----

|   | OREGON                                                                  |   | 84-0845771                                    |   |
|--------|-------------------------------------------------------------------------|--------|-----------------------------------------------|--------|
|   | (State or Other      Jurisdictionof Incorporation or      Organization) |   | (I.R.S.      EmployerIdentification      No.) |   |

| Large accelerated      filer            | Accelerated filer            | Non-accelerated      filer       X     |
|------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------|

----

|          |                       |                                                                                             | Page   |
|---------------|----------------------------|--------------------------------------------------------------------------------------------------|--------|
| Part I.  | Financial      Information |                                                                                             |
|          |                       |                                                                                             |   |
|          | Item 1.                    | Condensed Financial Statements                                                                   |   |
|          |                       |                                                                                             |   |
|          |                       | Balance Sheets                                                                                   | 3      |
|          |                       | Statements of Operations                                                                         | 5      |
|          |                       | Statements of Cash Flows                                                                         | 6      |
|          |                       | Notes to Unaudited Condensed Financial    Statements                                             | 7      |
|          |                       |                                                                                             |   |
|          | Item 2.                    | Management’s Discussion and Analysis of Financial Condition      and Results of Operations | 16     |
|          |                       |                                                                                             |   |
|          | Item 3.                    | Quantitative and Qualitative Disclosure about Market      Risk                                   | 26     |
|          |                       |                                                                                             |   |
|          | Item 4.                    | Controls and Procedures                                                                          | 26     |
|          |                       |                                                                                             |   |
| Part II.      | Other    Information       |                                                                                             |
|          |                       |                                                                                             |   |
|          | Item 1.                    | Legal Proceedings                                                                                | 28     |
|          |                       |                                                                                             |   |
|          | 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, |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   | 2008 |   |   | 2008 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |   |   |   |   |   |
| Assets                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |
| Current      Assets:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |   |   |   |   |   |
|      Cash      and cash      equivalents                                                                                                             |   | $ | 217,000 |   |   | $ | 1,062,000 |   |
|      Accounts      receivable, less allowance                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |   |   |   |   |   |   |   |
|        for      doubtful accounts of $15,000 for                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |   |   |   |   |   |   |   |
|        both      periods                                                                                                                   |   |   | 2,697,000 |   |   |   | 2,460,000 |   |
|      Inventories                                                                                                                                     |   |   | 4,126,000 |   |   |   | 4,340,000 |   |
|      Prepaid      expenses                                                                                                                           |   |   | 249,000 |   |   |   | 338,000 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |   |   |   |   |   |   |   |
|           Total      Current      Assets                                                                                    |   |   | 7,289,000 |   |   |   | 8,200,000 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |   |   |   |   |   |   |   |
| Property,      Plant and Equipment,      net                                                                                                                                  |   |   | 4,124,000 |   |   |   | 3,911,000 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |   |   |   |   |   |   |   |
|           Total      Assets                                                                                                 |   | $ | 11,413,000 |   |   | $ | 12,111,000 |   |

----

| SYNTHETECH,      INC.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |          |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |          |
| Condensed      Balance Sheets                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |          |
| (continued)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |          |
| (unaudited)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |          |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |          |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | June      30, |   |   | March      31, |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | 2008          |   |   | 2008 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |          |
| Liabilities      and Shareholders’ Equity                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |          |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |          |
| Current      Liabilities:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |          |
|      Line      of      credit                                                                                                                           |          | $ | 378,000 |   |   | $ | 905,000 |   |
|      Current      portion of long-term      debt                                                                                                        |          |   | 110,000 |   |   |   | - |   |
|      Note      Payable                                                                                                                                  |          |   | 34,000 |   |   |   | 135,000 |   |
|      Accounts      payable                                                                                                                              |          |   | 1,416,000 |   |   |   | 1,349,000 |   |
|      Accrued      compensation                                                                                                                          |          |   | 353,000 |   |   |   | 324,000 |   |
|      Deferred      revenue                                                                                                                              |          |   | - |   |   |   | 1,004,000 |   |
|      Other      accrued      liabilities                                                                                                                |          |   | 19,000 |   |   |   | 35,000 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |          |   |   |   |   |   |   |   |
|           Total      Current      Liabilities                                                                                  |          |   | 2,310,000 |   |   |   | 3,752,000 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |          |   |   |   |   |   |   |   |
|      Long-term      debt                                                                                                                                |          |   | 431,000 |   |   |   | - |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |          |   |   |   |   |   |   |   |
|           Total      Liabilities                                                                                               |          |   | 2,741,000 |   |   |   | 3,752,000 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |          |   |   |   |   |   |   |   |
| Shareholders'      Equity:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |          |   |   |   |   |   |   |   |
|      Common      stock, $.001 par value; authorized                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |          |   |   |   |   |   |   |   |
|        100,000,000      shares; issued and outstanding,                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |          |   |   |   |   |   |   |   |
|        14,632,000      shares for both balance sheet dates                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |          |   | 15,000 |   |   |   | 15,000 |   |
|      Paid-in      capital                                                                                                                               |          |   | 9,396,000 |   |   |   | 9,378,000 |   |
|      Retained      deficit                                                                                                                              |          |   | (739,000 | ) |   |   | (1,034,000 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |          |   |   |   |   |   |   |   |
|           Total      Shareholders'      Equity                                                                                 |          |   | 8,672,000 |   |   |   | 8,359,000 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |          |   |   |   |   |   |   |   |
| Total      Liabilities and Shareholders' Equity                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |          | $ | 11,413,000 |   |   | $ | 12,111,000 |   |

