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) November 18, 1999
  
                                     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 (10
  pages),  both dated November 18, 1999, related to the fiscal 2000 second quarter
  ended October 31, 1999.
  
  Forward  Looking  Information.  This Report  contains  statements  that could be
  deemed "forward-looking statements" within the meaning of the federal securities
  laws.  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:       Phillip W. Wilson
                                                        Vice President and
                                                        Chief Financial Officer
  
  
  
  
  
  
  Dated:   November 18, 1999
  
  <PAGE>
  
  
  
  FOR IMMEDIATE RELEASE
  
                       CULP REPORTS SECOND QUARTER NET INCOME
                               ----------------------
            EARNINGS GAIN REFLECTS CONTINUED IMPROVEMENT IN PROFITABILITY
  
  HIGH POINT,  N. C. (Nov.  18,  1999) - Culp,  Inc.  (NYSE:  CFI) today  reported
  results for the second quarter and first six months of its 2000 fiscal year.
  
       For the three  months  ended  October 31,  1999,  Culp  reported  net sales
  increased to $129.5 million compared with $128.2 million a year ago. The company
  reported net income for the quarter of $3.2 million, or $0.27 per share diluted,
  compared  with $1.3 million,  or $0.10 per share  diluted,  in the  year-earlier
  period.
  
       The results for the second quarter  brought net sales for the first half of
  fiscal  2000 to $245.5  million  compared  with $238.8  million a year ago.  The
  company  reported  net income for the first half of $4.8  million,  or $0.39 per
  share  diluted,  compared  with a net loss of $1.3  million,  or $0.10 per share
  diluted, in the year-earlier period.
  
       "We had  expected  that the results  for our second  fiscal  quarter  would
  signal continued bottom-line progress for Culp," said Robert G. Culp, III, chief
  executive  officer.  "The gains not only for the  quarter but also for the first
  half provide  gratifying  endorsement  of the changes made over the past year to
  establish  sustained,  positive momentum in sales and achieve improved operating
  productivity.  We are confident about the potential for further  improvement and
  recognize the importance of maintaining these initiatives."
  
       "An ongoing focus for Culp is developing  closer working  partnerships with
  customers. We are finding that our vertical integration is an important asset in
  that regard.  Culp's control over more of the steps in manufacturing  upholstery
  fabrics and ticking  complements the breadth of our product lines. Our increased
  capacity for producing yarn is proving to be especially  valuable. A majority of
  the yarn we produce  through the Culp Yarn  operations  is now being used by our
  own  fabric   divisions.   Although  this   internalization   is  affecting  the
  year-to-year  comparisons  in net  sales,  having  our own  yarn  facilities  is
  assisting our efforts to provide  manufacturers  with  fashionable  designs that
  enhance the value of their furniture in the retail marketplace."
  
  
  <PAGE>
  
       Culp  added,  "We are  continuing  to realize  gains in Culp's  fundamental
  competitive  position.  Industry trends appear generally  favorable at this time
  although most retailers and manufacturers appear to be maintaining close control
  over  inventories.  This,  in turn,  is reducing  our lead time for orders which
  understandably  adds uncertainty to the company's results over the near term. We
  remain  committed  to the  investments  necessary  to support  our  longer  term
  expansion.  Our capital expenditures for fiscal 2000 are now expected to be more
  than double the $10.7 million  invested during last year.  These funds are being
  used both to modernize and expand the company's  manufacturing  and distribution
  capability.
  
       "We are pleased that our strong  financial  position is enabling us to fund
  these  capital  expenditures  and still  maintain  an ongoing  stock  repurchase
  program.  During the second  quarter,  we invested an additional $5.5 million to
  repurchase our shares. We currently have remaining  authorization from the Board
  of  Directors  to invest $3.6  million in this  program.  We believe  that these
  repurchases will prove to be a sound investment of the company's capital."
  
       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.
  
  
  <TABLE>
  <CAPTION>
  
                                                       CULP, INC.
                                             Condensed Financial Highlights
                                                       (Unaudited)
                                                                                   Three Months Ended
                                                                     ----------------------------------------------
                                                                        October 31, 1999           November 1, 1998
                                                                        ----------------           ----------------
  <S>                                                               <C>                       <C>
  Net sales                                                         $        129,542,000      $       128,159,000
  Net income                                                        $          3,160,000      $         1,307,000
  Net income per share:
     Basic                                                          $               0.27      $              0.10
     Diluted                                                        $               0.27      $              0.10
  Average shares outstanding:
     Basic                                                                    11,749,000               12,995,000
     Diluted                                                                  11,868,000               13,120,000
  
                                                                                    Six Months Ended
                                                                      ---------------------------------------------
                                                                         October 31, 1999          November 1, 1998
                                                                         ----------------          ----------------
  Net sales                                                          $       245,479,000        $     238,826,000
  Net income (loss)                                                  $         4,757,000        $      (1,333,000)
  Net income (loss) per share:
     Basic                                                           $              0.40        $           (0.10)
     Diluted                                                         $              0.39        $           (0.10)
  Average shares outstanding:
     Basic                                                                    11,906,000               12,998,000
     Diluted                                                                  12,044,000               13,175,000
  </TABLE>
  
  
  This  release  contains   statements  that  could  be  deemed   "forward-looking
  statements"  within the meaning of the federal  securities laws. 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. -END-
  
  <PAGE>
  
                      CULP, INC. FINANCIAL INFORMATION RELEASE
                      CONSOLIDATED STATEMENTS OF INCOME (LOSS)
   FOR THE THREE MONTHS AND SIX MONTHS ENDED OCTOBER 31, 1999 AND NOVEMBER 1, 1998
  
                  (Amounts in Thousands, Except for Per Share Data)
  <TABLE>
  <CAPTION>
  
                                                                        THREE MONTHS ENDED (UNAUDITED)
                                               ---------------------------------------------------------------------------------
  
                                                          Amounts                                          Percent of Sales
                                               -------------------------------                       -----------------------------
                                                October 31,     November 1,        % Over
                                                   1999             1998          (Under)               2000            1999
                                               --------------  ---------------  -------------        --------------  -------------
  <S>                                       <C>                     <C>              <C>                <C>             <C>
  Net sales                                 $        129,542          128,159          1.1 %              100.0 %         100.0 %
  Cost of sales                                      105,835          107,685         (1.7)%               81.7 %          84.0 %
                                               --------------  ---------------  -------------        --------------  -------------
           Gross profit                               23,707           20,474         15.8 %               18.3 %          16.0 %
  
  Selling, general and
    administrative expenses                           16,035           15,474          3.6 %               12.4 %          12.1 %
                                               --------------  ---------------  -------------        --------------  -------------
           Income from operations                      7,672            5,000         53.4 %                5.9 %           3.9 %
  
  Interest expense                                     2,484            2,464          0.8 %                1.9 %           1.9 %
  Interest income                                        (16)             (19)       (15.8)%               (0.0)%          (0.0)%
  Other expense (income), net                            416              604        (31.1)%                0.3 %           0.5 %
                                               --------------  ---------------  -------------        --------------  -------------
           Income before income taxes                  4,788            1,951        145.4 %                3.7 %           1.5 %
  
  Income taxes  *                                      1,628              644        152.8 %               34.0 %          33.0 %
                                               --------------  ---------------  -------------        --------------  -------------
  
           Net income                       $          3,160            1,307        141.8 %                2.4 %           1.0 %
                                               ==============  ===============  =============        ==============  =============
  
  Net income per share                                 $0.27            $0.10        170.0 %
  Net income per share, assuming dilution              $0.27            $0.10        170.0 %
  Dividends per share                                 $0.035           $0.035          0.0 %
  Average shares outstanding                          11,749           12,995         (9.6)%
  Average shares outstanding, assuming dilution       11,868           13,120         (9.5)%
  
  
                                                                         SIX MONTHS ENDED (UNAUDITED)
                                               ---------------------------------------------------------------------------------
  
                                                          Amounts                                          Percent of Sales
                                               -------------------------------                       -----------------------------
                                                October 31,     November 1,        % Over
                                                   1999             1998          (Under)               2000            1999
                                               --------------  ---------------  -------------        --------------  -------------
  Net sales                                 $        245,479          238,826          2.8 %              100.0 %         100.0 %
  Cost of sales                                      201,360          204,741         (1.7)%               82.0 %          85.7 %
                                               --------------  ---------------  -------------        --------------  -------------
           Gross profit                               44,119           34,085         29.4 %               18.0 %          14.3 %
  
  Selling, general and
    administrative expenses                           31,073           29,947          3.8 %               12.7 %          12.5 %
                                               --------------  ---------------  -------------        --------------  -------------
           Income from operations                     13,046            4,138        215.3 %                5.3 %           1.7 %
  
  Interest expense                                     4,900            4,825          1.6 %                2.0 %           2.0 %
  Interest income                                        (33)             (72)       (54.2)%               (0.0)%          (0.0)%
  Other expense (income), net                            971            1,374        (29.3)%                0.4 %           0.6 %
                                               --------------  ---------------  -------------        --------------  -------------
           Income (loss) before income                 7,208           (1,989)       462.4 %                2.9 %          (0.8)%
           taxes
  
  Income taxes  *                                      2,451             (656)       473.6 %               34.0 %          33.0 %
                                               --------------  ---------------  -------------        --------------  -------------
  
           Net income (loss)                $          4,757           (1,333)       456.9 %                1.9 %          (0.6)%
                                               ==============  ===============  =============        ==============  =============
  
