Faces Over Nine Thousand Asbestos Related Claims ------------------------------------------------ Published October 25, 2002 Albany International Corp. and its affiliate, Brandon Drying Fabrics, Inc., are defendants in a number of proceedings for injuries allegedly suffered as a result of exposure to asbestos-containing products. Albany marketed asbestos-containing dryer fabrics during the period from 1967 to 1976. Such fabrics generally had a life of from three to twelve months. At August 2, 2002, there were 9,405 claims pending against Albany, compared to 8,934 claims pending as of May 3, 2002, 7,347 claims as of December 31, 2001, 1,997 claims as of December 31, 2000, and 2,276 claims as of December 31, 1999. While Albany believes it has meritorious defenses to these claims, it has settled certain of these cases for amounts it considers reasonable given the facts and circumstances of each case. Albany's insurer, Liberty Mutual, has defended each case under a standard reservation of rights. As of August 2, 2002, Albany had resolved, by means of settlement or dismissal, 2,216 asbestos-related personal injury claims for $1,178,500. Of this amount, $1,143,500, or 97%, was paid by Liberty Mutual. Albany has over $130 million in confirmed insurance coverage that should be available with respect to current and future asbestos claims, as well as additional insurance coverage that it should be able to access. The Company believes that all asbestos-related claims against it are without merit. Based upon its understanding of the insurance policies available, how settlement amounts have been allocated to various policies, recent settlement experience, the absence of any judgments against the Company, and the defenses available, the Company currently does not anticipate any material liability relating to the resolution of the above proceedings in excess of existing insurance limits. Consequently, the Company does not believe, based upon currently available information, that the ultimate resolution of these claims will have a material adverse effect on its financial position, results of operations or cash flows. Although the Company cannot predict the number and timing of future claims, based upon the foregoing factors and the trends in claims against it to date, the Company does not anticipate that additional claims likely to be filed in the future will have a material adverse effect on its financial position, results of operations or cash flows. However, the Company is aware that litigation is inherently uncertain, especially when the outcome is dependent primarily on determinations of factual matters to be made by juries. The Company is also aware that numerous other defendants in asbestos cases, as well as others who claim to have knowledge and expertise on the subject, have found it difficult to anticipate the volume of future asbestos claims. For these reasons, there can be no assurance that the foregoing conclusions will not change. The Company anticipates that additional claims will be filed against it in the future but is unable to predict the timing and number of such future claims. COMPANY PROFILE Albany International Corp. (NYSE: AIN) 1373 Broadway Albany, NY 12204 Phone: 518-445-2200 Fax: 518-445-2265 http://www.albint.com Employees : 6,769 Revenues : $ 836,700,000.00 Net Income : $ 32,200,000.00 Assets : $ 931,900,000.00 Liabilities : $ 615,300,000.00 No. of Asbestos Claims : * 9,405 Booked Asbestos Assets : $ 130,000,000 (As of December 31, 2001) (*As of August 2, 2002) Description: Albany International Corp. is the world's #1 maker of paper machine clothing (PMC, custom-made fabric belts that move paper stock through each phase of production). It has manufacturing facilities in Asia, Australia, Europe, and North and South America. Albany produces about 35% of the monofilament yarn used in its products and relies on independent suppliers for the remainder. It markets to paper mills in 25 countries through a direct sales staff. Albany also makes high-performance industrial doors (Rapid Roll Doors) such as aircraft hangar doors and dock doors. Former chairman Spencer Standish and his family own about 30% of the company. ----------------------------------------------------------- LitigationDataSource.com