<SEC-DOCUMENT>0001683168-25-001663.txt : 20250317
<SEC-HEADER>0001683168-25-001663.hdr.sgml : 20250317
<ACCEPTANCE-DATETIME>20250317164416
ACCESSION NUMBER:		0001683168-25-001663
CONFORMED SUBMISSION TYPE:	DFAN14A
PUBLIC DOCUMENT COUNT:		3
FILED AS OF DATE:		20250317
DATE AS OF CHANGE:		20250317

SUBJECT COMPANY:	

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			Lifeway Foods, Inc.
		CENTRAL INDEX KEY:			0000814586
		STANDARD INDUSTRIAL CLASSIFICATION:	DAIRY PRODUCTS [2020]
		ORGANIZATION NAME:           	04 Manufacturing
		IRS NUMBER:				363442829
		STATE OF INCORPORATION:			IL
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		DFAN14A
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-42398
		FILM NUMBER:		25745217

	BUSINESS ADDRESS:	
		STREET 1:		6431 W OAKTON
		CITY:			MORTON GROVE
		STATE:			IL
		ZIP:			60053
		BUSINESS PHONE:		847-967-1010

	MAIL ADDRESS:	
		STREET 1:		6431 W OAKTON
		CITY:			MORTON GROVE
		STATE:			IL
		ZIP:			60053

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	LIFEWAY FOODS INC
		DATE OF NAME CHANGE:	19920703

FILED BY:		

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			SMOLYANSKY EDWARD
		CENTRAL INDEX KEY:			0001227847
		ORGANIZATION NAME:           	

	FILING VALUES:
		FORM TYPE:		DFAN14A
</SEC-HEADER>
<DOCUMENT>
<TYPE>DFAN14A
<SEQUENCE>1
<FILENAME>lifeway_dfan14a.htm
<DESCRIPTION>FORM DFAN14A
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>UNITED STATES<BR>
SECURITIES AND EXCHANGE COMMISSION<BR>
Washington, D.C. 20549</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>SCHEDULE 14A INFORMATION</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Proxy Statement Pursuant to Section&nbsp;14(a)
of<BR>
the Securities Exchange Act of 1934</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>(Amendment No. )</B></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <TR>
    <TD COLSPAN="4">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR STYLE="vertical-align: top">
    <TD COLSPAN="6" STYLE="text-align: left; font-size: 10pt"><FONT STYLE="font-size: 10pt">Filed by the Registrant&nbsp;<FONT STYLE="font-family: Wingdings">o</FONT></FONT></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD COLSPAN="6" STYLE="text-align: left; font-size: 10pt"><FONT STYLE="font-size: 10pt">Filed by a Party other than the Registrant&nbsp;<FONT STYLE="font-family: Wingdings">x</FONT></FONT></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD COLSPAN="6" STYLE="text-align: left; font-size: 10pt"><FONT STYLE="font-size: 10pt">Check the appropriate box:</FONT></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD COLSPAN="4" STYLE="text-align: left; font-size: 10pt"><FONT STYLE="font-family: Wingdings; font-size: 10pt">o</FONT></TD>
    <TD STYLE="text-align: left; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 10pt"><FONT STYLE="font-size: 10pt">Preliminary Proxy Statement</FONT></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD COLSPAN="4" STYLE="text-align: left; font-size: 10pt"><FONT STYLE="font-family: Wingdings; font-size: 10pt">o</FONT></TD>
    <TD STYLE="text-align: left; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 10pt"><FONT STYLE="font-size: 10pt"><B>Confidential, for Use of the Commission Only (as permitted by Rule&nbsp;14a-6(e)(2))</B></FONT></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD COLSPAN="4" STYLE="text-align: left; font-size: 10pt"><FONT STYLE="font-family: Wingdings; font-size: 10pt">o</FONT></TD>
    <TD STYLE="text-align: left; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 10pt"><FONT STYLE="font-size: 10pt">Definitive Proxy Statement</FONT></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD COLSPAN="4" STYLE="text-align: left; font-size: 10pt"><FONT STYLE="font-family: Wingdings; font-size: 10pt">o</FONT></TD>
    <TD STYLE="text-align: left; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 10pt"><FONT STYLE="font-size: 10pt">Definitive Additional Materials</FONT></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD COLSPAN="4" STYLE="text-align: left; font-size: 10pt"><FONT STYLE="font-family: Wingdings; font-size: 10pt">x</FONT></TD>
    <TD STYLE="text-align: left; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 10pt"><FONT STYLE="font-size: 10pt">Soliciting Material under &sect;240.14a-12</FONT></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD COLSPAN="4" STYLE="text-align: left; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 10pt">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: top">
    <TD COLSPAN="6" STYLE="text-align: center; font-size: 10pt"><FONT STYLE="font-size: 12pt"><B>LIFEWAY FOODS,&nbsp;INC.</B></FONT></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD COLSPAN="6">
<HR SIZE="2" NOSHADE ALIGN="CENTER" STYLE="width: 100%; color: black">

