UNITED STATES DISTRICT COURT SOUTHERN DISTRICT OF CALIFORNIA Master File No. 05-CV-2335-H(CAB) CLASS ACTION

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1 In re SERACARE LIFE SCIENCES, INC. SECURITIES LITIGATION This Document Relates To: ALL ACTIONS. UNITED STATES DISTRICT COURT SOUTHERN DISTRICT OF CALIFORNIA Master File No. 05-CV-2335-H(CAB) CLASS ACTION TO: NOTICE OF PENDENCY AND PROPOSED PARTIAL SETTLEMENT OF CLASS ACTION ALL PERSONS WHO PURCHASED OR ACQUIRED SERACARE LIFE SCIENCES, INC. ("SERACARE") COMMON STOCK BETWEEN MAY 14, 2003 AND MARCH 23, 2006, INCLUSIVE ("CLASS PERIOD") PLEASE READ THIS NOTICE CAREFULLY AND IN ITS ENTIRETY. YOUR RIGHTS MAY BE AFFECTED BY PROCEEDINGS IN THIS LITIGATION. PLEASE NOTE THAT IF YOU ARE A CLASS MEMBER, YOU MAY BE ENTITLED TO SHARE IN THE PROCEEDS OF THE SETTLEMENT DESCRIBED IN THIS NOTICE. TO CLAIM YOUR SHARE OF THIS FUND, YOU MUST SUBMIT A VALID PROOF OF CLAIM POSTMARKED ON OR BEFORE OCTOBER 1, This Notice has been sent to you pursuant to Rule 23 of the Federal Rules of Civil Procedure and an Order of the United States District Court for the Southern District of California (the "Court"). The purpose of this Notice is to inform you of the proposed partial settlement of this class action litigation and of the hearing to be held by the Court to consider the fairness, reasonableness, and adequacy of the settlement. The partial settlement resolves the claims against SeraCare, Samuel Anderson, Jerry L. Burdick, Robert J. Cresci, Michael F. Crowley, Jr., Craig A. Hooson, Ezzat Jallad, Dr. Bernard Kasten, Thomas Lawlor, Barry D. Plost, Dr. Nelson Teng and Pecks Management Partners, Ltd. ("Settling Defendants") but does not resolve the claims against Cl BC World Markets Corp., Thomas Weisel Partners LLC, William Blair & Co., LLC and KPMG LLP ("Non-Settling Defendants ") who are not parties to the settlement. This Notice describes the rights you may have in connection with the settlement and what steps you may take in relation to the settlement and this class action litigation. The proposed settlement creates a fund in the amount of $3,000, in cash and will include interest that accrues on the fund prior to distribution. The Settlement Fund consists of : ( 1) a payment of $1 million that SeraCare shall pay or cause to be paid to Lerach Coughlin Stoia Geller Rudman & Robins LLP, acting as escrow agent on behalf of the Class (the "Escrow Agent") within eleven ( 11) business days of the execution of the Stipulation of Partial Settlement (the "SeraCare Settlement"); and (2 ) a payment of $2 million that the Individual Defendants shall pay or cause to paid to the Escrow Agent within ten (10) business days after entry of the Order Preliminarily Approving Settlement and Providing Notice to the Class. The SeraCare Settlement has been approved by the Bankruptcy Court in the Chapter 11 case styled In re SeraCare Life Sciences, Inc., Case No. SD LA (the "Bankruptcy Case ") and resolves in its entirety the proof of claim filed on behalf of the Class in the Bankruptcy Case (the "Class Action Proof of Claim"). Upon payment of $1 million by SeraCare or on SeraCare ' s behalf to the Escrow fund, the SeraCare Settlement shall be complete without need for further Court approval, and all releases as between the Class and SeraCare and its Related Parties shall immediately be in full force and effect. In addition, certain of the Settling Defendants have agreed to cooperate with Lead Plaintiffs in the prosecution of their claims against the Non-Settling Defendants. Based on Lead Counsel ' s estimate of the number of shares entitled to participate in the settlement and the anticipated number of claims to be submitted by Class Members, the average distribution per share to Class Members who purchased or acquired SeraCare common stock would be approximately $ 1.13 before deduction of Court-approved fees and expenses. Your actual recovery from this fund will depend on a number of variables, including the number of claimants and amounts of stock they purchased, the number of shares of SeraCare common stock you purchased or acquired, the expense of administering the claims process, and the timing of your purchases and sales, if any (see the Plan of Allocation below for a more detailed description of how the settlement proceeds will be allocated to the Class Members). Lead Plaintiffs and the Settling Defendants do not agree on the average amount of damages per share that would be recoverable if Lead Plaintiffs were to have prevailed on each claim asserted. The issues on which the parties disagree include : ( 1) whether the statements made or facts allegedly omitted were false, material or otherwise actionable under the federal securities laws; (2 ) the extent to which the various matters that Lead Plaintiffs alleged were materially false or misleading influenced ( if at all ) the trading price of SeraCare common stock at various times during the Class Period ; (3) the extent to which the various allegedly adverse material facts that Lead Plaintiffs alleged were omitted influenced (if at all) the trading price of SeraCare common stock at various times during the Class Period ; (4) the extent to which external factors, such as general market conditions, influenced the trading price of SeraCare common stock at various times during the Class Period; (5) the effect of various market forces influencing the trading price of SeraCare common stock at various times during the Class Period ; (6) the amount by which SeraCare common stock was allegedly artificially inflated (if at all ) during the Class Period; and (7 ) the appropriate economic model for determining the amount by which SeraCare common stock was allegedly artificially inflated ( if at all ) during the Class Period.

