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2010 Annual Meeting of StockholdersApril 28, 2010

Thermal/Acoustical

Performance Materials

Vital Fluids

Affinity

Any information discussed in this presentation which may be forward looking in nature is made available pursuant to the Safe Harbor Provision for forward-looking statements as defined in the securities laws. Lydall’s businesses are subject to a number of risk factors which may cause actual results to differ materially from those anticipated in the forward-looking statements. For information identifying some of these important risk factors, refer to Lydall’s Annual Report on Form 10-K and Forms 10-Q in the MD & A section under Cautionary Note Concerning Factors That May Affect Future Results and also Risk Factors.

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Lydall Revenue by Business

$164$128

2008 2009

Thermal/Acoustical

�

(22%)

Total Lydall

2008 2009$306 $249

$112 $98

2008 2009

�

(12%)

Vital Fluids

$17 $15

2008 2009

�

(12%)$15

$9

2008 2009

�

(39%)

Affinity

Economic Decline had a Negative Impact on all Lydall BusinessesEconomic Decline had a Negative Impact on all Lydall Businesses

($M)

�

(19%)

Performance Materials

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Key Organizational Focus for 2009

S Manage our liquidity

S Core operational improvements through Lydall Lean Six Sigma

S Invest in key growth initiatives

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14.120.1

22.1

9.1

(14.2)

(5.0)

Operating Cash Flow

Net Income (Loss)

15.713.7

22.7

9.88.2 6.8

58%

39%

34%

Cash

Debt

Liquidity Ratio

Operational Performance

2007 2008 2009

Liquidity Ratio = Cash/Current Liabilities

Operating Cash Flow and Net Income

Cash Position

($M)

2007 2008 2009

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S Managed our cash and working capital to maintain liquidity & fund growth

� Reduced inventory by $14.2M

� Generated $14.1M of cash from operating activities, despite a net loss of $14.2M

� Ended year with $22.7M cash, up from $13.7M at Y/E ’08

S Reduced global workforce by 4.5%, following a 15% reduction in ’08

S Reduced U.S. salaries by 3%, suspended 401(k) match

S Completed consolidation of two North American Automotive facilities into one; annualized savings expected to be $3.5M – $4.0M

S Secured new domestic credit facility in March ‘09

2009 Actions

Actions Taken to Preserve Short-term Shareholder Value and Generate Long-term Shareholder Gains

Decisive Actions Taken to Manage a Challenging YearDecisive Actions Taken to Manage a Challenging Year

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Lydall Lean Six Sigma (LLSS)

Becoming a Core Lydall Competency

S 2009 Operating and Working Capital Improvements� Continue to target LLSS savings of 2% of sales� Improved inventory turns from 6.0 to 8.1� Reduced Working Capital Days at every Lydall

facility� Freed up cash substantially

S Employee development� 71% of employees trained at the LLSS

Advocate Level� 76 Green Belts� 12 Black Belts� 3 Master Black Belts

$37 $41$27

2007 2008 2009

Turns: 6.7 6.0 8.1

Inventory

Color coded WIP to improve

aging identification

Organized room and removed excess parts to reduce inventory and

incorrect part use

LLSS helped to reduce inventory by $14.2M in ‘09

Increased efficiency on shop floor; reduced clutter and improved

work flow

Before After

Before After

Optimized product flow reduced

floor space by 50%

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Investing in Growth – Thermal/Acoustical

North American Consolidation Complete

S Consolidation complete at the end of Q2 ‘09

S Total consolidation costs of $7.4M

S On track to meet planned annualized savings of $3.5M - $4.0M

S St. Johnsbury inventory depleted

S Overall NA capacity remains essentially the same

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Investing in Growth – Performance Materials

Green Island Needled Glass Mat Line

S Fully commissioned August 31, 2009

S Expands Lydall’s high temperature insulation product offering, appLY® Mat

S Allows greater commercial inroads into premium residential ovens, water heaters and commercial boilers

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Bale and fiber opening Forming section Air laid formed fiberglass batting Needled Glass Mat finished product

appLY® Mat high density fiberglass insulation

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Investing in Growth – Vital Fluids (Charter Medical)

