United-Guardian Reports First QuarterEarnings.

HAUPPAUGE, N.Y.--(BUSINESS WIRE)--May 4, 1999--

United-Guardian, Inc. (AMEX:UG) today reported financial results for the first quarter of fiscal year 1999.

Net earnings after taxes reached a new quarterly record of $400,136 ($.08 per share) compared to $304,158 ($.06 per share)

Kenneth H. Globus, President of United-Guardian, stated: "The effort we put in place last year to reduce our operating and product costs has resulted in the most profitable quarter we have ever had, despite the fact that sales were only slightly higher than the excellent first quarter we had in 1998. Although the problems in Asia have continued to impact our gross sales, lately we have seen a significant resurgence of sales into Taiwan of Klensoft(TM), a proprietary product of ours that had done so well in 1997 and then virtually disappeared in 1998. We are hopeful that this may be a sign that our sales into Asia may be coming back. Sales of our Confetti(TM) Dermal Essential line so far this year have already surpassed all of our sales of the product in 1998. In addition, we believe that we are close to finalizing an agreement to provide a new product to a major customer in the United Kingdom, which could significantly impact sales later this year. These are just a few of the reasons why we expect both our sales and net earnings to continue to increase over the course of this year."

United-Guardian is a manufacturer of cosmetic ingredients, personal and health care products, pharmaceuticals, and specialty industrial products.

NOTE: This press release contains both historical and "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These statements about the company's expectations or beliefs concerning future events, such as financial performance, business prospects, and similar matters, are being made in reliance upon the "safe harbor" provisions of that Act. Such statements are subject to a variety of factors that could cause Registrant's actual results or performance to differ materially from the anticipated results or performance expressed or implied by such forward-looking statements. For further information about the risks and uncertainties that may affect the company's business please refer to the company's reports and filings with the Securities and Exchange Commission.

                    RESULTS FOR THE FIRST QUARTER ENDED
                     MARCH 31, 1999 and MARCH 31, 1998


                                              3 Months Ended March 31,
                                                 1999          1998


Revenue:                                       $2,413,975   $2,388,899

Costs and expenses:                             1,795,894    1,926,554

         Earnings from operations:                618,081      462,345

Other income (expense):                            18,855       22,713

         Earnings before income taxes:            636,936      485,058

Provision for income taxes:                       236,800      180,900

         Net Earnings:                         $  400,136   $  304,158

Earnings per share  (Basic and Diluted):       $      .08   $      .06