Exhibit 10(o)(viii)

                                    AGREEMENT

      This Executive  Separation Agreement and General Release (the "Agreement")
is dated as of the 26th day of June,  2007,  and is entered  into by and between
Albany  International Corp., a Delaware corporation with offices and a principal
place of business at 1373 Broadway,  Albany, New York, ("Albany") and William M.
McCarthy, a resident of Rensselaer County, New York ("Executive").

                                   WITNESSETH

      WHEREAS, Executive has been employed by Albany as Executive Vice President
- Global  Planning,  Engineering  and Procurement and may serve as a director or
officer of various  Albany  subsidiaries  and  affiliates,  or as a fiduciary to
various employee benefit plans; and

      WHEREAS,  Albany and Executive have agreed that the Executive's employment
with Albany shall terminate and Executive shall resign all offices and positions
with Albany or any of its  subsidiaries or affiliates  according to the terms of
this Agreement; and

      WHEREAS,  Albany and Executive desire to settle all claims and issues that
have,  or could have been  raised in  relation to  Executive's  employment  with
Albany  or  in  relation  to  any   positions  he  held  with  any  of  Albany's
subsidiaries,  affiliates,  employee  benefits  plans or  trusts,  or in any way
related to the termination of such employment and/or service.

      NOW  THEREFORE,  in  consideration  of the promises and mutual  agreements
herein, it is hereby agreed as follows:

      1. Executive acknowledges that he was given this Agreement on June 4, 2007
and was afforded 21 days to consider same.

      2.  Executive  was,  and  hereby is,  advised  to consult a lawyer  before
signing this  Agreement  and did in fact have the  opportunity  to obtain advice
from counsel.

      3.  Executive  may  accept  this  Agreement  only by  signing,  dating and
delivering the Agreement to Albany (in the manner set forth in Section 26) on or
before  Albany's  normal  close of  business  on July 13,  2007.  Time is of the
essence with regard to this Section 3.

      4.  Executive may revoke this  Agreement at any time within seven (7) days
after signing and delivering it to Albany by notifying Albany in writing (in the
manner set forth in Section 26) of  Executive's  decision to revoke.  Time is of
the essence with regard to this Section 4.

      5. The effective  date of this Agreement  ("Effective  Date") shall be the
8th day after  Executive  signs and delivers the  Agreement in  accordance  with
Section 3 above,  unless  Executive  revokes the  Agreement in  accordance  with
Section 4 above. If Executive  revokes this Agreement in accordance with Section
4 above,  this  Agreement  will not become  operative and will not be binding on
Executive or Albany.

      6. Executive's  employment with Albany shall terminate effective September
30, 2007, (the "Separation  Date") unless terminated  earlier in accordance with
paragraph 7 or 8 hereof. Effective as of the Separation Date, or the date of any
earlier termination pursuant to paragraph 7 or 8, Executive resigns all offices,
directorships  and any  other  positions  held with  Albany  or any of  Albany's
subsidiaries  or affiliates,  or any of their employee  benefit plans or trusts.
Albany agrees to provide Executive with a positive written reference.

      7. Nothing  herein is intended to alter the at-will  nature of Executive's
employment  relationship  with  Albany.  Albany  reserves the right to terminate
Executive  prior to  September  30, 2007 with or without  cause.  Cause shall be
deemed to exist if Albany determines that Executive has:


<PAGE>

            (i) undertaken a position in competition with Albany;

            (ii) caused  substantial harm to Albany with intent to do so or as a
            result of gross negligence in the performance of his duties;

            (iii) wrongfully and  substantially  enriched himself at the expense
            of Albany; or

            (iv) been convicted of felony;

