Industry News | October 8, 2001

Galaxy Nutritional Foods Popular In Pizza Hut Test

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Galaxy Nutritional Foods (Amex: GXY), a leading producer of nutritious plant-based dairy alternatives for the retail and foodservice markets, today reported significant progress in its current and comprehensive test with 43 Pizza Hut® franchise stores in the greater Fort Wayne, Indiana area.

The Company's Veggie® mozzarella is gaining widespread approval among Pizza Hut customers in this test market. As reported in the Health section of the Fort Wayne Journal and Courier on August 15, 2001, local Pizza Huts are introducing their newest "sin free'' pizza topped with Veggie® mozzarella which has 50% less fat, no saturated fat or cholesterol, is lactose free and contains soy protein. Local residents are quoted in the article as saying it is a wonderful product and they are very impressed with its taste. One resident states, ``I can't imagine that it won't be popular. If you are looking for healthy, this is the way to go.''

Over the eight-week test, Veggie® mozzarella contributed significant incremental sales to the test stores. Following the advertising and promotion flights in the test market, repeat sales of Veggie® mozzarella were extremely high with 64% repeat purchase by consumers versus the packaged goods industry "norm'' of 30%. This is a critical measure of success for any new product and the Company is very satisfied with these results.

Angelo S. Morini, Galaxy's President stated, "The early success of this important test is a strong indicator that there is a mega-trend in foodservice toward the nutritional or functional food category. This trend has been quite evident in supermarkets for the past several years where our Veggie® brand dairy alternatives are the number one selling brand in their category. It is exciting to see this very progressive Pizza Hut franchise be one of the first fast food companies to respond to the trend by offering healthier menu choices to their customers while enjoying significant incremental sales as a result. It is only a matter of time before many other fast food companies offer similar fare.''

Reference: Journal and Courier (Ft. Wayne, Indiana), August 15, 2001, Family Health and Fitness Section, "Low fat cheese adds up to healthier pizza,'' Cara Warfield. I