content: --------------------------------------------------------------------------------
  
  
                        SECURITIES AND EXCHANGE COMMISSION
                              Washington, D.C. 20549
  
                                     ---------
  
                                     Form 8-K
  
                                  CURRENT REPORT
  
                 Pursuant to Section 13 or 15(d) of the Securities
                               Exchange Act of 1934
  
                                   -------------
  
         Date of Report (Date of earliest event reported) November 19, 2001
  
                                     CULP, INC.
  
              (Exact name of registrant as specified in its charter)
  
  
          North Carolina                  0-12781                56-1001967
   (State or other jurisdiction    (Commission File No.)       (IRS Employer
         of incorporation)                                  Identification No.)
  
  
  
                               101 South Main Street
                         High Point, North Carolina  27260
                     (Address of principal executive offices)
                                  (336) 889-5161
               (Registrant's telephone number, including area code)
  
  
  
  
            -----------------------------------------------------------
           (Former name or former address, if changed since last report)
  
  
  
  
  
  --------------------------------------------------------------------------------
  
  
  
  <PAGE>
  
  
  Item 5. Other Events
  
  See  attached  Press  Release (3 pages)  and  Financial  Information  Release (9
  pages),  both  dated  November  19,  2001,  related to the  fiscal  2002  second
  quarter ended October 28, 2001.
  
  Forward  Looking  Information.  This  Report  contains  statements  that  may be
  deemed   "forward-looking   statements"   within  the  meaning  of  the  federal
  securities  laws,  including  the Private  Securities  Litigation  Reform Act of
  1995.  Such  statements  are  inherently  subject  to risks  and  uncertainties.
  Forward-looking    statements   are   statements   that   include   projections,
  expectations  or beliefs  about future  events or results or  otherwise  are not
  statements  of historical  fact.  Such  statements  are often  characterized  by
  qualifying words such as "expect,"  "believe,"  "estimate," "plan" and "project"
  and their  derivatives.  Factors that could  influence the matters  discussed in
  such  statements  include  the level of  housing  starts  and sales of  existing
  homes,  consumer  confidence,  trends in disposable income, and general economic
  conditions.  Decreases  in  these  economic  indicators  could  have a  negative
  effect  on  the  company's  business  and  prospects.   Likewise,  increases  in
  interest  rates,  particularly  home mortgage  rates,  and increases in consumer
  debt or the general  rate of  inflation,  could  affect the  company  adversely.
  Because of the  significant  percentage  of the  company's  sales  derived  from
  international  shipments,  strengthening  of  the U.  S.  dollar  against  other
  currencies  could make the company's  products less  competitive on the basis of
  price  in  markets  outside  the  United  States.  Additionally,   economic  and
  political  instability  in  international  areas could affect the demand for the
  company's products.
  
  
  
                                     SIGNATURE
  
  
  Pursuant  to the  requirements  of the  Securities  Exchange  Act of  1934,  the
  Registrant  has duly  caused  this  report  to be  signed  on its  behalf by the
  undersigned hereunto duly authorized.
  
  
                                       CULP, INC.
                                      (Registrant)
  
  
                                By:    Franklin N. Saxon
                                       -----------------
                                       Executive Vice President and
                                       Chief Financial Officer
  
  
  
  
  
  
  Dated:   November 19, 2001
  
  
  
  <PAGE>
  
  FOR IMMEDIATE RELEASE
  
                    CULP REPORTS IMPROVED SECOND QUARTER EARNINGS
                               ----------------------
                      STRONGER CASH POSITION REFLECTS BENEFITS
                OF BALANCE SHEET MANAGEMENT AND RESTRUCTURING ACTIONS
  
  HIGH POINT,  N. C. (Nov.  19,  2001) - Culp,  Inc.  (NYSE:  CFI) today  reported
  improved  earnings  compared with a year ago and a significant  strengthening in
  its cash  position for the second  quarter of its 2002 fiscal year.  The company
  said that  excluding  restructuring-related  charges,  net income for the second
  quarter was $1.0 million,  or $0.09 per share diluted, up from net income a year
  ago of  $342,000,  or $0.03 per share.  Culp said that net income for the second
  quarter included bad debt expense of $1.4-million ($0.08 per share after taxes),
  up from  $112,000 a year ago.  Culp  indicated  that it  continues  to expect to
  operate  profitably  for fiscal  2002 as a whole,  excluding  restructuring  and
  related charges.
  
       For the three months ended  October 28,  2001,  Culp  reported net sales of
  $96.4   million   compared   with   $111.0   million  a  year   ago.   Including
  restructuring-related  charges,  the company  reported net income for the second
  quarter of $857,000 or $0.08 per share diluted.
  
       The results for the second quarter  brought net sales for the first half of
  fiscal 2002 to $182.9-million compared with $212.9 million a year ago. Excluding
  restructuring  and related  charges,  Culp reported a loss for the first half of
  fiscal 2002 of $375,000, or $0.03 per share diluted, compared with a net loss of
  $1.4 million, or $0.13 per share diluted, in the year-earlier period.  Including
  restructuring  and related  charges,  the Company  reported a loss for the first
  half of fiscal 2002 of $2.0-million,  or $0.18 per share diluted. Culp indicated
  that bad debt  expense for the first half of fiscal 2002  totaled  $2.2  million
  ($0.13 per share after taxes) versus $157,000 in the year-earlier period.
  
       "In an especially  challenging business environment,  Culp is demonstrating
  the value of the  actions  we have  taken to reduce  costs  and  strengthen  our
  balance sheet," remarked Robert G. Culp, III, chief executive officer.  Although
  sales for the second quarter were 13% lower than a year ago, we still reported a
  meaningful  improvement in profitability.  We also achieved sufficient cash flow
  from  operations  to increase our cash  position to $8.6 million at the close of
  the second  quarter,  up  significantly  from $1.2  million at the end of fiscal
  2001. Our strategic goal remains to continue  enhancing the value and service we
  provide  customers,  which ultimately is the key to driving a long-term recovery
  in our  profitability.  Although  there is  considerable  uncertainty  about the
  immediate trend in demand, we remain  optimistic about operating  profitably for
  fiscal 2002 as a whole, excluding restructuring and related charges.
  
       "This  is  proving  to be a  period  of  significant  change  in  the  home
  furnishings  industry.  Several  of the  largest  retail  chains  have  not  had
  sufficient  financial liquidity to survive and have had to close. This, in turn,
  has affected the furniture and bedding manufacturers that we serve. We have been
  working hard to minimize the impact of this  industry-wide  slowdown on Culp but
  have still had to recognize considerably higher credit losses in fiscal 2002 due
  principally to specific  problems that two residential  furniture  customers and
  one bedding  manufacturer have experienced.  Culp's overall receivable  position
  does not mirror our experience with these three customers;  and based on current
  facts and trends, we believe our bad debt reserves are adequate."
  
       Culp added, "One of the structural benefits of the capacity  consolidations
  that we completed during the first half is a more cohesive organization. Linking
  our design  resources  more  closely  with our  manufacturing  and  distribution
  facilities  is helping us adjust to  changes in styles and market  needs  faster
  with more reliable service.  This extends  throughout our entire product line of
  upholstery fabrics and mattress ticking.
  
       "As we started  fiscal 2002,  we knew that it would be imperative to manage
  our working  capital  and other key  components  of our balance  sheet even more
  closely to minimize the impact of the  industry-wide  slowdown on our  financial
  position.  Our performance in terms of building liquidity for the second quarter
  extended the momentum from the first period.  Our debt of $110.6  million at the
  close  of the  quarter  was down  $16.0  million  from a year ago and was  $27.0
  million below our long-term  borrowings of $137.5 million at the close of fiscal
  2000, 18 months ago. Our capital expenditures for fiscal 2002 remain targeted at
  approximately $4 million, compared with $8.1 million in fiscal 2001."
  
  
  <PAGE>
  
  
       Culp,  Inc. is one of the world's largest  marketers of upholstery  fabrics
  for furniture  and is a leading  marketer of mattress  ticking for bedding.  The
  Company's  fabrics are used  principally in the  production of  residential  and
  commercial furniture and bedding products.
  
       This  release  contains  statements  that  may be  deemed  "forward-looking
  statements"  within the meaning of the federal  securities  laws,  including the
  Private Securities Litigation Reform Act of 1995. Such statements are inherently
  subject to risks and  uncertainties.  Forward-looking  statements are statements
  that include projections, expectations or beliefs about future events or results
  or otherwise are not statements of historical  fact.  Such  statements are often
  characterized  by  qualifying  words such as  "expect,"  "believe,"  "estimate,"
  "plan" and "project"  and their  derivatives.  Factors that could  influence the
  matters  discussed in such  statements  include the level of housing  starts and
  sales of existing homes,  consumer  confidence,  trends in disposable income and
  general economic conditions. Decreases in these economic indicators could have a
  negative effect on the company's business and prospects.  Likewise, increases in
  interest rates, particularly home mortgage rates, and increases in consumer debt
  or the general rate of inflation, could affect the company adversely. Because of
  the  significant  percentage of the company's  sales derived from  international
  shipments,  strengthening of the U.S. dollar against other currencies could make
  the company's products less competitive on the basis of price in markets outside
  the  United  States.   Additionally,   economic  and  political  instability  in
  international areas could affect the demand for the company's products.
  
  
  
                                     CULP, INC.
                           Condensed Financial Highlights
                                    (Unaudited)
                                                      Three Months Ended
                                               -------------------------------
                                                 October 28,       October 29,
                                                    2001              2000
                                               --------------    -------------
  Net sales                                    $   96,400,000    $ 110,981,000
  Net income                                   $      857,000    $     342,000
  Net income per share:
    Basic                                      $         0.08    $        0.03
    Diluted                                    $         0.08    $        0.03
  Net income per diluted share, excluding
    restructuring and related charges*         $         0.09    $        0.03
  Average shares outstanding:
    Basic                                          11,221,000       11,209,000
    Diluted                                        11,281,000       11,270,000
  
  
                                                      Six Months Ended
                                               -------------------------------
                                                 October 28,       October 29,
                                                    2001              2000
                                               ---------------   -------------
  Net sales                                    $  182,863,000    $ 212,859,000
  Net (loss)                                   $   (2,025,000)   $  (1,414,000)
  Net (loss) per share:
    Basic                                      $        (0.18)   $       (0.13)
    Diluted                                    $        (0.18)   $       (0.13)
  Net (loss) per diluted share, excluding
    restructuring and related charges*         $        (0.03)   $       (0.13)
  Average shares outstanding:
    Basic                                          11,221,000       11,209,000
    Diluted                                        11,221,000       11,209,000
  
  
  * Excludes  restructuring and related charges of $0.2 million ($0.1 million,  or
    $0.01 per share  diluted,  after  taxes) in the second  quarter of fiscal 2002
    and $2.5 million  ($1.6 million or $0.15 per share  diluted,  after taxes) for
    the first half of fiscal 2002.
  
