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Lydall Acquires Gerhardi & Cie. GmbH & Co. KG

4 January 1999

Lydall Acquires Gerhardi & Cie. GmbH & Co. KG, a German Automotive Parts Manufacturer

    MANCHESTER, Conn., Jan. 4 -- Christopher R. Skomorowski,
President and Chief Executive Officer of Lydall, Inc. , today
announced that Lydall, through its wholly owned German subsidiary, has
purchased for an undisclosed cash amount all of the outstanding stock of
Gerhardi & Cie. GmbH & Co. KG, a privately held German manufacturer of
automotive components.
    The acquisition of Gerhardi, which directly complements Lydall's domestic
automotive thermal business, is key to the Company's strategy of becoming a
global leader in thermal and acoustical automotive markets.  Founded in 1796,
Gerhardi produces and distributes a variety of quality metal heat shields and
acoustical components as well as interior and exterior trim parts for
automotive applications. Gerhardi has projected sales of approximately
$70 million (approximately DM115 million) for 1998, and operates three plants
in Germany.
    Mr. Skomorowski commented, "We are very excited about the addition of
Gerhardi.  It is a dynamic and growing company with exceptional people,
quality products, and strong European market positions.  Gerhardi adds
sophisticated production capacity and significantly broadens our customer and
technology bases."
    Mr. Klaus Steinweg, formerly one of four Managing Directors and a major
shareholder of Gerhardi, added,  "Gerhardi shares a common vision and culture
with Lydall. We believe in long-term commitment to our customers and to
ongoing quality improvement. We are both suppliers with broad engineering and
design capabilities, working directly with customers and end-users to ensure
the highest degree of satisfaction and product competitiveness. In my opinion,
this is a big step toward ensuring the future development of Gerhardi in the
global automotive market."
    Gerhardi will operate under the management of Lydall Westex, which is
headed by Raymond S. Grupinski.  Mr. Klaus Steinweg and Dr. Ing. Leopold
Schmidt, also a former Managing Director, will remain as Co-Managing Directors
reporting to Mr. Grupinski.
    Lydall's current line of automotive thermal barriers is used in most
U.S.-manufactured sport-utility vehicles and light trucks as well as in vans,
mid-size trucks and cars.  The addition of Gerhardi positions Lydall as a
recognized direct supplier to a large number of European carmakers as well,
including BMW, Audi, Volkswagen, Saab, and DaimlerChrysler.
    Commenting on the acquisition, Mr. Grupinski noted, "The Gerhardi
acquisition strengthens our existing positions with Ford Motor Co. ,
DaimlerChrysler AG , and General Motors Co. in the U.S.
as well as expands our opportunities to supply the U.S. facilities of European
manufacturers."
    Lydall, Inc. is a $230-million New York Stock Exchange company whose
subsidiaries manufacture technologically advanced engineered products for
demanding specialty applications primarily servicing filtration and heat-
management applications.  Its subsidiary, Lydall Westex, is a market leader in
specialty heat-management and acoustic systems to the automotive market.
    Stockholders are referred to Lydall's Annual Report, "Analysis of Results
--  Forward-Looking Information," which outlines certain risks regarding the
Company's forward-looking statements.  Such risks include:  a major downturn
of the U.S. automotive market, which currently accounts for approximately 24
percent of Lydall's total sales, excluding foreign and aftermarket sales; a
meaningful decrease in the number of clean rooms being built worldwide; and
significant, unforeseen changes in raw material pricing, specifically virgin
fiber used in producing the Company's materials handling slipsheets.  Also,
the timing and degree of success of new-product programs impact Lydall's
projected results.  For further details on these risks and other pertinent
information on Lydall, copies of the company's Forms 10-K, 10-Q, and 8-K are
available on the World Wide Web at Corporate Financials Online
(http://www.cfonews.com/ldl) and Lydall's own website (http://www.lydall.com).
Copies of these documents can also be obtained from the Company.  Write or
call:  Carole F. Butenas, Vice President - Investor Relations, at One Colonial
Road, Manchester, CT 06040; Tel. 860-646-1233, E-Mail:  investor@lydall.com.