Expansion of AEC Boerne Operations Facility

Kendall County Economic Development Corporation announced a significant expansion of the Albany Engineered Composites (AEC) Boerne Operations facility, a wholly-owned subsidiary of Albany International Corp. (NYSE:AIN).

Groundbreaking of the project is expected to begin in the spring of 2008 and be completed in the next 18 to 24 months. AEC estimates that it will hire over 330 additional employees to work at the expanded facility over the next seven-year period. The Boerne plant produces advanced composite structures for the aerospace industry.

Approximately 175 people attended the event which was held at the Ye Kendall Inn in Boerne, Texas. In addition to the city and county elected officials that were in attendance, Texas Secretary of State Phil Wilson, Texas State Representative District 73 Nathan Macias, Office of the Governor Economic Development Keith Graf and Shannon Cantrell also attended. AEC officials, Senior Vice President and Chief Operations Officer Michael Nahl, Vice President Brian Coffenberry, Boerne Operations Plant Manager Tom Wright, and Director of Marketing and Sales John Tauriello were also in attendance.

Secretary of State Phil Wilson announced a $1 million Texas Enterprise Fund (TEF) award to Albany Engineered Composites (AEC) to expand its current operations and facilities in Boerne, Texas. The expansion is expected to bring $41.6 million in capital investment to Kendall County, making it the largest job creation and capital investment project in the county's history.

"Albany Engineered Composites' expansion will make a powerful impact in the Boerne community and reminds us why the Texas Enterprise Fund was created," stated Wilson. "By providing companies with an additional financial incentive to do business in the Lone Star State, Texas is standing up to the competition and showing the nation that business is a big deal in our state."

Michael Nahl, Executive Vice President and Chief Financial Officer for Albany International Corp., said, "Today's announcement symbolizes a joint commitment by the City of Boerne, Kendall County, the State of Texas, and Albany International to spur economic growth through innovation. Their unified and full support is a pivotal reason that Albany Engineered Composites chose to remain and expand our operations in Boerne, as was our experience attracting and retaining a very high caliber workforce. Clearly, our employees are both enjoying the career opportunities of our rapidly growing aerospace composites business and the wonderful quality of life in Boerne, Kendall County, and Texas."

"Albany Engineered Composites is excited to be able to expand its presence in Boerne and Kendall County," said Brian Coffenberry, Vice President and General Manager, Albany Engineered Composites. "The area is a perfect fit for our growth plans, and we look forward to what we hope will be a long and prosperous future in Texas. The Boerne team is an outstanding group of employees, and we know that the area is capable of bringing us more employees of this caliber."

Steve Mack, CEO of Texas Heritage Bank and Chairman of Kendall County Economic Development Corporation, noted, "The Kendall County Economic Development Corporation's primary target market is the retention and expansion of existing businesses in Kendall County. Today's announcement of Albany Engineered Composites Boerne's Operations not only hits our target but shows the importance of having an economic development corporation in Kendall County."