content: --------------------------------------------------------------------------------
  
                                   UNITED STATES
                        SECURITIES AND EXCHANGE COMMISSION
                              Washington, D.C. 20549
  
                                     ---------
  
                                     Form 8-K
  
                                  CURRENT REPORT
  
                 Pursuant to Section 13 or 15(d) of the Securities
                               Exchange Act of 1934
  
                                   -------------
  
            Date of Report (Date of earliest event reported) June 9, 2003
  
                                     CULP, INC.
  
              (Exact name of registrant as specified in its charter)
  
  
           North Carolina                  0-12781                56-1001967
  (State or other jurisdiction of   (Commission File No.)       (IRS Employer
           incorporation)                                    Identification No.)
  
  
  
                               101 South Main Street
                         High Point, North Carolina  27260
                     (Address of principal executive offices)
                                  (336) 889-5161
               (Registrant's telephone number, including area code)
  
  
  
  
    ---------------------------------------------------------------------------
           (Former name or former address, if changed since last report)
  
  
  
  
  
  --------------------------------------------------------------------------------
  
  
  
  
  
  <PAGE>
  
  
                                        INDEX
                                        -----
  
  
                                                                       Page
                                                                       ----
  Item 7 - Exhibits                                                      3
  
  Item 9 - Regulation FD Disclosure (disclosing information              3
           pursuant to  Item 12, Results of Operations and
           Financial Condition)
  Signature                                                              4
  
  Exhibits
  
  
  
  
  <PAGE>
  
  
      Item 7 -- Exhibits
  
      99(a)  News Release dated June 9, 2003
  
      99(b)  Financial Information Release dated June 9, 2003
  
       Item 9 -- Regulation FD Disclosure (disclosing information pursuant to Item
  12, Results of Operations and Financial Condition)
  
  On June 9, 2003, Culp, Inc. (the "Registrant") issued a news release to announce
  its  financial  results for the quarter and year ended April 27, 2003.  The news
  release is attached hereto as Exhibit 99(a).
  
  Also on June 9, 2003, the Registrant  released a Financial  Information  Release
  containing   additional   financial   information  and  disclosures   about  the
  Registrant's fourth quarter and year ended April 27, 2003.
  
  
  Forward Looking Information. This Report and the exhibit attached hereto contain
  statements that may be deemed "forward-looking statements" within the meaning of
  the federal securities laws, including the Private Securities  Litigation Reform
  Act of 1995  (Section 27A  of the  Securities Act of 1933 and Section 27A of the
  Securities and Exchange Act of 1934). Such statements are inherently  subject to
  risks and  uncertainties.  Further,  Forward looking  statements are intended to
  speak only as of the date on which they are made. Forward-looking statements are
  statements that include projections, expectations or beliefs about future events
  of results or otherwise are not statements of historical  fact.  Such statements
  are often but not always  characterized  by  qualifying  words such as "expect,"
  "believe,"  "estimate," "plan" and "project" and their derivatives,  and include
  but are not limited to statements  about  expectations  for the company's future
  sales, gross profit margins,  SG&A or other expenses,  and earnings,  as well as
  any statements regarding the company's view of estimates of the company's future
  results by analysts.  Factors that could influence the matters discussed in such
  statements  include  the level of housing  starts and sales of  existing  homes,
  consumer   confidence,   trends  in  disposable  income,  and  general  economic
  conditions.  Decreases in these economic indicators could have a negative effect
  on the company's business and prospects.  Likewise, increases in interest rates,
  particularly  home mortgage rates, and increases in consumer debt or the general
  rate  of   inflation,   could  affect  the  company   adversely.   In  addition,
  strengthening  of the U. S.  dollar  against  other  currencies  could  make the
  company's products less competitive on the basis of price in markets outside the
  United States.  Also, economic and political  instability in international areas
  could affect the  company's  operations  or sources of goods in those areas,  as
  well as demand for the company's  products in  international  markets.  Finally,
  unanticipated delays or costs in executing restructuring actions could cause the
  cumulative  effect of  restructuring  actions to fail to meet the objectives set
  forth by  management.  Other factors that could affect the matters  discussed in
  forward looking  statements are included in the company's periodic reports filed
  with the Securities and Exchange Commission.
  
  
  <PAGE>
  
  
  
  
  
  
                                     SIGNATURE
  
  
  Pursuant  to the  requirements  of the  Securities  Exchange  Act of  1934,  the
  Registrant  has duly  caused  this  report  to be  signed  on its  behalf by the
  undersigned hereunto duly authorized.
  
  
                                      CULP, INC.
                                      (Registrant)
  
  
                                By:    Franklin N. Saxon
                                       ----------------------------
                                       Executive Vice President and
                                       Chief Financial Officer
  
  
  
  
  
  Dated:  June 9, 2003
  
  <PAGE>
  Exhibit 99(a)
  
                                   NEWS RELEASE
  
  Investor Contact:  Kathy J. Hardy         Media Contact:  Kenneth M. Ludwig
                     Corporate Secretary                    Senior Vice President,
                     336-888-6209                           Human Resources
                                                            336-889-5161
  
  
                   CULP ANNOUNCES FISCAL YEAR-END 2003 RESULTS
                          ------------------------------
              ANNUAL EARNINGS AND MARGIN IMPROVEMENT REFLECT BENEFITS
              OF RESTRUCTURING ACTIONS AND BALANCE SHEET MANAGEMENT
  
  
  HIGH  POINT,  N.C.  (June 9, 2003) - Culp,  Inc.  (NYSE:  CFI) today  reported
  financial and operating  results for the fourth  quarter and fiscal year ended
  April 27, 2003.  The highlights include:
  
  o     Significant  improvement  in earnings  and  margins  over the prior year
        (excluding cumulative effect of accounting change)
  o     Free cash flow of $23.0 million for fiscal 2003
  o     Further  balance sheet  improvement  with a $19.7 million  prepayment in
        long-term debt in the fourth quarter
  o     Long-term debt of $76.5 million,  down $32.0 million from $108.5 million
        at the end of fiscal 2002
  
        For the three months ended April 27, 2003,  net sales were $90.2 million
  compared  with  $108.4 million  a year  ago.  The  financial  results  for the
  fourth quarter  include a total of $1.0 million in  restructuring  and related
  charges,   all   of   which   reflect   previously   announced   restructuring
  initiatives.  Including  restructuring  and related  charges in both  periods,
  the company  reported net income of $3.3 million,  or $0.28 per diluted share,
  for the  fourth  quarter  of  fiscal  2003,  compared  with a net loss of $1.6
  million,  or $0.14 per share, in the fourth quarter of fiscal 2002.  Excluding
  restructuring  and related  charges,  the company  reported net income of $3.9
  million,  or $0.33 per diluted  share,  versus net income of $4.4 million,  or
  $0.38 per  diluted  share,  in the fourth  quarter of fiscal  2002,  excluding
  restructuring   and   related   charges,   and   goodwill   amortization.   (A
  reconciliation  to the net income and earnings per share  calculations  is set
  forth on Page 5.)
  
        For the fiscal  year ended April 27,  2003,  the  company  reported  net
  sales of $339.0  million,  compared  with  $381.9  million  for  fiscal  2002.
  Including  restructuring  charges  and the  cumulative  effect  of  accounting
  change,  the company reported a net loss for fiscal 2003 of $24.9 million,  or
  $2.17 per diluted  share,  compared with a loss of $3.4 million,  or $0.31 per
  diluted share, for fiscal 2002.  Excluding  restructuring  and related charges
  and the  cumulative  effect of accounting  change,  net income for fiscal 2003
  was $9.0 million,  or $0.77 per diluted  share.  This compares with net income
  of $4.9  million,  or $0.43 per diluted  share,  excluding  restructuring  and
  related charges, and goodwill amortization for the prior year.
  
  
  <PAGE>
  
  
  
        As  previously  announced,  due  to  the  adoption  of a new  accounting
  standard,  "Goodwill  and Other  Intangible  Assets,"  the company  recorded a
  non-cash goodwill  impairment  charge,  net of income taxes, of $24.2 million,
  or $2.11 per  diluted  share,  in the first  quarter  of 2003  related  to the
  goodwill  associated with its Culp Decorative  Fabrics ("CDF")  division.  The
  charge,  recorded as "cumulative  effect of accounting  change," has no effect
  on operating income or cash flow from operations.
  
        "Without question,  the fourth fiscal quarter was a continuation of what
  has been an extremely  challenging year for the furniture  industry," remarked
  Robert G. Culp,  III,  chief  executive  officer of Culp,  Inc. "Our sales for
  the quarter  reflect a  marketplace  that has been weighed down by the ongoing
  uncertainties in the economy,  rising  unemployment and distractions  over the
  war in  Iraq.  Overall,  net  sales  decreased  16.8%  with  sales  in our two
  segments,  upholstery  fabrics  and  mattress  ticking,  down 17.2% and 15.5%,
  respectively.  Recognizing  there  are  many  things  in this  environment  we
  cannot  control,  our  focus  over  the  past  year  has  been on  identifying
  opportunities   to   operationally   leverage   our  assets  and  become  more
  efficient.  We are already  realizing  the  benefits of our CDF  restructuring
  initiative  with the  reduction  in fixed  manufacturing  costs as a result of
  plant consolidations and the improvement in our operating efficiencies.
  
        "As a result of our solid execution,  Culp made significant  progress in
  meeting  our key  financial  objectives  for fiscal 2003 - to  strengthen  our
  balance sheet,  increase  margins,  improve the profitability of our sales mix
  and  generate  free cash flow,"  added  Culp.  "Notably,  we have  reduced our
  long-term debt by $32 million this year,  including the additional $20 million
  we pre-paid in the fourth  quarter.  Over the past three years we have reduced
  our debt by a total of $61 million,  and have  increased  our cash position by
  $23 million.  For the year,  free cash flow from  operations  was $23 million.
  (A  reconciliation  to  the  free  cash  flow  calculations  is set  forth  on
  Page 5.)  Over the past three  years,  we have  generated  over $79 million in
  free cash  flow,  further  strengthening  our  balance  sheet.  Our  financial
  position  remains sound and as of April 27, 2003,  our balance sheet  reflects
  $24 million in cash and cash  investments,  significant  decreases in leverage
  ratios,  and only  minimal  principal  payments on  long-term  debt for almost
  three years.  Having a solid financial  position during a difficult period for
  our industry not only provides a secure  foundation,  but also  reinforces our
  confidence in Culp's future.
  
        "Our  previously  announced  plans to establish  operations in China are
  underway.  We have recently  relocated a general  manager to Shanghai,  China,
  signed  a lease on our  facility,  and are in the  process  of  obtaining  the
  required  license  approvals to move forward.  Along with the  installation of
  finishing  equipment,  we plan to begin doing  business at the China  facility
  during the second fiscal quarter of 2004,  which is expected to include fabric
  inspection,  testing and  distribution.  Limited fabric  finishing  operations
  are anticipated to begin during the third fiscal quarter of 2004."
  
        Commenting on the business  outlook,  Culp added,  "The first quarter of
  our fiscal year,  which includes the summer months,  is the slowest period for
  Culp and the furniture  industry due to scheduled  plant  vacation  shutdowns.
  Historically,  the furniture  industry has rarely  experienced  any meaningful
  recovery  in the  summer  months.  Therefore,  we  expect  the  year-over-year
  decline in sales for the  upholstery  fabric  segment to be  somewhat  greater
  than the  decline  in the  fourth  quarter of fiscal  2003.  However,  we have
  recently seen improving  order rates for mattress  ticking and expect that the
  decline  in sales  for this  segment  will be  substantially  less than in the
  fourth  quarter of 2003.  Overall,  we expect the drop in  consolidated  sales
  for the first  quarter  to be  greater  than the  fourth  quarter  decline  of
  16.8%.  With the considerable  ongoing weakness in the furniture  industry and
  the lack of  visibility  into the  quarter to date,  it is more  difficult  to
  predict  the degree to which the  company's  profitability  will  decline.  At
  this time we expect to report a net loss in the range of  ($0.06)  to  ($0.13)
  per  share,  with  the  actual  results  depending  upon the  level of  demand
  throughout the quarter.  However,  we are  optimistic  that overall sales will
  start  to pick up in the  fall,  as is  seasonally  typical  in the  furniture
  industry.  With the  restructuring  initiatives over the past year,  excellent
  designs and the continued  progress in reducing costs and improving  operating
  efficiencies,  we believe  Culp is well  positioned  to take  advantage of our
  earnings  leverage  when  furniture  demand  picks  up and  our  sales  regain
  momentum."
  
        Culp,  Inc.  is one of  the  world's  largest  marketers  of  upholstery
  fabrics  for  furniture  and is a leading  marketer  of  mattress  ticking for
  bedding.  The  Company's  fabrics are used  principally  in the  production of
  residential and commercial furniture and bedding products.
  
        This release  contains  statements  that may be deemed  "forward-looking
  statements" within the meaning of the federal  securities laws,  including the
  Private  Securities   Litigation  Reform  Act  of  1995  (Section 27A  of  the
  Securities  Act of 1933 and Section 27A of the  Securities and Exchange Act of
  1934).  Such  statements  are inherently  subject to risks and  uncertainties.
  Further,  forward-looking statements are intended to speak only as of the date
  on  which  they are  made.  Forward-looking  statements  are  statements  that
  include  projections,  expectations  or beliefs about future events or results
  or otherwise are not  statements  of  historical  fact.  Such  statements  are
  often but not always  characterized  by  qualifying  words  such as  "expect,"
  "believe,"  "estimate,"  "plan"  and  "projec"  and  their  derivatives,  and
  include  but  are  not  limited  to  statements  about  expectations  for  the
  company's  future sales,  gross profit margins,  SG&A or other  expenses,  and
  earnings,  as well as any statements regarding the company's view of estimates
  of the  company's  future  results by analysts.  Factors that could  influence
  the matters  discussed in such statements  include the level of housing starts
  and  sales of  existing  homes,  consumer  confidence,  trends  in  disposable
  income,  and  general  economic   conditions.   Decreases  in  these  economic
  indicators  could  have a  negative  effect  on  the  company's  business  and
  prospects.  Likewise,  increases in interest rates, particularly home mortgage
  rates, and increases in consumer debt or the general rate of inflation,  could
  affect the company  adversely.  In addition,  strengthening of the U.S. dollar
  against other  currencies  could make the company's  products less competitive
  on the basis of price in markets  outside the United  States.  Also,  economic
  and political  instability in  international  areas could affect the company's
  operations  or  sources  of goods in those  areas,  as well as demand  for the
  company's products in international  markets.  Finally,  unanticipated  delays
  or costs in executing  restructuring actions could cause the cumulative effect
  of  restructuring  actions  to  fail to  meet  the  objectives  set  forth  by
  management.   Other  factors  that  could  affect  the  matters  discussed  in
  forward-looking  statements  are included in the  company's  periodic  reports
  filed with the Securities and Exchange Commission.
  
  <PAGE>
  
                                    CULP, INC.
                           Condensed Financial Highlights
  
                                                            Three Months Ended
                                                        -------------------------
                                                        April 27,      April 28,
                                                          2003           2002
                                                        -----------  ------------
  Net sales                                            $ 90,227,000  $108,397,000
                                                        ===========  ============
  
  Net income (loss)                                    $  3,272,000  $ (1,585,000)
  Net income (loss) per share:
     Basic                                             $       0.28  $      (0.14)
     Diluted                                           $       0.28  $      (0.14)
  Net income per share, diluted, excluding restructuring
    and related charges and goodwill amortization*     $       0.33  $       0.38
  Average shares outstanding:
     Basic                                               11,496,000    11,255,000
     Diluted                                             11,616,000    11,255,000
  
  
                                                              Year Ended
                                                        -------------------------
                                                        April 27,      April 28,
                                                          2003           2002
                                                       ------------  ------------
  Net sales                                            $338,980,000  $381,878,000
                                                       ============  ============
  Loss before cumulative effect of accounting change   $   (736,000) $ (3,440,000)
  Cumulative effect of accounting change, net of income
    taxes                                               (24,151,000)          -0-
                                                       ------------  ------------
  Net loss                                             $(24,887,000) $ (3,440,000)
                                                       ============  ============
  
  Basic and diluted loss per share:
    Loss before cumulative effect of accounting change $     (0.06) $      (0.31)
    Cumulative effect of accounting change                   (2.11)         0.00
                                                       ------------  ------------
    Net loss                                           $     (2.17) $      (0.31)
                                                       ============  ============
  
  Net income per share, diluted, excluding restructuring
    and related charges, goodwill amortization and
    cumulative effect of accounting change**           $      0.77  $       0.43
  
  Average shares outstanding:
    Basic                                               11,462,000    11,230,000
    Diluted                                             11,462,000    11,230,000
  
  * Excludes  restructuring  and related charges of $1.0 million  ($601,000,  or
     $0.05 per  diluted  share,  after  taxes) for the fourth  quarter of fiscal
     2003. Excludes  restructuring  charges related to the exit of the wet print
     flock  upholstery  business of $9.7  million  ($5.8  million,  or $0.51 per
     diluted  share,   after  taxes)  and  goodwill   amortization  of  $350,000
     ($231,000,  or $0.02 per diluted share, after taxes) for the fourth quarter
     of fiscal  2002.  The fiscal 2002 diluted net income per share uses average
     shares outstanding of 11,564,000.
  
  ** Excludes  cumulative effect of accounting  change,  net of income taxes, of
     $24.2  million  ($2.11  per  diluted share)   for  fiscal  2003.   Excludes
     restructuring and related charges of $15.9 million ($9.7 million,  or $0.85
     per diluted  share,  after taxes) for fiscal 2003.  Excludes  restructuring
     and related  charges of  $12.2 million  ($7.4  million,  or $0.66 per share
     diluted, after taxes) and goodwill amortization of $1.4 million  ($924,000,
     or $0.08 per diluted  share,  after taxes) for fiscal 2002. The diluted net
     income for fiscal 2003 and for fiscal 2002 uses average shares  outstanding
     of 11,712,000 and 11,457,000, respectively.
  
  
  <PAGE>
  
                                    CULP, INC.
  
