Bruce Russell Russell Communications Group (310) 559-4955 x101 brucerussell@ruscom.com Nasdaq Extends Cyanotech Listing Compliance Period to

Nasdaq Extends Cyanotech Listing

Compliance Period to November 27, 2006

KAILUA KONA, Hawaii (May 31, 2006) Cyanotech

Corporation (Nasdaq Capital Market: CYAN), a world leader in producing

high-value nutrition and health products from microalgae, reported today that

Nasdaq, in a letter dated May 31, 2006, has provided an additional 180 calendar

day compliance period, or until November 27, 2006, to regain compliance for

listing on the Nasdaq Capital Market. The Company had been notified on December

1, 2005 that it did not comply with Marketplace Rule 4310(c)(4) and had been

provided 180 calendar days, or until May 30, 2006, to regain compliance. If, at

anytime before November 27, 2006, the bid price of the Company s common stock

closes at $1.00 per share or more for a minimum of 10 consecutive business

days, Nasdaq will provide written notification that the Company complies with

About Cyanotech 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, providing significant antioxidant,

anti-inflammatory and immune response benefits. 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

certification. Visit www.cyanotech.com for more information.

Safe Harbor Statement under the

Private Securities Litigation Reform Act of 1995

Except for statements of

historical fact, the statements in this press 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 ~ www.cyanotech.com