a year ago reflects  primarily
  write-offs of one bedding and two residential  furniture customers as well as an
  increase in the bad debt reserve.
  
       INTEREST  EXPENSE - Interest  expense for the third quarter  declined 18.1%
  from  $2.2  million  to  $1.8  million  due to  significantly  lower  borrowings
  outstanding, offset somewhat by a substantial increase in interest rates.
  
       OTHER EXPENSE (INCOME),  NET - Other expense (income) for the third quarter
  of fiscal 2002 totaled  $435,000  compared with $811,000 in the prior year.  The
  decrease  reflects  primarily  the  elimination  of  the  nonqualified  deferred
  compensation  plan  terminated in January 2001 as a part of the  company's  cost
  reduction initiatives.
  
       INCOME TAXES - The  effective  tax rate for the first nine months of fiscal
  2002 was 34.0% compared with 33.0% for the year-earlier period
  
       EBITDA - EBITDA for the third  quarter  of fiscal  2002  increased  to $6.9
  million  compared  with $2.5  million  for the third  quarter of last year,  and
  increased  to $19.9  million for the first nine  months of fiscal 2002  compared
  with $16.0 million in the year-earlier  period.  EBITDA includes earnings before
  interest,  income  taxes,  depreciation,  amortization,  all  restructuring  and
  related charges and certain non-cash charges, as defined by the company's credit
  agreement.
  
  
  BALANCE SHEET COMMENTS
  
       CASH AND CASH  INVESTMENTS  - Cash and cash  investments  as of January 27,
  2002 increased to $10.4 million from $1.2 million at fiscal year end, reflecting
  cash flow from  operations  of $18.4 million for the first nine months of fiscal
  2002, which exceeded capital  expenditures of $3.4 million and debt repayment of
  $5.8 million.
  
       WORKING  CAPITAL - Accounts  receivable  as of January 27,  2002  decreased
  15.2% from the  year-earlier  level, due principally to the decline in sales and
  the company's focus on sustaining a liquid working capital position.  Days sales
  outstanding totaled 43 days at January 27, 2002 compared with 48 a year ago. The
  aging of accounts  receivable  was 96.0%  current and less than 30 days past due
  versus 94.4% a year ago. Inventories at the close of the third quarter decreased
  11.6% from a year ago. Inventory turns for the third quarter were 5.1 versus 4.9
  for the year-earlier  period.  Operating working capital  (comprised of accounts
  receivable,  inventory  and accounts  payable) was $84.2  million at January 27,
  2002, down from $94.5 million a year ago.
  
       PROPERTY,  PLANT AND  EQUIPMENT - Capital  spending  for the nine months of
  fiscal  2002  decreased  to $3.4  million,  compared  with $6.5  million  in the
  year-earlier period. The company's capital spending for fiscal 2002 is projected
  to be $4.5 million,  compared with $8.1 million in fiscal 2001. Depreciation for
  the first nine months of fiscal 2002 totaled $13.2 million.
  
       LONG-TERM  DEBT - The company has reduced  funded debt by $11.3  million or
  9.3%  from  the end of the  third  quarter  of last  year.  Funded  debt  equals
  long-term  debt plus  current  maturities.  Funded  debt was  $110.1  million at
  January 27, 2002,  compared with $121.4 million a year ago and $111.7 million at
  fiscal  year  end.  Compared  with  50.0%  a  year  ago,  the  company's  funded
  debt-to-capital ratio was 47.8% at January 27, 2002, its lowest level since July
  1997.  During fiscal 2001,  the company  amended its credit  facility to include
  terms that restrict the payment of cash dividends and share  repurchases at this
  time,  limit capital  expenditures,  increase the interest rate on its revolving
  credit facility and increase the letter of credit fees on its industrial revenue
  bonds.  This  amended  credit  facility  provides for a loan  commitment  of $20
  million.  The company had outstanding  borrowings of approximately  $1.0 million
  under the facility at the end of the third  quarter of fiscal 2002.  The company
  was in compliance  with its loan  agreements as of January 27, 2002.  Other than
  the credit  facility,  required  principal  payments under the  respective  loan
  agreements during the remainder of fiscal 2002 and during fiscal 2003 total $1.0
  million and $2.2 million, respectively.
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text: --------------------------------------------------------------------------------
  
                        SECURITIES AND EXCHANGE COMMISSION
                              Washington, D.C. 20549
  
                                     ---------
  
                                     Form 8-K
  
                                  CURRENT REPORT
  
                 Pursuant to Section 13 or 15(d) of the Securities
                               Exchange Act of 1934
  
                                   -------------
  
         Date of Report (Date of earliest event reported) February 19, 2002
  
                                     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)
  
  --------------------------------------------------------------------------------
  Item 5. Other Events
  
  See  attached  Press  Release (3 pages)  and  Financial  Information  Release (9
  pages),  both dated February 19, 2002,  related to the fiscal 2002 third quarter
  ended January 27, 2002.
  
  Forward  Looking  Information.  This  Report  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.  Such  statements  are  inherently  subject  to risks  and  uncertainties.
  Forward-looking    statements   are   statements   that   include   projections,
  expectations  or beliefs  about future  events or results or  otherwise  are not
  statements  of historical  fact.  Such  statements  are often  characterized  by
  qualifying words such as "expect,"  "believe,"  "estimate," "plan" and "project"
  and their  derivatives.  Factors that could  influence the matters  discussed in
  such  statements  include  the level of  housing  starts  and sales of  existing
  homes,  consumer  confidence,  trends in disposable income, and general economic
  conditions.  Decreases  in  these  economic  indicators  could  have a  negative
  effect  on  the  company's  business  and  prospects.   Likewise,  increases  in
  interest  rates,  particularly  home mortgage  rates,  and increases in consumer
  debt or the general  rate of  inflation,  could  affect the  company  adversely.
  Because of the  significant  percentage  of the  company's  sales  derived  from
  international  shipments,  strengthening  of  the U.  S.  dollar  against  other
  currencies  could make the company's  products less  competitive on the basis of
  price  in  markets  outside  the  United  States.  Additionally,   economic  and
  political  instability  in  international  areas could affect the demand for the
  company's products.
  
