Galaxy Nutritional Foods (AMEX:GXY), a leading producer of nutritious plant-based dairy alternatives for the retail and foodservice markets, today announced it will begin shipping significant quantities of its healthy Veggie(TM) Brand Dairy Alternatives to a major Japanese food distributor for distribution in supermarket chains and other channels of distribution throughout Japan. The company expects sales of its products to Japan to exceed $2 million in the first year with an eventual sales potential of over $100 million.

John W. Jackson, Galaxy's Vice President of Retail Sales, stated, "After more than two years of combined efforts by Galaxy's management team and our Japanese partners, we are very excited to now add Japan to our growing list of international customers. We are especially excited to be associated with such an esteemed company as Sumitomo Corporation as well as their management team who are well-respected in their industry."

Angelo S. Morini, Galaxy's Chairman and President commented, "The timing could not be more perfect for our products to enter the Japanese market in a big way. The Japanese are No. 1 in longevity but health problems due to lifestyle and diet changes are mounting. Traditionally, Japanese consume large quantities of soy and rice protein; the same health-promoting proteins found in Galaxy's Veggie(TM) Brand Dairy Alternatives. The Japanese government is encouraging its citizens to take more control of their health since the number of elderly Japanese is increasing and the number of children in Japan have declined to a post-war low. Unfortunately the incidence of obesity, diabetes, increased fat in blood (blood lipids), and high blood pressure are all significantly on the rise in Japan and are affecting the health of the Japanese people. Per capita consumption of animal based cheese products in Japan alone is approximately 3 pounds, as compared to over 30 pounds per person in the United States and more than 40 pounds in Europe. The opportunity for growth is substantial because the Japanese love dairy products but have a hard time with lactose intolerance, high animal fat, calories, cholesterol and many other food safety issues. Marketing data has indicated a great acceptance to Veggie(TM) Brand Dairy Alternatives made from Veggie Milk(TM) (soy, rice & oats) versus animal milk. Products such as Galaxy's phytonutrient-enriched, saturated-fat free and lactose free Veggie(TM) Brand Dairy Alternatives are expected to play a very significant and meaningful role as the Japanese look for healthier ways to `westernize' their diets."

About Galaxy Nutritional Foods

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(TM), Nature's Alternative, Galaxy(TM), Soyco(TM), Soymage(TM), Wholesome Valley(TM), formagg®, Lite Bakery®, Veggie Cafe(TM) and Veggie Lite Bakery(TM). For more information, please visit Galaxy's website at http://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.