February 28, 1997
Orlando, Florida
ORLANDO, FLORIDA (February 28, 1997) -- Galaxy
Foods Company (Nasdaq: GALX)
today announced it has decided not to enter into a joint venture
agreement with Pacific Foods Ltd., a subsidiary of AMPAC
International Inc., and Huzhou Zhenyuantong Foods MFY of the
People's Republic of China. Galaxy first reported the proposed
joint venture in a press release dated September 24, 1996 when it
announced the signing of a Letter of Intent with Pacific Foods
and HZ Foods to produce, sell and distribute various food
products to consumer markets in the PRC.
Angelo S. Morini, Galaxy's President, stated, "We were
recently advised that HZ Foods received government license
approval for the joint venture but they have now decided to
change the structure of the deal we agreed to. I believe these
changes are not in the best interest of Galaxy and we have
decided to pull out of the proposed joint venture."
"There will be other international joint venture and
licensing opportunities Galaxy will pursue", Morini further
stated. "I am disappointed by the turn in these events but
remain optimistic that it is only a matter of time before Galaxy
can consummate a sound and equitable international
partnership."
Galaxy Foods Company produces a complete line of healthy cheese
and cheese related products for the retail, food service and
industrial markets. Galaxy Foods is the inventor and originator
of form�gg�, a new, healthier and better way to make cheese.
Form�gg products are low or no fat (0 saturated fat), have no
cholesterol and no lactose and contain more vitamins and minerals
than conventional cheese. Other brands names include Soyco�,
Soymage� and Lite Bakery� For more information, contact Rebecca
Barksdale at 407-855-5500, extension 105. You may also obtain
more information from the WWW at http://www.galaxyfoods.com (best
viewed through Netscape Navigator).
