99.
The Company reported a net loss to common stockholders of ($2,545,790), or
($0.
These non-GAAP measures are not in accordance with, or an alternative for,
generally accepted accounting principles and may be different from non-GAAP
measures reported by other companies.

fermentation diners

ORLANDO, Fla.

bakery supermarkets

"It's Pudding ! (TM)" is a great addition to our growing product line and
we are excited to introduce it to our current and new customers," said Julie
Smolyansky, Lifeway Foods' president.5 million, compared with approximately $36. The increase in net sales primarily reflects higher contract
manufacturing (private label) revenues and an increase in sales of Wholesome
Valley(R) organic products."
"We look forward to fiscal 2006 with great optimism," continued Broll.06 per share, in the
fourth quarter of FY2004.

CONFERENCE CALL AND WEBCAST INFORMATION
The Company will host an investor conference call today at 11:00 a.
The cooperation between the Italian Trade Commission and Wumart , the
leading retailer operating some 450 stores in the Beijing area, is based on
Wumart's good reputation and the wide recognition of its brand name 'Wu Mei,'
which implies 'superior quality with competitive prices.

fis hotlink

"It's Pudding! (TM)" will be available this summer in the refrigerated section
of natural food stores and specialty sections of supermarkets nationwide.7 million casein effect
mentioned above
EBITDA, as adjusted (a non-GAAP measure), approximated $215,623 in FY2005 ,
compared with EBITDA, as adjusted, of approximately $3. With respect to non-cash compensation, it is calculated
based on fluctuations in the Company's stock price which are outside the
Company 's control and typically do not reflect the Company's operations.m.01 par value, authorized
85,000,000 shares; 18,411,474 and
15,657,321 shares issued 184,115 156,573
Additional paid-in capital 67,655,133 63,880,084
Accumulated deficit (47,924,064) (43,557,515)

19,915,184 20,479,142
Less: Notes receivable arising from the
exercise of stock options and sale
of common stock (12,772,200) (12,772,200)
Treasury stock, 30,443 shares,
at cost (120,461) (120,461)

Total stockholders' equity 7,022,523 7,586,481

TOTAL $27,769,666 $29,961,816


GALAXY NUTRITIONAL FOODS, INC. (HKEx: 8277),
the leading Chinese retailer in Beijing, today announced the opening of its
exhibition and promotion month of Italian food products, jointly sponsored by
the company and the Italian Trade Commission .

yeast fermentation

Morton Grove, Ill.
Certified organic by Oregon Tilth, "It's Pudding! (TM)" will be the only
organic pudding line available in the market and will be sold in a variety of
delicious flavors including Chocolate, Vanilla, Rice, Tapioca, and Banana.
For the twelve months ended March 31 , 2005, net sales increased 23% to
approximately $44.
"While the outsourcing of our manufacturing and distribution activities to
Schreiber Foods will require some non-recurring expenses in the near term, I
am optimistic that an earnings turnaround will be evident during the second
half of fiscal 2006 and in future years.
* To report positive cash flow from operating activities for FY2006 .

THIS PRESS RELEASE CONTAINS "FORWARD-LOOKING" STATEMENTS WITHIN THE
MEANING OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995. BEIJING, April 21 /Xinhua-PRNewswire/ -- Wumart Stores , Inc.newscom. Italian chefs will also prepare food on the site to share true
Italian cooking pleasures with customers.

cooks delis

Lifeway also
produces a line of products marketed in US Hispanic communities, called La
Fruta Drinkable Yogurt (yogurt drinks distinct from kefir). Galaxy brand
names include: Galaxy Nutritional Foods(R); Veggie(R); Veggie Nature's
Alternative(TM); Veggie Slices(R); Soyco(R); Soymage (R); Wholesome Valley(R);
Lite Bakery(R); and Galaxy Nutritional Foods Smart Choice Cheese Products (R).

fis ingredient

Smolyansky also added, "Because
Lifeway's Organic Pudding will be the only one in the market we are confident
that we could tremendously grow the line in both natural food stores and
supermarkets nationwide. While normal
yogurt only contains two or three of these cultures, Lifeway kefir products
offer more nutritional benefits.
Loss from operations totaled ($3,236,572) in FY2005, versus a loss from
operations of ($1,600,567) in FY2004.8 million, compared with approximately $8.14) per share, in the fourth quarter of FY2005, versus net income
available to common stockholders of $906 ,277, or $0.corporate-ir. 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.
Wumart believes that their chain stores could serve as a pre-marketing
platform for new products, as well as a window from which the Chinese
consumers encounter and enrich their life with international brands and
culture.

