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On March 11, 2014, the Board of Trustees of H&Q Life Sciences Investors (the “Fund”) authorized the filing of a preliminary registration statement with the Securities and Exchange Commission for a proposed rights offering by the Fund to its shareholders to acquire additional shares (the “Offering”). Key aspects of the Offering, including the timing and the pricing, have yet to be determined. The Board reserves the right to delay or cancel the Offering. The proceeds from the Offering (if commenced) would allow the Fund to take advantage of new investment opportunities without having to reduce existing holdings. Increasing the assets of the Fund may also result in certain economies of scale which may lower the Fund’s fixed expenses as a percentage of average net assets. Under the proposed Offering, each shareholder would receive one non-transferable right for each common share held on the record date. It is anticipated that at least three rights will be required to acquire one additional common share of the Fund. The subscription price will be determined at a later date and is expected to be below the Fund’s market price at that time. Shareholders of record on the record date for the Offering are expected to be entitled to oversubscribe, subject to certain limitations, for any shares not purchased by exercise of the primary subscription rights. The Fund may issue, at its discretion, up to an additional 25% of the shares available pursuant to the Offering to honor over-subscriptions. The record date for the Offering and the length of the Offering period have not yet been determined and will also be announced at a later date. The Offering is subject to the Securities and Exchange Commission’s determination to declare the registration statement effective. Any Offering will be made only by means of a prospectus and this notice does not constitute an offer to sell, or a solicitation of an offer to buy, any of the Fund’s securities. The information in this announcement is not complete and is subject to change. This document is not an offering, which can only be made by a final prospectus. Investors should consider the Fund’s investment objectives, risks, charges and expenses carefully before investing. The prospectus will contain this and additional information about the Fund and the Offering, and should be read carefully before investing. H&Q Life Sciences Investors (NYSE: HQL) is a closed-end fund that invests in public and private companies in the life sciences 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.