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Lifeway Foods Announces Expanded Distribution and Growing Success of ProBugs(TM) Organic Kefir for Kids
Date:3/20/2008

MORTON GROVE, Ill., March 20 /PRNewswire-FirstCall/ -- Lifeway Foods, Inc. (Nasdaq: LWAY), makers of the nutritious, probiotic dairy beverage called Kefir, announced today, ProBugs(TM), the organic Kefir designed for kids, has secured new and expanded distribution for all three SKU's, in several chains across the country. These include about 160 new stores in the Harris Teeter grocery chain in the southeast, 75 new Cub Food Stores in the Midwest, and an increase from 30 test stores to about 175 stores at Ralph's, a Kroger owned grocery chain in southern California. This new distribution is in addition to the growing success of the product line at existing retailers such as Whole Foods, Kroger, and other smaller independent chains.

Julie Smolyansky, Lifeway's CEO, commented, "We are very excited that ProBugs(TM) continues to grow tremendously, and as product line introduced only a year and a half ago, we feel it is already a success. Each month we ship more product than the previous month and this is a clear indication of the product's success."

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!.

For more information, contact Julie Smolyansky at Lifeway Foods, Inc. at (847) 967-1010 or e-mail at info@lifeway.net and visit http://www.lifeway.net.

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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SOURCE Lifeway Foods, Inc.
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