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GALAXY FOODS COMPANY ANNOUNCES THIRD QUARTER FINANCIAL RESULTS

 ORLANDO, Fla., Feb. 12 /PRNewswire/ -- Galaxy Foods Company (NASDAQ: GALX) today announced financial results for the company's third quarter and first nine months of fiscal 1993.
 Results for the quarter ending Dec. 31, 1992 and 1991, and related nine-month periods were impacted dramatically by a fire that completely destroyed the company's then sole-existing manufacturing facility located in New Castle, Pa., on June 29, 1991. The company thereafter aggressively negotiated for and ultimately received approximately $11.1 million in property and business interruption insurance proceeds from its insurance carrier. With these insurance proceeds, the company has been able to refurbish a state-of-the-art manufacturing facility in Orlando. In June 1992, the company resumed production of many of its products and began shipping them to customers in each of the company's three principal markets -- industrial, food service and retail.
 From the date of the fire on June 29, 1991, through the middle of June 1992, the company was forced to rely on third party co-packers who produced on a contract basis a few of the company's products to its specifications under the company's labels and packaging. The alternative and limited production method impacted both sales levels and margins during the 12-month period from the fire to June 1992. Since June 30, 1992, the company focused its attention on resuming efficient manufacturing operation and rebuilding its customer base. Although the company now has sufficient capacity to match pre-fire sales, it will take some additional time to restore sales and profits to pre-fire levels. Comparability of the three-month and nine-month periods ending Dec. 31, 1992, with the corresponding periods from the prior year have been significantly affected by the foregoing considerations.
 For the quarter ended Dec. 31, 1992, the company reported net sales of $1,701,924, compared to $1,137,718 for the quarter ended Dec. 31, 1991. The company reported a net loss of $457,795 or $0.11 per share for the quarter ended Dec. 31, 1992, vs. no income or loss for the quarter ended Dec. 31, 1991.
 Sales in the quarter ended Dec. 31, 1992, improved in excess of 27 percent from the previous quarter ended Sept. 30, 1992 and in excess of 98 percent from the June 30, 1992, quarter, which is the period in which the company resumed direct production. The quarter ended Dec. 31, 1992, did not reflect receipt of any insurance proceeds for property insurance claims or business interruption insurance coverages, all of which were reflected as having been received in prior periods, including the quarter ended Dec. 31, 1991. Sales volumes not having yet attained levels sufficient to pay for operating costs and expenses, and the company's efforts to reopen sales channels to pre-fire levels, resulted in the net loss for the quarter ended Dec. 31, 1992.
 For the first nine months of fiscal 1993, net sales were $3,892,430 compared to $6,244,490 in the nine-month period a year ago (which included almost one full quarter of normal, pre-fire operating results). The company recorded a net loss of $592,654 or $0.14 per share, vs. a net loss of $78,699 or $0.02 per share, in the comparable period of the prior year.
 GALAXY FOODS COMPANY
 Comparative Analysis (Unaudited)
 Periods Ended Three Months Nine Months
 Dec. 31 1992 1991 1992 1991
 Net sales $1,701,924 $1,137,718 $3,892,430 $6,244,490
 Net income
 (loss) (457,795) 0 (592,654) (78,699)
 Earnings (loss)
 per common share $(.11) $.00 $(.14) $(.02)
 Weighted average
 common shares
 outstanding 4,216,655 4,025,809 4,139,488 4,025,809
 -0- 2/12/93
 /CONTACT: Peter J. Perfetti, chief financial officer of Galaxy Foods Company, 407-855-5500/
 (GALX)


CO: Galaxy Foods Company ST: Florida IN: FOD SU: ERN

KC-DM -- PG002 -- 6075 02/12/93 10:09 EST
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Date:Feb 12, 1993
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