2 Lead Plaintiffs believe that the proposed settlement is a good recovery and is in the best interests of the Class. Because of the risks associated with continuing to litigate and proceeding to trial in either the class action or litigation relating to the Class Action Proof of Claim ("Claims Litigation"), there was a danger that Lead Plaintiffs would not have prevailed on any of their claims, in which case the Class would receive nothing. For example, the Lead Plaintiffs faced the possibility that all or many of the claims in this case or in the Claims Litigation could have been dismissed at the pleading stage in response to the Settling Defendants' motions to dismiss or at summary judgment or trial. Lead Plaintiffs have also weighed the benefits of the settlement in light of the bankruptcy of SeraCare, the limited insurance proceeds available to the Settling Defendants and their limited financial resources. In addition, the amount of damages recoverable by the Class was and is challenged by the Settling Defendants. Recoverable damages in this case are limited to losses caused by conduct actionable under applicable law and, had the Litigation or the Claims Litigation gone to trial, the Settling Defendants intended to assert that all the losses of Class Members were caused by non-actionable market, industry or general economic factors. Plaintiffs' Counsel have not received any payment for their services in conducting this Litigation on behalf of the Lead Plaintiffs and the members of the Class, nor have they been reimbursed for their out-of-pocket expenditures. If the settlement is approved by the Court, Lead Counsel will apply to the Court for attorneys' fees of 25% of the settlement proceeds and reimbursement of out-of-pocket expenses not to exceed $220,000.00, both to be paid from the Settlement Fund. If the amount requested by counsel is approved by the Court, the average cost per share would be approximately $0.36. This Notice is not an expression of any opinion by the Court about the merits of any of the claims or defenses asserted by any party in this Litigation or the fairness or adequacy of the proposed settlement. For further information regarding this settlement you may contact: Rick Nelson, Lerach Coughlin Stoia Geller Rudman & Robbins LLP, 655 West Broadway, Suite 1900, San Diego, California 92101, Telephone: 800/ Please do not call any representative of the Settling Defendants or the Court. NOTICE OF HEARING ON PROPOSED SETTLEMENT A settlement hearing (the "Settlement Hearing") will be held on September 4, 2007, at 10:30 a.m., before the Honorable Marilyn L. Huff, United States District Judge, Southern District of California, at the Edward J. Schwartz United States Courthouse, 940 Front Street, San Diego, California. The purpose of the Settlement Hearing will be to determine: (1) whether this partial settlement of the claims against the Individual Defendants should be approved as fair, reasonable, and adequate to each of the Settling Parties; (2) whether the proposed plan to distribute the settlement proceeds (the "Plan of Allocation") is fair, reasonable, and adequate; (3) whether the application by Lead Counsel for an award of attorneys' fees and reimbursement of expenses should be approved and the expenses of the Lead Plaintiffs reimbursed; and (4) whether the Litigation should be dismissed with prejudice as against the Settling Defendants. The Court may adjourn or continue the Settlement Hearing without further notice to the Class. II. DEFINITIONS USED IN THIS NOTICE 1. "Authorized Claimant" means any Class Member whose claim for recovery has been allowed pursuant to the terms of the Stipulation. 2. "Bankruptcy Case" means the bankruptcy case titled in re SeraCare Life Sciences, Inc., Case No. SD LA, in the United States Bankruptcy Court for the Southern District of California. 3. "Bankruptcy Court " means the United States Bankruptcy Court for the Southern District of California. 4. "Claims Administrator " means the firm of Gilardi & Co. LLC. 5. "Class" means all Persons who purchased or otherwise acquired the common stock of SeraCare between May 14, 2003 and March 23, 2006, inclusive. Excluded from the Class are the Settling Defendants, members of the immediate family of any Defendant, the former and current directors, officers, subsidiaries and affiliates of SeraCare, as well as any person, firm, trust, corporation, officer, director or other individual or entity in which any Defendant has a controlling interest and the legal representatives, affiliates, heirs, successors-in-interest, or assigns of any such excluded party. Also excluded from the Class (solely with respect to the Litigation) are those Persons who timely and validly request exclusion from the Class pursuant to this Notice ("Opt-Outs"). 6. "Class Member" or "Class Members" mean any Person who falls within the definition of the Class as set forth above. 7. "Court" means the United States District Court for the Southern District of California. 8. "Defendants" means the Settling Defendants and the Non-Settling Defendants. 9. "Individual Defendants " means Samuel Anderson, Jerry L. Burdick, Robert J. Cresci, Michael F. Crowley, Jr., Craig A. Hooson, Ezzat Jallad, Dr. Bernard Kasten, Thomas Lawlor, Pecks Management Partners, Ltd., Barry D. Plost and Dr. Nelson Teng. 10. "Lead Counsel " means Lerach Coughlin Stoia Geller Rudman & Robbins LLP, Jeffrey D. Light and Daniel S. Drosman, 655 West Broadway, Suite 1900, San Diego, CA and Cohen, Milstein, Hausfeld & Toll, P.L.L.C., Steven J. Toll and Andrew N. Friedman, 1100 New York Avenue, N.W., West Tower, Suite 500, Washington, DC

