**EXHIBIT        99.2**

**PRESS        RELEASE **

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

| **FOR                  IMMEDIATE RELEASE** |   | **June                  27, 2008** |
|--------------------------------------------|--------|------------------------------------|

**HUDSON        HOLDING CORPORATION RELEASES FULL YEAR AUDITED RESULTS;**

**PROFIT        IS GENERATED IN FOURTH QUARTER ON 83% REVENUE INCREASE**

**Jersey        City, NJ, June 27, 2008: Hudson Holding Corporation **

|                                     |   | (unaudited)                           |      |                          |   |      |   |
|------------------------------------------|--------|---------------------------------------|-----------|-------------------------------|--------|-----------|--------|
|                                     |   | Three                    Months Ended |      | Year                    Ended |   |
|                                     |   | March                    31,          |      | March                    31,  |   |
|                                     |   | 2008                                  |      | 2007                          |   | 2008      |   | 2007 |   |
|                                     |   |                                  |      |                          |   |      |   |   |   |
| Commissions                              |   | $                                     | 4,930,306 |                          | $      | 966,085   |   |   | 10,070,068 |   |   | 2,665,437 |   |
| Trading                    gains, net    |   |                                  | 4,541,806 |                          |   | 4,308,707 |   |   | 15,541,702 |   |   | 17,924,177 |   |
| Interest                    and other    |   |                                  | 397,023   |                          |   | 121,840   |   |   | 1,157,073 |   |   | 261,905 |   |
| Total                    revenues        |   | $                                     | 9,869,135 |                          | $      | 5,396,632 |   | $ | 26,768,843 |   | $ | 20,851,519 |   |
|                                     |   |                                  |      |                          |   |      |   |   |   |   |   |   |   |
| Net                    income (loss)     |   | $                                     | 381,516   |                          | $      | (391,292  | )      | $ | (1,602,290 | ) | $ | (383,108 | ) |
| Basic                    and diluted EPS |   | $                                     | 0.01      |                          | $      | (0.01     | )      | $ | (0.04 | ) | $ | (0.01 | ) |

*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        CONDENSED STATEMENTS OF OPERATIONS**