                                     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:   February 19, 2002
           -----------------
  FOR IMMEDIATE RELEASE
  
              CULP REPORTS CONTINUED EARNINGS RECOVERY IN THIRD QUARTER
                               ----------------------
            CASH POSITION UP FROM A YEAR AGO DUE TO RESTRUCTURING ACTIONS
                            AND BALANCE SHEET MANAGEMENT
  
  HIGH POINT, N. C. (Feb. 19, 2002) -- Culp,  Inc. (NYSE:  CFI) today reported net
  income  for  the  third  quarter  of  its  fiscal  2002  year  compared  with  a
  significant  loss a year  ago and  indicated  that  it has  achieved  a  further
  strengthening in its financial position.
  
        For the three months ended  January 27, 2002,  Culp  reported net sales of
  $90.6  million  compared  with  $95.9  million a year ago.  Net  income  for the
  third quarter of fiscal 2002 totaled  $170,000,  or $0.02 per share diluted.  In
  the year-earlier  period,  the Company  reported a net loss of $5.5 million,  or
  $0.49 per share diluted.  Excluding  restructuring and related charges,  the net
  loss in the  year-earlier  period was $3.4 million,  or $0.30 per share diluted.
  Culp  indicated  that bad debt  expense  for the third  quarter  of fiscal  2002
  totaled   $703,000   ($0.04  per  share  after  taxes)  versus  $32,000  in  the
  year-earlier period.
  
        Net  sales for the  first  nine  months  of  fiscal  2002  totaled  $273.5
  million compared with  $308.7 million  in the year-earlier  period.  The Company
  reported  a net loss for the first  nine  months of $1.9  million,  or $0.17 per
  share  diluted,  compared  with a net loss of $6.9  million,  or $0.61 per share
  diluted,  in  the  year-earlier  period.  Excluding  restructuring  and  related
  charges,  the  company  reported  a net loss of  $205,000,  or $0.02  per  share
  diluted,  for the  first  nine  months  of  fiscal  2002  and a net loss of $4.7
  million,  or $0.42 per share diluted,  for the year-earlier  period. The company
  indicated  that bad debt  expense  for the first  nine  months  of  fiscal  2002
  totaled  $2.9  million  ($0.17 per share  after  taxes)  versus  $189,000 in the
  year-earlier period.
  
       "We are pleased with the outstanding  year-to-year  improvement represented
  by our third quarter  results,"  remarked  Robert G. Culp,  III, chief executive
  officer.  "Culp's ability to achieve a profit during the most recent quarter was
  due to operational improvements, especially from our mattress ticking group, and
  to the  restructuring  actions  and other  steps we have taken to reduce  costs.
  Because of scheduled  holiday plant  closings,  the third fiscal  quarter is not
  usually the strongest  period of the year for our business.  Our  expectation of
  this  seasonal  softness in sales put an even  greater  emphasis  on  containing
  expenses  during the quarter and  presents the profit for the three months in an
  even  stronger  light.  The  performance  for the third quarter  reinforces  our
  optimism  about meeting our  previously  stated target of reporting a profit for
  fiscal 2002 as a whole,  excluding  restructuring  charges,  that will provide a
  solid platform for further improvement in fiscal 2003.
  
       Culp added, "The relative strength of the dollar continues to impact demand
  for our fabrics and ticking outside the United States.  International sales were
  down $7.4 million, or 40%, from a year ago and represented only 12% of our total
  sales for the third quarter,  down from 19% in the year-earlier  period.  Fabric
  shipments  to customers  within the United  States ran counter to this trend and
  were up $3.5 million,  or 5%, from a year ago during the third  quarter.  We are
  very  encouraged  by that  year-to-year  comparison  that clearly  evidences our
  success  in gaining  market  share.  An  important  aspect of our  restructuring
  actions  has been to  streamline  our  operations  and  provide  customers  with
  improved service.  Manufacturers of upholstered  furniture and bedding are under
  mounting  pressure to lower costs,  and we believe that Culp has never been in a
  stronger  position  in terms of  operating  efficiency  and  successful  product
  offerings to meet their needs."
  
       Culp added, "One of our important financial goals is to maximize cash flow.
  We achieved  sufficient  cash from  operations  through the first nine months to
  increase our cash position to $10.4  million at the close of the third  quarter,
  up  significantly  from $1.2 million at the end of fiscal  2001.  Our efforts to
  build liquidity  include tight management of working capital.  Through the first
  nine months, we have achieved a meaningful decline in accounts  receivable,  not
  only in absolute dollars but also in terms of average days outstanding. Our debt
  of $110.1 million at the close of the quarter was down $11.3 million from a year
  ago. Our capital  expenditures  for fiscal 2002 remain targeted at approximately
  $4.5 million, compared with $8.1 million in fiscal 2001."
  
        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. Such statements are inherently
  subject to risks and  uncertainties.  Forward-looking  statements are statements
  that include projections, expectations or beliefs about future events or results
  or otherwise are not statements of historical  fact.  Such  statements are often
  characterized  by  qualifying  words such as  "expect,"  "believe,"  "estimate,"
  "plan" and "project"  and their  derivatives.  Factors that could  influence the
  matters  discussed in such  statements  include the level of housing  starts and
  sales of existing homes,  consumer  confidence,  trends in disposable income and
  general economic conditions. Decreases in these economic indicators could have a
  negative effect on the Company's business and prospects.  Likewise, increases in
  interest rates, particularly home mortgage rates, and increases in consumer debt
  or the general rate of inflation, could affect the Company adversely. Because of
  the  significant  percentage of the Company's  sales derived from  international
  shipments,  strengthening of the U.S. dollar against other currencies could make
  the Company's products less competitive on the basis of price in markets outside
  the  United  States.   Additionally,   economic  and  political  instability  in
  international areas could affect the demand for the Company's products.
  