    <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">(Name of Registrant as Specified In Its Charter)</P></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD COLSPAN="6">
    <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">Ludmila Smolyansky</P>
    <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">Edward Smolyansky</P>
    <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">Richard Beleutz</P>
    <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">Cindy Curry</P>
    <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">Michael Leydervuder</P>
    <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">George Sent</P>
    <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">Robert Whalen</P></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD COLSPAN="6">
<HR SIZE="2" NOSHADE ALIGN="CENTER" STYLE="width: 100%; color: black">

    <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">(Name of Person(s) Filing Proxy Statement, if other
    than the Registrant)</P>
    <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD COLSPAN="6" STYLE="text-align: left; font-size: 10pt"><FONT STYLE="font-size: 10pt"><BR>
Payment of Filing Fee (Check all boxes that apply):</FONT></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD COLSPAN="6" STYLE="text-align: left; font-size: 10pt">&nbsp;</TD></TR>
  <TR>
    <TD STYLE="vertical-align: bottom; text-align: left; font-size: 10pt"><FONT STYLE="font-family: Wingdings">x</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: left; font-size: 10pt">&nbsp;</TD>
    <TD COLSPAN="4" STYLE="vertical-align: top; text-align: left; font-size: 10pt"><FONT STYLE="font-size: 10pt">No fee required</FONT></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD STYLE="text-align: left; font-size: 10pt"><FONT STYLE="font-size: 10pt"><BR>
</FONT><FONT STYLE="font-family: Wingdings">o</FONT></TD>
    <TD STYLE="text-align: left; font-size: 10pt">&nbsp;</TD>
    <TD COLSPAN="4" STYLE="text-align: left; font-size: 10pt"><FONT STYLE="font-size: 10pt"><BR>
Fee paid previously with preliminary materials</FONT></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD STYLE="text-align: left; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 10pt">&nbsp;</TD>
    <TD COLSPAN="4" STYLE="text-align: left; font-size: 10pt">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: top">
    <TD STYLE="text-align: left; font-size: 10pt"><FONT STYLE="font-family: Wingdings">o</FONT></TD>
    <TD STYLE="text-align: left; font-size: 10pt">&nbsp;</TD>
    <TD COLSPAN="4" STYLE="text-align: left; font-size: 10pt"><FONT STYLE="font-size: 10pt">Fee computed on table in exhibit required by Item 25(b) per Exchange Act Rules 14a-6(i)(1) and 0-11</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On the date hereof, Edward Smolyansky publicly
disclosed the letter attached hereto as <A HREF="lifeway_ex1.htm">Exhibit 1</A> by filing it with the Securities and Exchange Commission (&ldquo;SEC&rdquo;) as an exhibit to Amendment No 22 to the Schedule 13D
(the &ldquo;Schedule 13D&rdquo;) filed by him and the other reporting persons named therein. In addition, on the date hereof Mr. Smolyansky
issued the press release attached hereto as <A HREF="lifeway_ex2.htm">Exhibit 2</A>. Copies of these materials will be available at the website maintained by Mr. Smolyansky
at www.freeLifeway.com.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Important Information and Where To Find It</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">This communication is not a request for a proxy
to vote on any matter. Any written solicitation of a proxy to vote on any matter at the 2025 annual meeting of shareholders of Lifeway
Foods, Inc., an Illinois corporation (&ldquo;Lifeway&rdquo;), by Mr. Smolyansky will be made through a definitive proxy statement. Promptly
after Mr. Smolyansky files a definitive proxy statement with the SEC, he intends to mail the definitive proxy statement and accompanying
proxy card (or a notice of internet availability of proxy materials) to requisite shareholders. Lifeway shareholders are urged to read
Mr. Smolyansky&rsquo;s proxy statement, including any amendments or supplements thereto, and his other soliciting materials, if any, when
they become available because they will contain important information. Shareholders may obtain, free of charge, copies of the proxy statement
and other relevant documents when filed with the SEC at www.sec.gov.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Participants in the Solicitation</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Mr. Smolyansky has given notice of his intent
to nominate Ludmila Smolyansky, Edward Smolyansky, Richard Beleutz, Cindy Curry, Michael Leydervuder, George Sent and Robert Whalen (each,
a &ldquo;Nominee&rdquo;) for election as directors of Lifeway at its 2025 annual meeting of shareholders. Each Nominee may be deemed to
have an interest in any solicitation of proxies by Mr. Smolyansky by virtue of his nomination.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The participants (the &ldquo;Participants&rdquo;)
in any solicitation of proxies by Mr. Smolyansky may be deemed to be Mr. Smolyansky and each of the other Nominees. Lifeway shareholders
can obtain information regarding the Participants and their direct and indirect interests, by security holdings or otherwise, in the solicitation
from the Schedule 13D and the exhibits thereto, which are incorporated herein by reference.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

