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August 3, 2001 < Previous Page
Press Release FOR IMMEDIATE RELEASE


UNITED-GUARDIAN REPORTS
SECOND QUARTER 2001 FINANCIAL RESULTS

Hauppauge, NY, August 3, 2001 -- United-Guardian, Inc. (AMEX:UG) today reported that sales for the three-month period ended June 30, 2001 showed a modest decrease to $2,593,955 from $2,940,461 for the same period a year ago. Net earnings for the three-month period were $443,262 or $0.09 per share compared to $595,297 or $0.12 per share in the same period last year. 

For the six months ended June 30, United-Guardian reported sales of $5,423,800 compared to $5,853,810 for the same period in fiscal 2000.  Net earnings for the first six months were $1,079,378 or $0.22 per share, compared to $1,218,374 or $0.25 per share for the same period in fiscal 2000. 

The company also reported that in contrast to the second quarter sales declines, sales in July were up sharply, making this past month the strongest July in the company’s history. 

“While disappointed that we were not able to continue the strong earnings growth we have experienced for many consecutive quarters now, the decrease we experienced this quarter was not surprising given the overall slowdown in the economy,” Kenneth H. Globus, United-Guardian’s president said.  “We believe a portion of the decline was attributable to the timing of orders this year.  With our July sales being very strong, exceeding $1 million, we are optimistic that our third quarter, typically our slowest in the year, may be stronger than usual.”

“We remain confident that despite the current economic conditions our sales will continue to grow as some of our ongoing projects come to fruition,” Mr. Globus said.  “In addition, some exciting new projects are getting underway, one of which involves Clorpactin®, our powerful antimicrobial agent.  We believe this project holds tremendous potential.”

An early-stage clinical program to test Clorpactin® in the treatment of periodontal disease was recently approved by the Institutional Review Board of the Boston University School of Dental Medicine.  The Company expects clinical trials to begin shortly. 

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 SECOND QUARTER  ENDED

                                               JUNE 30, 2001 and  JUNE 30, 2000  

                                                                               6 Months Ended June 30,                  3 Months Ended June 30,

                                                                                     2001                    2000                        2001                      2000  

Revenue

Costs and expenses

3,833,390

4,000,890

1,953,677

2,041,940

             Earnings from operations

1,590,410

1,852,920

640,278

898,521

Other income (expense):

131,708

90,954

65,724

51,576

         Earnings before income taxes

1,722,118

1,943,874

706,002

950,097

Provision for income taxes

642,740

725,500

262,740

354,800

            Net earnings

$ 1,079,378

$ 1,218,374

$   443,262

$   595,297

Earnings per share (Basic and Diluted)

$          0.22

$          0.25

$         0.09

$         0.12