3 11. "Lead Plaintiffs" means Richard, Jana, David, John and Lauren Westlund, and Massachusetts State Guaranteed Annuity Fund. 12. "Non-Settling Defendants" means CIBC World Markets Corp., Thomas Weisel Partners LLC, William Blair& Co., LLC and KPMG LLP. 13. "Person" means an individual, corporation, partnership, limited partnership, limited liability company, association, joint stock company, estate, legal representative, trust, unincorporated association, government or any political subdivision or agency thereof, and any business or legal entity and their spouses, heirs, predecessors, successors, representatives, or assignees. 14. "Plaintiffs' Counsel" means any counsel who have appeared for any plaintiff in the Litigation. 15. "Related Parties" means, with respect to each Settling Defendant, the immediate family members, heirs, executors, insurers, reinsurers, administrators, successors, assigns, attorneys, legal representatives, and agents, affiliated entities, and alter egos of each of them, and any person or entity which any Settling Defendant has or had a controlling interest and the present and former parents, subsidiaries, divisions, affiliates, predecessors, successors, employees, officers, directors, attorneys, assigns, and agents of each of them. Notwithstanding anything in this paragraph, Related Parties shall not include any of the Non-Settling Defendants. 16. "Released Claims" shall mean any and all claims, demands, rights, actions, causes of action, liabilities, damages, losses, obligations, judgments, duties, suits, costs, expenses, matters and issues of any kind or nature whatsoever (including, but not limited to, any claims arising under federal, state or foreign statutory or common law, including the federal securities laws and any state statutory disclosure law, claims relating to alleged fraud, breach of any duty, negligence or otherwise, and any claims related to alleged unjust enrichment or self-dealing), known or unknown, contingent or absolute, suspected or unsuspected, disclosed or undisclosed, hidden or concealed, liquidated or unliquidated, matured or unmatured, accrued or unaccrued, apparent or unapparent, by or on behalf of the Lead Plaintiffs or by or on behalf of any other member of the Class, whether individual, direct, class, derivative, representative, legal, equitable, a bankruptcy proof of claim, or any other type or in any other capacity against the Settling Defendants or any Released Person arising out of, based upon, or related to both the purchase or acquisition of SeraCare common stock during the Class Period and the allegations, acts, events, facts, matters, transactions, occurrences, statements, representations, misrepresentations or omissions, including any benefits received by any Released Person, or disclosures or public statements made in connection with any of the foregoing, including, but not limited to, the accuracy, adequacy and completeness of such disclosures and any alleged breach of fiduciary duties by any Released Person in any capacity (whether as stockholders, directors, committee members, officers, negotiators, offerors, advisors, or otherwise) or the aiding and abetting thereof which were or could have been alleged in the Litigation or the Bankruptcy Case (including the Class Action Proof of Claim), excepting any claims to enforce the terms and conditions of the settlement. Also excepted from Released Claims is any claim or right to payment by a Class Member in the Bankruptcy Case that relates to his, her or its current ownership of SeraCare common stock. 17. "Released Persons" means each and all of the Settling Defendants, including SeraCare Life Sciences, Inc., and each and all of their Related Parties. 18. "SeraCare" means SeraCare Life Sciences, Inc. debtor and debtor-in-possession in Bankruptcy Case No. SD LA in the United States Bankruptcy Court for the Southern District of California, and its subsidiaries, divisions, affiliates, predecessors, and successors. 19. "Settlement Fund" means the principal amount of Three Million Dollars ($3,000,000.00) in cash, to be paid pursuant to paragraph 2.1 of the Stipulation, plus all interest earned thereon. 20. "Settling Defendants" means SeraCare Life Sciences, Inc., and Samuel Anderson, Jerry L. Burdick, Robert J. Cresci, Michael F. Crowley, Jr., Craig A. Hooson, Ezzat Jallad, Dr. Bernard Kasten, Thomas Lawlor, Pecks Management Partners, Ltd., Barry D. Plost and Dr. Nelson Teng. 21. "Settling Parties" means, collectively, each of the Settling Defendants and the Lead Plaintiffs on behalf of themselves and each of the Class Members. 