                                     CULP, INC.
                           Condensed Financial Highlights
                                     (Unaudited)
  
                                                        Three Months Ended
  -------------------------------------------------------------------------------
                                                   January 27,       January 28,
                                                      2002              2001
                                                 --------------    --------------
  Net sales                                      $   90,618,000    $  95,880,000
  Net income (loss)                              $      170,000    $  (5,470,000)
  Net income (loss) per share:
    Basic                                        $         0.02    $       (0.49)
    Diluted                                      $         0.02    $       (0.49)
  Net income (loss) per diluted share, excluding
   restructuring and related charges*            $         0.02    $       (0.30)
  Average shares outstanding:
    Basic                                            11,211,000       11,211,000
    Diluted                                          11,304,000       11,211,000
  
                                                         Nine Months Ended
  --------------------------------------------------------------------------------
                                                    January 27,       January 28,
                                                       2002              2001
                                                ---------------   ---------------
  Net sales                                      $  273,481,000    $ 308,739,000
  Net (loss)                                     $   (1,855,000)   $  (6,884,000)
  Net (loss) per share:
     Basic                                       $        (0.17)   $       (0.61)
     Diluted                                     $        (0.17)   $       (0.61)
  Net (loss) per diluted share, excluding
  restructuring and related charges*             $        (0.02)   $       (0.42)
  Average shares outstanding:
     Basic                                           11,221,000       11,209,000
     Diluted                                         11,221,000       11,209,000
  
  * Excludes  restructuring  and related  charges of $2.5 million ($1.6 million or
    $0.15 per share  diluted,  after  taxes) for the first nine months of 2002 and
    $3.2 million  ($2.1 million or $0.19 per share  diluted,  after taxes) for the
    third quarter and first nine months of fiscal 2001.
  
                                         -END-
  CULP, INC. FINANCIAL INFORMATION RELEASE
                      CONSOLIDATED STATEMENTS OF INCOME (LOSS)
  FOR THE THREE MONTHS AND NINE MONTHS ENDED JANUARY 27, 2002 AND JANUARY 28, 2001
                  (Amounts in Thousands, Except for Per Share Data)
  THREE MONTHS ENDED (UNAUDITED)
                                               --------------------------------------------------------------------------------
                                                          Amounts                                       Percent of Sales
                                               ------------------------------                     -----------------------------
                                                January 27,     January 28,       % Over
                                                   2002            2001           (Under)            2002            2001
                                               --------------  --------------  --------------     --------------  -------------
  Net sales                                 $         90,618          95,880         (5.5)%            100.0 %        100.0 %
  Cost of sales                                       77,110          86,047        (10.4)%             85.1 %         89.7 %
                                               --------------  --------------  --------------     --------------  -------------
           Gross profit                               13,508           9,833         37.4 %             14.9 %         10.3 %
  
  Selling, general and
    administrative expenses   (1)                     11,038          12,480        (11.6)%             12.2 %         13.0 %
  Restructuring expense                                    0           2,504          0.0 %              0.0 %          2.6 %
                                               --------------  --------------  --------------     --------------  -------------
           Income  from operations                     2,470          (5,151)       148.0 %              2.7 %         (5.4)%
  
  Interest expense                                     1,820           2,222        (18.1)%              2.0 %          2.3 %
  Interest income                                        (42)            (18)       133.3 %             (0.0)%         (0.0)%
  Other expense (income), net                            435             811        (46.4)%              0.5 %          0.8 %
                                               --------------  --------------  --------------     --------------  -------------
           Income (loss) before income taxes             257          (8,166)       103.1 %              0.3 %         (8.5)%
  
  Income taxes  (2)                                       87          (2,696)       103.2 %             34.0 %         33.0 %
                                               --------------  --------------  --------------     --------------  -------------
           Net income (loss)                $            170          (5,470)       103.1 %              0.2 %         (5.7)%
                                               ==============  ==============  ==============     ==============  =============
  
  Net income per share                                 $0.02          ($0.49)       104.1 %
  Net income per share, assuming dilution              $0.02          ($0.49)       104.1 %
  Net income per share, excluding restructuring
     and related charges  (3)                          $0.02          ($0.30)       106.7 %
  Average shares outstanding                          11,221          11,211          0.1 %
  Average shares outstanding, assuming dilution       11,304          11,211          0.8 %
  
                                                                        NINE MONTHS ENDED (UNAUDITED)
                                               --------------------------------------------------------------------------------
                                                          Amounts                                       Percent of Sales
                                               ------------------------------                     -----------------------------
                                                January 27,     January 28,       % Over
                                                   2002            2001           (Under)            2002            2001
                                               --------------  --------------  --------------     --------------  -------------
  Net sales                                 $        273,481         308,739        (11.4)%            100.0 %        100.0 %
  Cost of sales                                      233,642         267,845        (12.8)%             85.4 %         86.8 %
                                               --------------  --------------  --------------     --------------  -------------
           Gross profit                               39,839          40,894         (2.6)%             14.6 %         13.2 %
  
  Selling, general and
    administrative expenses (1)                       33,823          39,749        (14.9)%             12.4 %         12.9 %
  Restructuring expense                                1,303           2,504        (48.0)%              0.5 %          0.8 %
                                               --------------  --------------  --------------     --------------  -------------
                                                       4,713          (1,359)      (446.8)%              1.7 %         (0.4)%
  
  Interest expense                                     5,851           6,830        (14.3)%              2.1 %          2.2 %
  Interest income                                        (99)            (40)       147.5 %             (0.0)%         (0.0)%
  Other expense (income), net                          1,772           2,127        (16.7)%              0.6 %          0.7 %
                                               --------------  --------------  --------------     --------------  -------------
                                                      (2,811)        (10,276)        72.6 %             (1.0)%         (3.3)%
  
  Income taxes  (2)                                     (956)         (3,392)        71.8 %             34.0 %         33.0 %
                                               --------------  --------------  --------------     --------------  -------------
           Net loss                         $         (1,855)         (6,884)        73.1 %             (0.7)%         (2.2)%
                                               ==============  ==============  ==============     ==============  =============
  
