Cyanotech Corporation Provides Update on Pond Conversion.KAILUA KONA, Hawaii -- Cyanotech Corporation (Nasdaq:CYAN), a world leader in producing high-value natural products from microalgae, today provided an update on the Company's expansion and conversion of certain of its culture ponds from Spirulina spirulina Any cyanobacteria in the genus Spirulina. A traditional food source in parts of Africa and Mexico, spirulina is an exceptionally rich source of vitamins, minerals, and protein, and one of the few nonanimal sources of vitamin B12. production to astaxanthin production. Of the 10 ponds identified for conversion, the Company anticipates that 6 ponds will be completed by the end of this month. In the company's 2nd Quarter Fiscal 2005 press release dated November 1, 2004, it was noted that demand for natural astaxanthin during the quarter had been impacted by inclement in·clem·ent adj. 1. Stormy: inclement weather. 2. Showing no clemency; unmerciful. in·clem environmental factors in Japan which affected customers' fish farming Fish farming is the principal form of aquaculture, while other methods may fall under mariculture. It involves raising fish commercially in tanks or enclosures, usually for food. operations, as well as by competitive pricing issues from synthetic astaxanthin aquaculture aquaculture, the raising and harvesting of fresh- and saltwater plants and animals. The most economically important form of aquaculture is fish farming, an industry that accounts for an ever increasing share of world fisheries production. products in Europe. In addition, the Company had also noted that over the next two quarters (fiscal year 2005 3rd and 4th quarters, respectively), demand for its natural astaxanthin in aquaculture was anticipated to be level with that of the second quarter. However, also in the same release, the Company stated that demand in the future is expected to rebound to levels consistent with prior demand patterns. In response to such shift in product demand, the Company is deferring the conversion of the four remaining ponds for the continuing cultivation of Spirulina Pacifica. Cyanotech's Chairman, President and Chief Executive Officer, Gerald R. Cysewski, said, "When we implemented the conversion of our ponds, our intent was to increase our flexibility to adjust production of both of our products as required so that we would be in a better position to respond to the varying demands of the marketplace. The benefits of this have been immediate. By rapidly assessing market demand we are able to improve our response and adjust our cultivation accordingly. In this instance, we experienced reduced demand for astaxanthin in the aquaculture market and retained for Spirulina production the remaining ponds marked for conversion." Dr. Cysewski concluded, "As we see conditions improving in the aquaculture markets, the Company will reassess the timing and appropriateness of full conversion." About Cyanotech Cyanotech Corporation, a world leader in microalgal 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(R) natural astaxanthin, a powerful antioxidant antioxidant, substance that prevents or slows the breakdown of another substance by oxygen. Synthetic and natural antioxidants are used to slow the deterioration of gasoline and rubber, and such antioxidants as vitamin C (ascorbic acid), butylated hydroxytoluene with expanding applications as a human nutraceutical; NatuRose(R) natural astaxanthin for the aquaculture and animal feed industries; Spirulina Pacifica(R), a nutrient-rich dietary supplement Noun 1. dietary supplement - something added to complete a diet or to make up for a dietary deficiency diet - a prescribed selection of foods vitamin pill - a pill containing one or more vitamins; taken as a dietary supplement ; and phycobiliproteins, which are fluorescent pigments used in the immunological diagnostics market. Spirulina Pacifica and BioAstin are sold directly online through the Company's website, www.nutrex-hawaii.com, as well as through resellers in over 30 countries worldwide. Technical information for the Company's phycobiliproteins products is available at www.phycobiliprotein.com. Corporate data and other product information are available at www.cyanotech.com. "Safe Harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. " Statement under the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and 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, 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 Form 10-Q See 10-Q. and annual form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. filings with the Securities and Exchange Commission. |
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