HUDSON TECHNOLOGIES, INC. REPORTS
SECOND 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 second quarter and six month period ended June 30, 2001. 

Revenues for the second quarter ended June 30, 2001, were $6,867,000 compared to $4,578,000 for the comparable 2000 period. During the second quarter of 2001, the Company reported operating income of $299,000 as compared to operating income of $6,000 for the comparable 2000 period. During the second quarter of 2001, the Company reported net income of $217,000 and, after Preferred Stock dividends of $187,000, the net income per common share was $0.01. This compares to net income of $191,000, which included a non-recurring gain of $200,000, and, after Preferred Stock dividends of $122,000, a net income per common share of $0.01 for the comparable 2000 period. 

The 50% increase in revenues for the three months ended June 30, 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 26% increase in its RefrigerantSide® Service revenues and a 60% increase in its refrigerant revenues. The increase in the RefrigerantSide® Service revenues was due to the continued development of the Company’s 10 depots located throughout the United States. The increase in the Company’s refrigerant revenues was due to the continued effort to sell refrigerants to specific industries and customers. 

Revenues for the six months ended June 30, 2001 were $11,897,000 compared to $7,662,000 for the comparable 2000 period. The 55% increase in revenues in 2001 was due to a 32% increase from RefrigerantSide® Service and a 69% increase in refrigerant sales over the comparable 2000 period. During the six months ended June 30, 2001, the Company reported an operating loss of $(444,000) as compared to an operating loss of $(812,000) for the comparable 2000 period. The Company reported a net loss of $(554,000) for the six months ended June 30, 2001 and, after Preferred Stock dividends of $346,000, the net loss per common share was $(0.18). This compares to a net loss of $(661,000), which included a non-recurring gain of $200,000 and, after Preferred Stock dividends of $244,000, a net loss per common share of $(0.18) for the comparable 2000 period.

Kevin J. Zugibe, the Company’s chairman and chief executive officer, stated, “We are very pleased that we achieved an operating profit during the second quarter ended June 30, 2001. We continue to grow our RefrigerantSide® Services in volume, breadth and markets and expect that this growth will continue. We are accomplishing this growth in service while we are capitalizing on our evolving approach to strategic refrigerant sales.” 

Mr. Zugibe also stated: “We have developed an implementation plan to achieve greater penetration in the markets we currently serve, which include land and marine based chiller and refrigeration systems used in the commercial, industrial and government sectors. In addition, the Company is in the final stages of testing and implementing a new service offering utilizing our proprietary technology. We believe that this new service offering, designed to be used in conjunction with our proprietary RefrigerantSide® Services, will provide users with significant energy savings by increasing the operating efficiency of their chiller systems and thus provides bottom line savings to system owners that is both measurable and significant.”

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 and to provide energy savings. The Company’s proprietary RefrigerantSide® Services remove moisture, oils and myriad 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 proprietary RefrigerantSide® Services remove impurities rapidly and can be utilized while the client’s system continues to function. Hudson’s proprietary technology offers significant savings to customers by allowing refrigeration systems to be brought back on-line by as much as 80 percent faster than compared with conventional methods. In addition, the Company sells refrigerants and provides traditional recovery and reclamation services to the commercial and industrial air conditioning and refrigeration markets. 


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
                                                                                                          ended June 30,                   ended June 30,

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