HUDSON TECHNOLOGIES FIRST QUARTER 2008 REVENUES INCREASE 40% TO $11.4 MILLION; EARNINGS PER SHARE $0.09 VERSUS $0.01 FOR COMPARABLE 2007 QUARTER

pearl river, ny – maY 7, 2008 – 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 first quarter ended March 31, 2008.

The Company reported record first quarter revenues of $11,366,000 for the quarter ended March 31, 2008, an increase of 40% from $8,117,000 reported in the same quarter last year.  Gross profit margins also increased to 31.6% in the first quarter of 2008 as compared to 19.2% in the first quarter of 2007.  Net income rose to $1,751,000 in the first quarter of 2008, or $0.09 per common share, compared to $283,000, or $0.01 per common share for the same period of 2007.

 Kevin J. Zugibe, Chairman and Chief Executive Officer of Hudson Technologies commented, “While we typically see increased sales activity during the first half of the year, the level of our refrigerant sales during the first quarter of 2008 was unprecedented.  Through long term planning and initiatives over the past few years, including investments to expand our direct sales and telemarketing resources, we were able to sell refrigerants to a broader and more diverse customer base.”

“The air conditioning and refrigeration industry is at a unique juncture as it prepares for the phase out, and ultimate ban, on the production of HCFC refrigerants set to begin in 2010.  Over 60% of the current $1 billion refrigerant market is comprised of HCFCs and many large-scale chillers, which are costly to replace and have long life spans, were designed to run efficiently using HCFC gas.  We believe that we are well positioned to benefit from the change in market dynamics that began in earnest during the first quarter of 2008, providing increases in the sales prices of HCFC refrigerants.  We expect these anticipated increases in refrigerant sales prices will not only fuel our revenue growth but should drive increases in our reclamation business in the near and long term.”

Mr. Zugibe continued, “The change in market dynamics should provide Hudson with a unique opportunity to grow its reclamation business.  Hudson is already an established market leader for refrigerant reclamation.  As manufacturers become progressively limited in the number of pounds of new HCFC refrigerant they can produce annually, reclamation will fill the supply gap of HCFC refrigerants and we believe that the reclamation business will grow considerably throughout the phase out of HCFC production and beyond.  EPA studies have concluded that refrigerant reclamation will be needed to fill the supply gaps that are expected during the phase-out period and through the useful lives of operating systems that use HCFC gas, which could span more than twenty years.  Hudson became one of the largest reclaimers during the CFC phase-out in the 1990s, due to its superior equipment and infrastructure.  Because of the widespread use of HCFCs, the upcoming HCFC phase-out will be on a much larger scale.  Accordingly, we believe that the market  opportunities in the future for reclamation arising out of the phase-out of HCFC refrigerants and the transition to the newer HFC refrigerants will be many times greater than during the 1990s and we believe that Hudson is now even better positioned to benefit from these market opportunities.”

“To further enhance our positioning in the reclamation market, we recently hired a former Honeywell sales executive, George Dinsmore, as our Director of Business Development, an addition that we believe will further drive Hudson’s core reclamation business.  George has already made strides in solidifying and expanding our relationships with market partners with access and connections to sources of used refrigerants that can be reclaimed.”

CONFERENCE CALL INFORMATION

The Company will host a conference call to discuss the fourth quarter and year-end results on May 7, 2008, at 10:00 A.M. Eastern Time.

To participate in the conference call, dial 866-585-6398 approximately five minutes prior to the start time.  International callers please dial 416-849-9626.

A replay of the teleconference will be available until May 14, 2008 and may be accessed domestically by dialing 866-245-6755 and international callers may dial 416-915-1035.  Callers should use pass code 294590.

A webcast of the conference call will be available on the company’s website, http://www.hudsontech.com or at http://www.investorcalendar.com.

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 Income Statements

(unaudited)

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

				Three month period ended March 31,
					2008	2007
Revenues					$11,366	$8,117
Cost of sales					7,770	6,559
Gross Profit					3,596	1,558
Operating expenses:
	Selling and marketing				551	408
	General and administrative				989	737
			Total operating expenses		1,540	1,145
Operating income					2,056	413
Other income (expense):
	Interest expense				(254)	(139)
	Interest income				1	9
		Total other income (expense)			(253)	(130)
Income before taxes					1,803	283
Income taxes					52	- -
Net income					$1,751	$283
					=========	=========

          ________________________             

Net income per common share - basic and diluted		$0.09	$0.01
		========	========
Weighted average number of shares
	outstanding – Basic	19,072,264	25,915,464
		==========	==========
Weighted average number of shares
	outstanding – Diluted	19,521,362	26,071,659