(HDSN) Reports the EPA’s Issuance of Final Rule on HCFC Allowances

Hudson Technologies, Inc. (NASDAQ: HDSN), announced that on October 16, 2014 the Environmental Protection Agency (EPA) Administrator Gina McCarthy signed the final rule pertaining to allowances for virgin production of HCFCs, primarily R-22, for 2015 through 2019. The final rule, which was the lowest proposed approach, provides for virgin R-22 allowances of approximately 22 million pounds in 2015, 18 million pounds in 2016, 13 million pounds in 2017, 9 million pounds in 2018 and 4 million pounds in 2019, with a final ban on all production effective January 1, 2020.

Kevin Zugibe, Hudson’s Chairman and CEO, stated, “The EPA’s final rule provides much needed clarity to our industry and delivers a significantly more aggressive step down approach for the phase-out of R-22, which we have consistently stated is the best method to achieve an orderly phase-out of virgin R-22 and for the establishment of reclamation as the principal, and ultimately the sole source of supply of R-22. Under the EPA’s more aggressive approach, the 2015 allowances of 22 million pounds represent a nearly 60% reduction from the 2014 levels. As we approach 2020 when virgin R-22 production will be fully eliminated, the reclamation industry will become the primary provider of R-22 to service aftermarket demand. As one of the leading reclaimers in the marketplace, the R-22 phase-out provides a significant, long-term opportunity for Hudson.”

The final rule will become effective on the date of publication in the Federal Register. A pre-publication copy of the rule is available at: http://www.epa.gov/ozone/title6/downloads/CAA_Part_82A_2060_AR04_Final_Rule_Pre-pub_version_for_web_10-16-14.pdf

Mr. Zugibe continued, “Additionally, we are encouraged by last month’s announcement from the Administration related to new executive actions to curtail the production of HFCs, the next generation of refrigerants. We currently reclaim HFCs and have the capabilities to reclaim the next generation products so we are positioned to be a key player in supporting an orderly phase out as that evolves.”

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.

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Statements contained herein which are not historical facts constitute forward-looking statements. Such 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 laws and regulations affecting the industry, 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, risks associated with the Company’s joint ventures which include the ability of the parties to perform their obligations under the joint venture agreements, any delays or interruptions in bringing products and services to market, the timely availability of any requisite permits and authorizations from governmental entities and third parties as well as factors relating to doing business outside the United States, including changes in the laws, regulations, policies, and political, financial and economic conditions, including inflation, interest and currency exchange rates, of countries in which the joint ventures may seek to conduct business, the Company’s ability to successfully integrate any assets it acquires from third parties into its operations, 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.