  Net income (loss) per share                          $0.40           ($0.10)       500.0 %
  Net income (loss) per share, assuming dilution       $0.39           ($0.10)       490.0 %
  Dividends per share                                  $0.07            $0.07          0.0 %
  Average shares outstanding                          11,906           12,998         (8.4)%
  Average shares outstanding, assuming dilution       12,044           13,175         (8.6)%
  
  </TABLE>
  
   * Percent of sales column is calculated as a % of income (loss) before
  income taxes.
  <PAGE>
                      CULP, INC. FINANCIAL INFORMATION RELEASE
                             CONSOLIDATED BALANCE SHEETS
                 OCTOBER 31, 1999, NOVEMBER 1, 1998 AND MAY 2, 1999
                                      Unaudited
                               (Amounts in Thousands)
  <TABLE>
  <CAPTION>
  
                                                                Amounts                             Increase
                                                 ---------------------------------------
                                                     October 31,        November 1,                (Decrease)                * May 2,
                                                                                       ---------------------------------
                                                        1999                1998            Dollars         Percent           1999
                                                 --------------------  ---------------  ----------------    -------------  -----------
  
  Current assets
  <S>                                          <C>                         <C>                <C>          <C>              <C>
         Cash and cash investments             $                 790            1,177              (387)       (32.9)%             509
         Accounts receivable                                  69,749           72,998            (3,249)        (4.5)%          70,503
         Inventories                                          78,234           72,392             5,842          8.1 %          67,070
         Other current assets                                  8,865            7,230             1,635         22.6 %           9,633
                                                 --------------------  ---------------  ----------------   -------------  ------------
                    Total current assets                     157,638          153,797             3,841          2.5 %         147,715
  
  Restricted investments                                       1,085            3,409            (2,324)       (68.2)%           3,340
  Property, plant & equipment, net                           124,318          126,050            (1,732)        (1.4)%         123,310
  Goodwill                                                    50,571           54,433            (3,862)        (7.1)%          51,269
  Other assets                                                 5,064            4,333               731         16.9 %           4,978
                                                 --------------------  ---------------  ----------------   -------------  ------------
  
                    Total assets               $             338,676          342,022            (3,346)        (1.0)%         330,612
                                                 ====================  ===============  ================   =============  ============
  
  
  
  Current liabilities
         Current maturities of long-term debt $                1,678            1,678                 0          0.0 %           1,678
         Accounts payable                                     38,427           32,640             5,787         17.7 %          25,687
         Accrued expenses                                     22,947           17,143             5,804         33.9 %          21,026
         Income taxes payable                                  1,786                0             1,786        100.0 %               0
                                                --------------------  ---------------  ----------------    -------------  ------------
                    Total current liabilities                 64,838           51,461            13,377         26.0 %          48,391
  
  Long-term debt                                             133,875          150,210           (16,335)       (10.9)%         140,312
  
  Deferred income taxes                                       14,583           11,227             3,356         29.9 %          14,583
                                                --------------------  ---------------  ----------------    -------------  ------------
                    Total liabilities                        213,296          212,898               398          0.2 %         203,286
  
  Shareholders' equity                                       125,380          129,124            (3,744)        (2.9)%         127,326
                                                --------------------  ---------------  ----------------    -------------  ------------
                    Total liabilities and
                      shareholders' equity    $              338,676          342,022            (3,346)        (1.0)%         330,612
                                                ====================  ===============  ================    =============  ============
  
  Shares outstanding                                          11,320           12,995           (1,675)       (12.9) %          12,079
                                                ====================  ===============  ================    =============  ============
  
  </TABLE>
  
  *  Derived from audited financial statements.
  
  <PAGE>
  
                                CULP, INC. FINANCIAL
                                 INFORMATION RELEASE
                        CONSOLIDATED STATEMENTS OF CASH FLOWS
           FOR THE SIX MONTHS ENDED OCTOBER 31, 1999 AND NOVEMBER 1, 1998
                                      Unaudited
                               (Amounts in Thousands)
  <TABLE>
  <CAPTION>
  
  
                                                                                                 SIX MONTHS ENDED
                                                                                          --------------------------------
                                                                                                      Amounts
                                                                                          --------------------------------
                                                                                           October 31,      November 1,
                                                                                               1999             1998
                                                                                          ---------------  ---------------
  
  Cash flows from operating activities:
  <S>                                                                                <C>                     <C>
       Net income (loss)                                                             $             4,757           (1,333)
       Adjustments to reconcile net income (loss) to net
          cash provided by operating activities:
              Depreciation                                                                         9,516            9,198
              Amortization of intangible assets                                                      798              829
              Changes in assets and liabilities:
                  Accounts receivable                                                                754              775
                  Inventories                                                                    (11,164)           6,202
                  Other current assets                                                               768              578
                  Other assets                                                                      (186)             (93)
                  Accounts payable                                                                 7,937           (2,395)
                  Accrued expenses                                                                 1,921             (793)
                  Income taxes payable                                                             1,786           (1,282)
                                                                                          ---------------  ---------------
                      Net cash provided by operating activities                                   16,887           11,686
                                                                                          ---------------  ---------------
  Cash flows from investing activities:
       Capital expenditures                                                                      (10,524)          (6,443)
       Purchases of restricted investments                                                           (27)             (66)
       Sale of restricted investments                                                              2,282              678
                                                                                          ---------------  ---------------
                      Net cash used in investing activities                                       (8,269)          (5,831)
                                                                                          ---------------  ---------------
  Cash flows from financing activities:
       Proceeds from issuance of long-term debt                                                    5,333            2,535
       Principal payments on long-term debt                                                      (11,770)          (6,284)
       Change in accounts payable-capital expenditures                                             4,803           (2,179)
       Dividends paid                                                                               (822)            (910)
       Payments to acquire common stock                                                           (5,901)            (160)
       Proceeds from common stock issued                                                              20                8
                                                                                          ---------------  ---------------
                      Net cash used in financing activities                                       (8,337)          (6,990)
                                                                                          ---------------  ---------------
  
  Increase (decrease) in cash and cash investments                                                   281           (1,135)
  
  Cash and cash investments at beginning of period                                                   509            2,312
                                                                                          ---------------  ---------------
  
  Cash and cash investments at end of period                                         $               790            1,177
                                                                                          ===============  ===============
  
  
  </TABLE>
  
  <PAGE>
  
                      CULP, INC. FINANCIAL INFORMATION RELEASE
                                 FINANCIAL ANALYSIS
                                  OCTOBER 31, 1999
  <TABLE>
  <CAPTION>
  
  
                                             FISCAL 99                            FISCAL 00
                                           -------------   ---------------------------------------------------------   ---------------
                                                Q2              Q1             Q2            Q3            Q4               LTM
                                           -------------   ---------------------------------------------------------   ---------------
  
  INVENTORIES
  <S>                                         <C>              <C>            <C>
          Inventory turns                           5.7              5.4            5.5
  
  RECEIVABLES
          Days sales in receivables                  52               45             49
          Percent current & less than 30
            days past due                          94.9%            93.2%         96.7%
  
  WORKING CAPITAL
          Current  ratio                            3.0              3.1            2.4
          Working capital turnover (4)              4.4              4.4            4.4
          Operating working capital (4)        $112,750         $111,222       $109,556
  
  PROPERTY, PLANT & EQUIPMENT
          Depreciation rate                        8.4%             8.0%           7.8%
          Percent property, plant &
            equipment are depreciated             45.0%            49.0%          49.1%
          Capital expenditures                  $10,689 (1)       $2,420         $8,104
  
  PROFITABILITY
          Return on average total capital          4.2%             4.8%           7.3%                                          5.8%
          Return on average equity                 4.1%             5.0%          10.0%                                          7.2%
          Net income per share                    $0.10            $0.13          $0.27                                         $0.75
          Net income per share (diluted)          $0.10            $0.13          $0.27                                         $0.74
  
  LEVERAGE (3)
          Total liabilities/equity               164.9%           155.9%         170.1%
          Funded debt/equity                     115.0%           106.3%         107.2%
          Funded debt/capital employed            53.5%            51.5%          51.7%
          Funded debt                          $148,479         $136,222       $134,468
          Funded debt/EBITDA (LTM) (6)             3.95             3.33           3.08
          EBITDA/Interest expense, net(LTM)         4.2              4.3            4.6
  
  
  OTHER
          Book value per share                    $9.94           $10.64         $11.08
          Employees at quarter end                4,014            4,050          3,962
          Sales per employee (annualized)      $124,000         $116,000        129,000
          Capital employed (3)                 $277,603         $264,349       $259,848
          Effective income tax rate               33.0%            34.0%          34.0%
          EBITDA (2)                             $9,649           $9,977        $12,412                                       $43,445
          EBITDA/net sales                         7.5%             8.6%           9.6%                                          8.9%
  
  
    (1) Expenditures for entire year
    (2) Earnings before interest, income taxes, and depreciation & amortization.
    (3) Long-term debt, funded debt and capital employed are all net of restricted
        investments.
    (4) Working capital for this calculation is accounts receivable, inventories
        and accounts payable.
    (5) LTM represents "Latest Twelve Months"
    (6) EBITDA includes capitalized interest and pro forma amounts for
        acquisitions.
  
