UNITED-GUARDIAN REPORTS RECORD FIRST QUARTER SALES AND EARNINGS

  
             Hauppauge, NY, May 12, 2000 -- United-Guardian, Inc. (AMEX:UG) today reported financial results for the first quarter of fiscal year 2000.  Sales and earnings both set new records for the company, with net earnings after taxes reaching $623,077 ($.13 per share) compared to $400,136 ($.08 per share) for the first quarter of 1999, an increase of 56%.   Revenue increased 21% to $2,913,349 compared to $2,413,975 in 1999.

             Kenneth H. Globus, President of United-Guardian, stated:   “Our revenue and earnings increases for the first quarter of the year are evidence of the continuing success we are having in working with our worldwide marketing partners to increase the market penetration and expansion of our core product lines.   We have been able to achieve these increases even without the additional sales we expect to generate soon as a result of our new supply agreement with a U.K.-based company that plans to incorporate one of our Lubrajel^® products into a consumer product of theirs that is marketed worldwide.  We are also in the process of introducing our new Confetti^® II into the marketplace, a second-generation product to our successful Confetti Dermal Essentials product line. In addition, we are currently negotiating a new agreement to expand the use of Clorpactin^®, our powerful antimicrobial product, into a new health care area, and are  planning to begin the direct marketing (via the Internet) of some of our own finished product formulations that are not currently sold by our marketing partners.  All of these projects should increase our revenues even further, leading to what we expect will be another record year for us”.

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

(Table to follow)                                                 Contact:   Robert S. Rubinger
                                                                                             Public Relations
                                                                                             (631) 273-0900

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.

RESULTS FOR THE FIRST QUARTER  ENDED
MARCH 31, 2000 and MARCH 31, 1999

                                                                        3 Months Ended March 31,

                                                                             2000                        1999