April 14, 1998
Orlando, FL

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

GALAXY FOODS BOOSTS GROSS MARGINS BY OVER 100%;
YEAR-END REVENUES ADVANCE BY 30%

ORLANDO, FL, April 14, 1998… Galaxy Foods Company (NASDAQ: GALX) announced today preliminary gross margins in excess of 20% for the year ended March 31, 1998, an improvement of more than 100% over last year's 9.35%. The company also realized record annual revenues of $22.5 million for the fiscal year, an increase of 30% over the previous year's $17.2 million.

Angelo S. Morini, Galaxy's President, stated, "The incredible 600% increase in sales we have experienced in the Veggie brand in just one year reinforces our firm belief that we are at the leading edge of a developing megatrend. Of nature's three kingdoms - animal, vegetable and mineral - the veggie kingdom has the most to offer in the way of complete nutrition. Trends indicate as we move into the twenty-first century, people are relying heavily on the veggie kingdom as their primary food source. Innovators such as Galaxy Foods are meeting this demand for healthier, veggie-based products. Galaxy's Veggie brands offer a complete selection of nature's alternative to dairy products made with the goodness of soy and organic tofu. We are expecting to see continued phenomenal growth in the market for healthy dairy alternatives as this shift in reliance on the veggie kingdom develops."

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.