Monthly Insight - April 1999

"GALX" IS BACK...
Galaxy Foods Company received notification from the Nasdaq that the Company has met all criteria for continued listing on the Nasdaq SmallCap Market. Nasdaq has further notified Galaxy Foods that the hearing file regarding the Company's listing has been closed. Effective March 4, 1999, the trading symbol of the Company's securities reverted back to GALX. Additionally, due to the fact that the Company's securities are quoted on Nasdaq, its shares may be used for margin purposes.

Cynthia Hunter, CFO, stated "We are pleased with this recent notification by Nasdaq regarding our continued listing on the Nasdaq SmallCap Market. The Company has recently completed a one-for-seven reverse stock split to adjust the number of outstanding shares and the per share trading price. We believe the adjusted number of shares outstanding and the new trading price bring the Company in line with our market peers."

NATURAL PRODUCTS EXPO A NATURAL SUCCESS...
Success came naturally for Soyco Foods (Galaxy's health food division) at the Natural Products Industry Expo West held in Anaheim, California on March 12 - 14. Over 2,400 exhibitors were on hand to display and sample products to over 15,000 retailers, distributors, media and other industry professionals. Soyco Foods is readily acknowledged as the leading producer of healthy dairy products in this industry known for its highly demanding and discriminating consumers.

Soyco Foods had four product sampling stations for its healthy dairy alternatives in addition to a special food cart serving freshly-made quesadillas made with a variety of its cheeses. The excitement continued with a formal unveiling of The Ultimate Smoothie, complete with a smoothie machine dispensing ice-cold samples of four of our five delicious flavors. The response to The Ultimate Smoothie, which is now available for distribution to the natural products industry, was overwhelmingly positive.

GALAXY FOODS CREATES NUTRACEUTICAL DIVISION...
Galaxy Foods Company announced the formation of a Nutraceutical division which will be headed by Mike Rapport. Mr. Rapport worked with General Nutrition Centers for the past 20 years, most recently as president and chief operating officer of GNC Canada. As president for GNC Canada, he was the brand manager for the Canadian product lines. Mr. Rapport also developed GNC locations and product formulations for the Canadian market place.
The new division, under the guidance of Mike Rapport, will develop and market nutraceutical products for the health food and mass markets. The flagship product in this line is Galaxy's Ultimate Smoothie which is available in five flavors including chocolate, vanilla, orange, choccochino and strawberry. A nutraceutical product is one which improves your overall well-being while fulfilling your daily nutritional needs. Galaxy intends to expand its nutraceutical division to include an array of protein and soy based products.

Galaxy's president, Angelo Morini, stated "We are thrilled to have Mike Rapport join the Galaxy team. We feel his background in nutraceutical products will be invaluable to developing our new product positions. We believe that under Mike's leadership, this new division will achieve the same success and growth we have enjoyed with our Retail line of products."

VEGGIE MILK PROGRESS...
Veggie Milk is now available in supermarkets in New England, Florida, Virginia, Texas, the Carolinas, and will soon be available in Northern and Southern California! This is in addition to distribution through Wal-Mart's 500 supercenters.

GALAXY TO ATTEND EXPO ALIMENTOS...
On April 10 - 12, Galaxy Foods will be showcasing its complete line of retail and foodservice products to buyers and key decision makers from Puerto Rico, the Caribbean, and Central and South America at the Expo Alimentos trade show. The show, being held in San Juan, Puerto Rico, is where most major retail chains make their buying decisions. The show attracts buyers from around the world and is the premiere buying show for the Puerto Rican market. Puerto Rico's annual food consumption alone is estimated at $5 billion.

GALAXY OPEN FOR WEBSITE IDEAS...
We're doing some spring cleaning and putting a fresh coat of paint on our website (www.galaxyfoods.com) and would like your suggestions on what you'd like to see on the site. Planned additions include a monthly Q & A session with a registered dietitian called Ask the Nutritionist, expanding the "Where to Buy" list to include all retailers carrying the Veggie brand, monthly updates to new products and current events, and an update to the Monthly Drawing program.

If you have any ideas or suggestions relative to our website, please e-mail us by using our "Comments" form at www.galaxyfoods.com.

The most exciting addition to the website this year will be a complete on-line ordering system which will offer consumers the ability to purchase any Galaxy product directly from the Orlando facility. This will enable Galaxy to increase distribution to consumers living in remote areas of the country or those who don't have access to a progressive supermarket or health food store. This system will also help advance distribution of new products like Veggie Milk, which is now hitting store shelves in New England, Florida, Virginia, Texas, the Carolinas and California.

This easy-to-use ordering system will be housed on the Galaxy website and will allow consumers to order products using Visa, MasterCard or American Express. And, for those customers still wary of using an internet ordering system , we will also offer the option of ordering by fax, telephone or mail. As part of the program, customers will receive bonus gift items and advanced notice of new products. All products will be shipped via 2-day service and will be 100% guaranteed. The system should be in place sometime this Spring.

GALAXY TO TOUR EUROPE...
During the month of April, Galaxy Foods will be visiting a number of retailers and distributors in Britain, Ireland, Scotland, France, Italy and Spain. We have seen a dramatic increase in international interest, especially in the Soyco Foods line of healthy dairy alternatives. We trust this trip will result substantial additions to our list of export destinations.

ULTIMATE SMOOTHIE HEADING TO MIAMI BEACH...
Galaxy has accepted an invitation from GNC to participate in the Miami Beach Sport & Fitness Festival on March 25 - 28. Galaxy staff will be on hand sampling The Ultimate Smoothie and directing attendees to one of 30 GNC locations in the metro Miami area where they can purchase this incredible new product. Up to 150,000 people are expected to attend the event.

QUOTE OF MONTH...
The best things in life are never rationed. Friendship, loyalty, love, do not require coupons. G.T. Hewitt

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