  </TABLE>
  
  <PAGE>
  
                      CULP, INC. FINANCIAL INFORMATION RELEASE
                              SALES BY SEGMENT/DIVISION
   FOR THE THREE MONTHS AND SIX MONTHS ENDED OCTOBER 31, 1999 AND NOVEMBER 1, 1998
  
  
                               (Amounts in thousands)
  <TABLE>
  <CAPTION>
  
                                                              THREE MONTHS ENDED (UNAUDITED)
                                         --------------------------------------------------------------------------
  
                                                  Amounts                                Percent of Total Sales
                                         --------------------------                    ----------------------------
                                         October 31,   November 1,        % Over
  Segment/Division                          1999          1998           (Under)           2000            1999
  ------------------------------------   ------------  ------------   ---------------  -------------   ------------
  Upholstery Fabrics
  <S>                                 <C>                <C>          <C>              <C>             <C>
      Culp Decorative Fabrics         $       56,897        59,573        (4.5)%          43.9 %          46.5 %
      Culp Velvets/Prints                     41,783        38,728         7.9 %          32.3 %          30.2 %
      Culp Yarn                                4,358         6,367       (31.6)%           3.4 %           5.0 %
                                         ------------  ------------   ---------------  -------------   ------------
                                             103,038       104,668        (1.6)%          79.5 %          81.7 %
  
  Mattress Ticking
      Culp Home Fashions                      26,504        23,491        12.8 %          20.5 %          18.3 %
                                         ------------  ------------   ---------------  -------------   ------------
  
                                    * $      129,542       128,159         1.1 %         100.0 %         100.0 %
                                         ============  ============   ===============  =============   ============
  
  
                                                               SIX MONTHS ENDED (UNAUDITED)
                                         --------------------------------------------------------------------------
  
                                                  Amounts                                Percent of Total Sales
                                         --------------------------                    ----------------------------
                                         October 31,   November 1,        % Over
  Segment/Division                          1999          1998           (Under)        2000            1999
  ------------------------------------   ------------  ------------   ---------------  -------------   ------------
  Upholstery Fabrics
      Culp Decorative Fabrics         $      107,413       111,018        (3.2)%          43.8 %          46.5 %
      Culp Velvets/Prints                     77,992        68,722        13.5 %          31.8 %          28.8 %
      Culp Yarn                                8,487        12,963       (34.5)%           3.5 %           5.4 %
                                         ------------  ------------   ---------------  -------------   ------------
                                             193,892       192,703         0.6 %          79.0 %          80.7 %
  
  Mattress Ticking
      Culp Home Fashions                      51,587        46,123        11.8 %          21.0 %          19.3 %
                                         ------------  ------------   ---------------  -------------   ------------
  
                                    * $      245,479       238,826         2.8 %         100.0 %         100.0 %
                                         ============  ============   ===============  =============   ============
  
  
  * U.S.  sales were $97,216 and $94,472 for the second quarter of fiscal 2000 and
  fiscal  1999,  respectively;  and  $189,340  and  $178,782 for the six months of
  fiscal 2000 and fiscal 1999, respectively. The percentage increase in U.S. sales
  was 2.9% for the second quarter and an increase of 5.9% for the six months.
  
  </TABLE>
  <PAGE>
  
                      CULP, INC. FINANCIAL INFORMATION RELEASE
                       INTERNATIONAL SALES BY GEOGRAPHIC AREA
   FOR THE THREE MONTHS AND SIX MONTHS ENDED OCTOBER 31, 1999 AND NOVEMBER 1, 1998
  <TABLE>
  <CAPTION>
  
  
                                                  (Amounts in thousands)
  
                                                                 THREE MONTHS ENDED (UNAUDITED)
                                         --------------------------------------------------------------------------------
  
                                                    Amounts                                   Percent of Total Sales
                                         -------------------------------                   ------------------------------
                                          October 31,      November 1,       % Over
           Geographic Area                    1999            1998           (Under)           2000             1999
  ----------------------------------     ---------------  --------------  --------------   -------------     ------------
  <S>                               <C>                       <C>         <C>               <C>              <C>
  North America (Excluding USA)     $             9,912           8,502       16.6 %           30.7 %           25.2 %
  Europe                                          6,069           7,223      (16.0)%           18.8 %           21.4 %
  Middle East                                     8,960          10,060      (10.9 %           27.7 %           29.9 %
  Far East & Asia                                 5,357           5,435       (1.4)%           16.6 %           16.1 %
  South America                                     630           1,238      (49.1)%            1.9 %            3.7 %
  All other areas                                 1,398           1,229       13.8 %            4.3 %            3.6 %
                                         ---------------  --------------  --------------   -------------     ------------
  
                                    $            32,326          33,687       (4.0)%          100.0 %          100.0 %
                                         ===============  ==============  ==============   =============     ============
  
  
                                                                  SIX MONTHS ENDED (UNAUDITED)
                                         --------------------------------------------------------------------------------
  
                                                    Amounts                                   Percent of Total Sales
                                         -------------------------------                   ------------------------------
                                          October 31,      November 1,       % Over
           Geographic Area                    1999            1998           (Under)           2000             1999
  ----------------------------------     ---------------  --------------  --------------   -------------     ------------
  North America (Excluding USA)     $            17,588          15,755       11.6 %           31.3 %           26.2 %
  Europe                                          8,998          10,906      (17.5)%           16.0 %           18.2 %
  Middle East                                    15,952          18,360      (13.1)%           28.4 %           30.6 %
  Far East & Asia                                 9,666          10,303       (6.2)%           17.2 %           17.2 %
  South America                                   1,250           2,238      (44.1)%            2.2 %            3.7 %
  All other areas                                 2,685           2,482        8.2 %            4.8 %            4.1 %
                                         ---------------  --------------  --------------   -------------     ------------
  
                                    $            56,139          60,044       (6.5)%          100.0 %          100.0 %
                                         ===============  ==============  ==============   =============     ============
  
  </TABLE>
  
  International  sales,  and the  percentage of total sales,  for each of the last
  five fiscal years follows: fiscal 1995-$57,971 (19%); fiscal 1996-$77,397 (22%);
  fiscal 1997-$101,571 (25%); fiscal 1998-$137,223 (29%); and fiscal 1999-$113,354
  (23%).  International  sales for the second quarter  represented 25.0% and 26.3%
  for 2000 and 1999,  respectively.  Year-to-date  international sales represented
  22.9% and 25.1% of total sales for 2000 and 1999, respectively.
  
  <PAGE>
  
                                     Culp, Inc.
                     SALES BY SEGMENT/DIVISION - TREND ANALYSIS
                                1998 vs 1999 vs 2000
                                      Unaudited
                               (Amounts in thousands)
  <TABLE>
  <CAPTION>
  
                                              Fiscal 1998                                     Fiscal 1999
                             ----------------------------------------------  ----------------------------------------------
      Segment/Division          Q1       Q2        Q3       Q4     TOTAL        Q1       Q2       Q3       Q4      TOTAL
  -------------------------
  Upholstery Fabrics
  <S>                         <C>       <C>      <C>      <C>     <C>          <C>     <C>      <C>      <C>      <C>
      Culp Decorative Fabrics  39,814    56,781   53,415   60,155  210,165      51,445  59,573   50,520   60,520   222,058
      Culp Velvets/Prints      38,397    43,928   44,020   45,044  171,389      29,994  38,728   34,949   40,402   144,073
      Culp Yarn                     -         -      761    7,115    7,876       6,596   6,367    4,088    4,462    21,513
                             ----------------------------------------------  ----------------------------------------------
                               78,211   100,709   98,196  112,314  389,430      88,035 104,668   89,557  105,384   387,644
  
  Mattress Ticking
      Culp Home Fashions       21,287    22,217   20,261   23,520   87,285      22,632  23,491   22,536   26,781    95,440
                             ----------------------------------------------  ----------------------------------------------
  
                               99,498   122,926  118,457  135,834  476,715     110,667 128,159  112,093  132,165   483,084
                             ==============================================  ==============================================
  
  
                                  Percent increase(decrease) from prior year:
      Segment/Division
  -------------------------
  
  Upholstery Fabrics
      Culp Decorative Fabrics      2.2      24.2     35.8     37.7     25.3        29.2     4.9     (5.4)     0.6       5.7
      Culp Velvets/Prints         10.1       9.2      9.0      9.9      9.5       (21.9)  (11.8)   (20.6)   (10.3)    (15.9)
      Culp Yarn                      -         -    100.0    100.0    100.0       100.0   100.0    437.2    (37.3)    173.1
                              ----------------------------------------------  ----------------------------------------------
                                   5.9      17.2     23.2     32.6     20.1        12.6     3.9     (8.8)    (6.2)     (0.5)
  
  Mattress Ticking
      Culp Home Fashions          27.5      15.4     14.2     12.0     16.9         6.3     5.7     11.2     13.9       9.3
                              ----------------------------------------------  ----------------------------------------------
  
                                   9.9      16.8     21.5     28.5     19.5        11.2     4.3     (5.4)    (2.7)      1.3
                              ==============================================  ==============================================
  
    Overall Growth Rate
  
  Internal (without acquisitions)  9.9       6.6      9.2     11.6      9.3        (4.6)   (0.9)    (8.5)    (2.7)     (4.1)
  External                           -      10.2     12.3     16.9     10.2        15.8     5.2      3.1        -       5.4
                              ----------------------------------------------  ----------------------------------------------
  
                                   9.9      16.8     21.5     28.5     19.5        11.2     4.3     (5.4)    (2.7)      1.3
                              ==============================================  ==============================================
  
  </TABLE>
  
  <PAGE>
  
  
                                     Culp, Inc.
                     SALES BY SEGMENT/DIVISION - TREND ANALYSIS
                                1998 vs 1999 vs 2000
                                      Unaudited
                               (Amounts in thousands)
  <TABLE>
  <CAPTION>
  
                                                Fiscal 2000
                               -----------------------------------------------
      Segment/Division            Q1        Q2        Q3        Q4     TOTAL
  -------------------------
  Upholstery Fabrics
  <S>                            <C>       <C>                       <C>
      Culp Decorative Fabrics     50,516    56,897                    107,413
      Culp Velvets/Prints         36,209    41,783                     77,992
      Culp Yarn                    4,129     4,358                      8,487
                               -----------------------------------------------
                                  90,854   103,038                    193,892
  
