content: SECURITIES AND EXCHANGE COMMISSION
                              Washington, D.C. 20549
  
                                     ---------
  
                                     Form 8-K
  
                                  CURRENT REPORT
  
                 Pursuant to Section 13 or 15(d) of the Securities
                               Exchange Act of 1934
  
                                   -------------
  
         Date of Report (Date of earliest event reported) February 20, 2001
  
                                     CULP, INC.
  
              (Exact name of registrant as specified in its charter)
  
  
          North Carolina                  0-12781                56-1001967
  
   (State or other jurisdiction    (Commission File No.)       (IRS Employer
         of incorporation)                                  Identification No.)
  
  
  
                               101 South Main Street
                         High Point, North Carolina  27260
                     (Address of principal executive offices)
                                  (336) 889-5161
               (Registrant's telephone number, including area code)
  
  
  
  
  
           (Former name or former address, if changed since last report)
  
  
  
  <PAGE>
  
  
  Item 5. Other Events
  
  See  attached  Press  Release (3 pages) and  Financial  Information  Release (10
  pages),  both dated February 20, 2001,  related to the fiscal 2001 third quarter
  ended January 28, 2001.
  
  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:   February 20, 2001
  
  
  
  
  <PAGE>
  
  FOR IMMEDIATE RELEASE
  
  
                   CULP REPORTS THIRD QUARTER RESULTS
                     INCLUDING RESTRUCTURING CHARGE
                         ----------------------
      SAVINGS OF $12 MILLION EXPECTED FROM ACTIONS TO REDUCE COSTS
  
  HIGH POINT,  N. C. (Feb.  20, 2001) -- As  anticipated,  Culp,  Inc.
  (NYSE:  CFI)  today  reported  a loss for its third  fiscal  quarter
  that  reflects the  widespread  contraction  in demand that the home
  furnishings  industry  has  encountered  as well as charges from the
  Company's   announced   actions   to  reduce   costs  and   increase
  efficiency.
  
        For the three months ended  January 28,  2001,  Culp  reported
  net  sales of $95.9  million  compared  with  $113.2  million a year
  ago.  Including  previously   announced   restructuring  costs,  the
  Company  reported  a net loss for the  quarter of $5.5  million,  or
  $0.49 per share  diluted,  compared with net income of $1.4 million,
  or $0.13 per share diluted, in the year-earlier period.
  
        Net sales for the first  nine  months of fiscal  2001  totaled
  $308.7  million  compared with  $358.7-million  in the  year-earlier
  period.  Including  previously  announced  restructuring  costs, the
  Company  reported  a net  loss for the  first  nine  months  of $6.9
  million,  or $0.61 per share  diluted,  compared  with net income of
  $6.2  million,  or $0.52  per  share  diluted,  in the  year-earlier
  period.
  
        Robert G. Culp, III, chief executive officer,  commented, "Our
  results for the third  fiscal  quarter  reflect the  contraction  in
  demand  that we had  identified  at mid  year  and  which  we  again
  highlighted   publicly   last  month.   We  have  found   widespread
  softness  in  orders  for  upholstery  fabrics  for  U.S.  furniture
  sales,  especially  in the  promotional  categories  of the  market.
  This  appears to be an  industry-wide  pattern  that became  evident
  with the  well-publicized  deceleration  in  spending  by  consumers
  that  began  during  the  fourth  calendar   quarter  of  2000.  The
  weakness that we have been  experiencing in  international  sales is
  also  persisting.  We have  obtained  little  relief in terms of the
  high relative value of the U.S.  dollar against  foreign  currencies
  compared  with a  year  ago.  Our  sales  of  fabrics  to  customers
  outside the United  States  during the third  quarter  were down 31%
  from the year-earlier period.
  
        "We are  continuing our  fundamental  mission of marketing new
  fabric  patterns  and  textures  that  help our  customers  meet the
  needs  of  consumers.   At  the  same  time,   we  understand   that
  execution  of  this  strategy  demands   stringent   containment  of
  expenses  during  the  difficult  period in which we are  operating.
  The  restructuring  plan we announced  last month is well  underway.
  As we began  executing  the initial  phase of this program to reduce
  costs,  we recognized  that the severity of the current  downturn in
  demand  necessitated a more aggressive  effort.  We have accordingly
  decided to consolidate  additional  capacity in the Culp  Decorative
  Fabrics  division  and have taken steps that will lower our selling,
  general  and  administrative  expenses   significantly.   The  total
  charge  from  the   restructuring,   cost  reduction  and  inventory
  adjustment  initiatives  is expected to exceed $6.0  million,  about
  half of which should  represent  non-cash  items. We recognized $3.2
  million of  restructuring  charges  and  special  costs in the third
  quarter,  and most of the balance  will be  reflected in our results
  for the fourth fiscal  period.  Our target is to achieve  annualized
  cost  reductions  of at least $12 million when these steps are fully
  implemented."
  
        Culp added,  "We are continuing to manage our balance sheet to
  maximize  the  return  on  our   financial   assets  and   generated
  sufficient  cash from  operations  through  the first nine months to
  reduce debt and payables  related to capital  expenditures  by $21.8
  million.  We  recently  amended  our  credit  facility  and  were in
  compliance  with  the  revised  terms as of the  close of the  third
  quarter.  As a  result  of the  amendments  to  that  facility,  the
  Company is  restricted  from  paying  cash  dividends  at this time.
  Although  we respect  Culp's  heritage  of paying a  quarterly  cash
  dividend for 18  consecutive  years,  we  recognize  the priority of
  conserving  cash to enhance  our  financial  liquidity  during  this
  challenging period.
  
        "We  appreciate  the  response  of our  organization  to these
  difficult,  but  necessary  actions.  Culp  has  developed  a strong
  culture of  teamwork  over the years,  and the  decisions  involving
  personnel  reductions  have been  especially  hard.  Although we are
  starting  to  benefit  from the steps to lower  costs,  we expect to
  report a loss for fiscal  2001 as a whole  based on current  trends.
  We are confident  about the basic value we add to the  manufacturers
  of  upholstered  furniture  and bedding and are  optimistic  about a
  longer-term recovery in our financial performance."
  
        Culp,  Inc.  is  one  of  the  world's  largest  marketers  of
  upholstery  fabrics  for  furniture  and is a  leading  marketer  of
  mattress  ticking  for  bedding.  The  Company's  fabrics  are  used
  principally  in  the   production  of  residential   and  commercial
  furniture and bedding products.
  
        This   release   contains   statements   that  may  be  deemed
  "forward-looking  statements"  within  the  meaning  of the  federal
  securities  laws,   including  the  Private  Securities   Litigation
  Reform  Act of 1995.  Such  statements  are  inherently  subject  to
  risks   and    uncertainties.    Forward-looking    statements   are
  statements that include  projections,  expectations or beliefs about
  future  events  or  results  or  otherwise  are  not  statements  of
  historical   fact.  Such  statements  are  often   characterized  by
  qualifying  words such as "expect,"  "believe,"  "estimate,"  "plan"
  and "project" and their derivatives. Factors  that  could  influence
  the  matters   discussed  in  such statements include  the  level of
  housing starts and sales of existing  homes,   consumer  confidence,
  trends  in  disposable  income  and  general  economic   conditions.
  Decreases  in  these  economic  indicators  could  have  a  negative
  effect on the Company's  business and prospects. Likewise, increases
  in interest rates, particularly home mortgage  rates,  and increases
  in consumer debt or the general rate of inflation,  could affect the
  Company  adversely.  Because  of  the  significant percentage of the
  Company's sales derived from international shipments,  strengthening
  of the U.S. dollar against other currencies could make the Company's
  products less  competitive on the basis of price in markets  outside
  the   United   States.   Additionally,    economic   and   political
  instability in  international  areas could affect the demand for the
  Company's products.
  
  
                               CULP, INC.
                     Condensed Financial Highlights
                               (Unaudited)
  
                                               Three Months Ended
                                          --------------------------
                                          January 28,    January 30,
                                             2001           2000
                                         ------------   ------------
  Net sales                              $95,880,000    $113,181,000
  Net income (loss)                      $(5,470,000)   $  1,432,000
  Net income (loss) per share:
    Basic                                $     (0.49)   $       0.13
    Diluted                              $     (0.49)   $       0.13
  Average shares outstanding:
    Basic                                 11,211,000      11,296,000
    Diluted                               11,211,000      11,389,000
  
                                               Nine Months Ended
                                         ---------------------------
                                          January 28,    January 30,
                                             2001           2000
                                         ------------   ------------
  Net sales                              $308,739,000   $358,660,000
  Net income (loss)                      $(6,884,000)   $  6,189,000
  Net income (loss) per share:
    Basic                                $     (0.61)   $       0.53
    Diluted                              $     (0.61)   $       0.52
  Average shares outstanding:
    Basic                                 11,209,000      11,703,000
    Diluted                               11,209,000      11,816,000
  
                                   -END-
  
  <PAGE>
                     CULP, INC. FINANCIAL INFORMATION RELEASE
                      CONSOLIDATED STATEMENTS OF INCOME (LOSS)
  FOR THE THREE MONTHS AND NINE MONTHS ENDED JANUARY 28, 2001 AND JANUARY 30, 2000
  
                  (Amounts in Thousands, Except for Per Share Data)
  <TABLE>
  <CAPTION>
                                                                     THREE MONTHS ENDED (UNAUDITED)
                                            -------------------------------------------------------------------------
                                                    Amounts                                    Percent of Sales
                                           ---------------------------                     --------------------------
                                           January 28,   January 30,      % Over
                                               2001          2000         (Under)            2001           2000
                                           ------------- -------------  ------------       ------------  ------------
  <S>                                   <C>                  <C>          <C>                 <C>            <C>
  Net sales                             $        95,880       113,181      (15.3) %            100.0 %        100.0 %
  Cost of sales                                  86,047        94,712       (9.1) %             89.7 %         83.7 %
                                           ------------- -------------  ------------       ------------  ------------
          Gross profit                            9,833        18,469      (46.8) %             10.3 %         16.3 %
  
