Sales reached a record $3,217,533 as compared to $2,382,448 for the same period in 2002, an increase of 35%. Net earnings after taxes for the quarter were $703,429 ($.14 per share) versus $437,912 ($.09 per share) for the same period last year, an increase of 61%.

Ken Globus, President of United-Guardian, stated "We are extremely pleased with the very strong start to the year that we have experienced, and are proud to have reached a new company milestone, with quarterly sales exceeding $3 million for the first time in the company's history. With April sales exceeding $1 million and incoming orders continuing to be very strong, we are very optimistic about our prospects for achieving record sales and earnings this year."

"We attribute our strong sales this quarter to the continuing efforts we are making in conjunction with our international marketing partners to continue to increase the market penetration of our core product lines", continued Mr. Globus. "Having just launched two new product lines that should begin to find their way into new products by the end of this year, and with our continuing efforts to bring to market novel and innovative products, we believe that we are well positioned to continue to increase our sales over the next few years."

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.