"We're pleased with the steady annual revenue growth that Hudson achieved despite a disappointing fourth quarter, which saw a decline in revenues, due to overall market conditions," said Marty Cunningham, Hudson's Chairman and Chief Executive Officer. "While the market environment is difficult," Mr. Cunningham continued "we're fortunate to be seeing more opportunities to add seasoned producers and/or complementary business lines. Our loss is largely driven by recruitment and retention costs due to expansion."

                                                        Years Ended                                                         March 31,                                                   2009             2008   Sales and trading                          $ 23,285,148     $ 15,541,702   Commissions and fees                         13,735,660       10,070,068   Interest and other income                       951,703        1,157,073   Total revenues                             $ 37,972,511     $ 26,768,843    Net loss                                   $ (3,611,999)    $ (1,602,290)   Basic and diluted EPS                      $      (0.08)    $      (0.04)   

Total revenues increased 42% for the year ended March 31, 2009, to approximately $38 million from $26.8 million during the same period in the prior fiscal year. Sales and trading revenues increased to approximately $23.3 million from approximately $15.5 million during the prior fiscal year, due to the addition of sales traders and a significant customer which comprised 18% of total revenues during fiscal 2009. Commissions and fee revenues increased to $13.7 million from $10.1 million during the prior fiscal year, due to an expansion of our institutional sales effort. Interest and other income decreased to $1.0 million from $1.2 million during fiscal 2009, primarily due to a decrease in introductory brokerage services revenues.

The pre-tax loss was $4.3 million as compared to a $2.6 million pre-tax loss during the prior year, as expenses increased by $12.9 million, primarily as a result of a $7.8 million increase in variable costs (commissions, execution, and clearing costs) and a $3.3 million increase in salaries and related costs, due to an increase in recruitment and retention costs. Recruitment and retention costs (stock-based compensation and other recruiting incentives) increased to approximately $3.7 million during fiscal 2009, from $1.0 million during the prior fiscal year, primarily due to costs associated with hiring additional sales traders. Income taxes were a benefit of $0.7 million as compared to a benefit of $1.0 million during the prior year, which included a current year increase in the deferred tax valuation allowance. The net loss increased to approximately $3.6 million during fiscal 2009, from net loss of $1.6 million during the prior fiscal year.