HUDSON TECHNOLOGIES ANNOUNCES FOURTH QUARTER AND YEAR-END 2001 RESULTS
Revenues for Fiscal 2001 Increase 34%

PEARL RIVER, N.Y. – March 27, 2002 – 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 year ended December 31, 2001. 

Revenues for the fourth quarter ended December 31, 2001 totaled $3,932,000 compared to $4,208,000 for the comparable period in 2000.  The company reported a net loss of $1,140,000 and, after preferred stock dividends of $190,000, a net loss per common share of $0.26 for the fourth quarter of 2001.  This compares to a net loss of $971,000 and, after preferred stock dividends of $127,000, a net loss per common share of $0.22 for the comparable 2000 period.

Revenues for the year ended December 31, 2001 totaled $20,768,000 compared to $15,455,000 for fiscal 2000.  For 2001, the company reported a net loss of $2,399,000 and, after preferred stock dividends of $723,000, a net loss per common share of $0.61.  This compares to a net loss of $2,396,000 and, after preferred stock dividends of $497,000, a net loss per common share of $0.57 for 2000.

Kevin J. Zugibe, Hudson’s chairman and chief executive officer, stated, “Although revenue increased 34% in fiscal 2001, sales in the fourth quarter decreased.  Most of this decline was attributable to lower refrigerant sales, which resulted from a delay in the pre-season buying that normally begins late in the fourth quarter.  Revenue from our RefrigerantSide® Services was also down slightly due to the incidents of September 11^th, which reduced activity in the New York City area, our largest market, and in the marine business.”

In the fourth quarter of 2001, Hudson’s gross profit margin increased to 25.7% from 24.1% in the same period last year.  The increased margin was due to a higher percentage of revenues derived from RefrigerantSide® Services as compared to the prior period.  Although Hudson’s operating loss for the 2001 year was $187,000 less than for 2000, its net loss for 2001 was virtually unchanged from the prior year because the company realized $188,000 in income in 2000 from the sale of its remaining ownership interest in Environmental Support Solutions, Inc.

Mr. Zugibe continued, “Our work at the World Trade Center site in December, where we were called in to help recover any remaining refrigerants from the giant chillers that once cooled the two towers, was one of Hudson’s most challenging assignments ever.  We are gratified that our company’s expertise and problem-solving capabilities could be of use in such difficult and dangerous circumstances.”

“Looking towards 2002,” Mr. Zugibe concluded, "we are continuing our comprehensive program to grow revenues overall and, in particular, to develop our higher margin RefrigerantSide® Services business.  We are excited by our recent addition of a highly experienced vice president of sales and marketing who will drive our expected revenue growth and advance our position as a principal solution provider to our industry.  We are beginning to solidify our relationships with leading original equipment manufacturers that also play a key role in the services contracting business.  This progress illustrates the potential of our new sales and marketing strategy.” 

About Hudson: 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.

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

                                                                                  Three month period                 For the year ended

                                                                                 ended December 31,                December 31,