**EXHIBIT
      99.1**




**PRESS
      RELEASE**




**Contacts:**





Martin
                C. Cunningham
            Keith
                R. KnoxChairman
                & CEO
            President201-216-0100
            201-216-0100FOR
                IMMEDIATE RELEASE
            MAY
                12, 2008




**HUDSON
      HOLDING CORPORATION ANNOUNCES PROFITABLE FOURTH QUARTER;**


**FOURTH
      QUARTER REVENUES UP 83%**




JERSEY
      CITY, NJ, MAY 12, 2008: HUDSON HOLDING CORPORATION (OTC Bulletin
      Board:HDHL.OB-News) announced that it generated a fourth quarter profit as
      a
      result of an 83% increase in revenues. Commission revenues increased 410% and
      278% for the three months and fiscal year ended March 31, 2008, to $4.9 million
      and $10.1 million from $1.0 million and $2.7 million during the same periods
      in
      the prior fiscal year, respectively, primarily due to an expansion of the
      institutional sales effort. Net trading gains increased 5% and decreased 13%
      for
      the three months and fiscal year ended March 31, 2008, to $4.5 million and
      $15.5
      million from $4.3 million and $17.9 million during the same periods in the
      prior
      fiscal year, respectively.




Total
      revenues increased 83% and 28% for the three months and fiscal year ended March
      31, 2008, to $9.9 million and $26.8 million from $5.4 million and $20.9 million
      during the same periods in the prior fiscal year, respectively. Hudson's results
      are currently being audited and more detailed results will be announced upon
      completion of the audit. However, as noted previously, the fourth quarter is
      expected to be profitable, erasing a portion of the previously announced nine
      month net loss.





Three
                Months Ended
              March
                31,
            
            Fiscal
                Year Ended
              March
                31,(unaudited;
                $000)
            
            2008
            
            2007
            
            2008
            
            2007Commissions
                and fees
            
            $
            4,930
            
            $
            966
            
            $
            10,070
            
            $
            2,665Trading
                gains, net
            
            
            4,542
            
            
            4,309
            
            
            15,542
            
            
            17,924Interest
                and other, net
            
            
            397
            
            
            122
            
            
            1,157
            
            
            263Total
                revenues
            
            $
            9,869
            
            $
            5,397
            
            $
            26,769
            
            $
            20,852




Hudson
      Holding Corporation is a holding company and is the parent of Hudson Securities,
      Inc. and Hudson Technologies Inc.. Hudson Securities is a registered
      broker-dealer under the Securities Exchange Act of 1934, a member of the
      National Association of Securities Dealers, Inc. and. meets the liquidity needs
      of brokers, dealers, institutions, and asset managers by making markets in
      over
      9,000 Nasdaq, non-Nasdaq OTC, listed and foreign securities, with particular
      expertise in trading Nasdaq SmallCap, OTC Bulletin Board, and Pink Sheet
      securities. 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.*