For Immediate Release:
June 18, 2002

Contact:
Dawn M. Robért, Investor Relations
Galaxy Nutritional Foods, Inc.
(407) 854-0433

Evan Smith, CFA / Erica Pettit
KCSA Worldwide
(212) 896-1251 / (212) 896-1248

GALAXY NUTRITIONAL FOODS® DELIVERS 27% GROWTH WITH CANADA'S LARGEST FOOD RETAILER

- Galaxy to Launch New & Innovative Packaging for Veggie® Shreds -

ORLANDO, FL., June 18, 2002 - Galaxy Nutritional Foods (AMEX: GXY), a leading producer of nutritious plant-based dairy alternatives for the retail and foodservice markets, announced today that sales of its Veggie® products to Loblaw Companies Limited, Canada's leading food retailer, have increased 27% over the past twelve months.

"Increased efficiencies and enhancements to several production lines have significantly expanded the number of Veggie brand products that we offer Loblaws and all of our global customers," commented Angelo Morini, Chairman and Chief Executive Officer of Galaxy. "The Canadian market has always been particularly strong for Galaxy since their market trends are in line with ours in the States. And, the fastest growing trend in the food business today is in our branded product category - natural and organic food products. Galaxy's exciting sales growth with Loblaw is representative of the success of two of our strategic goals. Our primary strategic goal is to increase our retail shelf space through an expanded Veggie brand product line while reducing sales of private label products. Another important strategic goal is to expand our global distribution".

On June 19, Galaxy will introduce its Veggie Shreds in Cheddar and Mozzarella flavors, featuring a new and innovative package design, in two of Loblaw's four regional divisions: Ontario and Maritimes. The new packaging features the consistent brand identity for the Veggie product line, while offering the convenience of a resealable, stand-up display pouch (a first in the industry) that is more appealing to both the retailer and consumer.

Mr. Morini added, "Galaxy's Veggie products provide healthier solutions for many of the most popular consumer meals such as pizza, pasta, cheeseburgers and sandwiches. By using all natural Veggie products in your favorite foods instead of full-fat dairy products, you will be eating a great tasting low fat product that is cholesterol, lactose and saturated fat free. We believe that our substantial growth at Loblaw's stores reflects the consumers' desire to choose healthier, all natural foods. We look forward to serving this exciting growth market for many years to come."

About Loblaw Companies Limited

Headquartered in Toronto, Canada, Loblaw Companies Limited is Canada's largest food retailer, with operations across the country. Loblaw Companies strives to provide consumers with the best in one-stop shopping for everyday household needs. The Company operates, franchises, and services 1,747 supermarkets across Canada under the Loblaws, Zehrs, Provigo, Fortinos, and other banners.

About Galaxy Nutritional Foods®, Inc.

Galaxy Nutritional Foods® is the leading producer of health-promoting plant-based dairy and dairy-related alternatives for the retail and foodservice markets. An exclusive, new and technologically advanced, safer "hot process" is used to produce these phytonutrient-enriched products, made from nature's best grains - soy, rice and oats. Veggie products are low fat and fat free (saturated fat and trans-fatty acid free), cholesterol and lactose free, are growth hormone and antibiotic free, and have more calcium, vitamins and other minerals than conventional dairy products. Because they are made with plant proteins, the products are more environmentally friendly and economically efficient than dairy products derived solely form animal proteins. Galaxy's products are part of the nutritional or functional foods category, the fastest growing segment of the retail food market. Galaxy brand names include: Galaxy Nutritional Foods®; Veggie®; Nature's Alternative™; Veggie Lite Bakery™; Veggie Café™; Soyco®; Soymage®; Wholesome Valley®; Lite Bakery®; and formägg®. For more information, please visit Galaxy's website 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.