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<DOCUMENT>
<TYPE>EX-1
<SEQUENCE>2
<FILENAME>lifeway_ex1.htm
<DESCRIPTION>LETTER BY EDWARD SMOLYANSKY
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<P STYLE="margin: 0"><B>Exhibit 1</B></P>

<P STYLE="margin: 0"><B>&nbsp;</B></P>

<P STYLE="margin: 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Edward Smolyansky<BR>
1219 N Wells St<BR>
Chicago, IL 60610</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">March 17, 2025</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Dear Shareholders,</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Together, Ludmila Smolyansky and I are the largest shareholders of
Lifeway Foods, Inc. (NASDAQ: LWAY; &ldquo;Lifeway&rdquo; or the &ldquo;Company&rdquo;), with collective beneficial ownership of 4,163,141
shares of common stock, equating to approximately 27.4% of the shares reported by the Company to be outstanding.<A HREF="#note_ftn1" NAME="note_ftnref1" STYLE="font-size: 65%; vertical-align: 35%">1</A>
Additionally, we have served in several leadership roles at the Company throughout its nearly 40-year history.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The Company has reached an inflection point. While the Board&rsquo;s
insistent capitulation to Lifeway&rsquo;s self-absorbed and self-interested CEO has always been in question, it now must prove in court
that its conduct did not breach the directors&rsquo; fiduciary duties to shareholders.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The latest suit was brought by Danone, the Company&rsquo;s largest
unaffiliated investor for over 25 years. Danone alleges that the directors breached their fiduciary duties when the Board granted 283,337
shares of stock to CEO Julie Smolyansky without obtaining Danone&rsquo;s consent per its 1999 shareholder agreement with the Company.<A HREF="#note_ftn2" NAME="note_ftnref2" STYLE="font-size: 65%; vertical-align: 35%">2</A>
The grant was suspicious given the cash retention bonus paid to CEO Smolyansky of $2 million<A HREF="#note_ftn3" NAME="note_ftnref3" STYLE="font-size: 65%; vertical-align: 35%">3</A>
announced immediately prior.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">All of this followed the rejection of an unsolicited offer from Danone,
its second, to buy the shares of the Company it did not own for $27 per share, representing a premium of 72% over the 3-month volume weighted
average price.<A HREF="#note_ftn4" NAME="note_ftnref4" STYLE="font-size: 65%; vertical-align: 35%">4</A></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Instead of negotiating better terms with Danone and/or mending fences
with its largest shareholder, we find the Company having to contend with litigation stemming from clearly questionable conduct. Importantly,
the timing and magnitude of the $8.5 million aggregate CEO award in cash and shares &ndash; equating to more than 94% of the Company&rsquo;s
2024 net income &ndash; suggests that this Board is far more interested in enriching the CEO than maximizing value for all shareholders.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<HR ALIGN="LEFT" SIZE="1" STYLE="width: 33%">

