Cyanotech Initiates Clinical Trial of BioAstin for Relief of Carpal Tunnel Syndrome.

Business Editors

KAILUA-KONA, Hawaii--(BUSINESS WIRE)--March 9, 2000

Cyanotech Corporation (Nasdaq:CYAN), the world leader in producing high-value, natural products from microalgae, today announced arrangements towards the initiation of a double-blind, randomized clinical trial of BioAstin's effects in relieving carpal tunnel syndrome (CTS). BioAstin(TM) is Cyanotech's natural astaxanthin product for use as a human nutritional supplement. CTS causes pain, numbness and tingling in the hands and frequently leads to work disability. Over three million persons per year report symptoms to their doctors believed to be those of CTS.

The clinical trial, which is expected to be concluded by the end of this year, will enroll approximately 60 subjects at a major research institution specializing in the treatment of CTS. The clinical trial is being coordinated by Imaginutrition (www.imaginutrition.com), a firm specializing in the scientific validation of nutritional products.

"We have decided to put BioAstin to a more rigorous test of its effects on CTS since our trial observations continue to yield exceptional results," said Gerald R. Cysewski, Ph.D., Cyanotech chairman, president and CEO. "Demonstrating significant beneficial effects over a larger population in a controlled, third-party study is the next step in validating BioAstin for CTS."

"Additionally, if the results of the study match early observations," Dr. Cysewski noted, "marketers of BioAstin will be able to make compelling claims under the guidelines of the Dietary Supplement and Health Education Act (DSHEA), which governs nutritional and dietary supplements in the US."

Cyanotech received FDA market clearance for BioAstin in August 1999. Sales of a BioAstin consumer product began in January 2000 and, in February 2000, Cyanotech filed a U.S. patent application on the use of astaxanthin to treat CTS.

Cyanotech Corporation produces high-value natural products from microalgae, and is the world's largest commercial producer of natural astaxanthin from microalgae. Products include BioAstin(TM), a natural astaxanthin product for use as a human nutritional supplement; NatuRose(TM) natural astaxanthin used in the worldwide aquaculture and animal feed industry; Spirulina Pacifica(TM), a nutrient-rich dietary supplement; and phycobiliproteins, which are fluorescent pigments used in the immunological diagnostics market. Cyanotech is the only microalgae company in the world to have an ISO 9002 Registered Quality System.

SAFE HARBOR 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, changes in sales levels to our largest customers, weather patterns, risks associated with the acceptance of new products, competition, and other factors more fully detailed in the company's recent quarterly 10-Q and annual 10-K filings with the Securities and Exchange Commission.