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) May 31, 2000
  
                                     CULP, INC.
  
               (Exact name of registrant as specified in its charter)
  
  
           North Carolina                0-12781             56-1001967
  (State or other jurisdiction of  (Commission File No.)    (IRS Employer
           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 May 31, 2000,  related to the fiscal 2000 fourth quarter and
  year ended April 30, 2000.
  
  Forward Looking Information.  This Report contains statements that may be deemed
  "forward-looking  statements" within the meaning of the federal securities laws,
  including the Private Securities  Litigation Reform Act of 1995. Such statements
  are inherently  subject to risks and uncertainties.  Forward-looking  statements
  are statements  that include  projections,  expectations or beliefs about future
  events or results or otherwise  are not  statements  of  historical  fact.  Such
  statements  are  often  characterized  by  qualifying  words  such as  "expect,"
  "believe," "estimate," "plan" and "project" and their derivatives.  Factors that
  could influence the matters  discussed in such  statements  include the level of
  housing  starts and sales of  existing  homes,  consumer  confidence,  trends in
  disposable income, and general economic conditions.  Decreases in these economic
  indicators could have a negative effect on the Company's business and prospects.
  Likewise,  increases in interest rates,  particularly  home mortgage rates,  and
  increases in consumer  debt or the general rate of  inflation,  could affect the
  Company adversely.  Because of the significant percentage of the Company's sales
  derived from international shipments,  strengthening of the U. S. dollar against
  other currencies could make the Company's products less competitive on the basis
  of price in  markets  outside  the United  States.  Additionally,  economic  and
  political  instability  in  international  areas could affect the demand for the
  Company's products.
  
  
  
                                      SIGNATURE
  
  
  Pursuant  to the  requirements  of the  Securities  Exchange  Act of  1934,  the
  Registrant  has duly  caused  this  report  to be  signed  on its  behalf by the
  undersigned hereunto duly authorized.
  
  
                                      CULP, INC.
                                     (Registrant)
  
  
                                      By:       Phillip W. Wilson
                                                Vice President and
                                                Chief Financial Officer
  
  
  
  
  
  
  Dated:   May 31, 2000
  
  
  <PAGE>
  
  
  FOR IMMEDIATE RELEASE
  
  
                  CULP REPORTS SHARPLY HIGHER FISCAL 2000 EARNINGS
                               ----------------------
                       GAINS HIGHLIGHT IMPROVED PROFITABILITY
  
  HIGH  POINT,  N. C. (May 31,  2000) - Culp,  Inc.  (NYSE:  CFI)  today  reported
  increased  sales and net income per share for the  fiscal  year ended  April 30,
  2000.
  
       Net sales for the 2000 fiscal year totaled $488.1  million,  up from $483.1
  million in fiscal  1999.  The company  reported  net income for the year of $9.4
  million,  or $0.80 per share diluted,  compared with net income of $3.1 million,
  or $0.24 per share diluted, in fiscal 1999.
  
       Net sales for the fourth  quarter  totaled  $129.4  million  compared  with
  $132.2  million a year ago.  The company  reported net income for the quarter of
  $3.2 million,  or $0.28 per share diluted,  compared with $2.9 million, or $0.23
  per share diluted, in the year-earlier period.
  
       "Our  results  for the year as a whole  signaled a  gratifying  increase in
  Culp's profitability and highlight the underlying strength of our organization,"
  said  Robert G. Culp,  III,  chief  executive  officer.  "We had stated that our
  primary  goal for fiscal  2000 was to achieve  continued  improvement  in Culp's
  performance.  We achieved meaningful progress toward that objective and now must
  sustain the momentum by capitalizing  even more effectively on our assets.  This
  was the first full year in which the  realignment of our operating  units was in
  place, and we are very encouraged by the higher efficiency and improved customer
  service  that is  resulting  from  this  new  structure.  We are  continuing  to
  emphasize the importance of building strong working  relationships with existing
  customers  because of the ongoing  consolidation  that is  occurring in the home
  furnishings  industry.  We are also pursuing  opportunities to broaden our sales
  base further in the United States and internationally.
  
       "We  believe  that  Culp's  breadth  of  offerings  and the  extent  of our
  manufacturing  resources equip us well to gain  additional  market share. As the
  home  furnishings  industry  continues to change to meet consumers'  demands,  a
  major challenge is how to maintain a broad selection of competitive  fabrics and
  yet meet much shorter lead times. As a fully integrated  marketer,  Culp has the
  ability to  include  customers  actively  in all  aspects  of the  manufacturing
  process,  starting with the vital design stage.  This  involvement  encourages a
  close partnership that enhances our functional support of a customer's marketing
  campaigns and helps us identify  important styling trends.  One of the hallmarks
  of our progress during fiscal 2000 was the increasingly positive response of the
  marketplace to Culp's  designs.  We ended the year on an especially  strong note
  with  outstanding  showroom  placements  of our  fabrics at the major High Point
  spring market.  We are encouraged by that  endorsement of Culp's design team and
  indeed  believe that our  personnel  and  manufacturing  resources are very well
  aligned to market appealing  fabrics and mattress ticking that add true value to
  our customers' products."
  
       Commenting on the company's ongoing stock repurchase  program,  Culp noted,
  "Over the past two years,  we have  invested  $12.2  million to  repurchase  the
  company's common stock. The immediate impact of these  transactions is reflected
  in the higher  earnings  per share for 2000.  The effect of the lower  number of
  shares  outstanding  will continue in future  periods,  and the company plans to
  consider  additional  repurchases based on market conditions and our analysis of
  investment  alternatives.  We  currently  have  authorization  from the Board of
  Directors to invest an  additional  $7.8 million in this  program.  Culp's sound
  financial  position is  enabling us to execute  this  program  while  making the
  investments necessary to modernize and expand our capacity.
  
       "Regarding our prospects for fiscal 2001, the trend toward higher  interest
  rates poses an obvious concern; but one of the strengths of the home furnishings
  industry is the  historical  resiliency of demand to  short-term  changes in the
  level of new residential construction. Other economic factors that traditionally
  influence  purchases of furniture  and bedding,  such as  employment  levels and
  consumer confidence, appear favorable at this time."
  
       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.
  
  <PAGE>
  
                                     CULP, INC.
                           Condensed Financial Highlights
  <TABLE>
  <CAPTION>
                                                 Three Months Ended
                                         ---------------------------------------
                                         April 30, 2000            May 2, 1999
   -----------------------------------------------------       -----------------
  <S>                              <C>                       <C>
  Net sales                        $        129,419,000      $       132,165,000
  Net income                       $          3,191,000      $         2,896,000
  Net income per share:
     Basic                         $               0.28      $              0.23
     Diluted                       $               0.28      $              0.23
  Average shares outstanding:
     Basic                                   11,213,000               12,645,000
     Diluted                                 11,298,000               12,742,000
  
                                                 Fiscal Year Ended
                                         ---------------------------------------
                                         April 30, 2000            May 2, 1999
  -----------------------------------------------------       ------------------
  Net sales                        $        488,079,000       $      483,084,000
  Net income                       $          9,380,000       $        3,102,000
  Net income per share:
     Basic                         $               0.81       $             0.24
     Diluted                       $               0.80       $             0.24
  Average shares outstanding:
     Basic                                   11,580,000               12,909,000
     Diluted                                 11,681,000               13,064,000
  </TABLE>
  
       This  release  contains  statements  that  may be  deemed  "forward-looking
  statements"  within the meaning of the federal  securities  laws,  including the
  Private Securities Litigation Reform Act of 1995. Such statements are inherently
  subject to risks and  uncertainties.  Forward-looking  statements are statements
  that include projections, expectations or beliefs about future events or results
  or otherwise are not statements of historical  fact.  Such  statements are often
  characterized  by  qualifying  words such as  "expect,"  "believe,"  "estimate,"
  "plan" and "project"  and their  derivatives.  Factors that could  influence the
  matters  discussed in such  statements  include the level of housing  starts and
  sales of existing homes,  consumer  confidence,  trends in disposable income and
  general economic conditions. Decreases in these economic indicators could have a
  negative effect on the company's business and prospects.  Likewise, increases in
  interest rates, particularly home mortgage rates, and increases in consumer debt
  or the general rate of inflation, could affect the company adversely. Because of
  the  significant  percentage of the company's  sales derived from  international
  shipments,  strengthening of the U.S. dollar against other currencies could make
  the company's products less competitive on the basis of price in markets outside
  the  United  States.   Additionally,   economic  and  political  instability  in
  international areas could affect the demand for the company's products.
  