  
  
                                        - END -
  
  <PAGE>
                     CULP, INC. FINANCIAL INFORMATION RELEASE
                      CONSOLIDATED STATEMENTS OF INCOME (LOSS)
   FOR THE THREE MONTHS AND SIX MONTHS ENDED OCTOBER 28, 2001 AND OCTOBER 29, 2000
                  (Amounts in Thousands, Except for Per Share Data)
  <TABLE>
  <CAPTION>
                                                                THREE MONTHS ENDED (UNAUDITED)
                                           -------------------------------------------------------------------------
                                                    Amounts                                   Percent of Sales
                                           ---------------------------                   ---------------------------
                                            October 28,   October 29,     % Over
                                               2001          2000         (Under)           2002          2001
                                           ------------- -------------  ------------     ------------  -------------
  <S>                                   <C>                  <C>          <C>                <C>           <C>
  Net sales                             $        96,400       110,981       (13.1) %           100.0 %       100.0 %
  Cost of sales                                  80,858        94,094       (14.1) %            83.9 %        84.8 %
                                           ------------- -------------  ------------     ------------  -------------
          Gross profit                           15,542        16,887        (8.0) %            16.1 %        15.2 %
  
  Selling, general and
    administrative expenses                      11,550        13,491       (14.4) %            12.0 %        12.2 %
  Restructuring expense                               0             0         0.0  %             0.0 %         0.0 %
                                           ------------- -------------  ------------     ------------  -------------
          Income from operations                  3,992         3,396        17.6  %             4.1 %         3.1 %
  
  Interest expense                                1,963         2,285       (14.1) %             2.0 %         2.1 %
  Interest income                                   (34)          (15)      126.7  %            (0.0)%        (0.0)%
  Other expense (income), net                       765           575        33.0  %             0.8 %         0.5 %
                                           ------------- -------------  ------------     ------------  -------------
          Income before income taxes              1,298           551       135.6  %             1.3 %         0.5 %
  
  Income taxes  *                                   441           209       111.0  %            34.0 %        37.9 %
                                           ------------- -------------  ------------     ------------  -------------
          Net income                    $           857           342       150.6  %             0.9 %         0.3 %
                                           ============= =============  ============     ============  =============
  
  Net income per share                            $0.08         $0.03       166.7  %
  Net income per share, assuming dilution         $0.08         $0.03       166.7  %
  Net income per share, excluding
    restructuring and related charges  **         $0.09         $0.03       200.0  %
  Average shares outstanding                     11,221        11,209         0.1  %
  Average shares outstanding, assuming dilution  11,281        11,270         0.1  %
  
  
  
                                                                 SIX MONTHS ENDED (UNAUDITED)
                                           -------------------------------------------------------------------------
                                                    Amounts                                   Percent of Sales
                                           ---------------------------                   ---------------------------
                                           October 28,   October 29,      % Over
                                               2001          2000         (Under)           2002          2001
                                           ------------- -------------  ------------     ------------  -------------
  Net sales                             $       182,863       212,859      (14.1) %           100.0 %       100.0 %
  Cost of sales                                 156,532       181,798      (13.9) %            85.6 %        85.4 %
                                           ------------- -------------  ------------     ------------  -------------
          Gross profit                           26,331        31,061      (15.2) %            14.4 %        14.6 %
  
  Selling, general and
    administrative expenses                      22,785        27,269      (16.4) %            12.5 %        12.8 %
  Restructuring expense                           1,303             0      100.0  %             0.7 %         0.0 %
                                           ------------- -------------  ------------     ------------  -------------
          Income from operations                  2,243         3,792      (40.8) %             1.2 %         1.8 %
  
  Interest expense                                4,031         4,608      (12.5) %             2.2 %         2.2 %
  Interest income                                   (57)          (22)     159.1  %            (0.0)%        (0.0)%
  Other expense (income), net                     1,337         1,316        1.6  %             0.7 %         0.6 %
                                           ------------- -------------  ------------     ------------  -------------
          Loss before income taxes               (3,068)       (2,110)     (45.4) %            (1.7)%        (1.0)%
  
  Income taxes  *                                (1,043)         (696)     (49.9) %            34.0 %        33.0 %
                                           ------------- -------------  ------------     ------------  -------------
  
          Net loss                      $        (2,025)       (1,414)     (43.2) %            (1.1)%        (0.7)%
                                           ============= =============  ============     ============  =============
  
  Net loss per share                             ($0.18)       ($0.13)     (38.5) %
  Net loss per share, assuming dilution          ($0.18)       ($0.13)     (38.5) %
  Net (loss) per share, excluding
    restructuring and related charges  **        ($0.03)       ($0.13)      76.9  %
  Average shares outstanding                     11,221        11,209        0.1  %
  Average shares outstanding, assuming dilution  11,221        11,209        0.1  %
  
  
  * Percent of sales column is  calculated  as a % of income  (loss) before income taxes.
  ** Excludes  restructuring  and related  charges of $0.2 million  ($0.1 million or $.01 per share  diluted,  after taxes)
     in the second quarter of 2002, and $2.5 million ($1.6 million or $.15 per share diluted, after taxes) year to date in 2002.
  </TABLE>
  <PAGE>
                      CULP, INC. FINANCIAL INFORMATION RELEASE
                             CONSOLIDATED BALANCE SHEETS
                 OCTOBER 28, 2001, OCTOBER 29, 2000, APRIL 29, 2001
                                      Unaudited
                               (Amounts in Thousands)
  
  <TABLE>
  <CAPTION>
  
                                                            Amounts                                Increase
                                                 --------------------------------------           (Decrease)
                                                      October 28,        October 29,     -------------------------------   * April 29,
                                                         2001                2000            Amount          Percent           2001
                                                  --------------------  ---------------  ---------------     -----------   -----------
  <S>                                           <C>                           <C>           <C>            <C>                <C>
  Current assets
         Cash and cash investments              $               8,590              744           7,846       1,054.6  %          1,207
         Accounts receivable                                   49,402           63,991         (14,589)        (22.8) %         57,849
         Inventories                                           60,814           72,967         (12,153)        (16.7) %         59,997
         Other current assets                                   9,851           11,003          (1,152)        (10.5) %          7,856
                                                  --------------------  ---------------  ---------------     -----------   -----------
                    Total current assets                      128,657          148,705         (20,048)        (13.5) %        126,909
  
  Property, plant & equipment, net                            105,697          120,023         (14,326)        (11.9) %        112,322
  Goodwill                                                     47,781           49,176          (1,395)         (2.8) %         48,478
  Other assets                                                  1,682            6,508          (4,826)        (74.2) %          1,871
                                                  --------------------  ---------------  ---------------     -----------   -----------
  
                    Total assets                $             283,817          324,412         (40,595)        (12.5) %        289,580
                                                  ====================  ===============  ===============     ===========   ===========
  
  
  Current liabilities
         Current maturities of long-term debt   $               3,136            1,678           1,458          86.9  %          2,488
         Accounts payable                                      25,870           30,351          (4,481)        (14.8) %         27,371
         Accrued expenses                                      17,196           22,404          (5,208)        (23.2) %         17,153
         Income taxes payable                                       0                0               0           0.0  %          1,268
                                                  --------------------  ---------------  ---------------     -----------   -----------
                    Total current liabilities                  46,202           54,433          (8,231)        (15.1) %         48,280
  
  Long-term debt                                              107,447          125,079         (17,632)        (14.1) %        109,168
  
  Deferred income taxes                                        10,330           17,459          (7,129)        (40.8) %         10,330
                                                  --------------------  ---------------  ---------------     -----------   -----------
                    Total liabilities                         163,979          196,971         (32,992)        (16.7) %        167,778
  
  Shareholders' equity                                        119,838          127,441          (7,603)         (6.0) %        121,802
                                                  --------------------  ---------------  ---------------     -----------   -----------
  
                    Total liabilities and
                    shareholders' equity        $             283,817          324,412         (40,595)        (12.5) %        289,580
                                                  ====================  ===============  ===============     ===========   ===========
  
  Shares outstanding                                           11,221           11,209              12           0.1  %         11,221
                                                  ====================  ===============  ===============     ===========   ===========
  
  </TABLE>
  
  *  Derived from audited financial statements.
  <PAGE>
  
                      CULP, INC. FINANCIAL INFORMATION RELEASE
                        CONSOLIDATED STATEMENTS OF CASH FLOWS
           FOR THE SIX MONTHS ENDED OCTOBER 28, 2001 AND OCTOBER 29, 2000
                                      Unaudited
                               (Amounts in Thousands)
  <TABLE>
  <CAPTION>
  
                                                                                  SIX MONTHS ENDED
                                                                          ----------------------------------
                                                                                      Amounts
                                                                          --------------------------------
                                                                            October 28,      October 29,
                                                                               2001             2000
                                                                          ---------------  ---------------
  <S>                                                                    <C>                   <C>
  Cash flows from operating activities:
       Net loss                                                          $        (2,025)          (1,414)
       Adjustments to reconcile net loss to net cash
          provided by operating activities:
              Depreciation                                                         8,871           10,043
              Amortization of intangible assets                                      785              798
              Amortization of deferred compensation                                   39              125
              Restructuring expense                                                1,303                0
              Changes in assets and liabilities:
                  Accounts receivable                                              8,447           11,232
                  Inventories                                                       (817)           1,504
                  Other current assets                                            (2,006)            (654)
                  Other assets                                                       (17)             241
                  Accounts payable                                                 2,522             (859)
                  Accrued expenses                                                (1,067)             171
                  Income taxes payable                                            (1,268)               0
                                                                          ---------------  ---------------
                      Net cash provided by operating activities                   14,767           21,187
                                                                          ---------------  ---------------
  Cash flows from investing activities:
       Capital expenditures                                                       (2,288)          (3,659)
       Purchase of investments to fund deferred compensation liability                 0             (200)
                                                                          ---------------  ---------------
                      Net cash used in investing activities                       (2,288)          (3,859)
                                                                          ---------------  ---------------
  Cash flows from financing activities:
       Principal payments on long-term debt                                       (1,073)         (10,729)
       Change in accounts payable-capital expenditures                            (4,023)          (6,077)
       Dividends paid                                                                  0             (785)
                                                                          ---------------  ---------------
                      Net cash used in financing activities                       (5,096)         (17,591)
                                                                          ---------------  ---------------
  