----

| SYNTHETECH, INC.                                                            |   |
|-----------------------------------------------------------------------------|--------|
|                                                                        |   |
| Condensed      Statements of Operations                                     |   |
| (unaudited)                                                                 |   |
|                                                                        |   |
| For      The Three Months Ended June 30,                                    |   | 2008 |   |   | 2007 |   |
|                                                                        |   |   |   |   |   |   |
|                                                                        |   |   |   |   |   |   |
| Revenue                                                                     |   | $ | 4,917,000 |   |   | $ | 4,172,000 |   |
| Cost      of revenue                                                        |   |   | 3,628,000 |   |   |   | 2,983,000 |   |
|                                                                        |   |   |   |   |   |   |   |   |
| Gross      income                                                           |   |   | 1,289,000 |   |   |   | 1,189,000 |   |
|                                                                        |   |   |   |   |   |   |   |   |
| Research      and development                                               |   |   | 297,000 |   |   |   | 328,000 |   |
| Selling,      general and administrative                                    |   |   | 678,000 |   |   |   | 725,000 |   |
| Total      operating expense                                                |   |   | 975,000 |   |   |   | 1,053,000 |   |
|                                                                        |   |   |   |   |   |   |   |   |
| Operating      income                                                       |   |   | 314,000 |   |   |   | 136,000 |   |
|                                                                        |   |   |   |   |   |   |   |   |
| Interest      income                                                        |   |   | 5,000 |   |   |   | 9,000 |   |
| Interest      expense                                                       |   |   | (24,000 | ) |   |   | (26,000 | ) |
|                                                                        |   |   |   |   |   |   |   |   |
| Income      before income taxes                                             |   |   | 295,000 |   |   |   | 119,000 |   |
|                                                                        |   |   |   |   |   |   |   |   |
| Income      taxes                                                           |   |   | - |   |   |   | - |   |
|                                                                        |   |   |   |   |   |   |   |   |
| Net      income                                                             |   | $ | 295,000 |   |   | $ | 119,000 |   |
|                                                                        |   |   |   |   |   |   |   |   |
| Net      income per common share:                                           |   |   |   |   |   |   |   |   |
|       Basic      and diluted income per share |   | $ | 0.02 |   |   | $ | 0.01 |   |
|                                                                        |   |   |   |   |   |   |   |   |
| Weighted      average shares outstanding:                                   |   |   |   |   |   |   |   |   |
|       Basic                                   |   |   | 14,631,614 |   |   |   | 14,546,614 |   |
|       Diluted                                 |   |   | 15,002,705 |   |   |   | 15,128,113 |   |

