KAILUA KONA, Hawaii (November 30, 2005) — Cyanotech Corporation (Nasdaq Capital Market: CYAN), a world leader in producing high-value nutrition and health products from microalgae, issued this report of a recently concluded, Asian business-development trip by Chief Executive Officer Gerald Cysewski, Ph.D.
”A mix of old and new customers as well as prospects reacted positively to Cyanotech and our products,” said Dr. Cysewski. “Distribution agreements have been signed with a Chinese-American joint venture that we believe will generate orders for BioAstin and NatuRose in 2006.”
Dr. Cysewski traveled from November 5-20, 2005, visiting customers, prospective customers, government and trade association officials and others in China, Hong Kong and Japan. Three of Cyanotech’s products were represented in the talks: BioAstin® Natural Astaxanthin, Hawaiian Spirulina Pacifica® and NatuRose® Natural Astaxanthin.
In Qingdao, China, Dr. Cysewski met with the joint venture firm importing BioAstin and NatuRose for distribution in China.
In Guangzhou, Dr. Cysewski participated in the Chinese Seafood and Aquaculture Exposition, the annual tradeshow of the aquaculture industry. He also gave a seminar on NatuRose and its benefits. A Cyanotech distributor of NatuRose promoted the product at the Exposition. Aquaculture in China is highly diversified and comprised largely of smaller enterprises. However, in total, the Chinese aquaculture industry is the largest in the world.
While in Guangzhou and Hong Kong, Dr. Cysewski conducted seminars on the uses of its Spirulina tablets and powder in health and beauty products before several hundred distributors and customers of a 75-store upscale retailer.
In Japan, Dr. Cysewski met with a major aquaculture feed-maker and customer for NatuRose, who affirmed that the market for sea bream (Tai) is trending downward and growers are seeking to reduce costs. In response to these developments, Cyanotech Japan YK, the Company’s subsidiary, is working to expand NatuRose sales to other aquaculture species. He also met with another customer, which imports Spirulina and BioAstin for the human nutritional and supplement market in Japan.
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. Cyanotech products are distributed to nutritional supplement, nutraceutical, cosmeceutical, and animal feed makers and marketers in more than 30 countries worldwide. Cyanotech was the first microalgae company in the world to obtain ISO 9001:2000 certification. 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 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 Cyanotech’s 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.