HUDSON TECHNOLOGIES ANNOUNCES
THIRD-QUARTER 2003 RESULTS

Increases RefrigerantSide® Revenues by 18%; Reduces Operating Expenses by 23%

PEARL RIVER, N.Y. – Nov. 13, 2003 – Hudson Technologies, Inc. (Nasdaq: HDSNC), a leading refrigerant services Company specializing in proprietary on-site decontamination services for large comfort and process cooling systems, today announced results for the third quarter ended September 30, 2003. 

Revenues for the third quarter totaled $3,988,000, versus $3,880,000 for the same period in 2002.  The increase in revenues was due to an 18% increase in the Company’s RefrigerantSide® Service revenues over the same period in 2002.  The Company reported a net loss of $589,000 and, after non-cash charges of $219,000 for payment-in-kind preferred stock dividends, a net loss per common share of $0.16.  For the same period in 2002, the Company reported a net loss of $855,000 and, after non-cash charges of $204,000 for payment-in-kind preferred stock dividends, a net loss per common share of $0.20.  The Company’s operating loss for the third quarter of 2003 was $415,000 compared to an operating loss of $776,000 for the third quarter of 2002.

Kevin J. Zugibe, chairman and chief executive officer, commented, “The Company is now starting to realize, in the form of revenues and cost savings, the benefits from the initiatives taken earlier in the year designed to achieve profitability based on our current level and mix of revenues.  On the cost side, Hudson’s selling expenses and its overall operating expenses in the third quarter of 2003 decreased 53% and 23%, respectively, from the same period in 2002.  We are on track to realize the $1.6 million in annual savings we planned to achieve through our rightsizing initiatives.”

Mr. Zugibe continued, “On the revenue side, we have increased our focus on the highest opportunity industries and customers for our RefrigerantSide® Services and are now producing more revenue per job with higher margins.  As a result, for the first time in two years, RefrigerantSide® Services revenues for the third quarter of 2003 exceeded the RefrigerantSide® Services revenues for the same period in 2002.  We believe that this quarter over quarter growth signals that Hudson’s plans to grow its service revenues are back on track. 

“Equally important is that we continue to grow our non-automotive refrigerant sales into the HVAC market.  Even though, as compared to the third quarter of 2002, refrigerant sales in the automotive sector were down this year due to unseasonably cool weather, this decrease was almost entirely offset by the growth of our non-automotive refrigerant sales.  As a result, our overall refrigerant sales in this year’s third quarter were essentially on a par with our refrigerant sales during the same period last year. 

 “Overall, our margins were down slightly due in part to $80,000 of non-recurring costs incurred in connection with the ongoing consolidation of our three refrigerant reclamation facilities into one new and larger facility in Champaign, Illinois.  We expect that the efficiencies gained from this consolidation will far outweigh the one-time costs incurred.  We are pleased with the progress this initiative is making.” 

Nine-Month Results
Revenues for the nine months ended September 30, 2003 totaled $14,729,000 compared to $16,760,000 for the same period in 2002.  The reduction in revenues was primarily due to a decrease in the sales price per pound and volume of refrigerant sales revenues attributable to the automotive aftermarket.  That decrease, however, was partially offset by a 13% increase in the Company’s non-automotive refrigerant sales over the same period in 2002.  The Company reported a net loss of $1,530,000 for the nine months ended September 30, 2003 and, after non-cash charges of $648,000 for payment in-kind preferred stock dividends, a net loss per common share of $0.42.  This compares to a net loss of $1,170,000 and, after non-cash charges of $599,000, a net loss per common share of $0.34 for the first nine months of 2002.

The Company’s operating loss for the first nine months of 2003, including a one-time charge of $350,000 related to the Company’s reorganization, totaled $989,000.  This compares to an operating loss of $1,177,000 for the first nine months of 2002.  To provide a more meaningful comparison of the 2002 and 2003 periods, excluding the one-time charge of $350,000, the Company’s non-GAAP operating loss for the first nine months of 2003 would have been $639,000.

The Company’s total other income for the first nine months of 2003 was $548,000 less than for last year’s same period.  There were two primary reasons for this change.  First, the Company’s 2002 results included a non-recurring gain of $232,000.  Second, the Company’s 2003 results included approximately $182,000 of non-recurring finance charges related to the replacement of the Company’s credit facility and amortization of original issue discount associated with its outstanding convertible debt.

Conference Call Information
The Company has scheduled a conference call for 4:00 p.m. ET on Thursday, Nov. 13 to discuss its second quarter results.  The dial-in number for the conference call is 706-634-0175.  A replay of the call will also be available through Thursday, Nov. 20, and can be accessed by dialing 706-645-9291, conference ID number 3911733. 

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)