HUDSON TECHNOLOGIES, INC. REPORTS
FIRST QUARTER 2001 RESULTS

PEARL RIVER, New York – Hudson Technologies, Inc. (NASDAQ:HDSN), a leading refrigerant services company specializing in proprietary on-site decontamination services for large comfort and process cooling systems, today announced results for the first quarter ended March 31, 2001. 

Revenues for the first quarter ended March 31, 2001, were $5,030,000 compared to $3,084,000 for the comparable 2000 period. During the first quarter of 2001, the Company reported a net loss of $(771,000) and, after Preferred Stock dividends of $159,000, the net loss per common share was $(0.18). This compares to a net loss of $(852,000) and, after Preferred Stock dividends of $122,000, a net loss per common share of $(0.19) for the comparable 2000 period. 

The increase in revenues for the three months ended March 31, 2001, was the result of increases in both the revenues from RefrigerantSide® Services and refrigerant sales over the comparable 2000 period. The Company experienced a 39% increase in its RefrigerantSide® Service revenues and an 85% increase in its refrigerant revenues. The increase in the RefrigerantSide® Service revenues was due to the continued development of the Company’s services through its 10 depots located throughout the United States. The increase in the Company’s refrigerant revenues was due to an enhanced effort to sell refrigerants targeted toward specific industries and customers. The Company’s gross margin decreased to 23% for the three months ended March 31, 2001, compared to 32% for the comparable 2000 period. The decrease in gross profit margin was primarily due to a greater percentage of refrigerant sales to total revenue and an increase in labor and supply costs incurred to develop and perform new RefrigerantSide® Services into a market that had not previously been penetrated by the Company.

Kevin J. Zugibe, the Company’s chairman and chief executive officer, stated, “We are very pleased with the results of the first quarter ended March 31, 2001. During the quarter, we continued our strategy by expanding the breadth of our RefrigerantSide® Services and by introducing those services into a new market. While we incurred additional costs to develop these proprietary services, these costs are part of our continued effort to expand our service offerings and the markets we serve.”

Mr. Zugibe also stated: “During the past two years the Company has been developing a specialized technology, which is designed to be used in conjunction with proprietary RefrigerantSide® Services and which we believe, will provide the users with significant energy savings. We believe these services will provide our customers the ability to increase the energy efficiency of an operating chiller in ways which were not previously possible. During this summer the Company will be in a position to offer this completely new service to its existing customer base as well as new customers.” Mr. Zugibe further stated, “Today, energy conservation - particularly electrical energy - is perhaps the greatest concern of every citizen, corporate, governmental and non-profit organization. Chiller systems use substantial amounts of energy and we believe our proprietary service will provide real bottom line savings to the owners of these chillers.”

About Hudson: Hudson Technologies, Inc., is a leading provider of innovative solutions to recurring problems within the refrigeration industry. Hudson’s proprietary RefrigerantSide® Services provide rapid response to emergencies that occur at a customer’s site, as well as routine scheduled maintenance to enhance operating efficiency. The Company’s RefrigerantSide® Services are designed to increase operating efficiency and energy savings, remove moisture, oils and other contaminants frequently found in the refrigeration circuits of large comfort cooling and process refrigeration systems. These contaminants can be introduced into a system by means of a catastrophic equipment failure, or through less than optimal preventive maintenance that can reduce performance, cause air conditioning system outages and interrupt production. Hudson’s decontamination system removes impurities rapidly and can be utilized while the client’s system continues to function, offering significant savings to customers. This technology has reduced system downtime by as much as 80 percent when compared with conventional repair methods. In addition, the Company sells refrigerants and provides services to the commercial and industrial air conditioning and refrigeration markets. The Company’s services include recovery and reclamation of the refrigerants used in commercial air conditioning and refrigeration systems.


Safe Harbor statement under the Private Securities Litigation Act of 1995: Statements contained herein, which are not historical facts constitute forward-looking statements involve a number of known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, but are not limited to, changes in the markets for refrigerants (including unfavorable market conditions adversely affecting the demand for, and the price of refrigerants), regulatory and economic factors, seasonality, competition, litigation, the nature of supplier or customer arrangements which become available to the Company in the future, adverse weather conditions, possible technological obsolescence of existing products and services, possible reduction in the carrying value of long-lived assets, estimates of the useful life of its assets, potential environmental liability, customer concentration and other risks detailed in the Company’s other periodic reports filed with the Securities and Exchange Commission. The words “believe”, “expect”, “anticipate”, “may”, “plan”, “should” and similar expressions identify forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date the statement was made.

Hudson Technologies, Inc. and subsidiaries
Consolidated Statements of Operations
(unaudited)
(Amounts in thousands, except for share and per share amounts)

                                                                                                             Three month period
                                                                                                                                 ended March 31,

	2001	2000
Revenues	$5,030	$3,084
Cost of Sales	3,868	2,106
Gross Profit	1,162	978
Operating expenses:
Selling and marketing	558	511
General and administrative	1,040	959
Depreciation and amortization	307	326
Total operating expenses	1,905	1,796
Operating loss	(743)	(818)
Total other income (expense)	(28)	(34)
Loss before income taxes	(771)	(852)
Income taxes	-	-
Net loss	(771)	(852)
Preferred stock dividends	(159)	(122)
Loss available for common shareholders	$ (930)	$ (974)
____________________________________________
Net loss per common share – basic and diluted	$ (0.18)	$ (0.19)
Weighted average number of shares outstanding	5,088,820	5,087,820

 

Brian Coleman, CFO Hudson Technologies, Inc. (845) 368-4990