July 30, 2001
Orlando, FL

Contact
Dawn M. Robert, Investor Relations
Galaxy Nutritional Foods
407/854-0433
galxinvest@galaxyfoods.com

GALAXY NUTRITIONAL FOODS ENTERS UK MASS RETAIL MARKET

ORLANDO, Florida (July 30, 2001) - Galaxy Nutritional Foods (AMEX: GXY), a leading producer of nutritious plant-based dairy alternatives for the retail and foodservice markets, announced that distribution of its Veggy™, Rice™ and Soymage™ (Vegan) dairy alternatives is being expanded to include several large supermarket chains in the UK. For several years, these products have enjoyed great success in most UK health food stores. They are distributed by Brewhurst Health Food Supplies LTD ("Brewhurst"), the UK's largest distributor of natural health products. Brewhurst will also distribute these products to the UK supermarket chains. Brewhurst offers over 5,500 natural health products from over 250 UK and overseas manufacturers and is a division of Distriborg of Lyon, France, the European market leader in the natural and specialty food segment. Distriborg is a subsidiary of Koninklijke Wessanen nv, a $4 billion multinational food company founded in 1795 and based in the Netherlands.

Lisa Moss, Galaxy's account manager at Brewhurst, estimated that first year sales to the UK mass retail market could reach $1.35 million and potentially grow significantly every year thereafter. This mass market sales forecast, combined with Galaxy's current UK health food store sales, would increase Galaxy's sales to the UK over the next twelve months to approximately $2 million. Ms. Moss also stated that Brewhurst expects to gain distribution in all the major UK chains including Sainsburys, Waitrose, Tescos and Safeways.

Angelo S. Morini, Galaxy's Chairman and President commented, "We knew it was only a matter of time before our products gained distribution into the UK mass market. With the unfortunate incidence of mad cow and hoof and mouth disease currently prevalent in the UK, approximately one-third of the people have become vegetarian. Therefore, safe and healthy dairy alternatives such as Galaxy's are in great demand. Also, with our current success in the UK health food market, we have full confidence our products will also enjoy great success in the mass market. The sales potential is very significant for Galaxy considering the size and strategic need of this multi-billion dollar market." Sales to food service (schools, colleges, hospitals, pizza shops and others in the mass market) are also being addressed.

About Galaxy Nutritional Foods
Galaxy Nutritional Foods is the leading producer of health-promoting plant-based dairy and dairy-related alternatives for the retail and foodservice markets. These phytonutrient- enriched products, made from nature's best grains - soy, rice and oats - are low and no fat (no saturated fat and no trans-fatty acids), have no cholesterol, no lactose, are growth hormone and antibiotic free and have more calcium, vitamins and minerals than conventional dairy products. Because they are made with plant proteins, they are more environmentally friendly and economically efficient than dairy products derived solely from 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: Veggie™, Nature's Alternative, Galaxy™, Soyco™, Soymage™, Wholesome Valley™, formägg®, Lite Bakery®, Veggie Café™ and Veggie Lite Bakery™. 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.