  Net loss per share                                  ($0.17)         ($0.61)        72.1 %
  Net loss per share, assuming dilution               ($0.17)         ($0.61)        72.1 %
  Net loss per share, excluding restructuring
     and related charges  (3)                         ($0.02)         ($0.42)        95.2 %
  Average shares outstanding                          11,221          11,209          0.1 %
  Average shares outstanding, assuming dilution       11,221          11,209          0.1 %
  
  (1) Includes bad debt expense of $703,000 ($464,000 or $0.04 per share diluted, after taxes) and  $31,600 for the third
      quarter of fiscal 2002 and fiscal 2001, respectively;  and $2,928,000 ($1,932,000 or $0.17 per share diluted, after
      taxes) and $188,700 for the nine months of fiscal 2002 and 2001, respectively.
  (2) Percent of sales column is calculated as a % of income (loss) before income taxes.
  (3) Excludes  restructuring  and related  charges of $0 and $3.2  million  ($2.1 million or $.19 per share
      diluted,  after taxes) for the third quarter of fiscal 2002 and fiscal 2001, respectively; and $2.5 million
      ($1.6 million or $.15 per share  diluted,  after taxes) and $3.2 million  ($2.1  million or $.19 per share
      diluted, after taxes) for the nine months of fiscal 2002 and 2001, respectively.
  CULP, INC. FINANCIAL INFORMATION RELEASE
                             CONSOLIDATED BALANCE SHEETS
                 JANUARY 27, 2002, JANUARY 28, 2001, APRIL 29, 2001
                                      Unaudited
                               (Amounts in Thousands)
  Amounts                          Increase
                                                    ---------------------------------               (Decrease)
                                                     January 27,         January 28,   ---------------------------------   * April 29,
                                                        2002                 2001            Amount          Percent           2001
                                                    ---------------   ---------------  ---------------     -------------  ------------
  Current assets
         Cash and cash investments                $         10,359               292          10,067       3,447.6 %           1,207
         Accounts receivable                                46,171            54,474          (8,303)        (15.2)%          57,849
         Inventories                                        59,398            67,156          (7,758)        (11.6)%          59,997
         Other current assets                                9,323            13,706          (4,383)        (32.0)%           7,856
                                                    ---------------   ---------------  ---------------     -------------  ------------
                     Total current assets                  125,251           135,628         (10,377)         (7.7)%         126,909
  
  Property, plant & equipment, net                         102,457           116,207         (13,750)        (11.8)%         112,322
  Goodwill                                                  47,432            48,827          (1,395)         (2.9)%          48,478
  Other assets                                               1,641             2,256            (615)        (27.3)%           1,871
                                                    ---------------   ---------------  ---------------     -------------  ------------
  
                     Total assets                 $        276,781           302,918         (26,137)         (8.6)%         289,580
                                                    ===============   ===============  ===============     =============  ============
  
  Current liabilities
         Current maturities of long-term debt    $           3,127             2,159             968          44.8 %           2,488
         Accounts payable                                   21,336            27,084          (5,748)        (21.2)%          27,371
         Accrued expenses                                   15,015            15,417            (402)         (2.6)%          17,153
         Income taxes payable                                    0                 0               0           0.0 %           1,268
                                                    ---------------   ---------------  ---------------     -------------  ------------
                     Total current liabilities              39,478            44,660          (5,182)        (11.6)%          48,280
  
  Long-term debt                                           106,960           119,213         (12,253)        (10.3)%         109,168
  
  Deferred income taxes                                     10,330            17,459          (7,129)        (40.8)%          10,330
                                                    ---------------   ---------------  ---------------     -------------  ------------
                     Total liabilities                     156,768           181,332         (24,564)        (13.5)%         167,778
  
  Shareholders' equity                                     120,013           121,586          (1,573)         (1.3)%         121,802
                                                   ---------------   ---------------  ---------------     -------------  ------------
  
                     Total liabilities and
                     shareholders' equity         $        276,781           302,918         (26,137)         (8.6)%         289,580
                                                    ===============   ===============  ===============     =============  ============
  
  Shares outstanding                                        11,221            11,211              10           0.1 %          11,221
                                                    ===============   ===============  ===============     =============  ============
  * Derived from audited financial statements.
  CULP, INC. FINANCIAL INFORMATION RELEASE
                        CONSOLIDATED STATEMENTS OF CASH FLOWS
           FOR THE NINE MONTHS ENDED JANUARY 27, 2002 AND JANUARY 28, 2001
                                      Unaudited
                               (Amounts in Thousands)
  NINE MONTHS ENDED
                                                                                      ------------------------------
                                                                                                 Amounts
                                                                                      ------------------------------
                                                                                       January 27,     January 28,
                                                                                          2002            2001
                                                                                      --------------  --------------
  Cash flows from operating activities:
       Net loss                                                                   $         (1,855)         (6,884)
       Adjustments to reconcile net loss to net cash
          provided by operating activities:
              Depreciation                                                                  13,214          14,781
              Amortization of intangible and other assets                                    1,177           1,196
              Amortization of deferred compensation                                             92             303
              Restructuring expense                                                          1,303           2,504
              Changes in assets and liabilities:
                    Accounts receivable                                                     11,678          20,749
                    Inventories                                                                599           7,315
                    Other current assets                                                    (1,453)         (3,357)
                    Other assets                                                               (19)            226
                    Accounts payable                                                        (1,768)         (4,536)
                    Accrued expenses                                                        (3,319)         (8,076)
                    Income taxes payable                                                    (1,268)              0
                                                                                      --------------  --------------
                     Net cash provided by operating activities                              18,381          24,221
                                                                                      --------------  --------------
  Cash flows from investing activities:
       Capital expenditures                                                                 (3,393)         (6,532)
       Sales of investments related to deferred compensation plan                                0           4,547
                                                                                      --------------  --------------
                     Net cash used in investing activities                                  (3,393)         (1,985)
                                                                                      --------------  --------------
  Cash flows from financing activities:
       Proceeds from issuance of long-term debt                                                  0             564
       Principal payments on long-term debt                                                 (1,569)        (16,678)
       Change in accounts payable-capital expenditures                                      (4,267)         (5,667)
       Dividends paid                                                                            0          (1,177)
       Proceeds from common stock issued                                                         0               7
                                                                                      --------------  --------------
                     Net cash used in financing activities                                  (5,836)        (22,951)
                                                                                      --------------  --------------
  
