Lifeway Foods, Inc. — Director's Dealing 2004

Apr 20, 2004

SEC Form 4 — Statement of Changes in Beneficial Ownership

Issuer: LIFEWAY FOODS INC (LWAY)
CIK: 0000814586
Period of Report: 2004-04-12

Reporting Person: SMOLYANSKY JULIE (Director, President and CEO)

Non-Derivative Transactions

Date	Security	Code	Shares	Price	A/D	Holdings After	Ownership
2004-04-12	Common Stock, no par value	A	1000	$24.13	Acquired	1555225	Direct

Footnotes

F1: Julie Smolyansky acquired 1,000 shares of LWAY common stock pursuant to a grant under the Lifeway Foods, Inc. Consulting and Services Compensation Plan approved by the board on April 12, 2004.

F2: $24.13 was the last sale price for LWAY common stock on The Nasdaq National Market on April 12, 2004.

F3: Of the 1,555,225 total shares indicated as beneficially owned, 161,000 are directly owned by Julie Smolyansky and 1,394,225 shares are indirectly beneficially owned as a result of her indirect pecuniary interest in shares held in the Estate of Michael Smolyansky, Julie's father and the founder and former President and CEO of LWAY. On 3/5/2003 pursuant to the Illinois Probate Act and the Internal Revenue Code, Julie filed a disclaimer (the "Disclaimer") wherein she disclaimed her interest in the shares held by the Estate. The Disclaimer was filed in the Cook County, Illinois Circuit Court on 3/10/2003. As a result, Julie has no pecuniary interest in the Estate's LWAY shares. Further, she disclaims the indirect pecuniary interest in the Estate's LWAY shares attributable under Section 16 ofthe Securities Exchange Act of 1934.