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The Honolulu Advertiser

Posted at 10:11 a.m., Tuesday, November 13, 2007

Cyanotech CEO to step down as part of restructuring

Advertiser Staff

Kailua-Kona-based Cyanotech Corp. today said the company's founder Gerald Cysewski, 58, will step down from his positions as chairman, president and chief executive officer to become chief scientific officer.

The move comes as part of a strategic shift in the company's business model from processing and distribution of microalgae products to marketing products such as natural Astaxanthin and spirulina.

The Board of Directors has retained the executive search firm of Heidrick & Struggles to manage the search for the new chief executive officer.

"Although the precise plan for moving Cyanotech to the marketing-driven model awaits the input of Dr. Cysewski's successor, we are intent on moving in this new direction," said Gregg Robertson, lead independent director for Cyanotech.

Shares of Cyanotech were trading down 4 cents, or 3 percent, at $1.21 in late afternoon trading on the Nasdaq Capital Market. Share of Cyanotech are down from a split-adjusted $8.00 in 2003.

Cysewski is credited with commercializing the large-scale production of microalgae. He began investigating the process four decades ago while an assistant professor at the University of California Santa Barbara. He began small-scale operations while working with the Battelle Institute in Pasco, Washington, before choosing Kona as to begin large-scale cultivation and processing of microalgae.

"I have been engaged in growing and managing microalgae production for Cyanotech since 1983 when we first set up operations in Kona," said Cysewski. "I look forward to getting back into the lab full-time to pursue my goal of enhancing yields and discovering and commercializing new microalgae products for our portfolio that will provide important health benefits to our customers."