  Mattress Ticking
      Culp Home Fashions          25,083    26,504                     51,587
                               -----------------------------------------------
  
                                 115,937   129,542                    245,479
                               ===============================================
  
  
                             Percent increase(decrease) from prior year:
      Segment/Division
  -------------------------
  
  Upholstery Fabrics
      Culp Decorative Fabrics        (1.8)     (4.5)                      (3.2)
      Culp Velvets/Prints            20.7       7.9                       13.5
      Culp Yarn                     (37.4)    (31.6)                     (34.5)
                                -----------------------------------------------
                                      3.2      (1.6)                       0.6
  
  Mattress Ticking
      Culp Home Fashions             10.8      12.8                       11.8
                                -----------------------------------------------
  
                                      4.8       1.1                        2.8
                                ===============================================
  
    Overall Growth Rate
  
  Internal (without acquisitions)    4.8       1.1                        2.8
  External                             -         -                          -
                               ================================================
                                     4.8       1.1                        2.8
                               ================================================
  
  </TABLE>
  <PAGE>
  
  
                      CULP, INC. FINANCIAL INFORMATION RELEASE
                                 FINANCIAL NARRATIVE
   for the three and six month periods ended October 31, 1999 and November 1, 1998
  
  
  INCOME STATEMENT COMMENTS
  
       GENERAL  - For the  second  quarter,  net  sales  increased  1.1% to $129.5
  million;  and net income  amounted to $3.2 million,  or $0.27 per share diluted,
  versus $1.3 million,  or $0.10 per share diluted, a year ago. For the six months
  ended October 31, 1999,  net sales  increased  2.8% to $245.5  million;  and net
  income amounted to $4.8 million, or $0.39 per share diluted, compared with a net
  loss of $1.3 million, or $0.10 per share diluted, in the year-earlier period.
  
       The company's 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 every major category
       except leather;
  
       Diverse  Global  Customer  Base -  increasing  its  penetration  into other
       end-use markets in addition to U.S. residential furniture, such as bedding,
       international, commercial furniture and juvenile furniture. The company has
       long-standing   relationships   with  most   major   upholstery   furniture
       manufacturers,  but is not reliant on a single customer or a small group of
       dominant customers. No one customer accounted for more than 9% of net sales
       during the second quarter of fiscal 2000;
  
       Design  Innovation  -  continuing  to  invest in the  design of  upholstery
       fabrics and ticking  with  appealing  patterns  and  textures.  An integral
       component of the value Culp provides to customers is supplying fabrics that
       are  fashionable  and meet  current  consumer  preferences.  The  company's
       principal  design  resources  are  consolidated  in a single  facility that
       provides advanced CAD systems and promotes a sharing of innovative  designs
       among the divisions;
  
       Vertical  Integration - operating as a vertically  integrated  manufacturer
       and taking  advantage of economies  that can be gained by producing the raw
       material components that are used in the manufacture of its products; and
  
       Additional Acquisitions - investing in selective acquisitions complementary
       to existing segments.
  
       NET SALES -  Compared  with the second  quarter  of last  year,  upholstery
  fabric  sales  decreased  1.6% to $103.0  million  and  mattress  ticking  sales
  increased 12.8% to $26.5 million (See Sales by Segment/Division schedule on Page
  5 and Sales by Segment/Division - Trend Analysis on Page 7). International sales
  were down 4.0% for the quarter.
  
       During the first  quarter of fiscal 1999,  the company  implemented a major
  reorganization  from six business  units to four  divisions.  This new corporate
  alignment  grouped  related  operations  together and was accompanied by several
  changes in managerial positions. The company believes that benefits of this move
  have included improved customer service,  more effective use of design resources
  and increased manufacturing efficiency.  Aided by these factors, the company has
  achieved higher sales of upholstery fabrics to U.S.-based  accounts in the first
  half of fiscal 2000. Most of these gains have been offset by a continued decline
  in international  sales. The trend of weakness in international sales, which the
  company believes has also affected other  manufacturers  of upholstery  fabrics,
  has persisted  since the close of fiscal 1998.  During fiscal 1999,  the company
  took steps to mitigate the impact of this  industry-wide  trend by significantly
  curtailing  production  schedules  for certain  international-targeted  fabrics,
  introducing  a new line of printed  cotton  upholstery  fabrics and shifting its
  marketing focus to geographic  areas where demand  appeared more favorable.  The
  company has a  diversified  global base of  customers  and is seeking to broaden
  that further to minimize  exposure to economic  uncertainties  in any geographic
  area.
  <PAGE>
  
  
  
                      CULP, INC. FINANCIAL INFORMATION RELEASE
                                 FINANCIAL NARRATIVE
   for the three and six month periods ended October 31, 1999 and November 1, 1998
  
  
  
       The company  benefited in the second quarter from  increased  sales by Culp
  Home Fashions  (primarily  mattress  ticking) which has  experienced a long-term
  pattern of expansion.  Culp's growth in mattress ticking  continues to be driven
  by the  introduction  of new  designs  and fabric  constructions  as well as the
  advantages of the company's vertical integration.  In particular, the ability to
  manufacture the jacquard  greige (or unfinished)  goods that are then printed to
  produce mattress ticking has aided Culp in meeting faster delivery schedules and
  providing improved overall customer service.
  
  
       GROSS PROFIT - Gross profit for the second quarter increased 15.8% to $23.7
  million and  increased  as a  percentage  of net sales from 16.0% to 18.3%.  The
  increase was due  principally to the actions that the company took during fiscal
  1999,  including a  significant  reduction  in the  capacity  for  manufacturing
  printed flock  fabrics and an intense  effort to reduce  operating  expenses and
  raise productivity.
  
  
       S,G&A  EXPENSES - S,G&A  expenses  for the second  quarter  increased  as a
  percentage  of  sales to 12.4%  from  12.1%  for the  year-earlier  period.  The
  increase  principally  reflects higher costs related to resources for the design
  of new fabrics and information  systems,  as well as other  increased  operating
  expenses intended to support a higher level of sales.
  
  
       INTEREST  EXPENSE - Interest expense of $2.5 million for the second quarter
  was  unchanged  from a year  ago even  though  the  company  had  lower  average
  borrowings  outstanding.  The  lower  level of  borrowings  was  offset by lower
  capitalized interest related to capital expenditures and higher average interest
  rates.
  
  
       OTHER EXPENSE  (INCOME),  NET - Other  expense  (income)  totaled  $416,000
  compared  with  $604,000 a year ago. The decrease is  principally  due to higher
  investment   income  on  the  assets  related  to  the   nonqualified   deferred
  compensation plan.
  
       INCOME  TAXES - The  effective  tax  rate for the  quarter  was  34.0%,  up
  slightly from 33.0% for the same quarter of last year.
  
       EBITDA - Due  principally  to the  increase in net  income,  EBITDA for the
  second quarter increased to $12.4 million compared with $9.6 million a year ago.
  
  
  BALANCE SHEET COMMENTS
  
       WORKING CAPITAL - Accounts receivable as of October 31, 1999 decreased 4.5%
  from the  year-earlier  level.  Days sales  outstanding  decreased to 49 days at
  October  31,  1999  compared  with 52 a year  ago.  Additionally,  the  aging of
  accounts  receivable  was 96.7%  current  and less than 30 days past due  versus
  94.9% at  November  1,  1998.  Inventories  at the close of the  second  quarter
  increased  $5.8 million or 8.1% from November 1, 1998.  Inventory  turns for the
  second  quarter were 5.5 versus 5.7 for the second  quarter of fiscal 1999.  The
  increase in  inventories is primarily  attributable  to an increase at Culp Home
  Fashions  in order to  support  the  sales  growth at this  division.  Operating
  working  capital  (comprised  of accounts  receivable,  inventory  and  accounts
  payable) was $109.6 million at October 31, 1999, down 2.8% from a year ago.
  
  <PAGE>
  
  
                      CULP, INC. FINANCIAL INFORMATION RELEASE
                                 FINANCIAL NARRATIVE
   for the three and six month periods ended October 31, 1999 and November 1, 1998
  
  
  
  
       PROPERTY,  PLANT AND EQUIPMENT - During fiscal 1999 the company reduced its
  capital  spending to $10.7  million  compared  with $35.9 million in fiscal 1998
  because of a focus on improving the results of the considerable investments made
  during  fiscal 1997 and fiscal  1998.  The  company is  committed  to  investing
  sufficient  funds to modernize  and expand its  manufacturing  resources  and is
  budgeting  an  increase  in capital  spending  for fiscal  2000 to $23  million.
  Depreciation  for fiscal 2000 is  currently  estimated to be  approximately  $20
  million.
  
       LONG-TERM DEBT - The company's  funded  debt-to-capital  ratio was 51.7% at
  October 31,  1999,  compared  with 53.5% at November 1, 1998 and 52.1% at May 2,
  1999.  Funded  debt was $134.5  million at October  31,  1999,  down from $148.5
  million at  November  1, 1998 and $138.7  million  at May 2, 1999.  Funded  debt
  equals   long-term  debt,   including   current   maturities,   less  restricted
  investments, which represent unspent IRB funds. The decrease in funded debt from
  May 2, 1999 resulted primarily from an operating cash flow of $16.9 million,  an
  increase in accounts  payable  related to capital  expenditures of $4.8 million,
  offset by capital expenditures of $10.5 million,  repurchases of common stock of
  $5.9 million and dividends paid of $0.8 million.
  
