HUDSON TECHNOLOGIES, INC. REPORTS
THIRD QUARTER 2000 RESULTS

PEARL RIVER, New York – Hudson Technologies, Inc. (NASDAQ:HDSN), a leading refrigerant services company specializing in emergency recovery and proprietary on-site decontamination services, for large comfort and process cooling systems, today announced results for the three and nine-month periods ended September 30, 2000. 

Revenues for the three months ended September 30, 2000 were $3,585,000 compared to $6,115,000 for the comparable 1999 period. Despite the reduction in revenues for the third quarter of 2000, the Company achieved a gross profit of $1,182,000 compared to $1,188,000 for the comparable 1999 period. During the third quarter of 2000, the Company reported a net loss of $(764,000), and, after dividends of $126,000 on preferred stock, the net loss per common share was $(0.17). This compares to a net loss of $(769,000) and, after dividends of $118,000 on preferred stock, a net loss per common share of $(0.17) for the comparable 1999 period. 

Revenues for the nine months ended September 30, 2000 were $11,247,000 compared to $15,141,000 for the comparable 1999 period. For the nine months ended September 30, 2000, the Company achieved a gross profit of $4,045,000 compared to a gross profit of $3,375,000 for the comparable 1999 period. For the nine months ended September 30, 2000, the Company reported a net loss of $(1,425,000) and, after dividends of $370,000 on preferred stock, the net loss per common share was $(0.35). This compares to a net loss of $(2,412,000) and, after dividends of $231,000 on preferred stock, a net loss per common share of $(0.52) for the comparable 1999 period.

The decrease in revenues during the three and nine months ended September 30, 2000 was primarily due to anticipated declines in the Company’s refrigerant sales to the automotive aftermarket industry offset, in part, by increases in RefrigerantSide™ Service revenues over the comparable 1999 periods. Notably, revenues from the Company’s RefrigerantSide™ Service increased 37% in the third quarter of 2000 over the comparable 1999 period and, for the nine months ended September 30, 2000, increased by 41% over the comparable 1999 period. The increase in RefrigerantSide™ Service was primarily due to the depot expansion into three additional markets and the continuous development of the Company’s RefrigerantSide™ Service offerings. As a result, and notwithstanding an overall reduction in revenues, the Company’s gross profit margins increased to 33% and 36% for the three and nine month periods ending September 30, 2000, respectively, compared to 19% and 22% gross profit margins during the comparable 1999 periods.

Commenting on the Company’s third quarter results, Kevin J. Zugibe, the Company’s Chairman and Chief Executive Officer stated, “The results of the third quarter are a continuation of the Company’s desired trend towards increases in RefrigerantSide™ Service revenues, reductions in low margin refrigerant sales and higher overall gross profit margins. The volatility of refrigerant sales, which decreased 62% in the third quarter of 2000 compared to 1999, contrasts with the consistency and growth that we have achieved in our RefrigerantSide™ Service revenues throughout 2000. The investments made during 1999 to create a sales and service infrastructure to support our RefrigerantSide™ Service was designed to lessen the Company’s dependence on refrigerant sales to the automotive aftermarket which are seasonal and typically have low gross profit margins. The trend towards increased RefrigerantSide™ Service revenues will, over time, help mitigate the effects of the volatility of our refrigerant sales and is expected to improve the profitability of the Company.”

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 increase operating efficiency and energy savings, 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           Nine month period

                                                                                  ended September 30,        ended September 30,

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