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><A HREF="#note_ftnref1" NAME="note_ftn1" STYLE="font-size: 65%; vertical-align: 35%">1</A>
Lifeway Annual Report on Form 10-K, filed with the Securities and Exchange Commission (the &ldquo;SEC&rdquo;) on March&nbsp;14, 2025.
The reported outstanding shares include shares purported to have been issued to Lifeway&rsquo;s Chairman, President and CEO, Julie Smolyansky,
and her spouse without the consent of Danone North America PBC. I do not concede that such shares are validly issued and outstanding.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><A HREF="#note_ftnref2" NAME="note_ftn2" STYLE="font-size: 65%; vertical-align: 35%">2</A>
Danone's Announcement
of Lawsuit Against Lifeway 3/3/2025</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><A HREF="#note_ftnref3" NAME="note_ftn3" STYLE="font-size: 65%; vertical-align: 35%">3</A>
Lifeway Current Report on Form
8-K, filed with the SEC on December&nbsp;23, 2024</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><A HREF="#note_ftnref4" NAME="note_ftn4" STYLE="font-size: 65%; vertical-align: 35%">4</A>
Danone Updated Proposed Acquisition of Lifeway
Foods, Offer Letter November&nbsp;15, 2024</P>
<P STYLE="margin: 0"><B></B></P>

