Lifeway Foods Announces Record Second Quarter 2011 Sales Results Second Quarter 2011 Sales Increased 29% to $20.0 Million

MORTON GROVE, Ill., July 11, 2011 /PRNewswire/ — Lifeway Foods, Inc., (Nasdaq: LWAY), a leading supplier of cultured dairy products known as kefir and organic kefir, announced record sales results for the second quarter ended June 30, 2011.

Second quarter of 2011 gross sales increased 29% to $20.0 million compared to $15.5 million for the second quarter of 2010.  This increase is primarily attributable to increased sales and a growing awareness of the benefits of Lifeway’s flagship line, Kefir, as well as ProBugs® Organic Kefir for kids, and the successful introduction of new product lines such as Bio Kefir(TM) and Frozen Kefir.

Julie Smolyansky, CEO of Lifeway Foods, Inc. commented, “We are extremely pleased with our sales results as our quarterly sales performance is the second consecutive record increase. The depth of our kefir dairy products continues to resonate well with consumers looking for good nutrition reflected in the low-fat, low-calorie, and probiotic properties of Lifeway’s kefir products.”Smolyansky continued, “We have dramatically increased customer awareness of kefir and we are excited about our future growth opportunities.  We continue to expect 2011 to be a year of record sales and profitability.”

The Company does not plan to provide preliminary financial information in the future other than in unique circumstances, or in the event of a material event that requires disclosure. The Company expects to issue earnings results for the second quarter of 2011 the third week of August.

For more information about Lifeway Kefir, please visit http://www.lifewaykefir.com.