Lifeway (LWAY)

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Lifeway Foods Announces Full Product Line Price Increase

MORTON GROVE, Ill., Nov. 29 /PRNewswire-FirstCall/ -- Lifeway Foods, Inc., (Nasdaq: LWAY), makers of a nutritious, probiotic dairy beverage called Kefir, announced today that it will implement a price increase of approximately 10-15% on it's full catalog of products. This price increase will go into effect in December 2007.

Julie Smolyansky, Lifeway's CEO, commented, 'We would like to reiterate that our main goal at this time as a growing company in a competitive food industry is to continue to grow our revenues, build a strong brand, and expand our loyal customer base, and part of this strategy has and will continue to be to maintain a relatively lower price on a per ounce basis when compared to other similar products on the market. However, given the current environment of historically high raw material prices as well as other rising costs, a price increase was necessary. We are confident given the uniqueness of our Kefir products and our dominance in the Kefir market, our past price adjustment experiences, conversations with our customers, as well as the higher current price environment for similar products, this price increase should have no negative impact on our unit sales.'

About Lifeway Foods

Lifeway, recently named Fortune Small Business' 97th Fastest Growing Small Business, and one of only 4 companies to ever be named to the list four straight years in a row, is America's leading supplier of the cultured dairy product known as kefir, and now America's only supplier of Organic Kefir. Lifeway Kefir is a dairy beverage that contains Lifeway's exclusive 10 Live and Active probiotic cultures. While most regular yogurt only contains two or three of these 'friendly' cultures, Lifeway kefir products offer more nutritional benefits. Lifeway offers 12 different flavors of its Kefir beverage, Organic Kefir and SoyTreat (a soy based kefir). Lifeway recently introduced a series of innovative new products such as pomegranate kefir, Greek-style kefir, a children's line of organic kefir products called ProBugs(TM) in a no-spill pouch in kid-friendly flavors like Orange Creamy Crawler and Sublime Slime Lime, and a line of organic whole milk kefir. Lifeway also produces a line of products marketed in US Hispanic communities, called La Fruta, Drinkable Yogurt (yogurt drinks distinct from kefir). In addition to its line of Kefir products, the company produces a variety of cheese products and recently introduced a line of organic pudding called It's Pudding!.

For more information, contact Julie Smolyansky at Lifeway Foods, Inc. at [phone] or e-mail at [e-mail] and visit http://www.lifeway.net.

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.

SOURCE Lifeway Foods, Inc.

Source: PR Newswire (November 29, 2007 - 4:05 PM EST)