                                       - END -
  <PAGE>
  
  
                     CULP, INC. FINANCIAL INFORMATION RELEASE
                          CONSOLIDATED STATEMENTS OF INCOME
     FOR THE THREE MONTHS AND TWELVE MONTHS ENDED APRIL 30, 2000 AND MAY 2, 1999
  
                  (Amounts in Thousands, Except for Per Share Data)
  <TABLE>
  <CAPTION>
  
                                                                        THREE MONTHS ENDED (UNAUDITED)
                                               ---------------------------------------------------------------------------------
                                                          Amounts                                          Percent of Sales
                                               -------------------------------                       -----------------------------
                                                 April 30,         May 2,          % Over
                                                   2000             1999          (Under)               2000            1999
                                               --------------  ---------------  -------------        --------------  -------------
  <S>                                       <C>                    <C>            <C>                  <C>             <C>
  Net sales                                 $        129,419          132,165         (2.1)%              100.0 %         100.0 %
  Cost of sales                                      107,342          109,324         (1.8)%               82.9 %          82.7 %
                                               --------------  ---------------  -------------        --------------  -------------
           Gross profit                               22,077           22,841         (3.3)%               17.1 %          17.3 %
  
  Selling, general and
    administrative expenses                           14,913           15,921         (6.3)%               11.5 %          12.0 %
                                               --------------  ---------------  -------------        --------------  -------------
           Income from operations                      7,164            6,920          3.5 %                5.5 %           5.2 %
  
  Interest expense                                     2,255            2,482         (9.1)%                1.7 %           1.9 %
  Interest income                                        (10)            (113)       (91.2)%               (0.0)%          (0.1)%
  Other expense (income), net                            366              546        (33.0)%                0.3 %           0.4 %
                                               --------------  ---------------  -------------        --------------  -------------
           Income before income taxes                  4,553            4,005         13.7 %                3.5 %           3.0 %
  
  Income taxes  *                                      1,362            1,109         22.8 %               29.9 %          27.7 %
                                               --------------  ---------------  -------------        --------------  -------------
           Net income                       $          3,191            2,896         10.2 %                2.5 %           2.2 %
                                               ==============  ===============  =============        ==============  =============
  
  Net income per share                                 $0.28            $0.23         21.7 %
  Net income per share, assuming dilution              $0.28            $0.23         21.7 %
  Dividends per share                                 $0.035           $0.035          0.0 %
  Average shares outstanding                          11,213           12,645        (11.3)%
  Average shares outstanding, assuming                11,298           12,742        (11.3)%
  dilution
  
  
                                                                             TWELVE MONTHS ENDED
                                               ---------------------------------------------------------------------------------
  
                                                          Amounts                                          Percent of Sales
                                               -------------------------------                       -----------------------------
                                                 April 30,         May 2,          % Over
                                                   2000             1999          (Under)               2000            1999
                                               --------------  ---------------  -------------        --------------  -------------
  Net sales                                 $        488,079          483,084          1.0 %              100.0 %         100.0 %
  Cost of sales                                      403,414          406,976         (0.9)%               82.7 %          84.2 %
                                               --------------  ---------------  -------------        --------------  -------------
           Gross profit                               84,665           76,108         11.2 %               17.3 %          15.8 %
  
  Selling, general and
    administrative expenses                           59,935           59,968         (0.1)%               12.3 %          12.4 %
                                               --------------  ---------------  -------------        --------------  -------------
           Income from operations                     24,730           16,140         53.2 %                5.1 %           3.3 %
  
  Interest expense                                     9,521            9,615         (1.0)%                2.0 %           2.0 %
  Interest income                                        (51)            (195)       (73.8)%               (0.0)%          (0.0)%
  Other expense (income), net                          1,566            2,412        (35.1)%                0.3 %           0.5 %
                                               --------------  ---------------  -------------        --------------  -------------
           Income before income taxes                 13,694            4,308        217.9 %                2.8 %           0.9 %
  
  Income taxes  *                                      4,314            1,206        257.7 %               31.5 %          28.0 %
                                               --------------  ---------------  -------------        --------------  -------------
           Net income                       $          9,380            3,102        202.4 %                1.9 %           0.6 %
                                               ==============  ===============  =============        ==============  =============
  
  Net income per share                                 $0.81            $0.24        237.5 %
  Net income per share, assuming dilution              $0.80            $0.24        233.3 %
  Dividends per share                                  $0.14            $0.14          0.0 %
  Average shares outstanding                          11,580           12,909        (10.3)%
  Average shares outstanding, assuming                11,681           13,064        (10.6)%
  dilution
  
  </TABLE>
  
   * Percent of sales column is calculated as a % of income before income
  taxes.
  
  <PAGE>
  
                      CULP, INC. FINANCIAL INFORMATION RELEASE
                             CONSOLIDATED BALANCE SHEETS
                           APRIL 30, 2000 AND MAY 2, 1999
  
                               (Amounts in Thousands)
  <TABLE>
  <CAPTION>
                                                                   Amounts                             Increase
                                                   ---------------------------------------            (Decrease)
                                                        April 30,            May 2,       ---------------------------------
                                                          2000                1999            Dollars         Percent
                                                   --------------------  ---------------  ----------------    -------------
  <S>                                            <C>                      <C>                <C>              <C>
  Current assets
         Cash and cash investments               $               1,007              509               498         97.8 %
         Accounts receivable                                    75,223           70,503             4,720          6.7 %
         Inventories                                            74,471           67,070             7,401         11.0 %
         Other current assets                                   10,349            9,633               716          7.4 %
                                                   --------------------  ---------------  ----------------    -------------
                    Total current assets                       161,050          147,715            13,335          9.0 %
  
  Restricted investments                                             0            3,340            (3,340)      (100.0)%
  Property, plant & equipment, net                             126,407          123,310             3,097          2.5 %
  Goodwill                                                      49,873           51,269            (1,396)        (2.7)%
  Other assets                                                   5,548            4,978               570         11.5 %
                                                   --------------------  ---------------  ----------------    -------------
  
                    Total assets                 $             342,878          330,612            12,266          3.7 %
                                                   ====================  ===============  ================    =============
  
  
  
  Current liabilities
         Current maturities of long-term debt    $               1,678            1,678                 0          0.0 %
         Accounts payable                                       37,287           25,687            11,600         45.2 %
         Accrued expenses                                       22,108           21,026             1,082          5.1 %
                                                   --------------------  ---------------  ----------------    -------------
                    Total current liabilities                   61,073           48,391            12,682         26.2 %
  
  Long-term debt                                               135,808          140,312            (4,504)        (3.2)%
  
  Deferred income taxes                                         17,459           14,583             2,876         19.7 %
                                                   --------------------  ---------------  ----------------    -------------
                    Total liabilities                          214,340          203,286            11,054          5.4 %
  
  Shareholders' equity                                         128,538          127,326             1,212          1.0 %
                                                   --------------------  ---------------  ----------------    -------------
  
                    Total liabilities and
                    shareholders' equity         $             342,878          330,612            12,266          3.7 %
                                                   ====================  ===============  ================    =============
  
  Shares outstanding                                            11,209           12,079              (870)        (7.2)%
                                                   ====================  ===============  ================    =============
  
  
  </TABLE>
  <PAGE>
                                CULP, INC. FINANCIAL
                                 INFORMATION RELEASE
                        CONSOLIDATED STATEMENTS OF CASH FLOWS
             FOR THE TWELVE MONTHS ENDED APRIL 30, 2000 AND MAY 2, 1999
  
                               (Amounts in Thousands)
  <TABLE>
  <CAPTION>
                                                                                 TWELVE MONTHS ENDED
                                                                         --------------------------------
                                                                                     Amounts
                                                                         --------------------------------
                                                                             April 30,          May 2,
                                                                               2000             1999
                                                                         ---------------  ---------------
  <S>                                                                    <C>              <C>
  Cash flows from operating activities:
       Net income                                                         $       9,380            3,102
       Adjustments to reconcile net income to net cash
          provided by operating activities:
              Depreciation                                                       19,462           18,549
              Amortization of intangible assets                                   1,596            1,570
              Provision for deferred income taxes                                 2,176            1,064
              Changes in assets and liabilities:
                  Accounts receivable                                            (4,720)           3,133
                  Inventories                                                    (7,401)          12,124
                  Other current assets                                              (16)             522
                  Other assets                                                     (770)            (106)
                  Accounts payable                                                1,029           (8,893)
                  Accrued expenses                                                1,082            2,736
                  Income taxes payable                                                0           (1,282)
                                                                         ---------------  ---------------
                      Net cash provided by operating activities                  21,818           32,519
                                                                         ---------------  ---------------
  Cash flows from investing activities:
       Capital expenditures                                                     (22,559)         (10,689)
       Purchases of restricted investments                                          (40)            (119)
       Purchase of investments to fund deferred compensation liability                0             (735)
       Sale of restricted investments                                             3,380              800
                                                                         ---------------  ---------------
                      Net cash used in investing activities                     (19,219)         (10,743)
                                                                         ---------------  ---------------
  Cash flows from financing activities:
       Proceeds from issuance of long-term debt                                   9,543            2,637
       Principal payments on long-term debt                                     (14,047)         (16,284)
       Change in accounts payable-capital expenditures                           10,571           (2,637)
       Dividends paid                                                            (1,611)          (1,788)
       Payments to acquire common stock                                          (6,636)          (5,542)
       Proceeds from common stock issued                                             79               35
                                                                         ---------------  ---------------
                      Net cash used in financing activities                      (2,101)         (23,579)
                                                                         ---------------  ---------------
  
  Increase (decrease) in cash and cash investments                                  498           (1,803)
  
  Cash and cash investments at beginning of period                                  509            2,312
                                                                         ---------------  ---------------
  
  Cash and cash investments at end of period                              $       1,007              509
                                                                         ===============  ===============
  </TABLE>
  
  <PAGE>
                      CULP, INC. FINANCIAL INFORMATION RELEASE
                                 FINANCIAL ANALYSIS
                                   APRIL 30, 2000
  <TABLE>
  <CAPTION>
                                             FISCAL 99                            FISCAL 00
                                           -------------   ---------------------------------------------------------   ---------------
                                                Q4              Q1             Q2            Q3            Q4             LTM (5)
                                           -------------   ---------------------------------------------------------   ---------------
  <S>                                       <C>            <C>              <C>            <C>            <C>           <C>
  INVENTORIES
          Inventory turns                           6.4              5.4            5.5           4.8           5.5
  
