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H&Q Life Sciences Investors Pays Stock Distribution

On June 30, 2010, H&Q Life Sciences Investors paid a quarterly stock distribution of $0.16 per share. It is estimated that this distribution is derived from long-term capital gains. The composition of this and subsequent distributions may vary from quarter to quarter because it may be materially impacted by future realized gains and losses on securities. The aggregate of the net unrealized depreciation of portfolio securities and net realized gains on the sale of securities is -$18,596,310, of which -$28,564,269 represents net unrealized depreciation of portfolio securities.

The amounts and sources of distributions reported in this notice are only estimates and are not being provided for tax reporting purposes. The actual amounts and sources of the amounts for tax reporting purposes will depend upon the Fund’s investment experience during the remainder of its fiscal year ending September 30, 2010, and may be subject to changes based on the tax regulations. Shareholders will receive a Form 1099-DIV in early 2011 notifying them of the sources of all distributions for calendar year 2010 for federal income tax purposes.

H&Q Life Sciences Investors (NYSE: HQL) is a closed-end fund that invests in public and private companies in the life sciences industry. Hambrecht & Quist Capital Management LLC, based in Boston, serves as Investment Adviser to the Fund. Shares of the Fund can be purchased on the New York Stock Exchange through any securities broker.

For additional information, please visit www.hqcm.com or call (617) 772-8500.

Copyright Business Wire 2010

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