AMERICAN FIBERS & YARNS COMPANY ACQUIRES CULP'S EXTRUSION ASSETS

Press Contact:
Tracey Campbell (800-925-0668) (twcampbell@afyarns.com)
John Avant (919-676-4115) (john.avant@avant.com)

Chapel Hill, NC (August 16, 2005) – American Fibers & Yarns Company announced today it has purchased Culp Inc.’s polypropylene fiber extrusion assets and entered into a long-term supply agreement to provide Culp with polypropylene yarn.

“As the market environment becomes more volatile, the need for consolidation and efficiency is critical,” said Michael Apperson, AF&Y president and CEO.  “This transaction made sense strategically for both of our businesses. We have enjoyed a long successful partnership with Culp, and this agreement further solidifies both of our positions as key players in the industry. Innovative fiber development and production is our expertise and this additional demand is a nice fit for our current capabilities. This agreement allows us both to concentrate on collaborative R&D efforts and a more aggressive leading-edge market position.”

Effective August 17th, the transition of assets will begin.  Employees from both organizations will initiate the integration process from Culp’s Graham, NC plant to AF&Y’s Bainbridge, GA and Afton, VA plants.   The changeover will create employment opportunities at AF&Y.

 “The decision to sell our polypropylene fiber equipment to AF&Y enables us to focus on what we do best.  Our expertise is creating innovative fabrics and providing our customers with a higher level of service to meet their needs in the global industry,” said Rob Culp III, Culp Inc. Chairman and CEO.  “The need to further consolidate our business and concentrate on being competitive is more evident everyday.  Fiber and yarn manufacturing is AF&Y’s core competency. They are well positioned to continue to supply our needs and help us create innovative, performance, and value-added products in this changing market.”

About American Fibers and Yarns Company
American Fibers and Yarns Company (AF&Y) is the world’s leading supplier of solution dyed filament yarns.  With thousands of yarns in its product portfolio and the ability to engineer yarns to customer specifications, AF&Y is a dominant supplier to the residential and contract furnishings marketplace, and has a growing presence in the hospitality, apparel, automotive and industrial markets.  Headquartered in Chapel Hill, NC, AF&Y maintains a Technology Center that specializes in engineering filament yarn with innovative combinations not available from other suppliers.  The company also operates two U.S. production facilities totaling a million square feet of manufacturing space.  For more information on AF&Y and its products, please visit www.afyarns.com or call 800-925-0668.