     Reconciliation of Net Income (Loss) as Reported to Pro Forma Net Income
  <TABLE>
  <CAPTION>
  
                                                  Three Months Ended                   Year Ended
                                               -----------------------------   ---------------------------
                                               April 27,         April 28,        April 27,    April 28,
                                                 2003              2002             2003          2002
                                               -------------  --------------   ------------  -------------
  <S>                                          <C>            <C>             <C>           <C>
  Net income (loss), as reported               $   3,272,000  $  (1,585,000)  $(24,887,000) $ (3,440,000)
  Cumulative effect of
    accounting change, net of income taxes              --            --        24,151,000        --
  Restructuring and related
    charges, net of income taxes                     601,000      5,779,000      9,714,000     7,435,000
  Goodwill amortization, net of income taxes           --           231,000           --         924,000
                                               -------------  --------------   ------------  -------------
  Pro forma net income                            $3,873,000    $ 4,425,000     $8,978,000  $  4,919,000
                                               =============  ==============   ============  =============
  
  
    Reconciliation of Net Income (Loss) Per Share as Reported to Pro Forma Net Income Per Share
  
  Diluted net income (loss) per
    share, as reported                            $     0.28    $    (0.14)   $   (2.17)    $   (0.31)
  Cumulative effect of
    accounting change, net of income taxes               --            --          2.11           --
  Restructuring and related
    charges, net of income taxes                        0.05          0.51         0.85          0.66
  Goodwill amortization, net of  income taxes            --           0.02                       0.08
  Effect of dilutive stock options                       --          (0.01)       (0.02)          --
                                               -------------  --------------   ------------  -------------
  Pro forma diluted net income
    per share                                     $     0.33    $     0.38    $    0.77     $    0.43
                                               =============  ==============   ============  =============
  </TABLE>
  
            Reconciliation of Cash Flow from Operations to Free Cash Flow
  
                                          Year Ended
                            --------------------------------------
                             April 27,     April 28,     April 29,   Three-Year
                               2003          2002          2001         Total
                            -----------  -----------   -----------  ------------
  Cash flow from operations $35,234,000  $38,135,000   $30,693,000  $104,062,000
  Capital expenditures      (12,229,000)  (4,729,000)   (8,050,000)  (25,008,000)
                            -----------  -----------   -----------  ------------
  Free cash flow            $23,005,000  $33,406,000   $22,643,000   $79,054,000
                            ===========  ===========   ===========  ============
  
  
  
  <PAGE>
  Exhibit 99(b)
  
                      CULP, INC. FINANCIAL INFORMATION RELEASE
                      CONSOLIDATED STATEMENTS OF INCOME (LOSS)
   FOR THE THREE MONTHS AND TWELVE MONTHS ENDED APRIL 27, 2003 AND APRIL 28, 2002
  
                  (Amounts in Thousands, Except for Per Share Data)
  <TABLE>
  <CAPTION>
                                                                                                  THREE MONTHS ENDED
                                                                     -----------------------------------------------------------------
  
                                                                              Amounts                              Percent of Sales
                                                                     ------------------------                  ----------------------
                                                                     April 27,    April 28,      % Over
                                                                        2003         2002        (Under)          2003        2002
                                                                     -----------  -----------  --------------  -----------  ---------
  <S>                                                            <C>               <C>         <C>             <C>         <C>
  Net sales                                                      $       90,227      108,397      (16.8)  %      100.0  %    100.0  %
  Cost of sales                                                          74,039       85,379      (13.3)  %       82.1  %     78.8  %
                                                                     -----------  -----------  -------------  ------------  ---------
       Gross profit                                                      16,188       23,018      (29.7)  %       17.9  %     21.2  %
  
  Selling, general and
    administrative expenses                                              10,324       14,236      (27.5)  %       11.4  %     13.1  %
  Goodwill amortization                                                       0          349     (100.0)  %        0.0  %      0.3  %
  Restructuring expense                                                     (25)       9,065     (100.3)  %       (0.0) %      8.4  %
                                                                     -----------  -----------  -------------  ------------  ---------
       Income  (loss) from operations                                     5,889         (632)   1,031.8  %         6.5  %     (0.6) %
  
  Interest expense                                                        1,392        2,056      (32.3) %         1.5  %      1.9  %
  Interest income                                                          (182)         (77)     136.4  %        (0.2) %     (0.1) %
  Other expense (income), net                                               160          718      (77.0) %         0.2  %      0.7  %
                                                                     -----------  -----------  -------------  ------------  ---------
       Income (loss) before income taxes                                  4,519       (3,329)     235.7  %         5.0  %     (3.1) %
  
  Income taxes  *                                                         1,247       (1,744)     171.5  %        27.6  %     52.4  %
                                                                     -----------  -----------  -------------  ------------  ---------
  
       Net Income (loss)                                         $        3,272       (1,585)     306.4  %         3.6  %     (1.5) %
                                                                     ===========  ===========  =============  ============  =========
  
  Net income (loss) per share-basic                                       $0.28       ($0.14)     300.0  %
  Net income (loss) per share-diluted                                     $0.28       ($0.14)     300.0  %
  Net income per share, diluted, excluding restructuring                  $0.33        $0.38      (13.2) %
    and related charges and goodwill amortization (see proforma
    statement on page 7)
  Average shares outstanding-basic                                       11,496       11,255        2.1  %
  Average shares outstanding-diluted                                     11,616       11,255        3.2  %
  
  
  
                                                                                             TWELVE MONTHS ENDED
                                                                     -----------------------------------------------------------------
  
                                                                              Amounts                             Percent of Sales
                                                                     ------------------------                 ------------------------
                                                                      April 27,    April 28,      % Over
                                                                        2003         2002        (Under)         2003        2002
                                                                     -----------  -----------  -------------- ------------  ---------
  
  Net sales                                                       $     338,980      381,878      (11.2) %       100.0  %    100.0  %
  Cost of sales                                                         281,407      319,021      (11.8) %        83.0  %     83.5  %
                                                                     -----------  -----------  -------------  ------------  ---------
       Gross profit                                                      57,573       62,857       (8.4) %        17.0  %     16.5  %
  
  Selling, general and
    administrative expenses                                              40,040       48,059      (16.7) %        11.8  %     12.6  %
  Goodwill amortization                                                       0        1,395     (100.0) %         0.0  %      0.4  %
  Restructuring expense                                                  12,981       10,368       25.2  %         3.8  %      2.7  %
                                                                     -----------  -----------  -------------  ------------  ---------
       Income from operations                                             4,552        3,035       50.0  %         1.3  %      0.8  %
  
  Interest expense                                                        6,636        7,907      (16.1) %         2.0  %      2.1  %
  Interest income                                                          (596)        (176)     238.6  %        (0.2) %     (0.0) %
  Other expense (income), net                                               805        1,444      (44.3) %         0.2  %      0.4  %
                                                                     -----------  -----------  -------------  ------------  ---------
       Loss before income taxes                                          (2,293)      (6,140)      62.7  %        (0.7) %     (1.6) %
  
  Income taxes *                                                         (1,557)      (2,700)     (42.3) %        67.9  %     44.0  %
                                                                     -----------  -----------  -------------  ------------  ---------
  Loss before cumulative effect of accounting change                       (736)      (3,440)      78.6  %        (0.2) %     (0.9) %
                                                                     ===========  ===========
  
  Cumulative effect of accounting change, net of income taxes           (24,151)           0
                                                                     -----------  -----------
  
       Net loss                                                   $     (24,887)      (3,440)
                                                                     ===========  ===========
  
  Basic loss per share:
       Loss before cumulative effect of accounting change         $       (0.06)       (0.31)      79.0  %
       Cumulative effect of accounting change                             (2.11)        0.00     (100.0) %
                                                                     -----------  ----------- ----------
       Net loss                                                           (2.17)       (0.31)    (608.8) %
                                                                     ===========  =========== ==========
  
  Diluted loss per share:
       Loss before cumulative effect of accounting change         $       (0.06)       (0.31)      79.0  %
       Cumulative effect of accounting change                             (2.11)        0.00     (100.0) %
                                                                     -----------  ----------- ----------
       Net loss                                                           (2.17)       (0.31)    (608.8) %
                                                                     ===========  =========== ==========
  
  Net income per share, diluted, excluding restructuring                  $0.77        $0.43       79.1  %
    and related charges, goodwill amortization and cumulative
    effect of accounting change (see proforma statement on page 8)
  Average shares outstanding-basic                                       11,462       11,230        2.1  %
  Average shares outstanding-diluted                                     11,462       11,230        2.1  %
  
   *   Percent of sales column for income taxes is calculated as a % of income (loss) before income taxes.
  </TABLE>
  <PAGE>
                      CULP, INC. FINANCIAL INFORMATION RELEASE
                             CONSOLIDATED BALANCE SHEETS
                          APRIL 27, 2003 AND APRIL 28, 2002
  
                               (Amounts in Thousands)
  <TABLE>
  <CAPTION>
  
                                                                Amounts
                                                       ---------------------------        Increase (Decrease)
                                                         April 27,       April 28     ---------------------------
                                                           2003            2002         Dollars      Percent
                                                       --------------   ----------    ----------    ------------
  <S>                                               <C>                 <C>          <C>           <C>
  Current assets
       Cash and cash investments                    $         24,398       31,993       (7,595)       (23.7) %
       Accounts receivable                                    32,259       43,366      (11,107)       (25.6) %
       Inventories                                            49,552       57,899       (8,347)       (14.4) %
       Other current assets                                   15,507       13,413        2,094         15.6  %
                                                       --------------   ----------    ----------    ------------
                       Total current assets                  121,716      146,671      (24,955)       (17.0) %
  
  Property, plant & equipment, net                            84,962       89,772       (4,810)        (5.4) %
  Goodwill                                                     9,240       47,083      (37,843)       (80.4) %
  Other assets                                                 2,235        4,187       (1,952)       (46.6) %
                                                       --------------   ----------    ----------    ------------
  
                       Total assets                 $        218,153      287,713      (69,560)       (24.2) %
                                                       ==============   ==========    ==========    ============
  
  
  
  Current liabilities
       Current maturities of long-term debt         $            500        1,483         (983)       (66.3) %
       Accounts payable                                       19,874       24,327       (4,453)       (18.3) %
       Accrued expenses                                       14,071       16,460       (2,389)       (14.5) %
       Accrued restructuring                                   7,743        2,445        5,298        216.7  %
       Income Taxes Payable                                      349            0          349        100.0  %
                                                       --------------   ----------    ----------    -----------
                       Total current liabilities              42,537       44,715       (2,178)        (4.9) %
  
  Long-term debt                                              76,000      107,001      (31,001)       (29.0) %
  
  Deferred income taxes                                        3,851       16,932      (13,081)       (77.3) %
                                                       --------------   ----------    ----------    -----------
                       Total liabilities                     122,388      168,648      (46,260)       (27.4) %
  
  Shareholders' equity                                        95,765      119,065      (23,300)       (19.6) %
                                                       --------------   ----------    ----------    -----------
  
                       Total liabilities and
                       shareholders' equity         $        218,153      287,713      (69,560)       (24.2) %
                                                       ==============   ==========    ==========    ===========
  
  Shares outstanding                                          11,491       11,320          171          1.5  %
                                                       ==============   ==========    ==========    ===========
  
  </TABLE>
  <PAGE>
                      CULP, INC. FINANCIAL INFORMATION RELEASE
                        CONSOLIDATED STATEMENTS OF CASH FLOWS
            FOR THE TWELVE MONTHS ENDED APRIL 27, 2003 AND APRIL 26, 2002
  
                               (Amounts in Thousands)
  
  <TABLE>
  <CAPTION>
                                                                                              TWELVE MONTHS ENDED
                                                                                         ------------------------------
  
                                                                                                    Amounts
                                                                                         ------------------------------
                                                                                          April 27,          April 28,
                                                                                            2003               2002
                                                                                        -------------    -------------
  <S>                                                                                <C>                   <C>
  Cash flows from operating activities:
         Net loss                                                                     $       (24,887)          (3,440)
         Adjustments to reconcile net loss to net cash
            provided by operating activities:
                Cumulative effect of accounting change, net of income taxes                    24,151                0
                Depreciation                                                                   13,990           17,274
                Amortization of intangible and other assets                                       457            1,575
                Amortization of stock based compensation                                          210              144
                Provision for deferred income tax                                              (2,507)          (1,452)
                Restructuring expense                                                          12,981           10,368
                Changes in assets and liabilities:
                   Accounts receivable                                                         11,107           14,483
                   Inventories                                                                  8,347            2,098
                   Other current assets                                                           763            2,504
                   Other assets                                                                   366             (311)
                   Accounts payable                                                            (8,558)             998
                   Accounts payable-capital expenditures                                        4,105           (4,042)
                   Accrued expenses                                                            (2,126)           1,727
                   Accrued restructuring                                                       (3,514)          (2,523)
                   Income taxes payable                                                           349           (1,268)
                                                                                         -------------    -------------
                       Net cash provided by operating activities                               35,234           38,135
                                                                                         -------------    -------------
  Cash flows from investing activities:
         Capital expenditures                                                                 (12,229)          (4,729)
                                                                                         -------------    -------------
                       Net cash used in investing activities                                  (12,229)          (4,729)
                                                                                         -------------    -------------
  Cash flows from financing activities:
         Principal payments of long-term debt                                                 (31,984)          (3,172)
         Proceeds from common stock issued                                                      1,384              552
                                                                                         -------------    -------------
                       Net cash used in financing activities                                  (30,600)          (2,620)
                                                                                         -------------    -------------
  
  Increase (decrease) in cash and cash investments                                             (7,595)          30,786
  
  Cash and cash investments at beginning of period                                             31,993            1,207
                                                                                         -------------    -------------
  
  Cash and cash investments at end of year                                            $        24,398           31,993
                                                                                         =============    =============
  
  Free Cash Flow (1)                                                                  $        23,005           33,406
                                                                                         =============    =============
  </TABLE>
  <TABLE>
  <CAPTION>
  
  ------------------------------------------------------------------------------------------------------------------------------------
  
  (1)  Free Cash Flow reconciliation is as follows:
                                                                          FY 2003           FY2002           FY2001       3 Year Total
                                                                         -----------     -------------    -------------    -----------
  <S>                                                                     <C>               <C>              <C>           <C>
  A)     Net cash provided by operating activities                          35,234            38,135           30,693        104,062
  B)     Minus:  Capital Expenditures                                      (12,229)           (4,729)          (8,050)       (25,008)
                                                                         -----------     -------------    -------------    -----------
                                                                            23,005            33,406           22,643         79,054
                                                                         ===========     =============    =============    ===========
  ------------------------------------------------------------------------------------------------------------------------------------
  </TABLE>
  
  <PAGE>
                      CULP, INC. FINANCIAL INFORMATION RELEASE
                                 FINANCIAL ANALYSIS
                                   APRIL 27, 2003
  <TABLE>
  <CAPTION>
                                                       FISCAL 02                                          FISCAL 03
                                                     -------------      --------------  ------------  ------------ --------------
                                                        Q4                Q1                Q2            Q3          Q4
                                                     -------------      --------------  ------------  ------------ --------------
  <S>                                                <C>                <C>             <C>           <C>          <C>
  INVENTORIES
             Inventory turns                                  5.8                 4.9           4.9           4.8            5.7
  
  RECEIVABLES
             Days sales in receivables                         36                  34            36            34             33
  
  WORKING CAPITAL
             Current ratio                                    3.3                 3.4           3.0           3.1            2.9
             Operating working capital turnover (1)           4.5                 4.7           4.8           4.9            5.0
             Operating working capital (1)                $76,938             $70,762       $68,492       $64,063        $61,937
  
  PROPERTY, PLANT & EQUIPMENT
             Depreciation rate                               7.3%                6.4%          6.5%          6.2%           6.3%
             Percent property, plant &
               equipment are depreciated                    59.8%               60.6%         61.5%         61.0%          61.3%
             Capital expenditures                          $4,729  (2)         $3,070        $2,258        $3,748         $3,153
  
  LEVERAGE
             Total liabilities/equity                      141.6%              143.2%        160.8%        157.1%         127.8%
             Long-term debt/equity                          91.1%               99.5%        106.9%        104.4%          79.9%
             Long-term debt/capital employed                47.7%               49.9%         51.7%         51.1%          44.4%
             Long-term debt                              $108,484             $96,533       $96,558       $96,141        $76,500
  
  OTHER
             Book value per share                          $10.52               $8.45         $7.87         $8.02          $8.33
             Employees at quarter end                       3,010               2,900         2,568         2,534          2,463
             Sales per employee (annualized)             $143,930            $116,163      $122,272      $124,306       $144,421
             Capital employed                            $227,549            $193,540      $186,884      $188,216       $172,265
  </TABLE>
  
    (2) Working capital for this calculation is accounts receivable, inventories
        and accounts payable
    (1) Expenditures for entire year
  <PAGE>
  
                      CULP, INC. FINANCIAL INFORMATION RELEASE
                      SALES / GROSS PROFIT BY SEGMENT/DIVISION
   FOR THE THREE MONTHS AND TWELVE MONTHS ENDED APRIL 27, 2003 AND APRIL 28, 2002
  
                               (Amounts in thousands)
  
  <TABLE>
  <CAPTION>
                                                                            THREE MONTHS ENDED
                                                ----------------------------------------------------------------------------
  
                                                          Amounts                                 Percent of Total Sales
                                                -----------------------------                   ----------------------------
                                                 April 27,        April 28,        % Over
  Segment/Division Sales                            2003            2002          (Under)          2003            2002
  ------------------------------------------    -------------    ------------   -------------   ------------    ------------
  <S>                                        <C>                 <C>           <C>              <C>             <C>
  Upholstery Fabrics
      Culp Decorative Fabrics                $        36,927          42,973      (14.1)  %        40.9  %         39.6  %
      Culp Velvets/Prints                             26,757          34,594      (22.7)  %        29.7  %         31.9  %
      Culp Yarn                                        1,757           1,494       17.6   %         1.9  %          1.4  %
                                                -------------    ------------   ------------    -----------     -----------
                                                      65,441          79,061      (17.2)  %        72.5  %         72.9  %
  Mattress Ticking
       Culp Home Fashions                             24,786          29,336      (15.5)  %        27.5  %         27.1  %
                                                -------------    ------------   ------------    -----------     -----------
  
                                          *  $        90,227         108,397      (16.8)  %       100.0  %        100.0  %
                                                =============    ============   ============    ===========     ===========
  
  
  Segment Gross Profit                                                                              Gross Profit  Margin
  ------------------------------------------                                                    ----------------------------
  
  Upholstery Fabrics                         $        10,999          14,088      (21.9)  %        16.8  %         17.8  %
  Restructuring related charges                        1,008             619       62.8   %         1.5  %          0.8  %
                                                -------------    ------------   ------------    -----------     -----------
  Proforma Upholstery Gross Profit(1)                 12,007          14,707      (18.4)  %        18.3  %         18.6  %
  
  Mattress Ticking                                     5,189           8,930      (41.9)  %        20.9  %         30.4  %
                                                -------------    ------------   ------------    -----------     -----------
  
  Proforma Gross Profit                      $        17,196          23,637      (27.2)  %        19.1  %         21.8  %
                                                =============    ============   ============    ===========     ===========
  
  
  
                                                                            TWELVE MONTHS ENDED
                                                ----------------------------------------------------------------------------
  
                                                          Amounts                                 Percent of Total Sales
                                                -----------------------------                   ----------------------------
                                                 April 27,        April 28,        % Over
  Segment/Division Sales                            2003            2002          (Under)          2003            2002
  ------------------------------------------    -------------    ------------   -------------   ------------    ------------
  
  Upholstery Fabrics
      Culp Decorative Fabrics                $       137,251         152,505      (10.0)  %        40.5  %         39.9  %
      Culp Velvets/Prints                             96,000         119,119      (19.4)  %        28.3  %         31.2  %
      Culp Yarn                                        6,459           5,306       21.7   %         1.9  %          1.4  %
                                                -------------    ------------   ------------    -----------     -----------
                                                     239,710         276,930      (13.4)  %        70.7  %         72.5  %
  Mattress Ticking
       Culp Home Fashions                             99,270         104,948       (5.4)  %        29.3  %         27.5  %
                                                -------------    ------------   ------------    -----------     -----------
  
                                          *  $       338,980         381,878      (11.2)  %       100.0  %        100.0  %
                                                =============    ============   ============    ===========     ===========
  
  
  Segment Gross Profit                                                                             Gross Profit Margin
  ------------------------------------------                                                    ---------------------------
  
  Upholstery Fabrics                         $        34,737          33,649        3.2   %        14.5  %         12.2  %
  Restructuring related charges                        2,918           1,825       59.9   %         1.2  %          0.7  %
                                                -------------    ------------   ------------    -----------     -----------
  Proforma Upholstery Gross Profit(1)                 37,655          35,474        6.1   %        15.7  %         12.8  %
  
  Mattress Ticking                                    22,836          29,208      (21.8)  %        23.0  %         27.8  %
                                                -------------    ------------   ------------    -----------     -----------
  
  Proforma Gross Profit                      $        60,491          64,682       (6.5)  %        17.8  %         16.9  %
                                                =============    ============   ============    ===========     ===========
  
  
  * U.S.  sales were $80,145 and $94,761 for the fourth quarter of fiscal 2003 and
  fiscal 2002,  respectively;  and $299,102 and $328,378 for the twelve  months of
  fiscal 2003 and 2002,  respectively.  The percentage  decrease in U.S. sales was
  15.4% for the fourth quarter and a decrease of 8.9% for the twelve months.
  