22. "Unknown Claims" means all claims, demands, rights, liabilities, and causes of action of every nature and description which any Lead Plaintiff or any Class Member do not know or suspect to exist in his, her or its favor at the time of the release of the Released Persons which, if known by him, her or it, might have affected his, her or its settlement with and release of the Released Persons, or might have affected his, her or its decision not to object to this settlement. With respect to any and all Released Claims, the Settling Parties stipulate and agree that, upon the Effective Date, the Lead Plaintiffs shall expressly waive, and each of the Class Members shall be deemed to have waived, and by operation of the Judgment shall have waived, the provisions, rights and benefits of California Civil Code 1542, which provides: A general release does not extend to claims which the creditor does not know or suspect to exist in his or her favor at the time of executing the release, which if known by him or her must have materially affected his or her settlement with the debtor. 3

4 The Lead Plaintiffs shall expressly waive and each of the Class Members shall be deemed to have waived, and by operation of the Judgment shall have expressly waived, any and all provisions, rights and benefits conferred by any law of any state or territory of the United States, or principle of common law, which is similar, comparable or equivalent to California Civil Code The Lead Plaintiffs and Class Members may hereafter discover facts in addition to or different from those which he, she or it now knows or believes to be true with respect to the subject matter of the Released Claims, but the Lead Plaintiffs shall expressly fully, finally and forever settle and release, and each Class Member, upon the Effective Date, shall be deemed to have, and by operation of the Judgment shall have, fully, finally, and forever settled and released, any and all Released Claims, known or unknown, suspected or unsuspected, contingent or non-contingent, whether or not concealed or hidden, which now exist, or heretofore have existed, upon any theory of law or equity now existing or coming into existence in the future, including, but not limited to, conduct which is negligent, intentional, with or without malice, or a breach of any duty, law or rule, without regard to the subsequent discovery or existence of such different or additional facts. The Lead Plaintiffs acknowledge, and the Class Members shall be deemed by operation of the Judgment to have acknowledged, that the foregoing waiver was separately bargained for and a key element of the settlement of which this release is a part. Ill. THE LITIGATION On and after December 22, 2005, six securities class actions were filed in the United States District Court for the Southern District of California, Southern Division on behalf of a class of purchasers of the common stock of SeraCare. On January 19, 2006, the Court entered an Order consolidating all of these cases under the caption entitled In re SeraCare Life Sciences, Inc. Securities Litigation, Master File No. 05-CV-2335-H(CAB) (the "Litigation"). Thereafter, a similar class action entitled Thorpe v. SeraCare Life Sciences, Inc., 06-cv-0080, was filed and later consolidated by Court Order, on April 7, On April 7, 2006 and April 25, 2006, the Court entered Orders appointing Richard, Jana, David, John and Lauren Westlund, and the Massachusetts State Guaranteed Annuity Fund as Lead Plaintiffs pursuant to 15 U.S.C. 78u-4(a)(3)(B)(i) and approved their selection of Lerach Coughlin Stoia Geller Rudman & Robbins LLP and Cohen, Milstein, Hausfeld & Toll, P.L.L.C. as Lead Counsel. The operative complaint in the Litigation is the Consolidated Complaint for Violations of the Federal Securities Laws, filed on July 17, 2006 (the "Complaint"). The Complaint alleges violations of 10(b), 20(a) and 20(A) of the Securities Exchange Act of 1934 and Rule 1 Ob-5 promulgated thereunder and 11 and 15 of the Securities Act of 1933 on behalf of a class of purchasers of all persons who purchased or otherwise acquired SeraCare common stock during the period May 14, 2003 through March 23, The Complaint names as defendants Samuel Anderson, Jerry L. Burdick, Robert J. Cresci, Michael F. Crowley, Jr., Craig A. Hooson, Ezzat Jallad, Dr. Bernard Kasten, Thomas Lawlor, Pecks Management Partners, Ltd., Barry D. Plost and Dr. Nelson Teng (the "Individual Defendants") and CIBC World Markets Corp., Thomas Weisel Partners LLC, William Blair & Co., LLC and KPMG LLP who are not parties to the Stipulation. The Litigation originally included SeraCare as a named defendant. On March 22, 2006, after the commencement of the Litigation, SeraCare commenced a Chapter 11 case styled In re SeraCare Life Sciences, Inc., Case No LA (the "Bankruptcy Case"). The commencement of the Bankruptcy Case stayed the Litigation solely as against SeraCare. As described above, the Complaint (filed in July 2006) did not list SeraCare as a defendant; rather, at approximately the same time of the filing