|   |   |                                                                                          |
|--------|--------|-----------------------------------------------------------------------------------------------|
| þ |   | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934  |

|   |   |                                                                                           |
|--------|--------|------------------------------------------------------------------------------------------------|
| o      |   | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934  |

|                                                          |   |                                   |
|---------------------------------------------------------------|--------|----------------------------------------|
| Oregon                                                        |   | 84-0845771                             |
|                                                          |   |                                   |
| (State or other jurisdiction ofincorporation or organization) |   | (I.R.S. EmployerIdentification Number) |

|                                     |   |       |
|------------------------------------------|--------|------------|
| 1290 Industrial Way, Albany, Oregon      |   | 97322      |
| (Address of principal executive offices) |   | (Zip Code) |

|                      |   |                |   |                    |   |                            |
|---------------------------|--------|---------------------|--------|-------------------------|--------|---------------------------------|
| Large Accelerated Filer o |   | Accelerated Filer o |   | Non-Accelerated Filer o |   | Smaller reporting companyþ |

|      Yes o No þ |
|-----------------------------------------------|

|                           |   |                             |
|--------------------------------|--------|----------------------------------|
| Class                          |   | Outstanding as of August 5, 2010 |
| Common stock, $0.001 par value |   | 14,664,614                       |

----

|       |                  |                                                    |   Page |
|------------|-----------------------|---------------------------------------------------------|-------------|
| Part I.    | Financial Information |                                                    |
|       |                  |                                                    |        |
|       | Item 1.               | Condensed Financial Statements                          |        |
|       |                  |                                                    |        |
|       |                  | Balance Sheets                                          | 1           |
|       |                  | Statements of Operations                                | 3           |
|       |                  | Statements of Cash Flows                                | 4           |
|       |                  | Notes to Unaudited Condensed Financial Statements       | 5           |
|       |                  |                                                    |        |
|       | Item 2.               | Management’s Discussion and Analysis of Financial |        |
|       |                  | Condition and Results of Operations                     | 14          |
|       |                  |                                                    |        |
|       | Item 4.               | Controls and Procedures                                 | 27          |
|       |                  |                                                    |        |
| Part II.   | Other Information     |                                                    |
|       |                  |                                                    |        |
|       | Item 1A.         | Risk Factors                                            | 28          |
|       |                  |                                                    |        |
|       | Item 6.               | Exhibits                                                | 28          |
|       |                  |                                                    |        |
| Signatures | 29                    |

```

```

----

| PART I.  FINANCIAL INFORMATION |
|------------------------------------------|
|                                     |
| Item 1.  Financial Statements  |
|                                     |
|                                     |
| SYNTHETECH, INC.                         |
|                                     |
| Condensed Balance Sheets                 |
| (unaudited)                              |
|                                     |
|                                     |

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |     |       |   |      |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------|------------|--------|-----------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   | June 30, |       |   | March 31, |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   | 2010     |       |   | 2010      |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |     |       |   |      |   |
| Assets                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |     |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |
| Current Assets:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |     |       |   |      |   |
|      Cash and cash equivalents                                                                                                             |   | $        | 1,309,000  |   |      | $      | 1,062,000 |   |
|      Accounts receivable, less allowance                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |     |       |   |      |   |   |   |
| for doubtful accounts of $15,000 for                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |     |       |   |      |   |   |   |
| both periods                                                                                                                                                        |   |     | 1,227,000  |   |      |   | 2,796,000 |   |
|      Inventories                                                                                                                           |   |     | 5,315,000  |   |      |   | 5,056,000 |   |
|      Prepaid expenses                                                                                                                      |   |     | 218,000    |   |      |   | 311,000 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |     |       |   |      |   |   |   |
|           Total Current Assets                                                                                    |   |     | 8,069,000  |   |      |   | 9,225,000 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |     |       |   |      |   |   |   |
| Property, Plant and Equipment, net                                                                                                                                  |   |     | 4,091,000  |   |      |   | 4,050,000 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |     |       |   |      |   |   |   |
|           Total Assets                                                                                            |   | $        | 12,160,000 |   |      | $      | 13,275,000 |   |