  
  (1) Excludes  restructuring related charges of $1.0 million and $619,000 for the
  fourth quarter of fiscal 2003 and fiscal 2002,  respectively;  and excludes $2.9
  million  and $1.8  million  for the  twelve  months  of  fiscal  2003 and  2002,
  respectively. See gross profit totals per the proforma income statements on page
  7 and page 8.
  
  </TABLE>
  
  <PAGE>
                      CULP, INC. FINANCIAL INFORMATION RELEASE
                       INTERNATIONAL SALES BY GEOGRAPHIC AREA
   FOR THE THREE MONTHS AND TWELVE MONTHS ENDED APRIL 27, 2003 AND APRIL 28, 2002
  
  
                               (Amounts in thousands)
  <TABLE>
  <CAPTION>
  
                                                                            THREE MONTHS ENDED
                                                             --------------------------------------------------
  
                                                                        Amounts
                                                             -------------------------------
                                                               April 27,        April 28,         % Over
                      Geographic Area                            2003              2002           (Under)
    -----------------------------------------------------    --------------    -------------   --------------
  <S>                                                     <C>                  <C>             <C>
    North America (Excluding USA)                         $          7,753            9,010       (14.0)  %
    Far East & Asia                                                  1,178            2,289       (48.5)  %
    All other areas                                                  1,151            2,338       (50.8)  %
                                                             --------------    -------------   -------------
  
                                                          $         10,082           13,637       (26.1)  %
                                                             ==============    =============   =============
  
                                  Percent of total sales             11.2%            12.6%
  
  
                                                                            TWELVE MONTHS ENDED
                                                             --------------------------------------------------
  
                                                                        Amounts
                                                             -------------------------------
                                                               April 27,        April 28,         % Over
                      Geographic Area                            2003              2002           (Under)
    -----------------------------------------------------    --------------    -------------   --------------
    North America (Excluding USA)                         $         30,375           32,033        (5.2)  %
    Far East & Asia                                                  4,926           10,703       (54.0)  %
    All other areas                                                  4,577           10,765       (57.5)  %
                                                             --------------    -------------   -------------
  
                                                          $         39,878           53,501       (25.5)  %
                                                             ==============    =============   =============
  
                                  Percent of total sales             11.8%            14.0%
  
  
    International sales, and the percentage of total sales, for each of the last three fiscal years follows:
    fiscal 2000-$111,104 (23%); fiscal 2001 - $77,824 (19%) and fiscal 2002 - $53,501 (14%).
  
  </TABLE>
  
  <PAGE>
                                     CULP, INC.
                     PROFORMA CONSOLIDATED STATEMENTS OF INCOME
            FOR THE THREE MONTHS ENDED APRIL 27, 2003 AND APRIL 28, 2002
                  (Amounts in Thousands, Except for Per Share Data)
  <TABLE>
  <CAPTION>
  
                                                                              THREE MONTHS ENDED
                                                  ------------------------------------------------------------------------------------
                                                   As Reported                                        April 27, 2003
                                                    April 27,     % of                   % of          Proforma Net     % of
                                                      2003        Sales     Adjustments  Sales        of Adjustments    Sales
                                                  -------------- --------   ------------ -------      --------------  --------
  <S>                                          <C>                <C>        <C>         <C>          <C>             <c>
  Net sales                                    $         90,227   100.0%             0                       90,227    100.0%
  Cost of sales                                          74,039    82.1%        (1,008)   -1.1%  (2)         73,031     80.9%
                                                  -------------- --------   ------------ -------      --------------  --------
            Gross profit                                 16,188    17.9%        (1,008)   -1.1%              17,196     19.1%
  
  Selling, general and
    administrative expenses                              10,324    11.4%                                     10,324     11.4%
  Goodwill amortization                                       0     0.0%                                          0      0.0%
  Restructuring expense                                     (25)    0.0%            25     0.0%  (3)              0      0.0%
                                                  -------------- --------   ------------ -------      --------------  --------
            Income  (loss) from operations                5,889     6.5%          (983)   -1.1%               6,872      7.6%
  
  Interest expense                                        1,392     1.5%             0     0.0%               1,392      1.5%
  Interest income                                          (182)   -0.2%             0     0.0%                (182)    -0.2%
  Other expense (income), net                               160     0.2%             0     0.0%                 160      0.2%
                                                  -------------- --------   ------------ -------      --------------  --------
            Income (loss) before income taxes             4,519     5.0%          (983)   -1.1%               5,502      6.1%
  
  Income taxes  (1)                                       1,247    27.6%          (382)   38.9%               1,629     29.6%  (4)
                                                  -------------- --------   ------------ -------      --------------  --------
  Net income (loss)                            $          3,272     3.6%          (601)   -0.7%               3,873      4.3%
                                                  ============== ========   ============ =======      ==============  ========
  
  
  Net income (loss) per share-basic                       $0.28                 ($0.05)                       $0.34
  Net income (loss) per share-diluted                     $0.28                 ($0.05)                       $0.33
  Average shares outstanding-basic                       11,496                 11,496                       11,496
  Average shares outstanding-diluted                     11,616                 11,496                       11,616  (5)
  
  Notes:
   (1) Percent of net sales column for income taxes is calculated as a % of income (loss) before income taxes
   (2) The $1.0 million represents restructuring related charges for inventory markdowns and movement of equipment related to the
       Chattanooga plant closing
   (3) The net $25,000 credit represents the sale of manufacturing equipment that was previously written off to restructuring due
       to the Chattanooga plant closing
   (4) Pre-restructuring income tax rate was 29.6% and 34% for the fourth quarter of fiscal 2003 and 2002, respectively
   (5) Incremental shares of 120,000 and 309,000 for fiscal 2003 and fiscal 2002, respectively, are  included in fully diluted
       calculation
   (6) The $619,000 represents inventory write-downs incurred due to the exit of the wet printed flock upholstery fabric business
   (7) The $9.1 million represents restructuring charges related to the exit of the wet printed flock upholstery business as follows:
       $1.4 million in plant closing costs, and $7.6 million in non-cash write-downs to net realizable value of property, plant
       and equipment
  
  </TABLE>
  
  <PAGE>
                                     CULP, INC.
                     PROFORMA CONSOLIDATED STATEMENTS OF INCOME
            FOR THE THREE MONTHS ENDED APRIL 27, 2003 AND APRIL 28, 2002
                  (Amounts in Thousands, Except for Per Share Data)
  <TABLE>
  <CAPTION>
  
                                                           THREE MONTHS ENDED
                                                  ------------------------------------------------------------------------------------
  
                                                   As Reported                                      April 28, 2002            Proforma
                                                    April 28,     % of                    % of        Proforma Net    % of     % Over
                                                       2002       Sales     Adjustments   Sales     of Adjustments    Sales    (Under)
                                                   ---------- --------   ------------ -------      -------------- --------    --------
  <S>                                           <C>            <C>        <C>         <C>            <C>         <C>         <C>
  Net sales                                     $    108,397   100.0%             0                     108,397   100.0%       -16.8%
  Cost of sales                                       85,379    78.8%          (619)   -0.6%  (6)        84,760    78.2%       -13.8%
                                                   ---------- --------   ------------ -------      -------------- --------    --------
            Gross profit                              23,018    21.2%          (619)   -0.6%             23,637    21.8%       -27.2%
  
  Selling, general and
    administrative expenses                           14,236    13.1%                                    14,236    13.1%       -27.5%
  Goodwill amortization                                  349     0.3%          (349)   -0.3%                  0     0.0%         0.0%
  Restructuring expense                                9,065     8.4%        (9,065)   -8.4%  (7)             0     0.0%         0.0%
                                                   ---------- --------   ------------ -------      -------------- --------    --------
            Income  (loss) from operations              (632)   -0.6%       (10,033)   -9.3%              9,401     8.7%       -26.9%
  
  Interest expense                                     2,056     1.9%             0     0.0%              2,056     1.9%       -32.3%
  Interest income                                        (77)   -0.1%             0     0.0%                (77)   -0.1%       136.4%
  Other expense (income), net                            718     0.7%             0     0.0%                718     0.7%       -77.7%
                                                   ---------- --------   ------------ -------      -------------- --------    --------
            Income (loss) before income taxes         (3,329)   -3.1%       (10,033)   -9.3%              6,704     6.2%       -17.9%
  
  Income taxes  (1)                                   (1,744)   52.4%        (4,023)   40.1%              2,279    34.0%  (4)  -28.5%
                                                   ---------- --------   ------------ -------      -------------- --------    --------
  Net income (loss)                             $     (1,585)   -1.5%        (6,010)   -5.5%              4,425     4.1%       -12.5%
                                                   ========== ========   ============ =======      ============== ========    ========
  
  Net income (loss) per share-basic                   ($0.14)                ($0.53)                      $0.39
  Net income (loss) per share-diluted                 ($0.14)                ($0.53)                      $0.38
  Average shares outstanding-basic                    11,255                 11,255                      11,255
  Average shares outstanding-diluted                  11,255                 11,255                      11,564  (5)
  
  </TABLE>
  
  
  <PAGE>
  
                                     CULP, INC.
                  PROFORMA CONSOLIDATED STATEMENTS OF INCOME (LOSS)
            FOR THE TWELVE MONTHS ENDED APRIL 27, 2003 AND APRIL 28, 2002
                  (Amounts in Thousands, Except for Per Share Data)
  <TABLE>
  <CAPTION>
  
                                                                          TWELVE MONTHS ENDED
                                                      --------------------------------------------------------------------------------
                                                        As Reported                                       April 27, 2003
                                                         April 27,    % of                    % of         Proforma Net    % of
                                                          2003        Sales     Adjustments  Sales        of Adjustments   Sales
                                                      -------------- --------   ------------ -------      -------------- --------
  <S>                                              <C>                <C>        <C>         <C>          <C>             <C>
  Net sales                                        $        338,980   100.0%             0                     338,980     100.0%
  Cost of sales                                             281,407    83.0%        (2,918)   -0.9%  (2)       278,489      82.2%
                                                      -------------- --------   ------------ -------      -------------- --------
            Gross profit                                     57,573    17.0%        (2,918)   -0.9%             60,491      17.8%
  
  Selling, general and
    administrative expenses                                  40,040    11.8%             0     0.0%             40,040      11.8%
  Goodwill amortization                                           0     0.0%             0     0.0%                  0       0.0%
  Restructuring expense                                      12,981     3.8%       (12,981)   -3.8%  (3)             0       0.0%
                                                      -------------- --------   ------------ -------      -------------- --------
            Income  (loss) from operations                    4,552     1.3%       (15,899)   -4.7%             20,451       6.0%
  
  Interest expense                                            6,636     2.0%             0     0.0%              6,636       2.0%
  Interest income                                              (596)   -0.2%             0     0.0%               (596)     -0.2%
  Other expense (income), net                                   805     0.2%             0     0.0%                805       0.2%
                                                      -------------- --------   ------------ -------      -------------- --------
            Income (loss) before income taxes                (2,293)   -0.7%       (15,899)   -4.7%             13,606       4.0%
  
  Income taxes  (1)                                          (1,557)   67.9%        (6,185)   38.9%              4,628      34.0%  (4)
                                                      -------------- --------   ------------ -------      -------------- --------
  Income (loss) before cumulative effect of        $           (736)   -0.2%        (9,714)   -2.9%              8,978       2.6%
    accounting change
                                                      ============== ========   ============ =======      ============== ========
  
  Cumulative effect of accounting change,                   (24,151)               (24,151)                          0
    net of income taxes
                                                      --------------            ------------              --------------
  
            Net income (loss)                               (24,887)               (33,865)                      8,978
                                                      ==============            ============              ==============
  
  Basic loss per share:
            Loss before cumulative effect of
              accounting change                    $          (0.06)                ($0.85)                       0.78
            Cumulative effect of accounting change            (2.11)                  2.11                        0.00
                                                       --------------                                      --------------
  
            Net income (loss)                                 (2.17)                                              0.78
                                                       ==============                                      ==============
  
  Diluted loss per share:
            Loss before cumulative effect of
              accounting change                    $          (0.06)                ($0.85)                       0.77
            Cumulative effect of accounting change            (2.11)                  2.11                        0.00
                                                       --------------                                      --------------
  
            Net income (loss)                                 (2.17)                                              0.77
                                                       ==============                                      ==============
  
  Average shares outstanding-basic                           11,462                 11,462                      11,462
  Average shares outstanding-diluted                         11,462                 11,462                      11,712  (5)
  
  
  Notes:
   (1)  Percent of net sales column for income taxes is calculated as a % of income (loss) before income taxes
   (2)  The $2.9 million represents restructuring related charges for inventory markdowns and movement of equipment relating to
        the Chattanooga plant closing
   (3)  The $13.0 million represents restructuring charges for the shut down of the Chattanooga operation, $12.1 million, and the
        additional write-down of wet printed assets held for sale, $1.3 million offset by a restructuring credit of $354,000 for
        over accrued employee benefit and plant security costs
   (4)  Pre-restructuring income tax rate was 34% for the twelve months ended fiscal 2003 and 2002
   (5)  Incremental shares of 250,000 and 227,000 for fiscal 2003 and fiscal 2002, respectively, are included in fully diluted
        calculation
   (6)  The $1.8 million in restructuring related charges are as follows: $1.2 million in CDF and CYN charges; and $619,000 in
        wet printed flock charges
   (7)  The $10.4 million in restructuring charges are as follows: $1.3 million, relating to CDF and CYN; and $9.1 million relating
        to the wet printed flock business
  
  </TABLE>
  
  <PAGE>
                                      CULP, INC.
                  PROFORMA CONSOLIDATED STATEMENTS OF INCOME (LOSS)
            FOR THE TWELVE MONTHS ENDED APRIL 27, 2003 AND APRIL 28, 2002
                  (Amounts in Thousands, Except for Per Share Data)
  <TABLE>
  <CAPTION>
  
                                                                                   TWELVE MONTHS ENDED
                                                 -------------------------------------------------------------------------------------
                                                    As Reported                                      April 27, 2002          Proforma
                                                     April 28,    % of                    % of        Proforma Net    % of    % Over
                                                       2002       Sales     Adjustments  Sales      of Restructuring  Sales   (Under)
                                                   ------------- --------   ------------ -------     -------------- --------  --------
  <S>                                             <C>             <C>       <C>         <C>            <C>         <C>       <C>
  Net sales                                       $     381,878   100.0%             0                    381,878   100.0%     -11.2%
  Cost of sales                                         319,021    83.5%        (1,825)   -0.5%  (6)      317,196    83.1%     -12.2%
                                                   ------------- --------   ------------ -------     -------------- --------   -------
            Gross profit                                 62,857    16.5%        (1,825)   -0.5%            64,682    16.9%      -6.5%
  
  Selling, general and
    administrative expenses                              48,059    12.6%                   0.0%            48,059    12.6%     -16.7%
  Goodwill amortization                                   1,395     0.4%        (1,395)   -0.4%                 0     0.0%       0.0%
  Restructuring expense                                  10,368     2.7%       (10,368)   -2.7%  (7)            0     0.0%       0.0%
                                                   ------------- --------   ------------ -------     -------------- --------  --------
            Income  (loss) from operations                3,035     0.8%       (13,588)   -3.6%            16,623     4.4%      23.0%
  
  Interest expense                                        7,907     2.1%             0     0.0%             7,907     2.1%     -16.1%
  Interest income                                          (176)    0.0%             0     0.0%              (176)    0.0%     238.6%
  Other expense (income), net                             1,444     0.4%             0     0.0%             1,444     0.4%     -44.3%
                                                   ------------- --------   ------------ -------     -------------- --------  --------
            Income (loss) before income taxes            (6,140)   -1.6%       (13,588)   -3.6%             7,448     2.0%      82.7%
  
  Income taxes  (1)                                      (2,700)   44.0%        (5,232)   38.5%             2,532    34.0% (4)  82.8%
                                                   ------------- --------   ------------ -------     -------------- --------  --------
  Income (loss) before cumulative effect of       $      (3,440)   -0.9%        (8,356)   -2.2%             4,916     1.3%      82.6%
    accounting change
                                                   ============= ========   ============ =======     ============== ========  ========
  
  Cumulative effect of accounting change,
    net of income taxes                                       0
                                                   -------------
            Net income (loss)                            (3,440)
                                                   =============
  