|                                                                       |   | **(unaudited)**                                             |       |                                |   |                          |   |
|----------------------------------------------------------------------------|--------|-------------------------------------------------------------|------------|------------------------------------------|--------|------------------------------------|--------|
|                                                                       |   | **Three                    Months Ended**    |       | **Years                    Ended**  |   |
|                                                                       |   | **March                    31,**                            |       | **March                    31,**         |   |
|                                                                       |   |                      **2008**                          |       | **2007**                                 |   |                      **2008** |   |                      **2007** |   |
|                                                                       |   |                                                   |       |                                |   |                          |   |    |   |
| **Revenues:**                                                              |   |                                                        |       |                                     |   |                               |   |   |   |   |   |   |   |
| Trading                    gains, net                                      |   | $                                                           | 4,541,806  |                                     | $      | 4,308,707                          |   | $ | 15,541,702 |   | $ | 17,924,177 |   |
| Commissions                                                                |   |                                                        | 4,930,306  |                                     |   | 966,085                            |   |   | 10,070,068 |   |   | 2,665,437 |   |
| Interest                    and other income, net                          |   |                                                        | 397,023    |                                     |   | 121,840                            |   |   | 1,157,073 |   |   | 261,905 |   |
|                                                                       |   |                                                        |       |                                     |   |                               |   |   |   |   |   |   |   |
|                                                                       |   |                                                        | 9,869,135  |                                     |   | 5,396,632                          |   |   | 26,768,843 |   |   | 20,851,519 |   |
|                                                                       |   |                                                        |       |                                     |   |                               |   |   |   |   |   |   |   |
| **Expenses:**                                                              |   |                                                        |       |                                     |   |                               |   |   |   |   |   |   |   |
| Salaries                    and related costs                              |   |                                                        | 1,863,678  |                                     |   | 1,033,400                          |   |   | 5,266,839 |   |   | 3,457,888 |   |
| Commissions,                    execution and clearing charges             |   |                                                        | 4,982,570  |                                     |   | 2,840,315                          |   |   | 14,781,058 |   |   | 10,461,863 |   |
| Communications                                                             |   |                                                        | 1,259,693  |                                     |   | 1,255,323                          |   |   | 5,012,413 |   |   | 4,450,497 |   |
| Occupancy                                                                  |   |                                                        | 270,728    |                                     |   | 349,628                            |   |   | 1,388,005 |   |   | 1,215,463 |   |
| Professional                    fees                                       |   |                                                        | 312,144    |                                     |   | 152,450                            |   |   | 1,063,603 |   |   | 549,792 |   |
| Business                    development                                    |   |                                                        | 225,998    |                                     |   | 113,249                            |   |   | 729,043 |   |   | 393,850 |   |
| Other                                                                      |   |                                                        | 278,808    |                                     |   | 234,860                            |   |   | 1,100,451 |   |   | 794,704 |   |
|                                                                       |   |                                                        |       |                                     |   |                               |   |   |   |   |   |   |   |
|                                                                       |   |                                                        | 9,193,619  |                                     |   | 5,979,225                          |   |   | 29,341,412 |   |   | 21,324,057 |   |
|                                                                       |   |                                                        |       |                                     |   |                               |   |   |   |   |   |   |   |
| **Income                    (loss) before income taxes**                   |   |                                                        | 675,516    |                                     |   | (582,593                           | )      |   | (2,572,569 | ) |   | (472,538 | ) |
| Income                    tax provision (benefit)                          |   |                                                        | 294,000    |                                     |   | (191,301                           | )      |   | (970,279 | ) |   | (89,430 | ) |
|                                                                       |   |                                                        |       |                                     |   |                               |   |   |   |   |   |   |   |
| **Net                    income (loss)**                                   |   | $                                                           | 381,516    |                                     | $      | (391,292                           | )      | $ | (1,602,290 | ) | $ | (383,108 | ) |
|                                                                       |   |                                                        |       |                                     |   |                               |   |   |   |   |   |   |   |
| Earnings                    (loss) per share - basic                       |   | $                                                           | 0.01       |                                     | $      | (0.01                              | )      | $ | (0.04 | ) | $ | (0.01 | ) |
| Earnings                    (loss) per share - diluted                     |   | $                                                           | 0.01       |                                     | $      | (0.01                              | )      | $ | (0.04 | ) | $ | (0.01 | ) |
|                                                                       |   |                                                        |       |                                     |   |                               |   |   |   |   |   |   |   |
| Weighted                    average number of shares outstanding - basic   |   |                                                        | 36,725,185 |                                     |   | 30,393,959                         |   |   | 36,725,185 |   |   | 30,393,959 |   |
|                                                                       |   |                                                        |       |                                     |   |                               |   |   |   |   |   |   |   |
| Weighted                    average number of shares outstanding - diluted |   |                                                        | 44,611,484 |                                     |   | 30,393,959                         |   |   | 36,725,185 |   |   | 30,393,959 |   |