      8. Executive reserves the right to terminate his employment with Albany at
any time prior to September 30, 2007.

      9. From the date hereof until the date Executive's  employment with Albany
terminates  (either  as of the  Separation  Date or  earlier),  Executive  shall
continue  to  perform  the  duties of his  current  position  and  assist in the
transition of his duties as directed by the Chief Executive Officer or the Board
of  Directors.  Executive  further  covenants  and  agrees  to  respond,  for  a
reasonable  time  thereafter not to exceed twelve months,  to any inquiries from
Albany regarding incomplete or unresolved  transitional  matters. If Executive's
knowledge  and  expertise  are still needed after the twelve month  period,  the
parties agree to negotiate a consulting agreement with terms mutually acceptable
to both parties.  During the remainder of  Executive's  employment  with Albany,
Albany shall continue to pay Executive at his current rate of compensation  less
(i) applicable  withholdings and deductions  required by law or otherwise agreed
to by the parties,  (ii)  deductions of premiums due for any health care or life
insurance  coverage provided by or through Albany,  (iii) 401(k) savings plan or
other  Albany  benefit  plan   contributions   and  (iv)  any  other  applicable
withholdings.  During the  remainder  of  Executive's  employment  with  Albany,
Executive will be eligible to receive the standard package of employee  benefits
available to similarly  situated Albany employees.  Albany reserves the right to
modify,  supplement,  amend or eliminate the standard  benefits  provided to its
employees,  including,  without limitation,  the eligibility requirements and/or
premiums, deductibles, co-payments or other charges relating thereto.

      10. Executive agrees that on or after the last date of his employment with
Albany he shall  execute an additional  release in the form annexed  hereto (the
"Supplemental  Release")  covering  the  period  from  the  date of  Executive's
execution  of this  Agreement  through  his last date of  employment.  Executive
covenants and agrees that the  obligations  to be performed by Albany under this
Agreement after the last date of Executive's employment shall be contingent upon
the execution of the Supplemental  Release.  Failure to execute the Supplemental
Release,  however,  will not affect the  validity  of the release  contained  in
section 17 of this Agreement.

      11.  In  the  case  that  Executive's  employment  is  terminated  at  the
Separation  Date and not prior  thereto as  contemplated  by  paragraph  7 or 8,
Albany  agrees to provide  Executive  with the following  severance  benefits to
which he would not otherwise be entitled. Executive acknowledges and agrees that
these  severance  benefits  constitute  adequate  legal  consideration  for  the
promises and representations  made by him in this Agreement,  and are in lieu of
any benefits  payable under any severance plan now in existence or adopted prior
to the Separation Date.

      (a)   Albany will pay Executive the gross sum of $37,491.66  per month for
            a period of twelve (12) months from the Separation Date, for a total
            of $449,900 in the first twelve (12) months following the Separation
            Date,  then the gross sum of $38,041.66  per month for an additional
            twelve (12) month period  (combined,  the "Severance  Period") for a
            total of $906,400 in the first 24 months  following  the  Separation
            Date.  The aforesaid  monthly  payments (the  "Severance  Payments")
            shall  be paid net of all  applicable  withholdings  and  deductions
            required by law or otherwise agreed to by the parties. The Severance
            Payments will made by check, or direct  deposit,  on the 15th day of
            the month and will begin  after the  Separation  Date and after this
            Agreement becomes  irrevocable and continue on or about the 15th day
            of every  month  thereafter  until paid in full (and may contain pro
            rata payment for any partial  month).  In the event  Executive  dies
            before the last Severance Payment is made hereunder,  the balance of
            such  payments  shall be paid to his  spouse or, if he shall have no
            such spouse at that time, to his estate.

      (b)   Should Executive elect,  pursuant to the protections afforded by the
            Consolidated  Omnibus Budget  Reconciliation  Act, to continue group
            health care  coverage as is from time to time provided by or through
            Albany to all similarly  situated eligible  employees,  Albany shall
            pay the then applicable required contribution for the first eighteen
            (18) months of the Severance Period,  or until Executive  terminates
            such  coverage,  whichever  shall occur first.  Notwithstanding  the
            foregoing,  the parties acknowledge that it may be more advantageous
            for Executive to elect retiree health care benefits under the Albany
            International  Corp.  Health Care Plan as of the Separation Date. In
            that event,  Executive  shall be responsible  for the payment of the
            retiree contribution in accordance with the terms of that Plan.


