Hudson Technologies Reports First Quarter 2010 Results

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 first quarter ended March 31, 2010.

Revenues for the three months ended March 31, 2010 increased 38% to $9,083,000 from $6,583,000 in the comparable 2009 period. Gross profit margins decreased to 13% for the first quarter of 2010 compared to 17% in the first quarter of 2009. Operating expenses increased to $1,340,000 in the first quarter ended March 31, 2010 compared to $1,227,000 in the first quarter ended March 31, 2009. Hudson reported a net loss of $270,000, or $0.01 per basic and diluted share, for the first quarter of 2010, compared to a net loss of $275,000, or $0.01 per basic and diluted share for the first quarter of 2009.

Kevin J. Zugibe, Chairman and Chief Executive Officer of Hudson Technologies commented, "We are experiencing upward momentum in our business again. We now see that at this time last year we were experiencing a downward trend of lower prices and volumes. Today the inverse is true with increases in volume and the number of customers as well as modest price appreciation for the first time since 2008. While our net loss is similar to the first quarter of 2009, we believe we are positioned to drive enhanced margins and profitability going forward.”

"Revenues increased by 38%, but our gross margin in the quarter was impacted by a lower sales price compared to the same quarter last year. However, we began to see prices and gross margins improve late in the first quarter of 2010. We will have more visibility on future pricing and demand once the warmer weather arrives, and we believe that we will see a return toward historic gross profit margins as we proceed into the late spring and summer months of 2010.

"We remain optimistic for the prospects of growth in our reclamation business. As previously reported, effective January 1, 2010 the EPA limited the production of new hydrochloroflourocarbons ("HCFCs”) to 80% of the EPA’s projected U.S. aftermarket demand, thereby creating an approximately 20% shortfall in the U.S. supply of HCFC refrigerants. HCFCs are some of the most widely used refrigerants and are integral to the efficient operation of most large comfort and process cooling systems. Therefore, the estimated supply gap caused by the HCFC phase out will need to be filled with reclaimed or recycled refrigerant. Hudson is a recognized leader in the reclamation and recycling of refrigerants and these new EPA restrictions represent a tremendous opportunity for our business. As warmer weather arrives and a greater number of air conditioning and refrigeration systems go into operation, we believe that we will begin to see increases in the number of pounds of refrigerant being recovered and reclaimed.

"During this quarter we also began to make investments for our future and the expansion of the scope of our business, particularly towards energy optimization services and the developing carbon markets in the United States and throughout the world. For nearly a year we participated with the Climate Action Reserve ("CAR”) in the development of a new protocol to establish regulatory-quality standards for the destruction of ozone depleting substances and the generation of carbon credits. This protocol was approved this past February. We have entered into an international marketing alliance with EOS Climate, Inc. ("EOS”) designed to jointly develop carbon projects throughout the world and have already begun creating verifiable projects with EOS under the new CAR protocol. We are very excited by the growth opportunity in this area, which we believe is a natural extension of our effort to do our part to protect the environment and a complement to our existing business.”

CONFERENCE CALL INFORMATION

The Company will host a conference call to discuss the fourth quarter and year end results today, May 5, 2010 at 10:00 A.M. Eastern Time.

To access the live webcast log onto the Hudson Technologies website at www.hudsontech.com and click on "Investor Relations”.

To participate in the call by phone, dial 877-307-1372 approximately five minutes prior to the scheduled start time. International callers please dial 678-894-3936.

A replay of the webcast will be available until May 12, 2010 and may be accessed by dialing 800-642-1687 and international callers may dial 706-645-9291. Callers should use pass code 71093681.

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.