HUDSON TECHNOLOGIES REPORTS 63% INCREASE IN SECOND-QUARTER
REVENUES AND NET INCOME OF $1,670,000
 

PEARL RIVER, N.Y. – August 4, 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 second quarter ended June 30, 2005.  

Revenues for the second quarter of 2005 totaled $7,221,000 compared to $4,431,000 for the same period in 2004.  For the 2005 second quarter, the Company reported net income of $1,670,000, or $0.07 per common share.  This compares with net income of $514,000, or $0.02 per common share, for the same period last year.  

Revenues for the six months ended June 30, 2005 totaled $11,803,000 compared to $8,176,000 for the same period in 2004.  For the first six months of 2005, the Company reported net income of $1,893,000, or $0.07 per common share.  This compares to net income of $415,000 for the first six months of 2004, which, after non-cash charges of $228,000 for payment-in-kind preferred stock dividends, resulted in a net income per common share of $0.01. 

Kevin J. Zugibe, chairman and chief executive officer, commented, “Hudson Technologies again delivered excellent results in the second quarter, marking the eighth consecutive quarter of improved results over the prior year's period.  In fact, our second-quarter 2005 results represent Hudson’s best quarterly performance in ten years. 

“During the second quarter of 2005, revenues grew by $2,790,000, a 63% increase over the comparable period in 2004, and our gross margins rose to 43%, as compared to 41% during the 2004 period.  As a result, in the second quarter of 2005, we more than tripled our second-quarter 2004 net profit and posted the highest quarterly net income in the Company's history.  

“The Company’s strong second-quarter performance was driven by increased demand for refrigerants.  During the second quarter, the Company typically sells more refrigerants than in any other quarter.  In this year’s second quarter, Hudson sold more pounds of refrigerants, and at higher prices, than during the comparable 2004 period.   

“Revenues from our RefrigerantSide® Services business in the second quarter of 2005 were among the highest in the Company's history, although they decreased slightly from last year’s same period.   We are optimistic that our recent initiatives, including the launch of our ChillSMART™ product and our becoming an ENERGY STAR® Service and Product Provider Partner, will help us increase Hudson’s profile and create additional opportunities to expand our RefrigerantSide® Services business.  ChillSMART™ is designed to help our customers optimize their air conditioning and refrigeration systems, thereby reducing overall operating costs, which is essential in today’s market due to the high cost of energy.”  

Conference Call Information
Hudson Technologies will conduct a conference call on Thursday, August 4, at 10:00 a.m. Eastern time to discuss second-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 #7988409. 

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), the Company’s ability to source 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)