Bruce Russell (310) 559-4955 x101 brussell@cyanotech.com Cyanotech Receives Temporary Non-Compliance Notice from Nasdaq Related to Its Number of Independent Directors KAILUA KONA, Hawaii (

Cyanotech Receives Temporary

Non-Compliance Notice from Nasdaq

Related to Its Number of

Independent Directors

KAILUA KONA, Hawaii (March 12, 2010) Cyanotech

Corporation (Nasdaq Capital Market: CYAN) has been notified by the Nasdaq

Listing Qualifications Panel that it is not in compliance with its continued

listing requirements under Nasdaq Listing Rules 5605(b)(1) and 5605(c)(2)(A) due

to having only three independent directors of six total directors on its Board

and fewer than three independent directors on its audit committee, while David

I. Rosenthal serves as Interim President and CEO, as announced on March 1,

2010. Mr. Rosenthal has resigned from the

audit committee in order to accept his interim appointment as an executive

officer. Nasdaq rules require that the

Board be comprised of a majority of independent directors and that the audit

committee be comprised of only independent directors of which there must be at

least three. The notification indicated that so long as Cyanotech provides an

acceptable plan within 45 days to regain a majority of independent directors to

the Board and to add a third independent member to the audit committee, NASDAQ will

consider granting Cyanotech an exception for up to 180 days from March 8,

2010. Cyanotech intends to provide a

plan acceptable to Nasdaq within the required time period.

About Cyanotech Cyanotech Corporation, a world leader in microalgae

technology, produces BioAstin

Natural Astaxanthin and Hawaiian Spirulina Pacifica all

natural, functional nutrients that leverage our experience and reputation for

quality, building nutritional brands which promote health and well-being.

Cyanotech s Spirulina products offer complete nutrition, and augment energy and

immune response. They are FDA reviewed and accepted as Generally Recognized as

Safe (GRAS) for use in food products. BioAstin s superior antioxidant activity

and ability to support and maintain a natural anti-inflammatory response

enhance skin, muscle and joint health. All Cyanotech products are produced from

microalgae grown at its 90-acre facility in Kona, Hawaii using patented and

proprietary technology. Cyanotech distributes to nutritional supplement,

nutraceutical and cosmeceutical manufacturers and marketers in more than 40

countries worldwide. Cyanotech was

the first microalgae company in the world to obtain quality management

standards ISO 9001:2000 certification and is

GMP-certified by the Natural Products AssociationTM. Visit

www.cyanotech.com for more information.

Harbor Statement under the U.S. Private Securities Litigation Reform Act of

1995 Besides statements of present fact and historical fact, this press

release may contain forward-looking statements.

Forward-looking statements relate to the future and are subject to

inherent uncertainties, risks and changes in circumstances which are difficult

to predict. Our actual results may differ materially from those contemplated by

forward-looking statements. We caution

against relying on forward-looking statements.

Important factors that could change actual, future results include: changes in sales levels to our largest

customers, weather patterns in Hawaii, production problems, risks associated

with new products, foreign exchange fluctuations, and availability of

financing, as well as national and global political, economic, business,

competitive, market and regulatory conditions.

Other factors are more fully detailed in the Company s recent Form 10-Q

and annual Form 10-K filings with the Securities and Exchange Commission.

Kaahumanu Highway, #102 ~ Kailua-Kona, Hawaii 96740

326-1353 fax (808) 329-3597 ~ www.cyanotech.com