HUDSON TECHNOLOGIES REPORTS FOURTH QUARTER AND
FULL YEAR 2004 RESULTS

Realizes $2.7 Million Improvement in Profitability in 2004

PEARL RIVER, N.Y. – March 10, 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 fourth quarter and the year ended December 31, 2004.  

Revenues for the fourth quarter of 2004 totaled $2,865,000 compared to $3,234,000 for the same period in 2003.  For the 2004 fourth quarter, the Company reported a net loss of ($452,000), or ($0.02) per common and diluted share.  This compares with a net loss of ($902,000) for the same period last year, which, after non-cash charges of $218,000 for payment-in-kind preferred stock dividends, resulted in a net loss per common and diluted share of ($0.20).  

Revenues for the twelve months ended December 31, 2004 totaled $14,613,000 compared to $17,963,000 for the full year 2003.  For the full year 2004, the Company reported net income of $264,000, which, after non-cash charges of $228,000 for payment-in-kind preferred stock dividends, resulted in net income per common and diluted share of $0.00.  This compares to a net loss of ($2,432,000) for the full year 2003, which, after non-cash charges of $866,000 for payment-in-kind preferred stock dividends, resulted in a net loss per common and diluted share of ($0.63).

Kevin J. Zugibe, chairman and chief executive officer, commented, “The fourth quarter is a seasonally slow period for our industry and, as it was this year, has traditionally been Hudson’s weakest quarter.   Nonetheless, the fourth quarter 2004 results show a dramatic improvement over those of last year’s same period, and reflect the Company’s strongest fourth quarter performance since 1995.  These results illustrate the strong and steady improvement we have been making in our business since mid-2003, when we began implementing a series of changes designed to reduce costs and re-focus our sales and marketing efforts. 

“Throughout 2004, we have been successful in growing our higher margin RefrigerantSide® Services business, where we sharpened our focus on serving the highest opportunity customers.  The result of this new focus has been higher revenues overall and on a ‘per job’ basis.  For example, service revenues accounted for 40% of our business in the fourth quarter of 2004 and 29% of our business for the year, as compared to 22% and 17% for the comparable periods in 2003, respectively.” 

Mr. Zugibe continued, “We have also been successful in increasing our gross profit margins, which has been a primary goal in revising our approach to Hudson’s business.   We were able to increase gross profit margins on our refrigerant and traditional reclamation sales by targeting our sales and marketing efforts to those customers that complement and support our RefrigerantSide® Services. That effort, coupled with the growth of our higher margin RefrigerantSide® Services revenues, caused our overall gross profit margin to rise to 39% during the fourth quarter of 2004, as compared to 23% in last year’s fourth quarter. For the year 2004 overall, our gross profit margins rose to 38%, as compared to 27% in 2003.  Our continued Company-wide focus on increasing margins also enabled us to improve Hudson’s bottom-line financial performance by $2.7 million in 2004 as compared to 2003.” 

Mr. Zugibe concluded, “We are very proud of the significant progress made by Hudson in 2004 and expect a continuation of these trends in 2005.  In addition to working to further improve the consistency of our results, we will focus on launching our energy system optimization program, designed to identify inefficiencies and provide energy saving solutions for industrial and commercial companies.  We believe our recent steps to become an Energy Star® Service and Product Provider Partner, announced on March 3, 2005, will help us market Hudson’s services effectively and demonstrate the significant savings our superior engineering and chemistry know-how can offer our customers.”   

Conference Call Information
Hudson Technologies will conduct a conference call on Thursday, March 10, at 11:00 a.m. Eastern time to discuss fourth-quarter and full-year 2004 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 March 17 2005, and can be accessed by dialing 706-645-9291 and referencing conference ID #4586680.

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), 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
(Amounts in thousands, except for share and per share amounts)