content: --------------------------------------------------------------------------------
  
  
                         SECURITIES AND EXCHANGE COMMISSION
                               Washington, D.C. 20549
  
                                      ---------
  
                                      Form 8-K
  
                                   CURRENT REPORT
  
                  Pursuant to Section 13 or 15(d) of the Securities
                                Exchange Act of 1934
  
                                    -------------
  
         Date of Report (Date of earliest event reported) February 14, 2000
  
                                     CULP, INC.
  
               (Exact name of registrant as specified in its charter)
  
  
        North Carolina                 0-12781                 56-1001967
  (State or other jurisdiction  (Commission File No.)       (IRS Employer
       of incorporation)                                  Identification No.)
  
  
  
                                101 South Main Street
                          High Point, North Carolina 27260
                      (Address of principal executive offices)
                                   (336) 889-5161
                (Registrant's telephone number, including area code)
  
  
  
  
            -------------------------------------------------------------
            (Former name or former address, if changed since last report)
  
  
  
  
  
  --------------------------------------------------------------------------------
  
  
  
  
  
  
  <PAGE>
  
  
  
  Item 5. Other Events
  
  See  attached  Press  Release (3 pages) and  Financial  Information  Release (10
  pages),  both dated February 14, 2000,  related to the fiscal 2000 third quarter
  ended January 30, 2000.
  
  Forward  Looking  Information.  This Report  contains  statements  that could be
  deemed "forward-looking statements" within the meaning of the federal securities
  laws,  including  the Private  Securities  Litigation  Reform Act of 1995.  Such
  statements are inherently  subject to risks and  uncertainties.  Forward-looking
  statements  are statements  that include  projections,  expectations  or beliefs
  about future  events or results or otherwise  are not  statements  of historical
  fact.  Such  statements  are often  characterized  by  qualifying  words such as
  "expect,"  "believe,"  "estimate,"  "plan and "project"  and their  derivatives.
  Factors that could influence the matters  discussed in such  statements  include
  the level of housing starts and sales of existing  homes,  consumer  confidence,
  trends in disposable income, and general economic conditions. Decreases in these
  economic  indicators could have a negative effect on the Company's  business and
  prospects.  Likewise,  increases in interest rates,  particularly  home mortgage
  rates,  and increases in consumer  debt or the general rate of inflation,  could
  affect the  Company  adversely.  Because of the  significant  percentage  of the
  Company's sales derived from international shipments, strengthening of the U. S.
  dollar  against  other  currencies  could  make  the  Company's   products  less
  competitive  on the  basis  of price  in  markets  outside  the  United  States.
  Additionally,  economic and political  instability in international  areas could
  affect the demand for the Company's products.
  
  
  
                                                        SIGNATURE
  
  
  Pursuant  to the  requirements  of the  Securities  Exchange  Act of  1934,  the
  Registrant  has duly  caused  this  report  to be  signed  on its  behalf by the
  undersigned hereunto duly authorized.
  
  
                                             CULP, INC.
                                             (Registrant)
  
  
                                   By:       Phillip W. Wilson
                                             Vice President and
                                             Chief Financial Officer
  
  
  Dated:   February 14, 2000
  <PAGE>
  
  FOR IMMEDIATE RELEASE
  
  
           CULP REPORTS HIGHER THIRD QUARTER SALES AND EARNINGS PER SHARE
                               ----------------------
                 NINE-MONTH GAINS UNDERSCORE IMPROVED PROFITABILITY
  
  HIGH POINT,  N. C. (Feb.  14,  2000) - Culp,  Inc.  (NYSE:  CFI) today  reported
  increased  sales and  earnings  per share for the third  quarter  and first nine
  months of its 2000 fiscal year.
  
       For the three months ended January 30, 2000, Culp reported net sales $113.2
  million,  up from $112.1 million a year ago. The company reported net income for
  the quarter of $1.4  million,  or $0.13 per share  diluted,  compared  with $1.5
  million, or $0.12 per share diluted, in the year-earlier period.
  
       Net sales for the first nine months of fiscal 2000 totaled $358.7  million,
  up from $350.9 million a year ago. The company reported net income for the first
  nine  months of $6.2  million,  or $0.52 per share  diluted,  compared  with net
  income of $206,000, or $0.02 per share diluted, in the year-earlier period.
  
       Robert G. Culp, III, chief executive officer,  commented,  "As we enter the
  fourth  fiscal  quarter,  the  trends  in our  business  are  not as  strong  as
  anticipated;  but results for the nine months affirm our expectation that fiscal
  2000 as a whole is going to represent a year of solid  improvement for Culp. The
  third fiscal quarter is  historically  not the strongest  period of the year for
  our business due to seasonal factors.  We did achieve higher sales, and the gain
  in earnings per share for the three months highlights the benefit of our ongoing
  stock repurchase  program.  Our business during the quarter  underscores how the
  lead  times are  continuing  to shorten  for  furniture  manufacturers  to order
  materials,  including  our fabrics and  mattress  ticking.  We believe that this
  structural  change in the industry's  supply chain is  fundamentally  playing to
  Culp's  strengths,  but it is  more  difficult  for us to  forecast  sales  on a
  short-term basis.
  
       "Economic  conditions  appear to be  favoring  a  relatively  high level of
  consumer demand for home furnishings. Reports from furniture retailers generally
  support  that  the  industry  environment  is  positive.  Our  challenge  is  to
  capitalize  on  the  product  breadth,   proven   manufacturing   resources  and
  demonstrated  commitment to customer service that comprise the hallmark of Culp.
  A key element  that links each of these  components  is a  comprehensive  design
  program to assure our  customers  that their  products  will  successfully  meet
  consumer demand. We have the benefit of a fully integrated manufacturing process
  including  state-of-the-art yarn manufacturing  capability and are excited about
  the  opportunity  to use the design process as a means of building even stronger
  working relationships with customers."
  
       Culp added,  "We have the  competitive  advantage  of access to  sufficient
  capital  to  continue  modernizing  and  expanding  our  physical  assets  while
  broadening our use of information  technology in all aspects of our  operations.
  Capital  expenditures are expected to total approximately $23 million for fiscal
  2000,  up from $10.7  million in fiscal 1999. We have also invested $6.6 million
  through the first nine months to  repurchase  more of our shares.  We  currently
  have remaining authorization from the Board of Directors to invest an additional
  $7.9 million in this program."
  
       Culp,  Inc. is one of the world's largest  marketers of upholstery  fabrics
  for furniture  and is a leading  marketer of mattress  ticking for bedding.  The
  Company's  fabrics are used  principally in the  production of  residential  and
  commercial furniture and bedding products.
  
  
  <PAGE>
  
  
                                                       CULP, INC.
                                             Condensed Financial Highlights
                                                       (Unaudited)
  
                                               Three Months Ended
                                          January 30,               January 31,
                                             2000                      1999
  Net sales                          $        113,181,000      $       112,093,000
  Net income                         $          1,432,000      $         1,539,000
  Net income per share:
     Basic                           $               0.13      $              0.12
     Diluted                         $               0.13      $              0.12
  Average shares outstanding:
     Basic                                     11,296,000               12,995,000
     Diluted                                   11,389,000               13,124,000
  
                                                Nine Months Ended
                                           January 30,            January 31,
                                              2000                      1999
  Net sales                          $        358,660,000       $      350,919,000
  Net income                         $          6,189,000       $          206,000
  Net income per share:
     Basic                           $               0.53       $             0.02
     Diluted                         $               0.52       $             0.02
  Average shares outstanding:
     Basic                                     11,703,000               12,997,000
     Diluted                                   11,816,000               13,171,000
  
  This  release  contains   statements  that  could  be  deemed   "forward-looking
  statements"  within the meaning of the federal  securities  laws,  including the
  Private Securities Litigation Reform Act of 1995. Such statements are inherently
  subject to risks and  uncertainties.  Forward-looking  statements are statements
  that include projections, expectations or beliefs about future events or results
  or otherwise are not statements of historical  fact.  Such  statements are often
  characterized  by  qualifying  words such as  "expect,"  "believe,"  "estimate,"
  "plan" and "project"  and their  derivatives.  Factors that could  influence the
  matters  discussed in such  statements  include the level of housing  starts and
  sales of existing homes,  consumer  confidence,  trends in disposable income and
  general economic conditions. Decreases in these economic indicators could have a
  negative effect on the company's business and prospects.  Likewise, increases in
  interest rates, particularly home mortgage rates, and increases in consumer debt
  or the general rate of inflation, could affect the company adversely. Because of
  the  significant  percentage of the company's  sales derived from  international
  shipments,  strengthening of the U.S. dollar against other currencies could make
  the company's products less competitive on the basis of price in markets outside
  the  United  States.   Additionally,   economic  and  political  instability  in
  international areas could affect the demand for the company's products.
  
                                                        - END -
  
  
  
  
  
  
  
  
  <PAGE>
                      CULP, INC. FINANCIAL INFORMATION RELEASE
                          CONSOLIDATED STATEMENTS OF INCOME
  FOR THE THREE MONTHS AND NINE MONTHS ENDED JANUARY 30, 2000 AND JANUARY 31, 1999
  
                  (Amounts in Thousands, Except for Per Share Data)
  <TABLE>
  <CAPTION>
  
                                                                        THREE MONTHS ENDED (UNAUDITED)
                                               ---------------------------------------------------------------------------------
  
                                                          Amounts                                          Percent of Sales
                                               -------------------------------                       -----------------------------
                                                January 30,     January 31,        % Over
                                                   2000             1999          (Under)               2000            1999
                                               --------------  ---------------  -------------        --------------  -------------
  <S>                                       <C>                     <C>              <C>                <C>             <C>
  Net sales                                 $        113,181          112,093          1.0 %              100.0 %         100.0 %
  Cost of sales                                       94,712           92,911          1.9 %               83.7 %          82.9 %
                                               --------------  ---------------  -------------        --------------  -------------
           Gross profit                               18,469           19,182         (3.7)%               16.3 %          17.1 %
  
  Selling, general and
    administrative expenses                           13,949           14,100         (1.1)%               12.3 %          12.6 %
                                               --------------  ---------------  -------------        --------------  -------------
           Income from operations                      4,520            5,082        (11.1)%                4.0 %           4.5 %
  
  Interest expense                                     2,366            2,308          2.5 %                2.1 %           2.1 %
  Interest income                                         (8)             (10)       (20.0)%               (0.0)%          (0.0)%
  Other expense (income), net                            229              492        (53.5)%                0.2 %           0.4 %
                                               --------------  ---------------  -------------        --------------  -------------
           Income before income taxes                  1,933            2,292        (15.7)%                1.7 %           2.0 %
  
