Hudson Technologies REPORTS Second QUarter Results

 - Unseasonably Cool Temperatures Lead to Decreased Revenues -

pearl river, ny – AUgust 14, 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 second quarter and six months ended June 30, 2009. 

Revenues for the three months ended June 30, 2009 decreased 37% to $8,317,000 from $13,089,000 in the comparable 2008 period. Gross profit margins decreased to 23% for the second quarter of 2009 compared to 39% in the second quarter of 2008.  Hudson reported net income of $164,000 or $0.01 per diluted common share for the quarter ended June 30, 2009 compared to net income of $2,999,000 or $0.15 per diluted common share for the quarter ended June 30, 2008. 

For the six months ended June 30, 2009, Hudson reported revenues of $14,900,000 a decrease of 39% compared to revenues of $24,455,000 in the first six months of 2008.  Gross profit margins decreased to 20% for the first half of 2009, compared to 36% in the first half of 2008.  The Company reported a net loss of $111,000 or a loss of $0.01 per diluted common share for the six months ended June 30, 2009, compared to net income of $4,750,000 or $0.23 per diluted common share in the six months ended June 30, 2008. 

Kevin J. Zugibe, Chairman and Chief Executive Officer of Hudson Technologies commented, “As we indicated in our preliminary second quarter financial results press release, our second quarter performance fell significantly short of our expectations.  Simply put, during the second quarter we continued to experience a decline in the volume of our refrigerant sales due in large part to the unseasonably cold weather in the North and particularly the Northeastern portion of the United States and we anticipate that this decline in sales volume will result in decreased revenues in 2009 when compared to 2008.” 

“Despite the challenging first half of 2009, we remain very optimistic about the future of our business.  With the EPA-mandated hydrochlorofluorocarbon (HCFC) phase out just four months away, we have seen increased demand for our reclamation services and an increase in the number of pounds of refrigerant we have processed.  The EPA’s proposed regulations which, when finalized, would limit HCFC production in 2010 to just 80% of the EPA’s projected demand and will potentially create a 20% supply shortfall.  This projected supply gap will need to be filled with reclaimed or recycled refrigerant, which we believe will result in an approximately 300% increase in U.S. demand from current levels.  We believe our leadership role in the reclamation industry, strengthened by our proven infrastructure and the steps we have taken to expand our production and distribution capabilities, leave us well positioned to benefit from this mandated shift in our industry.” 

Mr. Zugibe concluded, “We are in close contact with our customers to ensure that we meet their needs as demand picks up and we remain committed to strategically positioning the Company to take full advantage of the changing regulatory environment.”  

CONFERENCE CALL INFORMATION

The Company will host a conference call to discuss the second quarter and six month results on August 14, 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 877-407-9210 approximately five minutes prior to the scheduled start time. International callers please dial 201-689-8049.

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 August 21, 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 330350.

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