The Company attributed the increase in net income in 1998 primarily to a change in product mix with a greater volume of revenues coming from the Company’s higher margin services, including its RefrigerantSide™ services, and from the sale of refrigerants at higher margins than in the prior period.

Commenting on the results, Kevin Zugibe, the Company’s Chairman and CEO, noted that the earnings improvement for the first quarter 1998 was largely a result of the Company’s efforts to promote its higher margin services and becoming more selective in sourcing of refrigerants for resale. "We have continued to emphasize and promote our specialized RefrigerantSide™ services and we are proceeding with a number of projects under development in our engineering division which we believe will expand our service offerings. Hudson’s separation process also contributed to the improvement in our first quarter results."

In addition to the financial results, Mr. Zugibe noted that the Company recently took steps to fortify management and its banking relationship. "Eugene Tonkovich has joined the management team as President and Chief Operating Officer, bringing with him over 25 years of diverse business experience. We also secured a new $5 million credit line facility with The CIT Group/Credit Finance, Inc. that will immediately enhance the Company’s working capital at a reduced cost, for the Company’s day to day financial needs."

Founded in 1991, Hudson provides refrigerant reclamation and management services, in addition to reclaimed refrigerant products, from its eight regional facilities in New York (two), Florida (two), Illinois, Nevada, North Carolina and Louisiana. Hudson specializes in the rapid recovery and reclamation of all commonly used refrigerants through its patented reclamation equipment. Hudson also provides refrigerant separation, blending, testing, and packaging services, as well as refrigerant management and training and computer software products.

The statements which are not historical facts contained in this press release are forward looking statements that involve risks and uncertainties, including but not limited to, changes in the markets for refrigerants (including current unfavorable market conditions adversely affecting the demand for, and the price of, refrigerants), regulatory and economic factors, increased competition, the nature of supplier or customer arrangements which become available to the Company in the future, adverse weather conditions, technological obsolescence and potential environmental liability. The Company’s actual results may differ materially from the results discussed in any forward looking statement.

Hudson Technologies, Inc. and subsidiaries
Consolidated Statements of Operations
(Amounts in thousands, except for share and per share amounts) (unaudited)
Three month period ended March 31,