<PAGE>

         (c)      Albany reserves the right to modify, supplement, amend or
                  eliminate the coverages described in subparagraph (b) above,
                  including, without limitation, the eligibility requirements
                  and/or premiums, deductibles, co-payments or other charges
                  relating thereto.

         (d)      Albany shall pay Executive for any accrued, unused vacation
                  pursuant to existing corporate policy at Executive's last rate
                  of salary, less applicable withholdings and deductions
                  required by law or otherwise agreed to by the parties. Said
                  payment shall be made at the first normal pay date following
                  the Separation Date and irrevocability of this Agreement.

         (e)      Any stock options that have been previously awarded to
                  Executive shall be treated in accordance with the terms of
                  Albany's stock option plan under which such options were
                  awarded as if Executive's separation was an involuntary
                  termination. Any restricted stock units that have been
                  previously awarded to Executive shall similarly be treated in
                  accordance with the terms of the plans under which such
                  restricted stock units were granted as if the separation was
                  an involuntary separation. All such stock options and
                  restricted stock units shall continue vesting to and including
                  the Separation Date.

         (f)      Albany shall pay Executive an additional $96,708.00, less
                  applicable withholdings and deductions required by law, in one
                  lump sum on the first date following the sixth month
                  anniversary of Executive's Separation Date.

      (g)   Albany  shall  pay the  cost  of the  financial  consulting  benefit
            provided to Executive  though the Ayco Company,  L.P. until June 30,
            2008 or such time as Albany  discontinues  providing such benefit to
            its executives,  whichever  occurs sooner provided such costs do not
            exceed $15,500. Thereafter, the cost of any such counseling shall be
            borne by Executive.

      (h)   To assist  Executive in obtaining new employment,  Albany shall make
            available and bear the cost of outplacement  services to be provided
            by Lee Hecht  Harrison.  Said services will be provided for a period
            of up to  three  months  following  the  Separation  Date,  or until
            Executive finds suitable employment, whichever occurs first.

      (i)   Effective  as of the  Separation  Date,  or  such  earlier  date  as
            Executive's   employment  may  be  terminated  in  accordance   with
            paragraph 7 or 8, hereof, Executive will no longer be an employee of
            Albany,  and will  cease  to  accrue  benefits  under  any  pension,
            deferred  compensation,   401(k),  profit-sharing  or  other  Albany
            employee welfare benefit plan.

      (j)   Executive  acknowledges and agrees that,  except for this Agreement,
            Executive  would  have  no  right  to  receive  all of the  benefits
            described above.

      (k)   Executive may keep his laptop  computer  after all  proprietary  and
            confidential  information is removed from its hard drives.  It shall
            be  Executive's  obligation  to  arrange  for  the  removal  of  all
            proprietary and  confidential  information  through  Albany's Global
            Information Systems' Support Center.

      12. In the event Executive's employment with Albany is terminated prior to
the Separation  Date for cause,  Executive  shall not be entitled to, and Albany
shall not be obligated to provide, the severance benefits described in paragraph
11 and in such case the treatment of any stock options or restricted stock units
will be in strict conformity with the terms of the plans under which such option
or  restricted  stock  units  were  granted.  In  the  event  Albany  terminates
Executive's  employment  prior  to the  Separation  Date  without  cause,  or if
Executive  terminates his employment with Albany prior to the Separation Date in
accordance  with  paragraph  8,  Executive  shall be  entitled  to  receive  the
severance benefits  described in paragraph 11, including  treatment of his stock
options and  restricted  stock  units as if the  separation  was an  involuntary
termination,  provided  however that the Severance  Period shall begin as of the
date of such termination and cease  twenty-four (24) months  thereafter.  In the
event Albany  terminates  Executive's  employment  prior to the Separation  Date
without  cause,  Executive's  employment  with  Albany,  for the purposes of any
vesting  requirements for Executive's  stock options and restricted stock units,
shall nonetheless still be deemed to have terminated on the Separation Date.

