Current News @ Hudson Technologies

HUdson Technologies REPORTS 2009 FOURTH QUarter AND YEAR END Results

Pearl River, NY – March 2, 2010 – 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 results for the fourth quarter and year ended December 31, 2009.

Revenues for the three months ended December 31, 2009 decreased 4% to $2,769,000 from $2,871,000 in the comparable 2008 period. Gross profit margins decreased to 3.4% for the fourth quarter of 2009 compared to 22.5% in the fourth quarter of 2008. Operating expenses were reduced to $1,630,000 in the fourth quarter ended December 31, 2009 compared to $1,734,000 in the fourth quarter ended December 31, 2008. Hudson reported a net loss of $1,726,000, or $0.08 per basic and diluted share, for the quarter ended December 31, 2009, compared to a net loss of $821,000, or $0.04 per basic and diluted share for the quarter ended December 31, 2008.

For the year ended December 31, 2009, Hudson reported revenues of $24,167,000 a decrease of 27% compared to revenues of $33,167,000 in the year ended December 31, 2008. Gross profit margins decreased to 16% for 2009, compared to 34% in 2008. Operating expenses decreased 15% to $5,025,000 for 2009, compared to $5,894,000 in 2008. The Company reported a net loss of $2,495,000, or $0.12 per basic and diluted share, for the year ended December 31, 2009, which included an income tax benefit of $119,000, compared to net income of $6,669,000 or, $0.35 and $0.33 per basic and diluted share, respectively, in the year ended December 31, 2008, which included an income tax benefit of $2,420,000.

Kevin J. Zugibe, Chairman and Chief Executive Officer of Hudson Technologies commented, “Hudson faced several challenges during 2009, most notably a severe economic downturn coupled with unseasonably cold summer weather in the northern and northeastern regions of the U.S. In the first half of 2009, the uncertain economic landscape resulted in our customers conserving cash by deferring their typical pre-season refrigerant purchases and adopting a ‘just in time’ policy for their inventory purchases. As we entered the peak summer months, which typically drive A/C needs and corresponding demand for supplies of refrigerants, the unseasonably cool summer temperatures diminished the use of A/C and large comfort and process cooling systems, suppressing demand and pricing, and resulting in a significant reduction in refrigerant sales which persisted through year end. Likewise, our gross margin performance was disappointing due to an increase in the cost of goods sold and a decrease in our selling price of refrigerants during the last half of fiscal 2009 resulting from an industry wide decrease in demand as compared to previous years.”

“Despite our disappointment with our 2009 results, which mirror nearly every sector of the refrigerant industry, we have good reason to remain optimistic about the future of our business. We believe that fiscal 2009 was an anomaly and, while it may take until the summer before we begin to see a return to more historic gross profit margins, we do expect to see significant improvement in our financial results in 2010. As we recently announced, 2010 begins the greatest single EPA-mandated phase out that our industry has ever seen. The EPA phase out of HCFC refrigerants began with new regulations that became effective January 1, 2010. As we anticipated, pursuant to these new regulations, hydrochlorofluorocabon (“HCFC”) production has been reduced to 80% of the EPA’s projected U.S. aftermarket demand, which is expected to create an approximately 20% shortfall in the U.S. supply of HCFC refrigerants, which are among the most widely used refrigerants today. Most large comfort and process cooling systems have a life expectancy of approximately twenty years and require HCFCs to run efficiently. The projected supply gap caused by the HCFC phase out will therefore need to be filled with reclaimed or recycled refrigerant, which we believe will result in an approximately three-fold increase over the current demand for recycled and reclaimed refrigerant. As a leader in the reclamation industry, with proven infrastructure, recently enhanced production facilities, patented reclamation equipment, as well as our innovative Platinum Program, we believe Hudson is uniquely positioned to benefit from these changes in our industry.”

“During 2009 we made adjustments to counter the difficult economic environment by reducing our cost structure and the Company achieved an overall decrease of $869,000 in operating expenses for the year, largely due to certain one-time reductions in the 2009 compensation of the Company’s officers and employees. I’d like to thank our employees for their efforts and their personal sacrifices during what was an extremely challenging year. They have worked very hard to position Hudson as the leader in an industry which now has the potential for significant growth. We remain attentive to the needs of our customers and committed to capitalizing on the opportunities presented by the expected shift in our industry caused by the changing regulatory environment.”

