EXHIBIT (10.3) SECURITIES PURCHASE AGREEMENT

EXECUTION COPY

EXHIBIT (10.3)

SECURITIES PURCHASE AGREEMENT

     This SECURITIES PURCHASE AGREEMENT, dated as of April 3, 2009 (this “Agreement”), is by and between Albany International Corp., a corporation organized under the laws of Delaware (the “Company”), and J.P. Morgan Securities Inc., a Delaware corporation (the “Noteholder”).

     WHEREAS, the Noteholder shall have previously acquired $93,984,000 in aggregate principal amount of the Company’s 2.25% Convertible Senior Notes Due 2026 (the “Convertible Notes”) from Tradewinds Global Investors, LLC, a Delaware limited liability company (the “Investor”);

     WHEREAS, on or prior to the date hereof, the Company requested that the Noteholder exchange the entire principal amount of the Convertible Notes acquired by the Noteholder for (i) an equivalent amount of the Company’s 2.25% Senior Notes due 2026 (the “Securities”) plus (ii) cash in the amount of $7.50 per $1,000 principal amount of Convertible Notes available from cash on hand at the Company (the “Exchange”); and

     WHEREAS, the Noteholder now desires to sell, and the Company desires to purchase, upon the terms and subject to the conditions set forth in this Agreement, the entire principal amount of the Securities held by the Noteholder for the purchase price per Security set forth below, which purchase price will be paid from cash on hand and/or a borrowing under the Company’s Revolving Credit Facility (as defined below).

     NOW, THEREFORE, in consideration of the foregoing and the covenants, agreements and warranties contained herein, the sufficiency of which as consideration is hereby acknowledged, the parties agree as follows:

     “Encumbrance” means any pledge, hypothecation, assignment, lien, restriction, charge, claim, security interest, option, preference, priority or other preferential arrangement of any kind or nature whatsoever.

     “Exchange Agreement” means the Exchange Agreement dated as of the date hereof by and between the Company and the Noteholder.

     “Revolving Credit Facility” means the credit facility established by the $460,000,000 Five-Year Revolving Credit Facility Agreement, dated as of April 14, 2006, among the Company, the lenders party thereto, JPMorgan Chase Bank, N.A., as Administrative Agent, and J.P. Morgan Europe Limited, as London Agent, as amended from time to time.

Noteholder, $93,984,000 in aggregate principal amount of the Securities held by the Noteholder.

(b) The purchase price for the Securities shall be $561.875 per $1,000 principal amount of the Securities (the “Purchase Price”). For the avoidance of doubt, the Purchase Price shall not include any accrued but unpaid interest through the Closing Date (as defined below). The Purchase Price shall be paid by the Company by wire transfer of immediately available funds to the following bank account:

Bank: JPMorgan Chase NYC
FAO: JPMSI
Account Number: 066906822
Further Credit: Phase 3# 63594691
ABA Number:021 000 021
Attention: Ronald Reda

against delivery of the Securities by the Noteholder to the Company for cancellation.

(c) The consummation of the sale and purchase contemplated by this Agreement shall occur as promptly as practicable following the time at which all of the conditions contained in this Agreement have been satisfied or waived, but in any case, no later than 5:00PM (New York City time) on the date on which all of such conditions have been satisfied or waived, or on such later date as shall be mutually agreed by the Parties (the “Closing Date”).

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or to such other person or address as a party hereto may designate for itself by notice given as herein provided.

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     IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed and delivered as of the date first above written.

Signature Page
Securities Purchase Agreement