Headline: Press release

Lifeway Foods, Inc.
For Immediate Release

Lifeway Introduces new Pomegranate Kefir Flavor
LowFat Kefir sweetened with Organic Cane Juice


Morton Grove, Illinois, August 3, 2005 -- Lifeway Foods, Inc. (Nasdaq: LWAY), the nation’s leading Kefir Company, today announced the addition of Pomegranate Kefir, a new LowFat Kefir flavor to their growing product line.
 
Sweetened with Organic Cane Juice, Pomegranate Kefir contains all ten live and active cultures and has similar health benefits to other Lifeway Kefirs. Keeping in the Lifeway Kefir tradition, this new kefir flavor may also aid the immune and digestive systems, provide a great source of both calcium and protein and may even promote weight loss during a reduced calorie diet. It has a distinct yet subtle flavor that will quickly become a favorite among Lifeway’s customers.
 
Introduced at this summer’s Fancy Food Show in New York, Pomegranate Kefir was a definite hit among distributors and retailers at the show. Pomegranate Kefir will be heavily distributed using the same retail channels as all Lifeway Kefirs including health food and specialty stores nationwide.
 
Organic Cane Juice will now be the sweetener of choice not only for Pomegranate Kefir, but also for all LowFat Kefir flavors that Lifeway manufactures. Considered a much healthier alternative than high fructose corn syrup, Lifeway has always used organic cane juice for their organic line of kefir and will now reach an even more health conscious market with their newly sweetened LowFat Kefir line.
 
“We are very excited to sweeten our main line of Kefir with organic cane juice. The adjustment was made because of overwhelming demand from current and potential Lifeway customers,” said Julie Smolyansky, Lifeway Foods’ president. Smolyansky also added, “Pomegranate as a flavor is also tremendously growing in the market making us thrilled to add Pomegranate Kefir as a new flavor to our growing line of LowFat Kefirs.”
 
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. Kefir is a milk-based beverage that contains ten types of “friendly,” active probiotic cultures. Lifeway now offers 13 different flavors of its Kefir beverage, Organic Kefir and SoyTreat (a soy based 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 also produces a variety of cheese products and recently introduces a new line of pudding called “It’s Pudding!”.
 
For more information, contact Julie Smolyansky, President, Lifeway Foods Inc. at (847) 967-1010 or e-mail at info@lifeway.net and visit www.lifeway.net.

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