  Income taxes  *                                        501              753        (33.5)%               25.9 %          32.9 %
                                               --------------  ---------------  -------------        --------------  -------------
  
           Net income                       $          1,432            1,539         (7.0)%                1.3 %           1.4 %
                                               ==============  ===============  =============        ==============  =============
  
  Net income per share                                 $0.13            $0.12          8.3 %
  Net income per share, assuming dilution              $0.13            $0.12          8.3 %
  Dividends per share                                 $0.035           $0.035          0.0 %
  Average shares outstanding                          11,296           12,995        (13.1)%
  Average shares outstanding, assuming dilution       11,389           13,124        (13.2)%
  
  
  
                                                                        NINE MONTHS ENDED (UNAUDITED)
                                               ---------------------------------------------------------------------------------
  
                                                          Amounts                                          Percent of Sales
                                               -------------------------------                       -----------------------------
                                                January 30,     January 31,        % Over
                                                   2000             1999          (Under)               2000            1999
                                               --------------  ---------------  -------------        --------------  -------------
  
  Net sales                                 $        358,660          350,919          2.2 %              100.0 %         100.0 %
  Cost of sales                                      296,072          297,652         (0.5)%               82.5 %          84.8 %
                                               --------------  ---------------  -------------        --------------  -------------
           Gross profit                               62,588           53,267         17.5 %               17.5 %          15.2 %
  
  Selling, general and
    administrative expenses                           45,022           44,047          2.2 %               12.6 %          12.6 %
                                               --------------  ---------------  -------------        --------------  -------------
           Income from operations                     17,566            9,220         90.5 %                4.9 %           2.6 %
  
  Interest expense                                     7,266            7,133          1.9 %                2.0 %           2.0 %
  Interest income                                        (41)             (82)       (50.0)%               (0.0)%          (0.0)%
  Other expense (income), net                          1,200            1,866        (35.7)%                0.3 %           0.5 %
                                               --------------  ---------------  -------------        --------------  -------------
           Income before income taxes                  9,141              303      2,916.8 %                2.5 %           0.1 %
  
  Income taxes  *                                      2,952               97      2,943.3 %               32.3 %          32.0 %
                                               --------------  ---------------  -------------        --------------  -------------
  
           Net income                       $          6,189              206      2,904.4 %                1.7 %           0.1 %
                                               ==============  ===============  =============        ==============  =============
  
  Net income per share                                 $0.53            $0.02      2,550.0 %
  Net income per share, assuming dilution              $0.52            $0.02      2,500.0 %
  Dividends per share                                 $0.105           $0.105          0.0 %
  Average shares outstanding                          11,703           12,997        (10.0)%
  Average shares outstanding, assuming dilution       11,816           13,171        (10.3)%
  
  </TABLE>
  
   * Percent of sales column is calculated as a % of income before income
  taxes.
  <PAGE>
                      CULP, INC. FINANCIAL INFORMATION RELEASE
                             CONSOLIDATED BALANCE SHEETS
                 JANUARY 30, 2000, JANUARY 31, 1999 AND MAY 2, 1999
                                      Unaudited
                               (Amounts in Thousands)
  <TABLE>
  <CAPTION>
  
                                                               Amounts                             Increase
                                                ---------------------------------------           (Decrease)                * May 2,
                                                    January 30,        January 31,     ---------------------------------
                                                       2000                1999            Dollars         Percent           1999
                                                --------------------  ---------------  ----------------    -------------  ------------
  <S>                                         <C>                     <C>               <C>                <C>             <C>
  Current assets
         Cash and cash investments            $                 568              655               (87)       (13.3)%             509
         Accounts receivable                                 65,788           63,090             2,698          4.3 %          70,503
         Inventories                                         80,874           69,210            11,664         16.9 %          67,070
         Other current assets                                 9,016            7,560             1,456         19.3 %           9,633
                                                --------------------  ---------------  ----------------    -------------  ------------
                    Total current assets                    156,246          140,515            15,731         11.2 %         147,715
  
  Restricted investments                                      1,047            3,416            (2,369)       (69.4)%           3,340
  Property, plant & equipment, net                          123,303          125,885            (2,582)        (2.1)%         123,310
  Goodwill                                                   50,222           51,615            (1,393)        (2.7)%          51,269
  Other assets                                                5,388            5,017               371          7.4 %           4,978
                                                --------------------  ---------------  ----------------    -------------  ------------
  
                    Total assets              $             336,206          326,448             9,758          3.0 %         330,612
                                                ====================  ===============  ================    =============  ============
  
  
  
  Current liabilities
         Current maturities of long-term debt $               1,678            1,678                 0          0.0 %           1,678
         Accounts payable                                    35,347           25,808             9,539         37.0 %          25,687
         Accrued expenses                                    20,878           17,317             3,561         20.6 %          21,026
         Income taxes payable                                   903                0               903        100.0 %               0
                                                --------------------  ---------------  ----------------    -------------  ------------
                    Total current liabilities                58,806           44,803            14,003         31.3 %          48,391
  
  Long-term debt                                            137,052          140,210            (3,158)        (2.3)%         140,312
  
  Deferred income taxes                                      14,583           11,227             3,356         29.9 %          14,583
                                                --------------------  ---------------  ----------------    -------------  ------------
                    Total liabilities                       210,441          196,240            14,201          7.2 %         203,286
  
  Shareholders' equity                                      125,765          130,208            (4,443)        (3.4)%         127,326
                                                --------------------  ---------------  ----------------    -------------  ------------
  
                    Total liabilities and
                    shareholders' equity      $             336,206          326,448             9,758          3.0 %         330,612
                                                ====================  ===============  ================    =============  ============
  
  Shares outstanding                                         11,216           12,995            (1,779)       (13.7)%          12,079
                                                ====================  ===============  ================    =============  ============
  
  </TABLE>
  
  *  Derived from audited financial statements.
  
  <PAGE>
                                CULP, INC. FINANCIAL
                                 INFORMATION RELEASE
                        CONSOLIDATED STATEMENTS OF CASH FLOWS
           FOR THE NINE MONTHS ENDED JANUARY 30, 2000 AND JANUARY 31, 1999
                                      Unaudited
                               (Amounts in Thousands)
  <TABLE>
  <CAPTION>
  
  
                                                                                                 NINE MONTHS ENDED
                                                                                          --------------------------------
  
                                                                                                      Amounts
                                                                                          --------------------------------
                                                                                           January 30,      January 31,
                                                                                               2000             1999
                                                                                          ---------------  ---------------
  <S>                                                                                     <C>                <C>
  Cash flows from operating activities:
       Net income                                                                    $             6,189              206
       Adjustments to reconcile net income to net cash
          provided by operating activities:
              Depreciation                                                                        14,481           13,785
              Amortization of intangible assets                                                    1,197            1,174
              Changes in assets and liabilities:
                  Accounts receivable                                                              4,715           10,546
                  Inventories                                                                    (13,804)           9,984
                  Other current assets                                                               617              303
                  Other assets                                                                      (560)             (95)
                  Accounts payable                                                                 4,619           (8,609)
                  Accrued expenses                                                                  (148)            (973)
                  Income taxes payable                                                               903           (1,282)
                                                                                          ---------------  ---------------
                      Net cash provided by operating activities                                   18,209           25,039
                                                                                          ---------------  ---------------
  Cash flows from investing activities:
       Capital expenditures                                                                      (14,474)          (8,500)
       Purchases of restricted investments                                                           (35)             (73)
       Purchase of investments to fund deferred compensation liability                                 0             (735)
       Sale of restricted investments                                                              2,328              678
                                                                                          ---------------  ---------------
                      Net cash used in investing activities                                      (12,181)          (8,630)
                                                                                          ---------------  ---------------
  Cash flows from financing activities:
       Proceeds from issuance of long-term debt                                                    8,510            2,535
       Principal payments on long-term debt                                                      (11,770)         (16,284)
       Change in accounts payable-capital expenditures                                             5,041           (2,800)
       Dividends paid                                                                             (1,218)          (1,365)
       Payments to acquire common stock                                                           (6,552)            (160)
       Proceeds from common stock issued                                                              20                8
                                                                                          ---------------  ---------------
                      Net cash used in financing activities                                       (5,969)         (18,066)
                                                                                          ---------------  ---------------
  
  Increase (decrease) in cash and cash investments                                                    59           (1,657)
  
  Cash and cash investments at beginning of period                                                   509            2,312
                                                                                          ---------------  ---------------
  
  Cash and cash investments at end of period                                         $               568              655
                                                                                          ===============  ===============
  </TABLE>
  <PAGE>
                      CULP, INC. FINANCIAL INFORMATION RELEASE
                                 FINANCIAL ANALYSIS
                                  JANUARY 30, 2000
  
  <TABLE>
  <CAPTION>
  
                                             FISCAL 99                            FISCAL 00
                                           -------------   ---------------------------------------------------------   ---------------
                                                Q3              Q1             Q2            Q3            Q4               LTM
                                           -------------   ---------------------------------------------------------   ---------------
  <S>                                      <C>             <C>                <C>           <C>            <C>           <C>
  INVENTORIES
          Inventory turns                          5.2              5.4            5.5           4.8
  
  RECEIVABLES
          Days sales in receivables                 47               45             49            49
          Percent current & less than 30
            days past due                         94.1%            93.2%          96.7%        97.1%
  
  WORKING CAPITAL
          Current  ratio                           3.1              3.1            2.4           2.7
          Working capital turnover (4)             4.4              4.4            4.4           4.5
          Operating working capital (4)        $106,492         $111,222       $109,556      $111,315
  
  PROPERTY, PLANT & EQUIPMENT
          Depreciation rate                        7.9%             8.0%           7.8%          8.2%
          Percent property, plant &
            equipment are depreciated             46.1%            49.0%          49.1%         49.4%
          Capital expenditures                  $10,689 (1)       $2,420         $8,104        $3,950
  
  PROFITABILITY
          Return on average total capital          4.5%             4.8%           7.3%          4.9%                            5.9%
          Return on average equity                 4.7%             5.0%          10.0%          4.6%                            7.1%
          Net income per share                    $0.12            $0.13          $0.27         $0.13                           $0.76
          Net income per share (diluted)          $0.12            $0.13          $0.27         $0.13                           $0.75
  
  LEVERAGE (3)
          Total liabilities/equity               150.7%           155.9%         170.1%        167.3%
          Funded debt/equity                     106.3%           106.3%         107.2%        109.5%
          Funded debt/capital employed            51.5%            51.5%          51.7%         52.3%
          Funded debt                          $138,472         $136,222       $134,468      $137,683
          Funded debt/EBITDA (LTM) (6)             3.91             3.33           3.08          3.15
          EBITDA/Interest expense, net (LTM)       3.9              4.3            4.6           4.5
  
  OTHER
          Book value per share                   $10.02           $10.64         $11.08        $11.21
          Employees at quarter end                3,949            4,050          3,962         3,938
          Sales per employee (annualized)      $113,000         $116,000       $129,000      $115,000
          Capital employed (3)                 $268,680         $264,349       $259,848      $263,448
          Effective income tax rate               32.9%            34.0%          34.0%         25.9%
          EBITDA (2)                             $9,522           $9,977        $12,412        $9,655                         $43,578
          EBITDA/net sales                         8.5%             8.6%           9.6%          8.5%                            8.9%
  </TABLE>
  
    (1) Expenditures for entire year
    (2) Earnings before interest, income taxes, and depreciation & amortization.
    (3) Long-term debt, funded debt and capital employed are all net of restricted
        investments.
    (4) Working capital for this calculation is accounts receivable, inventories
        and accounts payable.
    (5) LTM represents "Latest Twelve Months"
    (6) EBITDA includes capitalized interest and pro forma amounts for
        acquisitions.
  
