Cyanotech Corporation (Nasdaq Capital Market: CYAN), reported today that its new Astaxanthin extraction system has been installed at Cyanotech's production facility at Kailua-Kona, Hawaii and is in operation. "This new component of our production system is an important step in enhancing our capability for strong growth," said Brent Bailey, Cyanotech President and CEO. "It should greatly reduce overall inventory cycle time as well as costs for our natural Astaxanthin product, for which demand is increasing steadily." Astaxanthin is produced from microalgae cultivated and grown at Cyanotech's facility in Kona, Hawaii. After harvest, the microalgae biomass historically has been shipped to the US mainland and New Zealand where the Astaxanthin has been extracted and readied for final product form before being shipped back to Hawaii. This process added several weeks to production time and significant costs. Cyanotech's extraction system is a 1,000 bar (14,700 psi) supercritical carbon dioxide extraction system, custom built for the Company by ThyssenKrupp Industrial Solutions (formerly "Uhde High Pressure Technologies GmbH"). It is a state of the art extraction system with fewer than six other such systems in the world. The ultra-high pressure extraction will allow the Company to extract Astaxanthin from Haematococcus biomass without the use of organic solvents in a much shorter time compared to lower pressure systems and result in higher yields. The extraction system has double the capacity of the Company's current production to allow for sales growth, and can be expanded to enable four times current production needs. The new building covers 13,000 square feet and includes the extraction equipment with separate biomass handling and oil blending rooms, a drive-in freezer storage area, and a warehouse complex. About Cyanotech — Cyanotech Corporation, a world leader in microalgae technology, produces BioAstin® Natural Astaxanthin and Hawaiian Spirulina Pacifica®—all natural, functional nutrients that leverage our experience and reputation for quality, building nutritional brands which promote health and well-being. Cyanotech's Spirulina products offer complete nutrition, and augment energy and immune response. They are FDA-reviewed and accepted as Generally Recognized as Safe (GRAS) for use in food products. BioAstin's superior antioxidant activity and ability to support and maintain a natural anti-inflammatory response enhance skin, muscle and joint health. All Cyanotech products are produced from microalgae grown at our 90-acre facility in Kona, Hawaii using patented and proprietary technology. Cyanotech sells its products direct to consumers at retail locations in the United States and online at www.nutrex-hawaii.com and also distributes to nutritional supplement, nutraceutical and cosmeceutical manufacturers and marketers worldwide and is GMP-certified by the Natural Products Association TM . Visit www.cyanotech.com for more information.