Item 7.01. Regulation FD Disclosure.

Modification to Commercial Credit Facility

Aldila, Inc. announced that on February 9, 2009 it entered into a Loan Modification Agreement (the "Agreement") to be effective from December 31, 2008. The Agreement modifies the Credit and Security Agreement with Key Bank of Ohio dated February 8, 2008 (reported on Form 8-K filed February 11, 2008). The material changes are as follows:

† The maximum amount permitted under the Revolving Loan is reduced to $5,000,000.

† The maximum amount permitted under the Term Loan is reduced to $4,083,333 and Aldila is required to make a principal reduction payment of $83,333 on or before February 1, 2009 (which it paid).

† The maximum combined total commitment amount under the Revolving and Term Loans is reduced to $9,083,333.

† The revolving loan will become due February 8, 2011.

† The term loan will become due February 8, 2013.

† The base interest rate option on either the revolving or term loans will now be the Derived Base Rate, which is 275-basis points over the Base Rate. The Base Rate remains as the greater of (i) the Prime Rate or (ii) one-half of one-percent over the Federal Funds Effective Rate (the overnight Federal Funds rate announced from time to time by the New York Federal Reserve Bank).

† The Eurodollar Rate will now be 450-basis points over the Eurodollar Rate.

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† Aldila will not be required to meet any leverage ratio covenant until September 30, 2009, nor any fixed charge coverage ratio until December 31, 2009.

† Aldila has paid a loan modification fee of $90,000 concurrently with entering into the Agreement.

The foregoing description is not complete and is qualified by reference to the complete text of the Agreement. A copy of the Agreement will be filed as an exhibit to Aldila's Annual Report on Form 10-K for the period ended December 31, 2008.

Reference is further made to the Form 8-K filed by Aldila with the Securities and Exchange Comission ("SEC") on February 11, 2008 for a more complete discussion of the original terms of the Credit and Security Agreement. The original Credit and Security Agreement and certain attachments and exhibits were filed as exhibits to Aldila's Annual Report on Form 10-K filed with the SEC on March 28, 2008.

(d) Exhibits

None