**EXHIBIT      99.1**

**PRESS      RELEASE **

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

| **FOR                IMMEDIATE RELEASE** |   | **June                29, 2007** |
|------------------------------------------|--------|----------------------------------|

**HUDSON      HOLDING CORPORATION CONTINUES EXPANSION**

**Jersey      City, NJ, June 29, 2007: Hudson Holding Corporation **

|                                   |   | Year                  Ended |       |
|----------------------------------------|--------|-----------------------------|------------|
|                                   |   | March                  31,  |       |
|                                   |   | 2007                        |       | 2006 |   |
|                                   |   |                        |       |   |   |
| Revenues                               |   | $                           | 20,851,519 |   | $ | 20,224,286 |   |
| Net                  (loss) income     |   | $                           | (383,108   | ) | $ | 783,825 |   |
| Basic                  and diluted EPS |   | $                           | (0.01      | ) | $ | 0.04 |   |

|                                  |   | At                  March 31, |       |
|---------------------------------------|--------|-------------------------------|------------|
|                                  |   | 2007                          |       | 2006 |   |
|                                  |   |                          |       |   |   |
| Stockholders'                  equity |   | $                             | 13,263,515 |   | $ | 8,092,682 |   |
| Total                  assets         |   | $                             | 23,033,286 |   | $ | 10,865,869 |   |

*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. *

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**HUDSON      HOLDING CORPORATION AND SUBSIDIARIES**

**CONSOLIDATED      STATEMENTS OF OPERATIONS**

|                                                                   |   | **Year                Ended March 31,** |       |
|------------------------------------------------------------------------|--------|-----------------------------------------|------------|
|                                                                   |   | **2007**                                |       | **2006** |   |
|                                                                   |   |                                    |       |   |   |
| **Revenues:**                                                          |   |                                    |       |   |   |   |   |
| Trading                gains, net                                      |   | $                                       | 17,924,177 |   | $ | 17,621,676 |   |
| Commissions                                                            |   |                                    | 2,665,437  |   |   | 2,539,737 |   |
| Interest                and other income, net                          |   |                                    | 261,905    |   |   | 62,873 |   |
|                                                                   |   |                                    | 20,851,519 |   |   | 20,224,286 |   |
|                                                                   |   |                                    |       |   |   |   |   |
| **Expenses:**                                                          |   |                                    |       |   |   |   |   |
| Salaries                and related costs                              |   |                                    | 3,457,888  |   |   | 2,948,861 |   |
| Commissions                and clearing charges                        |   |                                    | 9,395,294  |   |   | 9,327,598 |   |
| Communications                                                         |   |                                    | 5,517,066  |   |   | 4,584,858 |   |
| Occupancy                                                              |   |                                    | 1,215,463  |   |   | 522,774 |   |
| Professional                fees                                       |   |                                    | 549,792    |   |   | 551,844 |   |
| Business                development                                    |   |                                    | 393,850    |   |   | 390,383 |   |
| Other                                                                  |   |                                    | 794,704    |   |   | 645,143 |   |
|                                                                   |   |                                    | 21,324,057 |   |   | 18,971,461 |   |
|                                                                   |   |                                    |       |   |   |   |   |
| **(Loss)                income before income taxes**                   |   |                                    | (472,538   | ) |   | 1,252,825 |   |
| Income                tax (benefit) provision                          |   |                                    | (89,430    | ) |   | 469,000 |   |
| **Net                (loss) income**                                   |   | $                                       | (383,108   | ) | $ | 783,825 |   |
|                                                                   |   |                                    |       |   |   |   |   |
| (Loss)                earnings per share - basic                       |   | $                                       | (0.01      | ) | $ | 0.04 |   |
| (Loss)                earnings per share - diluted                     |   | $                                       | (0.01      | ) | $ | 0.04 |   |
|                                                                   |   |                                    |       |   |   |   |   |
| Weighted                average number of shares outstanding - basic   |   |                                    | 30,393,959 |   |   | 21,910,067 |   |
| Weighted                average number of shares outstanding - diluted |   |                                    | 30,393,959 |   |   | 22,153,119 |   |

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**HUDSON      HOLDING CORPORATION AND SUBSIDIARIES**

**CONSOLIDATED      STATEMENT OF FINANCIAL CONDITION**

**MARCH      31, 2007**

| **ASSETS**                                                                                               |   |   |       |
|----------------------------------------------------------------------------------------------------------|--------|--------|------------|
|                                                                                                     |   |   |       |   |
| Cash                and cash equivalents                                                                 |   | $      | 5,112,275  |   |
| Cash-restricted                                                                                          |   |   | 235,837    |   |
| Receivable                from clearing broker                                                           |   |   | 945,031    |   |
| Securities                owned, at fair value                                                           |   |   | 14,188,748 |   |
| Income                taxes receivable                                                                   |   |   | 613,266    |   |
| Furniture,                equipment, capitalized software and leasehold improvements,                net |   |   | 478,077    |   |
| Deferred                tax asset                                                                        |   |   | 79,000     |   |
| Other                assets                                                                              |   |   | 269,873    |   |
| Goodwill                                                                                                 |   |   | 1,111,179  |   |
|                                                                                                     |   | $      | 23,033,286 |   |
|                                                                                                     |   |   |       |   |
| **LIABILITIES                AND STOCKHOLDERS' EQUITY**                                                  |   |   |       |   |
|                                                                                                     |   |   |       |   |
| Liabilities:                                                                                             |   |   |       |   |
|                                                                                                     |   |   |       |   |
| Securities                sold, but not yet purchased, at fair value                                     |   | $      | 8,266,395  |   |
| Commissions                payable                                                                       |   |   | 628,088    |   |
| Accrued                expenses and other liabilities                                                    |   |   | 875,288    |   |
|                                                                                                     |   |   |       |   |
| Total                liabilities                                                                         |   |   | 9,769,771  |   |
|                                                                                                     |   |   |       |   |
| Commitments                and contingencies                                                             |   |   |       |   |
|                                                                                                     |   |   |       |   |
| Stockholders'                equity:                                                                     |   |   |       |   |
| Preferred                stock, $0.001 par value,                                                        |   |   |       |   |
| 1,000,000                shares authorized, none issued                                                  |   |   | -          |   |
| Common                stock, $0.001 par value; 100,000,000 shares authorized;                            |   |   |       |   |
| 36,725,185                shares issued and outstanding                                                  |   |   | 36,725     |   |
| Additional                paid-in capital                                                                |   |   | 12,217,127 |   |
| Retained                earnings                                                                         |   |   | 1,009,663  |   |
|                                                                                                     |   |   |       |   |
| Total                stockholders' equity                                                                |   |   | 13,263,515 |   |
|                                                                                                     |   |   |       |   |
|                                                                                                     |   | $      | 23,033,286 |   |

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