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Hudson Technologies Reports 23% Increase in Third Quarter Revenues

November 5, 2008

Hudson Technologies, Inc. (NASDAQ: HDSN), a leading distributor and reclaimer of refrigerants as well as a provider of proprietary on-site decontamination services for large comfort and process cooling systems, announced results for the third quarter and nine months ended September 30, 2008.

The Company reported revenues of $5,841,000 for the third quarter of 2008, an increase of 23% from $4,738,000 reported in the same quarter last year, primarily due to increases in both sales price and pounds of refrigerant sold. Operating income rose 9% for the quarter ended September 30, 2008 to $642,000 compared to $591,000 in the quarter ended September 30, 2007. Net income for the third quarter of 2008, including an income tax benefit of $2,395,000, was $2,739,000, or $0.14 per basic common share, compared to $357,000, or $0.02 per basic common share for the same period of 2007.

For the nine months ended September 30, 2008 the Company reported revenues of $30,296,000, an increase of 25% compared to $24,162,000 reported in the nine months ended September 30, 2007. Gross profit margins for the first nine months of 2008 increased to 35% from 25% in the first nine months of 2007. Operating income for the nine months ended September 30, 2008 was $6,500,000, compared to an operating loss in the nine months ended September 30, 2007 of $1,700,000. The 2007 results included a $4,338,000 non-cash compensation charge related to certain stock purchases. Net income for the first nine months of 2008 was $7,490,000, or $0.39 per basic common share, versus a loss of $975,000, or $0.04 per basic common share, in the first nine months of 2007.

Kevin J. Zugibe, Chairman and Chief Executive Officer of Hudson Technologies commented, “As January 2010 approaches, our industry is preparing for the federally mandated phase out for new (virgin) HCFC production. This phase out will limit and ultimately ban production of virgin HCFC refrigerants, while allowing for re-use, through reclamation, of HCFC refrigerants in order to meet the industry’s service needs for decades to come. As production of virgin HCFC refrigerants declines and eventually ends, the demand for reclaimed HCFC refrigerants is expected to increase. Large process and comfort cooling systems that require HCFCs to function efficiently are expensive pieces of equipment with service lives of twenty years or more. Particularly in light of the current economic climate, it is likely that users and operators of these cooling systems will seek to fully recoup their investment in these systems by maximizing their length of service, thereby further supporting and extending the demand for reclaimed refrigerant. Therefore, as we saw during the CFC phase out in the 1990s, we have every reason to believe that refrigerant prices will continue to rise and that the demand for refrigerant reclamation and for reclaimed refrigerant will grow. We believe that the overall market and, therefore, the opportunity relative to HCFC refrigerants is more that twice the market opportunity that existed with the CFC phase out. “

Mr. Zugibe continued “We are already observing the industry’s reaction to the impending HCFC phase out in the form of significant increases in the price of HCFC refrigerants and heightened demand for our reclamation services. These increases have resulted in higher revenues and strong earnings for our business, which has allowed us to invest our cash flow to support our anticipated double digit revenue growth for the foreseeable future. The reclamation industry is very fragmented and some amount of consolidation is likely in the years to come. Hudson is one of, if not the largest reclamation company, and we believe that we have the opportunity to further expand our business as demand for reclamation and reclaimed refrigerants grows.”

CONFERENCE CALL INFORMATION

The Company will host a conference call to discuss the third quarter and nine-month results on November 5, 2008, at 10:00 A.M. Eastern Time.

To participate in the conference call, dial 866-334-3876 approximately five minutes prior to the start time. International callers please dial 416-849-4292.

A replay of the teleconference will be available until November 12, 2008 and may be accessed domestically by dialing 866-245-6755 and international callers may dial 416-915-1035. Callers should use pass code 271809.

A webcast of the conference call will be available on the company’s website, http://www.hudsontech.com or at http://www.investorcalendar.com.

About Hudson Technologies

Hudson Technologies, Inc. is a leading provider of innovative solutions to recurring problems within the refrigeration industry. Hudson’s proprietary RefrigerantSide(R) 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(R) 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.

 Hudson Technologies, Inc. and subsidiaries Consolidated Statements of Operations (unaudited) (Amounts in thousands, except for share and per share amounts)  Three month period         Nine month period ended September 30,       ended September 30, ------------------------- ------------------------- 2008         2007         2008         2007 ------------ ------------ ------------ ------------  Revenues           $     5,841  $     4,738  $    30,296  $    24,162 Cost of sales            3,917        3,131       19,632       18,048 ------------ ------------ ------------ ------------ Gross Profit             1,924        1,607       10,664        6,114 ------------ ------------ ------------ ------------ Operating expenses: Selling and marketing              510          352        1,629        1,240 General and administrative         772          664        2,531        2,237 Compensation expense for stock purchases               --           --           --        4,338 ------------ ------------ ------------ ------------ Total operating expenses           1,282        1,016        4,160        7,815 ------------ ------------ ------------ ------------  Operating income (loss)                    642          591        6,504       (1,701) ------------ ------------ ------------ ------------  Other income (expense): Interest expense               (299)        (235)        (868)        (540) Interest income           1            4            3           15 ------------ ------------ ------------ ------------ Total other income (expense)           (298)        (231)        (865)        (525) ------------ ------------ ------------ ------------  Income (loss) before income taxes                     344          360        5,639       (2,226)  Income tax provision (benefit)              (2,395)           3       (1,851)      (1,251) ------------ ------------ ------------ ------------  Net income (loss)  $     2,739  $       357  $     7,490       ($ 975) ============ ============ ============ ============  Net income (loss) per common share - Basic           $      0.14  $      0.02  $      0.39       ($0.04) ============ ============ ============ ============  Net income (loss) per common share - Diluted         $      0.13  $      0.02  $      0.36       ($0.04) ============ ============ ============ ============  Weighted average number of shares outstanding - Basic              19,409,761   20,234,664   19,262,425   24,021,864 ============ ============ ============ ============ Weighted average number of shares outstanding - Diluted            20,979,713   20,400,704   20,523,254   24,021,864 ============ ============ ============ ============ 




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