<P STYLE="margin: 0"><B>&nbsp;</B></P>

<P STYLE="margin: 0"><B>&nbsp;</B></P>

<P STYLE="margin: 0"><B>&nbsp;</B></P>

<P STYLE="margin: 0"><B>&nbsp;</B></P>

<P STYLE="margin: 0"><B></B></P>

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<P STYLE="margin: 0"></P>

<P STYLE="margin: 0"><B>&nbsp;</B></P>

<P STYLE="margin: 0"><B></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The Board&rsquo;s failure to maximize shareholder value while enriching
the CEO warrants a complete and immediate overhaul.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">This change requires a new slate of independent directors, including
George Sent. As a leading investment banker for the food and beverage industry, he is well-suited to assist the Board in objectively evaluating
the strategic alternatives and acquisition offers received by the Company. As the former lead independent director for Lifeway and former
chair of Lifeway&rsquo;s Audit and Corporate Governance Committee, Mr. Sent is already intimately familiar with the Company and the corporate
governance challenges it faces.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The proposed slate also includes Edward Smolyansky, a member of the
founding family and one of the largest shareholders of the Company, with prior service to the Company in several key roles, including
Controller, CFO, COO, and Director.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The new slate also includes Ludmila Smolyansky, co-founder of Lifeway
and former Chair of the Board. Mrs. Smolyansky, together with her husband Michael, introduced kefir to the US market and helped turn a
basement operation into a global enterprise. With her help, the Board can return to its business of maximizing value for shareholders
and revive the integrity and spirit upon which the Company was founded.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>It is Time for Complete and Immediate Change at the Lifeway Board</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I></I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Lifeway can no longer be burdened with a Board incapable of putting
the interests of its shareholders ahead of those of its CEO. The relationship with the Company&rsquo;s largest investor must be repaired,
and an independent committee can be formed to evaluate all strategic alternatives aimed at maximizing value for shareholders. However,
we must act now.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The proposed slate has the right balance of kefir product expertise,
shareholder representation, Board and operational familiarity with Lifeway, and financial and transactional experience, to usher a new
growth phase for Lifeway.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Backgrounds and summaries for the nominees are included in the pages
to follow. We look forward to your support in bringing about the complete and immediate change needed to create shareholder value.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Sincerely,</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Edward Smolyansky</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Nominees and Bios for Immediate Change at Lifeway</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Ludmila Smolyansky</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Co-founder and Former Chairperson, </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Lifeway Foods, Inc.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">In 1986, Ludmila Smolyansky and her husband Michael founded Lifeway,
introducing kefir to the American market. After the company went public in 1988, Ludmila played a pivotal role in Lifeway's growth. Following
Michael&rsquo;s passing in 2002, she became Chairperson of the Board, guiding the company through its expansion to over $119 million in
annual revenues by 2021. Smolyansky&rsquo;s leadership extended well beyond her role as Chairperson, which she held until August 2022.
With over 40 years of experience in the health food industry, she was instrumental in developing Lifeway&rsquo;s operational and strategic
direction. Even after retiring as a company employee in 2010, she continued to serve as a consultant and remained a key figure on the
Board. As a cultured dairy and probiotic pioneer, Ludmila&rsquo;s insight into food manufacturing, distribution, and strategic planning
has been invaluable to Lifeway's success. Her industry knowledge and business acumen have made her a recognized leader in natural and
organic products.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Edward Smolyansky</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Former Chief Operating Officer, </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Lifeway Foods, Inc.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Mr. Smolyansky is one of the largest shareholders of Lifeway, a leading
U.S. producer of kefir. As a member of Lifeway&rsquo;s founding family, he served as the company&rsquo;s COO for over a decade, overseeing
critical operations and strategic growth initiatives. He also held roles as CFO and Treasurer after starting his tenure at Lifeway as
Controller. He also served as a director from 2017 to 2022. Edward is a recognized leader in the dairy and probiotic products industry
with extensive financial and operational experience. At Lifeway, he played a key role in integrating strategic acquisitions, developing
innovative products, and collaborating with investors and financial institutions. Edward&rsquo;s father founded Lifeway and entrusted
him with the company&rsquo;s secret kefir formulas and processing methods, and he has been committed to perfecting and enhancing those
products ever since. Edward brings a fresh perspective and a deep understanding of the evolving dairy landscape. He has a clear vision
and strategic plan to revitalize Lifeway, aligning the company with shareholder interests and future market demands.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>George Sent</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Managing Director, </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Cascadia Capital</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Mr. Sent is a seasoned investment banking professional with over two
decades of experience, currently serving as Managing Director at Cascadia Capital, specializing in the Food, Beverage &amp; Agribusiness