foods ingredients

"Our accomplishments during the past twelve months
include the elimination of a highly dilutive convertible preferred stock,
operating cost reductions, and the recent announcement of an outsourcing
agreement with Schreiber Foods that should result in additional cost savings
of several million dollars annually.
Cash flow provided by operating activities during FY2005 totaled $779,746,
compared with cash flow provided by operating activities of $2,236,350 in
FY2004. THE COMPANY UNDERTAKES NO OBLIGATION
TO PUBLICLY RELEASE ANY REVISIONS TO THESE FORWARD-LOOKING STATEMENTS TO
REFLECT EVENTS OR CIRCUMSTANCES AFTER THE DATE HEREOF OR TO REFLECT
UNANTICIPATED EVENTS OR DEVELOPMENTS.
Activities were initiated by the Italian Trade Commission, and more than
400 food items, beverages and spices, representing traditional Italian food
culture are being introduced to Chinese consumers.

exporting foodnet

2 million in
FY2004 ."
Results for FY2005 included non-cash compensation expense of $834,746,
whereas results for the previous year included non-cash compensation expense
of $651,273. The call
will also be broadcast live on the Internet at
http://phx.

About Galaxy Nutritional Foods, Inc.

delis cooks

The Company no longer does business with this customer, and in the
future Galaxy will instead sell the same or similar products directly to the
major mass merchandiser that was the ultimate purchaser of the products
previously sold to the private label customer. Additionally, FY2005 and FY2004 results included employment
contract expense of $444,883 and $1,830,329, respectively.
Loss from operations , excluding non-cash compensation and employment
contract expense (a non-GAAP measure) totaled ($1 ,795,835) in the fourth
quarter of FY2005, versus operating income, excluding non-cash compensation
and employment contract expense, of $428,241 in the corresponding period of
the previous fiscal year.
* EBITDA, as adjusted, (a non-GAAP measure) to remain at positive levels
throughout FY2006.net/playerlink.
Galaxy Nutritional Foods(R) is the leading producer of health-promoting
plant-based dairy and dairy-related alternatives for the retail and
foodservice markets.

restaurateurs hotlink

Lifeway Foods Introduces 'It's Pudding! (TM)' a New Line of Organic Pudding

lifeway. The largest factors in the decrease in operating
profitability in the fourth quarter of FY2005, when compared with the fourth
quarter of FY2004, are the above-mentioned $1.27) $(0.

restaurateurs fis

Lifeway offers 12 different flavors of its
Kefir beverage, Organic Kefir and SoyTreat (a soy based kefir).30) per share, in FY2004 . Broll, Chief Executive Officer of Galaxy
Nutritional Foods, Inc. The
decrease in non-GAAP operating income was primarily the result of the
reduction in gross margin primarily due to the $2.8 million bad debt expense and
inventory write-off as well as the higher casein costs in the current fiscal
year.
Given no change in the current business or economic environment, the
Company expects:
* Double-digit percentage growth in sales in FY2006, primarily through
additional branded sales derived from an expansion in distribution to
specifically identified markets. In its determination of non-GAAP measures, management excludes the
non-cash compensation related to stock -based compensation as well as the
employment contract expense from its analysis of operating income because it
believes that these items do not accurately reflect the Company's current on-
going operations. EDT;
shareholders and other interested parties may participate in the conference
call by dialing 800-322-0079 (international/local participants dial
973-409-9258), a few minutes before 11:00 am EDT on July 14, 2005.net/playerlink., with its first Beijing supermarket established in
1994 , is now operating 453 hypermarket, supermarket and convenience store
outlets.

vast beverage

The
pudding is also certified Kosher OU. To be offered in 4-ounce containers as 4-
packs by flavor, this new line of pudding will have a suggested retail price
of $3.
A healthy snack for both "on-the-go" adults and youngsters, the pudding
does not compromise on taste or convenience.

