Sec Form 4 Filing - ESTEY MONA G @ LYDALL INC /DE/ - 2012-12-04

FORM 4 Check this box if no longer subject to Section 16. Form 4 or Form 5 obligations may continue. See Instruction 1(b).

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 STATEMENT OF CHANGES IN BENEFICIAL OWNERSHIP Filed pursuant to Section 16(a) of the Securities Exchange Act of 1934, Section 17(a) of the Public Utility Holding Company Act of 1935 or Section 30(h) of the Investment Company Act of 1940

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1. Name and Address of Reporting Person ESTEY MONA G 2. Issuer Name and Ticker or Trading Symbol LYDALL INC /DE/ [ LDL] 5. Relationship of Reporting Person(s) to Issuer (Check all applicable) _____ Director _____ 10% Owner X __ Officer (give title below) _____ Other (specify below) VP - Human Resources (Last) (First) (Middle) C/O LYDALL, INC., ONE COLONIAL ROAD, P.O. BOX 151 3. Date of Earliest Transaction (MM/DD/YY) 12/04/2012 (Street) MANCHESTER, CT06045-0151 4. If Amendment, Date Original Filed (MM/DD/YY) 6. Individual or Joint/Group Filing (Check Applicable Line) __ X __ Form filed by One Reporting Person _____ Form filed by More than One Reporting Person (City) (State) (Zip)

Table I - Non-Derivative Securities Acquired, Disposed of, or Beneficially Owned 1.Title of Security (Instr. 3) 2. Transaction Date (MM/DD/YY) 2A. Deemed Execution Date, if any (MM/DD/YY) 3. Transaction Code (Instr. 8) 4. Securities Acquired (A) or Disposed of (D) (Instr. 3, 4 and 5) 5. Amount of Securities Beneficially Owned Following Reported Transaction(s) (Instr. 3 and 4) 6. Ownership Form: Direct (D) or Indirect (I) (Instr. 4) 7. Nature of Indirect Beneficial Ownership (Instr. 4) Code V Amount (A) or (D) Price Common Stock 12/04/2012 M 7,500 A $ 7.65 40,719 D Common Stock 12/04/2012 M 2,250 A $ 4.64 42,969 D Common Stock 12/04/2012 M 2,050 A $ 5.54 45,019 D Common Stock 12/04/2012 M 2,500 A $ 7.8 47,519 D Common Stock 12/04/2012 S 14,300 D $ 13.0744 ( 1 ) 33,219 D

Table II - Derivative Securities Acquired, Disposed of, or Beneficially Owned ( e.g. , puts, calls, warrants, options, convertible securities) 1. Title of Derivative Security (Instr. 3) 2. Conversion or Exercise Price of Derivative Security 3. Transaction Date (MM/DD/YY) 3A. Deemed Execution Date, if any (MM/DD/YY) 4. Transaction Code (Instr. 8) 5. Number of Derivative Securities Acquired (A) or Disposed of (D) (Instr. 3, 4, and 5) 6. Date Exercisable and Expiration Date (MM/DD/YY) 7. Title and Amount of Underlying Securities (Instr. 3 and 4) 8. Price of Derivative Security (Instr. 5) 9. Number of Derivative Securities Beneficially Owned Following Reported Transaction(s) (Instr. 4) 10. Ownership Form of Derivative Security: Direct (D) or Indirect (I) (Instr. 4) 11. Nature of Indirect Beneficial Ownership (Instr. 4) Code V (A) (D) Date Exercisable Expiration Date Title Amount or Number of Shares Stock Option (right to buy) $ 7.65 12/04/2012 M 7,500 12/07/2006( 2 ) 12/07/2015 Common Stock 7,500 $ 0 0 D Stock Option (right to buy) $ 4.64 12/04/2012 M 2,250 12/09/2009( 2 ) 12/09/2018 Common Stock 2,250 $ 0 750 D Stock Option (right to buy) $ 5.54 12/04/2012 M 2,050 12/11/2010( 2 ) 12/11/2019 Common Stock 2,050 $ 0 2,050 D Stock Option (right to buy) $ 7.8 12/04/2012 M 2,500 12/09/2011( 2 ) 12/09/2020 Common Stock 2,500 $ 0 7,500 D

Reporting Owners Reporting Owner Name / Address Relationships Director 10% Owner Officer Other ESTEY MONA G C/O LYDALL, INC. ONE COLONIAL ROAD, P.O. BOX 151 MANCHESTER, CT06045-0151 VP - Human Resources Signatures Paul G. Igoe, Attorney-in-fact for Mona G. Estey 12/06/2012 Signature of Reporting Person Date

Explanation of Responses:

( 1 )The price reported is the weighted average of all the shares sold on December 4, 2012. The shares were sold at varying prices in the range of $13.00 to $13.18. The reporting person undertakes, upon request by the Staff of the Securities and Exchange Commission, the issuer, or a security holder of the issuer, to provide full information regarding the number of shares sold at each separate price. ( 2 )Incentive stock options granted under the Amended and Restated 2003 Stock Incentive Compensation Plan. Options become exercisable at the rate of 25% per year, beginning one year from intitial grant date.

Reminder: Report on a separate line for each class of securities beneficially owned directly or indirectly.

* If the form is filed by more than one reporting person, see Instruction 4(b)(v).

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