Lifeway Foods Announces New West Coast Distribution

Lifeway Foods, Inc., makers of a nutritious, probiotic dairy beverage called kefir, announced today new distribution of its ProBugs(TM) Organic Kefir in the northern California region through Costco. ProBugs(TM) Organic Kefir, which is geared towards children, comes in a patented no-spill pouch and will be sold in a twelve unit multi-pack consisting of kid friendly flavors, Orange Creamy Crawler(TM) and Goo Berry Pie(TM). Shipments will begin in the third week of December 2008.

Julie Smolyansky, CEO commented, "This is a great opportunity for us to further expand a relatively new line of our Kefir products. ProBugs(TM) has been one of the most successful product launches in our company's history, and we are excited to bring this product to a previously untapped market for families looking for value during difficult economic times. This has been one of our main focuses for the second half of 2008 and 2009."

About Lifeway Foods
Lifeway, recently named Fortune Small Business' 49th Fastest Growing Small Business, is America's leading supplier of the cultured dairy product known as kefir. Lifeway Kefir is a dairy beverage that contains Lifeway's exclusive 10 Live and Active probiotic cultures. While most regular yogurt only contains two or three of these "friendly" cultures, Lifeway kefir products offer more nutritional benefits. Lifeway offers 12 different flavors of its Kefir beverage, Organic Kefir and SoyTreat (a soy based kefir). Lifeway recently introduced a series of innovative new products such as pomegranate kefir, Greek-style kefir, a children's line of organic kefir products called ProBugs (TM) in a no-spill pouch in kid-friendly flavors like Orange Creamy Crawler and Sublime Slime Lime, and a line of organic whole milk kefir. Lifeway also produces a line of products marketed in US Hispanic communities, called La Fruta, Drinkable Yogurt (yogurt drinks distinct from kefir). In addition to its line of Kefir products, the company produces a variety of cheese products and recently introduced a line of organic pudding called It's Pudding!
Live conference calls will now be on an annual basis to discuss fiscal full year results. For more information, contact Lifeway Foods, Inc. at (847) 967-1010 or e-mail at [email protected] and visit .

This news release contains forward-looking statements. Investors are cautioned that actual results may differ materially from such forward-looking statements. Forward-looking statements involve risks and uncertainties including, but not limited to, competitive pressures and other important factors detailed in the Company's reports filed with the Securities and Exchange Commission.

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