Galaxy Nutritional Foods Reports FY2005 Operating Results

* To report positive operating profits, as adjusted (a non -GAAP measure)
for the fiscal year ending March 31, 2006.
EBITDA, as adjusted , (a non-GAAP measure) Reconciliation
(Unaudited)

Years ended March 31, 2005 2004 2003

NET SALES $44,510,487 $36,176,961 $40,008,769

NET INCOME (LOSS) $(4,366,549) $(2 ,962,173) $1,034,128
Plus:
Non-cash compensation
expense (income) 834,746 651,273 (2,906,762)
Employment contract expense 444,883 1,830 ,329 --
Interest expense 1,129,977 1,361,606 2,923,215
Depreciation and amortization
expense 2,172,566 2,205,053 2,273,349
EBITDA, as adjusted $215,623 $3,086,088 $3,323,930

As a % of Net Sales 0.5% 8.5% 8.3%

diners cofalec

galaxyfoods.com/cgi-bin /prnh/20050421/WUMARTLOGO )
As a major part of the program '' Made in Italy,"
traditional Italian food and culture are being displayed and promoted at 17
Wumart hypermarket and supermarkets starting from April 20 to May 20, 2005. ''It is going to be good marketing for these
products, as the Beijing and China market is a place full of opportunities and
competition,'' said Mr.
Wumart Stores , Inc.

foods yeast

Kefir is a milk-based beverage
that contains ten types of "friendly," active probiotic cultures .7 million in cost of goods sold.
In the fourth quarter of FY2005, the Company's sales increased 27% to
approximately $10.30) $(0. It was successfully listed on Hong Kong Stock Exchange in November
2003. Within 10 year's, the company has become the leading retail chain
operator in Beijing and the surrounding area with a rapid expansion in scale
and steady growth in both revenue and profit.

ingredients bakeries

, Lifeway Foods, Inc. Unlike other pudding snacks, "It's Pudding!(TM)" is made with all
natural ingredients and no artificial flavors, colors or preservatives making
it a great alternative for Lifeway's market of health conscious customers
leading active lifestyles. This unique line of gluten-free,
low in cholesterol and low in sodium pudding generated a great response with
Lifeway 's current distributors and retailers at the most recent Natural
Products Expo in California and Food Marketing Institute show in Chicago. The average price
of casein, a key ingredient in most of the Company's products, increased an
average of 32% in FY2005, which cost increase resulted in an increase of
approximately $2.
The Company reported a net loss to common stockholders of ($4,652,726 ), or
($0.27) per share, in FY2005, versus a net loss to common stockholders of
($4,504,907), or ($0. The recent decision
by a major mass merchandiser to purchase our alternative cheese products
directly from our Company illustrates the power of our brands, and we intend
to greatly expand our visibility within the growing universe of health-
conscious consumers in future years.1 million in FY2004. Please refer to Galaxy's quarterly and annual reports
as filed with the Securities and Exchange Commission (SEC) for a more complete
description of risks.

Footnote on non-GAAP Measures Presented Above
Management utilizes certain non-GAAP measures such as operating income , as
adjusted, and EBITDA, as adjusted, because it provides useful information to
management and investors in order to accurately review the Company's current
on-going operations and business trends related to its financial condition and
results of operations. The
call will be archived on the Internet through October 14, 2005 at
http://phx. Because they
are made with plant proteins, the products are more environmentally friendly
and economically efficient than dairy products derived solely from animal
proteins. Galaxy's products are part of the healthy and natural foods
category , the fastest growing segment of the retail food market.

vast fis

at (847) 967-1010 or
e-mail at http://www ., Galaxy Nutritional Foods,
Inc.
EBITDA, as adjusted, is comprised of net income before interest , taxes,
depreciation and amortization, and is exclusive of employment contract expense
as well as non-cash compensation related to stock options and warrants.
Music and wine tasting will entertain local consumers bringing a new shopping
experience.

diners caught

"Although our fiscal 2005 operating results suffered due to sharply higher
raw materials costs and a large bad debt expense, I believe we have made
tremendous progress in terms of positioning Galaxy for a return to
profitability and a resumption in growth consistent with our market
opportunity," commented Michael E. Excluding these
non-cash compensation and employment contract items, the Company's operating
loss, as adjusted (a non-GAAP measure), totaled ($1,956,943) in FY2005,
compared with operating income, as adjusted, of $881,035 in FY2004.
For more information, please visit Galaxy's website at:
http://www. READERS
ARE CAUTIONED NOT TO PLACE UNDUE RELIANCE ON THOSE FORWARD-LOOKING STATEMENTS,
WHICH SPEAK ONLY AS OF THE DATE HEREOF.
Balance Sheets