  Increase (decrease) in cash and cash investments                                           9,152            (715)
  
  Cash and cash investments at beginning of period                                           1,207           1,007
                                                                                      --------------  --------------
  
  Cash and cash investments at end of period                                      $         10,359             292
                                                                                      ==============  ==============
  CULP, INC. FINANCIAL INFORMATION RELEASE
                                 FINANCIAL ANALYSIS
                                  JANUARY 27, 2002
  FISCAL 01                                 FISCAL 02
                                                       -------------   -----------------------------------------------   -------------
                                                            Q3             Q1            Q2            Q3         Q4       LTM (3)
                                                       -------------   -----------------------------------------------   -------------
  INVENTORIES
             Inventory turns                                 4.9            5.1           5.4           5.1
  
  RECEIVABLES
             Days sales in receivables                        48             51            47            43
             Percent current & less than 30
               days past due                               94.4%          91.9%         92.7%         96.0%
  
  WORKING CAPITAL
             Current ratio                                   3.0            2.8           2.8           3.2
             Working capital turnover (2)                    4.1            4.1           4.1           4.2
             Operating working capital (2)               $94,546        $86,586       $84,346       $84,233
  
  PROPERTY, PLANT & EQUIPMENT
             Depreciation rate                              7.5%           7.2%          7.1%          7.1%
             Percent property, plant &
               equipment are depreciated                   53.8%          56.2%         58.1%         59.0%
             Capital expenditures                         $8,050 (1)     $1,602          $686        $1,105
  
  PROFITABILITY
             Return on average total capital              (6.4%)         (2.7%)          3.7%          2.3%                    0.8%
             Return on average equity                    (17.6%)         (9.6%)          2.9%          0.6%                   (2.7%)
             Net income (loss) per share                 ($0.49)        ($0.26)         $0.08         $0.02                  ($0.30)
             Net income (loss) per share (diluted)       ($0.49)        ($0.26)         $0.08         $0.02                  ($0.30)
             Net income (loss) per share, excluding
                restructuring and related charges (5)    ($0.30)        ($0.12)         $0.09         $0.02                   $0.11
  
  LEVERAGE
             Total liabilities/equity                     149.1%         136.6%        136.8%        129.6%
             Funded debt/equity                            99.8%          93.1%         92.3%         91.7%
             Funded debt/capital employed                  50.0%          48.2%         48.0%         47.8%
             Funded debt                                $121,372       $110,652      $110,583      $110,087
             Funded debt/EBITDA (LTM) (4)                   4.28           4.26          4.26          3.64
  
  OTHER
             Book value per share                         $10.85         $10.59        $10.68        $10.62
             Employees at quarter end                      3,486          3,018         3,018         3,015
             Sales per employee (annualized)            $108,000       $113,000      $128,000      $120,523
             Capital employed                           $242,958       $229,461      $230,421      $230,999
             Effective income tax rate                     33.0%          34.0%         34.0%         34.0%
             EBITDA (4)                                   $2,536         $4,731        $8,315        $6,859                 $30,268
             EBITDA/net sales (4)                           2.6%           5.5%          8.6%          8.1%                    8.1%
  
    (1) Expenditures for entire year
    (2) Working capital for this calculation is accounts receivable, inventories and accounts payable.
    (3) LTM represents "Latest Twelve Months"
    (4) EBITDA includes earnings before interest, income taxes, depreciation, amortization,  all restructuring and related
        charges and certain non-cash charges, as defined by the company's credit agreement.
    (5) Excludes restructuring and related charges of $6.7 million ($4.5 million or $.41 per share diluted, after taxes)
         for the last twelve months.
  CULP, INC. FINANCIAL INFORMATION RELEASE
                               SALES BY PRODUCT GROUP
  FOR THE THREE MONTHS AND NINE MONTHS ENDED JANUARY 27, 2002 AND JANUARY 28, 2001
                               (Amounts in thousands)
  THREE MONTHS ENDED (UNAUDITED)
                                   ------------------------------------------------------------
                                         Amounts                           Percent of Total Sales
                                     --------------------                  ----------------------
                                   January 27,  January 28,    % Over
  Product Group                       2002        2001         (Under)       2002        2001
  ------------------------------    ---------   ---------    ------------  ----------  ----------
  Upholstery Fabrics
      Culp Decorative Fabrics    $    35,878      40,955      (12.4) %       39.6 %      42.7 %
      Culp Velvets/Prints             28,648      28,631        0.1  %       31.6 %      29.9 %
      Culp Yarn                        1,318       2,711      (51.4) %        1.5 %       2.8 %
                                    ---------   ---------   ------------  ----------   ----------
                                      65,844      72,297       (8.9) %       72.7 %      75.4 %
  
  Mattress Ticking
      Culp Home Fashions              24,774      23,583        5.1  %       27.3 %      24.6 %
                                    ---------   ---------   ------------  ----------   ----------
  
                               * $    90,618      95,880       (5.5) %      100.0 %     100.0 %
                                    =========   =========   ============  ==========   ==========
  
                                                  NINE MONTHS ENDED (UNAUDITED)
                                   ---------------------------------------------------------------
  
