Q4 2012 Earnings Conference CallQuarter ended

December 31, 2012

AUTOMOTIVE

FILTRATION & ENGINEERED MATERIALS

LIFE SCIENCES

Thermal/Acoustical Metals Thermal/Acoustical Fibers

Performance Materials

Vital Fluids

SPECIALTY ENGINEERED PRODUCTS & MATERIALS

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Forward-looking Statements

This presentation contains “forward-looking statements” within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. Any statements contained in this presentation that are not statements of historical fact may be deemed to be forward-looking statements. All such forward-looking statements are intended to provide management’s current expectations for the future operating and financial performance of the Company based on current expectations and assumptions relating to the Company’s business, the economy and other future conditions. Forward-looking statements generally can be identified through the use of the words “believes,” “anticipates,” “may,” “plans,” “projects,” “expects,” “estimates,” “forecasts,” “predicts,” “targets,” and other similar expressions in connection with the discussion of future operating or financial performance. Because forward-looking statements relate to the future, they are subject to inherent risks, uncertainties and changes in circumstances that are difficult to predict. Such risks and uncertainties include, among others, worldwide economic cycles that affect the markets which the businesses serve could affect demand for the Company’s products and impact the Company’s profitability, disruptions in the global credit and financial markets, including diminished liquidity and credit availability, swings in consumer confidence and spending, unstable economic growth, fluctuations in unemployment rates, and increases in fuel prices, which could cause economic instability and could have a negative impact on the Company’s results of operations and financial condition. Accordingly, the Company’s actual results may differ materially from those contemplated by these forward-looking statements. Therefore, investors are cautioned against relying on any of these forward-looking statements. They are neither statements of historical fact nor guarantees or assurances of future performance. Additional information regarding the factors that may cause actual results to differ materially from these forward-looking statements is available in our filings with the Securities and Exchange Commission, including the risks and uncertainties identified in Part I, Item 1A - Risk Factors of Lydall’s Annual Report on Form 10-K for the year ended December 31, 2012.

These forward-looking statements speak only as of the date of this presentation, and Lydall does not assume any obligation to update or revise any forward-looking statement made in this presentation or that may from time to time be made by or on behalf of the Company.

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S Net sales of $90.5 million compared to $89.3 million in Q4 2011, including unfavorable foreign currency translation of $1.3 million, or 1.4%

S Operating income was $2.0 million, or 2.2% of net sales, compared to operating income of $4.4 million, or 4.9% of net sales, in Q4 2011

� Q4 2012 operating income included an asset impairment charge of $1.8 million

� Q4 2011 operating income included income of $0.8 million from a completed pricing negotiation and $0.4 million of income from a license agreement

S Net income was $2.4 million, or $0.14 per share, compared to $2.7 million, or $0.16 per share in Q4 2011

� Income tax benefit of $0.5 million included a reversal of valuation allowance on a foreign tax credit carryover of $1.3 million, or $0.08 per share

S Cash provided by operations of $15.2 million in Q4 2012 and $34.4 million for the year compared to $12.6 million in Q4 2011 and $14.7 million for the full year 2011

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Q4 2012 Financial Highlights

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Q4 2012 vs. Q4 2011 Summary Statements of Operations

S Net sales increased 1.3%, excluding unfavorable foreign currency translation of $1.3 million, net sales increased 2.7%

S Gross margin essentially flat

� Improvement in the Thermal/Acoustical Fibers segment was offset by lower contribution from the Performance Materials segment

S Increase in selling, product development and administrative expenses primarily attributed to asset impairment charge of $1.8 million

S Income tax benefit of $0.5 million included reversal of valuation allowance on foreign tax credit carryover of $1.3 million, or $0.08 per share

Comments

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FY 2012 vs. FY 2011 Summary Statements of Operations

S Net sales decreased by 1.2%, excluding unfavorable foreign currency translation of $10.6 million, net sales increased by 1.6%

S Gross margin improvement of 290 basis points primarily attributable to improvements in the Thermal/Acoustical Fibers segment

S Increase in selling, product development and administrative expenses primarily attributed to asset impairment charge of $1.8 million and higher professional services and severance expenses

S Effective tax rate for 2012 of 19.9%, primarily a result of the reversal of valuation allowances on a foreign tax credit carryover of $3.9 million, or $0.23 per share

Comments

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Summary Balance Sheets

($ in 000) Dec. 31, 2012 Dec. 31, 2011 Var $

Cash 63,623 30,905 32,718

Short-term investments - 12,015 (12,015)

Accounts receivable, net 47,486 47,258 228

Inventories, net 31,292 33,846 (2,554)

Other current assets 9,400 6,796 2,604

Total current assets 151,801 130,820 20,981

Property, plant and equipment, net 76,254 78,939 (2,685)

Goodwill and other intangible assets 22,107 22,596 (489)

Other assets, net 1,754 2,830 (1,076)

Total assets 251,916 235,185 16,731

Accounts payable 29,441 28,163 1,278

Accrued payroll and other compensation 10,273 9,031 1,242

Current accrued liabilities 6,636 7,605 (969)

Total current liabilities 46,350 44,799 1,551

Long-term debt 1,646 2,261 (615)

Benefit plan and other long-term liabilities 29,424 27,273 2,151

Total liabilities 77,420 74,333 3,087

Total stockholders' equity 174,496 160,852 13,644

Total liabilities and stockholders' equity 251,916 235,185 16,731

Inventory & Receivable Days

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Summary Statements of Cash Flows