      13.  Executive  shall remain eligible for a bonus relating to the services
he performs in 2007.  Any bonus awarded shall be determined at the same time and
in the same manner in which bonuses are awarded to Albany's management employees
under the then current and prevailing bonus program,  except that any such bonus
paid to Executive  shall be pro rated to reflect that actual time  Executive was
employed by Albany during 2007 and payment of all or a portion such bonus may be
delayed to ensure that it is paid in  accordance  with Section 409A of the Code.
In the event Albany  terminates  Executive's  employment prior to the Separation
Date without cause, for the purposes of proration,  Executive's employment shall
be deemed to have terminated on the Separation Date. Any payment delayed


<PAGE>

in accordance with Section 409A of the Code shall be paid in a
lump sum on the first date following the sixth month anniversary of Executive's
Separation Date.

      14. In the event Executive  elects to retire and begin receiving  benefits
under the Albany  International  Corp.  Supplemental  Executive  Retirement Plan
("SERP  Benefits")  at any time  within the first six months  after  Executive's
Separation  Date,  Albany shall,  in  accordance  with Section 409A of the Code,
delay  payment,  for up to six months,  of the SERP  Benefits that accrued after
January 1, 2005.  Albany shall pay Executive any SERP Benefit withheld  pursuant
Section 409A of the Code in a lump sum, along with the next regularly  scheduled
SERP  benefit  payment next  following  the  expiration  of the six month period
described above.

      15. It is the intent of the parties that this Agreement  provides payments
and benefits that satisfy the distribution requirements of Section 409A of Code.
In the event any payments or benefits are deemed by the IRS to be non-compliant,
this  Agreement,  at  Executive's  option,  shall  be  modified,  to the  extent
practical,  so as to make it compliant by altering the payments or the timing of
their receipt. The methodology to effect or address any necessary  modifications
shall be subject to reasonable and mutual agreement between the parties.

      16. As used in this Agreement,  the term "Albany" means,  individually and
collectively,  Albany,  each subsidiary,  parent company or affiliate of Albany,
and their respective  employee  welfare benefit plans,  employee pension benefit
plans,  successors and assigns  (including all present and former  shareholders,
directors, officers, fiduciaries, agents, representatives and employees of those
companies and other entities).

      17. Subject to Executive's right to revoke stated in paragraph 4 above, by
signing this Agreement, Executive immediately gives up and releases Albany from,
and with  respect  to, any and all rights and  claims  that  Executive  may have
against  Albany,  whether or not Executive  presently is aware of such rights or
claims. In addition, and without limiting the foregoing:

      (a)   Executive on behalf of himself, his agents, spouse, representatives,
            assignees,  attorneys,  heirs,  executors and administrators,  fully
            releases Albany and Albany's past and present  successors,  assigns,
            parents, divisions,  subsidiaries,  affiliates, officers, directors,
            shareholders, employees, agents and representatives from any and all
            liability,  claims,  demands,  actions,  causes  of  action,  suits,
            grievances,  debts,  sums  of  moneys,  controversies,   agreements,
            promises,  damages, back and front pay, costs,  expenses,  attorneys
            fees, and remedies of any type, which Executive now has or hereafter
            may have, by reason of any matter,  cause,  act or omission  arising
            out  of  or  in  connection  with  Executive's   employment  or  the
            termination  of  his  employment  with  Albany,  including,  without
            limiting the  generality of the  foregoing,  any claims,  demands or
            actions  arising under the Age  Discrimination  in Employment Act of
            1967 , the Older  Worker's  Benefit  Protection  Act,  the  Employee
            Retirement  Income  Security  Act of 1974,  Title  VII of the  Civil
            Rights Act of 1964,  the Civil Rights act of 1991,  the Civil Rights
            Act of 1866,  the  Rehabilitation  Act of 1973,  the Americans  with
            Disabilities  Act of 1990,  and any  other  federal,  state or local
            statute,  ordinance or common law of any state regarding employment,
            discrimination  in  employment,  or the  termination  of employment.
            Notwithstanding  the  foregoing,  Executive is not waiving any right
            that cannot,  as a matter of law, be voluntarily  waived,  including
            the right to file or participate in the  adjudication  of a claim of
            discrimination  filed  with  any  state  or  federal  administrative
            agency,  though  Executive  expressly  waives  any right to  recover
            monetary  damages  as a result of any claim  filed with any state or
            federal administrative agency.

