PEARL RIVER, NY – March 14, 2007 – 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 fourth quarter and year ending December 31, 2006.  

Revenues for the fourth quarter of 2006 were $2,771,000, a decrease of $130,000 from the $2,901,000 reported during the comparable 2005 period.  Net loss for the fourth quarter was ($110,000), or ($0.00) per share. This compares to net loss of ($151,000) for the fourth quarter of 2005, or ($0.01) per share. 

Revenues for the year ending December 31, 2006 were $23,451,000, an increase of $4,228,000 or 22% from the $19,223,000 reported during the comparable 2005 period. The Company also reported net income of $2,108,000, or $0.08 per share for 2006. This compares to net income of $2,270,000, or $0.09 per share, for the year ending December 31, 2005. The decrease in net income was primarily attributable to an increase in selling and administrative payroll expenses, as well as an increase in compensation expenses of $289,000 associated with the adoption of SFAS 123 (r) offset by the recognition of a deferred tax asset of $252,000.

Comments by Kevin J. Zugibe, Chairman and Chief Executive Officer, Hudson Technologies: 

“We continue to increase our revenues year-over-year, in line with our growth strategy. We experienced strong growth in our refrigerant revenues due to the expansion of our customer base and of our product line. As a result, in 2006, we increased the total number of refrigerant pounds sold and increased refrigerant revenues by more than $3 million as compared to 2005.   In addition, our higher-margin RefrigerantSide® Services revenues have increased by more than $1 million over last year, due to an increase in both the average size and number of service jobs completed compared to last year.

“Hudson remains poised for further expansion of revenues and of our customer base with significant accomplishments in 2006 that have the potential to contribute to the long-term growth of the company. For example, during 2006, we opened our second telesales office to initially concentrate on sales to the mid-Atlantic and Southeastern regions of the U.S. The expansion of our sales network provides new resources to markets that were previously underserved by Hudson and we believe represents a significant opportunity for Hudson going forward.

“Additionally, in 2006, we completed a total of 11 Steam Energy Savings Assessments at large industrial plants as part of the U.S. Department of Energy’s Save Energy Now Campaign. One of those assessments, conducted at an industrial plant of a Fortune Global 10 company, resulted in Hudson receiving additional work to create and implement a comprehensive energy optimization plan for that plant. In 2007, we will continue to perform Steam Energy Assessments on behalf of the U.S. DOE and leverage our optimization expertise to make new contacts and create new business opportunities.

“The management team is aligned and committed to profitably expanding Hudson’s services, capabilities and customer base, and to becoming a leader in moving the industry to predictive and preventative maintenance. We believe that by becoming branded and recognized in our industry as a leader in predictive and preventative maintenance services, we will fuel growth in our services business.”

Conference Call Information
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