1
                         [Letterhead of Hudson General]

                                     Michael Rubin
         Transaction with              Executive
Subject:    Lufthansa      Contact:  Vice President   Release: February 28, 1996
         ----------------           ---------------            -----------------

                 Great Neck, New York - February 28, 1996 - Hudson General
Corporation announced today that Hudson General and Lufthansa Airport and Ground
Services GmbH ("LAGS") have executed an agreement pursuant to which LAGS will
acquire a 26% interest in Hudson General's aviation services business (the
"Aviation Business"). Hudson General previously announced that it was engaged in
negotiations with LAGS concerning this transaction. LAGS is a wholly owned
subsidiary of Deutsche Lufthansa AG ("Lufthansa").

                 Pursuant to the Agreement, LAGS will acquire, for a price of
approximately $23.8 million, a 26% interest in a newly formed Hudson General
subsidiary which will conduct the Aviation Business. Approximately $16 million
of the purchase price will be paid in cash by LAGS at the closing. The balance
of the purchase price of approximately $7.8 million, which is subject to
downward adjustment based on future earnings of the Aviation Business, is
payable in three annual installments ending in September 1998. Neither LAGS nor
Lufthansa will acquire any securities of Hudson General.

                 The Agreement also provides that LAGS will have an option,
exercisable until October 1, 2000, to increase its interest in the Aviation
Business from 26% up to a maximum of 49%. The option price is based on a formula
related to the earnings of the Aviation Business, subject to certain minimum and
maximum amounts.

                 Hudson General will continue to manage the Aviation Business.
The Aviation Business constitutes approximately 70% of Hudson General's assets
and virtually all of its revenues.

                 The transaction, which is expected to close on or about July 1,
1996, is subject to certain conditions, including the prior approval of the
holders of a majority of Hudson General's outstanding stock. Allen & Company
Incorporated is acting as financial advisor to Hudson General in connection with
this transaction.

                 Hudson General provides various services at airports throughout
the United States and Canada and is a participant in a joint venture to develop
4,000 acres of land in Hawaii.

                 Hudson General Corporation shares are traded on the American
Stock Exchange under the ticker symbol HGC.