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CYANOTECH ANNOUNCES INCREASED PRODUCTION CAPACITY

 KAILUA-KONA, Hawaii, June 15 /PRNewswire/ -- Cyanotech Corp. (NASDAQ: CYAN) announced that it will increase the production capacity of Spirulina Pacifica(TM), its high beta-carotene nutritional microalgae, by 30 percent. The expansion project, which will start on July 1, will consist of four acres of culture ponds and associated processing equipment, and is expected to be completed in four months. At current selling prices, the output from the proposed expansion represents additional annual revenues of at least $700,000.
 Dr. Gerald Cysewski, Cyanotech's chief executive officer, said, "The additional Spirulina culture ponds and processing equipment will allow us to keep pace with the growing worldwide demand. Even though our production facility now operates 24 hours a day, seven days a week, our current order backlog is six to eight weeks. This additional output will increase our revenues and profits and allow us to better serve our customers' needs. Because of our level of automation, we expect to be able to absorb this additional capacity without increasing our production staff."
 For the 12 months ended March 31, 1993, Cyanotech previously reported revenues of $2,557,000 and net income of $343,000. During the same period, the company produced over 240,000 pounds of its high- quality, beta-carotine-rich Spirulina Pacifica microalgae. The proposed expansion is being funded from the sale of 640,000 shares of the company's restricted common stock to a private investor for $640,000 cash. The same investor purchased 560,000 shares of restricted common stock in May 1993, bringing the investor's total ownership of the outstanding shares of common stock of the company to 16 percent.
 Cyanotech Corp. is a leader in marine biotechnology, producing algal products for worldwide nutritional and pharmaceutical markets, based on proprietary production and processing systems. The company's current products include Spirulina Pacifica, a high-protein nutritional product; and phycobiliproteins, fluorescent pigments used in immunological diagnostics. Nutrex Inc., the company's wholly owned subsidiary, produces and markets a line of Spirulina-based nutritional consumer products.
 -0- 6/15/93
 /CONTACT: Ronald P. Scott, vice president - Finance, of Cyanotech, 808-326-1353/
 (CYAN)


CO: Cyanotech Corp. ST: Hawaii IN: MTC SU:

SW -- SE008 -- 1953 06/15/93 08:45 EDT
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Publication:PR Newswire
Date:Jun 15, 1993
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