<DOCUMENT>
<TYPE>EX-99.1
<SEQUENCE>2
<FILENAME>form8k-q2_2005earningsexhibt.txt
<DESCRIPTION>SECOND QUARTER 2005 EARNINGS RELEASE
<TEXT>
Exhibit 99.1
------------


                             UNITED-GUARDIAN REPORTS
                            STRONG SIX MONTH EARNINGS


     Hauppauge,  NY, August 5, 2005 -  United-Guardian,  Inc. (AMEX:UG) reported
today  that  sales for the first  six  months of the year  reached a new high of
$6,647,572,  an increase of 11% over the same period last year. Earnings for the
six-month  period also reached a record high of $.30 per share, up from $.28 per
share for the same period last year. For the three months ended June 30th, sales
and  earnings  were down from the same  period  last year due  primarily  to the
effects of a price  increase  that went into effect in the first  quarter of the
year.

     Ken Globus, President of United-Guardian,  stated "We are very pleased that
we have been  able to  continue  to reach  record  levels of sales and  earnings
despite  indications  that the market for personal  care  products has been flat
this year. As a result of some customers  taking in extra inventory in the first
quarter in  anticipation  of a price  increase that we put into effect in March,
second quarter sales were down compared to last year, but we expect this to even
out during the next  quarter.  Our foreign  sales,  particularly  into  emerging
markets  like China,  are  expected to  continue  to  increase,  and we are also
looking into methods of accelerating our development  cycle for new products for
the personal care and medical markets."

     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.


                   RESULTS FOR THE SIX AND THREE MONTHS ENDED
                         JUNE 30, 2005 and JUNE 30, 2004

<table>
<caption>
                                                       SIX MONTHS ENDED           THREE MONTHS ENDED
                                                           JUNE 30,                     JUNE 30,
                                                      2005          2004           2005          2004
                                                     ------        ------         ------        ------
<S>                                               <C>           <C>            <C>           <C>
Revenue:                                          $ 6,647,572   $ 5,990,071    $ 2,767,455   $ 3,022,968
                                                   ----------    ----------     ----------    ----------
Costs and expenses:                                 4,366,899     3,946,302      1,929,439     2,027,191
                                                   ----------    ----------     ----------    ----------
      Income from operations                        2,280,673     2,043,769        838,016       995,777

Other income:                                          47,012       106,395         94,952        49,320
                                                    ---------    ----------      ---------    ----------
      Income before income taxes                    2,327,685     2,150,164        932,968     1,045,097

Provision for income taxes                            860,900       768,000        321,900       372,800
                                                    ---------     ---------      ---------     ---------
      Net income                                  $ 1,466,785   $ 1,382,164    $   611,068   $   672,297
                                                    =========     =========       ========     =========
Earnings per common share
   (basic and diluted)                            $      0.30   $      0.28    $      0.12   $      0.14
                                                    =========     =========      =========     =========
</table>


Additional  financial  information  can be  found at the  company's  web site at
www.u-g.com.
</TEXT>
</DOCUMENT>
