Kailua-Kona, Hawaii (October 11, 2001) — Cyanotech Corporation (NASDAQ NMS: CYAN), the world leader in producing high-value natural products from microalgae, has received Notice of Allowance from the United States Patent and Trademark Office (USPTO) that it will allow Cyanotech’s patent application entitled, “Method for Retarding and Ameliorating Canker Sores”, based on the protective properties of BioAstin® natural astaxanthin.

“We applied for this patent after receiving numerous letters from customers attesting to their perceived improvement with canker sores after taking BioAstin,” said Gerald R. Cysewski, Ph.D., chairman, president and CEO. “Although not clinically validated, this anecdotal evidence suggests another strong possible effect from BioAstin’s fundamental reinforcement and enhancement of the human immune system.”

Canker sores are one of the most common disorders of the mouth, causing discomfort and annoyance to millions of Americans. For some, canker sores are a minor nuisance, but for others they are a constant source of pain and discomfort. Recurrent canker sores afflict about 20% of the general population. Research suggests that canker sores may be caused by a faulty immune system that uses the body's defenses against disease to attack and destroy normal cells. Investigators are seeking to identify the malfunctions in patients' immune systems that make them susceptible to recurrent bouts of canker sores. By analyzing the blood of people with and without canker sores, scientists have found several differences in immune function between the two groups. Whether or how much these differences cause canker sores is not yet known.

Natural astaxanthin, as contained in BioAstin, is a potent antioxidant, over 500 times more powerful than Vitamin E and 10 times stronger than other carotenoids such as beta-carotene. BioAstin has also been shown to enhance and modulate the immune system.

— Cyanotech Corporation, the world’s leader in microalgae technology, produces high-value natural products from microalgae, and is the world’s largest commercial producer of natural astaxanthin (pronounced “asta-zan-thin”) from microalgae. Products include BioAstin® natural astaxanthin, a powerful antioxidant with expanding applications as a human nutraceutical; NatuRose® natural astaxanthin for the aquaculture and animal feed industry; Spirulina Pacifica®, a nutrient-rich dietary supplement; and phycobiliproteins, which are fluorescent pigments used in the immunological diagnostics market. Spirulina Pacifica and BioAstin are sold directly online through www.nutrex-hawaii.com and through resellers worldwide. Corporate and product information is available at www.cyanotech.com

Contacts:
Ronald P. Scott
EVP-Finance & Administration
(808) 326-1353
rscott@cyanotech.com

Bruce Russell
Investor Relations
310-559-4955 x 101
brucerussell@ruscom.com