Lifeway Foods Reports Record 1st Quarter 2009 Revenues

* Reuters is not responsible for the content in this press release.

Tue Apr 7, 2009 5:21pm EDT

- Total consolidated sales for the 1st quarter 2009 rose 24% to $13,741,500
from 2008.

- Existing Lifeway Sales for 1st Quarter 2009 Rose 11% to $12,350,000 from
2008.

- Recently Acquired Freshmade Dairy Records revenues of $1,391,000 from
February 9, 2009 to March 31, 2009.

MORTON GROVE, Ill., April 7 /PRNewswire-FirstCall/ -- Lifeway Foods (Nasdaq:
LWAY), makers of a nutritious, probiotic dairy beverage called kefir,
announced today for the first quarter ended March 31, 2009, total consolidated
sales increased 24% to $13,741,500 from $11,122,000 during the same period a
year ago.  The company's existing product lines grew 11% and the recently
acquired Freshmade Dairy recorded revenues of $1,391,000 in the seven weeks
from February 9, 2009 to March 31, 2009.

Edward Smolyansky, CFO commented, "We are extremely pleased with our first
quarter 2009 revenue results.  Given these tough economic times, the strong
growth we experienced in the first quarter is a direct result of the marketing
and educational initiatives we have invested in during the second half of
2008, and will serve as a strong foundation for future growth.  In addition to
the growth of the existing product lines, the recently acquired Freshmade
Dairy recorded sales of $1,391,000 in the seven weeks since the transaction
closed to March 31, 2009.  We are very pleased at these results as well, as
this subsidiary is on pace to exceed their 2008 sales."  

Smolyansky added, "Given the increased cash flows derived both from the newly
acquired company and the record low conventional milk prices we are currently
experiencing, we have begun to aggressively pay down the debt related to the
financing of the acquisition, and as of today we have paid down approximately
$1 million of this debt, which is important initiative in keeping our balance
sheet strong."

About Lifeway Foods
Lifeway, recently named Fortune Small Business' 97th Fastest Growing Small
Business, and one of only 4 companies to ever be named to the list four
straight years in a row, is America's leading supplier of the cultured dairy
product known as kefir, and now America's only supplier of Organic 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!

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.

Lifeway Foods, +1-847-967-1010


SOURCE  Lifeway Foods, Inc.

Lifeway Foods, +1-847-967-1010
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