  RECEIVABLES
          Days sales in receivables                  49               45             49            49            53
          Percent current & less than 30
            days past due                         96.1%            93.2%          96.7%         97.1%         93.5%
  
  WORKING CAPITAL
          Current  ratio                            3.1              3.1            2.4           2.7           2.6
          Working capital turnover (4)              4.3              4.4            4.4           4.5           4.4
          Operating working capital (4)        $111,886         $111,222       $109,556      $111,315      $112,407
  
  PROPERTY, PLANT & EQUIPMENT
          Depreciation rate                        8.1%             8.0%           7.8%          8.2%          7.9%
          Percent property, plant &
            equipment are depreciated             47.6%            49.0%          49.1%         49.4%         49.6%
          Capital expenditures                  $10,689 (1)       $2,420         $8,104        $3,950        $8,085
  
  PROFITABILITY
          Return on average total capital          6.8%             4.8%           7.3%          4.9%          7.2%              6.0%
          Return on average equity                 9.0%             5.0%          10.0%          4.6%         10.0%              7.4%
          Net income per share                    $0.23            $0.13          $0.27         $0.13         $0.28             $0.81
          Net income per share (diluted)          $0.23            $0.13          $0.27         $0.13         $0.28             $0.80
  
  LEVERAGE (3)
          Total liabilities/equity               159.7%           155.9%         170.1%        167.3%        166.8%
          Funded debt/equity                     108.9%           106.3%         107.2%        109.5%        107.0%
          Funded debt/capital employed            52.1%            51.5%          51.7%         52.3%         51.7%
          Funded debt                          $138,650         $136,222       $134,468      $137,683      $137,486
          Funded debt/EBITDA (LTM) (6)             4.02             3.33           3.08          3.15          3.10
          EBITDA/Interest expense, net (LTM)        3.6              4.3            4.6           4.5           4.7
  
  OTHER
          Book value per share                   $10.54           $10.64         $11.08        $11.21        $11.47
          Employees at quarter end                3,973            4,050          3,962         3,938         3,825
          Sales per employee (annualized)      $133,000         $116,000       $129,000      $115,000      $133,000
          Capital employed (3)                 $265,976         $264,349       $259,848      $263,448      $266,024
          Effective income tax rate               27.7%            34.0%          34.0%         25.9%         29.9%
          EBITDA (2)                            $11,534           $9,977        $12,412        $9,655       $12,178           $44,222
          EBITDA/net sales                         8.7%             8.6%           9.6%          8.5%          9.4%              9.1%
  
    (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 TWELVE MONTHS ENDED APRIL 30, 2000 AND MAY 2, 1999
  
  
                               (Amounts in thousands)
  <TABLE>
  <CAPTION>
  
                                                              THREE MONTHS ENDED (UNAUDITED)
                                         --------------------------------------------------------------------------
                                                  Amounts                                Percent of Total Sales
                                         --------------------------                    ----------------------------
                                          April 30,      May 2,           % Over
  Segment/Division                          2000          1999           (Under)        2000            1999
  ------------------------------------   ------------  ------------   ---------------  -------------   ------------
  <S>                                   <C>             <C>            <C>             <C>             <C>
  Upholstery Fabrics
      Culp Decorative Fabrics         $       56,130        60,520        (7.3)%          43.4 %          45.8 %
      Culp Velvets/Prints                     39,501        40,402        (2.2)%          30.5 %          30.6 %
      Culp Yarn                                4,809         4,462         7.8 %           3.7 %           3.4 %
                                         ------------  ------------   ---------------  -------------   ------------
                                             100,440       105,384        (4.7)%          77.6 %          79.7 %
  
  Mattress Ticking
      Culp Home Fashions                      28,979        26,781         8.2 %          22.4 %          20.3 %
                                         ------------  ------------   ---------------  -------------   ------------
  
                                    * $      129,419       132,165        (2.1)%         100.0 %         100.0 %
                                         ============  ============   ===============  =============   ============
  
  
                                                                    TWELVE MONTHS ENDED
                                         --------------------------------------------------------------------------
  
                                                  Amounts                                Percent of Total Sales
                                         --------------------------                    ----------------------------
                                          April 30,      May 2,           % Over
  Segment/Division                          2000          1999           (Under)        2000            1999
  ------------------------------------   ------------  ------------   ---------------  -------------   ------------
  Upholstery Fabrics
      Culp Decorative Fabrics         $      213,197       222,058        (4.0)%          43.7 %          46.0 %
      Culp Velvets/Prints                    151,543       144,073         5.2 %          31.0 %          29.8 %
      Culp Yarn                               17,570        21,513       (18.3)%           3.6 %           4.5 %
                                         ------------  ------------   ---------------  -------------   ------------
                                             382,310       387,644        (1.4)%          78.3 %          80.2 %
  
  Mattress Ticking
      Culp Home Fashions                     105,769        95,440        10.8 %          21.7 %          19.8 %
                                         ------------  ------------   ---------------  -------------   ------------
  
                                    * $      488,079       483,084         1.0 %         100.0 %         100.0 %
                                         ============  ============   ===============  =============   ============
  
  </TABLE>
  
  * U.S.  sales were  $101,276 and $102,796 for the fourth  quarter of fiscal 2000
  and fiscal 1999,  respectively;  and $376,975 and $369,730 for the twelve months
  of fiscal 2000 and fiscal  1999,  respectively.  The  percentage  change in U.S.
  sales was a decrease of 1.5% for the fourth  quarter and an increase of 2.0% for
  the twelve months.
  
  <PAGE>
  
  
                      CULP, INC. FINANCIAL INFORMATION RELEASE
                       INTERNATIONAL SALES BY GEOGRAPHIC AREA
     FOR THE THREE MONTHS AND TWELVE MONTHS ENDED APRIL 30, 2000 AND MAY 2, 1999
  
                               (Amounts in thousands)
  <TABLE>
  <CAPTION>
                                                                 THREE MONTHS ENDED (UNAUDITED)
                                         --------------------------------------------------------------------------------
                                                    Amounts                                   Percent of Total Sales
                                         -------------------------------                   ------------------------------
                                           April 30,         May 2,          % Over
           Geographic Area                    2000            1999           (Under)         2000             1999
  ----------------------------------     ---------------  --------------  --------------   -------------     ------------
  <S>                               <C>                      <C>            <C>              <C>               <C>
  North America (Excluding USA)     $             9,968           8,067       23.6 %           35.4 %           27.5 %
  Europe                                          2,655           4,791      (44.6)%            9.4 %           16.3 %
  Middle East                                     8,837           8,925       (1.0)%           31.4 %           30.4 %
  Far East & Asia                                 5,014           6,075      (17.5)%           17.8 %           20.7 %
  South America                                     570             691      (17.5)%            2.0 %            2.4 %
  All other areas                                 1,099             820       34.0 %            3.9 %            2.8 %
                                         ---------------  --------------  --------------   -------------     ------------
                                    $            28,143          29,369       (4.2)%          100.0 %          100.0 %
                                         ===============  ==============  ==============   =============     ============
  
  
                                                                       TWELVE MONTHS ENDED
                                         --------------------------------------------------------------------------------
                                                    Amounts                                   Percent of Total Sales
                                         -------------------------------                   ------------------------------
                                           April 30,         May 2,          % Over
           Geographic Area                    2000            1999           (Under)         2000             1999
  ----------------------------------     ---------------  --------------  --------------   -------------     ------------
  North America (Excluding USA)     $            36,032          31,102       15.9 %           32.4 %           27.4 %
  Europe                                         16,351          19,578      (16.5)%           14.7 %           17.3 %
  Middle East                                    32,929          33,996       (3.1)%           29.6 %           30.0 %
  Far East & Asia                                19,102          21,371      (10.6)%           17.2 %           18.9 %
  South America                                   2,343           3,484      (32.7)%            2.1 %            3.1 %
  All other areas                                 4,347           3,823       13.7 %            3.9 %            3.4 %
                                         ---------------  --------------  --------------   -------------     ------------
                                    $           111,104         113,354      (2.0) %          100.0 %          100.0 %
                                         ===============  ==============  ==============   =============     ============
  
  </TABLE>
  
  International  sales,  and the  percentage of total sales,  for each of the last
  five fiscal years  follows:  fiscal  1996-$77,397  (22%);  fiscal  1997-$101,571
  (25%);  fiscal  1998-$137,223  (29%);  fiscal  1999-$113,354  (23%);  and fiscal
  2000-$111,104  (23%).  International  sales for the fourth  quarter  represented
  21.7% and 22.2% for 2000 and 1999, respectively.
  <PAGE>
  
                                     Culp, Inc.
                     SALES BY SEGMENT/DIVISION - TREND ANALYSIS
                                1998 vs 1999 vs 2000
  
                               (Amounts in thousands)
  <TABLE>
  <CAPTION>
  
                                              Fiscal 1998                                     Fiscal 1999
                             ----------------------------------------------  ----------------------------------------------
      Segment/Division          Q1       Q2        Q3       Q4     TOTAL        Q1       Q2       Q3       Q4      TOTAL
  -------------------------
  <S>                         <C>       <C>      <C>      <C>     <C>          <C>     <C>      <C>      <C>      <C>
   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
                             ==============================================  ==============================================
  
  </TABLE>
  <PAGE>
  
  
                                     Culp, Inc.
                     SALES BY SEGMENT/DIVISION - TREND ANALYSIS
                                1998 vs 1999 vs 2000
  