      (b)   If Executive breaches any obligation under this Agreement, Executive
            agrees  that  Albany  shall not be  obligated  to  continue  to make
            payments under paragraph 11, and to reimburse Albany for any and all
            payments previously made pursuant to paragraph 11.

      (c)   Notwithstanding  the foregoing,  nothing herein shall relieve Albany
            of any  indemnification  obligations  it might owe to  Executive  by
            virtue of  Executive's  position  as on officer of Albany  under its
            certificate  of  incorporation,  corporate  Bylaws or other  written
            agreement.

      18.  Executive agrees never to apply for employment with or otherwise seek
to be hired, re-hired, employed,  re-employed or reinstated by Albany and waives
any reinstatement or future employment with Albany.

      19.  Executive  acknowledges  that as a consequence of his employment with
Albany,  proprietary and  confidential  information  relating to the business of
Albany may be or have been  disclosed  to or  developed or acquired by Executive
which is not generally  known to the trade or the general public and which is of
considerable value to Albany.  Such information  includes,  without  limitation,
information  about  trade  secrets,  inventions,   patents,  licenses,  research
projects,  costs, profits,  markets, sales, customer lists, proprietary computer
programs, proprietary records, and

<PAGE>

proprietary  software;  plans for future development,  and any other information
not available to the trade or the general public, including information obtained
from or  developed  in  conjunction  with a third  party  that is  subject  to a
confidentiality or similar agreement between Albany and such third party. During
the remainder, if any, of, and after, his employment by Albany,  Executive shall
not use such  information,  as denoted  above,  for his own benefit,  or for the
benefit of any other employer or for any other purpose whatsoever other than the
performance  of his  remaining  work for Albany,  if any,  and  Executive  shall
maintain all such  information  in confidence and shall not disclose any thereof
to any  person  other  than  employees  of Albany  authorized  to  receive  such
information. This obligation is in addition to any similar obligations Executive
may have pursuant to any other agreement, statute or common-law. Nothing herein,
however,  shall  preclude  Executive  from  describing his duties with Albany in
future job interviews.

      20. Executive acknowledges and recognizes the highly competitive nature of
Albany's business and accordingly agrees as follows:

      (a)   For a period  of one year  following  Executive's  Separation  Date,
            whether  on  the  Executive's  own  behalf  or  on  behalf  of or in
            conjunction  with any  person,  firm,  partnership,  joint  venture,
            association,  corporation or other business, organization, entity or
            enterprise whatsoever ("Person"), directly or indirectly:

            (i) engage in any business  which is in  competition  with Albany or
            any of its subsidiaries or affiliates in the same geographical areas
            as Albany or any of its  subsidiaries  or affiliates  are engaged in
            their business (a "Competitive Business");

            (ii) enter into the employ of, or render any services to, any Person
            in respect of any Competitive Business;

            (iii) acquire a financial  interest in, or otherwise become actively
            involved with, any Competitive Business,  directly or indirectly, as
            an individual,  partner, shareholder,  officer, director, principal,
            agent, trustee or consultant;  provided,  however,  that in no event
            shall ownership of less than 2% of the outstanding  capital stock of
            any  corporation,  in and of itself,  be deemed a violation  of this
            Agreement is such capital  stock is listed on a national  securities
            exchange or regularly traded in an over-the-counter market; or

            (iv)  interfere  with,  or attempt to interfere  with,  any business
            relationships  (whether formed before or after the Separation  Date)
            between  Albany or any of its  subsidiaries  or affiliates and their
            customers, clients, suppliers or investors.