  Basic loss per share:
            Loss before cumulative effect of
              accounting change                   $      ($0.31)
            Cumulative effect of accounting
              change                                       0.00
                                                   -------------            ------------              --------------
            Net income (loss)                            ($0.31)                ($0.74)                       $0.44
                                                   =============            ============              ==============
  
  Diluted loss per share:
            Loss before cumulative effect of
              accounting change                   $
            Cumulative effect of accounting
              change
                                                   -------------            ------------              --------------
            Net income (loss)                           ($0.31)                 ($0.74)                       $0.43
                                                   =============            ============              ==============
  
  Average shares outstanding-basic                      11,230                  11,230                      11,230
  Average shares outstanding-diluted                    11,230                  11,230                      11,457  (5)
  </TABLE>
  
  <PAGE>
  
                      CULP, INC. FINANCIAL INFORMATION RELEASE
                                 FINANCIAL NARRATIVE
       for the three and twelve months ended April 27, 2003 and April 28, 2002
  
  
  
  
  OVERVIEW
  
  Highlights for the fourth quarter and fiscal year ended April 27, 2003, include:
  
  o     Significant  improvement  in  earnings and margins in fiscal 2003 over the
        prior year (excluding cumulative effect of accounting change)
  o     Free  cash  flow (see  reconciliation  on page 3) was  $23.0  million  for
        fiscal 2003
  o     The company  further strengthened  its balance sheet with a pre-payment of
        $20 million in long-term debt during the fourth quarter
  o     Long-term  debt  (current  maturities of long-term  plus  long-term  debt)
        stood at $76.5  million at April 27, 2003, down $32.0  million from $108.5
        million at the end of fiscal 2002
  
       GENERAL -- For the fourth quarter of fiscal 2003, net sales decreased 16.8%
  to $90.2 million;  and the company reported net income of $3.3 million, or $0.28
  per  share  diluted,  versus a net loss of $1.6  million,  or  $0.14  per  share
  diluted,  in the fourth  quarter of fiscal  2002.  Excluding  restructuring  and
  related charges and credits, earnings for the fourth quarter of fiscal 2003 were
  $3.9 million, or $0.33 per share diluted,  versus net income of $4.4 million, or
  $0.38 per share  diluted,  in the  fourth  quarter  of  fiscal  2002,  excluding
  goodwill amortization.  For fiscal 2003 as a whole, net sales decreased 11.2% to
  $339.0 million;  and the company reported a net loss before cumulative effect of
  accounting  change of $736,000,  or $0.06 per share  diluted,  versus a net loss
  $3.4 million,  or $0.31 share  diluted,  a year ago.  Including  the  cumulative
  effect of  accounting  change,  the company  reported a loss of $2.17 per share.
  Excluding  restructuring and related charges and credits,  net income for fiscal
  2003 was $9.0 million, or $0.77 per share diluted, versus $4.9 million, or $0.43
  per share diluted, for fiscal 2002, excluding goodwill amortization.
  
  The company  reported  further  substantial  improvement in its balance sheet by
  reducing  long-term debt by $32 million  during fiscal 2003,  ending the quarter
  with $24.4 million in cash and cash investments.
  
       ADOPTION OF SFAS No. 142 -- As of April 29,  2002,  Culp  adopted  SFAS No.
  142,  "Goodwill and Other  Intangible  Assets." As a result the company recorded
  during  the first  quarter  of fiscal  2003 a  non-operating  non-cash  goodwill
  impairment  charge  of  $37.6  million  ($24.2  million  net of  taxes  of $13.4
  million),  or $2.11 per share diluted,  related to the goodwill  associated with
  the Culp Decorative Fabrics division.
  
        PRO FORMA (NON-GAAP) INFORMATION AND RECONCILATION
  
  a) Consolidated Statements of Income (Loss) -- The company has included,  within
  this financial  information release,  proforma income statements which reconcile
  the  reported   income   statements   with  proforma   results,   which  exclude
  restructuring  and  related  charges  and  credits,  goodwill  amortization  and
  cumulative effect of accounting change. See PROFORMA CONSOLIDATED  STATEMENTS OF
  INCOME  (LOSS)  on  pages 7 and 8 of this  financial  information  release.  The
  company has included  this  proforma  information  in order to show  operational
  performance  excluding  the effects of  restructuring  charges and credits,  and
  goodwill amortization.
  
  b) Free  Cash  Flow -- The  company  defines  free  cash  flow as cash flow from
  operations  less  capital  expenditures.  Free cash flow is used to measure  the
  company's  available  cash flow for potential debt repayment and other uses. See
  CONSOLIDATED   STATEMENTS   OF  CASH  FLOW  on  page  3  of  this   release  for
  reconciliation of free cash flow to net cash provided by operating activities.
  
  
       RESTRUCTURING  AND RELATED CHARGES -- The financial  results for the fourth
  quarter include a total of $1.0 million in restructuring related charges,  which
  were  classified in cost of sales,  and a $25,000  credit  classified  under the
  restructuring  expense line item. The  restructuring  related charges  represent
  primarily  equipment  relocation  costs  associated  with  the  closing  of  the
  Chattanooga,  Tennessee  facility within the Culp Decorative Fabrics division in
  October 2002. The net after tax effect of the restructuring  related charges and
  restructuring  credit was a  reduction  in net income per share by $0.05 for the
  fourth quarter of fiscal 2003.
  
  The Culp Decorative Fabrics (CDF) restructuring  actions are expected to improve
  gross  margins  within the division by reducing  fixed  manufacturing  costs and
  operating  fewer  facilities  at higher  utilization  rates.  The  initiative is
  projected to result in annual cost savings of approximately  $12 million,  which
  began in the third  quarter of fiscal  2003.  Approximately  $8 million of these
  savings relate to fixed  manufacturing costs and the remaining $4 million relate
  to variable  manufacturing  costs.  Realization  of the savings from lower fixed
  manufacturing costs was achieved upon the closing of the Chattanooga,  Tennessee
  operation  at the end of the  second  quarter.  However,  while  there  has been
  progress on savings of variable  manufacturing  costs,  the company  expects the
  potential  benefits  to be  realized  over the next  two to  three  quarters  as
  operations within CDF achieve higher levels of efficiency.
  
  The CDF  restructuring  resulted in total  restructuring  and related charges of
  $15.0 million  during fiscal 2003.  The company  currently  estimates  that this
  restructuring will result in minimal additional charges during fiscal 2004, most
  of which relate to equipment relocation costs.
  
  CHINA INITIATIVE
  
  On March 31, 2003,  the company  announced a strategic  marketing  initiative to
  establish manufacturing and distribution operations in China. The strategy is to
  link  the  company's  strong  customer   relationships,   design  expertise  and
  production  technology with low-cost fabric  manufacturers  in China in order to
  deliver enhanced value to its customers throughout the world.
  
  The company is currently in the process of establishing its operations in China.
  In May, a general manager for the China operations relocated to Shanghai, China,
  and is in the  process of hiring a small  number of  additional  personnel.  The
  company has applied for all the required  business  licenses and expects to have
  full  approval  by mid July  2003.  The  company  has signed a lease on a 65,000
  square-foot  facility  and the  building is  expected to be ready for  equipment
  installation and office occupancy by August 1, 2003. Along with the installation
  of finishing  equipment,  the company plans to begin doing business at the China
  facility during the second fiscal  quarter,  which is expected to include fabric
  inspection,   testing  and  distribution.   Limited  finishing   operations  are
  anticipated to begin in the third fiscal quarter.
  
  INCOME STATEMENT COMMENTS
  
       UPHOLSTERY FABRIC SEGMENT (See page 5 - Sales and Gross Profit by Segment)
  
       NET SALES -- Upholstery  fabric sales for the fourth quarter of fiscal 2003
  decreased 17.2% to $65.4 million (see sales by  Segment/Division on page 5). The
  decrease of $13.6 million is due to:
  
  (1)   The exit of the wet print flock business at the end of fiscal 2002, a
        product category that generated $3.9 million in sales for the fourth
        quarter of last year.  This factor accounted for approximately 30% of
        the overall decrease;
  (2)   Reduced demand from customers due to:  (a) general weakness in consumer
        demand for furniture as a result of the soft U.S. economy, weaker
        consumer confidence and the Iraq war uncertainties;  (b) increasing
        consumer preference for leather furniture; and (3) an increase in
        imported fabrics, both in "piece goods" and "cut and sewn kits."  The
        company estimates that these factors accounted for about half of the
        overall segment decrease in sales;
  (3)   The company's strategy to focus on improving the profitability of its
        sales mix by reducing or eliminating products generating little or no
        profit. In the Culp Decorative Fabrics division (or "CDF"), the
        company has discontinued about half of its finished goods
        stock-keeping units ("SKUs") over the last eighteen months, most of
        which were small volume items and were very costly to produce.  The
        company estimates this factor accounted for the remainder of the
        overall decrease (approximately 20%).
  
  Upholstery fabric sales to the company's top 30 North American customers for the
  fourth  quarter was $40.1  million,  down 10.4% from the fourth  quarter of last
  year.
  
       GROSS PROFIT - Gross profit for the fourth quarter of fiscal 2004 was $11.0
  million,  or 16.8%, versus $14.1 million, or 17.8%, for the same quarter of last
  year. In spite of significantly  lower sales, the upholstery fabric segment held
  gross margins  (excluding  restructuring  related charges in both periods) about
  the same,  or 18.3%,  for the fourth  quarter of this year versus  18.6% for the
  previous year. However,  due to the lower sales, gross profit dollars (excluding
  restructuring related charges) declined $2.7 million (See reconciliation on page
  5 of this release).  Approximately  two-thirds of the decrease  related to lower
  demand for velvet fabrics.
  
  
       MATTRESS TICKING SEGMENT (See page 5 - Sales and Gross Profit by Segment)
  
       NET SALES -- Mattress  ticking sales for the fourth  quarter of fiscal 2003
  decreased  15.5% to $24.8 million.  The sales decrease is principally due to the
  overall  weakness in consumer  demand for  mattresses.  Additional  factors that
  could be  affecting  ticking  demand from  bedding  manufacturers  are:  (a) the
  gradual  shift  by many  customers  to  "one-sided"  mattresses,  which  require
  one-third less mattress  ticking;  and (b) a growing consumer  preference at the
  higher end of the  bedding  market for  knitted  tickings  rather  than woven or
  printed tickings (although the company has begun to source knitted tickings from
  an outside supplier).
  
       GROSS PROFIT - For the fourth quarter of fiscal 2003,  the mattress  fabric
  segment (Culp Home Fashions or CHF) reported gross profit dollars and margins of
  $5.2 million and 20.9%, respectively,  compared with $8.9 million and 30.4 % for
  the same period last year.  The  principal  reason for the decline was the lower
  sales volume and reduced production schedules, which resulted in less absorption
  of fixed  costs.  Additionally,  there  are some  increasing  pricing  pressures
  related to the overall competitive situation in the bedding industry.
  
       SG&A  EXPENSES  -- SG&A  expenses of $10.3  million for the fourth  quarter
  declined $3.9 million, or 27.5%, from the prior year amount of $14.2 million. As
  a percent of net sales, SG&A expenses decreased to 11.4% from 13.1% the previous
  year. SG&A expenses in the fourth quarter  included a credit to bad debt expense
  in the amount of $59,000 due to a decrease in past due receivable balances. This
  amount  compares  with bad debt  expense  of $1.2  million  in the  year-earlier
  period.  Additionally,  SG&A  expenses for the fourth  quarter were lower due to
  lower management incentive compensation expense, and reduced expenses related to
  sales due to lower  sales  volume.  The  lower  incentive  compensation  expense
  reflects the fact that the entire  fiscal 2002 amount was recorded in the fourth
  quarter of that year since the company was  operating  at a net loss through the
  third quarter and therefore did not meet incentive targets.  However, the fiscal
  2003  expense  was  accrued  more  evenly  over the four  quarterly  periods  as
  incentive targets were realized.
  
       INTEREST  EXPENSE AND  INTEREST  INCOME -- Interest  expense for the fourth
  quarter  declined to $1.4 million from $2.1 million due to  significantly  lower
  borrowings  outstanding,  offset  somewhat by an  $187,500  increase in interest
  expense associated with the $75 million term loan.  Interest income increased to
  $182,000 from $77,000 due to significantly  higher average invested cash for the
  quarter as compared with the prior year.
  
       OTHER  EXPENSE  (INCOME),  NET -- Other  expense  (income)  for the  fourth
  quarter of fiscal 2003  totaled  $160,000  compared  with  $718,000 in the prior
  year. The decrease was principally due to lower legal and debt issue expenses.
  
       INCOME TAXES -- The  effective  tax rate (taxes as a  percentage  of pretax
  income  (loss)) for the fourth  quarter of fiscal 2003 was 27.6%,  compared with
  52.4% for the fourth  quarter of fiscal  2002.  The higher  rate in last  year's
  comparable  quarter reflects the increased tax benefits related to the company's
  loss in the U.S. resulting from the fourth quarter  restructuring charge for the
  exit of the wet printed  flock  product  line.  In  addition,  during the fourth
  quarter  of fiscal  2003,  the  company  reduced  estimated  accruals  no longer
  required for federal and state tax by $450,000.  As a result of this  reduction,
  the effective rate, excluding  restructuring and related charges in each period,
  was 29.6% for the fourth  quarter  of fiscal  2003  compared  with 34.0% for the
  fourth quarter of fiscal 2002.
  
       The  effective  tax rate for fiscal 2003 was 67.9%  compared with 44.0% for
  fiscal 2002. The higher rate on pretax loss in each period  reflects the benefit
  from the  reduction in  estimated  accruals  described  above as well as a lower
  proportion  of earnings in fiscal 2003 from the  company's  Canadian  subsidiary
  that is taxed at a lower  effective  rate.  Excluding the  cumulative  effect of
  accounting change and restructuring and related charges,  the effective tax rate
  for each of fiscal 2003 and fiscal 2002 was 34%.
  
  BALANCE SHEET COMMENTS
  
       CASH AND CASH INVESTMENTS -- Cash and cash investments as of April 27, 2003
  decreased  to $24.4  million  from  $32.0  million  at the end of  fiscal  2002,
  reflecting cash flow from  operations of $35.2 million for fiscal 2003,  capital
  expenditures  of $12.2  million,  debt  repayment  of $32.0  million  and  stock
  issuance from the sale of exercised stock options of $1.4 million.
  
       WORKING CAPITAL -- Accounts receivable as of April 27, 2003 decreased 25.6%
  from the  year-earlier  level,  due to  lower  sales  volumes,  the  decline  in
  international  sales and related  longer  credit  terms,  repayment  of past due
  balances,  and an increase in the number of customers  taking the cash  discount
  for shorter payment terms. Days sales  outstanding  totaled 33 days at April 27,
  2003 compared with 36 a year ago. Inventories at the close of the fourth quarter
  decreased 14.4% from a year ago. Inventory turns for the fourth quarter were 5.7
  versus 5.8 for the year-earlier period.  Operating working capital (comprised of
  accounts receivable,  inventory and accounts payable-trade) was $61.9 million at
  April 27, 2003, down from $76.9 million a year ago.
  
       PROPERTY, PLANT AND EQUIPMENT -- Capital spending for fiscal 2003 was $12.2
  million. This compares with $4.7 million in fiscal 2002. The larger projects for
  fiscal 2003 were the weaving modernization at the Pageland,  S.C. related to the
  Chattanooga  restructuring  and the weaving  expansion in the Culp Home Fashions
  division.  Depreciation  for the fourth  quarter and total year fiscal 2003 were
  $3.4 million and $14.0  million,  respectively.  For fiscal 2004,  the company's
  capital  expenditure budget is $8.0 million, of which $3.0 million is related to
  the  company's  China  initiative.  Depreciation  expense  for  fiscal  2004  is
  estimated to be comparable with fiscal 2003.
  
       INTANGIBLE  ASSETS -- As of April 27, 2003, $9.2 million in goodwill is the
  company's only intangible  asset.  The company adopted SFAS No. 142 on April 29,
  2002.  During  the  first  quarter  of fiscal  2003 the  company  recognized  an
  impairment  charge of $37.6 ($24.2  million net of taxes of $13.4  million) upon
  adoption of SFAS No. 142.
  
       LONG-TERM  DEBT - During  the  fourth  quarter,  the  company  reduced  its
  long-term debt (current  maturities plus long-term debt) by an additional  $20.0
  million by repaying  completely the remaining  Industrial  Revenue Bonds.  These
  repayments  left long-term  debt at $76.5 million at April 27, 2003,  down $32.0
  million from $108.5 million at April 28, 2002.  The company's  long-term debt to
  tangible  capitalization  (defined as long-term debt plus  shareholder's  equity
  minus  goodwill) ratio was 47.0% at fiscal 2003 year end versus 60.1% at the end
  of last year. The company was in compliance with all financial  covenants in its
  loan agreements as of April 27, 2003.
  
       All of the company's  remaining debt is totally  unsecured and is comprised
  of a $75 million  term loan,  with a fixed  interest  rate of 7.76%,  and a $1.5
  million,   non-interest   bearing  term  loan  with  the  Canadian   government.
  Additionally, the company has a $15.0 million revolving credit line with a bank,
  of which no  balance  is  outstanding  at April 27,  2003.  The first  scheduled
  principal  payment on the $75 million  term loan is due March 2006 in the amount
  of $11.0 million.  The Canadian government loan is repaid in annual installments
  of approximately $500,000 per year.
  
  
  FREE CASH FLOW COMMENTS
  
       Free cash flow (see  reconciliation  on page 3 of this  release)  was $23.0
  million for fiscal 2003  compared  with $33.4  million for fiscal 2002 and $22.6
  million  for fiscal  2001.  Over the past three  fiscal  years,  the company has
  generated  $79.0 million in free cash flow by improving  earnings,  lowering the
  investment in working capital and reducing capital spending.
  