  Selling, general and
    administrative expenses                      12,480        13,949      (10.5) %             13.0 %         12.3 %
  Restructuring expense                           2,504             0      100.0  %              2.6 %          0.0 %
                                           ------------- -------------  ------------       ------------  ------------
          Income (loss) from operations          (5,151)        4,520     (214.0) %             (5.4)%          4.0 %
  
  Interest expense                                2,222         2,366       (6.1) %              2.3 %          2.1 %
  Interest income                                   (18)           (8)     125.0  %             (0.0)%         (0.0)%
  Other expense (income), net                       811           229      254.1  %              0.8 %          0.2 %
                                           ------------- -------------  ------------       ------------  ------------
          Income (loss) before income taxes      (8,166)        1,933     (522.5) %             (8.5)%          1.7 %
  
  Income taxes  *                                (2,696)          501     (638.1) %             33.0 %         25.9 %
                                           ------------- -------------  ------------       ------------  ------------
  
          Net income (loss)             $        (5,470)        1,432     (482.0) %             (5.7)%          1.3 %
                                           ============= =============  ============       ============  ============
  
  Net income (loss) per share                    ($0.49)        $0.13     (476.9) %
  Net income (loss) per share, assuming dilution ($0.49)        $0.13     (476.9) %
  Dividends per share                            $0.035        $0.035        0.0  %
  Average shares outstanding                     11,211        11,296       (0.8) %
  Average shares outstanding, assuming dilution  11,211        11,389       (1.6) %
  
  
  
                                                                       NINE MONTHS ENDED (UNAUDITED)
                                           -------------------------------------------------------------------------
                                                    Amounts                                    Percent of Sales
                                           ---------------------------                     --------------------------
                                           January 28,   January 30,      % Over
                                               2001          2000         (Under)            2001           2000
                                           ------------- -------------  ------------       ------------  ------------
  
  Net sales                             $       308,739       358,660      (13.9) %            100.0 %        100.0 %
  Cost of sales                                 267,845       296,072       (9.5) %             86.8 %         82.5 %
                                           ------------- -------------  ------------       ------------  ------------
          Gross profit                           4O,894        62,588      (34.7) %             13.2 %         17.5 %
  
  Selling, general and
    administrative expenses                      39,749        45,022      (11.7) %             12.9 %         12.6 %
  Restructuring expense                           2,504             0      100.0  %              0.8 %          0.0 %
                                           ------------- -------------  ------------       ------------  ------------
          Income (loss) from operations          (1,359)       17,566     (107.7) %             (0.4)%          4.9 %
  
  Interest expense                                6,830         7,266       (6.0) %              2.2 %          2.0 %
  Interest income                                   (40)          (41)      (2.4) %             (0.0)%         (0.0)%
  Other expense (income), net                     2,127         1,200       77.3  %              0.7 %          0.3 %
                                           ------------- -------------  ------------       ------------  ------------
          Income (loss) before income taxes     (10,276)        9,141     (212.4) %             (3.3)%          2.5 %
  
  Income taxes  *                                (3,392)        2,952     (214.9) %             33.0 %         32.3 %
                                           ------------- -------------  ------------       ------------  ------------
  
          Net income (loss)             $        (6,884)        6,189     (211.2) %             (2.2)%          1.7 %
                                           ============= =============  ============       ============  ============
  
  Net income (loss) per share                    ($0.61)        $0.53     (215.1) %
  Net income (loss) per share, assuming dilution ($0.61)        $0.52     (217.3) %
  Dividends per share                            $0.105        $0.105        0.0  %
  Average shares outstanding                     11,209        11,703       (4.2) %
  Average shares outstanding, assuming dilution  11,209        11,816       (5.1) %
  </TABLE>
  
   * Percent of sales column is calculated as a % of income (loss)
  before income taxes.
  <PAGE>
                      CULP, INC. FINANCIAL INFORMATION RELEASE
                             CONSOLIDATED BALANCE SHEETS
                JANUARY 28, 2001, JANUARY 30, 2000 AND APRIL 30, 2000
                                      Unaudited
                               (Amounts in Thousands)
  
  <TABLE>
  <CAPTION>
                                                             Amounts                          Increase
                                               -----------------------------------           (Decrease)               (1)(2)
                                                  January 28,      (2)January 30,    -----------------------------    April 30,
                                                      2001              2000           Dollars        Percent          2000
                                               -------------------  --------------  --------------    -----------   ----------
  <S>                                         <C>                         <C>           <C>           <C>            <C>
  Current assets
         Cash and cash investments            $               292             568           (276)      (48.6) %         1,007
         Accounts receivable                               54,474          65,788        (11,314)      (17.2) %        75,223
         Inventories                                       67,156          80,874        (13,718)      (17.0) %        74,471
         Other current assets                              13,706           9,016          4,690        52.0  %        10,349
                                               -------------------  --------------  --------------    -----------   ----------
                   Total current assets                   135,628         156,246        (20,618)      (13.2) %       161,050
  
  Restricted investments                                        0           1,047         (1,047)     (100.0) %             0
  Property, plant & equipment, net                        116,207         123,303         (7,096)       (5.8) %       126,407
  Goodwill                                                 48,827          50,222         (1,395)       (2.8) %        49,873
  Other assets                                              2,256           6,490         (4,234)      (65.2) %         6,650
                                               -------------------  --------------  --------------    -----------   ----------
  
                   Total assets               $           302,918         337,308        (34,390)      (10.2) %       343,980
                                               ===================  ==============  ==============    ===========   ==========
  
  
  
  Current liabilities
         Current maturities of long-term debt $             2,159           1,678            481        28.7  %         1,678
         Accounts payable                                  27,084          35,347         (8,263)      (23.4) %        37,287
         Accrued expenses                                  15,417          20,878         (5,461)      (26.2) %        22,108
         Income taxes payable                                   0             903           (903)     (100.0) %             0
                                               -------------------  --------------  --------------    -----------   ----------
                   Total current liabilities               44,660          58,806        (14,146)      (24.1) %        61,073
  
  Long-term debt                                          119,213         137,052        (17,839)      (13.0) %       135,808
  
  Deferred income taxes                                    17,459          14,583          2,876        19.7  %        17,459
                                               -------------------  --------------  --------------    -----------   ----------
                   Total liabilities                      181,332         210,441        (29,109)      (13.8) %       214,340
  
  Shareholders' equity                                    121,586         126,867         (5,281)       (4.2) %       129,640
                                               -------------------  --------------  --------------    -----------   ----------
  
                   Total liabilities and
                   shareholders' equity      $            302,918         337,308        (34,390)      (10.2) %       343,980
                                               ===================  ==============  ==============    ===========   ==========
  
  Shares outstanding                                       11,211          11,216             (5)       (0.0) %        11,209
                                               ===================  ==============  ==============    ===========   ==========
  
  </TABLE>
  
  (1) Derived from audited financial statements.
  (2) As restated (see Restatement paragraph within Financial Narrative)
  
  <PAGE>
                                CULP, INC. FINANCIAL
                                 INFORMATION RELEASE
                        CONSOLIDATED STATEMENTS OF CASH FLOWS
           FOR THE NINE MONTHS ENDED JANUARY 28, 2001 AND JANUARY 30, 2000
                                      Unaudited
                               (Amounts in Thousands)
  <TABLE>
  <CAPTION>
                                                                         NINE MONTHS ENDED
                                                                    -----------------------------
                                                                              Amounts
                                                                    -----------------------------
                                                                     January 28,    January 30,
                                                                        2001            2000
                                                                    --------------  -------------
  <S>                                                                <C>              <C>
  Cash flows from operating activities:
      Net income (loss)                                            $      (6,884)         6,189
         Adjustments to reconcile net income (loss) to net
           cash provided by operating activities:
             Depreciation                                                  14,781         14,481
             Amortization of intangible assets                              1,196          1,197
             Amortization of deferred compensation                            303            180
             Restructuring expense                                          2,504              0
             Changes in assets and liabilities:
                 Accounts receivable                                       20,749          4,715
                 Inventories                                                7,315        (13,804)
                 Other current assets                                      (3,357)           617
                 Other assets                                                 226           (560)
                 Accounts payable                                          (4,536)         4,619
                 Accrued expenses                                          (8,076)          (328)
                 Income taxes payable                                           0            903
                                                                    --------------  -------------
                    Net cash provided by operating activities              24,221         18,209
                                                                    --------------  -------------
  Cash flows from investing activities:
       Capital expenditures                                                (6,532)       (14,474)
       Purchases of restricted investments                                      0            (35)
       Sale of investments related to deferred compensation plan            4,547              0
       Sale of restricted investments                                           0          2,328
                                                                    --------------  -------------
                    Net cash used in investing activities                  (1,985)       (12,181)
                                                                    --------------  -------------
  Cash flows from financing activities:
       Proceeds from issuance of long-term debt                               564          8,510
       Principal payments on long-term debt                               (16,678)       (11,770)
       Change in accounts payable-capital expenditures                     (5,667)         5,041
       Dividends paid                                                      (1,177)        (1,218)
       Payments to acquire common stock                                         0         (6,552)
       Proceeds from common stock issued                                        7             20
                                                                    --------------  -------------
                    Net cash used in financing activities                 (22,951)        (5,969)
                                                                    --------------  -------------
  
  Increase (decrease) in cash and cash investments                           (715)            59
  
  Cash and cash investments at beginning of period                          1,007            509
                                                                    --------------  -------------
  
  Cash and cash investments at end of period                       $          292            568
                                                                    ==============  =============
  </TABLE>
  
  <PAGE>
  
  
  
                      CULP, INC. FINANCIAL INFORMATION RELEASE
                                 FINANCIAL ANALYSIS
                                  JANUARY 28, 2001
  <TABLE>
  <CAPTION>
  
                                            FISCAL 00                      FISCAL 01
                                            ---------     --------------------------------------------   -----------
                                              Q3 (7)          Q1 (7)      Q2 (7)      Q3         Q4         LTM (5)
                                            ---------     --------------------------------------------   -----------
  <S>                                       <C>           <C>          <C>        <C>        <C>         <C>
  INVENTORIES
        Inventory turns                          4.8             4.7        5.1        4.9
  
