May 15, 2001
Orlando, FL

Contact
Wilma Williams, Investor Relations
Galaxy Nutritional Foods
407/855-5500
wwilliams@galaxyfoods.com

GALAXY NUTRITIONAL FOODS ANNOUNCES NEW BUSINESS OPPORTUNITIES WITH PIZZA HUT® FRANCHISEE

ORLANDO, Florida (May 15, 2001) - Galaxy Nutritional Foods, Inc. (AMEX: GXY), a leading producer of delicious and nutritious health-promoting dairy and dairy related alternatives for the retail, foodservice and industrial markets, today announced a six month agreement, commencing June 1, 2001, which will allow Pizza Hut® customers of Pizza Hut® of Fort Wayne, Inc. the choice of ordering their pizzas with Galaxy's "Veggie MozzarellaTM".

The agreement will include all 41 north central Indiana franchised Pizza Hut® stores, and one located in Van Wert, Ohio. Pizza, along with other select food products, will be offered with Galaxy's great tasting Veggie MozzarellaTM, which is low fat (saturated and trans-fatty acids free), cholesterol and lactose free, lower in calories and is very nutritious. This new choice will be marketed with television and radio advertising along with point of sale materials.

Angelo Morini, Galaxy's Chairman, CEO and President, commented, "This agreement demonstrates Galaxy's continuing preeminence in nutritional and healthy cheese as an industry leader. We seek marketing and strategic partnerships with other global leaders who support our vision. This agreement with Pizza Hut® of Fort Wayne, Inc., which is one of the most successful franchisees in the Pizza Hut® system, is the latest evidence of our success. We are pleased to be moving forward with a formal test of our Veggie MozzarellaTM, which will be supported with a full-scale marketing campaign. We are even more pleased with the business relationship we have established because we believe there is a large untapped market for healthy choices which will result in revenue opportunities for both companies."

Richard Freeland, president of Pizza Hut® of Fort Wayne, Inc., observed, "Our success is the result of listening to our customers and responding to their needs. We have been asked to find a mozzarella cheese alternative that provides our customers a choice between regular mozzarella and one that is free of saturated fat, lactose and cholesterol. With Galaxy's Veggie MozzarellaTM, we found a product that has those characteristics with great taste. We have offered the product informally at our Village of Coventry store since last summer. The positive reaction to the product led us to develop this more thorough test in all 42 stores. We anticipate an enthusiastic response and look forward to analyzing the sales data."

About Galaxy Nutritional Foods, Inc.
Galaxy Nutritional Foods is a leading producer of health-promoting dairy and dairy related alternatives for the retail, foodservice and industrial markets. The Company manufactures plant-based products that are low or no fat (no saturated fat), have no cholesterol, contain no lactose and are growth hormone and anti-biotic free and have more vitamins and minerals than conventional dairy products through a safer proprietary hot-process. Galaxy products, available at health food stores and grocers, are part of the nutritional or functional food category, the fastest growing segment of the retail food market. Galaxy brand names include Veggie Milk™, Veggie Slices™, formägg®, Soyco®, Soymage®, Wholesome Valley™, Lite Bakery®, Veggie Café™ and Veggie Lite Bakery®. For more information please visit the Company's web site at 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 by such forward-looking statements. Readers are cautioned not to place undue reliance on those forward-looking statements which 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.