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

GALAXY FOODS ADDS $10 MILLION IN ANNUAL SALES

ORLANDO, FL, April 7, 1998... Galaxy Foods Company (NASDAQ: GALX) announced today the addition of two major accounts, a major retail supermarket chain with over 1000 stores nationwide and a large retail distributor. Each account is expected to result in $5 million annually in sales of branded cheese products. Shipment of initial orders will commence this month.

Angelo S. Morini, Galaxy's President, stated, "Our Veggie Slices(r) continue to experience tremendous growth since being introduced into mainstream supermarkets approximately one year ago. Since its inception in 1972, Galaxy has been the leader in the healthy cheese category. SPINS (Spence Information Services, San Francisco) ranks Galaxy as number one in its category marketing to the 12,000 U.S. health food stores, and Galaxy expects this leadership to develop into a major product position in the mass market. In February 1997 we sold 6,000 cases of Veggie Slices. In February 1998, we sold 37,000 cases, representing more than a 600% increase in sales. The Veggie product line, which has been expanded to include additional products, is now found in over 40% of supermarkets nationally and in several countries abroad. Our goal is to have our Veggie line of products in 100% of national supermarket chains by December 1998. Galaxy continues to increase gross profit margins as sales expand."

Galaxy Foods was recently featured in Research Magazine, which is distributed to over 90,000 stockbrokers and analysts nationwide. For a comprehensive look at the Company, refer to the February issue, page 78, or call (407) 855-5500 ext. 307 for a reprint of the article. For Galaxy's latest financial statements, you are invited to visit the company's website at www.galaxyfoods.com. To be added to the mailing list for the Monthly Insight Newsletter, please call (407) 855-5500, extension 307. Galaxy's Investor Relations Department is available to answer calls at (407) 855-5500, extension 105.

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.

 

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