<SEC-DOCUMENT>0001683168-25-008916.txt : 20251205
<SEC-HEADER>0001683168-25-008916.hdr.sgml : 20251205
<ACCEPTANCE-DATETIME>20251205114114
ACCESSION NUMBER:		0001683168-25-008916
CONFORMED SUBMISSION TYPE:	DFAN14A
PUBLIC DOCUMENT COUNT:		1
FILED AS OF DATE:		20251205
DATE AS OF CHANGE:		20251205

SUBJECT COMPANY:	

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			Lifeway Foods, Inc.
		CENTRAL INDEX KEY:			0000814586
		STANDARD INDUSTRIAL CLASSIFICATION:	DAIRY PRODUCTS [2020]
		ORGANIZATION NAME:           	04 Manufacturing
		EIN:				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:		251551876

	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

	MAIL ADDRESS:	
		STREET 1:		1219 N WELLS ST
		CITY:			CHICAGO
		STATE:			IL
		ZIP:			60610
</SEC-HEADER>
<DOCUMENT>
<TYPE>DFAN14A
<SEQUENCE>1
<FILENAME>smolyansky_dfan14a.htm
<DESCRIPTION>FORM DFAN 14A
<TEXT>
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">FOR IMMEDIATE RELEASE</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 Files Definitive Proxy Statement toward Achieving
Further Board Change and a New Beginning for Lifeway Foods, Inc. (NASDAQ: LWAY)</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>Letter Urges Shareholders to Vote the GREEN Universal Proxy Card
for Nominees.&nbsp;</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">CHICAGO, IL &mdash; December 5, 2025 &mdash; Edward Smolyansky today
announced that he has filed a Definitive Proxy Statement (DEFN14A) with the U.S. Securities and Exchange Commission in connection with
the upcoming 2025 Annual Meeting of Shareholders of Lifeway Foods, Inc. (NASDAQ: LWAY). The action continues the effort toward comprehensive
board change to finally end the long-running governance failures, value destruction, and entrenched leadership practices that have plagued
the Company at the expense of its shareholders.</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">I, together with my mother and co-founder Ludmila Smolyansky, maintain
significant ownership in Lifeway Foods, Inc. (Nasdaq: LWAY) with an aggregate 26.17% stake in the 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">Over the past year, Lifeway shareholders have witnessed first-hand
how a board motivated by both self-interest and entrenchment, and hampered by its legacy of failed governance, can become undone. The
recent Cooperation Agreement reached between Lifeway and its largest shareholder Danone North America PBC (&ldquo;Danone&rdquo;), calls
for favorable governance changes including the separation of the CEO and Chair roles and the mandated refreshment of the Board through
the addition of four new independent directors.<SUP> 1</SUP></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">While certain shareholders may be satisfied with this outcome, we fear
that the Cooperation Agreement did not go far enough in ensuring that Lifeway can move forward with a well-constituted board for the benefit
of ALL shareholders. Specifically, we believe that certain legacy directors prioritized self-preservation ahead of long-term value creation,
and their continued presence on the Board might ultimately harm shareholders again. Furthermore, we question the vetting process for these
new directors and whether a search firm should have been retained to help identify candidates with relevant skills.</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>We believe that the retention of certain legacy directors along
with the addition of new nominees lacking relevant skills and expertise will create another sub-optimal Board for Lifeway and undermine
the will of its shareholders in a manner similar to the previous Board. Accordingly, I have nominated two qualified nominees &ndash;George
Sent and Edward Smolyansky &ndash; both of whom have served Lifeway in an executive or director role and thus have relevant industry experience
and institutional knowledge. </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">Additionally, we are seeking to establish the Strategy and Performance
Committee, comprised of only new independent directors, to evaluate management and Lifeway&rsquo;s corporate strategy.</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>The Danone Debacle</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">On September 23, 2024, Danone, one of Lifeway&rsquo;s largest
investors and a strategic partner since 1999, presented an unsolicited offer to acquire all outstanding shares of the Company for a
price of $25 per share<SUP> 2</SUP>. On November 5, 2024, the Board announced that it had rejected the offer and adopted a rights
plan (poison pill).<SUP> 3</SUP> This prompted a second offer by Danone on November 15, 2024, for $27 per share reflecting a
premium of 72% over the 3-month volume weighted average price,<SUP> 4</SUP> which was also rejected by the Board on November 20,
2024.</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">In the months that followed, the Board threatened litigation to nullify
a standing Shareholder Agreement that had been in effect between the Company and Danone since 1999. In response, Danone filed a lawsuit
against the Company alleging breach of the Shareholder Agreement as a result of a sizeable stock grant issued by the Board to then CEO/Chair
Julie Smolyansky (see <B>Self-Dealing by Legacy Directors</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">The legal wrangling continued until July 2025, when we decided to launch
a consent solicitation for removal of the entire legacy board. Our campaign was meant to present an alternative solution for shareholders
to opine on Danone&rsquo;s offer, and the incumbent management and the board. Prior to the Cooperation Agreement, Danone stated &ldquo;If
a definitive acquisition agreement has not been executed by the Standstill Expiration Date, Danone presently intends to consent with respect
to all of the shares of Common Stock it owns in favor of Edward Smolyansky's proposals set forth in his pending consent solicitation statement
to replace the entire Lifeway Board of Directors.&rdquo;<SUP> 5</SUP></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>