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Performance Materials

S Sales decline in Q4 2012 and full year 2012 was primarily due to a reduction in Industrial Thermal Insulation product sales and reduced demand for products in Asia

� Sales of electrical papers discontinued in second half due to prior sale of product line

S Operating income decreased in Q4 2012 and full year 2012 due to reduced revenues, a change in sales mix and higher fixed manufacturing cost per unit due to reduced production levels

Cylindrical and Conical Air Filter Pleated filter media

Q4 2012 Q4 2011 Var $ Var % FY 2012 FY 2011 Var $ Var %

($ in 000)

Net sales

Industrial Filtration 15,059 15,450 (391) -2.5% 68,379 72,888 (4,509) -6.2%

Industrial Thermal Insulation 7,952 9,349 (1,397) -14.9% 38,449 47,299 (8,850) -18.7%

Life Sciences Filtration 2,603 2,900 (297) -10.2% 11,207 13,872 (2,665) -19.2%

Performance Materials Segment 25,614 27,699 (2,085) -7.5% 118,035 134,059 (16,024) -12.0%

Operating (loss) income (27) 2,961 (2,988) 10,400 18,194 (7,794) % of net sales -0.1% 10.7% 8.8% 13.6%

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Thermal/Acoustical Metals

S Decrease in part sales in Q4 2012 and full year 2012 was primarily attributable to reduced demand in Europe and impact of unfavorable foreign currency translation. Weaker demand in Europe was offset by strong demand in North America where the business outpaced the market with 18.9% part sales growth for the full year.

S Decrease in operating margin was primarily attributable to unfavorable mix in sales between parts and tooling, as parts sales typically result in higher gross margin

S Q4 2011 included $0.8 million of operating income associated with a completed pricing negotiation with a customer that was related to shipments in the first nine months of 2011

Q4 2012 Q4 2011 Var $ Var % FY 2012 FY 2011 Var $ Var %

($ in 000)

Net sales

Metal parts 31,383 35,323 (3,940) -11.2% 136,276 142,646 (6,370) -4.5%

Tooling 6,144 2,884 3,260 113.0% 17,645 13,290 4,355 32.8%

Thermal/Acoustical Metals Segment 37,527 38,207 (680) -1.8% 153,921 155,936 (2,015) -1.3%

Operating income 2,979 4,671 (1,692) 14,708 15,915 (1,207) % of net sales 7.9% 12.2% 9.6% 10.2%

flux™ heat shield Dual Wall Heat Shield with fiber from Performance Materials

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Thermal/Acoustical Fibers

S Significant increase in sales in Q4 2012 and full year 2012 was driven by higher consumer demand in North America for existing platforms and from sales of parts on new platform awards

S Exceptional increase in operating income in Q4 2012 and full year 2012 was driven by higher net sales and improved gross margin realized from manufacturing efficiency improvements� Significant reductions in scrap, material usage and labor costs were achieved

Q4 2012 Q4 2011 Var $ Var % FY 2012 FY 2011 Var $ Var %

($ in 000)

Net sales

Fiber parts 23,698 20,343 3,355 16.5% 93,519 79,631 13,888 17.4%

Tooling 26 63 (37) -58.7% 917 2,116 (1,199) -56.7%

Thermal/Acoustical Fibers Segment 23,724 20,406 3,318 16.3% 94,436 81,747 12,689 15.5%

Operating income (loss) 3,795 673 3,122 12,851 (3,055) 15,906 % of net sales 16.0% 3.3% 13.6% -3.7%

Aerodynamic Belly PanFlexShield®Wheel well

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Other Products and Services

S Sales increase in Q4 2012 and full year 2012 related to higher demand in all the markets served. Sales of bioprocessing products increased by 15% for the year as we remain focused in growing share in this market.

S The business had four consecutive quarters of profitability in 2012 compared to four quarters of loss in 2011

S Charter Medical is now the exclusive distributor for CELLution Biotech products in North America and Europe as well as exclusive provider of single-use bags

Bio-Pak® Bag

Q4 2012 Q4 2011 Var $ Var % FY 2012 FY 2011 Var $ Var %

($ in 000)

Net sales

Life Sciences Vital Fluids 4,547 3,711 836 22.5% 16,853 14,670 2,183 14.9%

Other Products and Services 4,547 3,711 836 22.5% 16,853 14,670 2,183 14.9%

Operating income (loss)

Life Sciences Vital Fluids 316 (287) 603 1,190 (1,040) 2,230

Other Products and Services 316 (287) 603 1,190 (1,040) 2,230 % of net sales 6.9% -7.7% 7.1% -7.1%

Cell-Freeze® Bags

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Conclusions

S Mixed results for Q4 2012

� Thermal/Acoustical Fibers and Thermal/Acoustical Metals segments continued to benefit from strong consumer demand for vehicles in the U.S. and sustainable improvements in operating efficiency while the Thermal/Acoustical Metals segment was negatively impacted by lower demand in Europe and sales mix of products

� Performance Materials segment was primarily negatively impacted by lower demand for Industrial Thermal Insulation products

S Positive results for the full year – All businesses generated positive operating income for 2012 in a volatile global economic environment

S Cautiously optimistic for 2013 despite the continued uncertainty in the macro-economic environment

S We remain focused on increasing margins in all businesses through our Lydall Lean Six Sigma continuous improvement program

S We remain committed to funding organic growth programs, capital investments and pursuing strategic growth opportunities