  Increase (decrease) in cash and cash investments                                 7,383             (263)
  
  Cash and cash investments at beginning of period                                 1,207            1,007
                                                                          ---------------  ---------------
  
  Cash and cash investments at end of period                            $          8,590              744
                                                                          ===============  ===============
  
  </TABLE>
  <PAGE>
                     CULP, INC. FINANCIAL INFORMATION RELEASE
                                 FINANCIAL ANALYSIS
                                  OCTOBER 28, 2001
  <TABLE>
  <CAPTION>
  
  
                                                         FISCAL 01                       FISCAL 02
                                                       -----------   ------------------------------------------------   -------------
                                                          Q2              Q1            Q2          Q3        Q4           LTM (3)
                                                       -----------   ------------------------------------------------   -------------
  <S>                                                   <C>              <C>          <C>                                 <C>
  INVENTORIES
         Inventory turns                                      5.1              5.1          5.4
  
  RECEIVABLES
         Days sales in receivables                             52               51           47
         Percent current & less than 30
           days past due                                    94.7%            91.9%        92.7%
  
  WORKING CAPITAL
         Current ratio                                        2.7              2.8          2.8
         Working capital turnover (2)                         4.2              4.1          4.1
         Operating working capital (2)                   $106,607          $86,586      $84,346
  
  PROPERTY, PLANT & EQUIPMENT
         Depreciation rate                                   7.9%             7.2%         7.1%
         Percent property, plant &
           equipment are depreciated                        52.6%            56.2%        58.1%
         Capital expenditures                              $8,050 (1)       $1,602         $686
  
  PROFITABILITY
         Return on average total capital                     2.7%           (2.7%)         3.7%                               (1.1%)
         Return on average equity                            1.1%           (9.6%)         2.9%                               (6.8%)
         Net income (loss) per share                        $0.03          ($0.26)        $0.08                              ($0.80)
         Net income (loss) per share (diluted)              $0.03          ($0.26)        $0.08                              ($0.80)
         Net income (loss) per share, excluding
           restructuring and related charges (5)            $0.03          ($0.12)        $0.09                              ($0.20)
  
  LEVERAGE
         Total liabilities/equity                          155.9%           136.6%       136.8%
         Funded debt/equity                                100.3%            93.1%        92.3%
         Funded debt/capital employed                       50.1%            48.2%        48.0%
         Funded debt                                     $126,757         $110,652     $110,583
         Funded debt/EBITDA (LTM) (4)                        3.59             4.26         4.26
  
  OTHER
         Book value per share                              $11.27           $10.59       $10.68
         Employees at quarter end                           3,623            3,018        3,000
         Sales per employee (annualized)                 $121,000         $113,000     $128,000
         Capital employed                                $253,096         $229,461     $230,421
         Effective income tax rate                          37.9%            34.0%        34.0%
         EBITDA (4)                                        $8,203           $4,731       $8,315                             $25,945
         EBITDA/net sales (4)                                7.4%             5.5%         8.6%                                6.8%
  
    (1) Expenditures for entire year
    (2) Working capital for this calculation is accounts receivable, inventories and accounts payable.
    (3) LTM represents "Latest Twelve Months"
    (4) EBITDA includes earnings before interest, income taxes, depreciation, amortization,  all restructuring and related
        charges and certain non-cash charges, as defined by the company's credit agreement.
    (5) Excludes restructuring and related charges in the second quarter of 2002 of $0.2 million ($0.1 million or $0.01 per share
        diluted, after taxes) and $9.9 million ($6.6 million or $0.60 per share diluted, after taxes) for the last twelve months.
  
  </TABLE>
  <PAGE>
                      CULP, INC. FINANCIAL INFORMATION RELEASE
                               SALES BY PRODUCT GROUP
   FOR THE THREE MONTHS AND SIX MONTHS ENDED OCTOBER 28, 2001 AND OCTOBER 29, 2000
                               (Amounts in thousands)
  
  <TABLE>
  <CAPTION>
                                                              THREE MONTHS ENDED (UNAUDITED)
                                         ------------------------------------------------------------------
                                                  Amounts                           Percent of Total Sales
                                         --------------------------               -------------------------
                                         October 28,   October 29,     % Over
  Product Group                             2001          2000        (Under)         2002         2001
  ------------------------------------   ------------  ------------  -----------  -----------  ------------
  <S>                                 <C>                <C>        <C>             <C>          <C>
  Upholstery Fabrics
      Culp Decorative Fabrics         $       38,492        46,792    (17.7) %        39.9 %       42.2 %
      Culp Velvets/Prints                     30,354        32,073     (5.4) %        31.5 %       28.9 %
      Culp Yarn                                1,532         4,134    (62.9) %         1.6 %        3.7 %
                                         ------------  ------------  -----------  -----------  ------------
                                              70,378        82,999    (15.2) %        73.0 %       74.8 %
  
  Mattress Ticking
      Culp Home Fashions                      26,022        27,982     (7.0) %        27.0 %       25.2 %
                                         ------------  ------------  -----------  -----------  ------------
  
                                    * $       96,400       110,981    (13.1) %       100.0 %      100.0 %
                                         ============  ============  ===========  ===========  ============
  
  
  
  
  
                                                               SIX MONTHS ENDED (UNAUDITED)
                                         ------------------------------------------------------------------
                                                  Amounts                           Percent of Total Sales
                                         --------------------------               -------------------------
                                         October 28,   October 29,     % Over
  Product Group                             2001          2000        (Under)        2002         2001
  ------------------------------------   ------------  ------------  -----------  -----------  ------------
  Upholstery Fabrics
      Culp Decorative Fabrics         $       73,652        88,325    (16.6) %        40.3 %       41.5 %
      Culp Velvets/Prints                     55,875        62,147    (10.1) %        30.5 %       29.2 %
      Culp Yarn                                2,498         7,453    (66.5) %         1.4 %        3.5 %
                                         ------------  ------------  -----------  -----------  ------------
                                             132,025       157,925    (16.4) %        72.2 %       74.2 %
  
  Mattress Ticking
      Culp Home Fashions                      50,838        54,934     (7.5) %        27.8 %       25.8 %
                                         ------------  ------------  -----------  -----------  ------------
  
                                    * $      182,863       212,859    (14.1) %       100.0 %      100.0 %
                                         ============  ============  ===========  ===========  ============
  
  </TABLE>
  
  * U.S.  sales were $82,280 and $87,022 for the second quarter of fiscal 2002 and
  fiscal  2001,  respectively;  and  $154,079  and  $169,312 for the six months of
  fiscal 2002 and 2001,  respectively.  The percentage  decrease in U.S. sales was
  5.4% for the second quarter and a decrease of 9.0% for the six months.
  
  <PAGE>
  
  
                      CULP, INC. FINANCIAL INFORMATION RELEASE
                       INTERNATIONAL SALES BY GEOGRAPHIC AREA
   FOR THE THREE MONTHS AND SIX MONTHS ENDED OCTOBER 28, 2001 AND OCTOBER 29, 2000
                               (Amounts in thousands)
  
  <TABLE>
  <CAPTION>
  
                                                            THREE MONTHS ENDED (UNAUDITED)
                                      --------------------------------------------------------------------
                                                Amounts                           Percent of Total Sales
                                      -----------------------------             --------------------------
                                       October 28,    October 29,    % Over
        Geographic Area                   2001            2000       Under)         2002            2001
  -----------------------------       -------------- -----------  ----------    ------------    ----------
  <S>                                <C>               <C>       <C>             <C>            <C>
  North America (Excluding USA)      $        8,379       9,556    (12.3) %        59.3 %         39.9 %
  Europe                                        938       1,807    (48.1) %         6.6 %          7.5 %
  Middle East                                 1,311       5,489    (76.1) %         9.3 %         22.9 %
  Far East & Asia                             2,891       5,590    (48.3) %        20.5 %         23.3 %
  South America                                 177         279    (36.6) %         1.3 %          1.2 %
  All other areas                               424       1,238    (65.8) %         3.0 %          5.2 %
                                      -------------- -----------  ----------    ------------    ----------
  
                                     $       14,120      23,959    (41.1) %       100.0 %        100.0 %
                                      ============== ===========  ==========    ============    ==========
  
  
  
                                                             SIX MONTHS ENDED (UNAUDITED)
                                      --------------------------------------------------------------------
                                                Amounts                           Percent of Total Sales
                                      -----------------------------             --------------------------
                                       October 28,    October 29,   % Over
        Geographic Area                   2001            2000      (Under)         2002            2001
  -----------------------------       -------------- -----------  ----------    ------------    ----------
  North America (Excluding USA)  $           16,410      17,951     (8.6) %        57.1 %         41.2 %
  Europe                                      1,643       3,259    (49.6) %         5.7 %          7.5 %
  Middle East                                 4,214      10,532    (60.0) %        14.6 %         24.2 %
  Far East & Asia                             5,483       8,826    (37.9) %        19.0 %         20.3 %
  South America                                 336         585    (42.6) %         1.2 %          1.3 %
  All other areas                               698       2,394    (70.8) %         2.4 %          5.5 %
                                      -------------- -----------  ----------    ------------    ----------
  
                                 $           28,784      43,547    (33.9) %       100.0 %        100.0 %
                                      ============== ===========  ==========    ============    ==========
  
  </TABLE>
  
  International  sales,  and the  percentage of total sales,  for each of the last
  five fiscal years follows:  fiscal  1997-$101,571  (25%);  fiscal  1998-$137,223
  (29%);  fiscal  1999-$113,354  (23%);  fiscal  2000-$111,104  (23%);  and fiscal
  2001-$77,824 (19%). International sales for the second quarter represented 14.6%
  and 21.6%  for 2002 and 2001,  respectively.  Year-to-date  international  sales
  represented 15.7% and 20.5% of total sales for 2002 and 2001, respectively.
  