      (b)   During the period of time ending  three  years after the  Separation
            Date  Executive will not,  whether on  Executive's  own behalf or on
            behalf of or in conjunction with any Person, directly or indirectly:

            (i)  solicit  or  encourage  any  employee  of  Albany or any of its
            subsidiaries  or affiliates to leave the employment of Albany or any
            of its subsidiaries or affiliates; or

            (ii) hire any such employee who was employed by Albany or any of its
            subsidiaries or affiliates as of the Separation  Dates or, if later,
            within the six-month period prior to such date of hire.

      (c)   It is expressly  understood  and agreed that although  Executive and
            Albany  consider  the  restrictions  in  this  paragraph  20  to  be
            reasonable, if a final determination is made by a court of competent
            jurisdiction  or an  arbitrator  that the time or  territory  or any
            other  restriction  contained in this Agreement is an  unenforceable
            restriction  against  Executive,  the  provisions of this  Agreement
            shall not be rendered  void but shall be deemed  amended to apply as
            to such maximum  time and  territory  and to such maximum  extent as
            such  court  or   arbitrator   may   determine  or  indicate  to  be
            enforceable.

      21. Executive  specifically  agrees and promises that he will not directly
or indirectly  disparage Albany, (as defined in paragraph 16) or any of Albany's
officers, directors, employees, attorneys or representatives, or any of Albany's
products or services in any manner, at any time, to any person or entity. Albany
specifically  agrees  and  promises  that it will  not  directly  or  indirectly
disparage  Executive  in any  manner,  at any time,  to any  person  or  entity.
"Disparage"  is defined as but not limited to any  utterance  whatsoever  either
verbal, in writing, by gesture or any behavior of any kind that might tend to or
actually harm or injure Albany, whether intended or not.

      22. This  Agreement  does not  constitute  an  admission  by Albany of any
liability to Executive,  and Executive understands and agrees that Albany denies
any such liability to Executive.

      23. This Agreement  constitutes  the entire  agreement  between Albany and
Executive  relating to the  subject  matter  thereof,  and may not be amended or
modified in any way whatsoever except in writing signed by the parties


<PAGE>

hereto.  This Agreement  shall not be in derogation of Executive's  rights under
any  Albany  stock,  pension,  retirement,  QSERP,  or  other  similar  plan  or
agreement.

      24. Albany and Executive  intend for every  provision of this Agreement to
be fully  enforceable.  But, if a court with  jurisdiction  over this  Agreement
determines that all or part of any provision of this Agreement is  unenforceable
for any reason,  Albany and Executive  intend for each  remaining  provision and
part to be fully enforceable as though the  unenforceable  provision or part had
not been included in this Agreement.

      25. Executive acknowledges that he has read this entire Agreement, that he
fully  understands its meaning and effect,  and that he has  voluntarily  signed
this Agreement.

      26. Notices or other deliveries  required or permitted to be given or made
under  this  Agreement  by  Executive  to Albany  shall,  except  to the  extent
otherwise  required by law, be deemed  given or made if  delivered by hand or by
express mail or overnight  courier service to Albany  International  Corp., 1373
Broadway,  Albany,  New York 12204,  Attention:  Charles J. Silva, Jr. Notice by
Albany to Executive shall be given by hand of express mail or overnight  courier
service as follows: To William M. McCarthy,  1319 Best Road, East Greenbush,  NY
with a copy to Russell F. Conn, Conn Kavanaugh Rosenthal Peisch & Ford, LLP, Ten
Post Office Square, Boston, MA.

