UNITED-GUARDIAN REPORTS
FIRST QUARTER 2001 FINANCIAL RESULTS

Hauppauge, NY, May 8, 2001 -- United-Guardian, Inc. (AMEX:UG) today reported that net earnings for the first quarter of 2001 increased 2% over the same quarter last year, setting a new high for the company that reflects an expanding global customer base and significant new-product applications for the Company’s Guardian Laboratories division.

Net Earnings for the quarter were $636,116 ($.13 per share), compared to $623,077 ($.13 per share) in the same quarter of 2000.  Revenue declined slightly from $2,913,349 in 2000 to $2,829,845 in 2001, due primarily to a decrease in sales from the company’s Eastern Chemical subsidiary, which the company previously announced it is in the process of downsizing.

“Our earnings this quarter exceeded the record levels that we attained in the first quarter of last year” stated Kenneth H. Globus, President of United-Guardian.  “We are very pleased to have been able to achieve this level of earnings despite the current economic climate.  We are confident that we will be able to increase our revenue and earnings even further as some of our ongoing projects come to fruition.”

Sales of the Company’s Lubrajel line of water-based moisturizing and lubricating gels are expected to continue to grow as a result of the Company’s expanding consumer base, particularly in places such as Mainland China, where sales of the Company’s products have been growing rapidly. A customized version of Lubrajel is expected to be a component in a globally marketed personal care line from a U.K. company.  The company is also anticipating steadily increasing sales of its new line of Confetti® II Dermal Delivery Flakes, which have recently been incorporated into a new product about to be launched by a major consumer products company in Germany.

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

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, 2001 and MARCH 31, 2000

                                                                                          3 Months Ended March 31,
                                                                                             2001                        2000