----

| SYNTHETECH, INC.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |
| Condensed      Statements of Cash Flows                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |
| (unaudited)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |   |   |   |   |   |
| For The Three Months      Ended June 30,                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   | 2008 |   |   | 2007 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |   |   |   |   |   |
| CASH      FLOWS FROM OPERATING ACTIVITIES:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |   |   |   |   |   |
| Net      income                                                                                                                                                                           |   | $ | 295,000 |   |   | $ | 119,000 |   |
| Adjustments      to reconcile net income to                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |   |   |   |   |   |   |   |
|   net      cash provided by (used in) operating activities:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |   |   |   |   |   |   |   |
|     Depreciation      expense                                                                                                                                         |   |   | 123,000 |   |   |   | 115,000 |   |
|     Stock-based      compensation      expense                                                                                                                        |   |   | 18,000 |   |   |   | 102,000 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |   |   |   |   |   |   |   |
|     (Increase)      decrease in assets:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |   |   |   |   |   |   |   |
|       Accounts      receivable,      net                                                                                                                    |   |   | (237,000 | ) |   |   | (288,000 | ) |
|       Inventories                                                                                                                                           |   |   | 214,000 |   |   |   | 243,000 |   |
|       Prepaid      expenses                                                                                                                                 |   |   | 89,000 |   |   |   | 99,000 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |   |   |   |   |   |   |   |
|     Increase      (decrease) in liabilities:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |   |   |   |   |   |   |   |
|       Accounts      payable                                                                                                                                 |   |   | 67,000 |   |   |   | 83,000 |   |
|       Accrued      compensation                                                                                                                             |   |   | 29,000 |   |   |   | 82,000 |   |
|       Accrued      termination      benefits                                                                                                                |   |   | - |   |   |   | (53,000 | ) |
|       Deferred      revenue                                                                                                                                 |   |   | (1,004,000 | ) |   |   | - |   |
|       Other      accrued      liabilities                                                                                                                   |   |   | (16,000 | ) |   |   | 15,000 |   |
|         Cash      Provided By (Used In) Operating Activities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |   | (422,000 | ) |   |   | 517,000 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |   |   |   |   |   |   |   |
| CASH      FLOWS FROM INVESTING ACTIVITY:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |   |   |   |   |   |   |   |
|    Property,      plant and equipment      purchases                                                                                                                       |   |   | (336,000 | ) |   |   | (139,000 | ) |
|         Cash      Used In  Investing      Activity                                                                                      |   |   | (336,000 | ) |   |   | (139,000 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |   |   |   |   |   |   |   |
| CASH      FLOWS FROM FINANCING ACTIVITIES:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |   |   |   |   |   |   |   |
|    Repayments      of line of      credit                                                                                                                                  |   |   | (527,000 | ) |   |   | (188,000 | ) |
|    Borrowings      under long-term debt obligation                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |   | 550,000 |   |   |   | - |   |
|    Principal      payments under long-term debt obligation                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |   | (9,000 | ) |   |   | - |   |
|    Repayment      of note      payable                                                                                                                                     |   |   | (101,000 | ) |   |   | (106,000 | ) |
|         Cash      Used In Financing      Activities                                                                                               |   |   | (87,000 | ) |   |   | (294,000 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |   |   |   |   |   |   |   |
|         Increase      (Decrease) in Cash and Cash Equivalents                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |   | (845,000 | ) |   |   | 84,000 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |   |   |   |   |   |   |   |
| Cash      and Cash Equivalents at Beginning of Period                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |   | 1,062,000 |   |   |   | 259,000 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |   |   |   |   |   |   |   |
| Cash      and Cash Equivalents at End of      Period                                                                                                                                      |   | $ | 217,000 |   |   | $ | 343,000 |   |

----

SYNTHETECH, INC.

----

|                                                                                                                                                                                                                                                                                                                                          |   | June      30, |    |   | March      31, |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------|---------|--------|----------------|--------|
|                                                                                                                                                                                                                                                                                                                                          |   | 2008          |    |   | 2008           |   |
|                                                                                                                                                                                                                                                                                                                                          |   |          |    |   |           |   |
| Cash                                                                      |   | $             | 8,000   |   |           | $      | 920,000 |   |
| Cash      equivalents                                                     |   |          | 209,000 |   |           |   | 142,000 |   |
|                                                                                                                                                                                                                                                                                                                                          |   | $             | 217,000 |   |           | $      | 1,062,000 |   |

----

----

|                                                                |   | For      the Three Months Ended June 30, |       |
|---------------------------------------------------------------------|--------|------------------------------------------|------------|
| Weighted      average common shares outstanding:                    |   | 2008                                     |       |   | 2007 |   |
|                                                                |   |                                     |       |   |   |   |
|      Basic                                 |   |                                     | 14,631,614 |   |   |   | 14,546,614 |   |
|      Dilutive      effect of stock options |   |                                     | 371,091    |   |   |   | 581,499 |   |
|                                                                |   |                                     |       |   |   |   |   |   |
|      Diluted                               |   |                                     | 15,002,705 |   |   |   | 15,128,113 |   |

| Cash      Paid |   | For      the Three Months Ended June 30, |   |
|----------------|--------|------------------------------------------|--------|
|           |   | 2008                                     |   |   | 2007 |   |
|           |   |                                     |   |
| Interest       |   | $                                        | 24,000 |   |   | $ | 26,000 |   |

