Culp To Expand Mattress Fabric Business, Add 129 Jobs

High Point, N.C.-based Culp Inc. plans to expand its mattress fabrics business in Stokesdale, N.C.,
investing at least $450,000 to add cut-and-sew operations and adding 129 jobs. The company has
begun preparing a manufacturing facility across the street from its existing weaving facility in
Stokesdale and anticipates starting up the new operation this fall. The ultimate total investment
could exceed $900,000.

Culp comprises two divisions: Culp Home Fashions including knitted and woven mattress
fabrics, with manufacturing facilities located in High Point and Stokesdale as well as in Canada;
and Culp Upholstery Fabrics, with manufacturing located in High Point, China and Poland. The
company’s current workforce at its North Carolina facilities numbers more than 410 people.

The mattress fabrics business has grown over the last several years, from representing a
20-percent share of the company’s total business in 2000 to 57 percent in 2011. The company claims
to have the leading U.S. market share in both businesses and realized net sales of $254.4 million
in fiscal year 2012 — up 17.4 percent from 2011 and including $145.5 million in mattress fabric
sales, an 18.9-percent increase for the year in that business.

The new facility will produce mattress covers that will be marketed to Culp’s customers under
a joint marketing agreement with Chicago-based mattress cover supplier A. Lava & Son Co. The
facility will be wholly owned by Culp.

“This new venture, known as Culp-Lava Applied Sewn Solutions, represents a natural
progression of Culp’s mattress fabrics business as we continue to capitalize on growth
opportunities in more innovative product offerings,” said Iv Culp, president, Culp Home Fashions.
“We believe this new venture highlights our commitment to enhance Culp’s leadership position in the
bedding industry with an expanded and flexible manufacturing platform, supported by exceptional
design, superior customer service, reliable delivery performance and consistent quality and value.”

“We are very excited about this expansion and vertical integration for that area of our
business because it will allow us to be more responsive to customers and have a broader product
offering,” said Teresa Huffman, vice president, human resources, with responsibility for corporate
communications, Culp Inc. “We are looking forward to starting up the new operation this fall.”

The company has received a $82,560 grant from the One North Carolina Fund to assist in the

August 14, 2012