MARCH 31, MARCH 31,
2005 2004
ASSETS
CURRENT ASSETS:
Cash $561,782 $449,679
Trade receivables, net of allowance for
doubtful accounts of $2,299,000
and $633,000 4,644,364 3,964,198
Inventories 3,811,470 4,632 ,843
Prepaid expenses and other 219,592 266,301

Total current assets 9,237,208 9,313,021

PROPERTY AND EQUIPMENT, NET 18,246,445 20,232,089
OTHER ASSETS 286,013 416,706

TOTAL $27,769,666 $29,961 ,816

LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Line of credit $5,458,479 $4,605,277
Accounts payable 3,057,266 1,266,346
Accrued and other current liabilities 2,130,286 2,452,300
Current portion of accrued employment
contract 586,523 366,305
Current portion of term notes payable 1,320,000 1,140,000
Current portion of obligations under
capital leases 194,042 231,432

Total current liabilities 12,746,516 10,061,660


ACCRUED EMPLOYMENT CONTRACT, less current
portion 993,305 1,293,142
TERM NOTES PAYABLE, less current portion 6,921,985 8,241,985
OBLIGATIONS UNDER CAPITAL LEASES, less
current portion 85,337 204,967

Total liabilities 20,747,143 19,801,754

COMMITMENTS AND CONTINGENCIES -- --

REDEEMABLE CONVERTIBLE PREFERRED STOCK - - 2,573,581

STOCKHOLDERS' EQUITY:
Common stock, $.

Beijing's Wumart Stores Create Arena for the Debut of 'Made in Italy'

bakeries vast

Without the cost burden associated
with our current production facilities and with a much-strengthened balance
sheet, we can focus upon marketing and other activities that can leverage
Galaxy's strong brands in the healthy foods marketplace. Additionally, these measures are key factors upon
which the Company prepares its budgets, forecasts and evaluates loan
covenants . Veggie products are low fat
and fat free (saturated fat and trans-fatty acid free), cholesterol and
lactose free, are growth hormone and antibiotic free, and have more calcium,
vitamins and other minerals than conventional dairy products.


GALAXY NUTRITIONAL FOODS, INC.
Statements of Operations

Years ended March 31, 2005 2004 2003

NET SALES $44,510,487 $36,176,961 $40,008,769

COST OF GOODS SOLD 34,736,594 24,864,289 28,080 ,188

Gross margin 9,773,893 11,312,672 11,928,581

OPERATING EXPENSES:
Selling 5,148,426 4,981,996 4,958,272
Delivery 2,307,166 1,877,682 2,008,638
Non-cash compensation
related to stock-based
transactions-general
and administrative 834,746 651 ,273 (2,906,762)
Employment contract
expense-general and
administrative 444,883 1,830,329 --
General and administrative 3,970,690 3,303,030 3,570,889
(Gain) Loss on asset disposals (4,500) 8,519 47 ,649
Research and development 309,054 260,410 232,552
Total operating expenses 13,010,465 12,913,239 7,911,238

INCOME (LOSS) FROM
OPERATIONS (3,236,572) (1,600,567) 4,017,343

OTHER INCOME (EXPENSE):
Interest expense (1,129,977) (1,361,606) (2,923,215)
Other expense -- -- (60,000)
(1,129,977) (1,361,606) (2,983,215)

NET INCOME (LOSS) $(4,366,549) $(2,962,173) $1 ,034,128

Less:
Preferred Stock Dividends 82,572 201,791 264,314
Preferred Stock Accretion
to Redemption Value 203,605 1,340,943 1,370,891

NET LOSS TO COMMON
STOCKHOLDERS $(4,652,726) $(4,504,907 ) $(601,077)


BASIC AND DILUTED NET LOSS
PER COMMON SHARE $(0 .

fermentation ingredients

In addition to its
line of Kefir products, the company also produces a variety of cheese
products . Gross profit margin decreased to 22% of sales in
FY2005, from 31% in the previous fiscal year, due primarily to higher raw
material costs and lower margins on private label business.

cofalec fis

For more information, contact Lifeway Foods Inc. (Amex: GXY), a leading producer and marketer of nutritious plant-based
dairy alternatives for the retail and foodservice markets, today reported its
operating results for FY2005. An exclusive, new and technologically advanced, safer
"hot process" is used to produce these phytonutrient-enriched products, made
from nature's best grains -- soy, rice and oats.
Among the products displayed and promoted, 50 items are to be launched to
the Chinese market shortly. Lai Shiping, the Chief Representative of the Italian
Trade Commission Beijing Office .

yeast caught

net .zhtml?c=102653+s=wm+e=1099448.com.
(Logo: http://www.' Wumart has actively
entered the cooperation with the Italian government agency to secure the
success of 'Made in Italy' promotion month in hopes of introducing new food
and consumption culture to customers to satisfy the need for variety.

fis ingredient

(Nasdaq: LWAY), the nation's leading Kefir Company, today announced the
introduction of its new line of all natural, organic pudding under the name
"It's Pudding! (TM)".

