EXHIBIT 99.1





Lifeway
      Foods, Inc.
              For
      Immediate Release






Lifeway
Foods Reports Record 3rd Quarter 2009 Revenues and Earnings Results
  -
              Q3
      Revenues Up 37%
 -
              Q3
      Gross Profit Increases 77%; Q3 2009 Gross Margins up to 41% from 31% in Q3
      2008
 -
              Q3
      2009 Operating Income Increases 121% from same period in
    2008
 -
              Q3
      2009 Pre-tax Income Increases 168% from same period in
  2008
   Morton Grove, IL—November 16,
2009—Lifeway Foods, Inc., (Nasdaq: LWAY),makers of the
nutritious, probiotic dairy beverage called kefir, announced today for the third
quarter ended September 30, 2009, total consolidated group sales increased by
$4,193,594, (approximately 37%) to $15,433,876 during the three month period
ended September 30, 2009 from $11,240,282 during the same three month period in
2008. This increase is primarily attributable to increased sales and awareness
of Lifeway’s flagship line, Kefir, as well as ProBugs® Organic Kefir for
kids.  Additionally, Lifeway recorded revenues from its February 6,
2009 acquisition of Fresh Made Dairy.  Included in the total group
sales was approximately $2,190,000 of revenue related to this acquisition and
recorded during the third quarter of 2009.
  Cost of
goods sold as a percentage of sales, excluding depreciation was approximately
58% during the third quarter 2009, compared to about 67% during the same period
in 2008. The decrease was primarily attributable to the decreased cost of
conventional milk, our largest raw material, and the cost of transportation and
other petroleum based production supplies.  Gross profit increased
approximately 77% during the third quarter of 2009, when compared with the same
period in 2008.
  Operating
expenses as a percentage of sales were approximately 20% during the third
quarter 2009, compared to about 18% during the same period in
2008.   This increase is primarily attributable to a 111%
increase in amortization expense, a non cash expense, related to the February 6,
2009 acquisition of Fresh Made Dairy.
  Total
operating income increased by $1,772,193, (approximately 121%) to
$3,239,432during
the third quarter 2009, from $1,467,239 during the same period in
2008.
  Total
income before taxes increased by $1,884,819 (approximately 168%) to
$3,007,652during
the third quarter 2009, from $1,122,833 during the same period in
2008.
  Provision
for income taxes was $1,636,911, or a 54% tax rate, for the third quarter ended
September 30, 2009, compared with a provision for income taxes of $267,917, or a
24% tax rate, for the same period in 2008.
  Total net
income was $1,370,741or $.08 per share for
the third quarter ended September 30, 2009, compared with $854,916or $.05 per share in the
same period in 2008.  This represents a 60% increase in net income
from the third quarter 2009 when compared to the same period in
2008.
   
 Nine-Month
Period Ended September 30, 2009
  Total
income before taxes increased by $4,440,498, (approximately 110%) to
$8,474,370during
the nine-month period ended September 30, 2009, from $4,033,872 during the same
period in 2008.
  Provision
for income taxes was $3,024,261, or a 36% tax rate, for the nine-month period
ended September 30, 2009, compared with a provision for income taxes of
$1,378,632, or a 34% tax rate, for the same period in 2008.
  Total net
income was $5,450,109, or $.32 per share for the nine-month period ended
September 30, 2009, compared with $2,655,240, or $.16 per share in the same
period in 2008.  This represents a 105% increase in net income from
the nine-month period ended September 30, 2009 when compared to the same period
in 2008.
  Net cash
provided by operating activities was $5,504,144during the nine months
ended September 30, 2009, which is an increase of $1,872,155 when compared to
the same period in 2008.
  Edward
Smolyansky, CFO commented, “We are extremely pleased at our record third quarter
2009 results.  This was again the best quarter in our company’s
history from both the revenue side as well as the bottom line.  Even
though the cost of our conventional milk and other raw materials has increased
during in the third quarter, our gross margins have remained strong and
consistent.”
  Smolyansky
added, “During the fourth quarter, weekly sales volumes continue at a record
pace, and existing customers are consistently increasing their orders from
previous weeks.  Additionally, starting in late December, we will
resume shipments to Costco in the Midwest, the first shipments since June
2009.   Our cash flows remain very robust, and just this past
couple of weeks, we paid down approximately $1.5 million in debt taken out to
finance our February 6, 2009 acquisition as well as other current and long term
liabilities.”
  Lifeway
Foods, Inc.
 Phone:
877.281.3874
 Email:
info@Lifeway.net
 www.Kefir.comandwww.StarfruitCafe.com
  Find Lifeway Foods,
Inc. on Facebook:http://www.facebook.com/lifeway.kefir,
 Follow us
onTwitter:http://twitter.com/lifeway_kefirandhttp://twitter.com/starfruitcafe
 Flickr:http://www.flickr.com/photos/lifeway_kefir/YouTube:http://www.youtube.com/user/lifewaykefir
  About
Lifeway Foods
  Lifeway
Foods, Inc., recently named one of Fortune Small Business' Fastest Growing
Companies for the 4th
consecutive year,  is America's leading supplier of the cultured dairy
product known as Kefir, and America’s sole supplier of Organic Kefir.
 Lifeway Kefir is a dairy beverage that contains 10 exclusive live and
active probiotic cultures. While most regular yogurt contains only two or three
of these "friendly" cultures, Lifeway Kefir products offer even more nutritional
benefits.  Lifeway produces 12 different flavors of its drinkable Kefir and
Organic Kefir beverage, and recently introduced a series of innovative new
products such as a children’s line of Organic Kefir products called ProBugs (TM)
with a no-spill pouch and kid-friendly flavors like Orange Creamy Crawler, Goo
Berry Pie, and Sublime Slime Lime. In addition to its line of Kefir products,
the company produces a variety of probiotic cheese products, and a line of
products marketed in US Hispanic communities called La Fruta Drinkable Yogurt
(yogurt drinks distinct from Kefir).
  
