LIFEWAY FOODS RESPONDS TO LETTER FROM DANONE REAFFIRMING REJECTION OF UNSOLICITED TAKEOVER OFFER AND THAT 1999 STOCKHOLDER AGREEMENT SHOULD BE VOIDED FOR VIOLATING ILLINOIS LAW

Company Overview - Lifeway Foods is a leading US supplier of kefir and fermented probiotic products, recognized as one of Forbes' Best Small Companies [6] - The company produces drinkable kefir, cheeses, and a ProBugs line for kids, with products sold in the US, Mexico, Ireland, South Africa, UAE, and France [6] Financial Performance - Lifeway's 2024 net sales are projected to range between $185.0 million to$186.5 million, up from $160.1 million in 2023 [3][8] - Preliminary unaudited Q4 2024 net sales are estimated between$45.1 million to $46.6 million [8] - The company has achieved 21 consecutive quarters of growth through Q4 2024 [5] - Lifeway delivered double-digit year-over-year revenue growth in Q3 2024 [5] - Total shareholder returns reached 788% over the past five years and 270% over the past three years as of September 23, 2024 [5] Acquisition Proposal - Lifeway's Board rejected Danone's acquisition offer, stating it severely undervalued the company based on independent financial and legal analysis [1] - The Board is open to a sale at a price that accurately reflects the company's true value [1] - Lifeway claims the 1999 Stockholders agreement with Danone violates Illinois law and intends to pursue legal remedies to nullify it [2] Leadership and Strategy - CEO Julie Smolyansky has led the company through a period of significant growth and success [5] - The Board believes Smolyansky's continued leadership is critical to the success of the company's standalone business plan [5] - Lifeway is assessing its relationship with Danone and exploring ways to protect the company's and shareholders' interests [4]