Hudson Holding Corporation Announces Year End Results

JERSEY CITY, N.J., June 26 /PRNewswire-FirstCall/ -- Hudson Holding
Corporation (OTC Bulletin Board: HDHL.OB) announced that it filed its results
for the year ended March 31, 2009 with the Securities and Exchange Commission
today.

"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.

March 31, March 31,
2009 2008
Hudson Holding Corporation
Stockholders' equity $13,637,690 $12,075,398
Total assets $17,106,940 $17,323,538

Hudson Securities, Inc.
Net capital $6,109,286 $4,870,737
Excess net capital $5,109,286 $3,870,737

Hudson Holding Corporation is a publicly traded company on the OTC Bulletin
Board under the symbol "HDHL" and is the parent of Hudson Securities, Inc. and
Hudson Technologies, Inc. Hudson Securities, Inc. is dedicated to meeting the
liquidity needs of its clients -- institutions, hedge funds, asset managers,
and broker dealers -- by providing execution solutions and making markets in
over 15,000 U.S. and foreign securities and ADRs. As a registered
broker-dealer under the Securities Exchange Act of 1934, Hudson Securities is
a member of the Financial Industry Regulatory Authority ("FINRA") and has been
in business since 1984. Hudson Technologies provides technology services to
Hudson Securities and client companies.

Certain statements contained herein constitute "forward-looking statements"
within the meaning of the Private Securities Litigation Reform Act of 1995.
These forward-looking statements are based on current expectations, estimates
and projections about the Company's industry, management's beliefs and certain
assumptions made by management. Readers are cautioned that any such
forward-looking statements are not guarantees of future performance and are
subject to certain risks, uncertainties and assumptions that are difficult to
predict. Because such statements involve risks and uncertainties, the actual
results and performance of the Company may differ materially from the results
expressed or implied by such forward-looking statements. Given these
uncertainties, readers are cautioned not to place undue reliance on such
forward-looking statements. Unless otherwise required by law, the Company also
disclaims any obligation to update its view of any such risks or uncertainties
or to announce publicly the result of any revisions to the forward-looking
statements made here; however, readers should review carefully reports or
documents the Company files periodically with the Securities and Exchange
Commission.

HUDSON HOLDING CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS

For the Years Ended
March 31,
2009 2008
Revenues:
Sales and trading $23,285,148 $15,541,702
Commissions and fees 13,735,660 10,070,068
Net interest and other income 951,703 1,157,073
37,972,511 26,768,843

Expenses:
Salaries and related costs 8,590,451 5,266,839
Commissions, execution and clearing charges 22,598,246 14,781,058
Communications 5,820,328 5,012,413
Occupancy 1,200,317 1,388,005
Professional fees 1,696,264 1,063,603
Business development 845,623 773,788
Other 1,496,319 1,055,706
42,247,548 29,341,412

Loss before income tax benefit (4,275,037) (2,572,569)
Income tax benefit (663,038) (970,279)
Net loss $(3,611,999) $(1,602,290)

Loss per share - basic and diluted $(0.08) $(0.04)

Weighted average number of shares outstanding
- basic and diluted 43,939,810 36,725,185

HUDSON HOLDING CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION

As of March 31,
2009 2008
ASSETS
Cash and cash equivalents $ 6,694,914 $ 6,172,348
Cash - restricted 252,408 245,505
Receivable from clearing brokers 1,294,689 2,475,575
Securities owned, at fair value 2,246,488 2,423,257
Income taxes receivable 75,040 419,041
Furniture, equipment, capitalized
software and leasehold improvements, net 1,182,028 959,733
Deferred tax assets 1,515,000 705,000
Prepaid expenses and other assets 866,027 409,289
Prepaid compensation, net 1,869,167 2,402,611
Goodwill 1,111,179 1,111,179
$17,106,940 $17,323,538

LIABILITIES AND STOCKHOLDERS' EQUITY

Liabilities:

Accounts payable, accrued expenses
and other liabilities $ 1,461,774 $ 1,374,548
Commissions payable 1,259,987 1,070,511
Securities sold, but not yet purchased,
at fair value 637,829 2,778,081
Income taxes payable 60,827 25,000
Payable to clearing brokers 48,833 -

Total liabilities 3,469,250 5,248,140

Commitments and contingencies

Stockholders' equity:
Preferred stock, $0.001 par value,
1,000,000 shares authorized, none issued - -
Common stock, $0.001 par value;
200,000,000 shares authorized;
47,794,537 shares issued
and outstanding at March 31, 2009
and 36,725,185 shares issued and
outstanding at March 31, 2008 47,795 36,725
Additional paid-in capital 17,794,521 12,631,300
Accumulated deficit (4,204,626) (592,627)

Total stockholders' equity 13,637,690 12,075,398
$17,106,940 $17,323,538

Contacts: Martin C. Cunningham Keith R. Knox
Chairman & CEO President
201-216-0100 201-216-0100

SOURCE Hudson Holding Corporation

Martin C. Cunningham, Chairman & CEO, or Keith R. Knox, President, both of
Hudson Holding Corporation +1-201-216-0100