HUDSON TECHNOLOGIES, INC. REPORTS
THIRD 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 third quarter and nine month period ended September 30, 2001.

Revenues for the third quarter ended September 30, 2001, were $4,939,000 compared to $3,585,000 for the comparable 2000 period. During the third quarter of 2001, the Company reported a net loss of $(705,000) and, after Preferred Stock dividends of $187,000, a net loss per common share of $(0.17). This compares to a net loss of $(764,000) and, after Preferred Stock dividends of $126,000, a net loss per common share of $(0.17) for the comparable 2000 period.

The increase in revenues for the three months ended September 30, 2001, was the result of an increase in refrigerant sales offset by a reduction in RefrigerantSide® Service revenues as compared to the 2000 period. The increase in the Company’s refrigerant revenues was due to the continuation of the Company’s approach to strategic refrigerant sales. The reduction in the RefrigerantSide® Service revenues was due to fewer larger projects performed during the 2001 period and the postponement of and/or loss of certain work due to the September 11, 2001, terrorist attacks. The Company expects that as it continues to develop its RefrigerantSide® Service business it may experience quarter to quarter variability in RefrigerantSide® Service revenues, but it expects growth on an annual basis.

Revenues for the nine months ended September 30, 2001 were $16,836,000 compared to $11,247,000 for the comparable 2000 period. The increase in revenues in 2001 was due to an increase in refrigerant sales and an increase in RefrigerantSide® Service revenues over the comparable 2000 period. The Company reported a net loss of $(1,259,000) for the nine months ended September 30, 2001 and, after Preferred Stock dividends of $533,000, a net loss per common share of $(0.35). This compares to a net loss of $(1,425,000) (which included a non-recurring gain of $200,000) and, after Preferred Stock dividends of $370,000, a net loss per common share of $(0.35) for the comparable 2000 period.

Kevin J. Zugibe, the Company’s Chairman and Chief Executive Officer, stated, “During the third quarter of 2001, Brian F. Coleman was promoted to President and Chief Operating Officer of the Company. In addition, during this quarter, we again achieved an increase in revenues and gross profit from refrigerant sales as a result of our evolving strategy towards this seasonal business. While we had our first quarter of lower revenues and gross profits from RefrigerantSide® Services as compared to the prior period, we believe that this condition is temporary. During this quarter we did not experience opportunities for larger RefrigerantSide® Service projects. In addition, we were prevented or delayed from performing certain jobs due to the September 11, 2001 terrorist attacks. While we are experiencing delays due to the current work environment, we believe that many of these delays, and the conditions that occurred in the third quarter, are temporary and not indicative of future periods.”

Mr. Zugibe also stated: “We continue to invest in the refinement and expansion of our capabilities relating to RefrigerantSide® Services, as well as the on-going testing and implementation of our new service designed to quantify and improved the operating efficiency of chiller systems. We are also committed to achieving positive cash flow from operations and profitability. During the fourth quarter of this year, we have taken additional steps to reduce our overall cost structure and to improve our productivity. We expect to see savings from these initiatives during the latter part of the fourth quarter. We have completed a six month process that has resulted in the creation and introduction of a comprehensive sales and marketing plan and new corporate image, which are designed to achieve RefrigerantSide® Service revenue growth by capitalizing on what has been most effective with our existing customer base. We expect to begin to see benefits from this new plan in the form of increased RefrigerantSide® Service revenues beginning during the first quarter of 2002.”

Lastly, Mr. Zugibe said: “Having spent many hours working with groups at ‘ground zero’ of the World Trade Center to resolve certain refrigerant related problems, we have seen first hand the enormity of the devastation. On behalf of the employees of Hudson Technologies, we thank all those involved in the rescue and recovery efforts and express our deepest condolences and prayers to the families and friends of the victims of the terrorist attacks of September 11, 2001.”

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 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 involving 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 if necessary 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,