of the Complaint, Lead Counsel filed a class proof of claim in the Bankruptcy Case (the "Class Action Proof of Claim"), making substantially the same allegations against SeraCare as were made against certain of the Individual Defendants in the Complaint. In November 2006, SeraCare and an Ad Hoc Equityholders Committee (the "AHEC") filed a Joint Plan of Reorganization, settling various disputes between SeraCare and the AHEC. SeraCare and the AHEC subsequently filed a First Amended Joint Plan of Reorganization, as Modified (as further modified and in effect the "Joint Plan"). On or about February 15, 2007, the Bankruptcy Court entered an order confirming the Joint Plan. The Joint Plan placed the Class Action Proof of Claim in Class 6B, and provided that such claim would be paid in full in cash on the effective date of the Joint Plan so long as the Class Action Proof of Claim was estimated or settled in an amount equal to or less than $1 million. The Joint Plan also authorized SeraCare to consummate a settlement in respect of the Class Action Proof of Claim in an amount of up to $1 million, and authorized the use of the entire proceeds of directors' and officers' insurance purchased by SeraCare to fund a settlement of the Class Action Proof of Claim and the claims against the Individual Defendants in the Litigation, as well as various releases of contribution, indemnification and other claims among such Settling Defendants. The confirmation order authorized a settlement of the Class Action Proof of Claim binding on all members of the Class, without opt-out, while not affecting the continuing causes of action of the Class in the District Court, in the Litigation. The order confirming the Joint Plan has not been appealed and is a final order. IV. CLAIMS OF THE LEAD PLAINTIFFS AND BENEFITS OF SETTLEMENT Lead Plaintiffs believe that the claims asserted in the Litigation and the Claims Litigation have merit and that the evidence developed to date supports those claims. However, the Lead Plaintiffs recognize and acknowledge the expense and length of continued proceedings necessary to prosecute the Litigation and the Claims Litigation against Settling Defendants through trial and through appeals. The Lead Plaintiffs also have taken into account the uncertain outcome and the risk of any litigation, especially in complex actions such as this Litigation and Claims Litigation, as well as the difficulties and delays 4

5 inherent in such litigation. Lead Plaintiffs are also mindful of the inherent difficulties of proof under and possible defenses to the securities law violations asserted in the Litigation and the Claims Litigation. Finally, Lead Plaintiffs have weighed the benefits of the settlement in light of the bankruptcy of SeraCare, the limited insurance proceeds available to the Settling Defendants, and their limited financial resources. The Lead Plaintiffs believe that the settlement set forth in the Stipulation confers substantial benefits upon the Class. Based on their evaluation, Lead Plaintiffs and Lead Counsel have determined that the settlement set forth in the Stipulation is in the best interests of Lead Plaintiffs and the Class. V. SETTLING DEFENDANTS STATEMENT AND DENIALS OF WRONGDOING AND LIABILITY Settling Defendants expressly have denied and continue to deny all charges of wrongdoing or liability against them arising out of any of the conduct, statements, acts or omissions alleged, or that could have been alleged, in the Litigation. Settling Defendants also continue to believe the claims asserted against them in the Complaint and the Class Action Proof of Claim are without merit. Nonetheless, Settling Defendants have agreed to enter into the settlement solely to avoid the expense, distraction, time, and uncertainty associated with continuing the Litigation. The Settling Defendants have concluded that further conduct of the Litigation and Claims Litigation would be protracted and expensive and that it is desirable that the Litigation and Claims Litigation be fully and finally settled in the manner and upon the terms and conditions set forth in the Stipulation. The Settling Defendants also have taken into account the uncertainty and risks inherent in any litigation and any Claims Litigation, especially in complex cases such as this Litigation. The Settling Defendants have, therefore, determined that it is desirable and beneficial to them that the Litigation and Claims Litigation be settled in the manner and upon the terms and conditions set forth in the Stipulation. VI. TERMS OF THE PROPOSED SETTLEMENT The Settlement Fund consists of $3,000, in cash plus interest which will be paid into an escrow account, pursuant to the terms of the Stipulation of Partial Settlement dated as of April 24, 2007 (the "Stipulation"). Of this amount, SeraCare shall pay or cause to be paid $1,000, within eleven (11) business days of the execution of the Stipulation to the Escrow Agent ("SeraCare Settlement"). The Individual Defendants shall pay or cause to be paid to the Escrow Agent $2,000, within ten (10) business days after entry of the Notice