  RECEIVABLES
        Days sales in receivables                 49              49         52         48
        Percent current & less than 30
          days past due                        97.1%           91.5%      94.7%      94.4%
  
  WORKING CAPITAL
        Current ratio                            2.7             3.2        2.7        3.0
        Working capital turnover (4)             4.5             4.3        4.2        4.1
        Operating working capital (4)       $111,315        $108,509   $106,607    $94,546
  
  PROPERTY, PLANT & EQUIPMENT
        Depreciation rate                       8.2%            8.0%       7.9%       7.5%
        Percent property, plant &
          equipment are depreciated            49.4%           51.1%      52.6%      53.8%
        Capital expenditures                 $22,559 (1)      $2,289     $1,370     $2,873
  
  PROFITABILITY
        Return on average total capital         4.8%          (0.3%)       2.7%     (6.4%)                     0.9%
        Return on average equity                4.5%          (5.5%)       1.1%    (17.6%)                    (2.9%)
        Net income (loss) per share            $0.13         ($0.16)      $0.03    ($0.49)                   ($0.33)
        Net income (loss) per share (diluted)  $0.13         ($0.16)      $0.03    ($0.49)                   ($0.33)
  
  LEVERAGE (3)
        Total liabilities/equity              165.9%          156.1%     154.6%     149.1%
        Funded debt/equity                    108.5%          107.3%      99.5%      99.8%
        Funded debt/capital employed           52.0%           51.8%      49.9%      50.0%
        Funded debt                         $137,683        $136,828   $126,757   $121,372
        Funded debt/EBITDA (LTM) (6)            3.13            3.44       3.57       4.28
        EBITDA/Interest expense, net (LTM)      4.6              4.2        3.9        2.8
  
  OTHER
        Book value per share                  $11.31          $11.37     $11.37     $10.85
        Employees at quarter end               3,938           3,722      3,623      3,486
        Sales per employee (annualized)     $115,000        $108,000   $121,000   $108,000
        Capital employed (3)                $264,550        $264,320   $254,198   $242,958
        Effective income tax rate              25.9%           34.0%      37.9%      33.0%
        EBITDA (2)                            $9,715          $5,177     $8,265     ($648)                  $25,042
        EBITDA/net sales                        8.6%            5.1%       7.4%     (0.7%)                     5.7%
  </TABLE>
  
  (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, pro forma amounts for acquisitions and
      certain cash and non-cash charges, as defined by the company's credit
      agreement.
  (7) As restated (see Restatement paragraph within Financial Narrative)
  
  <PAGE>
                      CULP, INC. FINANCIAL INFORMATION RELEASE
                              SALES BY SEGMENT/DIVISION
  FOR THE THREE MONTHS AND NINE MONTHS ENDED JANUARY 28, 2001 AND JANUARY 30, 2000
  
  <TABLE>
  <CAPTION>
                               (Amounts in thousands)
  
                                       THREE MONTHS ENDED (UNAUDITED)
                             -----------------------------------------------------
                                        Amounts                       Percent of Total Sales
                                   -------------------                ---------------------
                                 January 28,   January 30,   % Over
   Segment/Division                 2001          2000       (Under)       2001        2000
  ----------------------------   ---------      ---------   -----------  ---------   ---------
  <S>                         <C>               <C>          <C>           <C>         <C>
  Upholstery Fabrics
      Culp Decorative Fabrics $    40,955        49,654       (17.5) %      42.7 %      43.9 %
      Culp Velvets/Prints          28,631        34,050       (15.9) %      29.9 %      30.1 %
      Culp Yarn                     2,711         4,274       (36.6) %       2.8 %       3.8 %
                                 ---------     ---------    -----------  ---------   ---------
                                   72,297        87,978       (17.8) %      75.4 %      77.7 %
  
  Mattress Ticking
      Culp Home Fashions           23,583        25,203        (6.4) %      24.6 %      22.3 %
                                 ---------     ---------    -----------  ---------   ---------
  
                            * $    95,880       113,181       (15.3) %     100.0 %     100.0 %
                                 =========     =========    ===========  =========   =========
  
  
                                              NINE MONTHS ENDED (UNAUDITED)
                                 --------------------------------------------------------
  
                                          Amounts                       Percent of Total Sales
                                      -------------------                ---------------------
                                 January 28,   January 30,   % Over
   Segment/Division                 2001          2000       (Under)       2001        2000
  ----------------------------   ---------     ---------    -----------  ---------   ---------
  Upholstery Fabrics
      Culp Decorative Fabrics $   129,280       157,067       (17.7) %      41.9 %      43.8 %
      Culp Velvets/Prints          90,778       112,042       (19.0) %      29.4 %      31.2 %
      Culp Yarn                    10,164        12,761       (20.4) %       3.3 %       3.6 %
                                 ---------     ---------    -----------  ---------   ---------
                                  230,222       281,870       (18.3) %      74.6 %      78.6 %
  
  Mattress Ticking
      Culp Home Fashions           78,517        76,790         2.2  %      25.4 %      21.4 %
                                 ---------     ---------     -----------  ---------   ---------
  
                            * $   308,739       358,660       (13.9) %     100.0 %     100.0 %
                                 =========     =========     ===========  =========   =========
  
  </TABLE>
  
  * U.S.  sales were $77,360 and $86,359 for the third  quarter of fiscal 2001 and
  fiscal  2000,  respectively;  and  $246,672  and $275,699 for the nine months of
  fiscal 2001 and fiscal 2000, respectively. The percentage decrease in U.S. sales
  was 10.4% for the third quarter and a decrease of 10.5% for the nine months.
  
  <PAGE>
                      CULP, INC. FINANCIAL INFORMATION RELEASE
                       INTERNATIONAL SALES BY GEOGRAPHIC AREA
  FOR THE THREE MONTHS AND NINE MONTHS ENDED JANUARY 28, 2001 AND JANUARY 30, 2000
  <TABLE>
  <CAPTION>
  
                               (Amounts in thousands)
  
                                               THREE MONTHS ENDED (UNAUDITED)
                                --------------------------------------------------------------
                                        Amounts                        Percent of Total Sales
                                ------------------------               -----------------------
                                January 28,   January 30,   % Over
       Geographic Area             2001         2000       (Under)       2001        2000
  --------------------------    ------------  ----------  ----------   ----------   ----------
  <S>                           <C>            <C>        <C>           <C>         <C>
  North America (Excluding USA) $     8,226       8,476    (2.9)%        44.4 %      31.6 %
  Europe                              1,669       4,698   (64.5)%         9.0 %      17.5 %
  Middle East                         3,924       8,140   (51.8)%        21.2 %      30.3 %
  Far East & Asia                     4,277       4,422    (3.3)%        23.1 %      16.5 %
  South America                         147         523   (71.9)%         0.8 %       1.9 %
  All other areas                       277         563   (50.8)%         1.5 %       2.1 %
                                ------------  ----------  ----------   ----------   ----------
  
                            $        18,520      26,822   (31.0)%       100.0 %     100.0 %
                                ============  ==========  ==========   ==========   ==========
  
  
                                                NINE MONTHS ENDED (UNAUDITED)
                                --------------------------------------------------------------
  
                                        Amounts                        Percent of Total Sales
                                ------------------------               -----------------------
                                January 28,   January 30,  % Over
         Geographic Area             2001         2000     (Under)        2001        2000
  --------------------------    ------------  ----------  ----------   ----------   ----------
  North America (Excluding USA) $    26,177      26,064     0.4 %        42.2 %      31.4 %
  Europe                              4,928      13,696   (64.0)%         7.9 %      16.5 %
  Middle East                        14,456      24,092   (40.0)%        23.3 %      29.0 %
  Far East & Asia                    13,103      14,088    (7.0)%        21.1 %      17.0 %
  South America                         732       1,773   (58.7)%         1.2 %       2.1 %
  All other areas                     2,671       3,248   (17.8)%         4.3 %       3.9 %
                                ------------  ----------  ----------   ----------   ----------
  
                            $        62,067      82,961   (25.2)%       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 third quarter represented 19.3%
  and 23.7%  for 2001 and 2000,  respectively.  Year-to-date  international  sales
  represented 20.1% and 23.1% of total sales for 2001 and 2000, respectively.
  
  <PAGE>
  
                                     Culp, Inc.
                     SALES BY SEGMENT/DIVISION - TREND ANALYSIS
                                1999 vs 2000 vs 2001
  <TABLE>
  <CAPTION>
  
                               (Amounts in thousands)
  
                                              Fiscal 1999                                Fiscal 2000
                                ----------------------------------------- ------------------------------------------
       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    51,445  59,573  50,520   60,520 222,058   50,516   56,897  49,654   56,130 213,197
      Culp Velvets/Prints        29,994  38,728  34,949   40,402 144,073   36,209   41,783  34,050   39,501 151,543
      Culp Yarn                   6,596   6,367   4,088    4,462  21,513    4,129    4,358   4,274    4,809  17,570
                                ----------------------------------------- ------------------------------------------
                                 88,035 104,668  89,557  105,384 387,644   90,854  103,038  87,978  100,440 382,310
  
  Mattress Ticking
      Culp Home Fashions         22,632  23,491  22,536   26,781  95,440   25,083   26,504  25,203   28,979 105,769
                                ----------------------------------------- ------------------------------------------
  
                                110,667 128,159 112,093  132,165 483,084  115,937  129,542 113,181  129,419 488,079
                                ========================================= ==========================================
  
  
                     Percent increase(decrease) from prior year:
  
       Segment/Division
  ----------------------------
  Upholstery Fabrics
      Culp Decorative Fabrics      29.2     4.9    (5.4)      0.6     5.7    (1.8)    (4.5)   (1.7)    (7.3)   (4.0)
      Culp Velvets/Prints         (21.9)  (11.8)  (20.6)    (10.3)  (15.9)   20.7      7.9    (2.6)    (2.2)    5.2
      Culp Yarn                   100.0   100.0   437.2     (37.3)  173.1   (37.4)   (31.6)    4.5      7.8   (18.3)
                                 ----------------------------------------- ------------------------------------------
                                   12.6     3.9    (8.8)     (6.2)   (0.5)    3.2     (1.6)   (1.8)    (4.7)   (1.4)
  
