<DOCUMENT>
<TYPE>EX-99.1
<SEQUENCE>2
<FILENAME>q2_2004earningsexhibit-8k.txt
<DESCRIPTION>2ND QUARTER 2004 EARNINGS RELEASE
<TEXT>
EXHIBIT 99.1
------------
                              UNITED-GUARDIAN REPORTS
                          STRONG SECOND QUARTER RESULTS

Hauppauge,  NY, August 5, 2004 - United-Guardian,  Inc. (AMEX:UG) reported today
that earnings for the first half of this year reached a new 6-month  record high
of $.28 per share,  exceeding  slightly the very strong  earnings posted for the
first six months of last year.  Earnings for the second  quarter  were  $672,297
($.14 per share) compared to $634,963 ($.13) for the comparable quarter of 2003.

Ken Globus, President of United-Guardian,  stated "We are very encouraged by the
continued strong sales we experienced in the second quarter. Even though revenue
for the 3 and 6 month periods was down slightly as compared to last year (due to
pipeline filling for some major new product  introductions  that occurred during
the first six months of last  year),  we were still able to exceed  last  year's
earnings.  Recently there have been several  exciting new product  introductions
using our  ingredients,  including the launching by a Canadian  company of a new
line of salon products that all prominently  feature our new Orchid Complex(TM).
We  believe  that this will give a real  boost to that  product  line.  Based on
feedback  from our marketing  partners,  we are expecting the second half of the
year to continue to be strong, and we have new product  introductions  scheduled
for later this year that should generate new sales for us in 2005".

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 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.
<page>

                   RESULTS FOR THE SIX AND THREE MONTHS ENDED
                         JUNE 30, 2004 and JUNE 30, 2003
<table>
<caption>
                                                 6 Months Ended June 30,            3 Months Ended June 30,
                                                ------------------------            -----------------------
                                                     2004           2003              2004            2003
                                                     ----           ----              ----            ----
<S>                                              <C>            <C>               <C>             <C>
Revenue                                          $ 5,990,071    $ 6,317,077       $ 3,022,968     $ 3,099,544
Costs and expenses                                 3,946,302      4,316,324         2,027,191       2,154,479
                                                   ---------      ---------         ---------       ---------
         Income from operations                    2,043,769      2,000,753           995,777         945,065
Other income:                                        106,395         79,639            49,320          39,898
                                                     -------         ------            ------          ------
         Income before income taxes                2,150,164      2,080,392         1,045,097         984,963
Provision for income taxes                           768,000        742,000           372,800         350,000
                                                     -------        -------           -------         -------
Net income                                       $ 1,382,164    $ 1,338,392       $   672,297     $   634,963
                                                   =========      =========           =======         =======
Earnings per share (Basic and Diluted)           $      0.28    $      0.27       $      0.14     $      0.13
                                                        ====           ====              ====            ====
</table>

</TEXT>
</DOCUMENT>
