January 22, 1999
Orlando, FL

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

GALAXY FOODS ANNOUNCES EFFECTIVE DATE FOR
PROPOSED REVERSE STOCK SPLIT

ORLANDO, FLORIDA (January 22, 1999) - Galaxy Foods Company (NASDAQ: GALCD, formerly GALX), makers of healthy cheese and dairy-related products, today announced an effective date of February 11, 1999 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 reverse stock split will be voted on by all shareholders as of January 7, 1999. This change will assist the Company in complying with the new NASDAQ Small-Cap listing requirements.

Cynthia Hunter, CFO, stated "this change will bring the capital structure in line with our comparable market segment companies and provide Galaxy with visibility to the institutional investment community. Additionally, this will expand Galaxy's access to the capital markets to sustain the Company's growth. We believe this action will contribute substantially in Galaxy's dedication to increased shareholder value."

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.

This press release contains "forward-looking" statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks, uncertainties or other factors which may cause actual results, performance or achievements of the company to be materially different from any future results, performance or achievements expressed or implied in such forward-looking statements. Readers are cautioned not to place undue reliance on those forward-looking statements that speak only as of the date hereof. The Company undertakes no obligation to release publicly any revisions to these forward-looking statements to reflect events or circumstances after the date hereof or to reflect unanticipated events or developments.