Date 11/05/2008

Hudson Technologies Reports 23% Increase in Third Quarter Revenues
PEARL RIVER, N.Y.-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.”