                                         Amounts                           Percent of Total Sales
                                   --------------------                    -----------------------
                                   January 27,  January 28,   % Over
  Product Group                      2002          2001       (Under)          2002        2001
  ------------------------------   ---------    ---------    ------------  ----------   ----------
  Upholstery Fabrics
      Culp Decorative Fabrics   $   109,531      129,280       (15.3) %       40.1 %      41.9 %
      Culp Velvets/Prints            84,522       90,778        (6.9) %       30.8 %      29.4 %
      Culp Yarn                       3,816       10,164       (62.5) %        1.4 %       3.3 %
                                   ---------    ---------    ------------  ----------   ----------
                                    197,869      230,222       (14.1) %       72.4 %      74.6 %
  
  Mattress Ticking
      Culp Home Fashions             75,612       78,517        (3.7) %       27.6 %      25.4 %
                                   ---------    ---------    ------------  ----------   ----------
  
                              * $   273,481      308,739       (11.4) %      100.0 %     100.0 %
                                   =========    =========    ============  ==========   ==========
  * U.S.  sales were $79,539 and $77,360 for the third  quarter of fiscal 2002 and
  fiscal  2001,  respectively;  and  $233,617  and $246,672 for the nine months of
  fiscal 2002 and 2001,  respectively.  The percentage  increase in U.S. sales was
  2.8% for the third quarter and a decrease of 5.3% for the nine months.
  CULP, INC. FINANCIAL INFORMATION RELEASE
                       INTERNATIONAL SALES BY GEOGRAPHIC AREA
  FOR THE THREE MONTHS AND NINE MONTHS ENDED JANUARY 27, 2002 AND JANUARY 28, 2001
                               (Amounts in thousands)
  THREE MONTHS ENDED (UNAUDITED)
                             -------------------------------------------------------------
                                                                         Percent of Total
                                         Amounts                              Sales
                                  ---------------------                --------------------
                                 January 27,   January 28,  % Over
     Geographic Area               2002           2001      (Under)      2002       2001
  -----------------------       ----------     ---------    ---------  ---------  ---------
  North America (Excluding USA) $   6,613        8,226       (19.6)%     59.7 %     44.4 %
  Europe                              472        1,669       (71.7)%      4.3 %      9.0 %
  Middle East                         598        3,924       (84.8)%      5.4 %     21.2 %
  Far East & Asia                   2,924        4,277       (31.6)%     26.4 %     23.1 %
  South America                       155          147         5.6 %      1.4 %      0.8 %
  All other areas                     318          277        14.7 %      2.9 %      1.5 %
                                ----------    ---------     ---------  ---------  ---------
  
                                $  11,079       18,520       (40.2)%    100.0 %    100.0 %
                                ==========    =========     =========  =========  =========
  
                                                   NINE MONTHS ENDED (UNAUDITED)
                                ------------------------------------------------------
                                                                         Percent of Total
                                       Amounts                                Sales
                                ---------------------                  --------------------
                                January 27,  January 28,    % Over
  
     Geographic Area               2002          2001       (Under)       2002       2001
  -----------------------       ----------    ---------    ---------   ---------  ---------
  North America (Excluding USA) $  23,023      26,177       (12.0)%      57.9 %     42.2 %
  Europe                            2,115       4,928       (57.1)%       5.3 %      7.9 %
  Middle East                       4,804      14,456       (66.8)%      12.1 %     23.3 %
  Far East & Asia                   8,414      13,103       (35.8)%      21.1 %     21.1 %
  South America                       490         732       (33.1)%       1.2 %      1.2 %
  All other areas                   1,018       2,671       (61.9)%       2.6 %      4.3 %
                                ----------   ---------     ---------   ---------  ---------
  
                                $  39,864      62,067       (35.8)%     100.0 %    100.0 %
                                ==========   =========     =========   =========  =========
  International  sales,  and the  percentage of total sales,  for each of the last
  five fiscal years follows:  fiscal  1997-$101,571  (25%);  fiscal  1998-$137,223
  (29%);  fiscal  1999-$113,354  (23%);  fiscal  2000-$111,104  (23%);  and fiscal
  2001-$77,824 (19%).  International sales for the third quarter represented 12.2%
  and 19.3%  for 2002 and 2001,  respectively.  Year-to-date  international  sales
  represented 14.6% and 20.1% of total sales for 2002 and 2001, respectively.
  CULP, INC. FINANCIAL INFORMATION RELEASE
                                 FINANCIAL NARRATIVE
      for the three and nine months ended January 27, 2002 and January 28, 2001
  
  INCOME STATEMENT COMMENTS
  
       GENERAL - For the third quarter, net sales decreased 5.5% to $90.6 million;
  and the company  reported  net income of $170,000,  or $0.02 per share  diluted,
  (based  on  11,304,000  average  shares  outstanding)  versus a net loss of $5.5
  million,  or $0.49  per  share  diluted,  (based on  11,211,000  average  shares
  outstanding)  in the third quarter of fiscal 2001.  For the first nine months of
  fiscal  2002,  net sales  decreased  11.4% to $273.5  million,  and the  company
  reported  a net loss  $1.9  million,  or  $0.17  per  share  diluted  (based  on
  11,221,000 average shares  outstanding),  versus a net loss of $6.9 million,  or
  $0.61 per share diluted (based on 11,209,000 average shares outstanding), a year
  ago. As described below in "SG&A  EXPENSES," a significant  factor affecting the
  third  quarter and the first nine months of fiscal 2002 was bad debt  expense of
  $703,000   and  $2.9   million,   respectively   ($0.04  and  $0.17  per  share,
  respectively,  on an after-tax  basis).  This  compares with bad debt expense of
  $31,600  and  $188,700  for the third  quarter  and first  nine  months of 2001,
  respectively.  Excluding  restructuring  and related  charges,  earnings for the
  third quarter of 2002 were $170,000,  or $0.02 per share  diluted,  versus a net
  loss of $3.4 million, or $0.30 per share diluted, for the third quarter of 2001.
  Excluding  restructuring  and related charges,  the net loss for the nine months
  was $205,000,  or $0.02 per share diluted,  for 2002, and $4.7 million, or $0.42
  per share diluted, for 2001.
  
