Galaxy Foods announces negotiations with China Treasure to enter China food & beverage market.

ORLANDO, Fla.--(BUSINESS WIRE)--Aug. 31, 1995--Galaxy Foods Co. (NASDAQ:GALX) announced Thursday that they have entered into negotiations with China Treasure Inc. (NASDAQ:CHNA) for a food and beverage joint venture in China.

This followed a meeting between Galaxy President Angelo Morini, and China Treasure Chairman, Clement Mak, who came from Hong Kong to Orlando to finalize talks.

Though details of the joint venture will be released at a second meeting in Orlando on Sept. 29, it is anticipated that Galaxy's technology and formulas will be incorporated with an existing consumer operation that China Treasure is in negotiations to acquire.

Galaxy President, Angelo Morini, said: "The Asian market demand for soy and rice based products and drinks is very large. We've been planning this joint venture expansion as a way of building sales and shareholder value. Our goal through the planned joint venture is to be part of the vast China market with our health based food lines and our planned beverage lines.

"With China Treasure's ability to acquire PRC operations with large, existing sales numbers, we feel that this is a great growth opportunity for the shareholders of Galaxy."

Clement Mak, chairman of China Treasure, who came to Orlando to make this announcement said: "Manufacturing consumer food and beverage products has long been part of our growth plan. Phase One was developing Sun City, a $2.5 billion government project which we are well underway with.

"Phase Two was to acquire a major infrastructure company, which we did with our recent acquisition of the Chengdu Iron and Steel plant, which had sales of $110 million in 1994.

"Phase Three is to enter the China telecommunications market, which we are now in the final negotiations on. Phase Four is to team with US joint venture partners on consumer products and entertainment for China.

"Yesterday we announced our negotiations to acquire the manufacturing plant which supplies bottles for Pepsi in Chengdu. Today we announce our negotiations with Galaxy Foods who we believe has the product, technology and expertise to joint venture with us on an existing consumer product marketing operation that we have the opportunity to acquire."

China Treasure is Hong Kong-based real estate and infrastructure development company. Galaxy Foods produces a complete line of healthy cheese products for the retail, food service and industrial markets. For more information contact Thomas Tedrow, Market Management Inc., 801/972-2887 or 407/645-0207.

CONTACT: Market Management Inc., Orlando

Thomas Tedrow, 801/972-2887 or 407/645-0207