Corporation: Investors and Media: Cyanotech Corporation Russell Communications Group Jeffrey H. Sakamoto Bruce Russell (808) 326-1353 (310) 559-4955 x101 jsakamoto@cyanotech.com brucerusse

Appoints Russell Communications Group

Investor Relations and Marketing Communications Agency

KAILUA KONA, Hawaii July 12, 2005 Cyanotech

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

high-value natural products from microalgae, has appointed Russell

Communications Group ( RCG , www.ruscom.com) as its agency for coordinating its

investor relations and marketing communications efforts, effective July 2005.

As the Company s investor relations counsel, RCG will

assist Cyanotech in communicating with shareholders and prospective

investors. RCG will also coordinate the

Company s marketing communications efforts, highlighting Cyanotech s heightened

focus on the business-to-business wholesale market for its ingredients, which

are used as critical components of products by others.

Moving forward, our Company s investor relations

efforts will be focused on providing all investors with timely notice of

important developments here at Cyanotech, said Dr. Gerald R. Cysewski,

Chairman, President and CEO. We look

forward to working with RCG in communicating our Company s vision to the

investment community and leveraging their experience to assist with

coordinating our efforts in marketing to help Cyanotech attain our goals of

increased sales and profitability.

Cyanotech Corporation, a world leader in microalgal

technology, produces BioAstin natural astaxanthin and Spirulina Pacifica

all-natural, functional nutrients that enhance human health and nutrition,

providing significant antioxidant, anti-inflammatory and immune response

benefits. The Company s other compounds,

such as NatuRose natural astaxanthin, promote animal nutrition and health,

primarily in aquaculture. Cyanotech

extracts these compounds from microalgae grown at its 90-acre facility in

Hawaii using proprietary processes, and distributes them to nutraceutical,

nutritional supplement, cosmeceutical and aquaculture feed makers and marketers

worldwide. Corporate data and product information are available at www.cyanotech.com

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.

73-4460 Queen Kaahumanu

Highway, #102 ~ Kailua-Kona, Hawaii 96740

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