Cyanotech Provides Marketing Update
KAILUA-KONA, Hawaii (January 31, 2008) — Cyanotech Corporation (Nasdaq Capital Market: CYAN), a world leader in producing high-value nutrition and health products from microalgae, announced new developments related to marketing of its industry-leading, natural astaxanthin product, BioAstin®.
"These developments indicate some of the breadth and scope of our new marketing orientation at Cyanotech," said Dr. Gerald R. Cysewski, president and CEO. "Some are new initiatives while others have been in process for some time. We are continuing to seek new markets worldwide for our products."
A new direct sales company called OceanGrown™ International (www.ogilife.com), dedicated to sustainability and preservation of the environment, will soon be selling several natural products with BioAstin as a key component. OceanGrown’s executives built their careers with other multi-million-dollar food supplement companies and are looking to apply their experience to redefine the MLM (multi-level marketing) channel with a focus on retail sales. According to OceanGrown, its initial product line, OAVE (oh-ave) is a skincare line designed to protect, nourish and build the skin. It chose BioAstin because of Cyanotech's commitment to manufacturing natural and pure astaxanthin in a clean and pristine environment. Each product in the OAVE line unites BioAstin with Irish Seaweed and Icelandic Moss. Its internal BioAstin-based supplement has a unique blend of BioAstin with Antarctic Krill Oil. OceanGrown seeks to provide a dual approach to skincare — internal and external — to harness the unique benefits of BioAstin. Additional BioAstin-based products are in the pipeline.
Cyanotech has also formed an important relationship with Valensa International (www.valensa.com), the world leader in supercritical CO2 extraction. Valensa’s state-of-the-art facility is capable of extracting large volumes of Haematococcus microalgae under very high pressure without the use of solvents to produce a very high quality Astaxanthin oleoresin. A contract has been signed between Valensa and Cyanotech to guarantee Valensa supply of Cyanotech's Haematococcus to produce Valensa’s trademarked Astaxanthin product, "Zanthin®." On its part, Cyanotech is availing itself of Valensa's outstanding extraction capabilities to produce its "BioAstin®" raw material. Both companies view this relationship as a significant step toward bringing the benefits of Astaxanthin to a growing consumer base, and in ensuring the very highest quality product.
Since the approval by the European Union of BioAstin as a novel food early in 2007, Cyanotech has developed a network of distributors and/or brokers in six key markets in Europe. This network has significant experience and industry contacts, and will offer strong customer service and technical support in the local languages throughout Europe.
On the Pacific Rim, BioAstin has become the first natural astaxanthin product to attain registration with the Korean FDA. Cyanotech has appointed two distributors there to handle the anticipated demand. Natural astaxanthin use is growing steadily in the Pacific Rim market.
In China, Cyanotech has received notice that BioAstin is the first astaxanthin product approved for human consumption and registered in China by the Ministry of Health, where BioAstin will be marketed through a single, dedicated agent.
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 produced by Cyanotech and used in medical diagnostic testing and research. Cyanotech produces all 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.
"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.
Bruce Russell: [email protected]
(310) 559-4955 x101