----

| SYNTHETECH, INC.         |
|--------------------------|
|                     |
| Condensed Balance Sheets |
| (continued)              |
| (unaudited)              |

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |     |   |       |      |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------|--------|------------|-----------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | June 30, |   |       | March 31, |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | 2010     |   |       | 2010      |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |     |
| Liabilities and Shareholders’ Equity                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |     |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |     |
| Current Liabilities:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |     |
|      Current portion of long-term debt                                                                                                        |     | $      | 420,000    |      |   | $ | 210,000 |   |
|      Note payable                                                                                                                             |     |   | 16,000     |      |   |   | 88,000 |   |
|      Accounts payable                                                                                                                         |     |   | 917,000    |      |   |   | 828,000 |   |
|      Accrued compensation                                                                                                                     |     |   | 421,000    |      |   |   | 797,000 |   |
|      Deferred revenue                                                                                                                         |     |   | 58,000     |      |   |   | - |   |
|      Other accrued liabilities                                                                                                                |     |   | 12,000     |      |   |   | 25,000 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |     |   |       |      |   |   |   |   |
|           Total Current Liabilities                                                                                  |     |   | 1,844,000  |      |   |   | 1,948,000 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |     |   |       |      |   |   |   |   |
|      Long-term debt                                                                                                                           |     |   | 242,000    |      |   |   | 505,000 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |     |   |       |      |   |   |   |   |
|           Total Liabilities                                                                                          |     |   | 2,086,000  |      |   |   | 2,453,000 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |     |   |       |      |   |   |   |   |
| Shareholders' Equity:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |     |   |       |      |   |   |   |   |
|      Common stock, $.001 par value; authorized                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |     |   |       |      |   |   |   |   |
| 100,000,000 shares; issued and outstanding,                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |     |   |       |      |   |   |   |   |
| 14,664,614 shares for both periods                                                                                                                                     |     |   | 15,000     |      |   |   | 15,000 |   |
|      Paid-in capital                                                                                                                          |     |   | 9,548,000  |      |   |   | 9,533,000 |   |
|      Retained earnings                                                                                                                        |     |   | 511,000    |      |   |   | 1,274,000 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |     |   |       |      |   |   |   |   |
|           Total Shareholders' Equity                                                                                 |     |   | 10,074,000 |      |   |   | 10,822,000 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |     |   |       |      |   |   |   |   |
| Total Liabilities and Shareholders' Equity                                                                                                                             |     | $      | 12,160,000 |      |   | $ | 13,275,000 |   |

----

| SYNTHETECH, INC.                   |
|------------------------------------|
|                               |
| Condensed Statements of Operations |
| (unaudited)                        |
|                               |

| For The Three Months Ended June 30,                                 |   |   | 2010       |   |   | 2009   |       |
|---------------------------------------------------------------------|--------|--------|------------|--------|--------|--------|------------|
|                                                                |   |   |       |   |   |   |
|                                                                |   |   |       |   |   |   |
| Revenue                                                             |   | $      | 2,047,000  |   |   | $      | 4,664,000  |   |
| Cost of revenue                                                     |   |   | 1,747,000  |   |   |   | 2,653,000  |   |
|                                                                |   |   |       |   |   |   |       |   |
| Gross income                                                        |   |   | 300,000    |   |   |   | 2,011,000  |   |
|                                                                |   |   |       |   |   |   |       |   |
| Research and development                                            |   |   | 341,000    |   |   |   | 303,000    |   |
| Selling, general and administrative                                 |   |   | 686,000    |   |   |   | 702,000    |   |
| Total operating expenses                                            |   |   | 1,027,000  |   |   |   | 1,005,000  |   |
|                                                                |   |   |       |   |   |   |       |   |
| Operating income (loss)                                             |   |   | (727,000   | )      |   |   | 1,006,000  |   |
|                                                                |   |   |       |   |   |   |       |   |
| Interest income                                                     |   |   | 1,000      |   |   |   | 3,000      |   |
| Interest expense                                                    |   |   | (30,000    | )      |   |   | (40,000    | ) |
|                                                                |   |   |       |   |   |   |       |   |
| Income (loss) before income taxes                                   |   |   | (756,000   | )      |   |   | 969,000    |   |
|                                                                |   |   |       |   |   |   |       |   |
| Income taxes                                                        |   |   | 7,000      |   |   |   | -          |   |
|                                                                |   |   |       |   |   |   |       |   |
| Net income (loss)                                                   |   | $      | (763,000   | )      |   | $      | 969,000    |   |
|                                                                |   |   |       |   |   |   |       |   |
| Net income (loss) per common share:                                 |   |   |       |   |   |   |       |   |
|       Basic income (loss) per share   |   | $      | (0.05      | )      |   | $      | 0.07       |   |
|       Diluted income (loss) per share |   | $      | (0.05      | )      |   | $      | 0.06       |   |
|                                                                |   |   |       |   |   |   |       |   |
| Weighted average shares outstanding:                                |   |   |       |   |   |   |       |   |
|       Basic                           |   |   | 14,664,614 |   |   |   | 14,648,900 |   |
|       Diluted                         |   |   | 14,664,614 |   |   |   | 15,103,809 |   |