  
  BUSINESS OUTLOOK
  
       For the first quarter of fiscal 2004, the company  expects a higher decline
  in consolidated  sales than the fourth quarter decrease of 16.8%. While mattress
  ticking sales are expected to decrease by  substantially  less than their fourth
  quarter  rate of 15.5%,  the  year-over-year  decline in  upholstery  fabrics is
  expected to be somewhat higher than the fourth quarter rate of 17.2%.  The first
  quarter of fiscal  2004 will end on August 3, 2003,  and will  include 14 weeks.
  Due to the lower expected sales levels, mostly in the upholstery fabric segment,
  the company  believes  gross  profit  dollars  are likely to show a  significant
  decrease from last year's first  quarter  levels of $13.9  million.  The company
  expects almost all of the lower gross profit will be attributable to lower sales
  in upholstery fabrics, resulting in significant production downtime,  unabsorbed
  fixed costs and higher unfavorable manufacturing variances. Slightly lower SG&A,
  interest,  and other  expenses are  expected to offset some of the  reduction in
  gross profit.  However,  with the significant  ongoing weakness in the furniture
  industry  and the lack of  visibility  into  the  quarter  to  date,  it is more
  difficult  to  estimate  the degree to which the  company's  profitability  will
  decrease. At this time, the company expects to report a net loss in the range of
  ($0.06)  to  ($0.13)  per  share,  depending  upon the  actual  level of  demand
  throughout the quarter.  The first quarter of the company's  fiscal year,  which
  includes the summer  months,  is the slowest  period for Culp and the  furniture
  industry due to scheduled plant vacation shutdowns. In addition, while there are
  some  indications  that consumer  confidence is improving with the resolution of
  the Iraq war,  passing of the tax bill and higher stock market  valuations,  the
  company  does  not yet see any  indications  of a  recovery  in the  demand  for
  furniture  and  upholstery  fabrics  over the  remainder  of the first  quarter.
  However, the company is optimistic that sales will start to pick up in the early
  fall, as is seasonally normal. With the restructuring  initiatives over the past
  year,  improved  creativity  in design and the  continued  progress  in reducing
  costs, the company believes it has an excellent opportunity to leverage earnings
  when sales regain momentum.
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text: --------------------------------------------------------------------------------
  
                                   UNITED STATES
                        SECURITIES AND EXCHANGE COMMISSION
                              Washington, D.C. 20549
  
                                     ---------
  
                                     Form 8-K
  
                                  CURRENT REPORT
  
                 Pursuant to Section 13 or 15(d) of the Securities
                               Exchange Act of 1934
  
                                   -------------
  
            Date of Report (Date of earliest event reported) June 9, 2003
  
                                     CULP, INC.
  
              (Exact name of registrant as specified in its charter)
  
           North Carolina                  0-12781                56-1001967
  (State or other jurisdiction of   (Commission File No.)       (IRS Employer
           incorporation)                                    Identification No.)
  
                               101 South Main Street
                         High Point, North Carolina  27260
                     (Address of principal executive offices)
                                  (336) 889-5161
               (Registrant's telephone number, including area code)
  
    ---------------------------------------------------------------------------
           (Former name or former address, if changed since last report)
  
  --------------------------------------------------------------------------------
  INDEX
                                        -----
  
                                                                       Page
                                                                       ----
  Item 7 - Exhibits                                                      3
  
  Item 9 - Regulation FD Disclosure (disclosing information              3
           pursuant to  Item 12, Results of Operations and
           Financial Condition)
  Signature                                                              4
  
  Exhibits
  Item 7 -- Exhibits
  
      99(a)  News Release dated June 9, 2003
  
      99(b)  Financial Information Release dated June 9, 2003
  
       Item 9 -- Regulation FD Disclosure (disclosing information pursuant to Item
  12, Results of Operations and Financial Condition)
  
  On June 9, 2003, Culp, Inc. (the "Registrant") issued a news release to announce
  its  financial  results for the quarter and year ended April 27, 2003.  The news
  release is attached hereto as Exhibit 99(a).
  
  Also on June 9, 2003, the Registrant  released a Financial  Information  Release
  containing   additional   financial   information  and  disclosures   about  the
  Registrant's fourth quarter and year ended April 27, 2003.
  
  Forward Looking Information. This Report and the exhibit attached hereto contain
  statements that may be deemed "forward-looking statements" within the meaning of
  the federal securities laws, including the Private Securities  Litigation Reform
  Act of 1995  (Section 27A  of the  Securities Act of 1933 and Section 27A of the
  Securities and Exchange Act of 1934). Such statements are inherently  subject to
  risks and  uncertainties.  Further,  Forward looking  statements are intended to
  speak only as of the date on which they are made. Forward-looking statements are
  statements that include projections, expectations or beliefs about future events
  of results or otherwise are not statements of historical  fact.  Such statements
  are often but not always  characterized  by  qualifying  words such as "expect,"
  "believe,"  "estimate," "plan" and "project" and their derivatives,  and include
  but are not limited to statements  about  expectations  for the company's future
  sales, gross profit margins,  SG&A or other expenses,  and earnings,  as well as
  any statements regarding the company's view of estimates of the company's future
  results by analysts.  Factors that could influence the matters discussed in such
  statements  include  the level of housing  starts and sales of  existing  homes,
  consumer   confidence,   trends  in  disposable  income,  and  general  economic
  conditions.  Decreases in these economic indicators could have a negative effect
  on the company's business and prospects.  Likewise, increases in interest rates,
  particularly  home mortgage rates, and increases in consumer debt or the general
  rate  of   inflation,   could  affect  the  company   adversely.   In  addition,
  strengthening  of the U. S.  dollar  against  other  currencies  could  make the
  company's products less competitive on the basis of price in markets outside the
  United States.  Also, economic and political  instability in international areas
  could affect the  company's  operations  or sources of goods in those areas,  as
  well as demand for the company's  products in  international  markets.  Finally,
  unanticipated delays or costs in executing restructuring actions could cause the
  cumulative  effect of  restructuring  actions to fail to meet the objectives set
  forth by  management.  Other factors that could affect the matters  discussed in
  forward looking  statements are included in the company's periodic reports filed
  with the Securities and Exchange Commission.
  SIGNATURE
  
  Pursuant  to the  requirements  of the  Securities  Exchange  Act of  1934,  the
  Registrant  has duly  caused  this  report  to be  signed  on its  behalf by the
  undersigned hereunto duly authorized.
  
                                      CULP, INC.
                                      (Registrant)
  
                                By:    Franklin N. Saxon
                                       ----------------------------
                                       Executive Vice President and
                                       Chief Financial Officer
  
  Dated:  June 9, 2003
  Exhibit 99(a)
  
                                   NEWS RELEASE
  
  Investor Contact:  Kathy J. Hardy         Media Contact:  Kenneth M. Ludwig
                     Corporate Secretary                    Senior Vice President,
                     336-888-6209                           Human Resources
                                                            336-889-5161
  
                   CULP ANNOUNCES FISCAL YEAR-END 2003 RESULTS
                          ------------------------------
              ANNUAL EARNINGS AND MARGIN IMPROVEMENT REFLECT BENEFITS
              OF RESTRUCTURING ACTIONS AND BALANCE SHEET MANAGEMENT
  
  HIGH  POINT,  N.C.  (June 9, 2003) - Culp,  Inc.  (NYSE:  CFI) today  reported
  financial and operating  results for the fourth  quarter and fiscal year ended
  April 27, 2003.  The highlights include:
  
  o     Significant  improvement  in earnings  and  margins  over the prior year
        (excluding cumulative effect of accounting change)
  o     Free cash flow of $23.0 million for fiscal 2003
  o     Further  balance sheet  improvement  with a $19.7 million  prepayment in
        long-term debt in the fourth quarter
  o     Long-term debt of $76.5 million,  down $32.0 million from $108.5 million
        at the end of fiscal 2002
  
        For the three months ended April 27, 2003,  net sales were $90.2 million
  compared  with  $108.4 million  a year  ago.  The  financial  results  for the
  fourth quarter  include a total of $1.0 million in  restructuring  and related
  charges,   all   of   which   reflect   previously   announced   restructuring
  initiatives.  Including  restructuring  and related  charges in both  periods,
  the company  reported net income of $3.3 million,  or $0.28 per diluted share,
  for the  fourth  quarter  of  fiscal  2003,  compared  with a net loss of $1.6
  million,  or $0.14 per share, in the fourth quarter of fiscal 2002.  Excluding
  restructuring  and related  charges,  the company  reported net income of $3.9
  million,  or $0.33 per diluted  share,  versus net income of $4.4 million,  or
  $0.38 per  diluted  share,  in the fourth  quarter of fiscal  2002,  excluding
  restructuring   and   related   charges,   and   goodwill   amortization.   (A
  reconciliation  to the net income and earnings per share  calculations  is set
  forth on Page 5.)
  
        For the fiscal  year ended April 27,  2003,  the  company  reported  net
  sales of $339.0  million,  compared  with  $381.9  million  for  fiscal  2002.
  Including  restructuring  charges  and the  cumulative  effect  of  accounting
  change,  the company reported a net loss for fiscal 2003 of $24.9 million,  or
  $2.17 per diluted  share,  compared with a loss of $3.4 million,  or $0.31 per
  diluted share, for fiscal 2002.  Excluding  restructuring  and related charges
  and the  cumulative  effect of accounting  change,  net income for fiscal 2003
  was $9.0 million,  or $0.77 per diluted  share.  This compares with net income
  of $4.9  million,  or $0.43 per diluted  share,  excluding  restructuring  and
  related charges, and goodwill amortization for the prior year.
  As  previously  announced,  due  to  the  adoption  of a new  accounting
  standard,  "Goodwill  and Other  Intangible  Assets,"  the company  recorded a
  non-cash goodwill  impairment  charge,  net of income taxes, of $24.2 million,
  or $2.11 per  diluted  share,  in the first  quarter  of 2003  related  to the
  goodwill  associated with its Culp Decorative  Fabrics ("CDF")  division.  The
  charge,  recorded as "cumulative  effect of accounting  change," has no effect
  on operating income or cash flow from operations.
  
        "Without question,  the fourth fiscal quarter was a continuation of what
  has been an extremely  challenging year for the furniture  industry," remarked
  Robert G. Culp,  III,  chief  executive  officer of Culp,  Inc. "Our sales for
  the quarter  reflect a  marketplace  that has been weighed down by the ongoing
  uncertainties in the economy,  rising  unemployment and distractions  over the
  war in  Iraq.  Overall,  net  sales  decreased  16.8%  with  sales  in our two
  segments,  upholstery  fabrics  and  mattress  ticking,  down 17.2% and 15.5%,
  respectively.  Recognizing  there  are  many  things  in this  environment  we
  cannot  control,  our  focus  over  the  past  year  has  been on  identifying
  opportunities   to   operationally   leverage   our  assets  and  become  more
  efficient.  We are already  realizing  the  benefits of our CDF  restructuring
  initiative  with the  reduction  in fixed  manufacturing  costs as a result of
  plant consolidations and the improvement in our operating efficiencies.
  
        "As a result of our solid execution,  Culp made significant  progress in
  meeting  our key  financial  objectives  for fiscal 2003 - to  strengthen  our
  balance sheet,  increase  margins,  improve the profitability of our sales mix
  and  generate  free cash flow,"  added  Culp.  "Notably,  we have  reduced our
  long-term debt by $32 million this year,  including the additional $20 million
  we pre-paid in the fourth  quarter.  Over the past three years we have reduced
  our debt by a total of $61 million,  and have  increased  our cash position by
  $23 million.  For the year,  free cash flow from  operations  was $23 million.
  (A  reconciliation  to  the  free  cash  flow  calculations  is set  forth  on
  Page 5.)  Over the past three  years,  we have  generated  over $79 million in
  free cash  flow,  further  strengthening  our  balance  sheet.  Our  financial
  position  remains sound and as of April 27, 2003,  our balance sheet  reflects
  $24 million in cash and cash  investments,  significant  decreases in leverage
  ratios,  and only  minimal  principal  payments on  long-term  debt for almost
  three years.  Having a solid financial  position during a difficult period for
  our industry not only provides a secure  foundation,  but also  reinforces our
  confidence in Culp's future.
  
        "Our  previously  announced  plans to establish  operations in China are
  underway.  We have recently  relocated a general  manager to Shanghai,  China,
  signed  a lease on our  facility,  and are in the  process  of  obtaining  the
  required  license  approvals to move forward.  Along with the  installation of
  finishing  equipment,  we plan to begin doing  business at the China  facility
  during the second fiscal quarter of 2004,  which is expected to include fabric
  inspection,  testing and  distribution.  Limited fabric  finishing  operations
  are anticipated to begin during the third fiscal quarter of 2004."
  
        Commenting on the business  outlook,  Culp added,  "The first quarter of
  our fiscal year,  which includes the summer months,  is the slowest period for
  Culp and the furniture  industry due to scheduled  plant  vacation  shutdowns.
  Historically,  the furniture  industry has rarely  experienced  any meaningful
  recovery  in the  summer  months.  Therefore,  we  expect  the  year-over-year
  decline in sales for the  upholstery  fabric  segment to be  somewhat  greater
  than the  decline  in the  fourth  quarter of fiscal  2003.  However,  we have
  recently seen improving  order rates for mattress  ticking and expect that the
  decline  in sales  for this  segment  will be  substantially  less than in the
  fourth  quarter of 2003.  Overall,  we expect the drop in  consolidated  sales
  for the first  quarter  to be  greater  than the  fourth  quarter  decline  of
  16.8%.  With the considerable  ongoing weakness in the furniture  industry and
  the lack of  visibility  into the  quarter to date,  it is more  difficult  to
  predict  the degree to which the  company's  profitability  will  decline.  At
  this time we expect to report a net loss in the range of  ($0.06)  to  ($0.13)
  per  share,  with  the  actual  results  depending  upon the  level of  demand
  throughout the quarter.  However,  we are  optimistic  that overall sales will
  start  to pick up in the  fall,  as is  seasonally  typical  in the  furniture
  industry.  With the  restructuring  initiatives over the past year,  excellent
  designs and the continued  progress in reducing costs and improving  operating
  efficiencies,  we believe  Culp is well  positioned  to take  advantage of our
  earnings  leverage  when  furniture  demand  picks  up and  our  sales  regain
  momentum."
  
        Culp,  Inc.  is one of  the  world's  largest  marketers  of  upholstery
  fabrics  for  furniture  and is a leading  marketer  of  mattress  ticking for
  bedding.  The  Company's  fabrics are used  principally  in the  production of
  residential and commercial furniture and bedding products.
  
        This release  contains  statements  that may be deemed  "forward-looking
  statements" within the meaning of the federal  securities laws,  including the
  Private  Securities   Litigation  Reform  Act  of  1995  (Section 27A  of  the
  Securities  Act of 1933 and Section 27A of the  Securities and Exchange Act of
  1934).  Such  statements  are inherently  subject to risks and  uncertainties.
  Further,  forward-looking statements are intended to speak only as of the date
  on  which  they are  made.  Forward-looking  statements  are  statements  that
  include  projections,  expectations  or beliefs about future events or results
  or otherwise are not  statements  of  historical  fact.  Such  statements  are
  often but not always  characterized  by  qualifying  words  such as  "expect,"
  "believe,"  "estimate,"  "plan"  and  "projec"  and  their  derivatives,  and
  include  but  are  not  limited  to  statements  about  expectations  for  the
  company's  future sales,  gross profit margins,  SG&A or other  expenses,  and
  earnings,  as well as any statements regarding the company's view of estimates
  of the  company's  future  results by analysts.  Factors that could  influence
  the matters  discussed in such statements  include the level of housing starts
  and  sales of  existing  homes,  consumer  confidence,  trends  in  disposable
  income,  and  general  economic   conditions.   Decreases  in  these  economic
  indicators  could  have a  negative  effect  on  the  company's  business  and
  prospects.  Likewise,  increases in interest rates, particularly home mortgage
  rates, and increases in consumer debt or the general rate of inflation,  could
  affect the company  adversely.  In addition,  strengthening of the U.S. dollar
  against other  currencies  could make the company's  products less competitive
  on the basis of price in markets  outside the United  States.  Also,  economic
  and political  instability in  international  areas could affect the company's
  operations  or  sources  of goods in those  areas,  as well as demand  for the
  company's products in international  markets.  Finally,  unanticipated  delays
  or costs in executing  restructuring actions could cause the cumulative effect
  of  restructuring  actions  to  fail to  meet  the  objectives  set  forth  by
  management.   Other  factors  that  could  affect  the  matters  discussed  in
  forward-looking  statements  are included in the  company's  periodic  reports
  filed with the Securities and Exchange Commission.
  CULP, INC.
                           Condensed Financial Highlights
  
                                                            Three Months Ended
                                                        -------------------------
                                                        April 27,      April 28,
                                                          2003           2002
                                                        -----------  ------------
  Net sales                                            $ 90,227,000  $108,397,000
                                                        ===========  ============
  
  Net income (loss)                                    $  3,272,000  $ (1,585,000)
  Net income (loss) per share:
     Basic                                             $       0.28  $      (0.14)
     Diluted                                           $       0.28  $      (0.14)
  Net income per share, diluted, excluding restructuring
    and related charges and goodwill amortization*     $       0.33  $       0.38
  Average shares outstanding:
     Basic                                               11,496,000    11,255,000
     Diluted                                             11,616,000    11,255,000
  
                                                              Year Ended
                                                        -------------------------
                                                        April 27,      April 28,
                                                          2003           2002
                                                       ------------  ------------
  Net sales                                            $338,980,000  $381,878,000
                                                       ============  ============
  Loss before cumulative effect of accounting change   $   (736,000) $ (3,440,000)
  Cumulative effect of accounting change, net of income
    taxes                                               (24,151,000)          -0-
                                                       ------------  ------------
  Net loss                                             $(24,887,000) $ (3,440,000)
                                                       ============  ============
  
  Basic and diluted loss per share:
    Loss before cumulative effect of accounting change $     (0.06) $      (0.31)
    Cumulative effect of accounting change                   (2.11)         0.00
                                                       ------------  ------------
    Net loss                                           $     (2.17) $      (0.31)
                                                       ============  ============
  
  Net income per share, diluted, excluding restructuring
    and related charges, goodwill amortization and
    cumulative effect of accounting change**           $      0.77  $       0.43
  
  Average shares outstanding:
    Basic                                               11,462,000    11,230,000
    Diluted                                             11,462,000    11,230,000
  
  * Excludes  restructuring  and related charges of $1.0 million  ($601,000,  or
     $0.05 per  diluted  share,  after  taxes) for the fourth  quarter of fiscal
     2003. Excludes  restructuring  charges related to the exit of the wet print
     flock  upholstery  business of $9.7  million  ($5.8  million,  or $0.51 per
     diluted  share,   after  taxes)  and  goodwill   amortization  of  $350,000
     ($231,000,  or $0.02 per diluted share, after taxes) for the fourth quarter
     of fiscal  2002.  The fiscal 2002 diluted net income per share uses average
     shares outstanding of 11,564,000.
  
  ** Excludes  cumulative effect of accounting  change,  net of income taxes, of
     $24.2  million  ($2.11  per  diluted share)   for  fiscal  2003.   Excludes
     restructuring and related charges of $15.9 million ($9.7 million,  or $0.85
     per diluted  share,  after taxes) for fiscal 2003.  Excludes  restructuring
     and related  charges of  $12.2 million  ($7.4  million,  or $0.66 per share
     diluted, after taxes) and goodwill amortization of $1.4 million  ($924,000,
     or $0.08 per diluted  share,  after taxes) for fiscal 2002. The diluted net
     income for fiscal 2003 and for fiscal 2002 uses average shares  outstanding
     of 11,712,000 and 11,457,000, respectively.
  CULP, INC.
  
