BUSINESS DEVELOPMENT

Life Sciences, Inc., a Delaware corporation (the "Company", "LSI" or "Registrant"), was incorporated in 1963 to produce and sell specific-pathogen-free, or "SPF", laboratory animals for biomedical research, particularly in the area of cancer. Since 1990 the Company has primarily focused its activities on the production and sale of molecular biology enzymes employed in the synthesis and other manipulations of DNA and other nucleic acids.

In 1998 the Company shut down a joint venture then engaged in the incineration of biomedical waste and in 1999 sold an outlying parcel of land to an unaffiliated neighboring business and, in a...