HUDSON TECHNOLOGIES ANNOUNCES
FIRST-QUARTER 2004 RESULTS

PEARL RIVER, N.Y. – May 4, 2004 – Hudson Technologies, Inc. (Nasdaq: HDSN), a leading refrigerant services company specializing in proprietary on-site decontamination services for large comfort and process cooling systems, today announced results for the first quarter ended March 31, 2004.  

Revenues for the first quarter of 2004 totaled $3,745,000 versus $5,677,000 for the same period in 2003.  The Company reported an operating loss of $76,000 for the first quarter of 2004 compared to an operating loss of $234,000 for the same period last year.  For the 2004 quarter, the Company reported a net loss of $99,000 and, after non-cash charges of $228,000 for payment-in-kind preferred stock dividends, a net loss per common share of $0.04.  For the same period in 2003, the Company reported a net loss of $422,000 and, after non-cash charges of $218,000 for payment-in-kind preferred stock dividends, a net loss per common share of $0.12.  

Kevin J. Zugibe, chairman and chief executive officer, commented, “We continue to realize the benefits from the many steps that were taken in 2003 to “right size” our business and to focus our sales and marketing efforts on the highest opportunity customers.  Significantly, operating expenses for the first quarter of 2004 were reduced by $620,000, a one-third reduction from the same period in 2003.  Moreover, despite an overall decrease in revenues from last year’s first quarter due primarily to the declining market demand for CFC-based automotive refrigerants, sales of our RefrigerantSide® Services increased significantly.  As a result, the Company’s gross margin rose to 30.9% in the first quarter of 2004 versus 28.5% in the previous year’s same period.  The combination of reduced costs and increased service revenues enabled the Company to reduce its operating loss in the first quarter of 2004 by $158,000 or 67%.”

Mr. Zugibe continued, “Revenues from our ReferigerantSide® Services business during the first quarter of 2004 increased significantly compared to last year’s same period, both overall and on a revenues per job basis, continuing the trend that began in the third quarter of 2003.  In our traditional refrigerant sales and reclamation business, we continued our targeted marketing program aimed at growing Hudson’s non-automotive refrigerant sales.

“Our work with BOC is progressing well.  ReferigerantSide® Services are now being performed in the U.K. with Hudson’s state of the art ZugiBeast® system, and have begun to yield royalty revenues for the Company.  Moreover, we recently announced the execution of a technology and marketing agreement with BOC’s South African subsidiary, African Oxygen Limited, and expect to start calling on potential customers in that market by the end of the second quarter.” 

Conference Call Information
Hudson Technologies will conduct a conference call on Tuesday, May 4, at 10:00 a.m. Eastern time to discuss first-quarter-2004 results and additional matters.  The dial-in number for the call is 706-634-0175.  A replay of the call will also be available through May 11, 2004, and can be accessed by dialing 706-645-9291 and referencing conference ID #7137755.

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, which are provided through a nationwide network of service depots, 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), 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.

Hudson Technologies, Inc. and subsidiaries
Consolidated Statements of Operations
(unaudited)
(Amounts in thousands, except for share and per share amounts)