  <PAGE>
  
                      CULP, INC. FINANCIAL INFORMATION RELEASE
                                 FINANCIAL NARRATIVE
          for the three months ended October 28, 2001 and October 29, 2000
  
  
  INCOME STATEMENT COMMENTS
  
       GENERAL  - For the  second  quarter,  net  sales  decreased  13.1% to $96.4
  million;  and the company  reported net income of  $857,000,  or $0.08 per share
  diluted,  (based on 11,281,000 average shares  outstanding) versus net income of
  $342,000,  or $0.03  per share  diluted,  (based on  11,270,000  average  shares
  outstanding)  in the second  quarter of fiscal 2001. For the first six months of
  fiscal  2002,  net sales  decreased  14.1% to $182.9  million,  and the  company
  reported  a net loss  $2.0  million,  or  $0.18  per  share  diluted  (based  on
  11,221,000 average shares  outstanding),  versus a net loss of $1.4 million,  or
  $0.13 per share diluted (based on 11,209,000  average share  outstanding  during
  the period),  a year ago. As described  below in "SG&A  EXPENSES," a significant
  factor  affecting the second quarter and first half was bad debt expense of $1.4
  million and $2.2 million, respectively ($0.08 and $0.13 per share, respectively,
  on an  after-tax  basis).  This  compares  with bad debt expense of $112,000 and
  $157,000 for the second quarter and first half of 2001, respectively.  Excluding
  restructuring  and related  charges,  earnings would have been $1.0 million,  or
  $0.09 per share diluted,  for the second quarter, and the loss for the first six
  months of fiscal 2002 would have been $375,000, or ($0.03) per share diluted.
  
       The company's  long-term,  strategic plan encompasses  several  competitive
  initiatives:
  
       Broad Product  Offering - continuing to market one of the broadest  product
       lines in  upholstery  fabrics and mattress  ticking.  Through its extensive
       manufacturing  capabilities,  the company competes in most major categories
       except leather;
  
       Diverse  Customer Base - maintaining a diverse  customer  base. The company
       has  long-standing  relationships  with  most  major  upholstery  furniture
       manufacturers.  Ownership of resources in the home furnishings  industry is
       becoming increasingly  concentrated,  and the company has successfully been
       able to  capitalize  on its size and product  breadth to supply more of the
       needs  of  existing  customers.  Culp is  pursuing  opportunities  in other
       end-use markets in addition to U.S. residential furniture and bedding, such
       as international, commercial furniture and juvenile furniture;
  
       Design  Innovation  -  supplying  fabrics  that are  fashionable  and match
       current consumer preferences.  The company's principal design resources are
       consolidated  in a  single  facility  that has  advanced  computer-assisted
       design  systems and promotes  sharing of innovative  designs across product
       lines.  Culp encourages  active  customer  involvement in the entire design
       process; and
  
       Vertical  Integration - operating as a vertically  integrated  manufacturer
       and  taking  advantage  of  economies,  quality,  supply  availability  and
       efficiencies  that can be gained by producing  the raw material  components
       that are used in the manufacture of its products.
  
  RESTRUCTURING   ACTIONS  -  During   fiscal  2001,   the  company   initiated  a
  restructuring plan intended to lower operating expenses,  increase manufacturing
  utilization,  raise  productivity and position the company to operate profitably
  within  the  current  environment  of  reduced  demand.  The plan  involved  the
  consolidation  of  certain  fabric   manufacturing   capacity  within  the  Culp
  Decorative   Fabrics   division,   closing  one  of  the  company's   four  yarn
  manufacturing  plants within Culp Yarn,  and an extensive  reduction in selling,
  general  and  administrative  expenses.  The  company  also  recognized  certain
  inventory  write-downs  related  to  the  closed  facilities  as  part  of  this
  initiative.  The  total  charge  from  the  restructuring,  cost  reduction  and
  inventory write-down  initiatives was $9.9 million,  about $3.6 million of which
  represented non-cash items. The company recognized $7.4 million of restructuring
  and related  charges  during fiscal 2001,  and $2.5 million in the first half of
  fiscal 2002. For the second quarter, restructuring- related charges totaled $0.2
  million and were recorded in "Cost of sales." For the first six months of fiscal
  2002,  restructuring  and related  charges were  recorded as $1.3 million in the
  line item "Restructuring expense" and $1.2 million in "Cost of sales." The costs
  reflected  in "Cost of sales"  are  principally  related  to the  relocation  of
  manufacturing equipment. The company plans to realize annualized cost reductions
  of at least $14  million  when the full  benefit of this  program  is  realized.
  Management  believes  the  company  now  has a  sound  footprint  of  efficient,
  world-class facilities utilizing  state-of-the-art  equipment that position Culp
  well to meet the  demands by  manufacturers  for shorter  lead  times,  reliable
  delivery schedules and appealing designs.
  
       NET SALES - Compared  with fiscal  2001,  upholstery  fabric  sales for the
  second  quarter of fiscal 2002 decreased  15.2% to $70.4 million,  and decreased
  16.4% to $132  million  for the first six  months of fiscal  2002 (See  Sales by
  Product  Group  schedule on Page 5).  Reflecting  a  continuation  of the trends
  identified in the first  quarter,  the  upholstery  fabric sales decrease in the
  second quarter  represents:  (1) a sharp reduction  (44.2%,  or $8.4 million) in
  international  sales,  principally  reflecting the high value of the U.S. dollar
  relative to  international  currencies;  (2) a decrease  in external  yarn sales
  (62.9% or $2.6 million) due to the company's internal consumption of more of the
  yarn  division's  output and exit from  certain yarn  businesses  as part of the
  restructuring  plan; and (3) a decrease in sales to contract furniture customers
  ($1.4 million).  Sales to U.S. residential furniture manufacturers in the second
  quarter of fiscal 2002  decreased  only $0.2  million  compared  with the second
  quarter of fiscal 2001.  The company  believes  that it is improving  its market
  share in the U.S.  residential market because of well-received fabric placements
  in the Culp  Decorative  Fabrics and Culp  Velvets/Prints  product  groups.
  
  Compared  with fiscal 2001,  mattress  ticking  sales for the second  quarter of
  fiscal 2002 decreased  7.0% to $26 million,  and decreased 7.5% to $50.8 million
  for the first six months of fiscal 2002. The sales decrease in mattress  ticking
  reflects an overall slowdown in industry-wide demand for bedding in the U.S.
  
       GROSS PROFIT - Gross profit included  restructuring-related charges of $0.2
  million.  Excluding  these  charges,  gross profit  declined 7.0% for the second
  quarter of fiscal 2002 compared with the year-earlier  period but increased as a
  percentage  of net sales  from  15.2% to 16.3%.  The  increase  in gross  profit
  percentage  reflects the benefit of the  restructuring  steps and other  actions
  that have been taken to reduce  expenses.  The  company  achieved  higher  gross
  margins  in each of its  product  groups  except  for  Culp  Decorative  Fabrics
  ("CDF"). The principal factors affecting CDF have been higher cost variances due
  to  lower  sales  volume  and  lower  manufacturing   productivity  due  to  the
  consolidation   activities   that  have  been   concentrated   within  CDF.  The
  productivity  of CDF during the second quarter  improved from the first quarter,
  and Culp expects that positive trend to continue during the second fiscal half.
  
       SG&A EXPENSES - Reflecting  the impact of the  company's  actions to reduce
  expenses,  SG&A expenses for the second  quarter  declined  14.4% from the prior
  year.  SG&A  expenses in the second  quarter  included  bad debt expense of $1.4
  million  compared  with  $112,000  in  the  year-earlier  period.   Without  the
  additional  bad debt expense,  SG &A expenses  were reduced by $3.3 million,  or
  24.8%, and were 10.5% of net sales. For the first six months of fiscal 2002, bad
  debt expense totaled $2.2 million. Without the additional bad debt expense, SG&A
  expenses for the first six months were reduced by $6.7  million,  or 24.5%,  and
  were  11.3% of net  sales.  The  increase  in bad debt  expense  from a year ago
  reflects  primarily  write-offs  of one  bedding and two  residential  furniture
  customers.
  
       INTEREST  EXPENSE - Interest  expense for the second quarter declined 14.1%
  from  $2.3  million  to  $2.0  million  due to  significantly  lower  borrowings
  outstanding, offset somewhat by a substantial increase in interest rates.
  
       OTHER EXPENSE (INCOME), NET - Other expense (income) for the second quarter
  of fiscal 2002 totaled  $765,000  compared with $575,000 in the prior year.  The
  increase  reflects the accrual for certain  litigation  expenses,  offset by the
  elimination of the nonqualified deferred compensation plan terminated in January
  2001 as a part of the company's  cost  reduction  initiatives.
  
       INCOME TAXES - The effective tax rate for the first half of fiscal 2002 was
  34.0% compared with 33.0% for the year-earlier period.
  
  
       EBITDA - EBITDA for the  second  quarter  of fiscal  2002 was $8.3  million
  compared  with $8.2 million for the second  quarter of last year,  and was $13.0
  million for the first half of fiscal  2002  compared  with $13.3  million in the
  year-earlier  period.  EBITDA includes  earnings before interest,  income taxes,
  depreciation,  amortization,  all  restructuring and related charges and certain
  non-cash charges, as defined by the company's credit agreement.
  
  
  BALANCE SHEET COMMENTS
  
       CASH AND CASH  INVESTMENTS  - Cash and cash  investments  as of October 28,
  2001 increased to $8.6 million from $1.2 million at fiscal year end,  reflecting
  cash flow from  operations  of $14.8  million for the first half of fiscal 2002,
  which exceeded  capital  expenditures of $2.3 million and debt repayment of $5.1
  million.
  
       WORKING  CAPITAL - Accounts  receivable  as of October 28,  2001  decreased
  22.8% from the  year-earlier  level, due principally to the decline in sales and
  the company's focus on sustaining a liquid working capital position.  Days sales
  outstanding totaled 47 days at October 28, 2001 compared with 52 a year ago. The
  aging of accounts  receivable  was 92.7%  current and less than 30 days past due
  versus  94.7%  a year  ago.  Inventories  at the  close  of the  second  quarter
  decreased 16.7% from a year ago. Inventory turns for the second quarter were 5.4
  versus 5.1 for the year-earlier period.  Operating working capital (comprised of
  accounts  receivable,  inventory  and  accounts  payable)  was $84.3  million at
  October 28, 2001, down from $106.6 million a year ago.
  
       PROPERTY,  PLANT AND  EQUIPMENT  - Capital  spending  for the six months of
  fiscal 2002 decreased to $2.3 million. The company's budget for capital spending
  for fiscal 2002 is $4.0  million,  compared  with $8.1  million in fiscal  2001.
  Depreciation for the second quarter of fiscal 2002 totaled $4.4 million.
  
