May 30, 2001
Orlando, FL

Contact
Wilma Williams, Investor Relations
Galaxy Nutritional Foods
407/855-5500 ext. 105
wwilliams@galaxyfoods.com

GALAXY NUTRITIONAL FOODS INCREASES ITS MARKET PRESENCE WITH LITE BAKERY® DESSERTS

ORLANDO, Florida (May 30, 2001) - Galaxy Nutritional Foods, Inc. (AMEX: GXY), a leading producer of delicious and nutritious plant based health-promoting dairy and dairy related alternatives for the retail, foodservice and industrial markets, has contracted with Balboa Dessert Company of Santa Ana, California to be a private label manufacturer for Galaxy's Lite Bakery® dessert items. The healthy bakery products will display the product mark of "Lite Bakery® by Galaxy Nutritional Foods made with Veggie™ Brand Dairy Alternatives".

Balboa Dessert Company has been producing a line of unique quality desserts and manufacturer specific private label products since 1983. Currently, the company manufactures product in an 18,000 square foot facility in Santa Ana, CA. Balboa Dessert Company, a division of Balboa Acquisition LLC, is positioned to become one of the premier custom dessert manufacturers in the world. Balboa's distribution channels include foodservice distributors, restaurants, airlines, and theme parks.

"Galaxy chose Balboa due to their product quality which represents a selective choice of dessert alternatives. As a leader in the alternative dairy products industry, Galaxy will capitalize on the potential of great tasting and "good for you desserts" being made available through the retail and foodservice markets as well as the expansion of Galaxy's existing Lite Bakery® product options through the proven research and development efforts of Balboa Dessert Company. Galaxy's increased product availability and presence in the retail and foodservice markets through Lite Bakery® dessert items dynamically supports and confirms Galaxy's 20/20 Vision as an innovative business strategy," commented Angelo Morini, Galaxy's Chairman, CEO and President.

Balboa's CEO Rudy Pollak observed, "Balboa Dessert Company is committed to meeting the dessert and profit needs of its customers. We understand and appreciate the need for a Lite Bakery® dessert option and look forward to researching and developing a Lite Bakery® dessert option for at least twenty of Balboa's top menu items using Galaxy's Veggie TM brand dairy alternatives. Balboa believes there is a tremendous potential for Galaxy's Lite Bakery® desserts."

About Galaxy Nutritional Foods, Inc.
Galaxy Nutritional Foods is a leading producer of plant based health-promoting plant based 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.