                               (Amounts in thousands)
  <TABLE>
  <CAPTION>
  
                                              Fiscal 2000
                             -----------------------------------------------
      Segment/Division          Q1        Q2        Q3        Q4      TOTAL
  -------------------------
  <S>                          <C>       <C>       <C>      <C>      <C>
   Upholstery Fabrics
      Culp Decorative Fabrics   50,516    56,897    49,654   56,130  213,197
      Culp Velvets/Prints       36,209    41,783    34,050   39,501  151,543
      Culp Yarn                  4,129     4,358     4,274    4,809   17,570
                             -----------------------------------------------
                                90,854   103,038    87,978  100,440  382,310
  
  Mattress Ticking
      Culp Home Fashions        25,083    26,504    25,203   28,979  105,769
                             -----------------------------------------------
  
                               115,937   129,542   113,181  129,419  488,079
                             ===============================================
  
                     Percent increase(decrease) from prior year:
  
      Segment/Division
  -------------------------
  
  Upholstery Fabrics
      Culp Decorative Fabrics     (1.8)     (4.5)     (1.7)    (7.3)   (4.0)
      Culp Velvets/Prints         20.7       7.9      (2.6)    (2.2)    5.2
      Culp Yarn                  (37.4)    (31.6)      4.5      7.8   (18.3)
                             -----------------------------------------------
                                   3.2      (1.6)     (1.8)    (4.7)   (1.4)
  
  Mattress Ticking
      Culp Home Fashions          10.8      12.8      11.8      8.2    10.8
                             -----------------------------------------------
                                   4.8       1.1       1.0     (2.1)    1.0
                             ===============================================
  
    Overall Growth Rate
  
  Internal (without acquisitions)  4.8       1.1       1.0     (2.1)    1.0
  External                           -         -         -        -       -
                             ===============================================
                                   4.8       1.1       1.0     (2.1)    1.0
                             ===============================================
  
  </TABLE>
  <PAGE>
  
  
                      CULP, INC. FINANCIAL INFORMATION RELEASE
                                 FINANCIAL NARRATIVE
     for the three and twelve month periods ended April 30, 2000 and May 2, 1999
  
  
  INCOME STATEMENT COMMENTS
  
       GENERAL  - For the  fourth  quarter,  net  sales  decreased  2.1% to $129.4
  million;  and net income rose 10.2% to $3.2 million,  or $0.28 per share diluted
  (based on 11,298,000 average shares outstanding during the period),  versus $2.9
  million,  or $0.23  per  share  diluted  (based  on  12,742,000  average  shares
  outstanding  during the period),  a year ago. For the year ended April 30, 2000,
  net sales increased 1.0% to $488.1 million;  and net income  increased 202.4% to
  $9.4 million,  or $0.80 per share diluted  (based on 11,681,000  average  shares
  outstanding  during the period),  compared with net income of $3.1  million,  or
  $0.24 per share diluted (based on 13,064,000  average shares  outstanding during
  the period), 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 - maintaining a diverse, global customer base.
       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  fiscal  2000.  Ownership  of the  resources  in the home
       furnishings industry is becoming increasingly concentrated, and the company
       is seeking to increase its business further with existing  customers.  Culp
       is also pursuing opportunities in other end-use markets in addition to U.S.
       residential furniture, such as bedding, international, commercial furniture
       and juvenile furniture;
  
       Design  Innovation - continuing to invest in personnel and other  resources
       for 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 match  current  consumer
       preferences. The company's principal design resources are consolidated in a
       single  facility  that has  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 fourth  quarter  of last  year,  upholstery
  fabric  sales  decreased  4.7% to $100.4  million  and  mattress  ticking  sales
  increased 8.2% to $29.0 million (See Sales by Segment/Division  schedule on Page
  5 and Sales by Segment/Division - Trend Analysis on Page 7). International sales
  were down 4.2% and 2.0% for the  quarter  and year,  respectively.  For the year
  ended April 30, 2000,  upholstery  fabric sales decreased 1.4% to $382.3 million
  and mattress ticking sales increased 10.8% to $105.8 million.
  
       Fiscal 2000 was the first full year in which the company  operated with its
  current structure of four divisions. This corporate organization,  which evolved
  from one in which  there were six  business  units,  groups  related  operations
  together;  and its adoption in fiscal 1999 was accompanied by several changes in
  managerial positions. The company believes that this new structure is yielding a
  number of benefits  including  improved customer service,  more effective use of
  design  resources and  increased  manufacturing  efficiency.  Culp believes that
  these factors aided its sales to U.S.-based accounts for fiscal 2000, which rose
  2.0% for the year. This growth was offset by a decline of 2.0% in  international
  sales. After several years of above-average  growth,  Culp's international sales
  declined 17.4% in fiscal 1999,  following an  industry-wide  trend.  The company
  took steps to mitigate the impact of this trend by significantly
  <PAGE>
  
                      CULP, INC. FINANCIAL INFORMATION RELEASE
                                 FINANCIAL NARRATIVE
     for the three and twelve month periods ended April 30, 2000 and May 2, 1999
  
  
  
  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 believes that the significantly  smaller decline in international  sales
  for fiscal  2000  reflects  the  results of these  actions.  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.
  
       The company  continued  to benefit in fiscal 2000 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  declined 3.3% for the fourth  quarter versus a
  year ago and  decreased  as a percentage  of net sales from 17.3% to 17.1%.  The
  decline was due principally to lower sales volume at the Culp Decorative Fabrics
  division,  which  experienced a decrease in sales of 7.3% for the quarter (and a
  4.0% decrease for the year).  Although this division has taken steps  (including
  the ongoing  consolidation of the Phillips weaving plant in Monroe,  NC into the
  Pageland,  SC facility) to reduce operating expenses,  it was affected by excess
  manufacturing  capacity  and lower  absorption  of fixed costs during the fourth
  quarter.
  
       Gross profit for fiscal 2000 increased 11.2% to $84.7 million and increased
  as a percentage of net sales from 15.8% to 17.3% due to the reorganization noted
  in the second  paragraph of the "Net Sales"  section above and an intense effort
  to reduce operating expenses and raise productivity.
  
  
       SG&A  EXPENSES  - SG&A  expenses  for the  fourth  quarter  decreased  as a
  percentage  of sales  from  12.0% to 11.5%.  The  decrease  is  related to lower
  marketing  costs due  primarily to 1999  including  severance  costs  related to
  termination of an international sales agent.
  
       SG&A  expenses for fiscal 2000  decreased  0.1% and  accounted for 12.3% of
  sales versus 12.4% in the prior year.  The company has  increased  its resources
  for the design of new fabrics and for enhanced information systems.
  
  
       INTEREST  EXPENSE - Interest  expense of $9.5  million  for fiscal 2000 was
  down from $9.6  million in the prior year.  Although the company  generally  had
  lower  average  borrowings  during  fiscal 2000,  the reduced debt was offset by
  lower  capitalized  interest related to capital  expenditures and higher average
  interest rates.
  
  
       OTHER  EXPENSE  (INCOME),  NET - Other  expense  (income)  for fiscal  2000
  totaled $1.6 million  compared with $2.4 million in the prior year. The decrease
  is  principally  due to  higher  investment  income  on  assets  related  to the
  company's nonqualified deferred compensation plan.
  
       INCOME TAXES - The  effective  tax rate for fiscal 2000 was 31.5%  compared
  with 28.0% in the prior year.
  
       EBITDA - Due  principally to the increase in net income,  EBITDA for fiscal
  2000 increased 31% to $44.2 million from $33.8 million in the prior year.
  <PAGE>
  
  
                      CULP, INC. FINANCIAL INFORMATION RELEASE
                                 FINANCIAL NARRATIVE
     for the three and twelve month periods ended April 30, 2000 and May 2, 1999
  
  
  
  
  BALANCE SHEET COMMENTS
  
       WORKING  CAPITAL - Accounts  receivable as of April 30, 2000 increased 6.7%
  from the  year-earlier  level, due principally to changes in the mix of accounts
  receivable between U.S.-based and international  customers. The company believes
  that these  changes are not due to any general  trend toward  slower  receivable
  collections.  Days  sales  outstanding  increased  to 53 days at April 30,  2000
  compared with 49 at the end of fiscal 1999. The aging of accounts receivable was
  93.5%  current and less than 30 days past due versus  96.1% at the end of fiscal
  1999.  Inventories  at the close of fiscal 2000  increased $7.4 million or 11.0%
  from a year ago,  principally  due to the  decision  to increase  the  company's
  ability to respond quickly to customers' orders.  Inventory turns for the fourth
  quarter  of  fiscal  2000  were  5.5  versus  6.4 for the  year-earlier  period.
  Operating  working  capital  (comprised  of accounts  receivable,  inventory and
  accounts payable) was $112.4 million at April 30, 2000, up from $111.9 million a
  year ago.
  
       PROPERTY,  PLANT AND EQUIPMENT - During  fiscal 2000 the company's  capital
  spending  increased to $22.6  million  compared  with $10.7 million in the prior
  year. The level of capital spending in fiscal 1999 was  significantly  less than
  in the past several years because of a focus on improving the return on existing
  assets. Culp is committed to investing  sufficient funds to modernize and expand
  its manufacturing  resources and information  systems.  The company is budgeting
  total  capital   spending  for  fiscal  2001  of   approximately   $16  million.
  Depreciation  expense for fiscal 2000  increased to $19.5  million  versus $18.5
  million for fiscal 1999.  Depreciation for fiscal 2001 is currently estimated to
  be $20.5 million.
  
