EXHIBIT 99.1 Asset Purchase Agreement

                                                                    Exhibit 99.1

    Culp Announces Asset Purchase Agreement with International Textile Group

    HIGH POINT, N.C.--(BUSINESS WIRE)--Jan. 11, 2007--Culp, Inc.
(NYSE: CFI) today announced the company has signed an asset purchase
agreement with International Textile Group, Inc. ("ITG") (OTC Bulletin
Board: ITXN). Based in Greensboro, North Carolina, ITG manufactures
and supplies textile products worldwide. Pursuant to the terms of the
agreement, Culp will acquire certain assets of the mattress fabrics
product line of ITG's Burlington House Division, including inventory
and the rights to produce ITG's mattress fabric patterns. The total
value of the transaction is approximately $8.3 million, comprised of
$2.5 million in cash with the remainder to be paid to ITG in Culp
common stock. The transaction is anticipated to close by the end of
January 2007.

    Commenting on the announcement, Robert G. Culp, III, chairman of
the board and chief executive officer of Culp, Inc., said, "We are
pleased to announce this agreement with ITG and believe this
transaction will further enhance our strong competitive position in
mattress fabrics. ITG has made the strategic decision to discontinue
its U.S. mattress fabrics product line and we view this as a great
opportunity for Culp. Mattress fabric is an important part of our
business and accounted for approximately 40 percent of the company's
sales in our second fiscal quarter. As a result of the substantial
investments we have made in this business segment over the past two
years, we are firmly committed to the future of the mattress fabric
business. We believe we are well positioned as the leader in our
industry and have a globally competitive cost structure. We believe
this transaction provides the opportunity to increase our annual sales
in mattress fabrics by approximately $25 to $30 million without any
investment in fixed assets. Culp has the necessary capacity in place
to absorb the additional volume, and we look forward to working
closely with ITG to ensure a smooth and orderly transition. This
transition is expected to occur over the next four months. We are
excited about extending our market reach in this important business
for Culp."

    About Culp, Inc.

     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