Order. The Bankruptcy Court has approved the SeraCare Settlement in the Bankruptcy Case and has also approved the use of applicable insurance proceeds to fund the settlement with the Individual Defendants. If the Settlement Fund is not transferred to the Escrow Agent as set forth above, interest will accrue at 8% per annum from the date such payment was due on such portion of the Settlement Fund not transferred, until the date such sums are transferred to the Escrow Agent. In addition, certain of the Settling Defendants have agreed to cooperate with Lead Plaintiffs in the prosecution of the Lead Plaintiffs and the Class's claims against the Non-Settling Defendants. A portion of the settlement proceeds will be used for certain administrative expenses, including costs of printing and mailing this Notice, the cost of publishing a newspaper notice, payment of any taxes assessed against the Settlement Fund and costs associated with the processing of claims submitted. In addition, as explained below, a portion of the Settlement Fund maybe awarded by the Court to Lead Counsel as attorneys' fees and for reimbursement of out-of-pocket expenses and to the Lead Plaintiffs for reimbursement of their expenses. The balance of the Settlement Fund (the "Net Settlement Fund") will be distributed according to the Plan of Allocation described below to Class Members who submit valid and timely Proof of Claim forms. VII. PLAN OF ALLOCATION The Net Settlement Fund will be distributed to Class Members who submit valid, timely Proof of Claim forms ("Authorized Claimants") under the Plan of Allocation described below. The Plan of Allocation provides that you will be eligible to participate in the distribution of the Net Settlement Fund only if you have a net loss on all transactions in SeraCare common stock during the Class Period. For purposes of determining the amount an Authorized Claimant may recover under the Plan of Allocation, Lead Counsel have consulted with their damage consultants and the Plan of Allocation reflects an assessment of the damages that could have been recovered as well as Lead Counsel's assessment of the likelihood of establishing liability for various periods of the Class. To the extent there are sufficient funds in the Net Settlement Fund, each Authorized Claimant will receive an amount equal to the Authorized Claimant's claim, as defined below. If, however, the amount in the Net Settlement Fund is not sufficient to permit payment of the total claim of each Authorized Claimant, then each Authorized Claimant shall be paid the percentage of the Net Settlement Fund that each Authorized Claimant's claim bears to the total of the claims of all Authorized Claimants. Payment in this manner shall be deemed conclusive against all Authorized Claimants. The total of all profits shall be subtracted from the total of all losses from transactions during the Class Period to determine if a Class Member has a claim. Only if a Class Member had a net loss, after all profits from transactions in SeraCare common stock during the Class Period are subtracted from all losses, will such Class Member be eligible to receive a distribution from the Net Settlement Fund. A claim shall be calculated as follows: 5

6 1. For shares of SeraCare common stock purchased or otherwise acquired from May 14, 2003 through December 19, 2005, and (a) sold prior to December 20, 2005, the claim per share is $0; (b) sold on or after December 20, 2005 through March 21, 2006, the claim per share is the lesser of: (i) the purchase price less the sales price, or (ii) $9.26 (December 20, 2005 price decline); (c) sold on March 22, 2006, the claim per share is the lesser of: (i) the purchase price less the sales price, or (ii) $16.93 (December 20, 2005 and March 22, 2006 price declines); (d) retained at the end of March 22, 2006, the claim per share is the lesser of. (i) the purchase price less $1.75 (March 23, 2006 closing price), or (ii) $19.03 (December 20, 2005, March 22, 2006 and March 23, 2006 price declines). 2. For shares of SeraCare common stock purchased or otherwise acquired between December 20, 2005 through March 21, 2006, and (a) sold prior to March 22, 2006, the claim per share is $0; (b) sold on March 22, 2006, the claim per share is the lesser of: (i) the purchase price less the sales price, or (ii) $7.67 (March 22, 2006 price decline); (c) retained at the end of March 22, 2006, the claim per share is the lesser of. (i) the purchase price less $1.75 (March 23, 2006 closing price), or (ii) $9.77 (March 22, 2006 and March 23, 2006 price declines). 