  Mattress Ticking
      Culp Home Fashions            6.3     5.7    11.2      13.9     9.3    10.8     12.8    11.8      8.2    10.8
                                 ----------------------------------------- ------------------------------------------
  
                                   11.2     4.3    (5.4)     (2.7)    1.3     4.8      1.1     1.0     (2.1)    1.0
                                 ========================================= ==========================================
  
      Overall Growth Rate
  
  Internal (without acquisitions)  (4.6)   (0.9)   (8.5)     (2.7)   (4.1)    4.8      1.1     1.0     (2.1)    1.0
  External                         15.8     5.2     3.1         -     5.4       -        -       -        -       -
                                 ----------------------------------------- ------------------------------------------
  
                                   11.2     4.3    (5.4)     (2.7)    1.3     4.8      1.1     1.0     (2.1)    1.0
                                 ========================================= ==========================================
  </TABLE>
  <PAGE>
  
  
                                     Culp, Inc.
                     SALES BY SEGMENT/DIVISION - TREND ANALYSIS
                                1999 vs 2000 vs 2001
  <TABLE>
  <CAPTION>
  
                               (Amounts in thousands)
  
                                                   Fiscal 2001
                                 -------------------------------------------------
       Segment/Division             Q1         Q2        Q3      Q4      TOTAL
  ----------------------------
  <S>                              <C>        <C>      <C>               <C>
  Upholstery Fabrics
      Culp Decorative Fabrics       41,533     46,792   40,955            129,280
      Culp Velvets/Prints           30,074     32,073   28,631             90,778
      Culp Yarn                      3,319      4,134    2,711             10,164
                                 -------------------------------------------------
                                    74,926     82,999   72,297            230,222
  
  Mattress Ticking
      Culp Home Fashions            26,952     27,982   23,583             78,517
                                   -----------------------------------------------
  
                                   101,878    110,981   95,880            308,739
                                 =================================================
  
  
                    Percent increase(decrease) from prior year:
  
       Segment/Division
  ----------------------------
  Upholstery Fabrics
      Culp Decorative Fabrics        (17.8)     (17.8)   (17.5)             (17.7)
      Culp Velvets/Prints            (16.9)     (23.2)   (15.9)             (19.0)
      Culp Yarn                      (19.6)      (5.1)   (36.6)             (20.4)
                                 -------------------------------------------------
                                     (17.5)     (19.4)   (17.8)             (18.3)
  
  Mattress Ticking
      Culp Home Fashions               7.5        5.6     (6.4)               2.2
                                 -------------------------------------------------
  
                                     (12.1)     (14.3)   (15.3)             (13.9)
                                 =================================================
  
      Overall Growth Rate
  
  Internal (without acquisitions)    (12.1)     (14.3)   (15.3)             (13.9)
  External                               -          -        -                  -
                                 =================================================
                                     (12.1)     (14.3)   (15.3)             (13.9)
                                 =================================================
  </TABLE>
  <PAGE>
  
  
                      CULP, INC. FINANCIAL INFORMATION RELEASE
                                 FINANCIAL NARRATIVE
      for the three and nine months ended January 28, 2001 and January 30, 2000
  
  
  
  INCOME STATEMENT COMMENTS
  
       GENERAL  - For the  third  quarter,  net  sales  decreased  15.3%  to $95.9
  million; and the company reported a net loss of $5.5 million, or $0.49 per share
  diluted (based on 11,211,000  average shares  outstanding)  versus net income of
  $1.4 million,  or $0.13 per share diluted  (based on 11,389,000  average  shares
  outstanding).  For the first nine  months of fiscal  2001,  net sales  decreased
  13.9% to $308.7 million, and the company reported a net loss of $6.9 million, or
  $0.61 per share diluted (based on 11,209,000 average shares outstanding), versus
  net income of $6.2  million,  or $0.52 per share  diluted  (based on  11,816,000
  average shares  outstanding),  a year ago. The results for the third quarter and
  first nine months of fiscal 2001 included  special charges totaling $3.2 million
  before taxes for restructuring actions and inventory write-downs.
  
       The company's  long-term,  strategic plan encompasses  several  competitive
  initiatives:
  
       Broad Product  Offering - continuing to market one of the broadest  product
  lines  in  upholstery  fabrics  and  mattress  ticking.  Through  its  extensive
  manufacturing capabilities,  the company competes in 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.  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.   One  customer   accounted  for
  approximately  12% of net sales during the third quarter of fiscal 2001. 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.
  
       RESTRUCTURING  ACTIONS - During the third quarter,  the company initiated a
  restructuring plan intended to lower costs, increase efficiency and position the
  company to operate profitably within the current  environment of reduced demand.
  The plan  involves the  consolidation  of certain  manufacturing  capacity,  the
  closure of some  facilities and an extensive  reduction in selling,  general and
  administrative   expenses.   The  company  also  recognized   certain  inventory
  write-downs as part of this initiative. The total charge from the restructuring,
  cost reduction and inventory  write-down  initiatives is expected to exceed $6.0
  million,  about half of which  should  represent  non-cash  items.  The  company
  recognized $3.2 million of restructuring  charges and special costs in the third
  quarter,  and most of the balance is expected to be reflected in results for the
  fourth fiscal period.  The company expects to realize annualized cost reductions
  of at least $12 million when these steps are fully implemented.
  
       NET SALES -  Compared  with the third  quarter of fiscal  2000,  upholstery
  fabric  sales  decreased  17.8% to $72.3  million  and  mattress  ticking  sales
  decreased 6.4% to $23.6 million (See Sales by Segment/Division  schedule on Page
  5 and Sales by Segment/Division - Trend Analysis on Page 7). International sales
  were down 31.0% for the quarter and 25.2% for the first nine months.
  
       The company had previously  announced that it expected to report a net loss
  for the third quarter,  excluding special charges.  Key factors  influencing the
  year-to-year  comparisons were continued  weakness in consumer  spending on home
  furnishings, especially in the promotional price category, and an adverse impact
  on exports from the strength in the U.S.  dollar  compared  with a year ago. The
  slowdown  in  industry-wide  demand  also led to a decline in sales at Culp Home
  Fashions  (primarily  mattress  ticking) for the third quarter.  Culp's sales of
  mattress ticking were up for the first nine months.
  
       The fourth fiscal  quarter of the year is  historically a strong period for
  the company's  sales.  Based on current  trends,  however,  the company does not
  expect to report a profit for fiscal 2001 as a whole.
  
       GROSS PROFIT - Gross profit  declined  46.8% for the third quarter versus a
  year ago and  decreased  as a percentage  of net sales from 16.3% to 10.3%.  The
  decline was due  principally  to lower sales  volume for the period which led to
  unfavorable cost variances in the company's  upholstery fabrics  operation.  The
  company has taken steps to lower expenses by  consolidating  certain  operations
  and reducing  personnel,  but these  actions were not  sufficient  to offset the
  impact of the significantly lower sales.
  
       SG&A  EXPENSES  - SG&A  expenses  for  the  third  quarter  increased  as a
  percentage  of sales from 12.3% to 13.0%.  The dollar  amount of these  expenses
  declined  10.5%  from a year ago,  reflecting  the  company's  actions to reduce
  expenses, but the  lower-than-expected  sales caused the increase in these costs
  as a percentage of sales.
  
       INTEREST  EXPENSE - Interest  expense of $2.2 million for the third quarter
  was down  slightly  from $2.4  million  in the prior  year due to lower  average
  borrowings.
  
       OTHER EXPENSE (INCOME),  NET - Other expense (income) for the third quarter
  totaled  $811,000  compared  with  $229,000 in the prior year.  The  increase is
  principally  due to lower  investment  income on assets related to the company's
  nonqualified deferred compensation plan.
  
       INCOME TAXES - The  effective tax rate for the nine months was 33.0% versus
  32.3% in the year-earlier period.
  
       EBITDA - Due  principally to the lower earnings for the period,  EBITDA for
  the third quarter was $(648,000) compared with $9.7 million in the prior year.
  
  
  BALANCE SHEET COMMENTS
  
       WORKING  CAPITAL - Accounts  receivable  as of January 28,  2001  decreased
  17.2% from the  year-earlier  level,  due principally to the lower sales for the
  period. Days sales outstanding  declined to 48 days at January 28, 2001 compared
  with 49 a year ago. The aging of accounts  receivable was 94.4% current and less
  than 30 days past due versus 97.1% a year ago.  Inventories  at the close of the
  third quarter  decreased  17.0% from a year ago.  Inventory  turns for the third
  quarter  were 4.9  versus 4.8 for the  year-earlier  period.  Operating  working
  capital (comprised of accounts  receivable,  inventory and accounts payable) was
  $94.5 million at January 28, 2001, down from $111.3 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  2001,  which was budgeted to be
  approximately  $16  million at the start of the year,  is now  expected to total
  $8.0 million.  Capital  spending for fiscal 2002 is budgeted to be approximately
  $4.0 million. Depreciation for fiscal 2001 is estimated to be $19.5 million.
  
       LONG-TERM DEBT - The company's  funded  debt-to-capital  ratio was 50.0% at
  January 28, 2001 compared with 52.0% a year ago.  Funded debt was $121.4 million
  at January 28, 2001 compared with $137.7 million a year ago.  Funded debt equals
  long-term debt, including current maturities, less restricted investments, which
  represent  unspent  IRB funds.  The  company  has  completed  an amended  credit
  facility  which  includes  terms that restrict the payment of cash  dividends at
  this  time,  limit  capital  expenditures,  increase  the  interest  rate on the
  revolver  from LIBOR plus 1.60% to LIBOR plus 4.00% and  increase  the letter of
  credit fees on the IRBs from 1.10% to 4.00%.  The company was in compliance with
  all covenants of the amended credit facility as of January 28, 2001. The amended
  credit  facility  lowered the amount of funds  available under the facility from
  $88 million to $25  million.  The company had  outstanding  borrowings  of $10.0
  million under the facility at the end of the third quarter.
  