     Reconciliation of Net Income (Loss) as Reported to Pro Forma Net Income
  Three Months Ended                   Year Ended
                                               -----------------------------   ---------------------------
                                               April 27,         April 28,        April 27,    April 28,
                                                 2003              2002             2003          2002
                                               -------------  --------------   ------------  -------------
  Net income (loss), as reported               $   3,272,000  $  (1,585,000)  $(24,887,000) $ (3,440,000)
  Cumulative effect of
    accounting change, net of income taxes              --            --        24,151,000        --
  Restructuring and related
    charges, net of income taxes                     601,000      5,779,000      9,714,000     7,435,000
  Goodwill amortization, net of income taxes           --           231,000           --         924,000
                                               -------------  --------------   ------------  -------------
  Pro forma net income                            $3,873,000    $ 4,425,000     $8,978,000  $  4,919,000
                                               =============  ==============   ============  =============
  
    Reconciliation of Net Income (Loss) Per Share as Reported to Pro Forma Net Income Per Share
  
  Diluted net income (loss) per
    share, as reported                            $     0.28    $    (0.14)   $   (2.17)    $   (0.31)
  Cumulative effect of
    accounting change, net of income taxes               --            --          2.11           --
  Restructuring and related
    charges, net of income taxes                        0.05          0.51         0.85          0.66
  Goodwill amortization, net of  income taxes            --           0.02                       0.08
  Effect of dilutive stock options                       --          (0.01)       (0.02)          --
                                               -------------  --------------   ------------  -------------
  Pro forma diluted net income
    per share                                     $     0.33    $     0.38    $    0.77     $    0.43
                                               =============  ==============   ============  =============
  Reconciliation of Cash Flow from Operations to Free Cash Flow
  
                                          Year Ended
                            --------------------------------------
                             April 27,     April 28,     April 29,   Three-Year
                               2003          2002          2001         Total
                            -----------  -----------   -----------  ------------
  Cash flow from operations $35,234,000  $38,135,000   $30,693,000  $104,062,000
  Capital expenditures      (12,229,000)  (4,729,000)   (8,050,000)  (25,008,000)
                            -----------  -----------   -----------  ------------
  Free cash flow            $23,005,000  $33,406,000   $22,643,000   $79,054,000
                            ===========  ===========   ===========  ============
  Exhibit 99(b)
  
                      CULP, INC. FINANCIAL INFORMATION RELEASE
                      CONSOLIDATED STATEMENTS OF INCOME (LOSS)
   FOR THE THREE MONTHS AND TWELVE MONTHS ENDED APRIL 27, 2003 AND APRIL 28, 2002
  
                  (Amounts in Thousands, Except for Per Share Data)
  THREE MONTHS ENDED
                                                                     -----------------------------------------------------------------
  
                                                                              Amounts                              Percent of Sales
                                                                     ------------------------                  ----------------------
                                                                     April 27,    April 28,      % Over
                                                                        2003         2002        (Under)          2003        2002
                                                                     -----------  -----------  --------------  -----------  ---------
  Net sales                                                      $       90,227      108,397      (16.8)  %      100.0  %    100.0  %
  Cost of sales                                                          74,039       85,379      (13.3)  %       82.1  %     78.8  %
                                                                     -----------  -----------  -------------  ------------  ---------
       Gross profit                                                      16,188       23,018      (29.7)  %       17.9  %     21.2  %
  
  Selling, general and
    administrative expenses                                              10,324       14,236      (27.5)  %       11.4  %     13.1  %
  Goodwill amortization                                                       0          349     (100.0)  %        0.0  %      0.3  %
  Restructuring expense                                                     (25)       9,065     (100.3)  %       (0.0) %      8.4  %
                                                                     -----------  -----------  -------------  ------------  ---------
       Income  (loss) from operations                                     5,889         (632)   1,031.8  %         6.5  %     (0.6) %
  
  Interest expense                                                        1,392        2,056      (32.3) %         1.5  %      1.9  %
  Interest income                                                          (182)         (77)     136.4  %        (0.2) %     (0.1) %
  Other expense (income), net                                               160          718      (77.0) %         0.2  %      0.7  %
                                                                     -----------  -----------  -------------  ------------  ---------
       Income (loss) before income taxes                                  4,519       (3,329)     235.7  %         5.0  %     (3.1) %
  
  Income taxes  *                                                         1,247       (1,744)     171.5  %        27.6  %     52.4  %
                                                                     -----------  -----------  -------------  ------------  ---------
  
       Net Income (loss)                                         $        3,272       (1,585)     306.4  %         3.6  %     (1.5) %
                                                                     ===========  ===========  =============  ============  =========
  
  Net income (loss) per share-basic                                       $0.28       ($0.14)     300.0  %
  Net income (loss) per share-diluted                                     $0.28       ($0.14)     300.0  %
  Net income per share, diluted, excluding restructuring                  $0.33        $0.38      (13.2) %
    and related charges and goodwill amortization (see proforma
    statement on page 7)
  Average shares outstanding-basic                                       11,496       11,255        2.1  %
  Average shares outstanding-diluted                                     11,616       11,255        3.2  %
  
                                                                                             TWELVE MONTHS ENDED
                                                                     -----------------------------------------------------------------
  
                                                                              Amounts                             Percent of Sales
                                                                     ------------------------                 ------------------------
                                                                      April 27,    April 28,      % Over
                                                                        2003         2002        (Under)         2003        2002
                                                                     -----------  -----------  -------------- ------------  ---------
  
  Net sales                                                       $     338,980      381,878      (11.2) %       100.0  %    100.0  %
  Cost of sales                                                         281,407      319,021      (11.8) %        83.0  %     83.5  %
                                                                     -----------  -----------  -------------  ------------  ---------
       Gross profit                                                      57,573       62,857       (8.4) %        17.0  %     16.5  %
  
  Selling, general and
    administrative expenses                                              40,040       48,059      (16.7) %        11.8  %     12.6  %
  Goodwill amortization                                                       0        1,395     (100.0) %         0.0  %      0.4  %
  Restructuring expense                                                  12,981       10,368       25.2  %         3.8  %      2.7  %
                                                                     -----------  -----------  -------------  ------------  ---------
       Income from operations                                             4,552        3,035       50.0  %         1.3  %      0.8  %
  
  Interest expense                                                        6,636        7,907      (16.1) %         2.0  %      2.1  %
  Interest income                                                          (596)        (176)     238.6  %        (0.2) %     (0.0) %
  Other expense (income), net                                               805        1,444      (44.3) %         0.2  %      0.4  %
                                                                     -----------  -----------  -------------  ------------  ---------
       Loss before income taxes                                          (2,293)      (6,140)      62.7  %        (0.7) %     (1.6) %
  
  Income taxes *                                                         (1,557)      (2,700)     (42.3) %        67.9  %     44.0  %
                                                                     -----------  -----------  -------------  ------------  ---------
  Loss before cumulative effect of accounting change                       (736)      (3,440)      78.6  %        (0.2) %     (0.9) %
                                                                     ===========  ===========
  
  Cumulative effect of accounting change, net of income taxes           (24,151)           0
                                                                     -----------  -----------
  
       Net loss                                                   $     (24,887)      (3,440)
                                                                     ===========  ===========
  
  Basic loss per share:
       Loss before cumulative effect of accounting change         $       (0.06)       (0.31)      79.0  %
       Cumulative effect of accounting change                             (2.11)        0.00     (100.0) %
                                                                     -----------  ----------- ----------
       Net loss                                                           (2.17)       (0.31)    (608.8) %
                                                                     ===========  =========== ==========
  
  Diluted loss per share:
       Loss before cumulative effect of accounting change         $       (0.06)       (0.31)      79.0  %
       Cumulative effect of accounting change                             (2.11)        0.00     (100.0) %
                                                                     -----------  ----------- ----------
       Net loss                                                           (2.17)       (0.31)    (608.8) %
                                                                     ===========  =========== ==========
  
  Net income per share, diluted, excluding restructuring                  $0.77        $0.43       79.1  %
    and related charges, goodwill amortization and cumulative
    effect of accounting change (see proforma statement on page 8)
  Average shares outstanding-basic                                       11,462       11,230        2.1  %
  Average shares outstanding-diluted                                     11,462       11,230        2.1  %
  
   *   Percent of sales column for income taxes is calculated as a % of income (loss) before income taxes.
  CULP, INC. FINANCIAL INFORMATION RELEASE
                             CONSOLIDATED BALANCE SHEETS
                          APRIL 27, 2003 AND APRIL 28, 2002
  
                               (Amounts in Thousands)
  Amounts
                                                       ---------------------------        Increase (Decrease)
                                                         April 27,       April 28     ---------------------------
                                                           2003            2002         Dollars      Percent
                                                       --------------   ----------    ----------    ------------
  Current assets
       Cash and cash investments                    $         24,398       31,993       (7,595)       (23.7) %
       Accounts receivable                                    32,259       43,366      (11,107)       (25.6) %
       Inventories                                            49,552       57,899       (8,347)       (14.4) %
       Other current assets                                   15,507       13,413        2,094         15.6  %
                                                       --------------   ----------    ----------    ------------
                       Total current assets                  121,716      146,671      (24,955)       (17.0) %
  
  Property, plant & equipment, net                            84,962       89,772       (4,810)        (5.4) %
  Goodwill                                                     9,240       47,083      (37,843)       (80.4) %
  Other assets                                                 2,235        4,187       (1,952)       (46.6) %
                                                       --------------   ----------    ----------    ------------
  
                       Total assets                 $        218,153      287,713      (69,560)       (24.2) %
                                                       ==============   ==========    ==========    ============
  
  Current liabilities
       Current maturities of long-term debt         $            500        1,483         (983)       (66.3) %
       Accounts payable                                       19,874       24,327       (4,453)       (18.3) %
       Accrued expenses                                       14,071       16,460       (2,389)       (14.5) %
       Accrued restructuring                                   7,743        2,445        5,298        216.7  %
       Income Taxes Payable                                      349            0          349        100.0  %
                                                       --------------   ----------    ----------    -----------
                       Total current liabilities              42,537       44,715       (2,178)        (4.9) %
  
  Long-term debt                                              76,000      107,001      (31,001)       (29.0) %
  
  Deferred income taxes                                        3,851       16,932      (13,081)       (77.3) %
                                                       --------------   ----------    ----------    -----------
                       Total liabilities                     122,388      168,648      (46,260)       (27.4) %
  
  Shareholders' equity                                        95,765      119,065      (23,300)       (19.6) %
                                                       --------------   ----------    ----------    -----------
  
                       Total liabilities and
                       shareholders' equity         $        218,153      287,713      (69,560)       (24.2) %
                                                       ==============   ==========    ==========    ===========
  
  Shares outstanding                                          11,491       11,320          171          1.5  %
                                                       ==============   ==========    ==========    ===========
  CULP, INC. FINANCIAL INFORMATION RELEASE
                        CONSOLIDATED STATEMENTS OF CASH FLOWS
            FOR THE TWELVE MONTHS ENDED APRIL 27, 2003 AND APRIL 26, 2002
  
                               (Amounts in Thousands)
  TWELVE MONTHS ENDED
                                                                                         ------------------------------
  
                                                                                                    Amounts
                                                                                         ------------------------------
                                                                                          April 27,          April 28,
                                                                                            2003               2002
                                                                                        -------------    -------------
  Cash flows from operating activities:
         Net loss                                                                     $       (24,887)          (3,440)
         Adjustments to reconcile net loss to net cash
            provided by operating activities:
                Cumulative effect of accounting change, net of income taxes                    24,151                0
                Depreciation                                                                   13,990           17,274
                Amortization of intangible and other assets                                       457            1,575
                Amortization of stock based compensation                                          210              144
                Provision for deferred income tax                                              (2,507)          (1,452)
                Restructuring expense                                                          12,981           10,368
                Changes in assets and liabilities:
                   Accounts receivable                                                         11,107           14,483
                   Inventories                                                                  8,347            2,098
                   Other current assets                                                           763            2,504
                   Other assets                                                                   366             (311)
                   Accounts payable                                                            (8,558)             998
                   Accounts payable-capital expenditures                                        4,105           (4,042)
                   Accrued expenses                                                            (2,126)           1,727
                   Accrued restructuring                                                       (3,514)          (2,523)
                   Income taxes payable                                                           349           (1,268)
                                                                                         -------------    -------------
                       Net cash provided by operating activities                               35,234           38,135
                                                                                         -------------    -------------
  Cash flows from investing activities:
         Capital expenditures                                                                 (12,229)          (4,729)
                                                                                         -------------    -------------
                       Net cash used in investing activities                                  (12,229)          (4,729)
                                                                                         -------------    -------------
  Cash flows from financing activities:
         Principal payments of long-term debt                                                 (31,984)          (3,172)
         Proceeds from common stock issued                                                      1,384              552
                                                                                         -------------    -------------
                       Net cash used in financing activities                                  (30,600)          (2,620)
                                                                                         -------------    -------------
  
  Increase (decrease) in cash and cash investments                                             (7,595)          30,786
  
  Cash and cash investments at beginning of period                                             31,993            1,207
                                                                                         -------------    -------------
  
  Cash and cash investments at end of year                                            $        24,398           31,993
                                                                                         =============    =============
  
  Free Cash Flow (1)                                                                  $        23,005           33,406
                                                                                         =============    =============
  ------------------------------------------------------------------------------------------------------------------------------------
  
  (1)  Free Cash Flow reconciliation is as follows:
                                                                          FY 2003           FY2002           FY2001       3 Year Total
                                                                         -----------     -------------    -------------    -----------
  A)     Net cash provided by operating activities                          35,234            38,135           30,693        104,062
  B)     Minus:  Capital Expenditures                                      (12,229)           (4,729)          (8,050)       (25,008)
                                                                         -----------     -------------    -------------    -----------
                                                                            23,005            33,406           22,643         79,054
                                                                         ===========     =============    =============    ===========
  ------------------------------------------------------------------------------------------------------------------------------------
  CULP, INC. FINANCIAL INFORMATION RELEASE
                                 FINANCIAL ANALYSIS
                                   APRIL 27, 2003
  FISCAL 02                                          FISCAL 03
                                                     -------------      --------------  ------------  ------------ --------------
                                                        Q4                Q1                Q2            Q3          Q4
                                                     -------------      --------------  ------------  ------------ --------------
  INVENTORIES
             Inventory turns                                  5.8                 4.9           4.9           4.8            5.7
  
  RECEIVABLES
             Days sales in receivables                         36                  34            36            34             33
  
  WORKING CAPITAL
             Current ratio                                    3.3                 3.4           3.0           3.1            2.9
             Operating working capital turnover (1)           4.5                 4.7           4.8           4.9            5.0
             Operating working capital (1)                $76,938             $70,762       $68,492       $64,063        $61,937
  
  PROPERTY, PLANT & EQUIPMENT
             Depreciation rate                               7.3%                6.4%          6.5%          6.2%           6.3%
             Percent property, plant &
               equipment are depreciated                    59.8%               60.6%         61.5%         61.0%          61.3%
             Capital expenditures                          $4,729  (2)         $3,070        $2,258        $3,748         $3,153
  
  LEVERAGE
             Total liabilities/equity                      141.6%              143.2%        160.8%        157.1%         127.8%
             Long-term debt/equity                          91.1%               99.5%        106.9%        104.4%          79.9%
             Long-term debt/capital employed                47.7%               49.9%         51.7%         51.1%          44.4%
             Long-term debt                              $108,484             $96,533       $96,558       $96,141        $76,500
  
  OTHER
             Book value per share                          $10.52               $8.45         $7.87         $8.02          $8.33
             Employees at quarter end                       3,010               2,900         2,568         2,534          2,463
             Sales per employee (annualized)             $143,930            $116,163      $122,272      $124,306       $144,421
             Capital employed                            $227,549            $193,540      $186,884      $188,216       $172,265
  (2) Working capital for this calculation is accounts receivable, inventories
        and accounts payable
    (1) Expenditures for entire year
  CULP, INC. FINANCIAL INFORMATION RELEASE
                      SALES / GROSS PROFIT BY SEGMENT/DIVISION
   FOR THE THREE MONTHS AND TWELVE MONTHS ENDED APRIL 27, 2003 AND APRIL 28, 2002
  
                               (Amounts in thousands)
  THREE MONTHS ENDED
                                                ----------------------------------------------------------------------------
  
                                                          Amounts                                 Percent of Total Sales
                                                -----------------------------                   ----------------------------
                                                 April 27,        April 28,        % Over
  Segment/Division Sales                            2003            2002          (Under)          2003            2002
  ------------------------------------------    -------------    ------------   -------------   ------------    ------------
  Upholstery Fabrics
      Culp Decorative Fabrics                $        36,927          42,973      (14.1)  %        40.9  %         39.6  %
      Culp Velvets/Prints                             26,757          34,594      (22.7)  %        29.7  %         31.9  %
      Culp Yarn                                        1,757           1,494       17.6   %         1.9  %          1.4  %
                                                -------------    ------------   ------------    -----------     -----------
                                                      65,441          79,061      (17.2)  %        72.5  %         72.9  %
  Mattress Ticking
       Culp Home Fashions                             24,786          29,336      (15.5)  %        27.5  %         27.1  %
                                                -------------    ------------   ------------    -----------     -----------
  
                                          *  $        90,227         108,397      (16.8)  %       100.0  %        100.0  %
                                                =============    ============   ============    ===========     ===========
  
  Segment Gross Profit                                                                              Gross Profit  Margin
  ------------------------------------------                                                    ----------------------------
  
  Upholstery Fabrics                         $        10,999          14,088      (21.9)  %        16.8  %         17.8  %
  Restructuring related charges                        1,008             619       62.8   %         1.5  %          0.8  %
                                                -------------    ------------   ------------    -----------     -----------
  Proforma Upholstery Gross Profit(1)                 12,007          14,707      (18.4)  %        18.3  %         18.6  %
  
  Mattress Ticking                                     5,189           8,930      (41.9)  %        20.9  %         30.4  %
                                                -------------    ------------   ------------    -----------     -----------
  
  Proforma Gross Profit                      $        17,196          23,637      (27.2)  %        19.1  %         21.8  %
                                                =============    ============   ============    ===========     ===========
  
                                                                            TWELVE MONTHS ENDED
                                                ----------------------------------------------------------------------------
  
                                                          Amounts                                 Percent of Total Sales
                                                -----------------------------                   ----------------------------
                                                 April 27,        April 28,        % Over
  Segment/Division Sales                            2003            2002          (Under)          2003            2002
  ------------------------------------------    -------------    ------------   -------------   ------------    ------------
  
  Upholstery Fabrics
      Culp Decorative Fabrics                $       137,251         152,505      (10.0)  %        40.5  %         39.9  %
      Culp Velvets/Prints                             96,000         119,119      (19.4)  %        28.3  %         31.2  %
      Culp Yarn                                        6,459           5,306       21.7   %         1.9  %          1.4  %
                                                -------------    ------------   ------------    -----------     -----------
                                                     239,710         276,930      (13.4)  %        70.7  %         72.5  %
  Mattress Ticking
       Culp Home Fashions                             99,270         104,948       (5.4)  %        29.3  %         27.5  %
                                                -------------    ------------   ------------    -----------     -----------
  
                                          *  $       338,980         381,878      (11.2)  %       100.0  %        100.0  %
                                                =============    ============   ============    ===========     ===========
  
  Segment Gross Profit                                                                             Gross Profit Margin
  ------------------------------------------                                                    ---------------------------
  
  Upholstery Fabrics                         $        34,737          33,649        3.2   %        14.5  %         12.2  %
  Restructuring related charges                        2,918           1,825       59.9   %         1.2  %          0.7  %
                                                -------------    ------------   ------------    -----------     -----------
  Proforma Upholstery Gross Profit(1)                 37,655          35,474        6.1   %        15.7  %         12.8  %
  
  Mattress Ticking                                    22,836          29,208      (21.8)  %        23.0  %         27.8  %
                                                -------------    ------------   ------------    -----------     -----------
  
  Proforma Gross Profit                      $        60,491          64,682       (6.5)  %        17.8  %         16.9  %
                                                =============    ============   ============    ===========     ===========
  
  * U.S.  sales were $80,145 and $94,761 for the fourth quarter of fiscal 2003 and
  fiscal 2002,  respectively;  and $299,102 and $328,378 for the twelve  months of
  fiscal 2003 and 2002,  respectively.  The percentage  decrease in U.S. sales was
  15.4% for the fourth quarter and a decrease of 8.9% for the twelve months.
  
