Lifeway Foods Announces Expanded La Fruta(TM) Drinkable Yogurt Distribution

Lifeway Foods, Inc., makers of a nutritious, probiotic dairy beverage called kefir, announced today expanded distribution of its La Fruta(TM) Drinkable Yogurt to about 150 "supercenter" stores in California. These stores, such as Super A, generate about $750,000 a week in revenue. Additionally, Lifeway also began shipments this week to the "99 Cents Only" chain, which operates about 100 stores in the region.
Julie Smolyansky, CEO, commented "This is another important market for us to target as consumers continue to shop for bargains in these extremely tough economic times. La Fruta(TM) is a brand that we have not recently focused on, but is a brand that we feel can be very strong in targeted markets in this economic climate. Additionally, with milk prices at historic lows, and March milk prices being the lowest on record, we really have the opportunity to continue to expand the La Fruta(TM) brand as well as our other flagship Kefir brands, which have shown tremendous growth themselves in the first quarter of 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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