January 6, 1999
Orlando, FL

Contact: Tracy Rushwin
(407) 855-5500, extension 105

GALAXY FOODS ANNOUNCES BOARD APPROVAL FOR REVERSE STOCK SPLIT

ORLANDO, FLORIDA (January 6, 1999) - Galaxy Foods Company (NASDAQ: GALCD, formerly GALX), makers of healthy cheese and dairy-related products, today announced approval by its Board of Directors for a proposed one-for-seven reverse stock split, pending shareholder approval at a special meeting of shareholders preliminarily scheduled for February 11, 1999.

The proposed reverse split of the Company's Common Stock has been approved by the Board of Directors in an effort to bring the Company's capital structure in line with comparable market segment companies and to maintain continued listing on the Nasdaq Small-Cap Market. In addition, the Company feels the adjusted stock price and lower outstanding share base will provide increased institutional investor access to capital markets for further growth.

Galaxy Foods Company is the inventor and originator of a new, healthier and better way to make cheese and dairy-related products. Our products are primarily low or no fat (no saturated fat), have no cholesterol and no lactose and contain more vitamins and minerals than conventional cheese. Galaxy brand names include Veggie, formägg, Soyco, Soymage, Wholesome Valley, and Lite Bakery. For more information, contact Tracy Rushwin at (407) 855-5500, extension 105. You may also obtain more information from our site on the World Wide Web at http://www.galaxyfoods.com.