Dutton Associates Announces Investment Opinion: Cyanotech Neutral Rating Maintained By Dutton Associates.

EL DORADO HILLS, Calif. -- Dutton Associates continues coverage of Cyanotech Corporation (NASDAQ:CYAN), maintaining its rating at Neutral and a price target of $1.25. The 6-page report by Dutton senior analyst Jonathan Ziegler, CFA is available at www.jmdutton.com as well as from First Call, Bloomberg, Zacks, Reuters, and other leading financial portals.

It was an eventful fourth quarter ended March 31, 2005, for Cyanotech Corporation (CYAN), which had some important positive news to report after the quarter close in addition to reporting a somewhat disappointing quarter. Regarding the latter, because of the intense typhoon activity affecting Japan last year, the sales of the Company's NatuRose(R) product line, used largely in the fish-farming industry, continued to be soft. In addition, management used the soft quarter to incur some maintenance on the facilities, which had a negative impact on margin. As a result, the Company reported a loss of ($74,000) down from the $441,000 reported in the quarter one year ago. However, for the fiscal year, the Company reported a 21.8% increase in net income to $486,000 ($0.02 per share) from $399,000 ($0.02 per share). The outlook is positive for the forthcoming year. Despite the challenging fourth quarter, we are encouraged that the Company's sales appear to be back on track. BioAstin(R), the newest product offering, is generating positive momentum and strong sales growth. Management believes that the NatuRose(R) line results can return to the levels of 2004, which would imply a 42% recovery in sales from our estimate of the just-reported fiscal year 2005 results.

About Dutton Associates

Dutton Associates is one of the largest independent investment research firms in the U.S. Its 28 senior analysts are primarily CFAs and have expertise in many industries. Dutton Associates provides continuing analyst coverage of over 100 enrolled companies, and its research, estimates, and ratings are carried in all the major databases serving institutions and online investors.

The cost of enrollment in our one-year continuing research program is US $35,000 prepaid for 4 Research Reports, typically published quarterly, and requisite Research Notes. Dutton Associates received $33,000 from the Company for 4 Research Reports with coverage commencing on 12/22/2004. The Firm does not accept any equity compensation. Our principals and analysts are prohibited from owning or trading in securities of covered companies. The views expressed in this research report accurately reflect the analyst's personal views about the subject securities or issuer. Neither the analyst's compensation nor the compensation received by us is in any way related to the specific ratings or views contained in this research report or note. Please read full disclosures and analyst background at www.jmdutton.com before investing.