  <PAGE>
                      CULP, INC. FINANCIAL INFORMATION RELEASE
                              SALES BY SEGMENT/DIVISION
  FOR THE THREE MONTHS AND NINE MONTHS ENDED JANUARY 30, 2000 AND JANUARY 31, 1999
  
                               (Amounts in thousands)
  <TABLE>
  <CAPTION>
  
                                                              THREE MONTHS ENDED (UNAUDITED)
                                         --------------------------------------------------------------------------
  
                                                  Amounts                                Percent of Total Sales
                                         --------------------------                    ----------------------------
                                         January 30,   January 31,        % Over
  Segment/Division                          2000          1999           (Under)           2000            1999
  ------------------------------------   ------------  ------------   ---------------  -------------   ------------
  <S>                                 <C>             <C>             <C>              <C>             <C>
  Upholstery Fabrics
      Culp Decorative Fabrics         $       49,654        50,520        (1.7)%          43.9 %          45.1 %
      Culp Velvets/Prints                     34,050        34,949        (2.6)%          30.1 %          31.2 %
      Culp Yarn                                4,274         4,088         4.5 %           3.8 %           3.6 %
                                         ------------  ------------   ---------------  -------------   ------------
                                              87,978        89,557        (1.8)%          77.7 %          79.9 %
  
  Mattress Ticking
      Culp Home Fashions                      25,203        22,536        11.8 %          22.3 %          20.1 %
                                         ------------  ------------   ---------------  -------------   ------------
  
                                    * $      113,181       112,093         1.0 %         100.0 %         100.0 %
                                         ============  ============   ===============  =============   ============
  
  
                                                               NINE MONTHS ENDED (UNAUDITED)
                                         --------------------------------------------------------------------------
  
                                                  Amounts                                Percent of Total Sales
                                         --------------------------                    ----------------------------
                                         January 30,   January 31,        % Over
  Segment/Division                          2000          1999           (Under)          2000            1999
  ------------------------------------   ------------  ------------   ---------------  -------------   ------------
  Upholstery Fabrics
      Culp Decorative Fabrics         $      157,067       161,538        (2.8)%          43.8 %          46.0 %
      Culp Velvets/Prints                    112,042       103,671         8.1 %          31.2 %          29.5 %
      Culp Yarn                               12,761        17,051       (25.2)%           3.6 %           4.9 %
                                         ------------  ------------   ---------------  -------------   ------------
                                             281,870       282,260        (0.1)%          78.6 %          80.4 %
  
  Mattress Ticking
      Culp Home Fashions                      76,790        68,659        11.8 %          21.4 %          19.6 %
                                         ------------  ------------   ---------------  -------------   ------------
  
                                    * $      358,660       350,919         2.2 %         100.0 %         100.0 %
                                         ============  ============   ===============  =============   ============
  
  </TABLE>
  
  * U.S.  sales were $86,359 and $88,152 for the third  quarter of fiscal 2000 and
  fiscal  1999,  respectively;  and  $275,699  and $266,934 for the nine months of
  fiscal 2000 and fiscal 1999, respectively. The percentage decrease in U.S. sales
  was 2.0% for the third quarter and an increase of 3.3% for the nine months.
  
  <PAGE>
                      CULP, INC. FINANCIAL INFORMATION RELEASE
                       INTERNATIONAL SALES BY GEOGRAPHIC AREA
  FOR THE THREE MONTHS AND NINE MONTHS ENDED JANUARY 30, 2000 AND JANUARY 31, 1999
  
  
                               (Amounts in thousands)
  <TABLE>
  <CAPTION>
  
                                                                 THREE MONTHS ENDED (UNAUDITED)
                                         --------------------------------------------------------------------------------
  
                                                    Amounts                                   Percent of Total Sales
                                         -------------------------------                   ------------------------------
                                          January 30,      January 31,       % Over
           Geographic Area                    2000            1999           (Under)            2000             1999
  ----------------------------------     ---------------  --------------  --------------   -------------     ------------
  <S>                               <C>                        <C>          <C>              <C>              <C>
  North America (Excluding USA)     $             8,476           7,280       16.4 %           31.6 %           30.4 %
  Europe                                          4,698           3,881       21.1 %           17.5 %           16.2 %
  Middle East                                     8,140           6,711       21.3 %           30.3 %           28.0 %
  Far East & Asia                                 4,422           4,993      (11.4)%           16.5 %           20.9 %
  South America                                     523             555       (5.8)%            1.9 %            2.3 %
  All other areas                                   563             521        8.1 %            2.1 %            2.2 %
                                         ---------------  --------------  --------------   -------------     ------------
  
                                    $            26,822          23,941       12.0 %          100.0 %          100.0 %
                                         ===============  ==============  ==============   =============     ============
  
  
                                                                  NINE MONTHS ENDED (UNAUDITED)
                                         --------------------------------------------------------------------------------
  
                                                    Amounts                                   Percent of Total Sales
                                         -------------------------------                   ------------------------------
                                          January 30,      January 31,       % Over
           Geographic Area                    2000            1999           (Under)           2000             1999
  ----------------------------------     ---------------  --------------  --------------   -------------     ------------
  North America (Excluding USA)     $            26,064          23,035       13.1 %           31.4 %           27.4 %
  Europe                                         13,696          14,787       (7.4)%           16.5 %           17.6 %
  Middle East                                    24,092          25,071       (3.9)%           29.0 %           29.9 %
  Far East & Asia                                14,088          15,296       (7.9)%           17.0 %           18.2 %
  South America                                   1,773           2,793      (36.5)%            2.1 %            3.3 %
  All other areas                                 3,248           3,003        8.2 %            3.9 %            3.6 %
                                         ---------------  --------------  --------------   -------------     ------------
  
                                    $            82,961          83,985       (1.2)%          100.0 %          100.0 %
                                         ===============  ==============  ==============   =============     ============
  </TABLE>
  
  International  sales,  and the  percentage of total sales,  for each of the last
  five fiscal years follows: fiscal 1995-$57,971 (19%); fiscal 1996-$77,397 (22%);
  fiscal 1997-$101,571 (25%); fiscal 1998-$137,223 (29%); and fiscal 1999-$113,354
  (23%). International sales for the third quarter represented 23.7% and 21.4% for
  2000 and 1999, respectively.  Year-to-date international sales represented 23.1%
  and 23.9% of total sales for 2000 and 1999, respectively.
  
  <PAGE>
  
                                     Culp, Inc.
                     SALES BY SEGMENT/DIVISION - TREND ANALYSIS
                                1998 vs 1999 vs 2000
                                      Unaudited
                               (Amounts in thousands)
  <TABLE>
  <CAPTION>
  
                                              Fiscal 1998                                     Fiscal 1999
                             ----------------------------------------------  ----------------------------------------------
      Segment/Division          Q1       Q2        Q3       Q4     TOTAL        Q1       Q2       Q3       Q4      TOTAL
  -------------------------
  <S>                         <C>       <C>      <C>      <C>      <C>         <C>     <C>      <C>      <C>      <C>
  Upholstery Fabrics
      Culp Decorative Fabrics  39,814    56,781   53,415   60,155  210,165      51,445  59,573   50,520   60,520   222,058
      Culp Velvets/Prints      38,397    43,928   44,020   45,044  171,389      29,994  38,728   34,949   40,402   144,073
      Culp Yarn                     -         -      761    7,115    7,876       6,596   6,367    4,088    4,462    21,513
                             ----------------------------------------------  ----------------------------------------------
                               78,211   100,709   98,196  112,314  389,430      88,035 104,668   89,557  105,384   387,644
  
  Mattress Ticking
      Culp Home Fashions       21,287    22,217   20,261   23,520   87,285      22,632  23,491   22,536   26,781    95,440
                             ----------------------------------------------  ----------------------------------------------
  
                               99,498   122,926  118,457  135,834  476,715     110,667 128,159  112,093  132,165   483,084
                             ==============================================  ==============================================
  
  
                     Percent increase(decrease) from prior year:
  
      Segment/Division
  -------------------------
  Upholstery Fabrics
      Culp Decorative Fabrics     2.2      24.2     35.8     37.7     25.3        29.2     4.9     (5.4)      0.6       5.7
      Culp Velvets/Prints        10.1       9.2      9.0      9.9      9.5       (21.9)  (11.8)   (20.6)    (10.3)    (15.9)
      Culp Yarn                     -         -    100.0    100.0    100.0       100.0   100.0    437.2     (37.3)    173.1
  
                             ----------------------------------------------  ----------------------------------------------
                                  5.9      17.2     23.2     32.6     20.1        12.6     3.9     (8.8)     (6.2)     (0.5)
  
  Mattress Ticking
      Culp Home Fashions         27.5      15.4     14.2     12.0     16.9         6.3     5.7     11.2      13.9       9.3
                             ----------------------------------------------  ----------------------------------------------
  
                                  9.9      16.8     21.5     28.5     19.5        11.2     4.3     (5.4)     (2.7)      1.3
                             ==============================================  ==============================================
  
    Overall Growth Rate
  
  Internal (without
           acquisitions)          9.9       6.6      9.2     11.6      9.3        (4.6)   (0.9)    (8.5)     (2.7)     (4.1)
  
  External                          -      10.2     12.3     16.9     10.2        15.8     5.2      3.1         -       5.4
                             ----------------------------------------------  ----------------------------------------------
  
                                  9.9      16.8     21.5     28.5     19.5        11.2     4.3     (5.4)     (2.7)      1.3
                             ==============================================  ==============================================
  