       LONG-TERM  DEBT - The company has reduced  funded debt by $16.2  million or
  12.8% from the second  quarter of last year.  Funded debt equals  long-term debt
  plus  current  maturities.  Funded debt was $110.6  million at October 28, 2001,
  compared with $126.8  million a year ago and $111.7  million at fiscal year end.
  Compared with 50.1% a year ago, the company's funded  debt-to-capital  ratio was
  48% at October 28, 2001,  its lowest level since July 1997.  During fiscal 2001,
  the company  amended  its credit  facility to include  terms that  restrict  the
  payment of cash  dividends  and share  repurchases  at this time,  limit capital
  expenditures,  increase the interest rate on its revolving  credit facility from
  LIBOR plus 1.60% to LIBOR plus 4.00% and  increase  the letter of credit fees on
  IRBs from 1.10% to 4.00%.  The  amended  credit  facility  lowered the amount of
  funds available under the facility from $88 million to $20 million.  The company
  had outstanding borrowings of approximately $1 million under the facility at the
  end of the second quarter of fiscal 2002. The company was in compliance with its
  loan agreements as of October 28, 2001. Other than the credit facility, required
  principal  payments under the respective loan agreements during the remainder of
  fiscal  2002 and  during  fiscal  2003  total  $1.5  million  and $2.2  million,
  respectively.
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text: --------------------------------------------------------------------------------
  
                        SECURITIES AND EXCHANGE COMMISSION
                              Washington, D.C. 20549
  
                                     ---------
  
                                     Form 8-K
  
                                  CURRENT REPORT
  
                 Pursuant to Section 13 or 15(d) of the Securities
                               Exchange Act of 1934
  
                                   -------------
  
         Date of Report (Date of earliest event reported) November 19, 2001
  
                                     CULP, INC.
  
              (Exact name of registrant as specified in its charter)
  
          North Carolina                  0-12781                56-1001967
   (State or other jurisdiction    (Commission File No.)       (IRS Employer
         of incorporation)                                  Identification No.)
  
                               101 South Main Street
                         High Point, North Carolina  27260
                     (Address of principal executive offices)
                                  (336) 889-5161
               (Registrant's telephone number, including area code)
  
            -----------------------------------------------------------
           (Former name or former address, if changed since last report)
  
  --------------------------------------------------------------------------------
  Item 5. Other Events
  
  See  attached  Press  Release (3 pages)  and  Financial  Information  Release (9
  pages),  both  dated  November  19,  2001,  related to the  fiscal  2002  second
  quarter ended October 28, 2001.
  
  Forward  Looking  Information.  This  Report  contains  statements  that  may be
  deemed   "forward-looking   statements"   within  the  meaning  of  the  federal
  securities  laws,  including  the Private  Securities  Litigation  Reform Act of
  1995.  Such  statements  are  inherently  subject  to risks  and  uncertainties.
  Forward-looking    statements   are   statements   that   include   projections,
  expectations  or beliefs  about future  events or results or  otherwise  are not
  statements  of historical  fact.  Such  statements  are often  characterized  by
  qualifying words such as "expect,"  "believe,"  "estimate," "plan" and "project"
  and their  derivatives.  Factors that could  influence the matters  discussed in
  such  statements  include  the level of  housing  starts  and sales of  existing
  homes,  consumer  confidence,  trends in disposable income, and general economic
  conditions.  Decreases  in  these  economic  indicators  could  have a  negative
  effect  on  the  company's  business  and  prospects.   Likewise,  increases  in
  interest  rates,  particularly  home mortgage  rates,  and increases in consumer
  debt or the general  rate of  inflation,  could  affect the  company  adversely.
  Because of the  significant  percentage  of the  company's  sales  derived  from
  international  shipments,  strengthening  of  the U.  S.  dollar  against  other
  currencies  could make the company's  products less  competitive on the basis of
  price  in  markets  outside  the  United  States.  Additionally,   economic  and
  political  instability  in  international  areas could affect the demand for the
  company's products.
  
                                     SIGNATURE
  
  Pursuant  to the  requirements  of the  Securities  Exchange  Act of  1934,  the
  Registrant  has duly  caused  this  report  to be  signed  on its  behalf by the
  undersigned hereunto duly authorized.
  
                                       CULP, INC.
                                      (Registrant)
  
                                By:    Franklin N. Saxon
                                       -----------------
                                       Executive Vice President and
                                       Chief Financial Officer
  
  Dated:   November 19, 2001
  FOR IMMEDIATE RELEASE
  
                    CULP REPORTS IMPROVED SECOND QUARTER EARNINGS
                               ----------------------
                      STRONGER CASH POSITION REFLECTS BENEFITS
                OF BALANCE SHEET MANAGEMENT AND RESTRUCTURING ACTIONS
  
  HIGH POINT,  N. C. (Nov.  19,  2001) - Culp,  Inc.  (NYSE:  CFI) today  reported
  improved  earnings  compared with a year ago and a significant  strengthening in
  its cash  position for the second  quarter of its 2002 fiscal year.  The company
  said that  excluding  restructuring-related  charges,  net income for the second
  quarter was $1.0 million,  or $0.09 per share diluted, up from net income a year
  ago of  $342,000,  or $0.03 per share.  Culp said that net income for the second
  quarter included bad debt expense of $1.4-million ($0.08 per share after taxes),
  up from  $112,000 a year ago.  Culp  indicated  that it  continues  to expect to
  operate  profitably  for fiscal  2002 as a whole,  excluding  restructuring  and
  related charges.
  
       For the three months ended  October 28,  2001,  Culp  reported net sales of
  $96.4   million   compared   with   $111.0   million  a  year   ago.   Including
  restructuring-related  charges,  the company  reported net income for the second
  quarter of $857,000 or $0.08 per share diluted.
  
       The results for the second quarter  brought net sales for the first half of
  fiscal 2002 to $182.9-million compared with $212.9 million a year ago. Excluding
  restructuring  and related  charges,  Culp reported a loss for the first half of
  fiscal 2002 of $375,000, or $0.03 per share diluted, compared with a net loss of
  $1.4 million, or $0.13 per share diluted, in the year-earlier period.  Including
  restructuring  and related  charges,  the Company  reported a loss for the first
  half of fiscal 2002 of $2.0-million,  or $0.18 per share diluted. Culp indicated
  that bad debt  expense for the first half of fiscal 2002  totaled  $2.2  million
  ($0.13 per share after taxes) versus $157,000 in the year-earlier period.
  
       "In an especially  challenging business environment,  Culp is demonstrating
  the value of the  actions  we have  taken to reduce  costs  and  strengthen  our
  balance sheet," remarked Robert G. Culp, III, chief executive officer.  Although
  sales for the second quarter were 13% lower than a year ago, we still reported a
  meaningful  improvement in profitability.  We also achieved sufficient cash flow
  from  operations  to increase our cash  position to $8.6 million at the close of
  the second  quarter,  up  significantly  from $1.2  million at the end of fiscal
  2001. Our strategic goal remains to continue  enhancing the value and service we
  provide  customers,  which ultimately is the key to driving a long-term recovery
  in our  profitability.  Although  there is  considerable  uncertainty  about the
  immediate trend in demand, we remain  optimistic about operating  profitably for
  fiscal 2002 as a whole, excluding restructuring and related charges.
  
       "This  is  proving  to be a  period  of  significant  change  in  the  home
  furnishings  industry.  Several  of the  largest  retail  chains  have  not  had
  sufficient  financial liquidity to survive and have had to close. This, in turn,
  has affected the furniture and bedding manufacturers that we serve. We have been
  working hard to minimize the impact of this  industry-wide  slowdown on Culp but
  have still had to recognize considerably higher credit losses in fiscal 2002 due
  principally to specific  problems that two residential  furniture  customers and
  one bedding  manufacturer have experienced.  Culp's overall receivable  position
  does not mirror our experience with these three customers;  and based on current
  facts and trends, we believe our bad debt reserves are adequate."
  
       Culp added, "One of the structural benefits of the capacity  consolidations
  that we completed during the first half is a more cohesive organization. Linking
  our design  resources  more  closely  with our  manufacturing  and  distribution
  facilities  is helping us adjust to  changes in styles and market  needs  faster
  with more reliable service.  This extends  throughout our entire product line of
  upholstery fabrics and mattress ticking.
  
       "As we started  fiscal 2002,  we knew that it would be imperative to manage
  our working  capital  and other key  components  of our balance  sheet even more
  closely to minimize the impact of the  industry-wide  slowdown on our  financial
  position.  Our performance in terms of building liquidity for the second quarter
  extended the momentum from the first period.  Our debt of $110.6  million at the
  close  of the  quarter  was down  $16.0  million  from a year ago and was  $27.0
  million below our long-term  borrowings of $137.5 million at the close of fiscal
  2000, 18 months ago. Our capital expenditures for fiscal 2002 remain targeted at
  approximately $4 million, compared with $8.1 million in fiscal 2001."
  Culp,  Inc. is one of the world's largest  marketers of upholstery  fabrics
  for furniture  and is a leading  marketer of mattress  ticking for bedding.  The
  Company's  fabrics are used  principally in the  production of  residential  and
  commercial furniture and bedding products.
  
       This  release  contains  statements  that  may be  deemed  "forward-looking
  statements"  within the meaning of the federal  securities  laws,  including the
  Private Securities Litigation Reform Act of 1995. Such statements are inherently
  subject to risks and  uncertainties.  Forward-looking  statements are statements
  that include projections, expectations or beliefs about future events or results
  or otherwise are not statements of historical  fact.  Such  statements are often
  characterized  by  qualifying  words such as  "expect,"  "believe,"  "estimate,"
  "plan" and "project"  and their  derivatives.  Factors that could  influence the
  matters  discussed in such  statements  include the level of housing  starts and
  sales of existing homes,  consumer  confidence,  trends in disposable income and
  general economic conditions. Decreases in these economic indicators could have a
  negative effect on the company's business and prospects.  Likewise, increases in
  interest rates, particularly home mortgage rates, and increases in consumer debt
  or the general rate of inflation, could affect the company adversely. Because of
  the  significant  percentage of the company's  sales derived from  international
  shipments,  strengthening of the U.S. dollar against other currencies could make
  the company's products less competitive on the basis of price in markets outside
  the  United  States.   Additionally,   economic  and  political  instability  in
  international areas could affect the demand for the company's products.
  
                                     CULP, INC.
                           Condensed Financial Highlights
                                    (Unaudited)
                                                      Three Months Ended
                                               -------------------------------
                                                 October 28,       October 29,
                                                    2001              2000
                                               --------------    -------------
  Net sales                                    $   96,400,000    $ 110,981,000
  Net income                                   $      857,000    $     342,000
  Net income per share:
    Basic                                      $         0.08    $        0.03
    Diluted                                    $         0.08    $        0.03
  Net income per diluted share, excluding
    restructuring and related charges*         $         0.09    $        0.03
  Average shares outstanding:
    Basic                                          11,221,000       11,209,000
    Diluted                                        11,281,000       11,270,000
  
                                                      Six Months Ended
                                               -------------------------------
                                                 October 28,       October 29,
                                                    2001              2000
                                               ---------------   -------------
  Net sales                                    $  182,863,000    $ 212,859,000
  Net (loss)                                   $   (2,025,000)   $  (1,414,000)
  Net (loss) per share:
    Basic                                      $        (0.18)   $       (0.13)
    Diluted                                    $        (0.18)   $       (0.13)
  Net (loss) per diluted share, excluding
    restructuring and related charges*         $        (0.03)   $       (0.13)
  Average shares outstanding:
    Basic                                          11,221,000       11,209,000
    Diluted                                        11,221,000       11,209,000
  
  * Excludes  restructuring and related charges of $0.2 million ($0.1 million,  or
    $0.01 per share  diluted,  after  taxes) in the second  quarter of fiscal 2002
    and $2.5 million  ($1.6 million or $0.15 per share  diluted,  after taxes) for
    the first half of fiscal 2002.
  