       RESTATEMENT  - During  the  third  quarter  of  fiscal  2001,  the  company
  terminated the nonqualified  deferred  compensation  plan covering  officers and
  certain other  associates.  As a result,  the company sold the assets related to
  the nonqualified  plan in order to pay the  participants.  The proceeds received
  from selling  those assets  resulted in  recognizing  gains from fiscal 1999 and
  1998 totaling  approximately $1.1 million. As a result, the January 30, 2000 and
  April 30, 2000 balance sheets were restated to properly reflect other assets and
  equity.
  
  
  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.  No repurchases were made during the first nine months of fiscal
  2001,  and  under the terms of the  amended  credit  facility,  the  company  is
  currently restricted from any stock repurchases.
  
  
  
  <PAGE>
metadata_documents: [{"type": "8-K", "sequence": "1", "filename": "0001.txt", "description": "CULP, INC. 8-K", "secsgml_size_bytes": 56621}]
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": "1550548"}, "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) February 20, 2001
  
                                     CULP, INC.
  
              (Exact name of registrant as specified in its charter)
  
          North Carolina                  0-12781                56-1001967
  
   (State or other jurisdiction    (Commission File No.)       (IRS Employer
         of incorporation)                                  Identification No.)
  
                               101 South Main Street
                         High Point, North Carolina  27260
                     (Address of principal executive offices)
                                  (336) 889-5161
               (Registrant's telephone number, including area code)
  
           (Former name or former address, if changed since last report)
  Item 5. Other Events
  
  See  attached  Press  Release (3 pages) and  Financial  Information  Release (10
  pages),  both dated February 20, 2001,  related to the fiscal 2001 third quarter
  ended January 28, 2001.
  
  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:   February 20, 2001
  FOR IMMEDIATE RELEASE
  
                   CULP REPORTS THIRD QUARTER RESULTS
                     INCLUDING RESTRUCTURING CHARGE
                         ----------------------
      SAVINGS OF $12 MILLION EXPECTED FROM ACTIONS TO REDUCE COSTS
  
  HIGH POINT,  N. C. (Feb.  20, 2001) -- As  anticipated,  Culp,  Inc.
  (NYSE:  CFI)  today  reported  a loss for its third  fiscal  quarter
  that  reflects the  widespread  contraction  in demand that the home
  furnishings  industry  has  encountered  as well as charges from the
  Company's   announced   actions   to  reduce   costs  and   increase
  efficiency.
  
        For the three months ended  January 28,  2001,  Culp  reported
  net  sales of $95.9  million  compared  with  $113.2  million a year
  ago.  Including  previously   announced   restructuring  costs,  the
  Company  reported  a net loss for the  quarter of $5.5  million,  or
  $0.49 per share  diluted,  compared with net income of $1.4 million,
  or $0.13 per share diluted, in the year-earlier period.
  
        Net sales for the first  nine  months of fiscal  2001  totaled
  $308.7  million  compared with  $358.7-million  in the  year-earlier
  period.  Including  previously  announced  restructuring  costs, the
  Company  reported  a net  loss for the  first  nine  months  of $6.9
  million,  or $0.61 per share  diluted,  compared  with net income of
  $6.2  million,  or $0.52  per  share  diluted,  in the  year-earlier
  period.
  
        Robert G. Culp, III, chief executive officer,  commented, "Our
  results for the third  fiscal  quarter  reflect the  contraction  in
  demand  that we had  identified  at mid  year  and  which  we  again
  highlighted   publicly   last  month.   We  have  found   widespread
  softness  in  orders  for  upholstery  fabrics  for  U.S.  furniture
  sales,  especially  in the  promotional  categories  of the  market.
  This  appears to be an  industry-wide  pattern  that became  evident
  with the  well-publicized  deceleration  in  spending  by  consumers
  that  began  during  the  fourth  calendar   quarter  of  2000.  The
  weakness that we have been  experiencing in  international  sales is
  also  persisting.  We have  obtained  little  relief in terms of the
  high relative value of the U.S.  dollar against  foreign  currencies
  compared  with a  year  ago.  Our  sales  of  fabrics  to  customers
  outside the United  States  during the third  quarter  were down 31%
  from the year-earlier period.
  
        "We are  continuing our  fundamental  mission of marketing new
  fabric  patterns  and  textures  that  help our  customers  meet the
  needs  of  consumers.   At  the  same  time,   we  understand   that
  execution  of  this  strategy  demands   stringent   containment  of
  expenses  during  the  difficult  period in which we are  operating.
  The  restructuring  plan we announced  last month is well  underway.
  As we began  executing  the initial  phase of this program to reduce
  costs,  we recognized  that the severity of the current  downturn in
  demand  necessitated a more aggressive  effort.  We have accordingly
  decided to consolidate  additional  capacity in the Culp  Decorative
  Fabrics  division  and have taken steps that will lower our selling,
  general  and  administrative  expenses   significantly.   The  total
  charge  from  the   restructuring,   cost  reduction  and  inventory
  adjustment  initiatives  is expected to exceed $6.0  million,  about
  half of which should  represent  non-cash  items. We recognized $3.2
  million of  restructuring  charges  and  special  costs in the third
  quarter,  and most of the balance  will be  reflected in our results
  for the fourth fiscal  period.  Our target is to achieve  annualized
  cost  reductions  of at least $12 million when these steps are fully
  implemented."
  
        Culp added,  "We are continuing to manage our balance sheet to
  maximize  the  return  on  our   financial   assets  and   generated
  sufficient  cash from  operations  through  the first nine months to
  reduce debt and payables  related to capital  expenditures  by $21.8
  million.  We  recently  amended  our  credit  facility  and  were in
  compliance  with  the  revised  terms as of the  close of the  third
  quarter.  As a  result  of the  amendments  to  that  facility,  the
  Company is  restricted  from  paying  cash  dividends  at this time.
  Although  we respect  Culp's  heritage  of paying a  quarterly  cash
  dividend for 18  consecutive  years,  we  recognize  the priority of
  conserving  cash to enhance  our  financial  liquidity  during  this
  challenging period.
  
        "We  appreciate  the  response  of our  organization  to these
  difficult,  but  necessary  actions.  Culp  has  developed  a strong
  culture of  teamwork  over the years,  and the  decisions  involving
  personnel  reductions  have been  especially  hard.  Although we are
  starting  to  benefit  from the steps to lower  costs,  we expect to
  report a loss for fiscal  2001 as a whole  based on current  trends.
  We are confident  about the basic value we add to the  manufacturers
  of  upholstered  furniture  and bedding and are  optimistic  about a
  longer-term recovery in our financial performance."
  
        Culp,  Inc.  is  one  of  the  world's  largest  marketers  of
  upholstery  fabrics  for  furniture  and is a  leading  marketer  of
  mattress  ticking  for  bedding.  The  Company's  fabrics  are  used
  principally  in  the   production  of  residential   and  commercial
  furniture and bedding products.
  
        This   release   contains   statements   that  may  be  deemed
  "forward-looking  statements"  within  the  meaning  of the  federal
  securities  laws,   including  the  Private  Securities   Litigation
  Reform  Act of 1995.  Such  statements  are  inherently  subject  to
  risks   and    uncertainties.    Forward-looking    statements   are
  statements that include  projections,  expectations or beliefs about
  future  events  or  results  or  otherwise  are  not  statements  of
  historical   fact.  Such  statements  are  often   characterized  by
  qualifying  words such as "expect,"  "believe,"  "estimate,"  "plan"
  and "project" and their derivatives. Factors  that  could  influence
  the  matters   discussed  in  such statements include  the  level of
  housing starts and sales of existing  homes,   consumer  confidence,
  trends  in  disposable  income  and  general  economic   conditions.
  Decreases  in  these  economic  indicators  could  have  a  negative
  effect on the Company's  business and prospects. Likewise, increases
  in interest rates, particularly home mortgage  rates,  and increases
  in consumer debt or the general rate of inflation,  could affect the
  Company  adversely.  Because  of  the  significant percentage of the
  Company's sales derived from international shipments,  strengthening
  of the U.S. dollar against other currencies could make the Company's
  products less  competitive on the basis of price in markets  outside
  the   United   States.   Additionally,    economic   and   political
  instability in  international  areas could affect the demand for the
  Company's products.
  
                               CULP, INC.
                     Condensed Financial Highlights
                               (Unaudited)
  
                                               Three Months Ended
                                          --------------------------
                                          January 28,    January 30,
                                             2001           2000
                                         ------------   ------------
  Net sales                              $95,880,000    $113,181,000
  Net income (loss)                      $(5,470,000)   $  1,432,000
  Net income (loss) per share:
    Basic                                $     (0.49)   $       0.13
    Diluted                              $     (0.49)   $       0.13
  Average shares outstanding:
    Basic                                 11,211,000      11,296,000
    Diluted                               11,211,000      11,389,000
  
                                               Nine Months Ended
                                         ---------------------------
                                          January 28,    January 30,
                                             2001           2000
                                         ------------   ------------
  Net sales                              $308,739,000   $358,660,000
  Net income (loss)                      $(6,884,000)   $  6,189,000
  Net income (loss) per share:
    Basic                                $     (0.61)   $       0.53
    Diluted                              $     (0.61)   $       0.52
  Average shares outstanding:
    Basic                                 11,209,000      11,703,000
    Diluted                               11,209,000      11,816,000
  
                                   -END-
  CULP, INC. FINANCIAL INFORMATION RELEASE
                      CONSOLIDATED STATEMENTS OF INCOME (LOSS)
  FOR THE THREE MONTHS AND NINE MONTHS ENDED JANUARY 28, 2001 AND JANUARY 30, 2000
  
                  (Amounts in Thousands, Except for Per Share Data)
  THREE MONTHS ENDED (UNAUDITED)
                                            -------------------------------------------------------------------------
                                                    Amounts                                    Percent of Sales
                                           ---------------------------                     --------------------------
                                           January 28,   January 30,      % Over
                                               2001          2000         (Under)            2001           2000
                                           ------------- -------------  ------------       ------------  ------------
  Net sales                             $        95,880       113,181      (15.3) %            100.0 %        100.0 %
  Cost of sales                                  86,047        94,712       (9.1) %             89.7 %         83.7 %
                                           ------------- -------------  ------------       ------------  ------------
          Gross profit                            9,833        18,469      (46.8) %             10.3 %         16.3 %
  
