February 19, 1998
Orlando, FL

FOR IMMEDIATE RELEASE:
Contact: Tracy Rushwin (407) 855-5500, extension 105
2441 Viscount Row, Orlando, FL 32809

GALAXY FOODS AWARDED $7 MILLION IN ANNUAL SALES

ORLANDO, FL, February 19, 1998... Galaxy Foods Company (NASDAQ: GALX) announced today that it was been awarded the business to produce approximately $7 million annually in branded cheese products for a major retail chain. Shipment of first orders commenced earlier this month and the Company expects these orders to result in significant profit margins.

Galaxy also announced that they expect to report a 82% increase in retail sales and a continued improvement in gross profit margin for its fiscal year ending March 31, 1998 over the previous fiscal year. Angelo S. Morini, Galaxy's President, stated, "Our Veggie Slice (r) products have enjoyed great success since being introduced into mainstream supermarkets approximately one year ago. They are now found in over 40% of supermarkets nationally and in several countries abroad. We expect this trend to continue due to the continued popularity of the line, the introduction of Veggie line extensions and a steady increase in retail distribution. Our very achievable goal is to have our Veggie line of products in 100% of national supermarket chains by December 1998.

Galaxy Foods was recently featured in the February issue of Research Magazine, which is distributed to over 90,000 stockbrokers and analysts nationwide. For a comprehensive look at Galaxy, refer to the February issue of Research Magazine, page 78, or call (407) 855-5500 ext. 307 for a reprint of the article.

Galaxy Foods is a leading producer of healthy cheese and dairy-related products for the retail and foodservice markets. Brand names include Formägg, Veggie Slices, Soyco, Soymage, Lite Bakery, and Wholesome Valley. Galaxy's Investor Relations Department is available to answer calls at (407) 855-5500, extension 105. For Galaxy's latest financial statements, consumers may visit the company's website at www.galaxyfoods.com. In addition, an investor Monthly Insight Newsletter is available. To be added to the mailing list of this publication, please call (407) 855-5500, extension 307.