The results reflect continued strength in net sales and cash generation, but lower-than-expected operating margins. Compared to the fourth quarter of 2004, the primary factors contributing to the lower-than-expected operating margins were: (a) increased material costs due to higher energy prices (approximately $0.11 per share); (b) lower prices for paper machine clothing (PMC) in certain European markets (approximately $0.08 per share); and (c) a number of expenses associated with the residual effects of the 2004 restructuring (approximately $0.07 per share).

Further details will be provided in the earnings announcement on January 26, 2006, and the earnings webcast of January 27, 2006, at 9:00 a.m. Eastern Time.

The Company also reported that net sales for the first quarter of 2006 were likely to be reduced by approximately $8 million and earnings would be reduced between $0.05 and $0.07 per share, as the result of an anticipated change during the quarter in commercial terms with a major customer.

President and CEO Joe Morone commented, “We had anticipated higher material costs, but competitive pricing pressures in Europe were greater than expected as were a number of expenses associated with the residual effects of the 2004 restructuring. While we are disappointed in the earnings, the record net sales and continuing strong cash from operations reinforce our commitment to our strategic plan for 2006 and beyond.”

The Company also announced planned investments in Asia and Brazil, in support of paper machine clothing growth, and a strategic acquisition that will support growth of the Albany International Techniweave business in aerospace composites (Applied Technologies Segment).

In PMC, the Company will invest approximately $150 million over the next four years in a new manufacturing facility in Hangzhou, China, and in capacity expansions of existing plants in Brazil and Korea. The new facility in China will serve as the headquarters of the Pacific Business Corridor and will house major PMC operations for the manufacture of forming and press fabrics, used in the manufacture of paper and paperboard products.

In the Applied Technologies segment, Albany International Techniweave, Inc. has agreed to purchase all the shares of Texas Composite Inc. (TCI) for approximately $15 million in cash. TCI, a designer and manufacturer of lightweight, high-strength composite structures for aerospace applications, had 2005 sales of approximately $8 million. The purchase is subject to final due diligence and is expected to be completed in two separate transactions, the first by the end of January 2006 and the second before year-end. The acquisition is expected to be neutral to slightly dilutive to 2006 earnings per share, accretive to earnings per share in 2007, and to generate an attractive return on invested capital.

The Company further announced that the Board of Directors has authorized the purchase of up to 3.5 million shares of its Class A Common stock. The Board’s action authorizes management to purchase shares from time to time, in the open market or otherwise, whenever it believes the available price makes such purchase advantageous to the Company’s shareholders.