H&Q Life Sciences Investors (NYSE: HQL) is pleased to announce the start of the Subscription Period for its non-transferable rights offering. The Offer entitles shareholders of record on May 30, 2014 to subscribe for an aggregate of 5,095,792 additional shares of beneficial interest of the Fund through the exercise of rights.

The Fund will issue to shareholders one non-transferable right for each share of the Fund owned on the Record Date, rounded down to the nearest number of rights evenly divisible by three. Pursuant to the Offer, shareholders will be entitled to acquire one share of the Fund for every three rights held. Fractional shares will not be issued upon the exercise of rights. Shareholders who are issued less than three rights will not be entitled to acquire any shares in the Offer. The rights will not be admitted for trading on the New York Stock Exchange. Shareholders who fully exercise their rights will have, subject to certain limitations and subject to allotment, an over-subscription privilege to subscribe for additional shares as part of the Offer. The Fund may issue, at its discretion, up to an additional 25% of the shares available pursuant to the Offer to honor over-subscriptions.

The rights may be exercised at any time during the Subscription Period which starts Friday, June 6, 2014 and ends on Monday, June 23, 2014 at 5:00 p.m., Eastern Time.

The final subscription price per share will be 95% of the volume weighted average share price of a share of the Fund on the New York Stock Exchange on June 24, 2014 and the three preceding business days.

The Offer will be made only by means of a prospectus, which, along with exercise instructions, has recently been mailed to shareholders. The definitive terms of the Offer, including the estimated subscription price, will be contained in the Fund’s prospectus for the Offer.

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.

This communication shall not constitute an offer to sell or a solicitation for an offer to buy these securities, nor shall there be any sale of these securities in any State in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the laws of any such State.

For additional information, please call AST Fund Solutions, LLC at (877) 361-7969.