Lydall Chooses PayMode to Make Business-to-Business Elecronic Payments

Leading Manufacturer of Specialty Engineered Products to Improve Supplier
Relationships and Lower Costs with Electronic Payment Capability

PORTLAND, MAINE and MANCHESTER, CONNECTICUTT— January 22, 2002 — Lydall, Inc. (NYSE: LDL), a producer of specialty-engineered products and materials for demanding thermal/acoustical and filtration/separation applications, has selected PayMode®, the business-to-business payment solution, to make secure, electronic payments to its suppliers. With PayMode, Lydall seeks to strengthen its critical supplier relationships, leverage its existing investment in its enterprise resource planning system, and maximize the efficiency of its accounts payable processes.

In order to expedite the process whereby Lydall’s suppliers are able to immediately receive payments using PayMode the Accelerated Enrollment Program was initiated. The integration of PayMode with Lydall’s Oracle accounts payable system in just two business days occurred seamlessly without altering Oracle standards, changing payment processing functionalities or disrupting operations. With PayMode, Lydall can now initiate, digitally sign and transmit payments and associated remittance information to its suppliers electronically, completely within its current accounts payable environment.

Contact: Ann McCormick , 207-771-3769,   ann_f_mccormick@fleet.com