EPA Issues Final HCFC Allocation Rule

SUPPLY OF NEW hCFCS reduced TO 80% OF SERVICE DEMAND in 2010 with further annual reductions through 2014

pearl river, ny – December 17, 2009 – Hudson Technologies, Inc. (NASDAQ: HDSN), a leading distributor and reclaimer of refrigerants as well as a provider of proprietary on-site decontamination services for large comfort and process cooling systems, announced that on December 15, 2009 the United States Environmental Protection Agency (“EPA”) published its final allocation rule for the production and consumption of all Hydrochlorofluorocarbon (“HCFC”) refrigerants.  Under this new rule, which is effective January 1, 2010, the total United States HCFC “consumption” in 2010, which includes all HCFC production and importation, will be reduced to approximately 110 million pounds.  The EPA has estimated the 2010 U.S. demand for HCFCs to be approximately 138 million pounds. Therefore the estimated servicing demand for HCFCs will exceed the available supply by approximately 20%, or more than 27.5 million pounds. Reclaimed and recycled refrigerant is expected to fill this supply gap.  Additionally, the annual consumption of new HCFCs will be further reduced by an additional 10 million pounds each year from the previous year for 2011 through 2014.  With these step downs, by 2014 the demand for HCFCs is expected to exceed the available supply by approximately 29%.

Kevin Zugibe, Chairman and CEO stated, “The EPA’s long awaited final rule provides for greater reductions in the allocated supply of R-22, when compared to the original proposed rule released for comment last December.  Unlike last year’s draft rule, which proposed to fix the supply of new HCFCs for the next five years, the final rule imposes additional annual reductions through 2014, resulting in a total of 103 million fewer pounds available in the marketplace over the next five years.   We believe this reduction represents a tremendous opportunity for Hudson.

“Recent EPA data shows that approximately 10 million pounds of HCFC-22 were reclaimed in 2008.  With the reductions imposed under the new rule, commencing in 2010, a total of 27.5 million pounds of reclaimed or recycled HCFC-22 will be needed to meet the projected service demand.  Simply stated, the availability of reclaimed refrigerant will be essential to ensure adequate supply to service large comfort and process cooling systems.  We believe our leadership role in the reclamation industry, strengthened by our innovative Platinum Program and by the recent expansion of our production and distribution capabilities, position us well to benefit from this mandated shift in our industry.”  

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), the Company's ability to source 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.

 

Investor Relations Contact: John Nesbett/Jennifer Belodeau Institutional Marketing Services (IMS) (203) 972-9200 jnesbett@institutionalms.com   Investor contact: BPC Financial Marketing John Baldissera 800-368-1217

Company Contact: Brian F. Coleman, President & COO Hudson Technologies, Inc. (845) 735-6000 bcoleman@hudsontech.com

 

 

 

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