  
  STOCK REPURCHASE
  
       In separate authorizations in June 1998, March 1999 and September 1999, the
  Board of Directors  authorized the use of a total of $15.0 million to repurchase
  the company's common stock.  During fiscal 1999, the company repurchased 938,600
  shares at an average price of $5.90 per share under these authorizations. During
  the first half of fiscal  2000,  the company  repurchased  766,300  shares at an
  average price of $7.70 per share.
metadata_documents: [{"type": "8-K", "sequence": "1", "description": "CULP, INC. 8-K", "secsgml_size_bytes": 58401}]
metadata_filer: {"company-data": {"conformed-name": "CULP INC", "cik": "0000723603", "assigned-sic": "2211", "irs-number": "561001967", "state-of-incorporation": "NC", "fiscal-year-end": "0430"}, "filing-values": {"form-type": "8-K", "act": "34", "file-number": "001-12597", "film-number": "99760517"}, "business-address": {"street1": "101 S MAIN ST", "city": "HIGH POINT", "state": "NC", "zip": "27261-2686", "phone": "3368895161"}, "mail-address": {"street1": "P O BOX 2686", "street2": "101 S MAIN ST", "city": "HIGH POINT", "state": "NC", "zip": "27261"}}
text: SECURITIES AND EXCHANGE COMMISSION
                               Washington, D.C. 20549
  
                                      ---------
  
                                      Form 8-K
  
                                   CURRENT REPORT
  
                  Pursuant to Section 13 or 15(d) of the Securities
                                Exchange Act of 1934
  
                                    -------------
  
         Date of Report (Date of earliest event reported) November 18, 1999
  
                                     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 (10
  pages),  both dated November 18, 1999, related to the fiscal 2000 second quarter
  ended October 31, 1999.
  
  Forward  Looking  Information.  This Report  contains  statements  that could be
  deemed "forward-looking statements" within the meaning of the federal securities
  laws.  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:       Phillip W. Wilson
                                                        Vice President and
                                                        Chief Financial Officer
  
  Dated:   November 18, 1999
  FOR IMMEDIATE RELEASE
  
                       CULP REPORTS SECOND QUARTER NET INCOME
                               ----------------------
            EARNINGS GAIN REFLECTS CONTINUED IMPROVEMENT IN PROFITABILITY
  
  HIGH POINT,  N. C. (Nov.  18,  1999) - Culp,  Inc.  (NYSE:  CFI) today  reported
  results for the second quarter and first six months of its 2000 fiscal year.
  
       For the three  months  ended  October 31,  1999,  Culp  reported  net sales
  increased to $129.5 million compared with $128.2 million a year ago. The company
  reported net income for the quarter of $3.2 million, or $0.27 per share diluted,
  compared  with $1.3 million,  or $0.10 per share  diluted,  in the  year-earlier
  period.
  
       The results for the second quarter  brought net sales for the first half of
  fiscal  2000 to $245.5  million  compared  with $238.8  million a year ago.  The
  company  reported  net income for the first half of $4.8  million,  or $0.39 per
  share  diluted,  compared  with a net loss of $1.3  million,  or $0.10 per share
  diluted, in the year-earlier period.
  
       "We had  expected  that the results  for our second  fiscal  quarter  would
  signal continued bottom-line progress for Culp," said Robert G. Culp, III, chief
  executive  officer.  "The gains not only for the  quarter but also for the first
  half provide  gratifying  endorsement  of the changes made over the past year to
  establish  sustained,  positive momentum in sales and achieve improved operating
  productivity.  We are confident about the potential for further  improvement and
  recognize the importance of maintaining these initiatives."
  
       "An ongoing focus for Culp is developing  closer working  partnerships with
  customers. We are finding that our vertical integration is an important asset in
  that regard.  Culp's control over more of the steps in manufacturing  upholstery
  fabrics and ticking  complements the breadth of our product lines. Our increased
  capacity for producing yarn is proving to be especially  valuable. A majority of
  the yarn we produce  through the Culp Yarn  operations  is now being used by our
  own  fabric   divisions.   Although  this   internalization   is  affecting  the
  year-to-year  comparisons  in net  sales,  having  our own  yarn  facilities  is
  assisting our efforts to provide  manufacturers  with  fashionable  designs that
  enhance the value of their furniture in the retail marketplace."
  Culp  added,  "We are  continuing  to realize  gains in Culp's  fundamental
  competitive  position.  Industry trends appear generally  favorable at this time
  although most retailers and manufacturers appear to be maintaining close control
  over  inventories.  This,  in turn,  is reducing  our lead time for orders which
  understandably  adds uncertainty to the company's results over the near term. We
  remain  committed  to the  investments  necessary  to support  our  longer  term
  expansion.  Our capital expenditures for fiscal 2000 are now expected to be more
  than double the $10.7 million  invested during last year.  These funds are being
  used both to modernize and expand the company's  manufacturing  and distribution
  capability.
  
       "We are pleased that our strong  financial  position is enabling us to fund
  these  capital  expenditures  and still  maintain  an ongoing  stock  repurchase
  program.  During the second  quarter,  we invested an additional $5.5 million to
  repurchase our shares. We currently have remaining  authorization from the Board
  of  Directors  to invest $3.6  million in this  program.  We believe  that these
  repurchases will prove to be a sound investment of the company's capital."
  
       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.
  CULP, INC.
                                             Condensed Financial Highlights
                                                       (Unaudited)
                                                                                   Three Months Ended
                                                                     ----------------------------------------------
                                                                        October 31, 1999           November 1, 1998
                                                                        ----------------           ----------------
  Net sales                                                         $        129,542,000      $       128,159,000
  Net income                                                        $          3,160,000      $         1,307,000
  Net income per share:
     Basic                                                          $               0.27      $              0.10
     Diluted                                                        $               0.27      $              0.10
  Average shares outstanding:
     Basic                                                                    11,749,000               12,995,000
     Diluted                                                                  11,868,000               13,120,000
  
                                                                                    Six Months Ended
                                                                      ---------------------------------------------
                                                                         October 31, 1999          November 1, 1998
                                                                         ----------------          ----------------
  Net sales                                                          $       245,479,000        $     238,826,000
  Net income (loss)                                                  $         4,757,000        $      (1,333,000)
  Net income (loss) per share:
     Basic                                                           $              0.40        $           (0.10)
     Diluted                                                         $              0.39        $           (0.10)
  Average shares outstanding:
     Basic                                                                    11,906,000               12,998,000
     Diluted                                                                  12,044,000               13,175,000
  This  release  contains   statements  that  could  be  deemed   "forward-looking
  statements"  within the meaning of the federal  securities laws. 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. -END-
  CULP, INC. FINANCIAL INFORMATION RELEASE
                      CONSOLIDATED STATEMENTS OF INCOME (LOSS)
   FOR THE THREE MONTHS AND SIX MONTHS ENDED OCTOBER 31, 1999 AND NOVEMBER 1, 1998
  
                  (Amounts in Thousands, Except for Per Share Data)
  THREE MONTHS ENDED (UNAUDITED)
                                               ---------------------------------------------------------------------------------
  
                                                          Amounts                                          Percent of Sales
                                               -------------------------------                       -----------------------------
                                                October 31,     November 1,        % Over
                                                   1999             1998          (Under)               2000            1999
                                               --------------  ---------------  -------------        --------------  -------------
  Net sales                                 $        129,542          128,159          1.1 %              100.0 %         100.0 %
  Cost of sales                                      105,835          107,685         (1.7)%               81.7 %          84.0 %
                                               --------------  ---------------  -------------        --------------  -------------
           Gross profit                               23,707           20,474         15.8 %               18.3 %          16.0 %
  
  Selling, general and
    administrative expenses                           16,035           15,474          3.6 %               12.4 %          12.1 %
                                               --------------  ---------------  -------------        --------------  -------------
           Income from operations                      7,672            5,000         53.4 %                5.9 %           3.9 %
  
  Interest expense                                     2,484            2,464          0.8 %                1.9 %           1.9 %
  Interest income                                        (16)             (19)       (15.8)%               (0.0)%          (0.0)%
  Other expense (income), net                            416              604        (31.1)%                0.3 %           0.5 %
                                               --------------  ---------------  -------------        --------------  -------------
           Income before income taxes                  4,788            1,951        145.4 %                3.7 %           1.5 %
  
  Income taxes  *                                      1,628              644        152.8 %               34.0 %          33.0 %
                                               --------------  ---------------  -------------        --------------  -------------
  
           Net income                       $          3,160            1,307        141.8 %                2.4 %           1.0 %
                                               ==============  ===============  =============        ==============  =============
  
  Net income per share                                 $0.27            $0.10        170.0 %
  Net income per share, assuming dilution              $0.27            $0.10        170.0 %
  Dividends per share                                 $0.035           $0.035          0.0 %
  Average shares outstanding                          11,749           12,995         (9.6)%
  Average shares outstanding, assuming dilution       11,868           13,120         (9.5)%
  
                                                                         SIX MONTHS ENDED (UNAUDITED)
                                               ---------------------------------------------------------------------------------
  
                                                          Amounts                                          Percent of Sales
                                               -------------------------------                       -----------------------------
                                                October 31,     November 1,        % Over
                                                   1999             1998          (Under)               2000            1999
                                               --------------  ---------------  -------------        --------------  -------------
  Net sales                                 $        245,479          238,826          2.8 %              100.0 %         100.0 %
  Cost of sales                                      201,360          204,741         (1.7)%               82.0 %          85.7 %
                                               --------------  ---------------  -------------        --------------  -------------
           Gross profit                               44,119           34,085         29.4 %               18.0 %          14.3 %
  