----

|                                                                                                                                                                                                                                                                                                                                              |   | June      30, |      |   | March      31, |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------|-----------|--------|----------------|--------|
|                                                                                                                                                                                                                                                                                                                                              |   | 2008          |      |   | 2008           |   |
|                                                                                                                                                                                                                                                                                                                                              |   |          |      |   |           |   |
| Finished      products                                                        |   | $             | 1,727,000 |   |           | $      | 1,678,000 |   |
| Work      in      process                                                     |   |          | 851,000   |   |           |   | 902,000 |   |
| Raw      materials                                                            |   |          | 1,548,000 |   |           |   | 1,760,000 |   |
|                                                                                                                                                                                                                                                                                                                                              |   | $             | 4,126,000 |   |           | $      | 4,340,000 |   |

|                          |   | Depreciable      Life |               |   | June      30, |    |       | March      31, |   |
|-------------------------------|--------|-----------------------|--------------------|--------|---------------|---------|------------|----------------|--------|
|                          |   | In      Years         |               |   | 2008          |    |       | 2008           |   |
| Land                          |   |                  |               |   | $             | 241,000 |       |           | $      | 241,000 |   |
| Buildings                     |   |                  | 15      – 40 |   |          |    | 1,617,000  |           |   |   | 1,617,000 |   |
| Machinery      and equipment  |   |                  | 5 –      17  |   |          |    | 2,661,000  |           |   |   | 2,660,000 |   |
| Laboratory      equipment     |   |                  | 5 –      17  |   |          |    | 1,359,000  |           |   |   | 1,323,000 |   |
| Furniture      and fixtures   |   |                  | 3 –      5   |   |          |    | 111,000    |           |   |   | 99,000 |   |
| Construction      in process  |   |                  |               |   |          |    | 300,000    |           |   |   | 13,000 |   |
|                          |   |                  |               |   |          |    | 6,289,000  |           |   |   | 5,953,000 |   |
|                          |   |                  |               |   |          |    |       |           |   |   |   |   |
| Less:                         |   |                  |               |   |          |    |       |           |   |   |   |   |
| Accumulated      depreciation |   |                  |               |   |          |    | (2,165,000 | )              |   |   | (2,042,000 | ) |
|                          |   |                  |               |   |          |    |       |           |   |   |   |   |
|                          |   |                  |               |   |          | $       | 4,124,000  |           |   | $ | 3,911,000 |   |

----

| Fiscal      2009 |   | $      | 83,000  |   |
|------------------|--------|--------|---------|--------|
| Fiscal      2010 |   |   | 110,000 |   |
| Fiscal      2011 |   |   | 110,000 |   |
| Fiscal      2012 |   |   | 238,000 |   |
|             |   | $      | 541,000 |   |

----

----

|                               |   | NumberOfOptions |      |   | Weighted      AverageExercisePrice |   |   | Weighted      AverageRemainingContractual Term (years) |   |   | AggregateIntrinsicValue |   |
|-----------------------------------------|--------|-----------------|-----------|--------|------------------------------------|--------|--------|--------------------------------------------------------|--------|--------|-------------------------|--------|
| Options      outstanding, April 1, 2008 |   |            | 2,004,067 |   |                               | $      | 1.07   |                                                   |   |   | 6.0                     |   |   |   |   |
| Granted                                 |   |            | -         |   |                               |   | -      |                                                   |   |   |                    |   |   |   |   |
| Exercised                               |   |            | -         |   |                               |   | -      |                                                   |   |   |                    |   |   |   |   |
| Forfeited                               |   |            | (61,667   | )      |                               | $      | 1.56   |                                                   |   |   |                    |   |   |   |   |
| Options      outstanding, June 30, 2008 |   |            | 1,942,400 |   |                               | $      | 1.06   |                                                   |   |   | 6.4                     |   |   | $ | 373,000 |   |
|                                    |   |            |      |   |                               |   |   |                                                   |   |   |                    |   |   |   |   |   |
| Options      exercisable, June 30, 2008 |   |            | 1,660,074 |   |                               | $      | 1.13   |                                                   |   |   | 6.1                     |   |   | $ | 296,000 |   |

|                           |   | For      the Three Months Ended |   |
|--------------------------------|--------|---------------------------------|--------|
|                           |   | June      30, 2008              |   |   | June      30, 2007 |   |
|                           |   |                            |   |   |   |   |
| Expected      price volatility |   |                            | -      |   |   |   | 50% |   |
| Risk-free      interest rate   |   |                            | -      |   |   |   | 4.96% |   |
| Expected      term in years    |   |                            | -      |   |   |   | 6.00 |   |
| Dividend      yield            |   |                            | -      |   |   |   | - |   |

