FOR IMMEDIATE RELEASE


                     CULP ADOPTS SHAREHOLDER RIGHTS PLAN


High  Point,  N.C.  (September  21,  1999)  - Culp,  Inc.  (NYSE:  CFI)  today
announced  that its board of directors has adopted a shareholder  rights plan.
The plan,  which is  similar to plans  adopted  by more than 2,500  other U.S.
corporations,  would  operate to dilute  company  common  stock  acquired by a
person  or  group,  other  than  the Culp  family  (which  currently  controls
approximately  26%  of  the  company's  stock),  buying  15%  or  more  of the
company's  common  stock,  except  in  transactions  approved  by the board of
directors.  In the event that the 15%  threshold  is crossed,  dilution  would
occur because the plan gives  shareholders,  other than the acquirer of 15% or
more of the  company's  common  stock,  the  right to buy  company  stock at a
bargain  price or the ability to exchange  each right for a newly issued share
of company  stock. A letter  summarizing  the details of the plan will be sent
to shareholders on the record date for issuance of the rights.

Robert G. Culp, III, chief executive  officer,  remarked,  "The rights plan is
intended to protect the long-term  value of  shareholders'  investment in Culp
by encouraging any potential  acquirer to treat all  shareholders  equally and
negotiate  with  the  company's  board  of  directors   before   attempting  a
takeover.  We are not aware of any  current  attempt  to  acquire  control  of
Culp.  The board's  decision to implement  the plan was based  principally  on
its belief that the company's  long-term value is  significantly  greater than
the current market price of its shares would indicate."

The  rights  plan  should  not  interfere  with any  merger or other  business
combination that is in the interest of shareholders  because the rights may be
redeemed  by the board of  directors  for a nominal  amount.  Issuance  of the
rights  will not have a  dilutive  effect  on  shareholders,  will not  affect
earnings  per  share,  and will not be  taxable  either to the  company or its
shareholders.

Culp, Inc. is one of the world's largest  marketers of upholstery  fabrics for
furniture  and is a leading  marketer of mattress  ticking  for  bedding.  The
Company's  fabrics are used  principally in the production of residential  and
commercial furniture and bedding products.

This  release  contains  statements  that  could  be  deemed  "forward-looking
statements"   within  the  meaning  of  the  federal   securities  laws.  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.