  Selling, general and
    administrative expenses                      12,480        13,949      (10.5) %             13.0 %         12.3 %
  Restructuring expense                           2,504             0      100.0  %              2.6 %          0.0 %
                                           ------------- -------------  ------------       ------------  ------------
          Income (loss) from operations          (5,151)        4,520     (214.0) %             (5.4)%          4.0 %
  
  Interest expense                                2,222         2,366       (6.1) %              2.3 %          2.1 %
  Interest income                                   (18)           (8)     125.0  %             (0.0)%         (0.0)%
  Other expense (income), net                       811           229      254.1  %              0.8 %          0.2 %
                                           ------------- -------------  ------------       ------------  ------------
          Income (loss) before income taxes      (8,166)        1,933     (522.5) %             (8.5)%          1.7 %
  
  Income taxes  *                                (2,696)          501     (638.1) %             33.0 %         25.9 %
                                           ------------- -------------  ------------       ------------  ------------
  
          Net income (loss)             $        (5,470)        1,432     (482.0) %             (5.7)%          1.3 %
                                           ============= =============  ============       ============  ============
  
  Net income (loss) per share                    ($0.49)        $0.13     (476.9) %
  Net income (loss) per share, assuming dilution ($0.49)        $0.13     (476.9) %
  Dividends per share                            $0.035        $0.035        0.0  %
  Average shares outstanding                     11,211        11,296       (0.8) %
  Average shares outstanding, assuming dilution  11,211        11,389       (1.6) %
  
                                                                       NINE MONTHS ENDED (UNAUDITED)
                                           -------------------------------------------------------------------------
                                                    Amounts                                    Percent of Sales
                                           ---------------------------                     --------------------------
                                           January 28,   January 30,      % Over
                                               2001          2000         (Under)            2001           2000
                                           ------------- -------------  ------------       ------------  ------------
  
  Net sales                             $       308,739       358,660      (13.9) %            100.0 %        100.0 %
  Cost of sales                                 267,845       296,072       (9.5) %             86.8 %         82.5 %
                                           ------------- -------------  ------------       ------------  ------------
          Gross profit                           4O,894        62,588      (34.7) %             13.2 %         17.5 %
  
  Selling, general and
    administrative expenses                      39,749        45,022      (11.7) %             12.9 %         12.6 %
  Restructuring expense                           2,504             0      100.0  %              0.8 %          0.0 %
                                           ------------- -------------  ------------       ------------  ------------
          Income (loss) from operations          (1,359)       17,566     (107.7) %             (0.4)%          4.9 %
  
  Interest expense                                6,830         7,266       (6.0) %              2.2 %          2.0 %
  Interest income                                   (40)          (41)      (2.4) %             (0.0)%         (0.0)%
  Other expense (income), net                     2,127         1,200       77.3  %              0.7 %          0.3 %
                                           ------------- -------------  ------------       ------------  ------------
          Income (loss) before income taxes     (10,276)        9,141     (212.4) %             (3.3)%          2.5 %
  
  Income taxes  *                                (3,392)        2,952     (214.9) %             33.0 %         32.3 %
                                           ------------- -------------  ------------       ------------  ------------
  
          Net income (loss)             $        (6,884)        6,189     (211.2) %             (2.2)%          1.7 %
                                           ============= =============  ============       ============  ============
  
  Net income (loss) per share                    ($0.61)        $0.53     (215.1) %
  Net income (loss) per share, assuming dilution ($0.61)        $0.52     (217.3) %
  Dividends per share                            $0.105        $0.105        0.0  %
  Average shares outstanding                     11,209        11,703       (4.2) %
  Average shares outstanding, assuming dilution  11,209        11,816       (5.1) %
  * Percent of sales column is calculated as a % of income (loss)
  before income taxes.
  CULP, INC. FINANCIAL INFORMATION RELEASE
                             CONSOLIDATED BALANCE SHEETS
                JANUARY 28, 2001, JANUARY 30, 2000 AND APRIL 30, 2000
                                      Unaudited
                               (Amounts in Thousands)
  Amounts                          Increase
                                               -----------------------------------           (Decrease)               (1)(2)
                                                  January 28,      (2)January 30,    -----------------------------    April 30,
                                                      2001              2000           Dollars        Percent          2000
                                               -------------------  --------------  --------------    -----------   ----------
  Current assets
         Cash and cash investments            $               292             568           (276)      (48.6) %         1,007
         Accounts receivable                               54,474          65,788        (11,314)      (17.2) %        75,223
         Inventories                                       67,156          80,874        (13,718)      (17.0) %        74,471
         Other current assets                              13,706           9,016          4,690        52.0  %        10,349
                                               -------------------  --------------  --------------    -----------   ----------
                   Total current assets                   135,628         156,246        (20,618)      (13.2) %       161,050
  
  Restricted investments                                        0           1,047         (1,047)     (100.0) %             0
  Property, plant & equipment, net                        116,207         123,303         (7,096)       (5.8) %       126,407
  Goodwill                                                 48,827          50,222         (1,395)       (2.8) %        49,873
  Other assets                                              2,256           6,490         (4,234)      (65.2) %         6,650
                                               -------------------  --------------  --------------    -----------   ----------
  
                   Total assets               $           302,918         337,308        (34,390)      (10.2) %       343,980
                                               ===================  ==============  ==============    ===========   ==========
  
  Current liabilities
         Current maturities of long-term debt $             2,159           1,678            481        28.7  %         1,678
         Accounts payable                                  27,084          35,347         (8,263)      (23.4) %        37,287
         Accrued expenses                                  15,417          20,878         (5,461)      (26.2) %        22,108
         Income taxes payable                                   0             903           (903)     (100.0) %             0
                                               -------------------  --------------  --------------    -----------   ----------
                   Total current liabilities               44,660          58,806        (14,146)      (24.1) %        61,073
  
  Long-term debt                                          119,213         137,052        (17,839)      (13.0) %       135,808
  
  Deferred income taxes                                    17,459          14,583          2,876        19.7  %        17,459
                                               -------------------  --------------  --------------    -----------   ----------
                   Total liabilities                      181,332         210,441        (29,109)      (13.8) %       214,340
  
  Shareholders' equity                                    121,586         126,867         (5,281)       (4.2) %       129,640
                                               -------------------  --------------  --------------    -----------   ----------
  
                   Total liabilities and
                   shareholders' equity      $            302,918         337,308        (34,390)      (10.2) %       343,980
                                               ===================  ==============  ==============    ===========   ==========
  
  Shares outstanding                                       11,211          11,216             (5)       (0.0) %        11,209
                                               ===================  ==============  ==============    ===========   ==========
  (1) Derived from audited financial statements.
  (2) As restated (see Restatement paragraph within Financial Narrative)
  CULP, INC. FINANCIAL
                                 INFORMATION RELEASE
                        CONSOLIDATED STATEMENTS OF CASH FLOWS
           FOR THE NINE MONTHS ENDED JANUARY 28, 2001 AND JANUARY 30, 2000
                                      Unaudited
                               (Amounts in Thousands)
  NINE MONTHS ENDED
                                                                    -----------------------------
                                                                              Amounts
                                                                    -----------------------------
                                                                     January 28,    January 30,
                                                                        2001            2000
                                                                    --------------  -------------
  Cash flows from operating activities:
      Net income (loss)                                            $      (6,884)         6,189
         Adjustments to reconcile net income (loss) to net
           cash provided by operating activities:
             Depreciation                                                  14,781         14,481
             Amortization of intangible assets                              1,196          1,197
             Amortization of deferred compensation                            303            180
             Restructuring expense                                          2,504              0
             Changes in assets and liabilities:
                 Accounts receivable                                       20,749          4,715
                 Inventories                                                7,315        (13,804)
                 Other current assets                                      (3,357)           617
                 Other assets                                                 226           (560)
                 Accounts payable                                          (4,536)         4,619
                 Accrued expenses                                          (8,076)          (328)
                 Income taxes payable                                           0            903
                                                                    --------------  -------------
                    Net cash provided by operating activities              24,221         18,209
                                                                    --------------  -------------
  Cash flows from investing activities:
       Capital expenditures                                                (6,532)       (14,474)
       Purchases of restricted investments                                      0            (35)
       Sale of investments related to deferred compensation plan            4,547              0
       Sale of restricted investments                                           0          2,328
                                                                    --------------  -------------
                    Net cash used in investing activities                  (1,985)       (12,181)
                                                                    --------------  -------------
  Cash flows from financing activities:
       Proceeds from issuance of long-term debt                               564          8,510
       Principal payments on long-term debt                               (16,678)       (11,770)
       Change in accounts payable-capital expenditures                     (5,667)         5,041
       Dividends paid                                                      (1,177)        (1,218)
       Payments to acquire common stock                                         0         (6,552)
       Proceeds from common stock issued                                        7             20
                                                                    --------------  -------------
                    Net cash used in financing activities                 (22,951)        (5,969)
                                                                    --------------  -------------
  
  Increase (decrease) in cash and cash investments                           (715)            59
  
  Cash and cash investments at beginning of period                          1,007            509
                                                                    --------------  -------------
  
  Cash and cash investments at end of period                       $          292            568
                                                                    ==============  =============
  CULP, INC. FINANCIAL INFORMATION RELEASE
                                 FINANCIAL ANALYSIS
                                  JANUARY 28, 2001
  FISCAL 00                      FISCAL 01
                                            ---------     --------------------------------------------   -----------
                                              Q3 (7)          Q1 (7)      Q2 (7)      Q3         Q4         LTM (5)
                                            ---------     --------------------------------------------   -----------
  INVENTORIES
        Inventory turns                          4.8             4.7        5.1        4.9
  
  RECEIVABLES
        Days sales in receivables                 49              49         52         48
        Percent current & less than 30
          days past due                        97.1%           91.5%      94.7%      94.4%
  
