HUDSON TECHNOLOGIES, INC. REPORTS
SECOND QUARTER 2000 RESULTS

PEARL RIVER, New York – Hudson Technologies, Inc. (NASDAQ:HDSN), a leading refrigerant services company specializing in emergency recovery and decontamination services for large comfort and process cooling systems, today announced results for the quarter and six-month period ended June 30, 2000. 

Revenues for the three months ended June 30, 2000 were $4.6 million compared to $4.0 million for the comparable 1999 period. The increase in revenues during the second quarter of 2000 was primarily due to an increase in the sales prices for certain refrigerants as well as an increase in RefrigerantSide™ Service revenues, over the comparable 1999 period. During the second quarter of 2000, the Company reported operating income of $6,000 as compared to an operating loss of $(686,000) for the comparable 1999 period. The Company reported net income of $191,000 for the second quarter of 2000, including a non-recurring gain of $200,000 from the sale of a former business, and, after dividends of $122,000 on preferred stock, the net income per common share was $0.01. This compares to a net loss of $(787,000) or $(0.18) per common share for the comparable 1999 period. 

During the second quarter of 2000 revenues derived from the Company’s RefrigerantSide™ Services increased 22%, compared to the second quarter of 1999. The increase in RefrigerantSide™ Service revenues was primarily the result of the depot expansion into three additional markets and the development of the RefrigerantSide™ Service offerings. Revenues derived from refrigerant sales during the second quarter of 2000 increased 17% compared to the second quarter of 1999. The increase in refrigerant sale revenues resulted from increases in sales prices charged by the Company on certain refrigerants during the 2000 period as compared to the 1999 period. As a result of both the increase in revenues derived from RefrigerantSide™ Services, which generally provide higher margins than refrigerant sales, and the increase in sales price for certain refrigerants, the Company recognized a 41% gross profit margin for the second quarter of 2000 compared to a 25% gross profit margin for the comparable 1999 period.

Revenues for the six months ended June 30, 2000 were $7.7 million compared to $9.0 million for the comparable 1999 period. The decrease in revenues in 2000 was primarily due to a decrease in the volume of refrigerant sales offset, in part, by an increase in RefrigerantSide™ Service revenues. The Company recognized a 37% gross profit margin for the six months ended June 30, 2000 compared to 24% gross profit margin for the comparable 1999 period. The Company reported a net loss of $(661,000) for the six months ended June 30, 2000 and, after dividends of $244,000 on preferred stock, the net loss per common share was $(0.18). This compares to a net loss of $(1,643,000) or $(0.35) per common share for the comparable 1999 period. 

Commenting on the second quarter Kevin Zugibe, the Company’s Chairman and Chief Executive Officer said, “We are pleased that our investments and focus towards service have resulted in continued growth of our higher margin RefrigerantSide™ Services and the development of our depots. As we develop these depots, which currently serve eleven markets throughout the United States, we continue to identify new opportunities and applications for our RefrigerantSide™ Services. As a result, we have expanded the types of services we offer and achieved growth in service revenues.”

Mr. Zugibe added, “During the second quarter of 2000, we realized higher prices and gross margins on our refrigerant sales. These sales prices and margins tend to fluctuate significantly and are very seasonal with higher margins generally occurring in the first half of the year. Consistent with our strategic business focus, we believe that the trend towards increases in our RefrigerantSide™ Service revenues will, over time, help offset the volatility of our refrigerant sales.” 

About Hudson: Hudson Technologies, Inc., together with its subsidiaries, 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. In addition, 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 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. 

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              Six month period

                                                                                       ended June 30,                   ended June 30,

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