  </TABLE>
  <PAGE>
                                     Culp, Inc.
                     SALES BY SEGMENT/DIVISION - TREND ANALYSIS
                                1998 vs 1999 vs 2000
                                      Unaudited
                               (Amounts in thousands)
  
  <TABLE>
  <CAPTION>
                                                Fiscal 2000
                               -----------------------------------------------
      Segment/Division            Q1        Q2        Q3        Q4     TOTAL
  -------------------------
  <S>                            <C>       <C>       <C>      <C>    <C>
  Upholstery Fabrics
      Culp Decorative Fabrics     50,516    56,897    49,654          157,067
      Culp Velvets/Prints         36,209    41,783    34,050          112,042
      Culp Yarn                    4,129     4,358     4,274           12,761
                                  -----------------------------------------------
                                  90,854   103,038    87,978          281,870
  
  Mattress Ticking
      Culp Home Fashions          25,083    26,504    25,203           76,790
                               -----------------------------------------------
  
                                 115,937   129,542   113,181          358,660
                               ===============================================
  
  
                     Percent increase(decrease) from prior year:
  
  
      Segment/Division
  -------------------------
  Upholstery Fabrics
      Culp Decorative Fabrics       (1.8)     (4.5)     (1.7)            (2.8)
      Culp Velvets/Prints           20.7       7.9      (2.6)             8.1
      Culp Yarn                    (37.4)    (31.6)      4.5            (25.2)
                               -----------------------------------------------
                                     3.2      (1.6)     (1.8)            (0.1)
  
  Mattress Ticking
      Culp Home Fashions            10.8      12.8      11.8             11.8
                               -----------------------------------------------
  
                                     4.8       1.1       1.0              2.2
                               ===============================================
  
    Overall Growth Rate
  
  Internal (without acquisitions)    4.8       1.1       1.0              2.2
  External                             -         -         -                -
                               ===============================================
                                     4.8       1.1       1.0              2.2
                               ===============================================
  
  <PAGE>
                                                                  (Page 10 of 10)
  
                      CULP, INC. FINANCIAL INFORMATION RELEASE
                                 FINANCIAL NARRATIVE
   for the three and nine month periods ended January 30, 2000 and January 31, 1999
  
  
  INCOME STATEMENT COMMENTS
  
       GENERAL  - For the  third  quarter,  net  sales  increased  1.0% to  $113.2
  million;  and net income  amounted to $1.4  million,  or $0.13 per share diluted
  (based on 11,389,000 average shares outstanding during the period),  versus $1.5
  million,  or $0.12  per  share  diluted  (based  on  13,124,000  average  shares
  outstanding  during the period),  a year ago. For the nine months ended  January
  30, 2000, net sales increased 2.2% to $358.7 million; and net income amounted to
  $6.2 million,  or $0.52 per share diluted  (based on 11,816,000  average  shares
  outstanding during the period),  compared with net income of $206,000,  or $0.02
  per share diluted  (based on 13,171,000  average shares  outstanding  during the
  period), in the year-earlier period.
  
       The company's strategic plan encompasses several competitive initiatives:
  
  Broad Product  Offering - continuing to market one of the broadest product lines
  in upholstery fabrics and mattress ticking.  Through its extensive manufacturing
  capabilities, the company competes in every major category except leather;
  
  Diverse  Global  Customer Base - increasing its  penetration  into other end-use
  markets  in  addition   to  U.S.   residential   furniture,   such  as  bedding,
  international,  commercial  furniture  and juvenile  furniture.  The company has
  long-standing  relationships with most major upholstery furniture manufacturers,
  but is not reliant on a single customer or a small group of dominant  customers.
  No one customer accounted for more than 9% of net sales during the third quarter
  of fiscal 2000;
  
  Design  Innovation  -  continuing  to  invest  in  resources  for the  design of
  upholstery fabrics and ticking with appealing patterns and textures. An integral
  component of the value Culp provides to customers is supplying  fabrics that are
  fashionable  and meet current  consumer  preferences.  The  company's  principal
  design  resources are  consolidated in a single facility that provides  advanced
  CAD systems and promotes a sharing of innovative designs among the divisions;
  
  Vertical  Integration - operating as a vertically  integrated  manufacturer  and
  taking  advantage of economies  that can be gained by producing the raw material
  components that are used in the manufacture of its products; and
  
  Additional  Acquisitions - investing in selective acquisitions  complementary to
  existing segments.
  
  NET SALES - Compared  with the third  quarter of last  year,  upholstery  fabric
  sales decreased 1.8% to $88.0 million and mattress ticking sales increased 11.8%
  to $25.2 million (See Sales by Segment/Division  schedule on Page 5 and Sales by
  Segment/Division  - Trend  Analysis on Page 7).  International  sales  increased
  12.0% for the quarter.
  
  During  the first  quarter  of fiscal  1999,  the  company  implemented  a major
  reorganization  from six business  units to four  divisions.  This new corporate
  alignment  grouped  related  operations  together and was accompanied by several
  changes in managerial positions. The company believes that benefits of this move
  have included improved customer service,  more effective use of design resources
  and increased  manufacturing  efficiency.  Aided by these  factors,  the company
  achieved  higher sales to U.S.-based  accounts in the first half of fiscal 2000.
  Although  sales to U.S.-based  accounts  decreased 2.0% for the third quarter of
  fiscal  2000,  the company  recorded a gain of 3.3% to these  customers  for the
  first nine months of the fiscal year.  Weakness in international  sales affected
  results in the first two quarters of fiscal 2000, but sales to customers outside
  the United States were up 12.0% for the third quarter. The company believes that
  this increase  indicates that it has established a base of  international  sales
  from  which  to  build.  This  follows  an  industry-wide   trend  of  declining
  international  sales of  upholstery  fabrics  that  began in fiscal  1999  after
  several years of  above-average  growth.  During  fiscal 1999,  the company took
  steps to  mitigate  the  impact  of this  industry-wide  trend by  significantly
  curtailing  production  schedules  for certain  international-targeted  fabrics,
  introducing  a new line of printed  cotton  upholstery  fabrics and shifting its
  marketing  focus to geographic  areas where demand appears more  favorable.  The
  company has a  diversified  global base of  customers  and is seeking to broaden
  that further to minimize  exposure to economic  uncertainties  in any geographic
  area.
  
  The company  benefited in the third  quarter from  increased  sales by Culp Home
  Fashions  (primarily mattress ticking) which has experienced a long-term pattern
  of expansion.  Culp's growth in mattress  ticking  continues to be driven by the
  introduction of new designs and fabric  constructions  as well as the advantages
  of the company's vertical integration. In particular, the ability to manufacture
  the  jacquard  greige (or  unfinished)  goods  that are then  printed to produce
  mattress  ticking  has aided  Culp in  meeting  faster  delivery  schedules  and
  providing improved overall customer service.
  
  The  year-to-year  comparisons in the company's  income  statement for the third
  quarter need to be considered  within the context that the third fiscal  quarter
  is not historically  the strongest  period of the year due to seasonal  factors.
  Changes in shipments in such a quarter may not affect the absolute  level of net
  sales significantly but can have a material effect on margins and other measures
  of  profitability.  The company  does not believe  that the decline in operating
  margins in the third quarter signals a structural change in its profitability.
  
  
       GROSS PROFIT - Gross profit for the third  quarter  declined  3.7% to $18.5
  million and  decreased as a percentage  of net sales from 17.1% to 16.3%.  Gross
  profit for the nine months  increased as a percentage of net sales from 15.2% to
  17.5%.  The  company  has taken a number of actions to  increase  gross  profit,
  including a  significant  reduction in the capacity  for  manufacturing  printed
  flock  fabrics  and an intense  effort to reduce  operating  expenses  and raise
  productivity.
  
  
       S,G&A  EXPENSES - As a percentage  of sales,  S,G&A  expenses for the third
  quarter  decreased  to 12.3%  from  12.6% for the  year-earlier  period and were
  unchanged  through the first nine months.  The increase in absolute  dollars for
  the nine months  principally  reflects higher costs related to resources for the
  design  of new  fabrics  and  information  systems,  as well as other  increased
  operating expenses intended to support a higher level of sales.
  
  
       INTEREST  EXPENSE - Interest  expense of $2.4 million for the third quarter
  was up from $2.3  million a year ago even though the  company had lower  average
  borrowings  outstanding.  The  lower  level of  borrowings  was  offset by lower
  capitalized interest related to capital expenditures and higher average interest
  rates.
  
  
       OTHER EXPENSE  (INCOME),  NET - Other expense (income) totaled $229,000 for
  the third quarter compared with $492,000 a year ago. The decrease is principally
  due to higher investment income on assets related to the company's  nonqualified
  deferred compensation plan.
  
       INCOME  TAXES - The  effective  tax  rate  for the nine  months  was  32.3%
  compared with 32.0% in the year-earlier period.
  
       EBITDA - EBITDA for the third  quarter  totaled $9.7 million  compared with
  $9.5 million a year ago.
  
  
  
  BALANCE SHEET COMMENTS
  
       WORKING CAPITAL - Accounts receivable as of January 30, 2000 increased 4.3%
  from the  year-earlier  level,  due  principally  to changes in the mix of sales
  between U.S.-based and international customers. Days sales outstanding increased
  slightly  to  49  days  at  January  30,  2000  compared  with  47 a  year  ago.
  Additionally,  the aging of accounts  receivable was 97.1% current and less than
  30 days  past due  versus  94.1% at the end of the  third  quarter  a year  ago.
  Inventories at the close of the third quarter  increased  $11.7 million or 16.9%
  from a year ago,  principally  due to the  decision  to increase  the  company's
  ability to respond quickly to customers'  orders.  Inventory turns for the third
  quarter  were 4.8 versus 5.2 for the third  quarter  of fiscal  1999.  Operating
  working  capital  (comprised  of accounts  receivable,  inventory  and  accounts
  payable) was $111.3 million at January 30, 2000, up 4.5% from a year ago.
  
       PROPERTY,  PLANT AND EQUIPMENT - During fiscal 1999 the company reduced its
  capital  spending to $10.7  million  compared  with $35.9 million in fiscal 1998
  because of a focus on improving the results of the considerable investments made
  during  fiscal 1997 and fiscal  1998.  The  company is  committed  to  investing
  sufficient  funds to modernize  and expand its  manufacturing  resources and has
  invested a total of $14.5 million  through the first nine months of fiscal 2000.
  The company is budgeting total capital spending for fiscal 2000 of approximately
  $23  million.  Depreciation  for  fiscal  2000  is  currently  estimated  to  be
  approximately $20 million.
  
