Hauppauge, NY, August 3, 2000 -- United-Guardian, Inc. (AMEX:UG) today released its financial results for the second quarter of 2000.   Earnings for the first six months of the year have once again attained a new record for the company, increasing 45% from $841,620 ($.17 per share) in 1999 to $1,218,374 ($.25 per share) in 2000.  Revenue for the period increased 18% from $4,966,017 to $5,853,810.  For the three months ended June 30, 2000, net earnings increased 35% from $441,484 in 1999 ($.09 per share) to $595,297 ($.12 per share) in 2000, with revenue for the quarter increasing 15% from 2,552,042 to $2,940,461.

          Kenneth H. Globus, President of United-Guardian, stated: “Once again we are pleased to report that our revenue and earnings continue to increase, with earnings for the first six months of the year only $.03 short of our earnings for all of 1999. This increase is the result of our continuing success in increasing the market penetration of our Lubrajel products into new markets, such as mainland China.  We are continuing to work closely with our marketing partners to expand these efforts, and are confident that our sales will increase further as we add new products to our portfolio, such as our new Confetti II product, a second generation of our original Confetti product, which we believe will open up many more markets for that product.  We are also continuing to work with two major consumer products companies interested in using our Lubrajel in personal care products in which it has never been used before.  In addition, we are about to launch two of our own products directly to consumers via the internet, a project that we hope will open up a whole new market for some of the finished products we have worked on over the past few years.  All of these projects should result in continued earnings growth over the next few years”.  

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