Lydall Announces New $35 Million Revolving Line of Credit

LYDALL, INC.

announced today that it has entered into an agreement with Bank of America, N.A. for a five-year, $35 million revolving credit facility. This credit facility replaces the Company's prior $35 million asset-based lending facility with another lender that was scheduled to expire in March 2012. The new bank agreement includes lower interest rates and other improved terms, such as fewer borrowing restrictions. The facility is subject to customary covenants, including meeting EBITDA milestones and liquidity ratios. As of June 16, 2011, Lydall had no outstanding borrowings. Dale Barnhart, President and CEO of Lydall, said, "This new credit facility represents Bank of America's confidence in Lydall, and we look forward to partnering with them in the coming years. The flexibility that this agreement offers the Company will support both our operating needs and our strategic growth initiatives throughout its term."