H&Q Life Sciences Investors Authorizes Filing of Preliminary Registration Statement for Rights Offering.

BOSTON -- The Board of Trustees of H&Q Life Sciences Investors (NYSE: HQL), a closed-end investment company (the "Trust"), has authorized the filing of a preliminary registration statement with the Securities and Exchange Commission (the "SEC") for a proposed rights offering to the Trust's shareholders.

The Trust anticipates that the terms of the offer will provide each shareholder with one non-transferable right for each share held on the record date. The number of rights required to acquire one additional share of the Trust is expected to be three and the "Subscription Price" will be determined at a later date. The definitive terms of the rights offering, including the record date for the offering and the length of the offering period, will also be announced at a later date.

The rights offering is subject to the SEC's determination to declare the Trust's registration statement effective and would only commence upon subsequent approval by the Board of Trustees of the Trust. The offer will only be made by means of an effective prospectus and this notice does not constitute an offer for sale of any securities.

The Trust's investment adviser is Hambrecht & Quist Capital Management, LLC. The Trust's shares are listed on the New York Stock Exchange under the symbol HQL. The Trust's investment objective is to seek long-term capital appreciation by investing primarily in securities of companies in healthcare (including biotechnology, pharmaceuticals, diagnostics, managed healthcare and medical equipment, devices and supplies), agriculture and environmental management ("Life Sciences Companies").

This press release may contain certain forward-looking statements regarding future circumstances. These forward-looking statements are based upon the Trust's current expectations and assumptions and are subject to various risks and uncertainties that could cause actual results to differ materially from those contemplated in such forward-looking statements including, in particular, the risks and uncertainties described in the Trust's filings with the SEC. Actual results, events, and performance may differ. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. The Trust undertakes no obligation to release publicly any revisions to these forward-looking statements that may be made to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events. The inclusion of any statement in this release does not constitute an admission by the Fund or any other person that the events or circumstances described in such statement are material.