       LONG-TERM DEBT - The company's  funded  debt-to-capital  ratio was 52.3% at
  January 30,  2000,  compared  with 51.5% at January 31, 1999 and 52.1% at May 2,
  1999.  Funded debt was $137.7 million at January 30, 2000,  compared with $138.5
  million  at January  31,  1999 and $138.7  million at May 2, 1999.  Funded  debt
  equals   long-term  debt,   including   current   maturities,   less  restricted
  investments, which represent unspent IRB funds. The decrease in funded debt from
  May 2, 1999 resulted  primarily from an operating cash flow of $18.2 million and
  an increase in accounts payable related to capital expenditures of $5.0 million,
  offset by capital expenditures of $14.5 million,  repurchases of common stock of
  $6.6 million and dividends paid of $1.2 million.
  
  
  STOCK REPURCHASE
  
       In separate  authorizations  in June 1998,  March 1999,  September 1999 and
  December  1999,  the Board of Directors  authorized  the use of a total of $20.0
  million to repurchase  the  company's  common  stock.  During  fiscal 1999,  the
  company  repurchased 938,600 shares at an average price of $5.90 per share under
  these  authorizations.  During the first nine months of fiscal 2000, the company
  invested $6.6 million to repurchase  870,539 shares at an average price of $7.53
  per share.
  
  
  </TABLE>
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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) February 14, 2000
  
                                     CULP, INC.
  
               (Exact name of registrant as specified in its charter)
  
        North Carolina                 0-12781                 56-1001967
  (State or other jurisdiction  (Commission File No.)       (IRS Employer
       of incorporation)                                  Identification No.)
  
                                101 South Main Street
                          High Point, North Carolina 27260
                      (Address of principal executive offices)
                                   (336) 889-5161
                (Registrant's telephone number, including area code)
  
            -------------------------------------------------------------
            (Former name or former address, if changed since last report)
  
  --------------------------------------------------------------------------------
  Item 5. Other Events
  
  See  attached  Press  Release (3 pages) and  Financial  Information  Release (10
  pages),  both dated February 14, 2000,  related to the fiscal 2000 third quarter
  ended January 30, 2000.
  
  Forward  Looking  Information.  This Report  contains  statements  that could be
  deemed "forward-looking statements" within the meaning of the federal securities
  laws,  including  the Private  Securities  Litigation  Reform Act of 1995.  Such
  statements are inherently  subject to risks and  uncertainties.  Forward-looking
  statements  are statements  that include  projections,  expectations  or beliefs
  about future  events or results or otherwise  are not  statements  of historical
  fact.  Such  statements  are often  characterized  by  qualifying  words such as
  "expect,"  "believe,"  "estimate,"  "plan and "project"  and their  derivatives.
  Factors that could influence the matters  discussed in such  statements  include
  the level of housing starts and sales of existing  homes,  consumer  confidence,
  trends in disposable income, and general economic conditions. Decreases in these
  economic  indicators could have a negative effect on the Company's  business and
  prospects.  Likewise,  increases in interest rates,  particularly  home mortgage
  rates,  and increases in consumer  debt or the general rate of inflation,  could
  affect the  Company  adversely.  Because of the  significant  percentage  of the
  Company's sales derived from international shipments, strengthening of the U. S.
  dollar  against  other  currencies  could  make  the  Company's   products  less
  competitive  on the  basis  of price  in  markets  outside  the  United  States.
  Additionally,  economic and political  instability in international  areas could
  affect the demand for the Company's products.
  
                                                        SIGNATURE
  
  Pursuant  to the  requirements  of the  Securities  Exchange  Act of  1934,  the
  Registrant  has duly  caused  this  report  to be  signed  on its  behalf by the
  undersigned hereunto duly authorized.
  
                                             CULP, INC.
                                             (Registrant)
  
                                   By:       Phillip W. Wilson
                                             Vice President and
                                             Chief Financial Officer
  
  Dated:   February 14, 2000
  FOR IMMEDIATE RELEASE
  
           CULP REPORTS HIGHER THIRD QUARTER SALES AND EARNINGS PER SHARE
                               ----------------------
                 NINE-MONTH GAINS UNDERSCORE IMPROVED PROFITABILITY
  
  HIGH POINT,  N. C. (Feb.  14,  2000) - Culp,  Inc.  (NYSE:  CFI) today  reported
  increased  sales and  earnings  per share for the third  quarter  and first nine
  months of its 2000 fiscal year.
  
       For the three months ended January 30, 2000, Culp reported net sales $113.2
  million,  up from $112.1 million a year ago. The company reported net income for
  the quarter of $1.4  million,  or $0.13 per share  diluted,  compared  with $1.5
  million, or $0.12 per share diluted, in the year-earlier period.
  
       Net sales for the first nine months of fiscal 2000 totaled $358.7  million,
  up from $350.9 million a year ago. The company reported net income for the first
  nine  months of $6.2  million,  or $0.52 per share  diluted,  compared  with net
  income of $206,000, or $0.02 per share diluted, in the year-earlier period.
  
       Robert G. Culp, III, chief executive officer,  commented,  "As we enter the
  fourth  fiscal  quarter,  the  trends  in our  business  are  not as  strong  as
  anticipated;  but results for the nine months affirm our expectation that fiscal
  2000 as a whole is going to represent a year of solid  improvement for Culp. The
  third fiscal quarter is  historically  not the strongest  period of the year for
  our business due to seasonal factors.  We did achieve higher sales, and the gain
  in earnings per share for the three months highlights the benefit of our ongoing
  stock repurchase  program.  Our business during the quarter  underscores how the
  lead  times are  continuing  to shorten  for  furniture  manufacturers  to order
  materials,  including  our fabrics and  mattress  ticking.  We believe that this
  structural  change in the industry's  supply chain is  fundamentally  playing to
  Culp's  strengths,  but it is  more  difficult  for us to  forecast  sales  on a
  short-term basis.
  
       "Economic  conditions  appear to be  favoring  a  relatively  high level of
  consumer demand for home furnishings. Reports from furniture retailers generally
  support  that  the  industry  environment  is  positive.  Our  challenge  is  to
  capitalize  on  the  product  breadth,   proven   manufacturing   resources  and
  demonstrated  commitment to customer service that comprise the hallmark of Culp.
  A key element  that links each of these  components  is a  comprehensive  design
  program to assure our  customers  that their  products  will  successfully  meet
  consumer demand. We have the benefit of a fully integrated manufacturing process
  including  state-of-the-art yarn manufacturing  capability and are excited about
  the  opportunity  to use the design process as a means of building even stronger
  working relationships with customers."
  
       Culp added,  "We have the  competitive  advantage  of access to  sufficient
  capital  to  continue  modernizing  and  expanding  our  physical  assets  while
  broadening our use of information  technology in all aspects of our  operations.
  Capital  expenditures are expected to total approximately $23 million for fiscal
  2000,  up from $10.7  million in fiscal 1999. We have also invested $6.6 million
  through the first nine months to  repurchase  more of our shares.  We  currently
  have remaining authorization from the Board of Directors to invest an additional
  $7.9 million in this program."
  
       Culp,  Inc. is one of the world's largest  marketers of upholstery  fabrics
  for furniture  and is a leading  marketer of mattress  ticking for bedding.  The
  Company's  fabrics are used  principally in the  production of  residential  and
  commercial furniture and bedding products.
  CULP, INC.
                                             Condensed Financial Highlights
                                                       (Unaudited)
  
                                               Three Months Ended
                                          January 30,               January 31,
                                             2000                      1999
  Net sales                          $        113,181,000      $       112,093,000
  Net income                         $          1,432,000      $         1,539,000
  Net income per share:
     Basic                           $               0.13      $              0.12
     Diluted                         $               0.13      $              0.12
  Average shares outstanding:
     Basic                                     11,296,000               12,995,000
     Diluted                                   11,389,000               13,124,000
  
                                                Nine Months Ended
                                           January 30,            January 31,
                                              2000                      1999
  Net sales                          $        358,660,000       $      350,919,000
  Net income                         $          6,189,000       $          206,000
  Net income per share:
     Basic                           $               0.53       $             0.02
     Diluted                         $               0.52       $             0.02
  Average shares outstanding:
     Basic                                     11,703,000               12,997,000
     Diluted                                   11,816,000               13,171,000
  
  This  release  contains   statements  that  could  be  deemed   "forward-looking
  statements"  within the meaning of the federal  securities  laws,  including the
  Private Securities Litigation Reform Act of 1995. Such statements are inherently
  subject to risks and  uncertainties.  Forward-looking  statements are statements
  that include projections, expectations or beliefs about future events or results
  or otherwise are not statements of historical  fact.  Such  statements are often
  characterized  by  qualifying  words such as  "expect,"  "believe,"  "estimate,"
  "plan" and "project"  and their  derivatives.  Factors that could  influence the
  matters  discussed in such  statements  include the level of housing  starts and
  sales of existing homes,  consumer  confidence,  trends in disposable income and
  general economic conditions. Decreases in these economic indicators could have a
  negative effect on the company's business and prospects.  Likewise, increases in
  interest rates, particularly home mortgage rates, and increases in consumer debt
  or the general rate of inflation, could affect the company adversely. Because of
  the  significant  percentage of the company's  sales derived from  international
  shipments,  strengthening of the U.S. dollar against other currencies could make
  the company's products less competitive on the basis of price in markets outside
  the  United  States.   Additionally,   economic  and  political  instability  in
  international areas could affect the demand for the company's products.
  