----

**HUDSON        HOLDING CORPORATION AND SUBSIDIARIES**

**CONSOLIDATED        CONDENSED STATEMENT OF FINANCIAL CONDITION**

**(unaudited)**

|                                                                                                                                                                                                                                         |   |  **March,                  31** |       |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------------------------|------------|
|                                                                                                                                                                                                                                         |   |  **2008**                       |       |  **2007** |   |
| **ASSETS**                                                                                                                                                                                                                                   |   |                                 |       |   |   |   |   |
| Cash                  and cash equivalents                                                                                                                                                                                                   |   | $                                    | 6,172,348  |   | $ | 5,112,275 |   |
| Cash                  - restricted                                                                                                                                                                                                           |   |                                 | 245,505    |   |   | 235,837 |   |
| Receivable                  from clearing broker                                                                                                                                                                                             |   |                                 | 2,475,575  |   |   | 945,031 |   |
| Securities                  owned, at fair value                                                                                                                                                                                             |   |                                 | 2,423,257  |   |   | 14,188,748 |   |
| Income                  taxes receivable                                                                                                                                                                                                     |   |                                 | 419,041    |   |   | 613,266 |   |
| Furniture,                  equipment, capitalized software and leasehold improvements,                  net                                                                                                                                 |   |                                 | 959,733    |   |   | 478,077 |   |
| Deferred                  tax asset                                                                                                                                                                                                          |   |                                 | 705,000    |   |   | 79,000 |   |
| Other                  assets                                                                                                                                                                                                                |   |                                 | 409,289    |   |   | 269,873 |   |
| Prepaid                  compensation                                                                                                                                                                                                        |   |                                 | 2,402,611  |   |   | - |   |
| Goodwill                                                                                                                                                                                                                                     |   |                                 | 1,111,179  |   |   | 1,111,179 |   |
|                                                                                                                                                                                                                                         |   |                                 |       |   |   |   |   |
|                                                                                                                                                                                                                                         |   | $                                    | 17,323,538 |   | $ | 23,033,286 |   |
|                                                                                                                                                                                                                                         |   |                                 |       |   |   |   |   |
| **LIABILITIES                  AND STOCKHOLDERS' EQUITY**                                                                                                                                                                                    |   |                                 |       |   |   |   |   |
| Liabilities:                                                                                                                                                                                                                                 |   |                                 |       |   |   |   |   |
| Securities                  sold, but not yet purchased, at fair value                                                                                                                                                                       |   | $                                    | 2,778,081  |   | $ | 8,266,395 |   |
| Commissions                  payable                                                                                                                                                                                                         |   |                                 | 1,070,511  |   |   | 628,088 |   |
| Accrued                  expenses and other liabilities                                                                                                                                                                                      |   |                                 | 1,399,548  |   |   | 875,288 |   |
|                                                                                                                                                                                                                                         |   |                                 |       |   |   |   |   |
| Total                  liabilities                                                                                                                                                                                                           |   |                                 | 5,248,140  |   |   | 9,769,771 |   |
|                                                                                                                                                                                                                                         |   |                                 |       |   |   |   |   |
| Commitments                  and contingencies                                                                                                                                                                                               |   |                                 |       |   |   |   |   |
|                                                                                                                                                                                                                                         |   |                                 |       |   |   |   |   |
| Stockholders'                  equity:                                                                                                                                                                                                       |   |                                 |       |   |   |   |   |
| Preferred                  stock, $.001 par value, 1,000,000 shares authorized, none                  issued                                                                                                                                 |   |                                 | -          |   |   | - |   |
| Common                  stock, $.001 par value, 100,000,000 shares authorized, 41,445,185                  shares                  issued (includes 8,361,666 unvested restricted shares) and 36,725,185                  shares outstanding |   |                                 | 36,725     |   |   | 36,725 |   |
| Additional                  paid-in capital                                                                                                                                                                                                  |   |                                 | 12,631,300 |   |   | 12,217,127 |   |
| (Accumulated                  deficit) retained earnings                                                                                                                                                                                     |   |                                 | (592,627   | ) |   | 1,009,663 |   |
|                                                                                                                                                                                                                                         |   |                                 |       |   |   |   |   |
| Total                  stockholders' equity                                                                                                                                                                                                  |   |                                 | 12,075,398 |   |   | 13,263,515 |   |
|                                                                                                                                                                                                                                         |   |                                 |       |   |   |   |   |
|                                                                                                                                                                                                                                         |   | $                                    | 17,323,538 |   | $ | 23,033,286 |   |

----