Ken Globus, President of United-Guardian, stated: "We are very pleased with the substantial increase in sales and earnings that we have experienced for the first half of this year, with both the $6.3 million in sales and the $.27 per share in earnings setting new 6-month records for the company. Much of this growth has been attributable to launches of new products incorporating our ingredients, as well as the continuing marketing efforts being made by our global marketing partners, in particular our largest partner, International Specialty Products. Those marketing partners have continued to bring in new customers for our core product lines, while at the same time introducing to customers our two recently introduced product lines, Lubrajel II and Plexajel, which we expect to begin generating sales by the end of the year. We are also continuing to work on several other exciting research projects that hold excellent potential for the coming years."

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

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.