August 25, 1998
Orlando, FL

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

GNC PLACES FIRST ORDER FOR GALAXY FOODS' ULTIMATE SMOOTHIE

ORLANDO, FLORIDA (August 25, 1998) - Galaxy Foods Company (Nasdaq: GALX), makers of healthy cheese and dairy-related products, today announced it has received the first order for its newest product -- The Ultimate Smoothie™ -- from General Nutrition Centers (GNC), the leading national (3,700 store) specialty retailer of vitamin and mineral supplements, sports nutrition and herbal products. Shipments of the product are expected to commence in September.

The Ultimate Smoothie is a distinctive all-natural protein energy supplement. This powdered mix consists of an ultra high-efficiency blend of soy and other proteins fortified with isoflavones, vitamins, minerals and key energy sources. The Ultimate Smoothie will be the most comprehensive smoothie mix on the market by addressing the physical, nutritional and psychological needs of today's active lifestyles. The Ultimate Smoothie has protein to repair and build muscles during and after physical activity, essential vitamins and minerals to support great health and newly discovered energy sources that invigorate physical and mental stamina all day long.

Angelo Morini, president of Galaxy Foods, stated, "We are extremely pleased with The Ultimate Smoothie and view it as a natural extension of our specialization in health-promoting soy-based products. While GNC was the first to place an order for the Ultimate Smoothie, we plan to market and distribute the product through various channels including health food stores, natural food and specialty retailers and supermarkets." Plans are currently under way for an extensive marketing and merchandising program to promote the product at store level.

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. You may also obtain more information from our site on the World Wide Web at http://www.galaxyfoods.com (best viewed through Netscape Navigator).