Ken Globus, President of United-Guardian, stated, "In July the Company finally terminated its burdensome defined benefit pension plan, which resulted in a one-time charge to earnings of $0.12 per share for the second quarter. Had it not been for this one-time expense, earnings for the quarter would have been $0.25 per share, which would have represented an increase of over 60% compared with last year's second quarter, and earnings for the six-month period would have been $0.46 per share, which would have been an 18% increase over last year. Now that the plan has been terminated and this one-time expense is behind us, the costs and administrative burdens associated with maintaining the defined benefit pension plan will soon be eliminated. With very strong sales in July and an excellent start to August, we are confident that we will continue to have a very profitable year."

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.