----

| SYNTHETECH, INC.                   |
|------------------------------------|
|                               |
| Condensed Statements of Cash Flows |
| (unaudited)                        |

|  For The Three Months Ended June 30,                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |   | 2010      |   |   | 2009   |      |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|-----------|--------|--------|--------|-----------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |   |      |   |   |   |
| CASH FLOWS FROM OPERATING ACTIVITIES:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |   |      |   |   |   |
| Net income (loss)                                                                                                                                                               |   | $      | (763,000  | )      |   | $      | 969,000   |   |
| Adjustments to reconcile net income (loss) to                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |   |      |   |   |   |      |   |
|   net cash provided by operating activities:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |   |      |   |   |   |      |   |
|     Depreciation expense                                                                                                                                    |   |   | 126,000   |   |   |   | 137,000   |   |
|     Stock-based compensation expense                                                                                                                        |   |   | 15,000    |   |   |   | 12,000    |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |   |      |   |   |   |      |   |
|     (Increase) decrease in assets:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |   |      |   |   |   |      |   |
|       Accounts receivable, net                                                                                                                    |   |   | 1,569,000 |   |   |   | 1,874,000 |   |
|       Inventories                                                                                                                                 |   |   | (259,000  | )      |   |   | (126,000  | ) |
|       Prepaid expenses                                                                                                                            |   |   | 93,000    |   |   |   | 99,000    |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |   |      |   |   |   |      |   |
|     Increase (decrease) in liabilities:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |   |      |   |   |   |      |   |
|       Accounts payable                                                                                                                            |   |   | 89,000    |   |   |   | (509,000  | ) |
|       Accrued compensation                                                                                                                        |   |   | (376,000  | )      |   |   | 208,000   |   |
|       Deferred revenue                                                                                                                            |   |   | 58,000    |   |   |   | -         |   |
|       Other accrued liabilities                                                                                                                   |   |   | (13,000   | )      |   |   | (5,000    | ) |
|         Cash Provided By Operating Activities                                                                                           |   |   | 539,000   |   |   |   | 2,659,000 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |   |      |   |   |   |      |   |
| CASH FLOWS FROM INVESTING ACTIVITY:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |   |      |   |   |   |      |   |
|    Property, plant and equipment purchases                                                                                                                       |   |   | (167,000  | )      |   |   | (15,000   | ) |
|         Cash Used In  Investing Activity                                                                                      |   |   | (167,000  | )      |   |   | (15,000   | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |   |      |   |   |   |      |   |
| CASH FLOWS FROM FINANCING ACTIVITIES:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |   |      |   |   |   |      |   |
|    Principal payments under long-term debt obligation                                                                                                            |   |   | (53,000   | )      |   |   | (53,000   | ) |
|    Repayment of note payable                                                                                                                                     |   |   | (72,000   | )      |   |   | (100,000  | ) |
|         Cash Used In Financing Activities                                                                                               |   |   | (125,000  | )      |   |   | (153,000  | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |   |      |   |   |   |      |   |
|         Increase in Cash and Cash Equivalents                                                                                           |   |   | 247,000   |   |   |   | 2,491,000 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |   |      |   |   |   |      |   |
| Cash and Cash Equivalents at Beginning of Period                                                                                                                                |   |   | 1,062,000 |   |   |   | 588,000   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |   |      |   |   |   |      |   |
| Cash and Cash Equivalents at End of Period                                                                                                                                      |   | $      | 1,309,000 |   |   | $      | 3,079,000 |   |

