X0202 4 2004-07-28 0 0000814586 LIFEWAY FOODS INC lway 0001227847 SMOLYANSKY EDWARD 0 1 0 0 Controller Common stock, no par value 2004-07-28 4 S 0 500 12.75 D 1505823 D Common stock, no par value 2004-07-28 4 S 0 300 12.71 D 1505523 D Common stock, no par value 2004-07-28 4 S 0 800 12.65 D 1504723 D Common stock, no par value 2004-07-28 4 S 0 300 12.832 D 1504423 D Common stock, no par value 2004-07-28 4 S 0 100 12.83 D 1504323 D The aggregate number of shares sold by Edward Smolyansky on July 28, 2004 and reported on this Form 4 was 2,000. Following the first reported sale on this Form 4, Edward's direct holdings were 111,598 shares and his indirect holdings were 1,394,225 shares. Following the last sale reported on the Form 4, his direct holdings were 110,098 and his indirect holdings remained unchanged. Edward indirectly beneficially owns 1,394,225 as a result of his indirect pecuniary interest in LWAY shares held in the Estate of Michael Smolyansky, Edward'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, Edward filed a disclaimer (the "Disclaimer") wherein he disclaimed his interest in the LWAY shares held by the Estate. The Disclaimer was filed in the Cook County, Illinois Circuit Court on 3/10/2003. As a result, Edward has no pecuniary interest in the Estate's LWAY shares. Further, he disclaims the indirect pecuniary interest in the Estate's LWAY shares attributable to him under Section 16 of the Securities Exchange Act of 1934. Edward Smolyansky 2004-07-30