Exhibit 99.1

                                  PRESS RELEASE


Contacts:

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



FOR IMMEDIATE RELEASE                                              June 29, 2006


      HUDSON HOLDING CORPORATION'S EARNINGS PER SHARE DOUBLE IN FISCAL 2006


Jersey City, NJ, June 29, 2006: Hudson Holding  Corporation (OTC Bulletin Board:
HDHL.OB-News)  today announced that it is filing its results for the fiscal year
ended March 31, 2006 with the  Securities  and Exchange  Commission,  concurrent
with this  announcement.  Earnings per share were $0.04 for fiscal 2006,  double
the $0.02 generated during fiscal 2005.

While the fiscal 2006 revenues  declined  slightly to $20.2 million,  from $21.2
million in fiscal 2005,  fourth quarter 2006 revenues of $7.4 million  increased
substantially  as compared to the  previous six  quarters,  which ranged from $4
million to $5.4 million.  Net income for fiscal 2006 was $784 thousand  compared
to fiscal 2005 net income of $448 thousand.  Stockholders'  equity  increased to
$8.1  million at March 31, 2006 as compared to $5.3  million at March 31,  2005.
Additional  financial  details  are  available  in the  table  below  and in the
Company's Form 10-KSB.

                  Three Months Ended           Twelve Months Ended
                        March 31,                     March 31,
               --------------------------     --------------------------
                  2006           2005            2006           2005
               -----------    -----------     -----------    -----------
               (unaudited)     (unaudited)

Revenues       $ 7,402,394    $ 4,658,742     $20,227,649    $21,162,383
Net income     $ 1,097,365    $   (49,475)    $   783,825    $   447,914
Diluted EPS    $      0.04    $      0.00     $      0.04    $      0.02

"The fourth quarter was marked by a surge in trading  activity,  which benefited
our full year  results"  said  Marty  Cunningham,  Hudson's  Chairman  and Chief
Executive  Officer.  "Our goal is to continue to grow our market  maker  revenue
base and expand into  complementary  businesses,  but in a  controlled  and cost
conscious manner," Mr. Cunningham continued.

Hudson  Holding  Corporation  is a holding  company  and is the parent of Hudson
Securities,  Inc., a registered  broker-dealer under the Securities Exchange Act
of 1934 and a member of the National  Association  of Securities  Dealers,  Inc.
(the "NASD").  Hudson  Securities,  Inc.  meets the liquidity  needs of brokers,
dealers, institutions, and asset managers by making markets in over 7,000 Nasdaq
and  non-Nasdaq  OTC  securities,  with  particular  expertise in trading Nasdaq
SmallCap, OTC Bulletin Board, and Pink Sheet securities.

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.