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Proc-Type: 2001,MIC-CLEAR
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<SEC-DOCUMENT>0001072613-04-000684.txt : 20040329
<SEC-HEADER>0001072613-04-000684.hdr.sgml : 20040329
<ACCEPTANCE-DATETIME>20040329161953
ACCESSION NUMBER:		0001072613-04-000684
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		2
CONFORMED PERIOD OF REPORT:	20040329
ITEM INFORMATION:		
ITEM INFORMATION:		Financial statements and exhibits
FILED AS OF DATE:		20040329

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			LIFEWAY FOODS INC
		CENTRAL INDEX KEY:			0000814586
		STANDARD INDUSTRIAL CLASSIFICATION:	DAIRY PRODUCTS [2020]
		IRS NUMBER:				363442829
		STATE OF INCORPORATION:			IL
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		8-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-17363
		FILM NUMBER:		04696471

	BUSINESS ADDRESS:	
		STREET 1:		6431 W OAKTON
		CITY:			MORTON GROVE
		STATE:			IL
		ZIP:			60053
		BUSINESS PHONE:		7089671010

	MAIL ADDRESS:	
		STREET 1:		6431 W OAKTON
		CITY:			MORTON GROVE
		STATE:			IL
		ZIP:			60053
</SEC-HEADER>
<DOCUMENT>
<TYPE>8-K
<SEQUENCE>1
<FILENAME>form8-k_12591.txt
<DESCRIPTION>LIFEWAY FOODS, INC. FORM 8-K DATED 03-29-04
<TEXT>
================================================================================


                                  UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                              Washington D.C. 20549


                                    FORM 8-K

                                 CURRENT REPORT

     Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934


       Date of Report (Date of earliest event reported): March 29, 2004


                               LIFEWAY FOODS, INC.
             ------------------------------------------------------
             (Exact name of registrant as specified in its charter)


         ILLINOIS                       0-17363                  36-3442829
- ----------------------------    ------------------------      ----------------
(State or other jurisdiction    (Commission File Number)      (I.R.S. Employer
     of incorporation)                                       Identification No.)


                              6431 West Oakton St.
                             Morton Grove, IL 60053
               --------------------------------------------------
               (Address of principal executive offices, zip code)


       Registrant's telephone number, including area code: (847) 967-1010


                                       N/A
          -------------------------------------------------------------
          (Former name or former address, if changed since last report)

================================================================================
<PAGE>

                               LIFEWAY FOODS, INC.


ITEM 7.     FINANCIAL STATEMENTS, PRO FORMA INFORMATION AND EXHIBITS

        (c) Exhibits. The following exhibits are filed with this report:

            Exhibit 99.1 - Press Release dated March 29, 2004.

ITEM 12.    RESULTS OF OPERATIONS AND FINANCIAL CONDITION

On March 29, 2004, Lifeway Foods, Inc. (the "Company") issued a press release
regarding certain financial information for the year ended December 31, 2003.
The press release is attached to this filing as Exhibit 99.1 and incorporated by
reference herein.
<PAGE>

                                    SIGNATURE

     Pursuant to the requirements of the Securities Exchange Act of 1934, as
amended, the Registrant has duly caused this report to be signed on its behalf
by the undersigned hereunto duly authorized.

     Dated March 29, 2004

                                    LIFEWAY FOODS, INC.


                                    By: /s/ Julie Smolyansky
                                        ----------------------------------
                                        Julie Smolyansky
                                        Chief Executive Officer, Chief Financial
                                        and Accounting Officer, President,
                                        Treasurer and Director


</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.1
<SEQUENCE>3
<FILENAME>exhibit99-1_12591.txt
<DESCRIPTION>PRESS RELEASE DATED MARCH 29, 2004
<TEXT>
                                                                    EXHIBIT 99.1
                                                                    ------------

PRESS RELEASE DATED MARCH 29, 2004


Lifeway Foods Reports Record Year End Results

Net Income Rose 45% on 22% Increase in Revenue

Morton Grove, Illinois, March 29, 2004 -- Lifeway Foods, Inc. (NASDAQ: LWAY)
today reported record year-end results for the 2003 fiscal year. The company
reported net income of $2,221,939 or $.26 per split adjusted share on sales of
$14,877,788 for the year ended December 31, 2003, compared to net income of
$1,528,684 or $.18 per split adjusted share on sales of $12,212,236 for the year
ended December 31, 2002. Those figures represent a 22% increase in sales and a
45% increase in net income over 2002, also a record year.

"In the 1st quarter of 2003, we finalized the sale of real estate, which netted
approximately a $1.2 million capital gain. Over the course of the 4th quarter,
2003, we selectively disposed of approximately $1 million, net, in heavily
impaired securities. By doing this, we were able to minimize the income tax
liability created from the real estate gain, and strengthened our financial
position by removing the impaired securities from our balance sheet," said
Controller, Edward Smolyansky.

Julie Smolyansky, President and CEO, attributed the company's strong performance
in 2003 to ever increasing awareness of the probiotic health-related benefits of
its products and specifically to further expansion in mainstream and specialty
markets of Lifeway's flagship kefir beverages, Lifeway's SoyTreat(R) -- a
probiotic soy kefir based beverage, Lifeway's Organic(TM) kefir beverages and
Lifeway's LaFruta(TM), a yogurt drink line geared to the Hispanic market.

"Our sales continue to grow at a great pace, and the acceptance of our products
in mainstream channels continue to rise. Our new packaging for Soy Treat(R) can
already be seen on the shelves in some regions. The new packaging of our Kefir
line is also close to completion. Combining these factors with our great 1st
quarter results to date, in which sales rose approximately 18% versus the 1st
quarter 2003, we feel the first half of the year should continue to be strong."

Lifeway 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 does a
successful business exporting its products to Canada. 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(R).

For more information, contact Julie Smolyansky, President, Lifeway Foods, Inc.
at (847) 967-1010, e-mail at info@lifeway.net or visit 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
www.kefir.com.
<PAGE>

                               Lifeway Foods, Inc.


                          Condensed Statement of Income

<TABLE><CAPTION>
                                              Twelve Months Ended
                                        ------------------------------
                                       Dec. 31, 2003      Dec. 31, 2002
                                        -----------        -----------
<S>                                     <C>                <C>
          Sales                         $14,877,788        $12,212,236

          Cost of Goods Sold              7,840,782          6,744,086
                                        -----------        -----------

          Gross Profit                    7,037,006          5,468,150

          Operating Expenses              3,558,362          2,890,504

          Income from Operations          3,478,644          2,577,646

          Income before taxes             3,576,487          2,472,022

          Income taxes                    1,354,548            943,338

          Net income                      2,221,939          1,528,684
                                        ===========        ===========

          Earnings Per Share            $       .26        $       .18
                                        ===========        ===========

           Wtd. Ave. Shares               8,436,888          8,531,522


</TABLE>

</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
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