       LONG-TERM DEBT - The company's  funded  debt-to-capital  ratio was 51.7% at
  April 30, 2000 compared with 52.1% at the close of fiscal 1999.  Funded debt was
  $137.5  million at April 30, 2000 compared  with $138.7  million at the close of
  fiscal 1999. Funded debt equals long-term debt,  including  current  maturities,
  less restricted investments,  which represent unspent IRB funds. The decrease in
  funded debt from a year ago resulted  primarily  from an operating  cash flow of
  $21.8  million  and  an  increase  in  accounts   payable   related  to  capital
  expenditures of $10.6 million,  offset by capital expenditures of $22.6 million,
  repurchases of common stock of $6.6 million and dividends paid of $1.6 million.
  
  
  STOCK REPURCHASE
  
       In separate  authorizations  in June 1998,  March 1999,  September 1999 and
  December  1999,  the Board of Directors  authorized  the use of a total of $20.0
  million to  repurchase  the  company's  common  stock.  Over the past two fiscal
  years,  the company has  invested  $12.2  million to  repurchase  a total of 1.8
  million  shares.  This  includes the  repurchase  during  fiscal 2000 of 884,264
  shares at an average price of $7.50 per share under these authorizations.
metadata_documents: [{"type": "8-K", "sequence": "1", "filename": "0001.txt", "description": "CULP, INC. 8-K", "secsgml_size_bytes": 59375}]
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": "647128"}, "business-address": {"street1": "101 S MAIN ST", "city": "HIGH POINT", "state": "NC", "zip": "27260", "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) May 31, 2000
  
                                     CULP, INC.
  
               (Exact name of registrant as specified in its charter)
  
           North Carolina                0-12781             56-1001967
  (State or other jurisdiction of  (Commission File No.)    (IRS Employer
           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 May 31, 2000,  related to the fiscal 2000 fourth quarter and
  year ended April 30, 2000.
  
  Forward Looking Information.  This Report contains statements that may be deemed
  "forward-looking  statements" within the meaning of the federal securities laws,
  including the Private Securities  Litigation Reform Act of 1995. Such statements
  are inherently  subject to risks and uncertainties.  Forward-looking  statements
  are statements  that include  projections,  expectations or beliefs about future
  events or results or otherwise  are not  statements  of  historical  fact.  Such
  statements  are  often  characterized  by  qualifying  words  such as  "expect,"
  "believe," "estimate," "plan" and "project" and their derivatives.  Factors that
  could influence the matters  discussed in such  statements  include the level of
  housing  starts and sales of  existing  homes,  consumer  confidence,  trends in
  disposable income, and general economic conditions.  Decreases in these economic
  indicators could have a negative effect on the Company's business and prospects.
  Likewise,  increases in interest rates,  particularly  home mortgage rates,  and
  increases in consumer  debt or the general rate of  inflation,  could affect the
  Company adversely.  Because of the significant percentage of the Company's sales
  derived from international shipments,  strengthening of the U. S. dollar against
  other currencies could make the Company's products less competitive on the basis
  of price in  markets  outside  the United  States.  Additionally,  economic  and
  political  instability  in  international  areas could affect the demand for the
  Company's products.
  
                                      SIGNATURE
  
  Pursuant  to the  requirements  of the  Securities  Exchange  Act of  1934,  the
  Registrant  has duly  caused  this  report  to be  signed  on its  behalf by the
  undersigned hereunto duly authorized.
  
                                      CULP, INC.
                                     (Registrant)
  
                                      By:       Phillip W. Wilson
                                                Vice President and
                                                Chief Financial Officer
  
  Dated:   May 31, 2000
  FOR IMMEDIATE RELEASE
  
                  CULP REPORTS SHARPLY HIGHER FISCAL 2000 EARNINGS
                               ----------------------
                       GAINS HIGHLIGHT IMPROVED PROFITABILITY
  
  HIGH  POINT,  N. C. (May 31,  2000) - Culp,  Inc.  (NYSE:  CFI)  today  reported
  increased  sales and net income per share for the  fiscal  year ended  April 30,
  2000.
  
       Net sales for the 2000 fiscal year totaled $488.1  million,  up from $483.1
  million in fiscal  1999.  The company  reported  net income for the year of $9.4
  million,  or $0.80 per share diluted,  compared with net income of $3.1 million,
  or $0.24 per share diluted, in fiscal 1999.
  
       Net sales for the fourth  quarter  totaled  $129.4  million  compared  with
  $132.2  million a year ago.  The company  reported net income for the quarter of
  $3.2 million,  or $0.28 per share diluted,  compared with $2.9 million, or $0.23
  per share diluted, in the year-earlier period.
  
       "Our  results  for the year as a whole  signaled a  gratifying  increase in
  Culp's profitability and highlight the underlying strength of our organization,"
  said  Robert G. Culp,  III,  chief  executive  officer.  "We had stated that our
  primary  goal for fiscal  2000 was to achieve  continued  improvement  in Culp's
  performance.  We achieved meaningful progress toward that objective and now must
  sustain the momentum by capitalizing  even more effectively on our assets.  This
  was the first full year in which the  realignment of our operating  units was in
  place, and we are very encouraged by the higher efficiency and improved customer
  service  that is  resulting  from  this  new  structure.  We are  continuing  to
  emphasize the importance of building strong working  relationships with existing
  customers  because of the ongoing  consolidation  that is  occurring in the home
  furnishings  industry.  We are also pursuing  opportunities to broaden our sales
  base further in the United States and internationally.
  
       "We  believe  that  Culp's  breadth  of  offerings  and the  extent  of our
  manufacturing  resources equip us well to gain  additional  market share. As the
  home  furnishings  industry  continues to change to meet consumers'  demands,  a
  major challenge is how to maintain a broad selection of competitive  fabrics and
  yet meet much shorter lead times. As a fully integrated  marketer,  Culp has the
  ability to  include  customers  actively  in all  aspects  of the  manufacturing
  process,  starting with the vital design stage.  This  involvement  encourages a
  close partnership that enhances our functional support of a customer's marketing
  campaigns and helps us identify  important styling trends.  One of the hallmarks
  of our progress during fiscal 2000 was the increasingly positive response of the
  marketplace to Culp's  designs.  We ended the year on an especially  strong note
  with  outstanding  showroom  placements  of our  fabrics at the major High Point
  spring market.  We are encouraged by that  endorsement of Culp's design team and
  indeed  believe that our  personnel  and  manufacturing  resources are very well
  aligned to market appealing  fabrics and mattress ticking that add true value to
  our customers' products."
  
       Commenting on the company's ongoing stock repurchase  program,  Culp noted,
  "Over the past two years,  we have  invested  $12.2  million to  repurchase  the
  company's common stock. The immediate impact of these  transactions is reflected
  in the higher  earnings  per share for 2000.  The effect of the lower  number of
  shares  outstanding  will continue in future  periods,  and the company plans to
  consider  additional  repurchases based on market conditions and our analysis of
  investment  alternatives.  We  currently  have  authorization  from the Board of
  Directors to invest an  additional  $7.8 million in this  program.  Culp's sound
  financial  position is  enabling us to execute  this  program  while  making the
  investments necessary to modernize and expand our capacity.
  
       "Regarding our prospects for fiscal 2001, the trend toward higher  interest
  rates poses an obvious concern; but one of the strengths of the home furnishings
  industry is the  historical  resiliency of demand to  short-term  changes in the
  level of new residential construction. Other economic factors that traditionally
  influence  purchases of furniture  and bedding,  such as  employment  levels and
  consumer confidence, appear favorable at this time."
  
       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
  Three Months Ended
                                         ---------------------------------------
                                         April 30, 2000            May 2, 1999
   -----------------------------------------------------       -----------------
  Net sales                        $        129,419,000      $       132,165,000
  Net income                       $          3,191,000      $         2,896,000
  Net income per share:
     Basic                         $               0.28      $              0.23
     Diluted                       $               0.28      $              0.23
  Average shares outstanding:
     Basic                                   11,213,000               12,645,000
     Diluted                                 11,298,000               12,742,000
  
                                                 Fiscal Year Ended
                                         ---------------------------------------
                                         April 30, 2000            May 2, 1999
  -----------------------------------------------------       ------------------
  Net sales                        $        488,079,000       $      483,084,000
  Net income                       $          9,380,000       $        3,102,000
  Net income per share:
     Basic                         $               0.81       $             0.24
     Diluted                       $               0.80       $             0.24
  Average shares outstanding:
     Basic                                   11,580,000               12,909,000
     Diluted                                 11,681,000               13,064,000
  This  release  contains  statements  that  may be  deemed  "forward-looking
  statements"  within the meaning of the federal  securities  laws,  including the
  Private Securities Litigation Reform Act of 1995. Such statements are inherently
  subject to risks and  uncertainties.  Forward-looking  statements are statements
  that include projections, expectations or beliefs about future events or results
  or otherwise are not statements of historical  fact.  Such  statements are often
  characterized  by  qualifying  words such as  "expect,"  "believe,"  "estimate,"
  "plan" and "project"  and their  derivatives.  Factors that could  influence the
  matters  discussed in such  statements  include the level of housing  starts and
  sales of existing homes,  consumer  confidence,  trends in disposable income and
  general economic conditions. Decreases in these economic indicators could have a
  negative effect on the company's business and prospects.  Likewise, increases in
  interest rates, particularly home mortgage rates, and increases in consumer debt
  or the general rate of inflation, could affect the company adversely. Because of
  the  significant  percentage of the company's  sales derived from  international
  shipments,  strengthening of the U.S. dollar against other currencies could make
  the company's products less competitive on the basis of price in markets outside
  the  United  States.   Additionally,   economic  and  political  instability  in
  international areas could affect the demand for the company's products.
  
