New Facility Optimizes Processing Efficiency in Preparation for Upcoming EPA Phase Out of R-22 Refrigerants

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, today announced that it has opened a new 60,000 square foot warehouse and reclamation facility in Champaign, Illinois. The new facility complements Hudson’s existing 50,000 square foot facility and will increase Hudson’s production capacity and processing efficiency for the reclamation of refrigerants.

Kevin J. Zugibe, Chairman and Chief Executive Officer of Hudson Technologies commented, “Hudson is an established leader in the reclamation industry, and to maintain and strengthen that leadership position we needed to increase our reclamation capacity in preparation for what is estimated to be a nearly four-fold increase in the reclamation of HCFC refrigerants. The upcoming EPA phase out of HCFCs, now less than 7 months away, will reduce the supply of new HCFC refrigerants by more than 60% from current levels. As a result, the EPA has estimated that as of January 1, 2010 the demand for HCFC refrigerants needed to service existing equipment will exceed the available supply of new HCFC refrigerants by approximately 20%. This 20% supply gap is expected to be filled by reclaimed and recycled refrigerant.

“Earlier this year we announced the introduction of the Hudson Platinum Program as an all inclusive reclamation offering specifically designed to assist customers in maximizing the recovery and reclamation of HCFC refrigerants. We have already had a very good response from our customers and we believe that our Platinum Program will continue to demonstrate Hudson’s leadership throughout the upcoming phase out.

“In preparation for the phase out, we reviewed our operations and refined our manufacturing processes to recognize greater efficiencies on a ‘per pound’ basis, and with our proven reclamation infrastructure and production model, we were able to ramp up the new facility quickly and with minimal capital investment. With this new facility we have increased our capacity and have taken a critical step towards addressing the sweeping changes soon to impact our industry and the anticipated increase in reclamation activity that we believe those changes will bring in the coming years.