| Lifeway Foods, Inc.For Immediate Release |   |
|------------------------------------------|--------|

| -   | Revenues Up 16% |
|---------------|-----------------|

| -   | Gross Profit Increases 26%; Q1 2010 Gross Margins up to 44% from 40% in Q1 2009 |
|---------------|---------------------------------------------------------------------------------|

| -   | Q1 2010 Net income up 14% to $1,768,689 or $.11 EPS vs. $1,547,466 or $.09 EPS in Q1 2009 |
|---------------|-------------------------------------------------------------------------------------------|

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|                                            |   | (Unaudited)        |       |
|-------------------------------------------------|--------|--------------------|------------|
|                                            |   | Three Months Ended |       |
|                                            |   | March 31,          |       |
|                                            |   | 2010               |       |   | 2009 |   |
|                                            |   |               |       |   |   |   |
| Sales                                           |   |               | 15,964,159 |   |   |   | 13,736,080 |   |
|                                            |   |               |       |   |   |   |   |   |
| Cost of goods sold                              |   |               | 8,618,999  |   |   |   | 8,000,052 |   |
| Depreciation expense                            |   |               | 403,375    |   |   |   | 216,774 |   |
|                                            |   |               |       |   |   |   |   |   |
| Total cost of goods sold                        |   |               | 9,022,374  |   |   |   | 8,216,826 |   |
|                                            |   |               |       |   |   |   |   |   |
| Gross profit                                    |   |               | 6,941,785  |   |   |   | 5,519,254 |   |
|                                            |   |               |       |   |   |   |   |   |
| Selling Expenses                                |   |               | 2,527,473  |   |   |   | 1,307,925 |   |
| General and Administrative                      |   |               | 1,490,157  |   |   |   | 1,497,126 |   |
| Amortization expense                            |   |               | 175,760    |   |   |   | 170,690 |   |
|                                            |   |               |       |   |   |   |   |   |
| Total Operating Expenses                        |   |               | 4,193,390  |   |   |   | 2,975,741 |   |
|                                            |   |               |       |   |   |   |   |   |
| Income from operations                          |   |               | 2,748,395  |   |   |   | 2,543,513 |   |
|                                            |   |               |       |   |   |   |   |   |
| Other income (expense):                         |   |               |       |   |   |   |   |   |
| Interest and dividend income                    |   |               | 54,508     |   |   |   | 62,211 |   |
| Rental Income                                   |   |               | 1,235      |   |   |   | 9,347 |   |
| Interest expense                                |   |               | (95,942    | ) |   |   | (154,383 | ) |
| Loss on Disposition of Equipment                |   |               | —    |   |   |   | — |   |
| Loss on sale of marketable securities, net |   |               | (29,259    | ) |   |   | (149,790 | ) |
| Total other income (Expense)                    |   |               | (69,458    | ) |   |   | (232,615 | ) |
|                                            |   |               |       |   |   |   |   |   |
| Income before provision for income taxes   |   |               | 2,678,937  |   |   |   | 2,310,898 |   |
|                                            |   |               |       |   |   |   |   |   |
| Provision for income taxes                      |   |               | 910,248    |   |   |   | 763,432 |   |
|                                            |   |               |       |   |   |   |   |   |
| Net income                                      |   | $                  | 1,768,689  |   |   | $ | 1,547,466 |   |
|                                            |   |               |       |   |   |   |   |   |
| Basic and diluted earnings per common share     |   |               | 0.11       |   |   |   | 0.09 |   |
|                                            |   |               |       |   |   |   |   |   |
| Weighted average number of shares outstanding   |   |               | 16,761,774 |   |   |   | 16,846,671 |   |

