Ken Globus, President of United-Guardian, stated "We are very pleased that we have been able to continue to reach record levels of sales and earnings despite indications that the market for personal care products has been flat this year. As a result of some customers taking in extra inventory in the first quarter in anticipation of a price increase that we put into effect in March, second quarter sales were down compared to last year, but we expect this to even out during the next quarter. Our foreign sales, particularly into emerging markets like China, are expected to continue to increase, and we are also looking into methods of accelerating our development cycle for new products for the personal care and medical 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.