                                        - END -
  CULP, INC. FINANCIAL INFORMATION RELEASE
                      CONSOLIDATED STATEMENTS OF INCOME (LOSS)
   FOR THE THREE MONTHS AND SIX MONTHS ENDED OCTOBER 28, 2001 AND OCTOBER 29, 2000
                  (Amounts in Thousands, Except for Per Share Data)
  THREE MONTHS ENDED (UNAUDITED)
                                           -------------------------------------------------------------------------
                                                    Amounts                                   Percent of Sales
                                           ---------------------------                   ---------------------------
                                            October 28,   October 29,     % Over
                                               2001          2000         (Under)           2002          2001
                                           ------------- -------------  ------------     ------------  -------------
  Net sales                             $        96,400       110,981       (13.1) %           100.0 %       100.0 %
  Cost of sales                                  80,858        94,094       (14.1) %            83.9 %        84.8 %
                                           ------------- -------------  ------------     ------------  -------------
          Gross profit                           15,542        16,887        (8.0) %            16.1 %        15.2 %
  
  Selling, general and
    administrative expenses                      11,550        13,491       (14.4) %            12.0 %        12.2 %
  Restructuring expense                               0             0         0.0  %             0.0 %         0.0 %
                                           ------------- -------------  ------------     ------------  -------------
          Income from operations                  3,992         3,396        17.6  %             4.1 %         3.1 %
  
  Interest expense                                1,963         2,285       (14.1) %             2.0 %         2.1 %
  Interest income                                   (34)          (15)      126.7  %            (0.0)%        (0.0)%
  Other expense (income), net                       765           575        33.0  %             0.8 %         0.5 %
                                           ------------- -------------  ------------     ------------  -------------
          Income before income taxes              1,298           551       135.6  %             1.3 %         0.5 %
  
  Income taxes  *                                   441           209       111.0  %            34.0 %        37.9 %
                                           ------------- -------------  ------------     ------------  -------------
          Net income                    $           857           342       150.6  %             0.9 %         0.3 %
                                           ============= =============  ============     ============  =============
  
  Net income per share                            $0.08         $0.03       166.7  %
  Net income per share, assuming dilution         $0.08         $0.03       166.7  %
  Net income per share, excluding
    restructuring and related charges  **         $0.09         $0.03       200.0  %
  Average shares outstanding                     11,221        11,209         0.1  %
  Average shares outstanding, assuming dilution  11,281        11,270         0.1  %
  
                                                                 SIX MONTHS ENDED (UNAUDITED)
                                           -------------------------------------------------------------------------
                                                    Amounts                                   Percent of Sales
                                           ---------------------------                   ---------------------------
                                           October 28,   October 29,      % Over
                                               2001          2000         (Under)           2002          2001
                                           ------------- -------------  ------------     ------------  -------------
  Net sales                             $       182,863       212,859      (14.1) %           100.0 %       100.0 %
  Cost of sales                                 156,532       181,798      (13.9) %            85.6 %        85.4 %
                                           ------------- -------------  ------------     ------------  -------------
          Gross profit                           26,331        31,061      (15.2) %            14.4 %        14.6 %
  
  Selling, general and
    administrative expenses                      22,785        27,269      (16.4) %            12.5 %        12.8 %
  Restructuring expense                           1,303             0      100.0  %             0.7 %         0.0 %
                                           ------------- -------------  ------------     ------------  -------------
          Income from operations                  2,243         3,792      (40.8) %             1.2 %         1.8 %
  
  Interest expense                                4,031         4,608      (12.5) %             2.2 %         2.2 %
  Interest income                                   (57)          (22)     159.1  %            (0.0)%        (0.0)%
  Other expense (income), net                     1,337         1,316        1.6  %             0.7 %         0.6 %
                                           ------------- -------------  ------------     ------------  -------------
          Loss before income taxes               (3,068)       (2,110)     (45.4) %            (1.7)%        (1.0)%
  
  Income taxes  *                                (1,043)         (696)     (49.9) %            34.0 %        33.0 %
                                           ------------- -------------  ------------     ------------  -------------
  
          Net loss                      $        (2,025)       (1,414)     (43.2) %            (1.1)%        (0.7)%
                                           ============= =============  ============     ============  =============
  
  Net loss per share                             ($0.18)       ($0.13)     (38.5) %
  Net loss per share, assuming dilution          ($0.18)       ($0.13)     (38.5) %
  Net (loss) per share, excluding
    restructuring and related charges  **        ($0.03)       ($0.13)      76.9  %
  Average shares outstanding                     11,221        11,209        0.1  %
  Average shares outstanding, assuming dilution  11,221        11,209        0.1  %
  
  * Percent of sales column is  calculated  as a % of income  (loss) before income taxes.
  ** Excludes  restructuring  and related  charges of $0.2 million  ($0.1 million or $.01 per share  diluted,  after taxes)
     in the second quarter of 2002, and $2.5 million ($1.6 million or $.15 per share diluted, after taxes) year to date in 2002.
  CULP, INC. FINANCIAL INFORMATION RELEASE
                             CONSOLIDATED BALANCE SHEETS
                 OCTOBER 28, 2001, OCTOBER 29, 2000, APRIL 29, 2001
                                      Unaudited
                               (Amounts in Thousands)
  Amounts                                Increase
                                                 --------------------------------------           (Decrease)
                                                      October 28,        October 29,     -------------------------------   * April 29,
                                                         2001                2000            Amount          Percent           2001
                                                  --------------------  ---------------  ---------------     -----------   -----------
  Current assets
         Cash and cash investments              $               8,590              744           7,846       1,054.6  %          1,207
         Accounts receivable                                   49,402           63,991         (14,589)        (22.8) %         57,849
         Inventories                                           60,814           72,967         (12,153)        (16.7) %         59,997
         Other current assets                                   9,851           11,003          (1,152)        (10.5) %          7,856
                                                  --------------------  ---------------  ---------------     -----------   -----------
                    Total current assets                      128,657          148,705         (20,048)        (13.5) %        126,909
  
  Property, plant & equipment, net                            105,697          120,023         (14,326)        (11.9) %        112,322
  Goodwill                                                     47,781           49,176          (1,395)         (2.8) %         48,478
  Other assets                                                  1,682            6,508          (4,826)        (74.2) %          1,871
                                                  --------------------  ---------------  ---------------     -----------   -----------
  
                    Total assets                $             283,817          324,412         (40,595)        (12.5) %        289,580
                                                  ====================  ===============  ===============     ===========   ===========
  
  Current liabilities
         Current maturities of long-term debt   $               3,136            1,678           1,458          86.9  %          2,488
         Accounts payable                                      25,870           30,351          (4,481)        (14.8) %         27,371
         Accrued expenses                                      17,196           22,404          (5,208)        (23.2) %         17,153
         Income taxes payable                                       0                0               0           0.0  %          1,268
                                                  --------------------  ---------------  ---------------     -----------   -----------
                    Total current liabilities                  46,202           54,433          (8,231)        (15.1) %         48,280
  
  Long-term debt                                              107,447          125,079         (17,632)        (14.1) %        109,168
  
  Deferred income taxes                                        10,330           17,459          (7,129)        (40.8) %         10,330
                                                  --------------------  ---------------  ---------------     -----------   -----------
                    Total liabilities                         163,979          196,971         (32,992)        (16.7) %        167,778
  
  Shareholders' equity                                        119,838          127,441          (7,603)         (6.0) %        121,802
                                                  --------------------  ---------------  ---------------     -----------   -----------
  
                    Total liabilities and
                    shareholders' equity        $             283,817          324,412         (40,595)        (12.5) %        289,580
                                                  ====================  ===============  ===============     ===========   ===========
  
  Shares outstanding                                           11,221           11,209              12           0.1  %         11,221
                                                  ====================  ===============  ===============     ===========   ===========
  *  Derived from audited financial statements.
  CULP, INC. FINANCIAL INFORMATION RELEASE
                        CONSOLIDATED STATEMENTS OF CASH FLOWS
           FOR THE SIX MONTHS ENDED OCTOBER 28, 2001 AND OCTOBER 29, 2000
                                      Unaudited
                               (Amounts in Thousands)
  SIX MONTHS ENDED
                                                                          ----------------------------------
                                                                                      Amounts
                                                                          --------------------------------
                                                                            October 28,      October 29,
                                                                               2001             2000
                                                                          ---------------  ---------------
  Cash flows from operating activities:
       Net loss                                                          $        (2,025)          (1,414)
       Adjustments to reconcile net loss to net cash
          provided by operating activities:
              Depreciation                                                         8,871           10,043
              Amortization of intangible assets                                      785              798
              Amortization of deferred compensation                                   39              125
              Restructuring expense                                                1,303                0
              Changes in assets and liabilities:
                  Accounts receivable                                              8,447           11,232
                  Inventories                                                       (817)           1,504
                  Other current assets                                            (2,006)            (654)
                  Other assets                                                       (17)             241
                  Accounts payable                                                 2,522             (859)
                  Accrued expenses                                                (1,067)             171
                  Income taxes payable                                            (1,268)               0
                                                                          ---------------  ---------------
                      Net cash provided by operating activities                   14,767           21,187
                                                                          ---------------  ---------------
  Cash flows from investing activities:
       Capital expenditures                                                       (2,288)          (3,659)
       Purchase of investments to fund deferred compensation liability                 0             (200)
                                                                          ---------------  ---------------
                      Net cash used in investing activities                       (2,288)          (3,859)
                                                                          ---------------  ---------------
  Cash flows from financing activities:
       Principal payments on long-term debt                                       (1,073)         (10,729)
       Change in accounts payable-capital expenditures                            (4,023)          (6,077)
       Dividends paid                                                                  0             (785)
                                                                          ---------------  ---------------
                      Net cash used in financing activities                       (5,096)         (17,591)
                                                                          ---------------  ---------------
  
