Bruce Russell Russell Communications Group 310-559-4955 x101 brucerussell@ruscom.com Cyanotech Receives Notice of Compliance from Nasdaq KAILUA-KONA, Hawaii (

Receives Notice of Compliance from Nasdaq

KAILUA-KONA, Hawaii (March 16, 2007) Cyanotech

Corporation (Nasdaq: CYAN) filed with the Securities and Exchange Commission on

March 14, 2007 its Form 10-Q for the quarter ended December 31, 2006. Therefore, the Company is in compliance with

SEC periodic report requirements. On the

same date, the Company was notified by the Nasdaq Listing Qualifications Panel

that it has demonstrated compliance with all Nasdaq Marketplace Rules. Accordingly, Nasdaq determined to continue

the listing of the Company s securities on The Nasdaq Stock Market.

Cyanotech Corporation, a

world leader in microalgae technology, produces BioAstin Natural Astaxanthin

and Hawaiian Spirulina Pacifica all natural, functional nutrients that enhance

human health and nutrition. Cyanotech s spirulina, FDA reviewed and accepted as

Generally Recognized as Safe (GRAS) for use as a food ingredient, augments

energy and immune response. BioAstin s benefits derive from its superior

antioxidant activity and from its ability to support and maintain natural

inflammatory response, enhancing skin, muscle and joint health. NatuRose Natural Astaxanthin is a natural

pigment source that also promotes animal health and nutrition, primarily in

aquaculture. Phycobiliproteins are fluorescent pigments used in medical

diagnostic testing and research. Cyanotech produces these products from

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

proprietary technology and distributes them to nutritional supplement,

nutraceutical, cosmeceutical, and animal feed makers and marketers in more than

40 countries worldwide. Cyanotech was the first microalgae company in the world

to obtain ISO 9001:2000. Visit www.cyanotech.com for more information.

73-4460 Queen Kaahumanu Highway, #102 ~

Kailua-Kona, Hawaii 96740

fax (808) 329-3597 ~