                                       - END -
  CULP, INC. FINANCIAL INFORMATION RELEASE
                          CONSOLIDATED STATEMENTS OF INCOME
     FOR THE THREE MONTHS AND TWELVE MONTHS ENDED APRIL 30, 2000 AND MAY 2, 1999
  
                  (Amounts in Thousands, Except for Per Share Data)
  THREE MONTHS ENDED (UNAUDITED)
                                               ---------------------------------------------------------------------------------
                                                          Amounts                                          Percent of Sales
                                               -------------------------------                       -----------------------------
                                                 April 30,         May 2,          % Over
                                                   2000             1999          (Under)               2000            1999
                                               --------------  ---------------  -------------        --------------  -------------
  Net sales                                 $        129,419          132,165         (2.1)%              100.0 %         100.0 %
  Cost of sales                                      107,342          109,324         (1.8)%               82.9 %          82.7 %
                                               --------------  ---------------  -------------        --------------  -------------
           Gross profit                               22,077           22,841         (3.3)%               17.1 %          17.3 %
  
  Selling, general and
    administrative expenses                           14,913           15,921         (6.3)%               11.5 %          12.0 %
                                               --------------  ---------------  -------------        --------------  -------------
           Income from operations                      7,164            6,920          3.5 %                5.5 %           5.2 %
  
  Interest expense                                     2,255            2,482         (9.1)%                1.7 %           1.9 %
  Interest income                                        (10)            (113)       (91.2)%               (0.0)%          (0.1)%
  Other expense (income), net                            366              546        (33.0)%                0.3 %           0.4 %
                                               --------------  ---------------  -------------        --------------  -------------
           Income before income taxes                  4,553            4,005         13.7 %                3.5 %           3.0 %
  
  Income taxes  *                                      1,362            1,109         22.8 %               29.9 %          27.7 %
                                               --------------  ---------------  -------------        --------------  -------------
           Net income                       $          3,191            2,896         10.2 %                2.5 %           2.2 %
                                               ==============  ===============  =============        ==============  =============
  
  Net income per share                                 $0.28            $0.23         21.7 %
  Net income per share, assuming dilution              $0.28            $0.23         21.7 %
  Dividends per share                                 $0.035           $0.035          0.0 %
  Average shares outstanding                          11,213           12,645        (11.3)%
  Average shares outstanding, assuming                11,298           12,742        (11.3)%
  dilution
  
                                                                             TWELVE MONTHS ENDED
                                               ---------------------------------------------------------------------------------
  
                                                          Amounts                                          Percent of Sales
                                               -------------------------------                       -----------------------------
                                                 April 30,         May 2,          % Over
                                                   2000             1999          (Under)               2000            1999
                                               --------------  ---------------  -------------        --------------  -------------
  Net sales                                 $        488,079          483,084          1.0 %              100.0 %         100.0 %
  Cost of sales                                      403,414          406,976         (0.9)%               82.7 %          84.2 %
                                               --------------  ---------------  -------------        --------------  -------------
           Gross profit                               84,665           76,108         11.2 %               17.3 %          15.8 %
  
  Selling, general and
    administrative expenses                           59,935           59,968         (0.1)%               12.3 %          12.4 %
                                               --------------  ---------------  -------------        --------------  -------------
           Income from operations                     24,730           16,140         53.2 %                5.1 %           3.3 %
  
  Interest expense                                     9,521            9,615         (1.0)%                2.0 %           2.0 %
  Interest income                                        (51)            (195)       (73.8)%               (0.0)%          (0.0)%
  Other expense (income), net                          1,566            2,412        (35.1)%                0.3 %           0.5 %
                                               --------------  ---------------  -------------        --------------  -------------
           Income before income taxes                 13,694            4,308        217.9 %                2.8 %           0.9 %
  
  Income taxes  *                                      4,314            1,206        257.7 %               31.5 %          28.0 %
                                               --------------  ---------------  -------------        --------------  -------------
           Net income                       $          9,380            3,102        202.4 %                1.9 %           0.6 %
                                               ==============  ===============  =============        ==============  =============
  
  Net income per share                                 $0.81            $0.24        237.5 %
  Net income per share, assuming dilution              $0.80            $0.24        233.3 %
  Dividends per share                                  $0.14            $0.14          0.0 %
  Average shares outstanding                          11,580           12,909        (10.3)%
  Average shares outstanding, assuming                11,681           13,064        (10.6)%
  dilution
  * Percent of sales column is calculated as a % of income before income
  taxes.
  CULP, INC. FINANCIAL INFORMATION RELEASE
                             CONSOLIDATED BALANCE SHEETS
                           APRIL 30, 2000 AND MAY 2, 1999
  
                               (Amounts in Thousands)
  Amounts                             Increase
                                                   ---------------------------------------            (Decrease)
                                                        April 30,            May 2,       ---------------------------------
                                                          2000                1999            Dollars         Percent
                                                   --------------------  ---------------  ----------------    -------------
  Current assets
         Cash and cash investments               $               1,007              509               498         97.8 %
         Accounts receivable                                    75,223           70,503             4,720          6.7 %
         Inventories                                            74,471           67,070             7,401         11.0 %
         Other current assets                                   10,349            9,633               716          7.4 %
                                                   --------------------  ---------------  ----------------    -------------
                    Total current assets                       161,050          147,715            13,335          9.0 %
  
  Restricted investments                                             0            3,340            (3,340)      (100.0)%
  Property, plant & equipment, net                             126,407          123,310             3,097          2.5 %
  Goodwill                                                      49,873           51,269            (1,396)        (2.7)%
  Other assets                                                   5,548            4,978               570         11.5 %
                                                   --------------------  ---------------  ----------------    -------------
  
                    Total assets                 $             342,878          330,612            12,266          3.7 %
                                                   ====================  ===============  ================    =============
  
  Current liabilities
         Current maturities of long-term debt    $               1,678            1,678                 0          0.0 %
         Accounts payable                                       37,287           25,687            11,600         45.2 %
         Accrued expenses                                       22,108           21,026             1,082          5.1 %
                                                   --------------------  ---------------  ----------------    -------------
                    Total current liabilities                   61,073           48,391            12,682         26.2 %
  
  Long-term debt                                               135,808          140,312            (4,504)        (3.2)%
  
  Deferred income taxes                                         17,459           14,583             2,876         19.7 %
                                                   --------------------  ---------------  ----------------    -------------
                    Total liabilities                          214,340          203,286            11,054          5.4 %
  
  Shareholders' equity                                         128,538          127,326             1,212          1.0 %
                                                   --------------------  ---------------  ----------------    -------------
  
                    Total liabilities and
                    shareholders' equity         $             342,878          330,612            12,266          3.7 %
                                                   ====================  ===============  ================    =============
  
  Shares outstanding                                            11,209           12,079              (870)        (7.2)%
                                                   ====================  ===============  ================    =============
  CULP, INC. FINANCIAL
                                 INFORMATION RELEASE
                        CONSOLIDATED STATEMENTS OF CASH FLOWS
             FOR THE TWELVE MONTHS ENDED APRIL 30, 2000 AND MAY 2, 1999
  
                               (Amounts in Thousands)
  TWELVE MONTHS ENDED
                                                                         --------------------------------
                                                                                     Amounts
                                                                         --------------------------------
                                                                             April 30,          May 2,
                                                                               2000             1999
                                                                         ---------------  ---------------
  Cash flows from operating activities:
       Net income                                                         $       9,380            3,102
       Adjustments to reconcile net income to net cash
          provided by operating activities:
              Depreciation                                                       19,462           18,549
              Amortization of intangible assets                                   1,596            1,570
              Provision for deferred income taxes                                 2,176            1,064
              Changes in assets and liabilities:
                  Accounts receivable                                            (4,720)           3,133
                  Inventories                                                    (7,401)          12,124
                  Other current assets                                              (16)             522
                  Other assets                                                     (770)            (106)
                  Accounts payable                                                1,029           (8,893)
                  Accrued expenses                                                1,082            2,736
                  Income taxes payable                                                0           (1,282)
                                                                         ---------------  ---------------
                      Net cash provided by operating activities                  21,818           32,519
                                                                         ---------------  ---------------
  Cash flows from investing activities:
       Capital expenditures                                                     (22,559)         (10,689)
       Purchases of restricted investments                                          (40)            (119)
       Purchase of investments to fund deferred compensation liability                0             (735)
       Sale of restricted investments                                             3,380              800
                                                                         ---------------  ---------------
                      Net cash used in investing activities                     (19,219)         (10,743)
                                                                         ---------------  ---------------
  Cash flows from financing activities:
       Proceeds from issuance of long-term debt                                   9,543            2,637
       Principal payments on long-term debt                                     (14,047)         (16,284)
       Change in accounts payable-capital expenditures                           10,571           (2,637)
       Dividends paid                                                            (1,611)          (1,788)
       Payments to acquire common stock                                          (6,636)          (5,542)
       Proceeds from common stock issued                                             79               35
                                                                         ---------------  ---------------
                      Net cash used in financing activities                      (2,101)         (23,579)
                                                                         ---------------  ---------------
  
  Increase (decrease) in cash and cash investments                                  498           (1,803)
  
  Cash and cash investments at beginning of period                                  509            2,312
                                                                         ---------------  ---------------
  
  Cash and cash investments at end of period                              $       1,007              509
                                                                         ===============  ===============
  CULP, INC. FINANCIAL INFORMATION RELEASE
                                 FINANCIAL ANALYSIS
                                   APRIL 30, 2000
  FISCAL 99                            FISCAL 00
                                           -------------   ---------------------------------------------------------   ---------------
                                                Q4              Q1             Q2            Q3            Q4             LTM (5)
                                           -------------   ---------------------------------------------------------   ---------------
  INVENTORIES
          Inventory turns                           6.4              5.4            5.5           4.8           5.5
  
