EXHIBIT 99.1
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            Lifeway Foods Announces Share Repurchase
            Thursday January 13, 2005

            MORTON GROVE, Ill., Jan. 13 /PRNewswire-FirstCall/ -- Lifeway Foods,
Inc. (Nasdaq: LWAY - News) announced today that its board of directors has
authorized a stock repurchase program of up to 50,000 shares of the Company's
common stock. Under such program, Lifeway Foods may repurchase up to 50,000
shares of the Company's common stock periodically in open market transactions
for a period of one year from the date of the first purchase. Shares will be
repurchased in accordance with Rule 10b-18 under the Securities Exchange Act of
1934 and other applicable laws, rules and regulations. The Company will use its
available cash resources to fund the stock repurchase program.

            Edward Smolyansky, CFO of Lifeway Foods, commented, "I am very
pleased that our board of directors has unanimously approved this stock
repurchase program. Given the current market conditions and our current cash
position, we believe that repurchasing Lifeway stock is a prudent investment
which demonstrates our commitment to growth and to enhancing long term
shareholder value."

            Lifeway, recently named as Fortune Magazine's 38th Fastest Growing
Small Company and 47th on the Forbes 200 Best Small Companies, is a manufacturer
of cultured, probiotic and functional food products in the health food industry,
and is America's leading supplier of the cultured dairy product known as kefir.
The Company markets 12 flavors of kefir, and America's first and only no sugar
added, low carb kefir, Slim 6(TM). The Company also participates in the organic
and soy markets with Lifeway Organic(TM), Organic Kefir and Kefir Cheese, and
America's first soy kefir called SoyTreat(TM). The Company recently added a line
of gourmet cream cheeses.

            For more information, contact Lifeway Foods, Inc. at (847) 967-1010
or e-mail at info@lifeway.net and visit http://www.lifeway.net .

            This document includes certain "forward-looking statements" within
the meaning of the United States Private Securities Litigation Reform Act of
1995. These statements are based on management's current expectations and are
subject to uncertainty and changes in circumstances. Actual results may differ
materially from these expectations due to changes in economic, business,
competitive, market and regulatory factors. More information about these factors
and their effects on company performance is contained in filings made by Lifeway
Foods, Inc. with the U.S. Securities and Exchange Commission including, but not
limited to, the annual report on Form 10-K. Information regarding securities
filings made by Lifeway Foods, Inc. may be found by visiting the Company's
website at http://www.kefir.com or http://www.lifeway.net.