July 28, 1998
Orlando, FL

Contact: Tracy Rushwin
(407) 855-5500, extension 105

GALAXY FOODS PRODUCT APPROVED FOR DISTRIBUTION TO A MAJOR FAST FOOD CHAIN

ORLANDO, FLORIDA (July 28, 1998) - Galaxy Foods Company (NASDAQ: GALX), makers of healthy cheese and dairy-related products, today announced it has received approval to begin distributing a custom healthy cheese slice developed by Galaxy specifically for a major fast food chain. The product will initially be distributed to approximately 600 units of this 10,000 plus store chain and will be featured on a healthy menu item being launched this fall. Shipments of the product are expected to commence in August.

Angelo S. Morini, Galaxy’s president stated, “The approval of this innovative, custom cheese slice by a leading fast food chain represents a major step in our long term foodservice strategy. It is Galaxy's goal to target certain fast food chains and obtain higher-margin healthy cheese slice business as well as conventional slice business. We are the only company who can offer both healthy and conventional products at competitive prices. I am pleased to report this strategy is beginning to take off in a big way. The products are produced from our state of the art Pullman/Ribbon loaf machine, which was designed specifically for Galaxy's healthy products. We are optimistic that the success of this custom product will lead to additional distribution of other Galaxy products with this chain as well as give Galaxy opportunities with other fast food chains.”

Galaxy Foods Company is the inventor and originator of a new, healthier and better way to make cheese and dairy-related products. Our products are primarily low or no fat (no saturated fat), have no or low cholesterol, no lactose and contain more vitamins and minerals than conventional cheese. Galaxy brand names include formägg, Soyco, Soymage, Veggie Slices, Wholesome Valley, and Lite Bakery. For more information, contact Tracy Rushwin at (407) 855-5500, extension 105.