 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.
 
  (Unaudited)
                                
                                
                                (Unaudited)Three
      Months Ended
                                
                                
                                Nine
      Months EndedSeptember
      30,
                                
                                
                                September
      30,2009
                                
                                
                                2008
                                
                                
                                2009
                                
                                
                                2008Sales
                                
                                
                                15,433,876
                                
                                
                                $
                                11,240,282
                                
                                
                                $
                                43,649,383
                                
                                
                                $
                                33,885,912Cost
      of goods sold
                                
                                
                                8,892,088
                                
                                
                                
                                7,505,794
                                
                                
                                
                                24,994,778
                                
                                
                                
                                22,403,574Depreciation
      expense
                                
                                
                                288,613
                                
                                
                                
                                197,366
                                
                                
                                
                                859,044
                                
                                
                                
                                581,920Total
      cost of goods sold
                                
                                
                                9,180,701
                                
                                
                                
                                7,703,160
                                
                                
                                
                                25,853,822
                                
                                
                                
                                22,985,494Gross
      profit
                                
                                
                                6,253,175
                                
                                
                                
                                3,537,122
                                
                                
                                
                                17,795,561
                                
                                
                                
                                10,900,418Selling
      Expenses
                                
                                
                                1,231,216
                                
                                
                                
                                957,978
                                
                                
                                
                                3,176,162
                                
                                
                                
                                3,171,269General
      and Administrative
                                
                                
                                1,613,828
                                
                                
                                
                                1,032,043
                                
                                
                                
                                5,173,724
                                
                                
                                
                                3,109,506Amortization
      expense
                                
                                
                                168,699
                                
                                
                                
                                79,862
                                
                                
                                
                                508,086
                                
                                
                                
                                239,585Total
      Operating Expenses
                                
                                
                                3,013,743
                                
                                
                                
                                2,069,883
                                
                                
                                
                                8,857,972
                                
                                
                                
                                6,520,360Income
      from operations
                                
                                
                                3,239,432
                                
                                
                                
                                1,467,239
                                
                                
                                
                                8,937,589
                                
                                
                                
                                4,380,058Other
      income (expense):Interest
      and dividend income
                                
                                
                                34,180
                                
                                
                                
                                95,042
                                
                                
                                
                                144,899
                                
                                
                                
                                261,037Rental
      Income
                                
                                
                                12,047
                                
                                
                                
                                13,647
                                
                                
                                
                                33,340
                                
                                
                                
                                36,940Interest
      expense
                                
                                
                                (
      99,864
                                )
                                
                                
                                ( 71,928
                                )
                                
                                
                                ( 364,337
                                )
                                
                                
                                ( 226,851
                                )Impairment
      of marketable securities
                                
                                
                                —
                                
                                
                                
                                ( 270,908
                                )
                                
                                
                                —
                                
                                
                                
                                ( 270,908
                                )Loss
      on Disposition of Equipment
                                
                                
                                —
                                
                                
                                
                                —
                                
                                
                                
                                ( 2,825
                                )Gain
      (loss) on sale of marketablesecurities,
      net
                                
                                
                                (178,143
                                )
                                
                                
                                ( 110,259
                                )
                                
                                
                                ( 274,296
                                )
                                
                                
                                ( 146,404
                                )Total
      other income (Expense)
                                
                                
                                (231,780
                                )
                                
                                
                                ( 344,406
                                )
                                
                                
                                ( 463,219
                                )
                                
                                
                                ( 346,186
                                )Income
      before provision forincome
      taxes
                                
                                
                                3,007,652
                                
                                
                                
                                1,122,833
                                
                                
                                
                                8,474,370
                                
                                
                                
                                4,033,872Provision
      for income taxes
                                
                                
                                1,636,911
                                
                                
                                
                                267,917
                                
                                
                                
                                3,024,261
                                
                                
                                
                                1,378,632Net
      income
                                
                                $
                                1,370,741
                                
                                
                                $
                                854,916
                                
                                
                                $
                                5,450,109
                                
                                
                                $
                                2,655,240Basic
      and diluted earnings percommon
      share
                                
                                
                                0.08
                                
                                
                                
                                0.05
                                
                                
                                
                                0.32
                                
                                
                                
                                0.16Weighted
      average number ofshares
      outstanding
                                
                                
                                16,798,623
                                
                                
                                
                                16,730,650
                                
                                
                                
                                16,799,134
                                
                                
                                
                                16,867,890COMPREHENSIVE INCOMENet
      income
                                
                                $
                                1,370,741
                                
                                
                                $
                                854,916
                                
                                
                                $
                                5,450,109
                                
                                
                                $
                                2,655,240Other
      comprehensive income (loss),net of
      tax:Unrealized
      gains (losses) onmarketable
      securities(net
      of tax benefits)
                                
                                
                                114,628
                                
                                
                                
                                ( 480,045
                                )
                                
                                
                                326,060
                                
                                
                                
                                ( 895,641
                                )Less
      reclassification adjustmentfor
      (gains) lossesincluded
      in net income (net of taxes)
                                
                                
                                104,609
                                
                                
                                
                                64,746
                                
                                
                                
                                161,071
                                
                                
                                
                                85,963Comprehensive
      income
                                
                                $
                                1,589,978
                                
                                
                                $
                                439,617
                                
                                
                                $
                                5,937,240
                                
                                
                                $
                                1,845,562