  RECEIVABLES
          Days sales in receivables                  49               45             49            49            53
          Percent current & less than 30
            days past due                         96.1%            93.2%          96.7%         97.1%         93.5%
  
  WORKING CAPITAL
          Current  ratio                            3.1              3.1            2.4           2.7           2.6
          Working capital turnover (4)              4.3              4.4            4.4           4.5           4.4
          Operating working capital (4)        $111,886         $111,222       $109,556      $111,315      $112,407
  
  PROPERTY, PLANT & EQUIPMENT
          Depreciation rate                        8.1%             8.0%           7.8%          8.2%          7.9%
          Percent property, plant &
            equipment are depreciated             47.6%            49.0%          49.1%         49.4%         49.6%
          Capital expenditures                  $10,689 (1)       $2,420         $8,104        $3,950        $8,085
  
  PROFITABILITY
          Return on average total capital          6.8%             4.8%           7.3%          4.9%          7.2%              6.0%
          Return on average equity                 9.0%             5.0%          10.0%          4.6%         10.0%              7.4%
          Net income per share                    $0.23            $0.13          $0.27         $0.13         $0.28             $0.81
          Net income per share (diluted)          $0.23            $0.13          $0.27         $0.13         $0.28             $0.80
  
  LEVERAGE (3)
          Total liabilities/equity               159.7%           155.9%         170.1%        167.3%        166.8%
          Funded debt/equity                     108.9%           106.3%         107.2%        109.5%        107.0%
          Funded debt/capital employed            52.1%            51.5%          51.7%         52.3%         51.7%
          Funded debt                          $138,650         $136,222       $134,468      $137,683      $137,486
          Funded debt/EBITDA (LTM) (6)             4.02             3.33           3.08          3.15          3.10
          EBITDA/Interest expense, net (LTM)        3.6              4.3            4.6           4.5           4.7
  
  OTHER
          Book value per share                   $10.54           $10.64         $11.08        $11.21        $11.47
          Employees at quarter end                3,973            4,050          3,962         3,938         3,825
          Sales per employee (annualized)      $133,000         $116,000       $129,000      $115,000      $133,000
          Capital employed (3)                 $265,976         $264,349       $259,848      $263,448      $266,024
          Effective income tax rate               27.7%            34.0%          34.0%         25.9%         29.9%
          EBITDA (2)                            $11,534           $9,977        $12,412        $9,655       $12,178           $44,222
          EBITDA/net sales                         8.7%             8.6%           9.6%          8.5%          9.4%              9.1%
  
    (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 TWELVE MONTHS ENDED APRIL 30, 2000 AND MAY 2, 1999
  
                               (Amounts in thousands)
  THREE MONTHS ENDED (UNAUDITED)
                                         --------------------------------------------------------------------------
                                                  Amounts                                Percent of Total Sales
                                         --------------------------                    ----------------------------
                                          April 30,      May 2,           % Over
  Segment/Division                          2000          1999           (Under)        2000            1999
  ------------------------------------   ------------  ------------   ---------------  -------------   ------------
  Upholstery Fabrics
      Culp Decorative Fabrics         $       56,130        60,520        (7.3)%          43.4 %          45.8 %
      Culp Velvets/Prints                     39,501        40,402        (2.2)%          30.5 %          30.6 %
      Culp Yarn                                4,809         4,462         7.8 %           3.7 %           3.4 %
                                         ------------  ------------   ---------------  -------------   ------------
                                             100,440       105,384        (4.7)%          77.6 %          79.7 %
  
  Mattress Ticking
      Culp Home Fashions                      28,979        26,781         8.2 %          22.4 %          20.3 %
                                         ------------  ------------   ---------------  -------------   ------------
  
                                    * $      129,419       132,165        (2.1)%         100.0 %         100.0 %
                                         ============  ============   ===============  =============   ============
  
                                                                    TWELVE MONTHS ENDED
                                         --------------------------------------------------------------------------
  
                                                  Amounts                                Percent of Total Sales
                                         --------------------------                    ----------------------------
                                          April 30,      May 2,           % Over
  Segment/Division                          2000          1999           (Under)        2000            1999
  ------------------------------------   ------------  ------------   ---------------  -------------   ------------
  Upholstery Fabrics
      Culp Decorative Fabrics         $      213,197       222,058        (4.0)%          43.7 %          46.0 %
      Culp Velvets/Prints                    151,543       144,073         5.2 %          31.0 %          29.8 %
      Culp Yarn                               17,570        21,513       (18.3)%           3.6 %           4.5 %
                                         ------------  ------------   ---------------  -------------   ------------
                                             382,310       387,644        (1.4)%          78.3 %          80.2 %
  
  Mattress Ticking
      Culp Home Fashions                     105,769        95,440        10.8 %          21.7 %          19.8 %
                                         ------------  ------------   ---------------  -------------   ------------
  
                                    * $      488,079       483,084         1.0 %         100.0 %         100.0 %
                                         ============  ============   ===============  =============   ============
  * U.S.  sales were  $101,276 and $102,796 for the fourth  quarter of fiscal 2000
  and fiscal 1999,  respectively;  and $376,975 and $369,730 for the twelve months
  of fiscal 2000 and fiscal  1999,  respectively.  The  percentage  change in U.S.
  sales was a decrease of 1.5% for the fourth  quarter and an increase of 2.0% for
  the twelve months.
  CULP, INC. FINANCIAL INFORMATION RELEASE
                       INTERNATIONAL SALES BY GEOGRAPHIC AREA
     FOR THE THREE MONTHS AND TWELVE MONTHS ENDED APRIL 30, 2000 AND MAY 2, 1999
  
                               (Amounts in thousands)
  THREE MONTHS ENDED (UNAUDITED)
                                         --------------------------------------------------------------------------------
                                                    Amounts                                   Percent of Total Sales
                                         -------------------------------                   ------------------------------
                                           April 30,         May 2,          % Over
           Geographic Area                    2000            1999           (Under)         2000             1999
  ----------------------------------     ---------------  --------------  --------------   -------------     ------------
  North America (Excluding USA)     $             9,968           8,067       23.6 %           35.4 %           27.5 %
  Europe                                          2,655           4,791      (44.6)%            9.4 %           16.3 %
  Middle East                                     8,837           8,925       (1.0)%           31.4 %           30.4 %
  Far East & Asia                                 5,014           6,075      (17.5)%           17.8 %           20.7 %
  South America                                     570             691      (17.5)%            2.0 %            2.4 %
  All other areas                                 1,099             820       34.0 %            3.9 %            2.8 %
                                         ---------------  --------------  --------------   -------------     ------------
                                    $            28,143          29,369       (4.2)%          100.0 %          100.0 %
                                         ===============  ==============  ==============   =============     ============
  
                                                                       TWELVE MONTHS ENDED
                                         --------------------------------------------------------------------------------
                                                    Amounts                                   Percent of Total Sales
                                         -------------------------------                   ------------------------------
                                           April 30,         May 2,          % Over
           Geographic Area                    2000            1999           (Under)         2000             1999
  ----------------------------------     ---------------  --------------  --------------   -------------     ------------
  North America (Excluding USA)     $            36,032          31,102       15.9 %           32.4 %           27.4 %
  Europe                                         16,351          19,578      (16.5)%           14.7 %           17.3 %
  Middle East                                    32,929          33,996       (3.1)%           29.6 %           30.0 %
  Far East & Asia                                19,102          21,371      (10.6)%           17.2 %           18.9 %
  South America                                   2,343           3,484      (32.7)%            2.1 %            3.1 %
  All other areas                                 4,347           3,823       13.7 %            3.9 %            3.4 %
                                         ---------------  --------------  --------------   -------------     ------------
                                    $           111,104         113,354      (2.0) %          100.0 %          100.0 %
                                         ===============  ==============  ==============   =============     ============
  International  sales,  and the  percentage of total sales,  for each of the last
  five fiscal years  follows:  fiscal  1996-$77,397  (22%);  fiscal  1997-$101,571
  (25%);  fiscal  1998-$137,223  (29%);  fiscal  1999-$113,354  (23%);  and fiscal
  2000-$111,104  (23%).  International  sales for the fourth  quarter  represented
  21.7% and 22.2% for 2000 and 1999, respectively.
  Culp, Inc.
                     SALES BY SEGMENT/DIVISION - TREND ANALYSIS
                                1998 vs 1999 vs 2000
  
                               (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
  
                               (Amounts in thousands)
  Fiscal 2000
                             -----------------------------------------------
      Segment/Division          Q1        Q2        Q3        Q4      TOTAL
  -------------------------
  Upholstery Fabrics
      Culp Decorative Fabrics   50,516    56,897    49,654   56,130  213,197
      Culp Velvets/Prints       36,209    41,783    34,050   39,501  151,543
      Culp Yarn                  4,129     4,358     4,274    4,809   17,570
                             -----------------------------------------------
                                90,854   103,038    87,978  100,440  382,310
  
  Mattress Ticking
      Culp Home Fashions        25,083    26,504    25,203   28,979  105,769
                             -----------------------------------------------
  
                               115,937   129,542   113,181  129,419  488,079
                             ===============================================
  
                     Percent increase(decrease) from prior year:
  