  Selling, general and
    administrative expenses                           31,073           29,947          3.8 %               12.7 %          12.5 %
                                               --------------  ---------------  -------------        --------------  -------------
           Income from operations                     13,046            4,138        215.3 %                5.3 %           1.7 %
  
  Interest expense                                     4,900            4,825          1.6 %                2.0 %           2.0 %
  Interest income                                        (33)             (72)       (54.2)%               (0.0)%          (0.0)%
  Other expense (income), net                            971            1,374        (29.3)%                0.4 %           0.6 %
                                               --------------  ---------------  -------------        --------------  -------------
           Income (loss) before income                 7,208           (1,989)       462.4 %                2.9 %          (0.8)%
           taxes
  
  Income taxes  *                                      2,451             (656)       473.6 %               34.0 %          33.0 %
                                               --------------  ---------------  -------------        --------------  -------------
  
           Net income (loss)                $          4,757           (1,333)       456.9 %                1.9 %          (0.6)%
                                               ==============  ===============  =============        ==============  =============
  
  Net income (loss) per share                          $0.40           ($0.10)       500.0 %
  Net income (loss) per share, assuming dilution       $0.39           ($0.10)       490.0 %
  Dividends per share                                  $0.07            $0.07          0.0 %
  Average shares outstanding                          11,906           12,998         (8.4)%
  Average shares outstanding, assuming dilution       12,044           13,175         (8.6)%
  * Percent of sales column is calculated as a % of income (loss) before
  income taxes.
  CULP, INC. FINANCIAL INFORMATION RELEASE
                             CONSOLIDATED BALANCE SHEETS
                 OCTOBER 31, 1999, NOVEMBER 1, 1998 AND MAY 2, 1999
                                      Unaudited
                               (Amounts in Thousands)
  Amounts                             Increase
                                                 ---------------------------------------
                                                     October 31,        November 1,                (Decrease)                * May 2,
                                                                                       ---------------------------------
                                                        1999                1998            Dollars         Percent           1999
                                                 --------------------  ---------------  ----------------    -------------  -----------
  
  Current assets
  Cash and cash investments             $                 790            1,177              (387)       (32.9)%             509
         Accounts receivable                                  69,749           72,998            (3,249)        (4.5)%          70,503
         Inventories                                          78,234           72,392             5,842          8.1 %          67,070
         Other current assets                                  8,865            7,230             1,635         22.6 %           9,633
                                                 --------------------  ---------------  ----------------   -------------  ------------
                    Total current assets                     157,638          153,797             3,841          2.5 %         147,715
  
  Restricted investments                                       1,085            3,409            (2,324)       (68.2)%           3,340
  Property, plant & equipment, net                           124,318          126,050            (1,732)        (1.4)%         123,310
  Goodwill                                                    50,571           54,433            (3,862)        (7.1)%          51,269
  Other assets                                                 5,064            4,333               731         16.9 %           4,978
                                                 --------------------  ---------------  ----------------   -------------  ------------
  
                    Total assets               $             338,676          342,022            (3,346)        (1.0)%         330,612
                                                 ====================  ===============  ================   =============  ============
  
  Current liabilities
         Current maturities of long-term debt $                1,678            1,678                 0          0.0 %           1,678
         Accounts payable                                     38,427           32,640             5,787         17.7 %          25,687
         Accrued expenses                                     22,947           17,143             5,804         33.9 %          21,026
         Income taxes payable                                  1,786                0             1,786        100.0 %               0
                                                --------------------  ---------------  ----------------    -------------  ------------
                    Total current liabilities                 64,838           51,461            13,377         26.0 %          48,391
  
  Long-term debt                                             133,875          150,210           (16,335)       (10.9)%         140,312
  
  Deferred income taxes                                       14,583           11,227             3,356         29.9 %          14,583
                                                --------------------  ---------------  ----------------    -------------  ------------
                    Total liabilities                        213,296          212,898               398          0.2 %         203,286
  
  Shareholders' equity                                       125,380          129,124            (3,744)        (2.9)%         127,326
                                                --------------------  ---------------  ----------------    -------------  ------------
                    Total liabilities and
                      shareholders' equity    $              338,676          342,022            (3,346)        (1.0)%         330,612
                                                ====================  ===============  ================    =============  ============
  
  Shares outstanding                                          11,320           12,995           (1,675)       (12.9) %          12,079
                                                ====================  ===============  ================    =============  ============
  *  Derived from audited financial statements.
  CULP, INC. FINANCIAL
                                 INFORMATION RELEASE
                        CONSOLIDATED STATEMENTS OF CASH FLOWS
           FOR THE SIX MONTHS ENDED OCTOBER 31, 1999 AND NOVEMBER 1, 1998
                                      Unaudited
                               (Amounts in Thousands)
  SIX MONTHS ENDED
                                                                                          --------------------------------
                                                                                                      Amounts
                                                                                          --------------------------------
                                                                                           October 31,      November 1,
                                                                                               1999             1998
                                                                                          ---------------  ---------------
  
  Cash flows from operating activities:
  Net income (loss)                                                             $             4,757           (1,333)
       Adjustments to reconcile net income (loss) to net
          cash provided by operating activities:
              Depreciation                                                                         9,516            9,198
              Amortization of intangible assets                                                      798              829
              Changes in assets and liabilities:
                  Accounts receivable                                                                754              775
                  Inventories                                                                    (11,164)           6,202
                  Other current assets                                                               768              578
                  Other assets                                                                      (186)             (93)
                  Accounts payable                                                                 7,937           (2,395)
                  Accrued expenses                                                                 1,921             (793)
                  Income taxes payable                                                             1,786           (1,282)
                                                                                          ---------------  ---------------
                      Net cash provided by operating activities                                   16,887           11,686
                                                                                          ---------------  ---------------
  Cash flows from investing activities:
       Capital expenditures                                                                      (10,524)          (6,443)
       Purchases of restricted investments                                                           (27)             (66)
       Sale of restricted investments                                                              2,282              678
                                                                                          ---------------  ---------------
                      Net cash used in investing activities                                       (8,269)          (5,831)
                                                                                          ---------------  ---------------
  Cash flows from financing activities:
       Proceeds from issuance of long-term debt                                                    5,333            2,535
       Principal payments on long-term debt                                                      (11,770)          (6,284)
       Change in accounts payable-capital expenditures                                             4,803           (2,179)
       Dividends paid                                                                               (822)            (910)
       Payments to acquire common stock                                                           (5,901)            (160)
       Proceeds from common stock issued                                                              20                8
                                                                                          ---------------  ---------------
                      Net cash used in financing activities                                       (8,337)          (6,990)
                                                                                          ---------------  ---------------
  
  Increase (decrease) in cash and cash investments                                                   281           (1,135)
  
  Cash and cash investments at beginning of period                                                   509            2,312
                                                                                          ---------------  ---------------
  
  Cash and cash investments at end of period                                         $               790            1,177
                                                                                          ===============  ===============
  CULP, INC. FINANCIAL INFORMATION RELEASE
                                 FINANCIAL ANALYSIS
                                  OCTOBER 31, 1999
  FISCAL 99                            FISCAL 00
                                           -------------   ---------------------------------------------------------   ---------------
                                                Q2              Q1             Q2            Q3            Q4               LTM
                                           -------------   ---------------------------------------------------------   ---------------
  
  INVENTORIES
  Inventory turns                           5.7              5.4            5.5
  
  RECEIVABLES
          Days sales in receivables                  52               45             49
          Percent current & less than 30
            days past due                          94.9%            93.2%         96.7%
  
  WORKING CAPITAL
          Current  ratio                            3.0              3.1            2.4
          Working capital turnover (4)              4.4              4.4            4.4
          Operating working capital (4)        $112,750         $111,222       $109,556
  
  PROPERTY, PLANT & EQUIPMENT
          Depreciation rate                        8.4%             8.0%           7.8%
          Percent property, plant &
            equipment are depreciated             45.0%            49.0%          49.1%
          Capital expenditures                  $10,689 (1)       $2,420         $8,104
  
  PROFITABILITY
          Return on average total capital          4.2%             4.8%           7.3%                                          5.8%
          Return on average equity                 4.1%             5.0%          10.0%                                          7.2%
          Net income per share                    $0.10            $0.13          $0.27                                         $0.75
          Net income per share (diluted)          $0.10            $0.13          $0.27                                         $0.74
  
  LEVERAGE (3)
          Total liabilities/equity               164.9%           155.9%         170.1%
          Funded debt/equity                     115.0%           106.3%         107.2%
          Funded debt/capital employed            53.5%            51.5%          51.7%
          Funded debt                          $148,479         $136,222       $134,468
          Funded debt/EBITDA (LTM) (6)             3.95             3.33           3.08
          EBITDA/Interest expense, net(LTM)         4.2              4.3            4.6
  
  OTHER
          Book value per share                    $9.94           $10.64         $11.08
          Employees at quarter end                4,014            4,050          3,962
          Sales per employee (annualized)      $124,000         $116,000        129,000
          Capital employed (3)                 $277,603         $264,349       $259,848
          Effective income tax rate               33.0%            34.0%          34.0%
          EBITDA (2)                             $9,649           $9,977        $12,412                                       $43,445
          EBITDA/net sales                         7.5%             8.6%           9.6%                                          8.9%
  
    (1) Expenditures for entire year
    (2) Earnings before interest, income taxes, and depreciation & amortization.
    (3) Long-term debt, funded debt and capital employed are all net of restricted
        investments.
    (4) Working capital for this calculation is accounts receivable, inventories
        and accounts payable.
    (5) LTM represents "Latest Twelve Months"
    (6) EBITDA includes capitalized interest and pro forma amounts for
        acquisitions.
  CULP, INC. FINANCIAL INFORMATION RELEASE
                              SALES BY SEGMENT/DIVISION
   FOR THE THREE MONTHS AND SIX MONTHS ENDED OCTOBER 31, 1999 AND NOVEMBER 1, 1998
  