  Increase (decrease) in cash and cash investments                                 7,383             (263)
  
  Cash and cash investments at beginning of period                                 1,207            1,007
                                                                          ---------------  ---------------
  
  Cash and cash investments at end of period                            $          8,590              744
                                                                          ===============  ===============
  CULP, INC. FINANCIAL INFORMATION RELEASE
                                 FINANCIAL ANALYSIS
                                  OCTOBER 28, 2001
  FISCAL 01                       FISCAL 02
                                                       -----------   ------------------------------------------------   -------------
                                                          Q2              Q1            Q2          Q3        Q4           LTM (3)
                                                       -----------   ------------------------------------------------   -------------
  INVENTORIES
         Inventory turns                                      5.1              5.1          5.4
  
  RECEIVABLES
         Days sales in receivables                             52               51           47
         Percent current & less than 30
           days past due                                    94.7%            91.9%        92.7%
  
  WORKING CAPITAL
         Current ratio                                        2.7              2.8          2.8
         Working capital turnover (2)                         4.2              4.1          4.1
         Operating working capital (2)                   $106,607          $86,586      $84,346
  
  PROPERTY, PLANT & EQUIPMENT
         Depreciation rate                                   7.9%             7.2%         7.1%
         Percent property, plant &
           equipment are depreciated                        52.6%            56.2%        58.1%
         Capital expenditures                              $8,050 (1)       $1,602         $686
  
  PROFITABILITY
         Return on average total capital                     2.7%           (2.7%)         3.7%                               (1.1%)
         Return on average equity                            1.1%           (9.6%)         2.9%                               (6.8%)
         Net income (loss) per share                        $0.03          ($0.26)        $0.08                              ($0.80)
         Net income (loss) per share (diluted)              $0.03          ($0.26)        $0.08                              ($0.80)
         Net income (loss) per share, excluding
           restructuring and related charges (5)            $0.03          ($0.12)        $0.09                              ($0.20)
  
  LEVERAGE
         Total liabilities/equity                          155.9%           136.6%       136.8%
         Funded debt/equity                                100.3%            93.1%        92.3%
         Funded debt/capital employed                       50.1%            48.2%        48.0%
         Funded debt                                     $126,757         $110,652     $110,583
         Funded debt/EBITDA (LTM) (4)                        3.59             4.26         4.26
  
  OTHER
         Book value per share                              $11.27           $10.59       $10.68
         Employees at quarter end                           3,623            3,018        3,000
         Sales per employee (annualized)                 $121,000         $113,000     $128,000
         Capital employed                                $253,096         $229,461     $230,421
         Effective income tax rate                          37.9%            34.0%        34.0%
         EBITDA (4)                                        $8,203           $4,731       $8,315                             $25,945
         EBITDA/net sales (4)                                7.4%             5.5%         8.6%                                6.8%
  
    (1) Expenditures for entire year
    (2) Working capital for this calculation is accounts receivable, inventories and accounts payable.
    (3) LTM represents "Latest Twelve Months"
    (4) EBITDA includes earnings before interest, income taxes, depreciation, amortization,  all restructuring and related
        charges and certain non-cash charges, as defined by the company's credit agreement.
    (5) Excludes restructuring and related charges in the second quarter of 2002 of $0.2 million ($0.1 million or $0.01 per share
        diluted, after taxes) and $9.9 million ($6.6 million or $0.60 per share diluted, after taxes) for the last twelve months.
  CULP, INC. FINANCIAL INFORMATION RELEASE
                               SALES BY PRODUCT GROUP
   FOR THE THREE MONTHS AND SIX MONTHS ENDED OCTOBER 28, 2001 AND OCTOBER 29, 2000
                               (Amounts in thousands)
  THREE MONTHS ENDED (UNAUDITED)
                                         ------------------------------------------------------------------
                                                  Amounts                           Percent of Total Sales
                                         --------------------------               -------------------------
                                         October 28,   October 29,     % Over
  Product Group                             2001          2000        (Under)         2002         2001
  ------------------------------------   ------------  ------------  -----------  -----------  ------------
  Upholstery Fabrics
      Culp Decorative Fabrics         $       38,492        46,792    (17.7) %        39.9 %       42.2 %
      Culp Velvets/Prints                     30,354        32,073     (5.4) %        31.5 %       28.9 %
      Culp Yarn                                1,532         4,134    (62.9) %         1.6 %        3.7 %
                                         ------------  ------------  -----------  -----------  ------------
                                              70,378        82,999    (15.2) %        73.0 %       74.8 %
  
  Mattress Ticking
      Culp Home Fashions                      26,022        27,982     (7.0) %        27.0 %       25.2 %
                                         ------------  ------------  -----------  -----------  ------------
  
                                    * $       96,400       110,981    (13.1) %       100.0 %      100.0 %
                                         ============  ============  ===========  ===========  ============
  
                                                               SIX MONTHS ENDED (UNAUDITED)
                                         ------------------------------------------------------------------
                                                  Amounts                           Percent of Total Sales
                                         --------------------------               -------------------------
                                         October 28,   October 29,     % Over
  Product Group                             2001          2000        (Under)        2002         2001
  ------------------------------------   ------------  ------------  -----------  -----------  ------------
  Upholstery Fabrics
      Culp Decorative Fabrics         $       73,652        88,325    (16.6) %        40.3 %       41.5 %
      Culp Velvets/Prints                     55,875        62,147    (10.1) %        30.5 %       29.2 %
      Culp Yarn                                2,498         7,453    (66.5) %         1.4 %        3.5 %
                                         ------------  ------------  -----------  -----------  ------------
                                             132,025       157,925    (16.4) %        72.2 %       74.2 %
  
  Mattress Ticking
      Culp Home Fashions                      50,838        54,934     (7.5) %        27.8 %       25.8 %
                                         ------------  ------------  -----------  -----------  ------------
  
                                    * $      182,863       212,859    (14.1) %       100.0 %      100.0 %
                                         ============  ============  ===========  ===========  ============
  * U.S.  sales were $82,280 and $87,022 for the second quarter of fiscal 2002 and
  fiscal  2001,  respectively;  and  $154,079  and  $169,312 for the six months of
  fiscal 2002 and 2001,  respectively.  The percentage  decrease in U.S. sales was
  5.4% for the second quarter and a decrease of 9.0% for the six months.
  CULP, INC. FINANCIAL INFORMATION RELEASE
                       INTERNATIONAL SALES BY GEOGRAPHIC AREA
   FOR THE THREE MONTHS AND SIX MONTHS ENDED OCTOBER 28, 2001 AND OCTOBER 29, 2000
                               (Amounts in thousands)
  THREE MONTHS ENDED (UNAUDITED)
                                      --------------------------------------------------------------------
                                                Amounts                           Percent of Total Sales
                                      -----------------------------             --------------------------
                                       October 28,    October 29,    % Over
        Geographic Area                   2001            2000       Under)         2002            2001
  -----------------------------       -------------- -----------  ----------    ------------    ----------
  North America (Excluding USA)      $        8,379       9,556    (12.3) %        59.3 %         39.9 %
  Europe                                        938       1,807    (48.1) %         6.6 %          7.5 %
  Middle East                                 1,311       5,489    (76.1) %         9.3 %         22.9 %
  Far East & Asia                             2,891       5,590    (48.3) %        20.5 %         23.3 %
  South America                                 177         279    (36.6) %         1.3 %          1.2 %
  All other areas                               424       1,238    (65.8) %         3.0 %          5.2 %
                                      -------------- -----------  ----------    ------------    ----------
  
                                     $       14,120      23,959    (41.1) %       100.0 %        100.0 %
                                      ============== ===========  ==========    ============    ==========
  
                                                             SIX MONTHS ENDED (UNAUDITED)
                                      --------------------------------------------------------------------
                                                Amounts                           Percent of Total Sales
                                      -----------------------------             --------------------------
                                       October 28,    October 29,   % Over
        Geographic Area                   2001            2000      (Under)         2002            2001
  -----------------------------       -------------- -----------  ----------    ------------    ----------
  North America (Excluding USA)  $           16,410      17,951     (8.6) %        57.1 %         41.2 %
  Europe                                      1,643       3,259    (49.6) %         5.7 %          7.5 %
  Middle East                                 4,214      10,532    (60.0) %        14.6 %         24.2 %
  Far East & Asia                             5,483       8,826    (37.9) %        19.0 %         20.3 %
  South America                                 336         585    (42.6) %         1.2 %          1.3 %
  All other areas                               698       2,394    (70.8) %         2.4 %          5.5 %
                                      -------------- -----------  ----------    ------------    ----------
  
                                 $           28,784      43,547    (33.9) %       100.0 %        100.0 %
                                      ============== ===========  ==========    ============    ==========
  International  sales,  and the  percentage of total sales,  for each of the last
  five fiscal years follows:  fiscal  1997-$101,571  (25%);  fiscal  1998-$137,223
  (29%);  fiscal  1999-$113,354  (23%);  fiscal  2000-$111,104  (23%);  and fiscal
  2001-$77,824 (19%). International sales for the second quarter represented 14.6%
  and 21.6%  for 2002 and 2001,  respectively.  Year-to-date  international  sales
  represented 15.7% and 20.5% of total sales for 2002 and 2001, respectively.
  CULP, INC. FINANCIAL INFORMATION RELEASE
                                 FINANCIAL NARRATIVE
          for the three months ended October 28, 2001 and October 29, 2000
  
  INCOME STATEMENT COMMENTS
  
       GENERAL  - For the  second  quarter,  net  sales  decreased  13.1% to $96.4
  million;  and the company  reported net income of  $857,000,  or $0.08 per share
  diluted,  (based on 11,281,000 average shares  outstanding) versus net income of
  $342,000,  or $0.03  per share  diluted,  (based on  11,270,000  average  shares
  outstanding)  in the second  quarter of fiscal 2001. For the first six months of
  fiscal  2002,  net sales  decreased  14.1% to $182.9  million,  and the  company
  reported  a net loss  $2.0  million,  or  $0.18  per  share  diluted  (based  on
  11,221,000 average shares  outstanding),  versus a net loss of $1.4 million,  or
  $0.13 per share diluted (based on 11,209,000  average share  outstanding  during
  the period),  a year ago. As described  below in "SG&A  EXPENSES," a significant
  factor  affecting the second quarter and first half was bad debt expense of $1.4
  million and $2.2 million, respectively ($0.08 and $0.13 per share, respectively,
  on an  after-tax  basis).  This  compares  with bad debt expense of $112,000 and
  $157,000 for the second quarter and first half of 2001, respectively.  Excluding
  restructuring  and related  charges,  earnings would have been $1.0 million,  or
  $0.09 per share diluted,  for the second quarter, and the loss for the first six
  months of fiscal 2002 would have been $375,000, or ($0.03) per share diluted.
  
