EXHIBIT 99.1
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Press Release                                              FOR IMMEDIATE RELEASE

                            UNITED-GUARDIAN ANNOUNCES
                              SPECIAL CASH DIVIDEND


Hauppauge,  NY, May 18, 2006 -  United-Guardian,  Inc.  (AMEX:UG) reported today
that its Board of Directors  had  declared a special  cash  dividend of $.25 per
share to all stockholders of record as of the close of business on June 2, 2006,
to be paid to stockholders on June 16, 2006.

Ken  Globus,  President  of  United-Guardian,  stated,  "As a result of the very
profitable year we had in 2005, as well as the  expectation  that this year will
be strong as well,  the Board of  Directors  has decided  that the issuance of a
special  dividend  comparable  to those  issued in each of the last two years is
once again  appropriate.  We are confident  that our ongoing R&D efforts,  along
with our continuing efforts to expand the marketing of our products, will enable
us to continue to increase our sales,  and that our cash  reserves will continue
to be more than adequate to fund any capital expenditures that will be needed in
the near future."

                                                  Contact:    Robert S. Rubinger
                                                              Public Relations
                                                              (631) 273-0900

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



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.