      27.  The terms of this  Agreement  are  binding  upon and shall be for the
benefit of Executive and Albany, as well as their respective  heirs,  executors,
administrators, successors and assigns.

      28.  Executive and Albany each agree that if an action is commenced by any
party  alleging  breach of this  Agreement,  the  non-prevailing  party shall be
liable to the  prevailing  party for any and all  available  legal and equitable
relief, as well as reasonable attorneys' fees and costs associated with pursuing
or defending such legal action.

      29.  Executive  understands  that the release  contained  in  Paragraph 17
hereof is a general  release,  and  represents  that he has been advised to seek
counsel on the legal and practical effect of a general  release,  and recognizes
that he is  executing  and  delivering  this  release,  intending  thereby to be
legally bound by the terms and provisions thereof, of his own free will, without
promises or threats or the exertion of duress.  He also acknowledges that he has
had adequate  time to review it, have it explained to him, and  understands  its
provisions.

                            [SIGNATURE PAGES FOLLOW]


<PAGE>

      IN WITNESS  WHEREOF,  Executive and a duly  authorized  representative  of
Albany have signed this Agreement as of the dates set forth below.

                                      Albany International Corp.

Dated: July 11, 2007              By: /s/ Ralph M. Polumbo
                                      --------------------
                                      Name: Ralph M. Polumbo
                                            Sr. Vice President - Human Resources

THE  UNDERSIGNED  FURTHER  STATES  THAT  HE HAS  CAREFULLY  READ  THE  FOREGOING
SETTLEMENT  AGREEMENT  AND KNOWS THE CONTENTS  THEREOF AND SIGNS THE SAME AS HIS
OWN FREE ACT.  THIS  SETTLEMENT  AGREEMENT  INCLUDES  A RELEASE OF ALL KNOWN AND
UNKNOWN CLAIMS.

Dated: July 11, 2007                                /s/ William M. McCarthy
                                                    ----------------------------
                                                        William M. McCarthy

                              FOR COMPANY USE ONLY

      The foregoing Executive Separation  Agreement and General Release,  signed
and dated by  Executive,  was  received by me on behalf of Albany  International
Corp. this 11th day of July, 2007.

                                                    /s/ Charles J. Silva, Jr.
                                                    ----------------------------
                                                        Charles J. Silva, Jr.


<PAGE>

                              SUPPLEMENTAL RELEASE

This  supplemental  release given to Albany  International  Corp.  ("Albany") by
William M. McCarthy ("Executive") is executed in consideration for the covenants
made by Albany in a Release and Separation  Agreement signed by the Executive on
July 11, 2007.

The Executive and his heirs,  assigns, and agents release,  waive, and discharge
Albany, its directors, officers, employees, subsidiaries, affiliates, and agents
from  each and every  claim,  action  or right of any  sort,  known or  unknown,
arising on or before the date of this Supplemental Release.

      (1) The foregoing  release  includes,  but is not limited to, any claim of
discrimination  on the basis of race,  sex,  religion,  marital  status,  sexual
orientation,  national  origin,  handicap or disability,  age,  veteran  status,
special disabled veteran status,  citizenship status; any other claim based on a
statutory  prohibition;  any claim  arising  out of or  related to an express or
implied employment  contract,  any other contract affecting terms and conditions
of  employment,  or a covenant of good faith and fair dealing;  all tort claims;
and all claims for attorney's fees or expenses.

      (2) The Executive  represents that he understands  the foregoing  release,
that rights and claims under the Age  Discrimination  in Employment Act of 1967,
as amended, are among the rights and claims against Albany he is releasing,  and
that he understands  that he is not releasing any rights or claims arising after
the date of this Supplemental Release.

      (3) This Release shall not affect any rights of Executive  pursuant to the
aforesaid Release and Separation Agreement.

EXECUTIVE

____________________                      DATE: _________________
William M. McCarthy

WITNESS: _____________________