Hudson Technologies reports third quarter, nine month results.

HILLBURN, N.Y.--(BUSINESS WIRE)--Nov. 13, 1995--Hudson Technologies Inc. (Nasdaq NM:HDSN) Monday announced that sales for the third quarter ended Sept. 30, 1995 increased to $3.8 million, compared with $144,776 reported for the third quarter of 1994.

For the nine months ended Sept. 30, 1995, sales were $19.8 million, versus $320,550 for the comparable nine months of 1994.

Net income for the third quarter was $261,576 or 7 cents per share fully diluted, compared with a net loss of $159,432 or a 12 cent loss per share for the third quarter of 1994. For the nine months, the company reported net income of $1.8 million or 45 cents per share fully diluted, versus a net loss of $218,224 or a 16 cent loss per share for the same period of 1994. Gross profit margin for the quarter was 44 percent, a strong improvement over the 34 percent margin for the first six months of the fiscal year.

President and CEO Kevin J. Zugibe commented, "We discontinued as of May 15 the purchase of refrigerants that had been imported from overseas, in order to be responsive to our US customers. Two things have happened as a result: first, our rate of revenue growth slowed somewhat for the June-to-September quarter as these relatively low-margin sales were factored out. Second, sales of Hudson `core operation' refigerant management services have increased, with a consequent strong surge in margins. It is our intention to devote our time and resources to this higher-margin business."

Zugibe said that the consolidation of the recently acquired RRCA (Refrigerant Reclamation Corp of America) is proceeding well, and Hudson will be making its proprietary, patented ZugiBeast technology available to RRCA customers as new equipment is manufactured. He said that the company's national accounts are either on plan or ahead of plan, and that Hudson's national account strategy is working very well.

CFO Stephen Cole-Hatchard said, "The exercise of our outstanding warrants commenced as of November 2, 1995, when the registration statement covering the underlying shares was declared effective. The transfer agent has already begun to receive some exercises, and these funds will be very helpful in expanding the reach of ZugiBeast technology."

Cole-Hatchard said that the company's balance sheet as of Sept. 30 had working capital of $2.7 million and a current ratio of 1.6:1. Stockholders' equity was $11.1 million. He added that "the exercise of the warrants is expected to substantially improve the balance sheet, especially with regard to cash, working capital, debt-to-equity ratio, current ratio, quick ratio and stockholders' equity."

Hudson Technologies was founded in 1991 and conducts refrigerant management programs from operations in New York, Florida, Illinois, Texas, Nevada, North Carolina and Louisiana. The company is equipped for the recovery and reclamation of all refrigerants currently in use, such as chloroflourocarbons (CFC's), which are regulated by the Environmental Protection Agency (EPA) under the authority of the Clean Air Act, as well as alternative refrigerants. -0-

                        HUDSON TECHNOLOGIES INC.
                       STATEMENTS OF OPERATIONS

                         Three Months Ended       Nine Months Ended
                              Sept. 30,               Sept. 30,
                          1995        1994        1995        1994

Net sales              $3,838,809  $  144,776 $19,777,293  $  320,550
Cost of sales           2,134,700      50,995  12,624,850     108,826
 Gross profit           1,704,109      93,781   7,152,443     211,724

Operating expenses:
 Selling                  139,513      43,764     679,883      52,235
 Administrative and
  general               1,195,926     168,027   3,418,433     275,100
    Total operating
     expenses           1,335,439     211,791   4,098,316     327,335

Income (loss) from
 operations               368,670    (118,010)  3,054,127    (115,611)

Other income (expense):
  Other income             13,900                  17,246
  Interest income           2,424         673      13,702         831
  Interest expense:
   Affiliates              (8,908)    (35,767)    (26,724)    (70,981)
   Other                  (73,492)     (6,328)   (122,022)    (32,463)
     Total other income
      (expense):          (66,076)    (41,422)   (117,798)   (102,613)

Income (loss) before
 income taxes          $  302,594  $ (159,432) $2,936,329  $ (218,224)
Income taxes               41,018               1,110,600

Net income (loss)         261,576    (159,432)  1,825,729    (218,224)

Net income (loss)
 per common and common
 stock equivalents        7 cents   (12 cents)   52 cents   (16 cents)
Weighted average
 number of shares
 outstanding            4,348,201   1,344,432   3,719,167   1,344,432

Net income (loss)
 per common stock
 assuming full dilution   7 cents   (12 cents)   45 cents   (16 cents)
Weighted average number
 of shares outstanding  4,348,201   1,344,432   4,243,507   1,344,432

CONTACT: South Coast Communications

Erik Randerson (investor relations)

Owen Daley (media)

714/252-8440