                                                        - END -
  CULP, INC. FINANCIAL INFORMATION RELEASE
                          CONSOLIDATED STATEMENTS OF INCOME
  FOR THE THREE MONTHS AND NINE MONTHS ENDED JANUARY 30, 2000 AND JANUARY 31, 1999
  
                  (Amounts in Thousands, Except for Per Share Data)
  THREE MONTHS ENDED (UNAUDITED)
                                               ---------------------------------------------------------------------------------
  
                                                          Amounts                                          Percent of Sales
                                               -------------------------------                       -----------------------------
                                                January 30,     January 31,        % Over
                                                   2000             1999          (Under)               2000            1999
                                               --------------  ---------------  -------------        --------------  -------------
  Net sales                                 $        113,181          112,093          1.0 %              100.0 %         100.0 %
  Cost of sales                                       94,712           92,911          1.9 %               83.7 %          82.9 %
                                               --------------  ---------------  -------------        --------------  -------------
           Gross profit                               18,469           19,182         (3.7)%               16.3 %          17.1 %
  
  Selling, general and
    administrative expenses                           13,949           14,100         (1.1)%               12.3 %          12.6 %
                                               --------------  ---------------  -------------        --------------  -------------
           Income from operations                      4,520            5,082        (11.1)%                4.0 %           4.5 %
  
  Interest expense                                     2,366            2,308          2.5 %                2.1 %           2.1 %
  Interest income                                         (8)             (10)       (20.0)%               (0.0)%          (0.0)%
  Other expense (income), net                            229              492        (53.5)%                0.2 %           0.4 %
                                               --------------  ---------------  -------------        --------------  -------------
           Income before income taxes                  1,933            2,292        (15.7)%                1.7 %           2.0 %
  
  Income taxes  *                                        501              753        (33.5)%               25.9 %          32.9 %
                                               --------------  ---------------  -------------        --------------  -------------
  
           Net income                       $          1,432            1,539         (7.0)%                1.3 %           1.4 %
                                               ==============  ===============  =============        ==============  =============
  
  Net income per share                                 $0.13            $0.12          8.3 %
  Net income per share, assuming dilution              $0.13            $0.12          8.3 %
  Dividends per share                                 $0.035           $0.035          0.0 %
  Average shares outstanding                          11,296           12,995        (13.1)%
  Average shares outstanding, assuming dilution       11,389           13,124        (13.2)%
  
                                                                        NINE MONTHS ENDED (UNAUDITED)
                                               ---------------------------------------------------------------------------------
  
                                                          Amounts                                          Percent of Sales
                                               -------------------------------                       -----------------------------
                                                January 30,     January 31,        % Over
                                                   2000             1999          (Under)               2000            1999
                                               --------------  ---------------  -------------        --------------  -------------
  
  Net sales                                 $        358,660          350,919          2.2 %              100.0 %         100.0 %
  Cost of sales                                      296,072          297,652         (0.5)%               82.5 %          84.8 %
                                               --------------  ---------------  -------------        --------------  -------------
           Gross profit                               62,588           53,267         17.5 %               17.5 %          15.2 %
  
  Selling, general and
    administrative expenses                           45,022           44,047          2.2 %               12.6 %          12.6 %
                                               --------------  ---------------  -------------        --------------  -------------
           Income from operations                     17,566            9,220         90.5 %                4.9 %           2.6 %
  
  Interest expense                                     7,266            7,133          1.9 %                2.0 %           2.0 %
  Interest income                                        (41)             (82)       (50.0)%               (0.0)%          (0.0)%
  Other expense (income), net                          1,200            1,866        (35.7)%                0.3 %           0.5 %
                                               --------------  ---------------  -------------        --------------  -------------
           Income before income taxes                  9,141              303      2,916.8 %                2.5 %           0.1 %
  
  Income taxes  *                                      2,952               97      2,943.3 %               32.3 %          32.0 %
                                               --------------  ---------------  -------------        --------------  -------------
  
           Net income                       $          6,189              206      2,904.4 %                1.7 %           0.1 %
                                               ==============  ===============  =============        ==============  =============
  
  Net income per share                                 $0.53            $0.02      2,550.0 %
  Net income per share, assuming dilution              $0.52            $0.02      2,500.0 %
  Dividends per share                                 $0.105           $0.105          0.0 %
  Average shares outstanding                          11,703           12,997        (10.0)%
  Average shares outstanding, assuming dilution       11,816           13,171        (10.3)%
  * Percent of sales column is calculated as a % of income before income
  taxes.
  CULP, INC. FINANCIAL INFORMATION RELEASE
                             CONSOLIDATED BALANCE SHEETS
                 JANUARY 30, 2000, JANUARY 31, 1999 AND MAY 2, 1999
                                      Unaudited
                               (Amounts in Thousands)
  Amounts                             Increase
                                                ---------------------------------------           (Decrease)                * May 2,
                                                    January 30,        January 31,     ---------------------------------
                                                       2000                1999            Dollars         Percent           1999
                                                --------------------  ---------------  ----------------    -------------  ------------
  Current assets
         Cash and cash investments            $                 568              655               (87)       (13.3)%             509
         Accounts receivable                                 65,788           63,090             2,698          4.3 %          70,503
         Inventories                                         80,874           69,210            11,664         16.9 %          67,070
         Other current assets                                 9,016            7,560             1,456         19.3 %           9,633
                                                --------------------  ---------------  ----------------    -------------  ------------
                    Total current assets                    156,246          140,515            15,731         11.2 %         147,715
  
  Restricted investments                                      1,047            3,416            (2,369)       (69.4)%           3,340
  Property, plant & equipment, net                          123,303          125,885            (2,582)        (2.1)%         123,310
  Goodwill                                                   50,222           51,615            (1,393)        (2.7)%          51,269
  Other assets                                                5,388            5,017               371          7.4 %           4,978
                                                --------------------  ---------------  ----------------    -------------  ------------
  
                    Total assets              $             336,206          326,448             9,758          3.0 %         330,612
                                                ====================  ===============  ================    =============  ============
  
  Current liabilities
         Current maturities of long-term debt $               1,678            1,678                 0          0.0 %           1,678
         Accounts payable                                    35,347           25,808             9,539         37.0 %          25,687
         Accrued expenses                                    20,878           17,317             3,561         20.6 %          21,026
         Income taxes payable                                   903                0               903        100.0 %               0
                                                --------------------  ---------------  ----------------    -------------  ------------
                    Total current liabilities                58,806           44,803            14,003         31.3 %          48,391
  
  Long-term debt                                            137,052          140,210            (3,158)        (2.3)%         140,312
  
  Deferred income taxes                                      14,583           11,227             3,356         29.9 %          14,583
                                                --------------------  ---------------  ----------------    -------------  ------------
                    Total liabilities                       210,441          196,240            14,201          7.2 %         203,286
  
  Shareholders' equity                                      125,765          130,208            (4,443)        (3.4)%         127,326
                                                --------------------  ---------------  ----------------    -------------  ------------
  
                    Total liabilities and
                    shareholders' equity      $             336,206          326,448             9,758          3.0 %         330,612
                                                ====================  ===============  ================    =============  ============
  
  Shares outstanding                                         11,216           12,995            (1,779)       (13.7)%          12,079
                                                ====================  ===============  ================    =============  ============
  *  Derived from audited financial statements.
  CULP, INC. FINANCIAL
                                 INFORMATION RELEASE
                        CONSOLIDATED STATEMENTS OF CASH FLOWS
           FOR THE NINE MONTHS ENDED JANUARY 30, 2000 AND JANUARY 31, 1999
                                      Unaudited
                               (Amounts in Thousands)
  NINE MONTHS ENDED
                                                                                          --------------------------------
  
                                                                                                      Amounts
                                                                                          --------------------------------
                                                                                           January 30,      January 31,
                                                                                               2000             1999
                                                                                          ---------------  ---------------
  Cash flows from operating activities:
       Net income                                                                    $             6,189              206
       Adjustments to reconcile net income to net cash
          provided by operating activities:
              Depreciation                                                                        14,481           13,785
              Amortization of intangible assets                                                    1,197            1,174
              Changes in assets and liabilities:
                  Accounts receivable                                                              4,715           10,546
                  Inventories                                                                    (13,804)           9,984
                  Other current assets                                                               617              303
                  Other assets                                                                      (560)             (95)
                  Accounts payable                                                                 4,619           (8,609)
                  Accrued expenses                                                                  (148)            (973)
                  Income taxes payable                                                               903           (1,282)
                                                                                          ---------------  ---------------
                      Net cash provided by operating activities                                   18,209           25,039
                                                                                          ---------------  ---------------
  Cash flows from investing activities:
       Capital expenditures                                                                      (14,474)          (8,500)
       Purchases of restricted investments                                                           (35)             (73)
       Purchase of investments to fund deferred compensation liability                                 0             (735)
       Sale of restricted investments                                                              2,328              678
                                                                                          ---------------  ---------------
                      Net cash used in investing activities                                      (12,181)          (8,630)
                                                                                          ---------------  ---------------
  Cash flows from financing activities:
       Proceeds from issuance of long-term debt                                                    8,510            2,535
       Principal payments on long-term debt                                                      (11,770)         (16,284)
       Change in accounts payable-capital expenditures                                             5,041           (2,800)
       Dividends paid                                                                             (1,218)          (1,365)
       Payments to acquire common stock                                                           (6,552)            (160)
       Proceeds from common stock issued                                                              20                8
                                                                                          ---------------  ---------------
                      Net cash used in financing activities                                       (5,969)         (18,066)
                                                                                          ---------------  ---------------
  
  Increase (decrease) in cash and cash investments                                                    59           (1,657)
  
  Cash and cash investments at beginning of period                                                   509            2,312
                                                                                          ---------------  ---------------
  
  Cash and cash investments at end of period                                         $               568              655
                                                                                          ===============  ===============
  CULP, INC. FINANCIAL INFORMATION RELEASE
                                 FINANCIAL ANALYSIS
                                  JANUARY 30, 2000
  FISCAL 99                            FISCAL 00
                                           -------------   ---------------------------------------------------------   ---------------
                                                Q3              Q1             Q2            Q3            Q4               LTM
                                           -------------   ---------------------------------------------------------   ---------------
  INVENTORIES
          Inventory turns                          5.2              5.4            5.5           4.8
  
  RECEIVABLES
          Days sales in receivables                 47               45             49            49
          Percent current & less than 30
            days past due                         94.1%            93.2%          96.7%        97.1%
  
  WORKING CAPITAL
          Current  ratio                           3.1              3.1            2.4           2.7
          Working capital turnover (4)             4.4              4.4            4.4           4.5
          Operating working capital (4)        $106,492         $111,222       $109,556      $111,315
  
  PROPERTY, PLANT & EQUIPMENT
          Depreciation rate                        7.9%             8.0%           7.8%          8.2%
          Percent property, plant &
            equipment are depreciated             46.1%            49.0%          49.1%         49.4%
          Capital expenditures                  $10,689 (1)       $2,420         $8,104        $3,950
  
  PROFITABILITY
          Return on average total capital          4.5%             4.8%           7.3%          4.9%                            5.9%
          Return on average equity                 4.7%             5.0%          10.0%          4.6%                            7.1%
          Net income per share                    $0.12            $0.13          $0.27         $0.13                           $0.76
          Net income per share (diluted)          $0.12            $0.13          $0.27         $0.13                           $0.75
  
  LEVERAGE (3)
          Total liabilities/equity               150.7%           155.9%         170.1%        167.3%
          Funded debt/equity                     106.3%           106.3%         107.2%        109.5%
          Funded debt/capital employed            51.5%            51.5%          51.7%         52.3%
          Funded debt                          $138,472         $136,222       $134,468      $137,683
          Funded debt/EBITDA (LTM) (6)             3.91             3.33           3.08          3.15
          EBITDA/Interest expense, net (LTM)       3.9              4.3            4.6           4.5
  