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|                                                                                                 |   | (Unaudited) |             |
|------------------------------------------------------------------------------------------------------|--------|-------------|------------------|
|                                                                                                 |   | March 31,   |             |
|                                                                                                 |   | 2010        |             |   | 2009 |   |
|                                                                                                 |   |        |             |   |   |   |
| Cash flows from operating activities:                                                                |   |        |             |   |   |   |
| Net income                                                                                           |   | $           | 1,768,689        |   |   | $ | 1,547,466 |   |
|                                                                                                 |   |        |             |   |   |   |   |   |
| Adjustments to reconcile net income to net cash flows from operating activities, net of acquisition: |   |        |             |   |   |   |   |   |
| Depreciation and amortization                                                                        |   |        | 579,135          |   |   |   | 387,464 |   |
| Loss on sale of marketable securities, net                                                           |   |        | 29,259           |   |   |   | 149,790 |   |
| Loss on disposition of assets                                                                        |   |        | —          |   |   |   | — |   |
| Deferred income taxes                                                                                |   |        | ( 222,915   | ) |   |   | 8,549 |   |
| Treasury stock issued for compensation                                                               |   |        | 31,159           |   |   |   | 51,160 |   |
| Decrease in allowance for doubtful accounts                                                          |   |        | —          |   |   |   | — |   |
| (Increase) decrease in operating assets:                                                             |   |        |             |   |   |   |   |   |
| Accounts receivable                                                                                  |   |        | ( 1,726,610 | ) |   |   | ( 1,136,258 | ) |
| Other receivables                                                                                    |   |        | 677              |   |   |   | 106,826 |   |
| Inventories                                                                                          |   |        | ( 572,849   | ) |   |   | 28,242 |   |
| Refundable income taxes                                                                              |   |        | 832,063          |   |   |   | ( 155,386 | ) |
| Prepaid expenses and other current assets                                                            |   |        | 2,250            |   |   |   | ( 13,965 | ) |
| Increase (decrease) in operating liabilities:                                                        |   |        |             |   |   |   |   |   |
| Accounts payable                                                                                     |   |        | 352,627          |   |   |   | 401,833 |   |
| Accrued expenses                                                                                     |   |        | 22,919           |   |   |   | 94,334 |   |
| Margin payable                                                                                       |   |        | —          |   |   |   | 423,032 |   |
| Accrued income taxes                                                                                 |   |        | —          |   |   |   | ( 197,694 | ) |
| Net cash provided by (used in) financing activities                                                  |   |        | 1,096,404        |   |   |   | 1,695,393 |   |
|                                                                                                 |   |        |             |   |   |   |   |   |
| Cash flows from investing activities:                                                                |   |        |             |   |   |   |   |   |
| Purchases of marketable securities                                                                   |   |        | ( 356,498   | ) |   |   | ( 1,757,574 | ) |
| Sale of marketable securities                                                                        |   |        | 531,455          |   |   |   | 2,318,620 |   |
| Purchases of property and equipment                                                                  |   |        | ( 603,015   | ) |   |   | ( 349,849 | ) |
| Acquisition of Fresh Made, net of cash acquired                                                      |   |        | —          |   |   |   | ( 2,850,888 | ) |
| Net cash used in investing activities                                                                |   |        | ( 428,058   | ) |   |   | ( 2,639,691 | ) |
|                                                                                                 |   |        |             |   |   |   |   |   |
| Cash flows from financing activities:                                                                |   |        |             |   |   |   |   |   |
| Proceeds of note payable                                                                             |   |        | —          |   |   |   | 1,729,990 |   |
| Checks written in excess of bank balances                                                            |   |        | 190,482          |   |   |   | — |   |
| Purchases of treasury stock, net                                                                     |   |        | ( 340,105   | ) |   |   | ( 101,628 | ) |
| Repayment of notes payable                                                                           |   |        | ( 496,953   | ) |   |   | ( 354,214 | ) |
| Net cash (used in) provided by in financing activities                                               |   |        | ( 646,576   | ) |   |   | 1,274,148 |   |
|                                                                                                 |   |        |             |   |   |   |   |   |
| Net increase in cash and cash equivalents                                                            |   |        | 21,770           |   |   |   | 329,850 |   |
|                                                                                                 |   |        |             |   |   |   |   |   |
| Cash and cash equivalents at the beginning of the period                                             |   |        | 630,407          |   |   |   | 277,248 |   |
|                                                                                                 |   |        |             |   |   |   |   |   |
| Cash and cash equivalents at the end of the period                                                   |   | $           | 652,177          |   |   | $ | 607,098 |   |

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