HUDSON TECHNOLOGIES REPORTS NET INCOME OF $301,000 FOR
THIRD QUARTER OF 2004

Company Posts Second Consecutive Quarter of Profitability
Realizes $2.2 Million Improvement in Profitability over First Nine Months of 2004

PEARL RIVER, N.Y. – November 5, 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 third quarter ended September 30, 2004.

Revenues for the third quarter of 2004 totaled $3,571,000 versus $3,998,000 for the same period in 2003. For the 2004 third quarter, the Company reported net income of $301,000, or $0.01 per common and diluted share. This compares with a net loss of $(589,000) for the same period last year, which, after non-cash charges of $219,000 for payment-in-kind preferred stock dividends, resulted in a net loss per common and diluted share of $(0.16).

Revenues for the nine months ended September 30, 2004 totaled $11,747,000 compared to $14,729,000 for the same period in 2003. For the first nine months of 2004, the Company reported net income of $716,000, which, after non-cash charges of $228,000 for payment-in-kind preferred stock dividends, resulted in net income per common and diluted share of $0.02. This compares to a net loss of $(1,530,000) for the first nine months of 2003, which, after non-cash charges of $648,000 for payment-in-kind preferred stock dividends, resulted in a net loss per common and diluted share of $(0.42).

Kevin J. Zugibe, chairman and chief executive officer, commented, “What a difference a year makes! In 2003 we reduced our costs and identified structural and procedural changes to the way we do business in an effort to achieve and sustain profitable operations. In 2004 we began to implement these changes and have steadily improved our sales and marketing efforts. The results of these efforts have been nothing short of dramatic. For the third quarter of 2004, the Company achieved $301,000 of net income, marking Hudson’s second consecutive quarter of profitability and best third quarter performance in eight years.

“Each of the changes made by the Company has been designed to focus our sales and marketing efforts in the right markets and on the right customers, with the expectation that gross profit margins would rise across all business lines. That expectation has been realized thus far. In the third quarter of 2004, the Company’s overall gross profit margins rose to 39%, as compared to 26% in the third quarter of 2003. This continued Company-wide focus on improving our margins allowed us to improve Hudson’s bottom-line financial performance by more than $2.2 million over the first nine months of 2004, as compared to the same period in 2003.

“On the service side, we focused on serving higher opportunity customers and performed larger, more complex, value-added projects. As a result, we achieved substantial growth in our higher margin RefrigerantSide® Services business, with service revenues in the third quarter of 2004 accounting for 29% of our business, as compared to 21% in the third quarter of 2003.

“We are also seeing positive results in our traditional reclamation and refrigerant business. We have targeted our sales and marketing efforts to those customers that complement and support our RefrigerantSide® Services, thereby decreasing our reliance on high revenue, but low margin, automotive refrigerant sales.

Mr. Zugibe concluded, “In addition to successfully executing on our strategy here in the U.S., our alliance with BOC continues to move forward. We have now completed the training of personnel and delivered our patented and proprietary equipment to BOC’s affiliate in South Africa. Our RefrigerantSide® Services should therefore begin to generate revenues in South Africa late in the fourth quarter of 2004.”

Conference Call Information
Hudson Technologies will conduct a conference call on Friday, November 5, at 10:00 a.m. Eastern time to discuss third-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 November 12, 2004, and can be accessed by dialing 706-645-9291 and referencing conference ID #1373289.

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), 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)

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