sector. Sent&rsquo;s expertise in mergers and acquisitions, private equity capital raises, and strategic board advisory is backed by fifteen
years of concentrated work in the food and beverage industry. He holds an M.B.A. from Cornell University and an undergraduate degree from
the University of Cincinnati. His background also includes becoming a Certified Public Accountant in 2002, and he is actively involved
in advisory roles, serving on the Food Science Advisory Council at Cornell University and the Advisory Board of Magic Leap. Before joining
Cascadia Capital in 2018, Sent held senior roles at KeyBank Capital Markets as Head of Food and Beverage M&amp;A and at Lazard as Executive
Director in consumer and retail investment banking. He also gained invaluable operational insights as Head of Corporate Finance and Investor
Relations at The J.M. Smucker Company.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Cindy Curry</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Chief Financial Officer, </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Rakuten Advertising</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Ms. Curry has served as Chief Financial Officer of Rakuten Advertising,
a multinational company specializing in affiliate marketing, influencer and performance solutions, and media, since 2022. With over 30
years of experience in accounting, financial planning, corporate strategy, and mergers and acquisitions, she has built a reputation for
driving financial growth and operational efficiency. Before Rakuten, she was Executive Vice President and CFO at BBDO Worldwide, CFO at
IPG Mediabrands, and CFO of Broadwind Energy. Her expertise spans a range of industries, including advertising and renewable energy, with
a focus on global, publicly held companies.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Curry holds a Master of Business Administration from Northern Illinois
University and a Bachelor's in Accounting from the University of Illinois &ndash; Chicago. She is also a Certified Public Accountant (CPA).
Her experience in finance and her leadership in managing complex financial operations make her a critical asset in guiding strategic financial
decisions at Rakuten Advertising.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Robert Whalen</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Senior Advisor, </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>AIR Asset Management </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Mr. Whalen is Senior Advisor of Alternative Investment Resource, LLC
(d/b/a AIR Asset Management), a diversified alternatives asset management firm. In 2018, he co-founded, and served as Managing Partner
of, Atlys Group, LLC, a diversified business group that engages in disaster recovery, pandemic solutions, private equity and other businesses.
With over three decades of experience in the financial services industry, Whalen's expertise spans investment management, capital markets,
and business growth strategies. Before co-founding Atlys Group in 2018, Whalen served as President and CEO of W Venture Group, where he
leveraged a global network in financial services to drive business development. His career began at American Express, where he held several
key leadership roles, including Financial Advisor, Field Vice President, and Group Vice President. He oversaw a team of over 600 financial
advisors, managed $14 billion in assets, and was honored with the &quot;Outstanding Leader of the Year&quot; award. Whalen played a pivotal
role in the rebranding and launch of Ameriprise Financial Services, which became one of the largest IPOs in business history. Whalen holds
a Bachelor of Arts in Finance and Management from Merrimack College and completed the Executive Management Program at Harvard University.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Richard Beleutz</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Founder and Chief Executive Officer, </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>AIR Asset Management</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Mr. Beleutz has led AIR Asset Management since 2014, driving its growth
and strategic direction. With nearly 30 years of experience in the investment industry, he has closed over $1 billion in transactions
and held leadership roles in private equity, investment banking, and hedge fund operations. As Chair of the Executive and Investment Committees,
his expertise in insurance-linked securities and alternative assets has positioned AIR as an industry leader. His extensive background
in structured finance and investment strategy, combined with an operational focus, has earned him a reputation for delivering strong,
risk-adjusted returns. Mr. Beleutz holds a Bachelor of Arts in Economics from the University of Michigan and carries Series 7, 9, 10,
24, 63, and 79 securities registrations.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Michael Leydervuder</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>CEO and Managing Partner, </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>L Development</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Mr. Leydervuder serves as the CEO and Managing Partner of L Development,
LLC, a real estate investment and business development firm he established in 2018. With over 20 years of experience in the real estate
sector, Mr. Leydervuder has demonstrated expertise in areas including residential and commercial finance, real estate brokerage consulting,
and commercial real estate development. His leadership at L Development is characterized by a focus on impactful projects, particularly
in residential and commercial development, where business growth is aligned with community improvement. Mr. Leydervuder&rsquo;s extensive
experience in real estate and his commitment to enhancing underserved communities have earned him recognition as a respected leader in
the industry. His strategic approach to real estate investment and development has positioned L Development as a significant player in
promoting sustainable growth in both residential and commercial markets. Additionally, Mr. Leydervuder expanded his financial expertise
by launching Smart Rate Lending, a residential lending business, to assist consumers and industry colleagues during periods of elevated
interest rates.</P>
<P STYLE="margin: 0"><B>&nbsp;</B></P>