----

----

|             |   | June 30, |      |   | March 31, |   |
|------------------|--------|----------|-----------|--------|-----------|--------|
|             |   | 2010     |      |   | 2010      |   |
|             |   |     |      |   |      |   |
| Cash             |   | $        | 71,000    |   |      | $      | 174,000 |   |
| Cash equivalents |   |     | 1,238,000 |   |      |   | 888,000 |   |
|             |   | $        | 1,309,000 |   |      | $      | 1,062,000 |   |

----

|   | · | persuasive evidence of an arrangement exists; |
|--------|--------|-----------------------------------------------|

|   | · | delivery has occurred or services have been rendered; |
|--------|--------|-------------------------------------------------------|

|   | · | Synthetech’s price to our customer is fixed or determinable; and |
|--------|--------|------------------------------------------------------------------------|

|   | · | collectability is reasonably assured. |
|--------|--------|---------------------------------------|

----

|                             |   | For the three months ended June 30, |       |
|----------------------------------|--------|-------------------------------------|------------|
|                             |   | 2010                                |       |   | 2009 |   |
|  Net income (loss)          |   | $                                   | (763,000   | ) |   | $ | 969,000 |   |
|                             |   |                                |       |   |   |   |   |   |
| Basic, weighted average shares   |   |                                | 14,664,614 |   |   |   | 14,648,900 |   |
| Dilutive effect of stock options |   |                                | -          |   |   |   | 454,909 |   |
| Diluted, weighted average shares |   |                                | 14,664,614 |   |   |   | 15,103,809 |   |
|                             |   |                                |       |   |   |   |   |   |
| Basic income (loss) per share    |   | $                                   | (0.05      | ) |   | $ | 0.07 |   |
|                             |   |                                |       |   |   |   |   |   |
| Diluted income (loss) per share  |   | $                                   | (0.05      | ) |   | $ | 0.06 |   |

----

|     |   | For the three months ended June 30, |   |
|----------|--------|-------------------------------------|--------|
|     |   | 2010                                |   |   | 2009 |   |
|     |   |                                |   |   |   |   |
| Interest |   | $                                   | 30,000 |   |   | $ | 40,000 |   |

|                                                                                                                                                                                                                                                                                                                                      |   | June 30, |      |   | March 31, |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------|-----------|--------|-----------|--------|
|                                                                                                                                                                                                                                                                                                                                      |   | 2010     |      |   | 2010      |   |
|                                                                                                                                                                                                                                                                                                                                      |   |     |      |   |      |   |
| Finished products                                                     |   | $        | 2,241,000 |   |      | $      | 2,127,000 |   |
| Work in process                                                       |   |     | 1,452,000 |   |      |   | 1,167,000 |   |
| Raw materials                                                         |   |     | 1,622,000 |   |      |   | 1,762,000 |   |
|                                                                                                                                                                                                                                                                                                                                      |   | $        | 5,315,000 |   |      | $      | 5,056,000 |   |

|                     |   | Depreciable Life |          |   | June 30, |    |       | March 31, |   |
|--------------------------|--------|------------------|---------------|--------|----------|---------|------------|-----------|--------|
|                     |   | In Years         |          |   | 2010     |    |       | 2010      |   |
| Land                     |   |             |          |   | $        | 241,000 |       |      | $      | 241,000 |   |
| Buildings                |   |             | 15 – 40 |   |     |    | 1,625,000  |      |   |   | 1,617,000 |   |
| Machinery and equipment  |   |             | 5 – 17  |   |     |    | 3,574,000  |      |   |   | 3,456,000 |   |
| Laboratory equipment     |   |             | 5 – 17  |   |     |    | 1,529,000  |      |   |   | 1,519,000 |   |
| Furniture and fixtures   |   |             | 3 – 5   |   |     |    | 113,000    |      |   |   | 105,000 |   |
| Construction in process  |   |             |          |   |     |    | 37,000     |      |   |   | 14,000 |   |
|                     |   |             |          |   |     |    | 7,119,000  |      |   |   | 6,952,000 |   |
|                     |   |             |          |   |     |    |       |      |   |   |   |   |
| Less:                    |   |             |          |   |     |    |       |      |   |   |   |   |
| Accumulated depreciation |   |             |          |   |     |    | (3,028,000 | )         |   |   | (2,902,000 | ) |
|                     |   |             |          |   |     |    |       |      |   |   |   |   |
|                     |   |             |          |   |     | $       | 4,091,000  |      |   | $ | 4,050,000 |   |

