Cyanotech Corporation

Cyanotech develops and commercializes natural products from microalgae. The Company is currently producing microalgae products for the nutritional supplement and immunological diagnostics markets in addition to microalgae-based products and food coloring markets. Microalgae are a diverse group of over 30,000 species of microscopic plants which have a wide range of physiological and biochemical characteristics and naturally contain high levels of nutrients. Microalgae represent a largely unexplored and unexploited renewable natural resource, which grow much faster than land-based plants. Under favorable growing conditions, certain microalgae produce a new crop every week. Cyanotech has designed, developed and implemented proprietary production and harvesting technologies, systems, and processes that eliminate many of the stability and contamination problems frequently encountered in the production of microalgae. The Company's technologies, systems, processes and favorable growing location permit year-round harvesting of its microalgae products in a cost-effective manner. Cyanotech maintains an environmentally responsible philosophy in the development and production of its products, using natural production methods and resources that employ extensive recycling of raw materials and nutrients. The Company believes that these recycling methods result in substantially lower operating costs. The production system operates without the use of pesticides and herbicides, and does not create erosion, fertilizer runoff or water pollution.