Item 1.01 ENTRY INTO A MATERIAL DEFINITIVE AGREEMENT

On May 21, 2009, Albany International Corp. (the "Company") entered into agreements with Citadel Equity Fund Ltd. ("Citadel") and two other parties (collectively, the "Noteholders"), pursuant to which the Noteholders agreed to exchange $50,500,000 principal amount of the Company's 2.25% Convertible Senior Notes due 2026 (the "Convertible Notes") for (i) an equivalent amount of the Company's 2.25% Senior Notes due 2026 (the "New Notes"), plus (ii) a cash payment of $7.50 per $1,000 principal amount of Convertible Notes, plus (iii) any accrued but unpaid interest on the Convertible Notes through the relevant closing date. Closing for the exchange of $30,500,000 principal amount of Convertible Notes is expected to take place on July 1, 2009, and closing on the remaining $20,000,000 of Convertible Notes is expected to take place on October 1.

Also on May 21, 2009, the Company entered into agreements with the Noteholders to repurchase all of the New Notes described above, in each case on the relevant closing dates set forth above. The aggregate cash purchase price for the repurchased New Notes will be approximately $31.6 million.