Small Bag Project

S Adds new state-of-the-art automated bag manufacturing equipment

S Allows Charter Medical to pursue opportunities in high-growth bio markets

S Expands Charter Medical’s bioprocessing product offering

9

View of automation lineNew small bag machine BIO-PAK® Small Volume bags in production

BIO-PAK® Small

Volume bag

BIO-PAK® Cell

Culture bag

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Investing in Growth – Vital Fluids (Charter Medical)

Large Bag Project

S Allows Charter Medical to pursue opportunities in high-growth bio markets

S Charter Medical can now produce custom large scale bioprocessing containers from 50L to 3500L

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Perimeter welding machine Port welding machine

BIO-PAK® 3D Gusset bag

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New Product Development – Performance Materials

- Microporous Solupor® UPE membrane combines structural microfibers and nanofibers for excellent strength, high efficiency, and low pressure drop performance

- Three commercial grades available in ‘09

- Filtration applications: clean spaces, respirators, vacuum cleaners

Pleated Arioso™ air filtration membrane

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New Product Development – Performance Materials

LyPore® Defender

- Microglass filtration media

- High dirt holding capacity with low pressure differential

LydAir® SC

- Synthetic composite filter media

- Highly uniform and durable

- Needled glass mat insulator

- Improved thermal performance and ease of installation

appLY® Mat

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New Product Development – Thermal/Acoustical

- Thermal and acoustical insulator

- Flexible heat shielding in aggressive thermal environments

FlexShield®

Thermal/Acoustical Metal Shields

Wheel Well Molded Fiber Composite

- Metal thermal and acoustical insulating shields

- Reduces both noise and heat transfer

- Molded fiber composite acoustical insulator

- High acoustical absorption, stiffness and shape retention

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New Product Development – Charter Medical

Cell-Freeze®

- Cryogenic stem cell storage container

- Unique bag film remains flexible at ultra low temperatures (-196oC)

- Cryogenic bioprocessing storage container

- Unique bag film remains flexible at ultra low temperatures (-196oC)

- Bioprocessing container

- Multiple port configurations to match customer fill and finish

applications

- Bioprocessing cell culture bag

- Designed to enhance cell growth and viability

- Bioprocessing container

- Large scale bioprocessing in 50L to 3500L sizes

Bio-Pak® 3D Gusset

Bag

Bio-Pak® Small

Volume Bag

Freeze-Pak®

Bio-Pak® Cell Culture

Bag

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New Product Development – Affinity

S-Series Chiller

- Air-cooled chiller

- Flexible, scalable design concept that allows the customer to match the system configuration to their cooling application needs

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$61

$54 $56

$66$73

$4 $3 $4 $4 $4

$3 $2 $1 $2 $3

Segment Sales

% of Sales

Total Sales Increased Three Consecutive QuartersTotal Sales Increased Three Consecutive Quarters

16

51% 54%

39% 36%

Net Sales($M)

‘09 ‘08

Thermal/Acoustical

PerformanceMaterials

Vital FluidsAffinity

$22 $22$23

$25$27

PerformanceMaterials

Vital Fluids

Lydall Total

Thermal/Acoustical

Affinity

Q4 ‘08 Q1 ‘09 Q2 ‘09 Q3 ‘09 Q4 ‘09

$39$35

$28$27

$32$39$35

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$51

$34$45

$0

$10

$20

$30

$40

$50

$60

Dec '07 Dec '08 Dec '09

Sales Backlog

Exited ‘09 with an Increasing BacklogExited ‘09 with an Increasing Backlog

($M)

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S Markets appear to be recovering

S Maintain LLSS improvements to support efficient revenue growth

S Expand LLSS beyond manufacturing to other business processes

S Execute on growth investments� Solutech� Needled glass mat� Bio-tech single-use expansion

S Continue to invest in growth opportunities, both organically andinorganically, while judiciously managing our balance sheet

Looking Ahead

Maintained Focus during a Challenging Year and Positioned the Company for Future Growth

Maintained Focus during a Challenging Year and Positioned the Company for Future Growth

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Contact

For further information:

Visit our website: www.lydall.com

Email: investor@lydall.com

Contact or call:

Peter M. Kurto

VP Business Development & Investor Relations

Lydall, Inc. (NYSE: LDL)

One Colonial Road

Manchester, CT 06042

(860) 646-1233

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