  WORKING CAPITAL
        Current ratio                            2.7             3.2        2.7        3.0
        Working capital turnover (4)             4.5             4.3        4.2        4.1
        Operating working capital (4)       $111,315        $108,509   $106,607    $94,546
  
  PROPERTY, PLANT & EQUIPMENT
        Depreciation rate                       8.2%            8.0%       7.9%       7.5%
        Percent property, plant &
          equipment are depreciated            49.4%           51.1%      52.6%      53.8%
        Capital expenditures                 $22,559 (1)      $2,289     $1,370     $2,873
  
  PROFITABILITY
        Return on average total capital         4.8%          (0.3%)       2.7%     (6.4%)                     0.9%
        Return on average equity                4.5%          (5.5%)       1.1%    (17.6%)                    (2.9%)
        Net income (loss) per share            $0.13         ($0.16)      $0.03    ($0.49)                   ($0.33)
        Net income (loss) per share (diluted)  $0.13         ($0.16)      $0.03    ($0.49)                   ($0.33)
  
  LEVERAGE (3)
        Total liabilities/equity              165.9%          156.1%     154.6%     149.1%
        Funded debt/equity                    108.5%          107.3%      99.5%      99.8%
        Funded debt/capital employed           52.0%           51.8%      49.9%      50.0%
        Funded debt                         $137,683        $136,828   $126,757   $121,372
        Funded debt/EBITDA (LTM) (6)            3.13            3.44       3.57       4.28
        EBITDA/Interest expense, net (LTM)      4.6              4.2        3.9        2.8
  
  OTHER
        Book value per share                  $11.31          $11.37     $11.37     $10.85
        Employees at quarter end               3,938           3,722      3,623      3,486
        Sales per employee (annualized)     $115,000        $108,000   $121,000   $108,000
        Capital employed (3)                $264,550        $264,320   $254,198   $242,958
        Effective income tax rate              25.9%           34.0%      37.9%      33.0%
        EBITDA (2)                            $9,715          $5,177     $8,265     ($648)                  $25,042
        EBITDA/net sales                        8.6%            5.1%       7.4%     (0.7%)                     5.7%
  (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, pro forma amounts for acquisitions and
      certain cash and non-cash charges, as defined by the company's credit
      agreement.
  (7) As restated (see Restatement paragraph within Financial Narrative)
  CULP, INC. FINANCIAL INFORMATION RELEASE
                              SALES BY SEGMENT/DIVISION
  FOR THE THREE MONTHS AND NINE MONTHS ENDED JANUARY 28, 2001 AND JANUARY 30, 2000
  (Amounts in thousands)
  
                                       THREE MONTHS ENDED (UNAUDITED)
                             -----------------------------------------------------
                                        Amounts                       Percent of Total Sales
                                   -------------------                ---------------------
                                 January 28,   January 30,   % Over
   Segment/Division                 2001          2000       (Under)       2001        2000
  ----------------------------   ---------      ---------   -----------  ---------   ---------
  Upholstery Fabrics
      Culp Decorative Fabrics $    40,955        49,654       (17.5) %      42.7 %      43.9 %
      Culp Velvets/Prints          28,631        34,050       (15.9) %      29.9 %      30.1 %
      Culp Yarn                     2,711         4,274       (36.6) %       2.8 %       3.8 %
                                 ---------     ---------    -----------  ---------   ---------
                                   72,297        87,978       (17.8) %      75.4 %      77.7 %
  
  Mattress Ticking
      Culp Home Fashions           23,583        25,203        (6.4) %      24.6 %      22.3 %
                                 ---------     ---------    -----------  ---------   ---------
  
                            * $    95,880       113,181       (15.3) %     100.0 %     100.0 %
                                 =========     =========    ===========  =========   =========
  
                                              NINE MONTHS ENDED (UNAUDITED)
                                 --------------------------------------------------------
  
                                          Amounts                       Percent of Total Sales
                                      -------------------                ---------------------
                                 January 28,   January 30,   % Over
   Segment/Division                 2001          2000       (Under)       2001        2000
  ----------------------------   ---------     ---------    -----------  ---------   ---------
  Upholstery Fabrics
      Culp Decorative Fabrics $   129,280       157,067       (17.7) %      41.9 %      43.8 %
      Culp Velvets/Prints          90,778       112,042       (19.0) %      29.4 %      31.2 %
      Culp Yarn                    10,164        12,761       (20.4) %       3.3 %       3.6 %
                                 ---------     ---------    -----------  ---------   ---------
                                  230,222       281,870       (18.3) %      74.6 %      78.6 %
  
  Mattress Ticking
      Culp Home Fashions           78,517        76,790         2.2  %      25.4 %      21.4 %
                                 ---------     ---------     -----------  ---------   ---------
  
                            * $   308,739       358,660       (13.9) %     100.0 %     100.0 %
                                 =========     =========     ===========  =========   =========
  * U.S.  sales were $77,360 and $86,359 for the third  quarter of fiscal 2001 and
  fiscal  2000,  respectively;  and  $246,672  and $275,699 for the nine months of
  fiscal 2001 and fiscal 2000, respectively. The percentage decrease in U.S. sales
  was 10.4% for the third quarter and a decrease of 10.5% for the nine months.
  CULP, INC. FINANCIAL INFORMATION RELEASE
                       INTERNATIONAL SALES BY GEOGRAPHIC AREA
  FOR THE THREE MONTHS AND NINE MONTHS ENDED JANUARY 28, 2001 AND JANUARY 30, 2000
  (Amounts in thousands)
  
                                               THREE MONTHS ENDED (UNAUDITED)
                                --------------------------------------------------------------
                                        Amounts                        Percent of Total Sales
                                ------------------------               -----------------------
                                January 28,   January 30,   % Over
       Geographic Area             2001         2000       (Under)       2001        2000
  --------------------------    ------------  ----------  ----------   ----------   ----------
  North America (Excluding USA) $     8,226       8,476    (2.9)%        44.4 %      31.6 %
  Europe                              1,669       4,698   (64.5)%         9.0 %      17.5 %
  Middle East                         3,924       8,140   (51.8)%        21.2 %      30.3 %
  Far East & Asia                     4,277       4,422    (3.3)%        23.1 %      16.5 %
  South America                         147         523   (71.9)%         0.8 %       1.9 %
  All other areas                       277         563   (50.8)%         1.5 %       2.1 %
                                ------------  ----------  ----------   ----------   ----------
  
                            $        18,520      26,822   (31.0)%       100.0 %     100.0 %
                                ============  ==========  ==========   ==========   ==========
  
                                                NINE MONTHS ENDED (UNAUDITED)
                                --------------------------------------------------------------
  
                                        Amounts                        Percent of Total Sales
                                ------------------------               -----------------------
                                January 28,   January 30,  % Over
         Geographic Area             2001         2000     (Under)        2001        2000
  --------------------------    ------------  ----------  ----------   ----------   ----------
  North America (Excluding USA) $    26,177      26,064     0.4 %        42.2 %      31.4 %
  Europe                              4,928      13,696   (64.0)%         7.9 %      16.5 %
  Middle East                        14,456      24,092   (40.0)%        23.3 %      29.0 %
  Far East & Asia                    13,103      14,088    (7.0)%        21.1 %      17.0 %
  South America                         732       1,773   (58.7)%         1.2 %       2.1 %
  All other areas                     2,671       3,248   (17.8)%         4.3 %       3.9 %
                                ------------  ----------  ----------   ----------   ----------
  
                            $        62,067      82,961   (25.2)%       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 third quarter represented 19.3%
  and 23.7%  for 2001 and 2000,  respectively.  Year-to-date  international  sales
  represented 20.1% and 23.1% of total sales for 2001 and 2000, respectively.
  Culp, Inc.
                     SALES BY SEGMENT/DIVISION - TREND ANALYSIS
                                1999 vs 2000 vs 2001
  (Amounts in thousands)
  
                                              Fiscal 1999                                Fiscal 2000
                                ----------------------------------------- ------------------------------------------
       Segment/Division           Q1      Q2      Q3       Q4     TOTAL     Q1       Q2      Q3       Q4     TOTAL
  ----------------------------
  Upholstery Fabrics
      Culp Decorative Fabrics    51,445  59,573  50,520   60,520 222,058   50,516   56,897  49,654   56,130 213,197
      Culp Velvets/Prints        29,994  38,728  34,949   40,402 144,073   36,209   41,783  34,050   39,501 151,543
      Culp Yarn                   6,596   6,367   4,088    4,462  21,513    4,129    4,358   4,274    4,809  17,570
                                ----------------------------------------- ------------------------------------------
                                 88,035 104,668  89,557  105,384 387,644   90,854  103,038  87,978  100,440 382,310
  
  Mattress Ticking
      Culp Home Fashions         22,632  23,491  22,536   26,781  95,440   25,083   26,504  25,203   28,979 105,769
                                ----------------------------------------- ------------------------------------------
  
                                110,667 128,159 112,093  132,165 483,084  115,937  129,542 113,181  129,419 488,079
                                ========================================= ==========================================
  
                     Percent increase(decrease) from prior year:
  
       Segment/Division
  ----------------------------
  Upholstery Fabrics
      Culp Decorative Fabrics      29.2     4.9    (5.4)      0.6     5.7    (1.8)    (4.5)   (1.7)    (7.3)   (4.0)
      Culp Velvets/Prints         (21.9)  (11.8)  (20.6)    (10.3)  (15.9)   20.7      7.9    (2.6)    (2.2)    5.2
      Culp Yarn                   100.0   100.0   437.2     (37.3)  173.1   (37.4)   (31.6)    4.5      7.8   (18.3)
                                 ----------------------------------------- ------------------------------------------
                                   12.6     3.9    (8.8)     (6.2)   (0.5)    3.2     (1.6)   (1.8)    (4.7)   (1.4)
  
  Mattress Ticking
      Culp Home Fashions            6.3     5.7    11.2      13.9     9.3    10.8     12.8    11.8      8.2    10.8
                                 ----------------------------------------- ------------------------------------------
  
                                   11.2     4.3    (5.4)     (2.7)    1.3     4.8      1.1     1.0     (2.1)    1.0
                                 ========================================= ==========================================
  
