HUDSON TECHNOLOGIES REPORTS
SECOND QUARTER 2003 RESULTS

PEARL RIVER, N.Y. – August 15, 2003 – 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 ended June 30, 2003.   

Revenues for the second quarter totaled $5,064,000, versus $6,769,000 for the same period in 2002.  Including a one-time charge of $350,000 for reorganization costs and non-recurring finance charges of $82,000 related to Hudson’s prior credit facility and interest on its convertible debt, the Company reported a net loss of $519,000 and, after non-cash charges of $211,000 for payment-in-kind preferred stock dividends, a net loss per common share of $0.14.  For the same period in 2002, the Company reported net income of $133,000 and, after non-cash charges of $197,000 for payment-in-kind preferred stock dividends, a net loss per common share of $0.01.

Kevin J. Zugibe, chairman and chief executive officer, commented, “Hudson’s second-quarter revenues were impacted by both the unseasonably cool weather, which affected our sale of refrigerants, and the recent restructuring of the Company’s sales and marketing division.  As announced in May, we reorganized our RefrigerantSide® Services business to focus on the highest-opportunity industries and to serve them in a more cost-effective manner.  As a result, our selling and marketing expenses decreased dramatically compared to last year’s second quarter, and we expect to realize savings in our general and administrative expenses beginning in the third quarter. 

 “In addition to focusing on industrial customers in the U.S., we are making good progress with the global technology and marketing alliance we announced in June 2003 with The BOC Group (NYSE: BOX), a worldwide industrial gases, vacuum technologies and distribution services company.  The roll-out of our technology to BOC is proceeding on schedule.  We have begun the implementation of the technology transfer necessary to service the U.K. market and are moving forward to bring our services to other countries.”

Six Months Results
Revenues for the six months ended June 30, 2003 totaled $10,741,000 compared to $12,880,000 for the same period in 2002.  The Company reported a net loss of $941,000 for the six months ended June 30, 2003 and, after non-cash charges of $429,000 for payment in-kind preferred stock dividends, a net loss per common share of $0.27.  This compares to a net loss of $315,000 and, after non-cash charges of $394,000, a net loss per common share of $0.14 for the first six months of 2002.

The Company’s operating loss for the six months ended June 30, 2003 totaled $574,000 as compared to an operating loss of $401,000 for the same period last year.  However, it should be noted that the 2003 results include a one-time charge of $350,000 related to the Company’s reorganization. 

The Company’s results for the six months ended June 30, 2002 included a non-recurring gain of $232,000 attributable to proceeds from the prepayment of a note receivable from Environmental Support Solutions, Inc. The Company’s results for the first six months of 2003 include approximately $182,000 of non-recurring finance charges related to the Company’s credit facility and amortization of original issue discount associated with its outstanding convertible debt. The foregoing factors resulted in a $414,000 reduction in total other income for the first six months of 2003, as compared to 2002. 

Conference Call Information
The Company has scheduled a conference call for 10:00 a.m. Eastern time Friday, Aug. 15 to discuss its second quarter results.  The dial-in number for the conference call is 706-634-0175.  A replay of the call will also be available through Friday, Aug. 22, and can be accessed by dialing 706-645-9291, conference ID number 2203340. 

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, which are provided through a nationwide network of service depots, 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)