<P STYLE="margin: 0"><B>&nbsp;</B></P>

<P STYLE="margin: 0"><B>&nbsp;</B></P>

<P STYLE="margin: 0"><B></B></P>

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<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">Exhibit 2</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>For Immediate Release</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Edward Smolyansky Launches Formal Campaign to Replace Lifeway Foods,
Inc (LWAY) CEO and
All Directors</B></P>

</DIV>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">CHICAGO,&nbsp;March17,
2025&nbsp;/PRNewswire/ --&nbsp;Edward Smolyansky, who, together with Ludmila Smolyansky, beneficially owns </FONT>4,163,141 shares of
common stock, <FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">today launched a formal campaign to stop the further
eroding of value taking place at Lifeway Foods, Inc (NASDAQ: </FONT><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">LWAY)</FONT>
<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">by submitting and filing a Notice regarding Planned Nominees
for election at the upcoming 2025 Annual Meeting.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The Company has reached an inflection point. While the Board&rsquo;s
insistent capitulation to Lifeway&rsquo;s self-absorbed and self-interested CEO has always been in question, it now must prove in court
that its conduct did not breach the directors&rsquo; fiduciary duties to shareholders.&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The latest suit was brought by Danone, the Company&rsquo;s largest
unaffiliated investor for over 25 years. Danone alleges that the directors breached their fiduciary duties when the Board granted 283,337
shares of stock to CEO Julie Smolyansky without obtaining Danone&rsquo;s consent per its 1999 shareholder agreement with the Company.<SUP>2</SUP>
The grant was suspicious given the cash retention bonus paid to CEO Smolyansky of $2 million<SUP>3</SUP> announced immediately before.
&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">All of this followed the rejection of an unsolicited offer from Danone,
its second, to buy the shares of the Company it did not own for $27 per share, representing a premium of 72% over the 3-month volume weighted
average price.&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Instead of negotiating better terms with Danone and/or mending fences
with its largest single shareholder, we find the Company having to contend with litigation stemming from clearly questionable conduct.
Importantly, the timing and magnitude of the $8.5 million aggregate CEO award in cash and shares &ndash; equating to more than 94% of
the Company&rsquo;s 2024 net income &ndash; suggests that this Board is far more interested in enriching the CEO than maximizing value
for all shareholders.&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The Board&rsquo;s failure to maximize shareholder value while enriching
the CEO warrants a complete and immediate overhaul.&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">This change requires a new slate of independent directors, including
George Sent. As a leading investment banker for the food and beverage industry, he is well-suited to assist the Board in objectively evaluating
the strategic alternatives and acquisition offers received by the Company. As the former lead independent director for Lifeway and former
chair of Lifeway&rsquo;s Audit and Corporate Governance Committee, Mr. Sent is already intimately familiar with the Company and the corporate
governance challenges it faces.&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The proposed slate also includes Edward Smolyansky, a member of the
founding family and one of the largest shareholders of the Company, with prior service to the Company in several key roles, including
Controller, CFO, COO, and Director.&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The new slate also includes Ludmila Smolyansky, co-founder of Lifeway
and former Chair of the Board. Mrs. Smolyansky, together with her husband Michael, introduced kefir to the US market and helped turn a
basement operation into a global enterprise. With her help, the Board can return to its business of maximizing value for shareholders
and revive the integrity and spirit upon which the Company was founded.&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>It is Time for Complete and Immediate Change at the Lifeway
Board</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Lifeway can no longer be burdened with a Board incapable of putting
the interests of its shareholders ahead of those of its CEO. The relationship with the Company&rsquo;s largest investor must be repaired,
and an independent committee can be formed to evaluate all strategic alternatives aimed at maximizing value for shareholders. However,
we must act now.&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&ldquo;Lifeway has disregarded not only a respected global partner
but also its own founding family,&rdquo; said Edward Smolyansky. &ldquo;Since 2021, Lifeway Foods has spent millions of shareholder dollars
attempting to control the election process rather than focusing on delivering value. They have made repeated efforts to remove me as a
shareholder, all of which have failed. Now, they are taking a similar approach with Danone. While I cannot speak for them, Ludmila and
I are committed to restoring accountability and leadership at Lifeway.&rdquo;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The proposed slate has the right balance of kefir product expertise,
shareholder representation, Board and operational familiarity with Lifeway, and financial and transactional experience, to usher a new
growth phase for Lifeway.&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Backgrounds and summaries for the nominees are included
in the formal nomination letter to the Board and associated SEC filings, all of which are catalogued and can be accessed at www.freelifeway.com.
We look forward to your support in bringing about the complete and immediate change needed to create shareholder value.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; color: red">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">For more information and update to date news connect with
me on LinkedIn@ Edward
Smolyansky and visit www.freelifeway.com to learn more about the 2025 Lifeway Foods Proxy
Campaign.</P>

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