  OTHER
          Book value per share                   $10.02           $10.64         $11.08        $11.21
          Employees at quarter end                3,949            4,050          3,962         3,938
          Sales per employee (annualized)      $113,000         $116,000       $129,000      $115,000
          Capital employed (3)                 $268,680         $264,349       $259,848      $263,448
          Effective income tax rate               32.9%            34.0%          34.0%         25.9%
          EBITDA (2)                             $9,522           $9,977        $12,412        $9,655                         $43,578
          EBITDA/net sales                         8.5%             8.6%           9.6%          8.5%                            8.9%
  (1) Expenditures for entire year
    (2) Earnings before interest, income taxes, and depreciation & amortization.
    (3) Long-term debt, funded debt and capital employed are all net of restricted
        investments.
    (4) Working capital for this calculation is accounts receivable, inventories
        and accounts payable.
    (5) LTM represents "Latest Twelve Months"
    (6) EBITDA includes capitalized interest and pro forma amounts for
        acquisitions.
  CULP, INC. FINANCIAL INFORMATION RELEASE
                              SALES BY SEGMENT/DIVISION
  FOR THE THREE MONTHS AND NINE MONTHS ENDED JANUARY 30, 2000 AND JANUARY 31, 1999
  
                               (Amounts in thousands)
  THREE MONTHS ENDED (UNAUDITED)
                                         --------------------------------------------------------------------------
  
                                                  Amounts                                Percent of Total Sales
                                         --------------------------                    ----------------------------
                                         January 30,   January 31,        % Over
  Segment/Division                          2000          1999           (Under)           2000            1999
  ------------------------------------   ------------  ------------   ---------------  -------------   ------------
  Upholstery Fabrics
      Culp Decorative Fabrics         $       49,654        50,520        (1.7)%          43.9 %          45.1 %
      Culp Velvets/Prints                     34,050        34,949        (2.6)%          30.1 %          31.2 %
      Culp Yarn                                4,274         4,088         4.5 %           3.8 %           3.6 %
                                         ------------  ------------   ---------------  -------------   ------------
                                              87,978        89,557        (1.8)%          77.7 %          79.9 %
  
  Mattress Ticking
      Culp Home Fashions                      25,203        22,536        11.8 %          22.3 %          20.1 %
                                         ------------  ------------   ---------------  -------------   ------------
  
                                    * $      113,181       112,093         1.0 %         100.0 %         100.0 %
                                         ============  ============   ===============  =============   ============
  
                                                               NINE MONTHS ENDED (UNAUDITED)
                                         --------------------------------------------------------------------------
  
                                                  Amounts                                Percent of Total Sales
                                         --------------------------                    ----------------------------
                                         January 30,   January 31,        % Over
  Segment/Division                          2000          1999           (Under)          2000            1999
  ------------------------------------   ------------  ------------   ---------------  -------------   ------------
  Upholstery Fabrics
      Culp Decorative Fabrics         $      157,067       161,538        (2.8)%          43.8 %          46.0 %
      Culp Velvets/Prints                    112,042       103,671         8.1 %          31.2 %          29.5 %
      Culp Yarn                               12,761        17,051       (25.2)%           3.6 %           4.9 %
                                         ------------  ------------   ---------------  -------------   ------------
                                             281,870       282,260        (0.1)%          78.6 %          80.4 %
  
  Mattress Ticking
      Culp Home Fashions                      76,790        68,659        11.8 %          21.4 %          19.6 %
                                         ------------  ------------   ---------------  -------------   ------------
  
                                    * $      358,660       350,919         2.2 %         100.0 %         100.0 %
                                         ============  ============   ===============  =============   ============
  * U.S.  sales were $86,359 and $88,152 for the third  quarter of fiscal 2000 and
  fiscal  1999,  respectively;  and  $275,699  and $266,934 for the nine months of
  fiscal 2000 and fiscal 1999, respectively. The percentage decrease in U.S. sales
  was 2.0% for the third quarter and an increase of 3.3% for the nine months.
  CULP, INC. FINANCIAL INFORMATION RELEASE
                       INTERNATIONAL SALES BY GEOGRAPHIC AREA
  FOR THE THREE MONTHS AND NINE MONTHS ENDED JANUARY 30, 2000 AND JANUARY 31, 1999
  
                               (Amounts in thousands)
  THREE MONTHS ENDED (UNAUDITED)
                                         --------------------------------------------------------------------------------
  
                                                    Amounts                                   Percent of Total Sales
                                         -------------------------------                   ------------------------------
                                          January 30,      January 31,       % Over
           Geographic Area                    2000            1999           (Under)            2000             1999
  ----------------------------------     ---------------  --------------  --------------   -------------     ------------
  North America (Excluding USA)     $             8,476           7,280       16.4 %           31.6 %           30.4 %
  Europe                                          4,698           3,881       21.1 %           17.5 %           16.2 %
  Middle East                                     8,140           6,711       21.3 %           30.3 %           28.0 %
  Far East & Asia                                 4,422           4,993      (11.4)%           16.5 %           20.9 %
  South America                                     523             555       (5.8)%            1.9 %            2.3 %
  All other areas                                   563             521        8.1 %            2.1 %            2.2 %
                                         ---------------  --------------  --------------   -------------     ------------
  
                                    $            26,822          23,941       12.0 %          100.0 %          100.0 %
                                         ===============  ==============  ==============   =============     ============
  
                                                                  NINE MONTHS ENDED (UNAUDITED)
                                         --------------------------------------------------------------------------------
  
                                                    Amounts                                   Percent of Total Sales
                                         -------------------------------                   ------------------------------
                                          January 30,      January 31,       % Over
           Geographic Area                    2000            1999           (Under)           2000             1999
  ----------------------------------     ---------------  --------------  --------------   -------------     ------------
  North America (Excluding USA)     $            26,064          23,035       13.1 %           31.4 %           27.4 %
  Europe                                         13,696          14,787       (7.4)%           16.5 %           17.6 %
  Middle East                                    24,092          25,071       (3.9)%           29.0 %           29.9 %
  Far East & Asia                                14,088          15,296       (7.9)%           17.0 %           18.2 %
  South America                                   1,773           2,793      (36.5)%            2.1 %            3.3 %
  All other areas                                 3,248           3,003        8.2 %            3.9 %            3.6 %
                                         ---------------  --------------  --------------   -------------     ------------
  
                                    $            82,961          83,985       (1.2)%          100.0 %          100.0 %
                                         ===============  ==============  ==============   =============     ============
  International  sales,  and the  percentage of total sales,  for each of the last
  five fiscal years follows: fiscal 1995-$57,971 (19%); fiscal 1996-$77,397 (22%);
  fiscal 1997-$101,571 (25%); fiscal 1998-$137,223 (29%); and fiscal 1999-$113,354
  (23%). International sales for the third quarter represented 23.7% and 21.4% for
  2000 and 1999, respectively.  Year-to-date international sales represented 23.1%
  and 23.9% of total sales for 2000 and 1999, respectively.
  Culp, Inc.
                     SALES BY SEGMENT/DIVISION - TREND ANALYSIS
                                1998 vs 1999 vs 2000
                                      Unaudited
                               (Amounts in thousands)
  Fiscal 1998                                     Fiscal 1999
                             ----------------------------------------------  ----------------------------------------------
      Segment/Division          Q1       Q2        Q3       Q4     TOTAL        Q1       Q2       Q3       Q4      TOTAL
  -------------------------
  Upholstery Fabrics
      Culp Decorative Fabrics  39,814    56,781   53,415   60,155  210,165      51,445  59,573   50,520   60,520   222,058
      Culp Velvets/Prints      38,397    43,928   44,020   45,044  171,389      29,994  38,728   34,949   40,402   144,073
      Culp Yarn                     -         -      761    7,115    7,876       6,596   6,367    4,088    4,462    21,513
                             ----------------------------------------------  ----------------------------------------------
                               78,211   100,709   98,196  112,314  389,430      88,035 104,668   89,557  105,384   387,644
  
  Mattress Ticking
      Culp Home Fashions       21,287    22,217   20,261   23,520   87,285      22,632  23,491   22,536   26,781    95,440
                             ----------------------------------------------  ----------------------------------------------
  
                               99,498   122,926  118,457  135,834  476,715     110,667 128,159  112,093  132,165   483,084
                             ==============================================  ==============================================
  
                     Percent increase(decrease) from prior year:
  
      Segment/Division
  -------------------------
  Upholstery Fabrics
      Culp Decorative Fabrics     2.2      24.2     35.8     37.7     25.3        29.2     4.9     (5.4)      0.6       5.7
      Culp Velvets/Prints        10.1       9.2      9.0      9.9      9.5       (21.9)  (11.8)   (20.6)    (10.3)    (15.9)
      Culp Yarn                     -         -    100.0    100.0    100.0       100.0   100.0    437.2     (37.3)    173.1
  
                             ----------------------------------------------  ----------------------------------------------
                                  5.9      17.2     23.2     32.6     20.1        12.6     3.9     (8.8)     (6.2)     (0.5)
  
  Mattress Ticking
      Culp Home Fashions         27.5      15.4     14.2     12.0     16.9         6.3     5.7     11.2      13.9       9.3
                             ----------------------------------------------  ----------------------------------------------
  
                                  9.9      16.8     21.5     28.5     19.5        11.2     4.3     (5.4)     (2.7)      1.3
                             ==============================================  ==============================================
  
    Overall Growth Rate
  
  Internal (without
           acquisitions)          9.9       6.6      9.2     11.6      9.3        (4.6)   (0.9)    (8.5)     (2.7)     (4.1)
  
  External                          -      10.2     12.3     16.9     10.2        15.8     5.2      3.1         -       5.4
                             ----------------------------------------------  ----------------------------------------------
  
                                  9.9      16.8     21.5     28.5     19.5        11.2     4.3     (5.4)     (2.7)      1.3
                             ==============================================  ==============================================
  Culp, Inc.
                     SALES BY SEGMENT/DIVISION - TREND ANALYSIS
                                1998 vs 1999 vs 2000
                                      Unaudited
                               (Amounts in thousands)
  Fiscal 2000
                               -----------------------------------------------
      Segment/Division            Q1        Q2        Q3        Q4     TOTAL
  -------------------------
  Upholstery Fabrics
      Culp Decorative Fabrics     50,516    56,897    49,654          157,067
      Culp Velvets/Prints         36,209    41,783    34,050          112,042
      Culp Yarn                    4,129     4,358     4,274           12,761
                                  -----------------------------------------------
                                  90,854   103,038    87,978          281,870
  
  Mattress Ticking
      Culp Home Fashions          25,083    26,504    25,203           76,790
                               -----------------------------------------------
  
                                 115,937   129,542   113,181          358,660
                               ===============================================
  
                     Percent increase(decrease) from prior year:
  