----

|                              |   | June 30, |    |   | March 31, |   |
|-----------------------------------|--------|----------|---------|--------|-----------|--------|
|                              |   | 2010     |    |   | 2010      |   |
| Employee incentives               |   | $        | 63,000  |   |      | $      | 398,000 |   |
| Accrued paid time off   |   |     | 309,000 |   |      |   | 301,000 |   |
| Accrued compensation              |   |     | 49,000  |   |      |   | 98,000 |   |
|                              |   |     |    |   |      |   |   |   |
|                              |   | $        | 421,000 |   |      | $      | 797,000 |   |

|   | · | In November 2008, Synthetech entered into a term loan facility under which it borrowed $500,000.  The loan matures on November 5, 2011, and requires 36 monthly principal payments equal to $8,333, plus interest, beginning on December 1, 2008, with a balloon payment of $200,000 due on maturity.  The note bears interest at (a) 9% or (b) the prime rate plus 5%, whichever is higher.  Synthetech used the term loan proceeds for working capital purposes.  The amount outstanding under this term loan facility as of June 30, 2010 was $342,000. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | In May 2008, Synthetech entered into a term loan facility under which it borrowed $550,000. The loan matures on May 5, 2011, and requires 36 monthly principal payments equal to $9,167, plus interest, beginning on June 1, 2008, with a balloon payment of $220,000 due on maturity.  The note bears interest at (a) 8% or (b) the prime rate plus 4%, whichever is higher.  In May 2009 and 2010, Synthetech paid an annual loan fee equal to 1% of the then outstanding principal balance of the loan.  Synthetech used the term loan proceeds to expand its large-scale reactor capacity and to install a distillation column and equipment intended to recycle spent solvents.  The amount outstanding under this term loan facility as of June 30, 2010 was $320,000. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| Years ending March 31,                                                                                                                                                                                                                                                             |   |   |    |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|---------|
|   2011                                            |   | $      | 157,000 |   |
|   2012                                            |   |   | 505,000 |   |
|     Total                                                                                                                                                                                                                                                      |   | $      | 662,000 |   |

| Years ending March 31,                                                                                                                                                                                                                                                             |   |   |    |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|---------|
|   2011                                            |   | $      | 66,000  |   |
|   2012                                            |   |   | 95,000  |   |
|   2013                                            |   |   | 101,000 |   |
|   2014                                            |   |   | 43,000  |   |
|     Total                                                                                                                                                                                                                                                      |   | $      | 305,000 |   |

----

|                                |   |      |      |   | Weighted      |   |   | Weighted Average         |   |   |           |   |
|-------------------------------------|--------|-----------|-----------|--------|---------------|--------|--------|--------------------------|--------|--------|----------------|--------|
|                                |   | Number    |      |   | Average       |   |   | Remaining                |   |   | Aggregate      |   |
|                                |   | OfOptions |      |   | ExercisePrice |   |   | Contractual Term (years) |   |   | IntrinsicValue |   |
| Options outstanding, March 31, 2010 |   |      | 2,349,400 |   |          | $      | 0.85   |                     |   |   | 5.2            |   |   |   |   |
| Granted                             |   |      | -         |   |          |   | -      |                     |   |   |           |   |   |   |   |
| Exercised                           |   |      | -         |   |          |   | -      |                     |   |   |           |   |   |   |   |
| Forfeited                           |   |      | (46,800   | )      |          | $      | 2.67   |                     |   |   |           |   |   |   |   |
| Options outstanding, June 30, 2010  |   |      | 2,302,600 |   |          | $      | 0.81   |                     |   |   | 5.7            |   |   | $ | 178,000 |   |
|                                |   |      |      |   |          |   |   |                     |   |   |           |   |   |   |   |   |
| Options exercisable, June 30, 2010  |   |      | 1,831,421 |   |          | $      | 0.89   |                     |   |   | 5.1            |   |   | $ | 144,000 |   |
|                                |   |      |      |   |          |   |   |                     |   |   |           |   |   |   |   |   |

