United-Guardian Reports Record First Quarter Sales and Earnings.

HAUPPAUGE, N.Y. -- United-Guardian, Inc. (AMEX:UG) reported today that first quarter sales and earnings were the highest for any quarter in the company's history, with sales up 48% and earnings up 87% over the same quarter last year, far surpassing the previous highs that were reached in the first

Ken Globus, President of United-Guardian, stated, "We are very pleased with the record sales and earnings that we have experienced in the first quarter of this year. We are particularly excited about the significant increase in earnings, which exceeded our previous high by 36%. Some of the increase was attributable to additional sales that resulted from a price increase on our pharmaceutical products that went into effect in March. However, even without those sales our first quarter revenue was up substantially over last year as a result of increased sales of our personal care products. We are optimistic that we will be able continue this growth as we introduce new products into the cosmetic, medical, and industrial markets."

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 our 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.

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Additional financial information can be found at the company's web site at www.u-g.com.