September 11, 1998
Orlando, FL

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

POTENTIAL NASDAQ DELISTING OF GALAXY FOODS

ORLANDO, FLORIDA (September 11, 1998) - Galaxy Foods Company (NASDAQ: GALX) today reported the Company has been notified by Nasdaq of a potential delisting from their Small Cap Market. During 1997, Nasdaq issued new criteria for their SmallCap Market. These criteria included requirements for net tangible assets, public float, number of shareholders and minimum bid price. As of September 11, 1998, the date on which the proposed delisting was to occur, Galaxy Foods far exceeds each new requirement, with the exception of maintaining a minimum bid price of $1.00. On September 11, 1998, the Company requested a hearing to appeal the proposed delisting. The Company anticipates that if it is delisted from Nasdaq following the hearing, that its shares will trade on the OTC bulletin board.

Galaxy Foods Company has reported five consecutive quarters of net profits and anticipates another profitable quarter and a dramatic increase in sales for the quarter ended September 30, 1998.

Galaxy Foods Company produces a complete line of healthy cheese and dairy related products for the retail, food service and industrial markets. Galaxy Foods is the inventor and originator of formägg, a new, healthier and better way to make cheese. Formägg products are low or no fat (no saturated fat), have no cholesterol and no lactose and contain more vitamins and minerals than conventional cheese. Other Galaxy brand names include 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).