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|                                                          |   | For      the Three Months Ended |   |
|---------------------------------------------------------------|--------|---------------------------------|--------|
|                                                          |   | June      30, 2008              |   |   | June      30, 2007 |   |
| Stock-based      compensation expense:                        |   |                            |   |   |   |   |
| Cost      of revenue                                          |   | $                               | 3,000  |   |   | $ | 24,000 |   |
| Operating      expenses                                       |   |                            | 15,000 |   |   |   | 78,000 |   |
|   Stock-based      compensation expense             |   |                            |   |   |   |   |   |   |
|      before      income taxes        |   |                            | 18,000 |   |   |   | 102,000 |   |
| Income      tax expense (benefit)                             |   |                            | -      |   |   |   | - |   |
| Total      stock-based compensation                           |   |                            |   |   |   |   |   |   |
|      expense      after income taxes |   | $                               | 18,000 |   |   | $ | 102,000 |   |

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Item 2.    Management'sDiscussion and Analysis of Financial Condition and Results ofOperations

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|                                     |   | Three      Months   |
|------------------------------------------|--------|---------------------|
|                                     |   | Ended      June 30, |
|                                     |   | 2008                |   | 2007 |
|                                     |   |                |   |   |
| Revenue                                  |   | 100.0%              |   | 100.0% |
| Cost      of revenue                     |   | 73.8                |   | 71.5 |
|                                     |   |                |   |   |
| Gross      income                        |   | 26.2                |   | 28.5 |
|                                     |   |                |   |   |
| Research      and development            |   | 6.0                 |   | 7.9 |
| Selling,      general and administrative |   | 13.8                |   | 17.3 |
|                                     |   |                |   |   |
| Total      operating expenses            |   | 19.8                |   | 25.2 |
|                                     |   |                |   |   |
| Operating      income                    |   | 6.4                 |   | 3.3 |
|                                     |   |                |   |   |
| Interest      income                     |   | 0.1                 |   | 0.2 |
| Interest      expense                    |   | (0.5)               |   | (0.6) |
|                                     |   |                |   |   |
| Income      before income taxes          |   | 6.0                 |   | 2.9 |
|                                     |   |                |   |   |
| Income      taxes                        |   | -                   |   | - |
|                                     |   |                |   |   |
| Net      income                          |   | 6.0%                |   | 2.9% |

----

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-  a  decrease during the first quarter of fiscal 2009 in costs associated with  hiring new employees of $19,000; and 

-  an  aggregate decrease during the first quarter of fiscal 2009 in compensation  expense of $15,000, primarily composed of a decrease in stock-based  compensation expense of $12,000. 

-  An  aggregate decrease in compensation expense of $30,000, primarily composed of a  decrease in stock-based compensation expense of $51,000, partially offset by  performance-based sales and marketing bonuses and general increases in  salaries and benefits; and 

-  an  aggregate decrease in professional and consulting fees of  $13,000. 

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-  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 
-  Collectibility  is reasonably assured. 

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Item 3.    Quantitative andQualitative Disclosures about Market Risk

Item 4.    Controls andProcedures

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PART II.    OTHERINFORMATION

Item 1.    LegalProceedings

Item 1A.    RiskFactors

Item 6.    Exhibits

|   |              |                                                                                                                                                                                                              |
|--------|-------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   | Exhibit      3.1  | Articles      of Incorporation of Synthetech, as amended (incorporated by reference to      the exhibits filed with Synthetech’s Annual Report on Form 10-K for the      fiscal year ended March 31, 1991). |
|   | Exhibit      3.2  | Bylaws      of Synthetech, as amended (incorporated by reference to the exhibits filed      with Synthetech’s Annual Report on Form 10-K for the fiscal year ended      March 31, 2005).                    |
|   |              |                                                                                                                                                                                                              |
|   | 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                                                                                                                                                        |

----

SIGNATURES

|                            | SYNTHETECH,      INC. |                                       |
|---------------------------------|-----------------------|--------------------------------------------|
|                            | (Registrant)          |                                       |
|                            |                  |                                       |   |
| Date:      August 6, 2008  | By:                   | /s/ Gregory      R. Hahn              |   |
|                            |                  | Gregory      R. Hahn                       |   |
|                            |                  | President      and Chief Executive Officer |   |
|                            |                  |                                       |   |
|                            |                  |                                       |   |
| Date:      August 6, 2008  | By:                   | /s/      Gary A. Weber                     |   |
|                            |                  | Gary      A. Weber                         |   |
|                            |                  | Vice      President Finance and            |   |
|                            |                  | Chief      Financial Officer               |   |
|                            |                  |                                       |   |