EXHIBIT 99.1
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Press Release                                             FOR IMMEDIATE  RELEASE


                    UNITED-GUARDIAN DECLARES ANNUAL DIVIDEND


     Hauppauge,  NY,  December  19,  2006  -  United-Guardian,   Inc.  (AMEX:UG)
announced  today that at its meeting on  December  18th the  company's  Board of
Directors  declared a dividend of $.22 per share to stockholders of record as of
December 27, 2006. The dividend will be paid on January 10th, 2007.

     Ken Globus,  President  of  United-Guardian,  stated,  "Based on our strong
sales for the fourth quarter and our expectation that sales and earnings for the
year will be very  close to last  year's  numbers,  the Board of  Directors  has
decided to maintain the dividend at the same level as last year.  We continue to
maintain more than adequate cash reserves to fund any capital  expenditures that
might be needed."

     It was also announced that Dr. Alfred R. Globus,  the founder,  C.E.O., and
Chairman of the Board of the company,  will be relinquishing  his role as C.E.O.
in order to focus his  efforts  on  product  development.  He will  continue  as
Chairman of the Board.  His executive  duties will now be assumed by Ken Globus,
the President of the company,  who in turn will be relinquishing his position as
Chief Financial  Officer.  That position will now be assumed by Robert Rubinger,
who is also the Secretary and Executive Vice President of the company.

     Mr.  Globus  commented  that  "Over the past few years Dr.  Globus has been
taking a less active role in the day to day  operations  of the company in order
to focus more on his role as Director of Research.  He will  continue to play an
active  role  in the  expansion  of our  business  and  the  development  of new
products."

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