<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"><SUP>1</SUP> <A HREF="https://www.sec.gov/Archives/edgar/data/814586/000199937125014334/ex4-1.htm">Danone Lifeway Cooperation Agreement 9/30/2025</A></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-size: 10pt"><SUP>2</SUP></FONT> <A HREF="https://www.sec.gov/Archives/edgar/data/814586/000119312524223664/d826089dex991.htm">Danone Proposed Acquisition of Lifeway Foods, Offer Letter 9/23/2024</A></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-size: 10pt"><SUP>3</SUP></FONT><A HREF="https://www.sec.gov/ix?doc=/Archives/edgar/data/0000814586/000183988224037648/lway-8k_110524.htm"> Exhibit 99.1 of Form 8-K filed 11/5/2024</A></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-size: 10pt"><SUP>4</SUP></FONT> <A HREF="https://www.sec.gov/Archives/edgar/data/814586/000119312524259418/d880074dex991.htm">Danone Updated Proposed Acquisition of Lifeway Foods, Offer Letter 11/15/2024</A></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"><SUP>5</SUP></FONT>
<A HREF="https://www.sec.gov/Archives/edgar/data/1825471/000095017025101234/0000950170-25-101234-index.htm">Danone Schedule 13D/A filed 8/1/2025</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">&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">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">It is clear from Danone&rsquo;s aforementioned statement, that our
consent solicitation played a crucial role in bringing Lifeway&rsquo;s board to the negotiating table and agreeing to the significant
governance improvements embedded in the Cooperation Agreement.</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">While the Board cited historic topline growth as a key reason for rejecting
the offers, it has failed to articulate a strategic plan to achieve share-price growth comparable to the offer&rsquo;s premium. Shareholders
must ask, why was Lifeway trading at such a discount to what management claims to be its true value, before Danone&rsquo;s offer? We attribute
the disconnect between Lifeway&rsquo;s unaffected share price and the offer price, to a previously entrenched management and Board which
has consistently failed to unlock shareholder value.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Furthermore, we believe that the Company&rsquo;s decision to engage
with its largest outside investor in this manner did not serve the better interests of shareholders as both management and the Board became
embroiled in this negotiation, which turned into litigation, for over a year. While we believe that some of the governance outcomes achieved
through the Cooperation Agreement will ultimately benefit shareholders, we question the efficacy of a Board that potentially has conflicting
interests. Specifically, we question legacy directors&rsquo; alignment of interest considering they capitulated under duress to grant
Danone significant input on board membership without paying any control premium. Importantly, the newly appointed directors approved by
Danone lack relevant industry or public board experience. Clearly, the Board needs new disinterested directors who understand the business
and are not beholden to either a controlling CEO like Julie Smolyanksy or to Danone, which remains a competitor of 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"><B>Self-Dealing by the Legacy Directors</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">Shareholders have consistently voiced their concerns about CEO compensation
as evidenced by the dismal vote support for Say-on-Pay proposals at the 2024 and 2023 annual meetings of 57.6% and 56.2%, respectively.
Proxy advisor Institutional Shareholder Services (ISS) has repeatedly recommended that shareholders vote AGAINST the CEO compensation
plan citing pay that is both &lsquo;elevated&rsquo; relative to peers, and worthy of HIGH concern. Compounding these issues, the Company
reported that <B>Jason Burdeen</B>, the spouse of the CEO, holds the position of Chief of Staff to the CEO without a formal employment
agreement, received total compensation of <B>$313,800</B> in 2024.</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">Amid both recent shareholder opposition to pay and CEO/Chair
Smolyansky&rsquo;s newfangled dispute with Danone, the Board saw fit to issue &ndash; in addition to compensation already deemed to
be excessive &ndash; unjustified <B>award of 283,337 shares with a grant-date value of approximately $6.5 million</B> granted on
December 19, 2024.<SUP> 6</SUP> Days later, on December 23, 2024, the Board then decided to award the CEO a <B>cash retention
bonus of $2 million</B>.<SUP> 7</SUP></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">In aggregate, the inexplicable awards granted at the end of 2024 totaled
$8.5 million in cash and shares. This egregious amount represented 94% of the Company&rsquo;s 2024 net income and was comparable to the
total reported CEO pay for the last three fiscal years combined, which approximated $9 million.</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">While the timing and magnitude of the awards call into question the
Board&rsquo;s judgement, we believe that the breach in shareholder trust and confidence is both flagrant and indisputable.</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">We believe that the combined CEO/Chair structure under the leadership
of Julie Smolyansky, rendered the Board feckless and beholden to her own self-interests. As both the former Lead Independent Director
and Chair of the Compensation Committee, we believe that Jason Scher was the Board&rsquo;s primary enabler in this regard and accordingly,
we encourage Lifeway shareholders to vote WITHHOLD with respect to Mr. Scher at the 2025 annual meeting.</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>Questionable Stock Sales</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">Amid the negotiations with Danone, shareholders should be deeply
concerned as to why Lead Independent Director and Chair of the Audit and Corporate Governance Committee, Jason&nbsp;Scher, sold
24,566 of his 24,567 shares at an average share price of $24.23, thereby reducing his ownership in Lifeway stock to a single common
share in June of 2025.<SUP> 8</SUP> This seems inconsistent with the Board&rsquo;s view that Danone&rsquo;s $27 offer price
significantly undervalued the Company. Furthermore, the Board has yet to address <B>how its Lead Independent Director is not in
violation of the Company&rsquo;s Director Stock Ownership and Holding Policy by reducing his ownership to a single share</B> instead
of the required 200% of the annual retainer.</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>

