“Looking forward, our long-term strategy remains on track, and if anything, ahead of schedule:  the emerging businesses continue on their path to sustainable growth; the PMC investments in Asia and Latin America are progressing well; and we are increasingly optimistic about our PMC products and R&D pipeline.  And, while there is always the risk that petroleum price increases will undermine our efforts, we expect that company-wide internal improvement initiatives will have positive impacts on margins beginning late in the fourth quarter of 2006.

          “On the other hand, we do see a notable change in our environment that could affect earnings in the short term.  This earnings release refers to continuing consolidation in the paper industry in Canada and Europe.  In addition, some of our competitors in Europe are aggressively reducing PMC prices.  The combination of the financial pressures on the paper industry and the discounting by our competitors leads us to the conclusion that it would be prudent to expect a slowdown in PMC revenue growth in the near term.

          “Because of the downward pressure on PMC revenue, we are, in this current third quarter, accelerating the above-mentioned internal efforts to improve margins.  These accelerated efforts will have a negative impact on earnings in the third quarter of 2006.  But we are hopeful that by year-end 2006, the resulting margin improvements will offset the impact on earnings from any slowdown in PMC revenue growth.  We remain bullish about the PMC industry and confident that our value generating activities in general, and investments in the growth markets of Asia and Latin America in particular, will have enduring, positive impacts on our PMC business and returns to shareholders.”

          The Company plans a live webcast to discuss second-quarter 2006 financial results on Friday, July 21, 2006, at 9:00 a.m. Eastern Time.  For access, go to www.albint.com. 

          Albany International is the world’s largest producer of custom-designed paper machine fabrics and process belts that are essential to the manufacture of paper and paperboard.  In its family of businesses, Albany applies its core competencies in advanced textiles and materials to other industries.  Founded in 1895, the Company is headquartered in Albany, New York, and employs approximately 5,900 people worldwide with plants strategically located to serve its global customers.  Additional information about the Company and its businesses and products is available at www.albint.com. 

          This release contains certain items that may be considered to be non-GAAP financial measures.  Such items are provided because management believes that, when presented together with the GAAP items to which they relate, they can provide additional useful information to investors regarding the registrant’s financial condition, results of operations, and cash flows.

          The effect of changes in currency translation rates is calculated by converting amounts reported in local currencies into U.S. dollars at the exchange rate of a prior period.  That amount is then compared to the U.S. dollar amount reported in the current period.

          Forward-looking statements in this release or in the webcast, including statements about future economic conditions, material and petroleum costs, growth, sales and earnings, new products, research and development, internal efficiencies, pension contributions, future margins, future revenues, the impacts of consolidation and price competition on future revenues or margins, paper industry outlook, capital expenditures, tax rates, and depreciation and amortization are made pursuant to the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995.  Such statements are based on current expectations and are subject to various risks and uncertainties, including, but not limited to, economic conditions affecting the paper industry and other risks and uncertainties set forth in the Company’s 2005 Annual Report to Shareholders and subsequent filings with the U.S. Securities and Exchange Commission.  Furthermore, a change in any one or more of the foregoing factors could have a material effect on the Company’s financial results in any period.