As previously announced, on November 8, 2011, H&Q Life Sciences Investors declared a stock distribution of $0.23 per share. The record date for that stock distribution is November 21, 2011 and the payable date is December 30, 2011. In order to satisfy annual distribution requirements, the amount of the distribution has been increased to $0.64 per share. This stock distribution will automatically be paid in newly issued shares of the Fund unless otherwise instructed by the shareholder. The shares will be valued at the lower of the net asset value or market price on the pricing date, December 22, 2011. Fractional shares will generally be settled in cash, except for registered shareholders with book entry accounts at the transfer agent who will have whole and fractional shares added to their account. 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 consult www.hqcm.com or call (617) 772-8500.