Company Expands Service Offerings and Continues Strong Momentum  
 

PEARL RIVER, N.Y. – November 2, 2006 – 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 third quarter and nine months ended September 30, 2006.  

Revenues for the third quarter of 2006 were $4,971,000, an increase of $453,000 or 10% from the $4,518,000 reported during the comparable 2005 period.  Net income for the third quarter was $674,000, or $0.03 per share, basic, which includes a $58,000 non-cash charge for share-based compensation due to the adoption of SFAS 123r as of January 1, 2006.  This compares to net income of $528,000 for the third quarter of 2005, or $0.02 per share, basic.   

Revenues for the nine months ended September 30, 2006 were $20,680,000, an increase of $4,358,000 or 27% from the $16,322,000 reported during the comparable 2005 period. For the first nine months of 2006, the Company reported net income of $2,218,000, or $0.09 per share, basic, which includes a $208,000 non-cash charge for share-based compensation due to the adoption of SFAS 123r as of January 1, 2006. This compares to net income of $2,421,000 for the first nine months of 2005, or $0.09 per share, basic.

Comments by Kevin J. Zugibe, chairman and chief executive officer, Hudson Technologies: 

“We are pleased to report yet another strong financial quarter, marking the twelfth time in the past thirteen quarters that we improved over our prior year’s results.  During the third quarter of 2006, total revenues increased by 10%, service revenues increased by 60% and net income increased by nearly 28%, as compared to the third quarter of 2005.  In fact, service revenues in the third quarter of 2006 increased $527,000 as compared to the third quarter of 2005, due to increases in both the size and number of service jobs performed.  For the first nine months of 2006, service revenues increased by more than $1 million over last year’s strong results for the comparable period. We remain profitable and are well positioned to experience future growth.

“Hudson continues to gain momentum with key milestone accomplishments. During the first nine months of 2006, we have completed nine Steam Energy Savings Assessments at large industrial plants as part of the U.S. Department of Energy’s Save Energy Now Campaign, and expect to be assigned additional assessments in 2007. While the revenues from these assessments have not been material to total service revenues, these assessments have led to the introduction to key corporate personnel at certain of these industrial facilities who have demonstrated interest in the predictive and preventative maintenance services that we offer for their refrigeration systems.  Furthermore, the company is looking to add resources in the coming months to help fuel continued sales growth.

“These milestones, and the consistent increases in sales and income, demonstrate our commitment to further develop and grow our customer base and are aligned with our vision to be the leader in moving the industry from reactive maintenance to predictive and preventative maintenance.”

Conference Call Information
To listen to today’s conference call, dial 866-296-6505. Callers should please call at least ten minutes prior to the scheduled start time (10:00 a.m. Eastern) and verbally give the operator the following access code: 7045414.  

An audio replay of the call will be available beginning November 2, 2006 at 1:00 p.m. Eastern for one week through November 9, 2006, and can be accessed by dialing 1-585-295-5445 and using the following access code: 93619362#.

A web stream replay of the call will be available for 30 days through December 2, 2006 at the following link: http://app.replayrecorder.com/budget?replaycode=93619362.

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.