The decrease in operating cash flow versus the prior-year period was
primarily due to higher raw material costs and increased accounts receivables
related to higher sales volumes.5 million in the
fourth quarter of the previous fiscal year.zhtml?c=102653+s=wm+e=1099448.corporate-ir.

About Wumart Stores, Inc.

foodservice cooks

Statements of Cash Flows

Years Ended March 31, 2005 2004 2003

CASH FLOWS FROM OPERATING ACTIVITIES:
Net Income (Loss) $(4,366,549) $(2,962,173) $1,034,128
Adjustments to reconcile
net income (loss) to
net cash from (used in)
operating activities:
Depreciation and
amortization 2,172,566 2,205,053 2,273 ,349
Amortization of debt
discount and
financing costs 116 ,522 236,321 1,264,273
Provision for losses
on trade receivables 1,666,000 (221) (177,245)
Non-cash compensation
related to stock-based
transactions 834,746 651,273 (2,906,762)
(Gain) Loss on disposal
of assets (4,500) 8,519 47,649
(Increase) decrease in:
Trade receivables (2,346,166) 999,049 364,907
Inventories 821,373 661,657 454,152
Prepaid expenses and
other 46,709 189,012 (67,369)
Increase (decrease) in:
Accounts payable 1,790,920 (1,426,143) (1,520,021)
Accrued liabilities 48,125 1,674,003 408,814

NET CASH FROM (USED IN)
OPERATING ACTIVITIES 779,746 2,236,350 1,175,875

CASH FLOWS FROM INVESTING
ACTIVITIES:
Purchase of property and
equipment (104,339) (221,585) (214,003)
Proceeds from sale of
equipment 4,500 -- --
(Increase) decrease in
other assets 34,837 (10,193) 113,977

NET CASH FROM (USED IN)
INVESTING ACTIVITIES (65,002) (231,778) (100,026)

CASH FLOWS FROM FINANCING
ACTIVITIES:
Decrease in book overdrafts -- (1,151,276) (41,580)
Net borrowings (payments)
on line of credit 853,202 (334,617) (583,981)
Borrowings on term notes
payable -- 2,000,000 500,000
Repayments on term notes
payable (1,140,000) (1,572,760) (1,763,265)
Repayments on
subordinated note
payable -- (4,000,000) --
Financing costs for long
term debt (37,500) (288,230) (239,539)
Principal payments on
capital lease obligations (239,603) (365,635) (431,937 )
Proceeds from exercise of
common stock options 18,856 16,217 4,250
Proceeds from exercise
of common stock warrants,
net of costs -- 360,000 --
Proceeds from issuance of
common stock under employee
stock purchase plan 24,002 28,527 19,663
Proceeds from issuance of
common stock, net of
offering costs 2 ,198,090 3,751,283 1,461,970
Redemption of preferred
stock (2,279,688) -- --

NET CASH FROM (USED IN)
FINANCING ACTIVITIES (602,641) (1,556,491) (1,074,419)

NET INCREASE (DECREASE)
IN CASH 112,103 448,081 1,430

CASH, BEGINNING OF YEAR 449,679 1,598 168

CASH, END OF YEAR $561,782 $449,679 $1,598


GALAXY NUTRITIONAL FOODS, INC.
In all the 17 stores, specially designed display counters with a strong
image of Italian culture will be stocked with items including Italian pasta,
coffee, chocolate, spices and ingredients for making pizza, and olive oil etc.

yeast bakeries

"
Lifeway, named as Forbes' 38th best small business and Fortune Small
Business' 47th Fastest Growing Small Business, is America's leading supplier
of the cultured dairy product known as kefir. Operating results for FY2005 included a
bad debt provision and inventory write-off of approximately $1.8 million
related to a single customer for which Galaxy manufactured private label
products.

Business Outlook for FY2006
The following statements are forward-looking in nature, and actual results
may differ materially.05)


GALAXY NUTRITIONAL FOODS, INC.

segments cooks

---

- - kjjkjk

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