----

|                                                     |   | For the three months ended June 30, |   |
|----------------------------------------------------------|--------|-------------------------------------|--------|
|                                                     |   | 2010                                |   |   | 2009 |   |
| Stock-based compensation expense:                        |   |                                |   |   |   |   |
| Cost of revenue                                          |   | $                                   | 3,000  |   |   | $ | 3,000 |   |
| Operating expenses                                       |   |                                | 12,000 |   |   |   | 9,000 |   |
| Stock-based compensation expense                         |   |                                |   |   |   |   |   |   |
|      before income taxes        |   |                                | 15,000 |   |   |   | 12,000 |   |
| Income tax expense (benefit)                             |   |                                | -      |   |   |   | - |   |
| Total stock-based compensation                           |   |                                |   |   |   |   |   |   |
|      expense after income taxes |   | $                                   | 15,000 |   |   | $ | 12,000 |   |

----

----

----

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| Customer                                    |   | For the Three Months Ended June 30, |      |
|---------------------------------------------|--------|-------------------------------------|-----------|
| Market Category                             |   | 2010                                |      |   | 2009 |   |
| Specialty chemical (non-pharmaceutical)     |   | $                                   | 791,000   |   |   | $ | - |   |
| Contract drug synthesis                     |   |                                | 505,000   |   |   |   | 262,000 |   |
| Major and mid-size pharmaceutical           |   |                                | 460,000   |   |   |   | 3,845,000 |   |
| Established biopharmaceutical               |   |                                | 161,000   |   |   |   | 45,000 |   |
| Emerging biopharmaceutical                  |   |                                | 97,000    |   |   |   | 210,000 |   |
| Medical device                              |   |                                | -         |   |   |   | 235,000 |   |
| Other                                       |   |                                | 33,000    |   |   |   | 67,000 |   |
|      Total revenue |   | $                                   | 2,047,000 |   |   | $ | 4,664,000 |   |

|   | · | Revenue from our specialty chemical (non-pharmaceutical) customer market category is primarily in support of projects in a sector outside of pharmaceuticals and medical devices.  Future demand from the largest underlying customer project in this category may decline as our customer implements plans to internally source its production requirements. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Our first quarter fiscal 2011 revenue from contract drug synthesis companies exceeds the comparable period of fiscal 2010 by 93%.  Generally, our contract drug synthesis customers have been adversely affected by a decrease in activity with emerging biopharmaceutical customers.  We expect that this trend may continue for the remainder of fiscal 2011.  Our fiscal 2011 revenues from this customer category will depend to a larger extent upon the status of individual drug development and the market for commercial projects in which we supply materials. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | During the first quarter of fiscal 2010, Synthetech substantially completed a large order for a drug development project in Phase II clinical trials.  The decrease in revenue in the first three months of fiscal 2011 from major and mid-size pharmaceutical companies was primarily the result of the status of ongoing large-scale customer drug development projects.  We believe that our fiscal 2011 revenue from major and mid-size pharmaceutical companies may be adversely impacted by the current economic downturn.  However, we believe that revenue from this customer classification will depend more upon the status of individual drug development projects and customer acceptance of marketed products rather than on the prevailing economic environment. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | · | Revenue from established biopharmaceutical companies was substantially composed of sales to a single company.  Future large demand from this customer presently depends on the status of a Phase II drug development project. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Despite the difficult economic environment, we continue to receive new orders and significant inquiries from some of our emerging biopharmaceutical customers. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Medical device revenue for the first quarter of fiscal 2010 resulted from a project with a single customer.  Due to high customer inventory levels we are uncertain of the timing of future demand for this marketed product. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                                |   | Three Months   |
|-------------------------------------|--------|----------------|
|                                |   | Ended June 30, |
|                                |   | 2010           |   | 2009 |
|                                |   |           |   |   |
| Revenue                             |   | 100.0%         |   | 100.0% |
| Cost of revenue                     |   | 85.3           |   | 56.9 |
|                                |   |           |   |   |
| Gross income                        |   | 14.7           |   | 43.1 |
|                                |   |           |   |   |
| Research and development            |   | 16.7           |   | 6.5 |
| Selling, general and administrative |   | 33.5           |   | 15.0 |
|                                |   |           |   |   |
| Total operating expenses            |   | 50.2           |   | 21.5 |
|                                |   |           |   |   |
| Operating income (loss)             |   | (35.5)         |   | 21.6 |
|                                |   |           |   |   |
| Interest income                     |   | -              |   | 0.1 |
| Interest expense                    |   | (1.5)          |   | (0.9) |
|                                |   |           |   |   |
| Income (loss) before income taxes   |   | (37.0)         |   | 20.8 |
|                                |   |           |   |   |
| Income taxes                        |   | 0.3            |   | - |
|                                |   |           |   |   |
| Net income (loss)                   |   | (37.3%)        |   | 20.8% |