  (1) Excludes  restructuring related charges of $1.0 million and $619,000 for the
  fourth quarter of fiscal 2003 and fiscal 2002,  respectively;  and excludes $2.9
  million  and $1.8  million  for the  twelve  months  of  fiscal  2003 and  2002,
  respectively. See gross profit totals per the proforma income statements on page
  7 and page 8.
  CULP, INC. FINANCIAL INFORMATION RELEASE
                       INTERNATIONAL SALES BY GEOGRAPHIC AREA
   FOR THE THREE MONTHS AND TWELVE MONTHS ENDED APRIL 27, 2003 AND APRIL 28, 2002
  
                               (Amounts in thousands)
  THREE MONTHS ENDED
                                                             --------------------------------------------------
  
                                                                        Amounts
                                                             -------------------------------
                                                               April 27,        April 28,         % Over
                      Geographic Area                            2003              2002           (Under)
    -----------------------------------------------------    --------------    -------------   --------------
  North America (Excluding USA)                         $          7,753            9,010       (14.0)  %
    Far East & Asia                                                  1,178            2,289       (48.5)  %
    All other areas                                                  1,151            2,338       (50.8)  %
                                                             --------------    -------------   -------------
  
                                                          $         10,082           13,637       (26.1)  %
                                                             ==============    =============   =============
  
                                  Percent of total sales             11.2%            12.6%
  
                                                                            TWELVE MONTHS ENDED
                                                             --------------------------------------------------
  
                                                                        Amounts
                                                             -------------------------------
                                                               April 27,        April 28,         % Over
                      Geographic Area                            2003              2002           (Under)
    -----------------------------------------------------    --------------    -------------   --------------
    North America (Excluding USA)                         $         30,375           32,033        (5.2)  %
    Far East & Asia                                                  4,926           10,703       (54.0)  %
    All other areas                                                  4,577           10,765       (57.5)  %
                                                             --------------    -------------   -------------
  
                                                          $         39,878           53,501       (25.5)  %
                                                             ==============    =============   =============
  
                                  Percent of total sales             11.8%            14.0%
  
    International sales, and the percentage of total sales, for each of the last three fiscal years follows:
    fiscal 2000-$111,104 (23%); fiscal 2001 - $77,824 (19%) and fiscal 2002 - $53,501 (14%).
  CULP, INC.
                     PROFORMA CONSOLIDATED STATEMENTS OF INCOME
            FOR THE THREE MONTHS ENDED APRIL 27, 2003 AND APRIL 28, 2002
                  (Amounts in Thousands, Except for Per Share Data)
  THREE MONTHS ENDED
                                                  ------------------------------------------------------------------------------------
                                                   As Reported                                        April 27, 2003
                                                    April 27,     % of                   % of          Proforma Net     % of
                                                      2003        Sales     Adjustments  Sales        of Adjustments    Sales
                                                  -------------- --------   ------------ -------      --------------  --------
  Net sales                                    $         90,227   100.0%             0                       90,227    100.0%
  Cost of sales                                          74,039    82.1%        (1,008)   -1.1%  (2)         73,031     80.9%
                                                  -------------- --------   ------------ -------      --------------  --------
            Gross profit                                 16,188    17.9%        (1,008)   -1.1%              17,196     19.1%
  
  Selling, general and
    administrative expenses                              10,324    11.4%                                     10,324     11.4%
  Goodwill amortization                                       0     0.0%                                          0      0.0%
  Restructuring expense                                     (25)    0.0%            25     0.0%  (3)              0      0.0%
                                                  -------------- --------   ------------ -------      --------------  --------
            Income  (loss) from operations                5,889     6.5%          (983)   -1.1%               6,872      7.6%
  
  Interest expense                                        1,392     1.5%             0     0.0%               1,392      1.5%
  Interest income                                          (182)   -0.2%             0     0.0%                (182)    -0.2%
  Other expense (income), net                               160     0.2%             0     0.0%                 160      0.2%
                                                  -------------- --------   ------------ -------      --------------  --------
            Income (loss) before income taxes             4,519     5.0%          (983)   -1.1%               5,502      6.1%
  
  Income taxes  (1)                                       1,247    27.6%          (382)   38.9%               1,629     29.6%  (4)
                                                  -------------- --------   ------------ -------      --------------  --------
  Net income (loss)                            $          3,272     3.6%          (601)   -0.7%               3,873      4.3%
                                                  ============== ========   ============ =======      ==============  ========
  
  Net income (loss) per share-basic                       $0.28                 ($0.05)                       $0.34
  Net income (loss) per share-diluted                     $0.28                 ($0.05)                       $0.33
  Average shares outstanding-basic                       11,496                 11,496                       11,496
  Average shares outstanding-diluted                     11,616                 11,496                       11,616  (5)
  
  Notes:
   (1) Percent of net sales column for income taxes is calculated as a % of income (loss) before income taxes
   (2) The $1.0 million represents restructuring related charges for inventory markdowns and movement of equipment related to the
       Chattanooga plant closing
   (3) The net $25,000 credit represents the sale of manufacturing equipment that was previously written off to restructuring due
       to the Chattanooga plant closing
   (4) Pre-restructuring income tax rate was 29.6% and 34% for the fourth quarter of fiscal 2003 and 2002, respectively
   (5) Incremental shares of 120,000 and 309,000 for fiscal 2003 and fiscal 2002, respectively, are  included in fully diluted
       calculation
   (6) The $619,000 represents inventory write-downs incurred due to the exit of the wet printed flock upholstery fabric business
   (7) The $9.1 million represents restructuring charges related to the exit of the wet printed flock upholstery business as follows:
       $1.4 million in plant closing costs, and $7.6 million in non-cash write-downs to net realizable value of property, plant
       and equipment
  CULP, INC.
                     PROFORMA CONSOLIDATED STATEMENTS OF INCOME
            FOR THE THREE MONTHS ENDED APRIL 27, 2003 AND APRIL 28, 2002
                  (Amounts in Thousands, Except for Per Share Data)
  THREE MONTHS ENDED
                                                  ------------------------------------------------------------------------------------
  
                                                   As Reported                                      April 28, 2002            Proforma
                                                    April 28,     % of                    % of        Proforma Net    % of     % Over
                                                       2002       Sales     Adjustments   Sales     of Adjustments    Sales    (Under)
                                                   ---------- --------   ------------ -------      -------------- --------    --------
  Net sales                                     $    108,397   100.0%             0                     108,397   100.0%       -16.8%
  Cost of sales                                       85,379    78.8%          (619)   -0.6%  (6)        84,760    78.2%       -13.8%
                                                   ---------- --------   ------------ -------      -------------- --------    --------
            Gross profit                              23,018    21.2%          (619)   -0.6%             23,637    21.8%       -27.2%
  
  Selling, general and
    administrative expenses                           14,236    13.1%                                    14,236    13.1%       -27.5%
  Goodwill amortization                                  349     0.3%          (349)   -0.3%                  0     0.0%         0.0%
  Restructuring expense                                9,065     8.4%        (9,065)   -8.4%  (7)             0     0.0%         0.0%
                                                   ---------- --------   ------------ -------      -------------- --------    --------
            Income  (loss) from operations              (632)   -0.6%       (10,033)   -9.3%              9,401     8.7%       -26.9%
  
  Interest expense                                     2,056     1.9%             0     0.0%              2,056     1.9%       -32.3%
  Interest income                                        (77)   -0.1%             0     0.0%                (77)   -0.1%       136.4%
  Other expense (income), net                            718     0.7%             0     0.0%                718     0.7%       -77.7%
                                                   ---------- --------   ------------ -------      -------------- --------    --------
            Income (loss) before income taxes         (3,329)   -3.1%       (10,033)   -9.3%              6,704     6.2%       -17.9%
  
  Income taxes  (1)                                   (1,744)   52.4%        (4,023)   40.1%              2,279    34.0%  (4)  -28.5%
                                                   ---------- --------   ------------ -------      -------------- --------    --------
  Net income (loss)                             $     (1,585)   -1.5%        (6,010)   -5.5%              4,425     4.1%       -12.5%
                                                   ========== ========   ============ =======      ============== ========    ========
  
  Net income (loss) per share-basic                   ($0.14)                ($0.53)                      $0.39
  Net income (loss) per share-diluted                 ($0.14)                ($0.53)                      $0.38
  Average shares outstanding-basic                    11,255                 11,255                      11,255
  Average shares outstanding-diluted                  11,255                 11,255                      11,564  (5)
  CULP, INC.
                  PROFORMA CONSOLIDATED STATEMENTS OF INCOME (LOSS)
            FOR THE TWELVE MONTHS ENDED APRIL 27, 2003 AND APRIL 28, 2002
                  (Amounts in Thousands, Except for Per Share Data)
  TWELVE MONTHS ENDED
                                                      --------------------------------------------------------------------------------
                                                        As Reported                                       April 27, 2003
                                                         April 27,    % of                    % of         Proforma Net    % of
                                                          2003        Sales     Adjustments  Sales        of Adjustments   Sales
                                                      -------------- --------   ------------ -------      -------------- --------
  Net sales                                        $        338,980   100.0%             0                     338,980     100.0%
  Cost of sales                                             281,407    83.0%        (2,918)   -0.9%  (2)       278,489      82.2%
                                                      -------------- --------   ------------ -------      -------------- --------
            Gross profit                                     57,573    17.0%        (2,918)   -0.9%             60,491      17.8%
  
  Selling, general and
    administrative expenses                                  40,040    11.8%             0     0.0%             40,040      11.8%
  Goodwill amortization                                           0     0.0%             0     0.0%                  0       0.0%
  Restructuring expense                                      12,981     3.8%       (12,981)   -3.8%  (3)             0       0.0%
                                                      -------------- --------   ------------ -------      -------------- --------
            Income  (loss) from operations                    4,552     1.3%       (15,899)   -4.7%             20,451       6.0%
  
  Interest expense                                            6,636     2.0%             0     0.0%              6,636       2.0%
  Interest income                                              (596)   -0.2%             0     0.0%               (596)     -0.2%
  Other expense (income), net                                   805     0.2%             0     0.0%                805       0.2%
                                                      -------------- --------   ------------ -------      -------------- --------
            Income (loss) before income taxes                (2,293)   -0.7%       (15,899)   -4.7%             13,606       4.0%
  
  Income taxes  (1)                                          (1,557)   67.9%        (6,185)   38.9%              4,628      34.0%  (4)
                                                      -------------- --------   ------------ -------      -------------- --------
  Income (loss) before cumulative effect of        $           (736)   -0.2%        (9,714)   -2.9%              8,978       2.6%
    accounting change
                                                      ============== ========   ============ =======      ============== ========
  
  Cumulative effect of accounting change,                   (24,151)               (24,151)                          0
    net of income taxes
                                                      --------------            ------------              --------------
  
            Net income (loss)                               (24,887)               (33,865)                      8,978
                                                      ==============            ============              ==============
  
  Basic loss per share:
            Loss before cumulative effect of
              accounting change                    $          (0.06)                ($0.85)                       0.78
            Cumulative effect of accounting change            (2.11)                  2.11                        0.00
                                                       --------------                                      --------------
  
            Net income (loss)                                 (2.17)                                              0.78
                                                       ==============                                      ==============
  
  Diluted loss per share:
            Loss before cumulative effect of
              accounting change                    $          (0.06)                ($0.85)                       0.77
            Cumulative effect of accounting change            (2.11)                  2.11                        0.00
                                                       --------------                                      --------------
  
            Net income (loss)                                 (2.17)                                              0.77
                                                       ==============                                      ==============
  
  Average shares outstanding-basic                           11,462                 11,462                      11,462
  Average shares outstanding-diluted                         11,462                 11,462                      11,712  (5)
  
  Notes:
   (1)  Percent of net sales column for income taxes is calculated as a % of income (loss) before income taxes
   (2)  The $2.9 million represents restructuring related charges for inventory markdowns and movement of equipment relating to
        the Chattanooga plant closing
   (3)  The $13.0 million represents restructuring charges for the shut down of the Chattanooga operation, $12.1 million, and the
        additional write-down of wet printed assets held for sale, $1.3 million offset by a restructuring credit of $354,000 for
        over accrued employee benefit and plant security costs
   (4)  Pre-restructuring income tax rate was 34% for the twelve months ended fiscal 2003 and 2002
   (5)  Incremental shares of 250,000 and 227,000 for fiscal 2003 and fiscal 2002, respectively, are included in fully diluted
        calculation
   (6)  The $1.8 million in restructuring related charges are as follows: $1.2 million in CDF and CYN charges; and $619,000 in
        wet printed flock charges
   (7)  The $10.4 million in restructuring charges are as follows: $1.3 million, relating to CDF and CYN; and $9.1 million relating
        to the wet printed flock business
  CULP, INC.
                  PROFORMA CONSOLIDATED STATEMENTS OF INCOME (LOSS)
            FOR THE TWELVE MONTHS ENDED APRIL 27, 2003 AND APRIL 28, 2002
                  (Amounts in Thousands, Except for Per Share Data)
  TWELVE MONTHS ENDED
                                                 -------------------------------------------------------------------------------------
                                                    As Reported                                      April 27, 2002          Proforma
                                                     April 28,    % of                    % of        Proforma Net    % of    % Over
                                                       2002       Sales     Adjustments  Sales      of Restructuring  Sales   (Under)
                                                   ------------- --------   ------------ -------     -------------- --------  --------
  Net sales                                       $     381,878   100.0%             0                    381,878   100.0%     -11.2%
  Cost of sales                                         319,021    83.5%        (1,825)   -0.5%  (6)      317,196    83.1%     -12.2%
                                                   ------------- --------   ------------ -------     -------------- --------   -------
            Gross profit                                 62,857    16.5%        (1,825)   -0.5%            64,682    16.9%      -6.5%
  
  Selling, general and
    administrative expenses                              48,059    12.6%                   0.0%            48,059    12.6%     -16.7%
  Goodwill amortization                                   1,395     0.4%        (1,395)   -0.4%                 0     0.0%       0.0%
  Restructuring expense                                  10,368     2.7%       (10,368)   -2.7%  (7)            0     0.0%       0.0%
                                                   ------------- --------   ------------ -------     -------------- --------  --------
            Income  (loss) from operations                3,035     0.8%       (13,588)   -3.6%            16,623     4.4%      23.0%
  
  Interest expense                                        7,907     2.1%             0     0.0%             7,907     2.1%     -16.1%
  Interest income                                          (176)    0.0%             0     0.0%              (176)    0.0%     238.6%
  Other expense (income), net                             1,444     0.4%             0     0.0%             1,444     0.4%     -44.3%
                                                   ------------- --------   ------------ -------     -------------- --------  --------
            Income (loss) before income taxes            (6,140)   -1.6%       (13,588)   -3.6%             7,448     2.0%      82.7%
  
  Income taxes  (1)                                      (2,700)   44.0%        (5,232)   38.5%             2,532    34.0% (4)  82.8%
                                                   ------------- --------   ------------ -------     -------------- --------  --------
  Income (loss) before cumulative effect of       $      (3,440)   -0.9%        (8,356)   -2.2%             4,916     1.3%      82.6%
    accounting change
                                                   ============= ========   ============ =======     ============== ========  ========
  
  Cumulative effect of accounting change,
    net of income taxes                                       0
                                                   -------------
            Net income (loss)                            (3,440)
                                                   =============
  
  Basic loss per share:
            Loss before cumulative effect of
              accounting change                   $      ($0.31)
            Cumulative effect of accounting
              change                                       0.00
                                                   -------------            ------------              --------------
            Net income (loss)                            ($0.31)                ($0.74)                       $0.44
                                                   =============            ============              ==============
  
  Diluted loss per share:
            Loss before cumulative effect of
              accounting change                   $
            Cumulative effect of accounting
              change
                                                   -------------            ------------              --------------
            Net income (loss)                           ($0.31)                 ($0.74)                       $0.43
                                                   =============            ============              ==============
  
  Average shares outstanding-basic                      11,230                  11,230                      11,230
  Average shares outstanding-diluted                    11,230                  11,230                      11,457  (5)
  CULP, INC. FINANCIAL INFORMATION RELEASE
                                 FINANCIAL NARRATIVE
       for the three and twelve months ended April 27, 2003 and April 28, 2002
  
  OVERVIEW
  
  Highlights for the fourth quarter and fiscal year ended April 27, 2003, include:
  
  o     Significant  improvement  in  earnings and margins in fiscal 2003 over the
        prior year (excluding cumulative effect of accounting change)
  o     Free  cash  flow (see  reconciliation  on page 3) was  $23.0  million  for
        fiscal 2003
  o     The company  further strengthened  its balance sheet with a pre-payment of
        $20 million in long-term debt during the fourth quarter
  o     Long-term  debt  (current  maturities of long-term  plus  long-term  debt)
        stood at $76.5  million at April 27, 2003, down $32.0  million from $108.5
        million at the end of fiscal 2002
  
       GENERAL -- For the fourth quarter of fiscal 2003, net sales decreased 16.8%
  to $90.2 million;  and the company reported net income of $3.3 million, or $0.28
  per  share  diluted,  versus a net loss of $1.6  million,  or  $0.14  per  share
  diluted,  in the fourth  quarter of fiscal  2002.  Excluding  restructuring  and
  related charges and credits, earnings for the fourth quarter of fiscal 2003 were
  $3.9 million, or $0.33 per share diluted,  versus net income of $4.4 million, or
  $0.38 per share  diluted,  in the  fourth  quarter  of  fiscal  2002,  excluding
  goodwill amortization.  For fiscal 2003 as a whole, net sales decreased 11.2% to
  $339.0 million;  and the company reported a net loss before cumulative effect of
  accounting  change of $736,000,  or $0.06 per share  diluted,  versus a net loss
  $3.4 million,  or $0.31 share  diluted,  a year ago.  Including  the  cumulative
  effect of  accounting  change,  the company  reported a loss of $2.17 per share.
  Excluding  restructuring and related charges and credits,  net income for fiscal
  2003 was $9.0 million, or $0.77 per share diluted, versus $4.9 million, or $0.43
  per share diluted, for fiscal 2002, excluding goodwill amortization.
  