       The company's  long-term,  strategic plan encompasses  several  competitive
  initiatives:
  
       Broad Product  Offering - continuing to market one of the broadest  product
       lines in  upholstery  fabrics and mattress  ticking.  Through its extensive
       manufacturing  capabilities,  the company competes in most major categories
       except leather;
  
       Diverse  Customer Base - maintaining a diverse  customer  base. The company
       has  long-standing  relationships  with  most  major  upholstery  furniture
       manufacturers.  Ownership of resources in the home furnishings  industry is
       becoming increasingly  concentrated,  and the company has successfully been
       able to  capitalize  on its size and product  breadth to supply more of the
       needs of existing customers.  Culp is continuing to pursue opportunities in
       other  end-use  markets  in  addition  to U.S.  residential  furniture  and
       bedding,   such  as  international,   commercial   furniture  and  juvenile
       furniture;
  
       Design  Innovation  -  supplying  fabrics  that are  fashionable  and match
       current consumer preferences.  The company's principal design resources are
       consolidated  in a  single  facility  that has  advanced  computer-assisted
       design  systems and promotes  sharing of innovative  designs across product
       lines.  Culp encourages  active  customer  involvement in the entire design
       process; and
  
       Vertical  Integration - operating as a vertically  integrated  manufacturer
       and  taking  advantage  of  economies,  quality,  supply  availability  and
       efficiencies  that can be gained by producing  the raw material  components
       that are used in the manufacture of its products.
  
  RESTRUCTURING   ACTIONS  -  During   fiscal  2001,   the  company   initiated  a
  restructuring plan intended to lower operating expenses,  increase manufacturing
  utilization,  raise  productivity and position the company to operate profitably
  within  the  current  environment  of  reduced  demand.  The plan  involved  the
  consolidation  of  certain  fabric   manufacturing   capacity  within  the  Culp
  Decorative   Fabrics   division,   closing  one  of  the  company's   four  yarn
  manufacturing  plants within Culp Yarn,  and an extensive  reduction in selling,
  general  and  administrative  expenses.  The  company  also  recognized  certain
  inventory  write-downs  related  to  the  closed  facilities  as  part  of  this
  initiative.  While  the  physical  relocation  and  movement  of  machinery  and
  equipment involved in the restructuring has been essentially completed,  and the
  related fixed  manufacturing  cost savings achieved,  the company still has much
  improvement to make to reach targeted  productivity  and variance  levels in the
  Culp Decorative Fabrics division. The total charge from the restructuring,  cost
  reduction  and inventory  write-down  initiatives  was $9.9 million,  about $3.6
  million of which represented non-cash items. The company recognized $7.4 million
  of restructuring and related charges during fiscal 2001, and $2.5 million in the
  first nine months of fiscal  2002.  No  restructuring  and related  charges were
  recorded in the third quarter of fiscal 2002.  Restructuring and related charges
  for fiscal 2002 were  recorded as $1.3  million in the line item  "Restructuring
  expense"  and $1.2  million in "Cost of sales." The costs  reflected in "Cost of
  sales" are principally related to the relocation of manufacturing equipment. The
  company plans to realize annualized cost reductions of at least $14 million when
  the full benefit of this program is  realized.  Management  believes the company
  now  has a  sound  footprint  of  efficient,  world-class  facilities  utilizing
  state-of-the-art  equipment  that  position  Culp  well to meet the  demands  by
  manufacturers for shorter lead times,  reliable delivery schedules and appealing
  designs.
  
       NET SALES - Compared with the year-earlier  period, the company's net sales
  declined  only 5.5% for the third  quarter of fiscal 2002,  versus 13.1% for the
  second  quarter of fiscal 2002,  15.1% for the first quarter of fiscal 2002, and
  21.9% for the fourth quarter of fiscal 2001. This quarterly trend indicates that
  the sales  decline  bottomed in the fourth  quarter of fiscal  2001.  Based upon
  current business conditions, the company is optimistic that this improving sales
  trend can continue.
  
  Compared  with fiscal 2001,  upholstery  fabric  sales for the third  quarter of
  fiscal 2002  decreased  8.9% to $65.8  million,  and  decreased  14.1% to $197.9
  million  for the first nine  months of fiscal  2002 (See Sales by Product  Group
  schedule on Page 5).  Reflecting a continuation of the trends  identified in the
  first and second  quarter,  the  upholstery  fabric sales  decrease in the third
  quarter  represents:   (1)  a  sharp  reduction  (42.1%,  or  $5.9  million)  in
  international  sales,  principally  reflecting the high value of the U.S. dollar
  relative to  international  currencies;  (2) a decrease  in external  yarn sales
  (51.4% or $1.4 million) due to the company's internal consumption of more of the
  yarn  division's  output and exit from  certain yarn  businesses  as part of the
  restructuring  plan; and (3) a decrease in sales to contract furniture customers
  ($1.1   million).   A  significant   factor   contributing  to  the  decline  in
  international  sales is the persistent  weakness in demand for the company's wet
  print flock fabrics, which has negatively impacted the profitability of the Culp
  Velvets/Prints  product  group.  Management  continues  to  assess  its plan for
  addressing  this  underperforming   product  line.  Sales  to  U.S.  residential
  furniture  manufacturers  in the third quarter of fiscal 2002  increased 3.9% or
  $2.0  million  compared  with the third  quarter  of fiscal  2001.  The  company
  believes  that it is improving its market share in the U.S.  residential  market
  because of well-received  fabric  placements in the Culp Decorative  Fabrics and
  Culp Velvets/Prints product groups.
  
  Compared  with fiscal  2001,  mattress  ticking  sales for the third  quarter of
  fiscal 2002 increased 5.1% to $24.8 million, and decreased 3.7% to $75.6 million
  for the first nine months of fiscal  2002.  The  year-to-date  sales  decline in
  mattress ticking also reflects a strong decrease in international  sales.  Sales
  to U.S.  bedding  manufacturers  increased  14.1% to $21.8  million in the third
  quarter of fiscal  2002,  reversing a trend of sales  decreases in the first two
  quarters,  and  increased  1.8% to $66.0  million  for the first nine  months of
  fiscal 2002.  The company  believes that it is gaining  market share in the U.S.
  bedding  market  because of well  received  ticking  placements in the Culp Home
  Fashions product group.
  
