Cyanotech Receives Delisting Notice from Nasdaq Due to Late Filing of Form 10-Q, Regains Compliance with Nasdaq Capital Market's

  
    
  
  
    
      Cyanotech Corporation (Nasdaq:CYAND) announced today that it received a 
      Staff Determination from The Nasdaq Stock Market on November 16, 2006 
      indicating that the Company is not in compliance with the requirements 
      for continued listing under Marketplace Rule 4310(c)(14) because of its 
      failure to file its Report on Form 10-Q for the quarter ended September 
      30, 2006.
    
    
      As previously reported on November 14, 2006, the Company announced that 
      it will have to delay filing its Form 10-Q for the second quarter of 
      fiscal year 2007 (and continue to delay the filing of its first quarter 
      fiscal year 2007 Form 10-Q) because the Company’s 
      independent registered public accounting firm has not yet rendered any 
      decision with respect to a previously announced accounting issue 
      involving the Company’s historic inventory 
      accounting method. The Company hoped to file both reports by November 
      30, 2006, announcing that this was subject to the requirements of the 
      independent registered public accounting firm. The Company now believes 
      that such filing will take place before December 15, 2006.
    
    
      The Company will contest the current Staff Determination with the Nasdaq 
      Listing Qualifications Panel. Cyanotech still awaits the results of its 
      October 12, 2006 Hearing before the Nasdaq Listing Qualifications Panel 
      which addressed deficiencies in the Company’s 
      minimum bid price and failure to file its Form 10-Q for the period 
      ending June 30, 2006.
    
    
      A one-for-four reverse split of the Company’s 
      common stock on November 3, 2006 brought the Company’s 
      common stock into compliance with Nasdaq Capital Market’s 
      minimum bid price requirement as the Company has been informed by Nasdaq 
      in a letter dated November 20, 2006.
    
    
      Until a decision is made by the Panel on the other deficiencies, the 
      Company's common stock will remain listed on The NASDAQ Capital Market. 
      Because of the Company’s reverse split of its 
      common stock, the stock is currently trading under symbol “CYAND” 
      until December 5, 2006 and then will change back to symbol “CYAN”.
    
    
      “Safe Harbor” 
      Statement under the Private Securities Litigation Reform Act of 1995
    
    
      Except for statements of historical fact, the statements in this news 
      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, forecasts of sales in future 
      periods, changes in sales levels to our largest customers, weather 
      patterns, production problems caused by contamination, risks associated 
      with the acceptance of new products, competition, foreign exchange 
      fluctuations, government regulation, and other factors more fully 
      detailed in the Company’s recent Form 10-Q 
      and annual form 10-K filings with the Securities and Exchange Commission.
    
  
Cyanotech Corporation (Nasdaq:CYAND) announced today that it
received a Staff Determination from The Nasdaq Stock Market on
November 16, 2006 indicating that the Company is not in compliance
with the requirements for continued listing under Marketplace Rule
4310(c)(14) because of its failure to file its Report on Form 10-Q for
the quarter ended September 30, 2006.

   As previously reported on November 14, 2006, the Company announced
that it will have to delay filing its Form 10-Q for the second quarter
of fiscal year 2007 (and continue to delay the filing of its first
quarter fiscal year 2007 Form 10-Q) because the Company's independent
registered public accounting firm has not yet rendered any decision
with respect to a previously announced accounting issue involving the
Company's historic inventory accounting method. The Company hoped to
file both reports by November 30, 2006, announcing that this was
subject to the requirements of the independent registered public
accounting firm. The Company now believes that such filing will take
place before December 15, 2006.

   The Company will contest the current Staff Determination with the
Nasdaq Listing Qualifications Panel. Cyanotech still awaits the
results of its October 12, 2006 Hearing before the Nasdaq Listing
Qualifications Panel which addressed deficiencies in the Company's
minimum bid price and failure to file its Form 10-Q for the period
ending June 30, 2006.

   A one-for-four reverse split of the Company's common stock on
November 3, 2006 brought the Company's common stock into compliance
with Nasdaq Capital Market's minimum bid price requirement as the
Company has been informed by Nasdaq in a letter dated November 20,
2006.

   Until a decision is made by the Panel on the other deficiencies,
the Company's common stock will remain listed on The NASDAQ Capital
Market. Because of the Company's reverse split of its common stock,
the stock is currently trading under symbol "CYAND" until December 5,
2006 and then will change back to symbol "CYAN".

   "Safe Harbor" Statement under the Private Securities Litigation
Reform Act of 1995

   Except for statements of historical fact, the statements in this
news 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, forecasts of sales in
future periods, changes in sales levels to our largest customers,
weather patterns, production problems caused by contamination, risks
associated with the acceptance of new products, competition, foreign
exchange fluctuations, government regulation, and other factors more
fully detailed in the Company's recent Form 10-Q and annual form 10-K
filings with the Securities and Exchange Commission.