March 3, 1999
Orlando, FL

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

GALAXY FOODS CONTINUED LISTING ON NASDAQ

ORLANDO, FLORIDA (March 3, 1999) - Galaxy Foods Company (NASDAQ: GALX, formerly GAXCD), makers of healthy cheese and dairy-related products, today received notification from the Nasdaq that the Company has met all criteria for continued listing on the Nasdaq SmallCap Market. Nasdaq has further notified Galaxy Foods that the hearing file regarding the Company's listing has been closed. Effective March 4, 1999, the trading symbol of the Company's securities will revert back to GALX. Additionally, due to the fact that the Company's securities are quoted on Nasdaq, its shares may be used for margin purposes.

Cynthia Hunter, CFO, stated "We are pleased with this recent notification by Nasdaq regarding our continued listing on the Nasdaq SmallCap Market. The Company has recently completed a one-for-seven reverse stock split to adjust the number of outstanding shares and the per share trading price. We believe the adjusted number of shares outstanding and the new trading price bring the Company in line with our market peers."

Galaxy Foods Company is the inventor and originator of a new, healthier and better way to make cheese and dairy-related products. Galaxy's products are primarily low or no fat (no saturated fat), have low or 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.