                               (Amounts in thousands)
  THREE MONTHS ENDED (UNAUDITED)
                                         --------------------------------------------------------------------------
  
                                                  Amounts                                Percent of Total Sales
                                         --------------------------                    ----------------------------
                                         October 31,   November 1,        % Over
  Segment/Division                          1999          1998           (Under)           2000            1999
  ------------------------------------   ------------  ------------   ---------------  -------------   ------------
  Upholstery Fabrics
  Culp Decorative Fabrics         $       56,897        59,573        (4.5)%          43.9 %          46.5 %
      Culp Velvets/Prints                     41,783        38,728         7.9 %          32.3 %          30.2 %
      Culp Yarn                                4,358         6,367       (31.6)%           3.4 %           5.0 %
                                         ------------  ------------   ---------------  -------------   ------------
                                             103,038       104,668        (1.6)%          79.5 %          81.7 %
  
  Mattress Ticking
      Culp Home Fashions                      26,504        23,491        12.8 %          20.5 %          18.3 %
                                         ------------  ------------   ---------------  -------------   ------------
  
                                    * $      129,542       128,159         1.1 %         100.0 %         100.0 %
                                         ============  ============   ===============  =============   ============
  
                                                               SIX MONTHS ENDED (UNAUDITED)
                                         --------------------------------------------------------------------------
  
                                                  Amounts                                Percent of Total Sales
                                         --------------------------                    ----------------------------
                                         October 31,   November 1,        % Over
  Segment/Division                          1999          1998           (Under)        2000            1999
  ------------------------------------   ------------  ------------   ---------------  -------------   ------------
  Upholstery Fabrics
      Culp Decorative Fabrics         $      107,413       111,018        (3.2)%          43.8 %          46.5 %
      Culp Velvets/Prints                     77,992        68,722        13.5 %          31.8 %          28.8 %
      Culp Yarn                                8,487        12,963       (34.5)%           3.5 %           5.4 %
                                         ------------  ------------   ---------------  -------------   ------------
                                             193,892       192,703         0.6 %          79.0 %          80.7 %
  
  Mattress Ticking
      Culp Home Fashions                      51,587        46,123        11.8 %          21.0 %          19.3 %
                                         ------------  ------------   ---------------  -------------   ------------
  
                                    * $      245,479       238,826         2.8 %         100.0 %         100.0 %
                                         ============  ============   ===============  =============   ============
  
  * U.S.  sales were $97,216 and $94,472 for the second quarter of fiscal 2000 and
  fiscal  1999,  respectively;  and  $189,340  and  $178,782 for the six months of
  fiscal 2000 and fiscal 1999, respectively. The percentage increase in U.S. sales
  was 2.9% for the second quarter and an increase of 5.9% for the six months.
  CULP, INC. FINANCIAL INFORMATION RELEASE
                       INTERNATIONAL SALES BY GEOGRAPHIC AREA
   FOR THE THREE MONTHS AND SIX MONTHS ENDED OCTOBER 31, 1999 AND NOVEMBER 1, 1998
  (Amounts in thousands)
  
                                                                 THREE MONTHS ENDED (UNAUDITED)
                                         --------------------------------------------------------------------------------
  
                                                    Amounts                                   Percent of Total Sales
                                         -------------------------------                   ------------------------------
                                          October 31,      November 1,       % Over
           Geographic Area                    1999            1998           (Under)           2000             1999
  ----------------------------------     ---------------  --------------  --------------   -------------     ------------
  North America (Excluding USA)     $             9,912           8,502       16.6 %           30.7 %           25.2 %
  Europe                                          6,069           7,223      (16.0)%           18.8 %           21.4 %
  Middle East                                     8,960          10,060      (10.9 %           27.7 %           29.9 %
  Far East & Asia                                 5,357           5,435       (1.4)%           16.6 %           16.1 %
  South America                                     630           1,238      (49.1)%            1.9 %            3.7 %
  All other areas                                 1,398           1,229       13.8 %            4.3 %            3.6 %
                                         ---------------  --------------  --------------   -------------     ------------
  
                                    $            32,326          33,687       (4.0)%          100.0 %          100.0 %
                                         ===============  ==============  ==============   =============     ============
  
                                                                  SIX MONTHS ENDED (UNAUDITED)
                                         --------------------------------------------------------------------------------
  
                                                    Amounts                                   Percent of Total Sales
                                         -------------------------------                   ------------------------------
                                          October 31,      November 1,       % Over
           Geographic Area                    1999            1998           (Under)           2000             1999
  ----------------------------------     ---------------  --------------  --------------   -------------     ------------
  North America (Excluding USA)     $            17,588          15,755       11.6 %           31.3 %           26.2 %
  Europe                                          8,998          10,906      (17.5)%           16.0 %           18.2 %
  Middle East                                    15,952          18,360      (13.1)%           28.4 %           30.6 %
  Far East & Asia                                 9,666          10,303       (6.2)%           17.2 %           17.2 %
  South America                                   1,250           2,238      (44.1)%            2.2 %            3.7 %
  All other areas                                 2,685           2,482        8.2 %            4.8 %            4.1 %
                                         ---------------  --------------  --------------   -------------     ------------
  
                                    $            56,139          60,044       (6.5)%          100.0 %          100.0 %
                                         ===============  ==============  ==============   =============     ============
  International  sales,  and the  percentage of total sales,  for each of the last
  five fiscal years follows: fiscal 1995-$57,971 (19%); fiscal 1996-$77,397 (22%);
  fiscal 1997-$101,571 (25%); fiscal 1998-$137,223 (29%); and fiscal 1999-$113,354
  (23%).  International  sales for the second quarter  represented 25.0% and 26.3%
  for 2000 and 1999,  respectively.  Year-to-date  international sales represented
  22.9% and 25.1% of total sales for 2000 and 1999, respectively.
  Culp, Inc.
                     SALES BY SEGMENT/DIVISION - TREND ANALYSIS
                                1998 vs 1999 vs 2000
                                      Unaudited
                               (Amounts in thousands)
  Fiscal 1998                                     Fiscal 1999
                             ----------------------------------------------  ----------------------------------------------
      Segment/Division          Q1       Q2        Q3       Q4     TOTAL        Q1       Q2       Q3       Q4      TOTAL
  -------------------------
  Upholstery Fabrics
  Culp Decorative Fabrics  39,814    56,781   53,415   60,155  210,165      51,445  59,573   50,520   60,520   222,058
      Culp Velvets/Prints      38,397    43,928   44,020   45,044  171,389      29,994  38,728   34,949   40,402   144,073
      Culp Yarn                     -         -      761    7,115    7,876       6,596   6,367    4,088    4,462    21,513
                             ----------------------------------------------  ----------------------------------------------
                               78,211   100,709   98,196  112,314  389,430      88,035 104,668   89,557  105,384   387,644
  
  Mattress Ticking
      Culp Home Fashions       21,287    22,217   20,261   23,520   87,285      22,632  23,491   22,536   26,781    95,440
                             ----------------------------------------------  ----------------------------------------------
  
                               99,498   122,926  118,457  135,834  476,715     110,667 128,159  112,093  132,165   483,084
                             ==============================================  ==============================================
  
                                  Percent increase(decrease) from prior year:
      Segment/Division
  -------------------------
  
  Upholstery Fabrics
      Culp Decorative Fabrics      2.2      24.2     35.8     37.7     25.3        29.2     4.9     (5.4)     0.6       5.7
      Culp Velvets/Prints         10.1       9.2      9.0      9.9      9.5       (21.9)  (11.8)   (20.6)   (10.3)    (15.9)
      Culp Yarn                      -         -    100.0    100.0    100.0       100.0   100.0    437.2    (37.3)    173.1
                              ----------------------------------------------  ----------------------------------------------
                                   5.9      17.2     23.2     32.6     20.1        12.6     3.9     (8.8)    (6.2)     (0.5)
  
  Mattress Ticking
      Culp Home Fashions          27.5      15.4     14.2     12.0     16.9         6.3     5.7     11.2     13.9       9.3
                              ----------------------------------------------  ----------------------------------------------
  
                                   9.9      16.8     21.5     28.5     19.5        11.2     4.3     (5.4)    (2.7)      1.3
                              ==============================================  ==============================================
  
    Overall Growth Rate
  
  Internal (without acquisitions)  9.9       6.6      9.2     11.6      9.3        (4.6)   (0.9)    (8.5)    (2.7)     (4.1)
  External                           -      10.2     12.3     16.9     10.2        15.8     5.2      3.1        -       5.4
                              ----------------------------------------------  ----------------------------------------------
  
                                   9.9      16.8     21.5     28.5     19.5        11.2     4.3     (5.4)    (2.7)      1.3
                              ==============================================  ==============================================
  Culp, Inc.
                     SALES BY SEGMENT/DIVISION - TREND ANALYSIS
                                1998 vs 1999 vs 2000
                                      Unaudited
                               (Amounts in thousands)
  Fiscal 2000
                               -----------------------------------------------
      Segment/Division            Q1        Q2        Q3        Q4     TOTAL
  -------------------------
  Upholstery Fabrics
  Culp Decorative Fabrics     50,516    56,897                    107,413
      Culp Velvets/Prints         36,209    41,783                     77,992
      Culp Yarn                    4,129     4,358                      8,487
                               -----------------------------------------------
                                  90,854   103,038                    193,892
  