3. For shares of SeraCare common stock purchased or otherwise acquired on March 22, 2006, and (a) sold prior to March 23, 2006, the claim per share is $0; (b) retained at the end of March 22, 2006, the claim per share is the lesser of. (i) the purchase price less $1.75 (March 23, 2006 closing price), or (ii) $2.10 (March 23, 2006 price decline). The date of purchase or sale is the "contract" or "trade" date as distinguished from the "settlement" date. The determination of the price paid per share and the price received per share, shall be exclusive of all commissions, taxes, fees and charges. For Class Members who held shares at the beginning of the Class Period or made multiple purchases, acquisitions or sales during the Class Period, the first-in, first-out ("FIFO") method will be applied to such holdings, purchases, acquisitions and sales for purposes of calculating a claim. Under the FIFO method, sales of shares during the Class Period will be matched, in chronological order, first against shares held at the beginning of the Class Period. The remaining sales of shares during the Class Period will then be matched, in chronological order, against shares purchased during the Class Period. A Class Member will be eligible to receive a distribution from the Net Settlement Fund only if such Class Member had a net loss, after all profits from transactions in SeraCare common stock during the Class Period are subtracted from all losses. However, the proceeds from sales of shares which have been matched against shares held at the beginning of the Class Period will not be used in the calculation of such net loss. VIII. IX. The Court has reserved jurisdiction to allow, disallow or adjust the claim of any Class Member on equitable grounds. ORDER CERTIFYING A CLASS FOR PURPOSES OF SETTLEMENT On June 11, 2007, the Court certified a class. PARTICIPATION IN THE CLASS The Class is defined above. If you fall within the definition of the Class, you are a Class Member unless you elect to be excluded from the Class pursuant to this Notice. If you do not request to be excluded from the Class, you will be bound by any judgment entered with respect to the settlement in the Litigation against the Settling Defendants whether or not you file a Proof of Claim and Release form. Ifyou are a Class Member, you need do nothing (other than timely file a Proof of Claim and Release form ifyou wish to participate in the distribution of the Net Settlement Fund). Your interests will be represented by Lead Counsel. If you choose, you may enter an appearance individually or through your own counsel at your own expense. TO PARTICIPATE IN THE DISTRIBUTION OF THE NET SETTLEMENT FUND, YOU MUST TIMELY COMPLETE AND RETURN THE PROOF OF CLAIM AND RELEASE FORM THAT ACCOMPANIES THIS NOTICE. The Proof of Claim and Release form must be postmarked on or before October 1, 2007, and delivered to the Claims Administrator at the address below. Unless the Court orders otherwise, if you do not timely submit a valid Proof of Claim and Release form, you will be barred from receiving any payments from the Net Settlement Fund, but will in all other respects be bound by the provisions of the Stipulation and the Judgment. X. EXCLUSION FROM THE CLASS You may request to be excluded from the Class. To do so, you must mail a written request stating that you wish to be excluded from the Class to: 6

7 SeraCare Securities Litigation Claims Administrator c/o Gilardi & Co. LLC P.O. Box 990 Corte Madera, CA The request for exclusion must state: (1) your name, address, and telephone number; and (2) all purchases, acquisitions and sales of SeraCare common stock made during the Class Period, including the dates of each purchase, acquisition or sale, and the number of shares purchased, acquired or sold. YOUR EXCLUSION REQUEST MUST BE POSTMARKED ON OR BEFORE AUGUST 20, An Opt Out Form accompanies this Notice. If you submit a valid and timely request for exclusion, you shall have no rights under the settlement, shall not share in the distribution of the Net Settlement Fund, and shall not be bound by the Stipulation or the Judgment. XI. DISMISSAL AND RELEASES If the proposed settlement of the claims against the Individual Defendants is approved, the Court will enter a Partial Final Judgment and Order of Dismissal and (the "Judgment"). The Judgment will dismiss the Released Claims with prejudice as to all Settling Defendants. For the avoidance of doubt, the SeraCare Settlement is effective, and the releases as between the Class and SeraCare are in full force and effect, upon payment to the Escrow Agent of $1 million without any further approval of the Court and without regard to any election of the Individual Defendants to terminate the settlement pursuant to Section 7.7 of the Stipulation. The Litigation will continue against the Non-Settling Defendants. Any final verdict or judgment that may be obtained against the Non-Settling Defendants by or on behalf of the Lead Plaintiffs or Class Members may be reduced by a settlement credit consistent with applicable federal law. The Judgment will provide that all Class Members who have not previously validly and timely requested to be excluded from the Class shall be deemed to have released and forever discharged all Released Claims (to the extent members of the Class have such claims) against all Released Persons. XII. APPLICATION FOR ATTORNEYS FEES AND EXPENSES At the Settlement Hearing, Lead Counsel will request the Court to award attorneys' fees of 25% of the Settlement Fund, plus reimbursement of the expenses, not to exceed $220,000.00, which were advanced in connection with the