HUDSON TECHNOLOGIES, Inc.
25 Torne Valley Road
Hillburn, New York 10931

FOR IMMEDIATE RELEASE, August 15, 1997
Contact: Brian Coleman, CFO (845) 368-4990 x33

HUDSON TECHNOLOGIES REPORTS SECOND QUARTER 1997 RESULTS

HILLBURN, NEW YORK, AUGUST 15, 1997 – Hudson Technologies, Inc. (NASDAQ:HDSN) today announced its financial results for the second quarter ended June 30, 1997. As previously announced, the Company has incurred substantial losses for the three and six months ended June 30, 1997. Revenues remained constant at $5.5 million for the three month periods ending June 30, 1997 and June 30, 1996. For the three months ended June 30, 1997, including the impact of an inventory write down to net realizable value, the Company reported a net loss of $2.9 million, or $.57 per share, as compared to a net loss (inclusive of restructuring reserve) of $.7 million, or $.15 per share, for the three months ended June 30, 1996. For the six months ended June 30, 1997, the Company reported revenues of $13.5 million and a net loss of $3.5 million, or $.72 per share, compared with revenues of $9.2 million, and a net loss (inclusive of restructuring reserve) of $.6 million, or $.13 per share, for the six months ended June 30, 1996.

The Company attributed the losses and the decrease in gross profit for the three and six months periods ending June 30, 1997, in part, to an unseasonably cool spring and an unanticipated decline in demand and prices for certain of the products sold by the Company. As a result, sales of certain products were made at little or no gross margin, and the Company was required to write down to net realizable value its inventory by approximately $1.0 million at June 30, 1997.

The Company also announced that in connection with the preparation of the financial statements for the three months ended June 30, 1997, management determined, after consultation with its independent auditors, to restate certain portions of the financial statements for the three months ended March 31, 1997. Accordingly, the Company announced that it has revised the 1997 first quarter financial statements to reflect revenues of $8.0 million and a net loss of $.7 million, or $.14 per share, for the quarter.

Commenting further on the three and six month periods ended June 30, 1997, Mr. Zugibe noted that these results are extremely disappointing and stated that management has begun to implement several strategies in an effort to achieve profitability. "These strategies include a Company-wide refocus on the sale of higher margin specialized services unique to the Company, a re-evaluation and refocus of the Company’s sales staff, and direct cost reduction measures including salary reduction programs for most of management. Management is encouraged by an increase in higher margin service revenue realized to date in the third quarter and is confident that the new strategies being implemented will point the Company in the right direction."

Mr. Zugibe stated: "Last month at our annual shareholders meeting, I explained the various external factors and the prior decisions of management which together resulted in the disappointing results for the first six months of 1997. I also shared management’s vision for the future and our wholehearted belief that the innovative services offered by the Company, possible through our advanced technology, will distinguish Hudson from others in the industry and help define how service will be performed in the future. Since our annual shareholder meeting, Hudson has received preliminary approval from the U.S. Patent Office on several claims relating to new technology developed for these new services. We truly believe that these services will be our formula for success, and we are committed to reverse the trends of the past nine months."

Founded in 1991, Hudson provides refrigerant reclamation and management services, in addition to reclaimed refrigerant products under the brand name ’Glacier’ 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 specialized engineering services, separation of cross contaminated refrigerants, refrigerant 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