  The company  reported  further  substantial  improvement in its balance sheet by
  reducing  long-term debt by $32 million  during fiscal 2003,  ending the quarter
  with $24.4 million in cash and cash investments.
  
       ADOPTION OF SFAS No. 142 -- As of April 29,  2002,  Culp  adopted  SFAS No.
  142,  "Goodwill and Other  Intangible  Assets." As a result the company recorded
  during  the first  quarter  of fiscal  2003 a  non-operating  non-cash  goodwill
  impairment  charge  of  $37.6  million  ($24.2  million  net of  taxes  of $13.4
  million),  or $2.11 per share diluted,  related to the goodwill  associated with
  the Culp Decorative Fabrics division.
  
        PRO FORMA (NON-GAAP) INFORMATION AND RECONCILATION
  
  a) Consolidated Statements of Income (Loss) -- The company has included,  within
  this financial  information release,  proforma income statements which reconcile
  the  reported   income   statements   with  proforma   results,   which  exclude
  restructuring  and  related  charges  and  credits,  goodwill  amortization  and
  cumulative effect of accounting change. See PROFORMA CONSOLIDATED  STATEMENTS OF
  INCOME  (LOSS)  on  pages 7 and 8 of this  financial  information  release.  The
  company has included  this  proforma  information  in order to show  operational
  performance  excluding  the effects of  restructuring  charges and credits,  and
  goodwill amortization.
  
  b) Free  Cash  Flow -- The  company  defines  free  cash  flow as cash flow from
  operations  less  capital  expenditures.  Free cash flow is used to measure  the
  company's  available  cash flow for potential debt repayment and other uses. See
  CONSOLIDATED   STATEMENTS   OF  CASH  FLOW  on  page  3  of  this   release  for
  reconciliation of free cash flow to net cash provided by operating activities.
  
       RESTRUCTURING  AND RELATED CHARGES -- The financial  results for the fourth
  quarter include a total of $1.0 million in restructuring related charges,  which
  were  classified in cost of sales,  and a $25,000  credit  classified  under the
  restructuring  expense line item. The  restructuring  related charges  represent
  primarily  equipment  relocation  costs  associated  with  the  closing  of  the
  Chattanooga,  Tennessee  facility within the Culp Decorative Fabrics division in
  October 2002. The net after tax effect of the restructuring  related charges and
  restructuring  credit was a  reduction  in net income per share by $0.05 for the
  fourth quarter of fiscal 2003.
  
  The Culp Decorative Fabrics (CDF) restructuring  actions are expected to improve
  gross  margins  within the division by reducing  fixed  manufacturing  costs and
  operating  fewer  facilities  at higher  utilization  rates.  The  initiative is
  projected to result in annual cost savings of approximately  $12 million,  which
  began in the third  quarter of fiscal  2003.  Approximately  $8 million of these
  savings relate to fixed  manufacturing costs and the remaining $4 million relate
  to variable  manufacturing  costs.  Realization  of the savings from lower fixed
  manufacturing costs was achieved upon the closing of the Chattanooga,  Tennessee
  operation  at the end of the  second  quarter.  However,  while  there  has been
  progress on savings of variable  manufacturing  costs,  the company  expects the
  potential  benefits  to be  realized  over the next  two to  three  quarters  as
  operations within CDF achieve higher levels of efficiency.
  
  The CDF  restructuring  resulted in total  restructuring  and related charges of
  $15.0 million  during fiscal 2003.  The company  currently  estimates  that this
  restructuring will result in minimal additional charges during fiscal 2004, most
  of which relate to equipment relocation costs.
  
  CHINA INITIATIVE
  
  On March 31, 2003,  the company  announced a strategic  marketing  initiative to
  establish manufacturing and distribution operations in China. The strategy is to
  link  the  company's  strong  customer   relationships,   design  expertise  and
  production  technology with low-cost fabric  manufacturers  in China in order to
  deliver enhanced value to its customers throughout the world.
  
  The company is currently in the process of establishing its operations in China.
  In May, a general manager for the China operations relocated to Shanghai, China,
  and is in the  process of hiring a small  number of  additional  personnel.  The
  company has applied for all the required  business  licenses and expects to have
  full  approval  by mid July  2003.  The  company  has signed a lease on a 65,000
  square-foot  facility  and the  building is  expected to be ready for  equipment
  installation and office occupancy by August 1, 2003. Along with the installation
  of finishing  equipment,  the company plans to begin doing business at the China
  facility during the second fiscal  quarter,  which is expected to include fabric
  inspection,   testing  and  distribution.   Limited  finishing   operations  are
  anticipated to begin in the third fiscal quarter.
  
  INCOME STATEMENT COMMENTS
  
       UPHOLSTERY FABRIC SEGMENT (See page 5 - Sales and Gross Profit by Segment)
  
       NET SALES -- Upholstery  fabric sales for the fourth quarter of fiscal 2003
  decreased 17.2% to $65.4 million (see sales by  Segment/Division on page 5). The
  decrease of $13.6 million is due to:
  
  (1)   The exit of the wet print flock business at the end of fiscal 2002, a
        product category that generated $3.9 million in sales for the fourth
        quarter of last year.  This factor accounted for approximately 30% of
        the overall decrease;
  (2)   Reduced demand from customers due to:  (a) general weakness in consumer
        demand for furniture as a result of the soft U.S. economy, weaker
        consumer confidence and the Iraq war uncertainties;  (b) increasing
        consumer preference for leather furniture; and (3) an increase in
        imported fabrics, both in "piece goods" and "cut and sewn kits."  The
        company estimates that these factors accounted for about half of the
        overall segment decrease in sales;
  (3)   The company's strategy to focus on improving the profitability of its
        sales mix by reducing or eliminating products generating little or no
        profit. In the Culp Decorative Fabrics division (or "CDF"), the
        company has discontinued about half of its finished goods
        stock-keeping units ("SKUs") over the last eighteen months, most of
        which were small volume items and were very costly to produce.  The
        company estimates this factor accounted for the remainder of the
        overall decrease (approximately 20%).
  
  Upholstery fabric sales to the company's top 30 North American customers for the
  fourth  quarter was $40.1  million,  down 10.4% from the fourth  quarter of last
  year.
  
       GROSS PROFIT - Gross profit for the fourth quarter of fiscal 2004 was $11.0
  million,  or 16.8%, versus $14.1 million, or 17.8%, for the same quarter of last
  year. In spite of significantly  lower sales, the upholstery fabric segment held
  gross margins  (excluding  restructuring  related charges in both periods) about
  the same,  or 18.3%,  for the fourth  quarter of this year versus  18.6% for the
  previous year. However,  due to the lower sales, gross profit dollars (excluding
  restructuring related charges) declined $2.7 million (See reconciliation on page
  5 of this release).  Approximately  two-thirds of the decrease  related to lower
  demand for velvet fabrics.
  
       MATTRESS TICKING SEGMENT (See page 5 - Sales and Gross Profit by Segment)
  
       NET SALES -- Mattress  ticking sales for the fourth  quarter of fiscal 2003
  decreased  15.5% to $24.8 million.  The sales decrease is principally due to the
  overall  weakness in consumer  demand for  mattresses.  Additional  factors that
  could be  affecting  ticking  demand from  bedding  manufacturers  are:  (a) the
  gradual  shift  by many  customers  to  "one-sided"  mattresses,  which  require
  one-third less mattress  ticking;  and (b) a growing consumer  preference at the
  higher end of the  bedding  market for  knitted  tickings  rather  than woven or
  printed tickings (although the company has begun to source knitted tickings from
  an outside supplier).
  
       GROSS PROFIT - For the fourth quarter of fiscal 2003,  the mattress  fabric
  segment (Culp Home Fashions or CHF) reported gross profit dollars and margins of
  $5.2 million and 20.9%, respectively,  compared with $8.9 million and 30.4 % for
  the same period last year.  The  principal  reason for the decline was the lower
  sales volume and reduced production schedules, which resulted in less absorption
  of fixed  costs.  Additionally,  there  are some  increasing  pricing  pressures
  related to the overall competitive situation in the bedding industry.
  
       SG&A  EXPENSES  -- SG&A  expenses of $10.3  million for the fourth  quarter
  declined $3.9 million, or 27.5%, from the prior year amount of $14.2 million. As
  a percent of net sales, SG&A expenses decreased to 11.4% from 13.1% the previous
  year. SG&A expenses in the fourth quarter  included a credit to bad debt expense
  in the amount of $59,000 due to a decrease in past due receivable balances. This
  amount  compares  with bad debt  expense  of $1.2  million  in the  year-earlier
  period.  Additionally,  SG&A  expenses for the fourth  quarter were lower due to
  lower management incentive compensation expense, and reduced expenses related to
  sales due to lower  sales  volume.  The  lower  incentive  compensation  expense
  reflects the fact that the entire  fiscal 2002 amount was recorded in the fourth
  quarter of that year since the company was  operating  at a net loss through the
  third quarter and therefore did not meet incentive targets.  However, the fiscal
  2003  expense  was  accrued  more  evenly  over the four  quarterly  periods  as
  incentive targets were realized.
  
       INTEREST  EXPENSE AND  INTEREST  INCOME -- Interest  expense for the fourth
  quarter  declined to $1.4 million from $2.1 million due to  significantly  lower
  borrowings  outstanding,  offset  somewhat by an  $187,500  increase in interest
  expense associated with the $75 million term loan.  Interest income increased to
  $182,000 from $77,000 due to significantly  higher average invested cash for the
  quarter as compared with the prior year.
  
       OTHER  EXPENSE  (INCOME),  NET -- Other  expense  (income)  for the  fourth
  quarter of fiscal 2003  totaled  $160,000  compared  with  $718,000 in the prior
  year. The decrease was principally due to lower legal and debt issue expenses.
  
       INCOME TAXES -- The  effective  tax rate (taxes as a  percentage  of pretax
  income  (loss)) for the fourth  quarter of fiscal 2003 was 27.6%,  compared with
  52.4% for the fourth  quarter of fiscal  2002.  The higher  rate in last  year's
  comparable  quarter reflects the increased tax benefits related to the company's
  loss in the U.S. resulting from the fourth quarter  restructuring charge for the
  exit of the wet printed  flock  product  line.  In  addition,  during the fourth
  quarter  of fiscal  2003,  the  company  reduced  estimated  accruals  no longer
  required for federal and state tax by $450,000.  As a result of this  reduction,
  the effective rate, excluding  restructuring and related charges in each period,
  was 29.6% for the fourth  quarter  of fiscal  2003  compared  with 34.0% for the
  fourth quarter of fiscal 2002.
  
       The  effective  tax rate for fiscal 2003 was 67.9%  compared with 44.0% for
  fiscal 2002. The higher rate on pretax loss in each period  reflects the benefit
  from the  reduction in  estimated  accruals  described  above as well as a lower
  proportion  of earnings in fiscal 2003 from the  company's  Canadian  subsidiary
  that is taxed at a lower  effective  rate.  Excluding the  cumulative  effect of
  accounting change and restructuring and related charges,  the effective tax rate
  for each of fiscal 2003 and fiscal 2002 was 34%.
  
  BALANCE SHEET COMMENTS
  
       CASH AND CASH INVESTMENTS -- Cash and cash investments as of April 27, 2003
  decreased  to $24.4  million  from  $32.0  million  at the end of  fiscal  2002,
  reflecting cash flow from  operations of $35.2 million for fiscal 2003,  capital
  expenditures  of $12.2  million,  debt  repayment  of $32.0  million  and  stock
  issuance from the sale of exercised stock options of $1.4 million.
  
       WORKING CAPITAL -- Accounts receivable as of April 27, 2003 decreased 25.6%
  from the  year-earlier  level,  due to  lower  sales  volumes,  the  decline  in
  international  sales and related  longer  credit  terms,  repayment  of past due
  balances,  and an increase in the number of customers  taking the cash  discount
  for shorter payment terms. Days sales  outstanding  totaled 33 days at April 27,
  2003 compared with 36 a year ago. Inventories at the close of the fourth quarter
  decreased 14.4% from a year ago. Inventory turns for the fourth quarter were 5.7
  versus 5.8 for the year-earlier period.  Operating working capital (comprised of
  accounts receivable,  inventory and accounts payable-trade) was $61.9 million at
  April 27, 2003, down from $76.9 million a year ago.
  
       PROPERTY, PLANT AND EQUIPMENT -- Capital spending for fiscal 2003 was $12.2
  million. This compares with $4.7 million in fiscal 2002. The larger projects for
  fiscal 2003 were the weaving modernization at the Pageland,  S.C. related to the
  Chattanooga  restructuring  and the weaving  expansion in the Culp Home Fashions
  division.  Depreciation  for the fourth  quarter and total year fiscal 2003 were
  $3.4 million and $14.0  million,  respectively.  For fiscal 2004,  the company's
  capital  expenditure budget is $8.0 million, of which $3.0 million is related to
  the  company's  China  initiative.  Depreciation  expense  for  fiscal  2004  is
  estimated to be comparable with fiscal 2003.
  
       INTANGIBLE  ASSETS -- As of April 27, 2003, $9.2 million in goodwill is the
  company's only intangible  asset.  The company adopted SFAS No. 142 on April 29,
  2002.  During  the  first  quarter  of fiscal  2003 the  company  recognized  an
  impairment  charge of $37.6 ($24.2  million net of taxes of $13.4  million) upon
  adoption of SFAS No. 142.
  
       LONG-TERM  DEBT - During  the  fourth  quarter,  the  company  reduced  its
  long-term debt (current  maturities plus long-term debt) by an additional  $20.0
  million by repaying  completely the remaining  Industrial  Revenue Bonds.  These
  repayments  left long-term  debt at $76.5 million at April 27, 2003,  down $32.0
  million from $108.5 million at April 28, 2002.  The company's  long-term debt to
  tangible  capitalization  (defined as long-term debt plus  shareholder's  equity
  minus  goodwill) ratio was 47.0% at fiscal 2003 year end versus 60.1% at the end
  of last year. The company was in compliance with all financial  covenants in its
  loan agreements as of April 27, 2003.
  
       All of the company's  remaining debt is totally  unsecured and is comprised
  of a $75 million  term loan,  with a fixed  interest  rate of 7.76%,  and a $1.5
  million,   non-interest   bearing  term  loan  with  the  Canadian   government.
  Additionally, the company has a $15.0 million revolving credit line with a bank,
  of which no  balance  is  outstanding  at April 27,  2003.  The first  scheduled
  principal  payment on the $75 million  term loan is due March 2006 in the amount
  of $11.0 million.  The Canadian government loan is repaid in annual installments
  of approximately $500,000 per year.
  
  FREE CASH FLOW COMMENTS
  
       Free cash flow (see  reconciliation  on page 3 of this  release)  was $23.0
  million for fiscal 2003  compared  with $33.4  million for fiscal 2002 and $22.6
  million  for fiscal  2001.  Over the past three  fiscal  years,  the company has
  generated  $79.0 million in free cash flow by improving  earnings,  lowering the
  investment in working capital and reducing capital spending.
  
  BUSINESS OUTLOOK
  
       For the first quarter of fiscal 2004, the company  expects a higher decline
  in consolidated  sales than the fourth quarter decrease of 16.8%. While mattress
  ticking sales are expected to decrease by  substantially  less than their fourth
  quarter  rate of 15.5%,  the  year-over-year  decline in  upholstery  fabrics is
  expected to be somewhat higher than the fourth quarter rate of 17.2%.  The first
  quarter of fiscal  2004 will end on August 3, 2003,  and will  include 14 weeks.
  Due to the lower expected sales levels, mostly in the upholstery fabric segment,
  the company  believes  gross  profit  dollars  are likely to show a  significant
  decrease from last year's first  quarter  levels of $13.9  million.  The company
  expects almost all of the lower gross profit will be attributable to lower sales
  in upholstery fabrics, resulting in significant production downtime,  unabsorbed
  fixed costs and higher unfavorable manufacturing variances. Slightly lower SG&A,
  interest,  and other  expenses are  expected to offset some of the  reduction in
  gross profit.  However,  with the significant  ongoing weakness in the furniture
  industry  and the lack of  visibility  into  the  quarter  to  date,  it is more
  difficult  to  estimate  the degree to which the  company's  profitability  will
  decrease. At this time, the company expects to report a net loss in the range of
  ($0.06)  to  ($0.13)  per  share,  depending  upon the  actual  level of  demand
  throughout the quarter.  The first quarter of the company's  fiscal year,  which
  includes the summer  months,  is the slowest  period for Culp and the  furniture
  industry due to scheduled plant vacation shutdowns. In addition, while there are
  some  indications  that consumer  confidence is improving with the resolution of
  the Iraq war,  passing of the tax bill and higher stock market  valuations,  the
  company  does  not yet see any  indications  of a  recovery  in the  demand  for
  furniture  and  upholstery  fabrics  over the  remainder  of the first  quarter.
  However, the company is optimistic that sales will start to pick up in the early
  fall, as is seasonally normal. With the restructuring  initiatives over the past
  year,  improved  creativity  in design and the  continued  progress  in reducing
  costs, the company believes it has an excellent opportunity to leverage earnings
  when sales regain momentum.