<DOCUMENT>
<TYPE>EX-99.1
<SEQUENCE>2
<FILENAME>z_8k-specialdividendexhibit.txt
<DESCRIPTION>SPECIAL CASH DIVIDEND PRESS RELEASE
<TEXT>
                                                                    EXHIBIT 99.1
                                                                    ------------

                            UNITED-GUARDIAN ANNOUNCES
                              SPECIAL CASH DIVIDEND

     Hauppauge,  NY,  September  10,  2004  -  United-Guardian,  Inc.  (AMEX:UG)
reported  today  that its Board of  Directors,  at its  September  9th  meeting,
declared a special cash dividend of $.25 per share to all stockholders of record
as of the close of business on September 24, 2004.  The dividend will be paid to
stockholders on October 8, 2004.

     Ken Globus, President of United-Guardian,  commented, "Despite the economic
problems of the past few years our company has been  successful in maintaining a
solid  level of  profitability  and cash  flow.  As a result,  the  company  has
generated  sufficient  cash  reserves  to  enable  us to pay this  special  cash
dividend  while still  retaining  more than adequate funds to meet our immediate
and future needs. While our first priority will always be to explore new ways to
grow the business,  we continue to believe that stockholders  should participate
in our ongoing success through a generous  dividend policy.  Returning a portion
of our  earnings  to our  stockholders  seems to make a lot of sense  right now,
especially  in view of the  favorable tax  treatment  that  dividends  currently
receive."

     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.


</TEXT>
</DOCUMENT>