      Segment/Division
  -------------------------
  
  Upholstery Fabrics
      Culp Decorative Fabrics     (1.8)     (4.5)     (1.7)    (7.3)   (4.0)
      Culp Velvets/Prints         20.7       7.9      (2.6)    (2.2)    5.2
      Culp Yarn                  (37.4)    (31.6)      4.5      7.8   (18.3)
                             -----------------------------------------------
                                   3.2      (1.6)     (1.8)    (4.7)   (1.4)
  
  Mattress Ticking
      Culp Home Fashions          10.8      12.8      11.8      8.2    10.8
                             -----------------------------------------------
                                   4.8       1.1       1.0     (2.1)    1.0
                             ===============================================
  
    Overall Growth Rate
  
  Internal (without acquisitions)  4.8       1.1       1.0     (2.1)    1.0
  External                           -         -         -        -       -
                             ===============================================
                                   4.8       1.1       1.0     (2.1)    1.0
                             ===============================================
  CULP, INC. FINANCIAL INFORMATION RELEASE
                                 FINANCIAL NARRATIVE
     for the three and twelve month periods ended April 30, 2000 and May 2, 1999
  
  INCOME STATEMENT COMMENTS
  
       GENERAL  - For the  fourth  quarter,  net  sales  decreased  2.1% to $129.4
  million;  and net income rose 10.2% to $3.2 million,  or $0.28 per share diluted
  (based on 11,298,000 average shares outstanding during the period),  versus $2.9
  million,  or $0.23  per  share  diluted  (based  on  12,742,000  average  shares
  outstanding  during the period),  a year ago. For the year ended April 30, 2000,
  net sales increased 1.0% to $488.1 million;  and net income  increased 202.4% to
  $9.4 million,  or $0.80 per share diluted  (based on 11,681,000  average  shares
  outstanding  during the period),  compared with net income of $3.1  million,  or
  $0.24 per share diluted (based on 13,064,000  average shares  outstanding during
  the period), 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 - maintaining a diverse, global customer base.
       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  fiscal  2000.  Ownership  of the  resources  in the home
       furnishings industry is becoming increasingly concentrated, and the company
       is seeking to increase its business further with existing  customers.  Culp
       is also pursuing opportunities in other end-use markets in addition to U.S.
       residential furniture, such as bedding, international, commercial furniture
       and juvenile furniture;
  
       Design  Innovation - continuing to invest in personnel and other  resources
       for 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 match  current  consumer
       preferences. The company's principal design resources are consolidated in a
       single  facility  that has  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 fourth  quarter  of last  year,  upholstery
  fabric  sales  decreased  4.7% to $100.4  million  and  mattress  ticking  sales
  increased 8.2% to $29.0 million (See Sales by Segment/Division  schedule on Page
  5 and Sales by Segment/Division - Trend Analysis on Page 7). International sales
  were down 4.2% and 2.0% for the  quarter  and year,  respectively.  For the year
  ended April 30, 2000,  upholstery  fabric sales decreased 1.4% to $382.3 million
  and mattress ticking sales increased 10.8% to $105.8 million.
  
       Fiscal 2000 was the first full year in which the company  operated with its
  current structure of four divisions. This corporate organization,  which evolved
  from one in which  there were six  business  units,  groups  related  operations
  together;  and its adoption in fiscal 1999 was accompanied by several changes in
  managerial positions. The company believes that this new structure is yielding a
  number of benefits  including  improved customer service,  more effective use of
  design  resources and  increased  manufacturing  efficiency.  Culp believes that
  these factors aided its sales to U.S.-based accounts for fiscal 2000, which rose
  2.0% for the year. This growth was offset by a decline of 2.0% in  international
  sales. After several years of above-average  growth,  Culp's international sales
  declined 17.4% in fiscal 1999,  following an  industry-wide  trend.  The company
  took steps to mitigate the impact of this trend by significantly
  CULP, INC. FINANCIAL INFORMATION RELEASE
                                 FINANCIAL NARRATIVE
     for the three and twelve month periods ended April 30, 2000 and May 2, 1999
  
  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 believes that the significantly  smaller decline in international  sales
  for fiscal  2000  reflects  the  results of these  actions.  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.
  
       The company  continued  to benefit in fiscal 2000 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  declined 3.3% for the fourth  quarter versus a
  year ago and  decreased  as a percentage  of net sales from 17.3% to 17.1%.  The
  decline was due principally to lower sales volume at the Culp Decorative Fabrics
  division,  which  experienced a decrease in sales of 7.3% for the quarter (and a
  4.0% decrease for the year).  Although this division has taken steps  (including
  the ongoing  consolidation of the Phillips weaving plant in Monroe,  NC into the
  Pageland,  SC facility) to reduce operating expenses,  it was affected by excess
  manufacturing  capacity  and lower  absorption  of fixed costs during the fourth
  quarter.
  
       Gross profit for fiscal 2000 increased 11.2% to $84.7 million and increased
  as a percentage of net sales from 15.8% to 17.3% due to the reorganization noted
  in the second  paragraph of the "Net Sales"  section above and an intense effort
  to reduce operating expenses and raise productivity.
  
       SG&A  EXPENSES  - SG&A  expenses  for the  fourth  quarter  decreased  as a
  percentage  of sales  from  12.0% to 11.5%.  The  decrease  is  related to lower
  marketing  costs due  primarily to 1999  including  severance  costs  related to
  termination of an international sales agent.
  
       SG&A  expenses for fiscal 2000  decreased  0.1% and  accounted for 12.3% of
  sales versus 12.4% in the prior year.  The company has  increased  its resources
  for the design of new fabrics and for enhanced information systems.
  
       INTEREST  EXPENSE - Interest  expense of $9.5  million  for fiscal 2000 was
  down from $9.6  million in the prior year.  Although the company  generally  had
  lower  average  borrowings  during  fiscal 2000,  the reduced debt was offset by
  lower  capitalized  interest related to capital  expenditures and higher average
  interest rates.
  
       OTHER  EXPENSE  (INCOME),  NET - Other  expense  (income)  for fiscal  2000
  totaled $1.6 million  compared with $2.4 million in the prior year. The decrease
  is  principally  due to  higher  investment  income  on  assets  related  to the
  company's nonqualified deferred compensation plan.
  
       INCOME TAXES - The  effective  tax rate for fiscal 2000 was 31.5%  compared
  with 28.0% in the prior year.
  
       EBITDA - Due  principally to the increase in net income,  EBITDA for fiscal
  2000 increased 31% to $44.2 million from $33.8 million in the prior year.
  CULP, INC. FINANCIAL INFORMATION RELEASE
                                 FINANCIAL NARRATIVE
     for the three and twelve month periods ended April 30, 2000 and May 2, 1999
  
  BALANCE SHEET COMMENTS
  
       WORKING  CAPITAL - Accounts  receivable as of April 30, 2000 increased 6.7%
  from the  year-earlier  level, due principally to changes in the mix of accounts
  receivable between U.S.-based and international  customers. The company believes
  that these  changes are not due to any general  trend toward  slower  receivable
  collections.  Days  sales  outstanding  increased  to 53 days at April 30,  2000
  compared with 49 at the end of fiscal 1999. The aging of accounts receivable was
  93.5%  current and less than 30 days past due versus  96.1% at the end of fiscal
  1999.  Inventories  at the close of fiscal 2000  increased $7.4 million or 11.0%
  from a year ago,  principally  due to the  decision  to increase  the  company's
  ability to respond quickly to customers' orders.  Inventory turns for the fourth
  quarter  of  fiscal  2000  were  5.5  versus  6.4 for the  year-earlier  period.
  Operating  working  capital  (comprised  of accounts  receivable,  inventory and
  accounts payable) was $112.4 million at April 30, 2000, up from $111.9 million a
  year ago.
  
       PROPERTY,  PLANT AND EQUIPMENT - During  fiscal 2000 the company's  capital
  spending  increased to $22.6  million  compared  with $10.7 million in the prior
  year. The level of capital spending in fiscal 1999 was  significantly  less than
  in the past several years because of a focus on improving the return on existing
  assets. Culp is committed to investing  sufficient funds to modernize and expand
  its manufacturing  resources and information  systems.  The company is budgeting
  total  capital   spending  for  fiscal  2001  of   approximately   $16  million.
  Depreciation  expense for fiscal 2000  increased to $19.5  million  versus $18.5
  million for fiscal 1999.  Depreciation for fiscal 2001 is currently estimated to
  be $20.5 million.
  
       LONG-TERM DEBT - The company's  funded  debt-to-capital  ratio was 51.7% at
  April 30, 2000 compared with 52.1% at the close of fiscal 1999.  Funded debt was
  $137.5  million at April 30, 2000 compared  with $138.7  million at the close of
  fiscal 1999. Funded debt equals long-term debt,  including  current  maturities,
  less restricted investments,  which represent unspent IRB funds. The decrease in
  funded debt from a year ago resulted  primarily  from an operating  cash flow of
  $21.8  million  and  an  increase  in  accounts   payable   related  to  capital
  expenditures of $10.6 million,  offset by capital expenditures of $22.6 million,
  repurchases of common stock of $6.6 million and dividends paid of $1.6 million.
  
  STOCK REPURCHASE
  
       In separate  authorizations  in June 1998,  March 1999,  September 1999 and
  December  1999,  the Board of Directors  authorized  the use of a total of $20.0
  million to  repurchase  the  company's  common  stock.  Over the past two fiscal
  years,  the company has  invested  $12.2  million to  repurchase  a total of 1.8
  million  shares.  This  includes the  repurchase  during  fiscal 2000 of 884,264
  shares at an average price of $7.50 per share under these authorizations.