Hudson Technologies REPORTS 23% INCREASE IN 2008 REVENUES

2008 OPERATING INCOME TO $5.4 MILLION

pearl river, ny – March 6, 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 results for the fourth quarter and year ended December 31, 2008.

Revenues for the year ended December 31, 2008 increased 23% to $33,167,000 from $26,894,000 in 2007. Gross profit margins increased to 34% for the 2008 fiscal year compared to 25% in 2007.  Operating income also increased to $5,416,000 in 2008 compared to an operating loss of $2,354,000 in 2007.  The Company reported net income of $6,669,000 or $0.35 and $0.33 per basic and diluted common share, respectively, for the year ended December 31, 2008 compared to a net loss of $1,961,000 or $0.09 per basic and diluted common share for the year ended December 31, 2007. The increase in 2008 net income is mainly attributed to increased gross profit from an increase in refrigerant revenues, the absence of $4,338,000 of compensation expense recorded in the 2007 period, as well as an increase in the income tax benefit recorded in 2008 when compared to 2007.

Revenues for the three months ended December 31, 2008 were $2,871,000 compared to $2,732,000 in the same period of 2007.  Gross profit margins declined to 23% in the fourth quarter of 2008 compared to 27% in the fourth quarter of 2007.  In the fourth quarter of 2008, Hudson reported a net loss of $821,000 or $0.04 per basic and diluted common share compared to a net loss of $986,000 or $0.05 per basic and diluted common share in the fourth quarter of 2007.     

Kevin J. Zugibe, Chairman and Chief Executive Officer of Hudson Technologies commented, “The fourth quarter, which is always our slowest given the seasonality of the refrigerants business, caps off a very strong year for the Company in which we demonstrated solid revenue growth and a significant increase in net income.  We are continuing to position ourselves to capitalize on the opportunities that we expect to see with the January 2010 federally mandated phase down in the production of new (virgin) HCFC refrigerants. The EPA has proposed to reduce, effective January 1, 2010, the total amount of HCFCs that can be produced and imported to 80% of the EPA’s estimated and projected demand for 2010.  In proposing these reductions, the EPA expects that at least 20% of the demand will be met by reclaimed or recycled refrigerant, which would require a significant increase in reclamation from current levels.  As such, reclaimed refrigerant will be essential to make up the supply shortfall and to service the entire spectrum of existing units from small residential A/C units to large tonnage chillers that require HCFCs to function properly.  As an industry leader with proven infrastructure and distillation capabilities, we expect to benefit from this industry shift.”   

Mr. Zugibe continued, “Heading into 2009, we are of course cognizant of the current economic climate and we will have more clarity on how the overall economy may or may not affect our business during the second quarter.  That being said, the economic climate does not dampen the significant opportunity in front of us with the upcoming catalytic shift that will impact our industry in 2010 and we are committed to strategically positioning the Company to take full advantage of this change to our marketplace,” Mr. Zugibe concluded.

CONFERENCE CALL INFORMATION

The Company will host a conference call to discuss the fourth quarter and year end results on March 6, 2009 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”. The webcast can also be accessed at www.InvestorCalendar.com .

To participate in the call by phone, dial 877-407-0778 approximately five minutes prior to the scheduled start time. International callers please dial 201-689-8565.

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 13, 2009 and may be accessed domestically by dialing 877-660-6853 and international callers may dial 201-612-7415.  Callers should use account number 286 and pass code 315432.

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

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

 

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,
	2008		2007			2008				2007
	(unaudited)
Revenues	$2,871		$2,732			$33,167				$26,894
Cost of sales	2,225		1,993			21,857				20,041
Gross Profit	646		739			11,310				6,853
Operating Expenses:
Selling and marketing	489		274			2,118				1,514
General and administrative Compensation expense for stock purchases	1,245       --		1,118       --			3,776        --				3,355 4,338
Total operating expenses	1,734		1,392			5,894				9,207
Operating income (loss)	(1,088)		(653)			5,416				(2,354)
Other income (expense):
Interest expense	(302)		(228)			(1,170)				(768)
Other income	---		7			3				22
Total other income (expense)	(302)		(221)			(1,167)				(746)
Income (loss) before income taxes	(1,390)		(874)			4,249				(3,100)
Income taxes (benefit) provision	(569)		112			(2,420)				(1,139)
Net income (loss)	($821)		($986)			$6,669				($1,961)
	=======		=======			=======				=======
Net income (loss) per common share - basic	($0.04)		($0.05)			$0.35				($0.09)
	=======		=======			=======				=======
Net income (loss) per common share - diluted	($0.04)		($0.05)			$0.33				($0.09)
	=======		=======			=======				=======
Weighted average number of shares outstanding - basic	19,409,761		19,072,264			19,271,530				22,214,197
	=========		=========			=========				=========
Weighted average number of shares outstanding - diluted	19,409,761		19,072,264			20,306,207				22,214,197
	=========		=========			=========				=========
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