Bruce Russell Russell Communications Group 310-559-4955 x101 brucerussell@ruscom.com Cyanotech Receives Notice of Delisting by Nasdaq, Appeal to Be Heard by Nasdaq KAILUA KONA, Hawaii (

Cyanotech Receives Notice of

Delisting by Nasdaq, Appeal to Be Heard by Nasdaq

KONA, Hawaii (August 20, 2007) Cyanotech Corporation (Nasdaq: CYAN) announced

that on August 15, 2007, Cyanotech Corporation received notification from the

Nasdaq Stock Market that the Company is not in compliance with the requirements

for continued listing of Nasdaq Marketplace Rule 4310(c)(14), because of its

failure to file its report on Form 10-Q for the quarter ended June 30, 2007.

The Company has been informed that the August 15, 2007 notice constitutes an

additional basis for delisting the Company s securities from The Nasdaq Stock

Market, and that this additional basis for delisting will be considered when

the Company appears before the Nasdaq Listing Qualifications Panel on August 30,

2007, as discussed below.

on July 16, 2007 the Company filed a Form 8-K stating that it had issued a news

release announcing notification on July 17, 2007 from the Nasdaq Stock

Market that the Company is not in compliance with the requirements for

continued listing of Nasdaq Marketplace Rule 4310(c)(14), because of its failure

to file its report on Form 10-K for the fiscal year ended March 31,

2007. As a result of this failure, the Company s common stock was subject

to suspension of trading on July 26, 2007, however the Company filed an

appeal of that decision with the Nasdaq Listing Qualifications Panel on

July 20, 2007 requesting continued listing of its common stock until the

Panel s review and determination.

suspension of trading and delisting is stayed pending the appeal of both of the

foregoing notifications . The combined appeal is to be heard August 30,

2007. The suspension of trading and delisting is stayed pending the

Company believes it is now in compliance with Nasdaq Marketplace Rule

4310(c)(14) with respect to the first deficiency (Item 8.01 below), and the

Company also expects that it will be in compliance with such Rule when it files

its Form 10-Q. The Company expects such

filing to be made on or before September 20, 2007 subject to the review of such

Form 10-Q by its independent registered public accountants.

Safe Harbor Statement under the Private Securities

Litigation Reform Act of 1995

for statements of historical fact, the statements in this news release are

forward-looking. Such statements are subject to a number of risks and

uncertainties that could cause actual results to differ materially from the

statements made. These factors include, but are not limited to, general

economic conditions, forecasts of sales in future periods, changes in sales

levels to our largest customers, weather patterns, production problems caused

by contamination, risks associated with the acceptance of new products,

competition, foreign exchange fluctuations, government regulation, and other

factors 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

(808) 326-1353 fax (808) 329-3597 ~