<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-size: 10pt"><SUP>6</SUP></FONT><A HREF="https://www.sec.gov/Archives/edgar/data/1227846/000168316824008960/0001683168-24-008960-index.htm"> Disclosure of CEO Equity Award, 12/19/2024</A></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-size: 10pt"><SUP>7</SUP></FONT> <A HREF="https://www.sec.gov/ix?doc=/Archives/edgar/data/0000814586/000168316824008943/lifeway_8k.htm">CEO Retention Bonus 12/23/2024</A></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-size: 10pt"><SUP>8</SUP></FONT> <A HREF="https://www.sec.gov/Archives/edgar/data/1554866/000168316825004869/0001683168-25-004869-index.htm">SEC FORM 4 - Jason Scher 6/26/2025</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">&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">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Continued Governance Failures</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">Following the announcement of the Cooperation Agreement on September
30, 2025, there continues to be signs of failed governance that plagued the previous Board. On October 29, 2025, the Company extended
the poison pill for another year.<SUP>[9]</SUP> While the intent is typically to deter hostile takeover attempts, which the Company acknowledges
is not a risk, the unintended consequence is that credible merger and/or acquisition interest is often discouraged. We fear that the same
legacy directors that worked to oppose the Danone sale may continue to eschew other credible offers at the expense of 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">We note that the latest shareholder letter from the &ldquo;new&rdquo;
Board demonstrates an ongoing pattern of actions aligning closely with those of the CEO. This includes issuing a shareholder communication
under their own name containing statements that appear not to have undergone independent verification. The letter also contains critiques
seemingly based on personal conjecture rather than objective and appropriate evaluation by the Board.</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">We also note that a byproduct of such attacks has been the Company&rsquo;s
propensity to engage in meritless and costly litigation with its largest shareholders versus constructive dialogue centered around long-term
value creation.</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">Regarding the annual meeting of shareholders, the Company not only
delayed the 2025 meeting unnecessarily from June to December but also failed to provide the customary notice period of 45 days. The Company&rsquo;s
last shareholder meeting occurred in June of 2024. The December 29, 2025, meeting date was announced with the publication of the definitive
proxy filed on December 1, 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">While we applaud the comprehensive refreshment mandated by the recent
Cooperation Agreement, we continue to be reminded that the Lifeway Board has not in fact turned the proverbial corner in the way that
is administers governance and engages with its 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">We believe that Lifeway&rsquo;s hostility towards certain shareholders
deflects attention away from those matters most important to investors: ridding the Board of the persistent misconduct and governance
failures that has caused the Company&rsquo;s share price to underachieve. It is only by removing those legacy directors most responsible
for the Board&rsquo;s prior misconduct that the Company will be able to embrace accountability and effect the type of change that shareholders
need.</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">Very truly yours,</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">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"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Important Information</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">This communication is not a request for a proxy to vote on any matter.
Any written solicitation of a proxy by Mr. Smolyansky will be made through the definitive proxy statement (the &ldquo;Shareholder Proxy
Statement&rdquo;). Lifeway shareholders are urged to read the Shareholder Proxy Statement, including any amendments or supplements thereto,
and any other soliciting materials, when they become available as they will contain important information. Shareholders may obtain, free
of charge, copies of the Shareholder Proxy Statement at sec.gov.</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>Participants in the Solicitation</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. Smolyansky has notified the Company of his intent to nominate himself
and George Sent for election as directors of Lifeway at the 2025 Annual Meeting. Each of them may be deemed to be a participant in any
solicitation of proxies by Mr. Smolyansky. Lifeway shareholders can find information regarding Mr. Smolyansky and Mr. Sent, and their
respective direct or indirect interests, by security holdings or otherwise, in the <A HREF="https://www.sec.gov/Archives/edgar/data/814586/000168316825008906/smolyansky_defn14a.htm">Shareholder Proxy Statement</A> and in Mr. Smolyansky&rsquo;s
other filings with the SEC, all of which information is incorporated herein by reference.</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>



<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"><FONT STYLE="font-size: 10pt"><SUP>9</SUP></FONT> <A HREF="https://www.sec.gov/Archives/edgar/data/814586/000199937125016430/lifeway-8a12ba_102925.htm">Lifeway Shareholder Rights Plan 10/29/2025</A></P>

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