      Segment/Division
  -------------------------
  Upholstery Fabrics
      Culp Decorative Fabrics       (1.8)     (4.5)     (1.7)            (2.8)
      Culp Velvets/Prints           20.7       7.9      (2.6)             8.1
      Culp Yarn                    (37.4)    (31.6)      4.5            (25.2)
                               -----------------------------------------------
                                     3.2      (1.6)     (1.8)            (0.1)
  
  Mattress Ticking
      Culp Home Fashions            10.8      12.8      11.8             11.8
                               -----------------------------------------------
  
                                     4.8       1.1       1.0              2.2
                               ===============================================
  
    Overall Growth Rate
  
  Internal (without acquisitions)    4.8       1.1       1.0              2.2
  External                             -         -         -                -
                               ===============================================
                                     4.8       1.1       1.0              2.2
                               ===============================================
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                      CULP, INC. FINANCIAL INFORMATION RELEASE
                                 FINANCIAL NARRATIVE
   for the three and nine month periods ended January 30, 2000 and January 31, 1999
  
  INCOME STATEMENT COMMENTS
  
       GENERAL  - For the  third  quarter,  net  sales  increased  1.0% to  $113.2
  million;  and net income  amounted to $1.4  million,  or $0.13 per share diluted
  (based on 11,389,000 average shares outstanding during the period),  versus $1.5
  million,  or $0.12  per  share  diluted  (based  on  13,124,000  average  shares
  outstanding  during the period),  a year ago. For the nine months ended  January
  30, 2000, net sales increased 2.2% to $358.7 million; and net income amounted to
  $6.2 million,  or $0.52 per share diluted  (based on 11,816,000  average  shares
  outstanding during the period),  compared with net income of $206,000,  or $0.02
  per share diluted  (based on 13,171,000  average shares  outstanding  during the
  period), in the year-earlier period.
  
       The company's strategic plan encompasses several competitive initiatives:
  
  Broad Product  Offering - continuing to market one of the broadest product lines
  in upholstery fabrics and mattress ticking.  Through its extensive manufacturing
  capabilities, the company competes in every major category except leather;
  
  Diverse  Global  Customer Base - increasing its  penetration  into other end-use
  markets  in  addition   to  U.S.   residential   furniture,   such  as  bedding,
  international,  commercial  furniture  and juvenile  furniture.  The company has
  long-standing  relationships with most major upholstery furniture manufacturers,
  but is not reliant on a single customer or a small group of dominant  customers.
  No one customer accounted for more than 9% of net sales during the third quarter
  of fiscal 2000;
  
  Design  Innovation  -  continuing  to  invest  in  resources  for the  design of
  upholstery fabrics and ticking with appealing patterns and textures. An integral
  component of the value Culp provides to customers is supplying  fabrics that are
  fashionable  and meet current  consumer  preferences.  The  company's  principal
  design  resources are  consolidated in a single facility that provides  advanced
  CAD systems and promotes a sharing of innovative designs among the divisions;
  
  Vertical  Integration - operating as a vertically  integrated  manufacturer  and
  taking  advantage of economies  that can be gained by producing the raw material
  components that are used in the manufacture of its products; and
  
  Additional  Acquisitions - investing in selective acquisitions  complementary to
  existing segments.
  
  NET SALES - Compared  with the third  quarter of last  year,  upholstery  fabric
  sales decreased 1.8% to $88.0 million and mattress ticking sales increased 11.8%
  to $25.2 million (See Sales by Segment/Division  schedule on Page 5 and Sales by
  Segment/Division  - Trend  Analysis on Page 7).  International  sales  increased
  12.0% for the quarter.
  
  During  the first  quarter  of fiscal  1999,  the  company  implemented  a major
  reorganization  from six business  units to four  divisions.  This new corporate
  alignment  grouped  related  operations  together and was accompanied by several
  changes in managerial positions. The company believes that benefits of this move
  have included improved customer service,  more effective use of design resources
  and increased  manufacturing  efficiency.  Aided by these  factors,  the company
  achieved  higher sales to U.S.-based  accounts in the first half of fiscal 2000.
  Although  sales to U.S.-based  accounts  decreased 2.0% for the third quarter of
  fiscal  2000,  the company  recorded a gain of 3.3% to these  customers  for the
  first nine months of the fiscal year.  Weakness in international  sales affected
  results in the first two quarters of fiscal 2000, but sales to customers outside
  the United States were up 12.0% for the third quarter. The company believes that
  this increase  indicates that it has established a base of  international  sales
  from  which  to  build.  This  follows  an  industry-wide   trend  of  declining
  international  sales of  upholstery  fabrics  that  began in fiscal  1999  after
  several years of  above-average  growth.  During  fiscal 1999,  the company took
  steps to  mitigate  the  impact  of this  industry-wide  trend by  significantly
  curtailing  production  schedules  for certain  international-targeted  fabrics,
  introducing  a new line of printed  cotton  upholstery  fabrics and shifting its
  marketing  focus to geographic  areas where demand appears more  favorable.  The
  company has a  diversified  global base of  customers  and is seeking to broaden
  that further to minimize  exposure to economic  uncertainties  in any geographic
  area.
  
  The company  benefited in the third  quarter from  increased  sales by Culp Home
  Fashions  (primarily mattress ticking) which has experienced a long-term pattern
  of expansion.  Culp's growth in mattress  ticking  continues to be driven by the
  introduction of new designs and fabric  constructions  as well as the advantages
  of the company's vertical integration. In particular, the ability to manufacture
  the  jacquard  greige (or  unfinished)  goods  that are then  printed to produce
  mattress  ticking  has aided  Culp in  meeting  faster  delivery  schedules  and
  providing improved overall customer service.
  
  The  year-to-year  comparisons in the company's  income  statement for the third
  quarter need to be considered  within the context that the third fiscal  quarter
  is not historically  the strongest  period of the year due to seasonal  factors.
  Changes in shipments in such a quarter may not affect the absolute  level of net
  sales significantly but can have a material effect on margins and other measures
  of  profitability.  The company  does not believe  that the decline in operating
  margins in the third quarter signals a structural change in its profitability.
  
       GROSS PROFIT - Gross profit for the third  quarter  declined  3.7% to $18.5
  million and  decreased as a percentage  of net sales from 17.1% to 16.3%.  Gross
  profit for the nine months  increased as a percentage of net sales from 15.2% to
  17.5%.  The  company  has taken a number of actions to  increase  gross  profit,
  including a  significant  reduction in the capacity  for  manufacturing  printed
  flock  fabrics  and an intense  effort to reduce  operating  expenses  and raise
  productivity.
  
       S,G&A  EXPENSES - As a percentage  of sales,  S,G&A  expenses for the third
  quarter  decreased  to 12.3%  from  12.6% for the  year-earlier  period and were
  unchanged  through the first nine months.  The increase in absolute  dollars for
  the nine months  principally  reflects higher costs related to resources for the
  design  of new  fabrics  and  information  systems,  as well as other  increased
  operating expenses intended to support a higher level of sales.
  
       INTEREST  EXPENSE - Interest  expense of $2.4 million for the third quarter
  was up from $2.3  million a year ago even though the  company had lower  average
  borrowings  outstanding.  The  lower  level of  borrowings  was  offset by lower
  capitalized interest related to capital expenditures and higher average interest
  rates.
  
       OTHER EXPENSE  (INCOME),  NET - Other expense (income) totaled $229,000 for
  the third quarter compared with $492,000 a year ago. The decrease is principally
  due to higher investment income on assets related to the company's  nonqualified
  deferred compensation plan.
  
       INCOME  TAXES - The  effective  tax  rate  for the nine  months  was  32.3%
  compared with 32.0% in the year-earlier period.
  
       EBITDA - EBITDA for the third  quarter  totaled $9.7 million  compared with
  $9.5 million a year ago.
  
  BALANCE SHEET COMMENTS
  
       WORKING CAPITAL - Accounts receivable as of January 30, 2000 increased 4.3%
  from the  year-earlier  level,  due  principally  to changes in the mix of sales
  between U.S.-based and international customers. Days sales outstanding increased
  slightly  to  49  days  at  January  30,  2000  compared  with  47 a  year  ago.
  Additionally,  the aging of accounts  receivable was 97.1% current and less than
  30 days  past due  versus  94.1% at the end of the  third  quarter  a year  ago.
  Inventories at the close of the third quarter  increased  $11.7 million or 16.9%
  from a year ago,  principally  due to the  decision  to increase  the  company's
  ability to respond quickly to customers'  orders.  Inventory turns for the third
  quarter  were 4.8 versus 5.2 for the third  quarter  of fiscal  1999.  Operating
  working  capital  (comprised  of accounts  receivable,  inventory  and  accounts
  payable) was $111.3 million at January 30, 2000, up 4.5% from a year ago.
  
       PROPERTY,  PLANT AND EQUIPMENT - During fiscal 1999 the company reduced its
  capital  spending to $10.7  million  compared  with $35.9 million in fiscal 1998
  because of a focus on improving the results of the considerable investments made
  during  fiscal 1997 and fiscal  1998.  The  company is  committed  to  investing
  sufficient  funds to modernize  and expand its  manufacturing  resources and has
  invested a total of $14.5 million  through the first nine months of fiscal 2000.
  The company is budgeting total capital spending for fiscal 2000 of approximately
  $23  million.  Depreciation  for  fiscal  2000  is  currently  estimated  to  be
  approximately $20 million.
  
       LONG-TERM DEBT - The company's  funded  debt-to-capital  ratio was 52.3% at
  January 30,  2000,  compared  with 51.5% at January 31, 1999 and 52.1% at May 2,
  1999.  Funded debt was $137.7 million at January 30, 2000,  compared with $138.5
  million  at January  31,  1999 and $138.7  million at May 2, 1999.  Funded  debt
  equals   long-term  debt,   including   current   maturities,   less  restricted
  investments, which represent unspent IRB funds. The decrease in funded debt from
  May 2, 1999 resulted  primarily from an operating cash flow of $18.2 million and
  an increase in accounts payable related to capital expenditures of $5.0 million,
  offset by capital expenditures of $14.5 million,  repurchases of common stock of
  $6.6 million and dividends paid of $1.2 million.
  
  STOCK REPURCHASE
  
       In separate  authorizations  in June 1998,  March 1999,  September 1999 and
  December  1999,  the Board of Directors  authorized  the use of a total of $20.0
  million to repurchase  the  company's  common  stock.  During  fiscal 1999,  the
  company  repurchased 938,600 shares at an average price of $5.90 per share under
  these  authorizations.  During the first nine months of fiscal 2000, the company
  invested $6.6 million to repurchase  870,539 shares at an average price of $7.53
  per share.