----

----

| · | expenses related to Synthetech’s San Diego Research Center (SDRC) of $115,000, |
|--------|--------------------------------------------------------------------------------------|

| · | net decreases during the first quarter of fiscal 2011 in various expenses of $69,000, which includes reduced charges for employee incentives and severance costs of $41,000 ; and |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | a decrease during the first quarter of fiscal 2011 of $8,000 arising from increases in the amount of R&D department costs allocated to inventory for the manufacture of customer products, as described below. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | An aggregate decrease in compensation expense of $121,000, primarily composed of a decrease in employee incentives of $126,000, less net aggregate increases in salaries and benefits of $5,000, |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | Placement fees and related costs of $54,000 related to the hiring of two senior sales positions, and |
|--------|------------------------------------------------------------------------------------------------------|

| · | A net increase in other expense categories of $51,000. |
|--------|--------------------------------------------------------|

----

----

----

----

|   | · | a significant change in the extent or manner in which a long-lived asset is being used; |
|--------|--------|-----------------------------------------------------------------------------------------|

|   | · | a significant change in the business climate that could affect the value of a long-lived asset; and |
|--------|--------|-----------------------------------------------------------------------------------------------------|

|   | · | a significant decrease in the market value of assets. |
|--------|--------|-------------------------------------------------------|

|   | · | persuasive evidence of an arrangement exists; |
|--------|--------|-----------------------------------------------|

|   | · | delivery has occurred or services have been rendered; |
|--------|--------|-------------------------------------------------------|

|   | · | Synthetech’s price to our customer is fixed or determinable; and |
|--------|--------|------------------------------------------------------------------------|

|   | · | collectability is reasonably assured. |
|--------|--------|---------------------------------------|

----

----

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|   | Exhibit 31.1 | Rule 13a-14(a) Certification of Chief Executive Officer. |
|--------|--------------|----------------------------------------------------------|

|   | Exhibit 31.2 | Rule 13a-14(a) Certification of Chief Financial Officer. |
|--------|--------------|----------------------------------------------------------|

|   | Exhibit 32.1 | Section 1350 Certification of Chief Executive Officer. |
|--------|--------------|--------------------------------------------------------|

|   | Exhibit 32.2 | Section 1350 Certification of Chief Financial Officer |
|--------|--------------|-------------------------------------------------------|

----

|                                                                                   |        SYNTHETECH, INC.       (Registrant) |                                  |
|----------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------|---------------------------------------|
|                                                                                   |                                                                                                             |                                  |   |
| Date:           August 10, 2010 | By:                                                                                                              | /s/ Gregory R. Hahn              |   |
|                                                                                   |                                                                                                             | Gregory R. Hahn                       |   |
|                                                                                   |                                                                                                             | President and Chief Executive Officer |   |
|                                                                                   |                                                                                                             |                                  |   |

| Date:           August 10, 2010   | By:    | /s/ Gary A. Weber    |   |
|----------------------------------------------------------------------------------------------------|--------|---------------------------|--------|
|                                                                                               |   | Gary A. Weber             |   |
|                                                                                               |   | Senior Vice President and |   |
|                                                                                               |   | Chief Financial Officer   |   |