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

| -   | Revenues Up 26% |
|---------------|-----------------|

| -   | Gross Profit Increases 59%; Q2 2009 Gross Margins up to 43% from 34% in Q2 2008 |
|---------------|---------------------------------------------------------------------------------|

| -   | Q2 2009 Operating Income Increases 104% from same period in 2008 |
|---------------|------------------------------------------------------------------|

| -   | Q2 2009 Net income up 178% to $2,531,905  or $.15 EPS vs. $911,718  or $.05 EPS in Q2 2008 |
|---------------|----------------------------------------------------------------------------------------------------------------|

----

|                                |   | (Unaudited)        |           |   | (Unaudited)      |   |
|-------------------------------------|--------|--------------------|----------------|--------|------------------|--------|
|                                |   | Three Months Ended |           |   | Six Months Ended |   |
|                                |   | June 30,           |           |   | June 30,         |   |
|                                |   | 2009               |           |   | 2008             |   |   | 2009 |   |   | 2008 |   |
|                                |   |               |           |   |             |   |   |   |   |   |   |   |
| Sales                               |   | $                  | 14,479,429     |   |             | $      | 11,523,393 |   |   | $ | 28,215,509 |   |   | $ | 22,645,631 |   |
|                                |   |               |           |   |             |   |   |   |   |   |   |   |   |   |   |   |
| Cost of goods sold                  |   |               | 7,978,110      |   |             |   | 7,455,696 |   |   |   | 16,102,691 |   |   |   | 14,897,779 |   |
| Depreciation expense                |   |               | 353,654        |   |             |   | 195,128 |   |   |   | 570,428 |   |   |   | 384,552 |   |
|                                |   |               |           |   |             |   |   |   |   |   |   |   |   |   |   |   |
| Total cost of goods sold            |   |               | 8,331,764      |   |             |   | 7,650,824 |   |   |   | 16,673,119 |   |   |   | 15,282,331 |   |
|                                |   |               |           |   |             |   |   |   |   |   |   |   |   |   |   |   |
| Gross profit                        |   |               | 6,147,665      |   |             |   | 3,872,569 |   |   |   | 11,542,390 |   |   |   | 7,363,300 |   |
|                                |   |               |           |   |             |   |   |   |   |   |   |   |   |   |   |   |
| Selling Expenses                    |   |               | 1,386,815      |   |             |   | 1,154,126 |   |   |   | 2,694,740 |   |   |   | 2,213,292 |   |
| General and Administrative          |   |               | 1,437,505      |   |             |   | 1,092,420 |   |   |   | 2,810,103 |   |   |   | 2,077,466 |   |
| Amortization expense                |   |               | 168,698        |   |             |   | 79,862 |   |   |   | 339,388 |   |   |   | 159,723 |   |
|                                |   |               |           |   |             |   |   |   |   |   |   |   |   |   |   |   |
| Total Operating Expenses            |   |               | 2,993,018      |   |             |   | 2,326,408 |   |   |   | 5,844,231 |   |   |   | 4,450,481 |   |
|                                |   |               |           |   |             |   |   |   |   |   |   |   |   |   |   |   |
| Income from operations              |   |               | 3,154,647      |   |             |   | 1,546,161 |   |   |   | 5,698,159 |   |   |   | 2,912,819 |   |
|                                |   |               |           |   |             |   |   |   |   |   |   |   |   |   |   |   |
| Other income (expense):             |   |               |           |   |             |   |   |   |   |   |   |   |   |   |   |   |
| Interest and dividend income        |   |               | 48,506         |   |             |   | 62,862 |   |   |   | 110,717 |   |   |   | 165,995 |   |
| Rental Income                       |   |               | 11,947         |   |             |   | 11,647 |   |   |   | 21,294 |   |   |   | 23,294 |   |
| Interest expense                    |   |               | ( 110,090 | )      |             |   | ( 68,969 | ) |   |   | ( 264,473 | ) |   |   | ( 154,924 | ) |
| Impairment of marketable securities |   |               | ---            |   |             |   | --- |   |   |   | --- |   |   |   | --- |   |
| Loss on Disposition of Equipment    |   |               | ( 2,825   | )      |             |   | --- |   |   |   | ( 2,825 | ) |   |   | --- |   |
| Gain (loss) on sale of marketable   |   |               |           |   |             |   |   |   |   |   |   |   |   |   |   |   |
|   securities, net         |   |               | 53,638         |   |             |   | ( 87,174 | ) |   |   | ( 96,152 | ) |   |   | ( 36,145 | ) |
| Total other income (Expense)        |   |               | 1,176          |   |             |   | ( 81,634 | ) |   |   | ( 231,439 | ) |   |   | ( 1,780 | ) |
|                                |   |               |           |   |             |   |   |   |   |   |   |   |   |   |   |   |
| Income before provision for         |   |               |           |   |             |   |   |   |   |   |   |   |   |   |   |   |
|    income taxes      |   |               | 3,155,823      |   |             |   | 1,464,527 |   |   |   | 5,466,720 |   |   |   | 2,911,039 |   |
|                                |   |               |           |   |             |   |   |   |   |   |   |   |   |   |   |   |
| Provision for income taxes          |   |               | 623,918        |   |             |   | 552,809 |   |   |   | 1,387,350 |   |   |   | 1,110,715 |   |
|                                |   |               |           |   |             |   |   |   |   |   |   |   |   |   |   |   |
| Net income                          |   | $                  | 2,531,905      |   |             | $      | 911,718 |   |   | $ | 4,079,370 |   |   | $ | 1,800,324 |   |
|                                |   |               |           |   |             |   |   |   |   |   |   |   |   |   |   |   |
| Basic and diluted earnings per      |   |               |           |   |             |   |   |   |   |   |   |   |   |   |   |   |
| common share                        |   |               | 0.15           |   |             |   | 0.05 |   |   |   | 0.24 |   |   |   | 0.11 |   |
|                                |   |               |           |   |             |   |   |   |   |   |   |   |   |   |   |   |