  Mattress Ticking
      Culp Home Fashions          25,083    26,504                     51,587
                               -----------------------------------------------
  
                                 115,937   129,542                    245,479
                               ===============================================
  
                             Percent increase(decrease) from prior year:
      Segment/Division
  -------------------------
  
  Upholstery Fabrics
      Culp Decorative Fabrics        (1.8)     (4.5)                      (3.2)
      Culp Velvets/Prints            20.7       7.9                       13.5
      Culp Yarn                     (37.4)    (31.6)                     (34.5)
                                -----------------------------------------------
                                      3.2      (1.6)                       0.6
  
  Mattress Ticking
      Culp Home Fashions             10.8      12.8                       11.8
                                -----------------------------------------------
  
                                      4.8       1.1                        2.8
                                ===============================================
  
    Overall Growth Rate
  
  Internal (without acquisitions)    4.8       1.1                        2.8
  External                             -         -                          -
                               ================================================
                                     4.8       1.1                        2.8
                               ================================================
  CULP, INC. FINANCIAL INFORMATION RELEASE
                                 FINANCIAL NARRATIVE
   for the three and six month periods ended October 31, 1999 and November 1, 1998
  
  INCOME STATEMENT COMMENTS
  
       GENERAL  - For the  second  quarter,  net  sales  increased  1.1% to $129.5
  million;  and net income  amounted to $3.2 million,  or $0.27 per share diluted,
  versus $1.3 million,  or $0.10 per share diluted, a year ago. For the six months
  ended October 31, 1999,  net sales  increased  2.8% to $245.5  million;  and net
  income amounted to $4.8 million, or $0.39 per share diluted, compared with a net
  loss of $1.3 million, or $0.10 per share diluted, in the year-earlier period.
  
       The company's 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 every major category
       except leather;
  
       Diverse  Global  Customer  Base -  increasing  its  penetration  into other
       end-use markets in addition to U.S. residential furniture, such as bedding,
       international, commercial furniture and juvenile furniture. The company has
       long-standing   relationships   with  most   major   upholstery   furniture
       manufacturers,  but is not reliant on a single customer or a small group of
       dominant customers. No one customer accounted for more than 9% of net sales
       during the second quarter of fiscal 2000;
  
       Design  Innovation  -  continuing  to  invest in the  design of  upholstery
       fabrics and ticking  with  appealing  patterns  and  textures.  An integral
       component of the value Culp provides to customers is supplying fabrics that
       are  fashionable  and meet  current  consumer  preferences.  The  company's
       principal  design  resources  are  consolidated  in a single  facility that
       provides advanced CAD systems and promotes a sharing of innovative  designs
       among the divisions;
  
       Vertical  Integration - operating as a vertically  integrated  manufacturer
       and taking  advantage of economies  that can be gained by producing the raw
       material components that are used in the manufacture of its products; and
  
       Additional Acquisitions - investing in selective acquisitions complementary
       to existing segments.
  
       NET SALES -  Compared  with the second  quarter  of last  year,  upholstery
  fabric  sales  decreased  1.6% to $103.0  million  and  mattress  ticking  sales
  increased 12.8% to $26.5 million (See Sales by Segment/Division schedule on Page
  5 and Sales by Segment/Division - Trend Analysis on Page 7). International sales
  were down 4.0% for the quarter.
  
       During the first  quarter of fiscal 1999,  the company  implemented a major
  reorganization  from six business  units to four  divisions.  This new corporate
  alignment  grouped  related  operations  together and was accompanied by several
  changes in managerial positions. The company believes that benefits of this move
  have included improved customer service,  more effective use of design resources
  and increased manufacturing efficiency.  Aided by these factors, the company has
  achieved higher sales of upholstery fabrics to U.S.-based  accounts in the first
  half of fiscal 2000. Most of these gains have been offset by a continued decline
  in international  sales. The trend of weakness in international sales, which the
  company believes has also affected other  manufacturers  of upholstery  fabrics,
  has persisted  since the close of fiscal 1998.  During fiscal 1999,  the company
  took steps to mitigate the impact of this  industry-wide  trend by significantly
  curtailing  production  schedules  for certain  international-targeted  fabrics,
  introducing  a new line of printed  cotton  upholstery  fabrics and shifting its
  marketing focus to geographic  areas where demand  appeared more favorable.  The
  company has a  diversified  global base of  customers  and is seeking to broaden
  that further to minimize  exposure to economic  uncertainties  in any geographic
  area.
  CULP, INC. FINANCIAL INFORMATION RELEASE
                                 FINANCIAL NARRATIVE
   for the three and six month periods ended October 31, 1999 and November 1, 1998
  
       The company  benefited in the second quarter from  increased  sales by Culp
  Home Fashions  (primarily  mattress  ticking) which has  experienced a long-term
  pattern of expansion.  Culp's growth in mattress ticking  continues to be driven
  by the  introduction  of new  designs  and fabric  constructions  as well as the
  advantages of the company's vertical integration.  In particular, the ability to
  manufacture the jacquard  greige (or unfinished)  goods that are then printed to
  produce mattress ticking has aided Culp in meeting faster delivery schedules and
  providing improved overall customer service.
  
       GROSS PROFIT - Gross profit for the second quarter increased 15.8% to $23.7
  million and  increased  as a  percentage  of net sales from 16.0% to 18.3%.  The
  increase was due  principally to the actions that the company took during fiscal
  1999,  including a  significant  reduction  in the  capacity  for  manufacturing
  printed flock  fabrics and an intense  effort to reduce  operating  expenses and
  raise productivity.
  
       S,G&A  EXPENSES - S,G&A  expenses  for the second  quarter  increased  as a
  percentage  of  sales to 12.4%  from  12.1%  for the  year-earlier  period.  The
  increase  principally  reflects higher costs related to resources for the design
  of new fabrics and information  systems,  as well as other  increased  operating
  expenses intended to support a higher level of sales.
  
       INTEREST  EXPENSE - Interest expense of $2.5 million for the second quarter
  was  unchanged  from a year  ago even  though  the  company  had  lower  average
  borrowings  outstanding.  The  lower  level of  borrowings  was  offset by lower
  capitalized interest related to capital expenditures and higher average interest
  rates.
  
       OTHER EXPENSE  (INCOME),  NET - Other  expense  (income)  totaled  $416,000
  compared  with  $604,000 a year ago. The decrease is  principally  due to higher
  investment   income  on  the  assets  related  to  the   nonqualified   deferred
  compensation plan.
  
       INCOME  TAXES - The  effective  tax  rate for the  quarter  was  34.0%,  up
  slightly from 33.0% for the same quarter of last year.
  
       EBITDA - Due  principally  to the  increase in net  income,  EBITDA for the
  second quarter increased to $12.4 million compared with $9.6 million a year ago.
  
  BALANCE SHEET COMMENTS
  
       WORKING CAPITAL - Accounts receivable as of October 31, 1999 decreased 4.5%
  from the  year-earlier  level.  Days sales  outstanding  decreased to 49 days at
  October  31,  1999  compared  with 52 a year  ago.  Additionally,  the  aging of
  accounts  receivable  was 96.7%  current  and less than 30 days past due  versus
  94.9% at  November  1,  1998.  Inventories  at the close of the  second  quarter
  increased  $5.8 million or 8.1% from November 1, 1998.  Inventory  turns for the
  second  quarter were 5.5 versus 5.7 for the second  quarter of fiscal 1999.  The
  increase in  inventories is primarily  attributable  to an increase at Culp Home
  Fashions  in order to  support  the  sales  growth at this  division.  Operating
  working  capital  (comprised  of accounts  receivable,  inventory  and  accounts
  payable) was $109.6 million at October 31, 1999, down 2.8% from a year ago.
  CULP, INC. FINANCIAL INFORMATION RELEASE
                                 FINANCIAL NARRATIVE
   for the three and six month periods ended October 31, 1999 and November 1, 1998
  
       PROPERTY,  PLANT AND EQUIPMENT - During fiscal 1999 the company reduced its
  capital  spending to $10.7  million  compared  with $35.9 million in fiscal 1998
  because of a focus on improving the results of the considerable investments made
  during  fiscal 1997 and fiscal  1998.  The  company is  committed  to  investing
  sufficient  funds to modernize  and expand its  manufacturing  resources  and is
  budgeting  an  increase  in capital  spending  for fiscal  2000 to $23  million.
  Depreciation  for fiscal 2000 is  currently  estimated to be  approximately  $20
  million.
  
       LONG-TERM DEBT - The company's  funded  debt-to-capital  ratio was 51.7% at
  October 31,  1999,  compared  with 53.5% at November 1, 1998 and 52.1% at May 2,
  1999.  Funded  debt was $134.5  million at October  31,  1999,  down from $148.5
  million at  November  1, 1998 and $138.7  million  at May 2, 1999.  Funded  debt
  equals   long-term  debt,   including   current   maturities,   less  restricted
  investments, which represent unspent IRB funds. The decrease in funded debt from
  May 2, 1999 resulted primarily from an operating cash flow of $16.9 million,  an
  increase in accounts  payable  related to capital  expenditures of $4.8 million,
  offset by capital expenditures of $10.5 million,  repurchases of common stock of
  $5.9 million and dividends paid of $0.8 million.
  
  STOCK REPURCHASE
  
       In separate authorizations in June 1998, March 1999 and September 1999, the
  Board of Directors  authorized the use of a total of $15.0 million to repurchase
  the company's common stock.  During fiscal 1999, the company repurchased 938,600
  shares at an average price of $5.90 per share under these authorizations. During
  the first half of fiscal  2000,  the company  repurchased  766,300  shares at an
  average price of $7.70 per share.