Galaxy Nutritional Foods Announces Staff Reductions Expected To Save More Than $700,000 Annually

Apr 16, 2001, 01:00 ET from Galaxy Nutritional Foods, Inc.

    ORLANDO, Fla., April 16 /PRNewswire/ -- Galaxy Nutritional Foods, Inc.
 (Amex:   GXY), a leading producer of delicious and nutritious health-promoting
 dairy and dairy-related alternatives for the retail, foodservice and
 industrial markets, today announced that it has eliminated several positions
 that will lead to savings of more than $700,000 annually for the Company,
 reduce redundancies experienced in the sales, marketing, and finance
 departments as well as capitalize on newly proven software efficiencies.
     Under the staff reductions, Chief Financial Officer Keith Ewing will be
 replaced by Cynthia Hunter who will serve as acting Chief Financial Officer.
 Ms. Hunter served as the CFO of Galaxy for 3 years prior to Mr. Ewing's
 appointment last February.  At that time, in anticipation of the birth of her
 second child, Ms. Hunter assumed the position of Controller.  Ms. Hunter has
 worked directly with the previous CFO to accomplish Galaxy's financing
 objectives this past year.
     Other positions that have been eliminated or consolidated include, but are
 not limited to, Mike Rapport, Vice President of Foodservice.  Under the
 realignment, responsibility for the foodservice division will fall under
 Galaxy's Vice President of Sales, John Jackson.
     Galaxy President, Chairman, and Chief Executive Officer Angelo Morini,
 commented, "We thank these loyal employees for their contributions to Galaxy.
 We felt it was prudent to eliminate and consolidate certain positions and
 streamline our organizational structure while cutting costs to maintain a
 leaner and more efficient operational structure.  These staff reductions, our
 recent retention of Tucker Anthony Sutro Capital Markets as financial advisor
 and newly installed software which more effectively controls sales and
 purchasing processes are all intended to result in greater value for our
 shareholders."
 
     About Galaxy Nutritional Foods, Inc.
     Galaxy Nutritional Foods is a leading producer of health-promoting dairy
 and dairy-related alternatives for the retail, foodservice and industrial
 markets.  The Company manufactures plant-based products that are low or no fat
 (no saturated fat), have no cholesterol, contain no lactose and are growth
 hormone and anti-biotic free and have more vitamins and minerals than
 conventional dairy products through a safer proprietary hot-process.  Galaxy
 products, available at health food stores and grocers, are part of the
 nutritional or functional food category, the fastest growing segment of the
 retail food market.  Galaxy brand names include Veggie Milk(TM), Veggie
 Slices(TM), formagg(R), Soyco(R), Soymage(R), Wholesome Valley(TM), Lite
 Bakery(R), Veggie Cafe(TM) and Veggie Lite Bakery(R).  For more information,
 please visit the Company's Web site at www.galaxyfoods.com.
 
     This press release contains "forward-looking" statements within the
 meaning of the Private Securities Litigation Reform Act of 1995.  Such
 forward-looking statements involve known and unknown risks, uncertainties, or
 other factors which may cause actual results, performance or achievements of
 the company to be materially different from any future results, performance or
 achievements expressed or implied by such forward-looking statements.  Readers
 are cautioned not to place undue reliance on those forward-looking statements
 which speak only as of the date hereof.  The company undertakes no obligation
 to release publicly any revisions to these forward-looking statements to
 reflect events or circumstances after the date hereof or to reflect
 unanticipated events or developments.
 
 

SOURCE Galaxy Nutritional Foods, Inc.
    ORLANDO, Fla., April 16 /PRNewswire/ -- Galaxy Nutritional Foods, Inc.
 (Amex:   GXY), a leading producer of delicious and nutritious health-promoting
 dairy and dairy-related alternatives for the retail, foodservice and
 industrial markets, today announced that it has eliminated several positions
 that will lead to savings of more than $700,000 annually for the Company,
 reduce redundancies experienced in the sales, marketing, and finance
 departments as well as capitalize on newly proven software efficiencies.
     Under the staff reductions, Chief Financial Officer Keith Ewing will be
 replaced by Cynthia Hunter who will serve as acting Chief Financial Officer.
 Ms. Hunter served as the CFO of Galaxy for 3 years prior to Mr. Ewing's
 appointment last February.  At that time, in anticipation of the birth of her
 second child, Ms. Hunter assumed the position of Controller.  Ms. Hunter has
 worked directly with the previous CFO to accomplish Galaxy's financing
 objectives this past year.
     Other positions that have been eliminated or consolidated include, but are
 not limited to, Mike Rapport, Vice President of Foodservice.  Under the
 realignment, responsibility for the foodservice division will fall under
 Galaxy's Vice President of Sales, John Jackson.
     Galaxy President, Chairman, and Chief Executive Officer Angelo Morini,
 commented, "We thank these loyal employees for their contributions to Galaxy.
 We felt it was prudent to eliminate and consolidate certain positions and
 streamline our organizational structure while cutting costs to maintain a
 leaner and more efficient operational structure.  These staff reductions, our
 recent retention of Tucker Anthony Sutro Capital Markets as financial advisor
 and newly installed software which more effectively controls sales and
 purchasing processes are all intended to result in greater value for our
 shareholders."
 
     About Galaxy Nutritional Foods, Inc.
     Galaxy Nutritional Foods is a leading producer of health-promoting dairy
 and dairy-related alternatives for the retail, foodservice and industrial
 markets.  The Company manufactures plant-based products that are low or no fat
 (no saturated fat), have no cholesterol, contain no lactose and are growth
 hormone and anti-biotic free and have more vitamins and minerals than
 conventional dairy products through a safer proprietary hot-process.  Galaxy
 products, available at health food stores and grocers, are part of the
 nutritional or functional food category, the fastest growing segment of the
 retail food market.  Galaxy brand names include Veggie Milk(TM), Veggie
 Slices(TM), formagg(R), Soyco(R), Soymage(R), Wholesome Valley(TM), Lite
 Bakery(R), Veggie Cafe(TM) and Veggie Lite Bakery(R).  For more information,
 please visit the Company's Web site at www.galaxyfoods.com.
 
     This press release contains "forward-looking" statements within the
 meaning of the Private Securities Litigation Reform Act of 1995.  Such
 forward-looking statements involve known and unknown risks, uncertainties, or
 other factors which may cause actual results, performance or achievements of
 the company to be materially different from any future results, performance or
 achievements expressed or implied by such forward-looking statements.  Readers
 are cautioned not to place undue reliance on those forward-looking statements
 which speak only as of the date hereof.  The company undertakes no obligation
 to release publicly any revisions to these forward-looking statements to
 reflect events or circumstances after the date hereof or to reflect
 unanticipated events or developments.
 
 SOURCE  Galaxy Nutritional Foods, Inc.