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                                                                    Exhibit 99.1


                   Press Release issued on September 17, 1998


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Lufthansa Authorizes Exercise of
Option to Increase Interest in Unit of      Michael Rubin
Hudson General Corporation                  President         September 17, 1998


         Great Neck, New York - September 17, 1998 - Hudson General
    Corporation announced today that it has been advised that, on
    September 16, 1998, the Supervisory Board of Deutsche Lufthansa AG
    approved the exercise by LAGS (USA) Inc.(an indirect subsidiary of
    Deutsche Lufthansa AG) of an option to increase LAGS' interest in
    Hudson General LLC from 26% to 49% (the "Option"). As a result,
    Hudson General Corporation expects LAGS to give notice of its
    exercise of the Option on or about October 1, 1998. The exercise
    price of the Option is approximately $29,600,000.

         LAGS (USA) Inc. is a direct wholly-owned subsidiary of
    Lufthansa Airport and Ground Services GmbH, and was granted the
    Option under the terms of the Unit Purchase and Option Agreement
    dated February 27, 1996 pursuant to which it acquired its initial
    26% interest in Hudson General LLC.

         Hudson General Corporation, through Hudson General LLC, in
    which it currently has a 74% interest, provides various services at
    airports throughout the United States and Canada. Hudson General
    Corporation is also 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.


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