       GROSS PROFIT - Gross profit increased 37.4% for the third quarter of fiscal
  2002 compared with the year-earlier  period and increased as a percentage of net
  sales to 14.9% from 10.3%. The increase in gross profit percentage  reflects the
  benefit of the  restructuring  steps and other  actions  that have been taken to
  reduce expenses.  The company realized  significant  gross profit increases over
  the third quarter of last year in Culp Home Fashions  (mattress  ticking),  Culp
  Velvets/Prints  and Culp Yarn.  During the quarter the company  began to realize
  lower variances and improved  manufacturing  productivity in the Culp Decorative
  Fabrics  product  group,  which  achieved  higher gross  margins even on a sales
  decline of 12.4%.  The company  expects this  positive  trend to continue in the
  fourth quarter.
  
       SG&A EXPENSES - Reflecting  the impact of the  company's  actions to reduce
  expenses,  SG&A  expenses for the third  quarter  declined  11.6% from the prior
  year. SG&A expenses for the third quarter  included bad debt expense of $703,000
  compared with $31,600 in the  year-earlier  period.  Without the  additional bad
  debt expense,  SG&A expenses  were reduced by $2.1 million,  or 17.2%,  and were
  11.4% of net sales.  For the first nine months of fiscal 2002,  bad debt expense
  totaled $2.9 million. Without the additional bad debt expense, SG&A expenses for
  the first nine months were reduced by $8.9 million,  or 22.3%, and were 11.3% of
  net sales.  The increase in bad debt expense from a year ago reflects  primarily
  write-offs of one bedding and two residential  furniture customers as well as an
  increase in the bad debt reserve.
  
       INTEREST  EXPENSE - Interest  expense for the third quarter  declined 18.1%
  from  $2.2  million  to  $1.8  million  due to  significantly  lower  borrowings
  outstanding, offset somewhat by a substantial increase in interest rates.
  
       OTHER EXPENSE (INCOME),  NET - Other expense (income) for the third quarter
  of fiscal 2002 totaled  $435,000  compared with $811,000 in the prior year.  The
  decrease  reflects  primarily  the  elimination  of  the  nonqualified  deferred
  compensation  plan  terminated in January 2001 as a part of the  company's  cost
  reduction initiatives.
  
       INCOME TAXES - The  effective  tax rate for the first nine months of fiscal
  2002 was 34.0% compared with 33.0% for the year-earlier period
  
       EBITDA - EBITDA for the third  quarter  of fiscal  2002  increased  to $6.9
  million  compared  with $2.5  million  for the third  quarter of last year,  and
  increased  to $19.9  million for the first nine  months of fiscal 2002  compared
  with $16.0 million in the year-earlier  period.  EBITDA includes earnings before
  interest,  income  taxes,  depreciation,  amortization,  all  restructuring  and
  related charges and certain non-cash charges, as defined by the company's credit
  agreement.
  
  BALANCE SHEET COMMENTS
  
       CASH AND CASH  INVESTMENTS  - Cash and cash  investments  as of January 27,
  2002 increased to $10.4 million from $1.2 million at fiscal year end, reflecting
  cash flow from  operations  of $18.4 million for the first nine months of fiscal
  2002, which exceeded capital  expenditures of $3.4 million and debt repayment of
  $5.8 million.
  
       WORKING  CAPITAL - Accounts  receivable  as of January 27,  2002  decreased
  15.2% from the  year-earlier  level, due principally to the decline in sales and
  the company's focus on sustaining a liquid working capital position.  Days sales
  outstanding totaled 43 days at January 27, 2002 compared with 48 a year ago. The
  aging of accounts  receivable  was 96.0%  current and less than 30 days past due
  versus 94.4% a year ago. Inventories at the close of the third quarter decreased
  11.6% from a year ago. Inventory turns for the third quarter were 5.1 versus 4.9
  for the year-earlier  period.  Operating working capital  (comprised of accounts
  receivable,  inventory  and accounts  payable) was $84.2  million at January 27,
  2002, down from $94.5 million a year ago.
  
       PROPERTY,  PLANT AND  EQUIPMENT - Capital  spending  for the nine months of
  fiscal  2002  decreased  to $3.4  million,  compared  with $6.5  million  in the
  year-earlier period. The company's capital spending for fiscal 2002 is projected
  to be $4.5 million,  compared with $8.1 million in fiscal 2001. Depreciation for
  the first nine months of fiscal 2002 totaled $13.2 million.
  
       LONG-TERM  DEBT - The company has reduced  funded debt by $11.3  million or
  9.3%  from  the end of the  third  quarter  of last  year.  Funded  debt  equals
  long-term  debt plus  current  maturities.  Funded  debt was  $110.1  million at
  January 27, 2002,  compared with $121.4 million a year ago and $111.7 million at
  fiscal  year  end.  Compared  with  50.0%  a  year  ago,  the  company's  funded
  debt-to-capital ratio was 47.8% at January 27, 2002, its lowest level since July
  1997.  During fiscal 2001,  the company  amended its credit  facility to include
  terms that restrict the payment of cash dividends and share  repurchases at this
  time,  limit capital  expenditures,  increase the interest rate on its revolving
  credit facility and increase the letter of credit fees on its industrial revenue
  bonds.  This  amended  credit  facility  provides for a loan  commitment  of $20
  million.  The company had outstanding  borrowings of approximately  $1.0 million
  under the facility at the end of the third  quarter of fiscal 2002.  The company
  was in compliance  with its loan  agreements as of January 27, 2002.  Other than
  the credit  facility,  required  principal  payments under the  respective  loan
  agreements during the remainder of fiscal 2002 and during fiscal 2003 total $1.0
  million and $2.2 million, respectively.