H&Q Healthcare Investors Pays Stock Distribution

On December 31, 2012, H&Q Healthcare Investors paid a quarterly stock distribution of $0.38 per share. It is estimated that this distribution is derived from long-term and short-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 appreciation of portfolio securities and net realized gains on the sale of securities is $104,867,398, of which $100,804,798 represents net unrealized appreciation 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 activity through December 31, 2012, and may be subject to changes based on the tax regulations. Shareholders will receive a Form 1099-DIV in early 2013 notifying them of the sources of all distributions for calendar year 2012 for federal income tax purposes.

H&Q Healthcare Investors (NYSE: HQH) is a closed-end fund that invests in public and private companies in the healthcare industry. Tekla 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.teklacap.com or call (617) 772-8500.

Copyright Business Wire 2010

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