CONFERENCE CALL INFORMATION

The Company will host a conference call to discuss the fourth quarter and year end results today, March 2, 2010 at 10:00 A.M. Eastern Time. To access the live webcast, log onto the Hudson Technologies website at www.hudsontech.com and click on “Investor Relations”. To participate in the call by phone, dial 877-307-1372 approximately five minutes prior to the scheduled start time. International callers please dial 678-894-3936. A replay of the webcast can be accessed by visiting the Investor Relations section of the Hudson Technologies website. A replay of the teleconference will be available until March 9, 2010 and may be accessed domestically by dialing 800-642-1687 and international callers may dial 706-645-9291. Callers should use pass code 59117628.

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.

Safe Harbor Statement under the Private Securities Litigation Act of 1995

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

Hudson Technologies, Inc. and subsidiaries

Consolidated Balance Sheets

(Amounts in thousands, except for share and par value amounts)

				December 31,
				2009	2008
Assets
Current assets:
	Cash and cash equivalents			$ 299	$ 214
	Trade accounts receivable - net			1,594	1,731
	Inventories			16,410	23,613
	Prepaid expenses and other current assets			815	665
			Total current assets	19,118	26,223
Property, plant and equipment, less accumulated depreciation and amortization				2,925	2,921
Other assets				104	158
Deferred tax asset				4,120	4,120
Intangible assets, less accumulated amortization				78	73
			Total Assets	$26,345	$33,495
				======	======
Liabilities and Stockholders' Equity
Current liabilities:
	Accounts payable and accrued expenses			$ 4,178	$ 5,590
	Accrued payroll			114	1,010
	Short-term debt and current maturities of long-term debt			5,457	8,524
			Total current liabilities	9,749	15,124
Long-term debt, less current maturities				4,581	5,665
			Total Liabilities	14,330	20,789
Commitments and contingencies
Stockholders' equity:
	Preferred stock, shares authorized 5,000,000:
		Series A Convertible Preferred stock, $0.01 par value ($100
		liquidation preference value); shares authorized 150,000		--	--
	Common stock, $0.01 par value; shares authorized 50,000,000;
		issued and outstanding 20,941,706 and 19,424,533		209	194
	Additional paid-in capital			37,609	35,820
	Accumulated deficit			(25,803)	(23,308)
			Total Stockholders' Equity	12,015	12,706
Total Liabilities and Stockholders' Equity				$26,345	$33,495
				======	======

Hudson Technologies, Inc. and subsidiaries

Consolidated Statements of Operations

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


	Three Months Ended December 31,		Years Ended December 31,
	2009	2008	2009	2008
	(unaudited)
Revenues	$2,769	$2,871	$24,167	$33,167
Cost of sales	2,674	2,225	20,356	21,857
Gross Profit	95	646	3,811	11,310

Operating Expenses:
Selling and marketing	384	489	1,796	2,118
General and administrative	1,246	1,245	3,229	3,776
Total operating expenses	1,630	1,734	5,025	5,894


Operating income (loss)	(1,535)	(1,088)	(1,214)	5,416

Other income (expense):
Interest expense	(263)	(302)	(1,401)	(1,170)
Other income	1	--	1	3
Total other income (expense)	(262)	(302)	(1,400)	(1,167)

Income (loss) before income taxes	(1,797)	(1,390)	(2,614)	4,249

Income taxes (benefit) provision	(71)	(569)	(119)	(2,420)

Net income (loss)	($1,726)	($821)	($2,495)	$6,669
	=======	======	=======	======
Net income (loss) per common share - basic	($0.08)	($0.04)	($0.12)	$0.35
	======	======	======	======
Net income (loss) per common share - diluted	($0.08)	($0.04)	($0.12)	$0.33
	======	======	======	======
Weighted average number of shares outstanding - basic	20,941,706	19,409,761	20,054,000	19,271,530
	=========	=========	=========	=========
Weighted average number of shares outstanding - diluted	20,941,706	19,409,761	20,054,000	20,306,207
	=========	=========	=========	=========

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