HUDSON TECHNOLOGIES REPORTS NET INCOME OF $514,000
IN SECOND QUARTER 2004

PEARL RIVER, N.Y. – August 3, 2004 – 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, 2004.

Revenues for the second quarter of 2004 totaled $4,431,000 versus $5,064,000 for the same period in 2003.  For the 2004 second quarter, the Company reported net income of $514,000, or $0.02 per common and diluted share.  This compares with a net loss of $519,000 for the same period last year, which, after non-cash charges of $211,000 for payment-in-kind preferred stock dividends, resulted in a net loss per common and diluted share of $0.14.

Revenues for the six months ended June 30, 2004 totaled $8,176,000 compared to $10,741,000 for the same period in 2003.  For the first six months of 2004, the Company reported net income of $415,000, 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 $0.01.  This compares to a net loss of $941,000 for the first six months of 2003, which, after non-cash charges of $429,000 for payment-in-kind preferred stock dividends, resulted in a net loss per common and diluted share of $0.27.

Kevin J. Zugibe, chairman and chief executive officer, commented, “By all measures, Hudson Technologies’ performance in the second quarter was outstanding.  We achieved significant growth in our higher margin RefrigerantSide® Services business, where our focus on the highest opportunity customers produced both higher revenues overall and on a ‘per job’ basis.  In addition, our targeted marketing program, aimed at growing Hudson’s non-automotive refrigerant sales, continued to be successful and has resulted in higher overall margins on our refrigerant sales.  As a result, the Company’s gross margins rose dramatically, increasing to 43.6% in the second quarter of 2004 from 30.2% in the second quarter of 2003. 

“Moreover, the many steps we took in 2003 to rightsize our business continued to yield significant reductions in our operating expenses during the first six months of 2004.  The combination of increased service revenues, higher margins and reduced costs produced our best quarterly performance in nine years, with operating income of $592,000 and net income of $514,000.”

Mr. Zugibe added, “Our alliance with The BOC Group, through which we are launching Hudson’s patented technology and services internationally, continues to make good progress.  Our RefrigerantSide® Services have been well received in the U.K. and are generating revenues for the Company.  In South Africa, the second market targeted in our alliance with BOC, we expect the training of personnel and delivery of our equipment to BOC’s affiliate, African Oxygen Limited, will be completed during the third quarter of 2004.  We are also evaluating other promising international markets to enter with our alliance partner.

“All in all, we are extremely pleased with the results of the many initiatives we implemented over the past year.  As we go forward, we expect to implement a number of additional steps designed to further improve Hudson’s service offering and operations and to achieve profitability on a consistent basis for our stockholders.” 

Conference Call Information
Hudson Technologies will conduct a conference call on Tuesday, August 3, at 10:00 a.m. Eastern time to discuss second-quarter-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 August 11, 2004, and can be accessed by dialing 706-645-9291 and referencing conference ID #8898090.

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