December 2, 1998
Orlando, FL

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

GALAXY FOODS ANNOUNCES RESULTS OF NASDAQ HEARING

ORLANDO, FLORIDA (December 2, 1998) - Galaxy Foods Company's common stock will continue to be listed on The Nasdaq SmallCap Market via an exception from the minimum bid price requirement.

While Galaxy Foods Company failed to meet this requirement as of September 11, 1998, the Company was granted a temporary exception from this standard subject to Galaxy Foods Company meeting certain conditions. The exception will expire on February 12, 1999. In the event the Company is deemed to have met the terms of the exception, it shall continue to be listed on the Nasdaq SmallCap Market. The company believes that it can meet these conditions through announcements during January 1999. If at some future date, the Company's securities should cease to be listed on The Nasdaq SmallCap Market, they may continue to be listed on the OTC Bulletin Board. For the duration of the exception, the company's Nasdaq symbol will be GALCD.

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 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).