November 2, 1998
Orlando, FL

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

Subway Founder Makes Strategic Investment in Galaxy Foods

Orlando, Florida (November 2, 1998)… Galaxy Foods Company, makers of healthy dairy and dairy-related products including Veggie® brand products, the number one growth brand in America (IRI, InfoScan Review), today announced the completion of a strategic private placement with one of the foremost leaders and proponents of healthy foods in the world today. Mr. Fred DeLuca, Chairman and Founder of Subway Restaurants purchased 2,500,000 shares of the Company's common stock at market price on October 8, 1998, the date of the agreement.

"After visiting Galaxy in September, I came away confident that they had developed several innovative products that are positioned correctly to capture significant market share amongst educated consumers", stated Mr. DeLuca. "I was impressed with Galaxy's rapid product development process and their efficient manufacturing facility. Galaxy's focus on nutraceutical products should allow them to develop a substantial brand position in this growing segment", Mr. DeLuca concluded. Subway operates 13,500 restaurants in 65 countries.

Angelo S. Morini, Galaxy's Chairman and President added, "We are proud to have Mr. DeLuca as a significant shareholder and look forward to a long and prosperous relationship. I deeply admire his vision and success and believe the synergism between our companies will create many exciting and wonderful opportunities."

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 cholesterol and no lactose and contain more vitamins and minerals than conventional cheese. Galaxy brand names include formagg, 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).