Exhibit 99.1

Culp Announces Revised U.S. Upholstery Fabrics Manufacturing Strategy


    HIGH POINT, N.C.--(BUSINESS WIRE)--Dec. 14, 2006--Culp, Inc.
(NYSE: CFI) today announced a revised U.S. upholstery fabrics
manufacturing strategy with the consolidation of the company's U.S.
upholstery fabrics manufacturing facilities and the outsourcing of its
specialty yarn production. This process will involve closing the
company's weaving plant located in Graham, North Carolina, and closing
the yarn plant located in Lincolnton, North Carolina. The company will
transfer certain production from the Graham plant to its Anderson,
South Carolina, and Shanghai, China, facilities as well as a small
portion to contract weavers. The company will continue to operate one
upholstery fabrics plant in Anderson, which will produce velvets and
decorative fabrics.

    Commenting on the announcement, Robert G. Culp, III, chairman of
the board and chief executive officer of Culp, Inc., said, "We have
made considerable progress in changing our product strategy, reducing
our manufacturing complexities and improving our cost structure in the
U.S. upholstery fabrics business. At the same time, we have been
aggressively growing our China-produced business. However, the lower
sales volumes in our decorative fabrics and yarn plants are having a
significant impact on the profitability of our overall upholstery
fabrics business. By further consolidating our U.S. manufacturing
operations and utilizing lower-cost manufacturing alternatives, we are
reducing our operating costs and improving our domestic capacity
utilization. We have been highly successful with our China platform
and continue to be encouraged by the progress we are making in selling
non-U.S. produced products.

    "We believe we are making progress toward creating a sustainable
upholstery fabrics business model that will meet current customer
demand," Culp added. "We believe the Anderson plant continues to be
the low-cost U.S. producer for velvet fabrics and we are pleased with
the trends in customer placements of new product introductions. We
also have capacity in Anderson to absorb some of the decorative fabric
production from Graham and we believe this plant will continue to be
an important element of our overall upholstery fabrics business.

    "As a result of the two plant closures, we will be eliminating
approximately 185 positions. We deeply regret the impact these actions
will have on the people and communities involved. We are committed to
providing employment and benefit assistance to the extent possible,
and Culp associates at both plants qualify for Trade Adjustment
Assistance benefits, which include, among other things, training
programs to learn a new trade. We will begin this transition
immediately and expect to substantially complete this process by the
end of April 2007," concluded Culp.

    The company expects the restructuring actions to result in total
pre-tax charges of approximately $7.3 million ($5.8 million on an
after-tax basis), of which $5.4 million is expected to be non-cash
items. Of the total charges, the company estimates that approximately
$4.1 million ($3.3 million, net of taxes, or $0.28 per diluted share)
will be recorded in the third quarter of fiscal 2007. The remaining
charges are expected to be recorded in the fourth quarter of fiscal
2007, with some possible carryover to fiscal 2008. As a result of
these activities, Culp will have only one U.S. manufacturing facility
operating in the upholstery fabrics segment with book value of
property and equipment of $1.5 million and approximately 150
employees.

    About the Company

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

    This release contains statements that may be deemed
"forward-looking statements" within the meaning of the federal
securities laws, including the Private Securities Litigation Reform
Act of 1995 (Section 27A of the Securities Act of 1933 and Section 27A
of the Securities and Exchange Act of 1934). Such statements are
inherently subject to risks and uncertainties. Further,
forward-looking statements are intended to speak only as of the date
on which they are made. Forward-looking statements are statements that
include projections, expectations or beliefs about future events or
results or otherwise are not statements of historical fact. Such
statements are often but not always characterized by qualifying words
such as "expect," "believe," "estimate," "plan" and "project" and
their derivatives, and include but are not limited to statements about
the company's future operations, production levels, sales, SG&A or
other expenses, margins, gross profit, operating income, earnings or
other performance measures. 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. Changes in consumer
tastes or preferences toward products not produced or marketed by the
company could erode demand for the company's products. In addition,
strengthening of the U.S. dollar against other currencies could make
the company's products less competitive on the basis of price in
markets outside the United States. Also, economic and political
instability in international areas could affect the company's
operations or sources of goods in those areas, as well as demand for
the company's products in international markets. Finally,
unanticipated delays or costs in executing restructuring actions could
cause the cumulative effect of restructuring actions to fail to meet
the objectives set forth by management. Other factors that could
affect the matters discussed in forward-looking statements are
included in the company's periodic reports filed with the Securities
and Exchange Commission, including the "Risk Factors" section in the
company's most recent annual report on form 10-K.

    CONTACT: Culp, Inc.
             Investor Contact:
             Kenneth R. Bowling, 336-881-5630
             Vice President of Finance
             or
             Media Contact:
             Kenneth M. Ludwig, 336-889-5161
             Senior Vice President, Human Resources