Fourth Quarter 2012 (“Q4 2012”) compared to Fourth Quarter 2011 (“Q4 2011”)

Net sales were $90.5 million, including unfavorable foreign currency translation of $1.3 million, or 1.4%, compared to $89.3 million

Operating income of $2.0 million, or 2.2%, compared to $4.4 million, or 4.9%

− 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

Net income of $2.4 million, or $0.14 per share, compared to $2.7 million, or $0.16 per share

− 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

2012 Year Highlights

Net sales were $378.9 million, including unfavorable foreign currency translation impact of $10.6 million, or 2.8%, compared to $383.6 million in 2011

Gross margin of 20.5%, an improvement of 290 basis points from 2011, primarily from operational efficiency improvements in the Thermal/Acoustical Fibers segment

Operating income of $21.4 million, or 5.6%, compared to $16.2 million, or 4.2% in 2011

− 2012 operating income included the asset impairment charge of $1.8 million and $0.8 million of income from a license agreement

− 2011 operating income included $1.6 million of income from a license agreement

• Effective tax rate for 2012 of 19.9%, primarily as a result of reversal of valuation allowance on a foreign tax credit carryover of $3.9 million, or $0.23 per share, compared to an effective tax rate of 41.3% in 2011

• Income from continuing operations in 2012 was $16.8 million, or $0.99 per share, compared to $9.1 million, or $0.54 per share in 2011

• Net income of $16.8 million, or $0.99 per share, compared to net income in 2011 of $13.8 million, or $0.82 per share

Liquidity

• Cash provided by operations of $15.2 million in Q4 2012 ($34.4 million in full year 2012) compared to cash provided by operations of $12.6 million in Q4 2011 ($14.7 million in full year 2011)

• Cash and short-term investments of $63.6 million at December 31, 2012 compared to $42.9 million at December 31, 2011

Net sales of $90.5 million in Q4 2012 were $1.1 million greater than Q4 2011. Increased sales volume from the Thermal/Acoustical Fibers (“T/A Fibers”) segment of $3.3 million and the Life Sciences Vital Fluids business (“VF business”) of $0.8 million, included in Other Products and Services, were partially offset by lower net sales from the Performance Materials (“PM”) and Thermal/Acoustical Metals (“T/A Metals”) segments of $2.1 million and $0.7 million, respectively.