Litigation, plus interest thereon. Lead Plaintiffs may also seek reimbursement of their expenses incurred in representing the Class in the Litigation. Class Members are not personally liable for any such fees, expenses or compensation. To date, Lead Counsel have not received any payment for their services in conducting this Litigation on behalf of the Lead Plaintiffs and the members of the Class, nor have counsel been reimbursed for their out-of-pocket expenses. The fee requested by Lead Counsel would compensate counsel for their efforts in achieving the Settlement Fund for the benefit of the Class, and for their risk in undertaking this representation on a contingency basis. The fee requested is within the range of fees awarded to plaintiffs' counsel under similar circumstances in litigation of this type. XIII. CONDITIONS FOR SETTLEMENT The settlement of the Class's claims against the Individual Defendants is conditioned upon the occurrence of certain events described in the Stipulation. Those events include, among other things: (1) entry of the Judgment by the Court, as provided for in the Stipulation; and (2) expiration of the time to appeal from or alter or amend the Judgment. If, for any reason, any one of the conditions described in the Stipulation is not met, the Stipulation might be terminated and, if terminated, will become null and void, and the parties to the Stipulation will be restored to their respective positions as of November 29, 2006; provided that the Stipulation as between the Class and SeraCare shall remain in full force and effect. XIV. THE RIGHT TO BE HEARD AT THE HEARING Any Class Member who has not validly and timely requested to be excluded from the Class, and who objects to any aspect of the settlement, the Plan of Allocation, or the application for attorneys' fees and expenses or reimbursement of the Lead Plaintiffs' expenses, may appear and be heard at the Settlement Hearing. Any such Person must submit and serve a written notice of objection, to be received on or before August 20, 2007, by each of the following: 7

8 Court: LERACH COUGHLIN STOIA GELLER RUDMAN & ROBBINS LLP JEFFREY D. LIGHT 655 West Broadway, Suite 1900 San Diego, CA CLERK OF THE COURT UNITED STATES DISTRICT COURT SOUTHERN DISTRICT OF CALIFORNIA 880 Front Street, Suite 4290 San Diego, CA Lead Counsel for Plaintiffs: Counsel for certain of the Settling Defendants: O'MELVENY & MYERS LLP MEREDITH N. LANDY 2765 Sand Hill Road Menlo Park, CA COHEN, MILSTEIN, HAUSFELD & TOLL, P.L.L.C. ANDREW N. FRIEDMAN 1100 New York Avenue, N.W. West Tower, Suite 500 Washington, DC The notice of objection must demonstrate the objecting Person's membership in the Class, including the number of shares of SeraCare common stock purchased, acquired and sold during the Class Period, and contain a statement of the reasons for objection. Only Class Members who have submitted written notices of objection in this manner will be entitled to be heard at the Settlement Hearing, unless the Court orders otherwise. XV. SPECIAL NOTICE TO NOMINEES If you hold or held any SeraCare common stock during the Class Period as nominee for a beneficial owner, then, within ten (10) calendar days after you receive this Notice, you must either: (1) send a copy of this Notice and the Proof of Claim by first class mail to all such Persons; or (2) provide a list of the names and addresses of such Persons to the Claims Administrator: SeraCare Securities Litigation Claims Administrator c/o Gilardi & Co. LLC P.O. Box 990 Corte Madera, CA If you choose to mail the Notice and Proof of Claim yourself, you may obtain from the Claims Administrator (without cost to you) as many additional copies of these documents as you will need to complete the mailing. Regardless of whether you choose to complete the mailing yourself or elect to have the mailing performed for you, you may obtain reimbursement for, or advancement of, reasonable administrative costs actually incurred or expected to be incurred in connection with forwarding the Notice and Proof of Claim and which would not have been incurred but for the obligation to forward the Notice and Proof of Claim, upon submission of appropriate documentation to the Claims Administrator. XVI. EXAMINATION OF PAPERS This Notice is a summary and does not describe all of the details of the Stipulation. For full details of the matters discussed in this Notice, you may review the Stipulation filed with the Court, which may be inspected during business hours, at the office of the Clerk of the Court, Southern District of California, 880 Front Street, Suite 4290, San Diego, California. If you have any questions about the settlement of the Litigation, you may contact Lead Counsel: LERACH COUGHLIN STOIA GELLER COHEN, MILSTEIN, HAUSFELD & TOLL, P.L.L.C. RUDMAN & ROBBINS LLP ANDREW N. FRIEDMAN JEFFREY D. LIGHT 1100 New York Avenue, N.W. 655 West Broadway, Suite 1900 West Tower, Suite 500 San Diego, CA Washington, DC DATED: June 11, 2007 PLEASE DO NOT TELEPHONE THE COURT REGARDING THIS NOTICE BY ORDER OF THE COURT UNITED STATES DISTRICT COURT SOUTHERN DISTRICT OF CALIFORNIA 8