Ken Globus, President of United-Guardian, stated, "Strong sales in our second quarter have enabled us to make up for some of the shortfall from the first quarter, and based on a very busy start to the third quarter we are hopeful that this trend will continue. Last year's first quarter was unusually strong due to customers bringing in larger than normal quantities to avoid a price increase that went into effect in March of 2005. That situation that did not recur this year, resulting in lower first quarter sales but stronger second quarter sales. With our new "Lubrasil II" product being introduced worldwide this month, and our arrangement with a well-known marketing consultant to begin in September, we are confident that our sales will continue to increase."

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.