Nasdaq delists Cyanotech

Cyanotech Corporation to appeal Nasdaq delisting notification as stock falls below $1.00 minimum bid price per share requirement
September 16, 2003

Microalgae company Cyanotech Corporation, Kailua-Kona, Hawaii  today announced that the Nasdaq Listing Qualifications Department has notified the Company that its common stock fails to comply with the $1.00 minimum bid price per share requirement for continued listing pursuant to Marketplace Rule 4310(c)(4). As a result, the Company's securities are subject to delisting from The Nasdaq SmallCap Market effective upon the opening of business on 09/23/03.

Cyanotech has requested a hearing before the Nasdaq Listing Qualifications Panel to appeal the ruling. During the appeals process, the scheduled delisting will be stayed and the Company's common stock will continue to trade on the Nasdaq SmallCap Market, pending the Panel's decision. The hearing date has not been set and is yet to be determined by Nasdaq. While there can be no assurance that the Company's request for continued listing on the Nasdaq SmallCap Market will be granted, the Company is exploring all possible avenues to preserve the Nasdaq listing.

Cyanotech Corporation, a world leader in microalgae technology, produces high-value natural products from microalgae and is the world's largest commercial producer of natural astaxanthin (pronounced "asta-zan-thin") from microalgae. Products include BioAstin(R) natural astaxanthin, a powerful antioxidant with expanding application as a human nutraceutical; NatuRose(R) natural astaxanthin for the aquaculture and animal feed industries; Spirulina Pacifica(R), a nutrient-rich dietary supplement; and phycobiliproteins, which are fluorescent pigments used in the immunological diagnostics market.