MORTON GROVE, IL, May 29, 2002 - Lifeway Foods, Inc. (Nasdaq: LWAY) today announced that it has become the title sponsor for the Bastille Day 5K Run/Walk & Block Party, replacing Andersen in the title sponsorship role. The popular annual event, which will now be known as the Lifeway Bastille Day 5K Run/Walk & Block Party, is one of the largest competitions of its kind in Chicago with more than 7,000 runners and walkers and 15,000 block party participants. It will take place this year on July 19.

In addition to raising Lifeway's visibility through the event name, the sponsorship entitles Lifeway to supply its kefir products at the start and finish lines as well as during the block party. It marks the major initiative to date in a new company campaign to participate in local sporting events in order to reach the health-conscious consumers who are most likely to purchase Lifeway products.

Lifeway Kefir has been featured in Men's Fitness, Chicago Athlete and Shape magazines for its ability to provide low-fat, high-protein fuel during periods of muscle training and other physical activity. The live and active probiotic cultures in kefir also have been shown to build the immune system, fight fatigue, and restore vital intestinal flora wiped out by everyday assaults on the body ranging from the use of antibiotics to travel, stress and alcohol consumption.

"This event is our first title sponsorship, and we see it as an important milestone in Lifeway's efforts to promote our brand name and products," said Michael Smolyansky, President and CEO. "It gives us an opportunity to connect with our target market at a grass-roots level, let them sample our products, and raise consumer awareness of the health benefits of Lifeway Kefir. We believe this strategy will be very productive as we strive to continually increase our market penetration."

The Lifeway Bastille Day 5K Run/Walk and Block Party will run through Chicago's West Loop and raise funds for the Mercy Home for Boys & Girls, a residential child-care facility for abused, abandoned and neglected children. The race is certified by USATF and registered by the Chicago Area Runners Association (CARA).