      Overall Growth Rate
  
  Internal (without acquisitions)  (4.6)   (0.9)   (8.5)     (2.7)   (4.1)    4.8      1.1     1.0     (2.1)    1.0
  External                         15.8     5.2     3.1         -     5.4       -        -       -        -       -
                                 ----------------------------------------- ------------------------------------------
  
                                   11.2     4.3    (5.4)     (2.7)    1.3     4.8      1.1     1.0     (2.1)    1.0
                                 ========================================= ==========================================
  Culp, Inc.
                     SALES BY SEGMENT/DIVISION - TREND ANALYSIS
                                1999 vs 2000 vs 2001
  (Amounts in thousands)
  
                                                   Fiscal 2001
                                 -------------------------------------------------
       Segment/Division             Q1         Q2        Q3      Q4      TOTAL
  ----------------------------
  Upholstery Fabrics
      Culp Decorative Fabrics       41,533     46,792   40,955            129,280
      Culp Velvets/Prints           30,074     32,073   28,631             90,778
      Culp Yarn                      3,319      4,134    2,711             10,164
                                 -------------------------------------------------
                                    74,926     82,999   72,297            230,222
  
  Mattress Ticking
      Culp Home Fashions            26,952     27,982   23,583             78,517
                                   -----------------------------------------------
  
                                   101,878    110,981   95,880            308,739
                                 =================================================
  
                    Percent increase(decrease) from prior year:
  
       Segment/Division
  ----------------------------
  Upholstery Fabrics
      Culp Decorative Fabrics        (17.8)     (17.8)   (17.5)             (17.7)
      Culp Velvets/Prints            (16.9)     (23.2)   (15.9)             (19.0)
      Culp Yarn                      (19.6)      (5.1)   (36.6)             (20.4)
                                 -------------------------------------------------
                                     (17.5)     (19.4)   (17.8)             (18.3)
  
  Mattress Ticking
      Culp Home Fashions               7.5        5.6     (6.4)               2.2
                                 -------------------------------------------------
  
                                     (12.1)     (14.3)   (15.3)             (13.9)
                                 =================================================
  
      Overall Growth Rate
  
  Internal (without acquisitions)    (12.1)     (14.3)   (15.3)             (13.9)
  External                               -          -        -                  -
                                 =================================================
                                     (12.1)     (14.3)   (15.3)             (13.9)
                                 =================================================
  CULP, INC. FINANCIAL INFORMATION RELEASE
                                 FINANCIAL NARRATIVE
      for the three and nine months ended January 28, 2001 and January 30, 2000
  
  INCOME STATEMENT COMMENTS
  
       GENERAL  - For the  third  quarter,  net  sales  decreased  15.3%  to $95.9
  million; and the company reported a net loss of $5.5 million, or $0.49 per share
  diluted (based on 11,211,000  average shares  outstanding)  versus net income of
  $1.4 million,  or $0.13 per share diluted  (based on 11,389,000  average  shares
  outstanding).  For the first nine  months of fiscal  2001,  net sales  decreased
  13.9% to $308.7 million, and the company reported a net loss of $6.9 million, or
  $0.61 per share diluted (based on 11,209,000 average shares outstanding), versus
  net income of $6.2  million,  or $0.52 per share  diluted  (based on  11,816,000
  average shares  outstanding),  a year ago. The results for the third quarter and
  first nine months of fiscal 2001 included  special charges totaling $3.2 million
  before taxes for restructuring actions and inventory write-downs.
  
       The company's  long-term,  strategic plan encompasses  several  competitive
  initiatives:
  
       Broad Product  Offering - continuing to market one of the broadest  product
  lines  in  upholstery  fabrics  and  mattress  ticking.  Through  its  extensive
  manufacturing capabilities,  the company competes in 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.  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.   One  customer   accounted  for
  approximately  12% of net sales during the third quarter of fiscal 2001. 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.
  
       RESTRUCTURING  ACTIONS - During the third quarter,  the company initiated a
  restructuring plan intended to lower costs, increase efficiency and position the
  company to operate profitably within the current  environment of reduced demand.
  The plan  involves the  consolidation  of certain  manufacturing  capacity,  the
  closure of some  facilities and an extensive  reduction in selling,  general and
  administrative   expenses.   The  company  also  recognized   certain  inventory
  write-downs as part of this initiative. The total charge from the restructuring,
  cost reduction and inventory  write-down  initiatives is expected to exceed $6.0
  million,  about half of which  should  represent  non-cash  items.  The  company
  recognized $3.2 million of restructuring  charges and special costs in the third
  quarter,  and most of the balance is expected to be reflected in results for the
  fourth fiscal period.  The company expects to realize annualized cost reductions
  of at least $12 million when these steps are fully implemented.
  
       NET SALES -  Compared  with the third  quarter of fiscal  2000,  upholstery
  fabric  sales  decreased  17.8% to $72.3  million  and  mattress  ticking  sales
  decreased 6.4% to $23.6 million (See Sales by Segment/Division  schedule on Page
  5 and Sales by Segment/Division - Trend Analysis on Page 7). International sales
  were down 31.0% for the quarter and 25.2% for the first nine months.
  
       The company had previously  announced that it expected to report a net loss
  for the third quarter,  excluding special charges.  Key factors  influencing the
  year-to-year  comparisons were continued  weakness in consumer  spending on home
  furnishings, especially in the promotional price category, and an adverse impact
  on exports from the strength in the U.S.  dollar  compared  with a year ago. The
  slowdown  in  industry-wide  demand  also led to a decline in sales at Culp Home
  Fashions  (primarily  mattress  ticking) for the third quarter.  Culp's sales of
  mattress ticking were up for the first nine months.
  
       The fourth fiscal  quarter of the year is  historically a strong period for
  the company's  sales.  Based on current  trends,  however,  the company does not
  expect to report a profit for fiscal 2001 as a whole.
  
       GROSS PROFIT - Gross profit  declined  46.8% for the third quarter versus a
  year ago and  decreased  as a percentage  of net sales from 16.3% to 10.3%.  The
  decline was due  principally  to lower sales  volume for the period which led to
  unfavorable cost variances in the company's  upholstery fabrics  operation.  The
  company has taken steps to lower expenses by  consolidating  certain  operations
  and reducing  personnel,  but these  actions were not  sufficient  to offset the
  impact of the significantly lower sales.
  
       SG&A  EXPENSES  - SG&A  expenses  for  the  third  quarter  increased  as a
  percentage  of sales from 12.3% to 13.0%.  The dollar  amount of these  expenses
  declined  10.5%  from a year ago,  reflecting  the  company's  actions to reduce
  expenses, but the  lower-than-expected  sales caused the increase in these costs
  as a percentage of sales.
  
       INTEREST  EXPENSE - Interest  expense of $2.2 million for the third quarter
  was down  slightly  from $2.4  million  in the prior  year due to lower  average
  borrowings.
  
       OTHER EXPENSE (INCOME),  NET - Other expense (income) for the third quarter
  totaled  $811,000  compared  with  $229,000 in the prior year.  The  increase is
  principally  due to lower  investment  income on assets related to the company's
  nonqualified deferred compensation plan.
  
       INCOME TAXES - The  effective tax rate for the nine months was 33.0% versus
  32.3% in the year-earlier period.
  
       EBITDA - Due  principally to the lower earnings for the period,  EBITDA for
  the third quarter was $(648,000) compared with $9.7 million in the prior year.
  
  BALANCE SHEET COMMENTS
  
       WORKING  CAPITAL - Accounts  receivable  as of January 28,  2001  decreased
  17.2% from the  year-earlier  level,  due principally to the lower sales for the
  period. Days sales outstanding  declined to 48 days at January 28, 2001 compared
  with 49 a year ago. The aging of accounts  receivable was 94.4% current and less
  than 30 days past due versus 97.1% a year ago.  Inventories  at the close of the
  third quarter  decreased  17.0% from a year ago.  Inventory  turns for the third
  quarter  were 4.9  versus 4.8 for the  year-earlier  period.  Operating  working
  capital (comprised of accounts  receivable,  inventory and accounts payable) was
  $94.5 million at January 28, 2001, down from $111.3 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  2001,  which was budgeted to be
  approximately  $16  million at the start of the year,  is now  expected to total
  $8.0 million.  Capital  spending for fiscal 2002 is budgeted to be approximately
  $4.0 million. Depreciation for fiscal 2001 is estimated to be $19.5 million.
  
       LONG-TERM DEBT - The company's  funded  debt-to-capital  ratio was 50.0% at
  January 28, 2001 compared with 52.0% a year ago.  Funded debt was $121.4 million
  at January 28, 2001 compared with $137.7 million a year ago.  Funded debt equals
  long-term debt, including current maturities, less restricted investments, which
  represent  unspent  IRB funds.  The  company  has  completed  an amended  credit
  facility  which  includes  terms that restrict the payment of cash  dividends at
  this  time,  limit  capital  expenditures,  increase  the  interest  rate on the
  revolver  from LIBOR plus 1.60% to LIBOR plus 4.00% and  increase  the letter of
  credit fees on the IRBs from 1.10% to 4.00%.  The company was in compliance with
  all covenants of the amended credit facility as of January 28, 2001. The amended
  credit  facility  lowered the amount of funds  available under the facility from
  $88 million to $25  million.  The company had  outstanding  borrowings  of $10.0
  million under the facility at the end of the third quarter.
  
       RESTATEMENT  - During  the  third  quarter  of  fiscal  2001,  the  company
  terminated the nonqualified  deferred  compensation  plan covering  officers and
  certain other  associates.  As a result,  the company sold the assets related to
  the nonqualified  plan in order to pay the  participants.  The proceeds received
  from selling  those assets  resulted in  recognizing  gains from fiscal 1999 and
  1998 totaling  approximately $1.1 million. As a result, the January 30, 2000 and
  April 30, 2000 balance sheets were restated to properly reflect other assets and
  equity.
  
  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.  No repurchases were made during the first nine months of fiscal
  2001,  and  under the terms of the  amended  credit  facility,  the  company  is
  currently restricted from any stock repurchases.