Lifeway Foods' Founder Dies, Daughter Elected President 33714

Lifeway Foods' Founder Dies, Daughter Elected President

MORTON GROVE, Ill.--Michael Smolyansky, founder and presidentof Lifeway Foods Inc. (NASDAQ:LWAY), died June 9 from a heart attack at age 55.His daughter, Julie, was appointed president, chief executive officer andtreasurer at a board of directors meeting held June 10. Having joined Lifeway in1997, she was most recently the company's director of sales and marketing, aposition in which she implemented new marketing, advertising and publicrelations campaigns.

Prior to founding Lifeway, Michael Smolyansky was project engineer anddepartment manager of E.J. Littell Machine Co. in Chicago for 10 years. In 1986,he began Lifeway Foods (www.lifeway.net),taking it public three years later. The Smolyansky family holds a 51-percentshare in the company, with Paris-based Group Danone SA holding a 20-percentstake. Lifeway entered into a renewable three-year support agreement with asubsidiary of Group Danone in 1999 in order to give Lifeway access to Danone'sU.S. brokers and distributors.

Peter Futro of Denver-based Futro & Trauernicht, the company's attorneys,told SmartMoney (www.smartmoney.com)that Group Danone supported the board's appointment of Julie to president andeven recommended it.

Valeriy Nikolenko, company secretary and vice president in charge ofproduction, will continue to oversee the day-to-day manufacturing operations ofthe company.

According to the company's annual report, filed March 28, the companydistributes products to more than 400 accounts throughout the United States andcurrently employs approximately 50 employees. For fiscal 2001, the company hadrevenues of $10.7 million, a 16-percent increase over fiscal 2000's $9.2million.

On June 10, when Michael Smolyansky's death was made public, Lifeway stocktook a 27-percent nosedive from an opening price of $7 to $5.10 before theNASDAQ market halted trading at 10:43 EST. As of June 11, the stock closed at$5.89.