HUDSON TECHNOLOGIES REPORTS 22% INCREASE IN FIRST-QUARTER
REVENUES AND NET INCOME OF $223,000
 

PEARL RIVER, N.Y. – May 5, 2005 –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, 2005.  

Revenues for the first quarter of 2005 totaled $4,582,000 compared to $3,745,000 for the same period in 2004.  For the 2005 first quarter, the Company reported net income of $223,000, or $0.01 per common share.  This compares with a net loss of ($99,000) for the same period last year, which, after non-cash charges of $228,000 for payment-in-kind preferred stock dividends, resulted in a net loss per common share of ($0.04).

Kevin J. Zugibe, chairman and chief executive officer, commented, “On March 10, 2005, Hudson reported its strongest fourth quarter results, and its best year, since 1995.  I am now pleased to report Hudson’s strongest first quarter in ten years.  Revenues during the first quarter of 2005 grew by more than $800,000, a 22% increase over the first quarter of 2004.  Overall, our gross margins in the first quarter of 2005 rose to 35%, as compared to 28% during the 2004 period.  As a result, we reported a net profit of $223,000 in the first quarter of 2005, representing a $322,000 improvement to our bottom line from the first quarter of 2004.

“The increase in revenues and gross profit was fueled by strong demand for refrigerants.  Although revenues from our higher margin RefrigerantSide® Services were down from 2004, we attribute this entirely to the timing of projects, and we expect that, as in past years, the second quarter will exhibit increased demand for these services.  Overall, the first-quarter results continue to illustrate the effectiveness of our streamlined and centralized approach to the management of our business, which has resulted in higher margins and bottom line profitability.   We are very pleased with the results of our ongoing strategy to target the highest opportunity customers throughout our business, and with the Company’s continued progress towards achieving our goal of consistent profitability.” 

Mr. Zugibe added, “The first quarter also marked an important development in our plan for expanding Hudson’s profile and growing our business in the future.  In March we announced that we became an ENERGY STAR® Service and Product Provider Partner, a program developed by the U.S. Environmental Protection Agency (“EPA”), and began offering our Performance Optimization services under the ENERGY STAR banner.  As an ENERGY STAR® Service and Product Provider Partner, we will be able to combine Hudson’s unique offerings for improving the operating efficiency of industrial and commercial companies’ refrigeration systems with the significant resources made available by the EPA for this program. 

“Consistent with that effort, last month we launched our ChillSMART™ product offering, a powerful new analytical tool for improving the operations of industrial and commercial chiller systems.  By correlating the results of five simultaneous tests – refrigerant, water, oil, vibration and wear analysis – ChillSMART™ provides a comprehensive picture of the inefficiencies of a refrigeration system’s operations and provides recommendations for remedying the system’s problems.  This new offering demonstrates our continued commitment to leveraging Hudson’s engineering expertise and technology investments and offsetting the effects of seasonal refrigerant sales through the expansion of our RefrigerantSide® Services.”

Conference Call Information
Hudson Technologies will conduct a conference call on Thursday, May 5, at 10:00 a.m. Eastern time to discuss first-quarter 2005 results and additional matters.  The dial-in number for the call is 706-634-0175.  A replay of the call will also be available through May 12, 2005, and can be accessed by dialing 706-645-9291 and referencing conference ID #5886098.

About Hudson Technologies
Hudson Technologies, Inc. is a leading provider of innovative solutions to recurring problems within the refrigeration industry.  Hudson’s proprietary RefrigerantSide® Services increase operating efficiency and energy savings, and remove moisture, oils and other contaminants frequently found in the refrigeration circuits of large comfort cooling and process refrigeration systems.  Performed at a customer’s site as an integral part of an effective scheduled maintenance program or in response to emergencies, RefrigerantSide® Services offer significant savings to customers due to their ability to be completed rapidly and at higher purity levels, and can be utilized while the customer’s system continues to operate.  In addition, the Company sells refrigerants and provides traditional reclamation services to the commercial and industrial air conditioning and refrigeration markets.  For further information on Hudson, please visit the Company’s web site at www.hudsontech.com.

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, the ability to obtain financing and other risks detailed in the Company’s 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)