For Immediate Release:
January 9, 2002

GALAXY NUTRITIONAL FOODS
ULTRA SMOOTHIE™ WITH TROPICANA® JUICES
SCORING HIGH IN SUBWAY® TEST MARKET

ORLANDO, Florida (January 9, 2002) - Galaxy Nutritional Foods (AMEX:GXY), a leading producer of nutritious plant-based dairy alternatives for the retail and foodservice markets, announced that its Ultra Smoothie™ product, a healthy and delicious blend of Tropicana® juices and the Company's Veggie Milk™, is testing very well in several Subway® franchise stores in the Fort Lauderdale, Florida area. These are the same test stores where the Company's Veggie Slices™, the number-one selling dairy alternative slices in supermarkets nationwide, have been testing successfully for the past few months.

The Ultra Smoothie™, made with Tropicana® juices, provides plant-based proteins and is one of the most nutritious smoothie products made, containing one serving of plant proteins and a serving and a half of top-quality juice. The Company believes its delicious, quick and easy-serve smoothie product is a great addition to the highly successful healthy marketing campaign of Subway® stores, and sales of the smoothie should result in significant incremental sales for these test stores, just as Veggie Slices™ are doing.

Additionally, the Company announced that it intends to introduce the Ultra Smoothie™ single serve product into retail stores nationwide during the first quarter of 2002. This product will be sold next to the Company's extensive line of Veggie™ brand dairy alternatives, which are category leaders in the dairy and dairy-related alternatives category. Galaxy has a four-year licensing agreement with Tropicana® to use their name and logo on Ultra Smoothie™ packaging and marketing materials for dispenser products in all retail outlets and for the single serve product in immediate consumption locations such as convenient stores, delis, club stores, mass merchandisers, schools, colleges & universities, hospitals, nursing homes, quick service restaurants and other foodservice retail outlets.

Angelo S. Morini, Galaxy's Chairman and President stated "Subway's® overall sales increased approximately 25% during 2001 while most other fast food chains have experienced declining sales. This significant rise in sales is mainly attributed to Subway's® highly successful advertising and marketing campaign featuring Jared Fogel, who lost 245 pounds in one year by eating Subway low fat subs without cheese. We believe our Veggie Slices™, are a natural accompaniment to Subway® subs, since plant-based Veggie Slices™ are low in fat, are cholesterol free and contain no saturated fat or trans-fatty acids. This is why they are testing so well in the South Florida market. We also believe our Ultra Smoothie™ product, made with Tropicana® juices, will prove to be another natural addition to fast-food outlets and restaurants, such as Subway®, who are trying to appeal to health-conscious customers. We are also very excited about the up-coming introduction of the Ultra Smoothie™ into the retail market and have every reason to believe it will be a big winner. After all, the smoothie category is one of the fastest growing in food product sales, and the Ultra Smoothie™ offers great nutrition with a great taste," Morini concluded.

About Galaxy Nutritional Foods, Inc.

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.