       The company's  long-term,  strategic plan encompasses  several  competitive
  initiatives:
  
       Broad Product  Offering - continuing to market one of the broadest  product
       lines in  upholstery  fabrics and mattress  ticking.  Through its extensive
       manufacturing  capabilities,  the company competes in most major categories
       except leather;
  
       Diverse  Customer Base - maintaining a diverse  customer  base. The company
       has  long-standing  relationships  with  most  major  upholstery  furniture
       manufacturers.  Ownership of resources in the home furnishings  industry is
       becoming increasingly  concentrated,  and the company has successfully been
       able to  capitalize  on its size and product  breadth to supply more of the
       needs  of  existing  customers.  Culp is  pursuing  opportunities  in other
       end-use markets in addition to U.S. residential furniture and bedding, such
       as international, commercial furniture and juvenile furniture;
  
       Design  Innovation  -  supplying  fabrics  that are  fashionable  and match
       current consumer preferences.  The company's principal design resources are
       consolidated  in a  single  facility  that has  advanced  computer-assisted
       design  systems and promotes  sharing of innovative  designs across product
       lines.  Culp encourages  active  customer  involvement in the entire design
       process; and
  
       Vertical  Integration - operating as a vertically  integrated  manufacturer
       and  taking  advantage  of  economies,  quality,  supply  availability  and
       efficiencies  that can be gained by producing  the raw material  components
       that are used in the manufacture of its products.
  
  RESTRUCTURING   ACTIONS  -  During   fiscal  2001,   the  company   initiated  a
  restructuring plan intended to lower operating expenses,  increase manufacturing
  utilization,  raise  productivity and position the company to operate profitably
  within  the  current  environment  of  reduced  demand.  The plan  involved  the
  consolidation  of  certain  fabric   manufacturing   capacity  within  the  Culp
  Decorative   Fabrics   division,   closing  one  of  the  company's   four  yarn
  manufacturing  plants within Culp Yarn,  and an extensive  reduction in selling,
  general  and  administrative  expenses.  The  company  also  recognized  certain
  inventory  write-downs  related  to  the  closed  facilities  as  part  of  this
  initiative.  The  total  charge  from  the  restructuring,  cost  reduction  and
  inventory write-down  initiatives was $9.9 million,  about $3.6 million of which
  represented non-cash items. The company recognized $7.4 million of restructuring
  and related  charges  during fiscal 2001,  and $2.5 million in the first half of
  fiscal 2002. For the second quarter, restructuring- related charges totaled $0.2
  million and were recorded in "Cost of sales." For the first six months of fiscal
  2002,  restructuring  and related  charges were  recorded as $1.3 million in the
  line item "Restructuring expense" and $1.2 million in "Cost of sales." The costs
  reflected  in "Cost of sales"  are  principally  related  to the  relocation  of
  manufacturing equipment. The company plans to realize annualized cost reductions
  of at least $14  million  when the full  benefit of this  program  is  realized.
  Management  believes  the  company  now  has a  sound  footprint  of  efficient,
  world-class facilities utilizing  state-of-the-art  equipment that position Culp
  well to meet the  demands by  manufacturers  for shorter  lead  times,  reliable
  delivery schedules and appealing designs.
  
       NET SALES - Compared  with fiscal  2001,  upholstery  fabric  sales for the
  second  quarter of fiscal 2002 decreased  15.2% to $70.4 million,  and decreased
  16.4% to $132  million  for the first six  months of fiscal  2002 (See  Sales by
  Product  Group  schedule on Page 5).  Reflecting  a  continuation  of the trends
  identified in the first  quarter,  the  upholstery  fabric sales decrease in the
  second quarter  represents:  (1) a sharp reduction  (44.2%,  or $8.4 million) in
  international  sales,  principally  reflecting the high value of the U.S. dollar
  relative to  international  currencies;  (2) a decrease  in external  yarn sales
  (62.9% or $2.6 million) due to the company's internal consumption of more of the
  yarn  division's  output and exit from  certain yarn  businesses  as part of the
  restructuring  plan; and (3) a decrease in sales to contract furniture customers
  ($1.4 million).  Sales to U.S. residential furniture manufacturers in the second
  quarter of fiscal 2002  decreased  only $0.2  million  compared  with the second
  quarter of fiscal 2001.  The company  believes  that it is improving  its market
  share in the U.S.  residential market because of well-received fabric placements
  in the Culp  Decorative  Fabrics and Culp  Velvets/Prints  product  groups.
  
  Compared  with fiscal 2001,  mattress  ticking  sales for the second  quarter of
  fiscal 2002 decreased  7.0% to $26 million,  and decreased 7.5% to $50.8 million
  for the first six months of fiscal 2002. The sales decrease in mattress  ticking
  reflects an overall slowdown in industry-wide demand for bedding in the U.S.
  
       GROSS PROFIT - Gross profit included  restructuring-related charges of $0.2
  million.  Excluding  these  charges,  gross profit  declined 7.0% for the second
  quarter of fiscal 2002 compared with the year-earlier  period but increased as a
  percentage  of net sales  from  15.2% to 16.3%.  The  increase  in gross  profit
  percentage  reflects the benefit of the  restructuring  steps and other  actions
  that have been taken to reduce  expenses.  The  company  achieved  higher  gross
  margins  in each of its  product  groups  except  for  Culp  Decorative  Fabrics
  ("CDF"). The principal factors affecting CDF have been higher cost variances due
  to  lower  sales  volume  and  lower  manufacturing   productivity  due  to  the
  consolidation   activities   that  have  been   concentrated   within  CDF.  The
  productivity  of CDF during the second quarter  improved from the first quarter,
  and Culp expects that positive trend to continue during the second fiscal half.
  
       SG&A EXPENSES - Reflecting  the impact of the  company's  actions to reduce
  expenses,  SG&A expenses for the second  quarter  declined  14.4% from the prior
  year.  SG&A  expenses in the second  quarter  included  bad debt expense of $1.4
  million  compared  with  $112,000  in  the  year-earlier  period.   Without  the
  additional  bad debt expense,  SG &A expenses  were reduced by $3.3 million,  or
  24.8%, and were 10.5% of net sales. For the first six months of fiscal 2002, bad
  debt expense totaled $2.2 million. Without the additional bad debt expense, SG&A
  expenses for the first six months were reduced by $6.7  million,  or 24.5%,  and
  were  11.3% of net  sales.  The  increase  in bad debt  expense  from a year ago
  reflects  primarily  write-offs  of one  bedding and two  residential  furniture
  customers.
  
       INTEREST  EXPENSE - Interest  expense for the second quarter declined 14.1%
  from  $2.3  million  to  $2.0  million  due to  significantly  lower  borrowings
  outstanding, offset somewhat by a substantial increase in interest rates.
  
       OTHER EXPENSE (INCOME), NET - Other expense (income) for the second quarter
  of fiscal 2002 totaled  $765,000  compared with $575,000 in the prior year.  The
  increase  reflects the accrual for certain  litigation  expenses,  offset by the
  elimination of the nonqualified deferred compensation plan terminated in January
  2001 as a part of the company's  cost  reduction  initiatives.
  
       INCOME TAXES - The effective tax rate for the first half of fiscal 2002 was
  34.0% compared with 33.0% for the year-earlier period.
  
       EBITDA - EBITDA for the  second  quarter  of fiscal  2002 was $8.3  million
  compared  with $8.2 million for the second  quarter of last year,  and was $13.0
  million for the first half of fiscal  2002  compared  with $13.3  million in the
  year-earlier  period.  EBITDA includes  earnings before interest,  income taxes,
  depreciation,  amortization,  all  restructuring and related charges and certain
  non-cash charges, as defined by the company's credit agreement.
  
  BALANCE SHEET COMMENTS
  
       CASH AND CASH  INVESTMENTS  - Cash and cash  investments  as of October 28,
  2001 increased to $8.6 million from $1.2 million at fiscal year end,  reflecting
  cash flow from  operations  of $14.8  million for the first half of fiscal 2002,
  which exceeded  capital  expenditures of $2.3 million and debt repayment of $5.1
  million.
  
       WORKING  CAPITAL - Accounts  receivable  as of October 28,  2001  decreased
  22.8% from the  year-earlier  level, due principally to the decline in sales and
  the company's focus on sustaining a liquid working capital position.  Days sales
  outstanding totaled 47 days at October 28, 2001 compared with 52 a year ago. The
  aging of accounts  receivable  was 92.7%  current and less than 30 days past due
  versus  94.7%  a year  ago.  Inventories  at the  close  of the  second  quarter
  decreased 16.7% from a year ago. Inventory turns for the second quarter were 5.4
  versus 5.1 for the year-earlier period.  Operating working capital (comprised of
  accounts  receivable,  inventory  and  accounts  payable)  was $84.3  million at
  October 28, 2001, down from $106.6 million a year ago.
  
       PROPERTY,  PLANT AND  EQUIPMENT  - Capital  spending  for the six months of
  fiscal 2002 decreased to $2.3 million. The company's budget for capital spending
  for fiscal 2002 is $4.0  million,  compared  with $8.1  million in fiscal  2001.
  Depreciation for the second quarter of fiscal 2002 totaled $4.4 million.
  
       LONG-TERM  DEBT - The company has reduced  funded debt by $16.2  million or
  12.8% from the second  quarter of last year.  Funded debt equals  long-term debt
  plus  current  maturities.  Funded debt was $110.6  million at October 28, 2001,
  compared with $126.8  million a year ago and $111.7  million at fiscal year end.
  Compared with 50.1% a year ago, the company's funded  debt-to-capital  ratio was
  48% at October 28, 2001,  its lowest level since July 1997.  During fiscal 2001,
  the company  amended  its credit  facility to include  terms that  restrict  the
  payment of cash  dividends  and share  repurchases  at this time,  limit capital
  expenditures,  increase the interest rate on its revolving  credit facility from
  LIBOR plus 1.60% to LIBOR plus 4.00% and  increase  the letter of credit fees on
  IRBs from 1.10% to 4.00%.  The  amended  credit  facility  lowered the amount of
  funds available under the facility from $88 million to $20 million.  The company
  had outstanding borrowings of approximately $1 million under the facility at the
  end of the second quarter of fiscal 2002. The company was in compliance with its
  loan agreements as of October 28, 2001. Other than the credit facility, required
  principal  payments under the respective loan agreements during the remainder of
  fiscal  2002 and  during  fiscal  2003  total  $1.5  million  and $2.2  million,
  respectively.