H&Q Healthcare Investors Pays Stock Distribution of $.17

On September 30, 2010, H&Q Healthcare Investors

paid a quarterly stock distribution of $0.17 per share. It is estimated that this distribution is derived from long-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 depreciation of portfolio securities and net realized gains on the sale of securities is -$23,135,068, of which -$38,208,359 represents net unrealized depreciation of portfolio securities.